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TABLE OF CONTENTS

SIMON PROPERTY GROUP

EARNINGS RELEASE & SUPPLEMENTAL INFORMATION
UNAUDITED FOURTH QUARTER 2018

TABLE OF CONTENTS

EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 2018	PAGE
Earnings Release(1)	2-13
Overview
The Company	14
Stock Information, Credit Ratings and Senior Unsecured Debt Covenants	15
Financial Data
Selected Financial and Equity Information	16
Net Operating Income (NOI) Composition	17
Net Operating Income Overview	18
Reconciliations of Non-GAAP Financial Measures	19
Consolidated Net Income to NOI	19
FFO of the Operating Partnership to Funds Available for Distribution (Our Share)	20
Other Income, Other Expense and Capitalized Interest	21
Operational Data
U.S. Malls and Premium Outlets Operating Information	22
The Mills and International Operating Information	23
U.S. Malls and Premium Outlets Lease Expirations	24
U.S. Malls and Premium Outlets Top Tenants	25
Development Activity
Capital Expenditures	26
Development Activity Summary	27-28
Development Activity Report	29-30
Densification Projects	31
Balance Sheet Information
Common and Preferred Stock Information	32
Changes in Common Share and Limited Partnership Unit Ownership	32
Preferred Stock/Units Outstanding	32
Credit Profile	33
Summary of Indebtedness	34
Total Debt Amortization and Maturities by Year (Our Share)	35
Property and Debt Information	36-45
Other
Non-GAAP Pro-Rata Financial Information	46-49

(1)

Includes reconciliation of consolidated net income to funds from operations.

4Q 2018 SUPPLEMENTAL 1

EARNINGS RELEASE

Contacts:		FOR IMMEDIATE RELEASE
Tom Ward	317-685-7330 Investors
Les Morris	317-263-7711 Media

SIMON PROPERTY GROUP REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2018 RESULTS AND RAISES QUARTERLY DIVIDEND

INDIANAPOLIS, February 1, 2019 - Simon, a global leader in premier shopping, dining and entertainment destinations, today reported results for the quarter and twelve months ended December 31, 2018.

RESULTS FOR THE YEAR

•

Net income attributable to common stockholders was $2.437 billion, or $7.87 per diluted share, as compared to $1.945 billion, or $6.24 per diluted share in 2017, a 26.1% increase per diluted share.

•

Funds from Operations ("FFO") was $4.325 billion, or $12.13 per diluted share, as compared to $4.021 billion, or $11.21 per diluted share in 2017, an 8.2% increase per diluted share.

RESULTS FOR THE QUARTER

•

Net income attributable to common stockholders was $712.8 million, or $2.30 per diluted share, as compared to $571.1 million, or $1.84 per diluted share in 2017, a 25.0% increase per diluted share.

•

FFO was $1.151 billion, or $3.23 per diluted share, as compared to $1.115 billion, or $3.12 per diluted share, in the prior year period, an increase of 3.5% per diluted share.

"This was an excellent quarter and year for Simon Property Group, capped off by our twenty-fifth anniversary as a public company in December. Over that 25-year period, we are proud to have delivered a total return to shareholders of 2,752%," said David Simon, Chairman and CEO. "In 2018, we opened two new shopping destinations; delivered five significant property transformations and expansions; started construction on several redevelopments of former department store spaces; and importantly, our reported FFO per share for the year beat the top end of our initial guidance, and our 2018 dividend was 10.5% higher than in 2017."

4Q 2018 SUPPLEMENTAL 2

EARNINGS RELEASE

U.S. MALLS AND PREMIUM OUTLETS OPERATING STATISTICS

•

Reported retailer sales per square foot was $661, an increase of 5.3%, for the trailing 12-months ended December 31, 2018.

•

Occupancy was 95.9% at December 31, 2018, compared to 95.6% at December 31, 2017.

•

Base minimum rent per square foot was $54.18 at December 31, 2018.

•

Leasing spread per square foot for the trailing 12-months ended December 31, 2018 was $7.75, an increase of 14.3%.

PORTFOLIO NET OPERATING INCOME ("NOI") AND COMPARABLE PROPERTY NOI

Total portfolio NOI growth for the 12-months ended December 31, 2018 was 3.7%. Total portfolio NOI includes NOI from comparable properties, new developments, redevelopments, expansions, acquisitions, international properties and our share of NOI from investments. Comparable property NOI growth for the 12-months ended December 31, 2018 was 2.3%.

DIVIDENDS

Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.05 per share. This is a 5.1% increase year-over-year. The dividend will be payable on February 28, 2019 to shareholders of record on February 14, 2019.

Simon's Board of Directors also declared the quarterly dividend on its 8³/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on March 29, 2019 to shareholders of record on March 15, 2019.

4Q 2018 SUPPLEMENTAL 3

EARNINGS RELEASE

DEVELOPMENT ACTIVITY

During the quarter, the 140,000 square-foot expansion of Toronto Premium Outlets opened adding enhanced amenities, elevated food offerings and more than 40 new, exciting brands. Simon owns 50% of this center. Also during the quarter, the 45,000 square-foot, phase III expansion of Johor Premium Outlets (Johor, Malaysia) opened. Simon owns 50% of this center.

Construction continues on three new international development projects including:

•

Queretaro Premium Outlets (Queretaro, Mexico); scheduled to open in summer 2019. Simon owns a 50% interest in this project.

•

Malaga Designer Outlet (Malaga, Spain); scheduled to open in fall 2019. Simon owns a 46% interest in this project.

•

Cannock Designer Outlet (Cannock, United Kingdom); scheduled to open in spring 2020. Simon owns a 20% interest in this project.

Construction also continues on other significant redevelopment and expansion projects including The Shops at Riverside (Hackensack, NJ), Southdale Center (Edina (Minneapolis), MN), Northshore Mall (Peabody (Boston), MA) and Paju Premium Outlets (Seoul, South Korea).

Construction also started on five significant redevelopment projects of former department store spaces at Broadway Square, Cape Cod Mall, Midland Park Mall, Ocean County Mall and Phipps Plaza.

