SEC Filing | Simon Property Group, L.P.

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2006

SIMON PROPERTY GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-14469		046268599
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

225 WEST WASHINGTON STREET INDIANAPOLIS, INDIANA		46204
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 317.636.1600

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Item 2.02. Results of Operation and Financial Condition

On October 30, 2006, Simon Property Group, Inc. (the “Registrant”) issued a press release containing information on earnings for the quarter ended September 30, 2006 and other matters. A copy of the press release is attached hereto as Exhibit 99.2 and the information in the press release is incorporated by reference into this report.

The press release and Supplemental Information package attached as Exhibit 99.1 use the non-GAAP financial measure of Funds from Operations (“FFO”). The Supplemental Information package also uses the non-GAAP measure of Net Operating Income (“NOI”). The Registrant considers FFO and NOI key measures of its operating performance that are not specifically defined by accounting principles generally accepted in the United States (“GAAP”). The Registrant believes that FFO and NOI are helpful to investors because they are widely recognized measures of the performance of real estate investment trusts and provide relevant bases for comparison among REITs. The Registrant also uses FFO and NOI internally to measure the operating performance of its portfolio. Reconciliations of FFO to net income on an estimated and historical basis are provided on page 73 furnished herewith in Exhibit 99.2. Reconciliations of net income to NOI on an estimated and historical basis are provided on page 14 furnished herewith in Exhibit 99.1.

The Registrant is furnishing the information contained herein, including Exhibit 99.2, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

Item 7.01. Regulation FD Disclosure

On October 30, 2006, the Registrant made available additional ownership and operational information concerning the Registrant, Simon Property Group, L.P., and properties owned or managed as of September 30, 2006, in the form of a Supplemental Information package, a copy of which is attached as Exhibit 99.1. The Supplemental Information package is also available upon request as specified therein.

The Registrant is furnishing the information contained herein, including Exhibit 99.1, pursuant to Item 7.01 of Form 8-K promulgated by the SEC. This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

Item 9.01. Financial Statements and Exhibits

Financial Statements:

None

Exhibits:

		Page Number in
Exhibit No.	Description	This Filing
99.1	Supplemental Information as of September 30, 2006	5
99.2	Earnings Release for the quarter ended September 30, 2006	62

SIGNATURES

Pursuant to the requirements 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.

Dated: October 30, 2006

		SIMON PROPERTY GROUP, INC.
		By:	/s/ STEPHEN E. STERRETT
			Stephen E. Sterrett,
			Executive Vice President and
			Chief Financial Officer

SIMON PROPERTY GROUP

Table of Contents

As of September 30, 2006

Description		Page
Exhibit 99.1	Supplemental Information
	Company Overview
	Overview (reporting calendar, stock information, and corporate ratings)	5-6
	Ownership Structure	7
	Changes in Common Shares and Unit Ownership	8
	Financial Data
	Selected Financial and Equity Information	9
	Unaudited Pro-Rata Statement of Operations	11-12
	Unaudited Pro-Rata Balance Sheet	13
	Reconciliation of Net Income to NOI	14
	NOI Composition	15
	Analysis of Other Income and Other Expense	16
	Operational Data
	U.S. Portfolio GLA	17
	U.S. Regional Mall Operational Information	18
	U.S. Regional Mall Lease Expirations	19
	U.S. Regional Mall Top Tenants	20
	U.S. Regional Mall Anchor/Big Box Openings, 2006-2010	21-23
	U.S. Regional Mall Property Listing	24-28
	U.S. Premium Outlet Centers® Operational Information	29
	U.S. Premium Outlet Centers® Lease Expirations	30
	U.S. Premium Outlet Centers® Top Tenants	31
	U.S. Premium Outlet Centers® Property Listing	32
	U.S. Community/Lifestyle Centers Operational Information	33
	U.S. Community/Lifestyle Centers Lease Expirations	34
	U.S. Community/Lifestyle Centers Top Tenants	35
	U.S. Community/Lifestyle Centers Property Listing	36-37
	International Operational Information	38
	International Property Listing	39-41
	Development Activity
	Capital Expenditures in the U.S. Portfolio	42
	U.S. Development Activity Report	43-45
	International Development Activity Report	46
	Balance Sheet Information
	The Company’s Share of Total Debt Amortization and Maturities by Year	47
	Summary of Indebtedness	48
	Summary of Indebtedness by Maturity	49-55
	Unencumbered Assets	56-60
	Preferred Stock/Units Outstanding	61
	Quarterly Earnings Announcement
Exhibit 99.2	Press Release	62-74

Exhibit 99.1

SIMON PROPERTY GROUP

Overview

The Company

Simon Property Group, Inc. (the “Company” or “Simon Property”) (NYSE:SPG) is a self-administered and self-managed real estate investment trust (“REIT”). Simon Property Group, L.P. (the “Operating Partnership”) is a subsidiary partnership of the Company. The Company and the Operating Partnership (collectively, “Simon Group”) are engaged primarily in the ownership, development and management of retail real estate properties, primarily regional malls, Premium Outlet Centers® and community/lifestyle centers.

At September 30, 2006, the Company owned or had an interest in 284 properties in the United States containing an aggregate of 199 million square feet of gross leasable area (GLA) in 38 states plus Puerto Rico. The Company also holds interests in 52 European shopping centers in France, Italy and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico.

This package was prepared to provide (1) ownership information, (2) certain operational information, and (3) balance sheet information as of September 30, 2006, for the Company and the Operating Partnership.

Certain statements made in this Supplemental Package may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to: the Company’s ability to meet debt service requirements, the availability of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, the ability to hedge interest rate risk, risks associated with the acquisition, development and expansion of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, competitive market forces, risks related to international activities, insurance costs and coverage, impact of terrorist activities, inflation and maintenance of REIT status. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its most recent Annual Report on Form 10-K that could cause the Company’s actual results to differ materially from the forward-looking statements that the Company makes. The Company may update that discussion in subsequent quarterly reports, but otherwise the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

We hope you find this Supplemental Package beneficial. Any questions, comments or suggestions should be directed to: Shelly J. Doran, Vice President of Investor Relations-Simon Property Group, P.O. Box 7033, Indianapolis, IN 46207. Telephone: (317) 685-7330; e-mail: sdoran@simon.com

Reporting Calendar

Results for the next three quarters will be announced according to the following approximate schedule:

Fourth Quarter 2006		Early February 2007
First Quarter 2007		Late April 2007
Second Quarter 2007		Late July 2007

Stock Information

Simon Property common stock and three issues of preferred stock are traded on the New York Stock Exchange under the following symbols:

Common Stock		SPG
7.89% Series G Cumulative Preferred		SPGPrG
6% Series I Convertible Perpetual Preferred		SPGPrI
8.375% Series J Cumulative Redeemable Preferred		SPGPrJ

All outstanding shares of 8.75% Series F Cumulative Preferred stock (SPGPrF) were redeemed on October 4, 2006.

Credit Ratings

Standard & Poor’s(1)
Corporate	A-	(Stable Outlook)
Senior Unsecured	A-	(Stable Outlook)
Preferred Stock	BBB+	(Stable Outlook)
Moody’s(2)
Senior Unsecured	Baa1	(Review for Upgrade)
Preferred Stock	Baa2	(Review for Upgrade)

(1) On March 31, 2006, Standard & Poor’s upgraded its rating on Simon Group’s corporate and senior unsecured debt to A- from BBB+ and upgraded its rating on Simon Group’s preferred stock to BBB+ from BBB.

(2) On August 22, 2006, Moody’s placed Simon Group’s senior unsecured debt and preferred stock on Review for Upgrade.

Simon Property Group Ownership Structure(1)
September 30, 2006

(1) Schedule excludes preferred stock (see “Preferred Stock/Units Outstanding”) and units not convertible into common stock.

(2) Consists of Melvin Simon, Herbert Simon, David Simon, and/or trusts established for the benefit of members of the Simon family and Melvin Simon & Associates, Inc.

(3) Holders of Class B common stock are entitled to elect 4 of the 13 members of the Board of Directors and also have voting rights with common stock.

(4) Consists of NID Corporation, directly or indirectly, members of the DeBartolo family, including Edward J. DeBartolo, Jr. and M. Denise DeBartolo York, or trusts established for the benefit of members of the DeBartolo family or entities in which the foregoing persons hold interests.

(5) Holders of Class C common stock are entitled to elect 2 of the 13 members of the Board of Directors and also have voting rights with common stock.

(6) Other executives includes directors and executive officers of Simon Property, other than Simon and DeBartolo family members.

SIMON PROPERTY GROUP
Changes in Common Shares and Unit Ownership
For the Period from December 31, 2005 through September 30, 2006

	Operating		Company
	Partnership		Common
	Units(1)		Shares(2)
Number Outstanding at December 31, 2005	58,522,624		220,361,581
Activity During the First Six Months of 2006:
Issuance of Stock for Stock Option Exercises	—		204,725
Conversion of Preferred Stock into Common Stock	—		169,343
Conversion of Units into Common Stock	(16,800	)	16,800
Conversion of Units into Cash	(133,818	)	—
Conversion of Preferred Units into Units	21,212		—
Restricted Stock Awards (Stock Incentive Program), Net	—		417,285
Number Outstanding at June 30, 2006	58,393,218		221,169,734
Activity During the Third Quarter of 2006:
Issuance of Stock for Stock Option Exercises	—		103,534
Conversion of Preferred Stock into Common Stock	—		18,250
Conversion of Units into Common Stock	(70,000	)	70,000
Conversion of Units into Cash	(16,868	)	—
Conversion of Preferred Units into Units	10,307		—
Shares Retired	—		(70,000	)
Restricted Stock Awards (Stock Incentive Program), Net	—		(1,375	)
Number Outstanding at September 30, 2006	58,316,657		221,290,143
*Details for Diluted Common Shares Outstanding(5):*
Company Common Shares Outstanding at September 30, 2006			221,290,143
Number of Common Shares Issuable Assuming Conversion of:
Series I 6% Convertible Perpetual Preferred Stock(3)			10,758,075
Series C 7% Cumulative Convertible Preferred Units(3)			1,036,086
Series I 6% Convertible Perpetual Preferred Units(3)			3,210,485
Net Number of Common Shares Issuable Assuming Exercise of Stock Options(4)			871,604
Diluted Common Shares Outstanding at September 30, 2006(5)			237,166,393

(1) Excludes units owned by the Company (shown here as Company Common Shares) and units not convertible into common shares.

(2) Excludes preferred units relating to preferred stock outstanding (see Schedule of Preferred Stock Outstanding on page 61).

(3) Conversion terms provided on page 61 of this document.

(4) Based upon the weighted average stock price for the quarter ended September 30, 2006.

(5) For FFO purposes.

SIMON PROPERTY GROUP
Selected Financial and Equity Information
As of September 30, 2006
Unaudited
(In thousands, except as noted)

	As of or for the				As of or for the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
*Financial Highlights of the Company*
Total Revenue—Consolidated Properties	$	818,736	$	783,009	$	2,405,123	$	2,277,063
Net Income Available to Common Stockholders	$	94,592	$	74,358	$	281,477	$	286,236
Basic Earnings per Common Share	$	0.43	$	0.34	$	1.27	$	1.30
Diluted Earnings per Common Share	$	0.43	$	0.34	$	1.27	$	1.30
FFO of the Simon Portfolio	$	369,506	$	337,673	$	1,086,803	$	992,411
Diluted FFO of the Simon Portfolio	$	383,598	$	351,876	$	1,129,210	$	1,035,035
Basic FFO per Share	$	1.32	$	1.21	$	3.89	$	3.54
Diluted FFO per Share	$	1.30	$	1.19	$	3.82	$	3.49
Distributions per Share	$	0.76	$	0.70	$	2.28	$	2.10

	September 30,		December 31,
	2006		2005
*Stockholders’ Equity Information*
Limited Partner Units Outstanding at End of Period	58,317		58,523
Common Shares Outstanding at End of Period	221,290		220,361
Total Common Shares and Units Outstanding at End of Period	279,607		278,884
Weighted Average Limited Partnership Units Outstanding	58,450		59,566
Weighted Average Common Shares Outstanding—Basic(1)	220,925		220,259
Weighted Average Common Shares Outstanding—Diluted(1)	236,952		236,321
*Debt Information*
Simon Group’s Share of Consolidated Debt	$	14,054,311	$	13,912,933
Simon Group’s Share of Joint Venture Debt	$	3,526,859	$	3,169,662
*Market Capitalization*
Common Stock Price at End of Period	$	90.62	$	76.63
Equity Market Capitalization(2)	$	27,150,511	$	23,070,738
Total Capitalization—Including Simon Group’s Share of JV Debt	$	44,731,681	$	40,153,333

	As of or for the
	Nine Months Ended
	September 30,
	2006		2005
*Miscellaneous Balance Sheet Data*
Interest Capitalized during the Period:
Consolidated Properties	$	21,169	$	13,851
Joint Venture Properties	$	6,856	$	2,374
Simon Group’s Share of Joint Venture Properties	$	3,246	$	1,049

(1) For purposes of computing net income and FFO per share.

(2) Market value of Common Stock, Units and all issues of Preferred Stock of the Company.

On the next three pages, we present balance sheet and income statement data on a pro-rata basis reflecting the Company’s proportionate economic ownership of each asset in the Simon Group portfolio.

Basis of Presentation: The consolidated amounts shown are prepared on a consistent basis with the consolidated financial statements prepared by the Company. The Company’s Share of Joint Ventures column was derived on a property-by-property basis by applying the same percentage interests used to arrive at our share of net income during the period and applying them to all financial statement line items of each property. A similar calculation was performed for minority interests.

