Simon Property Group Reports Third Quarter Results, Announces Increase In Quarterly Dividend And Raises 2012 Guidance

  Simon Property Group Reports Third Quarter Results, Announces Increase In
                 Quarterly Dividend And Raises 2012 Guidance

PR Newswire

INDIANAPOLIS, Oct. 25, 2012

INDIANAPOLIS, Oct. 25, 2012 /PRNewswire-FirstCall/ -- Simon Property Group,
Inc. (the "Company" or "Simon") (NYSE:SPG) today reported results for the
quarter and nine months ended September 30, 2012.

Results for the Quarter

  oFunds from Operations ("FFO") was $720.1 million, or $1.99 per diluted
    share, as compared to $606.2 million, or $1.71 per diluted share, in the
    prior year period. The increase on a per share basis was 16.4%.
  oNet income attributable to common stockholders was $254.9 million, or
    $0.84 per diluted share, as compared to $274.0 million, or $0.93 per
    diluted share, in the prior year period. 2011 results included a net gain
    from acquisition and disposition activities of $0.22 per share.

Results for the Nine Months

  oFunds from Operations ("FFO") was $2.057 billion, or $5.70 per diluted
    share, as compared to $1.760 billion, or $4.97 per diluted share, in the
    prior year period. The increase on a per share basis was 14.7%.
  oNet income attributable to common stockholders was $1.116 billion, or
    $3.71 per diluted share, as compared to $658.5 million, or $2.24 per
    diluted share, in the prior year period.

"It was an excellent quarter for our Company," said David Simon, Chairman and
Chief Executive Officer. "We generated 16.4% growth in FFO and continued to
strengthen our retail real estate platform through significant development
activities. The quality of our Mall and Premium Outlet portfolio is evident
with continued increases in occupancy and sales and 4.7% growth in quarterly
comparable property net operating income. We are pleased to raise our
dividend for the fifth consecutive quarter and once again increase guidance
for 2012."

U.S. Operational Statistics^(^1)

                        As of           As of                   %
                        September 30,   September 30, 2011      Increase
                        2012
Occupancy^(2)           94.6%           93.8%            + 80 basis points
Total Sales per Sq. Ft. $562            $514             9.3%
^ (3)
Base Minimum Rent per   $40.33          $38.84           3.8%
Sq. Ft. ^ (2)
(1) Combined information for U.S. Malls and Premium Outlets. 2011 statistics
have been restated to include Malls previously owned by The Mills Limited
Partnership, now owned by Simon Property Group, L.P., and Premium Outlets
acquired in the 2010 acquisition of Prime Outlets Acquisition Company.
(2) Represents mall stores in Malls and all owned square footage in Premium
Outlets.
(3) Rolling 12 month sales per square foot for mall stores less than 10,000
square feet in Malls and all owned square footage in Premium Outlets.

Dividends

Today the Company announced that the Board of Directors declared a quarterly
common stock dividend of $1.10 per share, an increase of 4.8% from the
previous quarter and an increase of 22.2%  from the year earlier period. The
dividend is payable on November 30, 2012 to stockholders of record on November
16, 2012.

The Company also declared the quarterly dividend on its 8 3/8% Series J
Cumulative Redeemable Preferred Stock (NYSE:SPGPrJ) of $1.046875 per share,
payable on December 31, 2012 to stockholders of record on December 17, 2012.

Development Activity

On October 19^th, the Company opened a 350,000 square foot upscale outlet
center owned in a 50/50 joint venture with Tanger Factory Outlet Centers, Inc.
in Texas City, Texas. The center, which was 97% leased at opening, is located
approximately 30 miles south of downtown Houston and 20 miles north of
Galveston on highly-traveled Interstate 45 at Exit 17 at Holland Road.

The Company started construction on St. Louis Premium Outlets on July 11th.
The project is located in Chesterfield, Missouri and is a part of Chesterfield
Blue Valley, a mixed-use development to include office space, hotel,
restaurant and entertainment venues. Located on the south side of I-64/US
Highway 40 east of the Daniel Boone Bridge, the center's first phase of
350,000 square feet and 85 stores will open in September of 2013. The Company
owns a 60% interest in this project, which is a joint venture with Woodmont
Outlets.

