VORNADO REALTY TRUST 49 CONSOLIDA TED STATEMENTS OF SHAREHOLDERS EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Accumulated Distributions Other Preferred Common Additional in Excess of Comprehensive Shareholders’ Comprehensive (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Shares Shares Capital Net Income Loss Other Equity Income Balance, January 1, 2001 $ 481,460 $3,472 $1,709,284 $ (90,366) $ (20,426) $ (4,704) $ 2,078,720 $ 215,013 Net Income — — — 263,738 — — 263,738 $ 263,738 Dividends paid on Preferred Shares Series A Preferred Shares ($3.25 per share) — — — (19,505) — — (19,505) — Series B Preferred Shares ($2.125 per share) — — — (7,225) — — (7,225) — Series C Preferred Shares ($2.125 per share) — — — (9,775) — — (9,775) — Dividends paid on common shares ($2.32 per share) — — — (201,813) — — (201,813) — Dividends payable on common shares ($.31 per share) — — — (30,701) — — (30,701) — Common shares issued, net of shelf registration costs of $260 — 391 376,542 — — — 376,933 — Common shares issued under employees’ share plan — 12 9,947 — — — 9,959 — Conversion of Series A Preferred Shares  to common shares (13,441) 15 13,426 — — — — — Redemption of units for common shares — 70 52,017 — — — 52,087 — Accretion of issuance expenses on  preferred shares 958 — — — — — 958 — Common shares issued in connection with dividend reinvestment plan — 1 1,296 — — — 1,297 — Change in unrealized net loss on securities available for sale — — — — 18,178 — 18,178 18,178 Deferred compensation shares earned but not yet delivered — — — — — 38,253 38,253 — Pension obligations — — — — (732) — (732) (732) Balance, December 31, 2001 468,977 3,961 2,162,512 (95,647) (2,980) 33,549 2,570,372 $ 281,184 Net Income — — — 232,903 — — 232,903 $ 232,903 Dividends paid on Preferred Shares Series A Preferred Shares ($3.25 per share) — — — (6,167) — — (6,167) — Series B Preferred Shares ($2.125 per share) — — — (7,225) — — (7,225) — Series C Preferred Shares ($2.125 per share) — — — (9,775) — — (9,775) — Net proceeds from issuance of common shares — 56 56,397 — — — 56,453 — Conversion of Series A Preferred shares to common shares (203,489) 225 203,264 — — — — — Deferred compensation shares — 2 2,627 — — 25,778 28,407 — Dividends paid on common shares ($2.97 per share, including $.31 for 2001) — — — (314,419) — — (314,419) — Reversal of dividends payable on  common shares in 2001  ($.31 per share) — — — 30,701 — — 30,701 — Common shares issued under employees’ share plan — 36 24,349 — — — 24,385 — Redemption of units for common shares — 38 30,380 — — — 30,418 — Common shares issued in connection with dividend reinvestment plan — 2 1,885 — — — 1,887 — Change in unrealized net loss on securities available for sale — — — — (8,936) — (8,936) (8,936) Other non-cash changes, primarily pension obligations — — — — (1,648) — (1,648) (1,648) Balance, December 31, 2002 $ 265,488 $4,320 $2,481,414 $(169,629) $ (13,564) $59,327 $ 2,627,356 $ 222,319 See notes to consolidated financial statements.