8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 31, 2006

SIMON PROPERTY GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-14469	046268599
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

225 WEST WASHINGTON STREET INDIANAPOLIS, INDIANA	46204
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  317.636.1600

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Item 2.02.   Results of Operation and Financial Condition

On July 31, 2006, Simon Property Group, Inc. (the “Registrant”) issued a press release containing information on earnings for the quarter ended June 30, 2006 and other matters. A copy of the press release is attached hereto as Exhibit 99.2 and the information in the press release is incorporated by reference into this report.

The press release and Supplemental Information package attached as Exhibit 99.1 use the non-GAAP financial measure of Funds from Operations (“FFO”). The Supplemental Information package also uses the non-GAAP measure of Net Operating Income (“NOI”). The Registrant considers FFO and NOI key measures of its operating performance that are not specifically defined by accounting principles generally accepted in the United States (“GAAP”). The Registrant believes that FFO and NOI are helpful to investors because they are widely recognized measures of the performance of real estate investment trusts and provide relevant bases for comparison among REITs. The Registrant also uses FFO and NOI internally to measure the operating performance of its portfolio. Reconciliations of FFO to net income on an estimated and historical basis are provided on page 71 furnished herewith in Exhibit 99.2. Reconciliations of net income to NOI on an estimated and historical basis are provided on page 14 furnished herewith in Exhibit 99.1.

The Registrant is furnishing the information contained herein, including Exhibit 99.2, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

Item 7.01.   Regulation FD Disclosure

On July 31, 2006, the Registrant made available additional ownership and operational information concerning the Registrant, Simon Property Group, L.P., and properties owned or managed as of June 30, 2006, in the form of a Supplemental Information package, a copy of which is attached as Exhibit 99.1. The Supplemental Information package is also available upon request as specified therein.

The Registrant is furnishing the information contained herein, including Exhibit 99.1, pursuant to Item 7.01 of Form 8-K promulgated by the SEC. This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

Item 9.01.   Financial Statements and Exhibits

Financial Statements:

None

Exhibits:

Exhibit No.	Description	Page Number in This Filing
99.1	Supplemental Information as of June 30, 2006	5
99.2	Earnings Release for the quarter ended June 30, 2006	60

2

SIGNATURES

Pursuant to the requirements 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.

Dated: July 31, 2006

SIMON PROPERTY GROUP, INC.
By:	/s/ STEPHEN E. STERRETT
	Stephen E. Sterrett,
	Executive Vice President and
	Chief Financial Officer

3

SIMON PROPERTY GROUP

Table of Contents

As of June 30, 2006

Description		Page
Exhibit 99.1	Supplemental Information
	Company Overview
	Overview (reporting calendar, stock information, and corporate ratings)	5-6
	Ownership Structure	7
	Changes in Common Shares and Unit Ownership	8
	Financial Data
	Selected Financial and Equity Information	9
	Unaudited Pro-Rata Statement of Operations	11-12
	Unaudited Pro-Rata Balance Sheet	13
	Reconciliation of Net Income to NOI	14
	NOI Composition	15
	Analysis of Other Income and Other Expense	16
	Operational Data
	U.S. Portfolio GLA	17
	U.S. Regional Mall Operational Information	18
	U.S. Regional Mall Lease Expirations	19
	U.S. Regional Mall Top Tenants	20
	U.S. Regional Mall Anchor/Big Box Openings, 2006-2010	21-22
	U.S. Regional Mall Property Listing	23-27
	U.S. Premium Outlet® Centers Operational Information	28
	U.S. Premium Outlet® Centers Lease Expirations	29
	U.S. Premium Outlet® Centers Top Tenants	30
	U.S. Premium Outlet® Centers Property Listing	31
	U.S. Community/Lifestyle Centers Operational Information	32
	U.S. Community/Lifestyle Centers Lease Expirations	33
	U.S. Community/Lifestyle Centers Top Tenants	34
	U.S. Community/Lifestyle Centers Property Listing	35-36
	International Operational Information	37
	International Property Listing	38-40
	Development Activity
	Capital Expenditures in the U.S. Portfolio	41
	U.S. Development Activity Report	42-44
	International Development Activity Report	45
	Balance Sheet Information
	The Company’s Share of Total Debt Amortization and Maturities by Year	46
	Summary of Indebtedness	47
	Summary of Indebtedness by Maturity	48-53
	Unencumbered Assets	54-58
	Preferred Stock/Units Outstanding	59
	Quarterly Earnings Announcement
Exhibit 99.2	Press Release	60-72

4

EX-99.1

Exhibit 99.1

SIMON PROPERTY GROUP

Overview

The Company

Simon Property Group, Inc. (the “Company” or “Simon Property”) (NYSE:SPG) is a self-administered and self-managed real estate investment trust (“REIT”). Simon Property Group, L.P. (the “Operating Partnership”) is a subsidiary partnership of the Company. The Company and the Operating Partnership (collectively, “Simon Group”) are engaged primarily in the ownership, development and management of retail real estate properties, primarily regional malls, Premium Outlet centers and community/lifestyle centers.

At June 30, 2006, the Company owned or had an interest in 285 properties in the United States containing an aggregate of 200 million square feet of gross leasable area (GLA) in 39 states plus Puerto Rico. The Company also holds interests in 52 European shopping centers in France, Italy and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico.

This package was prepared to provide (1) ownership information, (2) certain operational information, and (3) balance sheet information as of June 30, 2006, for the Company and the Operating Partnership.

Certain statements made in this Supplemental Package may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to:  the Company’s ability to meet debt service requirements, the availability of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, the ability to hedge interest rate risk, risks associated with the acquisition, development and expansion of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, competitive market forces, risks related to international activities, insurance costs and coverage, impact of terrorist activities, inflation and maintenance of REIT status. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its most recent Annual Report on Form 10-K that could cause the Company’s actual results to differ materially from the forward-looking statements that the Company makes. The Company may update that discussion in subsequent quarterly reports, but otherwise the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

We hope you find this Supplemental Package beneficial. Any questions, comments or suggestions should be directed to: Shelly J. Doran, Vice President of Investor Relations-Simon Property Group, P.O. Box 7033, Indianapolis, IN 46207. Telephone: (317) 685-7330; e-mail: sdoran@simon.com

5

Reporting Calendar

Results for the next two quarters will be announced according to the following approximate schedule:

Third Quarter 2006	Late October 2006
Fourth Quarter 2006	Early February 2007

Stock Information

Simon Property common stock and four issues of preferred stock are traded on the New York Stock Exchange under the following symbols:

Common Stock	SPG
8.75% Series F Cumulative Preferred	SPGPrF
7.89% Series G Cumulative Preferred	SPGPrG
6% Series I Convertible Perpetual Preferred	SPGPrI
8.375% Series J Cumulative Redeemable Preferred	SPGPrJ

Credit Ratings

Standard & Poor’s(1)
Corporate	A-	(Stable Outlook)
Senior Unsecured	A-	(Stable Outlook)
Preferred Stock	BBB+	(Stable Outlook)
Moody’s(2)
Senior Unsecured	Baa1	(Positive Outlook)
Preferred Stock	Baa2	(Positive Outlook)

(1)On March 31, 2006, Standard & Poor’s upgraded its rating on Simon Group’s corporate and senior unsecured debt to A- from BBB+ and upgraded its rating on Simon Group’s preferred stock to BBB+ from BBB.

(2)On April 26, 2006, Moody’s changed its outlook on Simon Group’s senior unsecured debt and preferred stock to Positive from Stable.

6

Simon Property Group Ownership Structure(1)June 30, 2006

(1)Schedule excludes preferred stock (see “Preferred Stock/Units Outstanding”) and units not convertible into common stock.

(2)Consists of Melvin Simon, Herbert Simon, David Simon, and/or trusts established for the benefit of members of the Simon family and Melvin Simon & Associates, Inc.

(3)Holders of Class B common stock are entitled to elect 4 of the 13 members of the Board of Directors and also have voting rights with common stock.

(4)Consists of NID Corporation, directly or indirectly, members of the DeBartolo family, including Edward J. DeBartolo, Jr. and M. Denise DeBartolo York, or trusts established for the benefit of members of the DeBartolo family or entities in which the foregoing persons hold interests.

(5)Holders of Class C common stock are entitled to elect 2 of the 13 members of the Board of Directors and also have voting rights with common stock.

(6)Other executives includes directors and executive officers of Simon Property, other than Simon and DeBartolo family members.

7

SIMON PROPERTY GROUP
Changes in Common Shares and Unit Ownership
For the Period from December 31, 2005 through June 30, 2006

	Operating		Company
	Partnership		Common
	Units(1)		Shares(2)
Number Outstanding at December 31, 2005	58,522,624		220,361,581
Activity During the First Quarter of 2006:
Issuance of Stock for Stock Option Exercises	—		58,225
Conversion of Units into Common Stock	(16,800	)	16,800
Conversion of Units into Cash	(32,349	)	—
Conversion of Preferred Units into Units	19,967		—
Restricted Stock Awards (Stock Incentive Program), Net	—		426,750
Number Outstanding at March 31, 2006	58,493,442		220,863,356
Activity During the Second Quarter of 2006:
Issuance of Stock for Stock Option Exercises	—		146,500
Conversion of Preferred Stock into Common Stock	—		169,343
Conversion of Units into Cash	(101,469	)	—
Conversion of Preferred Units into Units	1,245		—
Restricted Stock Awards (Stock Incentive Program), Net	—		(9,465	)
Number Outstanding at June 30, 2006	58,393,218		221,169,734
Details for Diluted Common Shares Outstanding(5):
Company Common Shares Outstanding at June 30, 2006			221,169,734
Number of Common Shares Issuable Assuming Conversion of:
Series I 6% Convertible Perpetual Preferred Stock(3)			10,698,215
Series C 7% Cumulative Convertible Preferred Units(3)			1,046,393
Series I 6% Convertible Perpetual Preferred Units(3)			3,273,523
Net Number of Common Shares Issuable Assuming Exercise of Stock Options(4)			885,218
Diluted Common Shares Outstanding at June 30, 2006(5)			237,073,083

(1)  Excludes units owned by the Company (shown here as Company Common Shares) and units not convertible into common shares.

(2)  Excludes preferred units relating to preferred stock outstanding (see Schedule of Preferred Stock Outstanding on page 59).

(3)Conversion terms provided on page 59 of this document.

(4)Based upon the weighted average stock price for the quarter ended June 30, 2006.

(5)For FFO purposes.

8

SIMON PROPERTY GROUP
Selected Financial and Equity Information
As of June 30, 2006
Unaudited
(In thousands, except as noted)

	As of or for the				As of or for the
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2006		2005		2006		2005
Financial Highlights of the Company
Total Revenue—Consolidated Properties	$	798,738	$	752,084	$	1,586,387	$	1,494,054
Net Income Available to Common Stockholders	$	82,868	$	154,811	$	186,885	$	211,878
Basic Earnings per Common Share	$	0.37	$	0.70	$	0.85	$	0.96
Diluted Earnings per Common Share	$	0.37	$	0.70	$	0.84	$	0.96
FFO of the Simon Portfolio	$	358,440	$	335,169	$	717,297	$	654,738
Diluted FFO of the Simon Portfolio	$	372,561	$	349,378	$	745,612	$	683,159
Basic FFO per Share	$	1.28	$	1.20	$	2.57	$	2.34
Diluted FFO per Share	$	1.26	$	1.18	$	2.52	$	2.31
Distributions per Share	$	0.76	$	0.70	$	1.52	$	1.40

	June 30,		December 31,
	2006		2005
Stockholders’ Equity Information
Limited Partner Units Outstanding at End of Period	58,393		58,523
Common Shares Outstanding at End of Period	221,170		220,361
Total Common Shares and Units Outstanding at End of Period	279,563		278,884
Weighted Average Limited Partnership Units Outstanding	58,488		59,566
Weighted Average Common Shares Outstanding—Basic(1)	220,787		220,259
Weighted Average Common Shares Outstanding—Diluted(1)	236,886		236,321
Debt Information
Simon Group’s Share of Consolidated Debt	$	13,942,213	$	13,912,933
Simon Group’s Share of Joint Venture Debt	$	3,433,708	$	3,169,662
Market Capitalization
Common Stock Price at End of Period	$	82.94	$	76.63
Equity Market Capitalization(2)	$	24,923,383	$	23,070,738
Total Capitalization—Including Simon Group’s Share of JV Debt	$	42,299,304	$	40,153,333

	As of or for the
	Six Months Ended
	June 30,
	2006		2005
Miscellaneous Balance Sheet Data
Interest Capitalized during the Period:
Consolidated Properties	$	12,241	$	6,862
Joint Venture Properties	$	3,882	$	1,475
Simon Group’s Share of Joint Venture Properties	$	1,808	$	639

(1)For purposes of computing net income and FFO per share.

(2)Market value of Common Stock, Units and all issues of Preferred Stock of the Company.

9

On the next three pages, we present balance sheet and income statement data on a pro-rata basis reflecting the Company’s proportionate economic ownership of each asset in the Simon Group portfolio.

Basis of Presentation:  The consolidated amounts shown are prepared on a consistent basis with the consolidated financial statements prepared by the Company. The Company’s Share of Joint Ventures column was derived on a property-by-property basis by applying the same percentage interests used to arrive at our share of net income during the period and applying them to all financial statement line items of each property. A similar calculation was performed for minority interests.

10

SIMON PROPERTY GROUP
Unaudited Pro-Rata Statement of Operations
For The Three Months Ended June 30, 2006

	Consolidated				Minority Interest				The Company’s Consolidated Share				The Company’s Share of Joint Ventures				Total Company’s Share
REVENUE:
Minimum rent		$	485,826			$	(8,304	)		$	477,522			$	120,194			$	597,716
Overage rent		15,297				(88		)		15,209				7,383				22,592
Tenant reimbursements		226,777				(5,080		)		221,697				55,390				277,087
Management fees and other revenues		19,399				—				19,399				—				19,399
Other income		51,439				(444		)		50,995				16,034				67,029
Total revenue		798,738				(13,916		)		784,822				199,001				983,823
EXPENSES:
Property operating		107,257				(2,894		)		104,363				37,567				141,930
Depreciation and amortization		211,363				(2,114		)		209,249				54,533				263,782
Real estate taxes		70,404				(1,177		)		69,227				13,257				82,484
Repairs and maintenance		24,839				(652		)		24,187				8,876				33,063
Advertising and promotion		20,541				(330		)		20,211				3,139				23,350
Provision for (recovery of) credit losses		4,466				(112		)		4,354				525				4,879
Home and regional office costs		32,652				—				32,652				—				32,652
General & administrative		5,005				—				5,005				—				5,005
Other		12,162				(544		)		11,618				17,965				29,583
Total operating expenses		488,689				(7,823		)		480,866				135,862				616,728
OPERATING INCOME		310,049				(6,093		)		303,956				63,139				367,095
Interest expense		200,743				(2,660		)		198,083				44,302				242,385
Income before minority interest		109,306				(3,433		)		105,873				18,837				124,710
Minority interest		(3,433		)		3,433				—				—				—
Income tax expense of taxable REIT subsidiaries		(3,220		)		—				(3,220		)		—				(3,220		)
Income before unconsolidated entities		102,653				—				102,653				18,837				121,490
Income from unconsolidated entities and beneficial interests		19,882				—				19,882				(18,837		)		1,045
Gain on sales of interests in unconsolidated entities		7,599				—				7,599				—				7,599
Income from continuing operations		130,134				—				130,134				—				130,134
Results of operations from discontinued operations		(135		)		—				(135		)		—				(135		)
Gain on disposal or sale of discontinued operations, net		112				—				112				—				112
Income before allocation to limited partners		130,111				—				130,111				—				130,111
LESS:
Limited partners’ interest in the Operating Partnership		21,920				—				21,920				—				21,920
Preferred distributions of the Operating Partnership		6,928				—				6,928				—				6,928
NET INCOME		101,263				—				101,263				—				101,263
Preferred dividends		(18,395		)		—				(18,395		)		—				(18,395		)
NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS		$	82,868			$	—			$	82,868			$	—			$	82,868
RECONCILIATION OF NET INCOME TO FFO
Net Income										$	101,263			$	—			$	101,263
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership										28,848				—				28,848
Depreciation and amortization from consolidated properties, beneficial interests, and discontinued operations										210,448				—				210,448
Simon’s share of depreciation and amortization from unconsolidated entities										—				52,946				52,946
Income from unconsolidated entities										(18,837		)		18,837				—
Gain on disposal or sale of discontinued operations, net and gain on sales of interests in unconsolidated entities, net										(7,711		)		—				(7,711		)
Minority interest portion of depreciation and amortization										(2,031		)		—				(2,031		)
Preferred distributions and dividends										(25,323		)		—				(25,323		)
FFO of the Simon Portfolio										$	286,657			$	71,783			$	358,440
Percentage of FFO of the Simon Portfolio										79.97		%		20.03		%		100.00		%

11

SIMON PROPERTY GROUP
Unaudited Pro-Rata Statement of Operations
For The Six Months Ended June 30, 2006

									The Company’s				The Company’s				Total
					Minority				Consolidated				Share of				Company’s
	Consolidated				Interest				Share				Joint Ventures				Share
REVENUE:
Minimum rent		$	973,914			$	(16,621	)		$	957,293			$	234,040			$	1,191,333
Overage rent		31,356				(205		)		31,151				13,098				44,249
Tenant reimbursements		447,812				(11,148		)		436,664				107,249				543,913
Management fees and other revenues		39,568				—				39,568				—				39,568
Other income		93,737				(872		)		92,865				30,874				123,739
Total revenue		1,586,387				(28,846		)		1,557,541				385,261				1,942,802
EXPENSES:
Property operating		213,204				(5,926		)		207,278				73,513				280,791
Depreciation and amortization		420,810				(4,262		)		416,548				105,147				521,695
Real estate taxes		152,209				(5,785		)		146,424				26,692				173,116
Repairs and maintenance		50,794				(1,291		)		49,503				17,006				66,509
Advertising and promotion		37,943				(645		)		37,298				6,151				43,449
Provision for (recovery of) credit losses		4,460				(246		)		4,214				853				5,067
Home and regional office costs		62,988				—				62,988				—				62,988
General & administrative		9,498				—				9,498				—				9,498
Other		25,228				(1,003		)		24,225				28,272				52,497
Total operating expenses		977,134				(19,158		)		957,976				257,634				1,215,610
OPERATING INCOME		609,253				(9,688		)		599,565				127,627				727,192
Interest expense		404,815				(5,330		)		399,485				89,098				488,583
Income before minority interest		204,438				(4,358		)		200,080				38,529				238,609
Minority interest		(4,358		)		4,358				—				—				—
Income tax expense of taxable REIT subsidiaries		(4,859		)		—				(4,859		)		—				(4,859		)
Income before unconsolidated entities		195,221				—				195,221				38,529				233,750
Income from unconsolidated entities and beneficial interests		49,805				—				49,805				(38,529		)		11,276		(A)
Gain on sales of interests in unconsolidated entities		41,949				—				41,949				—				41,949
Income from continuing operations		286,975				—				286,975				—				286,975
Results of operations from discontinued operations		56				—				56				—				56
Gain on disposal or sale of discontinued operations, net		84				—				84				—				84
Income before allocation to limited partners		287,115				—				287,115				—				287,115
LESS:
Limited partners’ interest in the Operating Partnership		49,508				—				49,508				—				49,508
Preferred distributions of the Operating Partnership		13,754				—				13,754				—				13,754
NET INCOME		223,853				—				223,853				—				223,853
Preferred dividends		(36,968		)		—				(36,968		)		—				(36,968		)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	186,885			$	—			$	186,885			$	—			$	186,885
RECONCILIATION OF NET INCOME TO FFO
Net Income										$	223,853			$	—			$	223,853
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership										63,262				—				63,262
Depreciation and amortization from consolidated properties, beneficial interests, and discontinued operations										423,990				—				423,990
Simon’s share of depreciation and amortization from unconsolidated entities										—				103,078				103,078
Income from unconsolidated entities										(38,529		)		38,529				—
Gain on disposal or sale of discontinued operations, net and gain on sales of interests in unconsolidated entities, net										(42,033		)		—				(42,033		)
Minority interest portion of depreciation and amortization										(4,131		)		—				(4,131		)
Preferred distributions and dividends										(50,722		)		—				(50,722		)
FFO of the Simon Portfolio										$	575,690			$	141,607			$	717,297
Percentage of FFO of the Simon Portfolio										80.26		%		19.74		%		100.00		%

(A)  Represents beneficial interest in earnings from Mall of America for the period from August 2004 through and including the second quarter of 2006 attributable to a transfer from a Simon family affiliate of certain cash flow distributions, capital transaction proceeds and related profits and losses.

