10-K 1 a2129556z10-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, 2003

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.)

115 West Washington Street, Suite 15 East
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
8.75% Series F Cumulative Redeemable Preferred Stock, $.0001 par value   New York Stock Exchange
7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $.0001 par value   New York Stock Exchange

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

            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. o

            Indicate by check mark whether Registrant is an accelerated filer (as defined by Rule 12b-2 of the Securities Exchange Act of 1934). YES ý NO o

            The aggregate market value of shares of common stock held by non-affiliates of the Registrant was approximately $7,163 million based on the closing sale price on the New York Stock Exchange for such stock on June 30, 2003.

            As of February 12, 2004, Simon Property Group, Inc. had 200,985,130; 3,200,000 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 Shareholders are incorporated by reference into Parts I, II and IV and portions of the Registrant's Proxy Statement in connection with its 2004 Annual Meeting of Shareholders are incorporated by reference in Part III.

SIMON PROPERTY GROUP, INC.
Annual Report on Form 10-K
December 31, 2003

TABLE OF CONTENTS


Item No.
 
 
 
Page No.
Part I

1.
 
Business
 
3
2.   Properties   12
3.   Legal Proceedings   36
4.   Submission of Matters to a Vote of Security Holders   36

Part II

5.
 
Market for the Registrant's Common Equity and Related Stockholder Matters
 
37
6.   Selected Financial Data   37
7.   Management's Discussion and Analysis of Financial Condition
and Results of Operations		    
38
7A.   Quantitative and Qualitative Disclosure About Market Risk   38
8.   Financial Statements and Supplementary Data   38
9.   Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure		     
38
9a.   Controls and Procedures   38

Part III

10.
 
Directors and Executive Officers of the Registrant
 
39
11.   Executive Compensation   39
12.   Security Ownership of Certain Beneficial Owners and Management   39
13.   Certain Relationships and Related Transactions   39
14.   Principal Accounting Fees and Services   39

Part IV

15.
 
Exhibits, Financial Statements, Schedules and Reports on Form 8-K
 
40

Signatures
 
41

2


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 but one 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, operation, leasing, management, acquisition, expansion and development of real estate properties. Our real estate properties consist primarily of regional malls and community shopping centers. As of December 31, 2003, we owned or held an interest in 246 income-producing properties in North America, which consisted of 175 regional malls, 67 community shopping centers, and four office and mixed-use properties in 37 states and Canada (collectively, the "Properties", and individually, a "Property"). Mixed-use properties are properties that include a combination of retail space, office space, and/or hotel components. In addition, we also own interests in three parcels of land held for future development (together with the Properties, the "Portfolio"). Finally, we have ownership interests in 47 assets in Europe (France, Italy, Poland and Portugal).

    Mergers and Acquisitions

            Mergers and acquisitions have been a significant component of the growth and development of our business. In 2003, we completed a series of acquisitions that added to our overall portfolio:

    •
    On March 14, 2003, we purchased the remaining minority interest in The Forum Shops at Caesars in Las Vegas, NV for $174.0 million in cash and assumed our $74.2 million share of debt from the minority limited partner.

    •
    On August 20, 2003, we purchased a 100% leasehold stake in Stanford Shopping Center in Palo Alto, California from Stanford University for $333.0 million. Stanford University holds, as lessor, a long-term ground lease underlying the asset.

    •
    In the fourth quarter 2003, through a series of transactions, we increased our ownership interest in Kravco Investments L.P., a Philadelphia, PA based owner of regional malls, and acquired additional interests in Kravco's affiliated management company, for approximately $293 million. The portfolio consists of six regional malls, five of which are in the Philadelphia metropolitan area, and four community centers.

    •
    Finally, in December 2003, we increased our presence in Europe through the formation of Gallerie Commerciali Italia S.p.A ("GCI") with The Rinascente Group, an Italian retailer company. The Rinascente Group contributed 38 shopping centers as well as development opportunities to GCI and then sold 49% of GCI to one of our affiliates. The initial gross value of GCI was approximately €860 million or over $1.0 billion and our initial equity investment was approximately €187 million, or $232 million.

            On October 8, 2003, we and Westfield America, Inc. ("Westfield"), the U.S. subsidiary of Westfield America Trust, withdrew our tender offer for all of the outstanding common shares of Taubman Centers, Inc. The withdrawal of the tender offer followed the enactment of a law amending the Michigan Control Share Acquisitions Act and which allowed the Taubman family group to effectively block our ability to conclude the tender offer. As a result we expensed deferred acquisition costs of $10.6 million, net, related to this acquisition during 2003.

    Structural Simplification

            On January 1, 2003, the Operating Partnership acquired all of the remaining equity interests of M.S. Management Associates, Inc. (the "Management Company"). The interests acquired consist of 95% of the voting common stock and 1.25% of the non-voting stock of the Management Company and approximately 2% of the economic interests of the Management Company. The interests were acquired from Melvin Simon, Herbert Simon, and David Simon (the "Simons"), for a total purchase price of $425,000, which was equal to the appraised value of the interests as determined by an independent third party. The acquisition was unanimously approved by our independent directors. As a result, the Management Company is now a wholly owned consolidated taxable REIT subsidiary ("TRS") of the Operating Partnership.

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    Dispositions

            As part of our strategic plan to own 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, 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. In addition, we expect any earnings dilution from the sales on our results of operations from these dispositions will be offset by the positive impact of our acquisitions and development and redevelopment activities.

            During 2003, we sold 13 non-core Properties, consisting of seven regional malls, five community centers and one mixed-use property. The Properties and their dates of sale were:

  •   Richmond Square, Mounds Mall, Mounds Mall   •   Eastern Hills Mall on July 1, 2003
    Cinema and Memorial Mall on January 9, 2003   •   New Orleans Center on October 1, 2003
  •   Forest Village Park Mall on April 29, 2003   •   Mainland Crossing on October 28, 2003
  •   North Riverside Park Plaza on May 8, 2003   •   SouthPark Mall on November 3, 2003
  •   Memorial Plaza on May 21, 2003   •   Bergen Mall on December 12, 2003
  •   Fox River Plaza on May 22, 2003        

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. Our Board of Directors may amend or rescind these policies from time to time at its discretion without a stockholder vote.

    Investment Policies

            We conduct our investment activities, except for one Property that we own directly, 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 stable balance sheet consistent with our financing policies. We intend to achieve these objectives by:

    •
    pursuing a leasing strategy that capitalizes on the desirable location of our Properties;
    •
    improving the performance of our Properties by using the economies of scale that result from our size to help control operating costs and by generating additional revenues through merchandising, marketing and promotional activities;
    •
    renovating and/or expanding our Properties where appropriate;
    •
    developing new shopping centers which meet our economic criteria; and
    •
    acquiring additional shopping centers and the portfolios of other retail real estate companies that meet our investment criteria.

            We cannot assure you, however, 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 have a policy limiting 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, in our discretion, invest in mortgages and other real estate interests consistent with our qualification as a REIT under the Internal Revenue Code ("Code"). Mortgages in which we invest may or may not be insured by a governmental agency. We do not intend to invest to a significant extent in mortgages or deeds of trust, however, we hold an interest in one 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, however, if we conclude that we may benefit from the cash flow or any appreciation in the value of the property.

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            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, we must derive at least 75% of our gross income from "rents from real estate" and at least 95% must be derived from rents from real estate, interest, dividends and gains from the sale or disposition of stock or securities.

            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. We do not intend to invest in securities of other issuers for the purpose of exercising control other than the Operating Partnership and certain wholly-owned subsidiaries and to acquire interests in real estate. We do not intend that our investments in securities will require us to register as an "investment company" under the Investment Company Act of 1940, as amended. We intend to divest securities before any such registration would be required.

    Financing Policies

            We must comply with the covenant restrictions of 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 60% of adjusted total assets, as defined, and secured debt to 55% of adjusted 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 the Board of Directors determines to seek additional capital, we may raise such capital through additional equity offerings, debt financing, creation of 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 Internal Revenue 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 of Directors determines to raise additional equity capital, it may, without stockholder approval, issue additional shares of common stock or other capital stock. The Board of Directors 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.

5

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

            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 the recognition of gain for tax purposes by the transferor. It may also be an advantage for us since certain investors may be limited in the number of shares of our capital stock that they may purchase.

            If the Board of Directors determines to obtain additional debt financing, we intend to do so generally through mortgages on Properties, drawings against 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.

            We only invest in or form special purpose entities 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 or 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. In 2003, we adopted governance principles governing our affairs and the Board of Directors, as well as written charters for each of the standing Committees of the Board of Directors. In addition, in 2003, the Board adopted a Code of Business Conduct and Ethics which apply to all of our officers, directors, and employees. At least a majority of the members of our Board of Directors must qualify as independent under the listing standards for New York Stock Exchange companies and cannot be affiliated with the Simon and DeBartolo families. 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

6


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 do not intend to make investments other than as previously described. We intend to make investments which are consistent with the REIT requirements of the Code, unless the Board of Directors determines that it is no longer in our best interests to qualify as a REIT. The Board of Directors 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 otherwise reacquire our shares or any other securities. We may engage in such activities in the future. We may in the future issue shares of our common stock to holders of units of limited partnership interest in the Operating Partnership upon exercise of such holders' rights under the Operating Partnership agreement. We have not made loans to other entities or persons, including our officers and directors. It is now our policy to not make any loans to our directors and executive officers for any purpose and all loans previously made to current executive officers have been repaid in full. We may in the future make loans to the Management Company and to joint ventures in which we participate. We do not intend to engage in the following:

    •
    trading, underwriting or agency distribution or sale of securities of other issuers; or
    •
    the active trade of loans and investments.

    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 for the majority of our property operating, real estate tax, repairs and maintenance, 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 mixed-use 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 manage substantially all our Properties held as joint venture Properties and as a result we derive revenues from management fees and other fee revenues.

            Other Revenues.    Due to our size, tenant and vendor relationships, we also generate revenues from other sources, including:

    •
    Simon Brand Venture ("Simon Brand") which obtains revenues from establishing our malls as leading market resource providers for retailers and other businesses and consumer-focused corporate alliances. Simon Brand revenues include payment services, national media contracts, a national beverage contract and other contracts with national companies.

7

    •
    Simon Brand also pursues mall marketing initiatives, including the sale of gift cards. We tested a Simon Visa Gift Card in some of our regional malls in the fall of 2001 and completed the roll-out of our Simon Gift Card program to substantially all our regional malls during 2002 and 2003. The gift card program has replaced our existing paper certificates.
    •
    Simon Business Network ("Simon Business") obtains revenues from offering products and property operating services, resulting from its relationships with vendors, to our tenants and others. These services include such items as energy services, facility services, waste handling, vertical transportation, as well as major capital expenditures such as roofing, parking lots and energy systems. The tenant services provided through Simon Business include a national waste management services program, a national total facility service program which includes operational and maintenance services, a national automatic teller machine program, a national security services program, and parking service programs.

            We also generate other revenues through the sale of land adjacent to our Properties commonly referred to as "outlots" or "outparcels." We create value in these outparcels through the operating performance of our Properties and replenish the inventory of these parcels by the development of new Properties and the redevelopment of existing or acquired Properties.

            International Expansion.    Our investments in Europe are currently conducted through two joint ventures, GCI and European Retail Enterprises, B.V. ("ERE"). We do not derive any significant consolidated revenues from European activities since our investments are held through joint ventures and therefore are accounted for under the equity method 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 domestic Properties can be utilized in retail properties abroad. We may pursue additional international opportunities to enhance shareholder value under the right circumstances. There are risks inherent in international operations that may be beyond our control. These include the following risks that may have a negative impact on our results of operations:

    •
    changes in foreign currency exchange rates;
    •
    declines in economic conditions abroad;
    •
    changes in foreign political environments; and
    •
    changes in foreign laws.

    Competition

            We consider our principal competitors to be seven other major United States or internationally publicly-held, companies that own or operate regional malls in the United States. 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 are of the same type and are within the same market area as other competitive 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 malls compete against non-physical based forms of retailing such as catalog companies and e-commerce websites that offer similar retail products.

            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 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.

            Our size has allowed us to reduce dependence upon individual retail tenants. More than 3,800 different retailers occupy more than 20,800 stores in our Properties and no retail tenant represents more than 4.6% of our Properties' total minimum rents.

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    Environmental Matters

            General Compliance.    We believe that the Portfolio is in compliance, in all material respects, with all Federal, state and local environmental laws, ordinances and regulations regarding hazardous or toxic substances. Nearly all of the Portfolio has been subjected to Phase I or similar environmental audits (which generally involve only a review of records and visual inspection of the property without soil sampling or ground water analysis) by independent environmental consultants. Phase I environmental audits are intended to discover information regarding, and to evaluate the environmental condition of, the surveyed properties and surrounding properties. 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. 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.

            Asbestos-Containing Materials.    Asbestos-containing materials are present in most of the Properties, primarily in the form of vinyl asbestos tile, mastics and roofing materials, which we believe are generally in good condition. Fireproofing and insulation containing asbestos is also present in certain Properties in limited concentrations or in limited areas. The presence of such asbestos-containing materials does not violate currently applicable laws. Generally, we remove asbestos-containing materials as required in the ordinary course of any renovation, reconstruction, or expansion, and in connection with the retenanting of space.

            Underground Storage Tanks.    Several of the Properties contain, or at one time contained, underground storage tanks used to store waste oils or other petroleum products primarily related to auto service center establishments or emergency electrical generation equipment. We believe that regulated tanks have been removed, upgraded or abandoned in accordance with applicable environmental laws. Site assessments have revealed certain soil and groundwater contamination associated with such tanks at some of these Properties. Subsurface investigations (Phase II assessments) and remediation activities are either completed, ongoing, or scheduled to be conducted at such Properties. The costs of remediation with respect to such matters has not been material and we do not expect these costs will have a material adverse effect on our results of operations.

            Properties to be Developed or Acquired.    Land held for mall development or that may be acquired for development may contain residues or debris associated with the use of the land by prior owners or third parties. In certain instances, such residues or debris could be or contain hazardous wastes or hazardous substances. Prior to exercising any option to acquire properties, we typically conduct environmental due diligence consistent with acceptable industry standards.

Certain Activities

            During the past three years, we have:

    •
    issued 14,383,201 shares of common stock upon the conversion of Series A and B preferred, stock;
    •
    issued 19,817 shares of common stock in lieu of preferred dividends on Series A preferred stock;
    •
    issued 4,013,250 shares of common stock upon the conversion of units of limited partnership interest in the Operating Partnership;
    •
    issued 814,491 restricted shares of common stock, net of forfeitures, under The Simon Property Group 1998 Stock Incentive Plan;
    •
    issued 1,805,479 shares of common stock upon exercise of stock options under The Simon Property Group 1998 Stock Incentive Plan;
    •
    Issued 3,328,540 shares of Series H preferred stock in 2003 and repurchased 3,250,528 shares in 2003 and 78,012 shares in 2004;
    •
    borrowed a maximum amount of $863.0 million under our $1.25 billion unsecured revolving credit facility; the outstanding amount of borrowings as of December 31, 2003 was $327.9 million;

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    •
    as a co-borrower with the Operating Partnership, borrowed a maximum of $1.4 billion under a $1.4 billion unsecured acquisition loan taken out in connection with our merger in 1998 with Corporate Property Investors, Inc.; the outstanding balance of this loan was paid off on August 6, 2001;
    •
    as a co-borrower with the Operating Partnership, borrowed a maximum of $600 million under a $600 million 12-month acquisition credit facility taken out in connection with the Rodamco acquisition; the outstanding balance of this acquisition credit facility was paid off during the third quarter of 2002;
    •
    not made loans to other entities or persons, including our officers and directors, other than to the Management Company and certain officers to pay income taxes due upon the vesting of restricted stock; all loans previously made to current executive officers have been repaid in full;
    •
    not invested in the securities of other issuers for the purpose of exercising control, other than the Operating Partnership and certain wholly-owned subsidiaries and to acquire interests in real estate, except for 11,000 shares of Taubman Centers, Inc. common stock acquired in connection with our withdrawn tender offer for Taubman Centers, Inc.;
    •
    not underwritten securities of other issuers;
    •
    not engaged in the purchase and sale or turnover of investments; and
    •
    provided annual reports containing financial statements certified by independent public accountants and quarterly reports containing unaudited financial statements to our security holders.

    Employees

            At February 9, 2004 we and our affiliates employed approximately 4,040 persons at various properties and offices throughout the United States, of which approximately 1,600 were part-time. Approximately 860 of these employees were located at our corporate headquarters.

    Corporate Headquarters

            Our corporate headquarters are located at National City Center, 115 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 section of our Internet website as soon as reasonably practicable after we 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, and Governance Committee Charter.

10

    Executive Officers of the Registrants

            The following table sets forth certain information with respect to the executive officers of Simon Property as of December 31, 2003.

Name
   Age
   Position
Melvin Simon (1)   77   Co-Chairman
Herbert Simon (1)   69   Co-Chairman
David Simon (1)   42   Chief Executive Officer
Richard S. Sokolov   54   President and Chief Operating Officer
Hans C. Mautner   66   Chairman, Simon Global Limited and President, International Division
Gary L. Lewis   45   Executive Vice President — Leasing
Stephen E. Sterrett   48   Executive Vice President and Chief Financial Officer
J. Scott Mumphrey   52   Executive Vice President — Property Management
John Rulli   47   Executive Vice President — Chief Operating Officer — Operating Properties
James M. Barkley   52   General Counsel; Secretary
Andrew A. Juster   51   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 of Directors. For biographical information of Melvin Simon, Herbert Simon, David Simon, Hans C. Mautner, and Richard S. Sokolov, see Item 10 of this report.

            Mr. Lewis is the Executive Vice President — Leasing of Simon Property. Mr. Lewis joined 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. Sterrett serves as Simon Property's Executive Vice President and Chief Financial Officer. He joined MSA in 1989 and held various positions with MSA until 1993 when he became Simon Property's Senior Vice President and Treasurer. He became Simon Property's Chief Financial Officer in 2001.

            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 served as Executive Vice President and Chief Administrative Officer for the majority of 2003. 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. Barkley serves as Simon Property's General Counsel and Secretary. Mr. Barkley holds the same position for MSA. He joined MSA in 1978 as Assistant General Counsel for Development Activity.

            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.

11


Item 2. Properties

    North American Properties

            Our Properties primarily consist of regional malls and community shopping centers. Our Properties contain an aggregate of approximately 190.3 million square feet of GLA, of which we own 108.4 million square feet ("Owned GLA"). Total estimated retail sales at the Properties in 2003 were approximately $40 billion.

