Giant Food anchored center which we developed and constructed in phases  between 1994 and 2002; it is situated within  a largely completed 5,000 home planned community.  In addition to the Broadlands and Landsdowne land parcels, Saul Centers purchased Clarendon Center, located in Arlington, Virginia. Clarendon Center is a 1.25 acre site with an existing and vacant 70,000 square foot office building with surface parking for 104 cars. It is located directly across the street from the Company’s Clarendon and Clarendon Station properties, and adjacent to the Clarendon Metro rail station. The site is zoned for over 250,000 rentable square feet of commercial space. We plan to redevelop the site and have begun preparing conceptual plans and layouts for the county approval and permitting process. The cash flow from buildings developed and constructed on these three sites should serve  to enhance the financial performance of our existing 6.3 million square feet of commercial space. We remain committed to selectively enlarging and strengthening our metropolitan Washington area retail and office portfolio  over the coming years. T his past year was yet another year  of economic uncertainty, historically  low interest rates, and a very challenging environment for commercial real estate nation- wide. Our Washington metropolitan area focus and ownership of primarily in-fill community and neighborhood shopping centers and office properties again enabled us to enjoy another year of solid performance in 2002. Total revenues for the year increased 8.9% to $93,963,000 compared to $86,308,000 for 2001. Operating income before gain on property disposition and minority interests increased 3.3% to $26,210,000 compared to $25,383,000 for 2001. After including gain on property sold and deducting minority interests  the Company reported net income of $19,566,000, or $1.31 per share for 2002, a  per share increase of 7.9% compared to net income of $17,314,000, or $1.22 per share for 2001 (fully diluted basis). The gain on sale of property reported during 2002 of $1,426,000 represents final proceeds from the District of Columbia’s condemnation and purchase of the Company’s Park Road property. For the quarter ended December 31, 2002, revenues increased 8.3% to $24,508,000 compared to $22,620,000 for the comparable period in 2001. The Company reported net income of $5,263,000  or $.35 per share for the quarter ended December 31, 2002, compared to net  income of $5,101,000 or $.35 per share for  2001 (fully diluted basis). a i = “nee “tie TALS OW NE  "| pee : Atem 6 Ashburn Village  2002 Financial Performance MESSAGE TO OUR SHAREHOLDERS