Consolidated Statements of Cash Flows 51 First Capital Realty Annual Report 2003 Year ended December 31 (thousands of dollars) 2003 2002 CASH FLOW PROVIDED BY (USED IN): OPERATING ACTIVITIES Net income $ 44,026  $ 29,634  Items not affecting cash Amortization (note 14) 11,364  8,859  Amortization of  fi nancing fees 1,210  1,072  Loss (gain) on disposition of marketable securities (74) 138  Loss (gain) on disposition of shopping centres 275  (591) Non-cash compensation expense 273  – Equity income from Equity One, Inc. (19,095) (21,606) Dilution gain on investment in Equity One, Inc. (17,911) (3,290) Future income taxes 22,162  13,522  Deferred leasing costs (4,886) (5,488) Dividends received from Equity One, Inc. 19,033  18,575  Net change in non-cash operating items 8,410  (1,646) Cash provided by operating activities 64,787  39,179  INVESTING ACTIVITIES Acquisition of shopping centres (235,309) (105,502) Acquisition of land for development (6,266) (21,100) Acquisition of intangible assets and liabilities (1,376) – Proceeds on disposition of land and shopping centres 2,911  8,770  Redevelopment of shopping centres (12,695) (5,030) Expenditures on land and shopping centres under development (71,280) (49,759) Investment in common shares of Equity One, Inc. (29,375) (13,209) Acquisition of First Capital Inc. –  1,657  Advances to development partners (4,590) (936) Investment in marketable securities (3,768) (5,551) Disposition of marketable securities 4,908  6,966  Cash used in investing activities (356,840) (183,694) FINANCING ACTIVITIES Proceeds of mortgage  fi nancings and credit facilities 317,107  128,890  Repayments of mortgages payable and credit facilities (110,086) (25,097) Payment of  fi nancing fees  (2,665) (1,523) Issuance of common shares 137,618  22,106  Issuance of convertible debentures  –  5,000  Repayment or retirement of debentures (15,057) (553) Payments on convertible debentures, net of  interest expensed (8,715) (10,188) Payment of dividends (26,322) (17,631) Cash provided by  fi nancing activities 291,880  101,004  Effect of currency rate movement on cash balances (113) (75) Decrease in cash and cash equivalents (286) (43,586) Cash and cash equivalents, beginning of the year 365  43,951  Cash and cash equivalents, end of the year $ 79  $ 365  SUPPLEMENTARY INFORMATION Cash income taxes paid $ 5,386  $ 4,664  Cash interest paid (note 13) $ 55,647  $ 52,840  See accompanying notes to the consolidated  fi nancial statements