SIMON PROPERTY GROUP
Unaudited Pro-Rata Statement of Operations
For The Three Months Ended September 30, 2006

									The Company’s				The Company’s				Total
					Minority				Consolidated				Share of				Company’s
	Consolidated				Interest				Share				Joint Ventures				Share
REVENUE:
Minimum rent		$	500,589			$	(8,310	)		$	492,279			$	121,317			$	613,596
Overage rent		21,931				(171		)		21,760				7,771				29,531
Tenant reimbursements		233,278				(5,470		)		227,808				58,374				286,182
Management fees and other revenues		20,780				—				20,780				—				20,780
Other income		42,158				(277		)		41,881				20,161				62,042
Total revenue		818,736				(14,228		)		804,508				207,623				1,012,131
EXPENSES:
Property operating		118,185				(3,163		)		115,022				43,216				158,238
Depreciation and amortization		211,390				(2,228		)		209,162				53,856				263,018
Real estate taxes		73,427				(1,383		)		72,044				14,012				86,056
Repairs and maintenance		23,910				(601		)		23,309				8,711				32,020
Advertising and promotion		17,718				(270		)		17,448				4,801				22,249
Provision for credit losses		393				(87		)		306				986				1,292
Home and regional office costs		32,703				—				32,703				—				32,703
General & administrative		4,422				—				4,422				—				4,422
Other		15,264				(485		)		14,779				12,820				27,599
Total operating expenses		497,412				(8,217		)		489,195				138,402				627,597
OPERATING INCOME		321,324				(6,011		)		315,313				69,221				384,534
Interest expense		206,195				(2,857		)		203,338				47,356				250,694
Income before minority interest		115,129				(3,154		)		111,975				21,865				133,840
Minority interest		(3,154		)		3,154				—				—				—
Income tax expense of taxable REIT subsidiaries		(2,536		)		—				(2,536		)		—				(2,536		)
Income before unconsolidated entities		109,439				—				109,439				21,865				131,304
Income from unconsolidated entities and beneficial interests		25,898				—				25,898				(21,865		)		4,033		(A)
Gain on sales of assets and interests in unconsolidated entities, net		9,457				—				9,457				—				9,457
Income from continuing operations		144,794				—				144,794				—				144,794
Results of operations from discontinued operations		56				—				56				—				56
Gain on disposal or sale of discontinued operations, net		—				—				—				—				—
Income before allocation to limited partners		144,850				—				144,850				—				144,850
LESS:
Limited partners’ interest in the Operating Partnership		24,962				—				24,962				—				24,962
Preferred distributions of the Operating Partnership		6,893				—				6,893				—				6,893
NET INCOME		112,995				—				112,995				—				112,995
Preferred dividends		(18,403		)		—				(18,403		)		—				(18,403		)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	94,592			$	—			$	94,592			$	—			$	94,592
RECONCILIATION OF NET INCOME TO FFO
Net Income										$	112,995			$	—			$	112,995
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership										31,855				—				31,855
Depreciation and amortization from consolidated properties, beneficial interests, and discontinued operations										209,023				—				209,023
Simon’s share of depreciation and amortization from unconsolidated entities										—				52,477				52,477
Income from unconsolidated entities										(21,865		)		21,865				—
Gain on disposal or sale of discontinued operations, net and sales of assets and interests in unconsolidated entities, net										(9,457		)		—				(9,457		)
Minority interest portion of depreciation and amortization										(2,091		)		—				(2,091		)
Preferred distributions and dividends										(25,296		)		—				(25,296		)
FFO of the Simon Portfolio										$	295,164			$	74,342			$	369,506
Percentage of FFO of the Simon Portfolio										79.88		%		20.12		%		100.00		%

(A) Represents beneficial interest in earnings from Mall of America for the third quarter of 2006 attributable to a transfer from a Simon family affiliate of rights to receive certain cash flow distributions, capital transaction proceeds and related profits and losses.

SIMON PROPERTY GROUP
Unaudited Pro-Rata Statement of Operations
For The Nine Months Ended September 30, 2006

									The Company’s				The Company’s				Total
					Minority				Consolidated				Share of				Company’s
	Consolidated				Interest				Share				Joint Ventures				Share
REVENUE:
Minimum rent		$	1,474,503			$	(24,931	)		$	1,449,572			$	355,357			$	1,804,929
Overage rent		53,287				(376		)		52,911				20,869				73,780
Tenant reimbursements		681,090				(16,618		)		664,472				165,623				830,095
Management fees and other revenues		60,348				—				60,348				—				60,348
Other income		135,895				(1,149		)		134,746				51,035				185,781
Total revenue		2,405,123				(43,074		)		2,362,049				592,884				2,954,933
EXPENSES:
Property operating		331,389				(9,089		)		322,300				116,729				439,029
Depreciation and amortization		632,200				(6,490		)		625,710				159,003				784,713
Real estate taxes		225,636				(7,168		)		218,468				40,704				259,172
Repairs and maintenance		74,704				(1,892		)		72,812				25,717				98,529
Advertising and promotion		55,661				(915		)		54,746				10,952				65,698
Provision for credit losses		4,853				(333		)		4,520				1,839				6,359
Home and regional office costs		95,691				—				95,691				—				95,691
General & administrative		13,920				—				13,920				—				13,920
Other		40,492				(1,488		)		39,004				41,092				80,096
Total operating expenses		1,474,546				(27,375		)		1,447,171				396,036				1,843,207
OPERATING INCOME		930,577				(15,699		)		914,878				196,848				1,111,726
Interest expense		611,010				(8,187		)		602,823				136,454				739,277
Income before minority interest		319,567				(7,512		)		312,055				60,394				372,449
Minority interest		(7,512		)		7,512				—				—				—
Income tax expense of taxable REIT subsidiaries		(7,395		)		—				(7,395		)		—				(7,395		)
Income before unconsolidated entities		304,660				—				304,660				60,394				365,054
Income from unconsolidated entities and beneficial interests		75,703				—				75,703				(60,394		)		15,309		(A)
Gain on sales of assets and interests in unconsolidated entities, net		51,406				—				51,406				—				51,406
Income from continuing operations		431,769				—				431,769				—				431,769
Results of operations from discontinued operations		112				—				112				—				112
Gain on disposal or sale of discontinued operations, net		84				—				84				—				84
Income before allocation to limited partners		431,965				—				431,965				—				431,965
LESS:
Limited partners’ interest in the Operating Partnership		74,470				—				74,470				—				74,470
Preferred distributions of the Operating Partnership		20,647				—				20,647				—				20,647
NET INCOME		336,848				—				336,848				—				336,848
Preferred dividends		(55,371		)		—				(55,371		)		—				(55,371		)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	281,477			$	—			$	281,477			$	—			$	281,477
RECONCILIATION OF NET INCOME TO FFO
Net Income										$	336,848			$	—			$	336,848
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership										95,117				—				95,117
Depreciation and amortization from consolidated properties, beneficial interests, and discontinued operations										633,013				—				633,013
Simon’s share of depreciation and amortization from unconsolidated entities										—				155,555				155,555
Income from unconsolidated entities										(60,394		)		60,394				—
Gain on disposal or sale of discontinued operations, net and sales of assets and interests in unconsolidated entities, net										(51,490		)		—				(51,490		)
Minority interest portion of depreciation and amortization										(6,222		)		—				(6,222		)
Preferred distributions and dividends										(76,018		)		—				(76,018		)
FFO of the Simon Portfolio										$	870,854			$215,949				$	1,086,803
Percentage of FFO of the Simon Portfolio										80.13		%		19.87		%		100.00		%

(A) Represents beneficial interest in earnings from Mall of America for the period from August 2004 through and including the third quarter of 2006 attributable to a transfer from a Simon family affiliate of rights to receive certain cash flow distributions, capital transaction proceeds and related profits and losses.

SIMON PROPERTY GROUP
Unaudited Pro-Rata Balance Sheet
As of September 30, 2006

							The Company’s				The Company’s				Total
				Minority			Consolidated				Share of				Company’s
	Consolidated			Interest			Share				Joint Ventures				Share
ASSETS:
Investment properties, at cost	$	22,227,899		$	(188,033	)		$	22,039,866			$	5,505,132		$	27,544,998
Less—accumulated depreciation	4,348,676			(62,796		)		4,285,880				841,084			5,126,964
	17,879,223			(125,237		)		17,753,986				4,664,048			22,418,034
Cash and cash equivalents	322,952			(10,946		)		312,006				156,687			468,693
Tenant receivables and accrued revenue, net	312,948			(4,561		)		308,387				97,107			405,494
Investment in unconsolidated entities, at equity	1,492,522			—				1,492,522				(1,492,522		)	—
Deferred costs and other assets	995,973			(82,190		)		913,783				137,232			1,051,015
Total assets	$	21,003,618		$	(222,934	)		$	20,780,684			$	3,562,552		$	24,343,236
LIABILITIES:
Mortgages and other indebtedness	$	14,241,941		$	(187,630	)		$	14,054,311			$	3,526,859		$	17,581,170
Accounts payable, accrued expenses, intangibles, and deferred revenues	1,036,219			(8,699		)		1,027,520				212,941			1,240,461
Cash distributions and losses in partnerships and joint ventures, at equity	233,902			—				233,902				(233,902		)	—
Other liabilities, minority interest and accrued dividends	179,731			(26,605		)		153,126				56,654			209,780
Total liabilities	15,691,793			(222,934		)		15,468,859				3,562,552			19,031,411
LIMITED PARTNERS’ INTEREST IN THE OPERATING PARTNERSHIP	811,990			—				811,990				—			811,990
LIMITED PARTNERS’ PREFERRED INTEREST IN THE OPERATING PARTNERSHIP	395,843			—				395,843				—			395,843
STOCKHOLDERS’ EQUITY:
CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock):
All series of preferred stock, 100,000,000 shares authorized, 25,477,626 issued and outstanding, with a liquidation value of $1,073,881	1,072,252			—				1,072,252				—			1,072,252
Common stock, $.0001 par value, 400,000,000 shares authorized, 225,657,388 issued and outstanding	23			—				23				—			23
Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding	—			—				—				—			—
Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding	—			—				—				—			—
Capital in excess of par value	4,985,389			—				4,985,389				—			4,985,389
Accumulated deficit	(1,777,373		)	—				(1,777,373		)		—			(1,777,373		)
Accumulated other comprehensive income	17,377			—				17,377				—			17,377
Common stock held in treasury at cost, 4,379,245 shares	(193,676		)	—				(193,676		)		—			(193,676		)
Total stockholders’ equity	4,103,992			—				4,103,992				—			4,103,992
	$	21,003,618		$	(222,934	)		$	20,780,684			$	3,562,552		$	24,343,236

SIMON PROPERTY GROUP
Reconciliation of Net Income to NOI
As of September 30, 2006
(in thousands, except as noted)

Industry practice is to evaluate real estate properties on an unleveraged basis. Net Operating Income (“NOI”) is a standard industry performance measure which is defined as operating income plus depreciation and amortization, both calculated in accordance with accounting principles generally accepted in the United States (“GAAP”). We consider NOI to be a key measure of our operating performance that is not specifically defined by GAAP. We believe that NOI is helpful to investors because it is a widely recognized measure of the performance of REITs and provides a relevant basis for comparison among REITs. We also use NOI internally to measure the operating performance of our portfolio.

However, you should understand that NOI:

· does not represent cash flow from operations as defined by GAAP,

· should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance,

· is not an alternative to cash flows as a measure of liquidity, and

· is not indicative of cash flows from operating, investing and financing activities.

The Reconciliation of Net Income to NOI provides net income, which we believe is the most directly comparable GAAP financial measure, and reconciles the amounts to “Total NOI of the Simon Group Portfolio.” This schedule also provides the increase in NOI of regional malls and Premium Outlet Centers that are comparable properties for the quarter and nine months ended September 30, 2006.

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2006				2005				2006				2005
Reconciliation of NOI of consolidated Properties:
Net Income		$	112,995			$	92,883			$	336,848			$	341,565
Preferred distributions of the Operating Partnership		6,893				6,882				20,647				21,156
Limited partners’ interest in the Operating Partnership		24,962				19,860				74,470				77,541
Discontinued operations—Results of operations and (gain) loss on disposal or sale, net		(56		)		(10,300		)		(196		)		(133,495		)
Income tax expense of taxable REIT subsidiaries		2,536				3,796				7,395				11,216
Minority interest		3,154				3,174				7,512				8,734
Interest expense		206,195				201,150				611,010				594,136
Income from unconsolidated entities		(25,898		)		(18,662		)		(75,703		)		(51,045		)
(Gain) loss on sales of interest in unconsolidated entities		(9,457		)		55				(51,406		)		(12,552		)
Operating Income		321,324				298,838				930,577				857,256
Depreciation and amortization		211,390				203,022				632,200				617,814
NOI of consolidated Properties		$	532,714			$	501,860			$	1,562,777			$	1,475,070
Reconciliation of NOI of unconsolidated entities:
Net Income		$	85,078			$	74,433			$	268,514			$	323,241
Discontinued operations—Results of operations and (gain) loss on disposal or sale, net		200				1,025				(21,006		)		(97,472		)
Interest expense		113,400				103,438				331,028				298,162
Income from unconsolidated entities		(480		)		—				(719		)		1,892
Gain on sale of asset		—				—				(94		)		—
Operating Income		198,198				178,896				577,723				525,823
Depreciation and amortization		82,840				81,546				241,959				241,036
NOI of unconsolidated entities		$	281,038			$	260,442			$	819,682			$	766,859
Total consolidated and unconsolidated NOI from continuing operations		$	813,752			$	762,302			$	2,382,459			$	2,241,929
Adjustments to NOI:
NOI of discontinued consolidated and unconsolidated Properties		185				7,681				1,526				26,933
Total NOI of the Simon Group Portfolio		$	813,937			$	769,983			$	2,383,985			$	2,268,862
Increase in NOI from prior period		5.7		%		19.6		%		5.1		%		19.7		%
Less: Joint venture partner’s share of NOI		166,329				156,842				487,434				462,970
Simon Group’s Share of NOI		$	647,608			$	613,141			$	1,896,551			$	1,805,892
Increase in Simon Group’s Share of NOI from prior period		5.6		%		24.6		%		5.0		%		26.1		%
NOI of Regional Malls that are Comparable Properties(1)		$	617,470			$	594,262			$	1,828,435			$	1,753,219
Increase in NOI of Regional Malls that are Comparable Properties(1)		3.9		%						4.3		%
NOI of Premium Outlet Centers that are Comparable Properties(1)		$	89,880			$	83,638			$	244,904			$	233,414
Increase in NOI of Premium Outlet Centers that are Comparable Properties(1)		7.5		%						4.9		%

(1) Properties that were owned in both of the periods under comparison are referred to as comparable properties.