            Regional malls generally contain two or more anchors and a wide variety of smaller stores ("Mall" stores) located in enclosed malls connecting the anchors. Additional stores ("Freestanding" stores) are usually located along the perimeter of the parking area. Our 175 regional malls range in size from approximately 200,000 to 2.9 million square feet of GLA, with all but four regional malls over 400,000 square feet. Our regional malls contain in the aggregate more than 18,500 occupied stores, including over 700 anchors, which are mostly national retailers.

            Community shopping centers are generally unenclosed and smaller than regional malls. Our 67 community shopping centers generally range in size from approximately 50,000 to 950,000 square feet of GLA. Community shopping centers generally are of three types. First, we own "power centers" that are designed to serve a larger trade area and contain at least two anchors, and usually as many as 5 to 7, that are usually national retailers among the leaders in their markets and occupy more than 70% of the GLA in the center. Second, we own traditional community 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 also own open air centers adjacent to our regional malls designed to take advantage of the drawing power of the mall.

            We also own lifestyle centers that are included in regional malls, community centers, and properties under development. These centers are typically open air centers and contain at least 50,000 square feet of GLA of specialty retail regional mall type tenants as well as restaurants.

            We also have interests in four office and mixed-use Properties. The four office and mixed-use Properties range in size from approximately 496,000 to 1,214,000 square feet of GLA. Two of these Properties are regional malls with connected office buildings, and two are located in mixed-use developments and contain primarily office space.

            The following table provides data as of December 31, 2003:

 
   Regional
Malls
   Community
Centers
   Office and
Other
  
    % of total annualized base rent   91.3 % 5.6 % 3.1 %
    % of total GLA   89.0 % 9.4 % 1.6 %
    % of Owned GLA   85.5 % 11.7 % 2.8 %

            As of December 31, 2003, approximately 92.4% of the Mall and Freestanding Owned GLA in regional malls and the retail space in the mixed-use Properties was leased, and approximately 90.2% of Owned GLA in the community shopping centers was leased.

            We own 100% of 156 of our 246 Properties, control 14 Properties in which we have a joint venture interest, and hold the remaining 76 Properties through unconsolidated joint venture interests. We are the managing or co-managing general partner or member of 235 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.

12


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
    UNITED STATES
REGIONAL MALLS		                            

1.
 
Alton Square
 
IL
 
Alton (St. Louis)
 
Fee
 
100.0
%
Acquired 1993
 
79.2
%
426,315
 
212,746
 
639,061
 
Sears, JCPenney, Famous Barr
2.   Anderson Mall   SC   Anderson   Fee   100.0 % Built 1972   94.7 % 404,394   212,337   616,731   Belk, Belk Mens & Home Store, JCPenney, Sears, Goody's
3.   Apple Blossom Mall   VA   Winchester   Fee   49.1 %  (4) Acquired 1999   90.8 % 229,011   214,414   443,425   Belk, JCPenney, Sears
4.   Arsenal Mall   MA   Watertown (Boston)   Fee   100.0 % Acquired 1999   77.3 % 191,395   310,476   501,871   (20) Marshalls, Home Depot, Linens-N-Things, Filene's Basement, Old Navy
5.   Atrium Mall   MA   Chestnut Hill (Boston)   Fee   49.1 %  (4) Acquired 1999   97.7 %     205,477   205,477   Border Books & Music, Cheesecake Factory, Tiffany
6.   Auburn Mall   MA   Auburn (Boston)   Fee   49.1 %  (4) Acquired 1999   95.8 % 417,620   174,632   592,252   Filene's, Filene's Home Store, Sears
7.   Aurora Mall   CO   Aurora (Denver)   Fee   100.0 % Acquired 1998   76.2 % 566,015   448,381   1,014,396   JCPenney, Foley's, Foley's Mens & Home, Sears
8.   Aventura Mall (5)   FL   Miami Beach   Fee   33.3 %  (4) Built 1983   96.8 % 1,242,098   661,951   1,904,049   Macy's, Sears, Bloomingdales, JCPenney, Lord & Taylor (17), Burdines-Macy's
9.   Avenues, The   FL   Jacksonville   Fee   25.0 %  (14)  (4) Built 1990   95.7 % 754,956   362,343   1,117,299   Belk, Dillard's, JCPenney, Parisian, Sears
10.   Bangor Mall   ME   Bangor   Fee   32.6 %  (4) Acquired 2003   86.4 % 417,757   236,125   653,882   Filene's, JCPenney, Porteous, Sears
11.   Barton Creek Square   TX   Austin   Fee   100.0 % Built 1981   97.5 % 922,266   507,248   1,429,514   Dillard's Womens & Home, Dillard's Mens & Children, Foley's, Sears, Nordstrom, JCPenney
12.   Battlefield Mall   MO   Springfield   Fee and Ground Lease (2056)   100.0 % Built 1970   96.9 % 770,111   405,857   1,175,968   Dillard's Women, Dillard's Mens, Children & Home, Famous Barr, Sears, JCPenney
13.   Bay Park Square   WI   Green Bay   Fee   100.0 % Built 1980   99.5 % 447,508   268,282   715,790   Younkers, Elder-Beerman, Kohl's, Shopko
14.   Biltmore Square   NC   Asheville   Fee   100.0 % Built 1989   83.0 % 242,576   251,372   493,948   Belk, Dillard's, Proffitt's, Goody's
15.   Bowie Town Center   MD   Bowie (Washington, D.C.)   Fee   100.0 % Built 2001   100.0 % 338,567   325,684   664,251   Hecht's, Sears, Safeway, Barnes & Noble, Bed, Bath & Beyond, Old Navy
16.   Boynton Beach Mall   FL   Boynton Beach   Fee   100.0 % Built 1985   97.6 % 883,720   300,005   1,183,725   Macy's, Burdines-Macy's, Sears, Dillard's Mens & Home, Dillard's Women, JCPenney
17.   Brea Mall   CA   Brea   Fee   100.0 % Acquired 1998   98.4 % 874,802   441,126   1,315,928   Macy's, JCPenney, Robinsons-May, Nordstrom, Sears

13

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
18.   Broadway Square   TX   Tyler   Fee   100.0 % Acquired 1994   97.0 % 427,730   191,011   618,741   Dillard's, JCPenney, Sears
19.   Brunswick Square   NJ   East Brunswick (New York)   Fee   100.0 % Built 1973   93.9 % 467,626   305,355   772,981   Macy's, JCPenney, Barnes & Noble
20.   Burlington Mall   MA   Burlington (Boston)   Ground Lease
(2048)		   100.0 % Acquired 1998   99.8 % 836,236   417,847   1,254,083   Macy's, Lord & Taylor, Filene's, Sears
21.   Cape Cod Mall   MA   Hyannis   Ground Leases (7)
(2009-2073)		   49.1 %  (4) Acquired 1999   100.0 % 420,199   303,574   723,773   Macy's, Filene's, Marshalls, Sears, Best Buy, Barnes & Noble
22.   Castleton Square   IN   Indianapolis   Fee   100.0 % Built 1972   97.2 % 1,105,913   366,272   1,472,185   Galyan's, L.S. Ayres, Lazarus-Macy's, JCPenney, Sears, Von Maur
23.   Century III Mall   PA   West Mifflin (Pittsburgh)   Fee   100.0 % Built 1979   88.2 % 773,439   507,556   1,280,995   JCPenney, Sears, Kaufmann's, Kaufmann's Home Store, Wickes Furniture, Steve & Barry's
24.   Charlottesville Fashion Square   VA   Charlottesville   Ground Lease
(2076)		   100.0 % Acquired 1997   98.5 % 381,153   191,288   572,441   Belk Womens & Children, Belk Mens & Home, JCPenney, Sears
25.   Chautauqua Mall   NY   Lakewood   Fee   100.0 % Built 1971   95.0 % 213,320   219,014   432,334   Sears, JCPenney, Office Max, The Bon Ton
26.   Cheltenham Square   PA   Philadelphia   Fee   100.0 % Built 1981   97.0 % 368,266   270,987   639,253   Burlington Coat Factory, Home Depot, Value City, Seaman's Furniture, Shop Rite
27.   Chesapeake Square   VA   Chesapeake   Fee and Ground Lease (2062)   75.0 %  (13) Built 1989   96.9 % 537,279   272,040   809,319   Dillard's Women, Dillard's Mens, Children & Home, JCPenney, Sears, Hecht's, Target
28.   Cielo Vista Mall   TX   El Paso   Fee and Ground Lease (7) (2005)   100.0 % Built 1974   97.7 % 793,716   399,062   1,192,778   Dillard's Womens & Furniture, Dillard's Mens, Children & Home, JCPenney, Foley's, Sears
29.   Circle Centre   IN   Indianapolis   Property Lease
(2097)		   14.7 %  (4) Built 1995   96.7 % 350,000   441,116   791,116   Nordstrom, Parisian, Gameworks
30.   College Mall   IN   Bloomington   Fee and Ground Lease (7) (2048)   100.0 % Built 1965   83.5 % 439,766   266,006   705,772   Sears, L.S. Ayres, Target, (8)
31.   Columbia Center   WA   Kennewick   Fee   100.0 % Built 1987   97.8 % 408,052   333,553   741,605   Sears, JCPenney, Barnes & Noble, Bon-Macy's, Bon-Macy's Mens & Children
32.   Coral Square   FL   Coral Springs (Miami-Ft. Lauderdale)   Fee   97.2 % Built 1984   97.4 % 648,144   296,619   944,763   Dillard's, JCPenney, Sears, Burdines-Macy'sMens, Children & Home, Burdines-Macy's Women
33.   Cordova Mall   FL   Pensecola   Fee   100.0 % Acquired 1998   89.8 % 488,263   345,563   833,826   Parisian, Dillard's Men, Dillard's Women, Best Buy, Bed, Bath & Beyond, Cost Plus World Market (6)

14

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
34.   Cottonwood Mall   NM   Albuquerque   Fee   100.0 % Built 1996   84.8 % 631,556   409,743   1,041,299   Dillard's, Foley's, JCPenney, Mervyn's, Sears
35.   Crossroads Mall   NE   Omaha   Fee   100.0 % Acquired 1994   94.6 % 609,669   248,914   858,583   Dillard's, Sears, Younkers, Barnes & Noble
36.   Crystal Mall   CT   Waterford   Fee   74.6 %  (4) Acquired 1998   97.8 % 442,311   351,425   793,736   Macy's, Filene's, JC Penney, Sears
37.   Crystal River Mall   FL   Crystal River   Fee   100.0 % Built 1990   96.7 % 302,495   121,798   424,293   JCPenney, Sears, Belk, Kmart
38.   Dadeland Mall   FL   North Miami Beach   Fee   50.0 %  (4) Acquired 1997   97.9 % 1,062,072   334,404   1,396,476   Saks Fifth Avenue, JCPenney, Burdines-Macy's, Burdines-Macy's Home Gallery, The Limited, Nordstrom (6)
39.   DeSoto Square   FL   Bradenton   Fee   100.0 % Built 1973   92.1 % 435,467   255,776   691,243   JCPenney, Sears, Dillard's, Burdines-Macy's
40.   Eastland Mall   IN   Evansville   Fee   50.0 %  (4) Acquired 1998   90.5 % 532,955   365,646   898,601   JCPenney, Famous Barr, Lazarus-Macy's, (8)
41.   Eastland Mall   OK   Tulsa   Fee   100.0 % Built 1986   69.3 % 305,732   177,166   482,898   Dillard's, Mervyn's, Mickey's, (8)
42.   Edison Mall   FL   Fort Meyers   Fee   100.0 % Acquired 1997   98.1 % 742,667   299,405   1,042,072   Dillard's, JCPenney, Sears, Burdines-Macy's Mens, Children & Home, Burdines-Macy's Women
43.   Emerald Square   MA   North Attleboro   Fee   49.1 %  (4) Acquired 1999   98.5 % 647,372   375,149   1,022,521   Filene's, JCPenney, Lord & Taylor, Sears
44.   Empire Mall (5)   SD   Sioux Falls   Fee and Ground Lease (7) (2013)   50.0 %  (4) Acquired 1998   92.4 % 497,341   549,942   1,047,283   JCPenney, Younkers, Sears, Richman Gordman, Marshall Field's
45.   Fashion Mall at Keystone at the Crossing, The   IN   Indianapolis   Ground Lease
(2067)		   100.0 % Acquired 1997   91.4 % 249,721   408,678   658,399   (20) Parisian, Saks Fifth Avenue
46.   Fashion Valley Mall   CA   San Diego   Fee   50.0 %  (4) Acquired 2001   99.4 % 1,053,305   653,913   1,707,218   JCPenney, Macy's, Neiman-Marcus, Nordstrom, Robinson-May, Saks Fifth Avenue
47.   Florida Mall, The   FL   Orlando   Fee   50.0 %  (4) Built 1986   97.4 % 1,232,416   615,247   1,847,663   Dillard's, JCPenney, Lord & Taylor (17), Saks Fifth Avenue, Sears, Burdines-Macy's, Nordstrom
48.   Forest Mall   WI   Fond Du Lac   Fee   100.0 % Built 1973   93.6 % 327,260   173,994   501,254   JCPenney, Kohl's, Younkers, Sears, Staples
49.   Forum Shops at Caesars, The   NV   Las Vegas   Ground Lease (2050)   100.0 % Built 1992   97.3 %     483,838   483,838    
50.   Granite Run Mall   PA   Media (Philadelphia)   Fee   50.0 %  (4) Acquired 1998   94.9 % 500,809   546,358   1,047,167   JCPenney, Sears, Boscovs
51.   Great Lakes Mall   OH   Mentor (Cleveland)   Fee   100.0 % Built 1961   92.5 % 879,300   422,040   1,301,340   Dillard's Men, Dillard's Women, Kaufmann's, JCPenney, Sears
52.   Greendale Mall   MA   Worcester (Boston)   Fee and Ground Lease (7) (2009)   49.1 %  (4) Acquired 1999   98.8 % 132,634   298,662   431,296   (20) Best Buy, Marshalls, T.J. Maxx & More, Family Fitness, DSW Shoe Warehouse
53.   Greenwood Park Mall   IN   Greenwood   Fee   100.0 % Acquired 1979   98.2 % 898,928   412,711   1,311,639   JCPenney, JCPenney Home Store, Lazarus-Macy's, L.S. Ayres, Sears, Von Maur, Dick's Sporting Goods (6)

15

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
54.   Gulf View Square   FL   Port Richey (Tampa-St. Pete)   Fee   100.0 % Built 1980   97.1 % 461,852   234,012   695,864   Sears, Dillard's, JCPenney, Burdines-Macy's, Linens N Things (6), Best Buy (6)
55.   Gwinnett Place   GA   Duluth (Atlanta)   Fee   50.0 %  (4) Acquired 1998   90.7 % 843,609   433,571   1,277,180   Parisian, Rich's-Macy's, JCPenney, Sears, (8)
56.   Haywood Mall   SC   Greenville   Fee and Ground Lease (7) (2017)   100.0 % Acquired 1998   96.9 % 913,633   329,971   1,243,604   Rich's-Macy's, Sears, Dillard's, JCPenney, Belk
57.   Heritage Park Mall   OK   Midwest City   Fee   100.0 % Built 1978   59.4 % 382,700   223,639   606,339   Dillard's, Sears, (8)
58.   Highland Mall (5)   TX   Austin   Fee and Ground Lease (2070)   50.0 %  (4) Acquired 1998   94.9 % 732,000   358,685   1,090,685   Dillard's Women & Home, Dillard's Mens & Children, Foley's, JCPenney
59.   Hutchinson Mall   KS   Hutchinson   Fee   100.0 % Built 1985   90.1 % 277,665   247,703   525,368   Dillard's, JCPenney, Sears, Hobby Lobby
60.   Independence Center   MO   Independence (Kansas City)   Fee   100.0 % Acquired 1994   96.5 % 499,284   522,772   1,022,056   Dillard's, Sears, The Jones Store Co.
61.   Indian River Mall   FL   Vero Beach   Fee   50.0 %  (4) Built 1996   88.3 % 445,552   302,456   748,008   Sears, JCPenney, Dillard's, Burdines-Macy's
62.   Ingram Park Mall   TX   San Antonio   Fee   100.0 % Built 1979   95.5 % 751,704   377,536   1,129,240   Dillard's, Dillard's Home Center, Foley's, JCPenney, Sears, Beall's
63.   Irving Mall   TX   Irving (Dallas-Ft. Worth)   Fee   100.0 % Built 1971   95.9 % 726,574   376,567   1,103,141   Foley's, Dillard's, Mervyn's, Sears, Barnes & Noble, FYE, Circuit City (6)
64.   Jefferson Valley Mall   NY   Yorktown Heights (New York)   Fee   100.0 % Built 1983   97.1 % 310,095   277,055   587,150   Macy's, Sears, H&M
65.   King of Prussia Mall   PA   King of Prussia   Fee   12.9 %  (4) Acquired 2003   98.0 % 1,775,871   1,074,756   2,850,627   (20) JCPenney, Lord & Taylor, Neiman Marcus, Nordstrom, Sears, Strawbridge's, Bloomingdale's, Macy's
66.   Knoxville Center   TN   Knoxville   Fee   100.0 % Built 1984   91.9 % 597,028   381,539   978,567   Dillard's, JCPenney, Proffitt's, Sears, The Rush
67.   La Plaza Mall   TX   McAllen   Fee and Ground Lease (7) (2040)   100.0 % Built 1976   99.6 % 778,768   426,751   1,205,519   Dillard's, JCPenney, Foley's, Foley's Home Store, Sears, Beall's, Joe Brand-Lady Brand
68.   Lafayette Square   IN   Indianapolis   Fee   100.0 % Built 1968   97.5 % 937,223   272,091   1,209,314   JCPenney, L.S. Ayres, Sears, Burlington Coat Factory, Steve & Barry's, Kittles Rooms Express, (8)
69.   Laguna Hills Mall   CA   Laguna Hills (Orange County)   Fee   100.0 % Acquired 1997   95.8 % 536,500   331,133   867,633   Macy's, JCPenney, Sears
70.   Lake Square Mall   FL   Leesburg   Fee   50.0 %  (4) Acquired 1998   91.8 % 296,037   264,930   560,967   JCPenney, Sears, Belk, Target
71.   Lakeline Mall   TX   Austin   Fee   100.0 % Built 1995   94.3 % 745,179   355,192   1,100,371   Dillard's, Foley's, Sears, JCPenney, Mervyn's
72.   Las Vegas Premium Outlets (5)   NV   Las Vegas   Fee   50.0 %  (4) Built 2003   96.3 %     432,478   432,478    

