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The December 31, 2002 and 2001, depreciation adjusted cost of properties collateralizing the mortgage notes payable totaled $280,051,000 and $264,831,000, respectively. Certain loans are subject to financial covenant tests, the most significant of which are debt service coverage and loan to asset value requirements under the variable rate loans. The Company believes it is in compliance with all such covenants. Notes payable at December 31, 2002 and 2001, totaling $266,392,000 and $242,168,000, respectively, are guaranteed by members of The Saul Organization. 

As of December 31, 2002, the scheduled maturities of all debt including scheduled principal amortization, for years ended December 31, are as follows: 

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* A total of $39,374 of the 2003 maturities was refinanced in January 2003. 

## 5. LEASE AGREEMENTS 

Lease income includes primarily base rent arising from noncancelable commercial leases. Base rent for the years ended December 31, 2002, 2001 and 2000, amounted to $75,699,000, $69,662,000 and $63,837,000, respectively. Future contractual payments under noncancelable leases for years ended December 31, is as follows: 

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The majority of the leases also provide for rental increases and expense recoveries based on increases in the Consumer Price Index or increases in operating expenses, or both. These increases generally are payable in equal installments throughout the year based on estimates, with adjustments made in the succeeding year. Expense recoveries for the years ended December 31, 2002, 2001 and 2000 amounted to $12,680,000, $11,456,000 and $11,129,000, respectively. In addition, certain retail leases provide for percentage rent based on sales in excess of the minimum specified in the tenant's lease. Percentage rent amounted to $1,850,000, $2,113,000 and $2,097,000, for the years ended December 31, 2002, 2001 and 2000, respectively. 

## 6. LONG-TERM LEASE OBLIGATIONS 

Certain properties are subject to noncancelable long-term leases which apply to land underlying the Shopping Centers. Certain of the leases provide for periodic adjustments of the base annual rent and require the payment of real estate taxes on the underlying land. The leases will expire between 2058 and 2068. Reflected in the accompanying consolidated financial statements is minimum ground rent expense of $164,000, $167,000 and $157,000, for each of the years ended December 31, 2002, 2001 and 2000, respectively. The future minimum rental commitments under these ground leases are as follows: 

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