12

SIMON PROPERTY GROUP
Unaudited Pro-Rata Balance Sheet
As of June 30, 2006

								The Company’s				The Company’s				Total
					Minority			Consolidated				Share of				Company’s
	Consolidated				Interest			Share				Joint Ventures				Share
ASSETS:
Investment properties, at cost		$	22,004,082		$	(202,036	)		$	21,802,046			$	5,414,666		$	27,216,712
Less—accumulated depreciation		4,172,347			(62,958		)		4,109,389				807,357			4,916,746
		17,831,735			(139,078		)		17,692,657				4,607,309			22,299,966
Cash and cash equivalents		330,285			(9,123		)		321,162				130,342			451,504
Tenant receivables and accrued revenue, net		307,969			(5,055		)		302,914				81,674			384,588
Investment in unconsolidated entities, at equity		1,523,529			—				1,523,529				(1,523,529		)	—
Deferred costs and other assets		922,349			(71,813		)		850,536				144,260			994,796
Total assets		$	20,915,867		$	(225,069	)		$	20,690,798			$	3,440,056		$	24,130,854
LIABILITIES:
Mortgages and other indebtedness		$	14,133,592		$	(191,379	)		$	13,942,213			$	3,433,708		$	17,375,921
Accounts payable, accrued expenses, intangibles, and deferred revenues		976,823			(7,639		)		969,184				181,054			1,150,238
Cash distributions and losses in partnerships and joint ventures, at equity		224,984			—				224,984				(224,984		)	—
Other liabilities, minority interest and accrued dividends		176,278			(26,051		)		150,227				50,278			200,505
Total liabilities		15,511,677			(225,069		)		15,286,608				3,440,056			18,726,664
LIMITED PARTNERS’ INTEREST IN THE OPERATING PARTNERSHIP		833,363			—				833,363				—			833,363
LIMITED PARTNERS’ PREFERRED INTEREST IN THE OPERATING PARTNERSHIP		400,516			—				400,516				—			400,516
STOCKHOLDERS’ EQUITY:
CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock):
All series of preferred stock, 100,000,000 shares authorized, 25,420,042 issued and outstanding, with a liquidation value of $1,071,002		1,069,388			—				1,069,388				—			1,069,388
Common stock, $.0001 par value, 400,000,000 shares authorized, 225,536,979 issued and outstanding		23			—				23				—			23
Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding		—			—				—				—			—
Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding		—			—				—				—			—
Capital in excess of par value		4,975,936			—				4,975,936				—			4,975,936
Accumulated deficit		(1,699,813		)	—				(1,699,813		)		—			(1,699,813		)
Accumulated other comprehensive income		18,453			—				18,453				—			18,453
Common stock held in treasury at cost, 4,379,245 shares		(193,676		)	—				(193,676		)		—			(193,676		)
Total stockholders’ equity		4,170,311			—				4,170,311				—			4,170,311
		$	20,915,867		$	(225,069	)		$	20,690,798			$	3,440,056		$	24,130,854

13

SIMON PROPERTY GROUP
Reconciliation of Net Income to NOI
As of June 30, 2006
(in thousands, except as noted)

Industry practice is to evaluate real estate properties on an unleveraged basis. NOI is a standard industry performance measure which is defined as operating income plus depreciation and amortization, both calculated in accordance with accounting principles generally accepted in the United States (“GAAP”). We consider NOI to be a key measure of our operating performance that is not specifically defined by GAAP. We believe that NOI is helpful to investors because it is a widely recognized measure of the performance of REITs and provides a relevant basis for comparison among REITs. We also use NOI internally to measure the operating performance of our portfolio.

However, you should understand that NOI:

·does not represent cash flow from operations as defined by GAAP,

·should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance,

·is not an alternative to cash flows as a measure of liquidity, and

·is not indicative of cash flows from operating, investing and financing activities.

The Reconciliation of Net Income to NOI provides net income, which we believe is the most directly comparable GAAP financial measure, and reconciles the amounts to “Total NOI of the Simon Group Portfolio.”  This schedule also provides the increase in NOI of regional malls that are comparable properties for the quarter and six months ended June 30, 2006.

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2006				2005				2006				2005
Reconciliation of NOI of consolidated Properties:
Net Income		$	101,263			$	173,218			$	223,853			$	248,682
Preferred distributions of the Operating Partnership		6,928				7,350				13,754				14,274
Limited partners’ interest in the Operating Partnership		21,920				42,018				49,508				57,681
Discontinued operations—Results of operations and (gain) loss on disposal or sale, net		23				(119,942		)		(140		)		(123,195		)
Income tax expense of taxable REIT subsidiaries		3,220				2,734				4,859				7,420
Minority interest		3,433				2,253				4,358				5,560
Interest expense		200,743				197,782				404,815				392,986
Income from unconsolidated entities		(19,882		)		(14,456		)		(49,805		)		(32,383		)
(Gain) loss on sales of interest in unconsolidated entities		(7,599		)		(2,134		)		(41,949		)		(12,607		)
Operating Income		310,049				288,823				609,253				558,418
Depreciation and amortization		211,363				204,494				420,810				414,792
NOI of consolidated Properties		$	521,412			$	493,317			$	1,030,063			$	973,210
Reconciliation of NOI of unconsolidated entities:
Net Income		$	101,650			$	79,647			$	183,436			$	248,808
Discontinued operations—Results of operations and (gain) loss on disposal or sale, net		(21,326		)		(180		)		(21,206		)		(98,497		)
Interest expense		110,082				98,314				217,628				194,724
Income from unconsolidated entities		(145		)		637				(239		)		1,892
Gain on sale of asset		(94		)		—				(94		)		—
Operating Income		190,167				178,418				379,525				346,927
Depreciation and amortization		83,147				84,015				159,119				159,490
NOI of unconsolidated entities		$	273,314			$	262,433			$	538,644			$	506,417
Total consolidated and unconsolidated NOI from continuing operations		$	794,726			$	755,750			$	1,568,707			$	1,479,627
Adjustments to NOI:
NOI of discontinued consolidated and unconsolidated Properties		244				8,304				1,341				19,253
Total NOI of the Simon Group Portfolio		$	794,970			$	764,054			$	1,570,048			$	1,498,880
Increase in NOI from prior period		4.0		%		20.1		%		4.7		%		19.7		%
Less: Joint venture partner’s share of NOI		164,228				158,911				321,105				306,128
Simon Group’s Share of NOI		$	630,742			$	605,143			$	1,248,943			$	1,192,752
Increase in Simon Group’s Share of NOI from prior period		4.2		%		26.4		%		4.7		%		27.0		%
NOI of Regional Malls that are Comparable Properties(1)		$	606,385			$	589,265			$	1,210,965			$	1,158,958
Increase in NOI of Regional Malls that are Comparable Properties(1)		2.9		%						4.5		%

(1)Properties that were owned in both of the periods under comparison are referred to as comparable properties.

14

SIMON PROPERTY GROUP
NOI Composition(1)
For the Six Months Ended June 30, 2006

U.S. Portfolio NOI by Geographic
Diversification(2)

NOI by Asset Type(3)

(1)	Based on Total NOI of the Simon Group portfolio.
(2)	U.S. regions:
	Northeast—PA, NY, VT, NH, ME, MA, NJ, CT and RI	West North Central—ND, SD, NE, KS, MN, IA and MO
	Mideast—KY, WV, MD, DE, VA, NC and SC	East North Central—WI, MI, OH, IN and IL
	Southeast—TN, MS, AL, GA, FL and Puerto Rico	Mountain—NV, AZ, NM, UT, CO, ID, MT and WY
	Southwest—TX, OK, LA and AR	Pacific—CA, OR, WA and HI
(3)	International includes five Premium Outlet centers in Japan.

15

SIMON PROPERTY GROUP
Analysis of Other Income and Other Expense
As of June 30, 2006
(In thousands)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2006		2005		2006		2005
Consolidated Properties
Other Income
Interest Income	$	6,133	$	4,664	$	12,330	$	8,974
Lease Settlement Income	4,076		4,206		12,152		6,031
Gains on Land Sales	16,279		8,219		19,228		15,828
Simon Brand Ventures/Simon Business Network Revenues(1)	16,468		17,344		33,390		32,877
Other	8,483		5,581		16,637		11,865
Totals	$	51,439	$	40,014	$	93,737	$	75,575
Other Expense
Ground Rent	$	6,817	$	6,354	$	14,513	$	12,476
Professional Fees	2,848		2,489		4,412		4,979
Simon Brand Ventures/Simon Business Network Expenses	739		635		1,453		1,322
Other	1,758		1,626		4,850		3,148
Totals	$	12,162	$	11,104	$	25,228	$	21,925

(1)Additional Simon Brand Ventures and Simon Business Network revenues are recorded in minimum rent.

16

SIMON PROPERTY GROUP

U.S. Portfolio GLA

As of June 30, 2006

		Total	% of
Type of Property	GLA-Sq. Ft.	Owned GLA	Owned GLA
Regional Malls
Anchor	101,418,374	28,310,548		23.8	%
Specialty Store	58,961,795	58,752,828		49.3	%
Freestanding	4,340,110	2,140,753		1.8	%
Subtotal	63,301,905	60,893,581		51.1	%
Regional Mall Total	164,720,279	89,204,129		74.9	%
Premium Outlet
Centers	13,083,793	13,083,793		11.0	%
Community/Lifestyle Centers
Anchor	13,338,852	8,194,537		6.9	%
Specialty Store	4,854,156	4,803,988		4.0	%
Freestanding	919,720	436,540		0.4	%
Community/Lifestyle
Centers Total	19,112,728	13,435,065		11.3	%
Office Portion of Retail	1,776,685	1,776,685		1.5	%
Other(1)	1,591,670	1,591,670		1.3	%
Total U.S. Properties	200,285,155	119,091,342		100.0	%

(1) Other assets include 10 other properties that contribute 0.2% of Simon Group’s NOI.

17

SIMON PROPERTY GROUP

U.S. Regional Mall Operational Information

As of June 30, 2006

	As of or for the
	Six Months Ended
	June 30,
	2006			2005
Total Number of Regional Malls		171		172
Total Regional Mall GLA (in millions of square feet; includes office portion of retail)		166.5		166.7
Occupancy(1)
Consolidated Assets		91.3	%	92.3	%
Unconsolidated Assets		92.1	%	92.0	%
Total Portfolio		91.6	%	92.2	%
Comparable sales per square foot(2)
Consolidated Assets		$454		$427
Unconsolidated Assets		$495		$474
Total Portfolio		$468		$442
Average rent per square foot(1)
Consolidated Assets		$34.64		$33.53
Unconsolidated Assets		$35.93		$35.31
Total Portfolio		$35.10		$34.16

Average Base Rent Per Square Foot(1)	Mall & Freestanding Stores		% Change
6/30/06		$35.10		2.8	%
6/30/05		34.16
12/31/05		34.49		3.0	%
12/31/04		33.50		3.8	%
12/31/03		32.26		5.1	%
12/31/02		30.70		4.8	%
12/31/01		29.28		3.4	%

Leasing Activity During the Period(1):

	Average Base Rent(3)				Amount of Change
	Lease		Store Closings/		(Referred to as
	Signings		Lease Expirations		“Leasing Spread”)
2006 (YTD)		$44.03		$35.87		$8.16	22.7	%
2005		43.18		35.78		7.40	20.7	%
2004		39.33		33.59		5.74	17.1	%
2003		41.28		32.99		8.29	25.1	%
2002		40.35		32.58		7.77	23.8	%
2001		34.88		29.10		5.78	19.9	%

(1)Includes mall and freestanding stores

(2)Based upon the standard definition of sales for regional malls adopted by the International Council of Shopping Centers which includes only mall and freestanding stores less than 10,000 square feet.

(3)Represents the average base rent in effect during the period for those tenants who signed leases as compared to the average base rent in effect during the period for those tenants whose leases terminated or expired.

18

SIMON PROPERTY GROUP
U.S. Regional Mall Lease Expirations(1)
As of June 30, 2006

Year	Number of Leases Expiring		Square Feet	Avg. Base Rent per Square Foot at 6/30/06
Mall Stores & Freestanding
Month to Month Leases		655	1,652,759		$	32.85
2006 (7/1-12/31)		717	1,273,304		$	34.78
2007		2,497	6,283,390		$	34.89
2008		2,102	5,637,673		$	36.63
2009		1,893	5,385,765		$	34.53
2010		1,871	5,443,761		$	37.06
2011		1,741	4,831,184		$	35.05
2012		1,215	4,172,488		$	35.90
2013		1,140	3,674,666		$	39.59
2014		1,219	3,644,792		$	41.02
2015		1,215	4,000,286		$	41.49
2016		969	3,333,526		$	36.49
2017 and Thereafter		252	2,402,049		$	26.14
Specialty Leasing Agreements w/ terms in excess of 12 months		1,097	2,875,092		$	13.85
Anchor Tenants
Month to Month Leases		2	85,836		$	3.15
2006 (7/1-12/31)		1	105,450		$	6.60
2007		15	1,501,143		$	2.27
2008		25	2,873,752		$	3.78
2009		31	3,279,500		$	3.40
2010		35	4,092,491		$	2.83
2011		21	2,372,206		$	3.89
2012		18	2,005,298		$	5.07
2013		11	1,800,847		$	6.35
2014		13	1,207,089		$	7.58
2015		11	1,007,256		$	6.82
2016		10	1,075,834		$	6.53
2017 and Thereafter		41	4,683,334		$	4.90

(1)Does not consider the impact of options to renew that may be contained in leases.

19

SIMON PROPERTY GROUP
U.S. Regional Mall Top Tenants
As of June 30, 2006

Top 10 In-Line Retail Tenants (sorted by percentage of total Simon Group base minimum rent)

Tenant	Number of Stores		Square Feet (000’s)		Percent of Total Simon Group Sq. Ft.			Percent of Total Simon Group Base Min. Rent
Limited		515		3,289		1.6	%		3.9	%
Gap		327		3,538		1.8	%		2.7	%
Foot Locker		422		1,712		0.9	%		2.0	%
Zale Corporation		392		444		0.2	%		1.6	%
Luxottica Group S.P.A		508		891		0.4	%		1.5	%
Abercrombie & Fitch Co.		179		1,286		0.6	%		1.5	%
Sterling Jewelers, Inc.		203		293		0.1	%		1.0	%
Children’s Place Retail Stores		182		805		0.4	%		1.0	%
American Eagle Outfitters		131		725		0.4	%		0.9	%
Genesco, Inc.		327		422		0.2	%		0.8	%

Top 10 Anchors (sorted by percentage of total Simon Group square footage)(1)

Tenant	Number of Stores		Square Feet (000’s)	Percent of Total Simon Group Sq. Ft.			Percent of Total Simon Group Base Min. Rent
Federated Department Stores		177	31,134		15.5	%		0.7	%
Sears Roebuck & Co.		128	19,598		9.8	%		0.4	%
J.C. Penney Co., Inc.		117	17,012		8.5	%		0.9	%
Dillard’s Dept. Stores		79	11,914		5.9	%		0.1	%
Nordstrom, Inc.		21	3,722		1.9	%		0.0	%
Saks Incorporated		20	2,300		1.1	%		0.7	%
Belk, Inc.		18	2,214		1.1	%		0.1	%
The Bon-Ton Stores, Inc.		21	2,058		1.0	%		0.2	%
Target Corporation		13	1,624		0.8	%		0.0	%
The Neiman Marcus Group, Inc..		8	1,053		0.5	%		0.1	%

(1)Includes space leased and owned by the anchor.

20

SIMON PROPERTY GROUP
U.S. Regional Mall Anchor/Big Box Openings
2006-2010

Property Name		Location		New Tenant		Former Tenant
Openings through June 30, 2006
Cielo Vista Mall	El Paso, TX		Cinemark Theater		N/A
Copley Place	Boston, MA		Barneys New York		Lowes Theatre
Mall at The Source, The	Westbury, NY		Golf Galaxy		N/A
Mall of Georgia	Mill Creek, GA		Belk		Lord & Taylor
Melbourne Square	Melbourne, FL		Dick’s Sporting Goods		Belk
			Circuit City		Belk
Muncie Mall	Muncie, IN		Books-A-Million		N/A
Openings Projected for the Remainder of 2006
College Mall	Bloomington, IN		Bed Bath & Beyond		Target (relocated)
Crossroads Mall	Omaha, NE		Target		Younkers
Fashion Valley Mall	San Diego, CA		Bloomingdale’s		Robinsons-May
Firewheel Town Center	Garland, TX		Ethan Allen		N/A
			Cost Plus World Market		N/A
Galleria, The	Houston, TX		Borders, Del Frisco,		Lord & Taylor
			Kona Grill & Oceanaire
Lehigh Valley Mall	Whitehall, PA		Boscov’s		Strawbridge’s
Liberty Tree Mall	Danvers, MA		K&G Menswear		N/A
Mall at Chestnut Hill	Chestnut Hill, MA		Bloomingdale’s		Filene’s
Menlo Park Mall	Edison, NJ		Steve & Barry’s		N/A
Montgomery Mall	Montgomeryville, PA		Boscov’s		Strawbridge’s
Oxford Valley Mall	Langhorne, PA		Boscov’s		Strawbridge’s
Penn Square	Oklahoma City, OK		Cheesecake Factory		N/A
Ross Park Mall	Pittsburgh, PA		Cheesecake Factory		N/A
Smith Haven Mall	Lake Grove, NY		Cheesecake Factory		Sterns
South Hills Village	Pittsburgh, PA		Boscov’s		Kaufmann’s
SouthPark	Charlotte, NC		Neiman Marcus		N/A
Town Center at Aurora	Aurora, CO		Dillard’s		Foley’s (relocated)
Town Center at Boca Raton	Boca Raton, FL		Grand Lux		N/A
Washington Square	Indianapolis, IN		Steve & Barry’s		N/A
Valle Vista Mall	Harlingen, TX		Steve & Barry’s		N/A

21

SIMON PROPERTY GROUP
U.S. Regional Mall Anchor/Big Box Openings
2006-2010

Property Name		Location		New Tenant		Former Tenant
Openings Projected in 2007
Aventura Mall	Miami Beach, FL		Nordstrom		Lord & Taylor
Boynton Beach Mall	Boynton Beach, FL		Muvico Theater		Macy’s
Burlington Mall	Burlington, MA		Crate & Barrel		N/A
Lake Square Mall	Leesburg, FL		Best Buy		N/A
Lakeline Mall	Cedar Park (Austin), TX		Dillard’s		Mervyn’s
Lehigh Valley Mall	Whitehall, PA		Barnes & Noble		N/A
			Bonefish Grill		N/A
			Bravo		N/A
Lenox Square	Atlanta, GA		Neiman Marcus expansion and small shop addition		N/A
Livingston Mall	Livingston, NJ		Barnes & Noble		N/A
Northgate Mall	Seattle, WA		Barnes & Noble		N/A
Orange Park Mall	Jacksonville, FL		Dick’s Sporting Goods		N/A
Plaza Carolina	San Juan, PR		Office Depot		Casa Febus
Smith Haven Mall	Lake Grove, NY		Barnes & Noble		Stern’s
			Dick’s Sporting Goods		Stern’s
			Macy’s Furniture		Stern’s
Springfield Mall	Springfield, PA		Target		Macy’s
Square One Mall	Saugus, MA		Dick’s Sporting Goods		N/A
Westminster Mall	Westminster, CA		Target		Macy’s
Openings Projected in 2008
Burlington Mall	Burlington (Boston), MA		Nordstrom		Filene’s
Ross Park Mall	Pittsburgh, PA		Nordstrom		Macy’s
Tacoma Mall	Seattle, WA		Nordstrom (relocated)		Mervyn’s
Openings Projected in 2009
South Shore Plaza	Braintree (Boston), MA		Nordstrom		Macy’s
Openings Projected in 2010
Northshore Mall	Peabody (Boston), MA		Nordstrom		Macy’s

