Back to GetFilings.com




QuickLinks -- Click here to rapidly navigate through this document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2002


SIMON PROPERTY GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation or organization)
  001-14469
(Commission File No.)
  04-6268599
(I.R.S. Employer
Identification No.)

115 West Washington Street, Suite 15 East
Indianapolis, Indiana 46204
(Address of principal executive offices) (ZIP Code)
(317) 636-1600
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12 (b) of the Act:

Title of each class

  Name of each exchange
on which registered

Common stock, $0.0001 par value   New York Stock Exchange
6.5% Series B Convertible Preferred Stock, $.0001 par value   New York Stock Exchange
8.75% Series F Cumulative Redeemable Preferred Stock, $.0001 par value   New York Stock Exchange
7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $.0001 par value   New York Stock Exchange

Securities registered pursuant to Section 12 (g) of the Act: None


            Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ý    NO  o

            Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ý

            Indicate by check mark whether Registrant is an accelerated filer (as defined by Rule 12b-2 of the Securities Exchange Act of 1934).    YES  ý    NO  o

            The aggregate market value of shares of common stock held by non-affiliates of the Registrant was approximately $6,294 million based on the closing sale price on the New York Stock Exchange for such stock on June 28, 2002.

            As of February 14, 2003, Simon Property Group, Inc. had 182,721,514; 3,200,000 and 4,000 shares of common stock, Class B common stock and Class C common stock outstanding, respectively.


Documents Incorporated By Reference

            Portions of the Registrant's Annual Report to Shareholders are incorporated by reference into Parts I, II and IV and portions of the Registrant's Proxy Statement in connection with its 2003 Annual Meeting of Shareholders are incoporated by reference in Part III.




SIMON PROPERTY GROUP, INC.
Annual Report on Form 10-K
December 31, 2002

TABLE OF CONTENTS


Item No.

 

 


 

Page No.

Part I

1.

 

Business

 

3
2.   Properties   12
3.   Legal Proceedings   35
4.   Submission of Matters to a Vote of Security Holders   35

Part II

5.

 

Market for the Registrant's Common Equity and Related Stockholder Matters

 

36
6.   Selected Financial Data   36
7.   Management's Discussion and Analysis of Financial Condition
and Results of Operations
 
37
7A.   Quantitative and Qualitative Disclosure About Market Risk   37
8.   Financial Statements and Supplementary Data   37
9.   Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
 
37

Part III

10.

 

Directors and Executive Officers of the Registrant

 

38
11.   Executive Compensation   38
12.   Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters
 
38
13.   Certain Relationships and Related Transactions   38
14.   Controls and Procedures   38

Part IV

15.

 

Exhibits, Financial Statements, Schedules and Reports on Form 8-K

 

39

Signatures

 

40

Certifications

 

42

2



Part I

Item 1. Business

            Simon Property Group, Inc. ("Simon Property") is a Delaware corporation that operates as a self-administered and self-managed real estate investment trust ("REIT"). Simon Property Group, L.P. (the "Operating Partnership") is a majority-owned partnership subsidiary of Simon Property that owns all but one of our real estate properties. In this report, the terms "we", "us" and "our" refer to Simon Property, the Operating Partnership and their subsidiaries.

            We are engaged primarily in the ownership, operation, leasing, management, acquisition, expansion and development of real estate properties. Our real estate properties consist primarily of regional malls and community shopping centers. As of December 31, 2002, we owned or held an interest in 246 income-producing properties in the United States, which consisted of 173 regional malls, 68 community shopping centers, and five office and mixed-use properties in 36 states (collectively, the "Properties", and individually, a "Property"). Mixed-use properties are properties that include a combination of retail space, office space, and/or hotel components. We also own interests in four parcels of land held for future development (together with the Properties, the "Portfolio"). In addition, we have ownership interests in other real estate assets and ownership interests in eight retail real estate properties operating in Europe and Canada.

            We believe that our Portfolio is the largest, as measured by gross leasable area ("GLA"), of any publicly-traded retail REIT. In addition, we own more regional malls than any other publicly-traded REIT.

            Mergers and acquisitions have been a significant component of the growth and development of our business. Beginning with the merger with DeBartolo Realty Corporation in August of 1996, we have completed several mergers or acquisitions that have helped shape our current organization. These include the merger with Corporate Property Investors, Inc., in 1998 and the acquisition of the assets of New England Development Company in 1999.

            On May 3, 2002, we purchased, jointly with Westfield America Trust and The Rouse Company, the partnership interests of Rodamco North America N.V. ("Rodamco") and its affiliates. Our portion of the acquisition included the purchase of the remaining partnership interests in four of our existing joint venture Properties, partnership interests in nine additional Properties, and other partnership interests and assets. The purchase price was €2.5 billion for the 45.1 million outstanding shares of Rodamco stock, or €55 per share, and the assumption of certain Rodamco obligations. Our share of the total purchase price was approximately $1.6 billion, including €795.0 million or $720.7 million to acquire Rodamco shares, the assumption of $579 million of debt and preferred units, and cash of $268.8 million to pay off our share of corporate level debt and unwind interest rate swap agreements.

            In October 2002, we sent letters to the Chief Executive Officer and the Board of Directors of Taubman Centers, Inc. ("Taubman Centers") expressing our interest in pursuing a business combination with Taubman Centers and offering to acquire the company at $17.50 per share in cash. On December 5, 2002, Simon Property Acquisitions, Inc. ("Simon Property Acquisitions"), our wholly owned subsidiary, commenced a tender offer to acquire all of the outstanding shares of Taubman Centers at a price of $18.00 per share in cash. On January 15, 2003, Westfield America Inc., the U.S. subsidiary of Westfield America Trust, joined our tender offer and we jointly increased the offer price to $20.00 per share in cash. The Board of Directors of Taubman Centers has recommended that Taubman Centers' shareholders not tender their shares into the tender offer, despite the fact that the current $20.00 per share offer price represents a premium of approximately 50% over the price of Taubman Centers shares on the date we made our first written proposal and is above the highest level that Taubman Centers shares have ever traded. Complete terms and conditions of the tender offer are set forth in the Offer to Purchase, the Supplement thereto and the related revised Letter of Transmittal, each of which has been filed with the Securities and Exchange Commission (the "Commission") as an exhibit to our Tender Offer Statement on Schedule TO.

            On December 5, 2002, we also filed preliminary proxy materials with the Commission relating to a potential meeting of shareholders of Taubman Centers. The purpose of the meeting would be to allow the shareholders of Taubman Centers to approve, pursuant to Chapter 7B of the Michigan Business Corporation Act, voting rights for

3



shares that we anticipate acquiring in the tender offer. On December 11, 2002, Taubman Centers filed a Schedule 14D-9 in which it disclosed that it had amended its by-laws on December 10, 2002 to opt out of Section 7B of the Michigan Business Corporation Act. We currently do not plan on requesting this meeting of shareholders of Taubman Centers as contemplated by this preliminary proxy statement unless Taubman Centers again becomes subject to Section 7B of the Michigan Business Corporation Act.

            On December 11, 2002, Taubman Centers filed a Schedule 14D-9 with the Commission recommending that Taubman Centers' common shareholders reject our tender offer.

            On December 16, 2002, we filed separate preliminary proxy materials with the Commission requesting agent designations from the holders of outstanding voting securities of Taubman Centers in order to permit us to call a special meeting of Taubman Centers' shareholders. The purpose of the special meeting would be to permit the holders of these voting securities to vote on the removal of certain impediments to our tender offer, including the applicability of the "excess share" provisions contained in Taubman Centers' articles of incorporation. On February 21, 2003, we filed an amendment to these preliminary proxy materials, which includes updated information regarding our tender offer and litigation.

            On January 15, 2003, Westfield America Inc., the U.S. subsidiary of Westfield America Trust, joined our tender offer pursuant to the terms of an Offer Agreement and we jointly increased the offer price to $20.00 per share net to the seller in cash and extended the expiration date of the tender offer to February 14, 2003.

            On January 21, 2003, Taubman Centers filed an amendment to its Schedule 14D-9 with the Commission recommending that Taubman Centers' common shareholders reject our amended tender offer.

            On January 22, 2003, the Court issued an opinion and order denying in part, and granting in part, Taubman Centers' and the other defendants' motion to dismiss Count I of our complaint, as amended. The Court held that while the issuance in 1998 of the Series B Preferred Stock by Taubman Centers to the Taubman family did not violate Michigan law, the Taubman family's purported blocking position in Taubman Centers may be challenged by us. We have filed a motion for preliminary injunction and the Court has scheduled a hearing for March 21, 2003. At that hearing, we intend to argue that, among other things, the Taubman family's "group" voting power was obtained in violation of Michigan law, that the Taubman family's Series B Preferred Stock was improperly acquired in breach of fiduciary duties owed to Taubman Centers' public shareholders and that the Taubman Centers' Board of Directors has breached, and is continuing to breach, its fiduciary duties to the Taubman Centers' public shareholders. Both parties have filed legal briefs on their issues. If the Court rules in our favor at the March 21, 2003 hearing, the entire voting position the Taubman family purports to wield is subject to being legally invalidated.

            On February 17, 2003, we announced, jointly with Westfield America Inc., that as of February 14, 2003, 44,135,107 common shares, or approximately 85% of the outstanding common shares, of Taubman Centers had been tendered into our offer and that the expiration date of the tender offer was extended to March 28, 2003.

            On March 4, 2003, Taubman Centers' Board of Directors sent a letter to David Simon, our Chief Executive Officer, and Peter Lowy, the Chief Executive Officer of Westfield America, Inc., in which they reiterated their unanimous rejection of our tender offer as not in the best interests of Taubman Centers' shareholders.

            Effective December 31, 2002, SPG Realty Consultants, Inc. ("SPG Realty") was merged into Simon Property, ending the "paired share" REIT structure resulting from our combination with Corporate Property Investors, Inc. All of the outstanding stock of SPG Realty was previously held in trust for the benefit of the holders of common stock of Simon Property. As a result of the merger, our stockholders who were previously the beneficial owners of the SPG Realty stock are now, by virtue of their ownership of our common stock, the owners of the assets and operations formerly owned or conducted by SPG Realty. SPG Realty Consultants, L.P., the former majority-owned subsidiary partnership of SPG Realty, is now a subsidiary partnership of Simon Property.

            M.S. Management Associates, Inc. (the "Management Company") provides leasing, management and development services as well as project management, accounting, legal, marketing and management information systems services to most of the Properties. In addition, insurance subsidiaries of the Management Company reinsure the self-insured retention portion of our general liability and workers' compensation programs. Third party providers provide coverage above the insurance subsidiaries' limits.

4



            On January 1, 2003, the Operating Partnership acquired all of the remaining equity interests of the Management Company. The interests acquired consist of 95% of the voting common stock and 1.25% of the non-voting common stock of the Management Company and approximately 2% of the economic interests of the Management Company. The interests were acquired from Melvin Simon, Herbert Simon and David Simon (the "Simons"), for a total purchase price of $425,000, which was equal to the appraised value of the interests as determined by an independent third party. The acquisition was unanimously approved by our independent directors. As a result, the Management Company is now a wholly owned consolidated taxable REIT subsidiary ("TRS") of the Operating Partnership.

            As part of our strategic plan to own quality retail real estate, we continue to pursue the sale, under the right circumstances, of Properties that no longer meet our strategic criteria. We believe that the sale of these non-core Properties will not have a material impact on our future results of operations or cash flows nor will their sale materially affect our ongoing operations.

            During 2002, we sold our interests in 15 of the 252 Properties we owned as of December 31, 2001 summarized as follows:

            In addition, in January 2003, we continued our disposition activities with the sale of a portfolio of four non-core Properties. We believe that any earnings dilution on our results of operations from these dispositions will be more than offset by the positive impact of the Rodamco acquisition.

Operating Policies and Strategies

            The following is a discussion of our investment policies, financing policies, conflicts of interest policies and policies with respect to certain other activities. Our Board of Directors may amend or rescind these policies from time to time at its discretion without a stockholder vote.

            We conduct all of our investment activities, except for one Property that we own directly, through the Operating Partnership and will continue to do so for as long as the Operating Partnership exists. Our primary business objectives are to increase Funds From Operations ("FFO") per share and the value of our Properties and operations while maintaining a stable balance sheet consistent with our financing policies. We intend to achieve these objectives by:

            We cannot assure you, however, that we will achieve our business objectives.

            It is our policy to develop and acquire properties to generate both current income and long-term appreciation in value. We do not have a policy limiting the amount or percentage of assets that may be invested in any particular property or type of property or in any geographic area. We may purchase or lease properties for long-term investment or develop, redevelop, and/or sell our Properties, in whole or in part, when circumstances warrant. We currently participate and may continue to participate with other entities in property ownership, through joint ventures or other types of co-ownership. These equity investments may be subject to existing mortgage financing and other indebtedness that have priority over our equity interest.

5



            While we emphasize equity real estate investments, we may, in our discretion, invest in mortgages and other real estate interests consistent with our qualification as a REIT. Mortgages in which we invest may or may not be insured by a governmental agency. We do not intend to invest to a significant extent in mortgages or deeds of trust. We may invest in participating or convertible mortgages, however, if we conclude that we may benefit from the cash flow or any appreciation in the value of the property.

            We may also invest in securities of other entities engaged in real estate activities or securities of other issuers. However, any such investments would be subject to the percentage ownership limitations and gross income tests necessary for REIT qualification under the Internal Revenue Code. The REIT limitations mean that we cannot make an investment that would cause our real estate assets to be less than 75% of our total assets. In addition, we must derive at least 75% of our gross income from "rents from real estate" and at least 95% must be derived from rents from real estate, interest, dividends and gains from the sales or disposition of stock or securities.

            Subject to these REIT limitations, we may invest in the securities of other issuers in connection with acquisitions of indirect interests in real estate. Such an investment would normally be in the form of general or limited partnership interests in special purpose partnerships that own one or more properties. We may, in the future, acquire all or substantially all of the securities or assets of other REITs, management companies or similar entities where such investments would be consistent with our investment policies. We do not intend to invest in securities of other issuers for the purpose of exercising control other than the Operating Partnership and certain wholly-owned subsidiaries and to acquire interests in real estate. We do not intend that our investments in securities will require us to register as an "investment company" under the Investment Company Act of 1940, as amended. We intend to divest securities before any such registration would be required.

            We finance our business to maintain compliance with the covenant restrictions of certain agreements relating to the indebtedness of the Operating Partnership that limit our ratio of debt to total market capitalization. For example, the agreements relating to the Operating Partnership's lines of credit and the indentures for the Operating Partnership's debt securities contain convenants that restrict the total amount of debt of the Operating Partnership to 60% of adjusted total assets and secured debt to 55% of adjusted total assets. In addition, these agreements contain covenants requiring compliance with financial ratios. Furthermore, the amount of debt that we may incur is limited as a practical matter by our desire to maintain acceptable ratings for our securities and the debt securities of the Operating Partnership.

            If the Board of Directors determines to seek additional capital, we may raise such capital through additional equity offerings, debt financing, creation of joint ventures with existing ownership interests in Properties, retention of cash flows or a combination of these methods. Our ability to retain cash flows is subject to Internal Revenue Code provisions requiring REITs to distribute a certain percentage of taxable income. We must also take into account taxes that would be imposed on undistributed taxable income. If the Board of Directors determines to raise additional equity capital, it may, without stockholder approval, issue additional shares of common stock or other capital stock. The Board of Directors may issue a number of shares up to the amount of our authorized capital in any manner and on such terms and for such consideration as it deems appropriate. This may include issuing stock in exchange for property. Such securities may be senior to the outstanding classes of common stock. Such securities also may include additional classes of preferred stock which may be convertible into common stock. Existing stockholders will have no preemptive right to purchase shares in any subsequent offering of our securities. Any such offering could cause a dilution of a stockholder's investment in us.

            We anticipate that any additional borrowings would be made through the Operating Partnership. We might, however, incur borrowings that would be reloaned to the Operating Partnership. Borrowings may be in the form of bank borrowings, publicly and privately placed debt instruments, or purchase money obligations to the sellers of properties. Any of such indebtedness may be unsecured or may be secured by any or all of our assets, the Operating Partnership or any existing or new property-owning partnership. Any such indebtedness may also have full or limited recourse to all or any portion of the assets of any of the foregoing. Although we may borrow to fund the payment of dividends, we currently have expectation that we will be regularly required to do so.

6



            We may seek to obtain unsecured or secured lines of credit. We also may determine to issue debt securities. Any such debt securities may be convertible into capital stock or be accompanied by warrants to purchase capital stock. We also may sell or securitize our lease receivables. The proceeds from any borrowings may be used for the following:

            We also may determine to finance acquisitions through the following:

            The ability to offer units of limited partnership interest to transferors may result in beneficial tax treatment for the transferors. This is because the exchange of units for properties may defer the recognition of gain for tax purposes by the transferor. It may also be an advantage for us since certain investors may be limited in the number of shares of our capital stock that they may purchase.

            If the Board of Directors determines to obtain additional debt financing, we intend to do so generally through mortgages on Properties, drawings against revolving lines of credit, or the issuance of unsecured debt. We may do this directly or through an entity owned or controlled by us. The mortgages may be non-recourse, recourse, or cross-collateralized. We do not have a policy limiting the number or amount of mortgages that may be placed on any particular property. Mortgage financing instruments, however, usually limit additional indebtedness on such properties.

            We only invest in or form special purpose entities to obtain permanent financing for properties on attractive terms. Permanent financing for properties is typically structured as a mortgage loan on one or a group of properties in favor of an institutional third party or as a joint venture with a third party or as a securitized financing. For securitized financings, we are required to create special purpose entities to own the properties. These special purpose entities are structured so that they would not be consolidated with us in the event we would ever become subject to a bankruptcy proceeding. We decide upon the structure of the financing based upon the best terms then available to us and whether the proposed financing is consistent with our other business objectives. For accounting purposes, we include the outstanding securitized debt of special purpose entities owning consolidated properties as part of our consolidated indebtedness.

            We maintain policies and have entered into agreements designed to reduce or eliminate potential conflicts of interest. At least a majority of the members of our Board of Directors must be independent directors. Any transaction between us and the Simons or the DeBartolos, including property acquisitions, service and property management agreements and retail space leases, must be approved by a majority of our independent directors.

            The sale by the Operating Partnership of any property that it owns may have an adverse tax impact on the Simons or the DeBartolos and the other limited partners of the Operating Partnership. In order to avoid any conflict of interest between Simon Property and the limited partners of the Operating Partnership, our charter requires that at least six of our independent directors may authorize and require the Operating Partnership to sell any property it owns. Any such sale is subject to applicable agreements with third parties. Noncompetition agreements executed by each of the Simons contain covenants limiting the ability of the Simons to participate in certain shopping center activities in North America.

            We do not intend to make investments other than as previously described. We intend to make investments in such a manner as to be consistent with the REIT requirements of the Internal Revenue Code, unless the Board of

7


Directors determines that it is no longer in our best interests to qualify as a REIT. The Board of Directors may make such a determination because of changing circumstances or changes in the REIT requirements. We have authority to offer shares of our capital stock or other securities in exchange for property. We also have authority to repurchase or otherwise reacquire our shares or any other securities. We may engage in such activities in the future. We may in the future issue shares of our common stock to holders of units of limited partnership interest in the Operating Partnership upon exercise of such holders' rights under the Operating Partnership agreement. We have not made loans to other entities or persons, including our officers and directors, other than to the Management Company and to officers to pay taxes on the vesting of restricted stock. However, it is now our policy to not make any loans to our directors and executive officers for any purpose and all loans previously made to current executive officers have been repaid in full. We may in the future make loans to the Management Company and to joint ventures in which we participate. We do not intend to engage in the following:

            We plan to achieve our primary business objectives through a variety of methods discussed below, although we cannot assure you that that we will achieve such objectives.