SIMON PROPERTY GROUP
NOI Composition(1)
For the Nine Months Ended September 30, 2006

U.S. Portfolio NOI by Geographic
Diversification(2)

NOI by Asset Type(3)

(1) Based on Total NOI of the Simon Group portfolio.

(2) U.S. regions:

Northeast—PA, NY, VT, NH, ME, MA, NJ, CT and RI		West North Central—ND, SD, NE, KS, MN, IA and MO
Mideast—KY, WV, MD, DE, VA, NC and SC		East North Central—WI, MI, OH, IN and IL
Southeast—TN, MS, AL, GA, FL and Puerto Rico		Mountain—NV, AZ, NM, UT, CO, ID, MT and WY
Southwest—TX, OK, LA and AR		Pacific—CA, OR, WA and HI

(3) International includes five Premium Outlet centers in Japan.

SIMON PROPERTY GROUP
Analysis of Other Income and Other Expense
As of September 30, 2006
(In thousands)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2006		2005		2006		2005
*Consolidated Properties*
*Other Income*
Interest Income	$	6,716	$	4,820	$	19,046	$	13,793
Lease Settlement Income	1,674		938		13,826		6,969
Gains on Land Sales	6,486		428		25,714		16,256
Simon Brand Ventures/ Simon Business Network Revenues(1)	16,454		25,099		49,844		57,977
Other	10,828		11,609		27,465		23,474
Totals	$	42,158	$	42,894	$	135,895	$	118,469
*Other Expense*
Ground Rent	$	7,044	$	6,820	$	21,557	$	19,296
Professional Fees	5,348		3,307		9,760		8,285
Simon Brand Ventures/Simon Business Network Expenses	709		703		2,162		2,025
Other	2,163		1,620		7,013		4,769
Totals	$	15,264	$	12,450	$	40,492	$	34,375

(1) Additional Simon Brand Ventures and Simon Business Network revenues are recorded in minimum rent.

SIMON PROPERTY GROUP
U.S. Portfolio GLA
As of September 30, 2006

		Total	% of
Type of Property	GLA-Sq. Ft.	Owned GLA	Owned GLA
Regional Malls
Anchor	100,207,443	27,983,955		23.6	%
Specialty Store	58,857,333	58,648,366		49.3	%
Freestanding	4,305,209	2,147,984		1.8	%
Subtotal	63,162,542	60,796,350		51.1	%
Regional Mall Total	163,369,985	88,780,305		74.7	%
Premium Outlet
Centers	13,521,592	13,521,592		11.4	%
Community/Lifestyle Centers
Anchor	13,235,547	8,008,834		6.7	%
Specialty Store	4,844,151	4,793,983		4.0	%
Freestanding	912,589	423,863		0.4	%
Community/Lifestyle Centers Total	18,992,287	13,226,680		11.1	%
Office Portion of Retail	1,791,434	1,791,434		1.5	%
Other(1)	1,591,675	1,591,675		1.3	%
Total U.S. Properties	199,266,973	118,911,686		100.0	%

(1) Other assets include 10 other properties that contribute 0.2% of Simon Group’s NOI.

SIMON PROPERTY GROUP

U.S. Regional Mall Operational Information

As of September 30, 2006

	As of or for the Nine Months Ended September 30,
	2006			2005
Total Number of Regional Malls	170			172
Total Regional Mall GLA (in millions of square feet; includes office portion of retail)	165.2			166.4
Occupancy(1)
Consolidated Assets	92.4		%	92.6		%
Unconsolidated Assets	92.8		%	92.6		%
Total Portfolio	92.5		%	92.6		%
Comparable sales per square foot(2)
Consolidated Assets	$	460		$	429
Unconsolidated Assets	$	500		$	476
Total Portfolio	$	474		$	445
Average rent per square foot(1)
Consolidated Assets	$	34.74		$	33.79
Unconsolidated Assets	$	36.11		$	35.26
Total Portfolio	$	35.23		$	34.30

	Mall &
	Freestanding			%
Average Base Rent Per Square Foot(1)	Stores			Change
9/30/06		$	35.23		2.7	%
9/30/05		34.30
12/31/05		34.49			3.0	%
12/31/04		33.50			3.8	%
12/31/03		32.26			5.1	%
12/31/02		30.70			4.8	%
12/31/01		29.28			3.4	%

Leasing Activity During the Period(1):

	Average Base Rent(3)						Amount of Change
	Lease			Store Closings/			(Referred to as
	Signings			Lease Expirations			“Leasing Spread”)
2006 (YTD)		$	42.20		$	36.14		$	6.06	16.8	%
2005		43.18			35.78			7.40		20.7	%
2004		39.33			33.59			5.74		17.1	%
2003		41.28			32.99			8.29		25.1	%
2002		40.35			32.58			7.77		23.8	%
2001		34.88			29.10			5.78		19.9	%

(1) Includes mall and freestanding stores

(2) Based upon the standard definition of sales for regional malls adopted by the International Council of Shopping Centers which includes only mall and freestanding stores less than 10,000 square feet.

(3) Represents the average base rent in effect during the period for those tenants who signed leases as compared to the average base rent in effect during the period for those tenants whose leases terminated or expired.

SIMON PROPERTY GROUP
U.S. Regional Mall Lease Expirations(1)
As of September 30, 2006

				Avg. Base Rent
	Number of		Square	per Square Foot
Year	Leases Expiring		Feet	at 9/30/06
Mall Stores & Freestanding
Month to Month Leases		629	1,735,871		$	32.00
2006 (10/1-12/31)		470	561,129		$	40.40
2007		2,352	5,856,666		$	35.02
2008		2,095	5,571,604		$	36.69
2009		1,933	5,469,366		$	34.79
2010		1,859	5,442,160		$	37.25
2011		1,931	4,960,201		$	35.30
2012		1,244	4,406,217		$	35.73
2013		1,146	3,689,152		$	39.71
2014		1,227	3,701,737		$	40.89
2015		1,214	4,012,672		$	41.46
2016		1,157	3,665,246		$	38.56
2017 and Thereafter		682	3,973,025		$	29.22
Specialty Leasing Agreements w/ terms in excess of 12 months		1,094	3,032,589		$	13.47
Anchor Tenants
Month to Month Leases		1	43,746		$	2.58
2006 (10/1-12/31)		1	105,450		$	6.60
2007		11	1,032,239		$	2.62
2008		25	2,873,752		$	3.78
2009		31	3,279,500		$	3.40
2010		35	4,092,491		$	2.83
2011		20	2,217,206		$	3.97
2012		21	2,448,475		$	4.22
2013		10	1,498,525		$	6.79
2014		13	1,207,089		$	7.58
2015		11	1,007,256		$	6.82
2016		10	1,075,834		$	6.53
2017 and Thereafter		38	4,292,252		$	5.14

(1) Does not consider the impact of options to renew that may be contained in leases.

SIMON PROPERTY GROUP
U.S. Regional Mall Top Tenants
As of September 30, 2006

Top 10 In-Line Retail Tenants (sorted by percentage of total Simon Group base minimum rent)

					Percent of			Percent of
	Number		Square		Total			Total Simon
	of		Feet		Simon Group			Group Base
Tenant	Stores		(000’s)		Sq. Ft.			Min. Rent
Limited		510		3,268		1.6	%		3.9	%
Gap		326		3,538		1.8	%		2.7	%
Foot Locker		431		1,735		0.9	%		2.1	%
Abercrombie & Fitch Co.		186		1,331		0.7	%		1.6	%
Zale Corporation		390		443		0.2	%		1.6	%
Luxottica Group S.P.A		493		873		0.4	%		1.5	%
Sterling Jewelers, Inc.		205		296		0.1	%		1.0	%
Children’s Place Retail Stores		185		819		0.4	%		1.0	%
American Eagle Outfitters		132		739		0.4	%		0.9	%
Genesco, Inc.		335		430		0.2	%		0.9	%

Top 10 Anchors (sorted by percentage of total Simon Group square footage)(1)

					Percent of			Percent of
	Number		Square		Total			Total Simon
	of		Feet		Simon Group			Group Base
Tenant	Stores		(000’s)		Sq. Ft.			Min. Rent
Federated Department Stores		167		29,365		14.7	%		0.6	%
Sears Roebuck & Co.		128		19,598		9.8	%		0.4	%
J.C. Penney Co., Inc.		117		17,012		8.5	%		0.9	%
Dillard’s Dept. Stores		80		12,093		6.1	%		0.1	%
Nordstrom, Inc.		21		3,722		1.9	%		0.0	%
Saks Incorporated		20		2,300		1.2	%		0.7	%
Belk, Inc.		18		2,214		1.1	%		0.1	%
The Bon-Ton Stores, Inc.		21		2,058		1.0	%		0.2	%
Target Corporation		13		1,624		0.8	%		0.0	%
The Neiman Marcus Group, Inc.		9		1,133		0.6	%		0.1	%

(1) Includes space leased and owned by the anchor.

SIMON PROPERTY GROUP
U.S. Regional Mall Anchor/Big Box Openings
2006-2010

Property Name

Location

New Tenant

Former Tenant

Openings through September 30, 2006

Cielo Vista Mall

El Paso, TX

Cinemark Theater

N/A

College Mall

Bloomington, IN

Bed Bath & Beyond

Target (relocated)

Copley Place

Boston, MA

Barneys New York

Lowes Theatre

Crossroads Mall

Omaha, NE

Target

Younkers

Firewheel Town Center

Garland, TX

Cost Plus World Market

N/A

Galleria, The

Houston, TX

Kona Grill

Lord & Taylor

Lehigh Valley Mall

Whitehall, PA

Boscov’s

Strawbridge’s

Liberty Tree Mall

Danvers, MA

K&G Menswear

N/A

Mall at The Source, The

Westbury, NY

Golf Galaxy

N/A

Mall of Georgia

Mill Creek, GA

Belk

Lord & Taylor

Melbourne Square

Melbourne, FL

Dick’s Sporting Goods

Belk

Circuit City

Belk

Menlo Park Mall

Edison, NJ

Steve & Barry’s

N/A

Muncie Mall

Muncie, IN

Books-A-Million

N/A

Penn Square

Oklahoma City, OK

Cheesecake Factory

N/A

South Hills Village

Pittsburgh, PA

Boscov’s

Kaufmann’s

SouthPark

Charlotte, NC

Neiman Marcus

N/A

Town Center at Aurora

Aurora, CO

Dillard’s

Foley’s (relocated)

Town Center at Boca Raton

Boca Raton, FL

Grand Lux

N/A

Valle Vista Mall

Harlingen, TX

Steve & Barry’s

N/A

Openings Projected for the Remainder of 2006

Fashion Valley Mall

San Diego, CA

Bloomingdale’s

Robinsons-May

Galleria, The

Houston, TX

Borders, Del Frisco
& Oceanaire

Lord & Taylor

Mall at Chestnut Hill

Chestnut Hill, MA

Bloomingdale’s

Filene’s

Montgomery Mall

Montgomeryville, PA

Boscov’s

Strawbridge’s

Oxford Valley Mall

Langhorne, PA

Boscov’s

Strawbridge’s

Richmond Town Square

Richmond Heights (Cleveland), OH

Steve & Barry’s

N/A

Ross Park Mall

Pittsburgh, PA

Cheesecake Factory

N/A

Smith Haven Mall

Lake Grove, NY

Cheesecake Factory

Sterns

Washington Square

Indianapolis, IN

Steve & Barry’s

N/A

SIMON PROPERTY GROUP
U.S. Regional Mall Anchor/Big Box Openings
2006-2010

Property Name

Location

New Tenant

Former Tenant

Openings Projected in 2007

Apple Blossom Mall

Winchester, VA

Best Buy
Dick’s Sporting Goods

N/A

Avenues, The

Jacksonville, FL

Belk

Parisian

Boynton Beach Mall

Boynton Beach, FL

Muvico Theater

Macy’s

Burlington Mall

Burlington, MA

Crate & Barrel

N/A

Castleton Square

Indianapolis, IN

AMC Theatres

L.S. Ayres

Borders

L.S. Ayres

Cordova Mall

Pensacola, FL

Belk

Parisian

Eastland Mall

Evansville, IN

Dillard’s

L.S. Ayres

Firewheel Town Center

Garland, TX

Ethan Allen

N/A

Greenwood Park Mall

Indianapolis, IN

Barnes & Noble and
small shops

L.S. Ayres

Gwinnett Place

Duluth, GA

Belk

Parisian

Lake Square Mall

Leesburg, FL

Best Buy

N/A

Lakeline Mall

Austin, TX

Dillard’s

Mervyn’s

Lehigh Valley Mall

Whitehall, PA

Barnes & Noble

N/A

Bonefish Grill

N/A

Bravo

N/A

Lenox Square

Atlanta, GA

Neiman Marcus expansion
and small shop addition

N/A

North East Mall

Hurst, TX

Dick’s Sporting Goods

Saks Fifth Avenue

Northgate Mall

Seattle, WA

Barnes & Noble

N/A

Orange Park Mall

Jacksonville, FL

Dick’s Sporting Goods

N/A

Phipps Plaza

Atlanta, GA

Belk

Parisian

Plaza Carolina

San Juan, PR

Office Depot

Casa Febus

Smith Haven Mall

Lake Grove, NY

California Pizza Kitchen

Stern’s

Barnes & Noble

Stern’s

Dick’s Sporting Goods

Stern’s

Macy’s Furniture

N/A

SIMON PROPERTY GROUP
U.S. Regional Mall Anchor/Big Box Openings
2006-2010

Property Name

Location

New Tenant

Former Tenant

Openings Projected in 2007

South Shore Plaza

Braintree, MA

Cheesecake Factory

N/A

Springfield Mall

Springfield, PA

Target

Macy’s

Square One Mall

Saugus, MA

Dick’s Sporting Goods

N/A

Town Center at Boca Raton

Boca Raton, FL

Crate & Barrel and
small shop addition

N/A

Town Center at Cobb

Kennesaw, GA

Belk

Parisian

West Town Mall

Knoxville, TN

Belk

Parisian

Westminster Mall

Westminster, CA

Target

Macy’s

Openings Projected in 2008

Anderson Mall

Anderson, SC

Dillard’s

Belk Mens

Aventura Mall

Miami Beach, FL

Nordstrom

Lord & Taylor

Burlington Mall

Burlington (Boston), MA

Nordstrom

Filene’s

Livingston Mall

Livingston, NJ

Barnes & Noble

N/A

Ross Park Mall

Pittsburgh, PA

Nordstrom

Macy’s

Tacoma Mall

Seattle, WA

Nordstrom (relocated)

