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In 2003, Vornado’s Funds From Operations per share increased by 13.6% and FFO Adjusted for Comparability per share increased by 6.5%. EBITDA for each of our business units increased for the year and each business unit (with the exception of Washington Office (3) ) had handsome same store increases—all this performance in a challenging market. 

## Financings 

It is a testament to Vornado’s scale and balance sheet strength that, since January 2003, we generated over $1 billion internally from the capital side of our business (not including cash flow from operations). This was accom- plished while maintaining our credit rating (which we are committed to) and maintaining virtually the same credit ratios. Here is a list of cash proceeds by transaction: 

<img src='content_image/53015.jpg'>

## Dispositions 

<img src='content_image/53016.jpg'>

And we could have generated more. Vornado has substan- tial unused financial capacity that could be realized either from borrowings or from recycling existing assets. We have $10s of millions, and in some instances as much as $100 million or more, of unrealized profits in dozens and dozens of our assets. 

As promised at our September 2003 investor conference, in February 2004, AmeriCold completed a $254 million financing, which was the source of Vornado’s repatriating 

$135 million of its investment in AmeriCold. But this financing did much more—it went a long way to demon- strate the value of this business. Think about it— AmeriCold now carries $800 million of debt (recourse solely to various groups of its assets) at a weighted average interest rate of 6.1%, or about $49 million of annual interest expense, still leaving FFO of $64 million fr om actual cash rents. Mike and I believe that these facts support a value for this investment that is greater than most of our investors and analysts carry. (5) 

