Exhibit 99.2

		Catellus Development Corporation

CATELLUS		[GRAPHIC APPEARS HERE]

SUPPLEMENTAL FINANCIAL PACKAGE

Third Quarter 2003

CATELLUS

DEVELOPMENT CORPORATION

CORPORATE DATA

Catellus Development Corporation is a publicly traded real estate development company that owns and operates approximately 38.2 million square feet of predominantly industrial property in many of the country’s major distribution centers and transportation corridors. The company’s principal objective is sustainable, long-term growth in earnings, which it seeks to achieve by applying its strategic resources: a lower-risk/higher-return rental portfolio, a focus on expanding that portfolio through development, and the deployment of its proven land development skills to select opportunities where it can generate profits to recycle back into its business. More information on the company is available at www.catellus.com.

Company Information

Corporate Office:

201 Mission St., 2nd Floor

San Francisco, CA 94105

Phone: (415) 974-4500

Fax: (415) 974-4550

www.catellus.com

Investor Contact Information

Investor Relations:

Minnie Wright, Director

Phone: (415) 974-4649

Fax: (415) 974-4550

Email: minnie_wright@catellus.com

Stock Information

NYSE Ticker Symbol: CDX

Shares outstanding as of September 30 = 91,690,645

Shares outstanding - diluted as of September 30 = 93,124,634

Closing stock price on September 30 = 24.45

Average daily volume for the quarter: 287,000

Senior Management

Nelson C. Rising, Chairman and Chief Executive Officer

Timothy J. Beaudin, Executive Vice President

C. William Hosler, Senior Vice President and Chief Financial Officer

Vanessa Washington, Senior Vice President and General Counsel

Ted Antenucci, President, Suburban Development

Doug Gardner, President, Urban Development

Mark Schuh, Executive Vice President, Urban Development

Paul Lockie, Vice President and Controller

Margan Mitchell, Vice President, Corporate Communications

Mike Wenzell, Vice President, Corporate Strategic Initiatives

Research Coverage

Banc of America - Lee Schalop (212) 847-5677

GreenStreet Advisors - Jim Sullivan (949) 640-8780

Lehman Brothers - David Shulman/David Harris (212) 526-3413 / 526-1790

McDonald Investments - Anatole Pevnev (216) 263-4783

Merrill Lynch - Steve Sakwa (212) 449-0335

Morgan Stanley - Gregory Whyte (212) 761-6331

RBC Capital - David Copp/Jay Leupp (415) 633-8558 / 633-8588

Salomon Smith Barney - Jonathan Litt (212) 816-0231

Wachovia Securities - Christopher Haley (443) 263-6773

The accompanying financial statements and supplemental information are considered unaudited and should be read in conjunction with the Company’s report on Form 10-K/A for the fiscal year ended December 31, 2002, filed with the SEC and Form 10-Q for the quarter ended September 30, 2003, which is expected to be filed with the SEC by November 14, 2003.

CATELLUS

DEVELOPMENT CORPORATION

SUPPLEMENTAL FINANCIAL PACKAGE

September 30, 2003

TABLE OF CONTENTS

FINANCIALS

CONSOLIDATED

Key financial data		1 - 2
Consolidated balance sheet		3
Consolidated statement of operations		5
Consolidated statement of cash flows		6
Funds from operations		7-10
Balance sheet detail and fully diluted shares outstanding		11
Debt analysis		12
Capital expenditures		13

OPERATING SEGMENTS

Property book value by segment		14
Gross margin on property sales		15

ADDITIONAL INFORMATION

PORTFOLIO DATA

Net operating income and square feet by state		16
Same space net operating income		17
Full quarter net operating income by state		18
Buildings owned & occupancy		19
Lease expirations		20
Ten largest tenants		21

DEVELOPMENT LAND INVENTORY

Consolidated		22
Suburban Commercial		23

DEVELOPMENT ACTIVITY (Suburban Commercial and Urban Development)

Construction starts and completions - Suburban Commercial		24
Properties under construction - Suburban Commercial		25
Work in process - Suburban Commercial		26
Construction starts and completions - Urban		27
Properties under construction - Urban		28
Work in process - Urban		29

RESIDENTIAL ACTIVITY

Suburban Residential land inventory		30

DEFINITIONS		31

CATELLUS

DEVELOPMENT CORPORATION

Key Financial Data

(In thousands, except per share data)

	For the Three Months Ended or as of
	September 30, 2003			June 30, 2003			March 31, 2003			December 31, 2002			September 30, 2002
Share Data - End of Period
Common shares outstanding - basic		91,691			88,626			87,318			87,170			87,158
Common shares outstanding - diluted		93,125			91,259			90,274			89,892			89,327

Share Price
At end of period	$	24.45		$	22.00		$	21.00		$	19.85		$	18.45
High during quarter	$	24.64		$	23.29		$	21.70		$	19.85		$	20.79
Low during quarter	$	22.10		$	21.00		$	19.05		$	16.85		$	17.12

Market Capitalization
Market value of common equity	$	2,241,845		$	1,949,772		$	1,833,684		$	1,730,325		$	1,608,065
Total debt		1,435,848			1,482,178			1,498,321			1,500,955			1,480,231

Total market capitalization	$	3,677,693		$	3,431,950		$	3,332,005		$	3,231,280		$	3,088,296

Total debt / total market capitalization		39.04	%		43.19	%		44.97	%		46.45	%		47.93	%

Selected Balance Sheet Data
Book value of real estate assets (before accum. dep.)	$	2,549,606		$	2,490,887		$	2,476,382		$	2,448,081		$	2,415,846
Total assets	$	2,673,933		$	2,662,419		$	2,639,321		$	2,695,449		$	2,643,827
Total liabilities	$	1,990,609		$	2,049,897		$	2,067,607		$	2,149,480		$	2,118,939
Total shareholders’ equity	$	683,324		$	612,522		$	571,713		$	545,969		$	524,888

Income Items
Net income	$	20,949		$	19,254		$	23,411		$	20,878		$	14,655
Core Segment FFO as adjusted (1)	$	32,687		$	38,293		$	38,669		$	31,935		$	29,261
Lease termination fees	$	—		$	58		$	1,101		$	—		$	971
Straight line rent adjustment	$	1,909		$	1,742		$	1,504		$	1,324		$	1,048