16

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
73.   Lehigh Valley Mall   PA   Whitehall   (15)   (15)   Acquired 2003   91.2 % 564,353   502,908   1,067,261   (20) JCPenney, Macy's, Strawbridge's
74.   Lenox Square   GA   Atlanta   Fee   100.0 % Acquired 1998   89.6 % 821,356   662,867   1,484,223   Neiman Marcus, Rich's-Macy's, Bloomingdale's
75.   Liberty Tree Mall   MA   Danvers (Boston)   Fee   49.1 %  (4) Acquired 1999   97.6 % 498,000   359,018   857,018   Marshalls, Sports Authority, Target, Old Navy, Stop and Shop, Best Buy, Staples, Bed, Bath & Beyond, Kohl's
76.   Lima Mall   OH   Lima   Fee   100.0 % Built 1965   98.3 % 541,861   203,238   745,099   Elder-Beerman, Sears, Lazarus-Macy's, JCPenney
77.   Lincolnwood Town Center   IL   Lincolnwood (Chicago)   Fee   100.0 % Built 1990   98.1 % 220,830   201,045   421,875   Kohl's, Carson Pirie Scott
78.   Lindale Mall (5)   IA   Cedar Rapids   Fee   50.0 %  (4) Acquired 1998   89.5 % 305,563   385,392   690,955   Von Maur, Sears, Younkers
79.   Livingston Mall   NJ   Livingston (New York)   Fee   100.0 % Acquired 1998   99.6 % 616,128   369,449   985,577   Macy's, Sears, Lord & Taylor
80.   Longview Mall   TX   Longview   Fee   100.0 % Built 1978   90.3 % 402,843   210,112   612,955   Dillard's, Dillard's Men, JCPenney, Sears, Beall's, (8)
81.   Mall at Chestnut Hill   MA   Newton (Boston)   Lease (2039) (9)   47.2 %  (4) Acquired 2002   96.5 % 297,253   180,932   478,185   Bloomingdale's, Filene's
82.   Mall at Rockingham Park   NH   Salem (Boston)   Fee   24.6 %  (4) Acquired 1999   100.0 % 638,111   382,110   1,020,221   Macy's, Filene's, JCPenney, Sears
83.   Mall of America   MN   Bloomington (Minneapolis-St. Paul)   Fee   27.5 %  (4)  (12) Acquired 1999   92.7 % 1,220,305   1,558,937   2,779,242   Macy's, Bloomingdales, Nordstrom, Sears, Knott's Camp Snoopy, Barnes & Noble, Old Navy, DSW Shoe Warehouse, Marshalls, Sportmart, Nordstrom Rack
84.   Mall of Georgia   GA   Mill Creek (Atlanta)   Fee   50.0 %  (13)  (4) Built 1999   94.2 % 989,590   795,581   1,785,171   Lord & Taylor (17), Rich's-Macy's, Dillard's, Galyan's, Haverty's, JCPenney, Nordstrom, Bed, Bath & Beyond
85.   Mall of New Hampshire   NH   Manchester (Boston)   Fee   49.1 %  (4) Acquired 1999   97.8 % 444,889   361,605   806,494   Filene's, JCPenney, Sears, Best Buy
86.   Maplewood Mall   MN   Minneapolis   Fee   100.0 % Acquired 2002   88.5 % 578,060   330,337   908,397   Sears, Marshall Field's, Kohl's, Mervyn's
87.   Markland Mall   IN   Kokomo   Ground Lease
(2041)		   100.0 % Built 1968   98.7 % 273,094   140,070   413,164   Lazarus-Macy's, Sears, Target
88.   McCain Mall   AR   N. Little Rock   Fee and Ground Lease (10) (2032)   100.0 % Built 1973   99.7 % 554,156   222,306   776,462   Sears, Dillard's, JCPenney, M.M. Cohn
89.   Melbourne Square   FL   Melbourne   Fee   100.0 % Built 1982   92.0 % 471,173   258,236   729,409   Belk, Dillard's Mens, Children & Home, Dillard's Women, JCPenney, Burdines-Macy's, Office Max
90.   Menlo Park Mall   NJ   Edison (New York)   Fee   100.0 % Acquired 1997   92.1 % 527,591   756,111   1,283,702   (20) Macy's Women, Macy's Men, Macy's Children & Home, Nordstrom, Barnes & Noble
91.   Mesa Mall (5)   CO   Grand Junction   Fee   50.0 %  (4) Acquired 1998   92.4 % 425,817   435,741   861,558   Sears, Herberger's, JCPenney, Target, Mervyn's, Gant Sports

17

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
92.   Metrocenter   AZ   Phoenix   Fee   50.0 %  (4) Acquired 1998   94.0 % 876,027   515,828   1,391,855   Macy's, Dillard's, Robinsons-May, JCPenney, Sears, ZeroG Sports & Entertainment
93.   Miami International Mall   FL   South Miami   Fee   47.8 %  (4) Built 1982   95.8 % 783,308   290,791   1,074,099   Sears, Dillard's, JCPenney, Burdines-Macy's Mens & Home, Burdines-Macy's Women & Children
94.   Midland Park Mall   TX   Midland   Fee   100.0 % Built 1980   94.3 % 339,113   278,980   618,093   Dillard's, Dillard's Mens & Juniors, JCPenney, Sears, Beall's, Ross Dress for Less
95.   Miller Hill Mall   MN   Duluth   Ground Lease
(2008)		   100.0 % Built 1973   98.7 % 429,508   375,911   805,419   JCPenney, Sears, Younkers, Barnes & Noble
96.   Montgomery Mall   PA   Montgomeryville   Fee   23.1 %  (4) Acquired 2003   91.9 % 684,855   435,540   1,120,395   JCPenney, Macy's, Sears, Strawbridge's
97.   Muncie Mall   IN   Muncie   Fee   100.0 % Built 1970   97.3 % 435,756   218,986   654,742   JCPenney, L.S. Ayres, Sears, Elder Beerman
98.   Nanuet Mall   NY   Nanuet (New York)   Fee   100.0 % Acquired 1998   90.7 % 583,711   331,915   915,626   Macy's, Boscov, Sears
99.   North East Mall   TX   Hurst (Dallas-Ft. Worth)   Fee   100.0 % Built 1971   97.9 % 1,194,589   357,283   1,551,872   Saks Fifth Avenue, Nordstrom, Dillard's, JCPenney, Sears, Foley's, (8)
100.   Northfield Square Mall   IL   Bourbonnais (Chicago)   Fee   31.6 %  (13)  (4) Built 1990   83.7 % 310,994   247,375   558,369   Sears, JCPenney, Carson Pirie Scott Womens, Carson Pirie Scott Mens, Children & Home
101.   Northgate Mall   WA   Seattle   Fee   100.0 % Built 1987   99.2 % 688,391   308,873   997,264   Nordstrom, JCPenney, Gottschalk, Bon-Macy's, Toys "R" Us
102.   Northlake Mall   GA   Atlanta   Fee   100.0 % Acquired 1998   94.9 % 665,745   296,402   962,147   Parisian, Rich's-Macy's, Sears, JCPenney
103.   Northpark Mall   IA   Davenport   Fee   50.0 %  (4) Acquired 1998   92.5 % 651,533   426,420   1,077,953   Von Maur, Younkers, Dillard's, JCPenney, Sears, Barnes & Noble
104.   Northshore Mall   MA   Peabody (Boston)   Fee   49.1 %  (4) Acquired 1999   97.7 % 989,277   695,441   1,684,718   Macy's, Filene's, JCPenney, Lord & Taylor, Sears, Filene's Basement, Bally Total Fitness
105.   Northwoods Mall   IL   Peoria   Fee   100.0 % Built 1983   98.7 % 472,969   222,415   695,384   Famous Barr, JCPenney, Sears
106.   Oak Court Mall   TN   Memphis   Fee   100.0 % Acquired 1997   86.6 % 535,000   318,375   853,375   (20) Dillard's Women, Dillard's Mens, Children & Home, Goldsmith's-Macy's
107.   Ocean County Mall   NJ   Toms River (New York)   Fee   100.0 % Acquired 1998   96.6 % 620,755   276,246   897,001   Macy's, Boscov's, JCPenney, Sears
108.   Orange Park Mall   FL   Orange Park   Fee   100.0 % Acquired 1994   97.2 % 534,180   390,175   924,355   Dillard's, JCPenney, Sears, Belk
109.   Orland Square   IL   Orland Park (Chicago)   Fee   100.0 % Acquired 1997   96.6 % 773,295   433,648   1,206,943   JCPenney, Marshall Field's, Sears, Carson Pirie Scott
110.   Oxford Valley Mall   PA   Langhorne   Fee   65.8 % Acquired 2003   94.3 % 762,558   509,674   1,272,232   (20) JCPenney, Macy's, Sears, Strawbridge's

18

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
111.   Paddock Mall   FL   Ocala   Fee   100.0 % Built 1980   95.3 % 387,378   172,786   560,164   JCPenney, Sears, Belk, Burdines-Macy's
112.   Palm Beach Mall   FL   West Palm Beach   Fee   100.0 % Built 1967   96.9 % 749,288   335,941   1,085,229   Dillard's, JCPenney, Sears, Burdines-Macy's, Borders Books & Music, DSW Shoe Warehouse, Old Navy
113.   Penn Square   OK   Oklahoma City   Ground Lease (2060)   94.5 % Acquired 2002   97.4 % 588,137   425,255   1,013,392   Foley's, JCPenney, Dillard's Womens, Dillard's Mens, Children & Home
114.   Pheasant Lane Mall   NH   Nashua (Boston)   (16)   (16 )    (4) Acquired 2002   98.5 % 675,759   313,135   988,894   Macy's, Filene's, JC Penney, Sears, Target
115.   Phipps Plaza   GA   Atlanta   Fee   100.0 % Acquired 1998   96.9 % 472,385   348,931   821,316   Lord & Taylor (17), Parisian, Saks Fifth Avenue
116.   Port Charlotte Town Center   FL   Port Charlotte   Ground Lease
(2064)		   80.0 %  (13) Built 1989   88.9 % 458,554   321,928   780,482   Dillard's, JCPenney, Beall's, Sears, Burdines-Macy's, DSW Shoe Warehouse
117.   Prien Lake Mall   LA   Lake Charles   Fee and Ground Lease (7) (2025)   100.0 % Built 1972   97.9 % 631,762   178,931   810,693   Dillard's, JCPenney, Foley's (19), Sears
118.   Quaker Bridge Mall   NJ   Lawrenceville   Fee   39.6 %  (4) Acquired 2003   95.9 % 686,760   423,047   1,109,807   JCPenney, Lord & Taylor, Macy's, Sears
119.   Raleigh Springs Mall   TN   Memphis   Fee and Ground Lease (7) (2018)   100.0 % Built 1971   45.0 % 691,230   226,369   917,599   Sears, (8)
120.   Richardson Square   TX   Richardson (Dallas-Ft. Worth)   Fee   100.0 % Built 1977   73.4 % 471,436   283,900   755,336   Dillard's, Sears, Target, Ross Dress for Less, Barnes & Noble, Oshman's
121.   Richmond Town Square   OH   Richmond Heights (Cleveland)   Fee   100.0 % Built 1966   99.5 % 685,251   331,526   1,016,777   Sears, JCPenney, Kaufmann's, Barnes & Noble
122.   River Oaks Center   IL   Calumet City (Chicago)   Fee   100.0 % Acquired 1997   90.0 % 834,588   544,223   1,378,811   (20) Sears, JCPenney, Carson Pirie Scott, Marshall Field's
123.   Rockaway Townsquare   NJ   Rockaway (New York)   Fee   100.0 % Acquired 1998   95.3 % 786,626   461,697   1,248,323   Macy's, Lord & Taylor, JCPenney, Sears
124.   Rolling Oaks Mall   TX   San Antonio   Fee   100.0 % Built 1988   68.3 % 460,857   276,312   737,169   Sears, Dillard's, Foley's, Tony Hawk's Skate Park, JC Penney (6)
125.   Roosevelt Field Mall   NY   Garden City (New York)   Fee and Ground Lease (7) (2090)   100.0 % Acquired 1998   98.2 % 1,430,425   750,101   2,180,526   Macy's, Bloomingdale's, JCPenney, Nordstrom, Gaylans, Bloomingdale's Furniture (6)
126.   Ross Park Mall   PA   Pittsburgh   Fee   100.0 % Built 1986   97.5 % 827,015   407,583   1,234,598   Lazarus-Macy's, JCPenney, Sears, Kaufmann's, Media Play, DSW Shoe Warehouse
127.   Rushmore Mall (5)   SD   Rapid City   Fee   50.0 %  (4) Acquired 1998   98.1 % 470,660   364,948   835,608   JCPenney, Sears, Herberger's, Hobby Lobby, Target, Scheel's Sports
128.   Santa Rosa Plaza   CA   Santa Rosa   Fee   100.0 % Acquired 1998   93.6 % 428,258   270,487   698,745   Macy's, Mervyn's, Sears
129.   Seminole Towne Center   FL   Sanford   Fee   45.0 %  (14)  (4) Built 1995   93.8 % 768,798   384,802   1,153,600   Dillard's, JCPenney, Parisian, Sears, Burdines-Macy's
130.   Shops at Mission Viejo Mall, The   CA   Mission Viejo (Orange County)   Fee   100.0 % Built 1979   98.6 % 677,215   472,699   1,149,914   Macy's, Saks Fifth Avenue, Robinsons-May, Nordstrom

19

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
131.   Shops at Sunset Place, The   FL   Miami   Fee   37.5 %  (4) Built 1999   88.7 %     500,143   500,143   Niketown, Barnes & Noble, Gameworks, Virgin Megastore, Z Gallerie
132.   Smith Haven Mall   NY   Lake Grove (New York)   Fee   25.0 %  (4) Acquired 1995   96.7 % 902,595   455,400   1,357,995   Macy's, Sears, JCPenney, H&M, Stern's
133.   Solomon Pond Mall   MA   Marlborough (Boston)   Fee   49.1 %  (4) Acquired 1999   100.0 % 538,843   373,754   912,597   Filene's, Sears, JCPenney, Linens-N-Things
134.   Source, The   NY   Westbury (New York)   Fee   25.5 %  (4) Built 1997   93.5 % 210,798   518,354   729,152   Off 5th-Saks Fifth Avenue, Fortunoff, Nordstrom Rack, Old Navy, Circuit City, Virgin Megastore, Rosewood Home Furnishings, H&M
135.   South Hills Village   PA   Pittsburgh   Fee   100.0 % Acquired 1997   96.5 % 655,987   454,033   1,110,020   Sears, Kaufmann's, Lazarus-Macy's
136.   South Shore Plaza   MA   Braintree (Boston)   Fee   100.0 % Acquired 1998   98.3 % 847,603   614,037   1,461,640   Macy's, Filene's, Lord & Taylor, Sears, Filene's Basement
137.   Southern Hills Mall (5)   IA   Sioux City   Fee   50.0 %  (4) Acquired 1998   71.0 % 372,937   428,619   801,556   Younkers, Sears, Sheel's Sporting Goods, Barnes & Noble (6), (8)
138.   Southern Park Mall   OH   Boardman   Fee   100.0 % Built 1970   97.5 % 811,858   385,922   1,197,780   Dillard's, JCPenney, Sears, Kaufmann's
139.   Southgate Mall   AZ   Yuma   Fee   100.0 % Acquired 1988   99.7 % 252,264   69,310   321,574   Sears, Dillard's, JCPenney, Albertson's
140.   SouthPark   NC   Charlotte   Fee & Ground Lease (11) (2040)   100.0 % Acquired 2002   87.9 % 857,254   332,104   1,189,358   Nordstrom (6), Hecht's, Belk, Dillard's, Gaylans (6)
141.   Southpark Mall   IL   Moline   Fee   50.0 %  (4) Acquired 1998   93.5 % 578,056   447,997   1,026,053   JCPenney, Younkers, Sears, Von Maur
142.   SouthRidge Mall (5)   IA   Des Moines   Fee   50.0 %  (4) Acquired 1998   71.2 % 497,806   504,732   1,002,538   Sears, Younkers, JCPenney, Target, (8)
143.   Square One Mall   MA   Saugus (Boston)   Fee   49.1 %  (4) Acquired 1999   99.4 % 540,101   324,593   864,694   Filene's, Sears, Best Buy, T.J. Maxx N More, Filene's Basement
144.   St. Charles Towne Center   MD   Waldorf (Washington, D.C.)   Fee   100.0 % Built 1990   96.0 % 631,602   354,007   985,609   Sears, JCPenney, Kohl's, Hecht's, Hecht's Home Store
145.   Stanford Shopping Center   CA   Palo Alto (San Francisco)   Ground Lease
(2054)		   100.0 % Acquried 2003   97.8 % 849,153   522,459   1,371,612   Macy's, Neiman Marcus, Nortstrom, Bloomingdales
146.   Summit Mall   OH   Akron (Cleveland)   Fee   100.0 % Built 1965   94.1 % 432,936   331,297   764,233   Dillard's Women & Children, Dillard's Mens & Home, Kaufmann's
147.   Sunland Park Mall   TX   El Paso   Fee   100.0 % Built 1988   89.9 % 575,837   342,131   917,968   JCPenney, Mervyn's, Sears, Dillard's Women & Children, Dillard's Mens & Home
148.   Tacoma Mall   WA   Tacoma   Fee   100.0 % Built 1987   98.7 % 924,045   370,419   1,294,464   Nordstrom, Sears, JCPenney, Bon-Macy's, Mervyn's
149.   The Galleria   TX   Houston   Fee   31.5 %  (4) Acquired 2002   88.3 % 1,300,466   1,104,346   2,404,812   Macy's, Saks Fifth Avenue, Neiman Marcus, Lord & Taylor (17), Nordstrom, Foley's, University Club
150.   Tippecanoe Mall   IN   Lafayette   Fee   100.0 % Built 1973   98.5 % 568,373   291,153   859,526   L.S. Ayres, JCPenney, Sears, Kohl's, (8)

