10-K 1 a2176251z10-k.htm 10-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2006


SIMON PROPERTY GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)
  001-14469
(Commission File No.)
  04-6268599
(I.R.S. Employer
Identification No.)

225 West Washington Street
Indianapolis, Indiana 46204
(Address of principal executive offices) (ZIP Code)

(317) 636-1600
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12 (b) of the Act:

Title of each class

  Name of each exchange
on which registered

Common stock, $0.0001 par value   New York Stock Exchange
7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $0.0001 par value   New York Stock Exchange
6% Series I Convertible Perpetual Preferred Stock, $0.0001 par value   New York Stock Exchange
83/8% Series J Cumulative Redeemable Preferred Stock, $0.0001 par value   New York Stock Exchange

Securities registered pursuant to Section 12 (g) of the Act: None


            Indicate by check mark if the Registrant is a well-known seasoned issuer (as defined in Rule 405 of the Securities Act). YES ý    NO o

            Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES o    NO ý

            Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý    NO o

            Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

            Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer.

Large accelerated filer ý                      Accelerated filer o                      Non-accelerated filer o

            Indicate by checkmark whether the Registrant is a shell company (as defined in rule 12-b of the Act). YES o    NO ý

            The aggregate market value of shares of common stock held by non-affiliates of the Registrant was approximately $17,885 million based on the closing sale price on the New York Stock Exchange for such stock on June 30, 2006.

            As of January 31, 2007, Simon Property Group, Inc. had 221,575,842, 8,000 and 4,000 shares of common stock, Class B common stock and Class C common stock outstanding, respectively.


Documents Incorporated By Reference

            Portions of the Registrant's Annual Report to Stockholders are incorporated by reference into Parts I, II and IV; and portions of the Registrant's Proxy Statement in connection with its 2007 Annual Meeting of Stockholders are incorporated by reference in Part III.




Simon Property Group, Inc. and Subsidiaries
Annual Report on Form 10-K
December 31, 2006

TABLE OF CONTENTS


Item No.

 

 


 

Page No.

Part I

1.

 

Business

 

3
1A.   Risk Factors   10
1B.   Unresolved Staff Comments   15
2.   Properties   15
3.   Legal Proceedings   45
4.   Submission of Matters to a Vote of Security Holders   45

Part II

5.

 

Market for the Registrant's Common Equity, Related Stockholder Matters,
and Issuer Purchases of Equity Securities

 

46
6.   Selected Financial Data   47
7.   Management's Discussion and Analysis of Financial Condition and Results of Operations   47
7A.   Quantitative and Qualitative Disclosure About Market Risk   47
8.   Financial Statements and Supplementary Data   47
9.   Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
  47
9A.   Controls and Procedures   47
9B.   Other Information   47

Part III

10.

 

Directors, Executive Officers and Corporate Governance

 

48
11.   Executive Compensation   48
12.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters   48
13.   Certain Relationships and Related Transactions, and Director Independence   48
14.   Principal Accountant Fees and Services   48

Part IV

15.

 

Exhibits, and Financial Statement Schedules

 

49

Signatures

 

50

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Part I

Item 1. Business

Background

            Simon Property Group, Inc. ("Simon Property") is a Delaware corporation that operates as a self-administered and self-managed real estate investment trust ("REIT"). Simon Property Group, L.P. (the "Operating Partnership") is a majority-owned partnership subsidiary of Simon Property that owns all of our real estate properties. In this report, the terms "we", "us" and "our" refer to Simon Property, the Operating Partnership and their subsidiaries.

            We are engaged primarily in the ownership, development, and management of retail real estate, primarily regional malls, Premium Outlet® centers and community/lifestyle centers. As of December 31, 2006, we owned or held an interest in 286 income-producing properties in the United States, which consisted of 171 regional malls, 36 Premium Outlet centers, 69 community/lifestyle centers, and 10 other shopping centers or outlet centers in 38 states and Puerto Rico (collectively, the "Properties", and individually, a "Property"). We also own interests in five parcels of land held for future development (together with the Properties, the "Portfolio"). In the United States, we have five new properties currently under development aggregating approximately 3.5 million square feet which will open during 2007 or early 2008. Internationally, we have ownership interests in 53 European shopping centers (in France, Italy and Poland), five Premium Outlet centers in Japan, and one Premium Outlet center in Mexico. We also have begun construction on a Premium Outlet center in which we will hold a 50% interest located in South Korea and, through a joint venture arrangement, we will have a 32.5% interest in five shopping centers (four of which are under construction) in China.

Operating Policies and Strategies

            The following is a discussion of our investment policies, financing policies, conflict of interest policies and policies with respect to certain other activities. One or more of these policies may be amended or rescinded from time to time without a stockholder vote.

    Investment Policies

            We conduct our investment activities through the Operating Partnership and its subsidiaries. Our primary business objectives are to increase Funds From Operations ("FFO") per share, operating results and the value of our Properties while maintaining a strong, stable balance sheet consistent with our financing policies. We intend to achieve these objectives by:

developing new shopping centers which meet our economic criteria;
renovating and/or expanding our Properties where appropriate;
acquiring additional shopping centers and portfolios of other retail real estate companies that meet our investment criteria;
pursuing a leasing strategy that capitalizes on the desirable location of our Properties;
generating additional revenues through merchandising, marketing and promotional activities;
adding mixed-use elements to our Portfolio through our asset intensification initiatives, such as multifamily, condominiums, hotel and self-storage elements at selected locations; and
improving the performance of our Properties by using the economies of scale that result from our size to help control operating costs.

            We cannot assure you that we will achieve our business objectives.

            We develop and acquire properties to generate both current income and long-term appreciation in value. We do not limit the amount or percentage of assets that may be invested in any particular property or type of property or in any geographic area. We may purchase or lease properties for long-term investment or develop, redevelop, and/or sell our Properties, in whole or in part, when circumstances warrant. We participate with other entities in property ownership, through joint ventures or other types of co-ownership. These equity investments may be subject to existing mortgage financing and other indebtedness that have priority over our equity interest.

            While we emphasize equity real estate investments, we may, at our discretion, invest in mortgages and other real estate interests consistent with our qualification as a REIT under the Internal Revenue Code ("Code"). We do not currently intend to invest to a significant extent in mortgages or deeds of trust; however, we hold an interest in one

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Property through a mortgage note which results in us receiving 100% of the economics of the Property. We may invest in participating or convertible mortgages if we conclude that we may benefit from the cash flow or any appreciation in the value of the property.

            We may also invest in securities of other entities engaged in real estate activities or securities of other issuers. However, any of these investments would be subject to the percentage ownership limitations and gross income tests necessary for REIT qualification under the Code. These REIT limitations mean that we cannot make an investment that would cause our real estate assets to be less than 75% of our total assets. In addition, at least 75% of our gross income must be derived directly or indirectly from investments relating to real property or mortgages on real property, including "rents from real property," dividends from other REIT's and, in certain circumstances, interest from certain types of temporary investments. At least 95% of our income must be derived from such real property investments, and from dividends, interest and gains from the sale or dispositions of stock or securities or from other combinations of the foregoing.

            Subject to these REIT limitations, we may invest in the securities of other issuers in connection with acquisitions of indirect interests in real estate. Such an investment would normally be in the form of general or limited partnership or membership interests in special purpose partnerships and limited liability companies that own one or more properties. We may, in the future, acquire all or substantially all of the securities or assets of other REITs, management companies or similar entities where such investments would be consistent with our investment policies.

    Financing Policies

            We must comply with the covenant restrictions of the debt agreements of the Operating Partnership that limit our ratio of debt to total market valuation. For example, the Operating Partnership's lines of credit and the indentures for the Operating Partnership's debt securities contain covenants that restrict the total amount of debt of the Operating Partnership to 65%, or 60% in relation to certain debt, of total assets, as defined under the related arrangement, and secured debt to 50% of total assets. In addition, these agreements contain other covenants requiring compliance with financial ratios. Furthermore, the amount of debt that we may incur is limited as a practical matter by our desire to maintain acceptable ratings for our equity securities and the debt securities of the Operating Partnership.

            If our Board of Directors ("Board") determines to seek additional capital, we may raise such capital through additional equity offerings, debt financing, creating joint ventures with existing ownership interests in Properties, retention of cash flows or a combination of these methods. Our ability to retain cash flows is subject to Code provisions requiring REITs to distribute a certain percentage of their taxable income. We must also take into account taxes that would be imposed on undistributed taxable income. If the Board determines to raise additional equity capital, it may, without stockholder approval, issue additional shares of common stock or other capital stock. The Board may issue a number of shares up to the amount of our authorized capital in any manner and on such terms and for such consideration as it deems appropriate. This may include issuing stock in exchange for property. Such securities may be senior to the outstanding classes of common stock. Such securities also may include additional classes of preferred stock, which may be convertible into common stock. Existing stockholders will have no preemptive right to purchase shares in any subsequent offering of our securities. Any such offering could dilute a stockholder's investment in us.

            We anticipate that any additional borrowings would be made through the Operating Partnership or its subsidiaries. We might, however, incur borrowings that would be reloaned to the Operating Partnership. Borrowings may be in the form of bank borrowings, publicly and privately placed debt instruments, or purchase money obligations to the sellers of properties. Any of such indebtedness may be unsecured or may be secured by any or all of our assets, the Operating Partnership or any existing or new property-owning partnership. Any such indebtedness may also have full or limited recourse to all or any portion of the assets of any of the foregoing. Although we may borrow to fund the payment of dividends, we currently have no expectation that we will regularly be required to do so.

            We may obtain unsecured or secured lines of credit. We also may determine to issue debt securities. Any such debt securities may be convertible into capital stock or be accompanied by warrants to purchase capital stock. We also may sell or securitize our lease receivables. The proceeds from any borrowings or financings may be used for the following:

financing acquisitions;
developing or redeveloping properties;
refinancing existing indebtedness;
working capital or capital improvements; or

4


meeting the income distribution requirements applicable to REITs, if we have income without the receipt of cash sufficient to enable us to meet such distribution requirements.

            We also may determine to finance acquisitions through the following:

    issuance of shares of common stock;
    issuance of shares of preferred stock;
    issuance of additional units of limited partnership interest in the Operating Partnership;
    issuance of preferred units of the Operating Partnership;
    issuance of other securities; or
    sale or exchange of ownership interests in Properties.

            The ability to offer units of limited partnership interest to transferors may result in beneficial tax treatment for the transferors. This is because the exchange of units for properties may defer gain recognition for tax purposes by the transferor. It may also be advantageous for us since certain investors may be limited in the number of shares of our capital stock that they may purchase.

            If the Board determines to obtain additional debt financing, we intend to do so generally through mortgages on Properties, borrowings under our revolving lines of credit or term loan facilities, or the issuance of unsecured debt through the Operating Partnership. We may do this directly or through an entity owned or controlled by us. The mortgages may be non-recourse, recourse, or cross-collateralized. We do not have a policy limiting the number or amount of mortgages that may be placed on any particular property. Mortgage financing instruments, however, usually limit additional indebtedness on such properties.

            Typically, we invest in or form special purpose entities only to obtain permanent financing for Properties on attractive terms. Permanent financing for Properties is typically structured as a mortgage loan on one or a group of Properties in favor of an institutional third party, as a joint venture with a third party, or as a securitized financing. For securitized financings, we are required to create special purpose entities to own the Properties. These special purpose entities are structured so that they would not be consolidated with us in the event we would ever become subject to a bankruptcy proceeding. We decide upon the structure of the financing based upon the best terms then available to us and whether the proposed financing is consistent with our other business objectives. For accounting purposes, we include the outstanding securitized debt of special purpose entities owning consolidated Properties as part of our consolidated indebtedness.

    Conflict of Interest Policies

            We maintain policies and have entered into agreements designed to reduce or eliminate potential conflicts of interest. We have adopted governance principles governing our affairs and the Board, as well as written charters for each of the standing Committees of the Board. In addition, we have a Code of Business Conduct and Ethics, which applies to all of our officers, directors, and employees. At least a majority of the members of our Board must qualify as independent under the listing standards for New York Stock Exchange companies and cannot be affiliated with the Simon or DeBartolo families who are significant stockholders. Any transaction between us and the Simons or the DeBartolos, including property acquisitions, service and property management agreements and retail space leases, must be approved by a majority of non-affiliated directors.

            The sale by the Operating Partnership of any property that it owns may have an adverse tax impact on the Simons or the DeBartolos and the other limited partners of the Operating Partnership. In order to avoid any conflict of interest between Simon Property and the limited partners of the Operating Partnership, our charter requires that at least six of our independent directors must authorize and require the Operating Partnership to sell any property it owns. Any such sale is subject to applicable agreements with third parties. Noncompetition agreements executed by each of the Simons contain covenants limiting the ability of the Simons to participate in certain shopping center activities in North America.

    Policies With Respect To Certain Other Activities

            We intend to make investments which are consistent with applicable REIT requirements of the Code, unless the Board determines that it is no longer in our best interests to qualify as a REIT. The Board may make such a determination because of changing circumstances or changes in the REIT requirements. We have authority to offer shares of our capital stock or other securities in exchange for property. We also have authority to repurchase or

5


otherwise reacquire our shares or any other securities. We may engage in such activities in the future. We may issue shares of our common stock to holders of units of limited partnership interest in the Operating Partnership in future periods upon exercise of such holders' rights under the Operating Partnership agreement. We may also repurchase shares of our common stock subject to Board approval. It is our policy to not make any loans to our directors or executive officers for any purpose. We may make loans to joint ventures in which we participate.

Operating Strategies

            We plan to achieve our primary business objectives through a variety of methods discussed below, although we cannot assure you that we will achieve such objectives.

            Leasing.    We pursue a leasing strategy that includes:

    marketing available space to maintain or increase occupancy levels;
    renewing existing leases and originating new leases at higher base rents per square foot;
    negotiating leases that allow us to recover from our tenants the majority of our property operating, real estate tax, and advertising and promotion expenditures; and
    executing leases that provide for percentage or overage rents and/or regular or periodic fixed contractual increases in base rents.

            Management.    We draw upon our expertise gained through management of a geographically diverse Portfolio, nationally recognized as comprising high quality retail and other Properties. In doing so, we seek to maximize cash flow through a combination of:

    an active merchandising program to maintain our shopping centers as inviting shopping destinations;
    efforts to minimize overhead and operating costs which not only benefits our operations but also reduces the costs reimbursed to us from our tenants. A tenant's ability to pay rent is affected by the percentage of its sales represented by occupancy costs, which consist of rent and expense recoveries. As sales levels increase, if expenses subject to recovery are controlled, the tenant can afford to pay higher base rent.
    coordinated marketing and promotional activities that establish and maintain customer loyalty; and
    systematic planning and monitoring of results.

            We believe that if we are successful in our efforts to increase sales while controlling operating expenses we will be able to continue to increase base rents at the Properties.

            We are the manager of substantially all our Properties held as joint venture Properties and as a result we derive revenues from management fees and other services.

            Other Revenues.    Due to our size, tenant and vendor relationships, we also generate revenues from the activities of:

    Simon Brand Ventures ("Simon Brand") obtains revenues from establishing our malls as leading market resource providers for retailers and other businesses and consumer-focused corporate alliances. Simon Brand revenues sources include: payment systems (including marketing fees relating to the sales of bank-issued prepaid cards), national marketing alliances, static and digital media initiatives, business development, sponsorship, and events.
    Simon Business Network ("Simon Business") revenues are derived from the offering of products and property operating services, resulting from its relationships with vendors, to our tenants and others. These services include such items as waste handling, facility services, and energy services, as well as major capital expenditures such as roofing, parking lots and energy systems.

            We also generate other revenues through the sale or lease of land adjacent to our Properties commonly referred to as "outlots" or "outparcels."

            International Expansion.    Our investments in properties that are under operation in Europe, Japan, and Mexico are conducted through joint ventures. In Europe, we have investments in partnerships with Groupe Auchan (known as Gallerie Commerciali Italia ("GCI") in Italy) and Ivanhoe Cambridge, Inc. (known as Simon Ivanhoe S.à.r.l. ("Simon Ivanhoe") in France and Poland). In Japan, our investments are in partnerships with Mitsubishi Estate Co., Ltd. and Sojitz Corporation (formerly known as Nissho Iwai Corporation). Our Mexico investment is a joint venture with Sordo Madaleno y Asociados. We have also formed a joint venture in South Korea to develop a Premium Outlet Center. We

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and our partner, Shinsegae Co., Ltd. and Shinsegae International Co., Ltd. (collectively "Shinsegae"), each own 50% of this partnership. Lastly, we have formed joint ventures with Morgan Stanley Real Estate Fund ("MSREF") and SZITIC Commercial Property Co., Ltd. ("SZITIC CP") to develop five shopping centers in China. Four of these centers are currently under construction. We account for our international joint venture activities under the equity method of accounting, as defined by accounting policies generally accepted in the United States.

            We believe that the expertise we have gained through the development, leasing, management, and marketing of our Properties in the United States can be utilized in retail properties abroad. There are risks inherent in international operations that may be beyond our control which are described in the following section entitled "Risk Factors."

    Acquisitions

            The acquisition of high quality individual properties or portfolios of properties remain an integral component of our growth strategies. On November 1, 2006, we acquired the remaining 50% interest in Mall of Georgia, a regional mall Property, from our partner for $252.6 million, including the assumption of $96.0 million of debt. As a result, we now own 100% of Mall of Georgia, and the property was consolidated as of the acquisition date.

            During 2006, we also acquired an additional 15.3% net ownership in Simon Ivanhoe, increasing our ownership interest in this joint venture to 50% effective in the first quarter of 2006.

    Dispositions

            As part of our strategic plan to own high quality retail real estate, we continually evaluate our properties and sell those which no longer meet our strategic criteria. We may use the capital generated from these dispositions to invest in higher-quality and higher-growth properties. We believe that the sale of these non-core Properties will not have a material impact on our future results of operations or cash flows nor will their sale materially affect our ongoing operations. We expect that any earnings dilution from the sales on our results of operations from these dispositions will be offset by the positive impact of acquisition, development and redevelopment activities.

            During the year ended December 31, 2006, we disposed of three consolidated properties and one joint venture property in which we held a 50% interest and accounted for under the equity method. We received net proceeds of $52.7 million and recorded our share of a net gain on the disposals totaling $12.2 million. We do not believe the sale of these properties will have a material impact on our future results of operations or cash flows. We believe the disposition of these properties will enhance the average overall quality of our Portfolio. In addition, we also received capital transaction proceeds related to a beneficial interest that we held during 2006 in a mall partnership, which resulted in an $86.5 million gain, terminating our beneficial interests in this entity.

Competition

            We consider our principal competitors to be ten other major United States or internationally publicly-held companies that own or operate regional malls, outlet centers, and other shopping centers in the United States and abroad. We also compete with many commercial developers, real estate companies and other owners of retail real estate that operate in our trade areas. Some of our Properties and investments are of the same type and are within the same market area as competitor properties. The existence of competitive properties could have a material adverse effect on our ability to lease space and on the level of rents we can obtain. This results in competition for both the acquisition of prime sites (including land for development and operating properties) and for tenants to occupy the space that we and our competitors develop and manage. In addition, our Properties compete against other forms of retailing, such as catalog and e-commerce websites, that offer retail products and services.

            We believe that our Portfolio is the largest, as measured by gross leasable area ("GLA"), of any publicly-traded retail REIT. In addition, we own or have an interest in more regional malls than any other publicly-traded REIT. We believe that we have a competitive advantage in the retail real estate business as a result of:

    the size, quality and diversity of our Properties;
    our management and operational expertise;
    our extensive experience and relationships with retailers and lenders;
    our mall marketing initiatives and consumer focused strategic corporate alliances, including those developed by Simon Brand and Simon Business; and
    our ability to use our size to reduce the total occupancy cost of our tenants.

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            Our size reduces our dependence upon individual retail tenants. Approximately 4,200 different retailers occupy more than 24,000 stores in our Properties and no retail tenant represents more than 3.8% of our Properties' total minimum rents.

Certain Activities

            During the past three years, we have:

    issued 7,365,739 shares of common stock upon the conversion of common units of limited partnership interest in the Operating Partnership;
    issued 1,181,241 restricted shares of common stock, net of forfeitures, under The Simon Property Group 1998 Stock Incentive Plan (the "1998 Plan");
    issued 1,014,066 shares of common stock upon exercise of stock options under 1998 Plan;
    purchased and retired 181,000 shares of common stock;
    purchased 3,132,700 shares of common stock in the open market;
    issued 12,978,795 shares of common stock in the Chelsea Property Group, Inc. ("Chelsea") acquisition;
    issued 222,933 shares of common stock upon the conversion of 283,907 shares of Series I Preferred Stock;
    repurchased 78,012 shares of Series H preferred stock in 2004;
    issued 1,156,039 shares of Series D preferred stock in 2004 upon the conversion of Series D preferred units and repurchased 1,156,039 shares of Series D preferred stock in 2004;
    redeemed all of the 1,000,000 shares of Series E preferred stock;
    redeemed all of the 8,000,000 shares of Series F preferred stock;
    issued 13,261,712 shares of Series I preferred stock in the Chelsea acquisition;
    issued 803,948 shares of Series I preferred stock upon the exchange of Series I preferred units;
    issued 796,948 shares of Series J preferred stock in the Chelsea acquisition;
    issued and repurchased 8,000,000 shares of Series K preferred stock in 2006;
    borrowed a maximum amount of $2.0 billion under our unsecured revolving credit facility; the outstanding amount of borrowings under this facility as of December 31, 2006 was $305.1 million;
    as a co-borrower with the Operating Partnership, borrowed $1.8 billion under an unsecured acquisition facility in connection with the Chelsea acquisition, that has been fully repaid as of December 31, 2006;
    provided annual reports containing financial statements certified by our independent registered public accounting firm and quarterly reports containing unaudited financial statements to our security holders.
    not made loans to other entities or persons, including our officers and directors, other than to certain joint venture properties;
    not invested in the securities of other issuers for the purpose of exercising control, other than the Operating Partnership, certain wholly-owned subsidiaries and to acquire interests in real estate;
    not underwritten securities of other issuers; and
    not engaged in the purchase and sale or turnover of investments for the purpose of trading.

Employees

            At January 26, 2007, we and our affiliates employed approximately 4,300 persons at various properties and offices throughout the United States, of which approximately 1,600 were part-time. Approximately 1,000 of these employees were located at our corporate headquarters in Indianapolis, IN and 140 were located at our Chelsea offices in Roseland, NJ.

Corporate Headquarters

            Our corporate headquarters are located at 225 West Washington Street, Indianapolis, Indiana 46204, and our telephone number is (317) 636-1600.

Available Information

            Our Internet website address is www.simon.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available or may be accessed free of charge through the "About Simon/Investor Relations/Financial Information" section of our Internet website as soon as reasonably practicable after we

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electronically file such material with, or furnish it to, the SEC. Our Internet website and the information contained therein or connected thereto are not intended to be incorporated into this Annual Report on Form 10-K.

            The following corporate governance documents are also available through the About Simon/Investor Relations/Corporate Governance section of our Internet website or may be obtained in print form by request of our Investor Relations Department: Governance Principles, Code of Business Conduct and Ethics, Audit Committee Charter, Compensation Committee Charter, Nominating Committee Charter, Governance Committee Charter, and Executive Committee Charter.

Executive Officers of the Registrant

            The following table sets forth certain information with respect to the executive officers of Simon Property as of December 31, 2006.

Name

  Age
  Position
Melvin Simon (1)   80   Co-Chairman
Herbert Simon (1)   72   Co-Chairman
David Simon (1)   45   Chief Executive Officer
Richard S. Sokolov   57   President and Chief Operating Officer
Gary L. Lewis   48   Executive Vice President — Leasing
Stephen E. Sterrett   51   Executive Vice President and Chief Financial Officer
J. Scott Mumphrey   55   Executive Vice President — Property Management
John Rulli   50   Executive Vice President — Chief Operating Officer — Operating Properties
James M. Barkley   55   General Counsel; Secretary
Andrew A. Juster   54   Senior Vice President and Treasurer

(1)
Melvin Simon is the brother of Herbert Simon and the father of David Simon.