Per Share Data (diluted)
Earnings per share	$	0.23		$	0.21		$	0.26		$	0.23		$	0.16
Core Segment FFO per share as adjusted (1)	$	0.35		$	0.42		$	0.43		$	0.36		$	0.33

Portfolio Data
Rental property - square feet owned		38,203			37,403			36,716			36,976			36,477
Rental property - square feet leased		36,403			35,298			34,491			34,957			34,450
Rental property - occupancy %		95.3	%		94.4	%		93.9	%		94.5	%		94.4	%

Construction Activity - Suburban Commercial and Urban (in sq. ft.)
Under construction, beginning of period		4,399			4,661			4,100			3,223			4,288
Construction starts during period		—			1,377			1,200			1,378			985
Less: construction completed - retained in portfolio		(801	)		(736	)		(494	)		(501	)		(2,050	)
Less: construction completed - design build/fee		—			(185	)		(145	)		—			—
Less: construction completed - build to sell		(4	)		(600	)		—			—			—
Less: construction completed - joint venture development		(187	)		(118	)		—			—			—

Under construction, end of period		3,407			4,399			4,661			4,100			3,223

Sales Backlog
Core Segment - income property sales	$	9,277		$	—		$	—		$	4,410		$	—
Core Segment - development sales	$	35,697		$	33,031		$	47,206		$	47,625		$	36,663
Urban/Residential/Other Segment - assets sales	$	129,578		$	103,482		$	75,994		$	129,176		$	209,521

(1)	A reconciliation of net income to funds from operations (FFO) is provided on pages 7-10

CATELLUS

DEVELOPMENT CORPORATION

Key Financial Data Reconciliation

(In thousands, except ratios)

	For the Three Months Ended
	September 30, 2003			June 30, 2003			March 31, 2003			December 31, 2002			September 30, 2002
Reconciliation to EBITDA (1)
Net Income	$	20,949		$	19,254		$	23,411		$	20,878		$	14,655
Interest expense		15,923			17,164			16,821			17,352			16,441
Capitalized interest in cost of sales		1,615			1,584			437			2,441			325
Income taxes		12,415			12,018			13,614			8,590			9,908
Depreciation and amortization		18,066			17,738			16,699			17,233			17,600

EBITDA (1)	$	68,968		$	67,758		$	70,982		$	66,494		$	58,929

Interest Charges (1)
Interest expense	$	15,923		$	17,164		$	16,821		$	17,352		$	16,441
Less non-cash interest (amortization of deferred loan fees)		(1,104	)		(1,093	)		(1,119	)		(1,159	)		(1,436	)
Capitalized interest - net of reimbursements		5,743			4,607			3,896			5,165			5,314

Total interest charges	$	20,562		$	20,678		$	19,598		$	21,358		$	20,319

Fixed Charges
Total interest charges	$	20,562		$	20,678		$	19,598		$	21,358		$	20,319
Regularly scheduled principal payments		5,991			5,487			5,513			5,758			5,137

Total fixed charges	$	26,553		$	26,165		$	25,111		$	27,116		$	25,456

Ratios
Interest coverage ratio		3.35			3.28			3.62			3.11			2.90
Fixed charge coverage ratio		2.60			2.59			2.83			2.45			2.31

(1)	Includes discontinued operations. See Statement of Operations

CATELLUS

DEVELOPMENT CORPORATION

Consolidated Balance Sheet

(In thousands)

(Unaudited)

	September 30, 2003			December 31, 2002
Assets

Properties	$	2,549,606		$	2,448,081
Less accumulated depreciation		(443,649	)		(399,923	)

		2,105,957			2,048,158
Other assets and deferred charges, net		250,334			273,853
Notes receivable, less allowance		56,696			44,947
Accounts receivable, less allowance		16,739			14,211
Assets held for sale		6,332			2,760
Restricted cash and investments		43,901			36,593
Cash and cash equivalents		193,974			274,927

Total	$	2,673,933		$	2,695,449

Liabilities and Stockholders’ Equity

Mortgage and other debt	$	1,430,590		$	1,500,955
Accounts payable and accrued expenses		96,061			117,493
Deferred credits and other liabilities		157,009			151,466
Liabilities associated with assets held for sale		5,303			3,233
Deferred income taxes		301,646			318,970
Minority interest		—			57,363

Total liabilities		1,990,609			2,149,480

Stockholders’ Equity
Common stock, 115,338 and 110,817 shares issued, and 91,691 and 87,170 shares outstanding at September 30, 2003 and December 31, 2002, respectively		1,153			1,108
Paid-in capital		605,058			531,362
Treasury stock, at cost (23,647 shares at September 30, 2003 and December 31, 2002)		(401,082	)		(401,082	)
Accumulated earnings		478,195			414,581

Total stockholders’ equity		683,324			545,969

Total	$	2,673,933		$	2,695,449

CATELLUS

DEVELOPMENT CORPORATION

Pro Forma Consolidated Balance Sheet

As of September 30, 2003

(In thousands)

(Unaudited)

	Total		Core Segment		Urban/Res. & Other Segment
Assets

Properties, net of accumulated depreciation	$	2,105,957	$	1,695,642	$	410,315
Other assets and deferred charges, net		250,334		163,248		87,086
Notes receivable, less allowance		56,696		25,289		31,407
Accounts receivable, less allowance		16,739		14,844		1,895
Assets held for sale		6,332		6,332		—
Restricted cash and investments		43,901		43,901		—
Cash and cash equivalents		193,974		193,974		—

Total assets	$	2,673,933	$	2,143,230	$	530,703

Liabilities and Stockholders’ Equity

Mortgage and other debt	$	1,430,590	$	1,412,191	$	18,399
Accounts payable and accrued expenses		96,061		70,908		25,153
Deferred credits and other liabilities		157,009		150,598		6,411
Liabilities associated with assets held for sale		5,303		5,303		—
Deferred income taxes		301,646		257,620		44,026

