Simon Property Group Reports Fourth Quarter Results And Raises Quarterly Dividend

   Simon Property Group Reports Fourth Quarter Results And Raises Quarterly
                                   Dividend

PR Newswire

INDIANAPOLIS, Jan. 31, 2014

INDIANAPOLIS, Jan.31, 2014 /PRNewswire/ --Simon Property Group, Inc. (NYSE:
SPG) today reported results for the quarter and twelve months ended December
31, 2013.

Results for the Quarter

  oFunds from Operations ("FFO") was $894.8 million, or $2.47 per diluted
    share, as compared to $827.4 million, or $2.29 per diluted share, in the
    prior year period. The FFO increase on a per diluted share basis was 7.9%.
  oNet income attributable to common stockholders was $381.6 million, or
    $1.23 per diluted share, as compared to $315.4 million, or $1.01 per
    diluted share, in the prior year period.

Results for the Year

  oFunds from Operations ("FFO") was $3.206 billion, or $8.85 per diluted
    share, as compared to $2.885 billion, or $7.98 per diluted share, in the
    prior year period. The FFO increase on a per diluted share basis was
    10.9%.
  oNet income attributable to common stockholders was $1.316 billion, or
    $4.24 per diluted share, as compared to $1.431 billion, or $4.72 per
    diluted share, in the prior year period. Results for 2012 include
    primarily non-cash net gains from acquisitions and dispositions of $1.41
    per diluted share.

"This was an excellent quarter and year for Simon Property Group, capped off
by our twentieth anniversary as a public company in December. Over that
20-year period, we delivered a total return to shareholders of 1,915%," said
David Simon, Chairman and CEO. "We produced strong financial and operating
results in the fourth quarter, led by 5.5% growth in comparable property net
operating income for our U.S. Malls and Premium Outlets. We also completed our
acquisition of ownership interests in the European designer outlet business of
McArthurGlen and opened significant redevelopments and expansions at several
of our properties."

U.S. Malls and Premium Outlets Operating Statistics

                                             As of
                                             December 31,  %
                                             2013   2012   Increase
Occupancy^(1)                                96.1%  95.3%  + 80 basis points
Total Sales per sq. ft. ^(2)                 $582   $568   2.5%
Base Minimum Rent per sq. ft. ^(1)           $42.34 $40.73 4.0%
Releasing Spread per sq. ft. ^(1)(3)         $8.94  $5.21  + $3.73
Releasing Spread (percentage change) ^(1)(3) 16.8%  10.8%  + 600 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 $1.25 per share. This is an increase of $0.05 from
the previous quarter, and a year over year increase of 8.7%. The dividend
will be payable on February 28, 2014 to stockholders of record on February 14,
2014.

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 March 31, 2014 to stockholders of record on March 17, 2014.

Development Activity

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, which was 98% leased at opening, 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.

During the fourth quarter, the Company completed expansions at the following
properties:

  oOrlando Premium Outlets – Vineland Ave (Orlando, Florida) – 105,000 square
    feet, 100% leased at opening
  oJohor Premium Outlets (Johor, Malaysia) – 90,000 square feet, 100% leased
    at opening
  oWalt Whitman Shops (Huntington Station, New York) – 74,000 square feet,
    100% leased at opening

We started construction on the transformational redevelopment and expansion of
Roosevelt Field in Garden City, New York, during the fourth quarter, which
will include the addition of Neiman Marcus. Redevelopment and expansion
projects, including the addition of new anchors, are underway at 25 properties
in the U.S., Asia and Mexico. The Company's share of the cost of these
projects is approximately $1.1 billion.

The Company's outlet business continues its robust expansion with four new
Premium Outlets 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
    242,000 square foot center scheduled to open in April of 2015. The
    Company owns a 45% interest in this project.

Acquisitions and Dispositions

As previously announced, the Company completed the closing of its acquisition
of ownership interests in four existingMcArthurGlen Designer Outlets:
Parndorf (Vienna, Austria), La Reggia (Naples, Italy), Noventa di Piave
(Venice, Italy) and Roermond (Roermond, the Netherlands) during the fourth
quarter. The Company also owns an interest in the existingAshford Designer
Outlet in Kent, UK, Vancouver Designer Outlet (currentlyunder
construction),and a 50% ownership in McArthurGlen's management and
development company. McArthurGlen is a leader in upscale, European designer
outlet centers.

During the fourth quarter, the Company completed the sale of four assets – two
community/lifestyle centers and two outlets.

In January, 2014, we acquired our joint venture partners' remaining interest
in Kravco Simon Investments, a portfolio of10 assets. This transaction
included the remaining interest in King of Prussia Mall, bringing our
ownership to 100%.