            Set forth below is a summary of the business experience of the executive officers of Simon Property. The executive officers of Simon Property serve at the pleasure of the Board. For biographical information of Melvin Simon, Herbert Simon, David Simon, Richard S. Sokolov, Stephen E. Sterrett, and James M. Barkley, see Item 10 of this report.

            Mr. Lewis is the Executive Vice President — Leasing of Simon Property. Mr. Lewis joined Melvin Simon & Associates, Inc. ("MSA") in 1986 and held various positions with MSA and Simon Property prior to becoming Executive Vice President in charge of Leasing of Simon Property in 2002.

            Mr. Mumphrey serves as Simon Property's Executive Vice President — Property Management. He joined MSA in 1974 and also held various positions with MSA before becoming Senior Vice President of Property Management in 1993. In 2000, he became the President of Simon Business Network. Mr. Mumphrey became Executive Vice President — Property Management in 2002.

            Mr. Rulli serves as Simon Property's Executive Vice President — Chief Operating Officer — Operating Properties and previously served as Executive Vice President and Chief Administrative Officer. He joined MSA in 1988 and held various positions with MSA before becoming Simon Property's Executive Vice President in 1993 and Chief Administrative Officer in 2000. In December 2003, he was appointed to Executive Vice President — Chief Operating Officer — Operating Properties.

            Mr. Juster serves as Simon Property's Senior Vice President and Treasurer. He joined MSA in 1989 and held various financial positions with MSA until 1993 and thereafter has held various positions with Simon Property. Mr. Juster became Treasurer in 2001.

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Item 1A. Risk Factors

            The following factors, among others, could cause our actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K and presented elsewhere by our management from time to time. These factors, among others, may have a material adverse effect on our business, financial condition, operating results and cash flows, and you should carefully consider them. It is not possible to predict or identify all such factors. You should not consider this list to be a complete statement of all potential risks or uncertainties. Past performance should not be considered an indication of future performance.

Risks Relating to Debt and the Financial Markets

    We have a substantial debt burden that could affect our future operations.

            As of December 31, 2006, our consolidated mortgages and other indebtedness, excluding the related premium and discount, totaled $15.3 billion, of which approximately $1.7 billion matures during 2007, including recurring principal amortization. We are subject to the risks normally associated with debt financing, including the risk that our cash flow from operations will be insufficient to meet required debt service. Our debt service costs generally will not be reduced if developments at the Property, such as the entry of new competitors or the loss of major tenants, cause a reduction in the income from the Property. Should such events occur, our operations may be adversely affected. If a Property is mortgaged to secure payment of indebtedness and income from the Property is insufficient to pay that indebtedness, the Property could be foreclosed upon by the mortgagee resulting in a loss of income and a decline in our total asset value.

    We depend on external financings for our growth and ongoing debt service requirements.

            We depend primarily on external financings, principally debt financings, to fund the growth of our business and to ensure that we can meet ongoing maturities of our outstanding debt. Our access to financing depends on our credit rating, the willingness of banks to lend to us and conditions in the capital markets in general. We cannot assure you that we will be able to obtain the financing we need for future growth or to meet our debt service as obligations mature, or that the financing available to us will be on acceptable terms.

    Adverse changes in our credit rating could affect our borrowing capacity and borrowing terms.

            Our outstanding senior unsecured notes and preferred stock are periodically rated by nationally recognized credit rating agencies. The credit ratings are based on our operating performance, liquidity and leverage ratios, overall financial position, and other factors viewed by the credit rating agencies as relevant to our industry and the economic outlook in general. Our credit rating can affect the amount of capital we can access, as well as the terms of any financing we obtain. Since we depend primarily on debt financing to fund our growth, adverse changes in our credit rating could have a negative effect on our future growth.

    Our hedging interest rate protection arrangements may not effectively limit our interest rate risk.

            We manage our exposure to interest rate risk by a combination of interest rate protection agreements to effectively fix or cap a portion of our variable rate debt, or in the case of a fair value hedge, effectively convert fixed rate debt to variable rate debt. In addition, we refinance fixed rate debt at times when we believe rates and terms are appropriate. Our efforts to manage these exposures may not be successful.

            Our use of interest rate hedging arrangements to manage risk associated with interest rate volatility may expose us to additional risks, including a risk that a counterparty to a hedging arrangement may fail to honor its obligations. Developing an effective interest rate risk strategy is complex and no strategy can completely insulate us from risks associated with interest rate fluctuations. There can be no assurance that our hedging activities will have the desired beneficial impact on our results of operations or financial condition. Termination of these hedging agreements typically involve costs, such as transaction fees or breakage costs.

    Rising interest rates could also make our equity securities less attractive.

            One of the factors that may influence the price of our equity securities in public markets is the annual distribution rate we pay as compared with the yields on alternative investments. Any significant increase in interest

10


rates could lead holders of our equity securities to seek higher yields through other investments, which could adversely affect the market price of our equity securities.

    Rising interest rates could adversely affect our debt service costs.

            As of December 31, 2006, approximately $0.8 billion of our total consolidated debt, adjusted to reflect outstanding derivative instruments, was subject to floating interest rates. In a rising interest rate environment, these debt service costs will increase. Increased debt service costs would adversely affect our cash flow. The impact of changes in market rates of interest on the fair value of our debt and, in turn, our future earnings and cash flows appears elsewhere in this report.

Factors Affecting Real Estate Investments and Operations

    We face risks associated with the acquisition, development and expansion of properties.

            We regularly acquire and develop new properties and expand and redevelop existing Properties, and these activities are subject to various risks. We may not be successful in pursuing acquisition, development or redevelopment/expansion opportunities. In addition, newly acquired, developed or redeveloped/expanded properties may not perform as well as expected. We are subject to other risks in connection with any acquisition, development and redevelopment/expansion activities, including the following:

construction costs of a project may be higher than projected, potentially making the project unfeasible or unprofitable;
we may not be able to obtain financing or to refinance construction loans on favorable terms, if at all;
we may be unable to obtain zoning, occupancy or other governmental approvals;
occupancy rates and rents may not meet our projections and the project may not be profitable; and
we may need the consent of third parties such as anchor tenants, mortgage lenders and joint venture partners, and those consents may be withheld.

            If a development or redevelopment/expansion project is unsuccessful, either because it is not meeting our expectations when operational or was not completed according to the project planning, we could lose our investment in the project. Further, if we guarantee the property's financing, our loss could exceed our investment in the project.

    We are subject to risks related to owning retail real estate.

            We are subject to risks incidental to the ownership and operation of retail real estate. These risks include, among others:

    the risks normally associated with changes in the general economic climate;
    trends in the retail industry;
    creditworthiness of tenants;
    competition for tenants and customers;
    consumer confidence;
    impact of terrorist activities;
    changes in tax laws;
    interest and foreign currency exchange rates;
    the availability of financing; and
    potential liability under environmental and other laws.

    Real estate investments are relatively illiquid.

            Our Properties represent a substantial portion of our total consolidated assets. These investments are relatively illiquid. As a result, our ability to sell one or more of our Properties or investments in real estate in response to any changes in economic or other conditions is limited. If we want to sell a Property, we cannot assure you that we will be able to dispose of it in the desired time period or that the sales price of a Property will exceed the cost of our investment.

11


Environmental Risks

    As owners of real estate, we can face liabilities for environmental contamination.

            Federal, state and local laws and regulations relating to the protection of the environment may require us, as a current or previous owner or operator of real property, to investigate and clean up hazardous or toxic substances or petroleum product releases at a Property or at impacted neighboring properties. These laws often impose liability regardless of whether the property owner or operator knew of, or was responsible for, the presence of hazardous or toxic substances. These laws and regulations may require the abatement or removal of asbestos containing materials in the event of damage, demolition or renovation, reconstruction or expansion of a Property and also govern emissions of and exposure to asbestos fibers in the air. Those laws and regulations also govern the installation, maintenance and removal of underground storage tanks used to store waste oils or other petroleum products. Many of our Properties contain, or at one time contained, asbestos containing materials or underground storage tanks (primarily related to auto service center establishments or emergency electrical generation equipment). The costs of investigation, removal or remediation of hazardous or toxic substances may be substantial and could adversely affect our results of operations or financial condition but is not estimable. The presence of contamination, or the failure to remediate contamination, may also adversely affect our ability to sell, lease or redevelop a Property or to borrow using a Property as collateral.

    Our efforts to identify environmental liabilities may not be successful.

            Although we believe that our Portfolio is in substantial compliance with Federal, state and local environmental laws, ordinances and regulations regarding hazardous or toxic substances, this belief is based on limited testing. Nearly all of our Properties have been subjected to Phase I or similar environmental audits. These environmental audits have not revealed, nor are we aware of, any environmental liability that we believe will have a material adverse effect on our results of operations or financial condition. However, we cannot assure you that:

    existing environmental studies with respect to the Portfolio reveal all potential environmental liabilities;
    any previous owner, occupant or tenant of a Property did not create any material environmental condition not known to us;
    the current environmental condition of the Portfolio will not be affected by tenants and occupants, by the condition of nearby properties, or by other unrelated third parties; or
    future uses or conditions (including, without limitation, changes in applicable environmental laws and regulations or the interpretation thereof) will not result in environmental liabilities.

Retail Operations Risks

    We are subject to risks that affect the general retail environment.

            Our concentration in the retail real estate market means that we are subject to the risks that affect the retail environment generally, including the levels of consumer spending, seasonality, the willingness of retailers to lease space in our shopping centers, tenant bankruptcies, changes in economic conditions, consumer confidence and terrorist activities. Any one or more of these factors could adversely affect our results of operations or financial condition.

    We may not be able to lease newly developed Properties and renew leases and relet space at existing Properties.

            We may not be able to lease new Properties to an appropriate mix of tenants or for rents that are consistent with our projections. Also, when leases for our existing Properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. To the extent that our leasing plans are not achieved, our cash generated before debt repayments and capital expenditures could be adversely affected.

    Some of our Properties depend on anchor stores or major tenants to attract shoppers and could be adversely affected by the loss of or a store closure by one or more of these tenants.

            Regional malls are typically anchored by department stores and other large nationally recognized tenants. The value of some of our Properties could be adversely affected if these tenants fail to comply with their contractual obligations, seek concessions in order to continue operations, or cease their operations. Department store and larger store, also referred to as "big box", consolidations typically result in the closure of existing stores or duplicate or

12


geographically overlapping store locations. We do not control the disposition of those department stores or larger stores that we do not own. We also may not control the vacant space that is not re-leased in those stores we do own. Other tenants may be entitled to modify the terms of their existing leases in the event of such closures. The modification could be unfavorable to us as the lessor and could decrease rents or expense recovery charges. Additionally, major tenant closures may result in decreased customer traffic which could lead to decreased sales at other stores. If the sales of stores operating in our Properties were to decline significantly due to closing of anchors, economic conditions, or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of default by a tenant or anchor store, we may experience delays and costs in enforcing our rights as landlord to recover amounts due to us under the terms of our agreements with those parties.

    We face potential adverse effects from tenants' bankruptcies.

            Bankruptcy filings by retailers occur frequently in the course of our operations. We are continually re-leasing vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant, may make it more difficult to lease the remainder of the affected Properties. Future tenant bankruptcies could adversely affect our Properties or impact our ability to successfully execute our re-leasing strategy.

Risks Relating to Joint Venture Properties

    We have limited control with respect to some of our Properties that are partially owned or managed by third parties, which may adversely affect our ability to sell or refinance the Properties.

            As of December 31, 2006, we owned interests in 146 income-producing properties with other parties. Of those, 19 Properties are included in our consolidated financial statements. We account for the other 127 properties under the equity method of accounting, which we refer to as joint venture properties. We serve as general partner or property manager for 58 of these 127 properties; however, certain major decisions, such as selling or refinancing these properties, require the consent of the other owners. Of these properties we do not serve as general partner or property manager, 59 are in our international joint ventures. The other owners also have other participating rights that we consider substantive for purposes of determining control over the properties' assets. The remaining joint venture properties are managed by third parties. These limitations may adversely affect our ability to sell, refinance, or otherwise operate these properties.

    We guarantee debt or otherwise provide support for a number of joint venture Properties.

            Joint venture debt is the liability of the joint venture and is typically secured by a mortgage on the joint venture Property. As of December 31, 2006, we have loan guarantees and other guarantee obligations to support $43.6 million and $19.0 million, respectively, of our total $3.5 billion share of joint venture mortgage and other indebtedness. A default by a joint venture under its debt obligations may expose us to liability under a guaranty or letter of credit.

Other Factors Affecting Our Business

    Our Common Area Maintenance (CAM) contributions may not allow us to recover the majority of our operating expenses from tenants.

            CAM costs typically include allocable energy costs, repairs, maintenance and capital improvements to common areas, janitorial services, administrative, property and liability insurance costs, and security costs. We historically have used leases with variable CAM provisions that adjust to reflect inflationary increases. However, we are making a concerted effort to shift from variable to fixed CAM contributions for our cost recoveries which will fix our tenants' CAM contributions to us. As a result, our CAM contributions may not allow us to recover all operating costs and, we cannot assure you that we will succeed in our efforts to recover a substantial portion of these costs in the future.

    We face a wide range of competition that could affect our ability to operate profitably.

            Our Properties compete with other retail properties for tenants on the basis of the rent charged and location. The principal competition may come from existing or future developments in the same market areas and from discount shopping centers, outlet malls, catalogues, discount shopping clubs and electronic commerce. The presence of competitive properties also affects our ability to lease space and the level of rents we can obtain. Renovations and expansions at competing malls could also negatively affect our Properties.

13


            We also compete with other retail property developers to acquire prime development sites. In addition, we compete with other retail property companies for attractive tenants and qualified management.

    We expect to continue to pursue international expansion opportunities that may subject us to different or greater risk from those associated with our domestic operations.

            We hold interests in joint venture properties that are under operation in Europe, Japan and Mexico. We have also established arrangements to develop joint venture properties in China and South Korea, and expect to pursue additional expansion opportunities outside the United States. International development and ownership activities carry risks that are different from those we face with our domestic Properties and operations. These risks include:

    adverse effects of changes in exchange rates for foreign currencies;
    changes in foreign political environments, regionally, nationally, and locally;
    challenges of complying with a wide variety of foreign laws including corporate governance, operations, taxes, and litigation;
    differing lending practices;
    differences in cultures;
    changes in applicable laws and regulations in the United States that affect foreign operations;
    difficulties in managing international operations; and
    obstacles to the repatriation of earnings and cash.

            Although our international activities currently are a relatively small portion of our business (international properties represented less than 7% of the GLA of all of our properties at December 31, 2006), to the extent that we expand our international activities, these risks could increase in significance which in turn could adversely affect our results of operations and financial condition.

    Some of our potential losses may not be covered by insurance.

            We maintain commercial general liability "all risk" property coverage including fire, flood, extended coverage and rental loss insurance on our Properties. One of our subsidiaries indemnifies our general liability carrier for a specific layer of losses. A similar policy written through our subsidiary also provides a portion of our initial coverage for property insurance and certain windstorm risks at the Properties located in Florida. Even insured losses could result in a serious disruption to our business and delay our receipt of revenue.

            There are some types of losses, including lease and other contract claims that generally are not insured. If an uninsured loss or a loss in excess of insured limits occurs, we could lose all or a portion of the capital we have invested in a Property, as well as the anticipated future revenue from the Property. If this happens, we may still remain obligated for any mortgage debt or other financial obligations related to the Property.

            The events of September 11, 2001 significantly affected our insurance programs. Although insurance rates remain high, since the President signed into law the Terrorism Risk Insurance Act (TRIA) in November of 2002, the price of terrorism insurance has steadily decreased, while the available capacity has been substantially increased. We have purchased terrorism insurance covering all Properties. The program provides limits up to $1 billion per occurrence for Certified (Foreign) acts of terrorism and $500 million per occurrence for Non-Certified (Domestic) acts of terrorism. The coverage is written on an "all risk" policy form. In December of 2005, the President signed into law the Terrorism Risk Insurance Extension Act (TRIEA) of 2005, thereby extending the federal terrorism insurance backstop through 2007. TRIEA narrows terms and conditions afforded by TRIA for 2006 and 2007 by: 1) excluding lines of coverage for commercial automobile, surety, burglary and theft, farm owners' multi-peril and professional liability; 2) raising the certifiable event trigger mechanism from $5 million to $50 million during 2006 and to $100 million during 2007; and 3) increasing the deductibles and co-pays assigned to insurance companies. Upon the expiration of TRIEA in 2007, we could pay higher premiums for comparable terrorism coverage and/or obtain or be otherwise able to secure less coverage than we have currently.

    Terrorist attacks may adversely affect the value of our properties.

            Our higher profile Properties or markets they operate in could be potential targets for terrorism attacks, due to the large quantities of people at the Property or in the surrounding areas. Threatened or actual terrorist attacks in these high profile markets could directly or indirectly impact our Properties by resulting in lower property values, a decline in revenue, or a decline in customer traffic and, in turn, a decline in our tenants' sales.

14


    Inflation may adversely affect our financial condition and results of operations.

            Although inflation has not materially impacted our operations in the recent past, increased inflation could have a more pronounced negative impact on our mortgage and debt interest and general and administrative expenses, as these costs could increase at a rate higher than our rents. Also, inflation may adversely affect tenant leases with stated rent increases, which could be lower than the increase in inflation at any given time. Inflation could also have an adverse effect on consumer spending which could impact our tenants' sales and, in turn, our overage rents, where applicable.

Risks Relating to Federal Income Taxes

    Our failure to qualify as a REIT would have adverse tax consequences to us and our stockholders.

            We cannot assure you that we will remain qualified as a REIT. Qualification as a REIT for federal income tax purposes is governed by highly technical and complex Internal Revenue Code provisions for which there are only limited judicial or administrative interpretations. If we fail to qualify as a REIT and any available relief provisions do not apply:

    we will not be allowed a deduction for distributions to stockholders in computing our taxable income;
    we will be subject to corporate level income tax, including any applicable alternative minimum tax, on our taxable income at regular corporate rates; and
    unless entitled to relief under relevant statutory provisions, we will also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost.

            As a result, net income and funds available for distribution to our stockholders will be reduced for those years in which we fail to qualify as a REIT. Also, we would no longer be required to distribute money to our stockholders. Although we currently intend to operate so as to qualify as a REIT, future economic, market, legal, tax or other considerations might cause us to revoke our REIT election.

            On October 22, 2004, President Bush signed the American Jobs Creation Act which included several provisions of the REIT Improvement Act, which added some flexibility to the REIT rules. This Act provided for monetary penalties in lieu of REIT disqualification. This better matches the severity of the penalty to the REIT's error and therefore reduces the possibility of disqualification.

Item 1B. Unresolved Staff Comments

            None.

Item 2. Properties

    United States Properties

            Our Properties primarily consist of regional malls, Premium Outlet centers, community/lifestyle centers, and other properties. Our Properties contain an aggregate of approximately 200 million square feet of GLA, of which we own approximately 120.2 million square feet ("Owned GLA"). Total estimated retail sales at the Properties in 2006 were approximately $53 billion.

            Regional malls typically contain at least one traditional department store anchor or a combination of anchors and big box retailers with a wide variety of smaller stores ("Mall" stores) connecting the anchors. Additional stores ("Freestanding" stores) are usually located along the perimeter of the parking area. Our 171 regional malls are generally enclosed centers and range in size from approximately 400,000 to 2.0 million square feet of GLA. Our regional malls contain in the aggregate more than 17,800 occupied stores, including approximately 675 anchors, which are mostly national retailers.

            Premium Outlet centers generally contain a wide variety of retailers located in open-air manufacturers' outlet centers. Our 36 Premium Outlet centers range in size from approximately 200,000 to 600,000 square feet of GLA. The Premium Outlet centers are generally located near metropolitan areas including New York City, Los Angeles, Chicago, Boston, Washington, D.C., and San Francisco; or within 20 miles of major tourist destinations including Palm Springs, Napa Valley, Orlando, Las Vegas, and Honolulu.

15



            Community/lifestyle centers are generally unenclosed and smaller than our regional malls. Our 69 community/lifestyle centers generally range in size from approximately 100,000 to 600,000 square feet of GLA. Community/lifestyle centers are designed to serve a larger trade area and typically contain anchor stores and other tenants that are usually national retailers among the leaders in their markets. These tenants generally occupy a significant portion of the GLA of the center. We also own traditional community shopping centers that focus primarily on value-oriented and convenience goods and services. These centers are usually anchored by a supermarket, discount retailer, or drugstore and are designed to service a neighborhood area. Finally, we own open-air centers adjacent to our regional malls designed to take advantage of the drawing power of the mall.

            We also have interests in 10 other shopping centers or outlet centers. These other Properties range in size from approximately 85,000 to 300,000 square feet of GLA. The combined other Properties represent less than 1% of our total operating income before depreciation.

            The following table provides representative data for our Properties as of December 31, 2006:

 
  Regional
Malls

  Premium
Outlet
Centers

  Community/
Lifestyle
Centers

  Other Properties
 
% of total Property annualized base rent   80.7 % 12.8 % 6.1 % 0.4 %
% of total Property GLA   82.8 % 6.9 % 9.5 % 0.8 %
% of Owned Property GLA   76.0 % 11.6 % 11.1 % 1.3 %

            As of December 31, 2006, approximately 93.2% of the Mall and Freestanding Owned GLA in regional malls and the retail space of the other Properties was leased, approximately 99.4% of Owned GLA in the Premium Outlet centers was leased and approximately 93.2% of Owned GLA in the community/lifestyle centers was leased.

            We own 100% of 199 of our 286 Properties, effectively control 19 Properties in which we have a joint venture interest, and hold the remaining 68 Properties through unconsolidated joint venture interests. We are the managing or co-managing general partner or member of 276 of our Properties. Substantially all of our joint venture Properties are subject to rights of first refusal, buy-sell provisions, or other sale rights for all partners which are customary in real estate partnership agreements and the industry. Our partners in our joint ventures may initiate these provisions at any time, which will result in either the use of available cash or borrowings to acquire their partnership interest or the disposal of our partnership interest.

            The following property table summarizes certain data on our regional malls, Premium Outlet centers, and community/lifestyle centers located in the United States, including Puerto Rico, as of December 31, 2006.

16


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    REGIONAL MALLS                                

1.

