content_image/16976.jpg content_image/16975.jpg
## 18 Segmented Information 

## 19 First Capital Inc. Transaction 

The Company and its subsidiaries operate in the shopping centre segment of the real estate industry in both Canada and the United States. 

Operating income by geographic segment for the year ended December 31, 2003, is summarized as follows: 

<img src='content_image/16976.jpg'>

Operating income by geographic segment for the year ended December 31, 2002, is summarized as follows: 

<img src='content_image/16975.jpg'>

Effective April 1, 2002, the Company purchased from its largest shareholder, Gazit 1997 Inc. (“Gazit”), all of the issued and outstanding common shares of First Capital Inc. (“FCI”). The Company received a valuation of FCI and an independent opinion as to the fairness, from a financial point of view, of the consideration paid. The acquisition was accounted for using the purchase method. Mortgages payable secured by seven of the eight properties totalled $22.9 million, with a weighted average interest rate of 7.7%. The aggregate purchase price of $31.65 million for the FCI shares was satisfied through the issuance of 601,630 common shares of the Company (at $12.30 a share) and $28.16 million in principal amount of the Company’s 7.25% convertible debentures. The amount of 7.25% convertible debentures was calculated based on a price of $84.34 per $100 principal amount. In addition, in connection with post-closing funding requirements of FCI, the 