4Q 2018 SUPPLEMENTAL 4

EARNINGS RELEASE

FINANCING ACTIVITY

During 2018, the Company closed on 22 mortgage loans totaling approximately $3.2 billion, (U.S. dollar equivalent), of which Simon's share is approximately $1.3 billion. The weighted average interest rate and weighted average term on these loans is 3.69% and 8.1 years, respectively.

As of December 31, 2018, Simon had more than $7.5 billion of liquidity consisting of cash on hand, including its share of joint venture cash, and available capacity under its revolving credit facilities.

COMMON STOCK REPURCHASE PROGRAM

During the quarter ended December 31, 2018, the Company repurchased 286,947 shares of its common stock. The Company also redeemed 405,485 Limited Partnership units in cash.

2019 GUIDANCE

The Company currently estimates net income to be within a range of $7.30 to $7.40 per diluted share for the year ending December 31, 2019 and that FFO will be within a range of $12.30 to $12.40 per diluted share.

The following table provides the reconciliation for the expected range of estimated net income attributable to common stockholders per diluted share to estimated FFO per diluted share:

For the year ending December 31, 2019

	LOW END		HIGH END
Estimated net income attributable to common stockholders per diluted share	$	7.30	$	7.40
Depreciation and amortization including Simon's share of unconsolidated entities		5.00		5.00
Estimated FFO per diluted share	$	12.30	$	12.40

4Q 2018 SUPPLEMENTAL 5

EARNINGS RELEASE

CONFERENCE CALL

Simon will hold a conference call to discuss the quarterly financial results today at 8:30 a.m. Eastern Time, Friday, February 1, 2019. A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com. An audio replay of the conference call will be available until February 8, 2019. To access the audio replay, dial 1-855-859-2056 (international 404-537-3406) passcode 1675707.

SUPPLEMENTAL MATERIALS AND WEBSITE

Supplemental information on our fourth quarter 2018 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.

We routinely post important information online on our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures. Any information accessed through our website is not incorporated by reference into, and is not a part of, this document.

NON-GAAP FINANCIAL MEASURES

This press release includes FFO, FFO per share, portfolio net operating income growth and comparable property net operating income growth, which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this press release and in Simon's supplemental information for the quarter. FFO and comparable property net operating income growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs.

4Q 2018 SUPPLEMENTAL 6

EARNINGS RELEASE

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained, and it is possible that the Company's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: changes in economic and market conditions that may adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact, if any, of the United Kingdom's exit from the European Union; changes to applicable laws or regulations or the interpretation thereof; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; general risks related to real estate investments, including the illiquidity of real estate investments; the impact of our substantial indebtedness on our future operations; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in the value of our investments in foreign entities; our ability to hedge interest rate and currency risk; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks relating to our joint venture properties; environmental liabilities; changes in insurance costs, the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; natural disasters; the potential for terrorist activities; and the loss of key management personnel. The Company discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in its periodic reports, but except as required by law, the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

ABOUT SIMON

Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE:SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. For more information, visit simon.com.

4Q 2018 SUPPLEMENTAL 7

EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)

	FOR THE THREE MONTHS ENDED DECEMBER 31,				FOR THE TWELVE MONTHS ENDED DECEMBER 31,
	2018		2017		2018		2017
REVENUE:
Minimum rent	$	906,730	$	880,475	$	3,488,522	$	3,440,009
Overage rent		57,656		52,870		162,189		147,471
Tenant reimbursements		381,485		386,767		1,520,340		1,532,923
Management fees and other revenues		30,780		30,400		116,286		121,259
Other income		84,092		77,180		370,582		296,978
Total revenue		1,460,743		1,427,692		5,657,919		5,538,640
EXPENSES:
Property operating		115,216		112,951		450,636		443,177
Depreciation and amortization		329,145		325,187		1,282,454		1,275,452
Real estate taxes		112,790		107,976		457,740		440,003
Repairs and maintenance		26,081		24,247		99,588		96,900
Advertising and promotion		43,262		42,416		151,241		150,865
(Recovery of) provision for credit losses		(1,284)		539		12,631		11,304
Home and regional office costs		30,584		24,243		136,677		135,150
General and administrative		10,830		11,883		46,543		51,972
Other		40,030		28,798		109,322		131,477
Total operating expenses		706,654		678,240		2,746,832		2,736,300
OPERATING INCOME BEFORE OTHER ITEMS		754,089		749,452		2,911,087		2,802,340
Interest expense		(204,341)		(204,986)		(815,923)		(809,393)
Loss on extinguishment of debt		—		—		—		(128,618)
Income and other taxes		(10,422)		(6,362)		(36,898)		(23,343)
Income from unconsolidated entities		149,987		123,059		475,250		400,270
Gain (loss) upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net		143,879		(1,342)		288,827		3,647
CONSOLIDATED NET INCOME		833,192		659,821		2,822,343		2,244,903
Net income attributable to noncontrolling interests		119,562		87,871		382,285		296,941
Preferred dividends		834		834		3,337		3,337
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	712,796	$	571,116	$	2,436,721	$	1,944,625
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Net income attributable to common stockholders	$	2.30	$	1.84	$	7.87	$	6.24

4Q 2018 SUPPLEMENTAL 8

EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)

	DECEMBER 31, 2018		DECEMBER 31, 2017
ASSETS:
Investment properties, at cost	$	37,092,670	$	36,393,464
Less — accumulated depreciation		12,884,539		11,935,949
		24,208,131		24,457,515
Cash and cash equivalents		514,335		1,482,309
Tenant receivables and accrued revenue, net		763,815		742,672
Investment in unconsolidated entities, at equity		2,220,414		2,266,483
Investment in Klépierre, at equity		1,769,488		1,934,676
Deferred costs and other assets		1,210,040		1,373,983
Total assets	$	30,686,223	$	32,257,638
LIABILITIES:
Mortgages and unsecured indebtedness	$	23,305,535	$	24,632,463
Accounts payable, accrued expenses, intangibles, and deferred revenues		1,316,861		1,269,190
Cash distributions and losses in unconsolidated entities, at equity		1,536,111		1,406,378
Other liabilities		500,597		520,363
Total liabilities		26,659,104		27,828,394
Commitments and contingencies
Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests in properties		230,163		190,480
EQUITY:
Stockholders' Equity
Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):
Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847		42,748		43,077
Common stock, $0.0001 par value, 511,990,000 shares authorized, 320,411,571 and 320,322,774 issued and outstanding, respectively		32		32
Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding		—		—
Capital in excess of par value		9,700,418		9,614,748
Accumulated deficit		(4,893,069)		(4,782,173)
Accumulated other comprehensive loss		(126,017)		(110,453)
Common stock held in treasury, at cost, 11,402,103 and 9,163,920 shares, respectively		(1,427,431)		(1,079,063)
Total stockholders' equity		3,296,681		3,686,168
Noncontrolling interests		500,275		552,596
Total equity		3,796,956		4,238,764
Total liabilities and equity	$	30,686,223	$	32,257,638