            Leasing.    We pursue a leasing strategy that includes:

            Management.    We draw upon our expertise gained through management of a geographically diverse Portfolio, nationally recognized as comprising high quality retail and mixed-use Properties. In doing so, we seek to maximize cash flow through a combination of:

            We believe we are one of the lowest-cost providers of retail space, which has permitted the rents in both regional malls and community shopping centers to increase without raising a tenant's total occupancy cost beyond its ability to pay. We also believe that if we are successful in our efforts to increase sales while controlling operating expenses we will be able to continue to increase base rents at the Properties.

            International Expansion.    We believe that the expertise we have gained through the development and management of our domestic Properties can be utilized in retail properties abroad. We intend to continue the pursuit of international opportunities on a selective basis to enhance shareholder value. There are risks inherent in international operations that may be beyond our control. These include the following risks that may have a negative impact on our results of operations:

8


            Other Revenues.    Due to our size and tenant relationships we also generate revenues from the following sources:

            We consider our direct competitors to be seven other major publicly-held regional mall companies as well as the numerous other commercial developers, real estate companies and other owners of retail real estate that compete with us in our trade areas. In addition, our Properties compete against non-physical based forms of retailing such as catalog companies and e-commerce websites that offer similar retail products. Some of our Properties are of the same type and are within the same market area as other competitive properties. The existence of competitive properties could have a material adverse effect on our ability to lease space and on the level of rents we can obtain. This results in competition for both acquisition of prime sites (including land for development and operating properties) and for tenants to occupy the space that we and our competitors develop and manage. We believe that we have a competitive advantage in the retail real estate business as a result of:

            General Compliance.    We believe that the Portfolio is in compliance, in all material respects, with all Federal, state and local environmental laws, ordinances and regulations regarding hazardous or toxic substances. Nearly all of the Portfolio has been subjected to Phase I or similar environmental audits (which generally involve only a review of records and visual inspection of the property without soil sampling or ground water analysis) by independent environmental consultants. Phase I environmental audits are intended to discover information regarding, and to evaluate the environmental condition of, the surveyed properties and surrounding properties. These environmental audits have not revealed, nor are we aware of, any environmental liability that we believe will have a material adverse effect on our results of operations. We cannot assure you that:

            Asbestos-Containing Materials.    Asbestos-containing materials are present in most of the Properties, primarily in the form of vinyl asbestos tile, mastics and roofing materials, which we believe are generally in good condition. Fireproofing and insulation containing asbestos is also present in certain Properties in limited concentrations or in

9



limited areas. The presence of such asbestos-containing materials does not violate currently applicable laws. Generally, we remove asbestos-containing materials as required in the ordinary course of any renovation, reconstruction, or expansion, and in connection with the retenanting of space.

            Underground Storage Tanks.    Several of the Properties contain, or at one time contained, underground storage tanks used to store waste oils or other petroleum products primarily related to auto services center establishments or emergency electrical generation equipment. We believe that regulated tanks have been removed, upgraded or abandoned in place in accordance with applicable environmental laws. Site assessments have revealed certain soil and groundwater contamination associated with such tanks at some of these Properties. Subsurface investigations (Phase II assessments) and remediation activities are either completed, ongoing, or scheduled to be conducted at such Properties. The cost of remediation with respect to such matters has not been material and we do not expect these costs will have a material adverse effect on our results of operations.

            Properties to be Developed or Acquired.    Land held for mall development or that may be acquired for development may contain residues or debris associated with the use of the land by prior owners or third parties. In certain instances, such residues or debris could be or contain hazardous wastes or hazardous substances. Prior to exercising any option to acquire properties, we typically conduct environmental due diligence consistent with acceptable industry standards.

            During the past three years, we have:

            At February 14, 2003 we and our affiliates employed approximately 4,020 persons at various centers and offices throughout the United States, of which approximately 1,610 were part-time. Approximately 830 of these employees were located at our headquarters.

10


            Our executive offices are located at National City Center, 115 West Washington Street, Indianapolis, Indiana 46204, and our telephone number is (317) 636-1600.

            Our Internet website address is www.shopsimon.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available or may be accessed free of charge through the Corporate Info/Investor Relations section of our Internet website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our internet website and the information contained therein or connected thereto are not intended to be incorporated into this Annual Report on Form 10-K.

            The following table sets forth certain information with respect to the executive officers of Simon Property as of December 31, 2002.

Name

  Age
  Position
Melvin Simon (1)   76   Co-Chairman
Herbert Simon (1)   68   Co-Chairman
David Simon (1)   41   Chief Executive Officer
Hans C. Mautner   65   Vice Chairman; Chairman, Simon Global Limited
Richard S. Sokolov   53   President and Chief Operating Officer
Randolph L. Foxworthy   58   Executive Vice President — Corporate Development
Gary L. Lewis   44   Executive Vice President — Leasing
Stephen E. Sterrett   47   Executive Vice President and Chief Financial Officer
J. Scott Mumphrey   51   Executive Vice President — Property Management
John Rulli   46   Executive Vice President — Chief Administrative Officer
James M. Barkley   51   General Counsel; Secretary
Andrew A. Juster   50   Senior Vice President and Treasurer

(1)
Melvin Simon is the brother of Herbert Simon and the father of David Simon.

            Set forth below is a summary of the business experience of the executive officers of Simon Property. The executive officers of Simon Property serve at the pleasure of the Board of Directors. For biographical information of Melvin Simon, Herbert Simon, David Simon, Hans C. Mautner, and Richard S. Sokolov, see Item 10 of this report.

            Mr. Foxworthy is the Executive Vice President — Corporate Development of Simon Property. Mr. Foxworthy joined Melvin Simon & Associates, Inc. ("MSA") in 1980 and has been an Executive Vice President in charge of Corporate Development of MSA since 1986 and has held the same position with Simon Property since 1993.

            Mr. Lewis is the Executive Vice President — Leasing of Simon Property. Mr. Lewis joined MSA in 1986 and held various positions with MSA and Simon Property prior to becoming Executive Vice President in charge of Leasing of Simon Property in 2002.

            Mr. Sterrett serves as Simon Property's Executive Vice-President and Chief Financial Officer. He joined MSA in 1989 and has held various positions with MSA until 1993 when he became Simon Property's Senior Vice-President and Treasurer. He became Simon Property's Chief Financial Officer in 2001.

            Mr. Mumphrey serves as Simon Property's Executive Vice President — Property Management. He joined MSA in 1974 and also held various positions with MSA before becoming Senior Vice President of property management in 1993. In 2000, he became the President of Simon Business Network.

            Mr. Rulli serves as Simon Property's Executive Vice-President and Chief Administrative Officer. He joined MSA in 1988 and held various positions with MSA before becoming Simon Property's Executive Vice President in 1993 and Chief Administrative Officer in 2000.

            Mr. Barkley serves as Simon Property's General Counsel and Secretary. Mr. Barkley holds the same position for MSA. He joined MSA in 1978 as Assistant General Counsel for Development Activity.

11



            Mr. Juster serves as Simon Property's Senior Vice-President and Treasurer. He joined MSA in 1989 and held various financial positions with MSA until 1993 and thereafter has held various positions with Simon Property.


Item 2. Properties

            Our Properties primarily consist of regional malls and community shopping centers. Our Properties contain an aggregate of approximately 184.5 million square feet of GLA, of which we own 105.9 million square feet ("Owned GLA"). Our size has allowed us to eliminate significant dependence upon one retail tenant. More than 3,900 different retailers occupy more than 20,000 stores in our Properties and no retail tenant represents more than 5.3% of our Properties' total minimum rents. Total estimated retail sales at the Properties in 2002 were approximately $40 billion.

            Regional malls generally contain two or more anchors and a wide variety of smaller stores ("Mall" stores) located in enclosed malls connecting the anchors. Additional stores ("Freestanding" stores) are usually located along the perimeter of the parking area. Our 173 regional malls range in size from approximately 200,000 to 2.8 million square feet of GLA, with all but six regional malls over 400,000 square feet. Our regional malls contain in the aggregate more than 17,500 occupied stores, including over 650 anchors, which are mostly national retailers.

            Community shopping centers are generally unenclosed and smaller than regional malls. Our 68 community shopping centers generally range in size from approximately 50,000 to 600,000 square feet of GLA. Community shopping centers generally are of two types. First, we own traditional community centers that focus primarily on value-oriented and convenience goods and services. These centers are usually anchored by a supermarket, drugstore or discount retailer and are designed to service a neighborhood area. Second, we own "power centers" that are designed to serve a larger trade area and contain at least two anchors that are usually national retailers among the leaders in their markets and occupy more than 70% of the GLA in the center.

            We also have interests in five office and mixed-use Properties. The five office and mixed-use Properties range in size from approximately 496,000 to 1,214,000 square feet of GLA. Three of these Properties are regional malls with connected office buildings, and two are located in mixed-use developments and contain primarily office space.

            The following table provides data as of December 31, 2002:

 
  Regional
Malls

  Community
Centers

  Office and
Other

 
% of total annualized base rent   90.7 % 5.5 % 3.8 %
% of total GLA   88.7 % 9.3 % 2.0 %
% of Owned GLA   85.3 % 11.3 % 3.4 %

            As of December 31, 2002, approximately 92.7% of the Mall and Freestanding Owned GLA in regional malls and the retail space in the mixed-use Properties was leased, and approximately 86.9% of Owned GLA in the community shopping centers was leased.

            We own 100% of 164 of our 246 Properties, control 14 Properties in which we have a joint venture interest, and hold the remaining 68 Properties through unconsolidated joint venture interests. We are the managing or co-managing general partner or member of 237 of our Properties. Substantially all of our joint venture Properties are subject to rights of first refusal, buy-sell provisions, or other sale rights for all partners which are customary in real estate partnership agreements and the industry. Our partner in our joint ventures may initiate these provisions at any time, which will result in either the use of available cash or borrowings to acquire their partnership interest or the disposal of our partnership interest.

12


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
    REGIONAL MALLS                                                

1.

 

Alton Square

 

IL

 

Alton

 

Fee

 

100.0

%

 

 

Acquired 1993

 

69.2

%

639,220

 

 

 

426,315

 

212,905

 

Sears, JCPenney, Famous Barr
2.   Anderson Mall   SC   Anderson   Fee   100.0 %     Built 1972   89.6 % 622,210       404,394   217,816   Belk, Belk Mens & Home Store, JCPenney, Sears
3.   Apple Blossom Mall   VA   Winchester   Fee   49.1 % (4)   Acquired 1999   82.3 % 443,270       229,011   214,259   Belk, JCPenney, Sears
4.   Arsenal Mall   MA   Watertown (Boston)   Fee   100.0 %     Acquired 1999   93.6 % 501,890   (28 ) 191,395   310,495   Marshalls, Home Depot,
Linens-N-Things, Filene's Basement
5.   Atrium Mall   MA   Chestnut Hill (Boston)   Fee   49.1 % (4)   Acquired 1999   99.0 % 206,062           206,062   Border Books & Music, Cheesecake
Factory, Tiffany
6.   Auburn Mall   MA   Auburn (Boston)   Fee   49.1 % (4)   Acquired 1999   90.4 % 592,368       417,620   174,748   Filene's, Filene's Home Store, Sears
7.   Aurora Mall   CO   Aurora   Fee   100.0 %     Acquired 1998   84.8 % 1,014,180       566,015   448,165   JCPenney, Foley's, Foley's Mens & Home, Sears
8.   Aventura Mall (5)   FL   Miami   Fee   33.3 % (4)   Built 1983   95.4 % 1,901,213       1,242,098   659,115   Macy's, Sears, Bloomingdales,
JCPenney, Lord & Taylor, Burdines
9.   Avenues, The   FL   Jacksonville   Fee   25.0 % (4)   Built 1990   96.0 % 1,118,145       754,956   363,189   Belk, Dillard's, JCPenney, Parisian, Sears
10.   Barton Creek Square   TX   Austin   Fee   100.0 %     Built 1981   96.6 % 1,244,079       777,266   466,813   Dillard's Womens & Home, Dillard's Mens & Children, Foley's, Sears, Nordstrom (6), JCPenney
11.   Battlefield Mall   MO   Springfield   Fee and Ground Lease (2056)   100.0 %     Built 1970   92.1 % 1,184,684       770,111   414,573   Dillard's Women, Dillard's Mens, Children & Home, Famous Barr, Sears, JCPenney
12.   Bay Park Square   WI   Green Bay   Fee   100.0 %     Built 1980   99.9 % 652,024       447,508   204,516   Younkers (6), Elder-Beerman, Kohl's, Shopko
13.   Bergen Mall   NJ   Paramus (NYC)   Fee and Ground Lease (7) (2061)   100.0 %     Acquired 1987   96.0 % 857,889       453,260   404,629   Off 5th-Saks Fifth Avenue Outlet, Value City Furniture, Macy's, Marshalls
14.   Biltmore Square   NC   Asheville   Fee   100.0 %     Built 1989   73.4 % 494,236       242,576   251,660   Belk, Dillard's, Proffitt's, Goody's
15.   Bowie Town Center   MD   Bowie   Fee   100.0 %     Built 2001   100.0 % 664,215       338,567   325,648   Hecht's, Sears, Barnes & Noble, Bed, Bath & Beyond
16.   Boynton Beach Mall   FL   Boynton Beach   Fee   100.0 %     Built 1985   98.5 % 1,183,677       883,720   299,957   Macy's, Burdines, Sears, Dillard's Mens & Home, Dillard's Women, JCPenney
17.   Brea Mall   CA   Brea   Fee   100.0 %     Acquired 1998   98.3 % 1,314,612       874,802   439,810   Macy's, JCPenney, Robinsons-May, Nordstrom, Sears

13


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
18.   Broadway Square   TX   Tyler   Fee   100.0 %     Acquired 1994   99.1 % 618,267       427,730   190,537   Dillard's, JCPenney, Sears
19.   Brunswick Square   NJ   East Brunswick (NYC)   Fee   100.0 %     Built 1973   98.2 % 772,635       467,626   305,009   Macy's, JCPenney, Barnes & Noble
20.   Burlington Mall   MA   Burlington   Ground Lease (2048)   100.0 %     Acquired 1998   99.2 % 1,253,162       836,236   416,926   Macy's, Lord & Taylor, Filene's, Sears
21.   Cape Cod Mall   MA   Hyannis   Ground Leases (7) (2009-2073)   49.1 % (4)   Acquired 1999   98.2 % 723,838       420,199   303,639   Macy's, Filene's, Marshalls, Sears, Best Buy, Barnes & Noble
22.   Castleton Square   IN   Indianapolis   Fee   100.0 %     Built 1972   95.6 % 1,447,966       1,082,021   365,945   Galyan's, L.S. Ayres, Lazarus, JCPenney, Sears, Von Maur
23.   Century III Mall   PA   West Mifflin (Pittsburgh)   Fee   100.0 %     Built 1979   80.8 % 1,283,945       725,360   558,585   JCPenney, Sears, Kaufmann's, Kaufmann's Home Store, Wickes Furniture, Steve & Barry's (6)
24.   Charlottesville Fashion Square   VA   Charlottesville   Ground Lease (2076)   100.0 %     Acquired 1997   96.1 % 572,285       381,153   191,132   Belk Womens & Children, Belk Mens & Home, JCPenney, Sears
25.   Chautauqua Mall   NY   Lakewood   Fee   100.0 %     Built 1971   90.5 % 432,186       213,320   218,866   Sears, JCPenney, Office Max, The Bon Ton
26.   Cheltenham Square   PA   Philadelphia   Fee   100.0 %     Built 1981   96.7 % 635,372       364,106   271,266   Burlington Coat Factory, Home Depot,
Value City, Seaman's Furniture, Shop Rite
27.   Chesapeake Square   VA   Chesapeake (Norfolk)   Fee and Ground Lease (2062)   75.0 %     Built 1989   91.3 % 809,561       537,279   272,282   Dillard's Women, Dillard's Mens, Children & Home, JCPenney, Sears, Hecht's, Target
28.   Cielo Vista Mall   TX   El Paso   Fee and Ground Lease (9) (2027)   100.0 %     Built 1974   93.6 % 1,191,682       793,716   397,966   Dillard's Womens & Furniture, Dillard's Mens, Children & Home, JCPenney, Foley's, Sears
29.   Circle Centre   IN   Indianapolis   Property Lease (2097)   14.7 % (4)   Built 1995   91.9 % 790,970       350,000   440,970   Nordstrom, Parisian
30.   College Mall   IN   Bloomington   Fee and Ground Lease (9) (2048)   100.0 %     Built 1965   96.8 % 706,883       439,766   267,117   Sears, Lazarus (10), L.S. Ayres, Target (6), (8)
31.   Columbia Center   WA   Kennewick   Fee   100.0 %     Acquired 1987   97.1 % 741,173       408,052   333,121   Sears, JCPenney, Barnes & Noble, The
Bon Marche, The Bon Marche Mens & Children
32.   Coral Square   FL   Coral Springs   Fee   97.2 %     Built 1984   98.4 % 943,446       648,144   295,302   Dillard's, JCPenney, Sears, Burdines
Mens, Children & Home, Burdines Women
33.   Cordova Mall   FL   Pensecola   Fee   100.0 %     Acquired 1998   89.7 % 851,641       488,263   363,378   Parisian, Dillard's Men, Dillard's Women,
Best Buy, Bed, Bath & Beyond
34.   Cottonwood Mall   NM   Albuquerque   Fee   100.0 %     Built 1996   87.3 % 1,041,189       631,556   409,633   Dillard's, Foley's, JCPenney,
Mervyn's, Sears

14


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
35.   Crossroads Mall   NE   Omaha   Fee   100.0 %     Acquired 1994   91.6 % 858,455       609,669   248,786   Dillard's, Sears, Younkers, Barnes & Noble
36.   Crystal Mall   CT   Waterford   Fee   74.6 % (4)   Acquired 1998   92.3 % 793,716       442,311   351,405   Macy's, Filene's, JC Penney, Sears
37.   Crystal River Mall   FL   Crystal River   Fee   100.0 %     Built 1990   87.8 % 424,157       302,495   121,662   JCPenney, Sears, Belk, Kmart
38.   Dadeland Mall   FL   North Miami Beach   Fee   50.0 % (4)   Acquired 1997   94.8 % 1,393,621       1,062,072   331,549   Saks Fifth Avenue, JCPenney, Burdine's, Burdine's Home Gallery, The Limited, Lord & Taylor (6)
39.   DeSoto Square   FL   Bradenton   Fee   100.0 %     Built 1973   96.1 % 691,119       435,467   255,652   JCPenney, Sears, Dillard's, Burdines
40.   Eastern Hills Mall   NY   Williamsville   Fee   100.0 %     Built 1971   75.1 % 994,014       713,070   280,944   Sears, JCPenney, The Bon Ton,
Kaufmann's, Burlington Coat Factory, (8)
41.   Eastland Mall   IN   Evansville   Fee   50.0 % (4)   Acquired 1998   99.4 % 897,871       532,955   364,916   JCPenney, De Jong's, Famous Barr, Lazarus
42.   Eastland Mall   OK   Tulsa   Fee   100.0 %     Built 1986   67.9 % 699,335       435,843   263,492   Dillard's, Foley's, Mervyn's, Mickey's, (8)
43.   Edison Mall   FL   Fort Meyers   Fee   100.0 %     Acquired 1997   98.4 % 1,041,918       742,667   299,251   Dillard's, JCPenney, Sears, Burdines
Mens, Children & Home, Burdines Women
44.   Emerald Square   MA   North Attleboro (Boston)   Fee   49.1 % (4)   Acquired 1999   99.1 % 1,021,972       647,372   374,600   Filene's, JCPenney, Lord & Taylor, Sears
45.   Empire Mall (5)   SD   Sioux Falls   Fee and Ground Lease (7) (2013)   50.0 % (4)   Acquired 1998   87.8 % 1,047,883       497,341   550,542   JCPenney, Younkers, Sears, Richman Gordman, Marshall Field's
46.   Fashion Mall at Keystone at the Crossing, The   IN   Indianapolis   Ground Lease (2067)   100.0 %     Acquired 1997   96.8 % 658,370   (29 ) 249,721   408,649   Parisian, Saks Fifth Avenue (6)
47.   Fashion Valley Mall   CA   San Diego   Fee   50.0 % (4)   Acquired 2001   98.7 % 1,710,046       1,053,305   656,741   JCPenney, Macy's, Neiman-Marcus, Nordstrom, Robinson-May, Saks Fifth Avenue
48.   Florida Mall, The   FL   Orlando   Fee   50.0 % (4)   Built 1986   94.1 % 1,835,073       1,218,085   616,988   Dillard's, JCPenney, Lord & Taylor, Saks Fifth Avenue, Sears, Burdines, Nordstrom
49.   Forest Mall   WI   Fond Du Lac   Fee   100.0 %     Built 1973   93.5 % 501,374       327,260   174,114   JCPenney, Kohl's, Younkers, Sears, Staples
50.   Forest Village Park Mall   MD   Forestville (Washington, D.C.)   Fee   100.0 %     Built 1980   98.0 % 417,207       242,567   174,640   JCPenney, (8)
51.   Forum Shops at Caesars, The   NV   Las Vegas   Ground Lease (2050)   (11 )     Built 1992   98.5 % 483,366           483,366  