 

Alton Square

 

IL

 

Alton (St. Louis)

 

Fee

 

100.0

%

Acquired 1993

 

64.3

%

426,315

 

211,655

 

637,970

 

Macy's, JCPenney, Sears, Old Navy
2.   Anderson Mall   SC   Anderson (Greenville)   Fee   100.0 % Built 1972   95.8 % 404,394   229,988   634,382   Belk Ladies Fashion Store, Belk Men's & Home Store, JCPenney, Sears
3.   Apple Blossom Mall   VA   Winchester   Fee   49.1 % (4) Acquired 1999   95.9 % 229,011   213,619   442,630   Belk, JCPenney, Sears, Dick's Sporting Goods (6)
4.   Arsenal Mall   MA   Watertown (Boston)   Fee   100.0 % Acquired 1999   95.8 % 191,395   310,130 (18) 501,525   Marshalls, The Home Depot, Linens 'n Things, Filene's Basement, Old Navy
5.   Atrium Mall   MA   Chestnut Hill (Boston)   Fee   49.1 % (4) Acquired 1999   99.4 %   205,751   205,751   Borders Books & Music
6.   Auburn Mall   MA   Auburn (Boston)   Fee   49.1 % (4) Acquired 1999   93.3 % 417,620   174,350   591,970   Macy's, Macy's Home Store, Sears
7.   Aventura Mall (1)   FL   Miami Beach   Fee   33.3 % (4) Built 1983   96.1 % 1,257,638   662,622   1,920,260   Bloomingdale's, Macy's, Macy's Mens & Home Furniture, JCPenney, Sears, Nordstrom (6)
8.   Avenues, The   FL   Jacksonville   Fee   25.0 % (4) (2) Built 1990   99.1 % 754,956   362,409   1,117,365   Belk, Dillard's, JCPenney, Parisian (19), Sears
9.   Bangor Mall   ME   Bangor   Fee   66.4 % (15) Acquired 2003   92.2 % 416,582   237,494   654,076   Macy's, JCPenney, Sears, Dick's Sporting Goods
10.   Barton Creek Square   TX   Austin   Fee   100.0 % Built 1981   97.5 % 922,266   508,229   1,430,495   Nordstrom, Macy's, Dillard's Women's & Home, Dillard's Men's & Children's, JCPenney, Sears
11.   Battlefield Mall   MO   Springfield   Fee and Ground Lease (2056)   100.0 % Built 1970   92.1 % 770,111   433,482   1,203,593   Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Sears
12.   Bay Park Square   WI   Green Bay   Fee   100.0 % Built 1980   98.1 % 447,508   267,756   715,264   Younkers, Elder-Beerman, Kohl's, ShopKo
13.   Bowie Town Center   MD   Bowie (Washington, D.C.)   Fee   100.0 % Built 2001   99.3 % 355,557   328,588   684,145   Macy's, Sears, Barnes & Noble, Bed Bath & Beyond
14.   Boynton Beach Mall   FL   Boynton Beach (W. Palm Beach)   Fee   100.0 % Built 1985   87.7 % 714,210   300,364   1,014,574   Macy's, Dillard's Men's & Home, Dillard's Women, JCPenney, Sears
15.   Brea Mall   CA   Brea (Orange County)   Fee   100.0 % Acquired 1998   99.6 % 874,802   443,789   1,318,591   Nordstrom, Macy's, JCPenney, Sears
16.   Broadway Square   TX   Tyler   Fee   100.0 % Acquired 1994   99.8 % 427,730   200,966   628,696   Dillard's, JCPenney, Sears
17.   Brunswick Square   NJ   East Brunswick (New York)   Fee   100.0 % Built 1973   98.6 % 467,626   299,792   767,418   Macy's, JCPenney, Barnes & Noble
18.   Burlington Mall   MA   Burlington (Boston)   Ground Lease (2048)   100.0 % Acquired 1998   96.8 % 642,411   432,201   1,074,612   Macy's, Lord & Taylor, Sears, Nordstrom (20)
19.   Cape Cod Mall   MA   Hyannis (Barnstable — Yarmouth)   Ground Leases (2009-2073) (7)   49.1 % (4) Acquired 1999   98.9 % 420,199   303,618   723,817   Macy's, Macy's, Sears, Best Buy, Marshalls, Barnes & Noble
20.   Castleton Square   IN   Indianapolis   Fee   100.0 % Built 1972   97.3 % 908,481   352,398   1,260,879   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, Borders Books & Music (6)
21.   Century III Mall   PA   West Mifflin (Pittsburgh)   Fee   100.0 % Built 1979   85.8 % 831,439   459,191 (18) 1,290,630   Macy's, Macy's Furniture Galleries, JCPenney, Sears, Dick's Sporting Goods, Steve & Barry's University Sportswear
22.   Charlottesville Fashion Square   VA   Charlottesville   Ground Lease (2076)   100.0 % Acquired 1997   100.0 % 381,153   190,533   571,686   Belk Women's & Children's, Belk Men's & Home, JCPenney, Sears
23.   Chautauqua Mall   NY   Lakewood (Jamestown)   Fee   100.0 % Built 1971   84.4 % 213,320   218,858   432,178   Sears, JCPenney, Bon Ton, Office Max

17


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

24.

 

Chesapeake Square

 

VA

 

Chesapeake (Norfolk — VA Beach)

 

Fee and Ground Lease (2062)

 

75.0

% (12)

Built 1989

 

93.0

%

534,760

 

271,842

 

806,602

 

Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Sears, Target
25.   Cielo Vista Mall   TX   El Paso   Fee and Ground Lease (2012) (7)   100.0 % Built 1974   96.7 % 793,716   443,825   1,237,541   Macy's, Dillard's Women's & Furniture, Dillard's Men's, Children's & Home, JCPenney, Sears
26.   Circle Centre   IN   Indianapolis   Property Lease (2098)   14.7 % (4) (2) Built 1995   87.0 % 350,000   435,963 (18) 785,963   Nordstrom, Carson Pirie Scott
27.   Coconut Point   FL   Estero   Fee   50.0 % (4) Built 2006   94.6 % 424,636   594,758   1,019,394   Dillard's, Barnes & Noble, Bed Bath & Beyond, Best Buy, DSW, Office Max, Old Navy, PetsMart, Pier 1 Imports, Ross Dress for Less, Cost Plus World Market, T.J. Maxx
28.   Coddingtown Mall   CA   Santa Rosa   Fee   50.0 % (4) Acquired 2005   77.2 % 547,090   309,812   856,902   Macy's, JCPenney, Gottschalk's, (8)
29.   College Mall   IN   Bloomington   Fee and Ground Lease (2048) (7)   100.0 % Built 1965   88.7 % 356,887   286,028   642,915   Macy's, Sears, Target, Dick's Sporting Goods, Bed Bath & Beyond, Pier One (6)
30.   Columbia Center   WA   Kennewick   Fee   100.0 % Acquired 1987   92.0 % 408,052   346,895   754,947   Macy's, Macy's Mens & Children, JCPenney, Sears, Toys 'R Us, Barnes & Noble
31.   Copley Place   MA   Boston   Fee   98.1 % Acquired 2002   98.0 % 150,847   1,080,822 (18) 1,231,669   Nieman Marcus, Barneys New York
32.   Coral Square   FL   Coral Springs (Miami — Ft. Lauderdale)   Fee   97.2 % Built 1984   96.9 % 648,144   296,802   944,946   Macy's Mens, Children & Home, Macy's Women, Dillard's, JCPenney, Sears
33.   Cordova Mall   FL   Pensacola   Fee   100.0 % Acquired 1998   90.4 % 395,875   463,085   858,960   Dillard's Men's, Dillard's Women's, Parisian (19), Best Buy, Bed, Bath & Beyond, Cost Plus World Market, Ross Dress for Less
34.   Cottonwood Mall   NM   Albuquerque   Fee   100.0 % Built 1996   96.9 % 631,556   409,278   1,040,834   Macy's, Dillard's, JCPenney, Sears, Mervyn's
35.   Crossroads Mall   NE   Omaha   Fee   100.0 % Acquired 1994   63.0 % 522,119   231,298   753,417   Dillard's, Sears, Target, Barnes & Noble, Old Navy
36.   Crystal Mall   CT   Waterford (New London — Norwich)   Fee   74.6 % (4) Acquired 1998   92.1 % 442,311   351,861   794,172   Macy's, JC Penney, Sears, Old Navy, (17)
37.   Crystal River Mall   FL   Crystal River   Fee   100.0 % Built 1990   76.5 % 302,495   121,844   424,339   JCPenney, Sears, Belk, Kmart
38.   Dadeland Mall   FL   Miami   Fee   50.0 % (4) Acquired 1997   96.9 % 1,132,072   335,524   1,467,596   Saks Fifth Avenue, Nordstrom, Macy's, Macy's Children & Home, JCPenney
39.   DeSoto Square   FL   Bradenton (Sarasota — Bradenton)   Fee   100.0 % Built 1973   96.9 % 435,467   244,499   679,966   Macy's, Dillard's, JCPenney, Sears
40.   Eastland Mall   IN   Evansville   Fee   50.0 % (4) Acquired 1998   94.8 % 489,144   375,307   864,451   Macy's, JCPenney, Bed Bath & Beyond, Marshalls, Dillard's (6)
41.   Edison Mall   FL   Fort Myers   Fee   100.0 % Acquired 1997   93.0 % 742,667   310,695   1,053,362   Dillard's, Macy's Mens, Children & Home, Macy's Women, JCPenney, Sears
42.   Emerald Square   MA   North Attleboro (Providence — Fall River)   Fee   49.1 % (4) Acquired 1999   94.2 % 647,372   375,125   1,022,497   Macy's, Macy's Mens & Home Store, JCPenney, Sears

18


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

43.

 

Empire Mall (1)

 

SD

 

Sioux Falls

 

Fee and Ground Lease (2033) (7)

 

50.0

% (4)

Acquired 1998

 

92.4

%

497,341

 

548,004

 

1,045,345

 

Macy's, Younkers, JCPenney, Sears, Gordmans, Old Navy
44.   Fashion Centre at Pentagon City, The   VA   Arlington (Washington, DC)   Fee   42.5 % (4) Built 1989   98.0 % 472,729   517,384 (18) 990,113   Nordstrom, Macy's
45.   Fashion Mall at Keystone   IN   Indianapolis   Ground Lease (2067)   100.0 % Acquired 1997   99.0 % 249,721   433,601 (18) 683,322   Saks Fifth Avenue, Parisian (16), Crate & Barrel, Nordstrom (20)
46.   Fashion Valley Mall   CA   San Diego   Fee   50.0 % (4) Acquired 2001   100.0 % 1,053,305   655,681   1,708,986   Saks Fifth Avenue, Neiman-Marcus, Bloomingdale's, Nordstrom, Macy's, JCPenney
47.   Firewheel Town Center   TX   Garland   Fee   100.0 % Built 2005   95.7 % 298,857   618,845 (18) 917,702   Dillard's, Macy's, Barnes & Noble, Circuit City, Linens 'n Things, Old Navy, Pier One, DSW, Cost Plus World Market
48.   Florida Mall, The   FL   Orlando   Fee   50.0 % (4) Built 1986   99.8 % 1,232,416   615,288   1,847,704   Saks Fifth Avenue, Nordstrom, Macy's, Dillard's, JCPenney, Sears, (8)
49.   Forest Mall   WI   Fond Du Lac   Fee   100.0 % Built 1973   93.4 % 327,260   174,031   501,291   JCPenney, Kohl's, Younkers, Sears
50.   Forum Shops at Caesars, The   NV   Las Vegas   Ground Lease (2050)   100.0 % Built 1992   99.4 %   635,939   635,939    
51.   Galleria, The   TX   Houston   Fee and Ground Lease (2029) (7)   31.5 % (4) Acquired 2002   93.9 % 1,164,982   1,185,561   2,350,543   Saks Fifth Avenue, Neiman Marcus, Nordstrom, Macy's (2 locations), Borders Books & Music, University Club
52.   Granite Run Mall   PA   Media (Philadelphia)   Fee   50.0 % (4) Acquired 1998   90.9 % 500,809   535,456   1,036,265   JCPenney, Sears, Boscov's
53.   Great Lakes Mall   OH   Mentor (Cleveland)   Fee   100.0 % Built 1961   90.0 % 879,300   378,525   1,257,825   Dillard's Men's, Dillard's Women's, Macy's, JCPenney, Sears
54.   Greendale Mall   MA   Worcester (Boston)   Fee and Ground Lease (2009) (7)   49.1 % (4) Acquired 1999   92.6 % 132,634   298,732 (18) 431,366   Marshalls, T.J. Maxx 'N More, Best Buy, DSW
55.   Greenwood Park Mall   IN   Greenwood (Indianapolis)   Fee   100.0 % Acquired 1979   99.0 % 754,928   408,820   1,163,748   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, Barnes & Noble (6)
56.   Gulf View Square   FL   Port Richey (Tampa — St. Pete)   Fee   100.0 % Built 1980   98.4 % 461,852   292,028   753,880   Macy's, Dillard's, JCPenney, Sears, Best Buy, Linens 'n Things
57.   Gwinnett Place   GA   Duluth (Atlanta)   Fee   50.0 % (4) Acquired 1998   89.5 % 843,609   434,254   1,277,863   Macy's, Parisian (19), JCPenney, Sears, (17)
58.   Haywood Mall   SC   Greenville   Fee and Ground Lease (2017) (7)   100.0 % Acquired 1998   98.3 % 902,400   328,159   1,230,559   Macy's, Dillard's, JCPenney, Sears, Belk
59.   Highland Mall (1)   TX   Austin   Fee and Ground Lease (2070)   50.0 % (4) Acquired 1998   86.2 % 732,000   359,126   1,091,126   Dillard's Women's & Home, Dillard's Men's & Children's, Macy's
60.   Independence Center   MO   Independence (Kansas City)   Fee   100.0 % Acquired 1994   98.6 % 499,284   526,154   1,025,438   Dillard's, Macy's, Sears
61.   Indian River Mall   FL   Vero Beach   Fee   50.0 % (4) Built 1996   94.9 % 445,552   302,881   748,433   Dillard's, Macy's, JCPenney, Sears
62.   Ingram Park Mall   TX   San Antonio   Fee   100.0 % Built 1979   93.9 % 750,888   375,484   1,126,372   Dillard's, Dillard's Home Store, Macy's, JCPenney, Sears, Bealls
63.   Irving Mall   TX   Irving (Dallas — Ft. Worth)   Fee   100.0 % Built 1971   98.1 % 637,415   406,712   1,044,127   Macy's, Dillard's, Sears, Circuit City, Burlington Coat Factory, (8)
64.   Jefferson Valley Mall   NY   Yorktown Heights (New York)   Fee   100.0 % Built 1983   96.3 % 310,095   278,290   588,385   Macy's, Sears

19


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

65.

 

King of Prussia Mall

 

PA

 

King of Prussia (Philadelphia)

 

Fee

 

12.4

% (4) (15)

Acquired 2003

 

96.4

%

1,545,812

 

1,065,157

(18)

2,610,969

 

Neiman Marcus, Bloomingdale's, Nordstrom, Lord & Taylor, Macy's (Plaza), Macy's (Court), JCPenney, Sears
66.   Knoxville Center   TN   Knoxville   Fee   100.0 % Built 1984   94.0 % 597,028   384,086   981,114   Dillard's, JCPenney, Belk, Sears, The Rush Fitness Center
67.   La Plaza Mall   TX   McAllen   Fee and Ground Lease (2040) (7)   100.0 % Built 1976   99.9 % 776,397   427,124   1,203,521   Macy's, Macy's Home Store, Dillard's, JCPenney, Sears, Bealls, Joe Brand
68.   Lafayette Square   IN   Indianapolis   Fee   100.0 % Built 1968   81.4 % 937,223   269,504   1,206,727   Macy's, Sears, Burlington Coat Factory, Steve & Barry's University Sportswear, (8)
69.   Laguna Hills Mall   CA   Laguna Hills (Orange County)   Fee   100.0 % Acquired 1997   88.6 % 536,500   329,260   865,760   Macy's, JCPenney, Sears
70.   Lake Square Mall   FL   Leesburg (Orlando)   Fee   50.0 % (4) Acquired 1998   85.3 % 296,037   264,953   560,990   JCPenney, Sears, Belk, Target, Best Buy (6)
71.   Lakeline Mall   TX   Austin   Fee   100.0 % Built 1995   97.3 % 745,179   355,783   1,100,962   Dillard's, Macy's, JCPenney, Sears
72.   Lehigh Valley Mall   PA   Whitehall (Allentown — Bethlehem)   Fee   37.6 % (4) (15) Acquired 2003   98.7 % 564,353   482,855 (18) 1,047,208   Macy's, Boscov's, JCPenney, Linens 'n Things, Barnes & Noble (6)
73.   Lenox Square   GA   Atlanta   Fee   100.0 % Acquired 1998   93.3 % 821,356   628,752   1,450,108   Neiman Marcus, Bloomingdale's, Macy's
74.   Liberty Tree Mall   MA   Danvers (Boston)   Fee   49.1 % (4) Acquired 1999   97.7 % 498,000   359,251   857,251   Marshalls, The Sports Authority, Target, Bed, Bath & Beyond, Kohl's, Super Stop & Shop, Best Buy, Staples, AC Moore, Old Navy, Pier 1 Imports, K&G Fashion Superstore
75.   Lima Mall   OH   Lima   Fee   100.0 % Built 1965   95.2 % 541,861   203,770   745,631   Macy's, JCPenney, Elder-Beerman, Sears
76.   Lincolnwood Town Center   IL   Lincolnwood (Chicago)   Fee   100.0 % Built 1990   94.0 % 220,830   201,110   421,940   Kohl's, Carson Pirie Scott
77.   Lindale Mall (1)   IA   Cedar Rapids   Fee   50.0 % (4) Acquired 1998   84.3 % 305,563   388,024   693,587   Von Maur, Sears, Younkers
78.   Livingston Mall   NJ   Livingston (New York)   Fee   100.0 % Acquired 1998   96.3 % 616,128   363,871   979,999   Macy's, Lord & Taylor, Sears, Steve & Barry's
79.   Longview Mall   TX   Longview   Fee   100.0 % Built 1978   87.1 % 402,843   209,472   612,315   Dillard's, JCPenney, Sears, Bealls, (17)
80.   Mall at Chestnut Hill   MA   Newton (Boston)   Lease (2039) (9)   47.2 % (4) Acquired 2002   97.0 % 297,253   180,109   477,362   Bloomingdale's, Bloomingdale's Home Furnishing and Men's Store
81.   Mall at Rockingham Park, The   NH   Salem (Boston)   Fee   24.6 % (4) Acquired 1999   97.5 % 638,111   381,676   1,019,787   Macy's, JCPenney, Sears, (8)
82.   Mall at The Source, The   NY   Westbury (New York)   Fee   25.5 % (4) (2) Built 1997   96.0 % 210,798   515,250   726,048   Fortunoff, Off 5th-Saks Fifth Avenue, Nordstrom Rack, Circuit City, David's Bridal, Steve & Barry's, Golf Galaxy
83.   Mall of Georgia   GA   Buford (Atlanta)   Fee   100.0 % Built 1999   91.8 % 1,069,590   716,341   1,785,931   Nordstrom, Dillard's, Macy's, JCPenney, Belk, Dick's Sporting Goods, Barnes & Noble, Haverty's Furniture, Bed Bath & Beyond
84.   Mall of New Hampshire   NH   Manchester (Boston)   Fee   49.1 % (4) Acquired 1999   97.9 % 444,889   362,807   807,696   Macy's, JCPenney, Sears, Best Buy, Old Navy, A.C. Moore
85.   Maplewood Mall   MN   Minneapolis   Fee   100.0 % Acquired 2002   92.0 % 588,822   341,972   930,794   Macy's, JCPenney, Sears, Kohl's, Barnes & Noble
86.   Markland Mall   IN   Kokomo   Ground Lease (2041)   100.0 % Built 1968   94.8 % 273,094   141,692   414,786   Sears, Target, (8)

20


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

87.

 

McCain Mall

 

AR

 

N. Little Rock

 

Fee and Ground Lease (2032) (10)

 

100.0

%

Built 1973

 

93.5

%

554,156

 

221,474

 

775,630

 

Dillard's, JCPenney, Sears, M.M. Cohn
88.   Melbourne Square   FL   Melbourne   Fee   100.0 % Built 1982   90.5 % 416,167   294,373   710,540   Macy's, Dillard's Men's, Children's & Home, Dillard's Women's, JCPenney, Dick's Sporting Goods, Circuit City
89.   Menlo Park Mall   NJ   Edison (New York)   Fee   100.0 % Acquired 1997   95.4 % 527,591   756,358 (18) 1,283,949   Nordstrom, Macy's, Barnes & Noble, Steve & Barry's
90.   Mesa Mall (1)   CO   Grand Junction   Fee   50.0 % (4) Acquired 1998   89.2 % 441,208   443,015   884,223   Sears, Herberger's, JCPenney, Target, Mervyn's
91.   Miami International Mall   FL   South Miami   Fee   47.8 % (4) Built 1982   97.5 % 778,784   294,825   1,073,609   Macy's Mens & Home, Macy's Women & Children, Dillard's, JCPenney, Sears
92.   Midland Park Mall   TX   Midland   Fee   100.0 % Built 1980   92.3 % 339,113   279,430   618,543   Dillard's, Dillard's Mens & Juniors, JCPenney, Sears, Bealls, Ross Dress for Less
93.   Miller Hill Mall   MN   Duluth   Ground Lease (2008)   100.0 % Built 1973   97.4 % 429,508   379,884   809,392   JCPenney, Sears, Younkers, Barnes & Noble, Old Navy, DSW
94.   Montgomery Mall   PA   Montgomeryville (Philadelphia)   Fee   53.5 % (15) Acquired 2003   90.9 % 684,855   434,306   1,119,161   Macy's, JCPenney, Sears, Boscov's
95.   Muncie Mall   IN   Muncie   Fee   100.0 % Built 1970   90.5 % 435,756   204,894   640,650   Macy's, JCPenney, Sears, Elder Beerman
96.   Nanuet Mall   NY   Nanuet (New York)   Fee   100.0 % Acquired 1998   74.7 % 583,711   331,764   915,475   Macy's, Boscov's, Sears
97.   North East Mall   TX   Hurst (Dallas — Ft. Worth)   Fee   100.0 % Built 1971   95.2 % 1,194,589   452,659   1,647,248   Nordstrom, Dillard's, Macy's, JCPenney, Sears, Dick's Sporting Goods (6)
98.   Northfield Square Mall   IL   Bourbonnais (Chicago)   Fee   31.6 % (12) Built 1990   79.0 % 310,994   246,672   557,666   Carson Pirie Scott Women's, Carson Pirie Scott Men's, Children's & Home, JCPenney, Sears
99.   Northgate Mall   WA   Seattle   Fee   100.0 % Acquired 1987   98.2 % 688,391   291,003   979,394   Nordstrom, Macy's, JCPenney, Toys 'R Us, Barnes & Noble (6), Bed Bath & Beyond (6), DSW (6)
100.   Northlake Mall   GA   Atlanta   Fee   100.0 % Acquired 1998   96.4 % 665,745   296,626   962,371   Macy's, Parisian (19), JCPenney, Sears
101.   NorthPark Mall   IA   Davenport   Fee   50.0 % (4) Acquired 1998   84.7 % 650,456   423,484   1,073,940   Dillard's, Von Maur, Younkers, JCPenney, Sears
102.   Northshore Mall   MA   Peabody (Boston)   Fee   49.1 % (4) Acquired 1999   91.3 % 677,433   688,876   1,366,309   Macy's, JCPenney, Sears, Filene's Basement, Nordstrom (20), Macy's Home (6)
103.   Northwoods Mall   IL   Peoria   Fee   100.0 % Acquired 1983   93.8 % 472,969   221,068   694,037   Macy's, JCPenney, Sears
104.   Oak Court Mall   TN   Memphis   Fee   100.0 % Acquired 1997   91.3 % 532,817   314,264 (18) 847,081   Dillard's, Dillard's Mens, Macy's
105.   Ocean County Mall   NJ   Toms River (New York)   Fee   100.0 % Acquired 1998   93.9 % 616,443   274,856   891,299   Macy's, Boscov's, JCPenney, Sears
106.   Orange Park Mall   FL   Orange Park (Jacksonville)   Fee   100.0 % Acquired 1994   94.8 % 528,551   381,658   910,209   Dillard's, JCPenney, Sears, Belk, Dick's Sporting Goods (6)
107.   Orland Square   IL   Orland Park (Chicago)   Fee   100.0 % Acquired 1997   98.2 % 773,295   437,045   1,210,340   Macy's, Carson Pirie Scott, JCPenney, Sears
108.   Oxford Valley Mall   PA   Langhorne (Philadelphia)   Fee   63.2 % (15) Acquired 2003   94.0 % 762,558   558,957 (18) 1,321,515   Macy's, JCPenney, Sears, Boscov's
109.   Paddock Mall   FL   Ocala   Fee   100.0 % Built 1980   93.7 % 387,378   167,723   555,101   Macy's, JCPenney, Sears, Belk
110.   Palm Beach Mall   FL   West Palm Beach   Fee   100.0 % Built 1967   92.2 % 749,288   335,086   1,084,374   Dillard's, Macy's, JCPenney, Sears, Borders Books & Music, DSW
111.   Penn Square Mall   OK   Oklahoma City   Ground Lease (2060)   94.5 % Acquired 2002   99.4 % 588,137   462,542   1,050,679   Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney
112.   Pheasant Lane Mall   NH   Nashua (Boston)   (14)   (14)   Acquired 2002   96.7 % 675,759   313,615   989,374   Macy's, JCPenney, Sears, Target

21


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

113.