4Q 2018 SUPPLEMENTAL 9

EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Joint Venture Combined Statements of Operations
(Dollars in thousands)

	FOR THE THREE MONTHS ENDED DECEMBER 31,				FOR THE TWELVE MONTHS ENDED DECEMBER 31,
	2018		2017		2018		2017
REVENUE:
Minimum rent	$	505,906	$	485,253	$	1,949,523	$	1,868,613
Overage rent		67,001		60,533		230,145		210,909
Tenant reimbursements		213,974		216,759		880,042		860,778
Other income		93,828		80,225		326,575		290,515
Total revenue		880,709		842,770		3,386,285		3,230,815
OPERATING EXPENSES:
Property operating		153,203		141,584		590,921		551,885
Depreciation and amortization		164,870		170,402		652,968		640,286
Real estate taxes		62,070		60,419		259,567		245,646
Repairs and maintenance		23,441		21,797		87,408		81,309
Advertising and promotion		21,924		22,609		87,349		86,480
Provision for (recovery of) credit losses		664		(984)		14,042		6,645
Other		43,757		50,477		187,292		184,037
Total operating expenses		469,929		466,304		1,879,547		1,796,288
OPERATING INCOME BEFORE OTHER ITEMS		410,780		376,466		1,506,738		1,434,527
Interest expense		(158,154)		(154,669)		(663,693)		(593,062)
Gain (loss) on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net		7,575		(2,239)		33,367		(2,239)
NET INCOME	$	260,201	$	219,558	$	876,412	$	839,226
Third-Party Investors' Share of Net Income	$	132,593	$	110,001	$	436,767	$	424,533
Our Share of Net Income		127,608		109,557		439,645		414,693
Amortization of Excess Investment (A)		(20,804)		(21,760)		(85,252)		(89,804)
Our Share of (Gain) Loss on Sale or Disposal of, or Recovery on, Assets and Interests in Unconsolidated Entities, net		(2,841)		1,342		(12,513)		1,342
Income from Unconsolidated Entities (B)	$	103,963	$	89,139	$	341,880	$	326,231

Note:

The above financial presentation does not include any information related to our investments in Klépierre S.A. ("Klépierre") and HBS Global Properties ("HBS"). For additional information, see footnote B.

4Q 2018 SUPPLEMENTAL 10

EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Joint Venture Combined Balance Sheets
(Dollars in thousands)

	DECEMBER 31, 2018		DECEMBER 31, 2017
Assets:
Investment properties, at cost	$	18,807,449	$	18,328,747
Less - accumulated depreciation		6,834,633		6,371,363
		11,972,816		11,957,384
Cash and cash equivalents		1,076,398		956,084
Tenant receivables and accrued revenue, net		445,148		403,125
Deferred costs and other assets		390,818		355,585
Total assets	$	13,885,180	$	13,672,178
Liabilities and Partners' Deficit:
Mortgages	$	15,235,415	$	14,784,310
Accounts payable, accrued expenses, intangibles, and deferred revenue		976,311		1,033,674
Other liabilities		344,205		365,857
Total liabilities		16,555,931		16,183,841
Preferred units		67,450		67,450
Partners' deficit		(2,738,201)		(2,579,113)
Total liabilities and partners' deficit	$	13,885,180	$	13,672,178
Our Share of:
Partners' deficit	$	(1,168,216)	$	(1,144,620)
Add: Excess Investment (A)		1,594,198		1,733,063
Our net Investment in unconsolidated entities, at equity	$	425,982	$	588,443

Note:

The above financial presentation does not include any information related to our investments in Klépierre and HBS Global Properties. For additional information, see footnote B.

4Q 2018 SUPPLEMENTAL 11

EARNINGS RELEASE

Simon Property Group, Inc.
Unaudited Reconciliation of Non-GAAP Financial Measures (C)
(Amounts in thousands, except per share amounts)

RECONCILIATION OF CONSOLIDATED NET INCOME TO FFO
	FOR THE THREE MONTHS ENDED DECEMBER 31,				FOR THE TWELVE MONTHS ENDED DECEMBER 31,
	2018		2017		2018		2017
Consolidated Net Income (D)	$	833,192	$	659,821	$	2,822,343	$	2,244,903
Adjustments to Arrive at FFO:
Depreciation and amortization from consolidated properties		326,273		321,397		1,270,888		1,260,865
Our share of depreciation and amortization from unconsolidated entities, including Klépierre and HBS		129,818		139,026		533,595		540,718
(Gain) loss upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net (E)		(137,263)		1,342		(282,211)		(3,647)
Unrealized change in fair value of equity instruments		16,423		—		15,212		—
Net income attributable to noncontrolling interest holders in properties		(10,642)		(734)		(11,327)		(13)
Noncontrolling interests portion of depreciation and amortization		(5,082)		(4,248)		(18,647)		(17,069)
Preferred distributions and dividends		(1,313)		(1,313)		(5,252)		(5,252)
FFO of the Operating Partnership (G)	$	1,151,406	$	1,115,291	$	4,324,601	$	4,020,505
Diluted net income per share to diluted FFO per share reconciliation:
Diluted net income per share	$	2.30	$	1.84	$	7.87	$	6.24
Depreciation and amortization from consolidated properties and our share of depreciation and amortization from unconsolidated entities, including Klépierre and HBS, net of noncontrolling interests portion of depreciation and amortization		1.27		1.28		5.01		4.98
Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net (F)		(0.39)		—		(0.79)		(0.01)
Unrealized change in fair value of equity instruments		0.05		—		0.04		—
Diluted FFO per share (H)	$	3.23	$	3.12	$	12.13	$	11.21
Details for per share calculations:
FFO of the Operating Partnership (G)	$	1,151,406	$	1,115,291	$	4,324,601	$	4,020,505
Diluted FFO allocable to unitholders		(152,122)		(146,935)		(568,817)		(529,595)
Diluted FFO allocable to common stockholders (I)	$	999,284	$	968,356	$	3,755,784	$	3,490,910
Basic and Diluted weighted average shares outstanding		309,294		310,856		309,627		311,517
Weighted average limited partnership units outstanding		47,102		47,169		46,893		47,260
Basic and Diluted weighted average shares and units outstanding		356,396		358,025		356,520		358,777
Basic and Diluted FFO per Share (H)	$	3.23	$	3.12	$	12.13	$	11.21
Percent Change		3.5%				8.2%

