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## Funds From Operations Applicable to Common Shares (“FFO”) 

FFO does not represent cash generated from operating activities in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs which is disclosed in the Consolidated Statements of Cash Flows for the applicable periods. FFO should not be considered as an alternative to net income as an indicator of the Company’ operating performance or as an alternative to cash flows as a measure of liquidity. 

Management considers FFO a relevant supplemental measur of operating performance because it provides a basis for com- parison among REITs. FFO is computed in accordance with NAREIT’ s definition, which may not be comparable to FFO report- ed by other REITs that do not compute FFO in accordance with NAREIT’s definition. 

Year Ended December 31, 2003 vs. December 31, 2002 

FFO was $518,242,000, or $4.44 per diluted shar for the year ended December 31, 2003, compared to $439,775,000, or $3.91 per diluted share for the year ended December 31, 2002, an incr ease of $78,467,000 or $.53 per share. Income from the straight-lining of rents included in FFO amounted to $34,023,000, or $.24 per diluted share for the year ended December 31, 2003, and $27,295,000, or $.24 per diluted shar for the year ended December 31, 2002. Income from the amortization of acquired below market leases net of above market leases included in FFO amounted to $9,047,000, or $.06 per diluted share for the year ended December 31, 2003 and $12,634,000, or $.11 per diluted share for the year ended December 31, 2002. 

Also included in FFO are certain items that affect comparability as detailed below. Before these items, the year ended December 31, 2003 FFO is 6.5% higher than the year ended December 31, 2002 on a per share basis. 

For The Year Ended 

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