 

Phipps Plaza

 

GA

 

Atlanta

 

Fee

 

100.0

%

Acquired 1998

 

98.9

%

472,385

 

347,202

 

819,587

 

Saks Fifth Avenue, Nordstrom, Parisian (19)
114.   Plaza Carolina   PR   Carolina (San Juan)   Fee   100.0 % Acquired 2004   97.1 % 504,796   609,476 (18) 1,114,272   JCPenney, Sears
115.   Port Charlotte Town Center   FL   Port Charlotte (Punta Gorda)   Fee   80.0 % (12) Built 1989   87.6 % 458,251   323,692   781,943   Dillard's, Macy's, JCPenney, Bealls, Sears, DSW
116.   Prien Lake Mall   LA   Lake Charles   Fee and Ground Lease (2025) (7)   100.0 % Built 1972   90.2 % 644,124   177,626   821,750   Dillard's, Macy's, JCPenney, Sears
117.   Quaker Bridge Mall   NJ   Lawrenceville   Fee   38.0 % (4) (15) Acquired 2003   97.5 % 686,760   412,636   1,099,396   Macy's, Lord & Taylor, JCPenney, Sears, Old Navy
118.   Raleigh Springs Mall   TN   Memphis   Fee and Ground Lease (2018) (7)   100.0 % Built 1971   66.0 % 691,230   226,100   917,330   Sears, (8), (17)
119.   Richardson Square Mall   TX   Richardson (Dallas — Ft. Worth)   Fee   100.0 % Built 1977   28.6 % 460,055   284,240   744,295   Dillard's, Sears, Super Target, Ross Dress for Less
120.   Richmond Town Square   OH   Richmond Heights (Cleveland)   Fee   100.0 % Built 1966   98.9 % 685,251   331,663   1,016,914   Macy's, JCPenney, Sears, Barnes & Noble, Steve & Barry's
121.   River Oaks Center   IL   Calumet City (Chicago)   Fee   100.0 % Acquired 1997   88.5 % 834,588   533,914 (18) 1,368,502   Macy's, Carson Pirie Scott, JCPenney, Sears
122.   Rockaway Townsquare   NJ   Rockaway (New York)   Fee   100.0 % Acquired 1998   97.5 % 786,626   462,038   1,248,664   Macy's, Lord & Taylor, JCPenney, Sears
123.   Rolling Oaks Mall   TX   San Antonio   Fee   100.0 % Built 1988   83.5 % 596,308   288,109   884,417   Dillard's, Macy's, JC Penney, Sears
124.   Roosevelt Field   NY   Garden City (New York)   Fee and Ground Lease (2090) (7)   100.0 % Acquired 1998   94.9 % 1,430,425   778,656 (18) 2,209,081   Bloomingdale's, Bloomingdale's Furniture Gallery, Nordstrom, Macy's, JCPenney, Dick's Sporting Goods
125.   Ross Park Mall   PA   Pittsburgh   Fee   100.0 % Built 1986   98.5 % 622,215   406,902   1,029,117   Macy's, JCPenney, Sears, Nordstrom (20)
126.   Rushmore Mall (1)   SD   Rapid City   Fee   50.0 % (4) Acquired 1998   88.6 % 470,660   362,653   833,313   JCPenney, Herberger's, Sears, Hobby Lobby, Target
127.   Santa Rosa Plaza   CA   Santa Rosa   Fee   100.0 % Acquired 1998   96.9 % 428,258   270,565   698,823   Macy's, Mervyn's, Sears
128.   Seminole Towne Center   FL   Sanford (Orlando)   Fee   45.0 % (4) (2) Built 1995   94.1 % 768,798   367,781   1,136,579   Macy's, Dillard's, Belk, JCPenney, Sears
129.   Shops at Mission Viejo, The   CA   Mission Viejo (Orange County)   Fee   100.0 % Built 1979   100.0 % 677,215   472,585   1,149,800   Saks Fifth Avenue, Nordstrom, Macy's (2 locations)
130.   Shops at Sunset Place, The   FL   Miami   Fee   37.5 % (4) (2) Built 1999   96.0 %   510,056   510,056   NikeTown, Barnes & Noble, GameWorks, Virgin Megastore, Z Gallerie, LA Fitness
131.   Smith Haven Mall   NY   Lake Grove (New York)   Fee   25.0 % (4) Acquired 1995   95.9 % 666,283   416,035   1,082,318   Macy's, Macy's Furniture, JCPenney, Sears, Dick's Sporting Goods (6), Barnes & Noble (6)
132.   Solomon Pond Mall   MA   Marlborough (Boston)   Fee   49.1 % (4) Acquired 1999   93.0 % 538,843   371,326   910,169   Macy's, JCPenney, Sears, Linens 'n Things
133.   South Hills Village   PA   Pittsburgh   Fee   100.0 % Acquired 1997   97.6 % 655,987   485,604   1,141,591   Macy's, Sears, Boscov's, Barnes & Noble
134.   South Shore Plaza   MA   Braintree (Boston)   Fee   100.0 % Acquired 1998   96.3 % 547,287   613,809   1,161,096   Macy's, Lord & Taylor, Sears, Nordstrom (20)
135.   Southern Hills Mall (1)   IA   Sioux City   Fee   50.0 % (4) Acquired 1998   87.2 % 372,937   431,916   804,853   Younkers, JCPenney, Sears, Sheel's Sporting Goods, Barnes & Noble
136.   Southern Park Mall   OH   Boardman (Youngstown)   Fee   100.0 % Built 1970   94.9 % 811,858   383,660   1,195,518   Macy's, Dillard's, JCPenney, Sears
137.   SouthPark Mall   IL   Moline (Davenport — Moline)   Fee   50.0 % (4) Acquired 1998   87.7 % 578,056   447,804   1,025,860   Dillard's, Von Maur, Younkers, JCPenney, Sears, Old Navy
138.   SouthPark   NC   Charlotte   Fee & Ground Lease (2040) (11)   100.0 % Acquired 2002   99.8 % 1,044,742   530,839   1,575,581   Neiman Marcus, Nordstrom, Macy's, Dillard's, Belk, Dick's Sporting Goods, Crate & Barrel

22


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

139.

 

SouthRidge Mall (1)

 

IA

 

Des Moines

 

Fee

 

50.0

% (4)

Acquired 1998

 

76.6

%

388,752

 

523,443

 

912,195

 

JCPenney, Younkers, Sears, Target, (8)
140.   Springfield Mall (1)   PA   Springfield (Philadelphia)   Fee   38.0 % (4) (15) Acquired 2005   87.5 % 367,176   221,489   588,665   Macy's, (8)
141.   Square One Mall   MA   Saugus (Boston)   Fee   49.1 % (4) Acquired 1999   94.4 % 608,601   324,669   933,270   Macy's, Sears, Best Buy, T.J. Maxx N More, Best Buy, Old Navy, Dick's Sporting Goods (6)
142.   St. Charles Towne Center   MD   Waldorf (Washington, D.C.)   Fee   100.0 % Built 1990   96.7 % 631,602   350,574   982,176   Macy's, Macy's Home Store, JCPenney, Sears, Kohl's, Dick Sporting Goods
143.   St. Johns Town Center   FL   Jacksonville   Fee   50.0 % (4) Built 2005   100.0 % 653,291   379,212   1,032,503   Dillard's, Target, Ashley Furniture Home Store, Barnes & Noble, Dick's Clothing & Sporting Goods, Ross Dress for Less, Staples, DSW, JoAnn Fabrics, PetsMart, Old Navy
144.   Stanford Shopping Center   CA   Palo Alto (San Francisco)   Ground Lease (2054)   100.0 % Acquried 2003   97.7 % 849,153   528,750 (18) 1,377,903   Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, Macy's Mens Store
145.   Summit Mall   OH   Akron   Fee   100.0 % Built 1965   93.0 % 432,936   330,976   763,912   Dillard's Women's & Children's, Dillard's Men's & Home, Macy's
146.   Sunland Park Mall   TX   El Paso   Fee   100.0 % Built 1988   94.4 % 575,837   342,234   918,071   Macy's, Dillard's Women's & Children's, Dillard's Men's & Home, Mervyn's, Sears
147.   Tacoma Mall   WA   Tacoma   Fee   100.0 % Acquired 1987   98.9 % 924,045   407,010   1,331,055   Nordstrom, Macy's, JCPenney, Sears, Mervyn's
148.   Tippecanoe Mall   IN   Lafayette   Fee   100.0 % Built 1973   89.8 % 537,790   322,694   860,484   Macy's, JCPenney, Sears, Kohl's, Dick's Sporting Goods, H.H. Gregg
149.   Town Center at Aurora   CO   Aurora (Denver)   Fee   100.0 % Acquired 1998   85.2 % 676,637   401,903   1,078,540   Macy's, Dillard's, JCPenney, Sears
150.   Town Center at Boca Raton   FL   Boca Raton (W. Palm Beach)   Fee   100.0 % Acquired 1998   99.3 % 1,085,312   493,628   1,578,940   Saks Fifth Avenue, Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, Sears, Crate & Barrel (6)
151.   Town Center at Cobb   GA   Kennesaw (Atlanta)   Fee   50.0 % (4) Acquired 1998   96.1 % 866,381   406,050   1,272,431   Macy's, Macy's Home & Furniture, Parisian (19), JCPenney, Sears
152.   Towne East Square   KS   Wichita   Fee   100.0 % Built 1975   88.0 % 779,490   358,838   1,138,328   Dillard's, Von Maur, JCPenney, Sears
153.   Towne West Square   KS   Wichita   Fee   100.0 % Built 1980   83.1 % 619,269   332,287   951,556   Dillard's Women's & Home, Dillard's Men's & Children, JCPenney, Sears, Dick's Sporting Goods
154.   Treasure Coast Square   FL   Jensen Beach (Ft. Pierce)   Fee   100.0 % Built 1987   92.8 % 511,372   350,369   861,741   Macy's, Dillard's, JCPenney, Sears, Borders Books & Music
155.   Tyrone Square   FL   St. Petersburg (Tampa — St. Pete)   Fee   100.0 % Built 1972   96.2 % 748,269   372,971   1,121,240   Macy's, Dillard's, JCPenney, Sears, Borders Books & Music
156.   University Mall   AR   Little Rock   Ground Lease (2026)   100.0 % Built 1967   62.0 % 364,992   153,534   518,526   JCPenney, M.M. Cohn, (8)
157.   University Mall   FL   Pensacola   Fee   100.0 % Acquired 1994   85.0 % 478,449   230,952   709,401   JCPenney, Sears, Belk
158.   University Park Mall   IN   Mishawaka (South Bend)   Fee   60.0 % Built 1979   95.3 % 499,876   319,620   819,496   Macy's, JCPenney, Sears
159.   Upper Valley Mall   OH   Springfield (Dayton — Springfield)   Fee   100.0 % Built 1971   77.7 % 479,418   262,978   742,396   Macy's, JCPenney, Sears, Elder-Beerman
160.   Valle Vista Mall   TX   Harlingen   Fee   100.0 % Built 1983   82.5 % 389,781   265,886   655,667   Dillard's, JCPenney, Mervyn's, Sears, Marshalls, Steve & Barry's
161.   Valley Mall   VA   Harrisonburg   Fee   50.0 % (4) Acquired 1998   94.6 % 315,078   190,648   505,726   JCPenney, Belk, Target, Old Navy, (8)

23


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

162.

 

Virginia Center Commons

 

VA

 

Glen Allen (Richmond)

 

Fee

 

100.0

%

Built 1991

 

96.6

%

506,639

 

280,817

 

787,456

 

Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Sears
163.   Walt Whitman Mall   NY   Huntington Station (New York)   Ground Lease (2012)   100.0 % Acquired 1998   90.6 % 742,214   294,140   1,036,354   Saks Fifth Avenue, Bloomingdale's, Lord & Taylor, Macy's
164.   Washington Square   IN   Indianapolis   Fee   100.0 % Built 1974   79.2 % 616,109   348,781   964,890   Macy's, Sears, Target, Dick's Sporting Goods, Burlington Coat Factory, Steve & Barry's
165.   West Ridge Mall   KS   Topeka   Fee   100.0 % Built 1988   86.4 % 716,811   281,646   998,457   Macy's, Dillard's, JCPenney, Sears, Burlington Coat Factory (6)
166.   West Town Mall   TN   Knoxville   Ground Lease (2042)   50.0 % (4) Acquired 1991   97.3 % 878,311   451,465   1,329,776   Parisian (19), Dillard's, JCPenney, Belk, Sears
167.   Westchester, The   NY   White Plains (New York)   Fee   40.0 % (4) Acquired 1997   97.0 % 349,393   478,254 (18) 827,647   Neiman Marcus, Nordstrom
168.   Westminster Mall   CA   Westminster (Orange County)   Fee   100.0 % Acquired 1998   94.1 % 716,939   496,376   1,213,315   Macy's, JCPenney, Sears, Target (6)
169.   White Oaks Mall   IL   Springfield   Fee   77.5 % Built 1977   94.0 % 556,831   379,688   936,519   Macy's, Bergner's, Sears, Linens'n Things, Cost Plus World Market, Dick's Sporting Goods
170.   Wolfchase Galleria   TN   Memphis   Fee   94.5 % Acquired 2002   99.3 % 761,648   505,461   1,267,109   Macy's, Dillard's, JCPenney, Sears
171.   Woodland Hills Mall   OK   Tulsa   Fee   94.5 % Acquired 2002   98.8 % 706,159   382,115   1,088,274   Macy's, Dillard's, JCPenney, Sears
                               
 
 
   
        Total Regional Mall GLA                   100,739,129   65,637,622   166,376,751    
                               
 
 
   

 

 

PREMIUM OUTLET CENTERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Albertville Premium Outlets

 

MN

 

Albertville (Minneapolis/St. Paul)

 

Fee

 

100.0

%

Acquired 2004

 

98.1

%


 

429,534

 

429,534

 

Banana Republic, Calvin Klein, Kenneth Cole, Liz Claiborne, Gap Outlet, Old Navy, Polo Ralph Lauren, Tommy Hilfiger, Coach, Nike
2.   Allen Premium Outlets   TX   Allen (Dallas)   Fee   100.0 % Acquired 2004   98.9 %   412,792   412,792   Brooks Brothers, Cole-Haan, Kenneth Cole, Liz Claiborne, Polo Ralph Lauren, Tommy Hilfiger, Ann Taylor, Nike
3.   Aurora Farms Premium Outlets   OH   Aurora (Cleveland)   Fee   100.0 % Acquired 2004   95.4 %   300,181   300,181   Ann Taylor, Brooks Brothers, Calvin Klein, Gap Outlet, Liz Claiborne, Nautica, Off 5th-Saks Fifth Avenue Outlet, Polo Ralph Lauren, Tommy Hilfiger, Coach
4.   Camarillo Premium Outlets   CA   Camarillo (Los Angeles)   Fee   100.0 % Acquired 2004   100.0 %   454,089   454,089   Ann Taylor, Banana Republic, Barneys New York, Coach, Hugo Boss, Polo Ralph Lauren, St. John, Diesel, Kenneth Cole, Nike, Sony
5.   Carlsbad Premium Outlets   CA   Carlsbad   Fee   100.0 % Acquired 2004   100.0 %   287,936   287,936   Adidas, Banana Republic, Barneys New York, BCBG Max Azria, Calvin Klein, Coach, Gap Outlet, Guess, Kenneth Cole, Polo Ralph Lauren
6.   Carolina Premium Outlets   NC   Smithfield (Raleigh — Durham — Chapel Hill)   Ground Lease (2029)   100.0 % Acquired 2004   100.0 %   439,445   439,445   Banana Republic, Brooks Brothers, Gap Outlet, Liz Claiborne, Nike, Polo Ralph Lauren, Timberland, Tommy Hilfiger, Coach
7.   Chicago Premium Outlets   IL   Aurora (Chicago)   Fee   100.0 % Built 2004   100.0 %   437,800   437,800   Ann Taylor, Banana Republic, Calvin Klein, Coach, Diesel, Dooney & Bourke, Elie Tahari, Gap Outlet, Giorgio Armani, Max Mara, Polo Ralph Lauren, Salvatore Ferragamo

24


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

8.

 

Clinton Crossing Premium Outlets

 

CT

 

Clinton (Hartford)

 

Fee

 

100.0

%

Acquired 2004

 

100.0

%


 

276,163

 

276,163

 

Barneys New York, Calvin Klein, Coach, Dooney & Bourke, Gap Outlet, Kenneth Cole, Liz Claiborne, Nike, Polo Ralph Lauren
9.   Columbia Gorge Premium Outlets   OR   Troutdale (Portland — Vancouver)   Fee   100.0 % Acquired 2004   99.2 %   163,815   163,815   Adidas, Carter's, Gap Outlet, Samsonite, Van Heusen, Liz Claiborne
10.   Desert Hills Premium Outlets   CA   Cabazon (Palm Springs — Los Angeles)   Fee   100.0 % Acquired 2004   100.0 %   498,837   498,837   Burberry, Coach, Giorgio Armani, Gucci, MaxMara, Polo Ralph Lauren, Salvatore Ferragamo, Versace, Yves Saint Laurent Rive Gauche, Zegna
11.   Edinburgh Premium Outlets   IN   Edinburgh (Indianapolis)   Fee   100.0 % Acquired 2004   100.0 %   377,717   377,717   Banana Republic, Coach, Gap Outlet, Nautica, Nike, Polo Ralph Lauren, Tommy Hilfiger, Calvin Klein, J. Crew
12.   Folsom Premium Outlets   CA   Folsom (Sacramento)   Fee   100.0 % Acquired 2004   100.0 %   299,351   299,351   Brooks Brothers, Gap Outlet, Guess, Kenneth Cole, Liz Claiborne, Nautica, Nike, Nine West, Off 5th-Saks Fifth Avenue
13.   Gilroy Premium Outlets   CA   Gilroy (San Jose)   Fee   100.0 % Acquired 2004   100.0 %   577,305   577,305   Banana Republic, Brooks Brothers, Calvin Klein, Coach, J. Crew, Hugo Boss, Nike, Polo Ralph Lauren, Timberland, Tommy Hilfiger
14.   Jackson Premium Outlets   NJ   Jackson   Fee   100.0 % Acquired 2004   100.0 %   285,775   285,775   Calvin Klein, Gap Outlet, Nike, Polo Ralph Lauren, Banana Republic, J. Crew, Liz Claiborne
15.   Johnson Creek Premium Outlets   WI   Johnson Creek   Fee   100.0 % Acquired 2004   96.7 %   277,585   277,585   Calvin Klein, Gap Outlet, Lands' End, Nike, Old Navy Outlet, Polo Ralph Lauren, Tommy Hilfiger, Adidas, Banana Republic
16.   Kittery Premium Outlets   ME   Kittery (Boston)   Ground Lease (2009)   100.0 % Acquired 2004   91.5 %   150,491   150,491   Ann Klein, Banana Republic, Gap Outlet, Coach, J. Crew, Polo Ralph Lauren, Reebok
17.   Las Vegas Premium Outlets   NV   Las Vegas   Fee   100.0 % Built 2003   100.0 %   434,978   434,978   Ann Taylor, A/X Armani Exchange, Banana Republic, Calvin Klein, Coach, Dolce & Gabbana, Elie Tahari, Polo Ralph Lauren
18.   Las Vegas Outlet Center   NV   Las Vegas   Fee   100.0 % Acquired 2004   100.0 %   477,002   477,002   Liz Claiborne, Nike, Reebok, Tommy Hilfiger, VF Outlet, Adidas, Calvin Klein
19.   Leesburg Corner Premium Outlets   VA   Leesburg (Washington DC)   Fee   100.0 % Acquired 2004   100.0 %   463,288   463,288   Barneys New York, Kenneth Cole, Liz Claiborne, Nike, Polo Ralph Lauren, Williams-Sonoma, Ann Taylor, Banana Republic, Coach, Restoration Hardware
20.   Liberty Village Premium Outlets   NJ   Flemington (New York — Philadelphia)   Fee   100.0 % Acquired 2004   97.8 %   173,067   173,067   Calvin Klein, Ellen Tracy, Jones New York, L.L. Bean, Polo Ralph Lauren, Tommy Hilfiger, Timberland, Waterford Wedgwood
21.   Lighthouse Place Premium Outlets   IN   Michigan City (Chicago)   Fee   100.0 % Acquired 2004   100.0 %   456,466   456,466   Burberry, Coach, Gap Outlet, Liz Claiborne, Polo Ralph Lauren, Tommy Hilfiger, Ann Taylor, Nike
22.   Napa Premium Outlets   CA   Napa (Napa Valley)   Fee   100.0 % Acquired 2004   100.0 %   179,348   179,348   Banana Republic, Barneys New York, Calvin Klein, J. Crew, Kenneth Cole, Nautica, Tommy Hilfiger, TSE, Coach

25


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

23.

 

North Georgia Premium Outlets

 

GA

 

Dawsonville (Atlanta)

 

Fee

 

100.0

%

Acquired 2004

 

100.0

%


 

539,757

 

539,757

 

Calvin Klein, Coach, Hugo Boss, Liz Claiborne, Polo Ralph Lauren, Tommy Hilfiger, Williams-Sonoma, J. Crew, Nike, Restoration Hardware
24.   Orlando Premium Outlets   FL   Orlando   Fee   100.0 % Acquired 2004   100.0 %   435,695   435,695   Barneys New York, Burberry, Coach, Fendi, Giorgio Armani, Hugo Boss, MaxMara, Nike, Polo Ralph Lauren, Dior, LaCoste, Salvatore Ferragamo
25.   Osage Beach Premium Outlets   MO   Osage Beach   Fee   100.0 % Acquired 2004   99.0 %   391,381   391,381   Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Liz Claiborne, Polo Ralph Lauren, Tommy Hilfiger
26.   Petaluma Village Premium Outlets   CA   Petaluma (San Francisco)   Fee   100.0 % Acquired 2004   99.6 %   195,837   195,837   Brooks Brothers, Coach, Gap Outlet, Liz Claiborne, Off 5th-Saks Fifth Avenue, Puma
27.   Rio Grande Valley Premium Outlets   TX   Mercedes   Fee   100.0 % Built 2006   95.2 %     403,207   403,207   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Burberry, Calvin Klein, Coach, Gap Outlet, Guess, Nike, Sony
28.   Round Rock Premium Outlets   TX   Round Rock (Austin)   Fee   100.0 % Built 2006   99.2 %     431,621   431,621   Adidas, Ann Taylor, Banana Republic, Burberry, Calvin Klein, Coach, Gap Outlet, Michael Kors, Nike, Polo Ralph Lauren, Theory
29.   Seattle Premium Outlets   WA   Seattle   Ground Lease (2035)   100.0 % Built 2005   100.0 %   402,668   402,668   Banana Republic, Burberry, Calvin Klein, Nike, Polo Ralph Lauren, Liz Claiborne, Adidas, Adrienne Vittadini, Restoration Hardware
30.   St. Augustine Premium Outlets   FL   St. Augustine (Jacksonsville)   Fee   100.0 % Acquired 2004   99.0 %   328,489   328,489   Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Movado, Nike, Polo Ralph Lauren, Reebok, Tommy Bahama
31.   The Crossings Premium Outlets   PA   Tannersville   Fee and Ground Lease (2009) (7)   100.0 % Acquired 2004   100.0 %   411,774   411,774   Ann Taylor, Coach, Liz Claiborne, Polo Ralph Lauren, Reebok, Tommy Hilfiger, Banana Republic, Calvin Klein, Burberry
32.   Vacaville Premium Outlets   CA   Vacaville   Fee   100.0 % Acquired 2004   100.0 %   444,252   444,252   Ann Taylor, Banana Republic, Burberry, Calvin Klein, Coach, Nike, Polo Ralph Lauren, Restoration Hardware
33.   Waikele Premium Outlets   HI   Waipahu (Honolulu)   Fee   100.0 % Acquired 2004   100.0 %   209,846   209,846   A -- X Armani Exchange, Banana Republic, Barneys New York, Calvin Klein, Coach, Guess, Kenneth Cole, MaxMara, Polo Ralph Lauren
34.   Waterloo Premium Outlets   NY   Waterloo   Fee   100.0 % Acquired 2004   98.3 %   417,577   417,577   Brooks Brothers, Calvin Klein, Coach, Gap Outlet, J. Crew, Liz Claiborne, Polo Ralph Lauren, Banana Republic
35.   Woodbury Common Premium Outlets   NY   Central Valley (New York City)   Fee   100.0 % Acquired 2004   100.0 %   844,553   844,553   Banana Republic, Brooks Brothers, Chanel, Dior, Coach, Giorgio Armani, Gucci, Neiman Marcus Last Call, Polo Ralph Lauren, Frette
36.   Wrentham Village Premium Outlets   MA   Wrentham (Boston)   Fee   100.0 % Acquired 2004   100.0 %   615,713   615,713   Barneys New York, Burberry, Coach, Hugo Boss, Kenneth Cole, Lacoste, Nike, Polo Ralph Lauren, Salvatore Ferragmo, Sony, Williams Sonoma
                               
 
 
   
        Total Premium Outlet Center GLA                     13,925,335   13,925,335    
                               
 
 
   

26


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    COMMUNITY/LIFESTYLE CENTERS                                

1.