Total liabilities		1,990,609		1,896,620		93,989

Stockholders’ Equity		683,324		246,610		436,714

Total liabilities and stockholders’ equity	$	2,673,933	$	2,143,230	$	530,703

CATELLUS

DEVELOPMENT CORPORATION

Consolidated Statement of Operations

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2003			2002			2003			2002
Revenue
Rental revenue	$	75,180		$	65,424		$	223,323		$	192,699
Sales revenue		45,515			10,299			78,425			108,991
Management, development and other fees		2,954			2,755			9,901			5,651

		123,649			78,478			311,649			307,341

Costs and expenses
Property operating costs		(23,076	)		(18,004	)		(62,607	)		(50,841	)
Cost of sales		(27,171	)		(2,471	)		(50,424	)		(69,723	)
Selling, general and administrative expenses		(9,877	)		(5,824	)		(21,031	)		(19,804	)
Corporate administrative expenses		(5,488	)		(4,284	)		(14,392	)		(12,748	)
Depreciation and amortization		(18,066	)		(17,317	)		(52,358	)		(45,666	)

		(83,678	)		(47,900	)		(200,812	)		(198,782	)

Operating income		39,971			30,578			110,837			108,559

Other income
Equity in earnings of operating joint ventures, net		540			993			5,199			6,838
Equity in earnings of development joint ventures, net		7,553			4,201			16,834			19,825
Gain on non-strategic asset sales		928			421			8,285			7,242
Interest income		1,745			2,695			5,458			7,840
Other		581			903			2,530			9,069

		11,347			9,213			38,306			50,814

Other expenses
Interest expense		(15,893	)		(16,305	)		(49,740	)		(42,634	)
REIT transition costs		(1,416	)		—			(4,779	)		—
Other		(411	)		268			(607	)		(1,177	)

		(17,720	)		(16,037	)		(55,126	)		(43,811	)

Income before minority interests, income taxes and discontinued operations		33,598			23,754			94,017			115,562

Minority interests		—			(1,527	)		—			(4,580	)

Income before income taxes and discontinued operations		33,598			22,227			94,017			110,982

Income tax expense		(12,508	)		(8,967	)		(34,989	)		(44,661	)

Income from continuing operations		21,090			13,260			59,028			66,321

Discontinued operations, net of income tax:
Gain (loss) from disposal of discontinued operations		(201	)		1,277			4,218			13,332
Income from discontinued operations		60			118			368			125

Net gain (loss) from discontinued operations		(141	)		1,395			4,586			13,457

Net income	$	20,949		$	14,655		$	63,614		$	79,778

Income per share from continuing operations
Basic	$	0.23		$	0.15		$	0.67		$	0.76

Assuming dilution	$	0.23		$	0.15		$	0.65		$	0.74

Income per share from discontinued operations
Basic	$	0.00		$	0.02		$	0.05		$	0.16

Assuming dilution	$	0.00		$	0.01		$	0.05		$	0.15

Net income per share
Basic	$	0.23		$	0.17		$	0.72		$	0.92

Assuming dilution	$	0.23		$	0.16		$	0.70		$	0.89

Average number of common shares outstanding - basic		90,224			87,150			88,409			86,928

Average number of common shares outstanding - diluted		92,339			89,603			91,082			89,539

CATELLUS

DEVELOPMENT CORPORATION

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Nine Months Ended 09/30/03			Nine Months Ended 09/30/02
Cash flows from operating activities:
Net income	$	63,614		$	79,778
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		52,358			45,666
Deferred income taxes		781			21,975
Deferred gain recognized		(3,576	)		(15,856	)
Amortization of deferred loan fees and other costs		3,316			4,834
Equity in earnings of joint ventures		(22,033	)		(26,663	)
Operating distributions from joint ventures		19,754			72,770
Gain on sale of investment property		(7,030	)		(22,305	)
Cost of development property sold and non-strategic assets sold		49,229			66,304
Capital expenditures for development properties		(62,981	)		(43,220	)
Other, net		(2,699	)		10,751
Changes in deferred credits and other liabilities		13,548			13,155
Changes in other operating assets and liabilities		11,976			(45,381	)

Net cash provided by operating activities		116,257			161,808

Cash flows from investing activities:
Net proceeds from sale of investment property		27,800			29,390
Capital expenditures for investment property		(202,803	)		(246,354	)
Payment of reimbursable construction costs		(5,128	)		(32,497	)
Distributions from joint ventures		8,601			—
Contributions to joint ventures		(6,028	)		(13,403	)
Net increase in restricted cash		(7,308	)		(28,056	)

Net cash used in investing activities		(184,866	)		(290,920	)

Cash flows from financing activities:
Borrowings		70,262			381,386
Repayment of borrowings		(131,980	)		(211,910	)
Distributions to minority partners		(4,551	)		(4,540	)
Proceeds from issuance of common stock		53,925			8,592

Net cash (used in) provided by financing activities		(12,344	)		173,528

Net (decrease) increase in cash and cash equivalents		(80,953	)		44,416
Cash and cash equivalents at beginning of period		274,927			222,695

Cash and cash equivalents at end of period	$	193,974		$	267,111

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amount capitalized)	$	46,500		$	37,917
Income taxes	$	57,923		$	22,926
Non-cash financing activities:
Debt forgiveness-property reconveyance	$	6,536		$	—

CATELLUS

DEVELOPMENT CORPORATION

Reconciliation of Net Income to Funds From Operations

For the three months ended September 30, 2003

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30, 2003												Total
	Core Segment			Urban/Res. & Other Segment			Subtotal			Discontinued Operations			Total
Revenue
Rental revenue	$	75,337		$	—		$	75,337		$	(157	)	$	75,180
Sales revenue		2,106			43,409			45,515			—			45,515
Management, development and other fees		1,695			1,259			2,954			—			2,954

		79,138			44,668			123,806			(157	)		123,649

Costs and expenses
Property operating costs		(23,102	)		—			(23,102	)		26			(23,076	)
Cost of sales		(2,090	)		(25,416	)		(27,506	)		335			(27,171	)
Selling, general and administrative expenses		(3,439	)		(6,438	)		(9,877	)		—			(9,877	)
Corporate administrative costs		(4,802	)		(686	)		(5,488	)		—			(5,488	)
Depreciation and amortization		(17,788	)		(278	)		(18,066	)		—			(18,066	)