4Q 2018 SUPPLEMENTAL 12

EARNINGS RELEASE

Simon Property Group, Inc.
Footnotes to Unaudited Financial Information

Notes:

(A)

Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein. The Company generally amortizes excess investment over the life of the related properties.

(B)

The Unaudited Joint Venture Combined Statements of Operations do not include any operations or our share of net income or excess investment amortization related to our investments in Klépierre and HBS Global Properties. Amounts included in Footnote D below exclude our share of related activity for our investments in Klépierre and HBS Global Properties. For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-K.

(C)

This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO and FFO per share. FFO is a performance measure that is standard in the REIT business. We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.

We determine FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"). We determine FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sale, disposal or property insurance recoveries of, or any impairment related to, previously depreciated retail operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP.

We have adopted NAREIT's clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting changes, or a gain or loss resulting from the sale, disposal or property insurance recoveries of, or any impairment relating to, previously depreciated retail operating properties. We include in FFO gains and losses realized from the sale of land, outlot buildings, equity instruments, and investment holdings of non-retail real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.

(D)

Includes our share of:

-

Gains on land sales of $2.4 million and $2.2 million for the three months ended December 31, 2018 and 2017, respectively, and $6.3 million and $12.3 million for the twelve months ended December 31, 2018 and 2017, respectively.

-

Straight-line adjustments increased income by $6.7 million and $7.4 million for the three months ended December 31, 2018 and 2017, respectively, and $28.5 million and $34.5 million for the twelve months ended December 31, 2018 and 2017, respectively.

-

Amortization of fair market value of leases from acquisitions increased income by $1.4 million and $1.4 million for the three months ended December 31, 2018 and 2017, respectively, and $4.4 million and $6.0 million for the twelve months ended December 31, 2018 and 2017, respectively.

(E)

Gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment for the three and twelve months ended December 31, 2018 was $143.9 million and $288.8 million, respectively. Noncontrolling interest portion of the gain for the three and twelve months ended December 31, 2018 was $6.6 million.

(F)

Includes noncontrolling interests gain upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment of $0.02 per share for the three and twelve months ended December 31, 2018.

(G)

Includes a loss on the extinguishment of debt of $128.6 million for the twelve months ended December 31, 2017.

(H)

Includes Basic and Diluted FFO per share related to a loss on the extinguishment of debt of $0.36 for the twelve months ended December 31, 2017.

(I)

Includes Diluted FFO allocable to common stockholders related to a loss on the extinguishment of debt of $111.7 million for the twelve months ended December 31, 2017.

4Q 2018 SUPPLEMENTAL 13

OVERVIEW

THE COMPANY

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust ("REIT"). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets®, The Mills®, and International Properties. At December 31, 2018, we owned or had an interest in 234 properties comprising 191 million square feet in North America, Asia and Europe. Additionally, at December 31, 2018, we had a 21.3% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 16 European countries.

This package was prepared to provide operational and balance sheet information as of December 31, 2018 for the Company and the Operating Partnership.

Certain statements made in this Supplemental Package may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: changes in economic and market conditions that may adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact of the United Kingdom's vote to leave the European Union; changes to applicable laws or regulations or the interpretation thereof; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; general risks related to real estate investments, including the illiquidity of real estate investments; the impact of our substantial indebtedness on our future operations; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in the value of our investments in foreign entities; our ability to hedge interest rate and currency risk; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks relating to our joint venture properties; environmental liabilities; changes in insurance costs, the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; natural disasters; the potential for terrorist activities; and the loss of key management personnel. We discuss these and other risks and uncertainties under the heading "Risk Factors" in our annual and quarterly periodic reports filed with the SEC. We may update that discussion in subsequent other periodic reports, but, except as required by law, we undertake no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

Any questions, comments or suggestions regarding this Supplemental Information should be directed to Tom Ward, Senior Vice President of Investor Relations (tom.ward@simon.com or 317.685.7330).

4Q 2018 SUPPLEMENTAL 14

OVERVIEW

STOCK INFORMATION

The Company's common stock and one series of preferred stock are traded on the New York Stock Exchange under the following symbols:

	Common Stock	SPG
	8.375% Series J Cumulative Redeemable Preferred	SPGPrJ
CREDIT RATINGS
	Standard & Poor's
	Corporate	A	(Stable Outlook)
	Senior Unsecured	A	(Stable Outlook)
	Commercial Paper	A1	(Stable Outlook)
	Preferred Stock	BBB+	(Stable Outlook)
	Moody's
	Senior Unsecured	A2	(Stable Outlook)
	Commercial Paper	P1	(Stable Outlook)
	Preferred Stock	A3	(Stable Outlook)

SENIOR UNSECURED DEBT COVENANTS ⁽¹⁾

	Required	Actual	Compliance
Total Debt to Total Assets (1)	£65%	39%	Yes
Total Secured Debt to Total Assets (1)	£50%	18%	Yes
Fixed Charge Coverage Ratio	>1.5X	5.1X	Yes
Total Unencumbered Assets to Unsecured Debt	³125%	294%	Yes

(1)

Covenants for indentures dated June 7, 2005 and later. Total Assets are calculated in accordance with the indenture and essentially represent net operating income (NOI) divided by a 7.0% capitalization rate plus the value of other assets at cost.

