Simon Property Group Reports Third Quarter Results And Raises Quarterly Dividend

   Simon Property Group Reports Third Quarter Results And Raises Quarterly
                                   Dividend

PR Newswire

INDIANAPOLIS, Oct. 25, 2013

INDIANAPOLIS, Oct.25, 2013 /PRNewswire-FirstCall/ --Simon Property Group,
Inc. (NYSE: SPG) today reported results for the quarter and nine months ended
September 30, 2013.

Results for the Quarter

  oFunds from Operations ("FFO") was $802.8 million, or $2.21 per diluted
    share, as compared to $720.1 million, or $1.99 per diluted share, in the
    prior year period. The FFO increase on a per diluted share basis was
    11.1%.
  oNet income attributable to common stockholders was $311.7 million, or
    $1.00 per diluted share, as compared to $254.9 million, or $0.84 per
    diluted share, in the prior year period.

Results for the Nine Months

  oFunds from Operations ("FFO") was $2.311 billion, or $6.38 per diluted
    share, as compared to $2.057 billion, or $5.70 per diluted share, in the
    prior year period. The FFO increase on a per diluted share basis was
    11.9%.
  oNet income attributable to common stockholders was $934.7 million, or
    $3.01 per diluted share, as compared to $1.116 billion, or $3.71 per
    diluted share, in the prior year period. Results for 2012 include
    primarily non-cash net gains from acquisitions and dispositions of $1.36
    per diluted share.

"We achieved excellent financial performance for the quarter and had
successful openings of three new Premium Outlet Centers^®. We have also
completed our acquisition of ownership interests in the European designer
outlet business of McArthurGlen," said David Simon, Chairman and CEO. "Our
relentless focus on operating performance and executing our growth strategy
through expansions,new Premium Outlets development and smart acquisitions
delivered strong results, including 4.9% growth in comparable property net
operating income for our U.S. Malls and Premium Outlets for the quarter. We
are pleased to raise our dividend and increase our 2013 FFO guidance based on
our results to date and our expectations for the remainder of 2013."

U.S. Malls and Premium Outlets Operating Statistics
                                                     As of           %
                                                     September 30,
                                                     2013    2012    Increase
                                                                      + 90
Occupancy^(1)   95.5%   94.6%   basis
                                                                     points
Total Sales per sq. ft. ^(2)                         $579    $562    3.0%
Base Minimum Rent per sq. ft. ^(1)                   $41.73  $40.33  3.5%
Releasing Spread per sq. ft. ^(1)(3)                 $8.05   $4.86   + $3.19
                                                                     + 480
Releasing Spread (percentage change) ^(1)(3)         15.2%   10.4%   basis
                                                                     points
(1) Represents mall stores in Malls and all owned square footage in Premium
Outlets.
(2) Trailing 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.
(3) 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 $1.20 per share. This is an increase of $0.05 per
share from the previous quarter, and a year over year increase of 9.1%. The
dividend will be payable on November 29, 2013 to stockholders of record on
November 15, 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 December 31, 2013 to stockholders of record on December 17, 2013.

Development Activity
Three new Premium Outlets opened during the quarter:

  oAugust 1^st- Toronto Premium Outlets in Halton Hills (Toronto), Canada is
    a 360,000 square foot center with over 100 high quality outlet stores. The
    center is the Canadian entry point for many upscale, U.S. retailers and
    designer brands and opened 98% leased. The Company owns a 50% interest in
    this project.
  oAugust 22^nd- St. 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 opened 100% leased. 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.
  oAugust 29^th- Busan Premium Outlets in Busan, Korea is a 360,000 square
    foot center that serves the southeastern Korean peninsula, including the
    cities of Busan, Ulsan and Daegu, as well as local and overseas visitors.
    The center opened 99% leased. The Company owns a 50% interest in this
    project, which is its third Premium Outlet Center in Korea.

Four new Premium Outlets are currently under construction:

  oCharlotte Premium Outlets in Charlotte, North Carolina is a 400,000 square
    foot center scheduled to open in July of 2014. The Company owns a 50%
    interest in this project.
  oTwin Cities Premium Outlets in Eagan, Minnesota is a 410,000 square foot
    center scheduled to open in August of 2014. The Company owns a 35%
    interest in this project.
  oMontreal Premium Outlets in Mirabel, Quebec, Canada is a 360,000 square
    foot center scheduled to open in October of 2014. The Company owns a 50%
    interest in this project.
  oVancouver Designer Outlet in Vancouver, British Columbia, Canada is a
    215,000 square foot center scheduled to open in March of 2015. The
    Company owns a 45% interest in this project.