		(51,221	)		(32,818	)		(84,039	)		361			(83,678	)

Operating income		27,917			11,850			39,767			204			39,971

Other income
Equity in earnings of operating joint ventures, net		540			—			540			—			540
Equity in earnings of development joint ventures, net		—			7,553			7,553			—			7,553
Gain on non-strategic asset sales		—			928			928			—			928
Interest income		915			830			1,745			—			1,745
Other		(4	)		585			581			—			581

		1,451			9,896			11,347			—			11,347

Other expenses
Interest expense		(15,923	)		—			(15,923	)		30			(15,893	)
REIT transition costs		—			(1,416	)		(1,416	)		—			(1,416	)
Other		(258	)		(153	)		(411	)		—			(411	)

		(16,181	)		(1,569	)		(17,750	)		30			(17,720	)

Income before income taxes and discontinued operations		13,187			20,177			33,364			234			33,598
Income tax expense		(4,344	)		(8,071	)		(12,415	)		(93	)		(12,508	)

Income from continuing operations		8,843			12,106			20,949			141			21,090

Discontinued operations, net of income tax
Loss from disposal of discontinued operations		—			—			—			(201	)		(201	)
Income from discontinued operations		—			—			—			60			60

Loss from discontinued operations		—			—			—			(141	)		(141	)

Net income	$	8,843		$	12,106		$	20,949		$	—		$	20,949

Depreciation		18,091			429			18,520			—			18,520
Loss on property sales		301			—			301			—			301

Funds from operations (FFO)		27,235			12,535			39,770			—			39,770
Hypothetical tax savings		5,452			—			5,452			—			5,452

FFO as adjusted for hypothetical tax savings	$	32,687		$	12,535		$	45,222		$	—		$	45,222

FFO per share
Basic	$	0.30		$	0.14		$	0.44		$	—		$	0.44

Assuming dilution	$	0.29		$	0.14		$	0.43		$	—		$	0.43

FFO as adjusted for hypothetical tax savings per share
Basic	$	0.36		$	0.14		$	0.50		$	—		$	0.50

Assuming dilution	$	0.35		$	0.14		$	0.49		$	—		$	0.49

Average number of common shares outstanding-basic		90,224			90,224			90,224			90,224			90,224
Average number of common shares outstanding-diluted		92,339			92,339			92,339			92,339			92,339

See definition of FFO. Core Segment FFO is consistent with what the Company has given historically for FFO guidance and is consistent with what the Company referred to as “Modified FFO” at quarter end June 30, 2003.

CATELLUS

DEVELOPMENT CORPORATION

Reconciliation of Net Income to Funds From Operations

For the three months ended September 30, 2002

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30, 2002												Total
	Core Segment			Urban/Res. & Other Segment			Subtotal			Discontinued Operations			Total
Revenue
Rental revenue	$	66,191		$	—		$	66,191		$	(767	)	$	65,424
Sales revenue		4,782			10,003			14,785			(4,486	)		10,299
Management, development and other fees		1,364			1,391			2,755			—			2,755

		72,337			11,394			83,731			(5,253	)		78,478

Costs and expenses
Property operating costs		(18,156	)		—			(18,156	)		152			(18,004	)
Cost of sales		(853	)		(3,964	)		(4,817	)		2,346			(2,471	)
Selling, general and administrative expenses		(2,623	)		(3,201	)		(5,824	)		—			(5,824	)
Corporate administrative costs		(3,749	)		(535	)		(4,284	)		—			(4,284	)
Depreciation and amortization		(17,067	)		(533	)		(17,600	)		283			(17,317	)

		(42,448	)		(8,233	)		(50,681	)		2,781			(47,900	)

Operating income		29,889			3,161			33,050			(2,472	)		30,578

Other income
Equity in earnings of operating joint ventures, net		993			—			993			—			993
Equity in earnings of development joint ventures, net		—			4,201			4,201			—			4,201
Gain on non-strategic asset sales		—			421			421			—			421
Interest income		1,021			1,674			2,695			—			2,695
Other		845			58			903			—			903

		2,859			6,354			9,213			—			9,213

Other expenses
Interest expense		(16,441	)		—			(16,441	)		136			(16,305	)
REIT transition costs		—			—			—			—			—
Other		479			(211	)		268			—			268

		(15,962	)		(211	)		(16,173	)		136			(16,037	)

Income before minority interests, income taxes and discontinued operations		16,786			9,304			26,090			(2,336	)		23,754
Minority Interest		(1,527	)		—			(1,527	)		—			(1,527	)

Income before income taxes and discontinued operations		15,259			9,304			24,563			(2,336	)		22,227
Income tax expense		(6,186	)		(3,722	)		(9,908	)		941			(8,967	)

Income from continuing operations		9,073			5,582			14,655			(1,395	)		13,260

Discontinued operations, net of income tax
Gain from disposal of discontinued operations		—			—			—			1,277			1,277
Income from discontinued operations		—			—			—			118			118

Gain from discontinued operations		—			—			—			1,395			1,395

Net income	$	9,073		$	5,582		$	14,655		$	—		$	14,655
Depreciation		16,917			317			17,234			—			17,234
Gain on property sales		(2,789	)		—			(2,789	)		—			(2,789	)

Funds from operations (FFO)		23,201			5,899			29,100			—			29,100
Hypothetical tax savings		6,060			—			6,060			—			6,060

FFO as adjusted for hypothetical tax savings	$	29,261		$	5,899		$	35,160		$	—		$	35,160

FFO per share
Basic	$	0.27		$	0.06		$	0.33		$	—		$	0.33

Assuming dilution	$	0.26		$	0.06		$	0.32		$	—		$	0.32

FFO as adjusted for hypothetical tax savings per share
Basic	$	0.34		$	0.06		$	0.40		$	—		$	0.40

Assuming dilution	$	0.33		$	0.06		$	0.39		$	—		$	0.39

Average number of common shares outstanding-basic		87,150			87,150			87,150			87,150			87,150
Average number of common shares outstanding-diluted		89,603			89,603			89,603			89,603			89,603

CATELLUS

DEVELOPMENT CORPORATION

Reconciliation of Net Income to Funds From Operations

For the nine months ended September 30, 2003

(In thousands, except per share data)

