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## Equity One Property Portfolio 

At December 31, 2003, Equity One owned 185 properties totalling 19.9 million square feet located primarily in metropolitan areas of twelve states in the southern United States, comprised of 123 supermarket anchored shopping centres, eleven drug store anchored shopping centres, 44 other retail anchored shopping centres, a self-storage facility, an industrial property and five developments as well as non-controlling interests in two unconsolidated joint ventures. 

The investment in Equity One provides the Company with geographic diversification in high growth urban markets in the United States. Seventy-six percent of the total square footage is located in Florida, Texas, and Georgia with the balance of the properties in nine other states. 

The Equity One portfolio also provides further diversification of property rental revenue through additional U.S. retailers. Nine of Equity One’s top ten tenants are represented by U.S.-based corporations that are distinct from the Company’s top ten tenants. 

This information concerning Equity One is based on publicly available information and documents filed with the U.S. Securities and Exchange Commission. 

## Analysis of Investment in Equity One 

The book value and market value of the Company’s investment in Equity One amount to $211 million and $274 million, respectively, at December 31, 2003, using the year-end exchange rate of $1.30. 

The investment in Equity One, which originated from an exchange of directly-owned U.S. shopping centres for shares in Equity One in 2001, continues to provide both cash flow and capital appreciation to the Company. Equity One has paid dividends for 23 consecutive quarters and thus provides the Company with a source of stable cash income. During 2003, First Capital Realty reinvested a portion of these dividends into further stock purchases at a discount through the Equity One dividend reinvestment and stock purchase plan, and may continue to do so in the future. First Capital Realty owns 12.5 million shares of Equity One as of December 31, 2003. 

## Return on Investment in Equity One 

The Company has achieved a significant return on its investment in Equity One. The following table summarizes the value created before tax as at December 31, 2003. 

<img src='content_image/93449.jpg'>

Overall, the market value of Equity One shares at December 31, 2003 of US$16.88 per share equates to a Cdn$118 million total return before tax, or 62%, since initial investment in September, 2001. 

