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## Income Statement Data: 

<img src='content_image/86502.jpg'>

(1) 2003 includes the Company’s $14,868 share of Alexander’ stock appreciation rights compensation expense. 2002 includes the Company’s $3,431 share of Alexander’s gain on sale of its Third Avenue property. Equity in income in 2001 includes (i) the Company’s $6,298 share of Alexander’ gain on sale of its Fordham Road property, (ii) a charge of $1,684 representing the Company’ share of abandoned development costs and (iii) $1,170 representing the Company’s share of Alexander’s gain on the early extinguishment of debt on its Fordham Road property Management and leasing fee income include $350 and $520 paid to the Company in 2002 and 2001 in connection with sales of real estate. 

(2) Alexander’s capitalizes the fees and interest charged by the Company Because the Company owns 33.1% of Alexander’s, the Company recognizes 66.9% of such amounts as income and the remainder is reflected as a reduction of the Company’s carrying amount of the investment in Alexander’s. 

(3) The Company owned a 34% interest in CESCR. On Januar 1, 2002, the Company acquired the remaining 66% of CESCR it did not previously own. Accordingly, CESCR is consolidated as of January 1, 2002. 

(4) Represents the Company’s interests in 330 Madison Avenue (24.8%), 825 Seventh Avenue (50%), Fairfax Square (20%), Kaempfer equity interests in six office buildings (.1% to 10%) and 570 Lexington Avenue (50%). On May 17, 2001, the Company sold its 50% interest in 570 Lexington Avenue for $60,000, resulting in a gain of $12,445 which is not included in income in the table above. 

(5) On June 11, 2003, the Company exercised its right to exchange the 3,972,447 units it owned in Prime Group Realty L.P. for 3,972,447 common shares in Prime Group Realty Trust (NYSE:PGE). Prior to the exchange, the Company accounted for its investment in the partnership on the equity method. Subsequent to the exchange, the Company is accounting for its investment in PGE as a marketable equity security-available for sale. 

## Alexander’s 

The Company owns 1,655,000 common shares or 33.1% of the outstanding common stock of Alexander’s at December 31, 2003. Alexander’s is managed by and its properties ar leased and developed by the Company pursuant to management, leasing and development agreements with one-year terms expiring in March of each year, which are automatically renewable. In conjunction with the closing of the Alexander’s Lexington A venue construction loan on July 3, 2002, these agreements were revised to cover the Alexander’s Lexington Avenue property separately. Further, the Lexington Avenue management and development agreements were amended to provide for a term lasting until substantial completion of the development of the property, with automatic renewals, and for the payment of the development fee upon the earlier of January 3, 2006, or the payment in full of the construction loan encumbering the pr operty. The Company is entitled to a development fee estimated to 