Construction is expected to commence shortly on the Company's first outlet
center in Brazil. The project is located northwest of Sao Paulo, Brazil and is
being developed in a 50/50 joint venture with BR Malls Participacoes S.A. The
310,000 square foot center is scheduled to open in November of 2013.

Construction continues on several new Premium Outlets:

  oIn Shisui (Chiba), Japan – a 230,000 square foot upscale outlet center
    located one hour from central Tokyo and 15 minutes from Narita
    International Airport. The center is scheduled to open in April of 2013
    with approximately 110 stores, including international brands, Japanese
    brands and restaurants. The Company owns a 40% interest in this project,
    its ninth Premium Outlet Center in Japan.
  oIn Chandler (Phoenix), Arizona – an upscale outlet center adjacent to the
    Wild Horse Pass Hotel & Casino located on Interstate 10. Phase I of the
    project will be comprised of 360,000 square feet housing approximately 90
    outlet stores featuring high-quality designer and name brands. The Company
    owns 100% of this project which is scheduled to open in April of 2013.
  oIn Halton Hills (Toronto), Canada – a 360,000 square foot upscale outlet
    center that will house over 100 high quality outlet stores. Toronto
    Premium Outlets is expected to be the Canadian entry point for selected
    upscale, U.S. retailers and designer brands. The Company owns a 50%
    interest in this project which is scheduled to open in August of 2013.
  oIn Busan, Korea – a 340,000 square foot upscale outlet center that will
    serve southeastern Korea, including the cities of Busan, Ulsan and Daegu,
    as well as local and overseas visitors. The center is scheduled to open in
    September of 2013. The Company owns a 50% interest in this project, which
    will be its third Premium Outlet Center in Korea.

Redevelopment and expansion projects are underway at 24 properties in the U.S.
and one property in Japan. During the first nine months of 2012, 34 new
anchor and big box tenants opened in the Company's U.S. portfolio and more
than 40 are currently scheduled to open in the fourth quarter of 2012 and
2013.

Capital Markets

On July 20^th, the Company redeemed 2.0 million limited partnership units of
its majority-owned operating partnership subsidiary, Simon Property Group,
L.P. (the "Operating Partnership"), owned by an affiliate of JCPenney for
$124.00 per unit in cash. 

Sale of Investment in Marketable Securities

On October 23^rd, the Company completed the sale of its entire investment in
the marketable securities of Capital Shopping Centres Group PLC (35.4 million
shares) and Capital & Counties Properties PLC (38.9 million shares) generating
proceeds of approximately $327 million.

2012 Guidance

Today the Company updated and raised its guidance for 2012, stating that it
expects FFO, excluding activity related to investments in marketable
securities, will be within a range of $7.80 to $7.85 per diluted share for the
year ending December 31, 2012, and diluted net income will be within a range
of $4.61 to $4.66 per share.

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

For the year ending December 31,
2012
                                                                              Low   High
                                                                              End
                                                                                     End
Estimated diluted net income available to common stockholders per share   $4.61  $4.66
Gain upon acquisition of controlling interests, sale or disposal of assets
and
 interests in unconsolidated entities, and impairment charge on investment
 in unconsolidated entities,                                               (1.36) (1.36)
net
Depreciation and amortization including the Company's share of equity
 method investments                    4.55   4.55
Estimated diluted FFO per                                                     $7.80  $7.85
share

Conference Call

The Company will provide an online simulcast of its quarterly conference call
at www.simon.com (Investors tab), 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 11:00 a.m. Eastern Time (New
York time) today, October 25, 2012. 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.

Supplemental Materials and Website

The Company has prepared a supplemental information package which is available
at www.simon.com in the Investors section, Financial Information tab. It has
also been 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.

We routinely post important information for investors on our website,
www.simon.com, in the "Investors" section. We use this website as a means of
disclosing material, non-public information and for complying with our
disclosure obligations under Regulation FD. Accordingly, investors should
monitor the Investor Relations section of our website, in addition to
following our press releases, SEC filings, public conference calls,
presentations and webcasts. The information contained on, or that may be
accessed through, our website is not incorporated by reference into, and is
not a part of, this document.

Non-GAAP Financial Measures

This press release includes FFO and comparable property net operating income
growth, which are adjusted from financial performance measures defined by
accounting principles generally accepted in the United States ("GAAP").
Reconciliations of these measures to the most directly comparable GAAP
measures are included within this press release or the Company's supplemental
information package. FFO and comparable property net operating income growth
are financial performance measures widely used in the REIT industry.

