Simon Property Group Reports First Quarter Results And Announces Quarterly Dividend

  Simon Property Group Reports First Quarter Results And Announces Quarterly
                                   Dividend

PR Newswire

INDIANAPOLIS, April 26, 2013

INDIANAPOLIS, April 26, 2013 /PRNewswire-FirstCall/ --Simon Property Group,
Inc. (the "Company") (NYSE: SPG) today reported results for the quarter ended
March 31, 2013.

  oFunds from Operations ("FFO") was $741.9 million, or $2.05 per diluted
    share, as compared to $648.7 million, or $1.82 per diluted share, in the
    prior year period. The FFO increase on a per share basis was 12.6%.
  oNet income attributable to common stockholders was $283.1 million, or
    $0.91 per diluted share, as compared to $645.4 million, or $2.18 per
    diluted share, in the prior year period. Results for the first quarter of
    2012 include primarily non-cash net gains from acquisitions and
    dispositions of $1.39 per share.

"Our Mall and Premium Outlet portfolio generated 4.8% growth in comparable
property net operating income for the quarter as well as a 5.3% increase in
tenant sales per square foot," said David Simon, chairman and chief executive
officer. "Occupancy increased by 110 basis points and leasing activity remains
strong. Given these results and factors, as well as our current view for the
remainder of 2013, today we are increasing our 2013 guidance."

U.S. Operational Statistics^(^1)

                                     As of   As of          %
                                   March 31, March 31, 2012 Increase
                                   2013
Occupancy^(2)                      94.7%     93.6%          + 110 basis points
Total Sales per Sq. Ft. ^ (3)      $575      $546           5.3%
Base Minimum Rent per Sq. Ft. ^    $41.05    $39.87         3.0%
(2)
Releasing Spread per Sq. Ft. ^ (2) $7.00     $4.74          + $2.26
^(4)
Releasing Spread (Percentage       13.4%     9.7%           + 370 basis points
Change) ^ (2) ^(4)

(1) Combined information for U.S. Malls and Premium Outlets®. 
(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.
(4) Same space measure that compares opening and closing rates on individual
    spaces leased during trailing 12-month period.

Dividends
Today the Company announced that the Board of Directors declared a quarterly
common stock dividend of $1.15 per share. The dividend is payable on May 31,
2013 to stockholders of record on May 17, 2013.

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 June 28, 2013 to stockholders of record on June 14, 2013.

Development Activity
On April 4^th, the Company opened Phoenix Premium Outlets. This center serves
the greater Phoenix and Scottsdale areas and is located in Chandler, Arizona
on Interstate 10, adjacent to the Wild Horse Pass Hotel & Casino within the
Wild Horse Pass Development. Phase I of the project is 100% leased and is
comprised of 360,000 square feet with 90 outlet stores featuring high-quality
designer and name brands. The Company owns 100% of Phoenix Premium Outlets.

On April 19th, the Company opened Shisui Premium Outlets, its 77th Premium
Outlet Center worldwide. The center is located approximately 40 miles from the
center of Tokyo, approximately one hour from Tokyo by car. Phase I of the
project is 100% leased and is comprised of 234,000 square feet with 120 stores
featuring a mix of international brands, Japanese brands and restaurants. The
Company owns a 40% interest in this project, its ninth Premium Outlet Center
in Japan.

Construction continues on three new Premium Outlet Centers, all scheduled to
open in 2013:

  oToronto Premium Outlets in Halton Hills (Toronto), Canada is a 360,000
    square foot center that will house over 100 high quality outlet stores.
    The center is expected to be the Canadian entry point for selected
    upscale, U.S. retailers and designer brands and is 85% leased. The Company
    owns a 50% interest in this project which will open on August 1^st.

  oSt. Louis Premium Outlets in Chesterfield (St. Louis), Missouri is 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 with 85 stores is 96%
    leased and will open on August 22^nd. St. Louis Premium Outlets is a part
    of Chesterfield Blue Valley, a mixed-use development to include office
    space, hotel, restaurant and entertainment venues. The Company owns a 60%
    interest in the project.

  oBusan Premium Outlets in Busan, Korea is a 340,000 square foot center that
    will serve southeastern Korea, including the cities of Busan, Ulsan and
    Daegu, as well as local and overseas visitors. The center will open in
    late August. The Company owns a 50% interest in this project, which will
    be its third Premium Outlet Center in Korea.