In early October, we opened The Shops at Nanuet, a 750,000 square foot
open-air, state-of-the-art center located in Rockland County, New York. This
project transformed the property from an enclosed mall to a main-street
outdoor shopping destination providing customers with a wide variety of
fashion and specialty retail, dining and entertainment opportunities. In
October, we also completed a 105,000 square foot expansion of Orlando Premium
Outlets-Vineland Ave which is 100% leased.

Redevelopment and expansion projects, including the addition of anchors and
big box tenants, are underway at more than 35 properties in the U.S. and Asia.
The Company's share of the cost of these projects is approximately $1.1
billion.

Acquisitions
On October 16, 2013, the Company completed the closing of its acquisition of
ownership interests in four McArthurGlen Designer Outlets: Parndorf (Vienna,
Austria), La Reggia (Naples, Italy), Noventa di Piave (Venice, Italy) and
Roermond (Roermond, the Netherlands). McArthurGlen is the leader in upscale,
European designer outlet centers.

Simon Property Group previously completed the acquisition of a 50% ownership
in McArthurGlen's management and development company through a joint venture,
as well as an interest in Ashford Designer Outlets in Kent, UK, and became a
partner in a new designer outletunder development in Vancouver, British
Columbia, Canada.

Total cash consideration for the McArthurGlen transaction was approximately
$500 million.

Dispositions
During the third quarter, the Company completed the sale of the following
assets:

  oArsenal Mall and Office in Watertown (Boston), Massachusetts
  oTerrace at The Florida Mall in Orlando, Florida

Proceeds from the sale of these assets were approximately $76 million.

Financing Activity
On August 7, 2013, Moody's Investors Service upgraded its rating of Simon
Property Group's senior unsecured debt to A2, with a stable outlook.

On October 2, 2013, Simon Property Group, L.P., the Company's majority-owned
operating partnership subsidiary, issued €750 million 7-year senior unsecured
notes at 2.375%. This represents the Company's first offering in the
euro-denominated debt market. Net proceeds from the public offering were used
to repay euro-denominated borrowings under the Company's unsecured revolving
credit facility and for general corporate purposes.

The Company has also been active in the secured debt markets in 2013, closing
or locking rates on 22  new loans totaling approximately $3.0  billion, of
which SPG's share is $2.2  billion. The weighted average interest rate on
these new loans is 2.85%  and the weighted average term is 7.6  years.

2013 Guidance
Today the Company updated and raised its guidance, estimating that FFO will be
within a range of $8.72 to $8.78 per diluted share for the year ending
December 31, 2013, and net income will be within a range of $4.10 to $4.16 per
diluted share. This represents an increase of $0.10 per diluted share for
midpoint of the range provided on July 29, 2013.

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

For the year ending December 31, 2013
                                                                 Low    High
                                                                 End    End
Estimated net income available to common stockholders per        $4.10  $4.16
diluted share
Depreciation and amortization including the Company's share of
unconsolidated                                                   4.90   4.90
 entities
Gain upon acquisition of controlling interests, sale or disposal
of assets and                                                    (0.28) (0.28)
 interests in unconsolidated entities, net
Estimated FFO per diluted share                                  $8.72  $8.78

Sustainability
During the quarter, Simon Property Group was honored for its leadership and
transparency on sustainable practices and was named to the 2013 CDP Global 500
Climate Disclosure Leadership Index (CDLI). This annual index highlights FTSE
Global 500 companies that demonstrate leadership through disclosure of
information regarding climate change and score within the top 10% of the five
hundred companies assessed.

This is the third time Simon Property Group has been awarded the CDLI
distinction due to its top score on disclosure of greenhouse gas emissions and
energy use, and SPG is the only real estate company included in 2013. Simon
Property Group has also been named to the S&P 500 Climate Disclosure
Leadership Index five times including this year.

In addition, Simon Property Group was recognized as the leading retail real
estate company in North America for its sustainability practices by The Global
Real Estate Sustainability Benchmark (GRESB), and ranked #1 among fifteen U.S.
retail real estate peers in GRESB's recently released 2013 Report.