Mervyn’s

Openings Projected in 2009

South Shore Plaza

Braintree (Boston), MA

Nordstrom

Macy’s

Openings Projected in 2010

Northshore Mall

Peabody (Boston), MA

Nordstrom

Macy’s

Quaker Bridge Mall

Lawrenceville, NJ

Neiman Marcus

N/A

Nordstrom

N/A

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
1.	McCain Mall			AR	N. Little Rock		100.0%		554,156		221,721		775,877
2.	University Mall			AR	Little Rock		100.0%		364,992		153,538		518,530
3.	Brea Mall			CA	Brea (Orange County)		100.0%		874,802		443,789		1,318,591
4.	Coddingtown Mall			CA	Santa Rosa		50.0%		547,090		309,859		856,949
5.	Fashion Valley Mall			CA	San Diego		50.0%		1,053,305		654,783		1,708,088
6.	Laguna Hills Mall			CA	Laguna Hills (Orange County)		100.0%		536,500		329,245		865,745
7.	Santa Rosa Plaza			CA	Santa Rosa		100.0%		428,258		270,619		698,877
8.	Shops at Mission Viejo, The			CA	Mission Viejo (Orange County)		100.0%		677,215		472,561		1,149,776
9.	Stanford Shopping Center			CA	Palo Alto (San Francisco)		100.0%		849,153		528,730	(6)	1,377,883
10.	Westminster Mall			CA	Westminster (Orange County)		100.0%		716,939		496,104		1,213,043
11.	Mesa Mall (1)			CO	Grand Junction		50.0%		441,208		443,015		884,223
12.	Town Center at Aurora			CO	Aurora (Denver)		100.0%		676,637		401,732		1,078,369
13.	Crystal Mall			CT	Waterford (New London-Norwich)		74.6%		442,311		351,787		794,098
14.	Aventura Mall (1)			FL	Miami Beach		33.3%		1,257,638		662,493		1,920,131
15.	Avenues, The			FL	Jacksonville		25.0%	(2)	754,956		362,373		1,117,329
16.	Boynton Beach Mall			FL	Boynton Beach (W. Palm Beach)		100.0%		714,210		300,122		1,014,332
17.	Coral Square			FL	Coral Springs (Miami- Ft. Lauderdale)		97.2%		648,144		296,814		944,958
18.	Cordova Mall			FL	Pensacola		100.0%		395,875		464,916		860,791
19.	Crystal River Mall			FL	Crystal River		100.0%		302,495		121,844		424,339
20.	Dadeland Mall			FL	N. Miami Beach		50.0%		1,132,072		335,004		1,467,076
21.	DeSoto Square			FL	Bradenton (Sarasota-Bradenton)		100.0%		435,467		244,729		680,196
22.	Edison Mall			FL	Fort Myers		100.0%		742,667		310,505		1,053,172
23.	Florida Mall, The			FL	Orlando		50.0%		1,232,416		614,996		1,847,412
24.	Gulf View Square			FL	Port Richey (Tampa- St. Pete)		100.0%		461,852		292,028		753,880
25.	Indian River Mall			FL	Vero Beach		50.0%		445,552		302,959		748,511
26.	Lake Square Mall			FL	Leesburg (Orlando)		50.0%		296,037		264,983		561,020
27.	Melbourne Square			FL	Melbourne		100.0%		416,167		294,223		710,390
28.	Miami International Mall			FL	South Miami		47.8%		778,784		294,757		1,073,541
29.	Orange Park Mall			FL	Orange Park (Jacksonville)		100.0%		528,551		388,833		917,384
30.	Paddock Mall			FL	Ocala		100.0%		387,378		167,717		555,095
31.	Palm Beach Mall			FL	West Palm Beach		100.0%		749,288		335,057		1,084,345
32.	Port Charlotte Town Center			FL	Port Charlotte (Punta Gorda)		80.0%	(3)	458,251		324,044		782,295
33.	Seminole Towne Center			FL	Sanford (Orlando)		45.0%	(2)	768,798		368,444		1,137,242
34.	Shops at Sunset Place, The			FL	Miami		37.5%	(2)	0		510,056		510,056
35.	St. Johns Town Center			FL	Jacksonville		50.0%		653,291		379,212		1,032,503
36.	Town Center at Boca Raton			FL	Boca Raton (W. Palm Beach)		100.0%		1,085,312		493,558		1,578,870
37.	Treasure Coast Square			FL	Jensen Beach (Ft. Pierce)		100.0%		511,372		349,270		860,642
38.	Tyrone Square			FL	St. Petersburg (Tampa-St. Pete)		100.0%		748,269		372,091		1,120,360
39.	University Mall			FL	Pensacola		100.0%		478,449		230,952		709,401
40.	Gwinnett Place			GA	Duluth (Atlanta)		50.0%		843,609		434,388		1,277,997
41.	Lenox Square			GA	Atlanta		100.0%		821,356		628,420	(6)	1,449,776
42.	Mall of Georgia			GA	Mill Creek (Atlanta)		50.0%		1,069,590		716,341		1,785,931

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

43.	Northlake Mall	GA	Atlanta	100.0%		665,745	296,773			962,518
44.	Phipps Plaza	GA	Atlanta	100.0%		472,385	347,202			819,587
45.	Town Center at Cobb	GA	Kennesaw (Atlanta)	50.0%		866,381	402,272			1,268,653
46.	Lindale Mall (1)	IA	Cedar Rapids	50.0%		305,563	388,024			693,587
47.	NorthPark Mall	IA	Davenport	50.0%		650,456	423,484			1,073,940
48.	Southern Hills Mall (1)	IA	Sioux City	50.0%		372,937	431,709			804,646
49.	SouthRidge Mall (1)	IA	Des Moines	50.0%		388,752	523,443			912,195
50.	Alton Square	IL	Alton (St. Louis)	100.0%		426,315	211,655			637,970
51.	Lincolnwood Town Center	IL	Lincolnwood (Chicago)	100.0%		220,830	200,963			421,793
52.	Northfield Square Mall	IL	Bourbonnais (Chicago)	31.6%	(3)	310,994	246,572			557,566
53.	Northwoods Mall	IL	Peoria	100.0%		472,969	221,312			694,281
54.	Orland Square	IL	Orland Park (Chicago)	100.0%		773,295	437,474			1,210,769
55.	River Oaks Center	IL	Calumet City (Chicago)	100.0%		834,588	533,914		(6)	1,368,502
56.	SouthPark Mall	IL	Moline (Davenport - Moline)	50.0%		578,056	443,924			1,021,980
57.	White Oaks Mall	IL	Springfield	77.5%		556,831	379,688			936,519
58.	Castleton Square	IN	Indianapolis	100.0%		908,481	352,541			1,261,022
59.	Circle Centre	IN	Indianapolis	14.7%		350,000	435,963		(6)	785,963
60.	College Mall	IN	Bloomington	100.0%		356,887	286,208			643,095
61.	Eastland Mall	IN	Evansville	50.0%		489,144	375,407			864,551
62.	Fashion Mall at Keystone	IN	Indianapolis	100.0%		249,721	433,601		(6)	683,322
63.	Greenwood Park Mall	IN	Greenwood (Indianapolis)	100.0%		754,928	409,117			1,164,045
64.	Lafayette Square	IN	Indianapolis	100.0%		937,223	269,504			1,206,727
65.	Markland Mall	IN	Kokomo	100.0%		273,094	141,692			414,786
66.	Muncie Mall	IN	Muncie	100.0%		435,756	205,844			641,600
67.	Tippecanoe Mall	IN	Lafayette	100.0%		537,790	322,814			860,604
68.	University Park Mall	IN	Mishawaka (South Bend)	60.0%		499,876	319,880			819,756
69.	Washington Square	IN	Indianapolis	100.0%		616,109	351,281			967,390
70.	Towne East Square	KS	Wichita	100.0%		779,490	358,854			1,138,344
71.	Towne West Square	KS	Wichita	100.0%		619,269	332,418			951,687
72.	West Ridge Mall	KS	Topeka	100.0%		716,811	300,832			1,017,643
73.	Prien Lake Mall	LA	Lake Charles	100.0%		644,124	177,570			821,694
74.	Arsenal Mall	MA	Watertown (Boston)	100.0%		191,395	310,130	(6)		501,525
75.	Atrium Mall	MA	Chestnut Hill (Boston)	49.1%		0	205,751			205,751
76.	Auburn Mall	MA	Auburn (Boston)	49.1%		417,620	174,350			591,970
77.	Burlington Mall	MA	Burlington (Boston)	100.0%		650,000	432,170			1,082,170
78.	Cape Cod Mall	MA	Hyannis (Barnstable - Yarmouth)	49.1%		420,199	303,599			723,798
79.	Copley Place	MA	Boston	98.1%		104,332	1,128,372	(6)		1,232,704
80.	Emerald Square	MA	North Attleboro (Providence - Fall River)	49.1%		647,372	375,125			1,022,497
81.	Greendale Mall	MA	Worcester (Boston)	49.1%		132,634	298,732	(6)		431,366
82.	Liberty Tree Mall	MA	Danvers (Boston)	49.1%		498,000	359,251			857,251
83.	Mall at Chestnut Hill	MA	Newton (Boston)	47.2%		297,253	180,758			478,011
84.	Northshore Mall	MA	Peabody (Boston)	49.1%		677,433	688,876			1,366,309
85.	Solomon Pond Mall	MA	Marlborough (Boston)	49.1%		538,843	371,326			910,169
86.	South Shore Plaza	MA	Braintree (Boston)	100.0%		547,287	613,798			1,161,085
87.	Square One Mall	MA	Saugus (Boston)	49.1%		540,101	324,669			864,770
88.	Bowie Town Center	MD	Bowie (Washington, D.C.)	100.0%		355,557	328,550			684,107
89.	St. Charles Towne Center	MD	Waldorf (Washington, D.C.)	100.0%		631,602	350,574			982,176

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

90.	Bangor Mall	ME	Bangor	66.4%	(5)	416,582	237,467		654,049
91.	Maplewood Mall	MN	Minneapolis	100.0%		588,822	341,442		930,264
92.	Miller Hill Mall	MN	Duluth	100.0%		429,508	379,891		809,399
93.	Battlefield Mall	MO	Springfield	100.0%		770,111	433,482		1,203,593
94.	Independence Center	MO	Independence (Kansas City)	100.0%		499,284	525,885		1,025,169
95.	SouthPark	NC	Charlotte	100.0%		1,044,742	495,839		1,540,581
96.	Crossroads Mall	NE	Omaha	100.0%		522,119	232,775		754,894
97.	Mall at Rockingham Park, The	NH	Salem (Boston)	24.6%		638,111	382,062		1,020,173
98.	Mall of New Hampshire	NH	Manchester (Boston)	49.1%		444,889	363,173		808,062
99.	Pheasant Lane Mall	NH	Nashua (Boston)		(4)	675,759	313,606		989,365
100.	Brunswick Square	NJ	East Brunswick (New York)	100.0%		467,626	299,692		767,318
101.	Livingston Mall	NJ	Livingston (New York)	100.0%		616,128	363,871		979,999
102.	Menlo Park Mall	NJ	Edison (New York)	100.0%		527,591	756,357	(6)	1,283,948
103.	Ocean County Mall	NJ	Toms River (New York)	100.0%		616,443	274,853		891,296
104.	Quaker Bridge Mall	NJ	Lawrenceville	38.0%	(5)	686,760	412,636		1,099,396
105.	Rockaway Townsquare	NJ	Rockaway (New York)	100.0%		786,626	462,054		1,248,680
106.	Cottonwood Mall	NM	Albuquerque	100.0%		631,556	410,126		1,041,682
107.	Forum Shops at Caesars, The	NV	Las Vegas	100.0%		0	635,056		635,056
108.	Chautauqua Mall	NY	Lakewood (Jamestown)	100.0%		213,320	218,847		432,167
109.	Jefferson Valley Mall	NY	Yorktown Heights (New York)	100.0%		310,095	278,290		588,385
110.	Mall at The Source, The	NY	Westbury (New York)	25.5%	(2)	210,798	515,250		726,048
111.	Nanuet Mall	NY	Nanuet (New York)	100.0%		583,711	331,744		915,455
112.	Roosevelt Field	NY	Garden City (New York)	100.0%		1,430,425	778,690	(6)	2,209,115
113.	Smith Haven Mall	NY	Lake Grove (New York)	25.0%		666,283	404,269		1,070,552
114.	Walt Whitman Mall	NY	Huntington Station (New York)	100.0%		742,214	293,986		1,036,200
115.	Westchester, The	NY	White Plains (New York)	40.0%		349,393	478,254	(6)	827,647
116.	Great Lakes Mall	OH	Mentor (Cleveland)	100.0%		879,300	378,564		1,257,864
117.	Lima Mall	OH	Lima	100.0%		541,861	203,970		745,831
118.	Richmond Town Square	OH	Richmond Heights (Cleveland)	100.0%		685,251	331,663		1,016,914
119.	Southern Park Mall	OH	Boardman (Youngstown)	100.0%		811,858	383,510		1,195,368
120.	Summit Mall	OH	Akron	100.0%		432,936	331,080		764,016
121.	Upper Valley Mall	OH	Springfield (Dayton-Springfield)	100.0%		479,418	262,978		742,396
122.	Penn Square Mall	OK	Oklahoma City	94.5%		588,137	462,407		1,050,544
123.	Woodland Hills Mall	OK	Tulsa	94.5%		706,159	382,747		1,088,906
124.	Century III Mall	PA	West Mifflin (Pittsburgh)	100.0%		831,439	459,143	(6)	1,290,582
125.	Granite Run Mall	PA	Media (Philadelphia)	50.0%		500,809	545,721		1,046,530
126.	King of Prussia Mall	PA	King of Prussia (Philadelphia)	12.4%	(5)	1,545,812	1,064,816	(6)	2,610,628
127.	Lehigh Valley Mall	PA	Whitehall (Allentown-Bethlehem)	37.6%	(5)	564,353	482,766	(6)	1,047,119
128.	Montgomery Mall	PA	Montgomeryville (Philadelphia)	53.5%	(5)	684,855	435,243		1,120,098