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, uncertainties and
other factors. Such factors include, but are not limited to: the Company's
ability to meet debt service requirements, the availability and terms of
financing, changes in the Company's credit rating, changes in market rates of
interest and foreign exchange rates for foreign currencies, changes in value
of investments in foreign entities, the ability to hedge interest rate and
currency risk, risks associated with the acquisition, development, expansion,
leasing and management of properties, general risks related to retail real
estate, the liquidity of real estate investments, environ-mental 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, intensely competitive market environment in the
retail industry, risks related to international activities, insurance costs
and coverage, terrorist activities, changes in economic and market conditions
and maintenance of our status as a real estate investment trust. The Company
discusses these and other risks and uncertainties under the heading "Risk
Factors" in its annual and quarterly periodic reports filed with the SEC. The
Company may update that discussion in its periodic reports, but 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.

Simon Property Group

Simon Property Group, Inc. (NYSE:SPG) is an S&P 100 company and the largest
real estate company in the world. The Company currently owns or has an
interest in 333 retail real estate properties in North America and Asia
comprising 242 million square feet. We are headquartered in Indianapolis,
Indiana and employ approximately 5,500 people in the U.S. For more
information, visit the Simon Property Group website at www.simon.com.

Simon Property Group, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
                                  For the Three Months  For the Nine Months
                                  Ended September 30,   Ended September 30,
                                  2012       2011       2012        2011
REVENUE:
 Minimum rent                    $ 759,039  $ 664,724  $2,207,334  $1,958,626
 Overage rent                    51,170     36,653     110,277     75,774
 Tenant reimbursements           342,443    294,305    979,300     861,352
 Management fees and other       32,294     31,249     92,928      93,001
revenues
 Other income                    43,671     47,429     145,813     146,341
 Total revenue                 1,228,617  1,074,360  3,535,652   3,135,094
EXPENSES:
 Property operating              132,378    122,446    353,136     331,013
 Depreciation and amortization   310,244    260,802    907,217     788,410
 Real estate taxes               105,694    87,264     311,173     273,952
 Repairs and maintenance         26,556     24,465     78,862      79,957
 Advertising and promotion       28,114     25,773     77,762      72,619
 (Recovery of) provision for     (1,180)    1,501      5,271       3,180
credit losses
 Home and regional office costs  27,057     30,525     95,019      91,035
 General and administrative      14,165     14,974     42,787      31,614
 Other                           24,637     23,012     66,510      61,254
 Total operating expenses      667,665    590,762    1,937,737   1,733,034
OPERATING INCOME                  560,952    483,598    1,597,915   1,402,060
Interest expense                  (288,896)  (244,384)  (835,532)   (737,018)
Income tax benefit (expense) of   97         (860)      (1,786)     (2,706)
taxable REIT subsidiaries
Income from unconsolidated        37,129     17,120     96,613      49,561
entities
(Loss) gain upon acquisition of
controlling interests,
sale or disposal of assets and
interests in unconsolidated
entities, and impairment charge
on investment
in unconsolidated entities, net   (2,911)    78,307     491,926     92,072
(A)
CONSOLIDATED NET INCOME           306,371    333,781    1,349,136   803,969
Net income attributable to        50,616     58,947     230,857     142,934
noncontrolling interests
Preferred dividends               834        834        2,503       2,503
NET INCOME ATTRIBUTABLE TO COMMON $ 254,921  $ 274,000  $1,115,776  $ 658,532
STOCKHOLDERS
BASIC EARNINGS PER COMMON SHARE:
 Net income attributable to    $ 0.84     $ 0.93     $ 3.71      $ 2.24
common stockholders
DILUTED EARNINGS PER COMMON
SHARE:
 Net income attributable to    $ 0.84     $ 0.93     $ 3.71      $ 2.24
common stockholders