4Q 2018 SUPPLEMENTAL 15

SELECTED FINANCIAL AND EQUITY INFORMATION
(In thousands, except as noted)

		THREE MONTHS ENDED DECEMBER 31,				TWELVE MONTHS ENDED DECEMBER 31,
		2018		2017		2018		2017
Financial Highlights
Total Revenue - Consolidated Properties	$	1,460,743	$	1,427,692	$	5,657,919	$	5,538,640
Consolidated Net Income	$	833,192	$	659,821	$	2,822,343	$	2,244,903
Net Income Attributable to Common Stockholders	$	712,796	$	571,116	$	2,436,721	$	1,944,625
Basic and Diluted Earnings per Common Share (EPS)	$	2.30	$	1.84	$	7.87	$	6.24
Funds from Operations (FFO) of the Operating Partnership	$	1,151,406	$	1,115,291	$	4,324,601	$	4,020,505
Basic and Diluted FFO per Share (FFOPS)	$	3.23	$	3.12	$	12.13	$	11.21
Dividends/Distributions per Share/Unit	$	2.00	$	1.85	$	7.90	$	7.15

Stockholders' Equity Information		AS OF DECEMBER 31, 2018		AS OF DECEMBER 31, 2017
Limited Partners' Units Outstanding at end of period		46,807		46,879
Common Shares Outstanding at end of period		309,018		311,167
Total Common Shares and Limited Partnership Units Outstanding at end of period		355,825		358,046
Weighted Average Limited Partnership Units Outstanding		46,893		47,260
Weighted Average Common Shares Outstanding:
Basic and Diluted - for purposes of EPS and FFOPS		309,627		311,517
Debt Information
Share of Consolidated Debt	$	23,139,977	$	24,465,117
Share of Joint Venture Debt		7,160,392		7,011,525
Share of Total Debt	$	30,300,369	$	31,476,642
Market Capitalization
Common Stock Price at end of period	$	167.99	$	171.74
Common Equity Capitalization, including Limited Partnership Units	$	59,775,015	$	61,490,902
Preferred Equity Capitalization, including Limited Partnership Preferred Units		80,287		82,527
Total Equity Market Capitalization	$	59,855,302	$	61,573,429
Total Market Capitalization - Including Share of Total Debt	$	90,155,671	$	93,050,071
Debt to Total Market Capitalization		33.6%		33.8%

4Q 2018 SUPPLEMENTAL 16

NET OPERATING INCOME (NOI) COMPOSITION ⁽¹⁾
For the Twelve Months Ended December 31, 2018

(1)

Based on our share of total NOI and does not reflect any property, entity or corporate-level debt.

(2)

Includes Klépierre, international Premium Outlets, international Designer Outlets and distributions from other international investments.

(3)

Includes Lifestyle Centers.

4Q 2018 SUPPLEMENTAL 17

NET OPERATING INCOME OVERVIEW ⁽¹⁾
(In thousands)

		FOR THE THREE MONTHS ENDED DECEMBER 31,			% GROWTH		FOR THE TWELVE MONTHS ENDED DECEMBER 31,			% GROWTH
		2018		2017			2018		2017
Comparable Property NOI (2)	$	1,463,583	$	1,433,369	2.1%	$	5,568,958	$	5,446,365	2.3%
NOI from New Development, Redevelopment, Expansion and Acquisitions (3)		19,761		18,920			72,212		79,283
International Properties (4)		136,019		119,386			506,205		427,184
Our share of NOI from Investments (5)		82,356		86,423			316,155		279,028
Portfolio NOI	$	1,701,719	$	1,658,098	2.6%	$	6,463,530	$	6,231,860	3.7%
Corporate and Other NOI Sources (6)		80,935		85,958			389,092		386,895
Combined NOI	$	1,782,654	$	1,744,056		$	6,852,622	$	6,618,755
Less: Joint Venture Partners' Share of NOI		307,934		287,070			1,143,667		1,091,989
Our Share of Total NOI	$	1,474,720	$	1,456,986		$	5,708,955	$	5,526,766

(1)

All amounts are presented at gross values unless otherwise indicated as our share. See reconciliation on following page.

(2)

Includes Malls, Premium Outlets, The Mills and Lifestyle Centers opened and operating as comparable for the period.

(3)

Includes total property NOI for properties undergoing redevelopment as well as incremental NOI for expansion properties not yet included in comparable properties.

(4)

Includes International Premium Outlets (except for Canadian International Premium Outlets included in Comparable NOI), International Designer Outlets and distributions from other international investments.

(5)

Includes our share of NOI of Klépierre, HBS, and other corporate investments.

(6)

Includes income components excluded from Portfolio NOI and Comparable Property NOI (domestic lease termination income, interest income, land sale gains, straight line rent, above/below market lease adjustments), gains on sale of equity instruments, unrealized gains and losses on equity instruments, Simon management company revenues, and other assets.

4Q 2018 SUPPLEMENTAL 18

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(In thousands, except as noted)

RECONCILIATION OF NET INCOME TO NOI
		THREE MONTHS ENDED DECEMBER 31,				TWELVE MONTHS ENDED DECEMBER 31,
		2018		2017		2018		2017
Reconciliation of NOI of consolidated entities:
Consolidated Net Income	$	833,192	$	659,821	$	2,822,343	$	2,244,903
Income and other tax expense		10,422		6,362		36,898		23,343
Interest expense		204,341		204,986		815,923		809,393
Income from unconsolidated entities		(149,987)		(123,059)		(475,250)		(400,270)
Loss on extinguishment of debt		–		–		–		128,618
(Gain) loss upon acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net		(143,879)		1,342		(288,827)		(3,647)
Operating Income Before Other Items		754,089		749,452		2,911,087		2,802,340
Depreciation and amortization		329,145		325,187		1,282,454		1,275,452
Home and regional office costs		30,584		24,243		136,677		135,150
General and administrative		10,830		11,883		46,543		51,972
NOI of consolidated entities	$	1,124,648	$	1,110,765	$	4,376,761	$	4,264,914
Reconciliation of NOI of unconsolidated entities:
Net Income	$	260,201	$	219,558	$	876,412	$	839,226
Interest expense		158,154		154,669		663,693		593,062
(Gain) loss on sale or disposal of, or recovery on, assets and interests in unconsolidated entities, net		(7,575)		2,239		(33,367)		2,239
Operating Income Before Other Items		410,780		376,466		1,506,738		1,434,527
Depreciation and amortization		164,870		170,402		652,968		640,286
NOI of unconsolidated entities	$	575,650	$	546,868	$	2,159,706	$	2,074,813
Add: Our share of NOI from Klépierre, HBS and other corporate investments		82,356		86,423		316,155		279,028
Combined NOI	$	1,782,654	$	1,744,056	$	6,852,622	$	6,618,755