 

Arboretum at Great Hills

 

TX

 

Austin

 

Fee

 

100.0

%

Acquired 1998

 

93.6

%

35,773

 

167,628

 

203,401

 

Barnes & Noble, Pottery Barn
2.   Bloomingdale Court   IL   Bloomingdale   Fee   100.0 % Built 1987   98.3 % 467,513   162,846   630,359   Best Buy, T.J. Maxx N More, Office Max, Old Navy, Linens 'n Things, Wal-Mart, Circuit City, Dick's Sporting Goods, Jo-Ann Fabrics
3.   Boardman Plaza   OH   Youngstown   Fee   100.0 % Built 1951   73.2 % 365,507   240,730   606,237   Hobby Lobby, Alltel, Linens 'n Things, Burlington Coat Factory, Giant Eagle, (8)
4.   Brightwood Plaza   IN   Indianapolis   Fee   100.0 % Built 1965   100.0 %   38,493   38,493   Safeway
5.   Celina Plaza   TX   El Paso   Fee and Ground Lease (2012) (11)   100.0 % Built 1978   100.0 %   8,695   8,695    
6.   Charles Towne Square   SC   Charleston   Fee   100.0 % Built 1976   100.0 % 71,794     71,794    
7.   Chesapeake Center   VA   Chesapeake   Fee   100.0 % Built 1989   70.4 % 213,651   92,284   305,935   K-Mart, Movies 10, Petsmart, Michaels, Value City Furniture (6)
8.   Clay Terrace   IN   Carmel (Indianapolis)   Fee   50.0 % (4) (18) Built 2004   90.0 % 161,281   336,375   497,656   Dick's Sporting Goods, Wild Oats Natural Marketplace, DSW, Circuit City Superstore
9.   Cobblestone Court   NY   Victor   Fee and Ground Lease (2038) (7)   35.0 % (4) (13) Built 1993   99.4 % 206,680   58,781   265,461   Dick's Sporting Goods, Kmart, Office Max
10.   Countryside Plaza   IL   Countryside   Fee   100.0 % Built 1977   82.1 % 308,489   95,267   403,756   Best Buy, Home Depot, PetsMart, Jo-Ann Fabrics, Office Depot, Value City Furniture, (8)
11.   Crystal Court   IL   Crystal Lake   Fee   35.0 % (4) (13) Built 1989   78.4 % 201,993   76,977   278,970   Wal-Mart, Garden Fresh (6)
12.   Dare Centre   NC   Kill Devil Hills   Ground Lease (2058)   100.0 % Acquired 2004   98.7 % 127,172   41,391   168,563   Belk, Food Lion
13.   DeKalb Plaza   PA   King of Prussia   Fee   50.3 % (15) Acquired 2003   81.9 % 81,368   20,374   101,742   Lane Home Furnishings, ACME Grocery
14.   Eastland Convenience Center   IN   Evansville   Ground Lease (2075)   50.0 % (4) Acquired 1998   96.1 % 126,699   48,940   175,639   Marshalls, Toys 'R Us, Bed Bath & Beyond
15.   Eastland Plaza   OK   Tulsa   Fee   100.0 % Built 1986   70.9 % 152,451   33,623   186,074   Marshalls, Target, Toys 'R Us
16.   Empire East (1)   SD   Sioux Falls   Fee   50.0 % (4) Acquired 1998   98.1 % 248,181   49,097   297,278   Kohl's, Target, Bed Bath & Beyond
17.   Fairfax Court   VA   Fairfax   Fee   26.3 % (4) (13) Built 1992   100.0 % 169,043   80,615   249,658   Burlington Coat Factory, Circuit City Superstore, Offenbacher's
18.   Forest Plaza   IL   Rockford   Fee   100.0 % Built 1985   84.5 % 324,794   100,584   425,378   Kohl's, Marshalls, Michael's, Factory Card Outlet, Office Max, T.J. Maxx, Bed Bath & Beyond, Petco, Circuit City (6), Babies 'R Us (6)
19.   Gaitway Plaza   FL   Ocala   Fee   23.3 % (4) (13) Built 1989   99.1 % 123,027   85,713   208,740   Books-A-Million, Office Depot, T.J. Maxx, Ross Dress for Less, Bed Bath & Beyond
20.   Gateway Shopping Centers   TX   Austin   Fee   95.0 % 2004   99.4 % 329,576   182,790   512,366   Star Furniture, Best Buy, Linens 'n Things, Recreational Equipment, Inc., Whole Foods, Crate & Barrel, CompUSA, The Container Store, Old Navy
21.   Great Lakes Plaza   OH   Mentor (Cleveland)   Fee   100.0 % Built 1976   100.0 % 142,229   21,875   164,104   Circuit City, Michael's, Best Buy, Cost Plus World Market, Linens 'n Things
22.   Greenwood Plus   IN   Greenwood   Fee   100.0 % Built 1979   100.0 % 134,141   21,178   155,319   Best Buy, Kohl's
23.   Griffith Park Plaza   IN   Griffith   Fee   100.0 % Built 1979   73.4 % 175,595   88,455   264,050   K-Mart
24.   Henderson Square   PA   King of Prussia   Fee   76.0 % (15) Acquired 2003   100.0 % 72,683   34,690   107,373   Staples, Genuardi's Family Market

27


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

25.

 

Highland Lakes Center

 

FL

 

Orlando

 

Fee

 

100.0

%

Built 1991

 

79.2

%

352,405

 

140,862

 

493,267

 

Marshalls, Bed Bath & Beyond, American Signature Furniture, Save-Rite Supermarkets, Ross Dress for Less, Office Max, Burlington Coat Factory, K&G Menswear, (8)
26.   Indian River Commons   FL   Vero Beach   Fee   50.0 % (4) Built 1997   100.0 % 233,358   19,396   252,754   Lowe's, Best Buy, Ross Dress for Less, Bed Bath & Beyond, Michael's
27.   Ingram Plaza   TX   San Antonio   Fee   100.0 % Built 1980   100.0 %   111,518   111,518   Bealls, Cost Plus World Market
28.   Keystone Shoppes   IN   Indianapolis   Ground Lease (2067)   100.0 % Acquired 1997   100.0 %   29,140   29,140    
29.   Knoxville Commons   TN   Knoxville   Fee   100.0 % Built 1987   100.0 % 91,483   88,980   180,463   Office Max, Circuit City, Carolina Pottery
30.   Lake Plaza   IL   Waukegan   Fee   100.0 % Built 1986   100.0 % 170,789   44,673   215,462   Pick and Save Mega Mart, Home Owners Bargain Outlet
31.   Lake View Plaza   IL   Orland Park (Chicago)   Fee   100.0 % Built 1986   94.6 % 261,856   109,396   371,252   Factory Card Outlet, Linens 'n Things, Best Buy, Petco, Jo-Ann Fabrics, Golf Galaxy, Value City Furniture, Loehmann's
32.   Lakeline Plaza   TX   Austin   Fee   100.0 % Built 1998   98.5 % 275,754   111,709   387,463   Linens 'n Things, T.J. Maxx, Old Navy, Best Buy, Ross Dress for Less, Office Max, PetsMart, Party City, Cost Plus World Market, Toys 'R Us
33.   Lima Center   OH   Lima   Fee   100.0 % Built 1978   89.0 % 189,584   47,294   236,878   Kohl's, Hobby Lobby, T.J. Maxx
34.   Lincoln Crossing   IL   O'Fallon   Fee   100.0 % Built 1990   100.0 % 229,820   13,446   243,266   Wal-Mart, PetsMart, The Home Depot
35.   Lincoln Plaza   PA   King of Prussia   Fee   63.2 % (15) Acquired 2003   99.7 % 143,649   123,582   267,231   Burlington Coat Factory, Circuit City, Lane Home Furnishings, AC Moore, Michaels, T.J. Maxx, Home Goods (6)
36.   MacGregor Village   NC   Cary   Fee   100.0 % Acquired 2004   83.7 %   143,563   143,563   Spa Health Club, Tuesday Morning
37.   Mall of Georgia Crossing   GA   Buford (Atlanta)   Fee   100.0 % Built 1999   98.7 % 341,503   99,109   440,612   Best Buy, American Signature Furniture, T.J. Maxx, Nordstrom Rack, Staples, Target
38.   Markland Plaza   IN   Kokomo   Fee   100.0 % Built 1974   100.0 % 49,051   41,476   90,527   Best Buy, Bed Bath & Beyond
39.   Martinsville Plaza   VA   Martinsville   Space Lease (2046)   100.0 % Built 1967   97.1 % 60,000   42,105   102,105   Rose's
40.   Matteson Plaza   IL   Matteson   Fee   100.0 % Built 1988   94.3 % 230,885   40,070   270,955   Michael's, Dominick's, Value City Department Store, (8)
41.   Muncie Plaza   IN   Muncie   Fee   100.0 % Built 1998   98.6 % 271,626   27,195   298,821   Kohl's, Shoe Carnival, T.J. Maxx, (17)
42.   New Castle Plaza   IN   New Castle   Fee   100.0 % Built 1966   100.0 % 24,912   66,736   91,648   Goody's, Jo-Ann Fabrics
43.   North Ridge Plaza   IL   Joliet   Fee   100.0 % Built 1985   97.5 % 190,323   114,747   305,070   Hobby Lobby, Office Max, Fun In Motion, Minnesota Fabrics, Burlington Coat Factory (6)
44.   North Ridge Shopping Center   NC   Raleigh   Fee   100.0 % Acquired 2004   97.1 % 43,247   122,906   166,153   Ace Hardware, Kerr Drugs, Harris-Teeter Grocery
45.   Northwood Plaza   IN   Fort Wayne   Fee   100.0 % Built 1974   85.4 % 136,404   71,841   208,245   Target
46.   Park Plaza   KY   Hopkinsville   Fee   100.0 % Built 1968   91.8 % 82,398   32,526   114,924   Big Lots, Peddler's Mall
47.   Plaza at Buckland Hills, The   CT   Manchester   Fee   35.0 % (4) (13) Built 1993   95.6 % 252,179   82,348   334,527   Linens 'n Things, CompUSA, Jo-Ann Fabrics, Party City, The Maytag Store, Toys 'R Us, Michaels, PetsMart, (17)

28


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

48.

 

Regency Plaza

 

MO

 

St. Charles

 

Fee

 

100.0

%

Built 1988

 

95.5

%

210,627

 

76,846

 

287,473

 

Wal-Mart, Sam's Wholesale Club
49.   Ridgewood Court   MS   Jackson   Fee   35.0 % (4) (13) Built 1993   96.9 % 185,939   54,732   240,671   T.J. Maxx, Lifeway Christian Bookstore, Bed Bath & Beyond, Best Buy, Michaels, Marshalls
50.   Rockaway Convenience Center   NJ   Rockaway (New York)   Fee   100.0 % Acquired 1998   94.1 % 44,518   104,393   148,911   Best Buy, Acme, Cost Plus World Market, Office Depot
51.   Rockaway Town Plaza   NJ   Rockaway (New York)   Fee   100.0 % Acquired 1998   100.0 % 407,501   51,316   458,817   Target, Pier 1 Imports, PetsMart, Dick's Sporting Goods
52.   Royal Eagle Plaza   FL   Coral Springs (Miami — Ft. Lauderale)   Fee   35.0 % (4) (13) Built 1989   98.4 % 124,479   77,624   202,103   K Mart, Stein Mart
53.   Shops at Arbor Walk, The   TX   Austin   Ground Lease (2055)   100.0 % Built 2006   89.1 % 126,610   223,298   349,908   Home Depot, Marshall's, DSW, Golf Galaxy, Jo-Ann Fabrics (6)
54.   Shops at North East Mall, The   TX   Hurst   Fee   100.0 % Built 1999   98.2 % 265,595   99,148   364,743   Michael's, PetsMart, Old Navy, Pier 1 Imports, T.J. Maxx, Bed Bath & Beyond, Nordstrom Rack, Best Buy
55.   St. Charles Towne Plaza   MD   Waldorf (Washington, D.C.)   Fee   100.0 % Built 1987   79.1 % 286,081   108,690   394,771   T.J. Maxx, Jo-Ann Fabrics, K & G Menswear, CVS, Shoppers Food Warehouse, Dollar Tree, Value City Furniture, Gallo, (8)
56.   Teal Plaza   IN   Lafayette   Fee   100.0 % Built 1962   100.0 % 98,337   2,750   101,087   Hobby Lobby, Circuit City, Pep Boys
57.   Terrace at the Florida Mall   FL   Orlando   Fee   100.0 % Built 1989   97.9 % 289,252   42,731   331,983   Marshalls, American Signature Furniture, Global Import, Target, Bed Bath & Beyond, (8)
58.   Tippecanoe Plaza   IN   Lafayette   Fee   100.0 % Built 1974   100.0 % 85,811   4,711   90,522   Best Buy, Barnes & Noble
59.   University Center   IN   Mishawaka   Fee   60.0 % Built 1980   87.5 % 104,347   46,177   150,524   Michael's, Best Buy, Linens 'n Things
60.   Village Park Plaza   IN   Carmel (Indianapolis)   Fee   35.0 % (4) (13) Built 1990   98.8 % 414,593   134,923   549,516   Bed Bath & Beyond, Ashley Furniture HomeStore, Kohl's, Wal-Mart, Marsh, Menards
61.   Washington Plaza   IN   Indianapolis   Fee   100.0 % Built 1976   100.0 % 21,500   28,607   50,107    
62.   Waterford Lakes Town Center   FL   Orlando   Fee   100.0 % Built 1999   100.0 % 622,244   329,446   951,690   Ross Dress for Less, T.J. Maxx, Bed Bath & Beyond, Old Navy, Barnes & Noble, Best Buy, Jo-Ann Fabrics, Office Max, PetsMart, Target, Ashley Furniture HomeStore, L.A. Fitness
63.   West Ridge Plaza   KS   Topeka   Fee   100.0 % Built 1988   89.5 % 182,161   59,226   241,387   Famous Footwear, T.J. Maxx, Toys 'R Us, Target
64.   West Town Corners   FL   Altamonte Springs   Fee   23.3 % (4) (13) Built 1989   99.2 % 263,782   121,477 (18) 385,259   Sports Authority, PetsMart, Winn-Dixie Marketplace, American Signature Furniture, Wal-Mart
65.   Westland Park Plaza   FL   Orange Park   Fee   23.3 % (4) (13) Built 1989   99.1 % 123,548   39,606   163,154   Sports Authority, PetsMart, Burlington Coat Factory
66.   White Oaks Plaza   IL   Springfield   Fee   100.0 % Built 1986   98.9 % 275,703   115,723   391,426   T.J. Maxx, Office Max, Kohl's Babies 'R Us, Kids 'R Us, Cub Foods
67.   Whitehall Mall   PA   Whitehall   Fee   38.0 % (15) (4) Acquired 2003   91.2 % 444,916   143,168   588,084   Sears, Kohl's, Bed Bath & Beyond, Borders Books & Music, Gold's Gym

29


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants

68.

 

Willow Knolls Court

 

IL

 

Peoria

 

Fee

 

35.0

% (4) (13)

Built 1990

 

98.4

%

309,440

 

72,937

 

382,377

 

Willow Knolls 14, Burlington Coat Factory, Kohl's, Sam's Wholesale Club
69.   Wolf Ranch   TX   Georgetown (Austin)   Fee   100.0 % Built 2005   77.4 % 395,071   218,908   613,979   Kohl's, Target, Linens 'n Things, Michaels, Best Buy, Office Depot, Old Navy, Pier 1 Imports, PetsMart, T.J. Maxx, DSW
                               
 
 
   
    Total Community/Lifestyle Center GLA                   13,152,921   5,968,456   19,121,377    
                               
 
 
   

 

 

OTHER PROPERTIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Crossville Outlet Center

 

TN

 

Crossville

 

Fee

 

100.0

%

Acquired 2004

 

100.0

%


 

151,256

 

151,256

 

Bass, Dress Barn, Liz Claiborne, Van Heusen, VF Outlet
2.   Factory Merchants Branson   MO   Branson   Fee   100.0 % Acquired 2004   83.3 %   269,307   269,307   Carter's, Izod, Nautica, Pfaltzgraff, Reebok, Pendelton, Tuesday Morning
3.   Factory Stores of America-Boaz   AL   Boaz   Ground Lease (2007)   100.0 % Acquired 2004   72.8 %   111,909   111,909   Banister/Easy Spirit, Bon Worth, VF Outlet
4.   Factory Stores of America-Georgetown   KY   Georgetown   Fee   100.0 % Acquired 2004   96.5 %   176,615   176,615   Bass, Dress Barn, Van Heusen
5.   Factory Stores of America-Graceville   FL   Graceville   Fee   100.0 % Acquired 2004   98.0 %   83,962   83,962   Factory Brand Shoes, VF Outlet, Van Heusen
6.   Factory Stores of America-Lebanon   MO   Lebanon   Fee   100.0 % Acquired 2004   100.0 %   86,249   86,249   Dress Barn, VF Outlet, Van Heusen
7.   Factory Stores of America-Nebraska City   NE   Nebraska City   Fee   100.0 % Acquired 2004   100.0 %   89,646   89,646   Bass, Dress Barn, VF Outlet
8.   Factory Stores of America-Story City   IA   Story City   Fee   100.0 % Acquired 2004   84.0 %   112,405   112,405   Dress Barn, Factory Brand Shoes, VF Outlet, Van Heusen
9.   Factory Stores of North Bend   WA   North Bend   Fee   100.0 % Acquired 2004   98.4 %   223,402   223,402   Adidas, Bass, Carter's, Eddie Bauer, Nike, OshKosh B'Gosh, Samsonite, Gap Outlet
10.   The Factory Shoppes at Branson Meadows   MO   Branson   Ground Lease (2021)   100.0 % Acquired 2004   88.6 %     286,924   286,924   Branson Meadows Cinemas, Dress Barn Woman, VF Outlet
                               
 
 
   
        Total Other GLA                     1,591,675   1,591,675    
                               
 
 
   
        Total U.S. Properties GLA                   113,892,050   87,123,088   201,015,138    
                               
 
 
   

30


Simon Property Group

Property Table

U.S. Properties

 
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
  Property Name

  State
  City (Metropolitan area)
  Ownership Interest (Expiration if Lease) (3)
  Legal Ownership
  Year Built or Acquired
  Occupancy (5)
  Anchor
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    PROPERTIES UNDER CONSTRUCTION                                
                        Expected Opening                    

1.

 

Domain, The

 

TX

 

Austin

 

Fee

 

100.0

%

3/07

 

N/A

 


 


 


 

Neiman Marcus, Macy's
2.   Philadelphia Premium Outlets   PA   Limerick   Fee   100.0 % 11/07   N/A          
3.   Palms Crossing   TX   McAllen   Fee   100.0 % 11/07   N/A         Bealls, DSW, Barnes & Noble, Babies 'R Us, Sports Authority, Guitar Center, Cavendar's Boot City
4.   Pier Park   FL   Panama City Beach   Fee   100.0 % 3/08   N/A         Dillard's, JCPenney, Target, Old Navy, Borders Books & Music
5.   Hamilton Town Center   IN   Noblesville (Indianapolis)   Fee   50.0 % 3/08   N/A         JCPenney

FOOTNOTES:


(1)
This Property is managed by a third party.

(2)
The Operating Partnership's direct and indirect interests in some of the Properties held as joint venture interests are subject to preferences on distributions in favor of other partners or the Operating Partnership.

(3)
The date listed is the expiration date of the last renewal option available to the operating entity under the ground lease. In a majority of the ground leases, we have a right of first refusal or the right to purchase the lessor's interest. Unless otherwise indicated, each ground lease listed in this column covers at least 50% of its respective Property.

(4)
Joint Venture Properties accounted for under the equity method.

(5)
Regional Malls—Executed leases for all company-owned GLA in mall and freestanding stores, excluding majors. Premium Outlet Centers—Executed leases for all company-owned GLA (or total center GLA). Community Centers—Executed leases for all company-owned GLA including majors, mall stores and freestanding stores.

(6)
Indicates anchor is currently under development.

(7)
Indicates ground lease covers less than 50% of the acreage of this Property.

(8)
Indicates vacant anchor space(s).

(9)
The lease at the Mall at Chestnut Hill includes the entire premises including land and building.

(10)
Indicates ground lease covers all of the Property except for parcels owned in fee by anchors.

(11)
Indicates ground lease covers outparcel only.

(12)
The Operating Partnership receives substantially all the economic benefit of the property due to a preference or advance.

(13)
Outside partner receives substantially all of the economic benefit due to a partner preference.

(14)
The Operating Partnership owns a mortgage note that encumbers Pheasant Lane Mall that entitles it to 100% of the economics of this property.

(15)
The Operating Partnership's indirect ownership interest is through an approximately 76% ownership interest in Kravco Simon Investments.

(16)
Indicates anchor has announced its intent to close this location.

(17)
Indicates anchor has closed, but the Operating Partnership still collects rents and/or fees under an agreement.

31


(18)
Mall & Freestanding GLA includes office space as follows:

 

 

 

Arsenal Mall—105,807 sq. ft.   Lenox Square—2,674 sq. ft.
Century III Mall—35,929 sq. ft.   Menlo Park Mall—50,615 sq. ft.
Circle Centre Mall—9,123 sq. ft.   Oak Court Mall—126,319 sq. ft.
Copley Place—856,586 sq. ft.   Oxford Valley Mall—109,832 sq. ft.
Fashion Centre at Pentagon City, The—169,089 sq. ft.   Plaza Carolina—28,192 sq. ft.
Fashion Mall at Keystone, The—10,927 sq. ft.   River Oaks Center—118,311 sq. ft.
Firewheel Town Center—75,000 sq. ft.   Roosevelt Field—1,610 sq. ft.
Greendale Mall—119,860 sq. ft.   Stanford Shopping Center—5,748 sq. ft.
The Plaza & Court at King of Prussia—13,627 sq. ft.   The Westchester—820 sq. ft.
Lehigh Valley Mall—11,754 sq. ft.    
(19)
Parisian locations will convert to Belk nameplate in 2007.

(20)
Nordstrom to open stores in locations previously operated by others at Burlington Mall (2008), Ross Park Mall (2008), Fashion Mall at Keystone (2008), South Shore Plaza (2009), and Northshore Mall (2010).

32


International Properties

            We own interests in properties outside the United States through the following international joint venture arrangements.

