Overview—Leasing Activity MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS VORNADO REALTY TRUST 5 The following table summarizes, by business segment, the leasing statistics which the Company views as key performance indicators.  As of December 31, 2003 In addition to the leasing activity in the table above, in the year ended December 31, 2003, 66,000 square feet of retail space included in the New York City Office segment was leased at an initial rent of $220.97 per square foot and in the three months ended December 31, 2003, 21,000 square feet of retail space was leased at an initial rent of $278.27 per square foot.  Office Merchandise Mart Temperature  Controlled  (SQUARE FEET AND CUBIC FEET IN THOUSANDS) New York City CESCR Retail Office Showroom Logistics Square feet/cubic feet 13,253 13,963 12,888 2,808 5,624 17,476/440,700 Number of properties 20 63 60 9 9 87 Occupancy rate 95.2% 93.9% 93.0% 92.6% 95.1% 76.2% Leasing Activity: Year Ended December 31, 2003: Square feet 925 2,848 1,046 270 1,157 — Initial rent (1) $44.60 $30.26 $15.56 $21.24 $23.43 — Weighted average lease terms (years) 9.1 4.8 12.8 9.8 5.2 Increase (decrease) in occupancy from  December 31, 2002 (0.6%) 0.3% 4.7% 0.9% (0.1%) (2.3%) Rent per square foot on relet space: Square feet 677 2,510 1,046 270 1,157 — Initial rent (1) $44.41 $30.62 $15.56 $21.24 $23.43 — Prior escalated rent $38.51 $29.86 $13.75 $22.44 $23.28 — Percentage increase 15.3% 2.5% 13.2% (5.3%) 0.6% — Rent per square foot on space previously vacant: Square feet 248 338 — — — — Initial rent (1) $45.09 $27.58 — — — — Tenant improvements per square foot $26.41 $10.89 $ 3.71 $29.74 $ 7.58 — Leasing commissions per square foot $11.59 $ 2.65 $ 0.75 $10.61 $ 0.24 — Quarter ended December 31, 2003: Square feet 305 490 168 89 234 — Initial rent (1) $42.12 $29.28 $15.87 $19.04 $25.95 — Weighted average lease terms (years) 8.4 4.8 8.4 9.1 4.9 — Increase (decrease) in occupancy from  September 30, 2003 (0.6%) 0.6% 2.0% — 0.4% (0.5%) Rent per square foot on relet space: Square feet 264 388 168 89 234 — Initial rent (1) $42.02 $29.99 $15.87 $19.04 $25.95 — Prior escalated rent $36.50 $29.31 $14.07 $24.59 $26.25 — Percentage increase (decrease) 15.1% 2.3% 12.8% (22.6%) (1.1%) — Rent per square foot on space previously vacant: Square feet 41 102 — — — — Initial rent (1) $42.69 $26.58 — — — — Tenant improvements per square foot $20.18 $12.98 $ 0.68 $14.13 $ 6.62 — Leasing commissions per square foot $ 8.13 $ 3.32 $ 0.45 $ 8.62 $ 0.41 —