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## Annual minimum rent by geographic region 

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## Lease Maturities 

First Capital Realty’s lease maturities are spread on a property-by-property basis, which helps to generate a more stable cash flow and mitigate risks related to changing market conditions. Lease expirations in each of the next ten years range from 3.7% to 8.9% of the total leased area in the Canadian portfolio. 

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## Geographic Diversification 

The existing First Capital Realty portfolio is concentrated in Ontario, Québec and Alberta. As a result, economic and real estate conditions in these regions will significantly affect the Company’s revenues and the value of its properties. There is a trade-off between operational efficiencies and market influence that can be achieved by geographic concentration, and vulnerability to local market influences that can be avoided by geographic diversification. First Capital Realty will seek to add properties in areas where it currently owns shopping centres to take advantage of local market knowledge, anchor tenant relationships and synergies in both management and leasing. The Company does this while taking into account local market conditions that can affect occupancy rates and rental income levels. 

## Financial Risk 

The Company has outstanding indebtedness in the form of mortgages, credit facilities, and convertible debentures and, as such, is subject to the risks normally associated with debt financing, including the risk that the Company’s cash flow will be insufficient to meet required payments of principal and interest. In particular, the aggregate principal amount of the convertible debentures due and payable in 2007 and 2008 is $359 million. 