20

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
151.   Town Center at Boca Raton   FL   Boca Raton   Fee   100.0 % Acquired 1998   99.4 % 1,061,076   494,247   1,555,323   Lord & Taylor (17), Saks Fifth Avenue, Bloomingdale's, Sears, Burdines-Macy's, Nordstrom
152.   Town Center at Cobb   GA   Kennesaw (Atlanta)   Fee   50.0 %  (4) Acquired 1998   97.9 % 851,346   421,107   1,272,453   Rich's-Macy's, Parisian, Sears, JCPenney, Rich's-Macy's Furniture
153.   Towne East Square   KS   Wichita   Fee   100.0 % Built 1975   95.9 % 779,490   399,619   1,179,109   Dillard's, JCPenney, Sears, Von Maur
154.   Towne West Square   KS   Wichita   Fee   100.0 % Built 1980   89.4 % 619,269   336,062   955,331   Dillard's Women & Home, Dillard's Mens & Children, Sears, JCPenney, Dick's Sporting Goods
155.   Treasure Coast Square   FL   Jensen Beach   Fee   100.0 % Built 1987   91.7 % 511,372   358,197   869,569   Dillard's, Sears, Borders, JCPenney, Burdines-Macy's
156.   Trolley Square   UT   Salt Lake City   Fee   90.0 % Acquired 1986   81.2 %     221,863   221,863   —
157.   Tyrone Square   FL   St. Petersburg (Tampa-St. Pete)   Fee   100.0 % Built 1972   99.1 % 748,269   380,012   1,128,281   Dillard's, JCPenney, Sears, Borders, Burdines-Macy's
158.   University Mall   AR   Little Rock   Ground Lease
(2026)		   100.0 % Built 1967   89.8 % 412,761   153,192   565,953   JCPenney, M.M. Cohn
159.   University Mall   FL   Pensacola   Fee   100.0 % Acquired 1994   82.8 % 478,449   228,579   707,028   JCPenney, Sears, McRae's
160.   University Park Mall   IN   Mishawaka   Fee   60.0 % Built 1979   98.4 % 622,508   320,315   942,823   L.S. Ayres, JCPenney, Sears, Marshall Field's
161.   Upper Valley Mall   OH   Springfield   Fee   100.0 % Built 1971   93.3 % 479,418   271,132   750,550   Lazarus-Macy's, JCPenney, Sears, Elder-Beerman
162.   Valle Vista Mall   TX   Harlingen   Fee   100.0 % Built 1983   97.5 % 389,781   266,579   656,360   Dillard's, Mervyn's, Sears, JCPenney, Marshalls, Beall's, Office Max
163.   Valley Mall   VA   Harrisonburg   Fee   50.0 %  (4) Acquired 1998   99.2 % 307,798   179,631   487,429   JCPenney, Belk, Wal-Mart, Peebles
164.   Virginia Center Commons   VA   Glen Allen   Fee   100.0 % Built 1991   96.5 % 506,639   280,855   787,494   Dillard's Women, Dillard's Mens, Children & Home, Hecht's, JCPenney, Sears
165.   Walt Whitman Mall   NY   Huntington Station (New York)   Ground Rent
(2012)		   100.0 % Acquired 1998   95.7 % 742,214   292,533   1,034,747   Macy's, Lord & Taylor, Bloomingdale's, Saks Fifth Avenue, Organized Living
166.   Washington Square   IN   Indianapolis   Fee   100.0 % Built 1974   87.0 % 706,174   308,064   1,014,238   L.S. Ayres, Target, Sears, Burlington Coat Factory (6), (8)
167.   West Ridge Mall   KS   Topeka   Fee   100.0 % Built 1988   66.1 % 716,811   310,002   1,026,813   Dillard's, JCPenney, The Jones Store, Sears, (8)
168.   West Town Mall   TN   Knoxville   Ground Lease
(2042)		   50.0 % Acquired 1991   96.7 % 878,311   450,691   1,329,002   Parisian, Dillard's, JCPenney, Proffitt's, Sears
169.   Westchester, The   NY   White Plains (New York)   Fee   40.0 % Acquired 1997   99.5 % 349,393   475,026   824,419   Neiman Marcus, Nordstrom
170.   Westminster Mall   CA   Westminster (Orange County)   Fee   100.0 % Acquired 1998   86.5 % 716,939   503,533   1,220,472   Sears, JCPenney, Robinsons-May, Macy's
171.   White Oaks Mall   IL   Springfield   Fee   77.5 % Built 1977   95.1 % 601,708   347,497   949,205   Famous Barr, Sears, Bergner's, Dick's Sporting Goods (6)
172.   Wolfchase Galleria   TN   Memphis   Fee   94.5 % Acquired 2002   96.9 % 761,648   506,453   1,268,101   Goldsmith's-Macy's, JC Penney, Sears, Dillard's
173.   Woodland Hills Mall   OK   Tulsa   Fee   47.2 %  (4) Acquired 2002   96.8 % 709,447   382,848   1,092,295   Foley's, JCPenney, Sears, Dillard's
174.   Woodville Mall   OH   Northwood   Fee   100.0 % Built 1969   79.6 % 518,792   254,613   773,405   Sears, Elder-Beerman, Andersons, Woodville Skate Park

21

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
    COMMUNITY SHOPPING CENTERS                            

1.
 
Arboretum, The
 
TX
 
Austin
 
Fee
 
100.0
%
Acquired 1998
 
94.9
%
35,773
 
170,738
 
206,511
 
Barnes & Noble, Cheescake Factory
2.   Bloomingdale Court   IL   Bloomingdale   Fee   100.0 % Built 1987   94.1 % 436,255   168,256   604,511   Best Buy, T.J. Maxx N More, Frank's Nursery, Office Max, Old Navy, Linens-N-Things, Wal-Mart, Cicuit City, Dress Barn, JoAnn Etc (6)
3.   Boardman Plaza   OH   Youngstown   Fee   100.0 % Built 1951   72.4 % 375,502   265,273   640,775   Burlington Coat Factory, Giant Eagle, Michael's, Linens-N-Things, T.J. Maxx, Steinmart, Sav-A-Lot, (8)
4.   Bridgeview Court   IL   Bridgeview   Fee   100.0 % Built 1988   86.9 % 216,491   57,187   273,678   Northwestern Business College, (8)
5.   Brightwood Plaza   IN   Indianapolis   Fee   100.0 % Built 1965   100.0 % 0   38,493   38,493   Preston Safeway
6.   Celina Plaza   TX   El Paso   Fee and Ground Lease (11)
(2005)		   100.0 % Built 1978   26.7 % 23,927   8,695   32,622   (8)
7.   Charles Towne Square   SC   Charleston   Fee   100.0 % Built 1976   100.0 % 199,693   0   199,693   Regal Cinema, (8)
8.   Chesapeake Center   VA   Chesapeake   Fee   100.0 % Built 1989   70.4 % 213,670   85,934   299,604   K-Mart, Petsmart, Michael's, Movies 10, (8)
9.   Cobblestone Court   NY   Victor   Fee and Ground Lease (7)
(2038)		   35.0 %  (14)  (4) Built 1993   98.8 % 206,680   58,819   265,499   Dick's Sporting Goods, Kmart, Office Max
10.   Countryside Plaza   IL   Countryside   Fee and Ground Lease (7)
(2058)		   100.0 % Built 1977   80.4 % 290,216   145,392   435,608   Best Buy, Old Country Buffet, Burlington Coat, Home Depot, (8)
11.   Crystal Court   IL   Crystal Lake   Fee   35.0 %  (14)  (4) Built 1989   86.1 % 201,993   76,978   278,971   Cub Foods, Wal-Mart
12.   Dekalb Plaza   PA   King of Prussia   Fee   52.4 % Acquired 2003   46.4 % 81,368   20,345   101,713   ACME
13.   Eastland Convenience Center   IN   Evansville   Ground Lease (2075)   50.0 %  (4) Acquired 1998   96.2 % 60,000   115,639   175,639   Marshalls, Kids "R" Us (17), Toys "R" Us, Bed, Bath & Beyond
14.   Eastland Plaza   OK   Tulsa   Fee   100.0 % Built 1986   84.7 % 152,451   33,698   186,149   Marshalls, Target, Toys "R" Us
15.   Empire East (5)   SD   Sioux Falls   Fee   50.0 %  (4) Acquired 1998   97.9 % 253,388   44,875   298,263   Kohl's, Target
16.   Fairfax Court   VA   Fairfax   Fee   26.3 %  (14)  (4) Built 1992   89.2 % 168,743   80,614   249,357   Burlington Coat Factory, Circuit City Superstore, (8)
17.   Forest Plaza   IL   Rockford   Fee   100.0 % Built 1985   98.0 % 325,170   100,588   425,758   Kohl's, Marshalls, Media Play, Michael's, Factory Card Outlet, Office Max, T.J. Maxx, Bed, Bath & Beyond, Petco
18.   Gaitway Plaza   FL   Ocala   Fee   23.3 %  (14)  (4) Built 1989   89.1 % 123,027   93,328   216,355   Books-A-Million, Office Depot, T.J. Maxx, Ross Dress for Less, Bed, Bath & Beyond
19.   Great Lakes Plaza   OH   Mentor (Cleveland)   Fee   100.0 % Built 1976   100.0 % 142,229   21,875   164,104   Circuit City, Best Buy, Michael's, Cost Plus World Market
20.   Great Northeast Plaza   PA   Philadelphia   Fee   50.0 %  (4) Acquired 1989   100.0 % 238,158   57,600   295,758   Sears
21.   Greenwood Plus   IN   Greenwood   Fee   100.0 % Built 1979   100.0 % 134,141   25,790   159,931   Best Buy, Kohl's
22.   Griffith Park Plaza   IN   Griffith   Ground Lease (2060)   100.0 % Built 1979   34.5 % 175,595   98,640   274,235   K-mart, (8)
23.   Grove at Lakeland Square, The   FL   Lakeland   Fee   100.0 % Built 1988   91.9 % 142,317   73,274   215,591   Sports Authority
24.   Henderson Square   PA   King of Prussia   Fee   79.1 % Acquired 2003   97.2 % 72,683   34,661   107,344   ACME, Staples

22

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
25.   Highland Lakes Center   FL   Orlando   Fee   100.0 % Built 1991   77.3 % 372,316   105,764   478,080   Marshalls, Bed, Bath & Beyond, American Signature Home, Save-Rite, Ross Dress for Less, Office Max, Burlington Coat Factory, (8)
26.   Indian River Commons   FL   Vero Beach   Fee   50.0 %  (4) Built 1997   90.8 % 233,358   27,510   260,868   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 % 0   111,518   111,518   —
28.   Keystone Shoppes   IN   Indianapolis   Ground Lease
(2067)		   100.0 % Acquired 1997   88.7 % 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
30.   Lake Plaza   IL   Waukegan   Fee   100.0 % Built 1986   98.7 % 170,789   44,673   215,462   Pic 'N Save, Home Owners Bargain Outlet
31.   Lake View Plaza   IL   Orland Park (Chicago)   Fee   100.0 % Built 1986   91.7 % 270,628   100,852   371,480   Best Buy, Marshalls, Ulta Cosmetics, Factory Card Outlet, Golf Galaxy, Linens-N-Things, Petco Supplies & Fish, Value City Furniture, (8)
32.   Lakeline Plaza   TX   Austin   Fee   100.0 % Built 1998   98.4 % 306,317   79,431   385,748   Old Navy, Best Buy, Cost Plus World Market, Linens-N-Things, Office Max, Petsmart, Ross Dress for Less, T.J. Maxx, Party City, Ulta Cosmetics, Ultimate Electronics
33.   Lima Center   OH   Lima   Fee   100.0 % Built 1978   94.2 % 159,584   47,294   206,878   Kohl's, Hobby Lobby
34.   Lincoln Crossing   IL   O'Fallon   Fee   100.0 % Built 1990   100.0 % 134,935   13,446   148,381   Wal-Mart, PetsMart
35.   Lincoln Plaza   PA   King of Prussia   Fee   65.8 % Acquired 2003   100.0 % 143,649   123,582   267,231   Burlington Coat Factory, Circuit City
36.   Mall of Georgia Crossing   GA   Mill Creek (Atlanta)   Fee   50.0 %  (4) Built 1999   97.8 % 341,503   99,109   440,612   Target, Nordstrom Rack, Best Buy, Staples, T.J. Maxx N More, American Signature Home
37.   Markland Plaza   IN   Kokomo   Fee   100.0 % Built 1974   90.0 % 49,552   41,675   91,227   Best Buy, Bed, Bath & Beyond
38.   Martinsville Plaza   VA   Martinsville   Space Lease
(2046)		   100.0 % Built 1967   97.1 % 60,000   42,105   102,105   Rose's
39.   Matteson Plaza   IL   Matteson   Fee   100.0 % Built 1988   43.5 % 230,885   44,570   275,455   Dominick's, Michael's Arts & Crafts, Value City, (8)
40.   Muncie Plaza   IN   Muncie   Fee   100.0 % Built 1998   100.0 % 271,656   27,195   298,851   Kohl's, Office Max, Shoe Carnival, T.J. Maxx, Target
41.   New Castle Plaza   IN   New Castle   Fee   100.0 % Built 1966   97.3 % 24,912   66,736   91,648   Goody's
42.   North Ridge Plaza   IL   Joliet   Fee   100.0 % Built 1985   74.3 % 190,323   114,747   305,070   Minnesota Fabrics, Hobby Lobby, Office Max, (8)
43.   Northland Plaza   OH   Columbus   Fee and Ground Lease (7)
(2085)		   100.0 % Built 1988   62.7 % 118,304   91,230   209,534   Marshalls, Hobby Lobby, (8)
44.   Northwood Plaza   IN   Fort Wayne   Fee   100.0 % Built 1974   92.0 % 99,028   71,841   170,869   Target, Cinema Grill
45.   Park Plaza   KY   Hopkinsville   Fee and Ground Lease (7)
(2039)		   100.0 % Built 1968   95.2 % 82,398   32,626   115,024   Big Lots, Wal-Mart (18)
46.   Plaza at Buckland Hills, The   CT   Manchester   Fee   35.0 %  (14)  (4) Built 1993   84.6 % 252,179   82,308   334,487   Toys "R" Us, Jo-Ann Etc., Kids "R" Us (17), Comp USA, Linens-N-Things, Party City, Petsmart, (8)

23

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
47.   Regency Plaza   MO   St. Charles   Fee   100.0 % Built 1988   100.0 % 210,627   76,899   287,526   Wal-Mart, Sam's Wholesale, Petsmart
48.   Ridgewood Court   MS   Jackson   Fee   35.0 %  (14)  (4) Built 1993   100.0 % 185,939   54,723   240,662   T.J. Maxx, Bed, Bath & Beyond, Best Buy, Marshalls, Lifeway Christian Stores, Michael's
49.   Rockaway Convenience Center   NJ   Rockaway (New York)   Fee   100.0 % Acquired 1998   100.0 % 131,438   100,184   231,622   Kids "R" Us (17), AMCE Grocery, Best Buy, Borders Books & Music, Linens N Things, Michael's
50.   Royal Eagle Plaza   FL   Coral Springs (Miami-Ft. Lauderale)   Fee   35.0 %  (14)  (4) Built 1989   100.0 % 124,479   74,643   199,122   Kmart, Stein Mart
51.   St. Charles Towne Plaza   MD   Waldorf (Washington, D.C.)   Fee   100.0 % Built 1987   68.7 % 292,752   113,202   405,954   Value City Furniture, T.J. Maxx, Jo Ann Fabrics, CVS, Shoppers Food Warehouse, Dollar Tree, (8)
52.   Shops at Northeast Mall, The   TX   Hurst   Fee   100.0 % Built 1999   98.9 % 265,595   98,989   364,584   Old Navy, Nordstrom Rack, Bed, Bath & Beyond, Office Max, Michael's, Petsmart, T.J. Maxx, Ulta Cosmetics, Best Buy, Pier 1 Imports
53.   Teal Plaza   IN   Lafayette   Fee   100.0 % Built 1962   100.0 % 98,337   2,750   101,087   Circuit City, Hobby-Lobby, The Pep Boys
54.   Terrace at the Florida Mall   FL   Orlando   Fee   100.0 % Built 1989   73.8 % 281,446   47,531   328,977   Marshalls, Target, American Signature Home, Bed, Bath & Beyond
55.   Tippecanoe Plaza   IN   Lafayette   Fee   100.0 % Built 1974   95.5 % 85,811   8,787   94,598   Best Buy, Barnes & Noble
56.   University Center   IN   Mishawaka   Fee   60.0 % Built 1980   87.1 % 104,359   46,177   150,536   Best Buy, Michaels
57.   Village Park Plaza   IN   Carmel (Indianapolis)   Fee   35.0 %  (14)  (4) Built 1990   98.3 % 431,018   112,430   543,448   Wal-Mart, Galyan's, Frank's Nursery, Kohl's, Marsh, Bed, Bath & Beyond, Regal Cinema
58.   Wabash Village   IN   West Lafayette   Ground Lease
(2063)		   100.0 % Built 1970   12.2 % 109,388   15,148   124,536   (8)
59.   Washington Plaza   IN   Indianapolis   Fee   100.0 % Built 1976   57.1 % 21,500   28,607   50,107   (8)
60.   Waterford Lakes Town Center   FL   Orlando   Fee   100.0 % Built 1999   100.0 % 622,244   329,559   951,803   L.A. Fitness, T.J. Maxx, Barnes & Noble, Ross Dress for Less, Petsmart, Bed, Bath & Beyond, Old Navy, Best Buy, Office Max, Ashley Furniture, Jo-Ann Fabrics, Target
61.   West Ridge Plaza   KS   Topeka   Fee   100.0 % Built 1988   100.0 % 182,161   55,622   237,783   Target, T.J. Maxx, Toys "R" Us, Famous Footwear
62.   West Town Corners   FL   Altamonte Springs   Fee   23.3 %  (14)  (4) Built 1989   99.1 % 263,782   121,285   385,067   Wal-Mart, Sports Authority, PetsMart, Winn Dixie, American Signature Furniture
63.   Westland Park Plaza   FL   Orange Park   Fee   23.3 %  (14)  (4) Built 1989   96.3 % 123,548   39,606   163,154   Burlington Coat Factory, PetsMart, Sports Authority, Sound Advice
64.   Whitehall Mall   PA   Whitehall   Fee   39.6 %  (4) Acquired 2003   99.0 % 378,642   175,079   553,721   Kohl's, Sears, Bed, Bath and Beyond
65.   White Oaks Plaza   IL   Springfield   Fee   100.0 % Built 1986   98.3 % 275,703   115,723   391,426   Kohl's, Kids "R" Us (17), Office Max, T.J. Maxx, Toys "R" Us, Cub Foods
66.   Willow Knolls Court   IL   Peoria   Fee   35.0 %  (14)  (4) Built 1990   100.0 % 309,440   72,937   382,377   Kohl's, Sam's Wholesale Club, Willow Knolls Cinema, Burlington Coat Factory
67.   Yards Plaza, The   IL   Chicago   Fee   35.0 %  (14)  (4) Built 1990   100.0 % 228,813   36,607   265,420   Burlington Coat Factory, Value City, Ralphs Food for Less

24

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 North American Properties

 
    
    
    
    
    
    
    
   Gross Leasable Area
    
 
   Property Name
   State
   City (Metropolitan area)
   Ownership Interest (Expiration if Lease) (1)
   Our Percentage Interest (2)
   Year Built or Acquired
   Occupancy (3)
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
    OFFICE CENTERS                            

1.
 
