NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS The majority of the leases also provide for rental increases and expense recoveries based on increases in the Consumer Price Index or increases  in operating expenses, or both. These increases generally are payable in equal installments throughout the year based on estimates, with adjustments made in the succeeding year. Expense recoveries for the years ended December 31, 2002, 2001 and 2000 amounted to $12,680,000, $11,456,000 and $11,129,000, respectively. In addition, certain retail leases provide for percentage rent based on sales in excess of the minimum specified in the tenant's lease. Percentage rent amounted to $1,850,000, $2,113,000 and $2,097,000, for the years ended December 31, 2002, 2001 and 2000, respectively.  The December 31, 2002 and 2001, depreciation adjusted cost of properties collateralizing the mortgage notes payable totaled $280,051,000  and $264,831,000, respectively. Certain loans  are subject to financial covenant tests, the most significant of which are debt service coverage  and loan to asset value requirements under the variable rate loans. The Company believes it is  in compliance with all such covenants. Notes payable at December 31, 2002 and 2001, totaling $266,392,000 and $242,168,000, respectively, are guaranteed by members of The Saul Organization. As of December 31, 2002, the scheduled maturities of all debt including scheduled principal amortization, for years ended December 31,  are as follows: Certain properties are subject to noncancelable long-term leases which apply to land underlying the Shopping Centers. Certain of the leases provide for periodic adjustments of the base annual rent and require the payment of real estate taxes on the underlying land. The leases will expire between  2058 and 2068. Reflected in the accompanying consolidated financial statements is minimum ground rent expense of $164,000, $167,000 and $157,000, for each of the years ended December 31, 2002, 2001 and 2000, respectively. The future minimum rental commitments under these ground leases are as follows: Lease income includes primarily base rent arising from noncancelable commercial leases. Base rent for the years ended December 31, 2002, 2001 and 2000, amounted to $75,699,000, $69,662,000 and $63,837,000, respectively. Future contractual payments under noncancelable leases for years ended December 31, is as follows: Ground Lease Rental Commitments (In thousands) Annually Total 2003-2007 Thereafter Beacon Center $ 53 $ 3,236 Olney 51 4,423 Southdale 60 3,605 Total $ 164 $11,264 Future Contractual Payments (In thousands) 2003 $ 70,701 2004 64,776 2005 58,094 2006 51,148 2007 44,966 Thereafter 244,364 Total $ 534,049 5. LEASE AGREEMENTS 6. LONG-TERM LEASE OBLIGATIONS * A total of $39,374 of the 2003 maturities was refinanced in January 2003. Debt Maturity Schedule (In thousands) 2003* $ 46,940 2004 23,988 2005 54,720 2006 8,635 2007 9,357 Thereafter 237,103 Total $ 380,743 24