CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) SAUL CENTERS, INC. Additional (Dollars in thousands, Common Paid-in Accumulated except per share amounts) Stock Capital Deficit Total Stockholders’ equity (deficit) Balance, December 31, 1999 $ 133  $ 44,616 $ (76,608) $ (31,859) Issuance of 535,390 shares of  common stock 6  7,978  -- 7,984  Net income -- -- 14,045  14,045  Distributions ($1.17 per share) -- -- (15,915) (15,915) Distributions payable ($.39 per share) -- -- (5,410) (5,410) Balance, December 31, 2000 139  52,594  (83,888) (31,155) Issuance of 666,268 shares of  common stock 6  11,970  -- 11,976  Net income -- -- 17,314  17,314  Distributions ($1.17 per share) -- -- (16,588) (16,588) Distributions payable ($.39 per share) -- -- (5,670) (5,670) Balance, December 31, 2001 145  64,564  (88,832) (24,123) Issuance of 660,779 shares of  common stock 7  14,567  -- 14,574  Net income -- -- 19,566  19,566  Distributions ($1.17 per share) -- -- (17,360) (17,360) Distributions payable ($.39 per share) -- -- (5,924) (5,924) Balance, December 31, 2002 $ 152  $ 79,131  $ (92,550) $ (13,267) The accompanying notes are an integral part of these statements. 16