O'Hare International Center
 
IL
 
Rosemont
 
Fee
 
100.0
%
Built 1988
 
85.2
%
0
 
495,546
 
495,546
  (20)
—
2.   Riverway   IL   Rosemont   Fee   100.0 % Acquired 1991   84.5 % 0   819,201   819,201   (20) —

 
 
MIXED-USE CENTERS
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1.
 
Copley Place
 
MA
 
Boston
 
Fee
 
98.1
%
Acquired 2002
 
91.4
%
104,332
 
1,109,880
 
1,214,212
  (20)
Neiman Marcus
2.   Fashion Centre at Pentagon City, The   VA   Arlington   Fee   42.5 %  (4) Built 1989   99.8 % 472,729   514,979   987,708   (20) Macy's, Nordstrom
                               
 
 
   
        Total U.S. Portfolio               117,183,895   72,830,417   190,014,312    
                               
 
 
   

 
 
CANADA REGIONAL MALLS
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1.
 
Forum Entertainment Centre (5)
 
 
 
Montreal
 
Fee
 
35.6
%  (4)
Built 2001
 
88.7
%
246,972
 
—
 
246,972
 
AMC Entertainment
                               
 
 
   
        Total North American Portfolio               117,430,867   72,830,417   190,261,284    
                               
 
 
   

 
 
 
 
 
 
 
 
 
 
 
 
Expected Opening
 
 
 
 
 
 
 
 
 
 
    PROPERTIES UNDER CONSTRUCTION                            

1.
 
Chicago Premium Outlets
 
IL
 
Aurora (Chicago)
 
 
 
50.0
%  (4)
2nd Quarter 2004
 
 
 
 
 
 
 
 
 
—

2.
 
Clay Terrace
 
IN
 
Carmel (Indianapolis)
 
 
 
50.0
%  (4)
4th Quarter 2004
 
 
 
 
 
 
 
 
 
Dicks Sporting Goods, DSW Shoe Warehouse, Circuit City, Wild Oats
3.   St. Johns Town Center   FL   Jacksonville       50.0 %  (13) 1st Quarter 2005                   Target, JoAnn Fabribcs, PetsMart
4.   Firewheel Town Center   TX   Garland       100.0 % 4th Quarter 2005                   Foley's, Dillard's, Barnes & Noble, Circuit City, Sports Authoridy, Linens N Things
5.   WolfRanch   TX   Georgetown (Austin)       100.0 % 3rd Quarter 2005                   Target, Kohl's, Linens N Things, Office Depot, Petsmart

(Footnotes on following page)

25

(Footnotes for preceding pages)

(1)
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.

(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)
Regional Malls—Executed leases for all company-owned GLA in mall and freestanding stores, excluding majors. Also includes company owned retail space at specialty centers and mixed-use properties. Community Centers—Executed leases for all company-owned GLA including majors, mall stores and freestanding stores.

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

(5)
This Property is managed by a third party.

(6)
Indicates anchor is currently under construction or in predevelopment.

(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)
This interest is currently subject to a constructive trust imposed by an order issued by the Federal District Court for the State of Minnesota. We have appealed that order. See footnote 11 of the accompanying financial statements for further discussion regarding Mall of America

(13)
The Operating Partnership receives substantially all the economic benefit of the property due to a partner preference or advances.

(14)
Outside partner receives substantially all of the economic benefit due to a partner preference.

(15)
The ownership of the property is evidenced by the Operating Partnership's note secured by an equity interest in the property.

(16)
The Operating Partnership owns a mortgage note that encumbers Pheasant Lane Mall that entitles it to 100% of the economics of this property.

(17)
Indicates anchor has announced its intent to close this location.

(18)
Indicates anchor has closed, but the Operating Partnership still collects rents and/or fees under an agreement.

(19)
This retailer operates multiple stores at this Property.

(20)
Mall & Freestanding GLA consists of a combination of Office and Retail space.

Mall
   Retail GLA
   Office GLA
   Total Mall &
Freestanding GLA
Arsenal Mall   204,669   105,807   310,476
Fashion Mall at Keystone at the Crossing, The   378,636   30,042   408,678
Greendale Mall   178,802   119,860   298,662
King of Prussia Mall   1,061,060   13,696   1,074,756
Lehigh Valley Mall   491,154   11,754   502,908
Menlo Park Mall   705,679   50,432   756,111
Oak Court Mall   188,434   129,941   318,375
O'Hare International Center   12,838   482,708   495,546
Oxford Valley Mall   399,116   110,558   509,674
River Oaks Center   426,168   118,055   544,223
Riverway   24,809   794,392   819,201
Copley Place   263,058   846,822   1,109,880
Fashion Centre at Pentagon City, The   345,890   169,089   514,979

26

            

    International

            The following summarizes our investments in Europe and the countries of real estate ownership and operation as of December 31, 2003:

Investment
   Ownership
Interest
   Properties
open and
operating
   Countries
Gallerie Commerciali Italia, S.p.A.   49.0 % 38   Italy
European Retail Enterprises ("ERE"), B.V.   35.2 % 9   France, Poland, Portugal

            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. ERE also operates through a wholly-owned subsidiary Groupe BEG, S.A. ("BEG"). ERE and BEG are fully integrated European retail real estate developers, lessors 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 affiliated with our partner in GCI, The Rinascente Group, or are anchored by the hypermarket Carrefour in France, Poland, and Portugal. Certain of these properties are subject to leaseholds that entitle the lessor to receive substantially all the economic benefits of the portion of the property subject to the leasehold.

            As of December 31, 2003, our European properties were approximately 99.3% occupied. These properties contain an aggregate of approximately 8.9 million square feet of GLA, of which approximately 3.8 million square feet is Owned GLA.

27

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 European Properties

 
    
    
    
    
    
   Gross Leasable Area (1)
    
 
   Property Name
   City (Metropolitan area)
   Ownership Interest
   Our Percentage Interest
   Year Built
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
    FRANCE                        
1.   Bay 2   Torcy (Paris)   Freehold   35.2 % 2003   132,396   408,910   541,306   Carrefour, Leroy Merlin
2.   Bel'Est   Bagnolet (Paris)   Freehold   12.3 % 1992   150,695   62,980   213,675   Auchan
3.   Villabé A6   Villabé (Paris)   Freehold   5.3 % 1992   102,257   104,507   206,764   Carrefour
                       
 
 
   
        Subtotal France           385,348   576,397   961,745    

 
 
ITALY
 
 
 
 
 
 
 
 
 
 
 
 
1.   Ancona — Senigallia   Senigallia (Ancona)   Freehold   49.0 % 1995   41,193   41,581   82,774   Cityper
2.   Ascoli Piceno — Grottammare   Grottammare (Ascoli Piceno)   Freehold   49.0 % 1995   38,901   55,929   94,830   Cityper
3.   Ascoli Piceno — Porto Sant'Elpidio   Porto Sant'Elpidio (Ascoli Piceno)   Freehold   49.0 % 1999   47,986   114,259   162,245   Cityper
4.   Bari — Casamassima   Casamassima (Bari)   Freehold   49.0 % 1995   159,015   388,825   547,840   Auchan, Coin, Upim, Leroy Merlin, Decathlon
5.   Brescia — Mazzano   Mazzano (Brescia)   Freehold/Leasehold (2)   49.0 % 1994   103,290   127,359   230,649   Auchan, Bricocenter, Upim
6.   Cagliari — Santa Gilla   Cagliari   Freehold/Leasehold (2)   49.0 % 1992   75,939   114,754   190,693   Auchan, Bricocenter
7.   Catania — La Rena   Catania   Freehold   49.0 % 1998   124,065   22,077   146,142   Auchan
8.   Milano — Rescaldina   Rescaldina (Milano)   Freehold   49.0 % 2000   165,108   212,017   377,125   Auchan, Bricocenter, Decathlon, Upim
9.   Milano — Vimodrone   Vimodrone (Milano)   Freehold   49.0 % 1989   110,384   80,202   190,586   Auchan, Bricocenter
10.   Napoli — Pompei   Pompei (Napoli)   Freehold   49.0 % 1990   74,314   17,147   91,461   Auchan
11.   Padova   Padova   Freehold   49.0 % 1989   73,324   32,485   105,809   Auchan
12.   Palermo   Palermo   Freehold   49.0 % 1990   73,065   9,849   82,914   Auchan
13.   Pesaro — Fano   Fano (Pesaro)   Freehold   49.0 % 1994   56,274   55,951   112,225   Auchan
14.   Pescara   Pescara   Freehold   49.0 % 1998   96,337   65,186   161,523   Auchan, Upim
15.   Pescara — Cepagatti   Cepagatti (Pescara)   Freehold   49.0 % 2001   80,213   189,617   269,830   Auchan
16.   Piacenza — San Rocco al Porto   San Rocco al Porto (Piacenza)   Freehold   49.0 % 1992   104,485   20,419   124,904   Auchan, Flunch
17.   Roma — Collatina   Collatina (Roma)   Freehold   49.0 % 1999   59,524   4,101   63,625   Auchan
18.   Sassari — Predda Niedda   Predda Niedda (Sassari)   Freehold/Leasehold (2)   49.0 % 1990   56,263   107,779   164,042   Auchan, Bricocenter, Upim
19.   Taranto   Taranto   Freehold   49.0 % 1997   75,240   126,508   201,748   Auchan, Bricocenter, Upim
20.   Torino   Torino   Freehold   49.0 % 1989   105,056   66,682   171,738   Auchan, Upim
21.   Torino — Venaria   Venaria (Torino)   Freehold   49.0 % 1982   101,557   64,045   165,602   Auchan, Bricocenter
22.   Venezia — Mestre   Mestre (Venezia)   Freehold   49.0 % 1995   114,076   132,644   246,720   Auchan
23.   Vicenza   Vicenza   Freehold   49.0 % 1995   78,415   20,064   98,479   Auchan
24.   Brindisi — Mesagne   Mesagne (Brindisi)   Freehold   49.0 % 2003   88,049   140,598   228,647   Auchan
25.   Ancona   Ancona   Leasehold (3)   49.0 % 1993   82,947   82,333   165,280   Auchan, Upim
26.   Bergamo   Bergamo   Leasehold (3)   49.0 % 1976   103,011   16,921   119,932   Auchan
27.   Brescia — Concesio   Concesio (Brescia)   Leasehold (3)   49.0 % 1972   89,932   27,566   117,498   Auchan
28.   Cagliari — Marconi   Cagliari   Leasehold (3)   49.0 % 1994   83,549   109,943   193,492   Auchan, Bricocenter
29.   Catania — Misterbianco   Misterbianco (Catania)   Leasehold (3)   49.0 % 1989   83,259   15,984   99,243   Auchan
30.   Merate — Lecco   Merate (Lecco)   Leasehold (3)   49.0 % 1976   73,496   88,501   161,997   Auchan, Bricocenter
31.   Milano — Cinisello — Balsamo   Cinisello — Balsamo (Milano)   Leasehold (3)   49.0 % 1993   68,426   18,589   87,015   Auchan
32.   Milano — Nerviano   Nerviano (Milano)   Leasehold (3)   49.0 % 1991   83,840   27,782   111,622   Auchan
33.   Napoli — Mugnano di Napoli   Mugnano di Napoli   Leasehold (3)   49.0 % 1992   97,952   94,852   192,804   Auchan, Bricocenter, Upim
34.   Olbia   Olbia   Leasehold (3)   49.0 % 1993   48,976   48,814   97,790   Auchan
35.   Roma — Casalbertone   Roma   Leasehold (3)   49.0 % 1998   62,667   84,927   147,594   Auchan, Upim
36.   Sassari — Centro Azuni   Sassari   Leasehold (3)   49.0 % 1995   —   35,564   35,564    
37.   Torino — Rivoli   Rivoli (Torino)   Leasehold (3)   49.0 % 1986   61,785   32,346   94,131   Auchan
38.   Verona — Bussolengo   Bussolengo (Verona)   Leasehold (3)   49.0 % 1975   89,319   75,326   164,645   Auchan, Bricocenter
                       
 
 
   
        Subtotal Italy           3,131,232   2,969,526   6,100,758    

28

SIMON PROPERTY GROUP, INC.
PROPERTY TABLE
 European Properties

 
    
    
    
    
    
   Gross Leasable Area (1)
    
 
   Property Name
   City (Metropolitan area)
   Ownership Interest
   Our Percentage Interest
   Year Built
   Anchor
   Mall & Freestanding
   Total
   Retail Anchors and Major Tenants
    POLAND                        
1.   Borek Shopping Center   Wroclaw   Freehold   35.2 % 1999   119,942   129,393   249,335   Carrefour
2.   Dabrowka Shopping Center   Katowice   Freehold   35.2 % 1999   120,986   172,868   293,854   Carrefour, Castorama
3.   Turzyn Shopping Center   Szczecin   Freehold   35.2 % 2001   87,188   120,943   208,131   Carrefour
4.   Wilenska Station Shopping Center   Warsaw   Freehold   35.2 % 2002   92,688   215,935   308,623   Carrefour
5.   Zakopianka Shopping Center   Krakow   Freehold   35.2 % 1998   120,190   432,688   552,878   Carrefour, Castorama
                       
 
 
   
        Subtotal Poland           540,994   1,071,827   1,612,821    

 
 
PORTUGAL
 
 
 
 
 
 
 
 
 
 
 
 
1.   Minho center   Braga (Porto)   Leasehold (3)   35.2 % 1997   120,018   101,622   221,640   Carrefour
                       
 
 
   
        TOTAL EUROPEAN ASSETS           4,177,592   4,719,372   8,896,964    
                       
 
 
   

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)
This property is encumbered by a leasehold on the entire premises which entitles the lessor the majority of the economics of the property.

29

    Land Held for Development

            We have direct or indirect ownership interests in three parcels of land held for future development, containing an aggregate of approximately 275 acres located in three states.

    Mortgage Financing on Properties

            The following table sets forth certain information regarding the mortgages and other debt encumbering the Properties. Substantially all of the mortgage and property related debt is nonrecourse to us.

30


MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES
As of December 31, 2003
(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 % $ 29,763   $ 2,216   10/10/12  
Arsenal Mall — 1   6.75 %   32,977     2,724   09/28/08  
Arsenal Mall — 2   8.20 %   1,796     286   05/05/16  
Battlefield Mall   4.60 %   100,000     4,603   (2) 07/01/13  
Biltmore Square   7.95 %   26,000     2,067   (2) 12/11/10   (30)
Bloomingdale Court   7.78 %   28,695   (4)   2,578   11/01/09  
Bowie Mall   2.62 %  (1)   52,700     1,381   (2) 12/14/05   (3)
Brunswick Square   2.62 %  (1)   45,000     1,179   (2) 06/12/05   (3)
Century III Mall   6.20 %   87,859   (10)   6,541   10/10/12  
Chesapeake Center   8.44 %   6,563   (32)   554   (2) 06/15/05   (30)
Chesapeake Square   3.87 %  (13)   47,000     1,819   (2) 07/01/06   (3)
Cielo Vista Mall — 1   9.38 %   51,033   (5)   5,828   05/01/07  
Cielo Vista Mall — 2   8.13 %   675     376   11/01/05  
Cielo Vista Mall — 3   6.76 %   36,614   (5)   3,039   05/01/07  
CMBS Loan — Fixed (encumbers 7 Properties)   7.31 %   172,290   (6)   14,065   12/15/04   (30)
CMBS Loan — Variable (encumbers 7 Properties)   6.20 %  (7)   48,157   (6)   1,722   12/15/04   (30)
College Mall — 1   7.00 %   37,013   (8)   3,908   01/01/09  
College Mall — 2   6.76 %   11,281   (8)   935   01/01/09  
Copley Place   7.44 %   180,836     16,266   08/01/07  
Coral Square   8.00 %   88,946     8,065   10/01/10  
Crossroads Mall   6.20 %   44,127     3,285   10/10/12  
Crystal River   7.63 %   15,867     1,385   11/11/10   (30)
DeKalb Mall   9.35 %   2,711     699   10/01/04  
Forest Mall   6.20 %   17,671   (11)   1,316   10/10/12  
Forest Plaza   7.78 %   15,738   (4)   1,414   11/01/09  
Forum Shops at Caesars, The   4.78 %   550,000     26,312   (2) 12/01/10  
Greenwood Park Mall — 1   7.00 %   31,000   (8)   3,273   01/01/09  
Greenwood Park Mall — 2   6.76 %   58,284   (8)   4,831   01/01/09  
Grove at Lakeland Square, The   8.44 %   3,750   (32)   317   (2) 06/15/05   (30)
Gulf View Square   8.25 %   34,260     3,652   10/01/06  
Henderson Square   6.94 %   15,625     1,270   07/01/11  
Highland Lakes Center   6.20 %   16,288   (10)   1,213   10/10/12  
Ingram Park Mall   6.99 %   82,423   (24)   6,724   08/11/11  
Jefferson Valley Mall   2.37 %  (1)   60,000     1,422   (2) 01/11/04  
Keystone at the Crossing   7.85 %   60,518     5,642   07/01/27  
Knoxville Center   6.99 %   62,415   (24)   5,092   08/11/11  
Lake View Plaza   7.78 %   20,921   (4)   1,880   11/01/09  
Lakeline Mall   7.65 %   68,549     6,300   05/01/07  
Lakeline Plaza   7.78 %   22,937   (4)   2,061   11/01/09  
Lincoln Crossing   7.78 %   3,167   (4)   285   11/01/09  
Longview Mall   6.20 %   33,070   (10)   2,462   10/10/12  
Markland Mall   6.20 %   23,397   (11)   1,742   10/10/12  
Matteson Plaza   7.78 %   9,213   (4)   828   11/01/09  
McCain Mall — 1   9.38 %   23,829   (5)   2,721   05/01/07  
McCain Mall — 2   6.76 %   16,900   (5)   1,402   05/01/07  
Melbourne Square   7.42 %   36,595     3,374   02/01/05  
Midland Park Mall   6.20 %   34,157   (11)   2,543   10/10/12  
Muncie Plaza   7.78 %   7,965   (4)   716   11/01/09  
North East Mall   2.50 %  (1)   140,000     3,493   (2) 05/21/04  
Northlake Mall   6.99 %   72,003   (24)   5,874   08/11/11  
Oxford Valley Mall   6.76 %   86,418     7,801   01/10/11  
Paddock Mall   8.25 %   27,248     2,905   10/01/06  
Palm Beach Mall   6.20 %   54,641     4,068   10/10/12  
Penn Square Mall   7.03 %   71,319     6,003   03/01/09   (30)
Port Charlotte Town Center   7.98 %   53,250     4,249   (2) 12/11/10   (30)
Raleigh Springs Mall   3.80 %  (31)   11,000     418   (2) 12/09/05  
Regency Plaza   7.78 %   4,318   (4)   388   11/01/09  
                       