Redevelopment and expansion projects, including the addition of anchors and
big box tenants, are underway at 44 properties in the U.S. and two properties
in Asia. The Company's share of the cost of these projects is approximately $1
billion. During the first quarter of 2013, significant projects were completed
at Apple Blossom Mall, Quaker Bridge Mall and South Hills Village.

2013 Guidance
Today the Company updated and raised its guidance for 2013, estimating that
FFO will be within a range of $8.50 to $8.60 per diluted share for the year
ending December 31, 2013, and diluted net income will be within a range of
$3.70 to $3.80 per share. This represents an increase of $0.10 per share for
both the low and high end of the ranges previously provided.

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

For the year ending December 31,
2013
                                                                            Low    High
                                                                            End    End
Estimated diluted net income available to common stockholders per           $3.70  $3.80
share
Depreciation and amortization including the Company's share of
unconsolidated 
entities                                                                4.86   4.86
Gain upon sale or disposal of assets and interests in unconsolidated        (0.06) (0.06)
entities, net
Estimated diluted FFO per share                          $8.50  $8.60

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 9:00 a.m. Eastern Time (New
York time) today, April 26, 2013. 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 financial performance measures not 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. Our computation of
these non-GAAP measures may not be the same as similar measures reported by
other REITs.

Forward-Looking Statements
Certain statements made in this press release may be deemed "forward‑looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Although the Company believes the expectations reflected in any
forward‑looking statements are based on reasonable assumptions, the Company
can give no assurance that its expectations will be attained, and it is
possible that 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, 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, 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 327 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
                                                      Ended March 31,
                                                      2013       2012
REVENUE:
 Minimum rent                                        $ 777,907  $ 702,098
 Overage rent                                        37,699     27,680
 Tenant reimbursements                               338,969    306,388
 Management fees and other revenues                  29,729     32,287
 Other income                                        30,754     50,516
 Total revenue                                     1,215,058  1,118,969
EXPENSES:
 Property operating                                  109,910    104,740
 Depreciation and amortization                       316,633    285,109
 Real estate taxes                                   109,705    98,702
 Repairs and maintenance                             29,725     25,641
 Advertising and promotion                           21,259     21,098
 Provision for credit losses                         2,734      3,545
 Home and regional office costs                      34,894     32,858
 General and administrative                          14,509     13,889
 Other                                               18,000     16,666
 Total operating expenses                          657,369    602,248
OPERATING INCOME                                      557,689    516,721
Interest expense                                      (285,026)  (258,079)
Income and other taxes                                (13,193)   (2,003)
Income from unconsolidated entities                   54,231     30,353
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        20,767     494,837   (A)
CONSOLIDATED NET INCOME                               334,468    781,829
Net income attributable to noncontrolling interests  50,496     135,585
Preferred dividends                                   834        834
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS        $ 283,138  $ 645,410
BASIC EARNINGS PER COMMON SHARE:
 Net income attributable to common stockholders    $ 0.91     $ 2.18
DILUTED EARNINGS PER COMMON SHARE:
 Net income attributable to common stockholders    $ 0.91     $ 2.18