15


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
52.   Granite Run Mall   PA   Media (Philadelphia)   Fee   50.0 % (4)   Acquired 1998   95.9 % 1,047,438       500,809   546,629   JCPenney, Sears, Boscovs
53.   Great Lakes Mall   OH   Mentor (Cleveland)   Fee   100.0 %     Built 1961   89.7 % 1,305,841       879,300   426,541   Dillard's Men, Dillard's Women, Kaufmann's, JCPenney, Sears
54.   Greendale Mall   MA   Worcester (Boston)   Fee and Ground Lease (7) (2009)   49.1 % (4)   Acquired 1999   87.8 % 431,512   (30 ) 132,634   298,878   Best Buy, Marshalls, T.J. Maxx & More, Family Fitness (6)
55.   Greenwood Park Mall   IN   Greenwood   Fee   100.0 %     Acquired 1979   92.9 % 1,327,719       898,928   428,791   JCPenney, JCPenney Home Store, Lazarus, L.S. Ayres, Sears, Von Maur, Dick's Clothing & Sporting Goods (6)
56.   Gulf View Square   FL   Port Richey   Fee   100.0 %     Built 1980   91.3 % 803,156       568,882   234,274   Sears, Dillard's, JCPenney, Burdines, (8)
57.   Gwinnett Place   GA   Duluth (Atlanta)   Fee   50.0 % (4)   Acquired 1998   91.1 % 1,276,839       843,609   433,230   Parisian, Rich's-Macy's, JCPenney, Sears
58.   Haywood Mall   SC   Greenville   Fee and Ground Lease (7) (2017)   100.0 %     Acquired 1998   96.1 % 1,244,493       913,633   330,860   Rich's, Sears, Dillard's, JCPenney, Belk
59.   Heritage Park Mall   OK   Midwest City (Oklahoma City)   Fee   100.0 %     Built 1978   61.0 % 604,880       382,700   222,180   Dillard's, Sears, (8)
60.   Highland Mall (5)   TX   Austin   Fee and Ground Lease (2070)   50.0 % (4)   Acquired 1998   96.5 % 1,090,685       732,000   358,685   Dillard's Women & Home, Dillard's Mens & Children, Foley's, JCPenney
61.   Hutchinson Mall   KS   Hutchinson   Fee   100.0 %     Built 1985   79.3 % 525,672       277,665   248,007   Dillard's, JCPenney, Sears
62.   Independence Center   MO   Independence   Fee   100.0 %     Acquired 1994   95.8 % 1,022,852       499,284   523,568   Dillard's, Sears, The Jones Store Co.
63.   Indian River Mall   FL   Vero Beach   Fee   50.0 % (4)   Built 1996   91.4 % 747,997       445,552   302,445   Sears, JCPenney, Dillard's, Burdines
64.   Ingram Park Mall   TX   San Antonio   Fee   100.0 %     Built 1979   97.4 % 1,128,796       751,704   377,092   Dillard's, Dillard's Home Center,
Foley's, JCPenney, Sears, Beall's
65.   Irving Mall   TX   Irving (Dallas)   Fee   100.0 %     Built 1971   96.7 % 1,124,245       726,574   397,671   Foley's, Dillard's, Mervyn's, Sears,
Barnes & Noble (8)
66.   Jefferson Valley Mall   NY   Yorktown Heights   Fee   100.0 %     Built 1983   95.3 % 586,995       310,095   276,900   Macy's, Sears, H&M
67.   Knoxville Center   TN   Knoxville   Fee   100.0 %     Built 1984   88.1 % 979,476       597,028   382,448   Dillard's, JCPenney, Proffitt's, Sears, The Rush
68.   La Plaza Mall   TX   McAllen   Fee and Ground Lease (9) (2040)   100.0 %     Built 1976   98.9 % 1,215,105       788,896   426,209   Dillard's, JCPenney, Foley's, Foley's Home Store, Sears, Beall's, Joe Brand-Lady Brand

16


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
69.   Lafayette Square   IN   Indianapolis   Fee   100.0 %     Built 1968   94.8 % 1,213,025       937,223   275,802   JCPenney, L.S. Ayres, Sears, Burlington Coat Factory, Lazarus (10), Steve & Barry's
70.   Laguna Hills Mall   CA   Laguna Hills   Fee   100.0 %     Acquired 1997   97.4 % 867,689       536,500   331,189   Macy's, JCPenney, Sears
71.   Lake Square Mall   FL   Leesburg   Fee   50.0 % (4)   Acquired 1998   93.5 % 561,303       296,037   265,266   JCPenney, Sears, Belk, Target
72.   Lakeline Mall   TX   Austin   Fee   100.0 %     Built 1995   93.5 % 1,100,388       745,179   355,209   Dillard's, Foley's, Sears, JCPenney, Mervyn's
73.   Lenox Square   GA   Atlanta   Fee   100.0 %     Acquired 1998   95.8 % 1,481,514       821,356   660,158   Neiman Marcus, Rich's-Macy's, Bloomingdale's (6)
74.   Liberty Tree Mall   MA   Danvers (Boston)   Fee   49.1 % (4)   Acquired 1999   98.4 % 856,879       498,000   358,879   Marshalls, Sports Authority, Target, Best Buy, Staples, Bed, Bath & Beyond, Kohl's, Ann & Hope, Stop and Shoppe (6)
75.   Lima Mall   OH   Lima   Fee   100.0 %     Built 1965   93.8 % 745,903       541,861   204,042   Elder-Beerman, Sears, Lazarus, JCPenney
76.   Lincolnwood Town Center   IL   Lincolnwood   Fee   100.0 %     Built 1990   95.6 % 422,256       220,830   201,426   Kohl's (6), Carson Pirie Scott
77.   Lindale Mall (5)   IA   Cedar Rapids   Fee   50.0 % (4)   Acquired 1998   87.6 % 691,824       305,563   386,261   Von Maur, Sears, Younkers, (8)
78.   Livingston Mall   NJ   Livingston (NYC)   Fee   100.0 %     Acquired 1998   99.4 % 985,170       616,128   369,042   Macy's, Sears, Lord & Taylor
79.   Longview Mall   TX   Longview   Fee   100.0 %     Built 1978   85.8 % 613,849       402,843   211,006   Dillard's, Dillard's Men, JCPenney, Sears, Beall's, (8)
80.   Mall at Chestnut Hill   MA   Newton (Boston)   Lease (2039) (13)   47.2 % (4)   Acquired 2002   98.1 % 478,305       297,253   181,052   Bloomingdale's, Filene's
81.   Mall at Rockingham Park   NH   Salem (Boston)   Fee   24.6 % (4)   Acquired 1999   98.8 % 1,020,283       638,111   382,172   Macy's, Filene's, JCPenney, Sears
82.   Mall of America   MN   Bloomington (Minneapolis)   Fee   27.5 % (4)
(14)
  Acquired 1999   97.0 % 2,778,690       1,220,305   1,558,385   Macy's, Bloomingdales, Nordstrom, Sears, Knott's Camp Snoopy
83.   Mall of Georgia   GA   Mill Creek (Atlanta)   Fee   50.0 % (4)   Built 1999   94.0 % 1,785,700       989,590   796,110   Lord & Taylor, Rich's-Macy's, Dillard's, Galyan's, Haverty's, JCPenney, Nordstrom, Bed, Bath & Beyond
84.   Mall of New Hampshire   NH   Manchester   Fee   49.1 % (4)   Acquired 1999   99.0 % 806,274       444,889   361,385   Filene's, JCPenney, Sears, Best Buy
85.   Maplewood Mall   MN   Maplewood (Minneapolis)   Fee   100.0 %     Acquired 2002   85.9 % 909,292       578,060   331,232   Sears, Marshall Field's, Kohl's, Mervyn's

17


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
86.   Markland Mall   IN   Kokomo   Ground Lease (2041)   100.0 %     Built 1968   97.4 % 393,044       252,444   140,600   Lazarus, Sears, Target
87.   McCain Mall   AR   N. Little Rock   Fee and Ground Lease (15) (2032)   100.0 %     Built 1973   99.5 % 777,103       554,156   222,947   Sears, Dillard's, JCPenney, M.M. Cohn
88.   Melbourne Square   FL   Melbourne   Fee   100.0 %     Built 1982   90.1 % 729,381       471,173   258,208   Belk, Dillard's Mens, Children & Home,
Dillard's Women, JCPenney, Burdines
89.   Memorial Mall (16) (17)   WI   Sheboygan   Fee   100.0 %     Built 1969   89.4 % 344,114       228,888   115,226   Kohl's, Sears, Hobby Lobby
90.   Menlo Park Mall   NJ   Edison (NYC)   Fee   100.0 %     Acquired 1997   96.9 % 1,307,233   (31 ) 587,591   719,642   Macy's Women, Macy's Men, Macy's Children & Home,
Nordstrom, Barnes & Noble (6)
91.   Mesa Mall (5)   CO   Grand Junction   Fee   50.0 % (4)   Acquired 1998   87.8 % 867,232       425,817   441,415   Sears, Herberger's, JCPenney, Target, Mervyn's, Gant Sports
92.   Metrocenter   AZ   Phoenix   Fee   50.0 % (4)   Acquired 1998   95.9 % 1,367,281       876,027   491,254   Macy's, Dillard's, Robinsons-May,
JCPenney, Sears, Vans Skate Park
93.   Miami International Mall   FL   South Miami   Fee   47.8 % (4)   Built 1982   96.2 % 972,971       683,308   289,663   Sears, Dillard's, JCPenney, Burdines
Mens & Home, Burdines Women & Children
94.   Midland Park Mall   TX   Midland   Fee   100.0 %     Built 1980   81.8 % 618,995       339,113   279,882   Dillard's, Dillard's Mens & Juniors,
JCPenney, Sears, Beall's, Ross Dress for Less
95.   Miller Hill Mall   MN   Duluth   Ground Lease (2008)   100.0 %     Built 1973   97.8 % 803,758       429,508   374,250   JCPenney, Sears, Younkers, Barnes & Noble
96.   Mounds Mall (16) (17)   IN   Anderson   Ground Lease (2033)   100.0 %     Built 1965   78.3 % 404,423       277,256   127,167   Elder-Beerman, Sears, (8)
97.   Muncie Mall   IN   Muncie   Fee   100.0 %     Built 1970   91.2 % 654,902       435,756   219,146   JCPenney, L.S. Ayres, Sears, Elder Beerman
98.   Nanuet Mall   NY   Nanuet (NYC)   Fee   100.0 %     Acquired 1998   85.6 % 916,014       583,711   332,303   Macy's, Boscov, Sears
99.   North East Mall   TX   Hurst (Ft. Worth)   Fee   100.0 %     Built 1971   97.1 % 1,705,645       1,348,279   357,366   Saks Fifth Avenue, Nordstrom,
Dillard's, JCPenney, Sears, Foley's, (8)
100.   Northfield Square Mall   IL   Bourbonnais   Fee   31.6 % (18)
(4)
  Built 1990   72.7 % 558,317       310,994   247,323   Sears, JCPenney, Carson Pirie Scott Womens, Carson Pirie Scott Mens, Children & Home
101.   Northgate Mall   WA   Seattle   Fee   100.0 %     Acquired 1987   99.1 % 999,449       688,391   311,058   Nordstrom, JCPenney, Gottschalk, The Bon Marche
102.   Northlake Mall   GA   Atlanta   Fee   100.0 %     Acquired 1998   95.6 % 962,163       665,745   296,418   Parisian, Rich's-Macy's, Sears, JCPenney

18


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
103.   Northpark Mall   IA   Davenport   Fee   50.0 % (4)   Acquired 1998   89.8 % 1,073,298       651,533   421,765   Von Maur, Younkers, Dillard's (6),
JCPenney, Sears, Barnes & Noble
104.   Northshore Mall   MA   Peabody (Boston)   Fee   49.1 % (4)   Acquired 1999   96.8 % 1,684,621       989,277   695,344   Macy's, Filene's, JCPenney, Lord & Taylor, Sears
105.   Northwoods Mall   IL   Peoria   Fee   100.0 %     Acquired 1983   94.7 % 695,507       472,969   222,538   Famous Barr, JCPenney, Sears
106.   Oak Court Mall   TN   Memphis   Fee   100.0 %     Acquired 1997   88.1 % 853,194   (32 ) 535,000   318,194   Dillard's Women, Dillard's Mens,
Children & Home, Goldsmith's
107.   Ocean County Mall   NJ   Toms River   Fee   100.0 %     Acquired 1998   93.9 % 902,709       626,638   276,071   Macy's, Boscov's, JCPenney, Sears
108.   Orange Park Mall   FL   Orange Park   Fee   100.0 %     Acquired 1994   98.4 % 923,774       534,180   389,594   Dillard's, JCPenney, Sears, Belk
109.   Orland Square   IL   Orland Park   Fee   100.0 %     Acquired 1997   95.3 % 1,213,286       773,295   439,991   JCPenney, Marshall Field's, Sears,
Carson Pirie Scott
110.   Paddock Mall   FL   Ocala   Fee   100.0 %     Built 1980   93.4 % 560,231       387,378   172,853   JCPenney, Sears, Belk, Burdines
111.   Palm Beach Mall   FL   West Palm Beach   Fee   100.0 %     Built 1967   94.2 % 1,085,273       749,288   335,985   Dillard's, JCPenney, Sears, Burdines, Borders Books & Music, George's Music
112.   Penn Square   OK   Oklahoma City   Ground Lease (2060)   94.5 %     Acquired 2002   98.0 % 1,044,576       658,453   386,123   Foley's, JCPenney, Dillard's Womens, Dillard's Mens, Children & Home
113.   Pheasant Lane Mall   NH   Nashua   (19)   (19 ) (4)   Acquired 2002   97.5 % 988,750       675,759   312,991   Macy's, Filene's, JC Penney, Sears, Target
114.   Phipps Plaza   GA   Atlanta   Fee   100.0 %     Acquired 1998   89.3 % 821,421       472,385   349,036   Lord & Taylor, Parisian, Saks Fifth Avenue
115.   Port Charlotte Town Center   FL   Port Charlotte   Ground Lease (2064)   80.0 % (18)   Built 1989   82.3 % 780,856       458,554   322,302   Dillard's, JCPenney, Beall's, Sears, Burdines
116.   Prien Lake Mall   LA   Lake Charles   Fee and Ground Lease (7) (2025)   100.0 %     Built 1972   96.8 % 811,143       631,762   179,381   Dillard's, JCPenney, Foley's (6) (12), Sears, The White House (20)
117.   Raleigh Springs Mall   TN   Memphis   Fee and Ground Lease (7) (2018)   100.0 %     Built 1979   80.8 % 918,013       691,230   226,783   Dillard's, Sears, Goldsmith's (21), (8)
118.   Richardson Square   TX   Richardson (Dallas)   Fee   100.0 %     Built 1977   90.8 % 755,258       471,436   283,822   Dillard's, Sears, Stein Mart (21), Target, Ross Dress for Less, Barnes & Noble, Super Target
119.   Richmond Square (16) (17)   IN   Richmond   Fee   100.0 %     Built 1966   90.2 % 391,199       260,562   130,637   Dillard's, JCPenney, Sears, Office Max

19


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors

120.

 

Richmond Town Square

 

OH

 

Richmond Heights (Cleveland)

 

Fee

 

100.0

%

 

 

Built 1966

 

98.4

%

1,016,642

 

 

 

685,251

 

331,391

 

Sears, JCPenney, Kaufmann's, Barnes & Noble
121.   River Oaks Center   IL   Calumet City   Fee   100.0 %     Acquired 1997   97.7 % 1,370,213   (33 ) 834,588   535,625   Sears, JCPenney, Carson Pirie Scott, Marshall Field's
122.   Rockaway Townsquare   NJ   Rockaway (NYC)   Fee   100.0 %     Acquired 1998   94.6 % 1,247,470       786,626   460,844   Macy's, Lord & Taylor, JCPenney, Sears
123.   Rolling Oaks Mall   TX   San Antonio   Fee   100.0 %     Built 1988   67.4 % 737,568       460,857   276,711   Sears, Dillard's, Foley's, Tony Hawk's Skate Park (6)
124.   Roosevelt Field Mall   NY   Garden City (NYC)   Fee and Ground Lease (7) (2090)   100.0 %     Acquired 1998   98.5 % 2,177,843       1,430,425   747,418   Macy's, Bloomingdale's, JCPenney, Nordstrom, (8)
125.   Ross Park Mall   PA   Pittsburgh   Fee   100.0 %     Built 1986   96.8 % 1,234,101       827,015   407,086   Lazarus, JCPenney, Sears, Kaufmann's, Media Play, Designer Shoe Warehouse
126.   Rushmore Mall (5)   SD   Rapid City   Fee   50.0 % (4)   Acquired 1998   91.9 % 835,408       470,660   364,748   JCPenney, Sears, Herberger's, Hobby Lobby, Target
127.   Santa Rosa Plaza   CA   Santa Rosa   Fee   100.0 %     Acquired 1998   95.8 % 695,849       428,258   267,591   Macy's, Mervyn's, Sears
128.   Seminole Towne Center   FL   Sanford   Fee   45.0 % (4)   Built 1995   90.0 % 1,153,578       768,798   384,780   Dillard's, JCPenney, Parisian, Sears, Burdines
129.   Shops at Mission Viejo Mall, The   CA   Mission Viejo   Fee   100.0 %     Built 1979   99.4 % 1,149,864       677,215   472,649   Macy's, Saks Fifth Avenue, Robinsons-May, Nordstrom
130.   Shops at Sunset Place, The   FL   Miami   Fee   37.5 % (4)   Built 1999   92.9 % 499,956           499,956   Niketown, Barnes & Noble, Gameworks, Virgin Megastore, Z Gallerie
131.   Smith Haven Mall   NY   Lake Grove (NYC)   Fee   25.0 % (4)   Acquired 1995   93.1 % 1,359,163       902,595   456,568   Macy's, Sears, JCPenney, H&M, (8)
132.   Solomon Pond Mall   MA   Marlborough (Boston)   Fee   49.1 % (4)   Acquired 1999   98.8 % 880,924       506,591   374,333   Filene's, Sears, JCPenney, Linens-N-Things
133.   Source, The   NY   Westbury (NYC)   Fee   25.5 % (4)   Built 1997   93.7 % 727,698       210,798   516,900   Off 5th-Saks Fifth Avenue, Fortunoff, Nordstrom Rack, Old Navy, Circuit City, Virgin Megastore
134.   South Hills Village   PA   Pittsburgh   Fee   100.0 %     Acquired 1997   98.5 % 1,113,156       655,987   457,169   Sears, Kaufmann's, Lazarus
135.   South Park Mall   LA   Shreveport   Fee   100.0 %     Built 1975   64.1 % 857,546       618,915   238,631   Burlington Coat Factory, Stage, (8)
136.   South Shore Plaza   MA   Braintree (Boston)   Fee   100.0 %     Acquired 1998   95.6 % 1,443,088       847,603   595,485   Macy's, Filene's, Lord & Taylor, Sears

