growing urban markets. These shopping centres are situated in planned communities and are both anchored by Sobeys supermarkets and Super Drug Mart stores. Tuscany Plaza is a fully leased, 86,000 square foot strip centre located in Northwest Calgary. McKenzie Towne Centre is a 109,000 square foot, uniquely designed streetscape centre located in Southeast Calgary that had 15,000 square feet of vacant space of which 9,000 square feet has now been leased. McKenzie Towne Centre also includes 8.5 acres of commercially zoned retail land available for future development. “We are pleased with these acquisitions which combine both high-quality assets and income growth potential in this attractive and growing area that will continue to be a strategic market for us. This acquisition is also both financially and operationally accretive.” Brian Kozak, Vice President, Western Canada Our development and redevelopment expertise adds significant value to our Company.  A key to the success of our business, these activities allow us to better participate in growth markets and enhance returns on investment in our property portfolio. During 2003, the Company completed development and expansion of over half a million square feet of additional gross leasable area in more than 13 properties throughout the portfolio. In total, First Capital Realty invested approximately $93 million in the acquisition of land and development and redevelopment activities in 2003, some of which will come on line in 2004 and 2005. Highlights of our 2003 development activity were three properties – Royal Oak in Calgary, Alberta, Carrefour du Versant in Gatineau, Quebec and Brooklin Towne Centre in Whitby, Ontario. These newly constructed shopping centres are anchored by a Sobeys and Wal-Mart, IGA Extra and Price Chopper, respectively. Additional tenants include London Drugs, Shoppers Drug Mart, Reitmans, Scotiabank, Royal Bank, Dollarama, Blockbuster and Tim Hortons. These properties were “green-field” development projects where the Company acquired land either alone or with a joint-venture partner, obtained tenant commitments, municipal approvals and then constructed new shopping centres. “These properties under development which complement our acquisitions, are exactly in line with our strategy and demonstrate how development can provide additional opportunities for growth and superior returns for our Company. We will continue to develop on a selective and opportunistic basis in our core markets.” Sylvie Lachance, Executive Vice President Development and Redevelopment Development Builds Higher Returns • Development  profits accrue to the Company • Higher return on investment • Better participation in growth markets • Key to success 13 First Capital Realty Annual Report 2003