TO OUR SHAREHOLDERS, CONTINUED Maintaining Our Financial Strength In Westchester County, New York, Mack-Cali has been designated the developer of the “North 60” bio-science research park, adjacent to Westchester Medical Center. While these projects are just in their preliminary stages, they have the potential to create immense value for our Company. On the financial front, we have consistently managed our portfolio under the conservative principles of strong  coverage ratios, low leverage, and a high level of unencumbered assets. In 2002, we obtained financing at attractive rates and lengthened our debt maturity profile in a $90 million debt exchange with Teachers Insurance Annuity Association. Our balance sheet continues to be one of the strongest and most flex- ible in the industry, allowing us to capitalize on sizeable growth opportunities. We a re f o r t u n a t e t o h ave a d ive r s e a n d s t ro n g c re d i t - q u a l i t y t e n a n t b a s e t h a t provides a stable, high-quality earnings stream for our Company. While this year revenues declined 1 percent, from $575.3 million to $569.6 million, our funds from operations rose 4.5 percent, from $260.5 million to $272.3 million, and our net income increased 6.1 percent, from $131.7 million to $139.7 million. (See pages 62 and 63 of Form 10-K.) We ’re ve r y p ro u d t o re p o r t t h a t M a c k - C a l i i n c re a s e d i t s d iv i d e n d f o r t h e e i g h t h ye a r i n a row, f ro m $ 2 . 4 8 to $2.52 per share on an annualized basis.We also maintained our solid investment grade credit ratings and received a positive outlook from Moody’s. 6 …we have consistently managed our portfolio under the conservative principles of strong coverage ratios, low leverage, and a high level of unencumbered assets.