9 Accounts Payable and Accrued Liabilities 10 Convertible Debentures Payable As at December 31, 2003, the Company has outstanding three series of convertible debentures. All of the debentures are unsecured subordinated debentures, require interest payable semi-annually and are convertible into common stock of the Company at the holders’ option until the day prior to the redemption date. In addition, the Company has the right to settle its obligations to repay principal upon redemption or maturity by issuing common stock. If the Company chooses to issue common stock, it is to be valued at 95% of the weighted average trading price for the 20 consecutive trading days ending five days prior to the redemption or maturity date, as may be applicable. In the case of the 7.0% and the 7.25% series, the Company also has the option, subject to regulatory approval, of settling interest due from time to time by way of the issue of common shares valued in the same fashion as with respect to the repayment of principal on those debentures.  The following table summarizes the other terms of the convertible debentures. Deferred income and other includes $0.3 million, representing the value of below-market leases for properties acquired after September 12, 2003. The following table summarizes the components of the Company’s convertible debentures. Holders of the Company’s 8.50% convertible debentures converted $3.4 million principal amount into 227,854 common shares during 2003 (2002 – nil). The remaining $54.0 million principal amount of the 8.50% convertible debentures was redeemed by the Company through the issuance of 3,647,388 common shares (2002 – nil). (thousands of dollars) 2003 2002 Interest Rate Principal Liability Equity Principal Liability Equity 8.50% $ – $ – $ – $ 57,441 $ 15,580 $ 43,557 7.875% 97,522 20,234 81,088 97,522 25,692 74,764 7.00% 99,999 – 102,153 99,999 – 101,314 7.25% 161,702 – 154,316 161,477 – 151,695 $ 359,223 $ 20,234 $ 337,557 $ 416,439 $ 41,272 $ 371,330 Interest Rate Conversion Price Maturity Earliest Redemption Date 7.875% $16.43 per common share January 31, 2007 January 31, 2003 7.00% $22.71 per common share February 28, 2008 February 28, 2004 7.25% $24.40 per common share June 30, 2008 June 30, 2004 (thousands of dollars) 2003 2002 Trade payables and accruals $ 29,631 $ 18,324 Accrued interest 9,696 9,325 Dividends payable 9,399 5,219 Tenant deposits 2,414 1,530 Deferred income and other 3,270 3,958 $ 54,410 $ 38,356 58 First Capital Realty Annual Report 2003 Notes to the Consolidated Financial Statements  continued