(Unaudited)

	Nine Months Ended September 30, 2003												Total
	Core Segment			Urban/Res. & Other Segment			Subtotal			Discontinued Operations			Total
Revenue
Rental revenue	$	224,520		$	—		$	224,520		$	(1,197	)	$	223,323
Sales revenue		58,616			48,011			106,627			(28,202	)		78,425
Management, development and other fees		5,599			4,302			9,901			—			9,901

		288,735			52,313			341,048			(29,399	)		311,649

Costs and expenses
Property operating costs		(62,882	)		—			(62,882	)		275			(62,607	)
Cost of sales		(45,215	)		(26,381	)		(71,596	)		21,172			(50,424	)
Selling, general and administrative expenses		(9,406	)		(11,625	)		(21,031	)		—			(21,031	)
Corporate administrative costs		(12,593	)		(1,799	)		(14,392	)		—			(14,392	)
Depreciation and amortization		(51,675	)		(828	)		(52,503	)		145			(52,358	)

		(181,771	)		(40,633	)		(222,404	)		21,592			(200,812	)

Operating income		106,964			11,680			118,644			(7,807	)		110,837

Other income
Equity in earnings of operating joint ventures, net		5,199			—			5,199			—			5,199
Equity in earnings of development joint ventures, net		—			16,834			16,834			—			16,834
Gain on non-strategic asset sales		—			8,285			8,285			—			8,285
Interest income		2,427			3,036			5,463			(5	)		5,458
Other		1,945			585			2,530			—			2,530

		9,571			28,740			38,311			(5	)		38,306

Other expenses
Interest expense		(49,908	)		—			(49,908	)		168			(49,740	)
REIT transition costs		—			(4,779	)		(4,779	)		—			(4,779	)
Other		(591	)		(16	)		(607	)		—			(607	)

		(50,499	)		(4,795	)		(55,294	)		168			(55,126	)

Income before income taxes and discontinued operations		66,036			35,625			101,661			(7,644	)		94,017
Income tax expense		(23,797	)		(14,250	)		(38,047	)		3,058			(34,989	)

Income from continuing operations		42,239			21,375			63,614			(4,586	)		59,028

Discontinued operations, net of income tax
Gain from disposal of discontinued operations		—			—			—			4,218			4,218
Income from discontinued operations		—			—			—			368			368

Gain from discontinued operations		—			—			—			4,586			4,586

Net income	$	42,239		$	21,375		$	63,614		$	—		$	63,614

Depreciation		52,004			429			52,433			—			52,433
Gain on property sales		(7,152	)		—			(7,152	)		—			(7,152	)

Funds from operations (FFO)		87,091			21,804			108,895			—			108,895
Hypothetical tax savings		22,558			—			22,558			—			22,558

FFO as adjusted for hypothetical tax savings	$	109,649		$	21,804		$	131,453		$	—		$	131,453

FFO per share
Basic	$	0.99		$	0.25		$	1.23		$	—		$	1.23

Assuming dilution	$	0.96		$	0.24		$	1.20		$	—		$	1.20

FFO as adjusted for hypothetical tax savings per share
Basic	$	1.24		$	0.25		$	1.49		$	—		$	1.49

Assuming dilution	$	1.20		$	0.24		$	1.44		$	—		$	1.44

Average number of common shares outstanding-basic		88,409			88,409			88,409			88,409			88,409
Average number of common shares outstanding-diluted		91,082			91,082			91,082			91,082			91,082

CATELLUS

DEVELOPMENT CORPORATION

Reconciliation of Net Income to Funds From Operations

For the nine months ended September 30, 2002

(In thousands, except per share data)

(Unaudited)

	Nine Months Ended September 30, 2002												Total
	Core Segment			Urban/Res. & Other Segment			Subtotal			Discontinued Operations			Total
Revenue
Rental revenue	$	194,750		$	—		$	194,750		$	(2,051	)	$	192,699
Sales revenue		78,876			60,198			139,074			(30,083	)		108,991
Management, development and other fees		3,078			2,573			5,651			—			5,651

		276,704			62,771			339,475			(32,134	)		307,341

Costs and expenses
Property operating costs		(51,355	)		—			(51,355	)		514			(50,841	)
Cost of sales		(47,817	)		(29,684	)		(77,501	)		7,778			(69,723	)
Selling, general and administrative expenses		(7,418	)		(12,386	)		(19,804	)		—			(19,804	)
Corporate administrative costs		(11,155	)		(1,593	)		(12,748	)		—			(12,748	)
Depreciation and amortization		(45,040	)		(1,166	)		(46,206	)		540			(45,666	)

		(162,785	)		(44,829	)		(207,614	)		8,832			(198,782	)

Operating income		113,919			17,942			131,861			(23,302	)		108,559

Other income
Equity in earnings of operating joint ventures, net		6,838			—			6,838			—			6,838
Equity in earnings of development joint ventures, net		—			19,825			19,825			—			19,825
Gain on non-strategic asset sales		—			7,242			7,242			—			7,242
Interest income		3,298			4,542			7,840			—			7,840
Other		8,818			251			9,069			—			9,069

		18,954			31,860			50,814			—			50,814

Other expenses
Interest expense		(43,424	)		—			(43,424	)		790			(42,634	)
REIT transition costs		—			—			—			—			—
Other		(1,105	)		(72	)		(1,177	)		—			(1,177	)

		(44,529	)		(72	)		(44,601	)		790			(43,811	)

Income before minority interests, income taxes and discontinued operations		88,344			49,730			138,074			(22,512	)		115,562
Minority Interest		(4,580	)		—			(4,580	)		—			(4,580	)

Income before income taxes and discontinued operations		83,764			49,730			133,494			(22,512	)		110,982
Income tax expense		(33,823	)		(19,893	)		(53,716	)		9,055			(44,661	)

Income from continuing operations		49,941			29,837			79,778			(13,457	)		66,321

Discontinued operations, net of income tax
Gain from disposal of discontinued operations		—			—			—			13,332			13,332
Income from discontinued operations		—			—			—			125			125

