VORNADO REALTY TRUST SELECTED FINANCIAL DATA 2 (IN THOUSANDS) 2003 2002 (2) 2001 2000 1999 Other Data Funds From Operations (“FFO”) (1) : Net income applicable to common  shares $439,888 $209,736 $227,233 $195,301 $ 169,081 Cumulative effect of change in  accounting principle — 30,129 4,110 — — Depreciation and amortization of real property 208,624 195,808 119,568 97,744 82,216 Net gain on sale of real estate (161,789) — (12,445) (10,965) — Net gain from insurance settlement and condemnation proceedings — — (3,050) — — Proportionate share of adjustments to  equity in income of partially-owned  entities to arrive at funds from  operations: Depreciation and amortization  of real property 54,762 51,881 65,588 68,743 57,127 Net gains on sale of real estate (6,733) (3,431) (6,298) — — Minority interest’s share of above  adjustments (20,080) (50,498) (19,679) (19,159) (10,702) Dilutive effect of Series A Preferred  Share dividends 3,570 6,150 19,505 21,689 16,268 FFO applicable to common shares  (1) $518,242 $439,775 $394,532 $353,353 $ 313,990 Year Ended December 31, (1) Funds From Operations (“FFO”) does not represent cash generated from operating activities in accordance with accounting princi- ples generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs which is disclosed in the Consolidated Statements of Cash Flows for the applicable periods. FFO should not be considered as an alterna- tive to net income as an indicator of the Company’ operating performance or as an alternative to cash flows as a measure of liquidity. Management considers FFO a relevant supplemental measure of operating performance because it provides a basis for comparison among REITs. FFO is computed in accordance with NAREIT’ definition, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with NAREIT’s definition. (2) Operating results for the year ended December 31, 2002, reflect the Company’s Januar y 1, 2002 acquisition of the remaining 66% of Charles E. Smith Commercial Realty L.P (“CESCR”) and the resulting consolidation of CESCR’s operations. 