MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS VORNADO REALTY TRUST 13 (3) Other EBITDA is comprised of: (A) Includes net gains of $9,200 on sales of real estate and $1,600 on the early extinguishment of debt, partially offset by a charge of $1,210 for an impairment loss and a litigation settlement.  (B) EBITDA for the year ended December 31, 2003, reflects the Company’ share of Alexander’s stock appreciation rights compensation expense of $14,868 and the Company’ $1,589 share of EBITDA resulting from the commencement of Alexander’s lease with Bloomberg (87% of the space) on November 15, 2003 at Alexander’ s 731 Lexington Avenue property. EBITDA for the year ended December 31, 2002 and 2001 includes $3,524 and $6,298, respectively representing the Company’s share of Alexander’s gain on the sale of its Third Avenue and Fordham Road properties. The following table sets forth the percentage of the Company’s EBITDA by segment for the years ended December 31, 2003, 2002 and 2001. EBITDA for the year ended December 31, 2003, includes gains on sale of real estate of $161,789,000, of which $157,200,000 and $4,589,000 relate to the New York Office and Retail segments, respectively. The pro forma column gives effect to the January 1, 2002 acquisition by the Company of the remaining 66% interest in CESCR described previously as if it had occurred on January 1, 2001. Year Ended December 31, For the Year Ended December 31, (AMOUNTS IN THOUSANDS) 2003 2002 2001 Newkirk Master Limited Partnership: Equity in income $ 68,341 (A) $ 60,756 $ 54,695 Interest and other income 8,532 8,795 8,700 Alexander’s (B) 23,001 39,436 19,362 Industrial warehouses 6,208 6,223 6,639 Palisades (placed in service on March 1, 2002) 5,006 161 — Hotel Pennsylvania 4,573 7,636 16,978 Student Housing 2,000 2,340 2,428 400 North LaSalle (phased into service beginning October 2003) (680) — — 116,981 125,347 108,802 Minority interest expense (177,556) (135,158) (109,897) Corporate general and administrative expenses (51,461) (34,743) (33,515) Investment income and other 28,350 22,907 44,222 Net gain on sale of marketable securities 2,950 12,346 — Primestone loss on settlement of guarantees (2003) and for eclosure  and impairment losses (2002) (1,388) (35,757) — Amortization of officer’s deferred compensation expense — (27,500) — Write-off of 20 Times Square pre-development costs (2002) and World  Trade Center acquisition costs (2001) — (6,874) (5,223) Gain on transfer of mortgages — 2,096 — Net gain on sale of air rights — 1,688 — After-tax net gain on sale of Park Laurel condominium units — — 15,657 Write-off of net investment in Russian Tea Room — — (7,374) Write-off of investments in technology companies — — (16,513) $ (82,124) $ (75,648) $ (3,841) 2003 2002 2001 2001 (Pro forma) Office: New York City 47% 39% 36% 44% CESCR 28% 35% 28% 13% Total 75% 74% 64% 57% Retail 14% 14% 14% 17% Merchandise Mart Properties 11% 13% 13% 16% Temperature Controlled Logistics 8% 8% 9% 11% Other (8%) (9%) 0% (1%) 100% 100% 100% 100% Percentage of EBITDA