MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS VORNADO REALTY TRUST 31 Below ar the details of the changes by segment in EBITDA for the three months ended December 31, 2003 compared to the three months ended December 31, 2002. (1) Represents operations, which were owned for the same period in each year. (2) EBITDA and same store percentage increase (decrease) was $236,952 ($80,419 excluding gains on sale of real estate of $156,533) and 7.6% (excluding such gains) for the New York City office portfolio and $73,466 and (2.1%) for the CESCR portfolio. Below ar the details of the changes by segment in EBITDA for the three months ended December 31, 2003 compared to the three months ended September 30, 2003: (1) Represents operations, which were owned for the same period in each year. (2) EBITDA and same store percentage increase was $ 236,952 ($80,419 excluding gains on sale of real estate of $156,533) and 2.8% (excluding such gains) for the New York City office portfolio and $73,466 and (.2%) for the CESCR portfolio. (3) Reflects an increase in the tenant’ gross profits, partially due to seasonality of tenant’s operations and an increase in the tenant’s cash available to pay rent in the three months ended September 30, 2003. Below is a reconciliation of net income and EBITDA for the thr ee months ended September 30, 2003. Temperature Merchandise Controlled (AMOUNTS IN THOUSANDS) T otal Office Retail Mart Logistics Other Three months ended December 31, 2002 $192,560 $ 151,375 $ 29,911 $25,336 $ 18,975 $(33,037) 2002 Operations: Same store operations (1) 3,967 2,103 963 1,454 Acquisitions, dispositions  and non-recurring  income and expenses 155,076 5,516 4,874 1,664 Three months ended December 31, 2003 $357,882 $ 310,418 $ 37,530 $31,173 $ 22,093 $(43,332) % increase in same store operations 2.8% (2) 7.0% 3.5% 7.5% Temperature Merchandise Controlled (AMOUNTS IN THOUSANDS) T otal Office Retail Mart Logistics Other Three months ended September 30, 2003 $ 216,795 $ 156,870 $ 37,401 $28,794 $ 17,257 $(23,527) 2003 Operations: Same store operations (1) 1,986 1,234 995 3,900  (3) Acquisitions, dispositions  and non-recurring  income and expenses 151,562 (1,105) 1,384 936 Three months ended December 31, 2003 $ 357,882 $ 310,418 $ 37,530 $31,173 $ 22,093 $(43,332) % increase in same store operations 1.4% (2) 3.7% 3.6% 23.1% (3) Temperature Merchandise Controlled (AMOUNTS IN THOUSANDS) T otal Office Retail Mart Logistics Other Net income (loss) for the three  months ended September 30, 2003 $ 76,060 $ 84,467 $16,812 $17,478 $ 2,401 $(45,098) Interest and debt expense 73,180 34,150 15,741 3,840 6,169 13,280 Depreciation and amortization 67,555 38,253 4,848 7,476 8,687 8,291 EBITDA for the three months ended September 30, 2003 $ 216,795 $156,870 $37,401 $28,794 $17,257 $(23,527)