VORNADO REALTY TRUST 87 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2002 Temperature Merchandise Controlled (AMOUNTS IN THOUSANDS) T otal Office Retail Mart Logistics Other (2) Property rentals $ 1,159,002 $793,990 $120,451 $191,197 $ — $ 53,364 Straight-line rents: Contractual rent increases 31,323 27,598 1,777 1,772 — 176 Amortization of free rent 6,796 2,374 3,317 1,105 — — Amortization of acquired below market  leases, net 12,634 12,469 165 — — — Total rentals 1,209,755 836,431 125,710 194,074 — 53,540 Expense reimbursements 154,766 85,420 51,008 14,754 — 3,584 Fee and other income: Tenant cleaning fees — — — — — — Management and leasing fees 14,800 13,317 1,450 33 — — Other 12,918 7,783 172 4,743 — 220 Total revenues 1,392,239 942,951 178,340 213,604 — 57,344 Operating expenses 519,345 330,585 61,500 86,022 — 41,238 Depreciation and amortization 198,601 143,021 14,957 26,716 — 13,907 General and administrative 100,050 33,334 7,640 20,382 — 38,694 Amortization of officer’s deferred compensation expense 27,500 — — — — 27,500 Costs of acquisitions and development not consummated 6,874 — — — — 6,874 Total expenses 852,370 506,940 84,097 133,120 — 128,213 Operating income 539,869 436,011 94,243 80,484 — (70,869) Income applicable to Alexander’s 29,653 — — — — 29,653 Income from partially-owned entities 44,458 1,966 (687) (339) 9,707 33,811 Interest and other investment income 31,685 6,472 323 507 — 24,383 Interest and debt expense (234,113) (138,731) (56,643) (22,948) — (15,791) Net loss on disposition of wholly-owned and  partially-owned assets other than real estate (17,471) — — 2,156 — (19,627) Minority interest (140,933) (3,526) — (2,249) — (135,158) Income before discontinued operations, and  cumulative effect of change in accounting  principle 253,148 302,192 37,236 57,611 9,707 (153,598) Discontinued operations 9,884 15,910 723 — — (6,749) Cumulative effect of change in accounting  principle (30,129) — — — (15,490) (14,639) Net income 232,903 318,102 37,959 57,611 (5,783) (174,986) Cumulative effect of change in accounting  principle 30,129 — — — 15,490 14,639 Interest and debt expense (3) 305,920 143,068 58,409 23,461 25,617 55,365 Depreciation and amortization (3) 257,707 149,361 17,532 27,006 34,474 29,334 EBITDA (1) $ 826,659 $ 610,531 $113,900 $108,078 $ 69,798 $ (75,648) Balance sheet data: Real estate, net 6,579,965 4,880,885 569,015 891,701 — 238,364 Investments and advances to partially-owned entities 961,126 29,421 56,375 5,912 448,295 421,123 Capital expenditures: Acquisitions 2,739,746 2,650,298 89,448 — — — Other 164,162 114,375 3,019 20,852 5,588 20,328 See notes on page 89