22

SIMON PROPERTY GROUP

U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
1.	McCain Mall			AR	N. Little Rock		100.0	%	554,156		221,721		775,877
2.	University Mall			AR	Little Rock		100.0	%	364,992		153,547		518,539
3.	Brea Mall			CA	Brea (Orange County)		100.0	%	874,802		443,935		1,318,737
4.	Coddingtown Mall			CA	Santa Rosa		50.0	%	547,090		310,557		857,647
5.	Fashion Valley Mall			CA	San Diego		50.0	%	1,053,305		654,730		1,708,035
6.	Laguna Hills Mall			CA	Laguna Hills (Orange County)		100.0	%	536,500		330,649		867,149
7.	Santa Rosa Plaza			CA	Santa Rosa		100.0	%	428,258		270,553		698,811
8.	Shops at Mission Viejo, The			CA	Mission Viejo (Orange County)		100.0	%	677,215		472,557		1,149,772
9.	Stanford Shopping Center			CA	Palo Alto (San Francisco)		100.0	%	849,153		528,933	(6)	1,378,086
10.	Westminster Mall			CA	Westminster (Orange County)		100.0	%	716,939		500,845		1,217,784
11.	Mesa Mall (1)			CO	Grand Junction		50.0	%	441,208		443,015		884,223
12.	Town Center at Aurora			CO	Aurora (Denver)		100.0	%	496,637		398,867		895,504
13.	Crystal Mall			CT	Waterford (New London-Norwich)		74.6	%	442,311		351,837		794,148
14.	Aventura Mall (1)			FL	Miami Beach		33.3	%	1,257,638		662,558		1,920,196
15.	Avenues, The			FL	Jacksonville		25.0	%(2)	754,956		361,278		1,116,234
16.	Boynton Beach Mall			FL	Boynton Beach (W. Palm Beach)		100.0	%	714,210		301,445		1,015,655
17.	Coral Square			FL	Coral Springs (Miami-Ft. Lauderdale)		97.2	%	648,144		296,731		944,875
18.	Cordova Mall			FL	Pensacola		100.0	%	395,875		464,911		860,786
19.	Crystal River Mall			FL	Crystal River		100.0	%	302,495		121,835		424,330
20.	Dadeland Mall			FL	N. Miami Beach		50.0	%	1,132,072		335,599		1,467,671
21.	DeSoto Square			FL	Bradenton (Sarasota-Bradenton)		100.0	%	435,467		243,834		679,301
22.	Edison Mall			FL	Fort Myers		100.0	%	742,667		296,298		1,038,965
23.	Florida Mall, The			FL	Orlando		50.0	%	1,232,416		617,048		1,849,464
24.	Gulf View Square			FL	Port Richey (Tampa-St. Pete)		100.0	%	461,852		291,966		753,818
25.	Indian River Mall			FL	Vero Beach		50.0	%	445,552		302,747		748,299
26.	Lake Square Mall			FL	Leesburg (Orlando)		50.0	%	296,037		264,974		561,011
27.	Melbourne Square			FL	Melbourne		100.0	%	416,167		294,724		710,891
28.	Miami International Mall			FL	South Miami		47.8	%	778,784		294,098		1,072,882
29.	Orange Park Mall			FL	Orange Park (Jacksonville)		100.0	%	528,551		388,833		917,384
30.	Paddock Mall			FL	Ocala		100.0	%	387,378		166,824		554,202
31.	Palm Beach Mall			FL	West Palm Beach		100.0	%	749,288		335,039		1,084,327
32.	Port Charlotte Town Center			FL	Port Charlotte (Punta Gorda)		80.0	%(3)	458,251		324,026		782,277
33.	Seminole Towne Center			FL	Sanford (Orlando)		45.0	%(2)	768,798		368,032		1,136,830
34.	Shops at Sunset Place, The			FL	Miami		37.5	%(2)	0		507,287		507,287
35.	St. Johns Town Center			FL	Jacksonville		50.0	%	653,291		379,212		1,032,503
36.	Town Center at Boca Raton			FL	Boca Raton (W. Palm Beach)		100.0	%	1,085,312		493,487		1,578,799
37.	Treasure Coast Square			FL	Jensen Beach (Ft. Pierce)		100.0	%	511,372		349,232		860,604
38.	Tyrone Square			FL	St. Petersburg (Tampa-St. Pete)		100.0	%	748,269		368,953		1,117,222
39.	University Mall			FL	Pensacola		100.0	%	478,449		230,716		709,165
40.	Gwinnett Place			GA	Duluth (Atlanta)		50.0	%	843,609		434,299		1,277,908
41.	Lenox Square			GA	Atlanta		100.0	%	821,356		653,361	(6)	1,474,717
42.	Mall of Georgia			GA	Mill Creek (Atlanta)		50.0	%	1,069,590		716,084		1,785,674
43.	Northlake Mall			GA	Atlanta		100.0	%	665,745		296,773		962,518

23

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
44.	Phipps Plaza			GA	Atlanta		100.0	%	472,385		347,202		819,587
45.	Town Center at Cobb			GA	Kennesaw (Atlanta)		50.0	%	866,381		405,850		1,272,231
46.	Lindale Mall (1)			IA	Cedar Rapids		50.0	%	305,563		388,024		693,587
47.	NorthPark Mall			IA	Davenport		50.0	%	651,533		423,318		1,074,851
48.	Southern Hills Mall (1)			IA	Sioux City		50.0	%	372,937		431,909		804,846
49.	SouthRidge Mall (1)			IA	Des Moines		50.0	%	388,752		523,443		912,195
50.	Alton Square			IL	Alton (St. Louis)		100.0	%	426,315		213,662		639,977
51.	Lincolnwood Town Center			IL	Lincolnwood (Chicago)		100.0	%	220,830		200,963		421,793
52.	Northfield Square Mall			IL	Bourbonnais (Chicago)		31.6	%(3)	310,994		246,579		557,573
53.	Northwoods Mall			IL	Peoria		100.0	%	472,969		221,303		694,272
54.	Orland Square			IL	Orland Park (Chicago)		100.0	%	773,295		437,029		1,210,324
55.	River Oaks Center			IL	Calumet City (Chicago)		100.0	%	834,588		545,238	(6)	1,379,826
56.	SouthPark Mall			IL	Moline (Davenport - Moline)		50.0	%	578,056		447,795		1,025,851
57.	White Oaks Mall			IL	Springfield		77.5	%	556,831		379,673		936,504
58.	Castleton Square			IN	Indianapolis		100.0	%	1,105,913		353,234		1,459,147
59.	Circle Centre			IN	Indianapolis		14.7	%	350,000		432,747	(6)	782,747
60.	College Mall			IN	Bloomington		100.0	%	356,887		286,190		643,077
61.	Eastland Mall			IN	Evansville		50.0	%	489,144		375,407		864,551
62.	Fashion Mall at Keystone			IN	Indianapolis		100.0	%	249,721		433,583	(6)	683,304
63.	Greenwood Park Mall			IN	Greenwood (Indianapolis)		100.0	%	909,928		415,135		1,325,063
64.	Lafayette Square			IN	Indianapolis		100.0	%	937,223		269,532		1,206,755
65.	Markland Mall			IN	Kokomo		100.0	%	273,094		147,170		420,264
66.	Muncie Mall			IN	Muncie		100.0	%	435,756		205,974		641,730
67.	Tippecanoe Mall			IN	Lafayette		100.0	%	537,790		322,694		860,484
68.	University Park Mall			IN	Mishawaka (South Bend)		60.0	%	622,508		319,880		942,388
69.	Washington Square			IN	Indianapolis		100.0	%	616,109		351,342		967,451
70.	Towne East Square			KS	Wichita		100.0	%	779,490		389,725		1,169,215
71.	Towne West Square			KS	Wichita		100.0	%	619,269		332,335		951,604
72.	West Ridge Mall			KS	Topeka		100.0	%	716,811		300,814		1,017,625
73.	Prien Lake Mall			LA	Lake Charles		100.0	%	644,124		176,140		820,264
74.	Arsenal Mall			MA	Watertown (Boston)		100.0	%	191,395		310,130	(6)	501,525
75.	Atrium Mall			MA	Chestnut Hill (Boston)		49.1	%	0		205,751		205,751
76.	Auburn Mall			MA	Auburn (Boston)		49.1	%	417,620		174,201		591,821
77.	Burlington Mall			MA	Burlington (Boston)		100.0	%	836,236		423,324		1,259,560
78.	Cape Cod Mall			MA	Hyannis (Barnstable - Yarmouth)		49.1	%	420,199		303,599		723,798
79.	Copley Place			MA	Boston		98.1	%	104,332		1,124,479	(6)	1,228,811
80.	Emerald Square			MA	North Attleboro (Providence - Fall River)		49.1	%	647,372		375,056		1,022,428
81.	Greendale Mall			MA	Worcester (Boston)		49.1	%	132,634		298,691	(6)	431,325
82.	Liberty Tree Mall			MA	Danvers (Boston)		49.1	%	498,000		359,246		857,246
83.	Mall at Chestnut Hill			MA	Newton (Boston)		47.2	%	297,253		181,037		478,290
84.	Northshore Mall			MA	Peabody (Boston)		49.1	%	979,755		688,696		1,668,451
85.	Solomon Pond Mall			MA	Marlborough (Boston)		49.1	%	538,843		371,347		910,190
86.	South Shore Plaza			MA	Braintree (Boston)		100.0	%	847,603		613,627		1,461,230
87.	Square One Mall			MA	Saugus (Boston)		49.1	%	540,101		324,705		864,806
88.	Bowie Town Center			MD	Bowie (Washington, D.C.)		100.0	%	355,557		328,670		684,227
89.	St. Charles Towne Center			MD	Waldorf (Washington, D.C.)		100.0	%	631,602		350,563		982,165
90.	Bangor Mall			ME	Bangor		66.4	%(5)	416,582		236,860		653,442

24

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
91.	Maplewood Mall			MN	Minneapolis		100.0	%	588,822		341,183		930,005
92.	Miller Hill Mall			MN	Duluth		100.0	%	429,508		379,854		809,362
93.	Battlefield Mall			MO	Springfield		100.0	%	770,111		421,647		1,191,758
94.	Independence Center			MO	Independence (Kansas City)		100.0	%	499,284		524,280		1,023,564
95.	SouthPark			NC	Charlotte		100.0	%	964,742		484,042		1,448,784
96.	Crossroads Mall			NE	Omaha		100.0	%	522,119		232,760		754,879
97.	Mall at Rockingham Park, The			NH	Salem (Boston)		24.6	%	638,111		382,057		1,020,168
98.	Mall of New Hampshire			NH	Manchester (Boston)		49.1	%	444,889		363,114		808,003
99.	Pheasant Lane Mall			NH	Nashua (Boston)		(4)		675,759		313,534		989,293
100.	Brunswick Square			NJ	East Brunswick (New York)		100.0	%	467,626		301,087		768,713
101.	Livingston Mall			NJ	Livingston (New York)		100.0	%	616,128		363,796		979,924
102.	Menlo Park Mall			NJ	Edison (New York)		100.0	%	527,591		757,490	(6)	1,285,081
103.	Ocean County Mall			NJ	Toms River (New York)		100.0	%	616,443		274,990		891,433
104.	Quaker Bridge Mall			NJ	Lawrenceville		38.0	%(5)	686,760		412,615		1,099,375
105.	Rockaway Townsquare			NJ	Rockaway (New York)		100.0	%	786,626		461,872		1,248,498
106.	Cottonwood Mall			NM	Albuquerque		100.0	%	631,556		410,187		1,041,743
107.	Forum Shops at Caesars, The			NV	Las Vegas		100.0	%	0		635,028		635,028
108.	Chautauqua Mall			NY	Lakewood (Jamestown)		100.0	%	213,320		218,218		431,538
109.	Jefferson Valley Mall			NY	Yorktown Heights (New York)		100.0	%	310,095		275,133		585,228
110.	Mall at The Source, The			NY	Westbury (New York)		25.5	%(2)	210,798		515,082		725,880
111.	Nanuet Mall			NY	Nanuet (New York)		100.0	%	583,711		333,167		916,878
112.	Roosevelt Field			NY	Garden City (New York)		100.0	%	1,430,425		778,792	(6)	2,209,217
113.	Smith Haven Mall			NY	Lake Grove (New York)		25.0	%	666,283		411,447		1,077,730
114.	Walt Whitman Mall			NY	Huntington Station (New York)		100.0	%	742,214		291,967		1,034,181
115.	Westchester, The			NY	White Plains (New York)		40.0	%	349,393		478,302	(6)	827,695
116.	Great Lakes Mall			OH	Mentor (Cleveland)		100.0	%	879,300		378,564		1,257,864
117.	Lima Mall			OH	Lima		100.0	%	541,861		204,099		745,960
118.	Richmond Town Square			OH	Richmond Heights (Cleveland)		100.0	%	685,251		331,543		1,016,794
119.	Southern Park Mall			OH	Boardman (Youngstown)		100.0	%	811,858		383,510		1,195,368
120.	Summit Mall			OH	Akron		100.0	%	432,936		331,052		763,988
121.	Upper Valley Mall			OH	Springfield (Dayton - Springfield)		100.0	%	479,418		262,923		742,341
122.	Penn Square Mall			OK	Oklahoma City		94.5	%	588,137		451,888		1,040,025
123.	Woodland Hills Mall			OK	Tulsa		94.5	%	706,159		382,649		1,088,808
124.	Century III Mall			PA	West Mifflin (Pittsburgh)		100.0	%	831,439		458,992	(6)	1,290,431
125.	Granite Run Mall			PA	Media (Philadelphia)		50.0	%	500,809		545,775		1,046,584
126.	King of Prussia Mall			PA	King of Prussia (Philadelphia)		12.4	%(5)	1,545,812		1,064,654	(6)	2,610,466
127.	Lehigh Valley Mall			PA	Whitehall (Allentown - Bethlehem)		37.6	%(5)	564,353		482,597	(6)	1,046,950
128.	Montgomery Mall			PA	Montgomeryville (Philadelphia)		53.5	%(5)	684,855		435,312		1,120,167
129.	Oxford Valley Mall			PA	Langhorne (Philadelphia)		63.2	%(5)	762,558		557,747	(6)	1,320,305
130.	Ross Park Mall			PA	Pittsburgh		100.0	%	827,015		406,334		1,233,349

25

SIMON PROPERTY GROUP

U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
131.	South Hills Village			PA	Pittsburgh		100.0	%	655,987		486,488		1,142,475
132.	Springfield Mall (1)			PA	Springfield (Philadelphia)		38.0	%(5)	367,176		221,484		588,660
133.	Plaza Carolina			PR	Carolina (San Juan)		100.0	%	504,796		609,316	(6)	1,114,112
134.	Anderson Mall			SC	Anderson (Greenville)		100.0	%	404,394		230,219		634,613
135.	Haywood Mall			SC	Greenville		100.0	%	902,400		328,193		1,230,593
136.	Empire Mall (1)			SD	Sioux Falls		50.0	%	497,341		547,673		1,045,014
137.	Rushmore Mall (1)			SD	Rapid City		50.0	%	470,660		362,653		833,313
138.	Knoxville Center			TN	Knoxville		100.0	%	597,028		384,064		981,092
139.	Oak Court Mall			TN	Memphis		100.0	%	532,817		314,022	(6)	846,839
140.	Raleigh Springs Mall			TN	Memphis		100.0	%	691,230		226,091		917,321
141.	West Town Mall			TN	Knoxville		50.0	%	878,311		451,871		1,330,182
142.	Wolfchase Galleria			TN	Memphis		94.5	%	761,648		505,641		1,267,289
143.	Barton Creek Square			TX	Austin		100.0	%	922,266		508,066		1,430,332
144.	Broadway Square			TX	Tyler		100.0	%	427,730		200,709		628,439
145.	Cielo Vista Mall			TX	El Paso		100.0	%	793,716		445,504		1,239,220
146.	Firewheel Town Center			TX	Garland		100.0	%	298,857		482,599	(6)	781,456
147.	Galleria, The			TX	Houston		31.5	%	1,164,982		1,092,325		2,257,307
148.	Highland Mall (1)			TX	Austin		50.0	%	732,000		359,108		1,091,108
149.	Ingram Park Mall			TX	San Antonio		100.0	%	751,704		375,428		1,127,132
150.	Irving Mall			TX	Irving (Dallas-Ft. Worth)		100.0	%	637,415		406,163		1,043,578
151.	La Plaza Mall			TX	McAllen		100.0	%	776,397		426,905		1,203,302
152.	Lakeline Mall			TX	Austin		100.0	%	745,179		357,590		1,102,769
153.	Longview Mall			TX	Longview		100.0	%	402,843		209,493		612,336
154.	Midland Park Mall			TX	Midland		100.0	%	339,113		279,496		618,609
155.	North East Mall			TX	Hurst (Dallas-Ft. Worth)		100.0	%	1,194,589		448,027		1,642,616
156.	Richardson Square Mall			TX	Richardson (Dallas-Ft. Worth)		100.0	%	460,055		284,318		744,373
157.	Rolling Oaks Mall			TX	San Antonio		100.0	%	596,984		285,940		882,924
158.	Sunland Park Mall			TX	El Paso		100.0	%	575,837		342,299		918,136
159.	Valle Vista Mall			TX	Harlingen		100.0	%	389,781		265,737		655,518
160.	Trolley Square			UT	Salt Lake City		90.0	%	0		225,057		225,057
161.	Apple Blossom Mall			VA	Winchester		49.1	%	229,011		213,468		442,479
162.	Charlottesville Fashion Square			VA	Charlottesville		100.0	%	381,153		190,733		571,886
163.	Chesapeake Square			VA	Chesapeake (Norfolk- VA Beach)		75.0	%(3)	534,760		272,150		806,910
164.	Fashion Centre at Pentagon City, The			VA	Arlington (Washington, DC)		42.5	%	472,729		517,240	(6)	989,969
165.	Valley Mall			VA	Harrisonburg		50.0	%	315,078		190,639		505,717
166.	Virginia Center Commons			VA	Glen Allen (Richmond)		100.0	%	506,639		281,117		787,756
167.	Columbia Center			WA	Kennewick		100.0	%	408,052		332,283		740,335
168.	Northgate Mall			WA	Seattle		100.0	%	688,391		292,582		980,973
169.	Tacoma Mall			WA	Tacoma		100.0	%	924,045		406,610		1,330,655
170.	Bay Park Square			WI	Green Bay		100.0	%	447,508		268,153		715,661
171.	Forest Mall			WI	Fond Du Lac		100.0	%	327,260		174,031		501,291
	Total Regional Mall GLA								101,418,374		65,078,590		166,496,964

26

FOOTNOTES:

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

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

(3)The Operating Partnership receives substantially all the economic benefit of the Property due to a preference, advance, or other partnership arrangement.

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

(5)The Operating Partnership’s indirect ownership interest is through an approximately 76% ownership interest in Kravco Simon Investments or an affiliate of Kravco Simon Investments.

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

Arsenal Mall—105,807 sq. ft.Century III Mall—35,909 sq. ft.Circle Centre Mall—9,123 sq. ft.Copley Place—853,468 sq. ft.Fashion Centre at Pentagon City, The—169,089 sq. ft.Fashion Mall at Keystone, The—10,927 sq. ft.Firewheel Town Center—4,148 sq. ft.Greendale Mall—119,860 sq. ft.King of Prussia Mall—13,696 sq. ft.Lehigh Valley Mall—11,754 sq. ft.Lenox Square—2,674 sq. ft.Menlo Park Mall—50,615 sq. ft.Oak Court Mall—126,228 sq. ft.Oxford Valley Mall—108,794 sq. ft.Plaza Carolina—28,104 sq. ft.River Oaks Center—118,311 sq. ft.Roosevelt Field—1,610 sq. ft.Stanford Shopping Center—5,748 sq. ft.The Westchester—820 sq. ft.

27

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Operational Information
As of June 30, 2006

	As of or for the
	Six Months Ended
	June 30,
	2006			2005
Total Number of U.S. Premium Outlet Centers	34			32
Total U.S. Premium Outlet Centers GLA (in millions of square feet)	13.1			12.1
Occupancy(1)	99.4		%	99.2		%
Comparable sales per square foot(1)	$	453		$	426
Average base rent per square foot(1)	$	23.78		$	22.83

	Total		%
Average Base Rent Per Square Foot(1)	Center		Change
6/30/06	$	23.78		4.2	%
6/30/05	22.83
12/31/05	23.16			6.0	%
12/31/04	21.85			7.3	%
12/31/03	20.36			n/a

Leasing Activity During the Period(1):

	Average Base Rent(2)						Amount of Change
	Lease			Store Closings/			(Referred to as
	Signings			Lease Expirations			“Leasing Spread”)
2006 (YTD)		$	28.53		$	22.25	$	6.28	28.2%
2005		26.48			21.91		4.57		20.9%
2004		22.78			20.02		2.76		13.8%
2003		25.41			22.62		2.79		12.3%

(1)For all owned gross leasable area.

(2)Represents the average base rent for tenants who signed leases compared to the average base rent in effect for tenants whose leases terminated or expired in the same space.