20


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
137.   Southern Hills Mall (5)   IA   Sioux City   Fee   50.0 % (4)   Acquired 1998   86.9 % 802,014       372,937   429,077   Younkers, Sears, Target, Sheel's Sporting Goods (6)
138.   Southern Park Mall   OH   Boardman (Youngstown)   Fee   100.0 %     Built 1970   95.1 % 1,197,708       811,858   385,850   Dillard's, JCPenney, Sears, Kaufmann's
139.   Southgate Mall   AZ   Yuma   Fee   100.0 %     Acquired 1988   95.4 % 321,574       252,264   69,310   Sears, Dillard's, JCPenney
140.   SouthPark   NC   Charlotte   Fee & Ground Lease (22) (2040)   100.0 %     Acquired 2002   86.3 % 1,110,342       789,342   321,000   Nordstrom (6), Hecht's, Sears, Belk, Dillard's
141.   Southpark Mall   IL   Moline   Fee   50.0 % (4)   Acquired 1998   87.4 % 1,026,536       578,056   448,480   JCPenney, Dillard's (6), Younkers, Sears, Von Maur
142.   SouthRidge Mall (5)   IA   Des Moines   Fee   50.0 % (4)   Acquired 1998   70.0 % 1,002,538       497,806   504,732   Sears, Younkers, JCPenney, Target, (8)
143.   Square One Mall   MA   Saugus (Boston)   Fee   49.1 % (4)   Acquired 1999   96.8 % 865,290       540,101   325,189   Filene's, Sears, Best Buy, T.J. Maxx N More, Gold's Gym
144.   St. Charles Towne Center   MD   Waldorf (Washington, D.C.)   Fee   100.0 %     Built 1990   94.4 % 987,461       631,602   355,859   Sears, JCPenney, Kohl's, Hecht's, Hecht's Home Store, Dick's Sporting Goods (6)
145.   Summit Mall   OH   Akron   Fee   100.0 %     Built 1965   95.2 % 763,440       432,936   330,504   Dillard's Women & Children, Dillard's Mens & Home, Kaufmann's
146.   Sunland Park Mall   TX   El Paso   Fee   100.0 %     Built 1988   88.7 % 917,710       575,837   341,873   JCPenney, Mervyn's, Sears, Dillard's Women & Children, Dillard's Mens & Home
147.   Tacoma Mall   WA   Tacoma   Fee   100.0 %     Acquired 1987   98.4 % 1,289,633       924,045   365,588   Nordstrom, Sears, JCPenney, The Bon Marche, Mervyn's
148.   The Galleria   TX   Houston   Fee   31.5 % (4)   Acquired 2002   85.2 % 1,755,997       859,066   896,931   Macy's, Saks Fifth Avenue, Neiman Marcus, Lord & Taylor, Nordstrom (6), Foley's (6)
149.   Tippecanoe Mall   IN   Lafayette   Fee   100.0 %     Built 1973   96.4 % 859,556       568,373   291,183   L.S. Ayres, JCPenney, Sears, Kohl's, (8)
150.   Town Center at Boca Raton   FL   Boca Raton   Fee   100.0 %     Acquired 1998   99.0 % 1,555,307       1,061,076   494,231   Lord & Taylor, Saks Fifth Avenue, Bloomingdale's, Sears, Burdines, Nordstrom
151.   Town Center at Cobb   GA   Kennesaw (Atlanta)   Fee   50.0 % (4)   Acquired 1998   97.2 % 1,273,108       851,346   421,762   Rich's-Macy's, Parisian, Sears, JCPenney, Rich's-Macy's Furniture
152.   Towne East Square   KS   Wichita   Fee   100.0 %     Built 1975   92.2 % 1,201,781       788,281   413,500   Dillard's, JCPenney, Sears, Von Maur
153.   Towne West Square   KS   Wichita   Fee   100.0 %     Built 1980   82.5 % 966,017       628,971   337,046   Dillard's Women & Home, Dillard's Mens & Children, Sears, JCPenney, Dick's Sporting Goods (6)

21


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
154.   Treasure Coast Square   FL   Jensen Beach   Fee   100.0 %     Built 1987   90.4 % 871,319       511,372   359,947   Dillard's, Sears, Borders, JCPenney, Burdines
155.   Trolley Square   UT   Salt Lake City   Fee   90.0 %     Acquired 1986   83.2 % 221,982           221,982  
156.   Tyrone Square   FL   St. Petersburg   Fee   100.0 %     Built 1972   98.6 % 1,127,993       748,269   379,724   Dillard's, JCPenney, Sears, Borders, Burdines
157.   University Mall   AR   Little Rock   Ground Lease (2026)   100.0 %     Built 1967   74.4 % 565,494       412,761   152,733   JCPenney, M.M. Cohn
158.   University Mall   FL   Pensacola   Fee   100.0 %     Acquired 1994   87.6 % 707,885       478,449   229,436   JCPenney, Sears, McRae's
159.   University Park Mall   IN   Mishawaka (South Bend)   Fee   60.0 %     Built 1979   99.0 % 940,989       622,508   318,481   L.S. Ayres, JCPenney, Sears, Marshall Field's
160.   Upper Valley Mall   OH   Springfield   Fee   100.0 %     Built 1971   89.3 % 750,598       479,418   271,180   Lazarus, JCPenney, Sears, Elder-Beerman
161.   Valle Vista Mall   TX   Harlingen   Fee   100.0 %     Built 1983   92.9 % 657,084       389,781   267,303   Dillard's, Mervyn's, Sears, JCPenney, Marshalls, Beall's, Office Max
162.   Valley Mall   VA   Harrisonburg   Fee   50.0 % (4)   Acquired 1998   94.3 % 486,850       307,798   179,052   JCPenney, Belk, Wal-Mart, Peebles
163.   Virginia Center Commons   VA   Glen Allen   Fee   100.0 %     Built 1991   96.4 % 787,311       506,639   280,672   Dillard's, Women, Dillard's Mens, Children & Home, Hecht's, JCPenney, Sears
164.   Walt Whitman Mall   NY   Huntington Station (NYC)   Ground Rent (2012)   100.0 %     Acquired 1998   95.0 % 1,017,903       742,214   275,689   Macy's, Lord & Taylor, Bloomingdale's, Saks Fifth Avenue
165.   Washington Square   IN   Indianapolis   Fee   100.0 %     Built 1974   76.3 % 1,140,520       832,326   308,194   L.S. Ayres, Target, Sears, (8)
166.   West Ridge Mall (23)   KS   Topeka   Fee   100.0 %     Built 1988   85.9 % 1,040,309       716,811   323,498   Dillard's, JCPenney, The Jones Store, Sears, Kansas International Museum
167.   West Town Mall   TN   Knoxville   Ground Lease (2042)   50.1 % (4)   Acquired 1991   94.6 % 1,327,764       878,311   449,453   Parisian, Dillard's, JCPenney, Proffitt's, Sears
168.   Westchester, The   NY   White Plains (NYC)   Fee   40.0 % (4)   Acquired 1997   99.2 % 824,588       349,393   475,195   Neiman Marcus, Nordstrom
169.   Westminster Mall   CA   Westminster   Fee   100.0 %     Acquired 1998   92.3 % 1,219,552       716,939   502,613   Sears, JCPenney, Robinsons-May, Macy's
170.   White Oaks Mall   IL   Springfield   Fee   77.5 %     Built 1977   93.4 % 950,116       601,708   348,408   Famous Barr, Sears, Bergner's, (8)
171.   Wolfchase Galleria   TN   Memphis   Fee   94.5 %     Acquired 2002   95.9 % 1,266,276       761,648   504,628   Goldsmith's, JC Penney, Sears, Dillard's
172.   Woodland Hills Mall   OK   Tulsa   Fee   47.2 % (4)   Acquired 2002   95.4 % 1,091,509       709,447   382,062   Foley's, JCPenney, Sears, Dillard's
173.   Woodville Mall (17)   OH   Northwood (Toledo)   Fee   100.0 %     Built 1969   63.3 % 772,394       518,792   253,602   Sears, Elder-Beerman, Andersons

22


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
    COMMUNITY SHOPPING CENTERS                                            

1.

 

Arboretum, The

 

TX

 

Austin

 

Fee

 

100.0

%

 

 

Acquired 1998

 

92.5

%

211,082

 

 

 

35,773

 

175,309

 

Barnes & Noble, Cheescake Factory
2.   Bloomingdale Court   IL   Bloomingdale   Fee   100.0 %     Built 1987   79.8 % 604,763       425,886   178,877   Best Buy, T.J. Maxx N More, Frank's Nursery, Office Max, Old Navy, Linens-N-Things, Wal-Mart, Circuit City (6)
3.   Boardman Plaza   OH   Youngstown   Fee   100.0 %     Built 1951   68.1 % 640,541       375,502   265,039   Burlington Coat Factory, Giant Eagle, Michael's, Linens-N-Things,
T.J. Maxx, Steinmart, Sav-A-Lot, (8)
4.   Bridgeview Court   IL   Bridgeview   Fee   100.0 %     Built 1988   75.4 % 273,678       216,491   57,187   (8)
5.   Brightwood Plaza   IN   Indianapolis   Fee   100.0 %     Built 1965   100.0 % 38,493       0   38,493   Preston Safeway
6.   Celina Plaza   TX   El Paso   Fee and Ground Lease (22) (2027)   100.0 %     Built 1978   100.0 % 32,622       23,927   8,695  
7.   Charles Towne Square   SC   Charleston   Fee   100.0 %     Built 1976   100.0 % 199,693       199,693   0   Regal Cinema
8.   Chesapeake Center   VA   Chesapeake   Fee   100.0 %     Built 1989   66.7 % 299,604       219,462   80,142   K-Mart, Petsmart, Michael's, (8)
9.   Cobblestone Court   NY   Victor   Fee and Ground Lease (9) (2038)   35.0 % (4)   Built 1993   100.0 % 265,499       206,680   58,819   Dick's Sporting Goods, Kmart, Office Max

10.

 

Countryside Plaza

 

IL

 

Countryside

 

Fee and Ground Lease (9) (2058)

 

100.0

%

 

 

Built 1977

 

75.5

%

435,608

 

 

 

290,216

 

145,392

 

Best Buy, Old Country Buffet, Burlington Coat, (8)
11.   Crystal Court   IL   Crystal Lake   Fee   35.0 % (4)   Built 1989   97.7 % 278,971       201,993   76,978   Cub Foods, Wal-Mart
12.   Eastland Convenience Center   IN   Evansville   Ground Lease (2075)   50.0 % (4)   Acquired 1998   94.5 % 173,069       60,000   113,069   Marshalls, Kids "R" Us, Toys "R" Us, Bed, Bath & Beyond
13.   Eastland Plaza   OK   Tulsa   Fee   100.0 %     Built 1986   78.7 % 188,229       152,451   35,778   Marshalls, Target, Toys "R" Us
14.   Empire East (5)   SD   Sioux Falls   Fee   50.0 % (4)   Acquired 1998   91.7 % 250,081       192,766   57,315   Kohl's, Target, (8)
15.   Fairfax Court   VA   Fairfax   Fee   26.3 % (4)   Built 1992   100.0 % 249,297       168,683   80,614   Burlington Coat Factory, Circuit City Superstore
16.   Forest Plaza   IL   Rockford   Fee   100.0 %     Built 1985   98.2 % 429,250       325,170   104,080   Kohl's, Marshalls, Media Play, Michael's, Factory Card Outlet, Office Max, T.J. Maxx, Bed, Bath & Beyond, Petco
17.   Fox River Plaza (17)   IL   Elgin   Fee   100.0 %     Built 1985   0.7 % 322,997       276,096   46,901   (8)

23


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
18.   Gaitway Plaza   FL   Ocala   Fee   23.3 % (4)   Built 1989   83.2 % 230,170       148,074   82,096   Books-A-Million, Office Depot, T.J. Maxx, Ross Dress for Less, Bed, Bath & Beyond
19.   Great Lakes Plaza   OH   Mentor (Cleveland)   Fee   100.0 %     Built 1976   100.0 % 164,104       142,229   21,875   Circuit City, Best Buy, Michael's, Cost Plus World Market
20.   Great Northeast Plaza   PA   Philadelphia   Fee   50.0 % (4)   Acquired 1989   78.6 % 298,125       240,525   57,600   Sears, (8)
21.   Greenwood Plus   IN   Greenwood   Fee   100.0 %     Built 1979   100.0 % 159,931       134,141   25,790   Best Buy, Kohl's
22.   Griffith Park Plaza   IN   Griffith   Ground Lease (2060)   100.0 %     Built 1979   41.5 % 274,230       175,595   98,635   (8)
23.   Grove at Lakeland Square, The   FL   Lakeland   Fee   100.0 %     Built 1988   94.0 % 215,591       142,317   73,274   Sports Authority
24.   Highland Lakes Center   FL   Orlando   Fee   100.0 %     Built 1991   77.6 % 477,986       372,316   105,670   Marshalls, Bed, Bath & Beyond, American Signature Home, Save-Rite, Ross Dress for Less, Office Max, Burlington Coat Factory, (8)
25.   Indian River Commons   FL   Vero Beach   Fee   50.0 % (4)   Built 1997   92.5 % 262,881       233,358   29,523   Lowe's, Best Buy, Ross Dress for Less, Bed, Bath & Beyond, Michael's (6)
26.   Ingram Plaza   TX   San Antonio   Fee   100.0 %     Built 1980   100.0 % 111,518       0   111,518  
27.   Keystone Shoppes   IN   Indianapolis   Ground Lease (2067)   100.0 %     Acquired 1997   92.8 % 29,140       0   29,140  
28.   Knoxville Commons   TN   Knoxville   Fee   100.0 %     Built 1987   60.4 % 180,463       91,483   88,980   Office Max, Circuit City
29.   Lake Plaza   IL   Waukegan   Fee   100.0 %     Built 1986   94.0 % 215,462       170,789   44,673   Pic 'N Save, Home Owners Buyer's Outlet, (8)
30.   Lake View Plaza   IL   Orland Park   Fee   100.0 %     Built 1986   94.5 % 371,480       270,628   100,852   Best Buy, Marshalls, Ulta Cosmetics, Factory Card Outlet, Golf Galaxy, Linens-N-Things, Petco Supplies & Fish, Value City Furniture
31.   Lakeline Plaza   TX   Austin   Fee   100.0 %     Built 1998   98.1 % 344,693       275,321   69,372   Old Navy, Best Buy, Cost Plus World Market, Linens-N-Things, Office Max, Petsmart, Ross Dress for Less, T.J. Maxx, Party City, Ulta Cosmetics, Rooms To Go
32.   Lima Center   OH   Lima   Fee   100.0 %     Built 1978   96.5 % 206,878       159,584   47,294   Kohl's, Hobby Lobby
33.   Lincoln Crossing   IL   O'Fallon   Fee   100.0 %     Built 1990   92.9 % 161,337       134,935   26,402   Wal-Mart, PetsMart
34.   Mainland Crossing   TX   Texas City   Fee   80.0 % (18)   Built 1991   85.7 % 390,987       306,158   84,829   Hobby Lobby, Sam's Club, Wal-Mart

24


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
35.   Mall of Georgia Crossing   GA   Mill Creek (Atlanta)   Fee   50.0 % (4)   Built 1999   91.3 % 440,612       341,503   99,109   Target, Nordstrom Rack, Best Buy, Staples, T.J. Maxx N More, American Signature Home
36.   Markland Plaza   IN   Kokomo   Fee   100.0 %     Built 1974   100.0 % 93,536       29,957   63,579   Best Buy, (8)
37.   Martinsville Plaza   VA   Martinsville   Space Lease (2036)   100.0 %     Built 1967   100.0 % 102,105       60,000   42,105   Rose's
38.   Matteson Plaza   IL   Matteson   Fee   100.0 %     Built 1988   38.7 % 275,455       230,885   44,570   Dominick's, Michael's Arts & Crafts, Value City, (8)
39.   Memorial Plaza   WI   Sheboygan   Fee   100.0 %     Built 1966   97.7 % 131,499       103,974   27,525   Office Max, Big Lots
40.   Mounds Mall Cinema (16) (17)   IN   Anderson   Fee   100.0 %     Built 1974   0.0 % 7,500       7,500   0  
41.   Muncie Plaza   IN   Muncie   Fee   100.0 %     Built 1998   100.0 % 172,651       145,456   27,195   Kohl's, Office Max, Shoe Carnival,
T.J.  Maxx, Target
42.   New Castle Plaza   IN   New Castle   Fee   100.0 %     Built 1966   100.0 % 91,648       24,912   66,736   Goody's
43.   North Ridge Plaza   IL   Joliet   Fee   100.0 %     Built 1985   75.6 % 305,070       190,323   114,747   Minnesota Fabrics, Hobby Lobby, Office Max, Cub Foods, (8)
44.   North Riverside Park Plaza   IL   North Riverside   Fee   100.0 %     Built 1977   93.5 % 119,608       58,587   61,021   Dominick's
45.   Northland Plaza   OH   Columbus   Fee and Ground Lease (7) (2085)   100.0 %     Built 1988   55.3 % 209,534       118,304   91,230   Marshalls, Hobby Lobby, (8)
46.   Northwood Plaza   IN   Fort Wayne   Fee   100.0 %     Built 1974   84.9 % 173,397       99,028   74,369   Target, Cinema Grill, (8)
47.   Park Plaza   KY   Hopkinsville   Fee and Ground Lease (7) (2039)   100.0 %     Built 1968   95.2 % 115,024       82,398   32,626   Big Lots, Wal-Mart (20)
48.   Plaza at Buckland Hills, The   CT   Manchester   Fee   35.0 % (4)   Built 1993   81.5 % 334,487       252,179   82,308   Toys "R" Us, Jo-Ann Etc., Kids "R" Us, Comp USA, Linens-N-Things, Party City, Petsmart, (8)
49.   Regency Plaza   MO   St. Charles   Fee   100.0 %     Built 1988   100.0 % 287,526       210,627   76,899   Wal-Mart, Sam's Wholesale, Petsmart
50.   Ridgewood Court   MS   Jackson   Fee   35.0 % (4)   Built 1993   94.8 % 240,662       185,939   54,723   T.J. Maxx, Bed, Bath & Beyond, Best Buy, Marshalls, Lifeway Christian Stores, Michael's
51.   Rockaway Convenience Center   NJ   Rockaway (NYC)   Fee   100.0 %     Acquired 1998   64.7 % 135,689       20,929   114,760   Kids "R" Us, AMCE Grocery, Best Buy (6)