    European Investments

            The following summarizes our joint venture investments in Europe and the underlying countries in which these joint ventures own and operate real estate properties as of December 31, 2006:

Joint Venture Investment

  Ownership
Interest

  Properties open and operating
  Countries of Operation
Gallerie Commerciali Italia, S.p.A. ("GCI")   49.0 % 41   Italy
Simon Ivanhoe S.à.r.l. ("Simon Ivanhoe")   50.0 % 12   France, Poland

            In addition, we jointly hold with a third party an interest in one parcel of land for development near Paris, France outside of these two joint ventures. Simon Ivanhoe also operates through a wholly-owned subsidiary, Groupe BEG, S.A. ("BEG"). Simon Ivanhoe and BEG are fully integrated European retail real estate developers, owners and managers.

            Our properties in Europe consist primarily of hypermarket-anchored shopping centers. Substantially all of our European properties are anchored by either the hypermarket retailer Auchan, primarily in Italy, who is also our partner in GCI, or are anchored by the hypermarket Carrefour in France and Poland. Certain of these properties are subject to leaseholds whereby GCI leases all or a portion of the premises from a third party who is entitled to receive substantially all the economic benefits of that portion of the properties. Auchan and Carrefour are the two largest hypermarket operators in Europe.

    Other International Investments

            We also hold real estate interests in five joint ventures in Japan and one in Mexico. The five joint ventures in Japan operate Premium Outlet centers in various cities in Japan and have over 1.4 million square feet of GLA. These centers were 100% leased as of December 31, 2006 and contained 600 stores with approximately 300 different tenants. The Premium Outlet center in Mexico is 85% leased as of December 31, 2006.

            The following summarizes these six Premium Outlet centers in international joint ventures:

Joint Venture Investment Holdings

  Ownership
Interest

 
Gotemba Premium Outlets — Gotemba City (Tokyo), Japan   40.0 %
Rinku Premium Outlets — Izumisano (Osaka), Japan   40.0 %
Sano Premium Outlets — Sano (Tokyo), Japan   40.0 %
Toki Premium Outlets — Toki (Nagoya), Japan   40.0 %
Tosu Premium Outlets — Fukuoka (Kyushu), Japan   40.0 %
Punta Norte Premium Outlets — Mexico City, Mexico   50.0 %

            We also have begun construction on Yeoju Premium Outlets, a 253,000 square foot center located in South Korea. We have a 50% interest in this property with the remaining 50% interest owned by Shinsegae. Also, through a joint venture arrangement with MSREF and SZITIC CP, we have a 32.5% interest in four shopping centers that are under construction in China aggregating 1.9 million square feet of GLA.

            The following property table summarizes certain data on our properties that are under operation in Europe, Japan, and Mexico at December 31, 2006.

33


Simon Property Group, Inc. and Subsidiaries

International Property Table

 
   
   
   
   
   
  Gross Leasable Area (1)
   
 
  COUNTRY/Property Name

  City (Metropolitan area)
  Ownership
Interest

  SPG
Ownership

  Year Built
  Hypermarket/Anchor (4)
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    FRANCE                            
1.   Bay 2   Torcy (Paris)   Fee   50.0 % 2003   132,400   408,900   541,300   Carrefour, Leroy Merlin
2.   Bay 1   Torcy (Paris)   Fee   50.0 % 2004     336,300   336,300   Conforama, Go Sport
3.   Bel'Est   Bagnolet (Paris)   Fee   17.5 % 1992   150,700   63,000   213,700   Auchan
4.   Villabé A6   Villabé (Paris)   Fee   7.5 % 1992   102,300   104,500   206,800   Carrefour
5.   Wasquehal   Wasquehal (Lille)   Fee   50.0 % 2006   129,200   102,100   231,300   Carrefour
                       
 
 
   
        Subtotal France           514,600   1,014,800   1,529,400    

 

 

ITALY

 

 

 

 

 

 

 

 

 

 

 

 
6.   Ancona — Senigallia   Senigallia (Ancona)   Fee   49.0 % 1995   41,200   41,600   82,800   Cityper
7.   Ascoli Piceno — Grottammare   Grottammare (Ascoli Piceno)   Fee   49.0 % 1995   38,900   55,900   94,800   Cityper, Scarpe & Scarpe
8.   Ascoli Piceno — Porto Sant'Elpidio   Porto Sant'Elpidio (Ascoli Piceno)   Fee   49.0 % 1999   48,000   114,300   162,300   Cityper, Comet
9.   Bari — Casamassima   Casamassima (Bari)   Fee   49.0 % 1995   159,000   388,800   547,800   Auchan, Coin, Eldo, Leroy Merlin, Decathlon, Oviesse, Kiabi, Upim
10.   Bari — Modugno (5)   Modugno (Bari)   Fee   49.0 % 2004   96,900   46,600   143,500   Auchan
11.   Brescia — Mazzano   Mazzano (Brescia)   Fee/Leasehold (2)   49.0 % (2) 1994   103,300   127,400   230,700   Auchan, Bricocenter, Upim, Trony
12.   Brindisi — Mesagne   Mesagne (Brindisi)   Fee   49.0 % 2003   88,000   140,600   228,600   Auchan, Euronics
13.   Cagliari — Santa Gilla   Cagliari   Fee/Leasehold (2)   49.0 % (2) 1992   75,900   114,800   190,700   Auchan, Bricocenter, Trony
14.   Catania — La Rena   Catania   Fee   49.0 % 1998   124,100   22,100   146,200   Auchan
15.   Cuneo   Cuneo (Torino)   Fee   49.0 % 2004   80,700   201,500   282,200   Auchan, Bricocenter, Decathlon, Upim, Euronics
16.   Giugliano   Giugliano (Napoli)   Fee   19.6 % 2006   130,000   618,300   748,300   Auchan, Decathlon, Leroy Merlin, Oviesse, Conbipel, Scarpe & Scarpe, Eldo, Euronics
17.   Milano — Rescaldina   Rescaldina (Milano)   Fee   49.0 % 2000   165,100   212,000   377,100   Auchan, Bricocenter, Decathlon, Media World, Upim
18.   Milano — Vimodrone   Vimodrone (Milano)   Fee   49.0 % 1989   110,400   80,200   190,600   Auchan, Bricocenter
19.   Napoli — Pompei   Pompei (Napoli)   Fee   49.0 % 1990   74,300   17,100   91,400   Auchan
20.   Padova   Padova   Fee   49.0 % 1989   73,300   32,500   105,800   Auchan
21.   Palermo   Palermo   Fee   49.0 % 1990   73,100   9,800   82,900   Auchan
22.   Pesaro — Fano   Fano (Pesaro)   Fee   49.0 % 1994   56,300   56,000   112,300   Auchan
23.   Pescara   Pescara   Fee   49.0 % 1998   96,300   65,200   161,500   Auchan, Upim, Euronics
24.   Pescara — Cepagatti   Cepagatti (Pescara)   Fee   49.0 % 2001   80,200   189,600   269,800   Auchan, Bata, Emmezeta Marcatone Z
25.   Piacenza — San Rocco al Porto   San Rocco al Porto (Piacenza)   Fee   49.0 % 1992   104,500   74,700   179,200   Auchan, Darty
26.   Roma — Collatina   Collatina (Roma)   Fee   49.0 % 1999   59,500   4,100   63,600   Auchan
27.   Sassari — Predda Niedda   Predda Niedda (Sassari)   Fee/Leasehold (2)   49.0 % (2) 1990   79,500   154,200   233,700   Auchan, Bricocenter, Upim, Media World

34


Simon Property Group, Inc. and Subsidiaries

International Property Table

 
   
   
   
   
   
  Gross Leasable Area (1)
   
 
  COUNTRY/Property Name

  City (Metropolitan area)
  Ownership
Interest

  SPG
Ownership

  Year Built
  Hypermarket/Anchor (4)
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    ITALY (continued)                        
28.   Taranto   Taranto   Fee   49.0 % 1997   75,200   126,500   201,700   Auchan, Bricocenter, Upim
29.   Torino   Torino   Fee   49.0 % 1989   105,100   66,700   171,800   Auchan, Upim
30.   Torino — Venaria   Venaria (Torino)   Fee   49.0 % 1982   101,600   64,000   165,600   Auchan, Bricocenter
31.   Venezia — Mestre   Mestre (Venezia)   Fee   49.0 % 1995   114,100   132,600   246,700   Auchan, Oviesse
32.   Vicenza   Vicenza   Fee   49.0 % 1995   78,400   20,100   98,500   Auchan
33.   Ancona   Ancona   Leasehold (3)   49.0 % (3) 1993   82,900   82,300   165,200   Auchan, Upim
34.   Bergamo   Bergamo   Leasehold (3)   49.0 % (3) 1976   103,000   16,900   119,900   Auchan
35.   Brescia — Concesio   Concesio (Brescia)   Leasehold (3)   49.0 % (3) 1972   89,900   27,600   117,500   Auchan, Bata
36.   Cagliari — Marconi   Cagliari   Leasehold (3)   49.0 % (3) 1994   83,500   109,900   193,400   Auchan, Bricocenter, Bata, Trony
37.   Catania — Misterbianco   Misterbianco (Catania)   Leasehold (3)   49.0 % (3) 1989   83,300   16,000   99,300   Auchan
38.   Merate — Lecco   Merate (Lecco)   Leasehold (3)   49.0 % (3) 1976   73,500   88,500   162,000   Auchan, Bricocenter
39.   Milano — Cesano Boscone   Cesano Boscone (Milano)   Leasehold (3)   49.0 % (3) 2005   163,800   120,100   283,900   Auchan
40.   Milano — Nerviano   Nerviano (Milano)   Leasehold (3)   49.0 % (3) 1991   83,800   27,800   111,600   Auchan
41.   Napoli — Mugnano di Napoli   Mugnano di Napoli   Leasehold (3)   49.0 % (3) 1992   98,000   94,900   192,900   Auchan, Bricocenter, Upim
42.   Olbia   Olbia   Leasehold (3)   49.0 % (3) 1993   49,000   48,800   97,800   Auchan
43.   Roma — Casalbertone   Roma   Leasehold (3)   49.0 % (3) 1998   62,700   84,900   147,600   Auchan, Upim
44.   Sassari — Centro Azuni   Sassari   Leasehold (3)   49.0 % (3) 1995     35,600   35,600   Oviesse
45.   Torino — Rivoli   Rivoli (Torino)   Leasehold (3)   49.0 % (3) 1986   61,800   32,300   94,100   Auchan
46.   Verona — Bussolengo   Bussolengo (Verona)   Leasehold (3)   49.0 % (3) 1975   89,300   75,300   164,600   Auchan, Bricocenter
                       
 
 
   
        Subtotal Italy           3,557,400   4,038,100   7,595,500    

 

 

POLAND

 

 

 

 

 

 

 

 

 

 

 

 
47.   Arkadia Shopping Center   Warsaw   Fee   50.0 % 2004   202,100   902,200   1,104,300   Carrefour, Leroy Merlin, Media, Saturn, Cinema City, H & M, Zara, Royal Collection, Peek & Clopperburg
48.   Borek Shopping Center   Wroclaw   Fee   50.0 % 1999   119,900   129,300   249,200   Carrefour
49.   Dabrowka Shopping Center   Katowice   Fee   50.0 % 1999   121,000   172,900   293,900   Carrefour, Castorama
50.   Gliwice Shopping Center   Gliwice   Fee   50.0 % 2006   140,700   239,000   379,700   Carrefour
51.   Turzyn Shopping Center   Szczecin   Fee   50.0 % 2001   87,200   121,900   209,100   Carrefour
52.   Wilenska Station Shopping Center   Warsaw   Fee   50.0 % 2002   92,700   215,900   308,600   Carrefour
53.   Zakopianka Shopping Center   Krakow   Fee   50.0 % 1998   120,200   425,400   545,600   Carrefour, Castorama
                       
 
 
   
        Subtotal Poland           883,800   2,206,600   3,090,400    

35


Simon Property Group, Inc. and Subsidiaries

International Property Table

 
   
   
   
   
   
  Gross Leasable Area (1)
   
 
  COUNTRY/Property Name

  City (Metropolitan area)
  Ownership
Interest

  SPG
Ownership

  Year Built
  Hypermarket/Anchor (4)
  Mall & Freestanding
  Total
  Retail Anchors and Major Tenants
    JAPAN                            
54.   Gotemba Premium Outlets   Gotemba City (Tokyo)   Fee   40.0 % 2000     390,000   390,000   Bally, Coach, Diesel, Gap, Gucci, Jill Stuart, L.L. Bean, Nike, Tod's
55.   Rinku Premium Outlets   Izumisano (Osaka)   Ground Lease (2020)   40.0 % 2000     321,000   321,000   Bally, Brooks Brothers, Coach, Eddie Bauer, Gap, Nautica, Nike, Timberland, Versace
56.   Sano Premium Outlets   Sano (Tokyo)   Ground Lease (2022)   40.0 % 2003     318,200   318,200   Bally, Brooks Brothers, Coach, Nautica, New Yorker, Nine West, Timberland
57.   Toki Premium Outlets   Toki (Nagoya)   Ground Lease (2024)   40.0 % 2005     231,200   231,200   Adidas, Brooks Brothers, Bruno Magli, Coach, Eddie Bauer, Furla, Nautica, Nike, Timberland, Versace
58.   Tosu Premium Outlets   Fukuoka (Kyushu)   Ground Lease (2023)   40.0 % 2004     187,000   187,000   BCBG, Bose, Coach, Cole Haan, Lego, Nike, Petit Bateau, Max Azria, Theory
                       
 
 
   
        Subtotal Japan             1,447,400   1,447,400    

 

 

MEXICO

 

 

 

 

 

 

 

 

 

 

 

 
59.   Punta Norte Premium Outlets   Mexico City   Fee   50.0 % 2004     232,000   232,000   Christian Dior, Sony, Nautica, Levi's, Nike Rockport, Reebok, Adidas, Samsonite
                       
 
 
   
        Subtotal Mexico             232,000   232,000    
                       
 
 
   
        TOTAL INTERNATIONAL ASSETS           4,955,800   8,938,900   13,894,700    
                       
 
 
   

FOOTNOTES:

(1)
All gross leasable area listed in square feet.

(2)
This property is held partially in fee and partially encumbered by a leasehold on the premise which entitles the lessor to the majority of the economics of the portion of the property subject to the leasehold.

(3)
These properties are encumbered by a leasehold on the entire premises which entitles the lessor the majority of the economics of the property.

(4)
Represents the sales area of the anchor and excludes any warehouse/storage areas.

(5)
Gallerie Commerciali Italia, in which we have a 49% joint venture interest, has been notified by an Italian appellate court that the center which opened in February 2004, though properly permitted, was not in accordance the Modugno master plan. The joint venture is appealing the decision of the appellate court and is otherwise working to resolve the issue. The center remains open. The joint venture partner has indemnified us for the amount of our allocated investment in the project.

36


    Land Held for Development

            We have direct or indirect ownership interests in five parcels of land held in the United States for future development, containing an aggregate of approximately 400 acres located in three states.

            Also, on December 28, 2005, we invested $50.0 million of equity for a 40% interest in a joint venture with Toll Brothers, Inc. (Toll Brothers) and Meritage Homes Corp. (Meritage Homes) to purchase a 5,485-acre land parcel in northwest Phoenix from DaimlerChrysler Corporation for $312 million. Toll Brothers and Meritage Homes each plan to build a significant number of homes on the site. We have the option to purchase a substantial portion of the commercial property for retail uses. Other parcels may also be sold to third parties. The site plans call for a mixed-use master planned community, which will include approximately 4,840 acres of single-family homes and attached homes. Approximately 645 acres of commercial and retail development will include schools, community amenities and open space. The entitlement, planning, and design processes are ongoing and initial home sales are tentatively scheduled to begin in 2009. The joint venture, of which Toll Brothers is the managing member, expects to develop a master planned community of approximately 12,000 to 15,000 residential units.

    Energy Costs Conservation

            In 2003, we began monitoring and benchmarking our energy consumption and initiated a process to assess energy efficiency across our enclosed mall properties. In 2004, we implemented a comprehensive strategy to improve energy efficiency. This included the launch of our Energy Best Practices Program, which challenged managers of our enclosed mall properties to examine their operating practices in an effort to reduce energy costs without affecting comfort, safety or reliability. We also developed strategic relationships for investing in cost-effective, energy-efficiency projects. In 2005, we enhanced the remote monitoring of our malls' Energy Management Systems to help ensure optimal system operations through alarm delivery to mall operators and reporting of non-optimal operating practices to management. In 2006, we piloted various techniques in the area of demand shifting and response initiatives to reduce load on utility networks when advised that supply capacity is critically low, while reducing our operating costs.

            This strategy helped us reduce electricity usage by 175 million kWhs for 2004, 2005, and 2006 combined, as compared to 2003. This is an 8.2% reduction in electricity usage which represents approximately $18 million in avoided annual operating costs at current market prices. This reduction in electricity usage translates to the avoidance of 110,576 metric tons of carbon dioxide annually, which is equivalent to 23,934 cars not driven for one year, saved electrical energy to power 14,195 U.S. homes for a full year, or 92,147 acres of pine or fir forests storing carbon for one year.

            A substantial portion of savings was generated through low cost/no cost measures ranging from simple actions to complex ones. For example, we minimize costs by keeping tight control over hours of operation for all lighting systems in the common area, parking lot, and back of the house areas of our properties without affecting comfort or safety. We also optimize the start/stop of HVAC systems with direct digital controls to meet cooling requirements. Another key strategy for management of energy use is the investment in energy efficient technologies in areas such as lighting, HVAC and building control systems.

            In recognition of our excellence in energy efficiency, we received the 2005 Bronze Leader in the Light Award from the National Association of Real Estate Investment Trusts (NAREIT), in collaboration with the U.S. Environmental Protection Agency (EPA). In 2006, our leadership was further recognized as we received the Gold Leader in the Light Award from NAREIT. Recipients are judged on the basis of how effectively they have implemented company-wide operations that generate substantially improved energy efficiency and expense management.

            For the past two years, we also participated in the Carbon Disclosure Project's greenhouse emissions information requests to inform investors of our activities in the area of climate change and energy conservation. We also joined the U.S. EPA's ENERGY STAR program, with the goal of continuing to improve our organization's energy and environmental performance.

    Mortgage Financing on Properties

            The following table sets forth certain information regarding the mortgages and other debt encumbering our Properties and the properties held by our international joint venture arrangements. Substantially all of the mortgage and property related debt is nonrecourse to us.

37



Mortgage and Other Debt on Portfolio Properties
As of December 31, 2006
(Dollars in thousands)

Property Name
  Interest
Rate

  Face
Amount

  Annual Debt
Service

  Maturity
Date

 
Consolidated Indebtedness:                      

Secured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Simon Property Group, LP:                      
Anderson Mall   6.20 % $ 28,634   $ 2,216   10/10/12  
Arsenal Mall — 1   6.75 %   31,433     2,724   09/28/08  
Arsenal Mall — 2   8.20 %   1,326     286   05/05/16  
Aventura Mall Credit Facility   6.32%   (1)   27,369     1,730   (2) 10/27/07  
Bangor Mall   7.06 %   22,038     2,302   12/01/07  
Battlefield Mall   4.60 %   97,839     6,154   07/01/13  
Bloomingdale Court   7.78 %   27,532   (4)   2,578   11/01/09  
Boardman Plaza   5.94 %   23,598     1,402   (2) 07/01/14  
Brunswick Square   5.65 %   85,659     5,957   08/11/14  
Carolina Premium Outlets — Smithfield   9.10 %   20,231   (6)   2,114   03/10/13  
Century III Mall   6.20 %   84,525   (9)   6,541   10/10/12  
Chesapeake Square   5.84 %   72,658     5,162   08/01/14  
Cielo Vista Mall   9.38 %   47,433   (5)   5,828   05/01/07  
College Mall — 1   7.00 %   32,630   (8)   3,908   01/01/09  
College Mall — 2   6.76 %   10,710   (8)   935   01/01/09  
Copley Place   7.44 %   171,126     16,266   08/01/07  
Coral Square   8.00 %   85,740     8,065   10/01/10  
The Crossings Premium Outlets   5.85 %   56,707     4,649   03/13/13  
Crossroads Mall   6.20 %   42,451     3,285   10/10/12  
Crystal River   7.63 %   15,341     1,385   11/11/10   (25)
Dare Centre   9.10 %   1,684   (6)   176   03/10/13   (25)
DeKalb Plaza   5.28 %   3,301     284   01/01/15  
Desoto Square   5.89 %   64,153     3,779   (2) 07/01/14  
The Factory Shoppes at Branson Meadows   9.10 %   9,409   (6)   983   03/10/13   (25)
Factory Stores of America — Boaz   9.10 %   2,752   (6)   287   03/10/13   (25)
Factory Stores of America — Georgetown   9.10 %   6,521   (6)   681   03/10/13   (25)
Factory Stores of America — Graceville   9.10 %   1,937   (6)   202   03/10/13   (25)
Factory Stores of America — Lebanon   9.10 %   1,628   (6)   170   03/10/13   (25)
Factory Stores of America — Nebraska City   9.10 %   1,529   (6)   160   03/10/13   (25)
Factory Stores of America — Story City   9.10 %   1,891   (6)   198   03/10/13   (25)
Forest Mall   6.20 %   17,000   (10)   1,316   10/10/12  
Forest Plaza   7.78 %   15,101   (4)   1,414   11/01/09  
Forum Shops at Caesars, The   4.78 %   541,935     34,564   12/01/10  
Gateway Shopping Center   5.89 %   87,000     5,124   (2) 10/01/11  
Gilroy Premium Outlets   6.99 %   64,144   (7)   6,236   07/11/08   (25)
Greenwood Park Mall — 1   7.00 %   27,329   (8)   3,273   01/01/09  
Greenwood Park Mall — 2   6.76 %   55,331   (8)   4,831   01/01/09  
Henderson Square   6.94 %   15,063     1,270   07/01/11  
Highland Lakes Center   6.20 %   15,670   (9)   1,213   10/10/12  
Ingram Park Mall   6.99 %   79,499   (20)   6,724   08/11/11  
Keystone at the Crossing   7.85 %   57,514     5,642   07/31/07  
Kittery Premium Outlets   6.99 %   10,619   (7)   1,028   07/11/08   (25)
Knoxville Center   6.99 %   60,201   (20)   5,092   08/11/11  
Lake View Plaza   7.78 %   20,073   (4)   1,880   11/01/09  
Lakeline Mall   7.65 %   64,999     6,300   05/01/07  
Lakeline Plaza   7.78 %   22,008   (4)   2,061   11/01/09  
Lighthouse Place Premium Outlets   6.99 %   44,261   (7)   4,286   07/11/08   (25)
Lincoln Crossing   7.78 %   3,038   (4)   285   11/01/09  
Longview Mall   6.20 %   31,814   (9)   2,462   10/10/12  
MacGregor Village   9.10 %   6,775   (6)   708   03/10/13   (25)
Mall of Georgia   7.09 %   191,520     16,649   07/01/10  
Markland Mall   6.20 %   22,509   (10)   1,742   10/10/12  
Matteson Plaza   7.78 %   8,840   (4)   828   11/01/09  
McCain Mall   9.38 %   22,148   (5)   2,721   05/01/07  
Midland Park Mall   6.20 %   32,860   (10)   2,543   10/10/12  
Montgomery Mall   5.17 %   92,508     6,307   05/11/14   (25)
Muncie Plaza   7.78 %   7,643   (4)   716   11/01/09  
                       