Financing Activity

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 was 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 was also active in the secured debt markets in 2013. During the
fourth quarter, we closed or locked rates on 10 new loans totaling
approximately $2.2 billion, of which SPG's share is $1.0 billion. The
weighted average interest rate on these new loans is 4.00% and the weighted
average term is 7.4 years. For the year, we closed or locked rates on 30 new
loans totaling approximately $5.1 billion, of which SPG's share is $3.0
billion. The weighted average interest rate on these new loans is 3.31% and
the weighted average term is 7.5 years.

In January, 2014, Simon Property Group, L.P., completed a $1.2 billion senior
unsecured notes offering with a weighted average duration of 7.5 years and an
average coupon rate of 2.975%. The offering was comprised of $600 million of
2.20% five-year senior notes and $600 million of 3.75% ten-year senior notes.
Net proceeds from the public offering were used to repay debt and for general
corporate purposes.

Spin Off

In December, 2013,Simon Property Group announced a plan to spin off all of
its strip center business and 44 smaller enclosed malls into an independent,
publicly traded REIT. In conjunction with this transaction, we filed a Form
10 on December 24, 2013. We continue to expect the transaction will be
effective in the second quarter of 2014.

2014 Guidance

The Company estimates that FFO will be within a range of $9.50 to $9.60 per
diluted share for the year ending December 31, 2014, and net income will be
within a range of $4.55 to $4.65 per diluted share. 

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,
2014

                                                                   Low   High
                                                                   End   End
Estimated net income available to common stockholders per diluted  $4.55 $4.65
share
Depreciation and amortization including the Company's share of     4.95  4.95
unconsolidatedentities
Estimated FFO per diluted share                                    $9.50 $9.60



This guidance does not take into consideration any impact from the previously
mentioned spin-off transaction.

Conference Call

Simon Property Group will hold a conference call to discuss our financial
results today at 10:00 a.m. Eastern Time, Friday, January 31, 2014. Live
streaming audio of the conference call will be accessible at
investors.simon.com. An online replay will be available until February 14,
2014 at investors.simon.com. 

Supplemental Materials and Website

The Company has provided supplemental information on its fourth 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,
Asia and Europe comprising approximately 243 million square feet. We are
headquartered in Indianapolis, Indiana and employ approximately 5,500 people
in the U.S. For more information, visit 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 Twelve Months
                           Ended December 31,    Ended December 31,
                           2013       2012       2013         2012
REVENUE:
Minimum rent               $ 850,082  $ 808,533  $ 3,201,958  $ 3,015,866
Overage rent               89,015     85,449     223,473      195,726
Tenant reimbursements      383,072    361,006    1,442,907    1,340,307
Management fees and other  31,816     35,438     126,972      128,366
revenues
Other income               62,275     54,005     174,828      199,819
Total revenue              1,416,260  1,344,431  5,170,138    4,880,084
EXPENSES:
Property operating         121,039    116,619    475,133      469,755
Depreciation and           329,183    350,353    1,290,528    1,257,569
amortization
Real estate taxes          112,640    108,094    444,899      419,267
Repairs and maintenance    36,224     37,306     120,803      116,168
Advertising and promotion  44,866     41,028     126,210      118,790
Provision for credit       3,531      7,538      7,737        12,809
losses
Home and regional office   34,911     28,907     140,931      123,926
costs
General and administrative 15,327     14,358     59,803       57,144
Marketable and
non-marketable securities
charges and
 realized gains, net      -          (6,426)    -            (6,426)
Other                      25,993     32,056     88,405       90,482
Total operating expenses   723,714    729,833    2,754,449    2,659,484
OPERATING INCOME           692,546    614,598    2,415,689    2,220,600
Interest expense           (287,657)  (291,492)  (1,137,139)  (1,127,025)
Income and other taxes     (9,790)    (6,008)    (39,734)     (15,880)
Income from unconsolidated 46,596     35,294     205,259      131,907
entities
Gain upon acquisition of
controlling interests,
sale or
disposal of assets and
interests in
unconsolidated
entities, and impairment
charge on investment in
unconsolidated entities,   7,609      18,104     107,515      510,030     ^(A)
net
CONSOLIDATED NET INCOME    449,304    370,496    1,551,590    1,719,632
Net income attributable to 66,915     54,279     231,949      285,136
noncontrolling interests
Preferred dividends        834        834        3,337        3,337
NET INCOME ATTRIBUTABLE TO $ 381,555  $ 315,383  $ 1,316,304  $ 1,431,159
COMMON STOCKHOLDERS
BASIC EARNINGS PER COMMON
SHARE:
Net income attributable to $ 1.23     $ 1.01     $ 4.24       $ 4.72
common stockholders
DILUTED EARNINGS PER
COMMON SHARE:
Net income attributable to $ 1.23     $ 1.01     $ 4.24       $ 4.72
common stockholders