28

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Lease Expirations(1)
As of June 30, 2006

Year	Number of Leases Expiring		Square Feet	Weighted Avg. Base Rent per Square Foot at 6/30/06
2006 (7/1-12/31)		134	392,005		$	20.81
2007		381	1,400,134		$	21.19
2008		426	1,723,503		$	23.93
2009		406	1,699,380		$	22.31
2010		518	2,286,393		$	23.61
2011		370	1,641,592		$	22.32
2012		218	911,226		$	26.57
2013		217	935,018		$	25.75
2014		190	608,749		$	30.70
2015		195	658,746		$	30.70
2016 and Thereafter		185	684,914		$	29.46

(1)Does not consider the impact of options to renew that may be contained in leases.

29

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Top Tenants
As of June 30, 2006

(Sorted by percentage of total Simon Group base minimum rent)

Tenant	Number of Stores		Square Feet (000’s)		Percent of Total Simon Group Sq. Ft.			Percent of Total Simon Group Base Min. Rent
Phillips—Van Heusen Corporation		158		754		0.4	%		0.7	%
Jones Retail Corporation		144		490		0.2	%		0.5	%
Adidas Promotional Retail Operations, Inc.		50		412		0.2	%		0.4	%
The Gap, Inc.		66		591		0.3	%		0.4	%
Nike Retail Services, Inc.		42		414		0.2	%		0.3	%
The William Carter Company, Inc.		62		304		0.2	%		0.3	%
Brown Group Retail, Inc.		63		270		0.1	%		0.3	%
LCI Holdings, Inc.		54		390		0.2	%		0.3	%
VF Outlet		56		353		0.2	%		0.2	%
Tommy Hilfiger Retail Operations, Inc.		35		219		0.1	%		0.2	%

30

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Property Listing

									Total
									Gross
						Legal			Leasable
		Property Name	State		City (Metropolitan area)	Ownership			Area
1.	Camarillo Premium Outlets			CA	Camarillo (Los Angeles)		100.0	%	454,089
2.	Carlsbad Premium Outlets			CA	Carlsbad		100.0	%	287,936
3.	Desert Hills Premium Outlets			CA	Cabazon (Palm Springs-Los Angeles)		100.0	%	498,537
4.	Folsom Premium Outlets			CA	Folsom (Sacramento)		100.0	%	299,351
5.	Gilroy Premium Outlets			CA	Gilroy (San Jose)		100.0	%	577,305
6.	Napa Premium Outlets			CA	Napa (Napa Valley)		100.0	%	179,348
7.	Petaluma Village Premium Outlets			CA	Petaluma (San Francisco)		100.0	%	195,837
8.	Vacaville Premium Outlets			CA	Vacaville		100.0	%	444,212
9.	Clinton Crossing Premium Outlets			CT	Clinton (Hartford)		100.0	%	276,163
10.	Orlando Premium Outlets			FL	Orlando		100.0	%	435,813
11.	St. Augustine Premium Outlets			FL	St. Augustine (Jacksonsville)		100.0	%	329,003
12.	North Georgia Premium Outlets			GA	Dawsonville (Atlanta)		100.0	%	539,757
13.	Waikele Premium Outlets			HI	Waipahu (Honolulu)		100.0	%	209,846
14.	Chicago Premium Outlets			IL	Aurora (Chicago)		100.0	%	437,800
15.	Edinburgh Premium Outlets			IN	Edinburgh (Indianapolis)		100.0	%	371,117
16.	Lighthouse Place Premium Outlets			IN	Michigan City (Chicago)		100.0	%	456,745
17.	Wrentham Village Premium Outlets			MA	Wrentham (Boston)		100.0	%	615,713
18.	Kittery Premium Outlets			ME	Kittery (Boston)		100.0	%	150,564
19.	Albertville Premium Outlets			MN	Albertville (Minneapolis/St. Paul)		100.0	%	429,534
20.	Osage Beach Premium Outlets			MO	Osage Beach		100.0	%	391,381
21.	Carolina Premium Outlets			NC	Smithfield (Raleigh-Durham- Chapel Hill)		100.0	%	439,398
22.	Liberty Village Premium Outlets			NJ	Flemington (New York- Philadelphia)		100.0	%	173,045
23.	Jackson Premium Outlets			NJ	Jackson		100.0	%	285,617
24.	Las Vegas Outlet Center			NV	Las Vegas		100.0	%	477,002
25.	Las Vegas Premium Outlets			NV	Las Vegas		100.0	%	434,978
26.	Waterloo Premium Outlets			NY	Waterloo		100.0	%	417,519
27.	Woodbury Common Premium Outlets			NY	Central Valley (New York City)		100.0	%	844,463
28.	Aurora Farms Premium Outlets			OH	Aurora (Cleveland)		100.0	%	300,181
29.	Columbia Gorge Premium Outlets			OR	Troutdale (Portland-Vancouver)		100.0	%	163,815
30.	The Crossings Premium Outlets			PA	Tannersville		100.0	%	411,391
31.	Allen Premium Outlets			TX	Allen (Dallas)		100.0	%	412,792
32.	Leesburg Corner Premium Outlets			VA	Leesburg (Washington DC)		100.0	%	463,288
33.	Seattle Premium Outlets			WA	Seattle		100.0	%	402,668
34.	Johnson Creek Premium Outlets			WI	Johnson Creek		100.0	%	277,585
	Total U.S. Premium Outlet Centers GLA								13,083,793

31

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Operational Information
As of June 30, 2006

	As of or for the
	Six Months Ended
	June 30,
	2006			2005
Total Number of Community/Lifestyle Centers	70			71
Total Community/Lifestyle Center GLA (in millions of square feet)	19.1			18.8
Occupancy(1)
Consolidated Assets	86.9		%	89.3		%
Unconsolidated Assets	96.2		%	96.1		%
Total Portfolio	89.7		%	91.5		%
Comparable sales per square foot(1)
Consolidated Assets	$	226		$	224
Unconsolidated Assets	$	203		$	203
Total Portfolio	$	218		$	218
Average rent per square foot(1)
Consolidated Assets	$	11.92		$	11.44
Unconsolidated Assets	$	11.08		$	10.51
Total Portfolio	$	11.65		$	11.13

Average Base Rent Per Square Foot(1)

	Total		%
	Center		Change
6/30/06	$	11.65		4.7	%
6/30/05	11.13
12/31/05	11.41			4.6	%
12/31/04	10.91			3.0	%
12/31/03	10.59			4.6	%
12/31/02	10.12			3.0	%
12/31/01	9.83			5.0	%

Leasing Activity During the Period(1):

	Average Base Rent(2)						Amount of Change
	Lease Signings			Store Closings/ Lease Expirations			(Referred to as “Leasing Spread”)
2006 (YTD)		$	18.03		$	10.12	$	7.91	78.2	%
2005		15.89			11.44		4.45		38.9	%
2004		12.01			11.16		0.85		7.6	%
2003		12.38			10.48		1.90		18.1	%
2002		10.19			8.39		1.80		21.5	%
2001		12.79			9.30		3.49		37.5	%

(1)For all owned gross leasable area.

(2)Represents the average base rent in effect during the period for those tenants who signed leases as compared to the average base rent in effect during the period for those tenants whose leases terminated or expired.

32

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Lease Expirations(1)
As of June 30, 2006

				Avg. Base Rent
	Number of		Square	per Square Foot
Year	Leases Expiring		Feet	at 6/30/06
Mall Stores & Freestanding
Month to Month Leases		44	106,344		$	15.32
2006 (7/1-12/31)		95	182,030		$	15.21
2007		178	662,525		$	13.62
2008		202	764,789		$	14.09
2009		159	543,503		$	14.43
2010		213	884,893		$	16.65
2011		142	602,488		$	15.90
2012		34	155,615		$	16.36
2013		18	109,222		$	14.05
2014		31	198,060		$	18.01
2015		56	299,094		$	19.26
2016		18	76,327		$	22.59
2017 and Thereafter		12	97,553		$	16.87
Specialty Leasing Agreements w/ terms in excess of 12 months		4	8,794		$	13.84
Anchor Tenants
Month to Month Leases		2	57,254		$	8.41
2006 (7/1-12/31)		3	60,483		$	6.76
2007		13	415,611		$	6.71
2008		16	415,757		$	9.95
2009		24	806,459		$	7.60
2010		22	694,612		$	12.23
2011		19	810,928		$	6.99
2012		8	350,244		$	8.87
2013		13	393,741		$	7.43
2014		11	438,088		$	9.32
2015		18	635,271		$	11.14
2016		16	602,692		$	9.52
2017 and Thereafter		35	1,729,015		$	10.06
Specialty Leasing Agreements w/ terms in excess of 12 months		4	102,158		$	1.98

(1) Does not consider the impact of options to renew that may be contained in leases.

33

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Top Tenants
As of June 30, 2006

(Sorted by percentage of total Simon Group square footage)(1)

					Percent of			Percent of
	Number		Square		Total			Total Simon
	of		Feet		Simon Group			Group Base
Tenant	Stores		(000’s)		Sq. Ft.			Min. Rent
Target Corporation		11		1,382		0.7	%		0.0	%
Wal-Mart Stores, Inc.		9		1,009		0.5	%		0.0	%
Kohl’s Department Stores, Inc.		10		913		0.5	%		0.2	%
Best Buy Company, Inc.		18		738		0.4	%		0.3	%
TJX Companies, Inc.		21		644		0.3	%		0.2	%
Burlington Coat Factory		7		496		0.2	%		0.1	%
Bed Bath & Beyond, Inc.		12		371		0.2	%		0.1	%
Office Max, Inc.		13		336		0.2	%		0.1	%
Dick’s Sporting Goods, Inc.		5		311		0.2	%		0.1	%
Kmart Corporation		3		298		0.1	%		0.1	%

(1)Includes space leased and owned by the anchor.

34

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Property Listing

												Gross Leasable Area
								Legal						Mall &
		Property Name	State		City (Metropolitan area)		Ownership				Anchor		Freestanding			Total
1.	Plaza at Buckland Hills, The			CT		Manchester			35.0	%(2)		252,179			82,834		335,013
2.	Gaitway Plaza			FL		Ocala			23.3	%(2)		123,027			85,713		208,740
3.	Highland Lakes Center			FL		Orlando			100.0	%		352,405			140,862		493,267
4.	Indian River Commons			FL		Vero Beach			50.0	%		233,358			27,510		260,868
5.	Royal Eagle Plaza			FL		Coral Springs			35.0	%(2)		124,479			77,624		202,103
						(Miami-Ft. Lauderale)
6.	Terrace at the Florida Mall			FL		Orlando			100.0	%		281,252			47,531		328,783
7.	Waterford Lakes Town Center			FL		Orlando			100.0	%		622,244			329,443		951,687
8.	West Town Corners			FL		Altamonte Springs			23.3	%(2)		263,782			121,455		385,237
9.	Westland Park Plaza			FL		Orange Park			23.3	%(2)		123,548			39,606		163,154
10.	Mall of Georgia Crossing			GA		Mill Creek (Atlanta)			100.0	%		341,503			99,109		440,612
11.	Bloomingdale Court			IL		Bloomingdale			100.0	%		467,513			162,836		630,349
12.	Countryside Plaza			IL		Countryside			100.0	%		308,489			95,268		403,757
13.	Crystal Court			IL		Crystal Lake			35.0	%(2)		201,993			79,737		281,730
14.	Forest Plaza			IL		Rockford			100.0	%		324,794			100,587		425,381
15.	Lake Plaza			IL		Waukegan			100.0	%		170,789			44,673		215,462
16.	Lake View Plaza			IL		Orland Park (Chicago)			100.0	%		261,856			109,396		371,252
17.	Lincoln Crossing			IL		O’Fallon			100.0	%		229,820			13,446		243,266
18.	Matteson Plaza			IL		Matteson			100.0	%		230,885			40,070		270,955
19.	North Ridge Plaza			IL		Joliet			100.0	%		190,323			114,747		305,070
20.	White Oaks Plaza			IL		Springfield			100.0	%		275,703			115,723		391,426
21.	Willow Knolls Court			IL		Peoria			35.0	%(2)		309,440			72,937		382,377
22.	Brightwood Plaza			IN		Indianapolis			100.0	%		0			38,493		38,493
23.	Clay Terrace			IN		Carmel (Indianapolis)			50.0	%		161,281			336,411		497,692
24.	Eastland Convenience Center			IN		Evansville			50.0	%		126,699			48,940		175,639
25.	Greenwood Plus			IN		Greenwood			100.0	%		134,141			21,178		155,319
26.	Griffith Park Plaza			IN		Griffith			100.0	%		175,595			88,455		264,050
27.	Keystone Shoppes			IN		Indianapolis			100.0	%		0			29,140		29,140
28.	Markland Plaza			IN		Kokomo			100.0	%		49,051			41,476		90,527
29.	Muncie Plaza			IN		Muncie			100.0	%		271,626			27,195		298,821
30.	New Castle Plaza			IN		New Castle			100.0	%		24,912			66,736		91,648
31.	Northwood Plaza			IN		Fort Wayne			100.0	%		136,404			71,841		208,245
32.	Teal Plaza			IN		Lafayette			100.0	%		98,337			2,750		101,087
33.	Tippecanoe Plaza			IN		Lafayette			100.0	%		85,811			4,711		90,522
34.	University Center			IN		Mishawaka			60.0	%		98,264			46,177		144,441
35.	Village Park Plaza			IN		Carmel (Indianapolis)			35.0	%(2)		414,593			130,173		544,766
36.	Wabash Village(4)			IN		West Lafayette			100.0	%		109,388			15,068		124,456
37.	Washington Plaza			IN		Indianapolis			100.0	%		21,500			28,607		50,107
38.	West Ridge Plaza			KS		Topeka			100.0	%		182,161			59,226		241,387
39.	Park Plaza			KY		Hopkinsville			100.0	%		82,398			32,626		115,024
40.	St. Charles Towne Plaza			MD		Waldorf (Washington, D.C.)			100.0	%		286,081			117,906		403,987
41.	Regency Plaza			MO		St. Charles			100.0	%		210,627			76,846		287,473
42.	Ridgewood Court			MS		Jackson			35.0	%(2)		185,939			54,732		240,671
43.	Dare Centre			NC		Kill Devil Hills			100.0	%		127,172			41,391		168,563
44.	MacGregor Village			NC		Cary			100.0	%		0			143,514		143,514
45.	North Ridge Shopping Center			NC		Raleigh			100.0	%		43,247			122,772		166,019
46.	Rockaway Convenience Center			NJ		Rockaway (New York)			100.0	%		44,518			104,393		148,911
47.	Rockaway Town Plaza			NJ		Rockaway (New York)			100.0	%		407,303			51,316		458,619
48.	Cobblestone Court			NY		Victor			35.0	%(2)		206,680			58,819		265,499

35

										Gross Leasable Area
		Property Name	State		City (Metropolitan area)		Legal Ownership			Anchor	Mall & Freestanding		Total
49.	Boardman Plaza			OH		Youngstown		100.0	%	365,507		240,431	605,938
50.	Great Lakes Plaza			OH		Mentor (Cleveland)		100.0	%	142,229		21,875	164,104
51.	Lima Center			OH		Lima		100.0	%	189,584		47,294	236,878
52.	Northland Plaza			OH		Columbus		100.0	%	118,304		91,230	209,534
53.	Eastland Plaza			OK		Tulsa		100.0	%	152,451		33,623	186,074
54.	DeKalb Plaza			PA		King of Prussia		50.3	%(3)	81,368		20,345	101,713
55.	Henderson Square			PA		King of Prussia		76.0	%(3)	72,683		34,661	107,344
56.	Lincoln Plaza			PA		King of Prussia		63.2	%(3)	143,649		123,582	267,231
57.	Whitehall Mall			PA		Whitehall		38.0	%(3)	444,916		143,168	588,084
58.	Charles Towne Square			SC		Charleston		100.0	%	71,794		0	71,794
59.	Empire East(1)			SD		Sioux Falls		50.0	%	248,181		48,580	296,761
60.	Knoxville Commons			TN		Knoxville		100.0	%	91,483		88,980	180,463
61.	Arboretum at Great Hills			TX		Austin		100.0	%	35,773		169,293	205,066
62.	Celina Plaza			TX		El Paso		100.0	%	0		8,695	8,695
63.	Gateway Shopping Centers			TX		Austin		95.0	%	396,494		115,825	512,319
64.	Ingram Plaza			TX		San Antonio		100.0	%	0		111,518	111,518
65.	Lakeline Plaza			TX		Austin		100.0	%	307,966		79,497	387,463
66.	Shops at North East Mall, The			TX		Hurst		100.0	%	265,595		99,148	364,743
67.	Wolf Ranch			TX		Georgetown (Austin)		100.0	%	395,071		219,128	614,199
68.	Chesapeake Center			VA		Chesapeake		100.0	%	213,651		92,284	305,935
69.	Fairfax Court			VA		Fairfax		26.3	%(2)	169,043		80,615	249,658
70.	Martinsville Plaza			VA		Martinsville		100.0	%	60,000		42,105	102,105
	Total Community/Lifestyle Center GLA									13,338,852		5,773,876	19,112,728

FOOTNOTES:

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

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

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

(4)    Asset was sold on July 27, 2006.

36

SIMON PROPERTY GROUP
International Operational Information(1)
As of June 30, 2006

	As of or for the Six Months Ended June 30,
	2006			2005
International Premium Outlets (Japan)
Total Number of Premium Outlets	5			5
Total GLA (in millions of square feet)	1.4			1.3
Occupancy	100		%	100		%
Comparable sales per square foot	JPY 88,752			JPY 85,621
Average base rent per square foot	JPY 4,645			JPY 4,509
European Shopping Centers
Total Number of Shopping Centers	52			51
Total GLA (in millions of square feet)	11.8			11.1
Occupancy	97.1		%	97.9		%
Comparable sales per square foot	€	378		€	368
Average rent per square foot	€	26.01		€	25.78

(1)Does not include Premium Outlets Punta Norte in Mexico.

