Growing FFO Increasing equity  and liquidity Increased Shareholder  Value Focused acquisition strategy Actively manage  portfolio Selective development  and redevelopment Along with our proactive management and leasing initiatives, the increase in the size of our Canadian portfolio also generated a 140% increase in net operating income, from $52 million in 2000 to more than $125 million forecast for 2004.  increase in the weighted average number of diluted common shares outstanding over the three years, funds from operations per diluted common share, prior to one- time income items, grew by an average of 4.3% annually during this period. Clearly, our growth and the significant strengthening of our balance sheet has been accretive. The positive impact of these activities also resulted in improved occupancy, which rose to 93.1% in our income- producing properties at December 31, 2003. In our core portfolio we see moderate improvement continuing in 2004, as well as more lease up of additional space related to properties under redevelopment.  We have also increased our cash dividends over the last three years, paying out $1.14 per common share in 2003 compared to $0.93 in 2000. First Capital Realty’s common share cash dividend has increased consistently over the last decade. In addition to being extremely active on the acquisition and development front, we also successfully completed a number of capital markets transactions since 2000 that have significantly increased our equity base and the liquidity of our common shares. Through the last three years to date, over 25.0 million common shares have been issued, growing our equity market capitalization from $137 million at the end of 2000 to over $710 million and our public float from $18 million to over $200 million. It is important to note that, despite the significant 40% In September 2001, First Capital Realty made its initial equity investment in Equity One through a tax-deferred exchange for the Company’s U.S. portfolio. Equity One, a U.S. REIT traded on the New York Stock Exchange, is also focused on neighbourhood and community shopping centres with a strong presence in large and growing urban markets located primarily in Florida, Texas and Georgia. Today, Equity One owns 190 properties aggregating approximately 20.7 million square feet of gross leasable area. Its equity market capitalization was approximately US$1.2 billion at March 2004, and it has investment grade credit ratings from both Standard & Poor’s and Moody’s. In 2003, Equity One completed the acquisition of IRT Property Company, transforming itself into one of the largest shopping centre landlords in the southern United States and the dominant player in Florida. We currently own 18% of Equity One, and remain its second largest shareholder. Since acquiring our position in Equity One, our investment to date has generated a total pre-tax return of approximately 62%. Going to the Market A Successful U.S. Investment Strategy Applying a growth strategy to a stable business 6 First Capital Realty Annual Report 2003