Simon Property Group, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
                                                     December 31, December 31,
                                                     2013         2012
ASSETS:
Investment properties at cost                        $ 35,126,344 $ 34,252,521
Less - accumulated depreciation                      10,067,743   9,068,388
                                                     25,058,601   25,184,133
Cash and cash equivalents                            1,716,863    1,184,518
Tenant receivables and accrued revenue, net          581,482      521,301
Investment in unconsolidated entities, at equity     2,433,399    2,108,966
Investment in Klepierre, at equity                   2,014,415    2,016,954
Deferred costs and other assets                      1,519,814    1,570,734
Total assets                                         $ 33,324,574 $ 32,586,606
LIABILITIES:
Mortgages and unsecured indebtedness                 $ 23,588,531 $ 23,113,007
Accounts payable, accrued expenses, intangibles, and 1,374,113    1,374,172
deferred revenues
Cash distributions and losses in partnerships and    1,091,591    724,744
joint ventures, at equity
Other liabilities                                    257,222      303,588
Total liabilities                                    26,311,457   25,515,511
Commitments and contingencies
Limited partners' preferred interest in the
Operating Partnership and noncontrolling
redeemable interests in properties                   190,485      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 outstanding with a liquidation    44,390       44,719
value of $ 39,847
Common stock, $ 0.0001 par value, 511,990,000 shares
authorized, 314,251,245 and
313,658,419 issued and outstanding, respectively     31           31
Class B common stock, $ 0.0001 par value, 10,000
shares authorized, 8,000
issued and outstanding                               -            -
Capital in excess of par value                       9,217,363    9,175,724
Accumulated deficit                                  (3,218,686)  (3,083,190)
Accumulated other comprehensive loss                 (75,795)     (90,900)
Common stock held in treasury at cost, 3,650,680 and (117,897)    (135,781)
3,762,595 shares, respectively
Total stockholders' equity                           5,849,406    5,910,603
Noncontrolling interests                             973,226      982,486
Total equity                                         6,822,632    6,893,089
Total liabilities and equity                         $ 33,324,574 $ 32,586,606