Gain from discontinued operations		—			—			—			13,457			13,457

Net income	$	49,941		$	29,837		$	79,778		$	—		$	79,778

Depreciation		45,609			727			46,336			—			46,336
Gain on property sales		(25,101	)		—			(25,101	)		—			(25,101	)

Funds from operations (FFO)		70,449			30,564			101,013			—			101,013
Hypothetical tax savings		32,394			—			32,394			—			32,394

FFO as adjusted for hypothetical tax savings	$	102,843		$	30,564		$	133,407		$	—		$	133,407

FFO per share
Basic	$	0.81		$	0.35		$	1.16		$	—		$	1.16

Assuming dilution	$	0.79		$	0.34		$	1.13		$	—		$	1.13

FFO as adjusted for hypothetical tax savings per share
Basic	$	1.18		$	0.35		$	1.53		$	—		$	1.53

Assuming dilution	$	1.15		$	0.34		$	1.49		$	—		$	1.49

Average number of common shares outstanding-basic		86,928			86,928			86,928			86,928			86,928
Average number of common shares outstanding-diluted		89,539			89,539			89,539			89,539			89,539

CATELLUS

DEVELOPMENT CORPORATION

Balance Sheet Detail and Fully Diluted Shares Outstanding

As of September 30, 2003

(In thousands, except share data)

Balance Sheet Description:		Source for Supplemental Information			September 30, 2003 Book Value
Assets
Rental properties		(Full quarter NOI of $52,427 see page 18)			$	1,849,539
Investments in operating joint ventures		(equity in earnings of $540 for Q3-03)				(20,015)

Total rental properties						1,829,524

Development properties	}	(see further detail on page 14)				530,572
Work-in-process						80,324
Investments in development joint ventures						67,358
Other property assets						41,828
Less accumulated depreciation						(443,649)

Total properties						2,105,957

Other assets and deferred charges, net						250,334
includes:
Debt issuance costs and loan fees			$	12,374
Straight line rent asset			$	30,992
Prepaid leasing commissions			$	41,789
Notes receivable						56,696
Accounts receivable						16,739
Assets held for sale						6,332
Restricted cash and investments						43,901
Cash and cash equivalents						193,974

Total Assets					$	2,673,933

Liabilities
Income property debt	}	(see further detail on page 12)			$	1,203,066
Construction debt						84,374
Revolving credit facility						50,000
Land development, infrastructure, and other debt						93,150

Total mortgage and other debt						1,430,590

Accounts payable and accrued expenses						96,061
Deferred credits and other liabilities						157,009
includes:
Cisco prepaid rent			$	97,102
Liabilities associated with assets held for sale						5,303
Deferred income taxes						301,646

Total Liabilities						1,990,609

Stockholders’ Equity
Total stockholders’ equity						683,324

Total Liabilities and Stockholders’ Equity					$	2,673,933

Calculation of fully diluted shares outstanding
Shares issued						115,337,758
Treasury shares						(23,647,113)

Shares issued and outstanding						91,690,645
Total options in the money		End of quarter (non-GAAP)		3,657,461
Stock Price @ quarter end				24.450
Average option strike price per share		End of quarter (non-GAAP)		15.617
Dilutive effect (using treasury method)						1,321,347
Director stock units - fully dilutive						112,642

Fully diluted shares outstanding at quarter end						93,124,634

CATELLUS

DEVELOPMENT CORPORATION

Debt Analysis

As of September 30, 2003

(In thousands)

	Total Outstanding Debt		Percentage of Total		2003		2004		2005		2006		2007		Thereafter
Income Property Debt
Fixed rate mortgage loans	$	1,060,330	73.85	%	$	9,420	$	17,182	$	18,379	$	155,138	$	22,917	$	837,294
Floating rate mortgage loans		142,736	9.94	%		922		3,761		113,257		24,796		—		—

Subtotal Income Property Debt	$	1,203,066	83.79	%	$	10,342	$	20,943	$	131,636	$	179,934	$	22,917	$	837,294

Construction Debt	$	84,374	5.88	%	$	17,032	$	67,342	$	—	$	—	$	—	$	—

Revolving Credit Facility	$	50,000	3.48	%	$	—	$	—	$	—	$	50,000	$	—	$	—

Land Development, Infrastructure and Other Debt
Land acquisition and development loans		20,358	1.42	%		11,848		4,217		4,218		25		25		25
Assessment district bonds		64,520	4.49	%		304		1,130		1,100		1,193		1,327		59,466
Other		8,272	0.58	%		104		539		569		594		470		5,996

Subtotal Land Development, Infrastructure and Other Debt	$	93,150	6.49	%	$	12,256	$	5,886	$	5,887	$	1,812	$	1,822	$	65,487

Total Mortgage and other debt	$	1,430,590	99.64	%	$	39,630	$	94,171	$	137,523	$	231,746	$	24,739	$	902,781

Debt associated with assets held for sale
Floating rate mortgage loans	$	5,258	0.36	%	$	5,258	$	—	$	—	$	—	$	—	$	—

Subtotal	$	5,258	0.36	%	$	5,258	$	—	$	—	$	—	$	—	$	—

Total	$	1,435,848	100.00	%	$	44,888	$	94,171	$	137,523	$	231,746	$	24,739	$	902,781

Floating and fixed rate debt analysis

	% of Total Debt		Weighted Avg. Interest Rate		Weighted Average Coupon		Weighted Avg. Maturity (years)
Floating	23.90	%	3.31	%	2.88	%	3.10
Fixed	76.10	%	7.00	%	6.73	%	6.92

Total	100.00	%	6.12	%	5.81	%	6.01

CATELLUS

DEVELOPMENT CORPORATION

Capital Expenditures

For the nine months ended September 30, 2003

(In thousands)

Capital expenditures reflected in the statement of cash flows include the following:

Capital expenditures from operating activities ₍₁₎
Capital expenditures for development properties	$	38,670
Predevelopment		833
Infrastructure and other		19,957
Capitalized interest		3,324
Capitalized property tax		197

Total capital expenditures in operating activities		62,981

Capital expenditures from investing activities ₍₂₎
Capital expenditures for investment properties		64,137
Rental properties - building improvements		6,730
Predevelopment		6,293
Infrastructure and other		12,340
Commercial property acquisitions ₍₃₎		94,248
Other property acquisitions		447
Tenant improvements		5,491
Capitalized interest		10,922
Capitalized property tax		2,195

Capital expenditures for investment properties		202,803
Contributions to joint ventures		6,028

Total capital expenditures in investing activities		208,831

Total capital expenditures ₍₄₎	$	271,812

Capital expenditures for the rental portfolio included above:
Tenant improvements	$	5,491
Lease commissions - 2nd generation		3,545
Building improvements		6,730

Total	$	15,766

(1)	This category primarily includes capital expenditures for properties we intend to build and sell.