31

Richmond Towne Square   6.20 %   47,977   (11)   3,572   10/10/12  
Riverway   2.27 %  (18)   110,000     2,497   (2) 10/01/06   (3)
St. Charles Towne Plaza   7.78 %   27,639   (4)   2,483   11/01/09  
St. Johns Town Center   2.37 %  (1)   37,500     889   (2) 03/02/04  
Stanford Shopping Center   3.60 %  (34)   220,000     7,920   (2) 09/11/08  
Sunland Park Mall   8.63 %  (14)   37,229     3,773   01/01/26  
Tacoma Mall   7.00 %   131,903     10,778   10/01/11  
Terrace at Florida Mall, The   8.44 %   4,688   (32)   396   (2) 06/15/05   (30)
Tippecanoe Mall — 1   8.45 %   41,676     4,647   01/01/05  
Tippecanoe Mall — 2   6.81 %   15,049     1,253   01/01/05  
Towne East Square — 1   7.00 %   48,935   (8)   5,167   01/01/09  
Towne East Square — 2   6.81 %   23,513   (8)   1,958   01/01/09  
Towne West Square   6.99 %   53,952   (24)   4,402   08/11/11  
Treasure Coast Square — 1   7.42 %   50,254     3,729   (2) 01/01/06  
Treasure Coast Square — 2   8.06 %   11,736     946   (2) 01/01/06  
Trolley Square   9.03 %   29,133     2,880   08/01/10   (30)
University Park Mall   7.43 %   58,799     4,958   10/01/07  
Valle Vista Mall — 1   9.38 %   31,561   (5)   3,604   05/01/07  
Valle Vista Mall — 2   6.81 %   7,515   (5)   626   05/01/07  
Waterford Lakes   2.42 %  (1)   68,000     1,646   (2) 08/16/04  
West Ridge Plaza   7.78 %   5,567   (4)   500   11/01/09  
White Oaks Mall   2.22 %  (1)   48,563     1,078   (2) 02/25/08   (3)
White Oaks Plaza   7.78 %   16,987   (4)   1,526   11/01/09  
Wolfchase Galleria   7.80 %   74,437     6,911   06/30/07  
       
           
  Total Consolidated Secured Indebtedness       $ 4,179,385            

Unsecured Indebtedness:
 
 
 
 
 
 
 
 
 
 
 
Simon Property Group, LP:                      
Unsecured Revolving Credit Facility   1.77 %  (16) $ 327,901   $ 5,804   (2) 04/16/06   (3)
Medium Term Notes — 1   7.13 %   100,000     7,125   (15) 06/24/05  
Medium Term Notes — 2   7.13 %   180,000     12,825   (15) 09/20/07  
SPG, L.P. Unsecured Term Loan — 1   1.92 %  (1)   65,000     1,248   (2) 03/15/04  
SPG, L.P. Unsecured Term Loan — 2   1.77 %  (1)   150,000     2,655   (2) 02/28/04  
SPG, L.P. Unsecured Euro Term Loan   2.70 %  (9)   204,679     5,527   (2) 12/16/06   (3)
Unsecured Notes — 1   6.88 %   250,000     17,188   (15) 11/15/06  
Unsecured Notes — 2A   6.75 %   100,000     6,750   (15) 07/15/04  
Unsecured Notes — 2B   7.00 %   150,000     10,500   (15) 07/15/09  
Unsecured Notes — 3   6.88 %   150,000     10,313   (15) 10/27/05  
Unsecured Notes — 4B   6.75 %   300,000     20,250   (15) 06/15/05  
Unsecured Notes — 4C   7.38 %   200,000     14,750   (15) 06/15/18  
Unsecured Notes — 5A   6.75 %   300,000     20,250   (15) 02/09/04  
Unsecured Notes — 5B   7.13 %   300,000     21,375   (15) 02/09/09  
Unsecured Notes — 6A   7.38 %   300,000     22,125   (15) 01/20/06  
Unsecured Notes — 6B   7.75 %   200,000     15,500   (15) 01/20/11  
Unsecured Notes — 7   6.38 %   750,000     47,813   (15) 11/15/07  
Unsecured Notes — 8A   6.35 %   350,000     22,225   (15) 08/28/12  
Unsecured Notes — 8B   5.38 %   150,000     8,063   (15) 08/28/08  
Unsecured Notes — 9A   4.88 %   300,000     14,625   (15) 03/18/10  
Unsecured Notes — 9B   5.45 %   200,000     10,900   (15) 03/15/13  
Mandatory Par Put Remarketed Securities   7.00 %   200,000     14,000   (15) 06/15/08   (17)
Floating Rate Mandatory Extension Notes   1.92 %  (12)   113,100     2,172   (2) 11/15/14  
       
           
          5,340,680            

Shopping Center Associates, subsidiary:
 
 
 
 
 
 
 
 
 
 
 
Unsecured Notes — SCA 1   6.75 %   150,000     10,125   (15) 01/15/04  
Unsecured Notes — SCA 2   7.63 %   110,000     8,388   (15) 05/15/05  
       
           
          260,000            
                       

32


The Retail Property Trust, subsidiary:
 
 
 
 
 
 
 
 
 
 
 
Unsecured Notes — CPI 3   7.75 %   150,000     11,625   (15) 08/15/04  
Unsecured Notes — CPI 4   7.18 %   75,000     5,385   (15) 09/01/13  
Unsecured Notes — CPI 5   7.88 %   250,000     19,688   (15) 03/15/16  
       
           
          475,000            
       
           
  Total Consolidated Unsecured Indebtedness       $ 6,075,680            
       
           
  Total Consolidated Indebtedness at Face Amounts       $ 10,255,065            
  Fair Value Interest Rate Swaps         1,195   (28)          
  Net Premium on Indebtedness         36,591            
  Net Discount on Indebtedness         (26,463 )          
       
           
  Total Consolidated Indebtedness       $ 10,266,388   (23)          
       
           

Joint Venture Indebtedness:
 
 
 
 
 
 
 
 
 
 
 

Secured Indebtedness:
 
 
 
 
 
 
 
 
 
 
 
Simon Property Group, LP:                      
Apple Blossom Mall   7.99 % $ 39,567   $ 3,607   09/10/09  
Atrium at Chestnut Hill   6.89 %   47,812     3,880   03/11/11   (30)
Auburn Mall   7.99 %   46,322     4,222   09/10/09  
Aventura Mall — A   6.55 %   141,000     9,231   (2) 04/06/08  
Aventura Mall — B   6.60 %   25,400     1,675   (2) 04/06/08  
Aventura Mall — C   6.89 %   33,600     2,314   (2) 04/06/08  
Avenues, The   5.29 %   79,260     5,325   04/01/13  
Bangor Mall   7.06 %   24,051     2,302   12/01/07  
Cape Cod Mall   6.80 %   97,222     7,821   03/11/11  
Circle Centre Mall   5.02 %   79,268     5,165   04/11/13  
Clay Terrace Partners   2.87 %  (1)   22,847     656   (2) 02/15/04  
CMBS Loan — Fixed (encumbers 13 Properties)   7.52 %   357,100   (19)   26,871   (2) 05/15/06  
CMBS Loan — 1 Floating (encumbers 13 Properties)   1.53 %  (1)   186,500   (19)   2,853   (2) 05/15/06  
CMBS Loan — 2 Floating (encumbers 13 Properties)   1.49 %  (1)   81,400   (19)   1,212   (2) 05/15/06  
Cobblestone Court   7.64 %   6,178   (20)   472   (2) 01/01/06  
Crystal Court   7.64 %   4,044   (20)   309   (2) 01/01/06  
Crystal Mall   5.62 %   104,344     7,319   09/11/12   (30)
Dadeland Mall   6.75 %   196,290     15,566   02/11/12   (30)
Emerald Square Mall   5.13 %   143,548     9,479   03/01/13  
European Retail Enterprises — Fixed Components   6.49 %   72,363     10,821   01/17/13  
European Retail Enterprises — Variable Components   4.27 %  (29)   188,834     11,428   09/05/13  
Fairfax Court   7.64 %   10,318   (20)   788   (2) 01/01/06  
Fashion Centre Pentagon Retail   6.63 %   163,085     12,838   09/11/11   (30)
Fashion Centre Pentagon Office   2.62 %  (1)   33,000     865   (2) 09/10/04  
Fashion Valley Mall — 1   6.49 %   166,263     13,255   10/11/08   (30)
Fashion Valley Mall — 2   6.58 %   29,124     1,915   (2) 10/11/08   (30)
Florida Mall, The   7.55 %   262,948     22,766   12/10/10  
Galleria Commerciali Italia   3.30 %  (33)   618,294     20,405   (2) 06/22/05   (3)
Gaitway Plaza   7.64 %   7,348   (20)   561   (2) 01/01/06  
Great Northeast Plaza   9.04 %   16,751     1,744   06/01/06  
Greendale Mall   8.23 %   40,713     3,779   12/10/06  
Gwinnett Place — 1   7.54 %   37,454     3,412   04/01/07  
Gwinnett Place — 2   7.25 %   82,568     7,070   04/01/07  
Highland Mall   6.83 %   69,297     5,571   07/11/11  
Houston Galleria — 1   7.93 %   217,595     19,684   12/01/05   (30)
Houston Galleria — 2   2.62 %  (1)   83,558     2,189   (2) 06/25/07   (3)
Indian River Commons   7.58 %   8,136     710   11/01/04  
Indian River Mall   7.58 %   45,145     3,941   11/01/04  
King of Prussia — 1   7.49 %   192,940     23,183   01/01/17  
King of Prussia — 2   8.53 %   13,259     1,685   01/01/17  
Liberty Tree Mall   5.22 %   35,000     1,827   (2) 10/11/13  
Mall at Rockingham   7.88 %   96,938     8,705   09/01/07  
Mall at Chestnut Hill   8.45 %   14,696     1,396   02/02/10  
                       

33

Mall of America   1.65 %  (21)   278,429     4,608   (2) 03/10/05   (3)
MOA Entertainment   1.65 %  (21)   33,571     556   (2) 03/10/05   (3)
Mall of Georgia   7.09 %   200,000     14,180   (2) 07/01/10  
Mall of Georgia Crossing   3.12 %  (1)   33,214     2,824   06/09/06  
Mall of New Hampshire — 1   6.96 %   100,395     8,345   10/01/08   (30)
Mall of New Hampshire — 2   8.53 %   8,239     786   10/01/08  
Metrocenter   8.45 %   28,777     3,031   02/28/08  
Miami International Mall   5.35 %   97,500     5,216   (2) 10/01/13  
Montgomery Mall   7.48 %   27,000     2,020   (2) 08/10/06  
Montreal Forum — Canada   5.76 %  (22)   43,159     2,486   (2) 08/08/06   (3)
Northfield Square   3.62 %  (25)   34,670     1,255   (2) 04/01/04  
Northshore Mall   9.05 %   161,000     14,571   (2) 05/14/04  
Quaker Bridge Mall   7.03 %   24,077     2,407   04/01/16  
Plaza at Buckland Hills, The   7.64 %   17,678   (20)   1,351   (2) 01/01/06  
Ridgewood Court   7.64 %   7,978   (20)   610   (2) 01/01/06  
Royal Eagle Plaza   7.64 %   7,920   (20)   605   (2) 01/01/06  
Seminole Towne Center   3.62 %  (26)   69,355     3,445   07/01/05   (3)
Shops at Sunset Place, The   4.12 %  (1)   95,315     3,927   (2) 10/15/04  
Smith Haven Mall   7.86 %   115,000     9,039   (2) 06/01/06  
Solomon Pond   3.97 %   114,000     6,505   08/01/13  
Source, The   6.65 %   124,000     8,246   (2) 03/11/09  
Square One   6.73 %   93,363     7,380   03/11/12  
Town Center at Cobb — 1   7.54 %   47,718     4,347   04/01/07  
Town Center at Cobb — 2   7.25 %   62,837     5,381   04/01/07  
Village Park Plaza   7.64 %   8,482   (20)   648   (2) 01/01/06  
West Town Corners   7.64 %   10,328   (20)   789   (2) 01/01/06  
West Town Mall   6.90 %   76,000     5,244   (2) 05/01/08   (30)
Westchester, The — 1   8.74 %   144,712     14,478   09/01/05  
Westchester, The — 2   7.20 %   51,178     4,399   09/01/05  
Westin Hotel — NYC   3.87 %  (1)   182,500     7,063   (2) 06/05/06  
Westland Park Plaza   7.64 %   4,950   (20)   378   (2) 01/01/06  
Whitehall Mall   6.77 %   14,149     1,282   11/01/08  
Willow Knolls Court   7.64 %   6,488   (20)   496   (2) 01/01/06  
Woodland Hills Mall   7.00 %   85,244     7,185   01/01/09   (30)
Yards Plaza, The   7.64 %   8,270   (20)   632   (2) 01/01/06  
       
           
  Total Joint Venture Secured Indebtedness at Face Amounts       $ 6,638,876            
  Net Premium on Indebtedness       $ 4,176            
       
           
  Total Joint Venture Indebtedness       $ 6,643,052   (27)          
       
           

(Footnotes on following page)

34

(Footnotes for preceding pages)

(1)
Variable rate loans based on LIBOR plus interest rate spreads ranging from 37 bps to 300 bps. LIBOR as of December 31, 2003 was 1.12%.

(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)
Secured by cross-collateralized and cross-defaulted mortgages encumbering seven of the Properties (Bay Park Square, Boardman Plaza, Cheltenham Square, De Soto Square, Upper Valley Mall, Washington Square, and West Ridge Mall).

(7)
LIBOR + 0.405%, through an interest rate protection agreement is effectively fixed at an all-in-one rate of 6.200%.

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

(9)
Euribor + 0.600%. Euros 200 million term loan. As of December 31, 2003, Euros 37 million available after outstanding borrowings.

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

(11)
Loans secured by these four Properties are cross-collateralized.

(12)
LIBOR + .8000% through November 15, 2004 at which time callable at our option or remarketed and resold via a competitive bid proces.

(13)
LIBOR + 2.750%, with LIBOR capped at 6.500%.

(14)
Lender also participates in a percentage of certain gross receipts above a specified base.

(15)
Requires semi-annual payments of interest only.

(16)
$1,250,000 Credit Facility. Currently, bears interest at LIBOR + 0.650% and provides for different pricing based upon the Operating Partnership's investment grade rating. Two interest rate caps currently limit LIBOR on $90,000 and $49,023 of this indebtedness to 11.530% and 12.664% respectively. As of December 31, 2003, $898,018 was available after outstanding borrowings and letters of credit. As of December 31, 2003, Euros 48.5 million was drawn on the EURO sub-tranche.

(17)
The MOPPRS have an actual maturity of June 15, 2028, but are subject to mandatory tender on June 15, 2008.

(18)
LIBOR + 1.150% with LIBOR capped at 8.100%.

(19)
These Commercial Mortgage Notes are secured by cross-collateralized mortgages encumbering thirteen Properties (Eastland Mall, Empire East, Empire Mall, Granite Run Mall, Mesa Mall, Lake Square, Lindale Mall, Northpark Mall, Southern Hills Mall, Southpark Mall, Southridge Mall, Rushmore Mall, and Valley Mall). A weighted average rate is used for each component. The floating components have interest protection agreements which caps LIBOR at 10.630% and 11.830% respectively.

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

(21)
LIBOR + 0.5348%, with LIBOR capped at 8.716%.

(22)
Canadian Prime + 3.000%.

(23)
Our share of consolidated indebtedness was $10,141,126.

(24)
Loans secured by these four Properties are cross-collateralized and cross-defaulted.

(25)
LIBOR + 2.500%, with LIBOR capped at 8.500%.

(26)
LIBOR + 2.500%, with LIBOR capped at 8.000%.

(27)
Our share of joint venture indebtedness was $2,739,630.

(28)
Represents the fair market value of interest rate swaps entered into by the Operating Partnership.

(29)
EURIBOR + 2.169%

(30)
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 each loan agreement.

(31)
LIBOR + 2.000%, with LIBOR floor at 1.800%.

(32)
Loans secured by these three Properties are cross-collateralized and cross-defaulted.

(33)
Debt is denominated in Euros and bears interest at Euribor + 1.200%. Debt consists of a Euros 400 million tranche which is fully drawn and a Euros 100 million tranche facility of which Euros 32.4 million is drawn.

(34)
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, 2003, 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 1.16%.

35


Item 3.    Legal Proceedings

            Triple Five of Minnesota, Inc., a Minnesota corporation, v. Melvin Simon, et. al. On or about November 9, 1999, Triple Five of Minnesota, Inc. commenced an action in the District Court for the State of Minnesota, Fourth Judicial District, against, among others, Mall of America, certain members of the Simon family and entities allegedly controlled by such individuals, and us. The action was later removed to federal court. Two transactions form the basis of the complaint: (i) the sale by Teachers Insurance and Annuity Association of America of one-half of its partnership interest in Mall of America Company and Minntertainment Company to the Operating Partnership and related entities; and (ii) a financing transaction involving a loan in the amount of $312.0 million obtained from The Chase Manhattan Bank that is secured by a mortgage placed on Mall of America's assets. The complaint, which contains twelve counts, seeks remedies of unspecified damages, rescission, constructive trust, accounting, and specific performance. Although the complaint names all defendants in several counts, we are specifically identified as a defendant in connection with the sale by Teachers. On August 12, 2002, the court granted in part and denied in part motions for partial summary judgment filed by the parties.