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

									Gross Leasable Area
		Property Name	State		City (Metropolitan area)	Legal Ownership			Anchor	Mall & Freestanding			Total
129.	Oxford Valley Mall			PA	Langhorne (Philadelphia)		63.2%	(5)	762,558		559,139	(6)	1,321,697
130.	Ross Park Mall			PA	Pittsburgh		100.0%		621,775		397,658		1,019,433
131.	South Hills Village			PA	Pittsburgh		100.0%		655,987		486,527		1,142,514
132.	Springfield Mall (1)			PA	Springfield (Philadelphia)		38.0%	(5)	367,176		221,489		588,665
133.	Plaza Carolina			PR	Carolina (San Juan)		100.0%		504,796		609,341	(6)	1,114,137
134.	Anderson Mall			SC	Anderson (Greenville)		100.0%		404,394		230,078		634,472
135.	Haywood Mall			SC	Greenville		100.0%		902,400		328,159		1,230,559
136.	Empire Mall (1)			SD	Sioux Falls		50.0%		497,341		547,673		1,045,014
137.	Rushmore Mall (1)			SD	Rapid City		50.0%		470,660		362,653		833,313
138.	Knoxville Center			TN	Knoxville		100.0%		597,028		384,065		981,093
139.	Oak Court Mall			TN	Memphis		100.0%		532,817		314,254	(6)	847,071
140.	Raleigh Springs Mall			TN	Memphis		100.0%		691,230		226,100		917,330
141.	West Town Mall			TN	Knoxville		50.0%		878,311		451,467		1,329,778
142.	Wolfchase Galleria			TN	Memphis		94.5%		761,648		505,461		1,267,109
143.	Barton Creek Square			TX	Austin		100.0%		922,266		508,229		1,430,495
144.	Broadway Square			TX	Tyler		100.0%		427,730		200,718		628,448
145.	Cielo Vista Mall			TX	El Paso		100.0%		793,716		443,492		1,237,208
146.	Firewheel Town Center			TX	Garland		100.0%		298,857		516,415	(6)	815,272
147.	Galleria, The			TX	Houston		31.5%		1,164,982		1,186,196		2,351,178
148.	Highland Mall (1)			TX	Austin		50.0%		732,000		359,108		1,091,108
149.	Ingram Park Mall			TX	San Antonio		100.0%		751,704		375,428		1,127,132
150.	Irving Mall			TX	Irving (Dallas-Ft. Worth)		100.0%		637,415		406,712		1,044,127
151.	La Plaza Mall			TX	McAllen		100.0%		776,397		427,124		1,203,521
152.	Lakeline Mall			TX	Austin		100.0%		745,179		355,643		1,100,822
153.	Longview Mall			TX	Longview		100.0%		402,843		209,502		612,345
154.	Midland Park Mall			TX	Midland		100.0%		339,113		279,505		618,618
155.	North East Mall			TX	Hurst (Dallas-Ft. Worth)		100.0%		1,194,589		452,666		1,647,255
156.	Richardson Square Mall			TX	Richardson (Dallas-Ft. Worth)		100.0%		460,055		284,111		744,166
157.	Rolling Oaks Mall			TX	San Antonio		100.0%		596,308		286,090		882,398
158.	Sunland Park Mall			TX	El Paso		100.0%		575,837		342,299		918,136
159.	Valle Vista Mall			TX	Harlingen		100.0%		389,781		265,886		655,667
160.	Apple Blossom Mall			VA	Winchester		49.1%		229,011		213,619		442,630
161.	Charlottesville Fashion Square			VA	Charlottesville		100.0%		381,153		190,533		571,686
162.	Chesapeake Square			VA	Chesapeake (Norfolk- VA Beach)		75.0%	(3)	534,760		271,842		806,602
163.	Fashion Centre at Pentagon City, The			VA	Arlington (Washington, DC)		42.5%		472,729		517,384	(6)	990,113
164.	Valley Mall			VA	Harrisonburg		50.0%		315,078		190,648		505,726
165.	Virginia Center Commons			VA	Glen Allen (Richmond)		100.0%		506,639		281,117		787,756
166.	Columbia Center			WA	Kennewick		100.0%		408,052		334,778		742,830
167.	Northgate Mall			WA	Seattle		100.0%		688,391		291,263		979,654
168.	Tacoma Mall			WA	Tacoma		100.0%		924,045		406,946		1,330,991
169.	Bay Park Square			WI	Green Bay		100.0%		447,508		268,004		715,512
170.	Forest Mall			WI	Fond Du Lac		100.0%		327,260		173,871		501,131
	*Total Regional Mall GLA*								100,207,443		64,953,976		165,161,419

SIMON PROPERTY GROUP
U.S. Regional Mall Property Listing

Gross Leasable Area

Property Name

State

City (Metropolitan area)

Legal
Ownership

Anchor

Mall &
Freestanding

Total

FOOTNOTES:

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

(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) The Operating Partnership receives substantially all the economic benefit of the Property due to a preference, advance, or other partnership arrangement.

(4) The Operating Partnership owns a mortgage note that encumbers Pheasant Lane Mall that entitles it to 100% of the economics of this Property.

(5) The Operating Partnership’s indirect ownership interest is through an approximately 76% ownership interest in Kravco Simon Investments or an affiliate of Kravco Simon Investments.

(6) Mall & Freestanding GLA includes office space as follows:

Arsenal Mall—105,807 sq. ft.
Century III Mall—35,929 sq. ft.
Circle Centre Mall—9,123 sq. ft.
Copley Place—857,621 sq. ft.
Fashion Centre at Pentagon City, The—169,089 sq. ft.
Fashion Mall at Keystone, The—10,927 sq. ft.
Firewheel Town Center—13,664 sq. ft.
Greendale Mall—119,860 sq. ft.
King of Prussia Mall—13,627 sq. ft.
Lehigh Valley Mall—11,754 sq. ft.
Lenox Square—2,674 sq. ft.
Menlo Park Mall—50,615 sq. ft.
Oak Court Mall—126,319 sq. ft.
Oxford Valley Mall—109,832 sq. ft.
Plaza Carolina—28,104 sq. ft.
River Oaks Center—118,311 sq. ft.
Roosevelt Field—1,610 sq. ft.
Stanford Shopping Center—5,748 sq. ft.
The Westchester—820 sq. ft.

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Operational Information
As of September 30, 2006

	As of or for the
	Nine Months Ended
	September 30,
	2006			2005
Total Number of U.S. Premium Outlet Centers	35				33
Total U.S. Premium Outlet Centers GLA (in millions of square feet)	13.5				12.4
Occupancy(1)	99.3		%		99.6		%
Comparable sales per square foot(1)	$	462			$	436
Average base rent per square foot(1)	$	24.05			$	22.99

	Total		%
Average Base Rent Per Square Foot(1)	Center		Change
9/30/06	$	24.05		4.6	%
9/30/05	22.99
12/31/05	23.16			6.0	%
12/31/04	21.85			7.3	%
12/31/03	20.36			n/a

Leasing Activity During the Period(1):

	Average Base Rent(2)						Amount of Change
	Lease			Store Closings/			(Referred to as
	Signings			Lease Expirations			“Leasing Spread”)
2006 (YTD)		$	28.89		$	22.51	$	6.38	28.3%
2005		26.48			21.91		4.57		20.9%
2004		22.78			20.02		2.76		13.8%
2003		25.41			22.62		2.79		12.3%

(1) For all owned gross leasable area.

(2) Represents the average base rent for tenants who signed leases compared to the average base rent in effect for tenants whose leases terminated or expired in the same space.

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Lease Expirations(1)
As of September 30, 2006

				Weighted
				Avg. Base Rent
	Number of		Square	per Square Foot
Year	Leases Expiring		Feet	at 9/30/06
2006 (10/1-12/31)		67	183,526		$	20.99
2007		345	1,253,784		$	20.93
2008		416	1,663,706		$	24.35
2009		410	1,706,718		$	22.39
2010		515	2,280,154		$	23.72
2011		428	1,870,544		$	23.26
2012		270	1,118,122		$	25.63
2013		228	1,010,937		$	25.70
2014		203	665,300		$	29.48
2015		195	658,571		$	30.98
2016 and Thereafter		287	1,014,071		$	30.02

(1) Does not consider the impact of options to renew that may be contained in leases.

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Top Tenants
As of September 30, 2006

(Sorted by percentage of total Simon Group base minimum rent)

					Percent of			Percent of
	Number		Square		Total			Total Simon
	of		Feet		Simon Group			Group Base
Tenant	Stores		(000’s)		Sq. Ft.			Min. Rent
Phillips—Van Heusen Corporation		164		780		0.4	%		0.7	%
Jones Retail Corporation		151		510		0.3	%		0.5	%
Adidas Promotional Retail Operations, Inc.		52		427		0.2	%		0.4	%
The Gap, Inc.		67		605		0.3	%		0.4	%
Nike Retail Services, Inc.		46		438		0.2	%		0.3	%
The William Carter Company, Inc.		64		313		0.2	%		0.3	%
Brown Group Retail, Inc.		65		279		0.1	%		0.3	%
LCI Holdings, Inc.		54		396		0.2	%		0.3	%
VF Outlet		58		365		0.2	%		0.2	%
Tommy Hilfiger Retail Operations, Inc.		36		228		0.1	%		0.2	%

SIMON PROPERTY GROUP
U.S. Premium Outlet Centers Property Listing

									Total
									Gross
						Legal			Leasable
		Property Name	State		City (Metropolitan area)	Ownership			Area
1.	Camarillo Premium Outlets			CA	Camarillo (Los Angeles)		100.0	%	454,089
2.	Carlsbad Premium Outlets			CA	Carlsbad		100.0	%	287,936
3.	Desert Hills Premium Outlets			CA	Cabazon (Palm Springs-Los Angeles)		100.0	%	498,837
4.	Folsom Premium Outlets			CA	Folsom (Sacramento)		100.0	%	299,351
5.	Gilroy Premium Outlets			CA	Gilroy (San Jose)		100.0	%	577,305
6.	Napa Premium Outlets			CA	Napa (Napa Valley)		100.0	%	179,348
7.	Petaluma Village Premium Outlets			CA	Petaluma (San Francisco)		100.0	%	195,837
8.	Vacaville Premium Outlets			CA	Vacaville		100.0	%	444,252
9.	Clinton Crossing Premium Outlets			CT	Clinton (Hartford)		100.0	%	276,163
10.	Orlando Premium Outlets			FL	Orlando		100.0	%	435,695
11.	St. Augustine Premium Outlets			FL	St. Augustine (Jacksonsville)		100.0	%	328,489
12.	North Georgia Premium Outlets			GA	Dawsonville (Atlanta)		100.0	%	539,757
13.	Waikele Premium Outlets			HI	Waipahu (Honolulu)		100.0	%	209,846
14.	Chicago Premium Outlets			IL	Aurora (Chicago)		100.0	%	437,800
15.	Edinburgh Premium Outlets			IN	Edinburgh (Indianapolis)		100.0	%	377,717
16.	Lighthouse Place Premium Outlets			IN	Michigan City (Chicago)		100.0	%	456,466
17.	Wrentham Village Premium Outlets			MA	Wrentham (Boston)		100.0	%	615,713
18.	Kittery Premium Outlets			ME	Kittery (Boston)		100.0	%	150,491
19.	Albertville Premium Outlets			MN	Albertville (Minneapolis/St. Paul)		100.0	%	429,534
20.	Osage Beach Premium Outlets			MO	Osage Beach		100.0	%	391,381
21.	Carolina Premium Outlets			NC	Smithfield (Raleigh-Durham- Chapel Hill)		100.0	%	439,441
22.	Liberty Village Premium Outlets			NJ	Flemington (New York- Philadelphia)		100.0	%	173,067
23.	Jackson Premium Outlets			NJ	Jackson		100.0	%	285,775
24.	Las Vegas Outlet Center			NV	Las Vegas		100.0	%	477,002
25.	Las Vegas Premium Outlets			NV	Las Vegas		100.0	%	434,978
26.	Waterloo Premium Outlets			NY	Waterloo		100.0	%	417,519
27.	Woodbury Common Premium Outlets			NY	Central Valley (New York City)		100.0	%	844,432
28.	Aurora Farms Premium Outlets			OH	Aurora (Cleveland)		100.0	%	300,181
29.	Columbia Gorge Premium Outlets			OR	Troutdale (Portland-Vancouver)		100.0	%	163,815
30.	The Crossings Premium Outlets			PA	Tannersville		100.0	%	411,410
31.	Allen Premium Outlets			TX	Allen (Dallas)		100.0	%	412,792
32.	Round Rock Premium Outlets			TX	Round Rock (Austin)		100.0	%	431,632
33.	Leesburg Corner Premium Outlets			VA	Leesburg (Washington DC)		100.0	%	463,288
34.	Seattle Premium Outlets			WA	Seattle		100.0	%	402,668
35.	Johnson Creek Premium Outlets			WI	Johnson Creek		100.0	%	277,585
	Total U.S. Premium Outlet Centers GLA								13,521,592