(2)	This category primarily includes capital expenditures for properties we intend to hold for our own account.

(3)	In January 2003, we acquired the 10% minority interest owned by other investors in a subsidiary for cash of $60.7 million. The acquisition was accounted for based on the purchase method of accounting.

(4)	Total capital expenditures include capitalized general and administrative expenses of $9 million, net of reimbursements of $0.7 million, and capitalized interest of $14.2 million, net of reimbursements of $1.2 million.

CATELLUS

DEVELOPMENT CORPORATION

Property Book Value by Segment

(In thousands)

(Unaudited)

As of September 30, 2003	Asset Management			Suburban Commercial			Suburban Residential			Urban			Corporate			Total
Rental properties	$	1,849,539		$	—		$	—		$	—		$	—		$	1,849,539
Development properties		—			197,412			61,579			271,581			—			530,572
Work-in-process (see pages 26 and 29)		—			56,121			—			24,203			—			80,324
Investment in development joint ventures		—			1,137			41,642			24,579			—			67,358
Investment in operating joint ventures		(20,015	)		—			—			—			—			(20,015	)
Furniture and other		2,923			4,292			1,711			1,069			31,833			41,828

Subtotal		1,832,447			258,962			104,932			321,432			31,833			2,549,606
Accumulated depreciation		(408,632	)		(4,267	)		(1,444	)		(8,933	)		(20,373	)		(443,649	)

Total property	$	1,423,815		$	254,695		$	103,488		$	312,499		$	11,460		$	2,105,957

Total debt	$	1,271,779		$	74,895		$	—		$	26,029		$	57,887		$	1,430,590


As of December 31, 2002	Asset Management			Suburban Commercial			Suburban Residential			Urban			Corporate			Total
Rental properties	$	1,784,997		$	—		$	—		$	—		$	—		$	1,784,997
Development properties		—			171,924			52,850			279,495			—			504,269
Work-in-process (see pages 26 and 29)		—			49,938			—			16,915			—			66,853
Investment in development joint ventures		—			561			37,917			19,593			—			58,071
Investment in operating joint ventures		(10,920	)		—			—			—			—			(10,920	)
Furniture and other		5,238			4,485			1,711			1,070			32,307			44,811

Subtotal		1,779,315			226,908			92,478			317,073			32,307			2,448,081
Accumulated depreciation		(367,479	)		(4,210	)		(1,355	)		(8,236	)		(18,643	)		(399,923	)

Total property	$	1,411,836		$	222,698		$	91,123		$	308,837		$	13,664		$	2,048,158

Total debt	$	1,319,992		$	154,296		$	—		$	18,482		$	8,184		$	1,500,955

CATELLUS

DEVELOPMENT CORPORATION

Gross Margin on Property Sales

For the nine months ended September 30, 2003

(In thousands)

	Asset Management			Suburban Commercial			Suburban Residential			Urban			Pre FAS 144 Subtotal			Less Discontinued Operations			GAAP Total
Buildings
Sales	$	28,202		$	18,956		$	—		$	2,068		$	49,226		$	(28,202	)	$	21,024
Cost of sales		(21,172	)		(16,838	)		—		$	(1,906	)		(39,916	)		21,172			(18,744	)

Gain		7,030			2,118			—			162			9,310			(7,030	)		2,280

Gross margin		24.93	%		11.17	%		0.00	%		7.83	%		18.91	%		24.93	%		10.84	%

Land and lots
Sales		—			10,465			26,712			16,319			53,496			—			53,496
Cost of sales		—			(6,602	)		(11,726	)		(11,267	)		(29,595	)		—			(29,595	)

Gain		—			3,863			14,986			5,052			23,901			—			23,901

Gross margin		0.00	%		36.91	%		56.10	%		30.96	%		44.68	%					44.68	%

Ground leases/other
Sales		2,912			993			—			—			3,905			—			3,905
Cost of sales		(838	)		(725	)		(522	)		—			(2,085	)		—			(2,085	)

Gain (loss)		2,074			268			(522	)		—			1,820			—			1,820

Gross margin		71.22	%		26.99	%		n/a			0.00	%		46.61	%					46.61	%

Total
Sales		31,114			30,414			26,712			18,387			106,627			(28,202	)		78,425
Cost of sales		(22,010	)		(24,165	)		(12,248	)		(13,173	)		(71,596	)		21,172			(50,424	)

	$	9,104		$	6,249		$	14,464		$	5,214		$	35,031		$	(7,030	)	$	28,001

Gross margin		29.26	%		20.55	%		54.15	%		28.36	%		32.85	%		24.93	%		35.70	%

CATELLUS

DEVELOPMENT CORPORATION

Net Operating Income (NOI) and Square Feet by State

September 30, 2003

(In thousands - except for percentages)

Net Operating Income for the three months ended September 30, 2003

	Industrial				Office				Retail				Total
	Net Operating Income		% of Total		Net Operating Income		% of Total		Net Operating Income		% of Total		Net Operating Income			% of Total
Southern California	$	12,974	24.6	%	$	1,534	2.9	%	$	564	1.1	%	$	15,072		28.6	%
Northern California		7,742	14.7	%		4,205	8.0	%		1,449	2.7	%		13,396		25.4	%
Illinois		5,688	10.8	%		1,337	2.5	%		—	0.0	%		7,025		13.3	%
Texas		2,367	4.5	%		1,555	2.9	%		—	0.0	%		3,922		7.4	%
Colorado		2,474	4.7	%		858	1.6	%		395	0.7	%		3,727		7.0	%
Arizona		848	1.6	%		—	0.0	%		29	0.1	%		877		1.7	%
Maryland		782	1.5	%		—	0.0	%		—	0.0	%		782		1.5	%
Oregon		720	1.4	%		115	0.2	%		118	0.2	%		953		1.8	%
Ohio		560	1.1	%		—	0.0	%		—	0.0	%		560		1.1	%
Other		409	0.8	%		—	0.0	%		—	0.0	%		409		0.8	%
Subtotal	$	34,564	65.7	%	$	9,604	18.1	%	$	2,555	4.8	%	$	46,723		88.6	%