25


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
52.   Royal Eagle Plaza   FL   Coral Springs   Fee   35.0 % (4)   Built 1989   99.3 % 199,125       124,479   74,646   Kmart, Stein Mart
53.   St. Charles Towne Plaza   MD   Waldorf   Fee   100.0 %     Built 1987   55.0 % 404,988       291,782   113,206   Value City Furniture, T.J. Maxx, Jo Ann Fabrics, CVS, Shoppers Food Warehouse, (8)
54.   Shops at Northeast Mall, The   TX   Hurst   Fee   100.0 %     Built 1999   98.9 % 364,357       265,382   98,975   Old Navy, Nordstrom Rack, Bed, Bath & Beyond, Office Max, Michael's, Petsmart, T.J. Maxx, Ulta Cosmetics, Best Buy, Zany Brainy
55.   Teal Plaza   IN   Lafayette   Fee   100.0 %     Built 1962   100.0 % 101,087       98,337   2,750   Circuit City, Hobby-Lobby, The Pep Boys
56.   Terrace at the Florida Mall   FL   Orlando   Fee   100.0 %     Built 1989   59.4 % 329,362       281,831   47,531   Marshalls, Target, American Signature Home, (8)
57.   Tippecanoe Plaza   IN   Lafayette   Fee   100.0 %     Built 1974   100.0 % 94,598       85,811   8,787   Best Buy, Barnes & Noble
58.   University Center   IN   Mishawaka (South Bend)   Fee   60.0 %     Built 1980   90.1 % 150,548       104,359   46,189   Best Buy (6), Michaels
59.   Village Park Plaza   IN   Carmel   Fee   35.0 % (4)   Built 1990   99.2 % 545,448       431,018   114,430   Wal-Mart, Galyan's, Frank's Nursery, Kohl's, Marsh, Bed, Bath & Beyond, Regal Cinema, (6)
60.   Wabash Village   IN   West Lafayette   Ground Lease (2063)   100.0 %     Built 1970   100.0 % 124,536       109,388   15,148   (8)
61.   Washington Plaza   IN   Indianapolis   Fee   100.0 %     Built 1976   57.1 % 50,107       21,500   28,607   (8)
62.   Waterford Lakes Town Center   FL   Orlando   Fee   100.0 %     Built 1999   100.0 % 818,071       501,244   316,827   Super Target, L.A. Fitness, T.J. Maxx, Barnes & Noble, Ross Dress for Less, Petsmart, Bed, Bath & Beyond, Old Navy, Best Buy, Office Max, Ashley Furniture
63.   West Ridge Plaza   KS   Topeka   Fee   100.0 %     Built 1988   96.1 % 237,755       182,161   55,594   Target, T.J. Maxx, Toys "R" Us, Famous Footwear
64.   West Town Corners   FL   Altamonte Springs   Fee   23.3 % (4)   Built 1989   93.4 % 385,037       263,782   121,255   Wal-Mart, Sports Authority, PetsMart, Winn Dixie, American Signature Furniture (6)
65.   Westland Park Plaza   FL   Orange Park (Jacksonville)   Fee   23.3 % (4)   Built 1989   95.6 % 163,154       123,548   39,606   Burlington Coat Factory, PetsMart, Sports Authority, Sound Advice
66.   White Oaks Plaza   IL   Springfield   Fee   100.0 %     Built 1986   97.9 % 391,417       275,703   115,714   Kohl's, Kids "R" Us, Office Max, T.J. Maxx, Toys "R" Us, Cub Foods
67.   Willow Knolls Court   IL   Peoria   Fee   35.0 % (4)   Built 1990   74.3 % 382,377       309,440   72,937   Kohl's, Sam's Wholesale Club, Willow Knolls Cinema, (8)
68.   Yards Plaza, The   IL   Chicago   Fee   35.0 % (4)   Built 1990   96.7 % 272,452       228,813   43,639   Burlington Coat Factory, Value City, Ralphs Food for Less

26


SIMON PROPERTY GROUP, INC.
PROPERTY TABLE

 
   
   
   
   
   
   
   
   
  Gross Leasable Area
   
 
   
   
   
  Ownership
Interest
(Expiration if
Lease) (1)

   
   
   
   
   
 
  Property Name

  State
  City
  Our
Percentage
Interest (2)

   
  Year Built
or
Acquired

  Occupancy (3)
  Total
   
  Anchor
  Mall &
Freestanding

  Retail Anchors
    OFFICE CENTERS                                            

1.

 

O'Hare International Center

 

IL

 

Rosemont

 

Fee

 

100.0

%

 

 

Built 1988

 

93.5

%

495,579

 

(34

)

0

 

495,579

 

2.   Riverway   IL   Rosemont   Fee   100.0 %     Acquired 1991   79.3 % 818,867   (35 ) 0   818,867  

 

 

MIXED-USE CENTERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Copley Place

 

MA

 

Boston

 

Fee

 

98.1

%

 

 

Acquired 2002

 

95.4

%

1,214,279

 

(36

)

104,332

 

1,109,947

 

Neiman Marcus
2.   Fashion Centre at Pentagon City, The   VA   Arlington   Fee   42.5 % (4)   Built 1989   99.7 % 991,570   (37 ) 472,729   518,841   Macy's, Nordstrom
3.   New Orleans Centre/CNG Tower   LA   New Orleans   Fee and Ground Lease (2084)   100.0 %     Built 1988   76.2 % 1,031,051   (38 ) 331,831   699,220   Macy's, Lord & Taylor
                                   
     
 
   
            Total Portfolio                               184,541,587       113,982,094   70,559,493    
                                   
     
 
   

 

 

PROPERTIES UNDER CONSTRUCTION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

Chicago Premium Outlets

 

IL

 

Aurora

 

 

 

50.0

%

(24)

 

 

 

 

 

 

 

 

 

 

 

 

 

2.   Lakeline Village   TX   Austin       100.0 % (25)                          
3.   Las Vegas Premium Outlets   NV   Las Vegas       50.0 % (26)                           Polo Ralph Lauren, Liz Claiborne, Nike, Adidas, Tommy Hilfiger, Timberland, Barney's New York, Mikasa, Brooks Brothers
4.   Rockaway Town Court   NJ   Rockaway       100.0 % (27)                           Linens-N-Things, Borders Books, Michael's Arts & Crafts

(Footnotes on following page)

27


(Footnotes for preceding page)


(1)
The date listed is the expiration date of the last renewal option available to the operating entity under the ground lease. In a majority of the ground leases, the lessee has either a right of first refusal or the right to purchase the lessor's interest. Unless otherwise indicated, each ground lease listed in this column covers at least 50% of its respective Property.

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

(3)
Includes mall and freestanding stores for Regional Malls and the retail portion of the Mixed-Use Centers. Includes all owned units for Community Centers, Office Properties and the office portion of Mixed-Use Centers.

(4)
Joint Venture Properties accounted for under the equity method.

(5)
This Property is managed by a third party.

(6)
Indicates anchor is currently under construction or in predevelopment.

(7)
Indicates ground lease covers less than 15% of the acreage of this Property.

(8)
Indicates vacant anchor space(s).

(9)
Indicates ground lease(s) cover(s) less than 50% of the acreage of the Property.

(10)
On January 16, 2003, Federated Department Stores, Inc. announced its intent to close Lazarus at Lafayette Square Mall and College Mall.

(11)
The Operating Partnership owns 60% of the original phase of this Property and 55% of phase II. Subsequent to December 31, 2002, our limited partner in this property initiated the buy/sell provision of the partnership agreement. We have elected to purchase this interest which will increase our ownership to 100%.

(12)
This retailer operates multiple stores at this Property.

(13)
The lease at the Mall at Chestnut Hill includes the entire premises including land and building.

(14)
The Operating Partnership is entitled to 50% of the economic benefits of this Property due to a partner preference.

(15)
Indicates ground lease covers all of the Property except for parcels owned in fee by anchors.

(16)
This property was sold on January 9, 2003.

(17)
These properties are classified as assets held for sale as of December 31, 2002. See Note 4 in the Notes to Financial Statements in the 2002 Annual Report to Shareholders, filed as Exhibit 13.1 to this Form 10-K.

(18)
The Operating Partnership receives substantially all of the economic benefit of these Properties due to a partner preference.

(19)
The Operating Partnership owns a mortgage note for Pheasant Lane Mall which entitles it to 100% of the economics of this property.

(20)
Indicates anchor has closed, but the Operating Partnership still collects rents and/or fees under an agreement.

(21)
Goldsmith's at Raleigh Springs Mall and Stein Mart at Richardson Square are scheduled to close in the Spring 2003.

(22)
Indicates ground lease covers outparcel only.

(23)
Includes outlots in which the Operating Partnership has an 85% interest and which represent less than 3% of the GLA and total annualized base rent for the Property.

(24)
Chicago Premium Outlets is scheduled to open during the second quarter of 2004.

(25)
Lakeline Village is sheduled to open during October 2003.

(26)
Las Vegas Premium Outlets is scheduled to open during August 2003.

(27)
Rockaway Town Court is scheduled to open during September 2003.

(28)
Arsenal Mall consists primarily of retail space with approximately 106,000 square feet of office space.

(29)
The Fashion Mall at Keystone at the Crossing consists primarily of retail space with approximately 30,000 square feet of office space.

(30)
Greendale Mall consists primarily of retail space with approximately 120,000 square feet of office space.

(31)
Menlo Park Mall consists primarily of retail space with approximately 44,000 square feet of office space.

(32)
Oak Court Mall consists primarily of retail space with approximately 130,000 square feet of office space.

(33)
River Oaks Center consists primarily of retail space with approximately 109,000 square feet of office space.

(34)
O'Hare International Center consists of primarily office space with approximately 13,000 square feet of retail space.

(35)
Riverway consists primarily of office space with approximately 24,000 square feet of retail space.

(36)
Copley Place consists of office space with approximately 367,000 square feet of retail space.

(37)
The Fashion Centre at Pentagon City consists primarily of retail space with approximately 169,000 square feet of office space.

(38)
New Orleans Centre/CNG Tower consists of retail space with approximately 563,000 square feet of office space.

28


            We have direct or indirect ownership interests in four parcels of land held for future development, containing an aggregate of approximately 422 acres located in three states. In addition, we have an indirect interest in one parcel of land totaling 109 acres through the Management Company, which was previously held for development, but is now held for sale.

            The following table sets forth certain information regarding the mortgages and other debt encumbering the Properties. Substantially all of the mortgage and property related debt is nonrecourse to us.

29



MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES
As of December 31, 2002
(Dollars in thousands)

Property Name

  Interest
Rate

  Face
Amount

  Annual Debt
Service

  Maturity
Date

 
Consolidated Indebtedness:                      

Secured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Simon Property Group, LP:                      
Anderson Mall   6.20 % $ 30,097   $ 2,216   10/10/12  
Arboretum   2.88 %  (1)   34,000     979   (2) 12/01/03  
Arsenal Mall — 1   6.75 %   33,428     2,724   09/28/08  
Arsenal Mall — 2   8.20 %   1,929     286   05/05/16  
Battlefield Mall — 1   7.50 %   43,597     4,765   12/31/03  
Battlefield Mall — 2   6.81 %   42,944     3,524   12/31/03  
Biltmore Square   7.95 %   26,000     2,067   (2) 12/11/10   (36)
Bloomingdale Court   7.78 %   29,026   (4)   2,578   10/01/09  
Bowie Mall   2.88 %  (1)   52,605     1,515   (2) 12/14/05   (3)
Brunswick Square   2.88 %  (1)   45,000     1,296   (2) 06/12/05   (3)
Century III Mall   6.20 %   88,844   (10)   6,541   10/10/12  
Chesapeake Center   8.44 %   6,563   (38)   554   (2) 05/15/15  
Chesapeake Square   4.13 %  (13)   47,000     1,941   (2) 07/01/06   (3)
Cielo Vista Mall — 1   9.38 %   52,026   (5)   5,828   05/01/07  
Cielo Vista Mall — 2   8.13 %   975     376   11/01/05  
Cielo Vista Mall — 3   6.76 %   37,157   (5)   3,039   05/01/07  
CMBS Loan — Fixed (encumbers 7 Properties)   7.31 %   173,693   (6)   14,059   12/15/04   (36)
CMBS Loan — Variable (encumbers 7 Properties)   6.20 %  (7)   49,112   (6)   1,801   12/15/04   (36)
College Mall — 1   7.00 %   38,282   (8)   3,908   01/01/09  
College Mall — 2   6.76 %   11,447   (8)   935   01/01/09  
Copley Place   7.44 %   183,537     16,266   08/01/07  
Coral Square   8.00 %   89,855     8,065   10/01/10  
Crossroads Mall   6.20 %   44,622     3,285   10/10/12  
Crystal River   7.63 %   16,018     1,385   11/11/10   (36)
Forest Mall   6.20 %   17,869   (11)   1,316   10/10/12  
Forest Plaza   7.78 %   15,920   (4)   1,414   10/01/09  
Forum Phase I — Class A-1   7.13 %   46,996     3,348   (2) 05/15/04  
Forum Phase I — Class A-2   6.19 %  (12)   44,386     2,747   (2) 05/15/04  
Forum Phase II — Class A-1   7.13 %   43,004     3,064   (2) 05/15/04  
Forum Phase II — Class A-2   6.19 %  (12)   40,614     2,514   (2) 05/15/04  
Greenwood Park Mall — 1   7.00 %   32,063   (8)   3,273   01/01/09  
Greenwood Park Mall — 2   6.76 %   59,143   (8)   4,831   01/01/09  
Grove at Lakeland Square, The   8.44 %   3,750   (38)   317   (2) 05/15/15  
Gulf View Square   8.25 %   35,050     3,652   10/01/06  
Highland Lakes Center   6.20 %   16,471   (10)   1,213   10/10/12  
Ingram Park Mall   6.99 %   83,273   (29)   6,724   08/11/11  
Jefferson Valley Mall   2.63 %  (1)   60,000     1,578   (2) 01/11/04   (3)
Keystone at the Crossing   7.85 %   61,373     5,642   07/01/27  
Knoxville Center   6.99 %   63,059   (29)   5,092   08/11/11  
Lake View Plaza   7.78 %   21,163   (4)   1,880   10/01/09  
Lakeline Mall   7.65 %   69,563     6,300   05/01/07  
Lakeline Plaza   7.78 %   23,202   (4)   2,061   10/01/09  
Lincoln Crossing   7.78 %   3,204   (4)   285   10/01/09  
Longview Mall   6.20 %   33,441   (10)   2,462   10/10/12  
Markland Mall   6.20 %   23,659   (11)   1,742   10/10/12  
Matteson Plaza   7.78 %   9,319   (4)   828   10/01/09  
McCain Mall — 1   9.38 %   24,293   (5)   2,721   05/01/07  
McCain Mall — 2   6.76 %   17,151   (5)   1,402   05/01/07  
Melbourne Square   7.42 %   37,228     3,374   02/01/05  
Midland Park Mall   6.20 %   34,540   (11)   2,543   10/10/12  
Muncie Plaza   7.78 %   8,057   (4)   716   10/01/09  

30


North East Mall   2.76 %  (1)   140,000     3,857   (2) 05/21/04   (3)
Northlake Mall   6.99 %   72,746   (29)   5,874   08/11/11  
Paddock Mall   8.25 %   27,876     2,905   10/01/06  
Palm Beach Mall   6.20 %   55,253     4,068   10/10/12  
Penn Square Mall   7.03 %   72,208     6,003   03/01/09   (36)
Port Charlotte Town Center   7.98 %   53,250     4,249   (2) 12/11/10   (36)
Raleigh Springs Mall   3.80 %  (37)   11,000     418   (2) 12/09/05  
Regency Plaza   7.78 %   4,368   (4)   388   10/01/09  
Richmond Towne Square   6.20 %   48,515   (11)   3,572   10/10/12  
Riverway   2.53 %  (18)   110,000     2,783   (2) 10/01/06   (3)
Shops @ Mission Viejo   2.43 %  (1)   151,299     3,677   (2) 09/14/03  
St. Charles Towne Plaza   7.78 %   27,958   (4)   2,483   10/01/09  
Sunland Park Mall   8.63 %  (14)   37,766     3,773   01/01/26  
Tacoma Mall   7.00 %   133,391     10,778   09/28/11  
Terrace at Florida Mall, The   8.44 %   4,688   (38)   396   (2) 05/15/15  
Tippecanoe Mall — 1   8.45 %   42,752     4,647   01/01/05  
Tippecanoe Mall — 2   6.81 %   15,269     1,253   01/01/05  
Towne East Square — 1   7.00 %   50,612   (8)   5,167   01/01/09  
Towne East Square — 2   6.81 %   23,857   (8)   1,958   01/01/09  
Towne West Square   6.99 %   54,509   (29)   4,402   08/11/11  
Treasure Coast Square — 1   7.42 %   50,254     3,729   (2) 01/01/06  
Treasure Coast Square — 2   8.06 %   11,736     946   (2) 01/01/06  
Trolley Square   9.03 %   29,336     2,880   08/01/10   (36)
University Park Mall   7.43 %   59,365     4,958   10/01/07  
Valle Vista Mall — 1   9.38 %   32,175   (5)   3,604   05/01/07  
Valle Vista Mall — 2   6.81 %   7,626   (5)   626   05/01/07  
Waterford Lakes   2.78 %  (1)   68,000     1,890   (2) 08/16/04   (3)
West Ridge Plaza   7.78 %   5,631   (4)   500   10/01/09  
White Oaks Mall   2.48 %  (1)   48,563     1,204   (2) 02/25/08   (3)
White Oaks Plaza   7.78 %   17,183   (4)   1,526   10/01/09  
Wolfchase Galleria   7.80 %   75,496     6,911   06/30/07  
       
           
  Total Consolidated Secured Indebtedness       $ 3,648,230            

Unsecured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Simon Property Group, LP:                      
Medium Term Notes — 1   7.13 % $ 100,000   $ 7,125   (15) 06/24/05  
Medium Term Notes — 2   7.13 %   180,000     12,825   (15) 09/20/07  
Putable Asset Trust Securities   6.75 %   100,000     6,750   (15) 11/15/03   (35)
Simon ERE Facility — Swap component   7.75 %  (23)   28,200     2,186   (2) 07/31/03  
Simon ERE Facility — Variable component   3.50 %  (24)   30,878     1,080   (2) 07/31/03  
SPG, L.P. Unsecured Term Loan — 4   2.03 %  (1)   150,000     3,045   (2) 02/28/04   (3)
Unsecured Notes — 1   6.88 %   250,000     17,188   (15) 11/15/06  
Unsecured Notes — 2A   6.75 %   100,000     6,750   (15) 07/15/04  
Unsecured Notes — 2B   7.00 %   150,000     10,500   (15) 07/15/09  
Unsecured Notes — 3   6.88 %   150,000     10,313   (15) 10/27/05  
Unsecured Notes — 4A   6.63 %   375,000     24,844   (15) 06/15/03  
Unsecured Notes — 4B   6.75 %   300,000     20,250   (15) 06/15/05  
Unsecured Notes — 4C   7.38 %   200,000     14,750   (15) 06/15/18  
Unsecured Notes — 5A   6.75 %   300,000     20,250   (15) 02/09/04  
Unsecured Notes — 5B   7.13 %   300,000     21,375   (15) 02/09/09  
Unsecured Notes — 6A   7.38 %   300,000     22,125   (15) 01/20/06  
Unsecured Notes — 6B   7.75 %   200,000     15,500   (15) 01/20/11  
Unsecured Notes — 7   6.38 %   750,000     47,813   (15) 11/15/07  
Unsecured Notes — 8A   6.35 %   350,000     22,225   (15) 08/28/12  
Unsecured Notes — 8B   5.38 %   150,000     8,063   (15) 08/28/08  

31


SPG, L.P. Unsecured Term Loan — 3   2.18 %  (1)   65,000     1,417   (2) 03/15/04   (3)
Unsecured Revolving Credit Facility   2.03 %  (16)   308,000     6,252   (2) 04/16/06   (3)
Mandatory Par Put Remarketed Securities   7.00 %   200,000     14,000   (15) 06/15/08   (17)
       
           
          5,037,078            

Shopping Center Associates, subsidiary:

 

 

 

 

 

 

 

 

 

 

 
Unsecured Notes — SCA 1   6.75 %   150,000     10,125   (15) 01/15/04  
Unsecured Notes — SCA 2   7.63 %   110,000     8,388   (15) 05/15/05  
       