Simon Property Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
                                                   September 30,  December 31,
                                                   2012           2011
ASSETS:
 Investment properties at cost                  $ 34,366,668   $29,657,046
 Less - accumulated depreciation            9,101,007      8,388,130
                                                   25,265,661     21,268,916
 Cash and cash equivalents                      452,712        798,650
 Tenant receivables and accrued revenue, net    456,397        486,731
 Investment in unconsolidated entities, at      2,013,651      1,378,084
equity
 Investment in Klepierre, at equity             1,945,128      -
 Deferred costs and other assets                1,844,428      1,633,544
 Notes receivable from related party            -              651,000
 Total assets                               $ 31,977,977   $26,216,925
LIABILITIES:
 Mortgages and other indebtedness               $ 22,569,634   $18,446,440
 Accounts payable, accrued expenses,            1,204,438      1,091,712
intangibles, and deferred revenues
 Cash distributions and losses in partnerships  728,470        695,569
and joint ventures, at equity
 Other liabilities                              300,388        170,971
 Total liabilities                          24,802,930     20,404,692
Commitments and contingencies
Limited partners' preferred interest in the
Operating Partnership and noncontrolling
 redeemable interests in properties             354,006        267,945
EQUITY:
Stockholders' Equity
 Capital stock (850,000,000 total shares
authorized, $ 0.0001 par value, 238,000,000
 shares of excess common stock, 100,000,000
authorized shares of preferred stock):
 Series J 8 3/8% cumulative redeemable preferred stock,
1,000,000 shares authorized,
 796,948 issued and outstanding with a  44,801         45,047
liquidation value of $ 39,847
 Common stock, $ 0.0001 par value, 511,990,000 shares
authorized, 313,103,803 and
 297,725,698 issued and outstanding,    31             30
respectively
 Class B common stock, $ 0.0001 par value,
10,000 shares authorized, 8,000
 issued and outstanding                 -              -
 Capital in excess of par value                 9,054,730      8,103,133
 Accumulated deficit                            (3,057,328)    (3,251,740)
 Accumulated other comprehensive loss           (64,776)       (94,263)
 Common stock held in treasury at cost,         (135,781)      (152,541)
3,762,595 and 3,877,448 shares, respectively
 Total stockholders' equity                 5,841,677      4,649,666
Noncontrolling interests                           979,364        894,622
 Total equity                               6,821,041      5,544,288
 Total liabilities and equity               $ 31,977,977   $26,216,925



Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Statements of Operations
(Dollars in thousands)
                                For the Three Months  For the Nine Months
                                Ended September 30,   Ended September 30,
                                2012       2011       2012         2011
Revenue:
 Minimum rent                  $ 370,183  $ 356,155  $ 1,091,701  $ 1,046,992
 Overage rent                  44,002     36,923     128,622      94,114
 Tenant reimbursements         176,544    169,911    508,698      490,276
 Other income                  34,754     36,041     121,686      107,449
 Total revenue               625,483    599,030    1,850,707    1,738,831
Operating Expenses:
 Property operating            125,162    123,506    351,963      339,699
 Depreciation and amortization 125,512    125,260    374,333      361,345
 Real estate taxes             45,068     40,897     132,618      127,831
 Repairs and maintenance       15,418     14,954     45,269       46,005
 Advertising and promotion     11,706     12,632     39,600       37,123
 (Recovery of) provision for   (646)      1,411      (247)        3,624
credit losses
 Other                         36,089     37,100     128,134      109,765
 Total operating expenses    358,309    355,760    1,071,670    1,025,392
Operating Income                267,174    243,270    779,037      713,439
Interest expense                (148,891)  (149,839)  (451,581)    (441,396)
Loss from unconsolidated        (316)      (596)      (947)        (1,054)
entities
Income from Continuing          117,967    92,835     326,509      270,989
Operations
Loss from operations of
discontinued joint venture      (1,978)    (17,431)   (20,769)     (39,646)
interests
(Loss) gain on disposal of      (4,904)    78         (4,904)      15,583
discontinued operations, net
Net Income                      $ 111,085  $ 75,482   $ 300,836    $ 246,926
Third-Party Investors' Share of $ 66,308   $ 45,271   $ 163,108    $ 151,741
Net Income
Our Share of Net Income         44,777     30,211     137,728      95,185
Amortization of Excess          (21,726)   (13,052)   (55,059)     (37,832)
Investment (B)
Our Share of Loss (Gain) on
Sale or Disposal of Assets and
 Interests in Unconsolidated   9,245      (39)       9,245        (7,792)
Entities, net
Income from Unconsolidated      $ 32,296   $ 17,120   $ 91,914     $ 49,561
Entities (C)
Note: The above financial presentation does not include any information
related to our investment in Klepierre.
For additional information, see footnote C attached hereto.



Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Balance Sheets
(Dollars in thousands)
                                                   September 30,  December 31,
                                                   2012           2011
Assets:
Investment properties, at cost                     $ 14,128,861   $ 20,481,657
Less - accumulated depreciation                    4,680,199      5,264,565
                                                   9,448,662      15,217,092
Cash and cash equivalents                          554,116        806,895
Tenant receivables and accrued revenue, net        235,507        359,208
Investment in unconsolidated entities, at equity   39,539         133,576
Deferred costs and other assets                    352,392        526,101
Total assets                                       $ 10,630,216   $ 17,042,872
Liabilities and Partners' Deficit:
Mortgages and other indebtedness                   $ 11,106,661   $ 15,582,321
Accounts payable, accrued expenses, intangibles,   607,805        775,733
and deferred revenue
Other liabilities                                  326,564        981,711
Total liabilities                                  12,041,030     17,339,765
Preferred units                                    67,450         67,450
Partners' deficit                                  (1,478,264)    (364,343)
Total liabilities and partners' deficit            $ 10,630,216   $ 17,042,872
Our Share of:
Partners' deficit                                  $ (675,359)    $ (32,000)
Add: Excess Investment (B)                         1,960,540      714,515
Our net Investment in unconsolidated entities      $ 1,285,181    $ 682,515
Note: The above financial presentation does not include any information
related to our investment in
 Klepierre. For additional information, see footnote C attached
hereto.



Simon Property Group, Inc. and Subsidiaries
Unaudited Reconciliation of Non-GAAP Financial Measures (D)
(Amounts in thousands, except per share amounts)
Reconciliation of Consolidated Net Income to FFO
                                For the Three Months    For the Nine Months
                                Ended                   Ended
                                September 30,           September 30,
                                2012       2011         2012        2011
Consolidated Net Income (E) (F) $        $        $           $  
(G) (H)                         306,371    333,781      1,349,136  803,969
Adjustments to Consolidated Net
Income to Arrive at FFO:
    Depreciation and
    amortization from
    consolidated
     properties             306,612    257,172      896,147     777,489
    Simon's share of
    depreciation and
    amortization from
     unconsolidated
    entities, including         110,188    98,601       321,318     286,358
    Klepierre
    Loss (gain) upon
    acquisition of controlling
    interests, sale or disposal
     of assets and
    interests in unconsolidated
    entities, and
     impairment charge on
    investment in               2,911      (78,307)     (491,926)   (92,072)
    unconsolidated entities,
    net
    Net income attributable to
    noncontrolling interest
    holders in
     properties             (2,464)    (1,829)      (6,427)     (5,879)
    Noncontrolling interests
    portion of depreciation and (2,253)    (1,870)      (6,835)     (6,080)
    amortization
    Preferred distributions and (1,313)    (1,313)      (3,939)     (3,939)
    dividends
FFO of the Operating            $        $        $           $
Partnership                     720,052    606,235      2,057,474  1,759,846
Diluted net income per share to
diluted FFO per share
reconciliation:
Diluted net income per share    $      $       $       $    
                                0.84       0.93      3.71       2.24
    Depreciation and
    amortization from
    consolidated properties
     and Simon's share of
    depreciation and
    amortization from
     unconsolidated
    entities, including
    Klepierre, net of
    noncontrolling
     interests portion of
    depreciation and            1.14       1.00         3.35        2.99
    amortization
    Loss (gain) upon
    acquisition of controlling
    interests, sale or disposal
     of assets and
    interests in unconsolidated
    entities, and
     impairment charge on
    investment in               0.01       (0.22)       (1.36)      (0.26)
    unconsolidated entities,
    net
Diluted FFO per share           $      $       $       $    
                                1.99       1.71      5.70       4.97
Details for per share
calculations:
FFO of the Operating            $        $        $           $
Partnership                     720,052    606,235      2,057,474  1,759,846
Adjustments for dilution
calculation:
Diluted FFO of the Operating    720,052    606,235      2,057,474   1,759,846
Partnership
Diluted FFO allocable to        (116,207)  (103,971)    (342,704)   (300,458)
unitholders
Diluted FFO allocable to common $        $        $           $
stockholders                    603,845    502,264      1,714,770  1,459,388
Basic weighted average shares   304,108    293,736      301,029     293,397
outstanding
Adjustments for dilution
calculation:
 Effect of stock options      1          22           1           88
Diluted weighted average shares 304,109    293,758      301,030     293,485
outstanding
Weighted average limited        58,524     60,809       60,162      60,423
partnership units outstanding
Diluted weighted average shares 362,633    354,567      361,192     353,908
and units outstanding
Basic FFO per Share             $      $       $       $    
                                1.99       1.71      5.70       4.97
 Percent Change              16.4%                   14.7%
Diluted FFO per Share           $      $       $       $    
                                1.99       1.71      5.70       4.97
 Percent Change              16.4%                   14.7%



