Conservative financing strategy • Aggressively addressed debt maturities  • Completed    million bond issuance • Redeemed convertible preferred stock Financing In    we called for the redemption of the Company’s Series B   .  %  Convertible Preferred Stock. Only   ,   shares were redeemed at the redemption  price. Because of the strong performance of the Company’s common stock,  the remaining preferred shares were converted by the holders and   .   million  shares of the Company’s Common Stock were issued for the conversion of  Series B shares in   .  Floating rate debt (including out-of-the-money caps) at December   ,   , comprised only   % of our share of indebtedness in the U.S. Interest  coverage at    year-end was a strong   .   times.  Our financing strategy is conservative. We own long lived assets and  believe that they should be financed primarily with long term, fixed rate debt.  We also firmly believe that we must be able to access capital in many different  forms, including the unsecured market. Our senior unsecured ratings are  the highest in the regional mall industry. We believe that this philosophy is  appropriate for the long-term success of our company in all cycles of economic  health and capital availability. W e continued to focus on enhancing the quality of our core assets in  ,  and we completed several renovation and/or expansion projects  including: 0 1 0 2 0 3 $19.2 $21.3 $25.8 Total Market Capitalization at December 31, 2003 Unsecured Debt 23% Common Stock 47% 3% Preferred Stock 27% Mortgage Debt 2003 annual report 9 ●  SouthPark Mall in Charlotte, North Carolina – The redevelopment of  SouthPark has been a multi-phase project. Belk’s expanded and renovated  and The Cheesecake Factory was added in   ; a mall renovation and the  ●  Bay Park Square in Green Bay, Wisconsin  – We added Younkers and   ,  square feet of small shops in a former Montgomery Ward space. Eighteen  new tenants opened with the expansion including Aeropostale, Hot Topic,  Yankee Candle, Children’s Place, Charlotte Russe, Wet Seal and American  Eagle. Bay Park is   % occupied and generates sales of approximately $  per square foot. ●  Barton Creek Square in Austin, Texas  – We completed a mall renovation  and added Nordstrom and   ,   square feet of small shops in a former  Montgomery Ward space. Specialty shops added to the mall that are new  to the Austin market include Pottery Barn Kids, Steve Madden, J. Jill and  J. Jill Petite, Talbots Kids, Janie and Jack, Oakley and Dry Ice. Other new  tenants include Williams-Sonoma, Coach, Build-A-Bear Workshop and The  Children’s Place. Barton Creek is   % occupied and generates sales of $  per square foot. ●  The Galleria in Houston, Texas  – We added Nordstrom, Foley’s,   ,  square feet of small shops, and two parking decks. Tenants added or  opening soon include Movado, French Connection, Ferragamo, Brighton  Collectibles, Lucky Brand Jeans, Club Monaco, A/X Armani Exchange,  Steve Madden, Urban Outfitters, L’Occitane en Provence, J. Jill and Brooks  Brothers Women. This center is now one of the largest and most successful  in the U.S., encompassing   .  million square feet and generating total  annual sales in excess of $   million. REDEVELOPMENT ACTIVITIES Total Market Capitalization ($ – billions)