38


Northfield Square   6.05 %   30,382     2,485   02/11/14  
Northlake Mall   6.99 %   69,450   (20)   5,874   08/11/11  
North Ridge Shopping Center   9.10 %   8,275   (6)   865   03/10/13   (25)
Oxford Valley Mall   6.76 %   79,924     7,801   01/10/11  
Palm Beach Mall   6.20 %   52,567     4,068   10/10/12  
Penn Square Mall   7.03 %   68,258     6,003   03/01/09   (25)
Plaza Carolina — Fixed   5.10 %   94,714     7,085   05/09/09  
Plaza Carolina — Variable Capped   6.22%   (29)   95,744     7,895   05/09/09   (3)
Plaza Carolina — Variable Floating   6.22%   (1)   57,445     4,737   05/09/09   (3)
Port Charlotte Town Center   7.98 %   52,007     4,680   12/11/10   (25)
Regency Plaza   7.78 %   4,143   (4)   388   11/01/09  
Richmond Towne Square   6.20 %   46,156   (10)   3,572   10/10/12  
SB Trolley Square Holding   9.03 %   28,408     2,880   08/01/10  
St. Charles Towne Plaza   7.78 %   26,518   (4)   2,483   11/01/09  
Stanford Shopping Center   3.60%   (11)   220,000     7,920   (2) 09/11/08  
Sunland Park Mall   8.63%   (13)   35,315     3,768   01/01/26  
Tacoma Mall   7.00 %   126,763     10,778   10/01/11  
Towne East Square — 1   7.00 %   44,339     4,711   01/01/09  
Towne East Square — 2   6.81 %   22,330     1,958   01/01/09  
Towne West Square   6.99 %   52,039   (20)   4,402   08/11/11  
University Park Mall   7.43 %   56,825     4,958   10/01/07  
Upper Valley Mall   5.89 %   47,904     2,822   (2) 07/01/14  
Valle Vista Mall   9.38 %   29,335   (5)   3,598   05/01/07  
Washington Square   5.94 %   30,693     1,823   (2) 07/01/14  
Waterloo Premium Outlets   6.99 %   35,649   (7)   3,452   07/11/08   (25)
West Ridge Mall   5.89 %   68,711     4,047   (2) 07/01/14  
West Ridge Plaza   7.78 %   5,342   (4)   500   11/01/09  
White Oaks Mall   5.54 %   50,000     2,768   (2) 11/01/16  
White Oaks Plaza   7.78 %   16,298   (4)   1,526   11/01/09  
Wolfchase Galleria   7.80 %   70,716     6,911   06/30/07  
Woodland Hills Mall   7.00 %   81,587     7,185   01/01/09   (25)
       
           
Total Consolidated Secured Indebtedness       $ 4,405,024            

39



Unsecured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Simon Property Group, LP:                      
Unsecured Revolving Credit Facility — USD   5.70%   (15) $   $   (2) 01/11/11   (3)
Revolving Credit Facility — Yen Currency   0.85%   (15)   14,673     125   (2) 01/11/11   (3)
Revolving Credit Facility — Euro Currency   4.01%   (15)   290,459     11,643   (2) 01/11/11   (3)
Medium Term Notes — 2   7.13 %   180,000     12,825   (14) 09/20/07  
Unsecured Notes — 2B   7.00 %   150,000     10,500   (14) 07/15/09  
Unsecured Notes — 4C   7.38 %   200,000     14,750   (14) 06/15/18  
Unsecured Notes — 5B   7.13 %   300,000     21,375   (14) 02/09/09  
Unsecured Notes — 6B   7.75 %   200,000     15,500   (14) 01/20/11  
Unsecured Notes — 7   6.38 %   750,000     47,813   (14) 11/15/07  
Unsecured Notes — 8A   6.35 %   350,000     22,225   (14) 08/28/12  
Unsecured Notes — 8B   5.38 %   150,000     8,063   (14) 08/28/08  
Unsecured Notes — 9A   4.88 %   300,000     14,625   (14) 03/18/10  
Unsecured Notes — 9B   5.45 %   200,000     10,900   (14) 03/15/13  
Unsecured Notes — 10A   3.75 %   300,000     11,250   (14) 01/30/09  
Unsecured Notes — 10B   4.90 %   200,000     9,800   (14) 01/30/14  
Unsecured Notes — 11A   4.88 %   400,000     19,500   (14) 08/15/10  
Unsecured Notes — 11B   5.63 %   500,000     28,125   (14) 08/15/14  
Unsecured Notes — 12 A   5.10 %   600,000     30,600   (14) 06/15/15  
Unsecured Notes — 12 B   4.60 %   400,000     18,400   (14) 06/15/10  
Unsecured Notes — 13 A   5.38 %   500,000     26,875   (14) 06/01/11  
Unsecured Notes — 13 B   5.75 %   600,000     34,500   (14) 12/01/15  
Unsecured Notes — 14 A   5.75 %   400,000     23,000   (14) 05/01/12  
Unsecured Notes — 14 B   6.10 %   400,000     24,400   (14) 05/01/16  
Unsecured Notes — 15 A   5.60 %   600,000     33,600   (14) 09/01/11  
Unsecured Notes — 15 B   5.88 %   500,000     29,375   (14) 03/01/17  
Unsecured Notes — 16 A   5.00 %   600,000     30,000   (14) 03/01/12  
Unsecured Notes — 16 B   5.25 %   650,000     34,125   (14) 12/01/16  
Mandatory Par Put Remarketed Securities   7.00 %   200,000     14,000   (14) 06/15/08   (16)
       
           
          9,935,132            

The Retail Property Trust, subsidiary:

 

 

 

 

 

 

 

 

 

 

 
Unsecured Notes — CPI 4   7.18 %   75,000     5,385   (14) 09/01/13  
Unsecured Notes — CPI 5   7.88 %   250,000     19,688   (14) 03/15/16  
       
           
          325,000            

CPG Partners, LP, subsidiary:

 

 

 

 

 

 

 

 

 

 

 
Unsecured Notes — CPG 2   7.25 %   125,000     9,063   (14) 10/21/07  
Unsecured Notes — CPG 3   3.50 %   100,000     3,500   (14) 03/15/09  
Unsecured Notes — CPG 4   8.63 %   50,000     4,313   (14) 08/17/09  
Unsecured Notes — CPG 5   8.25 %   150,000     12,375   (14) 02/01/11  
Unsecured Notes — CPG 6   6.88 %   100,000     6,875   (14) 06/15/12  
Unsecured Notes — CPG 7   6.00 %   150,000     9,000   (14) 01/15/13  
       
           
          675,000            
       
           
  Total Consolidated Unsecured Indebtedness       $ 10,935,132            
       
           
  Total Consolidated Indebtedness at Face Amounts       $ 15,340,156            
  Fair Value Interest Rate Swaps         (9,428)   (24)          
  Net Premium on Indebtedness         93,732            
  Net Discount on Indebtedness         (29,971 )          
       
           
  Total Consolidated Indebtedness       $ 15,394,489   (19)          
       
           

40



Joint Venture Indebtedness:

 

 

 

 

 

 

 

 

 

 

 

Secured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Apple Blossom Mall   7.99 % $ 38,219   $ 3,607   09/10/09  
Arkadia Shopping Center   4.67 %  (31)   135,062     6,312   05/31/12  
Atrium at Chestnut Hill   6.89 %   46,025     3,880   03/11/11   (25)
Auburn Mall   7.99 %   44,744     4,222   09/10/09  
Aventura Mall   6.61 %   200,000     13,220   (2) 04/06/08  
Avenues, The   5.29 %   75,588     5,325   04/01/13  
Bay 1 (Torcy)   4.42 %  (31)   18,575     822   05/31/11  
Bay 2 (Torcy)   4.42 %  (31)   69,290     3,065   06/30/11  
Borek Shopping Center   5.93 %   16,396     973   02/06/12  
Cape Cod Mall   6.80 %   93,520     7,821   03/11/11  
Castleton Storage   7.37 %  (1)   256     19   (2) 07/31/09   (3)
Circle Centre Mall   5.02 %   75,624     5,165   04/11/13  
Clay Terrace   5.08 %   115,000     5,842   (2) 10/01/15  
Coconut Point   5.83 %   230,000     13,409   (2) 12/10/16  
Coddingtown Mall   6.57 %  (1)   10,500     690   (2) 07/14/07  
Crystal Mall   5.62 %   99,883     7,319   09/11/12   (25)
Dabrowka Shopping Center   6.04 %  (31)   4,978     301   07/03/14  
Dadeland Mall   6.75 %   189,252     15,566   02/11/12   (25)
Domain Residential   6.47 %  (1)   21,673     1,403   (2) 03/03/11   (3)
Eastland Mall   5.79 %   168,000     9,734   (2) 06/01/16  
Emerald Square Mall   5.13 %   137,050     9,479   03/01/13  
Empire Mall   5.79 %   176,300     10,215   (2) 06/01/16  
Fashion Centre Pentagon Retail   6.63 %   156,904     12,838   09/11/11   (25)
Fashion Centre Pentagon Office   6.07 %  (30)   40,000     2,429   (2) 07/09/09   (3)
Fashion Valley Mall — 1   6.49 %   158,720     13,218   10/11/08   (25)
Fashion Valley Mall — 2   6.58 %   29,124     1,915   (2) 10/11/08   (25)
Firewheel Residential   7.17 %  (1)   606     43   (2) 06/20/09  
Florida Mall, The   7.55 %   254,151     22,766   12/10/10  
Galleria Commerciali Italia — Facility A   4.77 %  (18)   328,859     21,411   12/22/11   (3)
Galleria Commerciali Italia — Facility B   4.87 %  (27)   324,885     22,565   12/22/11  
Galleria Commerciali Italia — Cinisello   4.12 %   29,545     1,218   06/20/07  
Gaitway Plaza   4.60 %   13,900   (17)   640   (2) 07/01/15  
Granite Run Mall   5.83 %   121,189     8,622   06/01/16  
Greendale Mall   6.00 %   45,000     2,699   (2) 10/01/16  
Gotemba Premium Outlets — Fixed   2.00 %   8,398   (26)   1,176   10/25/14  
Gotemba Premium Outlets — Variable   2.30 %  (12)   16,208   (26)   3,900   09/30/07  
Gwinnett Place — 1   7.54 %   35,621     3,412   04/01/07  
Gwinnett Place — 2   7.25 %   79,239     7,070   04/01/07  
Hamilton Town Center   6.32 %  (1)   9,398     594   (2) 03/31/07  
Highland Mall   6.83 %   66,744     5,634   07/11/11  
Houston Galleria — 1   5.44 %   643,583     34,985   (2) 12/01/15  
Houston Galleria — 2   5.44 %   177,417     9,644   (2) 12/01/15  
Indian River Commons   5.21 %   9,645     503   (2) 11/01/14  
Indian River Mall   5.21 %   65,355     3,408   (2) 11/01/14  
King of Prussia Mall — 1   7.49 %   162,777     23,183   01/01/17  
King of Prussia Mall — 2   8.53 %   11,314     1,685   01/01/17  
Lehigh Valley Mall   5.88 %  (1)   150,000     8,823   (2) 08/09/10   (3)
Liberty Tree Mall   5.22 %   35,000     1,827   (2) 10/11/13  
Mall at Rockingham   7.88 %   93,242     8,705   09/01/07  
Mall at Chestnut Hill   8.45 %   14,172     1,396   02/02/10  
Mall of New Hampshire — 1   6.96 %   96,202     8,345   10/01/08   (25)
Mall of New Hampshire — 2   8.53 %   7,989     786   10/01/08  
Mesa Mall   5.79 %   87,250     5,055   (2) 06/01/16  
Miami International Mall   5.35 %   97,198     6,533   10/01/13  
Northshore Mall   5.03 %   210,000     10,553   (2) 03/11/14   (25)
Quaker Bridge Mall   7.03 %   21,627     2,407   04/01/16  
Plaza at Buckland Hills, The   4.60 %   24,800   (17)   1,142   (2) 07/01/15  
Ridgewood Court   4.60 %   14,650   (17)   674   (2) 07/01/15  
                       

41


Rinku Premium Outlets   2.34 %   31,276   (26)   4,857   10/25/14  
Rushmore Mall   5.79 %   94,000     5,446   (2) 06/01/16  
Sano Premium Outlets   2.39 %   46,214   (26)   7,371   05/31/16  
St. Johns Town Center   5.06 %   170,000     8,602   (2) 03/11/15  
St. John's Town Center Phase II   6.17 %  (1)   17,530     1,082   (2) 02/27/07  
Seminole Towne Center   5.97 %  (22)   70,000     4,180   (2) 07/09/09   (3)
Shops at Sunset Place, The   6.07 %  (21)   90,867     7,250   05/09/09   (3)
Smith Haven Mall   5.16 %   180,000     9,283   (2) 03/01/16  
Solomon Pond   3.97 %   113,206     6,505   08/01/13  
Source, The   6.65 %   124,000     8,246   (2) 03/11/09  
Southern Hills Mall   5.79 %   101,500     5,881   (2) 06/01/16  
SouthPark Residential   6.72 %  (1)   20,319     1,366   (2) 10/31/08  
Springfield Mall   6.42 %  (1)   76,500     4,913   (2) 12/01/10   (3)
Square One   6.73 %   90,038     7,380   03/11/12  
Surprise Grand Vista   10.61 %   249,306     26,455   (2) 12/28/10   (3)
Toki Premium Outlets   1.22 %  (12)   21,248   (26)   3,283   10/30/09  
Tosu Premium Outlets   2.60 %   10,617   (26)   1,852   08/24/13  
Town Center at Cobb — 1   7.54 %   45,383     4,347   04/01/07  
Town Center at Cobb — 2   7.25 %   60,303     5,381   04/01/07  
Turzyn Shopping Center   6.32 %   24,162     1,528   06/06/14  
University Storage   7.37 %  (1)   2,344     173   (2) 07/31/09   (3)
Valley Mall   5.83 %   47,184     3,357   06/01/16  
Villabe A6 — Bel'Est   4.72 %  (31)   11,577     547   08/31/11  
Village Park Plaza   4.60 %   29,850   (17)   1,374   (2) 07/01/15  
West Town Corners   4.60 %   18,800   (17)   865   (2) 07/01/15  
West Town Mall   6.90 %   76,000     5,244   (2) 05/01/08   (25)
Westchester, The   4.86 %   500,000     24,300   (2) 06/01/10  
Whitehall Mall   6.77 %   13,072     1,282   11/01/08  
Wilenska Station Shopping Center   5.12 %  (31)   39,524     2,025   08/31/11  
Zakopianka Shopping Center   6.60 %   14,865     981   12/28/11  
       
           
  Total Joint Venture Secured Indebtedness at Face Amounts       $ 7,996,332            

Unsecured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Galleria Commerciali Italia — Facility C   4.28 %  (28)   61,129     2,618   (2) 12/22/08   (3)
       
           
Total Joint Venture Unsecured Indebtedness         61,129            
 
Net Premium on Indebtedness

 

 

 

 

0

 

 

 

 

 

 
  Net Discount on Indebtedness         (1,606 )          
       
           
  Total Joint Venture Indebtedness       $ 8,055,855   (23)          
       
           

(Footnotes on following page)

42


(Footnotes for preceding pages)


(1)
Variable rate loans based on LIBOR plus interest rate spreads ranging from 37.5 bps to 205 bps. LIBOR as of December 31, 2006 was 5.32%.

(2)
Requires monthly payment of interest only.

(3)
Includes applicable extension available at the Operating Partnership's option.

(4)
Loans secured by these eleven Properties are cross-collateralized and cross-defaulted.

(5)
Loans secured by these three Properties are cross-collateralized and cross-defaulted.

(6)
Loans secured by these eleven Properties are cross-collateralized and cross-defaulted.

(7)
Loans secured by these four Properties are cross-collateralized and cross-defaulted.

(8)
Loans secured by these two Properties are cross-collateralized and cross-defaulted.

(9)
Loans secured by these three Properties are cross-collateralized.

(10)
Loans secured by these four Properties are cross-collateralized.

(11)
Simultaneous with the issuance of this loan, the Operating Partnership entered into a $70 million notional amount variable rate swap agreement which is designated as a hedge against this loan. As of December 31, 2006, after including the impacts of this swap, the terms of the loan are effectively $150 million fixed at 3.60% and $70 million variable rate at 5.37%.

(12)
Variable rate loans based on Yen LIBOR plus interest rate spreads ranging from 50 bps to 187.5 bps. Yen LIBOR as of December 31, 2006 was 0.4738%.

(13)
Lender also participates in a percentage of certain gross receipts above a specified base. This threshold was met and additional interest was paid in 2006.

(14)
Requires semi-annual payments of interest only.

(15)
$3,000,000 Credit Facility. As of December 31, 2006, the Credit Facility bears interest at LIBOR + 0.375% and provides for different pricing based upon the Operating Partnership's investment grade rating. As of December 31, 2006, $2.7 billion was available after outstanding borrowings and letter of credits.

(16)
The MOPPRS have an actual maturity of June 15, 2028, but are subject to mandatory redemption on June 15, 2008.

(17)
Loans secured by these five Properties are cross-collateralized and cross-defaulted.

(18)
Debt is denominated in Euros and bears interest at 3 month Euribor + 1.05%. Debt consists of a Euros 269.0 million tranche of which Euros 249.1 million is drawn.

(19)
Our share of consolidated indebtedness was $15,203,980.

(20)
Loans secured by these four Properties are cross-collateralized and cross-defaulted.

(21)
LIBOR + 0.750%, with LIBOR capped at 7.500%.

(22)
LIBOR + 0.650%, with LIBOR capped at 8.500%.

(23)
Our share of joint venture indebtedness was $3,472,228. Our share of indebtedness for joint ventures excludes our share of indebtedness of $79.5 million in joint venture entities in which a non-controlling interest is held by Gallerie Commerciali Italia, an entity which we have a 49% interest.

(24)
Represents the fair market value of interest rate swaps entered into by the Operating Partnership.

(25)
The maturity date shown represents the Anticipated Maturity Date of the loan which is typically 10-20 years earlier than the stated Maturity Date of the loan. Should the loan not be repaid at the Anticipated Repayment Date the applicable interest rate shall increase as specified in the loan agreement.

(26)
Amounts shown in US Dollar Equivalent. Yen equivalent 15,950.7 million

(27)
Debt is denominated in Euros and bears interest at 3 month Euribor + 1.15%. Debt consists of a Euros 255 million tranche which Euros 246.1 million is drawn.

(28)
Debt is denominated in Euros and bears interest at Euribor + 0.650%. Debt consists of a Euros 150 million tranche of which Euros 46.3 million is drawn.

(29)
LIBOR + 0.900%, with LIBOR capped at 8.250%.

(30)
LIBOR + 0.750%, with LIBOR capped at 8.250%.

(31)
Associated with these loans are interest rate swap agreements with a total combined Euro 199.3 million notional amount that effectively fixed these loans at a combined 4.66%.

43



Mortgage and Other Debt on Portfolio Properties
and Investments in Real Estate
As of December 31, 2006
(Dollars in thousands)

    Changes in Mortgages and Other Indebtedness

            The changes in mortgages and other indebtedness for the years ended December 31, 2006, 2005, 2004 are as follows:

 
  2006
  2005
  2004
 
Balance, Beginning of Year   $ 14,106,117   $ 14,586,393   $ 10,266,388  
  Additions during period:                    
    New Loan Originations     2,810,239     2,484,264     4,509,640  
    Loans assumed in acquisitions and consolidations     192,272         1,387,182  
    Net Premium/(Discount)     (5,031 )   (11,328 )   132,905  
  Deductions during period:                    
    Loan Retirements     (1,619,148 )   (2,764,438 )   (1,652,022 )
    Loans Related to Deconsolidations         (100,022 )    
    Amortization of Net (Premiums)/Discounts     (25,784 )   (33,710 )   (14,043 )
    Scheduled Principal Amortization     (64,176 )   (55,042 )   (43,657 )
   
 
 
 
Balance, End of Year   $ 15,394,489   $ 14,106,117   $ 14,586,393  
   
 
 
 

44



Item 3. Legal Proceedings

            On November 15, 2004, the Attorneys General of Massachusetts, New Hampshire and Connecticut filed complaints in their respective state Superior Courts against us and our affiliate, SPGGC, Inc., alleging that the sale of co-branded, bank-issued gift cards sold in certain Properties violated gift certificate statutes and consumer protection laws in those states. Each of these suits seeks injunctive relief, unspecified civil penalties and disgorgement of any fees determined to be improperly charged to consumers. We filed our own actions for declaratory judgment actions in Federal district courts in each of the three states.

            With respect to the New Hampshire litigation, on August 1, 2006, the Federal district court in New Hampshire granted our motion for summary judgment and held that the gift card program that has been in existence since September 1, 2005 is a banking product and state law regulation is preempted by Federal banking laws. However, the Attorney General's appeal of this judgment in our favor in Federal district court in New Hampshire is pending. In February 2007, we entered into a voluntary, no-fault settlement agreement regarding the elements of the New Hampshire action which related to the program that existed before September 1, 2005. This settlement did not have a significant impact on the results of our operations.

            In addition, we are a defendant in three other proceedings relating to the gift card program: Betty Benson and Andrea Nay-Richardson vs. Simon Property Group, Inc., and Simon Property Group, L.P., Superior Court of Cobb County, State of Georgia, Case No.: 04-1-9617-42, filed December 9, 2004; Christopher Lonner vs. Simon Property Group, Inc., Supreme Court of the State of NY, County of Westchester, Case No.: 04-2246, filed February 18, 2004; and Aliza Goldman, individually and on behalf of all others similarly situated vs. Simon Property Group, Inc., Supreme Court of the State of New York, County of Nassau, filed February 7, 2005. Each of these proceedings has been brought as a purported class action and alleges violation of state consumer protection laws, state abandoned property and contract laws or state statutes regarding gift certificates or gift cards and seeks a variety of remedies including unspecified damages and injunctive relief.

            We believe that we have viable defenses under both state and federal laws to the pending gift card actions. Although it is not possible to provide any assurance of the ultimate outcome of any of these pending actions, management does not believe that an adverse outcome would have a material adverse effect on our financial position, results of operations or cash flow.

            As previously disclosed, we were a defendant in a suit brought against us by a partner in a partnership in which we previously held ownership in, Mall of America Associates ("MOAA"). Effective November 2, 2006, all parties agreed to settle the lawsuit and all claims with no settlement payment due by either party. We had most currently been a beneficial interest holder in the operations of MOAA which entitled us the right to receive cash flow distributions and capital transaction proceeds, or approximately a 25% interest in the underlying operations. Concurrently with the settlement of the litigation, the Simon family partner in MOAA sold its entire interest in MOAA. We received $102.2 million of capital transaction proceeds related to this transaction, terminating our beneficial interests, which resulted in a gain of $86.5 million.

            We are involved in various other legal proceedings that arise in the ordinary course of our business. We believe that such routine litigation, claims and administrative proceedings will not have a material adverse impact on our financial position or our results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated.


Item 4. Submission of Matters to a Vote of Security Holders

            None.

45



Part II

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

    Market Information

            Our common stock trades on the New York Stock Exchange under the symbol "SPG". The quarterly price range on the NYSE for the shares and the distributions declared per share for each quarter in the last two fiscal years are shown below:

 
  High
  Low
  Close
  Declared
Distribution

2006                        
1st Quarter   $ 88.48   $ 76.21   $ 84.14   $ 0.76
2nd Quarter     84.88     76.14     82.94     0.76
3rd Quarter     92.35     81.19     90.62     0.76
4th Quarter     104.08     89.75     101.29     0.76

2005

 

 

 

 

 

 

 

 

 

 

 

 
1st Quarter   $ 65.60   $ 58.29   $ 60.58   $ 0.70
2nd Quarter     74.06     59.29     72.49     0.70
3rd Quarter     80.97     70.52     74.12     0.70
4th Quarter     79.99     65.75     76.63     0.70

            There is no established public trading market for Simon Property's Class B common stock or Class C common stock. Distributions per share of the Class B and Class C common stock are identical to the common stock.

    Holders

            The number of holders of record of common stock outstanding was 2,207 as of December 31, 2006. The Class B common stock is held entirely by a voting trust to which Melvin Simon, Herbert Simon, David Simon and certain of their affiliates are parties and is exchangeable on a one-for-one basis into shares of common stock, and the Class C common stock is held entirely by NID Corporation, the successor corporation of Edward J. DeBartolo Corporation, and is also exchangeable on a one-for-one basis into shares of common stock.