           
          260,000            
The Retail Property Trust, subsidiary:                      
Unsecured Notes — CPI 2   7.05 %   100,000     7,050   (15) 04/01/03  
Unsecured Notes — CPI 3   7.75 %   150,000     11,625   (15) 08/15/04  
Unsecured Notes — CPI 4   7.18 %   75,000     5,385   (15) 09/01/13  
Unsecured Notes — CPI 5   7.88 %   250,000     19,688   (15) 03/15/16  
       
           
          575,000            
       
           
  Total Consolidated Unsecured Indebtedness       $ 5,872,078            
       
           
  Total Consolidated Indebtedness at Face Amounts       $ 9,520,308            
  Fair Value Interest Rate Swaps         8,614   (33)          
  Net Premium on Indebtedness         17,159            
       
           
  Total Consolidated Indebtedness       $ 9,546,081   (28)          
       
           

Joint Venture Indebtedness:

 

 

 

 

 

 

 

 

 

 

 

Secured Indebtedness:

 

 

 

 

 

 

 

 

 

 

 
Simon Property Group, LP:                      
Apple Blossom Mall   7.99 % $ 39,952   $ 3,607   09/10/09  
Atrium at Chestnut Hill   6.89 %   48,333     3,880   03/11/11   (36)
Auburn Mall   7.99 %   46,772     4,222   09/10/09  
Aventura Mall — A   6.55 %   141,000     9,231   (2) 04/06/08  
Aventura Mall — B   6.60 %   25,400     1,675   (2) 04/06/08  
Aventura Mall — C   6.89 %   33,600     2,314   (2) 04/06/08  
Avenues, The   8.36 %   54,254     5,553   05/15/03  
Cape Cod Mall   6.80 %   98,302     7,821   03/11/11  
Circle Centre Mall — 1   1.82 %  (19)   60,000     1,092   (2) 01/31/04   (3)
Circle Centre Mall — 2   2.88 %  (20)   7,500     216   (2) 01/31/04   (3)
CMBS Loan — 1 Fixed (encumbers 13 Properties)   7.41 %   300,000   (21)   22,229   (2) 05/15/06  
CMBS Loan — 1 Floating (encumbers 13 Properties)   1.88 %   184,500   (21)   3,462   (2) 05/15/03  
CMBS Loan — 2 Fixed (encumbers 13 Properties)   8.13 %   57,100   (21)   4,643   (2) 05/15/06  
CMBS Loan — 2 Floating (encumbers 13 Properties)   1.75 %   81,400   (21)   1,424   (2) 05/15/06  
Cobblestone Court   7.64 %   6,179   (22)   472   (2) 01/01/06  
Crystal Court   7.64 %   4,045   (22)   309   (2) 01/01/06  
Crystal Mall   5.62 %   105,659     7,319   09/11/12   (36)
Dadeland Mall   6.75 %   198,346     15,566   02/11/12   (36)
Emerald Square Mall — 1   2.68 %  (9)   129,400     3,468   (2) 04/01/05   (3)
Emerald Square Mall — 2   4.43 %  (27)   15,600     691   (2) 04/01/05   (3)
European Retail Enterprises — Fixed   6.52 %   62,906     8,782   08/27/11  
European Retail Enterprises — Variable   4.83 %  (34)   63,350     6,973   03/11/10  
Fairfax Court   7.64 %   10,319   (22)   788   (2) 01/01/06  
Fashion Centre Pentagon Retail   6.63 %   164,895     12,838   09/11/11   (36)
Fashion Centre Pentagon Office   2.88 %  (1)   33,000     950   (2) 09/10/04   (3)
Fashion Valley Mall — 1   6.49 %   168,477     13,255   10/11/08   (36)
Fashion Valley Mall — 2   6.58 %   29,124     1,915   (2) 10/11/08   (36)
Florida Mall, The   7.55 %   265,480     22,766   12/10/10  

32


Gaitway Plaza   7.64 %   7,349   (22)   561   (2) 01/01/06  
Great Northeast Plaza   9.04 %   16,970     1,744   06/01/06  
Greendale Mall   8.23 %   41,079     3,779   12/10/06  
Gwinnett Place — 1   7.54 %   37,980     3,412   04/01/07  
Gwinnett Place — 2   7.25 %   83,531     7,070   04/01/07  
Highland Mall   6.83 %   70,107     5,571   07/11/11  
Houston Galleria — 1   7.93 %   219,688     19,684   12/01/05   (36)
Houston Galleria — 2   3.13 %  (1)   51,351     1,607   (2) 06/25/07   (3)
Indian River Commons   7.58 %   8,226     710   11/01/04  
Indian River Mall   7.58 %   45,643     3,941   11/01/04  
Liberty Tree Mall   2.88 %  (1)   45,221     2,242   10/01/03  
Mall at Rockingham   7.88 %   97,960     8,705   09/01/07  
Mall at Chestnut Hill   8.45 %   14,843     1,396   02/02/10  
Mall of America   1.91 %  (25)   312,000     5,974   (2) 03/10/05   (3)
Mall of Georgia   7.09 %   200,000     14,180   (2) 07/01/10  
Mall of Georgia Crossing   7.25 %   33,771     2,824   06/09/06  
Mall of New Hampshire — 1   6.96 %   101,614     8,345   10/01/08   (36)
Mall of New Hampshire — 2   8.53 %   8,305     786   10/01/08  
Metrocenter   8.45 %   29,350     3,031   02/28/08  
Miami International Mall   6.91 %   43,976     3,758   12/21/03  
Montreal Forum   4.78 %  (26)   35,526     1,698   (2) 08/08/06   (3)
Northfield Square   3.88 %  (30)   37,000     1,436   (2) 04/30/05   (3)
Northshore Mall   9.05 %   161,000     14,571   (2) 05/14/04  
Plaza at Buckland Hills, The   7.64 %   17,679   (22)   1,351   (2) 01/01/06  
Ridgewood Court   7.64 %   7,979   (22)   610   (2) 01/01/06  
River Ridge Mall   8.05 %   22,952     2,353   01/01/07  
Royal Eagle Plaza   7.64 %   7,920   (22)   605   (2) 01/01/06  
Seminole Towne Center   3.88 %  (31)   70,131     3,484   07/01/05   (3)
Shops at Sunset Place, The   4.38 %  (1)   96,754     4,238   (2) 10/15/04   (3)
Smith Haven Mall   7.86 %   115,000     9,039   (2) 06/01/06  
Solomon Pond   7.83 %   92,788     8,564   02/01/04  
Source, The   6.65 %   124,000     8,246   (2) 03/11/09  
Square One   6.73 %   94,335     7,380   03/11/12  
Town Center at Cobb — 1   7.54 %   48,389     4,347   04/01/07  
Town Center at Cobb — 2   7.25 %   63,570     5,381   04/01/07  
Village Park Plaza   7.64 %   8,483   (22)   648   (2) 01/01/06  
West Town Corners   7.64 %   10,329   (22)   789   (2) 01/01/06  
West Town Mall   6.90 %   76,000     5,244   (2) 05/01/08   (36)
Westchester, The — 1   8.74 %   146,458     14,478   09/01/05  
Westchester, The — 2   7.20 %   51,865     4,399   09/01/05  
Westland Park Plaza   7.64 %   4,950   (22)   378   (2) 01/01/06  
Willow Knolls Court   7.64 %   6,489   (22)   496   (2) 01/01/06  
Woodland Hills Mall   7.00 %   86,338     7,185   01/01/09   (36)
Yards Plaza, The   7.64 %   8,270   (22)   632   (2) 01/01/06  
       
           
  Total Joint Venture Secured Indebtedness at Face Amounts       $ 5,298,062            
  Net Premium on Indebtedness       $ 8,403            
       
           
  Total Joint Venture Indebtedness       $ 5,306,465   (32)          
       
           

(Footnotes on following page)

33


(Footnotes for preceding pages)


(1)
Variable rate loans based on LIBOR plus interest rate spreads ranging from 65 bps to 305 bps. LIBOR as of December 31, 2002 was 1.38%.

(2)
Requires monthly payment of interest only.

(3)
Includes applicable extension available at the Operating Partnership's option.

(4)
Loans secured by these eleven Properties are cross-collateralized and cross-defaulted.

(5)
Loans secured by these three Properties are cross-collateralized and cross-defaulted.

(6)
Secured by cross-collateralized and cross-defaulted mortgages encumbering seven of the Properties (Bay Park Square, Boardman Plaza, Cheltenham Square, De Soto Square, Upper Valley Mall, Washington Square, and West Ridge Mall).

(7)
LIBOR + 0.405%, through an interest rate protection agreement is effectively fixed at an all-in-one rate of 6.200%.

(8)
Loans secured by these three Properties are cross-collateralized and cross-defaulted.

(9)
LIBOR + 1.300% with LIBOR capped at 7.700%.

(10)
Loans secured by these three Properties are cross-collateralized.

(11)
Loans secured by these four Properties are cross-collateralized.

(12)
LIBOR + 0.300%, through an interest rate protection agreement is effectively fixed at an all-in-one rate of 6.190%.

(13)
LIBOR + 2.750%, with LIBOR capped at 6.500%.

(14)
Lender also participates in a percentage of certain gross receipts above a specified base.

(15)
Requires semi-annual payments of interest only.

(16)
$1,250,000 Credit Facility. Currently, bears interest at LIBOR + 0.650% and provides for different pricing based upon the Operating Partnership's investment grade rating. Two interest rate caps currently limit LIBOR on $90,000 and $49,927 of this indebtedness to 11.530% and 16.765%, respectively. As of 12/31/2002, $918,349 was available after outstanding borrowings and letters of credit.

(17)
The MOPPRS have an actual maturity of June 15, 2028, but are subject to mandatory tender on June 15, 2008.

(18)
LIBOR + 1.150% with LIBOR capped at 8.100%.

(19)
LIBOR + 0.440%, with LIBOR capped at 8.810% through maturity.

(20)
LIBOR + 1.500%, with LIBOR capped at 7.750% through maturity.

(21)
These Commercial Mortgage Notes are secured by cross-collateralized mortgages encumbering thirteen Properties (Eastland Mall, Empire East, Empire Mall, Granite Run Mall, Mesa Mall, Lake Square, Lindale Mall, Northpark Mall, Southern Hills Mall, Southpark Mall, Southridge Mall, Rushmore Mall, and Valley Mall). A weighted average rate is used for each component. The floating components have interest protection agreements which caps LIBOR at 10.980%, 11.670% and 11.830% respectively.

(22)
Loans secured by these twelve Properties are cross-collateralized and cross-defaulted.

(23)
EURIBOR + 0.600% with EURIBOR swapped to effectively fix all-in-rate at 7.750%.

(24)
EURIBOR + 0.600%.

(25)
LIBOR + 0.5348%, with LIBOR capped at 8.7157%.

(26)
Canadian Prime + 3%.

(27)
LIBOR + 3.050%, with LIBOR capped at 7.950%.

(28)
Our share of consolidated indebtedness was $9,395,491.

(29)
Loans secured by these four Properties are cross-collateralized and cross-defaulted.

(30)
LIBOR + 2.500% capped at 10.98%.

(31)
LIBOR + 2.500% capped at 8.000%.

(32)
Our share of joint venture indebtedness was $2,279,609.

(33)
Represents the fair market value of interest rate swaps entered into by the Operating Partnership.

(34)
EURIBOR + 1.9356%

(35)
The Putable Asset Trust Securities have an actual maturity of November 15, 2010, but are subject to mandatory tender on November 15, 2003.

(36)
The maturity date shown represents the Anticipated Maturity Date of the loan which is typically 15-20 years earlier than the stated Maturity Date of the loan. Should the loan not be repaid at the Anticipated Repayment Date the applicable interest rate shall increase as specified in each loan agreement.

(37)
LIBOR + 2.000%, with LIBOR floor at 1.800%.

(38)
Loans secured by these three Properties are cross-collateralized and cross-defaulted.

34



Item 3.    Legal Proceedings

            Triple Five of Minnesota, Inc., a Minnesota corporation, v. Melvin Simon, et. al. On or about November 9, 1999, Triple Five of Minnesota, Inc. commenced an action in the District Court for the State of Minnesota, Fourth Judicial District, against, among others, Mall of America, certain members of the Simon family and entities allegedly controlled by such individuals, and us. The action was later removed to federal court. Two transactions form the basis of the complaint: (i) the sale by Teachers Insurance and Annuity Association of America of one-half of its partnership interest in Mall of America Company and Minntertainment Company to the Operating Partnership and related entities; and (ii) a financing transaction involving a loan in the amount of $312.0 million obtained from The Chase Manhattan Bank that is secured by a mortgage placed on Mall of America's assets. The complaint, which contains twelve counts, seeks remedies of unspecified damages, rescission, constructive trust, accounting, and specific performance. Although the complaint names all defendants in several counts, we are specifically identified as a defendant only in connection with the sale to Teachers. Although the Complaint seeks unspecified damages, Triple Five has submitted a report of a purported expert witness that attempts to quantify its damages at between approximately $80 million and $160 million. On August 12, 2002, the court granted in part and denied in part motions for partial summary judgment filed by the parties. The parties are currently filing pretrial motions and no trial date has been set. Given that the case is still in the pre-trial stage, it is not possible to provide an assurance of the ultimate outcome of the litigation or an estimate of the amount or range of potential loss, if any. We believe that the Triple Five litigation will not have a material adverse effect on our financial position or results of operations.

            On December 5, 2002, we commenced litigation in the United States District Court for the Eastern District of Michigan (the "Court") against Taubman Centers, its Board of Directors and certain members of the Taubman family. In that action, we broadly allege that the Board of Directors has breached, and continues to breach, its fiduciary duties by failing to consider our offer on the merits, and that the Taubman family should be prevented from voting its Series B Preferred Stock which we contend was wrongfully obtained by the Taubman family without a shareholder vote and in violation of Michigan law. We filed a first amended complaint and a second amended complaint on December 30, 2002 and February 5, 2003, respectively. The initial complaint and each amended complaint has been filed with the Commission as an exhibit to our Tender Offer Statement on Schedule TO. On January 22, 2003, the Court issued an opinion and order denying in part, and granting in part, Taubman Centers' and the other defendants' motion to dismiss Count I of our complaint, as amended. The Court held that while the issuance in 1998 of the Series B Preferred Stock by Taubman Centers to the Taubman family did not violate Michigan law, the Taubman family's purported blocking position in Taubman Centers may be challenged by us. We have filed a motion for preliminary injunction and the Court has scheduled a hearing for March 21, 2003. At that hearing, we intend to argue that, among other things, the Taubman family's "group" voting power was obtained in violation of Michigan law, that the Taubman family's Series B Preferred Stock was improperly acquired in breach of fiduciary duties owed to Taubman Centers' public shareholders and that the Taubman Centers' Board of Directors has breached, and is continuing to breach, its fiduciary duties to the Taubman Centers' public shareholders. Both parties have filed legal briefs on their issues. If the Court rules in our favor at the March 21, 2003 hearing, the entire voting position the Taubman family purports to wield is subject to being legally invalidated.

            We are also subject to routine litigation, claims and administrative proceedings arising in the ordinary course of business, none of which are expected to have a material adverse effect on our financial position or results of operations.


Item 4.    Submission of Matters to a Vote of Security Holders

            None.

35




Part II

Item 5.    Market for the Registrant's Common Equity and Related Stockholder Matters

            Our common stock trades on the New York Stock Exchange under the symbol "SPG". The quarterly price range on the NYSE for the shares and the distributions declared per share for each quarter in the last two fiscal years are shown below:

 
  High
  Low
  Close
  Declared
Distribution

2002                  
1st Quarter   33.07   28.80   32.63   $ 0.525
2nd Quarter   36.95   32.52   36.84   $ 0.550
3rd Quarter   36.84   29.40   35.73   $ 0.550
4th Quarter   35.81   31.00   34.07   $ 0.550

2001

 

 

 

 

 

 

 

 

 
1st Quarter   26.48   23.75   25.60   $ 0.5050
2nd Quarter   29.97   25.09   29.97   $ 0.5250
3rd Quarter   30.97   25.08   26.91   $ 0.5250
4th Quarter   29.97   26.40   29.33   $ 0.5250

            There is no established public trading market for Simon Property's Class B common stock or Class C common stock. Distributions per share of the Class B and Class C common stock are identical to the common stock.

            The number of holders of record of common stock outstanding was 2,173 as of February 14, 2003. The Class B common stock is held entirely by a voting trust to which Melvin Simon, Herbert Simon, David Simon and certain of their affiliates are parties and is exchangeable on a one-for-one basis into shares of common stock, and the Class C common stock is held entirely by NID Corporation, the successor corporation of Edward J. DeBartolo Corporation, and is also exchangeable on a one-for-one basis into shares of common stock.

            Simon Property qualifies as a REIT under the Code. To maintain our status as a REIT, we are required each year to distribute to our shareholders at least 90% of our taxable income after certain adjustments. Future distributions are determined in the discretion of the Board of Directors and will depend on our actual cash flow, financial condition, capital requirements, the annual REIT distribution requirements and such other factors as our Board of Directors deem relevant.

            Simon Property offers an Automatic Dividend Reinvestment Plan for its common shares that allows shareholders, at their election, to acquire additional shares by automatically reinvesting cash dividends. Shares are acquired pursuant to the plan at a price equal to the prevailing market price of such shares, without payment of any brokerage commission or service charge.

            We did not issue any equity securities that were not required to be registered under the Securities Act of 1933, as amended during the fourth quarter of 2002.


Item 6.    Selected Financial Data

            The information required by this item is incorporated herein by reference to the Selected Financial Data section of the 2002 Annual Report to Shareholders filed as Exhibit 13.1 to this Form 10-K.

36




Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

            The information required by this item is incorporated herein by reference to the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the 2002 Annual Report to Shareholders filed as Exhibit 13.1 to this Form 10-K.


Item 7A.    Qualitative and Quantitative Disclosure About Market Risk

            The information required by this item is incorporated herein by reference to the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the 2002 Annual Report to Shareholders under the caption "Liquidity and Capital Resources — Market Risk", filed as Exhibit 13.1 to this Form 10-K.


Item 8.    Financial Statements and Supplementary Data

            Reference is made to the Index to Financial Statements contained in Item 14.


Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

            Not Applicable

37



Part III

Item 10.    Directors and Executive Officers of the Registrant

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its annual meeting of shareholders to be filed with the Commission pursuant to Regulation 14A and the information included under the caption "Executive Officers of the Registrants" in Part I hereof.


Item 11.    Executive Compensation

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its annual meeting of shareholders to be filed with the Commission pursuant to Regulation 14A.


Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its annual meeting of shareholders to be filed with the Commission pursuant to Regulation 14A.


Item 13.    Certain Relationships and Related Transactions

            The information required by this item is incorporated herein by reference to Simon Property's definitive Proxy Statement for its annual meeting of shareholders to be filed with the Commission pursuant to Regulation 14A.


Item 14.    Controls and Procedures

            Within 90 days prior to the date of this report, we carried out an evaluation under the supervision and with participation of management, including the chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-4. Based upon that evaluation, our management, including the chief executive officer and chief financial officer, concluded that our disclosure controls were effective as of the evaluation date. There were no significant changes in the internal controls or other factors that could significantly affect the controls subsequent to the evaluation date.

38



PART IV

Item 15. Exhibits, Financial Statements, Schedules and Reports on Form 8-K

(a)
(1)    Financial Statements

            Simon Property Group Inc.'s financial statements and independent auditors' reports are incorporated herein by reference to the financial statements and independent auditors' reports in the 2002 Annual Report to Shareholders, filed as Exhibit 13.1 to this Form 10-K.

