Our strategy Proactive Management Builds Value Active Leasing Builds Tenant Relationships First Capital Realty has proven ability to add value to its properties through proactive management. This key element of our growth strategy results in value enhancements and property upgrades aimed at providing consumers with the best possible shopping experience. Specifically, we strive to create and maintain the highest standards in such elements as parking, lighting, signage, facades and access points. Knowledgeable and sophisticated retailers seek to position themselves in the best located, best operated and most visible and accessible locations. Our proactive management approach ensures our properties remain attractive to quality retailers and their customers over the long term. A good example of our strategy in action can be seen in the upgrades at two of our properties, Byron Village in London, Ontario and Centre Commercial Van Horne in Montreal, Quebec. During 2003, we completed a renovation of the facades, installed new tenant signage and new pylon signage in each shopping centre. We also expanded the drug stores and repositioned other tenants in the centres. These initiatives have resulted in an increase in occupancy to over 95% and longer term leases. “Our commitment to keeping our centres at the highest operational standard is a fundamental aspect of our strategy. Investments in upgrading the quality of our centres contribute directly to our increasing occupancy.” Maryanne McDougald, Director, Property and Asset Management Another important part of our success is our leasing activity and our strong relationships with national, regional and local tenants. During 2003, leasing activities resulted in net new leasing totalling 581,000 square feet, including development and redevelopment projects coming on line. The positive impact of these activities resulted in an increase in occupancy to 93.1% at December 31, 2003 from 91.7% at the end of 2002. Of the 6.9% vacancy at year end, 2.0% relates to space under redevelopment.  “Our strong relationships with major retailers contributed to the success of our value- enhancing programs and the general increase in portfolio occupancy during the year. We  are committed to developing and maintaining these important tenant relationships.” Monique Dubord, Director of Leasing  Actively Manage Portfolio Accommodating  tenant needs Ongoing investment • Upgrade, expand  and relocate • Facades • Signage • Accessibility • Parking lots First Capital Realty Annual Report 2003 9