Conference Call
Simon Property Group will hold a conference call to discuss our financial
results today at 9:00 a.m. Eastern Time, Friday, October 25, 2013. Live
streaming audio of the conference call will be accessible at
investors.simon.com. An online replay will be available until January 25, 2014
at investors.simon.com. A searchable podcast of the conference call will be
available at www.REITcafe.com.

Supplemental Materials and Website
The Company has provided supplemental information on its third quarter
performance at investors.simon.com. This information has also been furnished
to the SEC in a current report on Form 8-K.

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

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

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 conditions, 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, and the 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 our annual and quarterly reports filed with the
SEC. 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 unless required by law.

About Simon Property Group
Simon Property Group, Inc. (NYSE: SPG) is an S&P 100 company and a global
leader in the retail real estate industry. The Company currently owns or has
an interest in more than 325 retail real estate properties in North America
and Asia comprising approximately 242 million square feet. We are
headquartered in Indianapolis, Indiana and employ approximately 5,500 people
in the U.S. For more information, visit 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,
                           2013       2012       2013         2012
REVENUE:
Minimum rent               $ 795,809  $ 759,039  $ 2,351,876  $ 2,207,334
Overage rent               56,511     51,170     134,458      110,277
Tenant reimbursements      367,702    342,443    1,059,834    979,300
Management fees and other  33,613     32,294     95,156       92,928
revenues
Other income               48,621     43,671     112,553      145,813
Total revenue              1,302,256  1,228,617  3,753,877    3,535,652
EXPENSES:
Property operating         126,706    132,378    354,094      353,136
Depreciation and           326,073    310,244    961,344      907,217
amortization
Real estate taxes          113,145    105,694    332,259      311,173
Repairs and maintenance    27,747     26,556     84,579       78,862
Advertising and promotion  30,725     28,114     81,343       77,762
Provision for (recovery    2,774      (1,180)    4,207        5,271
of) credit losses
Home and regional office   34,171     27,057     106,021      95,019
costs
General and administrative 14,546     14,165     44,476       42,787
Other                      25,804     20,636     62,411       58,424
Total operating expenses   701,691    663,664    2,030,734    1,929,651
OPERATING INCOME           600,565    564,953    1,723,143    1,606,001
Interest expense           (284,491)  (288,896)  (849,482)    (835,532)
Income and other taxes     (7,768)    (3,904)    (29,943)     (9,872)
Income from unconsolidated 47,916     37,129     158,663      96,613
entities
Gain (loss) upon
acquisition of controlling
interests, sale or
 disposal of assets and
interests in
unconsolidated             11,071     (2,911)    99,906       491,926     ^(A)
 entities, and
impairment charge on
investment in
 unconsolidated
entities, net
CONSOLIDATED NET INCOME    367,293    306,371    1,102,287    1,349,136
Net income attributable to 54,784     50,616     165,035      230,857
noncontrolling interests
Preferred dividends        834        834        2,503        2,503
NET INCOME ATTRIBUTABLE TO $ 311,675  $ 254,921  $ 934,749    $ 1,115,776
COMMON STOCKHOLDERS
BASIC EARNINGS PER COMMON
SHARE:
Net income attributable to $ 1.00     $ 0.84     $ 3.01       $ 3.71
common stockholders
DILUTED EARNINGS PER
COMMON SHARE:
Net income attributable to $ 1.00     $ 0.84     $ 3.01       $ 3.71
common stockholders





