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## 2003 Meeting our long-term objectives 

## Operating and financial highlights 

We expanded our portfolio. Acquisition of income-producing properties and development activities added 2.2 million square feet of gross leasable area for a total cost of $346 million. 

We grew our cash flow. Portfolio growth generated a 25% increase in net operating income and a 38% rise in funds from operations, prior to one-time lease termination income. 

We reduced our leverage. Capital market activities reduced our ratio of total debt to market capitalization to 66% from 81%, and increased our publicly-traded float of common shares by 243%. 

## Acquisition and development highlights 

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Our growth was accretive. Funds from operations per common share rose 4% prior to lease termination income despite a 27% increase in the weighted average number of diluted shares. 

We enhanced returns for shareholders. We increased our common share dividends in 2003. Our shareholders achieved a 40% total return in 2003. 

Our U.S. Investment is creating value. With the acquisition of IRT Property Company, Equity One transformed itself into one of the largest shopping centre landlords in the southern United States and the dominant player in Florida. 

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