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While 2002 was another year of increasing cash flow growth for the Saul Centers operating portfolio, it was an even more successful year for site acquisitions. Three significant Northern Virginia acquisitions containing over 44 acres should produce sound growth prospects through the balance of this decade. Saul Centers has the zoning to develop over 600,000 square feet of retail and mixed-use space on these parcels. 

## 2002 Development Site Acquisitions 

I n March, we purchased 24 acres of undeveloped retail land in the Broadlands section of the Dulles Technology Corridor. The site is located adjacent to the Claiborne Parkway exit of the Dulles Greenway, in Loudoun County, Virginia. The Dulles Greenway is the “gateway to Loudoun County”, a 14-mile extension of the Dulles Toll Road connecting Washington Dulles International Airport with historic Leesburg, Virginia. Broadlands is a 1,500 acre planned community consisting of 3,500 residences, over 2,000 of which are constructed. The land is zoned to accommodate approximately 225,000 square feet of neighborhood and community retail development. 

The Company has signed a lease with and will build a 59,000 square foot supermarket for Safeway to anchor this development, to be known as Broadlands Village. Safeway is the second leading grocer in the metropolitan Washington, DC market and operates approximately 180 stores in the mid-Atlantic region. We have obtained building permits from Loudoun County for the 112,000 square foot initial phase of this center. Adjacent to Safeway, we will construct 42,000 square feet of small shops and lease four pad sites 

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## MESSAGE TO OUR SHAREHOLDERS 

totaling approximately 11,000 square feet of free-standing building users. Construction commenced in late- December 2002, and we expect to substantially complete this first phase of the center in the fall of 2003. A total of 65% of the space has been pre-leased and leasing interest remains strong for much of the remaining small shop space. 

In December, the Company purchased approximately 19 acres of undeveloped land located within the Lansdowne community in Loudoun County, Virginia. The land is zoned to accommodate approximately 150,000 square feet of neighborhood and community retail development. The Broadlands and Lansdowne acquisitions expand the Company’s Loudoun County investments, where we are also the owner and developer of the 210,000 square foot Ashburn Village neighborhood shopping center. Ashburn Village is a very successful 

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