VORNADO REALTY TRUST 3 MANAGEMENT’S DISCUSSION AND ANAL YSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATIONS INDEX Overview 4 Overview—Leasing Activity 5 Critical Accounting Policies 7 Results of Operations: Years Ended December 31, 2003 and 2002 14 Years Ended December 31, 2002 and 2001 23 Supplemental Information: Summary of Net Income and EBITDA for the Three Months Ended  December 31, 2003 and 2002 29 Changes by Segment in EBITDA for the Three Months Ended  December 31, 2003 and 2002 31 Changes by Segment in EBITDA for the Three Months Ended  December 31, 2003 as Compared to September 30, 2003 31 Related Party Disclosure 32 Liquidity and Capital Resources: Certain Future Cash Requirements 35 Financing Activities and Contractual Obligations 37 Cash Flows for the Year Ended December 31, 2003 38 Cash Flows for the Year Ended December 31, 2002 42 Cash Flows for the Year Ended December 31, 2001 43 Funds From Operations for the Years Ended December 31, 2003 and 2002 44 Recently Issued Accounting Standards 46