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Operational Information
As of September 30, 2006

	As of or for the
	Nine Months Ended
	September 30,
	2006			2005
Total Number of Community/Lifestyle Centers	69			71
Total Community/Lifestyle Center GLA (in millions of square feet)	19.0			19.3
Occupancy (1)
Consolidated Assets	88.1		%	89.5		%
Unconsolidated Assets	96.6		%	95.5		%
Total Portfolio	90.7		%	91.3		%
Comparable sales per square foot(1)
Consolidated Assets	$	227		$	229
Unconsolidated Assets	$	205		$	203
Total Portfolio	$	220		$	221
Average rent per square foot(1)
Consolidated Assets	$	11.96		$	11.58
Unconsolidated Assets	$	11.12		$	10.49
Total Portfolio	$	11.69		$	11.23

Average Base Rent Per Square Foot(1)

	Total		%
	Center		Change
9/30/06	$	11.69		4.1	%
9/30/05	11.23
12/31/05	11.41			4.6	%
12/31/04	10.91			3.0	%
12/31/03	10.59			4.6	%
12/31/02	10.12			3.0	%
12/31/01	9.83			5.0	%

Leasing Activity During the Period(1):

	Average Base Rent(2)						Amount of Change
	Lease Signings			Store Closings/ Lease Expirations			(Referred to as “Leasing Spread”)
2006 (YTD)		$	14.71		$	10.34	$	4.37	42.3	%
2005		15.89			11.44		4.45		38.9	%
2004		12.01			11.16		0.85		7.6	%
2003		12.38			10.48		1.90		18.1	%
2002		10.19			8.39		1.80		21.5	%
2001		12.79			9.30		3.49		37.5	%

(1) For all owned gross leasable area.

(2) Represents the average base rent in effect during the period for those tenants who signed leases as compared to the average base rent in effect during the period for those tenants whose leases terminated or expired.

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Lease Expirations(1)
As of September 30, 2006

				Avg. Base Rent
	Number of		Square	per Square Foot
Year	Leases Expiring		Feet	at 9/30/06
Mall Stores & Freestanding
Month to Month Leases		29	75,920		$	15.26
2006 (10/1-12/31)		61	86,544		$	15.08
2007		159	562,333		$	14.08
2008		212	791,550		$	14.18
2009		170	567,928		$	14.50
2010		215	888,579		$	16.64
2011		167	664,172		$	16.18
2012		49	235,211		$	14.91
2013		18	109,222		$	14.09
2014		31	198,060		$	18.07
2015		56	299,094		$	19.18
2016		22	108,703		$	20.87
2017 and Thereafter		14	106,741		$	17.60
Specialty Leasing Agreements w/ terms in excess of 12 months		8	67,720		$	3.74
Anchor Tenants
Month to Month Leases		2	57,254		$	8.41
2006 (10/1-12/31)		2	35,833		$	5.91
2007		11	371,496		$	6.35
2008		16	415,757		$	9.95
2009		21	686,034		$	7.75
2010		23	714,729		$	12.33
2011		20	835,578		$	7.11
2012		9	347,561		$	8.71
2013		14	440,539		$	7.79
2014		11	438,088		$	9.32
2015		18	635,271		$	11.14
2016		18	644,114		$	9.48
2017 and Thereafter		36	1,809,175		$	9.87
Specialty Leasing Agreements w/ terms in excess of 12 months		2	56,549		$	2.19

(1) Does not consider the impact of options to renew that may be contained in leases.

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Top Tenants
As of September 30, 2006

(Sorted by percentage of total Simon Group square footage)(1)

					Percent of			Percent of
	Number		Square		Total			Total Simon
	of		Feet		Simon Group			Group Base
Tenant	Stores		(000’s)		Sq. Ft.			Min. Rent
Target Corporation		11		1,382		0.7	%		0.0	%
Wal-Mart Stores, Inc.		9		1,009		0.5	%		0.0	%
Kohl’s Department Stores, Inc.		10		913		0.5	%		0.2	%
Best Buy Company, Inc.		17		708		0.4	%		0.3	%
TJX Companies, Inc.		20		611		0.3	%		0.2	%
Burlington Coat Factory		7		496		0.2	%		0.1	%
Bed Bath & Beyond, Inc.		11		336		0.2	%		0.1	%
Office Max, Inc.		12		316		0.2	%		0.1	%
Dick’s Sporting Goods, Inc.		5		311		0.2	%		0.1	%
Kmart Corporation		3		298		0.1	%		0.1	%

(1) Includes space leased and owned by the anchor.

SIMON PROPERTY GROUP
U.S. Community/Lifestyle Centers Property Listing

									Gross Leasable Area
						Legal				Mall &
		Property Name	State		City (Metropolitan area)	Ownership			Anchor	Freestanding		Total
1.	Plaza at Buckland Hills, The			CT	Manchester		35.0	%(2)	252,179		82,348	334,527
2.	Gaitway Plaza			FL	Ocala		23.3	%(2)	123,027		85,713	208,740
3.	Highland Lakes Center			FL	Orlando		100.0	%	352,405		140,862	493,267
4.	Indian River Commons			FL	Vero Beach		50.0	%	233,358		27,510	260,868
5.	Royal Eagle Plaza			FL	Coral Springs		35.0	%(2)	124,479		77,624	202,103
	(Miami-Ft. Lauderale)
6.	Terrace at the Florida Mall			FL	Orlando		100.0	%	281,252		47,531	328,783
7.	Waterford Lakes Town Center			FL	Orlando		100.0	%	622,244		329,446	951,690
8.	West Town Corners			FL	Altamonte Springs		23.3	%(2)	263,782		121,477	385,259
9.	Westland Park Plaza			FL	Orange Park		23.3	%(2)	123,548		39,606	163,154
10.	Mall of Georgia Crossing			GA	Mill Creek (Atlanta)		100.0	%	341,503		99,109	440,612
11.	Bloomingdale Court			IL	Bloomingdale		100.0	%	467,513		162,836	630,349
12.	Countryside Plaza			IL	Countryside		100.0	%	308,489		95,268	403,757
13.	Crystal Court			IL	Crystal Lake		35.0	%(2)	201,993		79,737	281,730
14.	Forest Plaza			IL	Rockford		100.0	%	324,794		100,587	425,381
15.	Lake Plaza			IL	Waukegan		100.0	%	170,789		44,673	215,462
16.	Lake View Plaza			IL	Orland Park (Chicago)		100.0	%	261,856		109,396	371,252
17.	Lincoln Crossing			IL	O’Fallon		100.0	%	229,820		13,446	243,266
18.	Matteson Plaza			IL	Matteson		100.0	%	230,885		40,070	270,955
19.	North Ridge Plaza			IL	Joliet		100.0	%	190,323		114,747	305,070
20.	White Oaks Plaza			IL	Springfield		100.0	%	275,703		115,723	391,426
21.	Willow Knolls Court			IL	Peoria		35.0	%(2)	309,440		72,937	382,377
22.	Brightwood Plaza			IN	Indianapolis		100.0	%	0		38,493	38,493
23.	Clay Terrace			IN	Carmel (Indianapolis)		50.0	%	161,281		336,432	497,713
24.	Eastland Convenience Center			IN	Evansville		50.0	%	126,699		48,940	175,639
25.	Greenwood Plus			IN	Greenwood		100.0	%	134,141		21,178	155,319
26.	Griffith Park Plaza			IN	Griffith		100.0	%	175,595		88,455	264,050
27.	Keystone Shoppes			IN	Indianapolis		100.0	%	0		29,140	29,140
28.	Markland Plaza			IN	Kokomo		100.0	%	49,051		41,476	90,527
29.	Muncie Plaza			IN	Muncie		100.0	%	271,626		27,195	298,821
30.	New Castle Plaza			IN	New Castle		100.0	%	24,912		66,736	91,648
31.	Northwood Plaza			IN	Fort Wayne		100.0	%	136,404		71,841	208,245
32.	Teal Plaza			IN	Lafayette		100.0	%	98,337		2,750	101,087
33.	Tippecanoe Plaza			IN	Lafayette		100.0	%	85,811		4,711	90,522
34.	University Center			IN	Mishawaka		60.0	%	104,347		46,177	150,524
35.	Village Park Plaza			IN	Carmel (Indianapolis)		35.0	%(2)	414,593		130,173	544,766
36.	Washington Plaza			IN	Indianapolis		100.0	%	21,500		28,607	50,107
37.	West Ridge Plaza			KS	Topeka		100.0	%	182,161		59,226	241,387
38.	Park Plaza			KY	Hopkinsville		100.0	%	82,398		32,526	114,924
39.	St. Charles Towne Plaza			MD	Waldorf (Washington, D.C.)		100.0	%	286,081		117,906	403,987
40.	Regency Plaza			MO	St. Charles		100.0	%	210,627		76,846	287,473
41.	Ridgewood Court			MS	Jackson		35.0	%(2)	185,939		54,732	240,671
42.	Dare Centre			NC	Kill Devil Hills		100.0	%	127,172		41,391	168,563
43.	MacGregor Village			NC	Cary		100.0	%	0		143,514	143,514
44.	North Ridge Shopping Center			NC	Raleigh		100.0	%	43,247		122,901	166,148
45.	Rockaway Convenience Center			NJ	Rockaway (New York)		100.0	%	44,518		104,393	148,911
46.	Rockaway Town Plaza			NJ	Rockaway (New York)		100.0	%	407,303		51,316	458,619
47.	Cobblestone Court			NY	Victor		35.0	%(2)	206,680		58,819	265,499

										Gross Leasable Area
		Property Name	State		City (Metropolitan area)		Legal Ownership			Anchor	Mall & Freestanding		Total
48.	Boardman Plaza			OH		Youngstown		100.0	%	365,507		240,468	605,975
49.	Great Lakes Plaza			OH		Mentor (Cleveland)		100.0	%	142,229		21,875	164,104
50.	Lima Center			OH		Lima		100.0	%	189,584		47,294	236,878
51.	Northland Plaza			OH		Columbus		100.0	%	118,304		91,230	209,534
52.	Eastland Plaza			OK		Tulsa		100.0	%	152,451		33,623	186,074
53.	DeKalb Plaza			PA		King of Prussia		50.3	%(3)	81,368		20,345	101,713
54.	Henderson Square			PA		King of Prussia		76.0	%(3)	72,683		34,690	107,373
55.	Lincoln Plaza			PA		King of Prussia		63.2	%(3)	143,649		123,582	267,231
56.	Whitehall Mall			PA		Whitehall		38.0	%(3)	444,916		143,168	588,084
57.	Charles Towne Square			SC		Charleston		100.0	%	71,794		0	71,794
58.	Empire East(1)			SD		Sioux Falls		50.0	%	248,181		48,580	296,761
59.	Knoxville Commons			TN		Knoxville		100.0	%	91,483		88,980	180,463
60.	Arboretum at Great Hills			TX		Austin		100.0	%	35,773		167,619	203,392
61.	Celina Plaza			TX		El Paso		100.0	%	0		8,695	8,695
62.	Gateway Shopping Centers			TX		Austin		95.0	%	396,494		115,825	512,319
63.	Ingram Plaza			TX		San Antonio		100.0	%	0		111,518	111,518
64.	Lakeline Plaza			TX		Austin		100.0	%	307,966		79,497	387,463
65.	Shops at North East Mall, The			TX		Hurst		100.0	%	265,595		99,148	364,743
66.	Wolf Ranch			TX		Georgetown (Austin)		100.0	%	395,071		219,079	614,150
67.	Chesapeake Center			VA		Chesapeake		100.0	%	213,651		92,284	305,935
68.	Fairfax Court			VA		Fairfax		26.3	%(2)	169,043		80,615	249,658
69.	Martinsville Plaza			VA		Martinsville		100.0	%	60,000		42,105	102,105
	*Total Community/Lifestyle Center GLA*									13,235,547		5,756,740	18,992,287

FOOTNOTES:

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

(2) Outside partner receives substantially all of the economic benefit due to a partner preference.

(3) The Operating Partnership’s indirect ownership interest is through an approximately 76% ownership interest in Kravco Simon Investments.

SIMON PROPERTY GROUP
International Operational Information(1)
As of September 30, 2006

	As of or for the Nine Months Ended September 30,
	2006			2005
*International Premium Outlets (Japan)*
Total Number of Premium Outlets	5			5
Total GLA (in millions of square feet)	1.4			1.3
Occupancy	100		%	100		%
Comparable sales per square foot	JPY 89,746			JPY 85,008
Average base rent per square foot	JPY 4,686			JPY 4,509
*European Shopping Centers*
Total Number of Shopping Centers	52			51
Total GLA (in millions of square feet)	12.0			11.1
Occupancy	96.9		%	97.7		%
Comparable sales per square foot	€	386		€	387
Average rent per square foot	€	26.26		€	25.99

(1) Does not include Premium Outlets Punta Norte in Mexico.

