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## 2003 FOURTH QUARTER RESULTS 

## Quarterly Analysis 

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The Company acquired three properties during the fourth quarter of 2003, for $97 million, increasing the size of the portfolio by 514,000 square feet. These properties were financed with $51 million fixed rate mortgage debt at a weighted average rate of 6.27%. In addition, 279,000 square feet of newly developed space came on line during the quarter. 

Net operating income increased to $27.8 million from $23.4 million in the fourth quarter of the prior year. $4.0 million of the increase was due to 2003 acquisitions, $0.2 million was the incremental impact of acquisitions made in the fourth quarter of the prior year, $1.5 million was due to developments coming on line during the year, $0.3 million was from same property growth. These increases were partially offset by a $1.6 million one-time lease termination income received in the fourth quarter of 2002. 

The strength of the acquisitions and leasing in the fourth quarter is further reflected in the increase in the occupancy levels of the portfolio from 92.8% at September 30, 2003 to 93.1% at the end of December. 

In addition to the growth in the portfolio, the Company also increased the number of shares outstanding during the quarter, by issuing 5.9 million new shares. The redemption and conversions of the 8.5% convertible debentures resulted in the issuance of 3.9 million shares; 1.6 million shares were issued as a result of exercise of the share purchase warrants; and 0.4 million shares were issued as a result of satisfying the interest payment on the 7.25% convertible debentures in shares. 

