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## Management’s Discussion and Analysis continued 

## Interest on Debentures and Convertible Debentures 

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Interest expense on convertible debentures and debentures declined due to the reduction in the weighted average liability component of the Company’s outstanding convertible debentures and debentures from 2002 to 2003. 

## Corporate Expenses 

Corporate expenses are comprised of the following: 

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Salaries, wages and benefits incurred in 2003 exceeded the level incurred in 2002 by $0.9 million as a result of the additional employees required for a growing portfolio and increasing acquisition and development activity. Capital taxes have increased $0.3 million as a result of the acquisition and development activity of the Company. The Company manages acquisitions, development and redevelopment activities internally. Under Canadian GAAP certain expenditures, if internally incurred, are not capitalized to the costs of acquired or developed properties. However, certain corporate expenses relating to development and redevelopment projects are capitalized, in accordance with GAAP, to land and shopping centres under development as incurred. Other general and admini- strative costs are comprised of professional fees, directors fees, insurance and other corporate costs. 

## Amortization 

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Amortization for the year ended December 31, 2003 totalled $12.6 million, an increase of $2.6 million over 2002. This increase resulted from new acquisitions in 2003, development and 