 
   
   
  Page No.
    (2)   Financial Statement Schedules    

 

 

 

 

Report of Independent Public Accountants

 

44

 

 

 

 

Simon Property Group, Inc. Schedule III — Schedule of Real Estate and Accumulated Depreciation

 

45

 

 

 

 

Notes to Combined Schedule III

 

50

 

 

(3)

 

Exhibits

 

 

 

 

 

 

The Exhibit Index attached hereto is hereby incorporated by reference to this Item.

 

51

(b)

 

Reports on Form 8-K

 

 

 

 

 

 

Four Form 8-Ks were filed or furnished during the fourth quarter ended December 31, 2002.

 

 

 

 

 

 

On October 31, 2002 under Item 9 — Regulation FD Disclosure, Simon Property reported that they made available additional ownership and operational information concerning Simon Property, the Operating Partnership, and the properties owned or managed as of September 30, 2002, in the form of a Supplemental Information Package. A copy of the package was included as an exhibit to the 8-K filing. In addition, Simon Property reported that, on October 31, 2002, it issued a press release containing information on earnings as of September 30, 2002 and other matters. A copy of the press release was included as an exhibit.

 

 

 

 

 

 

On November 13, 2002 under Item 5 — Other Events, Simon Property announced that it had sent a letter to the Board of Directors of Taubman Centers, Inc., a Michigan corporation ("Taubman") proposing to acquire the outstanding shares of common stock of Taubman for $17.50 per share in cash. A copy of the press release is attached as an exhibit. On November 13, 2002, Simon Property made available certain materials related to the proposed offer to Taubman on its website. A copy of those materials is attached as an exhibit.

 

 

 

 

 

 

On November 18, 2002 under Item 5 — Other Events, Simon Property issued a press release responding to statements made by Taubman, regarding its offer to Taubman to purchase the outstanding shares of common stock of Taubman for $17.50 per share in cash. A copy of the Simon Property's press release is attached as an exhibit.

 

 

 

 

 

 

On December 5, 2002 under Item 5 — Other Events and Regulation FD Disclosure, Simon Property issued a press release regarding its offer to purchase the outstanding shares of common stock of Taubman for $18.00 per share in cash. A copy of Simon Property's press release is attached as an exhibit.

 

 

39



SIGNATURES

            Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

SIMON PROPERTY GROUP, INC.

 

By

/s/ David Simon

David Simon
Chief Executive Officer

March 5, 2003

            Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature

  Capacity

  Date


 

 

 

 

 
/s/ David Simon
David Simon
  Chief Executive Officer
and Director (Principal Executive Officer)
  March 5, 2003

/s/ Herbert Simon

Herbert Simon

 

Co-Chairman of the Board of Directors

 

March 5, 2003

/s/ Melvin Simon

Melvin Simon

 

Co-Chairman of the Board of Directors

 

March 5, 2003

/s/ Hans C. Mautner

Hans C. Mautner

 

Vice Chairman of the Board of Directors

 

March 5, 2003

/s/ Richard S. Sokolov

Richard S. Sokolov

 

President, Chief Operating Officer and Director

 

March 5, 2003

/s/ Birch Bayh

Birch Bayh

 

Director

 

March 5, 2003

/s/ Melvyn E. Bergstein

Melvyn E. Bergstein

 

Director

 

March 5, 2003

/s/ Pieter S. van den Berg

Pieter S. van den Berg

 

Director

 

March 5, 2003

 

 

 

 

 

40



/s/ G. William Miller

G. William Miller

 

Director

 

March 5, 2003

/s/ Fredrick W. Petri

Fredrick W. Petri

 

Director

 

March 5, 2003

/s/ J. Albert Smith, Jr.

J. Albert Smith, Jr.

 

Director

 

March 5, 2003

/s/ Philip J. Ward

Philip J. Ward

 

Director

 

March 5, 2003

/s/ M. Denise DeBartolo York

M. Denise DeBartolo York

 

Director

 

March 5, 2003

/s/ Stephen E. Sterrett

Stephen E. Sterrett

 

Executive Vice President and Chief Financial Officer (Principal Financial Officer)

 

March 5, 2003

/s/ John Dahl

John Dahl

 

Senior Vice President (Principal Accounting Officer)

 

March 5, 2003

41



CERTIFICATIONS

        I, David Simon, certify that:

        1.      I have reviewed this Annual Report on Form 10-K of Simon Property Group, Inc.;

        2.      Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

        3.      Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report;

        4.      The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

        5.      The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

        6.      The registrant's other certifying officer and I have indicated in this Annual Report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Date: March 5, 2003

 

/s/ David Simon
David Simon,
Chief Executive Officer

42


        I, Stephen E. Sterrett, certify that:

        1.    I have reviewed this Annual Report on Form 10-K of Simon Property Group, Inc.;

        2.    Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

        3.    Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Annual Report;

        4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

        5.      The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's boards of directors (or persons performing the equivalent function):

        6.    The registrant's other certifying officer and I have indicated in this Annual Report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Date: March 5, 2003

 

/s/ Stephen E. Sterrett
Stephen E. Sterrett, Executive Vice President
and Chief Financial Officer

43


REPORT OF INDEPENDENT AUDITORS ON SCHEDULE

To the Board of Directors of
Simon Property Group, Inc.:

            We have audited the combined financial statements of Simon Property Group, Inc. (see Note 5) and subsidiaries as of December 31, 2002, and for the year then ended, and have issued our report thereon dated February 6, 2003 (included elsewhere in this Form 10-K). Our audit also included "Schedule III: Real Estate and Accumulated Depreciation" as of December 31, 2002, for Simon Property Group, Inc. included in the Form 10-K. This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audit.

            In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

Indianapolis, Indiana
February 6, 2003

44


SCHEDULE III

Simon Property Group, Inc.
Real Estate and Accumulated Depreciation
December 31, 2002
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition

  Gross Amounts At Which Carried At Close of Period
   
   
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

Regional Malls                                                        
Alton Square, Alton, IL   $ 0   $ 154   $ 7,641   $ 0   $ 10,694   $ 154   $ 18,335   $ 18,489   4,657   1993
Anderson Mall, Anderson, SC     30,097     1,712     18,072     1,363     7,029     3,075     25,101     28,176   8,957   1972
Arsenal Mall, Watertown, MA     35,357     15,505     47,680     0     802     15,505     48,482     63,987   4,468   1999 (Note 4)
Aurora Mall, Aurora, CO     0     11,400     55,692     6     4,170     11,406     59,862     71,268   8,980   1998 (Note 4)
Barton Creek Square, Austin, TX     0     3,540     20,699     7,983     40,707     11,523     61,406     72,929   17,545   1981
Battlefield Mall, Springfield, MO     86,541     3,919     27,310     3,225     39,167     7,144     66,477     73,621   24,398   1970
Bay Park Square, Green Bay, WI     24,606     6,775     25,623     4,133     15,807     10,908     41,430     52,338   5,844   1996 (Note 4)
Bergen Mall, Paramus, NJ     0     10,852     92,893     0     9,192     10,852     102,085     112,937   18,531   1996 (Note 4)
Biltmore Square, Asheville, NC     26,000     6,641     23,582     0     1,424     6,641     25,006     31,647   4,783   1996 (Note 4)
Bowie Town Center, Bowie, MD     52,605     2,710     65,044     235     5,116     2,945     70,160     73,105   3,644   2001
Boynton Beach Mall, Boynton Beach, FL     0     22,240     79,226     0     14,329     22,240     93,555     115,795   14,862   1996 (Note 4)
Brea Mall, Brea, CA     0     39,500     209,202     0     8,469     39,500     217,671     257,171   26,711   1998 (Note 4)
Broadway Square, Tyler, TX     0     11,470     32,439     0     6,060     11,470     38,499     49,969   9,475   1994
Brunswick Square, Brunswick, NJ     45,000     8,436     55,838     0     22,520     8,436     78,358     86,794   14,013   1996 (Note 4)
Burlington Mall, Burlington, MA     0     46,600     303,618     0     5,050     46,600     308,668     355,268   37,572   1998 (Note 4)
Castleton Square, Indianapolis, IN     0     27,108     98,287     2,500     31,023     29,608     129,310     158,918   22,734   1996 (Note 4)
Century III Mall, Pittsburgh, PA     88,844     17,251     117,822     10     2,323     17,261     120,145     137,406   41,140   1999 (Note 4)
Charlottesville Fashion Square, Charlottesville, VA     0     0     54,738     0     11,409     0     66,147     66,147   9,282   1997 (Note 4)
Chautauqua Mall, Lakewood, NY     0     3,257     9,641     0     14,722     3,257     24,363     27,620   5,612   1996 (Note 4)
Cheltenham Square, Philadelphia, PA     33,892     14,227     43,699     0     4,623     14,227     48,322     62,549   9,535   1996 (Note 4)
Chesapeake Square, Chesapeake, VA     47,000     11,534     70,461     0     4,874     11,534     75,335     86,869   14,833   1996 (Note 4)
Cielo Vista Mall, El Paso, TX     90,158     1,307     18,512     608     21,715     1,915     40,227     42,142   18,098   1974
College Mall, Bloomington, IN     49,729     1,012     16,245     722     21,120     1,734     37,365     39,099   15,033   1965
Columbia Center, Kennewick, WA     0     18,285     66,580     0     7,709     18,285     74,289     92,574   12,961   1996 (Note 4)
Coral Square, Coral Springs, FL     89,855     13,556     93,720     0     726     13,556     94,446     108,002   17,370   1984
Cordova Mall, Pensacola, FL     0     18,633     75,880     0     2,376     18,633     78,256     96,889   11,621   1998 (Note 4)
Cottonwood Mall, Albuquerque, NM     0     11,585     68,958     0     1,699     11,585     70,657     82,242   17,654   1996
Crossroads Mall, Omaha, NE     44,622     881     37,263     409     30,129     1,290     67,392     68,682   16,212   1994
Crystal River Mall, Crystal River, FL     16,018     5,661     20,241     0     4,413     5,661     24,654     30,315   4,082   1996 (Note 4)
DeSoto Square, Bradenton, FL     38,501     9,380     52,716     0     6,418     9,380     59,134     68,514   11,440   1996 (Note 4)
Eastern Hills Mall, Williamsville, NY     0     15,327     47,604     12     4,625     15,339     52,229     67,568   16,778   1996 (Note 4)
Eastland Mall, Tulsa, OK     0     3,124     24,035     518     7,623     3,642     31,658     35,300   11,476   1986
Edison Mall, Fort Myers, FL     0     11,529     107,381     0     6,505     11,529     113,886     125,415   17,249   1997 (Note 4)
Fashion Mall at Keystone at the Crossing, Indianapolis, IN     61,373     0     120,579     0     13,984     0     134,563     134,563   18,837   1997 (Note 4)
Forest Mall, Fond Du Lac, WI     17,869     728     4,498     0     6,620     728     11,118     11,846   4,176   1973
Forest Village Park, Forestville, MD     0     1,212     4,625     757     4,796     1,969     9,421     11,390   3,675   1980
The Forum Shops at Caesars, Las Vegas, NV     175,000     0     72,866     0     61,662     0     134,528     134,528   37,126   1992

45


SCHEDULE III

Simon Property Group, Inc.
Real Estate and Accumulated Depreciation
December 31, 2002
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition

  Gross Amounts At Which Carried At Close of Period
   
   
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

Great Lakes Mall, Mentor, OH   0   12,498   100,362   432   7,673   12,930   108,035   120,965   20,679   1996 (Note 4)
Greenwood Park Mall, Greenwood, IN   91,206   2,559   23,445   5,277   59,864   7,836   83,309   91,145   25,034   1979
Gulf View Square, Port Richey, FL   35,050   13,690   39,997   0   10,918   13,690   50,915   64,605   9,540   1996 (Note 4)
Haywood Mall, Greenville, SC   0   11,604   133,893   6   1,324   11,610   135,217   146,827   25,241   1999 (Note 4)
Heritage Park, Midwest City, OK   0   598   6,213   0   1,726   598   7,939   8,537   3,897   1978
Hutchinson Mall, Hutchinson, KS   0   1,412   18,411   0   2,858   1,412   21,269   22,681   7,591   1985
Independence Center, Independence, MO   0   5,042   45,822   2   20,402   5,044   66,224   71,268   15,264   1994
Ingram Park Mall, San Antonio, TX   83,273   764   17,163   169   15,833   933   32,996   33,929   12,908   1979
Irving Mall, Irving, TX   0   6,737   17,479   2,533   26,174   9,270   43,653   52,923   18,742   1971
Jefferson Valley Mall, Yorktown Heights, NY   60,000   4,868   30,304   0   18,040   4,868   48,344   53,212   13,206   1983
Knoxville Center, Knoxville, TN   63,059   5,006   21,965   3,712   34,766   8,718   56,731   65,449   16,742   1984
La Plaza, McAllen, TX   0   1,375   9,828   6,569   30,637   7,944   40,465   48,409   9,237   1976
Lafayette Square, Indianapolis, IN   0   14,251   54,589   0   11,909   14,251   66,498   80,749   12,989   1996 (Note 4)
Laguna Hills Mall, Laguna Hills, CA   0   28,074   55,689   0   5,141   28,074   60,830   88,904   9,454   1997 (Note 4)
Lakeline Mall, N. Austin, TX   69,563   10,383   81,568   14   1,174   10,397   82,742   93,139   16,038   1999 (Note 4)
Lenox Square, Atlanta, GA   0   38,213   492,411   0   5,201   38,213   497,612   535,825   60,502   1998 (Note 4)
Lima Mall, Lima, OH   0   7,910   35,495   0   7,601   7,910   43,096   51,006   8,564   1996 (Note 4)
Lincolnwood Town Center, Lincolnwood, IL   0   9,083   63,490   28   7,086   9,111   70,576   79,687   20,667   1990
Livingston Mall, Livingston, NJ   0   30,200   105,250   0   6,480   30,200   111,730   141,930   13,733   1998 (Note 4)
Longview Mall, Longview, TX   33,441   270   3,602   124   7,062   394   10,664   11,058   3,754   1978
Maplewood Mall, Minneapolis, MN   0   19,379   83,477   0   185   19,379   83,662   103,041   1,526   2002 (Note 4)
Markland Mall, Kokomo, IN   23,659   0   7,568   0   5,303   0   12,871   12,871   4,040   1968
Mc Cain Mall, N. Little Rock, AR   41,444   0   9,515   0   9,044   0   18,559   18,559   9,511   1973
Melbourne Square, Melbourne, FL   37,228   15,762   55,891   0   6,677   15,762   62,568   78,330   11,058   1996 (Note 4)
Memorial Mall, Sheboygan, WI   0   175   4,881   0   3,510   175   8,391   8,566   2,423   1969
Menlo Park Mall, Edison, NJ   0   65,684   223,252   0   18,717   65,684   241,969   307,653   35,511   1997 (Note 4)
Midland Park Mall, Midland, TX   34,540   687   9,213   0   9,521   687   18,734   19,421   8,198   1980
Miller Hill Mall, Duluth, MN   0   2,537   18,113   0   20,647   2,537   38,760   41,297   11,650   1973
Mounds Mall, Anderson, IN   0   0   2,689   0   1,716   0   4,405   4,405   3,935   1965
Muncie Mall, Muncie, IN   0   172   5,850   52   23,381   224   29,231   29,455   7,714   1970
Nanuet Mall, Nanuet, NY   0   27,548   162,993   0   1,717   27,548   164,710   192,258   20,124   1998 (Note 4)
North East Mall, Hurst, TX   140,000   1,347   13,473   16,683   139,838   18,030   153,311   171,341   23,635   1996 (Note 4)
Northgate Mall, Seattle, WA   0   28,626   115,314   0   22,753   28,626   138,067   166,693   18,105   1996 (Note 4)
Northlake Mall, Atlanta, GA   72,746   33,400   98,035   0   1,425   33,400   99,460   132,860   12,332   1998 (Note 4)
Northwoods Mall, Peoria, IL   0   1,200   12,779   1,449   28,765   2,649   41,544   44,193   15,523   1983
Oak Court Mall, Memphis, TN   0   15,673   57,304   0   3,903   15,673   61,207   76,880   9,632   1997 (Note 4)
Ocean County Mall, Toms River, NJ   0   20,900   124,945   0   4,337   20,900   129,282   150,182   15,757   1998 (Note 4)
Orange Park Mall, Jacksonville, FL   0   13,345   65,121   0   17,772   13,345   82,893   96,238   19,181   1994

46


SCHEDULE III

Simon Property Group, Inc.
Real Estate and Accumulated Depreciation
December 31, 2002
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition

  Gross Amounts At Which Carried At Close of Period
   
   
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

Orland Square, Orland Park, IL   0   36,770   129,906   0   10,327   36,770   140,233   177,003   20,688   1997 (Note 4)
Paddock Mall, Ocala, FL   27,876   11,198   39,712   0   6,281   11,198   45,993   57,191   7,534   1996 (Note 4)
Palm Beach Mall, West Palm Beach, FL   55,253   11,962   112,741   0   36,372   11,962   149,113   161,075   32,196   1998 (Note 4)
Penn Square Mall, Oklahoma City, OK   72,208   2,043   161,639   0   3,634   2,043   165,273   167,316   4,591   2002 (Note 4)
Phipps Plaza, Atlanta, GA   0   19,200   210,610   0   6,173   19,200   216,783   235,983   26,939   1998 (Note 4)
Port Charlotte Town Center,
Port Charlotte, FL
  53,250   5,561   59,381   0   10,687   5,561   70,068   75,629   13,646   1996 (Note 4)
Prien Lake Mall, Lake Charles, LA   0   1,842   2,813   3,091   34,499   4,933   37,312   42,245   9,964   1972
Raleigh Springs Mall, Memphis, TN   11,000   9,137   28,604   0   12,185   9,137   40,789   49,926   7,589   1996 (Note 4)
Richardson Square, Dallas, TX   0   4,699   6,329   1,268   11,741   5,967   18,070   24,037   4,312   1996 (Note 4)
Richmond Square, Richmond, IN   0   3,410   11,343   0   9,655   3,410   20,998   24,408   4,360   1996 (Note 4)
Richmond Town Square,
Richmond Heights, OH
  48,515   2,615   12,112   0   60,777   2,615   72,889   75,504   13,918   1996 (Note 4)
River Oaks Center, Calumet City, IL   0   30,884   101,224   0   6,457   30,884   107,681   138,565   15,669   1997 (Note 4)
Rockaway Townsquare, Rockaway, NJ   0   49,186   212,257   0   5,949   49,186   218,206   267,392   26,403   1998 (Note 4)
Rolling Oaks Mall, San Antonio, TX   0   2,577   38,609   0   1,123   2,577   39,732   42,309   16,277   1998 (Note 4)
Roosevelt Field, Garden City, NY   0   165,006   702,008   2,117   10,514   167,123   712,522   879,645   86,397   1998 (Note 4)
Ross Park Mall, Pittsburgh, PA   0   23,350   90,394   0   24,356   23,350   114,750   138,100   25,828   1996 (Note 4)
Santa Rosa Plaza, Santa Rosa, CA   0   10,400   87,864   0   3,431   10,400   91,295   101,695   11,496   1998 (Note 4)
Shops at Mission Viejo Mall,
Mission Viejo, CA
  151,299   9,139   54,445   7,491   143,921   16,630   198,366   214,996   31,025   1996 (Note 4)
South Hills Village, Pittsburgh, PA   0   23,453   125,840   0   5,517   23,453   131,357   154,810   19,089   1997 (Note 4)
South Park Mall, Shreveport, LA   0   855   13,684   74   729   929   14,413   15,342   6,736   1975
South Shore Plaza, Braintree, MA   0   101,200   301,495   0   6,381   101,200   307,876   409,076   37,821   1998 (Note 4)
Southern Park Mall, Youngstown, OH   0   16,982   77,767   97   18,256   17,079   96,023   113,102   19,086   1996 (Note 4)
Southgate Mall, Yuma, AZ   0   1,817   7,974   0   3,501   1,817   11,475   13,292   4,247   1988
SouthPark Mall, Charlotte, NC   0   32,170   193,686   100   42,254   32,270   235,940   268,210   3,361   2002 (Note 4)
St Charles Towne Center Waldorf, MD   0   7,710   52,974   1,180   12,421   8,890   65,395   74,285   22,538   1990
Summit Mall, Akron, OH   0   15,374   51,137   0   16,182   15,374   67,319   82,693   12,390   1996 (Note 4)
Sunland Park Mall, El Paso, TX   37,766   2,896   28,900   0   4,721   2,896   33,621   36,517   13,760   1988
Tacoma Mall, Tacoma, WA   133,391   38,662   125,826   0   20,196   38,662   146,022   184,684   26,433   1996 (Note 4)
Tippecanoe Mall, Lafayette, IN   58,021   4,187   8,474   5,517   35,316   9,704   43,790   53,494   19,365   1973
Town Center at Boca Raton Boca Raton, FL   0   64,200   307,511   0   60,246   64,200   367,757   431,957   43,496   1998 (Note 4)
Towne East Square, Wichita, KS   74,469   9,495   18,479   2,042   21,638   11,537   40,117   51,654   15,512   1975
Towne West Square, Wichita, KS   54,509   972   21,203   76   7,644   1,048   28,847   29,895   12,300   1980
Treasure Coast Square, Jensen Beach, FL   61,990   11,124   73,108   3,067   16,538   14,191   89,646   103,837   16,210   1996 (Note 4)
Trolley Square, Salt Lake City, UT   29,336   4,827   27,512   435   10,014   5,262   37,526   42,788   11,687   1986
Tyrone Square, St. Petersburg, FL   0   15,638   120,962   0   14,354   15,638   135,316   150,954   24,705   1996 (Note 4)
University Mall, Little Rock, AR   0   123   17,411   0   1,040   123   18,451   18,574   7,446   1967