4Q 2018 SUPPLEMENTAL 19

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(In thousands, except as noted)

RECONCILIATION OF FFO OF THE OPERATING PARTNERSHIP TO FUNDS AVAILABLE FOR DISTRIBUTION (OUR SHARE)
		THREE MONTHS ENDED DECEMBER 31, 2018		TWELVE MONTHS ENDED DECEMBER 31, 2018
FFO of the Operating Partnership	$	1,151,406	$	4,324,601
Non-cash impacts to FFO(1)		1,306		31,233
FFO of the Operating Partnership excluding non-cash impacts		1,152,712		4,355,834
Tenant allowances		(32,301)		(177,199)
Operational capital expenditures		(67,660)		(177,915)
Funds available for distribution	$	1,052,751	$	4,000,720

(1)

Non-cash impacts to FFO of the Operating Partnership include:

		THREE MONTHS ENDED DECEMBER 31, 2018		TWELVE MONTHS ENDED DECEMBER 31, 2018
Deductions:
Straight-line rent	$	(6,732)	$	(28,494)
Fair value of debt amortization		16		32
Fair market value of lease amortization		(1,444)		(4,429)
Additions:
Stock based compensation expense		2,873		27,986
Mortgage, financing fee and terminated swap amortization expense		6,593		36,138
	$	1,306	$	31,233

This report contains measures of financial or operating performance that are not specifically defined by generally accepted accounting principles (GAAP) in the United States, including FFO, FFO per share, funds available for distribution, net operating income (NOI), portfolio NOI, and comparable property NOI. FFO and NOI are performance measures that are standard in the REIT business. We believe FFO and NOI provide investors with additional information concerning our operating performance and a basis to compare our performance with the performance of other REITs. We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.

The non-GAAP financial measures used in this report should not be considered as alternatives to net income as a measure of our operating performance or to cash flows computed in accordance with GAAP as a measure of liquidity nor are they indicative of cash flows from operating and financial activities. Reconciliations of other non-GAAP measures used in this report to the most-directly comparable GAAP measure are included in the tables on pages 18 – 20 and in the Earnings Release for the latest period.

4Q 2018 SUPPLEMENTAL 20

OTHER INCOME, OTHER EXPENSE AND CAPITALIZED INTEREST
(In thousands)

	THREE MONTHS ENDED DECEMBER 31,				TWELVE MONTHS ENDED DECEMBER 31,
	2018		2017		2018		2017
Consolidated Properties
Other Income
Interest, dividend and distribution income  (1)	$	5,843	$	8,446	$	48,469	$	25,802
Lease settlement income	2,700		9,567		44,174		45,987
Gains on land sales	114		2,330		3,362		11,864
Realized gains on sales of marketable securities	–		–		–		21,541
Other  (2)	75,435		56,837		274,577		191,784
Totals	$	84,092	$	77,180	$	370,582	$	296,978
Other Expense
Ground leases	$	10,957	$	10,897	$	42,683	$	41,237
Unrealized change in fair value of equity instruments  (3)	16,423		–		15,212		–
Professional fees and other	12,650		17,901		51,427		90,240
Totals	$	40,030	$	28,798	$	109,322	$	131,477

Capitalized Interest	THREE MONTHS ENDED DECEMBER 31,				TWELVE MONTHS ENDED DECEMBER 31,
	2018		2017		2018		2017
Interest Capitalized during the Period:
Our Share of Consolidated Properties	$	4,683	$	4,294	$	19,867	$	24,754
Our Share of Joint Venture Properties	$	409	$	381	$	2,077	$	2,152

(1)

Includes distributions from other international investments.

(2)

Includes ancillary property revenues, gift cards, marketing, media, parking and sponsorship revenues, gains on sale of non-retail investments, non-real estate investments, insurance proceeds from business interruption and other miscellaneous income items.

(3)

Relates to period value fluctuations of Washington Prime Group ("WPG") equity and amounts not included in FFO.

4Q 2018 SUPPLEMENTAL 21

U.S. MALLS AND PREMIUM OUTLETS OPERATING INFORMATION

		AS OF DECEMBER 31,
		2018		2017
Total Number of Properties		176		175
Total Square Footage of Properties (in millions)		151.2		151.1
Ending Occupancy (1):
Consolidated Assets		95.9%		95.8%
Unconsolidated Assets		95.8%		95.1%
Total Portfolio		95.9%		95.6%
Total Sales per Square Foot (PSF) (2):
Consolidated Assets	$	641	$	613
Unconsolidated Assets	$	719	$	671
Total Portfolio	$	661	$	628
Base Minimum Rent PSF (3):
Consolidated Assets	$	52.51	$	51.34
Unconsolidated Assets	$	58.59	$	57.88
Total Portfolio	$	54.18	$	53.11

Open / Close Spread

			RENT PSF (BASE MINIMUM RENT & CAM)
	SQUARE FOOTAGE OF OPENINGS		AVERAGE OPENING RATE PSF  (4)		AVERAGE CLOSING RATE PSF  (4)		LEASING SPREAD  (4)	SPREAD TO CLOSE %
12/31/18	8,722,732	$	62.04	$	54.29	$	7.75	14.3%
12/31/17	6,656,004	$	72.68	$	65.26	$	7.42	11.4%
Occupancy Cost as a Percentage of Sales (5):
12/31/18	12.8%
12/31/17	13.2%

(1)

Ending Occupancy is the percentage of total owned square footage (GLA) which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation.