37

SIMON PROPERTY GROUP
International Property Listing

			SPG			Gross Leasable Area(1)
			Effective			Hypermarket/		Mall &
	Property Name	City (Metropolitan area)	Ownership(5)			Anchor(4)		Freestanding		Total
	FRANCE
1.	Bay 2	Torcy (Paris)		50.0	%		132,400		408,900	541,300
2.	Bay 1	Torcy (Paris)		50.0	%		—		336,300	336,300
3.	Bel’Est	Bagnolet (Paris)		17.5	%		150,700		63,000	213,700
4.	Villabé A6	Villabé (Paris)		7.5	%		102,300		104,500	206,800
	Subtotal France						385,400		912,700	1,298,100
	ITALY
	Ancona:
5.	Ancona	Ancona		49.0	%(3)		82,900		82,300	165,200
6.	Senigallia	Senigallia (Ancona)		49.0	%		41,200		41,600	82,800
	Ascoli Piceno:
7.	Grottammare	Grottammare (Ascoli Piceno)		49.0	%		38,900		55,900	94,800
8.	Porto Sant’Elpidio	Porto Sant’Elpidio (Ascoli Piceno)		49.0	%		48,000		114,300	162,300
	Bari:
9.	Casamassima	Casamassima (Bari)		49.0	%		159,000		388,800	547,800
10.	Modugno (5)	Modugno (Bari)		49.0	%		96,900		46,600	143,500
	Bergamo:
11.	Bergamo	Bergamo		49.0	%(3)		103,000		16,900	119,900
	Brescia:
12.	Concesio	Concesio (Brescia)		49.0	%(3)		89,900		27,600	117,500
13.	Mazzano	Mazzano (Brescia)		49.0	%(2)		103,300		127,400	230,700
	Brindisi:
14.	Mesagne	Mesagne (Brindisi)		49.0	%		88,000		140,600	228,600
	Cagliari:
15.	Marconi	Marconi (Cagliari)		49.0	%(3)		83,500		109,900	193,400
16.	Santa Gilla	Santa Gilla (Cagliari)		49.0	%(2)		75,900		114,800	190,700
	Catania:
17.	La Rena	La Rena (Catania)		49.0	%		124,100		22,100	146,200
18.	Misterbianco	Misterbianco (Catania)		49.0	%(3)		83,300		16,000	99,300
	Lecco:
19.	Merate	Merate (Lecco)		49.0	%(3)		73,500		88,500	162,000
	Milan (Milano):
20.	Cesano Boscone	Cescano Boscone (Milano)		49.0	%(3)		163,800		120,100	283,900
21.	Nerviano	Nerviano (Milano)		49.0	%(3)		83,800		27,800	111,600
22.	Rescaldina	Rescaldina (Milano)		49.0	%		165,100		212,000	377,100
23.	Vimodrone	Vimodrone (Milano)		49.0	%		110,400		80,200	190,600
	Naples (Napoli):
24.	Giugliano	Giugliano (Napoli)		19.6	%		130,000		618,300	748,300
25.	Mugnano di Napoli	Mugnano (Napoli)		49.0	%(3)		98,000		94,900	192,900
26.	Pompei	Pompei (Napoli)		49.0	%		74,300		17,100	91,400
	Olbia:
27.	Olbia	Olbia		49.0	%(3)		49,000		48,800	97,800
	Padova:
28.	Padova	Padova		49.0	%		73,300		32,500	105,800

38

				SPG			Gross Leasable Area(1)
				Effective			Hypermarket/		Mall &
	Property Name	City (Metropolitan area)		Ownership(5)			Anchor(4)		Freestanding		Total
	Palermo:
29.	Palermo		Palermo		49.0	%		73,100		9,800	82,900
	Pesaro:
30.	Fano		Fano (Pesaro)		49.0	%		56,300		56,000	112,300
	Pescara:
31.	Cepagatti		Cepagatti (Pescara)		49.0	%		80,200		189,600	269,800
32.	Pescara		Pescara		49.0	%		96,300		65,200	161,500
	Piacenza:
33.	San Rocco al Porto		San Rocco al Porto (Piacenza)		49.0	%		104,500		74,700	179,200
	Rome (Roma):
34.	Casalbertone		Roma		49.0	%(3)		62,700		84,900	147,600
35.	Collatina		Collatina (Roma)		49.0	%		59,500		4,100	63,600
	Sassari:
36.	Centro Azuni		Sassari		49.0	%(3)		—		35,600	35,600
37.	Predda Niedda		Predda Niedda (Sassari)		49.0	%(2)		79,500		154,200	233,700
	Taranto:
38.	Taranto		Taranto		49.0	%		75,200		126,500	201,700
	Turin (Torino):
39.	Cuneo		Cuneo (Torino)		49.0	%		80,700		201,500	282,200
40.	Rivoli		Rivoli (Torino)		49.0	%(3)		61,800		32,300	94,100
41.	Torino		Torino		49.0	%		105,100		66,700	171,800
42.	Venaria		Venaria (Torino)		49.0	%		101,600		64,000	165,600
	Venice (Venezia):
43.	Venezia—Mestre		Mestre (Venezia)		49.0	%		114,100		132,600	246,700
	Verona:
44.	Bussolengo		Bussolengo (Verona)		49.0	%(3)		89,300		75,300	164,600
	Vicenza:
45.	Vicenza		Vicenza		49.0	%		78,400		20,100	98,500
	Subtotal Italy							3,557,400		4,038,100	7,595,500
	POLAND
46.	Arkadia Shopping Center		Warsaw		50.0	%		202,100		902,200	1,104,300
47.	Borek Shopping Center		Wroclaw		50.0	%		119,900		129,300	249,200
48.	Dabrowka Shopping Center		Katowice		50.0	%		121,000		172,900	293,900
49.	Turzyn Shopping Center		Szczecin		50.0	%		87,200		121,900	209,100
50.	Wilenska Station Shopping Center		Warsaw		50.0	%		92,700		215,900	308,600
51.	Zakopianka Shopping Center		Krakow		50.0	%		120,200		425,400	545,600
	Subtotal Poland							743,100		1,967,600	2,710,700
	PORTUGAL
52.	Minho Center		Braga (Porto)		50.0	%(3)		120,000		101,600	221,600
								120,000		101,600	221,600
	JAPAN
53.	Gotemba Premium Outlets		Gotemba City (Tokyo)		40.0	%		—		390,000	390,000
54.	Rinku Premium Outlets		Izumisano (Osaka)		40.0	%		—		321,000	321,000
55.	Sano Premium Outlets		Sano (Tokyo)		40.0	%		—		318,000	318,000
56.	Toki Premium Outlets		Toki (Nagoya)		40.0	%		—		178,000	178,000
57.	Tosu Premium Outlets		Fukuoka (Kyushu)		40.0	%		—		187,000	187,000
	Subtotal Japan							—		1,394,000	1,394,000

39

SIMON PROPERTY GROUP
International Property Listing

			SPG			Gross Leasable Area(1)
			Effective			Hypermarket/		Mall &
	Property Name	City (Metropolitan area)	Ownership(5)			Anchor(4)		Freestanding		Total
	MEXICO
58.	Premium Outlets Punta Norte	Mexico City		50.0	%		—		232,000	232,000
	Subtotal Mexico						—		232,000	232,000
	TOTAL INTERNATIONAL ASSETS						4,805,900		8,646,000	13,451,900

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.

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

(5) We own our interest in the assets in France, Portugal and Poland through our shareholdings in Simon Ivanhoe BV/SARL. Our interest in the Italian assets is owned through Galleria Commerciali Italia S.p.A., while our interest in the assets in Japan is owned through Chelsea Japan Co., Ltd. We own our interest in Mexico through Fideicomiso Trust No. F/315-5.

40

SIMON PROPERTY GROUP
Capital Expenditures in the U.S. Portfolio
For the Six Months Ended June 30, 2006
(In thousands)

				Unconsolidated Entities
							Simon
	Consolidated						Group’s
	Properties			Total			Share
New development projects(1)		$	155,905	$	144,252		$	69,656
Redevelopment projects with incremental
GLA and/or Anchor Replacement		45,370		28,892			9,004
Renovations with no incremental GLA		18,299		5,547			1,901
Tenant allowances:
Retail		21,497		27,771			9,791
Office portion of retail		494		—			—
Operational capital expenditures at properties:
CAM expenditures(2)		21,196		5,065			2,172
Non-CAM expenditures		3,465		9,901			3,916
Totals		$	266,226	$	221,428		$	96,440
Plus (Less): Conversion from accrual to cash basis		10,186		(25,576		)
Capital expenditures(3)		$	276,412	$	195,852

(1) Includes $22.8 million relating to Simon’s new headquarters.

(2) Expenditure included in the pool of expenses allocated to tenants as common area maintenance or CAM.

(3)Agrees with the line item “Capital expenditures” on the Combined Statements of Cash Flows for the consolidated properties. No statement of cash flows is prepared for the joint venture properties as this is not required by the SEC or GAAP; however, the above reconciliation was completed in the same manner as the reconciliation for the consolidated properties.

41

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of June 30, 2006

															Construction-in-Progress
																	Unconsolidated Entities
Property/Location	Project Description	The Company’s Ownership Percentage			Projected Opening	Projected Gross Cost (1) (in millions)		Projected Net Cost (in millions)		The Company’s Share of Net Cost		Stabilized Rate of Return			Consolidated Properties		Total	The Company’s Share
New Development Projects:
Coconut Point Estero/Bonita Springs, FL	1.2 million square foot open-air shopping complex with a village component anchored by Dillard’s, Muvico Theatres, and Barnes & Noble and a community center component anchored by Bed Bath & Beyond, Best Buy, Cost Plus World Market, DSW, Office Max, Old Navy, Party City, PetsMart, Pier One Imports, Ross Dress for Less, Sports Authority, T.J. Maxx, Ulta Cosmetics; includes 30,000 sf of office space. Contains separate residential component.		50	%	4/06 (Comm Ctr) 11/06 (All other)		$296		$225		$112		10	%		—	$ 189.5		$  94.7
Domain, The Austin, TX	700,000 square foot open-air town center anchored by Neiman Marcus and Macy’s and includes 75,000 sf of office space. Contains separate residential component.		100	%	3/07		$245		$195		$195		10	%		$  115.6	—		—
Rio Grande Valley Premium Outlets Mercedes, TX	404,000 square foot upscale outlet center		100	%	11/06		$ 68		$ 59		$ 59		13	%		$    34.7	—		—
Round Rock Premium Outlets Round Rock (Austin), TX	433,000 square foot upscale outlet center with complimentary uses on adjacent outparcels		100	%	8/06		$126		$106		$106		13	%		$    86.7	—		—
Shops at Arbor Walk, The Austin, TX	460,000 square foot community center anchored by Home Depot, Marshall’s, DSW, Golf Galaxy and JoAnn Fabrics		100	%	11/06 (Phase I) 3/07 (Phase II)		$ 60		$ 52		$ 52		9	%		$    28.3	—		—
Village at SouthPark, The Charlotte, NC	Street-level retail project comprised of 48,000 square feet of small shops along with a 33,000 square foot Crate & Barrel. Contains separate residential component.		100	%	11/06 (Crate & Barrel) 3/07 (Other retail)		$ 33		$ 26		$ 26		11	%		$      7.9	—		—
Significant Redevelopment Projects with Incremental GLA
Las Vegas Premium Outlets Las Vegas, NV	104,000 square foot phase II of upscale outlet center		100	%	12/07		$ 56		$ 53		$ 53		12	%		$      1.1	—		—
Lehigh Valley Mall Whitehall, PA	Addition of a lifestyle component consisting of Barnes & Noble, Pottery Barn, Williams-Sonoma, Bonefish Grill and Bravo; includes renovation and addition of outlots		38	%	8/07		$ 43		$ 42		$ 16		9	%		—	$     0.9		$    0.3
Lenox Square Atlanta, GA	Neiman Marcus expansion; addition of second level of small shops and renovation of the atrium area		100	%	10/07		$ 52		$ 46		$ 46		8	%		$    11.0	—		—
Northgate Mall Seattle, WA	Addition of Barnes & Noble, Panera Bread, Macaroni Grill, Starbucks and Gene Juarez Spa in a lifestyle component; creation of two outparcels		100	%	4/07		$ 49		$ 44		$ 44		8	%		$      3.9	—		—
Smith Haven Mall Lake Grove (New York), NY	Mall renovation and addition of lifestyle component consisting of Dick’s Sporting Goods, Barnes & Noble, Cheesecake Factory and small shops; addition of Macy’s Furniture		25	%	11/06 (renovation, Cheesecake & Shops) 6/07 (all other)		$ 72		$ 65		$ 16		10	%		—	$   21.3		$    5.3
St. Johns Town Center - Phase II Jacksonville, FL	180,000 square foot upscale expansion		50	%	9/07		$ 64		$ 61		$ 30		11	%		—	$     5.8		$    2.9
Other Redevelopment Projects with Incremental GLA
Battlefield Mall Springfield, MO	Lifestyle addition (phase II)		100	%	11/06
Columbia Center Kennewick, WA	Lifestyle addition		100	%	11/07
Livingston Mall Livingston, NJ	Addition of Barnes & Noble, expansion of Modell’s and food court addition		100	%	10/07
Tyrone Square St. Petersburg, FL	Lifestyle addition		100	%	10/07
	Subtotal Other Redevelopment Projects with Incremental GLA						$ 46		$ 46		$ 46		8	%		$      4.3	—		—

42

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of June 30, 2006

Construction-in-Progress

The Company’s

Projected

Projected

The Company’s

Stabilized

Unconsolidated Entities

Ownership

Projected

Gross Cost (1)

Net Cost

Share of

Rate of

Consolidated

The Company’s

Property/ Location

Project Description

Percentage

Opening

(in millions)

(in millions)

Net Cost

Return

Properties

Total

Share

Renovations

Aventura Mall Miami Beach, FL

Mall renovation

33

%

1/07

Battlefield Mall Springfield, MO

Mall renovation

100

%

11/06

Edison Mall Ft. Myers, FL

Mall renovation

100

%

1/07

Mall at Chestnut Hill Newton (Boston), MA

Mall renovation

47

%

11/06

Orange Park Mall Orange Park (Jacksonville), FL

Mall renovation and addition of Dick’s Sporting Goods

100

%

3/07

	Subtotal Renovations				$	61	$	57	$	41	8	%	$	7.9	$	8.2	$	2.8
Anchor/Big Box/Theater Activity
Boynton Beach Mall Boynton Beach, FL	Addition of Muvico Theater	100	%	9/07
College Mall Bloomington, IN	Addition of Bed, Bath & Beyond	100	%	11/06
Crossroads Mall Omaha, NE	Addition of Target	100	%	7/06
Galleria, The Houston, TX	Addition of Borders, Del Frisco, Kona Grill, Oceanaire and small shops in former Lord & Taylor space	32	%	9/06
Penn Square Mall Oklahoma City, OK	Addition of The Cheesecake Factory	95	%	11/06
Ross Park Mall Pittsburgh, PA	Addition of The Cheesecake Factory	100	%	11/06
SouthPark Charlotte, NC	Addition of Neiman Marcus and small shops	100	%	9/06
Square One Mall Saugus (Boston), MA	Addition of Dick’s Sporting Goods	49	%	5/07
Town Center at Boca Raton Boca Raton, FL	Addition of Grand Lux	100	%	11/06
Valie Vista Mall Harlingen, TX	Addition of Steve & Barry’s	100	%	11/06
	Subtotal Anchor/Big Box/Theater Activity				$	118	$	107	$81		6	%	$	36.2	$	27.1	$	10.2

43

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of June 30, 2006

															Construction-in-Progress
		The Company’s				Projected		Projected		The Company’s		Stabilized						Unconsolidated Entities
		Ownership			Projected	Gross Cost (1)		Net Cost		Share of		Rate of			Consolidated					The Company’s
Property/ Location	Project Description	Percentage			Opening	(in millions)		(in millions)		Net Cost		Return			Properties			Total		Share
Asset Intensification
Firewheel Town Center Garland, TX	Residential		50	%	7/07
The Domain Austin, TX	Residential		50	%	3/07
Village at South Park, The Charlotte, NC	Residential		40	%	5/07
	Subtotal Asset Intensification						$130		$122		$56		9	%		—		$	40.1		$	18.1
Other
Simon Corporate Headquarters																$	52.7	—			—
Miscellaneous																$	25.0	$	3.6		$	1.6
	Subtotal Other															$	77.7	$	3.6		$	1.6
Total Construction in Progress(2)																$	415.3	$	296.5		$	135.9
Land Held for Development																$	146.4	$	348.3		$	141.4

*Cost and return are based upon current budget assumptions.  Actual results may vary.

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

(2)Does not include the Company's international properties.

44

SIMON PROPERTY GROUP
International Development Activity Report*
Project Overview, Construction-in-Progress
As of June 30, 2006

			The Company’s
			Ownership				Projected
Shopping center/		Anchors/	Percentage				Net Cost*
Location (Metropolitan area)	Project Description	Major Tenants	of Project			Opening	(in millions)
New Development Projects:
Argine—Napoli, Italy	300,000 square foot center anchored by a hypermarket with approximately 75 shops	Auchan		24.0	%	Winter 2007	€	55
Cinisello—Milano, Italy	400,000 square foot center anchored by a hypermarket with approximately 100 shops	Auchan		49.0	%	Summer 2007	€	127
Gliwice—Gliwice, Poland	400,000 square foot center anchored by a hypermarket and do-it-yourself center	Carrefour, Leroy Merlin		50.0	%	Fall 2006	€	25
Nola—Napoli, Italy	1.0 million square foot center including a hypermarket and department store	Auchan, Coin, Holiday Inn, Media World		22.1	%	Summer 2007	€	155
Porta di Roma—Roma, Italy	1.3 million square foot center including a hypermarket, department store and do-it-yourself centers	Auchan, Leroy Merlin, UGC Theatres, Ikea (opened 6/05), Media World, Decathlon		19.6	%	Summer 2007	€	224
Wasquehal—Wasquehal, France (Lille)	200,000 square foot expansion of existing Carrefour anchored hypermarket (1)	Carrefour		50.0	%	Fall 2006	€	18
Yeoju Premium Outlets—Yeoju, South Korea	253,000 square foot Phase I upscale outlet center			50.0	%	Spring 2007	KRW   78,680
Redevelopment Projects with Incremental GLA:
Toki Premium Outlets—Nagoya, Japan	53,000 square foot phase II expansion of  upscale outlet center	Wacoal, Neostyle Keiji Itakura, Vans, Quicksilver, LAUNDRY, Billabong, Champion, Clark, Harrods, Issey Miyake, Kookai, Labrador Retriever, Paule KA		40.0	%	10/06	JPY       1,770
Other projects (1 leasehold development, 1 leasehold extension)							€	1

*Cost is based upon current budget assumptions. Actual results may vary.

(1)Owner of existing gallery did not elect to participate in the expansion. Simon Ivanhoe BV/SARL (“Simon Ivanhoe”), the Company’s joint venture which owns shopping centers in France and Poland, will fund 100% of the costs of the expansion, which is a new development for Simon Ivanhoe.

45

SIMON PROPERTY GROUP
The Company’s Share of Total Debt Amortization and Maturities by Year
As of June 30, 2006
(In thousands)

Year	The Company’s Share of Secured Consolidated Debt			The Company’s Share of Unsecured Consolidated Debt				The Company’s Share of Unconsolidated Joint Venture Debt				The Company’s Share of Total Debt
2006		31,686			250,000				66,898				348,584
2007		618,867			1,055,000				208,489				1,882,356
2008		580,312			350,000				320,051				1,250,363
2009		741,112			900,000				189,538				1,830,650
2010		704,750			1,100,000				645,074				2,449,824
2011		440,015			2,095,113				474,391				3,009,519
2012		359,233			850,000				217,686				1,426,919
2013		199,751			425,000				245,762				870,513
2014		399,254			700,000				175,058				1,274,312
2015		1,697			1,200,000				431,916				1,633,613
2016		1,686			650,000				459,935				1,111,621
Thereafter		23,832			200,000				250				224,082
Face Amounts of Indebtedness		$	4,102,195		$	9,775,113			$	3,435,048			$	17,312,356
Premiums (Discounts) on Indebtedness, Net		44,085			37,064				(1,340		)		79,809
Fair Value of Interest Rate Swaps Agreements		—			(16,244		)		—				(16,244		)
The Company’s Share of Total Indebtedness		$	4,146,280		$	9,795,933			$	3,433,708			$	17,375,921

Debt Covenant Compliance Ratios

Senior Unsecured Notes Covenant(1)	Required		Actual			Compliance
Total Debt to Total Assets		<65%		46.1	%		Yes
Total Secured Debt to Total Assets		<50%		20.1	%		Yes
Fixed Charge Coverage Ratio		>1.50X		2.6	X		Yes
Total Unencumbered Assets to Unsecured Debt		>125%		226	%		Yes

(1)Covenants for indentures dated June 7, 2005 and later. Covenants and other provisions of prior supplemental indentures apply to all unsecured debt for as long as any securities issued under prior supplemental indentures remain outstanding or until the covenants in the prior supplemental indentures have been amended. For a complete listing of all debt covenants related to the Company’s senior unsecured notes, as well as definitions of the above terms, please refer to Simon Property Group, L.P. filings with the Securities and Exchange Commission.

46

SIMON PROPERTY GROUP
Summary of Indebtedness
As of June 30, 2006
(In thousands)

					The Company’s				Weighted			Weighted
	Total				Share of				Average			Average Years
	Indebtedness				Indebtedness				Interest Rate			to Maturity
Consolidated Indebtedness
Mortgage Debt
Fixed Rate		$	3,932,663			$	3,753,279			6.44	%		4.4
Floating Rate Debt (Hedged)(1)		96,643				96,643				6.25	%		2.9
Floating Rate Debt		262,446				252,273				6.04	%		2.9
Total Mortgage Debt		4,291,752				4,102,195				6.41	%		4.2
Unsecured Debt
Fixed Rate		8,230,000				8,230,000				6.02	%		5.5
Floating Rate Debt		300,000				300,000				5.14	%		2.6
		8,530,000				8,530,000				5.89	%		5.4
Revolving Corporate Credit Facility		959,000				959,000				5.72	%		4.5
Revolving Credit Facility—Yen Currency		15,018				15,018				0.57	%		4.5
Revolving Credit Facility—Euro Currency		271,095				271,095				3.28	%		4.5
		1,245,113				1,245,113				5.13	%		4.5
Total Unsecured Debt		9,775,113				9,775,113				5.89	%		5.3
Premium		106,141				104,298
Discount		(23,170		)		(23,149		)
Fair Value Interest Rate Swaps		(16,244		)		(16,244		)
Consolidated Mortgages and Other Indebtedness(2)		$	14,133,592			$	13,942,213			6.04	%		5.0
Joint Venture Indebtedness
Mortgage Debt
Fixed Rate		$	7,389,806			$	3,178,060			5.90	%		6.2
Floating Rate Debt (Hedged)(1)		202,504				83,189				6.06	%		3.0
Floating Rate Debt		307,461				145,756				5.33	%		2.8
Total Mortgage Debt		7,899,771				3,407,005				5.87	%		6.0
Unsecured Floating Rate Debt		57,231				28,043				3.55	%		2.5
Total Unsecured Debt		57,231				28,043				3.55	%		2.5
Premium		0				0
Discount		(2,727		)		(1,340		)
Joint Venture Mortgages and Other Indebtedness		$	7,954,275			$	3,433,708			5.87	%		6.0
The Company’s Share of Total Indebtedness						$	17,375,921			5.97	%		5.2
Summary of Fixed and Variable Rate Debt
Consolidated
Fixed		55.44		%		12,064,428				6.15	%		5.1
Variable		8.55		%		1,877,785				5.38	%		4.1
		63.99		%		13,942,213				6.04	%		5.0
Joint Venture
Fixed		33.44		%		3,176,720				5.90	%		6.2
Variable		2.57		%		256,988				5.57	%		3.0
		36.01		%		$	3,433,708			5.87	%		6.0
Total Debt		100.00		%		17,375,921
Total Fixed Debt		88.88		%		15,241,148				6.04	%		5.3
Total Variable Debt		11.12		%		2,134,773				5.37	%		4.0

(1) These debt obligations are hedged by interest rate cap agreements.