Simon Property Group, Inc. and Subsidiaries
Footnotes to Unaudited Reconciliation of Non-GAAP Financial Measures
Notes:
      Primarily consists of 2012 and 2011 non-cash gains resulting from our
(A)   acquisition activity and the remeasurement of our previously held
      interest to fair value for those properties in which we now have a
      controlling interest.
      Excess investment represents the unamortized difference of the Company's
(B)   investment over equity in the underlying net assets of the related
      partnerships and joint ventures shown therein. The Company generally
      amortizes excess investment over the life of the related properties.
      The Unaudited Joint Venture Statements of Operations do not include any
      operations or our share of net income or excess investment amortization
      related to our investment in Klepierre. Amounts included in Footnotes E
(C)   - H below exclude our share of related activity for our investment in
      Klepierre. For further information, reference should be made to
      financial information in Klepierre's public filings and additional
      discussion and analysis in our Form 10-Q.
      This report contains measures of financial or operating performance that
      are not specifically defined by GAAP, including FFO and FFO per share.
      FFO is a performance measure that is standard in the REIT business. We
      believe FFO provides investors with additional information concerning
(D)   our operating performance and a basis to compare our performance with
      those of other REITs. We also use these measures internally to monitor
      the operating performance of our portfolio. Our computation of these
      non-GAAP measures may not be the same as similar measures reported by
      other REITs.
      The Company determines FFO based upon the definition set forth by the
      National Association of Real Estate Investment Trusts ("NAREIT"). The
      Company determines FFO to be our share of consolidated net income
      computed in accordance with GAAP, excluding real estate related
      depreciation and amortization, excluding gains and losses from
      extraordinary items, excluding gains and losses from the sales of, or
      any impairment charges related to, previously depreciated operating
      properties, plus the allocable portion of FFO of unconsolidated joint
      ventures based upon economic ownership interest, and all determined on a
      consistent basis in accordance with GAAP.
      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 changes,
      or a gain or loss resulting from the sale of, or any impairment charges
      relating to, previously depreciated operating properties. We include in
      FFO gains and losses realized from the sale of land, outlot buildings,
      marketable and non-marketable securities, and investment holdings of
      non-retail real estate. However, you should understand that FFO does not
      represent cash flow from operations as defined by GAAP, should not be
      considered as an alternative to net income determined in accordance with
      GAAP as a measure of operating performance, and is not an alternative to
      cash flows as a measure of liquidity.
      Includes the Company's share of gains on land sales of $1.9 million and
(E)   $0.1 million for the three months ended September 30, 2012 and 2011,
      respectively, and $11.7 million and $4.5 million for the nine months
      ended September 30, 2012 and 2011, respectively.
      Includes the Company's share of straight-line adjustments to minimum
      rent of $11.5 million and $10.8 million for the three monthsended
(F)   September 30, 2012 and 2011, respectively, and $31.7 million and $26.2
      million for the nine months ended September 30, 2012 and 2011,
      respectively.
      Includes the Company's share of the amortization of fair market value of
      leases from acquisitions of $5.5 million and $6.0 millionfor the three
(G)   months ended September 30, 2012 and 2011, respectively, and $16.2
      million and $17.7 million for the nine monthsended September 30, 2012
      and 2011, respectively.
      Includes the Company's share of debt premium amortization of $9.6
(H)   million and $2.3 million for the three months endedSeptember 30, 2012
      and 2011, respectively, and $29.7 million and $7.0 million for the nine
      months ended September 30, 2012 and 2011, respectively.







SOURCE Simon Property Group, Inc.

Website: http://www.simon.com
Contact: Investors: Shelly Doran, +1-317-685-7330 or Media: Les Morris, +1-
317-263-7711
 
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