Simon Property Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
                                                   September 30,  December 31,
                                                   2013           2012
ASSETS:
Investment properties at cost                      $ 34,764,669   $ 34,252,521
Less - accumulated depreciation                    9,804,069      9,068,388
                                                   24,960,600     25,184,133
Cash and cash equivalents                          1,099,321      1,184,518
Tenant receivables and accrued revenue, net        529,893        521,301
Investment in unconsolidated entities, at equity   1,991,900      2,108,966
Investment in Klepierre, at equity                 1,971,230      2,016,954
Deferred costs and other assets                    1,558,465      1,570,734
Total assets                                       $ 32,111,409   $ 32,586,606
LIABILITIES:
Mortgages and unsecured indebtedness               $ 22,729,654   $ 23,113,007
Accounts payable, accrued expenses, intangibles,   1,328,089      1,374,172
and deferred revenues
Cash distributions and losses in partnerships and  842,062        724,744
joint ventures, at equity
Other liabilities                                  227,319        303,588
Total liabilities                                  25,127,124     25,515,511
Commitments and contingencies
Limited partners' preferred interest in the
Operating Partnership and noncontrolling           179,792        178,006
 redeemable interests in properties
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,                44,472         44,719
 796,948 issued and outstanding with a
liquidation value of $ 39,847
Common stock, $ 0.0001 par value, 511,990,000
shares authorized, 313,976,863 and                 31             31
 313,658,419 issued and outstanding,
respectively
Class B common stock, $ 0.0001 par value, 10,000
shares authorized, 8,000                           -              -
 issued and outstanding
Capital in excess of par value                     9,197,939      9,175,724
Accumulated deficit                                (3,218,890)    (3,083,190)
Accumulated other comprehensive loss               (76,702)       (90,900)
Common stock held in treasury at cost, 3,651,580   (118,031)      (135,781)
and 3,762,595 shares, respectively
Total stockholders' equity                         5,828,819      5,910,603
Noncontrolling interests                           975,674        982,486
Total equity                                       6,804,493      6,893,089
Total liabilities and equity                       $ 32,111,409   $ 32,586,606





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,
                             2013         2012        2013         2012
Revenue:
 Minimum rent               $ 408,204    $ 370,183   $ 1,201,748  $ 1,091,701
 Overage rent               40,784       44,002      128,565      128,622
 Tenant reimbursements      197,494      176,544     569,044      508,698
 Other income               40,903       34,754      122,505      121,686
 Total revenue            687,385      625,483     2,021,862    1,850,707
Operating Expenses
 Property operating         125,329      125,162     364,494      351,963
 Depreciation and           135,457      125,828     389,843      375,280
amortization
 Real estate taxes          55,374       45,068      160,152      132,618
 Repairs and maintenance    15,653       15,418      48,156       45,269
 Advertising and promotion  14,141       11,706      44,164       39,600
 Provision for (recovery    192          (646)       1,772        (247)
of) credit losses
 Other                      37,948       36,089      110,129      128,134
 Total operating expenses 384,094      358,625     1,118,710    1,072,617
Operating Income             303,291      266,858     903,152      778,090
Interest expense             (151,579)    (148,891)   (453,573)    (451,581)
Income from Continuing       151,712      117,967     449,579      326,509
Operations
Gain (loss) from operations
of discontinued joint        7            (1,978)     (339)        (20,769)
venture
 interests
Gain (loss) on disposal of   6,580        (4,904)     24,936       (4,904)
discontinued operations, net
Net Income                   $ 158,299    $ 111,085   $ 474,176    $ 300,836
Third-party investors' share $ 85,211     $ 66,308    $ 263,926    $ 163,108
of net income
Our share of net income      73,088       44,777      210,250      137,728
Amortization of Excess       (25,733)     (21,726)    (75,415)     (55,059)
Investment ^(B)
Our share of loss on sale or
disposal of assets and       -            9,245       -            9,245
 interests in
unconsolidated entities, net
Income from Unconsolidated   $ 47,355     $ 32,296    $ 134,835    $ 91,914
Entities ^(C)
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.





Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Balance Sheets
(Dollars in thousands)
                                                   September 30,  December 31,
                                                   2013           2012
Assets:
Investment properties, at cost                     $ 14,828,264   $ 14,607,291
Less - accumulated depreciation                    5,144,189      4,926,511
                                                   9,684,075      9,680,780
Cash and cash equivalents                          653,185        619,546
Tenant receivables and accrued revenue, net        270,770        252,774
Investment in unconsolidated entities, at equity   38,669         39,589
Deferred costs and other assets                    442,831        438,399
Total assets                                       $ 11,089,530   $ 11,031,088
Liabilities and Partners' Deficit:
Mortgages                                          $ 11,979,021   $ 11,584,863
Accounts payable, accrued expenses, intangibles,   723,143        672,483
and deferred revenue
Other liabilities                                  394,461        447,132
Total liabilities                                  13,096,625     12,704,478
Preferred units                                    67,450         67,450
Partners' deficit                                  (2,074,545)    (1,740,840)
Total liabilities and partners' deficit            $ 11,089,530   $ 11,031,088
Our Share of:
Partners' deficit                                  $ (943,037)    $ (799,911)
Add: Excess Investment ^(B)                        2,092,875      2,184,133
Our net Investment in Joint Ventures               $ 1,149,838    $ 1,384,222
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 September 30,   Ended September 30,
                                 2013       2012       2013        2012
Consolidated Net Income ^(E)     $ 367,293  $ 306,371  $           $
                                                       1,102,287  1,349,136
Adjustments to Arrive at FFO:
          Depreciation and
          amortization from      321,962    306,612    949,169     896,147
          consolidated
           properties
          Our share of
          depreciation and
          amortization from      130,055    110,188    376,432     321,318
           unconsolidated
          entities, including
          Klepierre
          (Gain) loss upon
          acquisition of
          controlling interests,
          sale or
           disposal of assets
          and interests in       (11,071)   2,911      (99,906)    (491,926)
          unconsolidated
          entities, and
           impairment charge
          on investment in
          unconsolidated
          entities, net
          Net income
          attributable to
          noncontrolling         (1,958)    (2,464)    (6,517)     (6,427)
          interest holders in
           properties
          Noncontrolling
          interests portion of   (2,218)    (2,253)    (6,595)     (6,835)
          depreciation and
          amortization
          Preferred
          distributions and      (1,313)    (1,313)    (3,939)     (3,939)
          dividends
FFO of the Operating Partnership $ 802,750  $ 720,052  $           $
                                                       2,310,931  2,057,474
Diluted net income per share to
diluted FFO per share
reconciliation:
Diluted net income per share     $        $        $       $    
                                 1.00      0.84      3.01       3.71
          Depreciation and
          amortization from
          consolidated
          properties
           and our share of
          depreciation and
          amortization from      1.24       1.14       3.65        3.35
           unconsolidated
          entities, including
          Klepierre, net of
          noncontrolling
           interests portion
          of depreciation and
          amortization
          (Gain) loss upon
          acquisition of
          controlling interests,
          sale or

           disposal of assets
          and interests in       (0.03)     0.01       (0.28)      (1.36)
          unconsolidated
          entities, and
           impairment charge
          on investment in
          unconsolidated
          entities, net
Diluted FFO per share            $        $        $       $    
                                 2.21      1.99      6.38       5.70
Details for per share
calculations:
FFO of the Operating             $ 802,750  $ 720,052  $           $
Partnership                                            2,310,931  2,057,474
Diluted FFO allocable to         (115,440)  (116,207)  (332,474)   (342,704)
unitholders
Diluted FFO allocable to common  $ 687,310  $ 603,845  $           $
stockholders                                           1,978,457  1,714,770
Basic weighted average shares    310,333    304,108    310,195     301,029
outstanding
Adjustments for dilution
calculation:
 Effect of stock options       -          1          -           1
Diluted weighted average shares  310,333    304,109    310,195     301,030
outstanding
Weighted average limited         52,122     58,524     52,127      60,162
partnership units outstanding
Diluted weighted average shares  362,455    362,633    362,322     361,192
and units outstanding
Basic and Diluted FFO per Share  $        $        $       $    
                                 2.21      1.99      6.38       5.70
 Percent Change               11.1%                 11.9%





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. 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)   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.
      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:
      Gains on land sales of $4.2 million and $1.9 million for the three
-     months ended September 30, 2013 and 2012, respectively, and $5.4 million
      and $11.7 million for the nine months ended September 30, 2013 and 2012,
      respectively
      Straight-line adjustments to minimum rent of $13.6 million and $11.5
-     million for the three months ended September 30, 2013 and 2012,
      respectively, and $39.7 million and $31.7 million for the nine months
      ended September 30, 2013 and 2012, respectively
      Amortization of fair market value of leases from acquisitions of $5.6
-     million and $5.5 million for the three months ended September 30, 2013
      and 2012, and $21.9 million and $16.2 million for the nine months ended
      September 30, 2013 and 2012, respectively
      Debt premium amortization of $10.1 million and $9.6 million for the
-     three months ended September 30, 2013 and 2012, respectively, and $32.3
      million and $29.7 million for the nine months ended September 30, 2013
      and 2012, respectively





SOURCE Simon Property Group, Inc.

Website: http://www.simon.com
Contact: Investors: Liz Zale, 212.745.9623; Media: Les Morris, 317.263.7711
 
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