(2) Amounts give effect to outstanding derivative instruments as footnoted on the Summary of Indebtedness by Maturity.

47

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

								Interest				The Company’s
		Maturity			Interest			Rate	Secured or	Total		Share of
Property Name		Date			Rate(1)			Type	Unsecured	Indebtedness		Indebtedness
Consolidated Indebtedness:
Simon Property Group, LP (Sr. Notes)			11/15/06			6.88	%	Fixed	Unsecured		250,000		250,000
Cielo Vista Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		48,106		48,106
Cielo Vista Mall—3	(4)		05/01/07			6.76	%	Fixed	Secured		35,084		35,084
Lakeline Mall			05/01/07			7.65	%	Fixed	Secured		65,649		65,649
McCain Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		22,461		22,461
McCain Mall—2	(4)		05/01/07			6.76	%	Fixed	Secured		16,194		16,194
Valle Vista Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		29,750		29,750
Valle Vista Mall—2	(4)		05/01/07			6.81	%	Fixed	Secured		7,203		7,203
Wolfchase Galleria			06/30/07			7.80	%	Fixed	Secured		71,398		67,468
Keystone at the Crossing			07/31/07			7.85	%	Fixed	Secured		58,063		58,063
Copley Place			08/01/07			7.44	%	Fixed	Secured		172,855		169,652
Simon Property Group, LP (Medium Term Notes)			09/20/07			7.13	%	Fixed	Unsecured		180,000		180,000
University Park Mall			10/01/07			7.43	%	Fixed	Secured		57,185		34,311
CPG Partners, LP (Sr. Notes)			10/21/07			7.25	%	Fixed	Unsecured		125,000		125,000
Simon Property Group, LP (Sr. Notes)			11/15/07			6.38	%	Fixed	Unsecured		750,000		750,000
Bangor Mall			12/01/07			7.06	%	Fixed	Secured		22,404		14,865
White Oaks Mall	(2)		02/25/08			6.45	%	Variable	Secured		48,461		41,038
Gateway Shopping Center	(2)		03/31/08			6.30	%	Variable	Secured		86,000		83,250
Simon Property Group, LP (MOPPRS)			06/15/08			7.00	%	Fixed	Unsecured		200,000		200,000
Gilroy Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		64,954		64,954
Kittery Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		10,754		10,754
Lighthouse Place Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		44,820		44,820
Waterloo Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		36,099		36,099
Simon Property Group, LP (Sr. Notes)			08/28/08			5.38	%	Fixed	Unsecured		150,000		150,000
Stanford Shopping Center			09/11/08	(11)		3.60	%	Fixed	Secured		220,000		220,000
Arsenal Mall—1			09/28/08			6.75	%	Fixed	Secured		31,711		31,711
College Mall—1	(3)		01/01/09			7.00	%	Fixed	Secured		33,426		33,426
College Mall—2	(3)		01/01/09			6.76	%	Fixed	Secured		10,813		10,813
Greenwood Park Mall—1	(3)		01/01/09			7.00	%	Fixed	Secured		27,995		27,995
Greenwood Park Mall—2	(3)		01/01/09			6.76	%	Fixed	Secured		55,865		55,865
Towne East Square—1			01/01/09			7.00	%	Fixed	Secured		45,126		45,126
Towne East Square—2			01/01/09			6.81	%	Fixed	Secured		22,544		22,544
Woodland Hills Mall			01/01/09			7.00	%	Fixed	Secured		82,261		77,710
Simon Property Group, LP (Sr. Notes)			01/30/09	(16)		3.75	%	Fixed	Unsecured		300,000		300,000
Simon Property Group, LP (Sr. Notes)			02/09/09			7.13	%	Fixed	Unsecured		300,000		300,000
Penn Square Mall			03/01/09			7.03	%	Fixed	Secured		68,810		65,023
CPG Partners, LP (Sr. Notes)			03/15/09			3.50	%	Fixed	Unsecured		100,000		100,000
Plaza Carolina—Fixed			05/09/09			5.10	%	Fixed	Secured		95,825		95,825
Plaza Carolina—Variable Capped	(2)		05/09/09			6.25	%	Variable	Secured		96,643		96,643
Plaza Carolina—Variable Floating	(2)		05/09/09			6.25	%	Variable	Secured		57,985		57,985
Simon Property Group, LP (Sr. Notes)			07/15/09			7.00	%	Fixed	Unsecured		150,000		150,000
CPG Partners, LP (Sr. Notes)			08/17/09			8.63	%	Fixed	Unsecured		50,000		50,000
Bloomingdale Court	(8)		11/01/09			7.78	%	Fixed	Secured		27,745		27,745
Forest Plaza	(8)		11/01/09			7.78	%	Fixed	Secured		15,218		15,218
Lake View Plaza	(8)		11/01/09			7.78	%	Fixed	Secured		20,229		20,229

48

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

												The
							Interest					Company’s
		Maturity		Interest			Rate	Secured or		Total		Share of
Property Name		Date		Rate(1)			Type	Unsecured		Indebtedness		Indebtedness
Lakeline Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			22,178		22,178
Lincoln Crossing	(8)		11/01/09		7.78	%	Fixed	Secured			3,061		3,061
Matteson Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			8,908		8,908
Muncie Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			7,702		7,702
Regency Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			4,175		4,175
St. Charles Towne Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			26,724		26,724
West Ridge Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			5,383		5,383
White Oaks Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			16,425		16,425
Simon Property Group, LP (Sr. Notes)			03/18/10		4.88	%	Fixed	Unsecured			300,000		300,000
Simon Property Group, LP (Sr. Notes)			06/15/10		4.60	%	Fixed	Unsecured			400,000		400,000
Trolley Square			08/01/10		9.03	%	Fixed	Secured			28,534		25,681
Simon Property Group, LP (Sr. Notes)			08/15/10		4.88	%	Fixed	Unsecured			400,000		400,000
Coral Square			10/01/10		8.00	%	Fixed	Secured			86,329		83,929
Crystal River			11/11/10		7.63	%	Fixed	Secured			15,436		15,436
Forum Shops at Caesars, The			12/01/10		4.78	%	Fixed	Secured			545,276		545,276
Port Charlotte Town Center			12/11/10		7.98	%	Fixed	Secured			52,233		41,786
Oxford Valley Mall			01/10/11		6.76	%	Fixed	Secured			81,099		51,222
Revolving Credit Facility-USD	(2)		01/11/11		5.72	%	Variable	Unsecured			959,000		959,000
Revolving Credit Facility—Yen Currency	(2)		01/11/11		0.57	%	Variable	Unsecured	(17)		15,018		15,018
Revolving Credit Facility—Euro Currency	(2)		01/11/11		3.28	%	Variable	Unsecured	(18)		271,095		271,095
Simon Property Group, LP (Sr. Notes)			01/20/11		7.75	%	Fixed	Unsecured			200,000		200,000
CPG Partners, LP (Sr. Notes)			02/01/11		8.25	%	Fixed	Unsecured			150,000		150,000
Simon Property Group, LP (Sr. Notes)			06/01/11		5.38	%	Fixed	Unsecured			500,000		500,000
Henderson Square			07/01/11		6.94	%	Fixed	Secured			15,164		11,520
Ingram Park Mall	(7)		08/11/11		6.99	%	Fixed	Secured			80,026		80,026
Knoxville Center	(7)		08/11/11		6.99	%	Fixed	Secured			60,600		60,600
Northlake Mall	(7)		08/11/11		6.99	%	Fixed	Secured			69,910		69,910
Towne West Square	(7)		08/11/11		6.99	%	Fixed	Secured			52,383		52,383
Tacoma Mall			10/01/11		7.00	%	Fixed	Secured			127,696		127,696
Simon Property Group, LP (Sr. Notes)			05/01/12		5.75	%	Fixed	Unsecured			400,000		400,000
CPG Partners, LP (Sr. Notes)			06/15/12		6.88	%	Fixed	Unsecured			100,000		100,000
Simon Property Group, LP (Sr. Notes)			08/28/12		6.35	%	Fixed	Unsecured			350,000		350,000
Anderson Mall			10/10/12		6.20	%	Fixed	Secured			28,837		28,837
Century III Mall	(5)		10/10/12		6.20	%	Fixed	Secured			85,120		85,120
Crossroads Mall			10/10/12		6.20	%	Fixed	Secured			42,751		42,751
Forest Mall	(6)		10/10/12		6.20	%	Fixed	Secured			17,120		17,120
Highland Lakes Center	(5)		10/10/12		6.20	%	Fixed	Secured			15,780		15,780
Longview Mall	(5)		10/10/12		6.20	%	Fixed	Secured			32,039		32,039
Markland Mall	(6)		10/10/12		6.20	%	Fixed	Secured			22,667		22,667
Midland Park Mall	(6)		10/10/12		6.20	%	Fixed	Secured			33,092		33,092
Palm Beach Mall			10/10/12		6.20	%	Fixed	Secured			52,937		52,937
Richmond Towne Square	(6)		10/10/12		6.20	%	Fixed	Secured			46,481		46,481
Las Vegas Outlet Center			12/10/12		8.12	%	Fixed	Secured			18,701		18,701
CPG Partners, LP (Sr. Notes)			01/15/13		6.00	%	Fixed	Unsecured			150,000		150,000
Factory Stores of America—Boaz	(10)		03/10/13		9.10	%	Fixed	Secured			2,768		2,768

49

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

Property Name		Maturity Date		Interest Rate (1)			Interest Rate Type	Secured or Unsecured	Total Indebtedness			The Company’s Share of Indebtedness
The Factory Shoppes at Branson Meadows	(10)		03/10/13		9.10	%	Fixed	Secured		9,463			9,463
MacGregor Village	(10)		03/10/13		9.10	%	Fixed	Secured		6,815			6,815
Factory Stores of America—Georgetown	(10)		03/10/13		9.10	%	Fixed	Secured		6,559			6,559
Factory Stores of America—Graceville	(10)		03/10/13		9.10	%	Fixed	Secured		1,949			1,949
Dare Centre	(10)		03/10/13		9.10	%	Fixed	Secured		1,694			1,694
Factory Stores of America—Lebanon	(10)		03/10/13		9.10	%	Fixed	Secured		1,638			1,638
Factory Stores of America—Nebraska City	(10)		03/10/13		9.10	%	Fixed	Secured		1,538			1,538
North Ridge Shopping Center	(10)		03/10/13		9.10	%	Fixed	Secured		8,323			8,323
Factory Stores of America—Story City	(10)		03/10/13		9.10	%	Fixed	Secured		1,902			1,902
Carolina Premium Outlets—Smithfield	(10)		03/10/13		9.10	%	Fixed	Secured		20,348			20,348
The Crossings Premium Outlets			03/13/13		5.85	%	Fixed	Secured		57,335			57,335
Simon Property Group, LP (Sr. Notes)			03/15/13		5.45	%	Fixed	Unsecured		200,000			200,000
Battlefield Mall			07/01/13		4.60	%	Fixed	Secured		98,616			98,616
Retail Property Trust (Sr. Notes)			09/01/13		7.18	%	Fixed	Unsecured		75,000			75,000
Simon Property Group, LP (Sr. Notes)			01/30/14		4.90	%	Fixed	Unsecured		200,000			200,000
Northfield Square			02/11/14		6.05	%	Fixed	Secured		30,686			9,697
Montgomery Mall			05/11/14		5.17	%	Fixed	Secured		93,218			49,844
Boardman Plaza			07/01/14		5.94	%	Fixed	Secured		23,598			23,598
Desoto Square			07/01/14		5.89	%	Fixed	Secured		64,153			64,153
Upper Valley Mall			07/01/14		5.89	%	Fixed	Secured		47,904			47,904
Washington Square			07/01/14		5.94	%	Fixed	Secured		30,693			30,693
West Ridge Mall			07/01/14		5.89	%	Fixed	Secured		68,711			68,711
Chesapeake Square			08/01/14		5.84	%	Fixed	Secured		73,000			54,750
Brunswick Square			08/11/14		5.65	%	Fixed	Secured		86,000			86,000
Simon Property Group, LP (Sr. Notes)			08/15/14		5.63	%	Fixed	Unsecured		500,000			500,000
DeKalb Plaza			01/01/15		5.28	%	Fixed	Secured		3,355			1,689
Simon Property Group, LP (Sr. Notes)			06/15/15		5.10	%	Fixed	Unsecured		600,000			600,000
Simon Property Group, LP (Sr. Notes)			12/01/15		5.75	%	Fixed	Unsecured		600,000			600,000
Retail Property Trust (Sr. Notes)			03/15/16		7.88	%	Fixed	Unsecured		250,000			250,000
Simon Property Group, LP (Sr. Notes)			05/01/16		6.10	%	Fixed	Unsecured		400,000			400,000
Arsenal Mall—2			05/05/16		8.20	%	Fixed	Secured		1,413			1,413
Simon Property Group, LP (Sr. Notes)			06/15/18		7.38	%	Fixed	Unsecured		200,000			200,000
Sunland Park Mall			01/01/26		8.63	%	Fixed	Secured		35,670			35,670
Total Consolidated Indebtedness at Face Value										14,066,865			13,877,308
Premium on Fixed-Rate Indebtedness										106,141			104,298
Discount on Fixed-Rate Indebtedness										(23,170	)		(23,149	)
Fair Value Interest Rate Swaps										(16,244	)		(16,244	)
Total Consolidated Indebtedness										14,133,592			13,942,213
Joint Venture Indebtedness
St. John’s Town Center Phase II			07/31/06		6.20	%	Variable	Secured		8,700			4,350

50

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

Property Name		Maturity Date			Interest Rate(1)			Interest Rate Type	Secured or Unsecured		Total Indebtedness		The Company’s Share of Indebtedness
Lehigh Valley Mall			10/10/06			7.90	%	Fixed	Secured			44,001		16,549
Greendale Mall			12/10/06			8.23	%	Fixed	Secured			39,661		19,488
Gwinnett Place—1			04/01/07			7.54	%	Fixed	Secured			35,954		17,977
Gwinnett Place—2			04/01/07			7.25	%	Fixed	Secured			79,841		39,921
Town Center at Cobb—1			04/01/07			7.54	%	Fixed	Secured			45,807		22,904
Town Center at Cobb—2			04/01/07			7.25	%	Fixed	Secured			60,761		30,381
Galleria Commerciali Italia—Cinisello			06/20/07			3.46	%	Variable	Secured	(13)		37,757		18,501
Coddingtown Mall			07/14/07			6.60	%	Variable	Secured			10,500		10,500
Gotemba Premium Outlets—Variable			09/30/07			1.98	%	Variable	Secured	(15)		18,177		7,271
Mall at Rockingham			09/01/07			7.88	%	Fixed	Secured			93,874		23,064
Aventura Mall—A			04/06/08			6.55	%	Fixed	Secured			141,000		47,000
Aventura Mall—B			04/06/08			6.60	%	Fixed	Secured			25,400		8,467
Aventura Mall—C			04/06/08			6.89	%	Fixed	Secured			33,600		11,200
West Town Mall			05/01/08			6.90	%	Fixed	Secured			76,000		38,000
Mall of New Hampshire—1			10/01/08			6.96	%	Fixed	Secured			96,939		47,633
Mall of New Hampshire—2			10/01/08			8.53	%	Fixed	Secured			8,034		3,948
Fashion Valley Mall—1			10/11/08			6.49	%	Fixed	Secured			160,072		80,036
Fashion Valley Mall—2			10/11/08			6.58	%	Fixed	Secured			29,124		14,562
SouthPark Residential			10/31/08			6.75	%	Variable	Secured			6,352		2,541
Whitehall Mall			11/01/08			6.77	%	Fixed	Secured			13,267		5,040
Galleria Commerciali Italia—Facility C			12/22/08			3.55	%	Variable	Unsecured	(13)		57,231		28,043
Source, The			03/11/09			6.65	%	Fixed	Secured			124,000		31,000
Shops at Sunset Place, The	(2)		05/09/09			6.10	%	Variable	Secured			92,504		34,689
Seminole Towne Center	(2)		07/09/09			6.00	%	Variable	Secured			70,000		31,500
Fashion Centre Pentagon Office	(2)		07/09/09			6.10	%	Variable	Secured			40,000		17,000
Apple Blossom Mall			09/10/09			7.99	%	Fixed	Secured			38,464		18,900
Auburn Mall			09/10/09			7.99	%	Fixed	Secured			45,032		22,128
Toki Premium Outlets			10/30/09			0.94	%	Variable	Secured	(15)		12,063		4,825
Mall at Chestnut Hill			02/02/10			8.45	%	Fixed	Secured			14,269		6,738
Coconut Point	(2)		05/19/10			6.45	%	Variable	Secured			129,904		64,952
Westchester, The			06/01/10			4.86	%	Fixed	Secured			500,000		200,000
Mall of Georgia			07/01/10			7.09	%	Fixed	Secured			193,270		96,635
Springfield Mall	(2)		12/01/10			6.45	%	Variable	Secured			76,500		29,062
Florida Mall, The			12/10/10			7.55	%	Fixed	Secured			255,743		127,872
Surprise Grand Vista			12/28/10	(19)		10.81	%	Fixed	Secured			246,188		98,475
Domain Residential	(2)		03/03/11			6.50	%	Variable	Secured			7,508		3,754
Atrium at Chestnut Hill			03/11/11			6.89	%	Fixed	Secured			46,347		22,774
Cape Cod Mall			03/11/11			6.80	%	Fixed	Secured			94,186		46,281
Highland Mall			07/11/11			6.83	%	Fixed	Secured			67,272		33,636
Villabe A6—Bel’Est			08/01/11			3.90	%	Fixed	Secured	(14)		11,379		5,689
Fashion Centre Pentagon Retail			09/11/11			6.63	%	Fixed	Secured			158,013		67,156
Bay 1 (Torcy)			12/01/11			4.70	%	Fixed	Secured	(14)		17,523		8,761
Zakopianka Shopping Center			12/01/11			6.82	%	Fixed	Secured	(12)		14,127		7,064
Galleria Commerciali Italia—Facility A			12/22/11			4.11	%	Fixed	Secured	(13)		299,052		146,535
Galleria Commerciali Italia—Facility B			12/22/11			4.21	%	Fixed	Secured	(13)		312,042		152,901