(2)

Total Sales PSF is defined as total sales of the tenants open and operating in the center during the reporting period divided by the associated company owned and occupied GLA on a trailing 12-month basis. Includes tenant sales activity for all months a tenant is open within the trailing 12-month period. In accordance with the standard definition of sales for regional malls adopted by the International Council of Shopping Centers, stores with less than 10,000 square feet are included for malls and stores with less than 20,000 square feet are included for Premium Outlets.

(3)

Base Minimum Rent PSF is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in Ending Occupancy as defined above.

(4)

The Open / Close Spread is a measure that compares opening and closing rates on all spaces. The Opening Rate is the initial cash Rent PSF for spaces leased during the trailing 12-month period, and includes new leases, renewals, amendments and relocations (including expansions and downsizings) if lease term is greater than one year. The Closing Rate is the final cash Rent PSF as of the month the tenant terminates or closes. Rent PSF includes Base Minimum Rent and Common Area Maintenance (CAM) rents.

(5)

Occupancy Cost as a Percentage of Sales is the trailing 12-month Base Minimum Rent, plus all applicable ancillary charges, plus overage rent, if applicable (based on last 12 months of sales), divided by the trailing 12-month Total Sales PSF for the same tenants.

4Q 2018 SUPPLEMENTAL 22

THE MILLS AND INTERNATIONAL OPERATING INFORMATION

		AS OF DECEMBER 31,
		2018		2017
The Mills
Total Number of Properties		14		14
Total Square Footage of Properties (in millions)		21.4		21.1
Ending Occupancy(1)		97.6%		98.4%
Total Sales PSF(2)	$	614	$	587
Base Minimum Rent PSF(3)	$	32.63	$	30.98
Leasing Spread PSF(4)	$	15.21	$	11.36
Leasing Spread (Percentage Change)(4)		34.6%		19.7%
International Properties
Premium Outlets
Total Number of Properties		19		18
Total Square Footage of Properties (in millions)		7.3		6.6
Designer Outlets
Total Number of Properties		9		9
Total Square Footage of Properties (in millions)		2.2		2.2
Statistics for Premium Outlets in Japan(5)
Ending Occupancy		99.7%		99.9%
Total Sales PSF	¥	107,265	¥	105,138
Base Minimum Rent PSF	¥	5,156	¥	5,062

(1)

See footnote 1 on page 22 for definition, except Ending Occupancy is calculated on all company owned space.

(2)

See footnote 2 on page 22 for definition; calculation methodology is the same as for malls.

(3)

See footnote 3 on page 22 for definition.

(4)

See footnote 4 on page 22 for definition.

(5)

Information supplied by the managing venture partner; includes 9 properties.

4Q 2018 SUPPLEMENTAL 23

U.S. MALLS AND PREMIUM OUTLETS LEASE EXPIRATIONS ⁽¹⁾

YEAR	NUMBER OF LEASES EXPIRING	SQUARE FEET		AVG. BASE MINIMUM RENT PSF AT 12/31/18	PERCENTAGE OF GROSS ANNUAL RENTAL REVENUES  (2)
Inline Stores and Freestanding
Month to Month Leases	530	1,407,824	$	61.88	1.6%
2019	2,413	8,503,453	$	51.65	7.7%
2020	2,368	8,085,250	$	50.87	7.2%
2021	2,125	8,109,158	$	49.99	7.2%
2022	2,043	8,120,171	$	50.11	7.3%
2023	2,328	8,685,716	$	56.79	8.7%
2024	1,673	6,678,649	$	58.56	6.9%
2025	1,450	5,502,091	$	65.09	6.4%
2026	1,283	4,573,797	$	63.39	5.1%
2027	1,031	3,849,512	$	62.90	4.3%
2028	866	3,653,830	$	56.94	3.7%
2029 and Thereafter	447	2,797,024	$	46.42	2.4%
Specialty Leasing Agreements w/ terms in excess of 12 months	1,536	3,964,360	$	19.41	1.4%
Anchors
2019	9	1,004,555	$	3.80	0.1%
2020	22	3,137,784	$	4.39	0.3%
2021	12	1,422,205	$	4.74	0.1%
2022	14	1,915,691	$	6.37	0.2%
2023	18	2,468,058	$	6.55	0.3%
2024	20	1,465,647	$	9.63	0.3%
2025	15	1,404,556	$	9.35	0.2%
2026	5	633,170	$	4.97	0.1%
2027	6	920,224	$	4.16	0.1%
2028	9	857,119	$	7.43	0.1%
2029 and Thereafter	17	2,013,617	$	6.17	0.2%

(1)

Does not consider the impact of renewal options that may be contained in leases.

(2)

Annual rental revenues represent 2018 consolidated and joint venture combined base rental revenue.

4Q 2018 SUPPLEMENTAL 24

U.S. MALLS AND PREMIUM OUTLETS TOP TENANTS

Top Inline Store Tenants (sorted by percentage of total base minimum rent for U.S. properties)

TENANT	NUMBER OF STORES	SQUARE FEET (000's)	PERCENT OF TOTAL SQ. FT. IN U.S. PROPERTIES	PERCENT OF TOTAL BASE MINIMUM RENT FOR U.S. PROPERTIES
The Gap, Inc.	370	3,803	2.1%	3.4%
L Brands, Inc.	314	1,916	1.1%	2.1%
Ascena Retail Group Inc	449	2,499	1.4%	1.8%
PVH Corporation	236	1,466	0.8%	1.5%
Signet Jewelers, Ltd.	389	569	0.3%	1.5%
Forever 21, Inc.	97	1,486	0.8%	1.4%
Tapestry, Inc.	246	972	0.5%	1.4%
Foot Locker, Inc.	237	1,071	0.6%	1.2%
Luxottica Group SPA	388	698	0.4%	1.2%
Abercrombie & Fitch Co.	156	1,110	0.6%	1.2%

Top Anchors (sorted by percentage of total square footage in U.S. properties) ⁽¹⁾