Ground leases and other														5,396		10.2	%
Other properties														116		0.2	%
Equity in earnings of JV’s														540		1.0	%

Subtotal NOI before discontinued operations													$	52,775		100.0	%

Less discontinued operations														(131	)

Total													$	52,644

Square Feet by State - As of September 30, 2003

	Industrial			Office			Retail			Total
	Square Feet	% of Total		Square Feet	% of Total		Square Feet	% of Total		Square Feet	% of Total
Southern California	12,566	32.9	%	574	1.5	%	176	0.5	%	13,316	34.9	%
Northern California	5,773	15.2	%	807	2.1	%	481	1.3	%	7,061	18.6	%
Illinois	6,268	16.4	%	584	1.5	%	—	0.0	%	6,852	17.9	%
Texas	3,264	8.5	%	869	2.3	%	—	0.0	%	4,133	10.8	%
Colorado	2,353	6.2	%	273	0.7	%	100	0.3	%	2,726	7.2	%
Arizona	1,123	2.9	%	—	0.0	%	74	0.2	%	1,197	3.1	%
Ohio	966	2.5	%	—	0.0	%	—	0.0	%	966	2.5	%
Oregon	545	1.4	%	57	0.1	%	37	0.1	%	639	1.6	%
Maryland	471	1.2	%	—	0.0	%	—	0.0	%	471	1.2	%
Other	842	2.2	%	—	0.0	%	—	0.0	%	842	2.2	%
Total	34,171	89.4	%	3,164	8.2	%	868	2.4	%	38,203	100.0	%

CATELLUS

DEVELOPMENT CORPORATION

Same Space Net Operating Income

For the three months ended September 30, 2003

(In thousands, except per square feet data)

	Q3-03			Q3-02			Increase (Decrease)
Industrial
Rental revenue	$	37,318		$	35,862		4.1	%
Property operating costs		(8,578	)		(7,820	)	9.7	%

Net operating income - adjusted (1)	$	28,740		$	28,042		2.5	%
Adjustments		(196	)		—

Net operating income - GAAP	$	28,936		$	28,042

Square feet		26,688			26,702

Same space occupancy		97.2	%		95.0	%
Same space NOI (adjusted) psf owned	$	1.08		$	1.05

Office
Rental revenue	$	11,088		$	11,774		-5.8	%
Property operating costs		(5,414	)		(5,617	)	-3.6	%

Net operating income - adjusted (1)	$	5,673		$	6,157		-7.9	%
Adjustments		—			(104	)

Net operating income - GAAP	$	5,673		$	6,261

Square feet		2,444			2,443

Same space occupancy		88.3	%		91.4	%
Same space NOI psf owned	$	2.32		$	2.52

Retail
Rental revenue	$	3,632		$	3,625		0.2	%
Property operating costs		(1,119	)		(998	)	12.1	%

Net operating income - adjusted (1)	$	2,513		$	2,626		-4.3	%
Adjustments		—			—

Net operating income - GAAP	$	2,513		$	2,626

Square feet		794			794

Same space occupancy		94.3	%		95.8	%
Same space NOI psf owned	$	3.16		$	3.31

Total
Same space rental revenue	$	52,038		$	51,261		1.5	%
Same space property operating costs		(15,111	)		(14,435	)	4.7	%

Same space net operating income - adjusted (1)	$	36,927		$	36,826		0.3	%
Adjustments		(196	)		(104	)

Same space net operating income - GAAP	$	37,123		$	36,930

Square feet		29,926			29,939

Same space occupancy		96.3	%		94.7	%
Same space NOI psf owned	$	1.23		$	1.23

Reconciliation of Same Space NOI to Total NOI
Same space net operating income - GAAP	$	37,123		$	36,930
New buildings NOI		9,540			3,895
Sold buildings NOI		(1	)		593
Ground lease and other property NOI		5,573			6,617
Equity in earnings of joint ventures		540			993

Subtotal NOI before discontinued operations		52,775			49,028
Less discontinued operations		(131	)		(615	)

Total	$	52,644		$	48,413

(1)	Adjusted for one time or unusual items such as lease termination fees or other material non-recurring income or expenses.

CATELLUS

DEVELOPMENT CORPORATION

Full Quarter Net Operating Income by State

For the three months ended September 30, 2003

(In thousands, except for percentages)

	NOI (1)		Discontinued Operations		NOI GAAP		Adjustments		Full Quarter NOI (2)		% of Total
Industrial
Southern California	$	12,974	$	1	$	12,975	$	240	$	13,215	24.9	%
Northern California		7,742				7,742				7,742	14.6	%
Illinois		5,688				5,688				5,688	10.7	%
Texas		2,367				2,367				2,367	4.5	%
Colorado		2,474				2,474				2,474	4.7	%
Arizona		848				848				848	1.6	%
Maryland		782				782				782	1.5	%
Oregon		720				720				720	1.4	%
Ohio		560				560				560	1.1	%
Miscellaneous		409				409		83		492	1.0	%

Total industrial		34,564		1		34,565		323		34,888	66.0	%

Office
Northern California		4,205				4,205				4,205	7.9	%
Texas		1,555				1,555				1,555	2.9	%
Southern California		1,534				1,534				1,534	2.9	%
Illinois		1,337				1,337				1,337	2.5	%
Colorado		858				858				858	1.6	%
Oregon		115				115				115	0.2	%

Total office		9,604		—		9,604		—		9,604	18.0	%

Retail
Northern California		1,449				1,449				1,449	2.7	%
Southern California		564				564				564	1.1	%
Colorado		395				395				395	0.8	%
Arizona		29				29				29	0.1	%
Oregon		118				118				118	0.2	%

Total retail		2,555		—

CATELLUS DEVELOPMENT CORP 8-K