51

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

Property Name	Maturity Date		Interest Rate(1)			Interest Rate Type		Secured or Unsecured			Total Indebtedness			The Company’s Share of Indebtedness
Borek Shopping Center		02/01/12		6.19	%		Fixed		Secured	(12)		15,580			7,790
Dadeland Mall		02/11/12		6.75	%		Fixed		Secured			190,516			95,258
Square One		03/11/12		6.73	%		Fixed		Secured			90,634			44,535
Crystal Mall		09/11/12		5.62	%		Fixed		Secured			100,675			75,072
Emerald Square Mall		03/01/13		5.13	%		Fixed		Secured			138,198			67,907
Avenues, The		04/01/13		5.29	%		Fixed		Secured			76,241			19,060
Circle Centre Mall		04/11/13		5.02	%		Fixed		Secured			76,267			11,188
Bay 2 (Torcy)		06/01/13		4.10	%		Fixed		Secured	(14)		65,331			32,666
Solomon Pond		08/01/13		3.97	%		Fixed		Secured			114,000			56,017
Tosu Premium Outlets		08/24/13		2.62	%		Fixed		Secured	(15)		12,050			4,820
Miami International Mall		10/01/13		5.35	%		Fixed		Secured			97,500			46,582
Liberty Tree Mall		10/11/13		5.22	%		Fixed		Secured			35,000			17,198
Wilenska Station Shopping Center		11/01/13		4.85	%		Fixed		Secured	(14)		37,571			18,785
Northshore Mall		03/11/14		5.03	%		Fixed		Secured			210,000			103,189
Turzyn Shopping Center		06/01/14		6.56	%		Fixed		Secured	(12)		22,971			11,485
Dabrowka Shopping Center		07/01/14		6.22	%		Fixed		Secured	(12)		4,730			2,365
Gotemba Premium Outlets—Fixed		10/25/14		2.00	%		Fixed		Secured	(15)		9,004			3,602
Rinku Premium Outlets		10/25/14		2.34	%		Fixed		Secured	(15)		33,720			13,488
Arkadia Shopping Center		11/01/14		5.05	%		Fixed		Secured	(14)		128,390			64,195
Indian River Commons		11/01/14		5.21	%		Fixed		Secured			9,645			4,823
Indian River Mall		11/01/14		5.21	%		Fixed		Secured			65,355			32,678
St. Johns Town Center		03/11/15		5.06	%		Fixed		Secured			170,000			85,000
Gaitway Plaza		07/01/15		4.60	%		Fixed		Secured			13,900			3,243
Plaza at Buckland Hills, The		07/01/15		4.60	%		Fixed		Secured			24,800			8,680
Ridgewood Court		07/01/15		4.60	%		Fixed		Secured			14,650			5,128
Village Park Plaza		07/01/15		4.60	%		Fixed		Secured			29,850			10,448
West Town Corners		07/01/15		4.60	%		Fixed		Secured			18,800			4,388
Clay Terrace Partners		10/01/15		5.08	%		Fixed		Secured			115,000			57,500
Houston Galleria—1		12/01/15		5.44	%		Fixed		Secured			643,583			202,632
Houston Galleria—2		12/01/15		5.44	%		Fixed		Secured			177,417			55,860
Smith Haven Mall		03/01/16		5.16	%		Fixed		Secured			180,000			45,000
Quaker Bridge Mall		04/01/16		7.03	%		Fixed		Secured			22,132			8,408
Sano Premium Outlets		05/31/16		2.40	%		Fixed		Secured	(15)		49,913			19,965
Eastland Mall		06/01/16		5.79	%		Fixed		Secured			168,000			84,000
Empire Mall		06/01/16		5.79	%		Fixed		Secured			176,300			88,150
Granite Run Mall		06/01/16		5.83	%		Fixed		Secured			121,875			60,938
Mesa Mall		06/01/16		5.79	%		Fixed		Secured			87,250			43,625
Rushmore Mall		06/01/16		5.79	%		Fixed		Secured			94,000			47,000
Southern Hills Mall		06/01/16		5.79	%		Fixed		Secured			101,500			50,750
Valley Mall		06/01/16		5.83	%		Fixed		Secured			47,451			23,726
King of Prussia Mall—1		01/01/17		7.49	%		Fixed		Secured			168,105			20,761
King of Prussia Mall—2		01/01/17		8.53	%		Fixed		Secured			11,661			1,440
Total Joint Venture Indebtedness at Face Value												7,957,002			3,435,048
Premium on JV Fixed-Rate Indebtedness												0			0
Discount on JV Fixed-Rate Indebtedness												(2,727	)		(1,340	)
Total Joint Venture Indebtedness												7,954,275			3,433,708
The Company’s Share of Total Indebtedness															17,375,921

(Footnotes on following page)

52

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

(Footnotes for preceeding pages)

Footnotes:

(1)     Variable rate debt interest rates are based on the following base rates as of June  30, 2006:  LIBOR at 5.35%; EURIBOR at 2.9%; and YEN LIBOR at .19%.

(2)     Includes applicable extensions available at Company’s option.

(3)     These two Properties are secured by cross-collateralized and cross-defaulted mortgages.

(4)     These three Properties are secured by cross-collateralized and cross-defaulted mortgages.

(5)     These three Properties are secured by cross-collateralized and cross-defaulted mortgages.

(6)     These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(7)     These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(8)     These eleven Properties are secured by cross-collateralized and cross-defaulted mortgages.

(9)     These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(10)     These eleven Properties are secured by cross-collateralized and cross-defaulted mortgages.

(11)     Simultaneous with the issuance of this loan, the Company entered into a $70 million notional amount variable rate swap agreement which is designated as a hedge against this loan. As of June 30, 2006, after including the impacts of this swap, the terms of the loan are effectively $150 million fixed at 3.60% and $70 million variable rate at 5.59%.

(12)     Amounts shown in USD Equivalent. Euro equivalent is 45.7 million.

(13)     Amounts shown in USD Equivalent. Euro equivalent is 562.6 million. Associated with Facility A and B are interest rate swap agreements with a total combined 486.5 million euros notional amount that effectively fixes Facility A and B at 3.97%.

(14)     Amounts shown in USD Equivalent. Euro equivalent is 207.3 million. Associated with these loans are interest rate swap agreements with a total combined 190.8 million euros notional amount that effectively fix these loans at a combined 5.29%.

(15)     Amounts shown in USD Equivalent. Yen equivalent is 15,475.5 million.

(16)     The Company has $300 million notional amount variable rate swap agreement which is a designated hedge against this unsecured note effectively converting to a six month LIBOR variable rate.

(17)     Amounts shown in USD Equivalent. Balance includes borrowings on multi-currency tranche of Yen 1,746.4 million.

(18)     Amounts shown in USD Equivalent. Balance includes borrowings on multi-currency tranche of Euro 216.0 million.

(19)Property debt consists of three components; fixed loans at 9.80% and 15.00%, and a variable rate loan at LIBOR plus 500 basis points. The variable component has LIBOR capped at 7.50%, which effectively fixes the three components at a weighted average rate of 10.81%

53

SIMON PROPERTY GROUP
Unencumbered Assets
As of June 30, 2006

Property Name	City	State
Regional Malls:
University Mall	Little Rock	AR
Brea Mall	Brea	CA
Laguna Hills Mall	Laguna Hills	CA
Santa Rosa Plaza	Santa Rosa	CA
Shops at Mission Viejo, The	Mission Viejo	CA
Westminster Mall	Westminster	CA
Town Center at Aurora	Aurora	CO
Boynton Beach Mall	Boynton Beach	FL
Cordova Mall	Pensacola	FL
Edison Mall	Fort Meyers	FL
Gulf View Square	Port Richey	FL
Melbourne Square	Melbourne	FL
Orange Park Mall	Orange Park	FL
Paddock Mall	Ocala	FL
Town Center at Boca Raton	Boca Raton	FL
Treasure Coast Square	Jensen Beach	FL
Tyrone Square	St. Petersburg	FL
University Mall	Pensacola	FL
Lenox Square	Atlanta	GA
Phipps Plaza	Atlanta	GA
Alton Square	Alton	IL
Lincolnwood Town Center	Lincolnwood	IL
Northwoods Shopping Center	Peoria	IL
Orland Square	Orland Park	IL
River Oaks Center	Calumet City	IL
Castleton Square Mall	Indianapolis	IN
Lafayette Square	Indianapolis	IN
Muncie Mall	Muncie	IN
Tippecanoe Mall	Lafayette	IN
Prien Lake Mall	Lake Charles	LA
Burlington Mall	Burlington	MA
South Shore Plaza	Braintree	MA
Bowie Town Center	Bowie	MD
St. Charles Towne Center	Waldorf	MD

54

Property Name	City	State
Maplewood Mall	Minneapolis	MN
Miller Hill Mall	Duluth	MN
Independence Center	Independence	MO
SouthPark	Charlotte	NC
Pheasant Lane	Nashua	NH
Livingston Mall	Livingston	NJ
Menlo Park Mall	Edison	NJ
Ocean County Mall	Toms River	NJ
Rockaway Townsquare	Rockaway	NJ
Cottonwood Mall	Albuquerque	NM
Chautauqua Mall	Lakewood	NY
Nanuet Mall	Nanuet	NY
Jefferson Valley Mall	Yorktown Heights	NY
Roosevelt Field	Garden City	NY
Walt Whitman Mall	Huntington Station	NY
Great Lakes Mall	Mentor	OH
Lima Mall	Lima	OH
Southern Park Mall	Boardman	OH
Summit Mall	Akron	OH
Ross Park Mall	Pittsburgh	PA
South Hills Village	Pittsburgh	PA
Haywood Mall	Greenville	SC
Oak Court Mall	Memphis	TN
Raleigh Springs Mall	Memphis	TN
Barton Creek Square	Austin	TX
Broadway Square	Tyler	TX
Firewheel Town Center	Garland	TX
Irving Mall	Irving	TX
La Plaza Mall	McAllen	TX
North East Mall	Hurst	TX
Richardson Square Mall	Richardson	TX
Rolling Oaks Mall	San Antonio	TX
Charlottesville Fashion Square	Charlottesville	VA
Virginia Center Commons	Glen Allen	VA

55

Property Name	City	State
Columbia Center	Kennewick	WA
Northgate Mall	Seattle	WA
Bay Park Square	Green Bay	WI
Premium Outlet Centers:
Camarillo Premium Outlets	Camarillo	CA
Carlsbad Premium Outlets	Carlsbad	CA
Desert Hills Premium Outlets	Cabazon	CA
Folsom Premium Outlets	Folsom	CA
Napa Premium Outlets	Napa	CA
Petaluma Village Premium Outlets	Petaluma	CA
Vacaville Premium Outlets	Vacaville	CA
Clinton Crossing Premium Outlets	Clinton	CT
Orlando Premium Outlets	Orlando	FL
St. Augustine Premium Outlets	St. Augustine	FL
North Georgia Premium Outlets	Dawsonville	GA
Waikele Premium Outlets	Waipahu	HI
Chicago Premium Outlets	Aurora	IL
Edinburgh Premium Outlets	Edinburgh	IN
Wrentham Village Premium Outlets	Wrentham	MA
Albertville Premium Outlets	Albertville	MN
Osage Beach Premium Outlets	Osage Beach	MO
Jackson Premium Outlets	Jackson	NJ
Liberty Village Premium Outlets	Flemington	NJ
Las Vegas Premium Outlets	Las Vegas	NV
Woodbury Common Premium Outlets	Central Valley	NY
Aurora Farms Premium Outlets	Aurora	OH
Columbia Gorge Premium Outlets	Troutdale	OR
Allen Premium Outlets	Allen	TX

56

Property Name	City	State
Leesburg Corner Premium Outlets	Leesburg	VA
Seattle Premium Outlets	Seattle	WA
Johnson Creek Premium Outlets	Johnson Creek	WI
Community/Lifestyle Centers:
Royal Eagle Plaza	Coral Springs	FL
Terrace at Florida Mall	Orlando	FL
Waterford Lakes Town Center	Orlando	FL
Westland Park Plaza	Orange Park	FL
Mall of Georgia Crossing	Atlanta	GA
Countryside Plaza	Countryside	IL
Crystal Court	Crystal Lake	IL
Lake Plaza	Waukegan	IL
North Ridge Plaza	Joliet	IL
Willow Knolls Court	Peoria	IL
Brightwood Plaza	Indianapolis	IN
Greenwood Plus	Greenwood	IN
Griffith Park Plaza	Griffith	IN
Keystone Shoppes	Indianapolis	IN
Markland Plaza	Kokomo	IN
New Castle Plaza	New Castle	IN
Northwood Plaza	Fort Wayne	IN
Teal Plaza	Lafayette	IN
Tippecanoe Plaza	Lafayette	IN
University Center	Mishawaka	IN
Wabash Village	West Lafayette	IN
Washington Plaza	Indianapolis	IN
Park Plaza	Hopkinsville	KY
Rockaway Convenience Center	Rockaway	NJ
Rockaway Town Plaza	Rockaway	NJ
Cobblestone Court	Victor	NY
Great Lakes Plaza	Mentor	OH
Lima Center	Lima	OH
Northland Plaza	Columbus	OH
Eastland Plaza	Tulsa	OK

57

Property Name	City	State
Lincoln Plaza	Langhorne	PA
Charles Towne Square	Charleston	SC
Knoxville Commons	Knoxville	TN
The Arboretum	Austin	TX
Celina Plaza	El Paso	TX
Wolf Ranch Town Center	Georgetown	TX
Ingram Plaza	San Antonio	TX
Shops at North East Mall	Hurst	TX
Chesapeake Center	Chesapeake	VA
Fairfax Court	Fairfax	VA
Martinsville Plaza	Martinsville	VA
Other:
Factory Merchants Branson	Branson	MO
Crossville Outlet Center	Crossville	TN
Factory Stores at North Bend	North Bend	WA

58

SIMON PROPERTY GROUP
Preferred Stock/Units Outstanding
As of June 30, 2006
($ in 000’s, except per share amounts)

Issuer	Description	Number of Shares/Units	Per Share Liquidation Preference			Aggregate Liquidation Preference			Ticker Symbol
Preferred Stock:
Simon Property Group, Inc.	Series F 8.75% Cumulative Redeemable(1)	8,000,000		$	25		$	200,000	SPGPrF
Simon Property Group, Inc.	Series G 7.89% Cumulative Step-Up Premium Rate(2)	3,000,000		$	50		$	150,000	SPGPrG
Simon Property Group, Inc.	Series I 6%Convertible Perpetual Preferred(3)	13,623,094		$	50		$	681,155	SPGPrI
Simon Property Group, Inc.	Series J 8.375% Cumulative Redeemable(4)	796,948		$	50		$	39,847	SPGPrJ
Preferred Units:
Simon Property Group, L.P	Series C 7% Cumulative Convertible(5)	1,382,728		$	28		$	38,716	N/A
Simon Property Group, L.P	Series D 8% Cumulative Redeemable(6)	1,425,573		$	30		$	42,767	N/A
Simon Property Group, L.P	Series I 6% Convertible Perpetual(7)	4,168,501		$	50		$	208,425	N/A
Simon Property Group, L.P	7.50% Cumulative Redeemable(8)	255,373		$	100		$	25,537	N/A
Simon Property Group, L.P	7.75%/8.00% Cumulative Redeemable(9)	850,698		$	100		$	85,070	N/A

(1)The shares are redeemable on or after September 29, 2006. The shares are not convertible into any other securities of the Company. The shares are traded on the New York Stock Exchange. The closing price on June 30, 2006, was $25.16 per share.

(2)The Cumulative Step-Up Premium Rate Preferred Stock was issued at 7.89%. The shares are redeemable after September 30, 2007. Beginning October 1, 2012, the rate increases to 9.89%. The shares are not convertible into any other securities of the Company. The shares are traded on the New York Stock Exchange. The closing price on June 30, 2006 was $51.00 per share.

(3)Each share was convertible into 0.7853 of a share of common stock during the period beginning on April 3, 2006 and ending on June 30, 2006. Each share is convertible into 0.78637 of a share of common stock during the period beginning on July 3, 2006 and ending on September 29, 2006. The shares are redeemable on or after October 14, 2009, in whole or in part, for cash only at a liquidation preference of $50 per share, if the closing price per share of common stock exceeds 130% of the applicable conversion price for 20 trading days within a period of 30 consecutive trading days ending on the trading day before notice of redemption is issued. The shares are traded on the New York Stock Exchange. The closing price on June 30, 2006 was $68.50 per share.

(4)Each share is redeemable on or after October 15, 2027. The shares are traded on the New York Stock Exchange. The closing price on June 30, 2006 was $60.80 per share.

(5)Each unit is convertible into 0.75676 of a share of common stock. Each unit is redeemable on or after August 27, 2009.

(6)Each unit is redeemable on or after August 27, 2009.

(7)Each unit was convertible into 0.7853 of a share of common stock during the period beginning on April 3, 2006 and ending on June 30, 2006. Each unit is convertible into 0.78637 of a share of common stock during the period beginning on July 3, 2006 and ending on September 29, 2006. Each unit may be exchanged for a share of Series I 6% Convertible Perpetual Preferred stock or cash, at Simon Group’s option.

(8)Each unit is redeemable on or after November 10, 2013 or earlier upon the occurrence of certain tax triggering events.

(9)Each unit is redeemable on or after January 1, 2011 or earlier upon the occurrence of certain tax triggering events.

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EX-99.2

Exhibit 99.2

CONTACTS:
Shelly Doran	317.685.7330	Investors
Les Morris	317.263.7711	Media

FOR IMMEDIATE RELEASE

SIMON PROPERTY GROUP ANNOUNCES SECOND QUARTER RESULTS
AND QUARTERLY DIVIDENDS

Indianapolis, Indiana—July 31, 2006...Simon Property Group, Inc. (the “Company” or “Simon”) (NYSE:SPG) today announced results for the quarter ended June 30, 2006:

·Funds from operations (“FFO”) of the Simon portfolio for the quarter increased 6.9% to $358.4 million from $335.2 million in the second quarter of 2005. On a diluted per share basis the increase was 6.8% to $1.26 from $1.18 in 2005. FFO of the Simon portfolio for the six months increased 9.6% to $717.3 million from $654.7 million in 2005. On a diluted per share basis the increase was 9.1% to $2.52 per share from $2.31 per share in 2005.

·Net income available to common stockholders for the quarter decreased 46.4% to $82.9 million from $154.8 million in the second quarter of 2005. On a diluted per share basis the decrease was 47.1% to $0.37 from $0.70 in 2005. Net income available to common stockholders for the six months decreased 11.8% to $186.9 million from $211.9 million in 2005. On a diluted per share basis the decrease was 12.5% to $0.84 per share from $0.96 per share in 2005. The decrease in net income for the quarter and six months is attributable to net gains on the sale of two office building complexes in the second quarter of 2005 of approximately $120 million, or $0.40 on a diluted per share basis.

	As of				As of
	June 30, 2006				June 30, 2005				Change
Occupancy
Regional Malls(1)		91.6		%		92.2		%	60 basis point decrease
Premium Outlet® Centers(2)		99.4		%		99.2		%	20 basis point increase
Community/Lifestyle Centers(2)		89.7		%		91.5		%	180 basis point decrease
Comparable Sales per Sq. Ft.
Regional Malls(3)		$	468			$	442		5.9% increase
Premium Outlet Centers(2)		$	453			$	426		6.3% increase
Community/Lifestyle Centers(2)		$	218			$	218		unchanged
Average Rent per Sq. Ft.
Regional Malls(1)		$	35.10			$	34.16		2.8% increase
Premium Outlet Centers(2)		$	23.78			$	22.83		4.2% increase
Community/Lifestyle Centers(2)		$	11.65			$	11.13		4.7% increase

(1)For mall and freestanding stores.

(2)For all owned gross leasable area (GLA).

(3)For mall and freestanding stores with less than 10,000 square feet.

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“We are pleased to report strong second quarter results and to again raise our guidance for 2006,” said David Simon, Chief Executive Officer. “Tenant sales in our regional mall and Premium Outlet portfolios continue to be robust, tenant demand for our space remains strong, and we anticipate that our regional mall occupancy will be consistent with 2005 levels by year-end. Our development pipeline also proceeds on schedule, and we look forward to the openings of Coconut Point in Estero/Bonita Springs, Florida; Round Rock Premium Outlets in Round Rock, Texas; Rio Grande Premium Outlets in Mercedes, Texas; and The Shops at Arbor Walk in Austin, Texas later this year.”

Dividends

Today the Company announced a quarterly common stock dividend of $0.76 per share. This dividend will be paid on August 31, 2006 to stockholders of record on August 17, 2006.

The Company also declared dividends on its four outstanding issues of preferred stock:

·8.75% Series F Cumulative Redeemable Preferred (NYSE:SPGPrF) dividend of $0.546875 per share is payable on September 29, 2006 to stockholders of record on September 15, 2006.

·7.89% Series G Cumulative Preferred (NYSE:SPGPrG) dividend of $0.98625 per share is payable on September 29, 2006 to stockholders of record on September 15, 2006.

·6% Series I Convertible Perpetual Preferred (NYSE:SPGPrI) dividend of $0.75 per share is payable on August 31, 2006 to stockholders of record on August 17, 2006.

·8 3/8% Series J Cumulative Redeemable Preferred (NYSE:SPGPrJ) dividend of $1.046875 per share is payable on September 29, 2006 to stockholders of record on September 15, 2006.

U.S. Development Activity

The Company continues construction on:

·Coconut Point—a 1.2 million square foot open-air shopping complex with village and community center components in Estero/Bonita Springs (Naples-Fort Myers corridor), Florida. The initial tenants in the community center component opened in phases earlier this year and the remainder of the project is scheduled to open in November 2006.

·Round Rock Premium Outlets—a 433,000 square foot upscale outlet center in Round Rock (Austin), Texas. The project is scheduled to open on August 3, 2006.