TENANT	NUMBER OF STORES	SQUARE FEET (000's)	PERCENT OF TOTAL SQ. FT. IN U.S. PROPERTIES	PERCENT OF TOTAL BASE MINIMUM RENT FOR U.S. PROPERTIES
Macy's Inc.	117	22,449	12.4%	0.4%
J.C. Penney Co., Inc.	66	10,589	5.8%	0.3%
Dillard's, Inc.	38	6,779	3.7%	*
Nordstrom, Inc.	28	4,679	2.6%	0.1%
Sears Holdings Corporation (2)	25	4,274	2.4%	*
Dick's Sporting Goods, Inc.	31	2,177	1.2%	0.5%
Hudson's Bay Company	16	2,128	1.2%	0.1%
Belk, Inc.	9	1,504	0.8%	*
The Neiman Marcus Group, Inc.	12	1,458	0.8%	0.1%
Target Corporation	6	831	0.5%	*
Von Maur, Inc.	6	768	0.4%	*

(1)

Includes space leased and owned by anchors in U.S. Malls; does not include Bloomingdale's The Outlet Store, Neiman Marcus Last Call, Nordstrom Rack, and Saks Fifth Avenue Off 5th.

(2)

Excludes 4 stores expected to close by March 31, 2019.

*

Less than one-tenth of one percent.

4Q 2018 SUPPLEMENTAL 25

CAPITAL EXPENDITURES
(In thousands)

				UNCONSOLIDATED PROPERTIES
		CONSOLIDATED PROPERTIES		TOTAL		OUR SHARE
New development projects	$	94,923	$	213,387	$	104,417
Redevelopment projects with incremental square footage and/or anchor replacement		309,455		275,878		132,313
Redevelopment projects with no incremental square footage (1)		136,797		48,072		20,143
Subtotal new development and redevelopment projects		541,175		537,337		256,873
Tenant allowances		139,359		79,044		37,840
Operational capital expenditures at properties:
CAM expenditures (2)		110,450		56,310		25,162
Non-CAM expenditures		35,228		15,508		7,075
Totals	$	826,212	$	688,199	$	326,950
Conversion from accrual to cash basis		(44,303)		73,458		34,898
Capital Expenditures for the Twelve Months Ended 12/31/18 (3)	$	781,909	$	761,657	$	361,848
Capital Expenditures for the Twelve Months Ended 12/31/17 (3)	$	732,100	$	1,023,153	$	489,520

(1)

Includes restoration projects as a result of property damage from natural disasters.

(2)

Expenditures included in the pool of charges allocated to tenants as CAM.

(3)

Agrees with the line item "Capital expenditures" on the Statements of Cash Flows for the consolidated properties. No statement of cash flows is prepared for the joint venture properties; however, the above reconciliation was completed in the same manner as the reconciliation for the consolidated properties.

4Q 2018 SUPPLEMENTAL 26

DEVELOPMENT ACTIVITY SUMMARY ⁽¹⁾
As of December 31, 2018
(in millions, except percent)

PLATFORM     PROJECT TYPE		PROJECTED GROSS COST (2)		PROJECTED NET COST (3)		OUR SHARE OF NET COST (4)	EXPECTED STABILIZED RATE OF RETURN (4)		TOTAL CONSTRUCTION IN PROGRESS		OUR SHARE OF TOTAL CONSTRUCTION IN PROGRESS
Malls
Redevelopments	$	999	$	987	$	882	7%	$	283	$	240
Premium Outlets
New Developments	$	361	$	308	$	104	8%	$	147	$	59
Redevelopments	$	517	$	491	$	262	10%	$	108	$	53
The Mills
Redevelopments	$	39	$	39	$	39	8%	$	6	$	6
Totals	$	1,916	$	1,825	$	1,287	7%	$	544	$	358

Notes:

(1)

Represents projects under construction; new development and redevelopment projects with budgeted gross costs in excess of $5 million or incremental square footage. Includes both domestic and international properties.

(2)

Projected Gross Cost includes soft costs such as architecture and engineering fees, tenant costs (allowances/leasing commissions), development, legal and other fees, marketing costs, cost of capital, and other related costs.

(3)

Projected Net Cost includes cost recoveries such as land sales, tenant reimbursements, Tax Increment Financing (TIF), CAM, and other such recoveries.

(4)

Costs and returns are based upon current budget assumptions; actual costs may vary and no assurance can be given that expected returns will be achieved.

4Q 2018 SUPPLEMENTAL 27

DEVELOPMENT ACTIVITY SUMMARY
As of December 31, 2018

(1)

Includes hotel, residential, office and other

(2)

Includes international Premium Outlets and international Designer Outlets

4Q 2018 SUPPLEMENTAL 28

DEVELOPMENT ACTIVITY REPORT ⁽¹⁾
As of December 31, 2018

PROPERTY/ LOCATION		PROJECT DESCRIPTION	ACTUAL/ PROJECTED OPENING	COMPANY'S OWNERSHIP PERCENTAGE
Malls - Redevelopments
Auburn Mall - Auburn, MA		Redevelopment of the former Macy's Home Store building with Reliant Medical	2/19	56%
King of Prussia - King of Prussia (Philadelphia), PA		Redevelopment	6/19	100%
Burlington Mall - Burlington (Boston), MA		Redevelopment of the former Sears TBA	9/19	100%
Roosevelt Field - Garden City (New York), NY		163 room Residence Inn by Marriott	9/19	50%
Columbia Center - Kennewick, WA		Dick's Sporting Goods	10/19	100%
Orland Square - Orland Park, IL		Redevelopment of the former Carson's with Von Maur	11/19	100%
Shops at Riverside, The - Hackensack (New York), NJ		Redevelopment	12/19	100%
Southdale Center - Edina (Minneapolis), MN		Redevelopment of the former JCPenney building with Life Time Athletic and Life Time Sport/Work	12/19	100%
Broadway Square - Tyler, TX		Redevelopment of the former Sears building with retail and restaurants	6/20	100%
Midland Park Mall - Midland, TX		Redevelopment of the former Sears building with Dillard's	6/20	100%
Ocean County Mall - Toms River, NJ		Redevelopment of the former Sears building with B.J.'s Restaurant & Brewhouse, LA Fitness, and other retailers	6/20	100%
Cape Cod Mall - Hyannis, MA	<