Simon Property Group, Inc. and Subsidiaries
Unaudited Joint Venture Statements of Operations
(Dollars in thousands)
                           For the Three Months     For the Year
                           Ended December 31,       Ended December 31,
                           2013         2012        2013         2012
Revenue:
 Minimum rent             $ 465,138    $ 395,853   $ 1,666,886  $ 1,487,554
 Overage rent             52,207       47,987      180,772      176,609
 Tenant reimbursements    196,313      182,866     765,357      691,564
 Other income             77,599       50,012      200,104      171,698
 Total revenue          791,257      676,718     2,813,119    2,527,425
Operating Expenses:
 Property operating       133,991      125,375     498,485      477,338
 Depreciation and         138,474      132,803     528,317      508,083
amortization
 Real estate taxes        52,515       46,121      212,667      178,739
 Repairs and maintenance  20,960       19,894      69,116       65,163
 Advertising and          18,175       15,575      62,339       55,175
promotion
 (Recovery of) provision  (485)        2,071       1,287        1,824
for credit losses
 Other                    45,986       42,376      156,115      170,510
 Total operating        409,616      384,215     1,528,326    1,456,832
expenses
Operating Income           381,641      292,503     1,284,793    1,070,593
Interest expense           (241,331)    (147,818)   (694,904)    (599,400)
Income from Continuing     140,310      144,685     589,889      471,193
Operations
Gain (loss) from
operations of discontinued 385          457         46           (20,311)
joint venture interests
Gain (loss) on disposal of
discontinued operations,   26,228       (450)       51,164       (5,354)
net
Net Income                 $ 166,923    $ 144,692   $ 641,099    $ 445,528
Third-party investors'     $  89,782   $  76,823  $ 353,708    $ 239,931
share of net income
Our share of net income    77,141       67,869      287,391      205,597
Amortization of Excess     (27,460)     (28,341)    (102,875)    (83,400)
Investment ^(B)
Our share of loss on sale
or disposal of assets and
 interests in
unconsolidated entities,   -            -           -            9,245
net
Income from Unconsolidated $  49,681   $  39,528  $ 184,516    $ 131,442
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)
BALANCE SHEETS                                     December 31,  December 31,
                                                   2013          2012
Assets:
Investment properties, at cost                     $ 15,824,689  $ 14,607,291
Less - accumulated depreciation                    5,294,578     4,926,511
                                                   10,530,111    9,680,780
Cash and cash equivalents                          792,751       619,546
Tenant receivables and accrued revenue, net        310,320       252,774
Investment in unconsolidated entities, at equity   38,352        39,589
Deferred costs and other assets                    586,622       438,399
Total assets                                       $ 12,258,156  $ 11,031,088
Liabilities and Partners' Deficit:
Mortgages                                          $ 13,024,257  $ 11,584,863
Accounts payable, accrued expenses, intangibles,   849,107       672,483
and deferred revenues
Other liabilities                                  514,822       447,132
Total liabilities                                  14,388,186    12,704,478
Preferred units                                    67,450        67,450
Partners' deficit                                  (2,197,480)   (1,740,840)
Total liabilities and partners' deficit            $ 12,258,156  $ 11,031,088
Our Share of:
Partners' deficit                                  $ (717,776)   $ (799,911)
Add: Excess Investment ^(B)                        2,059,584     2,184,133
Our net Investment in Joint Ventures               $ 1,341,808   $ 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 Twelve Months
                               Ended December 31,     Ended December 31,
                               2013        2012        2013        2012
Consolidated Net Income ^(E)   $ 449,304  $ 370,496  $           $
                                                       1,551,590  1,719,632
Adjustments to Arrive at FFO:
 Depreciation and amortization
 from consolidated
  properties              324,478     346,594     1,273,646   1,242,741
 Our share of depreciation and
 amortization from
  unconsolidated entities, 134,768     134,692     511,200     456,011
 including Klepierre
 Gain upon acquisition of
 controlling interests, sale
 or disposal
  of assets and interests
 in unconsolidated entities,
 and
  impairment charge on
 investment in unconsolidated  (7,609)     (18,104)    (107,515)   (510,030)
 entities, net
 Net income attributable to
 noncontrolling interest
 holders in
  properties               (2,474)     (2,092)     (8,990)     (8,520)
 Noncontrolling interests
 portion of depreciation and   (2,391)     (2,831)     (8,986)     (9,667)
 amortization
 Preferred distributions and   (1,313)     (1,313)     (5,252)     (5,252)
 dividends
FFO of the Operating           $ 894,763  $ 827,442  $           $
Partnership                                            3,205,693  2,884,915
Diluted Net Income Per Share
to Diluted FFO Per Share
Reconciliation:
Diluted net income per share   $        $        $       $    
                               1.23        1.01        4.24       4.72
 Depreciation and amortization
 from consolidated properties
  and our share of
 depreciation and amortization
 from
  unconsolidated entities,
 including Klepierre, net of
 noncontrolling
  interests portion of     1.26        1.33        4.91        4.67
 depreciation and amortization
 Gain upon acquisition of
 controlling interests, sale
 or disposal
  of assets and interests
 in unconsolidated entities,
 and
  impairment charge on
 investment in unconsolidated  (0.02)      (0.05)      (0.30)      (1.41)
 entities, net
Diluted FFO per share          $        $        $       $    
                               2.47        2.29        8.85       7.98
Details for per share
calculations:
FFO of the Operating           $ 894,763  $ 827,442  $           $
Partnership                                            3,205,693  2,884,915
Diluted FFO allocable to       (128,419)   (119,633)   (460,923)   (464,567)
unitholders
Diluted FFO allocable to       $ 766,344  $ 707,809  $           $
common stockholders                                    2,744,770  2,420,348
Basic weighted average shares  310,434     309,417     310,255     303,137
outstanding
Adjustments for dilution
calculation:
 Effect of stock options     -           1           -           1
Diluted weighted average       310,434     309,418     310,255     303,138
shares outstanding
Weighted average limited       52,021      52,297      52,101      58,186
partnership units outstanding
Diluted weighted average       362,455     361,715     362,356     361,324
shares and units outstanding
Basic and Diluted FFO per      $        $        $       $    
Share                          2.47        2.29        8.85       7.98
 Percent Change             7.9%                    10.9%



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-K.
      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 $2.2 million and $7.9 million for the three
-     months ended December 31, 2013 and 2012, respectively, and $7.6 million
      and $19.6 million for the twelve months ended December 31, 2013 and
      2012, respectively
      Straight-line adjustments to minimum rent of $18.1 million and $12.6
-     million for the three months ended December 31, 2013 and 2012,
      respectively, and $57.8 million and $44.3 million for the twelve months
      ended December 31, 2013 and 2012, respectively
      Amortization of fair market value of leases from acquisitions of $5.8
-     million and $4.8 million for the three months ended December 31, 2013
      and 2012, and $27.7 million and $21.0 million for the twelve months
      ended December 31, 2013 and 2012, respectively
      Debt premium amortization of $9.6 million and $12.1 million for the
-     three months ended December 31, 2013 and 2012, respectively, and $41.9
      million and $41.8 million for the twelve months ended December 31, 2013
      and 2012, respectively



SOURCE Simon Property Group, Inc.

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