VORNADO REALTY TRUST 6 Lease, Lease, Lease The mission of our business is to create value for our shareholders by growing our asset base through the addition of carefully selected properties and by adding value through intensive and efficient management. As in past years, Mike and I are pleased to present leasing statistics for our businesses. In our business, leasing is what it’s all about. Mike and I congratulate David Greenbaum, Mitchell Schear, Sandeep Mathrani and Chris Kennedy for a superb 2003. Generally speaking, most times we can only get rents that the market offers, but each of these franchise players, through aggressiveness and ability, do a marvelous job of achieving above-market occupancy, year in and year out. David Greenbaum reports that in New York activity is increasing, occupancy rates are rising and rental rates have stabilized. David, ever measured, continues to be cautious and aggressively defensive—focusing on leasing. Sandeep Mathrani and team give us superb skills in devel- oping, leasing, and managing strip shopping centers, malls and New York street retail. After all, these retail businesses are our heritage. We continue to seek retail investment opportunities. In December, we acquired the Bergen Mall Chris Kennedy’s Mart team is also a leasing machine. Chris keeps our showroom space at a very respectable 95% occupancy and in 2003 leased 1,157,000 square feet of showroom space in 465 separate transactions. Also  in 2003, our trade show personnel rented thousands of booths to exhibitors in 29 trade shows. Importantly,  Chris is also working on several large office leasing deals for our Chicago assets. for $145 million, a 900,000 square foot fixer-upper on 80 acres in Paramus, New Jersey. We plan to redevelop this property into a lifestyle center and will invest at least an additional $100 million. We have owned Green Acres, a super regional mall, in Valley Stream, Long Island, New York for six years. Sandeep is now working hard on plans for a renovation and expansion of this productive property. * Percentage increase over expiring escalated rent. Office Retail Merchandise Mart New York Wash. D.C. Office Showroom Year Ended December 31, 2003: Square feet leased 925,000 2,848,000 1,046,000 270,000 1,157,000 Initial rent per square foot $44.60 $30.26 $15.56 $21.24 $23.43 Percentage increase * 15.3% 2.5% 13.2% -5.3% 0.6% Occupancy rate 95.2% 93.9% 93.0% 92.6% 95.1%