            Trial on all of the equitable claims in this matter began June 2, 2003. On September 10, 2003, the court issued its decision in a Memorandum and Order (the "Order"). In the Order, the court found that certain entities and individuals, breached their fiduciary duties to Triple Five. The court did not award Triple Five damages but instead awarded Triple Five equitable and other relief and imposed a constructive trust on that portion of the Mall of America owned by us. Specifically, as it relates to us, the court ordered that Triple Five was entitled to purchase from us the one-half partnership interest that we purchased from Teachers in October 1999, provided Triple Five remits to us the sum of $81.38 million within nine months of the Order. The court further held that we must disgorge all net profits that we received as a result of our ownership interest in the Mall from October 1999 to the present. The court has appointed a Special Master to determine net profits. The court also held that the current day-to-day management of the Mall remains unchanged unless and until Triple Five purchases our interest in the Mall.

            We disagree with many aspects of the Order and have appealed the Order to the United States Court of Appeals for the Eighth Circuit. We are currently working with the Special Master appointed by the court. It is not possible to provide an assurance of the ultimate outcome of the litigation.

            As a result of the Order, we recorded a $6.0 million loss that is included in "Gain (loss) on sales of assets and other, net" in the accompanying statements of operations and comprehensive income, reflecting our estimate of the financial impact to us from complying with the Order and we have ceased recording any contribution to either net income or Funds from Operations ("FFO") from Mall of America.

            We are currently not subject to any other material litigation other than routine litigation, claims and administrative proceedings arising in the ordinary course of 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.


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

            None.

36


Part II

Item 5.    Market for the Registrant's Common Equity and Related Stockholder Matters

    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
2003                  
1st Quarter   37.18   31.70   35.83   $ 0.60
2nd Quarter   40.04   35.85   39.03   $ 0.60
3rd Quarter   43.96   38.59   43.58   $ 0.60
4th Quarter   48.59   43.58   46.34   $ 0.60

2002
 
 
 
 
 
 
 
 
 
1st Quarter   33.07   28.80   32.63   $ 0.525
2nd Quarter   36.95   32.52   36.84   $ 0.550
3rd Quarter   36.84   29.40   35.73   $ 0.550
4th Quarter   35.81   31.00   34.07   $ 0.550

            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 2,239 as of February 12, 2004. 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. To maintain our status as a REIT, we are required each year to distribute to our shareholders at least 90% of our taxable income after certain adjustments. Future distributions are determined in the discretion of the Board of Directors and will depend on our actual cash flow, financial condition, capital requirements, the annual REIT distribution requirements and such other factors as our Board of Directors deem relevant.

            Simon Property offers an Automatic Dividend Reinvestment Plan for its common shares that allows shareholders, 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

            We issued 3,328,540 shares of Series H Variable Rate Preferred Stock on December 15, 2003 to a single institutional investor for cash proceeds in the amount of $83.2 million. We used a portion of the proceeds to fund the redemption of our 6.5% Series B Convertible Preferred Stock which were called for redemption on December 15, 2003. The Series H 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.


Item 6.    Selected Financial Data

            The information required by this item is incorporated herein by reference to the Selected Financial Data section of the 2003 Annual Report to Shareholders filed as Exhibit 13.1 to this Form 10-K.

37



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 the 2003 Annual Report to Shareholders 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 the 2003 Annual Report to Shareholders 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 the 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 that date.

            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 2003 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

38


Part III

Item 10.    Directors and Executive Officers of the Registrant

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


Item 13.    Certain Relationships and Related Transactions

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


Item 14.    Principal Accounting Fees and Services

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

39


PART IV

Item 15.    Exhibits, Financial Statements, Schedules and Reports on Form 8-K

(a)
(1)    Financial Statements

            Simon Property Group, Inc.'s financial statements and independent auditors' reports are incorporated herein by reference to the financial statements and independent auditors' reports in the 2003 Annual Report to Shareholders, filed as Exhibit 13.1 to this Form 10-K.

 
    
    
   Page No.
    (2)   Financial Statement Schedules    

 
 
 
 
Report of Independent Public Accountants
 
43

 
 
 
 
Simon Property Group, Inc. Schedule III — Schedule of Real Estate and Accumulated Depreciation
 
44

 
 
 
 
Notes to Combined Schedule III
 
49

 
 
(3)
 
Exhibits
 
 

 
 
 
 
The Exhibit Index attached hereto is hereby incorporated by reference to this Item.
 
50

(b)
 
Reports on Form 8-K
 
 

 
 
 
 
Two Form 8-Ks were filed or furnished during the fourth quarter ended December 31, 2003.
 
 

 
 
 
 
On October 8, 2003 under Item 5 — Other Events and Regulation FD Disclosure, Simon Property issued a press release announcing that its joint tender offer with Westfield America, Inc. for all outstanding common shares of Taubman Centers, Inc was being withdrawn. A copy of Simon Property's press release was attached as an exhibit.
 
 

 
 
 
 
On October 31, 2003 under Item 9 — Regulation FD Disclosure, Simon Property reported that it made available additional ownership and operational information concerning Simon Property, the Operating Partnership, and the properties owned or managed as of September 30, 2003, in the form of a Supplemental Information Package. A copy of the package was included as an exhibit to the 8-K filing. In addition, under Item 12 — Results of Operation and Financial Condition, Simon Property reported that, on October 30, 2003, it issued a press release containing information on earnings as of September 30, 2003 and other matters. A copy of the press release was included as an exhibit.
 
 

40


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

March 12, 2004

            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)		   March 12, 2004

/s/ Herbert Simon
Herbert Simon
 
Co-Chairman of the Board of Directors
 
March 12, 2004

/s/ Melvin Simon
Melvin Simon
 
Co-Chairman of the Board of Directors
 
March 12, 2004

/s/ Richard S. Sokolov
Richard S. Sokolov
 
President, Chief Operating Officer and Director
 
March 12, 2004

/s/ Birch Bayh
Birch Bayh
 
Director
 
March 12, 2004

/s/ Melvyn E. Bergstein
Melvyn E. Bergstein
 
Director
 
March 12, 2004

/s/ Linda Walker Bynoe
Linda Walker Bynoe
 
Director
 
March 12, 2004

/s/ Pieter S. van den Berg
Pieter S. van den Berg
 
Director
 
March 12, 2004
         

41


/s/ G. William Miller
G. William Miller
 
Director
 
March 12, 2004

/s/ Fredrick W. Petri
Fredrick W. Petri
 
Director
 
March 12, 2004

/s/ J. Albert Smith, Jr.
J. Albert Smith, Jr.
 
Director
 
March 12, 2004

/s/ Philip J. Ward
Philip J. Ward
 
Director
 
March 12, 2004

/s/ M. Denise DeBartolo York
M. Denise DeBartolo York
 
Director
 
March 12, 2004

/s/ Stephen E. Sterrett
Stephen E. Sterrett
 
Executive Vice President and Chief Financial
Officer (Principal Financial Officer)
 
March 12, 2004

/s/ John Dahl
John Dahl
 
Senior Vice President (Principal Accounting Officer)
 
March 12, 2004

42


REPORT OF INDEPENDENT AUDITORS ON SCHEDULE

To the Board of Directors of
Simon Property Group, Inc.:

            We have audited the consolidated financial statements of Simon Property Group, Inc. and subsidiaries as of December 31, 2003, and for the year then ended, and have issued our report thereon dated February 5, 2004 (included elsewhere in this Form 10-K). Our audit also included the accompanying "Schedule III: Real Estate and Accumulated Depreciation" as of December 31, 2003, for Simon Property Group, Inc. This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audit.

            In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

                        ERNST & YOUNG LLP

Indianapolis, Indiana
February 5, 2004

43


SCHEDULE III

SIMON PROPERTY GROUP, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2003
(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   $ 0   $ 154   $ 7,641   $ 0   $ 10,556   $ 154   $ 18,197   $ 18,351   5,660   1993 (Note 4)
Anderson Mall, Anderson, SC     29,763     1,712     15,227     1,363     8,176     3,075     23,403     26,478   7,385   1972
Arsenal Mall, Watertown, MA     34,773     15,505     47,680     0     813     15,505     48,493     63,998   5,824   1999 (Note 4)
Aurora Mall, Aurora, CO     0     11,400     55,692     6     5,831     11,406     61,523     72,929   12,080   1998 (Note 4)
Barton Creek Square, Austin, TX     0     2,903     20,699     7,983     51,409     10,886     72,108     82,994   20,707   1981
Battlefield Mall, Springfield, MO     100,000     3,919     27,310     3,225     40,990     7,144     68,300     75,444   27,477   1970
Bay Park Square, Green Bay, WI     24,345     6,358     25,623     4,133     22,357     10,491     47,980     58,471   7,507   1980
Biltmore Square, Asheville, NC     26,000     6,641     23,582     0     1,475     6,641     25,057     31,698   5,971   1989
Bowie Town Center, Bowie, MD     52,700     2,710     65,044     235     5,619     2,945     70,663     73,608   6,627   2001
Boynton Beach Mall, Boynton Beach, FL     0     22,240     79,226     0     14,410     22,240     93,636     115,876   18,008   1985
Brea Mall, Brea, CA     0     39,500     209,202     0     8,348     39,500     217,550     257,050   33,238   1998 (Note 4)
Broadway Square, Tyler, TX     0     11,470     32,439     0     6,541     11,470     38,980     50,450   11,469   1994 (Note 4)
Brunswick Square, Brunswick, NJ     45,000     8,436     55,838     0     22,868     8,436     78,706     87,142   16,912   1973
Burlington Mall, Burlington, MA     0     46,600     303,618     0     6,255     46,600     309,873     356,473   46,610   1998 (Note 4)
Castleton Square, Indianapolis, IN     0     26,250     98,287     2,500     30,476     28,750     128,763     157,513   26,286   1972
Century III Mall, Pittsburgh, PA     87,859     17,380     102,364     10     4,123     17,390     106,487     123,877   31,917   1979
Charlottesville Fashion Square, Charlottesville, VA     0     0     54,738     0     11,399     0     66,137     66,137   11,493   1997 (Note 4)
Chautauqua Mall, Lakewood, NY     0     3,257     9,641     0     14,816     3,257     24,457     27,714   6,569   1971
Cheltenham Square, Philadelphia, PA     33,533     14,227     43,699     0     4,681     14,227     48,380     62,607   11,123   1981
Chesapeake Square, Chesapeake, VA     47,000     11,534     70,461     0     5,137     11,534     75,598     87,132   18,198   1989
Cielo Vista Mall, El Paso, TX     88,322     1,307     18,512     608     22,812     1,915     41,324     43,239   20,484   1974
College Mall, Bloomington, IN     48,294     1,003     16,245     722     21,541     1,725     37,786     39,511   15,974   1965
Columbia Center, Kennewick, WA     0     18,285     66,580     0     8,136     18,285     74,716     93,001   15,408   1987
Coral Square, Coral Springs, FL     88,946     13,556     93,720     0     1,247     13,556     94,967     108,523   22,207   1984
Cordova Mall, Pensacola, FL     0     18,633     75,880     0     3,419     18,633     79,299     97,932   14,069   1998 (Note 4)
Cottonwood Mall, Albuquerque, NM     0     11,585     68,958     0     441     11,585     69,399     80,984   19,131   1996
Crossroads Mall, Omaha, NE     44,127     881     37,263     409     30,269     1,290     67,532     68,822   18,546   1994 (Note 4)
Crystal River Mall, Crystal River, FL     15,867     5,661     20,241     0     4,463     5,661     24,704     30,365   4,913   1990
DeSoto Square, Bradenton, FL     38,094     9,380     52,716     0     6,655     9,380     59,371     68,751   13,493   1973
Eastland Mall, Tulsa, OK     0     3,124     24,035     518     7,023     3,642     31,058     34,700   12,512   1986
Edison Mall, Fort Myers, FL     0     11,529     107,381     0     6,056     11,529     113,437     124,966   20,756   1997 (Note 4)
Fashion Mall at Keystone at the Crossing, Indianapolis, IN     60,518     0     120,579     0     14,379     0     134,958     134,958   23,223   1997 (Note 4)
Forest Mall, Fond Du Lac, WI     17,671     728     4,498     0     7,415     728     11,913     12,641   4,884   1973
The Forum Shops at Caesars, Las Vegas, NV     550,000     0     276,378     0     132,332     0     408,710     408,710   28,513   1992
Great Lakes Mall, Mentor, OH     0     12,304     100,362     432     7,685     12,736     108,047     120,783   23,636   1961
Greenwood Park Mall, Greenwood, IN     89,284     2,559     23,445     5,277     70,029     7,836     93,474     101,310   27,713   1979
Gulf View Square, Port Richey, FL     34,260     13,690     39,997     2,023     14,761     15,713     54,758     70,471   11,567   1980
Haywood Mall, Greenville, SC     0     11,604     133,893     6     1,603     11,610     135,496     147,106   30,029   1998 (Note 4)
Heritage Park, Midwest City, OK     0     598     6,213     0     1,726     598     7,939     8,537   4,331   1978
Hutchinson Mall, Hutchinson, KS     0     1,412     18,411     0     3,017     1,412     21,428     22,840   8,451   1985

44


SCHEDULE III

SIMON PROPERTY GROUP, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2003
(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
Independence Center, Independence, MO   0   5,042   45,822   2   20,461   5,044   66,283   71,327   17,273   1994 (Note 4)
Ingram Park Mall, San Antonio, TX   82,423   764   17,163   169   16,001   933   33,164   34,097   14,277   1979
Irving Mall, Irving, TX   0   6,737   17,479   2,533   29,935   9,270   47,414   56,684   21,435   1971
Jefferson Valley Mall, Yorktown Heights, NY   60,000   4,868   30,304   0   19,475   4,868   49,779   54,647   15,730   1983
Knoxville Center, Knoxville, TN   62,415   5,006   21,965   3,712   33,986   8,718   55,951   64,669   17,869   1984
La Plaza, McAllen, TX   0   1,375   9,828   6,569   30,868   7,944   40,696   48,640   11,065   1976
Lafayette Square, Indianapolis, IN   0   14,251   54,589   50   12,600   14,301   67,189   81,490   15,800   1968
Laguna Hills Mall, Laguna Hills, CA   0   28,074   55,689   0   4,944   28,074   60,633   88,707   11,522   1997 (Note 4)
Lakeline Mall, N. Austin, TX   68,549   10,383   81,568   14   1,202   10,397   82,770   93,167   18,825   1995
Lenox Square, Atlanta, GA   0   38,213   492,411   0   6,382   38,213   498,793   537,006   75,030   1998 (Note 4)
Lima Mall, Lima, OH   0   7,910   35,495   0   7,923   7,910   43,418   51,328   10,413   1965
Lincolnwood Town Center, Lincolnwood, IL   0   7,907   63,480   28   6,485   7,935   69,965   77,900   22,201   1990
Livingston Mall, Livingston, NJ   0   30,200   105,250   0   7,068   30,200   112,318   142,518   17,282   1998 (Note 4)
Longview Mall, Longview, TX   33,070   270   3,602   124   7,283   394   10,885   11,279   4,426   1978
Maplewood Mall, Minneapolis, MN   0   17,119   83,477   0   726   17,119   84,203   101,322   4,712   2002 (Note 4)
Markland Mall, Kokomo, IN   23,397   0   7,568   0   7,133   0   14,701   14,701   4,884   1968
Mc Cain Mall, N. Little Rock, AR   40,729   0   9,515   0   9,221   0   18,736   18,736   10,732   1973
Melbourne Square, Melbourne, FL   36,595   15,762   55,891   0   12,357   15,762   68,248   84,010   13,136   1982
Menlo Park Mall, Edison, NJ   0   65,684   223,252   0   18,295   65,684   241,547   307,231   43,009   1997 (Note 4)
Midland Park Mall, Midland, TX   34,157   687   9,213   0   9,300   687   18,513   19,200   7,761   1980
Miller Hill Mall, Duluth, MN   0   2,537   18,092   0   21,141   2,537   39,233   41,770   14,564   1973
Muncie Mall, Muncie, IN   0   172   5,849   52   23,258   224   29,107   29,331   8,648   1970
Nanuet Mall, Nanuet, NY   0   27,548   162,993   0   2,119   27,548   165,112   192,660   24,889   1998 (Note 4)
North East Mall, Hurst, TX   140,000   912   13,340   19,010   141,380   19,922   154,720   174,642   30,563   1971
Northgate Mall, Seattle, WA   0   28,626   115,992   0   28,729   28,626   144,721   173,347   22,968   1987
Northlake Mall, Atlanta, GA   72,003   33,400   98,035   0   3,338   33,400   101,373   134,773   16,075   1998 (Note 4)
Northwoods Mall, Peoria, IL   0   1,200   12,779   1,449   29,071   2,649   41,850   44,499   17,335   1983
Oak Court Mall, Memphis, TN   0   15,673   57,304   0   3,998   15,673   61,302   76,975   11,569   1997 (Note 4)
Ocean County Mall, Toms River, NJ   0   20,404   124,945   0   15,540   20,404   140,485   160,889   19,725   1998 (Note 4)
Orange Park Mall, Jacksonville, FL   0   13,345   65,121   0   18,062   13,345   83,183   96,528   21,991   1994 (Note 4)
Orland Square, Orland Park, IL   0   35,514   129,906   0   11,905   35,514   141,811   177,325   25,445   1997 (Note 4)
Oxford Valley Mall, Langhorne, PA   86,418   25,391   112,312   0   35   25,391   112,347   137,738   16,789   2003 (Note 4)
Paddock Mall, Ocala, FL   27,248   11,198   39,727   0   7,146   11,198   46,873   58,071   9,138   1980
Palm Beach Mall, West Palm Beach, FL   54,641   11,962   112,741   0   37,095   11,962   149,836   161,798   38,185   1967
Penn Square Mall, Oklahoma City, OK   71,319   2,043   156,808   0   14,607   2,043   171,415   173,458   13,642   2002 (Note 4)
Phipps Plaza, Atlanta, GA   0   19,200   210,610   0   7,728   19,200   218,338   237,538   33,227   1998 (Note 4)
Port Charlotte Town Center, Port Charlotte, FL   53,250   5,561   59,387   0   10,741   5,561   70,128   75,689   16,215   1989
Prien Lake Mall, Lake Charles, LA   0   1,842   2,813   3,091   35,602   4,933   38,415   43,348   11,938   1972
Raleigh Springs Mall, Memphis, TN   11,000   9,137   28,604   0   12,166   9,137   40,770   49,907   9,799   1971