Simon Property Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
                                                    March 31,     December 31,
                                                    2013          2012
ASSETS:
 Investment properties at cost                   $ 34,386,654  $ 34,252,521
 Less - accumulated depreciation             9,297,731     9,068,388
                                                    25,088,923    25,184,133
 Cash and cash equivalents                       829,966       1,184,518
 Tenant receivables and accrued revenue, net     454,110       521,301
 Investment in unconsolidated entities, at       2,001,506     2,108,966
equity
 Investment in Klepierre, at equity              1,991,533     2,016,954
 Deferred costs and other assets                 1,520,085     1,570,734
 Total assets                                $ 31,886,123  $ 32,586,606
LIABILITIES:
 Mortgages and unsecured indebtedness            $ 22,572,615  $ 23,113,007
 Accounts payable, accrued expenses,             1,231,298     1,374,172
intangibles, and deferred revenues
 Cash distributions and losses in partnerships   825,220       724,744
and joint ventures, at equity
 Other liabilities                               246,300       303,588
 Total liabilities                           24,875,433    25,515,511
Commitments and contingencies
Limited partners' preferred interest in the
Operating Partnership and noncontrolling
 redeemable interests in properties              187,411       178,006
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          44,636        44,719
outstanding with a liquidation value of $ 39,847
 Common stock, $ 0.0001 par value,
511,990,000 shares authorized, 313,793,178
 and 313,658,419 issued and outstanding, 31            31
respectively
 Class B common stock, $ 0.0001 par value,
10,000 shares authorized, 8,000
 issued and outstanding                  -             -
 Capital in excess of par value                  9,182,789     9,175,724
 Accumulated deficit                             (3,164,876)   (3,083,190)
 Accumulated other comprehensive loss            (82,734)      (90,900)
 Common stock held in treasury at cost,          (134,320)     (135,781)
3,753,307 and 3,762,595 shares, respectively
 Total stockholders' equity                  5,845,526     5,910,603
Noncontrolling interests                            977,753       982,486
 Total equity                                6,823,279     6,893,089
 Total liabilities and equity                $ 31,886,123  $ 32,586,606



Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Statements of Operations
(Dollars in thousands)
                                                   For the Three Months
                                                   Ended March 31,
                                                   2013            2012
Revenue:
 Minimum rent                                     $ 394,153       $ 357,977
 Overage rent                                     47,767          48,556
 Tenant reimbursements                            184,399         166,530
 Other income                                     42,074          50,336
 Total revenue                                  668,393         623,399
Operating Expenses:
 Property operating                               115,869         114,833
 Depreciation and amortization                    127,686         126,978
 Real estate taxes                                54,706          45,100
 Repairs and maintenance                          16,164          14,424
 Advertising and promotion                        15,921          15,206
 Provision for credit losses                      1,245           1,192
 Other                                            35,682          53,495
 Total operating expenses                       367,273         371,228
Operating Income                                   301,120         252,171
Interest expense                                   (147,486)       (153,711)
Income from Continuing Operations                  153,634         98,460
Loss from operations of discontinued joint venture (320)           (13,511)
interests
Net Income                                         $ 153,314       $ 84,949
Third-Party Investors' Share of Net Income         $ 83,766        $ 40,012
Our Share of Net Income                            69,548          44,937
Amortization of Excess Investment (B)              (24,829)        (14,584)
Income from Unconsolidated Entities (C)            $ 44,719        $ 30,353
Note: The above financial presentation does not include any information
related to our investment in
 Klepierre S.A. ("Klepierre"). For additional information, see
footnote C attached hereto.



Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Balance Sheets
(Dollars in thousands)
                                         March 31,          December 31,
                                         2013               2012
Assets:
Investment properties, at cost           $  14,534,275    $  14,607,291
Less - accumulated depreciation          4,950,896          4,926,511
                                         9,583,379          9,680,780
Cash and cash equivalents                492,445            619,546
Tenant receivables and accrued revenue,  208,080            252,774
net
Investment in unconsolidated entities,   39,274             39,589
at equity
Deferred costs and other assets          359,548            438,399
Total assets                             $  10,682,726    $  11,031,088
Liabilities and Partners' Deficit:
Mortgages and other indebtedness         $  11,868,575    $  11,584,863
Accounts payable, accrued expenses,      538,672            672,483
intangibles, and deferred revenue
Other liabilities                        350,738            447,132
Total liabilities                        12,757,985         12,704,478
Preferred units                          67,450             67,450
Partners' deficit                        (2,142,709)        (1,740,840)
Total liabilities and partners' deficit  $  10,682,726    $  11,031,088
Our Share of:
Partners' deficit                        $    (969,136)  $    (799,911)
Add: Excess Investment (B)               2,145,422          2,184,133
Our net Investment in unconsolidated     $   1,176,286   $   1,384,222
entities, at equity
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 Ended
                                                   Ended March 31,
                                                   2013          2012
Consolidated Net Income (E)                        $  334,468  $  781,829
Adjustments to Arrive at FFO:
           Depreciation and amortization from
           consolidated
            properties                           312,585       281,349
           Our share of depreciation and
           amortization from
            unconsolidated entities, including   121,549       86,141
           Klepierre
           Gain upon acquisition of controlling
           interests, sale or disposal
            of assets and interests in
           unconsolidated entities, and
            impairment charge on investment in   (20,767)      (494,837)
           unconsolidated entities, net
           Net income attributable to
           noncontrolling interest holders in
            properties                           (2,461)       (2,109)
           Noncontrolling interests portion of     (2,173)       (2,408)
           depreciation and amortization
           Preferred distributions and dividends   (1,313)       (1,313)
FFO of the Operating Partnership                   $  741,888  $  648,652
Diluted net income per share to diluted FFO per
share reconciliation:
Diluted net income per share                       $ 0.91        $    
                                                                 2.18
           Depreciation and amortization from
           consolidated properties
            and our share of depreciation and
           amortization from
            unconsolidated entities, including
           Klepierre, net of noncontrolling
            interests portion of depreciation    1.20          1.03
           and amortization
           Gain upon acquisition of controlling
           interests, sale or disposal
            of assets and interests in
           unconsolidated entities, and
            impairment charge on investment in   (0.06)        (1.39)
           unconsolidated entities, net
Diluted FFO per share                              $         $    
                                                   2.05         1.82
Details for per share calculations:
FFO of the Operating Partnership                   $  741,888  $  648,652
Diluted FFO allocable to unitholders               (106,688)     (110,827)
Diluted FFO allocable to common stockholders       $  635,200  $  537,825
Basic weighted average shares outstanding          309,987       295,694
Adjustments for dilution calculation:
 Effect of stock options                         -             1
Diluted weighted average shares outstanding        309,987       295,695
Weighted average limited partnership units         52,065        60,932
outstanding
Diluted weighted average shares and units          362,052       356,627
outstanding
Basic FFO per Share                                $         $    
                                                   2.05         1.82
 Percent Change                                  12.6%
Diluted FFO per Share                              $         $    
                                                   2.05         1.82
 Percent Change                                  12.6%



Simon Property Group, Inc. and Subsidiaries
Footnotes to Unaudited Reconciliation of Non-GAAP Financial Measures
Notes:
      2012 primarily represents non-cash gains resulting from our
(A)   acquisition/disposition 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 our
(B)   investment over equity in the underlying net assets of the related
      partnerships and joint ventures shown therein. We generally amortize
      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 Footnote E
(C)   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
(D)   concerning our operating performance and a basis to compare our
      performance with those of other REITs. We also use these measures
      internally to monitor the operating performance of our portfolio. Our
      computation of these non-GAAP measures may not be the same as similar
      measures reported by other REITs.
      We determine FFO based upon the definition set forth by the National
      Association of Real Estate Investment Trusts ("NAREIT"). We determine
      FFO to be our share of consolidated net income computed in accordance
      with GAAP, excluding real estate related depreciation and amortization,
      excluding gains and losses from extraordinary items, excluding gains
      and losses from the sales or disposals of, or any impairment charges
      related to, previously depreciated retail operating properties, plus
      the allocable portion of FFO of unconsolidated joint ventures based
      upon economic ownership interest, and all determined on a consistent
      basis in accordance with GAAP.
      We have adopted NAREIT's clarification of the definition of FFO that
      requires it to include the effects of nonrecurring items not classified
      as extraordinary, cumulative effect of accounting changes, or a gain or
      loss resulting from the sale or disposal of, or any impairment charges
      relating to, previously depreciated retail 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.
(E)   Includes our share of:
        oGains on land sales of $0.4 million and $3.2 million for the three
          months ended March 31, 2013 and 2012,respectively
        oStraight-line adjustments to minimum rent of $12.8 million and $8.8
          million for the three months endedMarch 31, 2013 and 2012,
          respectively
        oAmortization of fair market value of leases from acquisitions of
          $10.7 million and $5.1 million for the three months ended March 31,
          2013 and 2012, respectively and
        oDebt premium amortization of $10.9 million and $6.7 million for the
          three months ended March 31, 2013 and2012, respectively.

SOURCE Simon Property Group, Inc.

Website: http://www.simon.com
Contact: Shelly Doran, 317.685.7330, Investors or Les Morris, 317.263.7711,
Media