·Rio Grande Valley Premium Outlets—a 404,000 square foot upscale outlet center in Mercedes, Texas. The project is scheduled to open on November 2, 2006.

·The Village at SouthPark—a mixed-use project comprised of residential and retail components located adjacent to Simon’s highly successful SouthPark in Charlotte, North Carolina. Crate & Barrel is scheduled to open in November of 2006, followed by other retail in March of 2007 and the residential component in May 2007.

·The Domain—a 700,000 square foot open-air center in Austin, Texas, anchored by Neiman Marcus and Macy’s and including office, residential and hotel components. The Domain is scheduled to open in March 2007.

·The Shops at Arbor Walk—a 460,000 square foot community center in Austin, Texas anchored by Home Depot. The project will open in phases from November 2006 through March 2007.

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International Activity

In late May of 2006, our Italian joint venture Gallerie Commerciali Italia (“GCI”) opened a 748,000 square foot shopping center in Giugliano on the northwest side of Naples, Italy. The project opened 99.8% leased and includes a shopping gallery anchored by Auchan and Zara. The project also includes an adjacent retail park with tenants including Leroy Merlin, Decathlon, Conforma, Eldo, Oviesse, Conbipel, Euronics, and Scarpe & Scarpe. GCI owns 40% of this project.

Several international projects are under construction or will begin construction later in 2006:

·Construction continues on four shopping center projects in Italy, fully or partially owned by GCI, the Italian joint venture in which the Company owns a 49% interest. The shopping centers are located in Argine (Naples), Cinisello (Milan), Nola (Naples) and Porta di Roma (Rome) and all are expected to open in 2007.

·Two projects owned by the Company’s Simon Ivanhoe joint venture are currently under construction—one in Gliwice, Poland, and one in Wasquehal, France. Both shopping centers are expected to open in late 2006. The Company owns 50% of Simon Ivanhoe.

·Through its wholly-owned subsidiary, Chelsea Property Group L.P., the Company owns 40% of five Premium Outlet centers in Japan. Construction is underway on a 53,000 square foot phase II expansion of Toki Premium Outlets, scheduled for completion in late 2006. The Company has also announced plans for the development of its sixth Premium Outlet in Japan, Kobe Sanda Premium Outlets. The project is located in the Kobe/Osaka market, 22 miles north of downtown Kobe. Construction on the 185,000 square foot first phase is expected to commence in the fall of 2006 for a projected summer 2007 grand opening.

·Construction commenced during the first quarter on the Company’s first project in South Korea. Yeoju Premium Outlets is a 253,000 square foot upscale outlet center that will serve the greater Seoul market. The center is expected to open in spring 2007. The Company owns 50% of this project.

Disposition Activity

On April 25th, the Company sold Great Northeast Plaza, a 295,000 square foot community center in Philadelphia.

Financing Activity

On May 15th, the Company announced the closing of an offering of $800 million of senior notes by its operating partnership subsidiary, Simon Property Group, L.P. (the “Operating Partnership”). The offering consisted of $400 million of 5.75% notes due 2012 and $400 million of 6.10% notes due 2016. The Operating Partnership used the proceeds to reduce the outstanding balance of its existing $3 billion unsecured corporate credit facility.

The Company also reported that the Operating Partnership settled certain forward-starting interest rate swap contracts concurrently with the pricing of the notes. If the proceeds of these settlements were applied to the notes, the effective interest rate of the 2012 notes and the 2016 notes would be reduced to 5.71% and 5.91%, respectively, and to 5.81% on a blended basis over the 8.0 year weighted average maturity.

62

2006 Guidance

Today the Company updated its guidance for 2006. The Company expects diluted FFO to be within a range of $5.30 to $5.35 per share for the year ending December 31, 2006, and diluted net income available to common stockholders to be within a range of $1.79 to $1.84 per share.

The following table provides the reconciliation of the range of estimated diluted net income available to common stockholders per share to estimated diluted FFO per share.

For the year ending December 31, 2006
	Low End			High End
Estimated diluted net income available to common stockholders per share	$	1.79		$	1.84
Depreciation and amortization including our share of joint ventures	3.74			3.74
Gain on sales of interests in unconsolidated entities	(0.15		)	(0.15		)
Impact of additional dilutive securities	(0.08		)	(0.08		)
Estimated diluted FFO per share	$	5.30		$	5.35

Conference Call

The Company will provide an online simulcast of its quarterly conference call at www.simon.com (Investor Relations section), www.earnings.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 10:00 a.m. Eastern Daylight Time tomorrow, August 1, 2006. An online replay will be available for approximately 90 days at www.simon.com, www.earnings.com, and www.streetevents.com. A fully searchable podcast of the conference call will also be available at www.REITcafe.com shortly after completion of the call.

Supplemental Materials

The Company will publish a supplemental information package which will be available at www.simon.com in the Investor Relations section, Financial Information tab. It will also be furnished to the SEC as part of a current report on Form 8-K. If you wish to receive a copy via mail or email, please call 800-461-3439.

Forward-Looking Statements

Certain statements made in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to:  the Company’s ability to meet debt service requirements, the availability of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, the ability to hedge interest rate risk, risks associated with the acquisition, development and expansion of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, competitive market forces, risks related to international activities, insurance costs and

63

coverage, impact of terrorist activities, inflation and maintenance of REIT status. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its most recent Annual Report on Form 10-K that could cause the Company’s actual results to differ materially from the forward-looking statements that the Company makes. The Company may update that discussion in subsequent quarterly reports, but otherwise the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

Funds from Operations (“FFO”)

The Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States (“GAAP”). The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of real estate investment trusts (“REITs”) and provides a relevant basis for comparison among REITs. A reconciliation of GAAP reported net income to FFO is provided in the financial statement section of this press release.

About Simon

Simon Property Group, Inc., an S&P 500 company headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet® centers and community/lifestyle centers. The Company’s current total market capitalization is approximately $42 billion. Through its subsidiary partnership, it currently owns or has an interest in 284 properties in the United States containing an aggregate of 200 million square feet of gross leasable area in 39 states plus Puerto Rico. Simon also owns interests in 52 European shopping centers in France, Italy, and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico. Additional Simon Property Group information is available at www.simon.com. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG.

64

SIMON
Consolidated Statements of Operations
Unaudited
(In thousands)

	For the Three  Months Ended						For the Six  Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
REVENUE:
Minimum rent	$	485,826		$	467,398		$	973,914		$	930,549
Overage rent	15,297			14,447			31,356			27,792
Tenant reimbursements	226,777			212,720			447,812			422,953
Management fees and other revenues	19,399			17,505			39,568			37,185
Other income	51,439			40,014			93,737			75,575
Total revenue	798,738			752,084			1,586,387			1,494,054
EXPENSES:
Property operating	107,257			99,710			213,204			200,085
Depreciation and amortization	211,363			204,494			420,810			414,792
Real estate taxes	70,404			71,123			152,209			142,617
Repairs and maintenance	24,839			24,629			50,794			52,613
Advertising and promotion	20,541			18,641			37,943			36,762
Provision for (recovery of) credit losses	4,466			(1,696		)	4,460			604
Home and regional office costs	32,652			30,802			62,988			57,992
General and administrative	5,005			4,454			9,498			8,246
Other	12,162			11,104			25,228			21,925
Total operating expenses	488,689			463,261			977,134			935,636
OPERATING INCOME	310,049			288,823			609,253			558,418
Interest expense	200,743			197,782			404,815			392,986
Income before minority interest	109,306			91,041			204,438			165,432
Minority interest	(3,433		)	(2,253		)	(4,358		)	(5,560		)
Income tax expense of taxable REIT subsidiaries	(3,220		)	(2,734		)	(4,859		)	(7,420		)
Income before unconsolidated entities	102,653			86,054			195,221			152,452
Income from unconsolidated entities and beneficial interests	19,882			14,456			49,805			32,383
Gain on sales of interests in unconsolidated entities	7,599			2,134			41,949			12,607
Income from continuing operations	130,134			102,644			286,975			197,442
Results of operations from discontinued operations	(135		)	250			56			3,415
Gain on disposal or sale of discontinued operations, net	112			119,692			84			119,780
Income before allocation to limited partners	130,111			222,586			287,115			320,637
LESS:
Limited partners’ interest in the Operating Partnership	21,920			42,018			49,508			57,681
Preferred distributions of the Operating Partnership	6,928			7,350			13,754			14,274
NET INCOME	101,263			173,218			223,853			248,682
Preferred dividends	(18,395		)	(18,407		)	(36,968		)	(36,804		)
NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS	$	82,868		$	154,811		$	186,885		$	211,878

65

SIMON
Per Share Data
Unaudited

	For the Three  Months Ended					For the Six  Months Ended
	June 30,					June 30,
	2006			2005		2006			2005
Basic Earnings Per Common Share:
Income from continuing operations	$	0.37		$	0.27	$	0.85		$	0.52
Discontinued operations—results of operations and gain on disposal or sale, net	0.00			0.43		0.00			0.44
Net income available to common stockholders	$	0.37		$	0.70	$	0.85		$	0.96
Percentage Change	-47.1		%			-11.5		%
Diluted Earnings Per Common Share:
Income from continuing operations	$	0.37		$	0.27	$	0.84		$	0.52
Discontinued operations—results of operations and gain on disposal or sale, net	0.00			0.43		0.00			0.44
Net income available to common stockholders	$	0.37		$	0.70	$	0.84		$	0.96
Percentage Change	-47.1		%			-12.5		%

66

SIMON
Consolidated Balance Sheets
Unaudited

(In thousands, except as noted)

	June 30, 2006			December 31, 2005
ASSETS:
Investment properties, at cost	$	22,004,082		$	21,745,309
Less—accumulated depreciation	4,172,347			3,809,293
	17,831,735			17,936,016
Cash and cash equivalents	330,285			337,048
Tenant receivables and accrued revenue, net	307,969			357,079
Investment in unconsolidated entities, at equity	1,523,529			1,562,595
Deferred costs and other assets	922,349			938,301
Total assets	$	20,915,867		$	21,131,039
LIABILITIES:
Mortgages and other indebtedness	$	14,133,592		$	14,106,117
Accounts payable, accrued expenses, intangibles, and deferred revenue	976,823			1,092,334
Cash distributions and losses in partnerships and joint ventures, at equity	224,984			194,476
Other liabilities, minority interest and accrued dividends	176,278			163,524
Total liabilities	15,511,677			15,556,451
COMMITMENTS AND CONTINGENCIES
LIMITED PARTNERS’ INTEREST IN THE OPERATING PARTNERSHIP	833,363			865,565
LIMITED PARTNERS’ PREFERRED INTEREST IN THE OPERATING PARTNERSHIP	400,516			401,727
STOCKHOLDERS’ EQUITY
CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000total sharesauthorized, $.0001 par value, 237,996,000 shares of excess common stock):
All series of preferred stock, 100,000,000 shares authorized, 25,420,042 and 25,632,122 issued and outstanding, respectively, and with liquidation values of $1,071,002 and $1,081,606, respectively	1,069,388			1,080,022
Common stock, $.0001 par value, 400,000,000 shares authorized, 225,536,979 and 225,165,236 issued and outstanding, respectively	23			23
Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding	—			—
Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding	—			—
Capital in excess of par value	4,975,936			4,998,723
Accumulated deficit	(1,699,813		)	(1,551,179		)
Accumulated other comprehensive income	18,453			9,793
Common stock held in treasury at cost, 4,379,245 and 4,815,655 shares, respectively	(193,676		)	(230,086		)
Total stockholders’ equity	4,170,311			4,307,296
Total liabilities and stockholders’ equity	$	20,915,867		$	21,131,039

67

SIMON
Joint Venture Statements of Operations
Unaudited

(In thousands)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2006			2005			2006			2005
REVENUE:
Minimum rent	$	272,628		$	260,732		$	536,645		$	512,008
Overage rent	18,337			19,637			32,691			31,603
Tenant reimbursements	134,706			129,998			262,716			256,138
Other income	37,025			32,897			69,771			57,345
Total revenue	462,696			443,264			901,823			857,094
EXPENSES:
Property operating	89,738			90,873			177,219			171,319
Depreciation and amortization	83,147			84,015			159,119			159,490
Real estate taxes	33,447			32,675			67,389			65,291
Repairs and maintenance	20,786			18,119			41,724			39,471
Advertising and promotion	7,573			8,123			14,715			15,824
Provision for credit losses	1,236			1,775			1,662			5,090
Other	36,602			29,266			60,470			53,682
Total operating expenses	272,529			264,846			522,298			510,167
OPERATING INCOME	190,167			178,418			379,525			346,927
Interest expense	110,082			98,314			217,628			194,724
Income Before Gain on Sale of Asset	80,085			80,104			161,897			152,203
Gain on sale of asset	94			—			94			—
Income Before Unconsolidated Entities	80,179			80,104			161,991			152,203
Gain (Loss) from unconsolidated entities	145			(637		)	239			(1,892		)
Income from Continuing Operations	80,324			79,467			162,230			150,311
Income from discontinued joint venture interests (B)	175			214			502			138
Gain (loss) on disposal or sale of discontinued operations, net	21,151		(C)	(34		)	20,704		(C)	98,359		(D)
NET INCOME	$	101,650		$	79,647		$	183,436		$	248,808
Third-party investors’ share of net income	$	59,863		$	49,305		$	109,439		$	141,067
Our share of net income	41,787			30,342			73,997			107,741
Amortization of excess investment	(12,374		)	(15,903		)	(24,892		)	(26,179		)
Income from Beneficial Interests	1,045			—			11,276		(A)	—
Write-off of investment related to properties sold	(2,977		)(C)	945			(2,977		)(C)	(37,778		)(D)
Our share of net gain related to properties sold	(7,599		)(C)	(928		)	(7,599		)(C)	(11,401		)(D)
Income from unconsolidated entities and beneficial interests	$	19,882		$	14,456		$	49,805		$	32,383

68

SIMON
Joint Venture Balance Sheets
Unaudited
(In thousands)

	June 30,		December 31,
	2006		2005
ASSETS:
Investment properties, at cost	$	10,277,051		$	9,915,521
Less - accumulated depreciation	2,109,181			1,951,749
	8,167,870			7,963,772
Cash and cash equivalents	319,241			334,714
Tenant receivables	200,721			207,153
Investment in unconsolidated entities, at equity	175,532			135,914
Deferred costs and other assets	346,652			304,825
Total assets	$	9,210,016		$	8,946,378
LIABILITIES AND PARTNERS’ EQUITY:
Mortgages and other indebtedness	$	7,954,275		$	7,479,359
Accounts payable, accrued expenses and deferred revenue	417,695			403,390
Other liabilities	212,946			189,722
Total liabilities	8,584,916			8,072,471
Preferred units	67,450			67,450
Partners’ equity	557,650			806,457
Total liabilities and partners’ equity	$	9,210,016		$	8,946,378
Our Share of:
Total assets	$	3,965,479		$	3,765,258
Partners’ equity	389,439			429,942
Add: Excess Investment(E)	909,106			938,177
Our net investment in joint ventures	$	1,298,545		$	1,368,119
Mortgages and other indebtedness	$	3,433,708		$	3,169,662

69

SIMON
Footnotes to Financial Statements
Unaudited

Notes:

(A)Represents beneficial interest in earnings from Mall of America for the period from August 2004 through and including the second quarter of 2006 attributable to a transfer from a Simon family affiliate of certain cash flow distributions, capital transaction proceeds and related profits and losses.

(B)Discontinued joint venture interests represent those assets and  partnership interests that have been sold.

(C)On April 25, 2006, Great Northeast Plaza, a community center, was sold.

(D)On January 11, 2005, Metrocenter, a regional mall in Phoenix, Arizona was sold.

(E)Excess investment represents the unamortized difference of the Company’s investment over equity in the underlying net assets of the partnerships and joint ventures. The Company generally amortizes excess investment over the life of the related properties, typically no greater than 40 years, and the amortization is included in income from unconsolidated entities.

70

SIMON

Reconciliation of Net Income to FFO (1)
Unaudited
(In thousands, except as noted)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net Income(2)(3)(4)(5)	$	101,263		$	173,218		$	223,853		$	248,682
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership	28,848			49,368			63,262			71,955
Depreciation and amortization from consolidated properties, beneficial interests and discontinued operations	210,448			205,858			423,990			417,576
Simon’s share of depreciation and amortization from unconsolidated entities	52,946			55,567			103,078			103,298
Tax provision related to sale	0			1,533			0			1,533
Gain on sales of real estate and discontinued operations	(7,711		)	(121,826		)	(42,033		)	(132,387		)
Minority interest portion of depreciation and amortization	(2,031		)	(2,792		)	(4,131		)	(4,841		)
Preferred distributions and dividends	(25,323		)	(25,757		)	(50,722		)	(51,078		)
FFO of the Simon Portfolio	$	358,440		$	335,169		$	717,297		$	654,738
Per Share Reconciliation:
Diluted net income available to common stockholders per share	$	0.37		$	0.70		$	0.84		$	0.96
Adjustments to net income to arrive at FFO:
Depreciation and amortization from consolidated properties and beneficial interests, and the Company’s share of depreciation and amortization from unconsolidated entities, net of minority interest portion of depreciation and amortization	0.94			0.92			1.88			1.83
Gain on sales of real estate and discontinued operations	(0.03		)	(0.43		)	(0.15		)	(0.47		)
Tax provision related to gain on sale	0.00			0.01			0.00			0.01
Impact of additional dilutive securities for FFO per share	(0.02		)	(0.02		)	(0.05		)	(0.02		)
Diluted FFO per share	$	1.26		$	1.18		$	2.52		$	2.31
Details for per share calculations:
FFO of the Simon Portfolio	$	358,440		$	335,169		$	717,297		$	654,738
Adjustments for dilution calculation:
Impact of preferred stock and preferred unit conversions and option exercises (6)	14,121			14,209			28,315			28,421
Diluted FFO of the Simon Portfolio	372,561			349,378			745,612			683,159
Diluted FFO allocable to unitholders	(73,724		)	(70,309		)	(147,642		)	(138,244		)
Diluted FFO allocable to common stockholders	$	298,837		$	279,069		$	597,970		$	544,915
Basic weighted average shares outstanding	220,990			220,228			220,787			220,306
Adjustments for dilution calculation:
Effect of stock options	885			883			930			887
Impact of Series C preferred unit conversion	1,047			1,078			1,054			1,105
Impact of Series I preferred unit conversion	3,278			3,424			3,276			3,426
Impact of Series I preferred stock conversion	10,826			10,682			10,839			10,680
Diluted weighted average shares outstanding	237,026			236,295			236,886			236,404
Weighted average limited partnership units outstanding	58,474			59,535			58,488			59,975
Diluted weighted average shares and units outstanding	295,500			295,830			295,374			296,379
Basic FFO per share	$	1.28		$	1.20		$	2.57		$	2.34
Percent Increase	6.7		%				9.8		%
Diluted FFO per share	$	1.26		$	1.18		$	2.52		$	2.31
Percent Increase	6.8		%				9.1		%

71

SIMON

Footnotes to Reconciliation of Net Income to FFO
Unaudited

Notes:

(1)The Company considers FFO a key measure of its operating performance that is not specifically defined by GAAP and believes that FFO is helpful to investors because it is a widely recognized measure of the performance of REITs and provides a relevant basis for comparison among REITs. The Company also uses this measure internally to measure the operating performance of the portfolio. The Company’s computation of FFO may not be comparable to FFO reported by other REITs.

As defined by NAREIT, FFO is consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sales of real estate, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. The Company has adopted NAREIT’s clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting change or resulting from the sale of depreciable real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.

(2)Includes the Company’s share of gains on land sales of $19.7 million and $8.8 million for the three months ended June 30, 2006 and 2005, respectively, and $26.3 million and $17.9 million for the six months ended June 30, 2006 and 2005, respectively.

(3)Includes the Company’s share of straight-line adjustments to minimum rent of $1.5 million and $5.4 million for the three months ended June 30, 2006 and 2005, respectively, and $5.3 million and $9.5 million for the six months ended June 30, 2006 and 2005, respectively.

(4)Includes the Company’s share of the fair market value of leases from acquisitions of $17.8 million and $13.5 million for the three months ended June 30, 2006 and 2005, respectively, and $35.2 million and $27.1 million for the six months ended June 30, 2006 and 2005, respectively.

(5)Includes the Company’s share of debt premium amortization of $6.7 million and $8.1 million for the three months ended June 30, 2006 and 2005, respectively, and $13.4 million and $16.2 million for the six months ended June 30, 2006 and 2005, respectively.

(6)Includes dividends and distributions of Series I preferred stock and Series C and Series I preferred units.

72