SIMON PROPERTY GROUP
International Property Listing

			SPG			Gross Leasable Area(1)
			Effective			Hypermarket/		Mall &
	Property Name	City (Metropolitan area)	Ownership(5)			Anchor(4)		Freestanding		Total
	FRANCE
1.	Bay 2	Torcy (Paris)		50.0	%		132,400		408,900	541,300
2.	Bay 1	Torcy (Paris)		50.0	%		—		336,300	336,300
3.	Bel’Est	Bagnolet (Paris)		17.5	%		150,700		63,000	213,700
4.	Villabé A6	Villabé (Paris)		7.5	%		102,300		104,500	206,800
	Subtotal France						385,400		912,700	1,298,100
	ITALY
	Ancona:
5.	Ancona	Ancona		49.0	%(3)		82,900		82,300	165,200
6.	Senigallia	Senigallia (Ancona)		49.0	%		41,200		41,600	82,800
	Ascoli Piceno:
7.	Grottammare	Grottammare (Ascoli Piceno)		49.0	%		38,900		55,900	94,800
8.	Porto Sant’Elpidio	Porto Sant’Elpidio (Ascoli Piceno)		49.0	%		48,000		114,300	162,300
	Bari:
9.	Casamassima	Casamassima (Bari)		49.0	%		159,000		388,800	547,800
10.	Modugno (5)	Modugno (Bari)		49.0	%		96,900		46,600	143,500
	Bergamo:
11.	Bergamo	Bergamo		49.0	%(3)		103,000		16,900	119,900
	Brescia:
12.	Concesio	Concesio (Brescia)		49.0	%(3)		89,900		27,600	117,500
13.	Mazzano	Mazzano (Brescia)		49.0	%(2)		103,300		127,400	230,700
	Brindisi:
14.	Mesagne	Mesagne (Brindisi)		49.0	%		88,000		140,600	228,600
	Cagliari:
15.	Marconi	Marconi (Cagliari)		49.0	%(3)		83,500		109,900	193,400
16.	Santa Gilla	Santa Gilla (Cagliari)		49.0	%(2)		75,900		114,800	190,700
	Catania:
17.	La Rena	La Rena (Catania)		49.0	%		124,100		22,100	146,200
18.	Misterbianco	Misterbianco (Catania)		49.0	%(3)		83,300		16,000	99,300
	Lecco:
19.	Merate	Merate (Lecco)		49.0	%(3)		73,500		88,500	162,000
	Milan (Milano):
20.	Cesano Boscone	Cescano Boscone (Milano)		49.0	%(3)		163,800		120,100	283,900
21.	Nerviano	Nerviano (Milano)		49.0	%(3)		83,800		27,800	111,600
22.	Rescaldina	Rescaldina (Milano)		49.0	%		165,100		212,000	377,100
23.	Vimodrone	Vimodrone (Milano)		49.0	%		110,400		80,200	190,600
	Naples (Napoli):
24.	Giugliano	Giugliano (Napoli)		19.6	%		130,000		618,300	748,300
25.	Mugnano di Napoli	Mugnano (Napoli)		49.0	%(3)		98,000		94,900	192,900
26.	Pompei	Pompei (Napoli)		49.0	%		74,300		17,100	91,400
	Olbia:
27.	Olbia	Olbia		49.0	%(3)		49,000		48,800	97,800
	Padova:
28.	Padova	Padova		49.0	%		73,300		32,500	105,800

SIMON PROPERTY GROUP
International Property Listing

			SPG			Gross Leasable Area(1)
			Effective			Hypermarket/		Mall &
	Property Name	City (Metropolitan area)	Ownership(5)			Anchor(4)		Freestanding		Total
	Palermo:
29.	Palermo	Palermo		49.0	%		73,100		9,800	82,900
	Pesaro:
30.	Fano	Fano (Pesaro)		49.0	%		56,300		56,000	112,300
	Pescara:
31.	Cepagatti	Cepagatti (Pescara)		49.0	%		80,200		189,600	269,800
32.	Pescara	Pescara		49.0	%		96,300		65,200	161,500
	Piacenza:
33.	San Rocco al Porto	San Rocco al Porto (Piacenza)		49.0	%		104,500		74,700	179,200
	Rome (Roma):
34.	Casalbertone	Roma		49.0	%(3)		62,700		84,900	147,600
35.	Collatina	Collatina (Roma)		49.0	%		59,500		4,100	63,600
	Sassari:
36.	Centro Azuni	Sassari		49.0	%(3)		—		35,600	35,600
37.	Predda Niedda	Predda Niedda (Sassari)		49.0	%(2)		79,500		154,200	233,700
	Taranto:
38.	Taranto	Taranto		49.0	%		75,200		126,500	201,700
	Turin (Torino):
39.	Cuneo	Cuneo (Torino)		49.0	%		80,700		201,500	282,200
40.	Rivoli	Rivoli (Torino)		49.0	%(3)		61,800		32,300	94,100
41.	Torino	Torino		49.0	%		105,100		66,700	171,800
42.	Venaria	Venaria (Torino)		49.0	%		101,600		64,000	165,600
	Venice (Venezia):
43.	Venezia—Mestre	Mestre (Venezia)		49.0	%		114,100		132,600	246,700
	Verona:
44.	Bussolengo	Bussolengo (Verona)		49.0	%(3)		89,300		75,300	164,600
	Vicenza:
45.	Vicenza	Vicenza		49.0	%		78,400		20,100	98,500
	Subtotal Italy						3,557,400		4,038,100	7,595,500
	POLAND
46.	Arkadia Shopping Center	Warsaw		50.0	%		202,100		902,200	1,104,300
47.	Borek Shopping Center	Wroclaw		50.0	%		119,900		129,300	249,200
48.	Dabrowka Shopping Center	Katowice		50.0	%		121,000		172,900	293,900
49.	Gliwice Shopping Center	Gliwice		50.0	%		140,700		239,000	379,700
50.	Turzyn Shopping Center	Szczecin		50.0	%		87,200		121,900	209,100
51.	Wilenska Station Shopping Center	Warsaw		50.0	%		92,700		215,900	308,600
52.	Zakopianka Shopping Center	Krakow		50.0	%		120,200		425,400	545,600
	Subtotal Poland						883,800		2,206,600	3,090,400
	JAPAN
53.	Gotemba Premium Outlets	Gotemba City (Tokyo)		40.0	%		—		390,000	390,000
54.	Rinku Premium Outlets	Izumisano (Osaka)		40.0	%		—		321,000	321,000
55.	Sano Premium Outlets	Sano (Tokyo)		40.0	%		—		318,200	318,200
56.	Toki Premium Outlets	Toki (Nagoya)		40.0	%		—		178,000	178,000
57.	Tosu Premium Outlets	Fukuoka (Kyushu)		40.0	%		—		187,000	187,000
	Subtotal Japan						—		1,394,200	1,394,200

SIMON PROPERTY GROUP
International Property Listing

SPG

Gross Leasable Area(1)

Effective

Hypermarket/

Mall &

Property Name

City (Metropolitan area)

Ownership(5)

Anchor(4)

Freestanding

Total

MEXICO

58.

Premium Outlets Punta Norte

Mexico City

50.0

—

232,000

Subtotal Mexico

—

232,000

TOTAL INTERNATIONAL ASSETS

4,826,600

8,783,600

13,610,200

FOOTNOTES:

(1) All gross leasable area listed in square feet.

(2) This property is held partially in fee and partially encumbered by a leasehold on the premise which entitles the lessor to the majority of the economics of the portion of the property subject to the leasehold.

(3) This property is encumbered by a leasehold on the entire premises which entitles the lessor the majority of the economics of the property.

(4) Represents the sales area of the anchor and excludes any warehouse/storage areas.

(5) We own our interest in the assets in France, Portugal and Poland through our shareholdings in Simon Ivanhoe BV/SARL. Our interest in the Italian assets is owned through Galleria Commerciali Italia S.p.A., while our interest in the assets in Japan is owned through Chelsea Japan Co., Ltd. We own our interest in Mexico through Fideicomiso Trust No. F/315-5.

SIMON PROPERTY GROUP
Capital Expenditures in the U.S. Portfolio
For the Nine Months Ended September 30, 2006
(In thousands)

					Unconsolidated Entities
							Simon
	Consolidated						Group’s
	Properties				Total		Share
New development projects(1)		$	248,370		$	227,999	$	110,239
Redevelopment projects with incremental GLA and/or Anchor Replacement		166,680			66,606		22,961
Renovations with no incremental GLA		27,664			12,700		4,593
Tenant allowances:
Retail		38,134			30,492		11,180
Office portion of retail		1,275			—		—
Operational capital expenditures at properties:
CAM expenditures(2)		42,950			14,744		5,772
Non-CAM expenditures		13,741			6,875		2,606
Totals		$	538,814		$	359,416	$	157,351
Plus (Less): Conversion from accrual to cash basis		(5,118		)	27,059
Capital Expenditures for the Nine Months Ended 9/30/06(3)		$	533,696		$	386,475
Capital Expenditures for the Nine Months Ended 9/30/05(3)		$	420,400		$	111,852

(1) Includes $26.8 million relating to Simon’s new headquarters.

(2) Expenditure included in the pool of expenses allocated to tenants as common area maintenance or CAM.

(3) Agrees with the line item “Capital expenditures” on the Combined Statements of Cash Flows for the consolidated properties. No statement of cash flows is prepared for the joint venture properties as this is not required by the SEC or GAAP; however, the above reconciliation was completed in the same manner as the reconciliation for the consolidated properties.

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of September 30, 2006

																Construction-in-Progress
																		Unconsolidated Entities
Property/Location	Project Description	The Company’s Ownership Percentage			Projected Opening		Projected Gross Cost (1) (in millions)		Projected Net Cost (in millions)		The Company’s Share of Net Cost		Stabilized Rate of Return			Consolidated Properties		Total	The Company’s Share
*New Development Projects:*
Coconut Point Estero/Bonita Springs, FL	1.2 million square foot open-air town center with a village component anchored by Dillard’s, Muvico Theatres, and Barnes & Noble and a community center component anchored by Bed Bath & Beyond, Best Buy, Cost Plus World Market, DSW, Office Max, Old Navy, Party City, PetsMart, Pier One Imports, Ross Dress for Less, Sports Authority, T.J. Maxx, Ulta Cosmetics; includes 30,000 sf of office space. Contains separate residential component.		50	%		4/06 (Comm Ctr) 11/06 (All other)		$298		$229		$115		10	%		—	$225.6		$112.8
Domain, The Austin, TX	700,000 square foot open-air town center anchored by Neiman Marcus and Macy’s and includes 75,000 sf of office space. Contains separate residential component.		100	%		3/07		$245		$195		$195		10	%		$151.1	—		—
Hamilton Town Center Noblesville (Indianapolis), IN	950,000 square foot town center with village and community center components.		50	%		3/08		$157		$142		$ 71		10	%		—	$ 10.6		$ 5.3
Philadelphia Premium Outlets Limerick, PA	430,000 square foot upscale outlet center		100	%		11/07		$114		$114		$114		12	%		$ 23.4	—		—
Pler Park Panama City Beach, FL	920,000 square foot hybrid community/lifestyle center anchored by Target, Southern Theaters’ Grand Theater, Borders Books & Music, Old Navy		100	%		10/06 (Target) 5/07 (Theater) 3/08 (All other)		$155		$127		$127		9	%		$ 40.7	—		—
Rio Grande Valley Premium Outlets Mercedes, TX	404,000 square foot upscale outlet center		100	%		11/06		$ 69		$ 60		$ 60		13	%		$ 47.7	—		—
Shops at Arbor Walk, The Austin, TX	460,000 square foot community center anchored by Home Depot, Marshall’s, DSW, Golf Galaxy and JoAnn Fabrics		100	%		11/06 (Phase I) 3/07 (Phase II)		$ 60		$ 52		$ 52		9	%		$ 41.6	—		—
Village at SouthPark, The Charlotte, NC	Street-level retail project comprised of 48,000 square feet of small shops along with a 33,000 square foot Crate & Barrel. Contains separate residential component.		100	%		11/06 (Crate & Barrel) 3/07 (Other retail)		$ 33		$ 26		$ 26		11	%		$ 11.6	—		—
*Significant Redevelopment Projects with Incremental GLA*
Burlington Mall Burlington (Boston), MA	Acquisition of former Filene’s building and addition of Nordstrom and small shops; Crate & Barrel relocation		100	%		9/07 (Crate & Barrel) 3/08 (Nordstrom & shops)		$ 78		$ 78		$ 78		11	%		$ 21.4	—		—
Castleton Square Indianapolis, IN	Acquisition of former L.S. Ayres building and addition of lifestyle component with AMC Theatres and Borders		100	%		11/07		$ 40		$ 40		$ 40		8	%		$ 6.1	—		—
Greenwood Park Mall Greenwood (Indianapolis), IN	Acquisition of former L.S. Ayres building and addition of lifestyle component with Barnes & Noble and small shops		100	%		11/07		$ 42		$ 42		$ 42		7	%		$ 5.4	—		—
Las Vegas Premium Outlets Las Vegas, NV	104,000 square foot phase II of upscale outlet center, including the addition of two five-level parking garages		100	%		12/07		$ 56		$ 53		$ 53		12	%		$ 7.4	—		—
Lehigh Valley Mall Whitehall, PA	Addition of a lifestyle component consisting of Barnes & Noble, Pottery Barn, Williams-Sonoma, Bonefish Grill and Bravo; includes renovation and addition of outlots		38	%		8/07		$ 43		$ 42		$ 16		9	%		—	$ 1.4		$ 0.5

