VORNADO REALTY TRUST 83 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 14.  Minority Interest The minority interest represents limited partners’, other than the Company, interests in the Operating Partnership and are  comprised of:  Outstanding Units at Preferred or Per Unit Annual Conversion December 31, December 31, Liquidation Distribution Rate Into Class Units Series 2003 2002 Preference Rate A Units Common: Class A (1) 19,223,465 20,956,446 — $ 2.72 N/A Convertible Preferred: 5.0% B-1 Convertible Preferred 844,894 899,566 $50.00 $ 2.50 .914 8.0% B-2 Convertible Preferred 445,576 449,783 $50.00 $ 4.00 .914 6.5% C-1 Convertible Preferred  — 747,912 $50.00 $ 3.25 1.1431 6.5% E-1 Convertible Preferred (2) 4,998,000 4,998,000 $50.00 $ 3.25 1.1364 9.00% F-1 Preferred (3) 400,000 400,000 $25.00 $ 2.25 (4) Perpetual Preferred: (4) 8.5% D-1 Cumulative  Redeemable Preferred (5) — 3,500,000 $25.00 $ 2.125 N/A 8.375% D-2 Cumulative  Redeemable Preferred (6) 549,336 549,336 $50.00 $ 4.1875 N/A 8.25% D-3 Cumulative  Redeemable Preferred 8,000,000 8,000,000 $25.00 $ 2.0625 N/A 8.25% D-4 Cumulative  Redeemable Preferred 5,000,000 5,000,000 $25.00 $ 2.0625 N/A 8.25% D-5 Cumulative  Redeemable Preferred 6,480,000 6,480,000 $25.00 $ 2.0625 N/A 8.25% D-6 Cumulative  Redeemable Preferred 840,000 840,000 $25.00 $ 2.0625 N/A 8.25% D-7 Cumulative Redeemable Preferred 7,200,000 7,200,000 $25.00 $ 2.0625 N/A 8.25% D-8 Cumulative  Redeemable Preferred 360,000 360,000 $25.00 $ 2.0625 N/A 8.25% D-9 Cumulative  Redeemable Preferred 1,800,000 1,800,000 $25.00 $ 2.0625 N/A 7.00% D-10 Cumulative  Redeemable Preferred 3,200,000 — $25.00 $ 1.75 N/A (1) Class A units are redeemable at the option of the holder for common shares of beneficial interest in Vornado, on a one-for-one basis, or at the Company’s option for cash. (2) In February 2004, all of the Series E-1 units were converted into 5,679,727 V ornado common shares.  (3) The holders of the Series F-1 preferred units have the right to require the Company to redeem the units for cash equal to the liqui- dation preference or, at the Company’s option, by issuing a variable number of V ornado common shares with a value equal to the liquidation value. On July 1, 2003, upon the adoption of SFAS No. 150—Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity the Company was required to include the liquidation value of these F-1 preferred units as a liability on the consolidated balance sheet as opposed to their prior classification as minority interest because of the possible settlement of this obligation by issuing a variable number of Vornado common shares. In addition, from July 1, 2003, distributions to the holders of the F-1 preferred units are included as a component of interest expense as opposed to their prior classification as minority interest expense. (4) Convertible at the option of the holder for an equivalent amount of the Vornado preferred shares and redeemable at the Company’s option after the 5th anniversar of the date of issuance (ranging from December 1998 to September 2001). (5) The Company redeemed all of its 8.5% Series D-1 Cumulative Redeemable Preferred Units on November 11, 2003 at a redemption price equal to the par value of $25.00 per unit or an aggregate of $87.5 million. This amount exceeded the carrying amount by $2,100,000 representing the original issuance costs. Upon redemption, these issuance costs were recorded as a reduction to earnings in arriving at net income applicable to common shares in accordance with the July 2003 EITF clarification of Topic D-42.  (6) The Company redeemed all of its 8.375% Series D-2 Cumulative Redeemable Preferred Units on January 6, 2004 at a redemption price equal to $50 per unit or an aggregate of $27.5 million.