47


SCHEDULE III

Simon Property Group, Inc.
Real Estate and Accumulated Depreciation
December 31, 2002
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition

  Gross Amounts At Which Carried At Close of Period
   
   
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

University Mall, Pensacola, FL   0   4,741   26,657   0   4,210   4,741   30,867   35,608   7,910   1994
University Park Mall, Mishawaka, IN   59,365   15,105   61,283   0   13,794   15,105   75,077   90,182   58,029   1996 (Note 4)
Upper Valley Mall, Springfield, OH   30,638   8,421   38,745   0   3,089   8,421   41,834   50,255   8,397   1996 (Note 4)
Valle Vista Mall, Harlingen, TX   39,801   1,398   17,159   372   10,004   1,770   27,163   28,933   9,644   1983
Virginia Center Commons, Richmond, VA   0   9,764   50,547   4,149   6,246   13,913   56,793   70,706   11,447   1996 (Note 4)
Walt Whitman Mall, Huntington Station, NY   0   51,700   111,170   3,789   29,556   55,489   140,726   196,215   23,833   1998 (Note 4)
Washington Square, Indianapolis, IN   33,214   20,146   41,248   0   8,664   20,146   49,912   70,058   10,506   1996 (Note 4)
West Ridge Mall, Topeka, KS   43,856   5,563   34,132   197   6,936   5,760   41,068   46,828   13,969   1988
Westminster Mall, Westminster, CA   0   43,464   84,709   0   10,759   43,464   95,468   138,932   11,526   1998 (Note 4)
White Oaks Mall, Springfield, IL   48,563   3,024   35,692   1,153   16,783   4,177   52,475   56,652   14,205   1977
Wolfchase Galleria, Memphis, TN   75,496   16,470   128,909   0   784   16,470   129,693   146,163   4,487   2002 (Note 4)
Woodville Mall, Northwood, OH   0   1,831   4,244   0   1,622   1,831   5,866   7,697   2,142   1996 (Note 4)
Community Shopping Centers                                        
Arboretum, The, Austin, TX   34,000   7,640   36,778   71   6,149   7,711   42,927   50,638   5,002   1998 (Note 4)
Bloomingdale Court, Bloomingdale, IL   29,026   8,748   26,184   0   3,325   8,748   29,509   38,257   7,487   1987
Boardman Plaza, Youngstown, OH   18,098   8,189   26,355   0   5,613   8,189   31,968   40,157   5,944   1996 (Note 4)
Bridgeview Court, Bridgeview, IL   0   290   3,638   0   830   290   4,468   4,758   1,618   1988
Brightwood Plaza, Indianapolis, IN   0   65   128   0   283   65   411   476   200   1965
Celina Plaza, El Paso, TX   0   138   815   0   103   138   918   1,056   346   1978
Charles Towne Square, Charleston, SC   0   418   1,768   425   11,136   843   12,904   13,747   2,030   1976
Chesapeake Center, Chesapeake, VA   6,563   5,352   12,279   0   119   5,352   12,398   17,750   2,297   1996 (Note 4)
Countryside Plaza, Countryside, IL   0   1,243   8,507   0   807   1,243   9,314   10,557   3,689   1977
Eastland Plaza, Tulsa, OK   0   908   3,680   0   47   908   3,727   4,635   1,129   1986
Forest Plaza, Rockford, IL   15,920   4,187   16,818   453   1,514   4,640   18,332   22,972   4,607   1985
Fox River Plaza, Elgin, IL   0   2,908   4,042   0   250   2,908   4,292   7,200   2,209   1985
Great Lakes Plaza, Mentor, OH   0   1,028   2,025   0   3,616   1,028   5,641   6,669   1,405   1996 (Note 4)
Greenwood Plus, Greenwood, IN   0   1,131   1,792   0   3,718   1,131   5,510   6,641   1,570   1979
Griffith Park Plaza, Griffith, IN   0   0   2,412   0   249   0   2,661   2,661   1,510   1979
Grove at Lakeland Square,
The, Lakeland, FL
  3,750   5,237   6,016   0   1,017   5,237   7,033   12,270   1,577   1996 (Note 4)
Highland Lakes Center, Orlando, FL   16,471   7,138   25,284   0   598   7,138   25,882   33,020   4,490   1996 (Note 4)
Ingram Plaza, San Antonio, TX   0   421   1,802   4   21   425   1,823   2,248   867   1980
Keystone Shoppes, Indianapolis, IN   0   0   4,232   0   876   0   5,108   5,108   683   1997 (Note 4)
Knoxville Commons, Knoxville, TN   0   3,731   5,345   0   1,710   3,731   7,055   10,786   2,168   1987
Lake Plaza, Waukegan, IL   0   2,577   6,420   0   597   2,577   7,017   9,594   1,767   1986
Lake View Plaza, Orland Park, IL   21,163   4,775   17,543   0   8,005   4,775   25,548   30,323   5,275   1986
Lakeline Plaza, Austin, TX   23,202   4,867   25,732   0   6,555   4,867   32,287   37,154   5,130   1999 (Note 4)
Lima Center, Lima, OH   0   1,808   5,151   0   4,177   1,808   9,328   11,136   1,108   1996 (Note 4)
Lincoln Crossing, O'Fallon, IL   3,204   827   2,692   0   349   827   3,041   3,868   768   1990
Mainland Crossing, Galveston, TX   0   1,609   1,737   0   176   1,609   1,913   3,522   406   1996 (Note 4)
Markland Plaza, Kokomo, IN   0   210   738   0   3,821   210   4,559   4,769   637   1974
Martinsville Plaza, Martinsville, VA   0   0   584   0   111   0   695   695   598   1967

48


SCHEDULE III

Simon Property Group, Inc.
Real Estate and Accumulated Depreciation
December 31, 2002
(Dollars in thousands)

 
   
  Initial Cost (Note 3)
  Cost Capitalized
Subsequent to Acquisition

  Gross Amounts At Which Carried At Close of Period
   
   
Name, Location

  Encumbrances
  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Land
  Buildings and
Improvements

  Total (1)
  Accumulated
Depreciation (2)

  Date of
Construction

Matteson Plaza, Matteson, IL     9,319     1,830     9,737     0     2,260     1,830     11,997     13,827     3,367   1988
Memorial Plaza, Sheboygan, WI     0     250     436     0     1,186     250     1,622     1,872     688   1966
Mounds Mall Cinema, Anderson, IN     0     88     158     0     11     88     169     257     91   1974
Muncie Plaza, Muncie, IN     8,057     341     10,509     87     160     428     10,669     11,097     1,743   1998
New Castle Plaza, New Castle, IN     0     128     1,621     0     1,303     128     2,924     3,052     1,174   1966
North Ridge Plaza, Joliet, IL     0     2,831     7,699     0     718     2,831     8,417     11,248     2,318   1985
North Riverside Park Plaza, N. Riverside, IL     0     1,062     2,490     0     759     1,062     3,249     4,311     1,531   1977
Northland Plaza, Columbus, OH     0     4,490     8,893     0     1,223     4,490     10,116     14,606     2,658   1988
Northwood Plaza, Fort Wayne, IN     0     148     1,414     0     912     148     2,326     2,474     960   1974
Park Plaza, Hopkinsville, KY     0     300     1,572     0     225     300     1,797     2,097     1,194   1968
Regency Plaza, St. Charles, MO     4,368     616     4,963     0     169     616     5,132     5,748     1,221   1988
Rockaway Convenience Center Rockaway, NJ     0     2,900     12,500     0     374     2,900     12,874     15,774     1,569   1998 (Note 4)
St. Charles Towne Plaza, Waldorf, MD     27,958     8,779     18,993     0     386     8,779     19,379     28,158     5,428   1987
Shops at North East Mall, The, Hurst, TX     0     12,541     28,177     402     9,685     12,943     37,862     50,805     4,854   1999
Teal Plaza, Lafayette, IN     0     99     878     0     2,928     99     3,806     3,905     1,001   1962
Terrace at The Florida Mall, Orlando, FL     4,688     2,150     7,623     0     130     2,150     7,753     9,903     1,161   1996 (Note 4)
Tippecanoe Plaza, Lafayette, IN     0     246     440     305     4,965     551     5,405     5,956     1,767   1974
University Center, Mishawaka, IN     0     2,388     5,214     0     815     2,388     6,029     8,417     5,795   1996 (Note 4)
Wabash Village, West Lafayette, IN     0     0     976     0     247     0     1,223     1,223     554   1970
Washington Plaza, Indianapolis, IN     0     941     1,697     0     177     941     1,874     2,815     1,764   1996 (Note 4)
Waterford Lakes, Orlando, FL     68,000     8,679     72,836     0     6,722     8,679     79,558     88,237     10,016   1999
West Ridge Plaza, Topeka, KS     5,631     1,491     4,560     0     1,229     1,491     5,789     7,280     1,432   1988
White Oaks Plaza, Springfield, IL     17,183     3,169     14,267     0     687     3,169     14,954     18,123     3,752   1986
Office, Mixed-Use Properties                                                          
Copley Place, Boston, MA     183,537     147     378,876     0     1,621     147     380,497     380,644     4,038   2002 (Note 4)
New Orleans Centre/CNG Tower,
New Orleans, LA
    0     3,493     41,222     0     12,771     3,493     53,993     57,486     10,909   1996 (Note 4)
O Hare International Center, Rosemont, IL     0     125     60,287     0     12,692     125     72,979     73,104     27,936   1988
Riverway, Rosemont, IL     110,000     8,739     129,175     16     11,506     8,755     140,681     149,436     54,928   1991
Development Projects                                                          
Lakeline Village, Austin, TX     0     1,210     1,933     0     0     1,210     1,933     3,143     0    
Rockaway Town Court, Rockaway, NJ     0     0     3,615     0     0     0     3,615     3,615     0    
Other pre-development costs     0     12,792     6,121     0     0     12,792     6,121     18,913     0    
Other     0     12,762     9,851     282     1,676     13,044     11,527     24,571     1,805    
   
 
 
 
 
 
 
 
 
   
    $ 3,648,230   $ 1,930,494   $ 10,087,958   $ 97,791   $ 2,013,496   $ 2,028,285   $ 12,101,454   $ 14,129,739   $ 2,168,281    
   
 
 
 
 
 
 
 
 
   

49


SIMON PROPERTY GROUP, INC.
NOTES TO SCHEDULE III AS OF DECEMBER 31, 2002
(Dollars in thousands)

(1)    Reconciliation of Real Estate Properties:

            The changes in real estate assets for the years ended December 31, 2002, 2001, and 2000 are as follows (see also Note 5):

 
  2002
  2001
  2000
 
Balance, beginning of year   $ 13,095,005   $ 12,955,080   $ 12,727,786  
  Acquisitions and Consolidations     1,107,581          
  Improvements     208,257     245,660     344,098  
  Disposals and abandonments     (281,104 )   (58,735 )   (106,232 )
  Impairment Write-Down         (47,000 )   (10,572 )
   
 
 
 
Balance, close of year   $ 14,129,739   $ 13,095,005   $ 12,955,080  
   
 
 
 

            The unaudited aggregate cost for Simon Property for federal income tax purposes as of December 31, 2002 was $9,365,667.

(2)    Reconciliation of Accumulated Depreciation

            The changes in accumulated depreciation and amortization for the years ended December 31, 2002, 2001, and 2000 are as follows (see also Note 5):

 
  2002
  2001
  2000
 
Balance, beginning of year   $ 1,827,140   $ 1,443,127   $ 1,071,941  
  Acquisitions and Consolidations     16,491          
  Depreciation expense     417,064     419,841     396,043  
  Disposals and abandonments     (92,414 )   (35,828 )   (24,857 )
   
 
 
 
Balance, close of year   $ 2,168,281   $ 1,827,140   $ 1,443,127  
   
 
 
 

            Depreciation of Simon Property's investment in buildings and improvements reflected in the statements of operations is calculated over the estimated original lives of the assets as follows:

(3)
Initial cost represents net book value at December 20, 1993 except for acquired properties and new developments after December 20, 1993.

(4)
Not developed/constructed by Simon Property or its predecessors. The date of construction represents acquisition date.

(5)
Effective December 31, 2002, SPG Realty Consultants, Inc. was merged into Simon Property. Schedule III and related notes represent the combined entities for all periods presented.

50



INDEX TO EXHIBITS

Exhibits
   
  Page
2.1   Purchase Agreement, dated as of January 12, 2002, among Rodamco North America, N.V., Westfield America Limited Partnership, Westfield Growth L.P., Simon Property Group, L.P, Hoosier Acquisition LLC, The Rouse Company and Terrapin Acquisition LLC. (incorporated by reference to Exhibit 2.1 of the Form 8-K filed by the Operating Partnership on May 20, 2002).    
3.1   Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 of the Form 8-K filed by the Registrant on October 9, 1998).    
3.2   Restated By-laws of the Registrant (incorporated by reference to Exhibit 3.1 of the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002).    
3.3   Certificate of Powers, Designations, Preferences and Rights of the 7.00% Series C Cumulative Convertible Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.1 of the Registrant's Form 10-Q filed on November 15, 1999).    
3.3a   Certificate of Correction Filed to Correct Certain Errors in Certificate of Powers, Designations, Preferences and Rights of the 7.00% Series C Cumulative Convertible Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.1a of the Registrant's Form 10-Q filed on November 15, 1999).    
3.4   Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series D Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.2 of the Registrant's Form 10-Q filed on November 15, 1999).    
3.4a   Certificate of Correction Filed to Correct Certain Errors in Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series D Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.2a of the Registrant's Form 10-Q filed on November 15, 1999).    
3.5   Certificate of Powers, Designations, Preferences and Rights of the 8.00% Series E Cumulative Redeemable Preferred Stock, $0.0001 Par Value (incorporated by reference to Exhibit 3.3 of the Registrant's Form 10-Q filed on November 15, 1999).    
3.6   Certificate of Powers, Designations, Preferences and Rights of the 8-3/4% Series F Cumulative Redeemable Preferred Stock, $.0001 Par Value (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-4 filed by the Registrant on May 9, 2001 (Reg. No. 333-60526)).    
3.7   Certificate of Powers, Designations, Preferences and Rights of the 7.89% Series G Cumulative Step-Up Premium Rate Preferred Stock, $.0001 Par Value (incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-4 filed by the Registrant on May 9, 2001 (Reg. No. 333-60526)).    
9.1   Amended and Restated Voting Trust Agreement, Voting Agreement and Proxy between MSA, on the one hand, and Melvin Simon, Herbert Simon and David Simon, on the other hand (incorporated by reference to Exhibit 9.1 of the Registrant's Annual Report on Form 10-K for 2000).    
10.1   Credit Agreement, dated as of April 16, 2002, among Simon Property Group, L.P., the Lenders named therein, the Co-Agents named therein (incorporated by reference to Exhibit 10.1 of the Form 8-K filed by the Operating Partnership on December 5, 2002).    
10.2   Form of the Indemnity Agreement between the Registrant and its directors and officers (incorporated by reference to Exhibit 10.7 of the Form S-4 filed by the Registrant on August 13, 1998 (Reg. No. 333-61399)).    
10.3   Registration Rights Agreement, dated as of September 24, 1998, by and among the Registrant and the persons named therein. (incorporated by reference to Exhibit 4.4 of the Form 8-K filed by the Registrant on October 9, 1998).    
10.4(a)   Simon Property Group, L.P. 1998 Stock Incentive Plan (incorporated by reference to Appendix A to the Registrants' Definitive Proxy Statement on Schedule 14A dated April 12, 2002).    
10.5(a)   Form of Employment Agreement between Hans C. Mautner and the Companies (incorporated by reference to Exhibit 10.63 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399) ).    
10.6(a)   Form of Incentive Stock Option Agreement between the Companies and Hans C. Mautner pursuant to the Operating Partnership 1998 Stock Incentive Plan (incorporated by reference to Exhibit 10.59 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399)).    
10.7(a)   Form of Nonqualified Stock Option Agreement between the Registrant and Hans C. Mautner pursuant to the Operating Partnership 1998 Stock Incentive Plan (incorporated by reference to Exhibit 10.61 of the Form S-4 filed by CPI on August 13, 1998 (Reg. No. 333-61399)).    
10.8(a)   Employment Agreement between Hans C. Mautner and Simon Global Limited (incorporated by reference to Exhibit 10.10 of the 2000 Form 10-K filed by the Registrant).    
10.9(a)   First Amendment to Employment Agreement Dated September 23, 1998 between Hans C. Mautner and the Registrant (incorporated by reference to Exhibit 10.11 of the 2000 Form 10-K filed by the Registrant).    

51


10.10(a)   Employment Agreement between Richard S. Sokolov, the Registrant, and Simon Property Group Administrative Services Partnership, L.P. Dated March 26, 1996 (incorporated by reference to Exhibit 10.12 of the 2000 Form 10-K filed by the Registrant).    
12.1         Statement regarding computation of ratios.    
13.1         Selected Financial Data, Management's Discussion and Analysis of Financial Condition and Results of Operations and Financial Statements of the Registrant as contained in the Registrant's 2002 Annual Report to Shareholders.    
21.1         List of Subsidiaries of the Company.    
23.1         Consent of Arthur Andersen LLP (omitted pursuant to Rule 437a of the Securities Act)    
23.2         Consent of Ernst & Young LLP.    
99.1         Certification pursuant to 18 U.S.C. Section 1350 by the Chief Executive Officer, as adopted pursuant to Section 906 of the Sabarbanes-Oxley Act of 2002.    
99.2         Certification pursuant to 18 U.S.C. Section 1350 by the Chief Financial Officer, as adopted pursuant to Section 906 of the Sabarbanes-Oxley Act of 2002.    

(a)
Represents a management contract, or compensatory plan, contract or arrangement required to be filed pursuant to Regulation S-K.

52




QuickLinks

TABLE OF CONTENTS
Part I
Part II
Part III
PART IV
SIGNATURES
CERTIFICATIONS
INDEX TO EXHIBITS