    Distributions

            Simon Property qualifies as a REIT under the Code. We are required to pay a minimum level of dividends to maintain our status as a REIT. Our dividends and limited partner distributions typically exceed our net income generated in any given year primarily because of depreciation, which is a "non-cash" expense. Our future dividends and the distributions of the Operating Partnership will be determined by the Board based on actual results of operations, cash available for dividends and limited partner distributions, and what may be required to maintain our status as a REIT. The Board declared and we paid a common stock dividend of $0.76 per share in the fourth quarter of 2006.

            Simon Property offers an Automatic Dividend Reinvestment Plan for its common shares that allows stockholders, at their election, to acquire additional shares by automatically reinvesting cash dividends. Shares are acquired pursuant to the plan at a price equal to the prevailing market price of such shares, without payment of any brokerage commission or service charge.

    Unregistered Sales of Equity Securities

            During the fourth quarter of 2006, we issued 8,000,000 shares of Series K Variable Rate Redeemable Preferred Stock (Series K Preferred Stock) to a single institutional investor for cash proceeds in the amount of $200.0 million. We used the proceeds to fund the redemption of the Series F Cumulative Redeemable Preferred Stock. The Series K Preferred Stock was not registered under the Securities Act of 1933, as amended, in reliance upon the exemption contained in Section 4(2) regarding private transactions.

46


    Issuances Under Equity Compensation Plans

            For information regarding the securities authorized for issuance under our equity compensation plans, see Item 12 to this report.

    Issuer Purchases of Equity Securities

            On May 11, 2006, the Board authorized us to repurchase up to 6,000,000 shares of our common stock subject to a maximum aggregate purchase price of $250 million over the next twelve months as market conditions warrant. We may repurchase the shares in the open market or in privately negotiated transactions. There were no purchases under this program during the fourth quarter of 2006.


Item 6. Selected Financial Data

            The information required by this item is incorporated herein by reference to the Selected Financial Data section of the 2006 Annual Report to Stockholders filed as Exhibit 13.1 to this Form 10-K.


Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

            The information required by this item is incorporated herein by reference to the Management's Discussion and Analysis of Financial Condition and Results of Operations section of Simon Property's 2006 Annual Report to Stockholders filed as Exhibit 13.1 to this Form 10-K.


Item 7A. Qualitative and Quantitative Disclosure About Market Risk

            The information required by this item is incorporated herein by reference to the Management's Discussion and Analysis of Financial Condition and Results of Operations section of Simon Property's 2006 Annual Report to Stockholders under the caption "Liquidity and Capital Resources — Market Risk," filed as Exhibit 13.1 to this Form 10-K.


Item 8. Financial Statements and Supplementary Data

            Reference is made to the Index to Financial Statements contained in Item 15.


Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

            None.


Item 9A. Controls and Procedures

            Evaluation of Disclosure Controls and Procedures.    We carried out an evaluation under the supervision and with participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, our management, including the chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective as of December 31, 2006.

            Management's Report on Internal Control over Financial Reporting.    Our management's report on internal control over financial reporting is set forth in our 2006 Annual Report to Stockholders as the last page of Management's Discussion and Analysis of Financial Condition and Results of Operation, filed as Exhibit 13.1 to this Form 10-K and is incorporated herein by reference.

            Changes in Internal Control Over Financial Reporting.    There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the fourth quarter of 2006 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


Item 9B. Other Information

            None.

47



Part III

Item 10. Directors, Executive Officers and Corporate Governance

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its 2007 annual meeting of stockholders to be filed with the Commission pursuant to Regulation 14A and the information included under the caption "Executive Officers of the Registrants" in Part I hereof.


Item 11. Executive Compensation

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its 2007 annual meeting of stockholders to be filed with the Commission pursuant to Regulation 14A.


Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its 2007 annual meeting of stockholders to be filed with the Commission pursuant to Regulation 14A.


Item 13. Certain Relationships and Related Transactions and Director Independence

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its 2007 annual meeting of stockholders to be filed with the Commission pursuant to Regulation 14A.


Item 14. Principal Accountant Fees and Services

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its 2007 annual meeting of stockholders to be filed with the Commission pursuant to Regulation 14A.

48



Part IV

Item 15. Exhibits and Financial Statement Schedules

(1)
Consolidated Financial Statements

            Simon Property Group, Inc. and Subsidiaries' consolidated financial statements and independent registered public accounting firm's reports are included in our 2006 Annual Report to Stockholders, filed as Exhibit 13.1 to this Form 10-K and are incorporated herein by reference.

 
   
  Page No.
(2)   Financial Statement Schedule    

 

 

Simon Property Group, Inc. and Subsidiaries Schedule III — Schedule of Real Estate and Accumulated Depreciation

 

54

 

 

Notes to Schedule III

 

61

(3)

 

Exhibits

 

 

 

 

The Exhibit Index attached hereto is hereby incorporated by reference to this Item.

 

52

49



SIGNATURES

            Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

SIMON PROPERTY GROUP, INC.

 

By

 

    /s/  
DAVID SIMON      
David Simon
Chief Executive Officer

February 28, 2007

            Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature

  Capacity

  Date


 

 

 

 

 
    /s/  DAVID SIMON      
David Simon
  Chief Executive Officer
and Director (Principal Executive Officer)
  February 28, 2007

    /s/  
HERBERT SIMON      
Herbert Simon

 

Co-Chairman of the Board of Directors

 

February 28, 2007

    /s/  
MELVIN SIMON      
Melvin Simon

 

Co-Chairman of the Board of Directors

 

February 28, 2007

    /s/  
RICHARD S. SOKOLOV      
Richard S. Sokolov

 

President, Chief Operating Officer and Director

 

February 28, 2007

    /s/  
BIRCH BAYH      
Birch Bayh

 

Director

 

February 28, 2007

    /s/  
MELVYN E. BERGSTEIN      
Melvyn E. Bergstein

 

Director

 

February 28, 2007

/s/  
LINDA WALKER BYNOE      
Linda Walker Bynoe

 

Director

 

February 28, 2007

/s/  
PIETER S. VAN DEN BERG      
Pieter S. van den Berg

 

Director

 

February 28, 2007
         

50



/s/  
REUBEN S. LEIBOWITZ      
Reuben S. Leibowitz

 

Director

 

February 28, 2007

/s/  
FREDRICK W. PETRI      
Fredrick W. Petri

 

Director

 

February 28, 2007

/s/  
J. ALBERT SMITH, JR.      
J. Albert Smith, Jr.

 

Director

 

February 28, 2007

/s/  
KAREN N. HORN      
Karen N. Horn

 

Director

 

February 28, 2007

/s/  
M. DENISE DEBARTOLO YORK      
M. Denise DeBartolo York

 

Director

 

February 28, 2007

/s/  
STEPHEN E. STERRETT      
Stephen E. Sterrett

 

Executive Vice President and Chief Financial Officer (Principal Financial Officer)

 

February 28, 2007

    /s/  
JOHN DAHL      
John Dahl

 

Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

 

February 28, 2007

51


Exhibits

   
2   Agreement and Plan of Merger, dated as of June 20, 2004, by and among Simon Property Group, Inc., Simon Property Group, L.P., Simon Acquisition I, LLC, Simon Acquisition II, LLC, Chelsea Property Group, Inc., and CPG Partners, L.P. (incorporated by reference to Exhibit 99.2 to the Registrant's Current Report on Form 8-K filed June 22, 2004).
3.1   Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 of the Form 8-K filed by the Registrant on October 9, 1998).
3.2   Restated By-laws of the Registrant (incorporated by reference to Exhibit 3.1 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002).
3.3   Certificate of Powers, Designations, Preferences and Rights of the 7.00% Series C Cumulative Convertible Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.1 of the Registrant's Form 10-Q filed on November 15, 1999).
3.3a   Certificate of Correction Filed to Correct Certain Errors in Certificate of Powers, Designations, Preferences and Rights of the 7.00% Series C Cumulative Convertible Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.1a of the Registrant's Form 10-Q filed on November 15, 1999).
3.4   Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series D Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.2 of the Registrant's Form 10-Q filed on November 15, 1999).
3.4a   Certificate of Correction Filed to Correct Certain Errors in Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series D Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.2a of the Registrant's Form 10-Q filed on November 15, 1999).
3.6   Certificate of Powers, Designations, Preferences and Rights of the 7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-4 filed by the Registrant on May 9, 2001 (Reg. No. 333-60526)).
3.7   Certificate of Powers, Designations, Preferences and Rights of the 6% Series I Convertible Perpetual Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed October 20, 2004).
3.8   Certificate of Powers, Designations, Preferences and Rights of the 83/8% Series J Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed October 20, 2004).
9.1   Second Amended and Restated Voting Trust Agreement, Voting Agreement and Proxy dated as of March 1, 2004 between Melvin Simon & Associates, Inc., on the one hand and Melvin Simon, Herbert Simon, and David Simon on the other hand (incorporated by reference to Exhibit 9.1 of the Registrant's Quarterly Report on Form 10-Q filed on May 10, 2004).
9.2   Voting Trust Agreement, Voting Agreement and Proxy dated as of March 1, 2004 between David Simon, Melvin Simon and Herbert Simon (incorporated by reference to Exhibit 9.2 of the Registrant's Quarterly Report on Form 10-Q filed on May 10, 2004).
10.1   Credit Agreement, dated as of October 12, 2004, among Simon Property Group, L.P., the Lenders named therein, and the Co-Agents named therein (incorporated by reference to Exhibit 10 of the Registrant's Quarterly Report on Form 10-Q filed on November 8, 2004).
10.2   $3,000,000,000 Credit Agreement, dated as of December 15, 2005, among Simon Property Group, L.P., the Institutions named therein as Lenders and the Institutions named therein as Co-Agents (incorporated by reference to Exhibit 99.2 of Simon Property Group, L.P.'s Current Report on Form 8-K filed on December 20, 2005).
10.3   Form of the Indemnity Agreement between the Registrant and its directors and officers (incorporated by reference to Exhibit 10.7 of the Form S-4 filed by the Registrant on August 13, 1998 (Reg. No. 333-61399) ).
10.4   Registration Rights Agreement, dated as of September 24, 1998, by and among the Registrant and the persons named therein. (incorporated by reference to Exhibit 4.4 of the Form 8-K filed by the Registrant on October 9, 1998).
10.5   Registration Rights Agreement, dated as of August 27, 1999 by and among the Registrant and the persons named therein (incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-3 filed March 24, 2004 (Reg. No. 333-113884)).
10.6   Registration Rights Agreement, dated as of November 14, 1997, by and between O'Connor Retail Partners, L.P. and Simon DeBartolo Group, Inc. (incorporated by reference to Exhibit 4.8 to the Registration Statement on Form S-3 filed December 7, 2001 (Reg. No. 333-74722)).
10.7*   Simon Property Group, L.P. 1998 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10.1 to the Form 8-K dated October 5, 2006).
10.8*   Form of Nonqualified Stock Option Award Agreement under the Simon Property Group, L.P. 1998 Stock Incentive Plan (incorporated by reference to this same Exhibit number of the 2004 Form 10-K filed by the Registrant).
10.9*   Form of Performance-Based Restricted Stock Award Agreement under the Simon Property Group, L.P. 1998 Stock Incentive Plan.
     

52


10.10*   Form of Non-Employee Director Restricted Stock Award Agreement under the Simon Property Group, L.P. 1998 Stock Incentive Plan (incorporated by reference to this same Exhibit number of the 2004 Form 10-K filed by the Registrant).
10.11*   Employment Agreement between Richard S. Sokolov, the Registrant, and Simon Property Group Administrative Services Partnership, L.P. Dated March 26, 1996 (incorporated by reference to Exhibit 10.12 of the 2000 Form 10-K filed by the Registrant).
10.12*   Description of Director and Executive Compensation Agreements.
10.16   Voting Agreement dated as of June 20, 2004 among the Registrant, Simon Property Group, L.P., and certain holders of shares of common stock of Chelsea Property Group, Inc. and/or common units of CPG Partners, L.P. (incorporated by reference to Exhibit 99.3 to the Registrant's Current Report on Form 8-K filed June 22, 2004).
12.1   Statement regarding computation of ratios.
13.1   Selected Financial Data, Management's Discussion and Analysis of Financial Condition and Results of Operations and Financial Statements of the Registrant as contained in the Registrant's 2006 Annual Report to Stockholders.
21.1   List of Subsidiaries of the Company.
23.1   Consent of Ernst & Young LLP.
31.1   Certification by the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2   Certification by the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32   Certification by the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*
Represents a management contract, or compensatory plan, contract or arrangement required to be filed pursuant to Regulation S-K.

53


    SCHEDULE III

    Simon Property Group, Inc. and Subsidiaries
    Real Estate and Accumulated Depreciation
    December 31, 2006
    (Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition (Note 3)

  Gross Amounts At Which
Carried At Close of Period

   
   
 
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

 
Regional Malls                                                            
Alton Square, Alton, IL   $   $ 154   $ 7,641   $   $ 10,733   $ 154   $ 18,374   $ 18,528   $ 8,640   1993 (Note 4 )
Anderson Mall, Anderson, SC     28,635     1,712     15,227     1,363     9,753     3,075     24,980     28,055     11,301   1972  
Arsenal Mall, Watertown, MA     32,759     15,505     47,680         4,000     15,505     51,680     67,185     10,370   1999 (Note 4 )
Bangor Mall, Bangor, ME     22,038     5,478     59,740         4,953     5,478     64,693     70,171     10,574   2004 (Note 5 )
Barton Creek Square, Austin, TX         2,903     20,929     7,983     56,732     10,886     77,661     88,547     30,532   1981  
Battlefield Mall, Springfield, MO     97,839     3,919     27,231     3,225     59,011     7,144     86,242     93,386     36,191   1970  
Bay Park Square, Green Bay, WI         6,358     25,623     4,133     21,884     10,491     47,507     57,998     14,380   1980  
Bowie Town Center, Bowie, MD         2,710     65,044     235     4,995     2,945     70,039     72,984     15,244   2001  
Boynton Beach Mall, Boynton Beach, FL         22,240     78,804     4,636     22,671     26,876     101,475     128,351     26,972   1985  
Brea Mall, Brea, CA         39,500     209,202         19,297     39,500     228,499     267,999     53,969   1998 (Note 4 )
Broadway Square, Tyler, TX         11,470     32,431         12,750     11,470     45,181     56,651     15,683   1994 (Note 4 )
Brunswick Square, East Brunswick, NJ     85,659     8,436     55,838         25,583     8,436     81,421     89,857     25,371   1973  
Burlington Mall, Burlington, MA         46,600     303,618         51,960     46,600     355,578     402,178     74,600   1998 (Note 4 )
Castleton Square, Indianapolis, IN         26,250     98,287     7,434     37,437     33,684     135,724     169,408     39,877   1972  
Century III Mall, West Mifflin, PA     84,525     17,380     102,364     10     7,932     17,390     110,296     127,686     49,685   1979  
Charlottesville Fashion Square, Charlottesville, VA             54,738         12,549         67,287     67,287     18,336   1997 (Note 4 )
Chautauqua Mall, Lakewood, NY         3,257     9,641         15,918     3,257     25,559     28,816     9,125   1971  
Chesapeake Square, Chesapeake, VA     72,658     11,534     70,461         6,552     11,534     77,013     88,547     28,488   1989  
Cielo Vista Mall, El Paso, TX     47,433     867     14,447     608     41,903     1,475     56,350     57,825     24,626   1974  
College Mall, Bloomington, IN     43,340     1,003     16,245     722     35,821     1,725     52,066     53,791     20,919   1965  
Columbia Center, Kennewick, WA         18,285     66,580         15,334     18,285     81,914     100,199     22,503   1987  
Copley Place, Boston, MA     171,126     147     378,045         47,287     147     425,332     425,479     52,662   2002 (Note 4 )
Coral Square, Coral Springs, FL     85,740     13,556     93,630         3,594     13,556     97,224     110,780     35,736   1984  
Cordova Mall, Pensacola, FL         18,626     73,091     7,321     24,542     25,947     97,633     123,580     22,512   1998 (Note 4 )
Cottonwood Mall, Albuquerque, NM         10,122     69,958         1,721     10,122     71,679     81,801     26,618   1996  
Crossroads Mall, Omaha, NE     42,451     639     30,658     409     35,519     1,048     66,177     67,225     22,628   1994 (Note 4 )
Crystal River Mall, Crystal River, FL     15,341     5,661     20,241         5,024     5,661     25,265     30,926     7,647   1990  
DeSoto Square, Bradenton, FL     64,153     9,011     52,675         7,592     9,011     60,267     69,278     18,764   1973  
Edison Mall, Fort Myers, FL         11,529     107,350         22,400     11,529     129,750     141,279     31,249   1997 (Note 4 )
Fashion Mall at Keystone, Indianapolis, IN     57,513         120,579         34,425         155,004     155,004     38,215   1997 (Note 4 )
Firewheel Town Center, Garland, TX         11,551     82,627         10,227     11,551     92,854     104,405     5,116   2004  
Forest Mall, Fond Du Lac, WI     17,000     728     4,491         8,082     728     12,573     13,301     6,030   1973  
Forum Shops at Caesars, The, Las Vegas, NV     541,935         276,378         191,380         467,758     467,758     76,070   1992  

54


SCHEDULE III

Simon Property Group, Inc. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2006
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition (Note 3)

  Gross Amounts At Which
Carried At Close of Period

   
   
 
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

 
Great Lakes Mall, Mentor, OH     12,302   100,362     14,777   12,302   115,139   127,441   34,062   1961  
Greenwood Park Mall, Greenwood, IN   82,660   2,423   23,445   5,275   78,371   7,698   101,816   109,514   36,796   1979  
Gulf View Square, Port Richey, FL     13,690   39,991   2,023   18,516   15,713   58,507   74,220   18,331   1980  
Haywood Mall, Greenville, SC     11,585   133,893   6   18,093   11,591   151,986   163,577   45,600   1998 (Note 4 )
Independence Center, Independence, MO     5,042   45,798     28,624   5,042   74,422   79,464   24,876   1994 (Note 4 )
Ingram Park Mall, San Antonio, TX   79,499   733   17,163   169   17,617   902   34,780   35,682   17,276   1979  
Irving Mall, Irving, TX     6,737   17,479   2,533   35,362   9,270   52,841   62,111   28,006   1971  
Jefferson Valley Mall, Yorktown Heights, NY     4,868   30,304     22,380   4,868   52,684   57,552   21,656   1983  
Knoxville Center, Knoxville, TN   60,201   5,006   21,617   3,712   34,229   8,718   55,846   64,564   23,340   1984  
La Plaza Mall, McAllen, TX     1,375   9,828   6,569   34,117   7,944   43,945   51,889   16,827   1976  
Lafayette Square, Indianapolis, IN     14,251   54,589   50   12,431   14,301   67,020   81,321   34,582   1968  
Laguna Hills Mall, Laguna Hills, CA     27,928   55,446     7,575   27,928   63,021   90,949   17,719   1997 (Note 4 )
Lakeline Mall, Austin, TX   64,999   10,088   81,568   14   2,883   10,102   84,451   94,553   27,834   1995  
Lenox Square, Atlanta, GA     38,213   492,411     40,709   38,213   533,120   571,333   121,013   1998 (Note 4 )
Lima Mall, Lima, OH     7,910   35,338     8,854   7,910   44,192   52,102   15,760   1965  
Lincolnwood Town Center, Lincolnwood, IL     7,907   63,480   28   6,759   7,935   70,239   78,174   29,933   1990  
Livingston Mall, Livingston, NJ     30,200   105,250     10,925   30,200   116,175   146,375   28,696   1998 (Note 4 )
Longview Mall, Longview, TX   31,814   259   3,567   124   7,120   383   10,687   11,070   4,796   1978  
Mall of Georgia, Mill Creek, GA   191,520   47,492   359,042     459   47,492   359,501   406,993   67,521   1999 (Note 5 )
Maplewood Mall, Minneapolis, MN     17,119   80,758     9,779   17,119   90,537   107,656   14,117   2002 (Note 4 )
Markland Mall, Kokomo, IN   22,509     7,568     7,891     15,459   15,459   7,435   1968  
McCain Mall, N. Little Rock, AR   22,148     9,515     10,255     19,770   19,770   13,902   1973  
Melbourne Square, Melbourne, FL     15,762   55,891   4,160   23,855   19,922   79,746   99,668   20,272   1982  
Menlo Park Mall, Edison, NJ     65,684   223,252     27,208   65,684   250,460   316,144   67,146   1997 (Note 4 )
Midland Park Mall, Midland, TX   32,860   687   9,213     10,467   687   19,680   20,367   10,975   1980  
Miller Hill Mall, Duluth, MN     2,537   18,092     21,927   2,537   40,019   42,556   21,647   1973  
Montgomery Mall, Montgomeryville, PA   92,508   27,105   86,915     2,889   27,105   89,804   116,909   15,896   2004 (Note 5 )
Muncie Mall, Muncie, IN     172   5,776   52   26,344   224   32,120   32,344   12,938   1970  
Nanuet Mall, Nanuet, NY     27,310   162,993     3,064   27,310   166,057   193,367   60,797   1998 (Note 4 )
North East Mall, Hurst, TX     128   12,966   19,010   142,405   19,138   155,371   174,509   47,806   1971  
Northfield Square Mall, Bourbonnais, IL   30,382   362   53,396     879   362   54,275   54,637   27,133   2004 (Note 5 )
Northgate Mall, Seattle, WA     24,392   115,992     56,894   24,392   172,886   197,278   38,071   1987  
Northlake Mall, Atlanta, GA   69,450   33,400   98,035     3,817   33,400   101,852   135,252   34,147   1998 (Note 4 )
Northwoods Mall, Peoria, IL     1,185   12,779   2,451   35,952   3,636   48,731   52,367   23,230   1983  
Oak Court Mall, Memphis, TN     15,673   57,304     7,940   15,673   65,244   80,917   18,163   1997 (Note 4 )
Ocean County Mall, Toms River, NJ     20,404   124,945     21,436   20,404   146,381   166,785   33,055   1998 (Note 4 )

55


SCHEDULE III

Simon Property Group, Inc. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2006
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition (Note 3)

  Gross Amounts At Which
Carried At Close of Period

   
   
 
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

 
Orange Park Mall, Orange Park, FL     12,998   65,121     36,972   12,998   102,093   115,091   30,684   1994 (Note 4 )
Orland Square, Orland Park, IL     35,514   129,906     18,978   35,514   148,884   184,398   40,219   1997 (Note 4 )
Oxford Valley Mall, Langhorne, PA   79,924   24,544   100,287     3,637   24,544   103,924   128,468   34,884   2003 (Note 4 )
Paddock Mall, Ocala, FL     11,198   39,727     8,657   11,198   48,384   59,582   14,057   1980  
Palm Beach Mall, West Palm Beach, FL   52,567   11,962   112,437     35,228   11,962   147,665   159,627   63,467   1967  
Penn Square Mall, Oklahoma City, OK   68,258   2,043   155,958     24,824   2,043   180,782   182,825   37,112   2002 (Note 4 )
Pheasant Lane Mall, Nashua, NH     3,902   155,068   528   9,048   4,430   164,116   168,546   38,549   2004 (Note 5 )
Phipps Plaza, Atlanta, GA     19,200   210,610     18,565   19,200   229,175   248,375   54,330   1998 (Note 4 )
Plaza Carolina, Carolina, PR   247,903   15,493   279,560     2,285   15,493   281,845   297,338   25,486   2004 (Note 4 )
Port Charlotte Town Center, Port Charlotte, FL   52,007   5,471   58,570     13,802   5,471   72,372   77,843   23,149   1989  
Prien Lake Mall, Lake Charles, LA     1,842   2,813   3,091   38,428   4,933   41,241   46,174   15,262   1972  
Raleigh Springs Mall, Memphis, TN     9,137   28,604     12,369   9,137   40,973   50,110   23,705   1971  
Richardson Square Mall, Richardson, TX     4,532   6,329   1,268   11,212   5,800   17,541   23,341   11,326   1977  
Richmond Town Square, Richmond Heights, OH   46,156   2,600   12,112     60,930   2,600   73,042   75,642   29,417   1966  
River Oaks Center, Calumet City, IL     30,884   101,224