45


SCHEDULE III

SIMON PROPERTY GROUP, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2003
(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
Richardson Square, Dallas, TX   0   4,532   6,329   1,268   11,567   5,800   17,896   23,696   5,097   1977
Richmond Town Square, Richmond Heights, OH   47,977   2,600   12,112   0   60,793   2,600   72,905   75,505   18,393   1966
River Oaks Center, Calumet City, IL   0   30,884   101,224   0   6,362   30,884   107,586   138,470   18,955   1997 (Note 4)
Rockaway Townsquare, Rockaway, NJ   0   46,742   212,257   0   6,784   46,742   219,041   265,783   32,734   1998 (Note 4)
Rolling Oaks Mall, San Antonio, TX   0   2,577   38,609   0   2,223   2,577   40,832   43,409   17,817   1988
Roosevelt Field, Garden City, NY   0   165,006   702,008   2,117   12,194   167,123   714,202   881,325   107,564   1998 (Note 4)
Ross Park Mall, Pittsburgh, PA   0   23,350   90,394   0   23,830   23,350   114,224   137,574   30,172   1986
Santa Rosa Plaza, Santa Rosa, CA   0   10,400   87,864   0   3,831   10,400   91,695   102,095   14,330   1998 (Note 4)
Shops at Mission Viejo Mall, Mission Viejo, CA   0   9,139   54,445   7,491   144,399   16,630   198,844   215,474   38,533   1979
South Hills Village, Pittsburgh, PA   0   23,453   125,840   0   6,786   23,453   132,626   156,079   23,165   1997 (Note 4)
South Shore Plaza, Braintree, MA   0   101,200   301,495   0   8,280   101,200   309,775   410,975   46,814   1998 (Note 4)
Southern Park Mall, Youngstown, OH   0   16,982   77,767   97   18,906   17,079   96,673   113,752   22,191   1970
Southgate Mall, Yuma, AZ   0   1,817   7,974   0   3,577   1,817   11,551   13,368   4,730   1988
SouthPark Mall, Charlotte, NC   0   32,141   193,686   100   63,446   32,241   257,132   289,373   12,469   2002 (Note 4)
St Charles Towne Center Waldorf, MD   0   7,710   52,974   1,180   12,489   8,890   65,463   74,353   24,756   1990
Standford Shopping Center, Palo Alto, CA   220,000   0   359,666   0   13   0   359,679   359,679   4,046   2003 (Note 4)
Summit Mall, Akron, OH   0   15,374   51,137   0   17,006   15,374   68,143   83,517   14,732   1965
Sunland Park Mall, El Paso, TX   37,229   2,896   28,900   0   3,997   2,896   32,897   35,793   14,150   1988
Tacoma Mall, Tacoma, WA   131,903   38,662   125,826   0   20,300   38,662   146,126   184,788   30,866   1987
Tippecanoe Mall, Lafayette, IN   56,725   2,897   8,474   5,517   35,703   8,414   44,177   52,591   20,731   1973
Town Center at Boca Raton
Boca Raton, FL		   0   64,200   307,511   0   62,510   64,200   370,021   434,221   55,230   1998 (Note 4)
Towne East Square, Wichita, KS   72,448   9,113   18,479   2,042   21,968   11,155   40,447   51,602   17,840   1975
Towne West Square, Wichita, KS   53,952   972   21,203   76   7,185   1,048   28,388   29,436   12,477   1980
Treasure Coast Square, Jensen Beach, FL   61,990   11,124   73,108   3,067   17,181   14,191   90,289   104,480   19,353   1987
Trolley Square, Salt Lake City, UT   29,133   4,827   27,512   435   10,931   5,262   38,443   43,705   13,347   1986
Tyrone Square, St. Petersburg, FL   0   15,638   120,962   0   15,227   15,638   136,189   151,827   28,888   1972
University Mall, Little Rock, AR   0   123   17,411   0   760   123   18,171   18,294   7,753   1967
University Mall, Pensacola, FL   0   4,706   26,657   0   4,136   4,706   30,793   35,499   8,926   1994
University Park Mall, Mishawaka, IN   58,799   15,105   61,283   0   14,036   15,105   75,319   90,424   66,375   1996 (Note 4)
Upper Valley Mall, Springfield, OH   30,314   8,421   38,745   0   3,353   8,421   42,098   50,519   9,901   1979
Valle Vista Mall, Harlingen, TX   39,076   1,398   17,159   372   10,977   1,770   28,136   29,906   11,003   1983
Virginia Center Commons, Richmond, VA   0   9,764   50,547   4,149   6,516   13,913   57,063   70,976   13,638   1991
Walt Whitman Mall,
Huntington Station, NY		   0   51,700   111,258   3,789   33,804   55,489   145,062   200,551   29,942   1998 (Note 4)
Washington Square, Indianapolis, IN   32,862   17,201   41,248   100   14,501   17,301   55,749   73,050   13,055   1974
West Ridge Mall, Topeka, KS   43,392   5,514   34,132   197   6,175   5,711   40,307   46,018   14,251   1988
Westminster Mall, Westminster, CA   0   43,464   84,709   0   12,316   43,464   97,025   140,489   14,706   1998 (Note 4)
White Oaks Mall, Springfield, IL   48,563   3,024   35,692   2,413   23,640   5,437   59,332   64,769   15,895   1977
Wolfchase Galleria, Memphis, TN   74,437   16,470   128,909   0   8,375   16,470   137,284   153,754   17,730   2002 (Note 4)
Woodville Mall, Northwood, OH   0   1,818   4,244   0   1,592   1,818   5,836   7,654   2,241   1969

46


SCHEDULE III

SIMON PROPERTY GROUP, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2003
(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

Community Shopping Centers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Arboretum, The, Austin, TX   0   7,640   36,778   71   6,230   7,711   43,008   50,719   6,442   1998 (Note 4)
Bloomingdale Court, Bloomingdale, IL   28,695   8,748   26,184   0   3,832   8,748   30,016   38,764   8,689   1987
Boardman Plaza, Youngstown, OH   17,907   8,189   26,355   0   6,173   8,189   32,528   40,717   7,398   1951
Bridgeview Court, Bridgeview, IL   0   245   3,638   0   836   245   4,474   4,719   1,835   1988
Brightwood Plaza, Indianapolis, IN   0   65   128   0   283   65   411   476   216   1965
Celina Plaza, El Paso, TX   0   138   815   0   103   138   918   1,056   387   1978
Charles Towne Square, Charleston, SC   0   2   1,768   425   10,636   427   12,404   12,831   2,743   1976
Chesapeake Center, Chesapeake, VA   6,563   5,352   12,279   0   262   5,352   12,541   17,893   2,653   1989
Countryside Plaza, Countryside, IL   0   1,243   8,507   0   1,266   1,243   9,773   11,016   4,031   1977
DeKalb Plaza, King of Prussia, PA   2,711   1,975   3,484   0   0   1,975   3,484   5,459   547   2003 (Note 4)
Eastland Plaza, Tulsa, OK   0   651   3,680   0   52   651   3,732   4,383   1,262   1986
Forest Plaza, Rockford, IL   15,738   4,132   16,818   453   1,569   4,585   18,387   22,972   5,220   1985
Great Lakes Plaza, Mentor, OH   0   1,028   2,025   0   3,616   1,028   5,641   6,669   1,656   1976
Greenwood Plus, Greenwood, IN   0   1,131   1,792   0   3,718   1,131   5,510   6,641   1,753   1979
Griffith Park Plaza, Griffith, IN   0   0   2,412   0   317   0   2,729   2,729   1,666   1979
Grove at Lakeland Square, The, Lakeland, FL   3,750   5,237   6,016   0   1,042   5,237   7,058   12,295   1,904   1988
Henderson Square, King of Prussia, PA   15,625   4,252   16,227   0   0   4,252   16,227   20,479   557   2003 (Note 4)
Highland Lakes Center, Orlando, FL   16,288   7,138   25,284   0   646   7,138   25,930   33,068   5,664   1991
Ingram Plaza, San Antonio, TX   0   421   1,802   4   21   425   1,823   2,248   924   1980
Keystone Shoppes, Indianapolis, IN   0   0   4,232   0   888   0   5,120   5,120   858   1997 (Note 4)
Knoxville Commons, Knoxville, TN   0   3,731   5,345   0   1,728   3,731   7,073   10,804   2,535   1987
Lake Plaza, Waukegan, IL   0   2,577   6,420   0   744   2,577   7,164   9,741   2,003   1986
Lake View Plaza, Orland Park, IL   20,921   4,775   17,543   0   8,362   4,775   25,905   30,680   6,260   1986
Lakeline Plaza, Austin, TX   22,937   5,822   30,875   0   6,659   5,822   37,534   43,356   6,549   1998
Lima Center, Lima, OH   0   1,808   5,151   0   4,499   1,808   9,650   11,458   1,574   1978
Lincoln Crossing, O'Fallon, IL   3,167   658   2,208   0   360   658   2,568   3,226   702   1990
Lincoln Plaza, Langhorne, PA   0   0   23,868   0   37   0   23,905   23,905   3,848   2003 (Note 4)
Markland Plaza, Kokomo, IN   0   206   738   0   5,657   206   6,395   6,601   883   1974
Martinsville Plaza, Martinsville, VA   0   0   584   0   116   0   700   700   614   1967
Matteson Plaza, Matteson, IL   9,213   1,830   9,737   0   2,264   1,830   12,001   13,831   3,823   1988
Muncie Plaza, Muncie, IN   7,965   341   10,509   87   190   428   10,699   11,127   2,116   1998
New Castle Plaza, New Castle, IN   0   128   1,621   0   1,414   128   3,035   3,163   1,305   1966
North Ridge Plaza, Joliet, IL   0   2,831   7,699   0   785   2,831   8,484   11,315   2,623   1985
Northland Plaza, Columbus, OH   0   4,490   8,893   0   1,276   4,490   10,169   14,659   3,222   1988
Northwood Plaza, Fort Wayne, IN   0   148   1,414   0   1,046   148   2,460   2,608   1,092   1974
Park Plaza, Hopkinsville, KY   0   300   1,572   0   225   300   1,797   2,097   1,296   1968
Regency Plaza, St. Charles, MO   4,318   616   4,963   0   248   616   5,211   5,827   1,376   1988
Rockaway Convenience Center Rockaway, NJ   0   5,149   26,435   0   3,429   5,149   29,864   35,013   2,104   1998 (Note 4)
St. Charles Towne Plaza, Waldorf, MD   27,639   8,779   18,993   0   411   8,779   19,404   28,183   6,107   1987
Shops at North East Mall, The, Hurst, TX   0   12,541   28,177   402   8,685   12,943   36,862   49,805   6,731   1999

47


SCHEDULE III

SIMON PROPERTY GROUP, INC.
REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2003
(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

Community Shopping Centers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Teal Plaza, Lafayette, IN     0     99     878     0     2,928     99     3,806     3,905     1,185   1962
Terrace at The Florida Mall, Orlando, FL     4,688     2,150     7,623     0     1,780     2,150     9,403     11,553     1,532   1989
Tippecanoe Plaza, Lafayette, IN     0     246     440     305     4,965     551     5,405     5,956     1,994   1974
University Center, Mishawaka, IN     0     2,388     5,214     0     887     2,388     6,101     8,489     6,005   1980
Wabash Village, West Lafayette, IN     0     0     976     0     272     0     1,248     1,248     623   1970
Washington Plaza, Indianapolis, IN     0     941     1,697     0     177     941     1,874     2,815     2,024   1976
Waterford Lakes, Orlando, FL     68,000     8,679     72,836     0     11,963     8,679     84,799     93,478     13,896   1999
West Ridge Plaza, Topeka, KS     5,567     1,376     4,560     0     1,269     1,376     5,829     7,205     1,661   1988
White Oaks Plaza, Springfield, IL     16,987     3,169     14,267     0     795     3,169     15,062     18,231     4,267   1986

Office, Mixed-Use Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Copley Place, Boston, MA     180,836     147     378,876     0     2,900     147     381,776     381,923     14,534   2002 (Note 4)
O Hare International Center, Rosemont, IL     0     125     47,482     0     13,015     125     60,497     60,622     17,353   1988
Riverway, Rosemont, IL     110,000     8,739     106,462     16     14,268     8,755     120,730     129,485     36,962   1991 (Note 4)

Development Projects
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wolf Ranch, Georgetown, TX     0     25,415     4,130     0     0     25,415     4,130     29,545     0    
St. Johns Town Center, Jacksonville, FL     37,500     22,617     17,505     0     0     22,617     17,505     40,122     0    
Firewheel Town Center, Garland, TX     0     12,150     3,948     0     0     12,150     3,948     16,098     0    
Other pre-development costs     0     16,188     4,483     0     0     16,188     4,483     20,671     0    
Other     0     7,917     7,808     279     930     8,196     8,738     16,934     1,967    
   
 
 
 
 
 
 
 
 
   
    $ 4,179,385   $ 1,965,559   $ 10,556,141   $ 102,705   $ 2,210,038   $ 2,068,264   $ 12,766,179   $ 14,834,443   $ 2,482,955    
   
 
 
 
 
 
 
 
 
   

48

SIMON PROPERTY GROUP, INC.
NOTES TO SCHEDULE III AS OF DECEMBER 31, 2003
(Dollars in thousands)

(1)    Reconciliation of Real Estate Properties:

            The changes in real estate assets for the years ended December 31, 2003, 2002, and 2001 are as follows:

 
   2003
   2002
   2001
  
Balance, beginning of year   $ 14,129,739   $ 13,095,005   $ 12,955,080  
  Acquisitions and consolidations     761,179     1,107,581     —  
  Improvements     377,548     208,257     245,660  
  Disposals and abandonments     (434,023 )   (281,104 )   (58,735 )
  Impairment Write-Down     —     —     (47,000 )
   
 
 
 
Balance, close of year   $ 14,834,443   $ 14,129,739   $ 13,095,005  
   
 
 
 

            The unaudited aggregate cost of real estate assets for federal income tax purposes as of December 31, 2003 was $10,740,729.

(2)    Reconciliation of Accumulated Depreciation:

            The changes in accumulated depreciation and amortization for the years ended December 31, 2003, 2002, and 2001 are as follows:

 
   2003
   2002
   2001
  
Balance, beginning of year   $ 2,168,281   $ 1,827,140   $ 1,443,127  
  Acquisitions and consolidations     21,111     16,491     —  
  Depreciation expense     461,546     417,064     419,841  
  Disposals and abandonments     (167,983 )   (92,414 )   (35,828 )
   
 
 
 
Balance, close of year   $ 2,482,955   $ 2,168,281   $ 1,827,140  
   
 
 
 

            Depreciation of Simon Property's investment in buildings and improvements reflected in the statements of operations is calculated over the estimated original lives of the assets as follows:

      •
      Buildings and Improvements — typically 10 - 35 years for the structure, 15 years for landscaping and parking lot, and 10 years for HVAC equipment.
      •
      Tenant Inducements — shorter of lease term or useful life.

(3)
Initial cost generally represents net book value at December 20, 1993 except for acquired properties and new developments after December 20, 1993. Cost capitalized subsequent to acquisition are generally net of related disposals.

(4)
Not developed/constructed by Simon Property or its predecessors. The date of construction represents acquisition date.

49


INDEX TO EXHIBITS

Exhibits
    
   Page
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).    
3.5   Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series E Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.3 of the Registrant's Form 10-Q filed on November 15, 1999).    
3.6   Certificate of Powers, Designations, Preferences and Rights of the 83/4% Series F Cumulative Redeemable Preferred Stock, $.0001 Par Value (incorporated by reference to Exhibit 4.1 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 7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $.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)).    
3.8   Certificate of Powers, Designations, Preferences and Rights of the Series H Variable Rate Preferred Stock, $0.0001 Par Value.    
3.8a   Certificate of Correction Filed to Correct a Certain Error in Certificate of Powers, Designations, Preferences and Rights of the Series H Variable Rate Preferred Stock, $0.0001 Par Value.    
9.1   Amended and Restated Voting Trust Agreement, Voting Agreement and Proxy between MSA, 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 Annual Report on Form 10-K for 2000).    
10.1   Credit Agreement, dated as of April 16, 2002, among Simon Property Group, L.P., the Lenders named therein, the Co-Agents named therein (incorporated by reference to Exhibit 10.1 of the Form 8-K filed by the Operating Partnership on December 5, 2002).    
10.2   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)).    
10.3   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).    
10.4(a)   Simon Property Group, L.P. 1998 Stock Incentive Plan (incorporated by reference to Appendix G to the Registrants' Definitive Proxy Statement on Schedule 14A dated April 7, 2003).    
10.5(a)   Form of Employment Agreement between Hans C. Mautner and the Companies (incorporated by reference to Exhibit 10.63 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399) ).    
10.6(a)   Form of Incentive Stock Option Agreement between the Companies and Hans C. Mautner pursuant to the Operating Partnership 1998 Stock Incentive Plan (incorporated by reference to Exhibit 10.59 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399)).    
10.7(a)   Form of Nonqualified Stock Option Agreement between the Registrant and Hans C. Mautner pursuant to the Operating Partnership 1998 Stock Incentive Plan (incorporated by reference to Exhibit 10.61 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399)).    
10.8(a)   Employment Agreement between Hans C. Mautner and Simon Global Limited (incorporated by reference to Exhibit 10.10 of the 2000 Form 10-K filed by the Registrant).    
10.9(a)   First Amendment to Employment Agreement Dated September 23, 1998 between Hans C. Mautner and the Registrant (incorporated by reference to Exhibit 10.11 of the 2000 Form 10-K filed by the Registrant).    
10.10(a)   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).    
12.1          Statement regarding computation of ratios.    

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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 2003 Annual Report to Shareholders.    
21.1          List of Subsidiaries of the Company.    
23.1          Consent of Arthur Andersen LLP (omitted pursuant to Rule 437a of the Securities Act)    
23.2          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.    
(a)
Represents a management contract, or compensatory plan, contract or arrangement required to be filed pursuant to Regulation S-K.

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QuickLinks

TABLE OF CONTENTS
Part I
Item 1. Business
MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES As of December 31, 2003 (Dollars in thousands)
Part II
Part III
PART IV
SIGNATURES
REPORT OF INDEPENDENT AUDITORS ON SCHEDULE
INDEX TO EXHIBITS