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of September 30, 2006

																		Construction-in-Progress
		The Company’s				Projected			Projected			The Company’s			Stabilized						Unconsolidated Entities
		Ownership			Projected	Gross Cost (1)			Net Cost			Share of			Rate of			Consolidated					The Company’s
Property/ Location	Project Description	Percentage			Opening	(in millions)			(in millions)			Net Cost			Return			Properties			Total		Share
Lenox Square Atlanta, GA	Neiman Marcus expansion; addition of second level of small shops and renovation of the atrium area		100	%	10/07		$	53		$	46		$	46		8	%		$	19.2	—			—
Northgate Mall Seattle, WA	Addition of Barnes & Noble, Panera Bread, Macaroni Grill, Starbucks and Gene Juarez Spa in a lifestyle component; creation of two outparcels		100	%	6/07 (Barnes & restaurants) 11/07 (Starbucks & Spa)		$	49		$	44		$	44		8	%		$	6.9	—			—
Smith Haven Mall Lake Grove (New York), NY	Mall renovation and addition of lifestyle component consisting of Dick’s Sporting Goods, Barnes & Noble, California Pizza Kitchen, The Cheesecake Factory and small shops; addition of Macy’s Furniture		25	%	11/06 (renovation, Cheesecake & shops) 6/07 (all other)		$	72		$	65		$	16		10	%		—		$	35.0		$	8.7
St. Johns Town Center - Phase II Jacksonville, FL	180,000 square foot upscale expansion		50	%	10/07		$	64		$	61		$	30		11	%		—		$	9.4		$	4.7
Other Redevelopment Projects with Incremental GLA
Allen Premium Outlets Allen (Dallas), TX	28,000 square foot expansion of Neiman Marcus Last Call		100	%	6/07
Battlefield Mall Springfield, MO	Lifestyle addition (phase II)		100	%	11/06
Columbia Center Kennewick, WA	Lifestyle addition		100	%	11/07
Edison Mall Ft. Myers, FL	Lifestyle addition		100	%	11/06
Livingston Mall Livingston, NJ	Addition of Barnes & Noble, expansion of Modell’s and food court addition		100	%	3/08
Tyrone Square St. Petersburg, FL	Lifestyle addition		100	%	10/07
	Subtotal Other Redevelopment Projects with Incremental GLA						$	62		$	61		$	61		7	%		$	13.9	—			—
*Renovations*

Aventura Mall Miami Beach, FL	Mall renovation		33	%	1/07

Battlefield Mall Springfield, MO	Mall renovation		100	%	11/06

Edison Mall Ft. Myers, FL	Mall renovation		100	%	2/07

Mall at Chestnut Hill Newton (Boston), MA	Mall renovation		47	%	11/06

Orange Park Mall Orange Park (Jacksonville), FL	Mall renovation and addition of Dick’s Sporting Goods		100	%	4/07
	Subtotal Renovations						$	61		$	57		$	41		8	%		$	12.0	$	15.3		$	5.5

SIMON PROPERTY GROUP
U.S. Development Activity Report* Project Overview, Construction-in-Progress and Land Held for Development
As of September 30, 2006

Construction-in-Progress

The Company’s

Projected

The Company’s

Stabilized

Unconsolidated Entities

Ownership

Projected

Gross Cost (1)

Net Cost

Share of

Rate of

Consolidated

The Company’s

Property/ Location

Project Description

Percentage

Opening

(in millions)

Net Cost

Return

Properties

Total

Share

Anchor/Big Box/Theater Activity

Boynton Beach Mall
Boynton Beach, FL

Addition of Muvico Theater

100

5/07

Galleria, The
Houston, TX

Addition of Borders, Del Frisco, Kona Grill, Oceanaire and small shops in former Lord & Taylor space

8/06 (Kona)
11/06 (all other)

Ross Park Mall
Pittsburgh, PA

Addition of The Cheesecake Factory

100

11/06

Square One Mall
Saugus (Boston), MA

Addition of Dick’s Sporting Goods

5/07

Washington Square
Indianapolis, IN

Addition of Steve & Barry’s

100

11/06

	Subtotal Anchor/Big Box/Theater Activity				$	67	$	61	$35	7	%	$	15.2	$	14.4	$	6.1
*Asset Intensification*
Firewheel Town Center Garland, TX	Residential	50	%	7/07
The Domain Austin, TX	Residential	50	%	3/07
University Mall Pensacola, FL	Self-storage	50	%	7/07
Village at SouthPark, The Charlotte, NC	Residential	40	%	5/07
	Subtotal Asset Intensification				$136		$128		$59	8	%	—		$	53.0	$	23.9
Miscellaneous												$	14.5	$	1.1	$	0.7
Total Construction in Progress(2)												$	438.1	$	365.8	$	168.2
Land Held for Development												$	91.3	$	356.5	$	144.7

* Cost and return are based upon current budget assumptions. Actual results may vary.

(1) Projected Gross Cost includes soft costs such as architecture and engineering fees, tenant costs (allowances/leasing commissions), development, legal and other fees, marketing costs, cost of capital,
and other related costs.

(2) Does not include the Company's international properties.

SIMON PROPERTY GROUP
International Development Activity Report*
Project Overview, Construction-in-Progress
As of September 30, 2006

The Company’s

Ownership

Projected

Shopping center/

Anchors/

Percentage

Net Cost*

Location (Metropolitan area)

Project Description

Major Tenants

of Project

Opening

(in millions)

New Development Projects:

Europe:

Argine—Napoli, Italy

300,000 square foot center anchored by a
hypermarket with approximately 75 shops

Auchan

24.0

Summer 2008

€

Cinisello—Milano, Italy

400,000 square foot center anchored by a
hypermarket with approximately 100 shops

Auchan

49.0

Summer 2007

€

127

Nola—Napoli, Italy

1.0 million square foot center including a
hypermarket and department store

Auchan, Coin, Holiday Inn, Media
World

22.1

Summer 2007

€

165

(1)

Porta di Roma—Roma, Italy

1.3 million square foot center including a
hypermarket, department store and
do-it-yourself centers

Auchan, Leroy Merlin, UGC Theatres,
Ikea (opened 6/05), Media World,
Decathlon

19.6

Summer 2007

€

224

Wasquehal—Wasquehal,
France (Lille)

200,000 square foot expansion of existing
Carrefour anchored hypermarket(2)

Carrefour

50.0

10/06

€

Asia:

Changshu, China

470,000 square foot center anchored by a
hypermarket with approximately 150 shops

Wal-Mart

32.5

Winter (Q1) 2008

CNY 500

Suzhou, China

710,000 square foot center anchored by a
hypermarket and theater with approximately
175 shops

Wal-Mart

32.5

Winter (Q1) 2009

CNY 841

Yeoju Premium Outlets—Yeoju,
South Korea

253,000 square foot Phase I upscale outlet center

50.0

Spring 2007

KRW 78,680

Zhengzhou, China

460,000 square foot center anchored by a
hypermarket and theater with approximately
125 shops

Wal-Mart

32.5

Spring 2008

CNY 503

Redevelopment Projects with
Incremental GLA:

Toki Premium Outlets—Nagoya,
Japan

53,000 square foot phase II expansion of
upscale outlet center

Wacoal, Neostyle Keiji Itakura, Vans,
Quicksilver, LAUNDRY, Billabong,
Champion, Clark, Harrods, Issey
Miyake, Kookai, Labrador Retriever,
Paule KA

40.0

10/06

JPY 1,770

Other projects (1 leasehold development, 1 leasehold extension)

€

* Cost is based upon current budget assumptions. Actual results may vary.

(1) The Company is not obligated to fund its share of € 22 million increase in project costs from € 143 million to € 165 million.

(2) Owner of existing gallery did not elect to participate in the expansion. Simon Ivanhoe BV/SARL (“Simon Ivanhoe”), the Company’s joint venture which owns shopping centers in France and Poland, will fund 100% of the costs of the expansion, which is a new development for Simon Ivanhoe.

SIMON PROPERTY GROUP
The Company’s Share of Total Debt Amortization and Maturities by Year
As of September 30, 2006
(In thousands)

	The Company’s			The Company’s				The Company’s
	Share of			Share of				Share of
	Secured			Unsecured				Unconsolidated				The Company’s
	Consolidated			Consolidated				Joint Venture				Share of Total
Year	Debt			Debt				Debt				Debt
2006		16,579			250,000				22,747				289,326
2007		616,527			1,055,000				205,016				1,876,543
2008		494,438			350,000				328,994				1,173,432
2009		738,358			900,000				180,062				1,818,420
2010		704,313			1,100,000				715,541				2,519,854
2011		520,957			1,741,399				530,327				2,792,683
2012		355,679			850,000				280,082				1,485,761
2013		199,751			425,000				202,924				827,675
2014		399,254			700,000				148,206				1,247,460
2015		1,697			1,200,000				431,916				1,633,613
2016		1,686			650,000				482,018				1,133,704
Thereafter		23,831			700,000				250				724,081
Face Amounts of Indebtedness		$	4,073,070		$	9,921,399			$	3,528,083			$	17,522,552
Premiums (Discounts) on Indebtedness, Net		37,841			32,085				(1,224		)		68,702
Fair Value of Interest Rate Swaps Agreements		—			(10,084		)		—				(10,084		)
The Company’s Share of Total Indebtedness		$	4,110,911		$	9,943,400			$	3,526,859			$	17,581,170

Debt Covenant Compliance Ratios

Senior Unsecured Notes Covenant(1)

Required

Actual

Compliance

Total Debt to Total Assets

<65%

Yes

Total Secured Debt to Total Assets

<50%

Yes

Fixed Charge Coverage Ratio

>1.50X

2.6

Yes

Total Unencumbered Assets to Unsecured Debt

>125%

230

Yes

(1) Covenants for indentures dated June 7, 2005 and later. Covenants and other provisions of prior supplemental indentures apply to all unsecured debt for as long as any securities issued under prior supplemental indentures remain outstanding or until the covenants in the prior supplemental indentures have been amended. For a complete listing of all debt covenants related to the Company’s senior unsecured notes, as well as definitions of the above terms, please refer to Simon Property Group, L.P. filings with the Securities and Exchange Commission.

SIMON PROPERTY GROUP
Summary of Indebtedness
As of September 30, 2006
(In thousands)

					The Company’s				Weighted			Weighted
	Total				Share of				Average			Average Years
	Indebtedness				Indebtedness				Interest Rate			to Maturity
Consolidated Indebtedness
Mortgage Debt
Fixed Rate		$	3,986,753			$	3,808,188			6.42	%		4.2
Floating Rate Debt (Hedged)(1)		96,205				96,205				6.22	%		2.6
Floating Rate Debt		176,084				168,677				5.89	%		3.5
Total Mortgage Debt		4,259,042				4,073,070				6.39	%		4.0
Unsecured Debt
Fixed Rate		9,330,000				9,330,000				5.98	%		5.5
Floating Rate Debt		300,000				300,000				5.37	%		2.3
		9,630,000				9,630,000				5.89	%		5.4
Revolving Corporate Credit Facility		—				—				5.70	%		4.3
Revolving Credit Facility—Yen Currency		14,811				14,811				0.76	%		4.3
Revolving Credit Facility—Euro Currency		276,588				276,588				3.65	%		4.3
		291,399				291,399				3.50	%		4.3
Total Unsecured Debt		9,921,399				9,921,399				5.89	%		5.4
Premium		95,692				94,018
Discount		(24,108		)		(24,092		)
Fair Value Interest Rate Swaps		(10,084		)		(10,084		)
Consolidated Mortgages and Other Indebtedness(2)		$	14,241,941			$	14,054,311			6.04	%		5.0
Joint Venture Indebtedness
Mortgage Debt
Fixed Rate		$	7,348,253			$	3,163,824			5.89	%		6.0
Floating Rate Debt (Hedged)(1)		201,691				82,884				6.03	%		2.7
Floating Rate Debt		529,525				237,484				5.54	%		2.8
Total Mortgage Debt		8,079,469				3,484,192				5.86	%		5.6
Unsecured Floating Rate Debt		89,574				43,891				3.92	%		2.2
Total Unsecured Debt		89,574				43,891				3.92	%		2.2
Premium		—				—
Discount		(2,493		)		(1,224		)
Joint Venture Mortgages and Other Indebtedness		$	8,166,550			$	3,526,859			5.86	%		5.6

*The Company’s Share of Total Indebtedness*						$17,581,170				5.97	%		5.1
Summary of the Company’s share of Fixed and Variable Rate Debt
Consolidated
Fixed		94.0		%		13,208,114				6.11	%		5.1
Variable		6.0		%		846,197				4.93	%		3.5
		100.0		%		14,054,311				6.04	%		5.0
Joint Venture
Fixed		89.7		%		3,162,600				5.89	%		6.0
Variable		10.3		%		364,259				5.65	%		2.9
		100.0		%		$	3,526,859			5.86	%		5.6
Total Debt						17,581,170

Total Fixed Debt		93.1		%		16,370,714				6.01	%		5.2

Total Variable Debt		6.9		%		1,210,456				5.05	%		3.3

(1) These debt obligations are hedged by interest rate cap agreements.

(2) Amounts give effect to outstanding derivative instruments as footnoted on the Summary of Indebtedness by Maturity.

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of September 30, 2006
(In thousands)

												The
								Interest				Company’s
		Maturity			Interest			Rate	Secured or	Total		Share of
Property Name		Date			Rate(1)			Type	Unsecured	Indebtedness		Indebtedness
Consolidated Indebtedness:
Simon Property Group, LP (Sr. Notes)			11/15/06			6.88	%	Fixed	Unsecured		250,000		250,000
Cielo Vista Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		47,773		47,773
Cielo Vista Mall—3	(4)		05/01/07			6.76	%	Fixed	Secured		34,916		34,916
Lakeline Mall			05/01/07			7.65	%	Fixed	Secured		65,327		65,327
McCain Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		22,306		22,306
McCain Mall—2	(4)		05/01/07			6.76	%	Fixed	Secured		16,117		16,117
Valle Vista Mall—1	(4)		05/01/07			9.38	%	Fixed	Secured		29,545		29,545
Valle Vista Mall—2	(4)		05/01/07			6.81	%	Fixed	Secured		7,169		7,169
Wolfchase Galleria			06/30/07			7.80	%	Fixed	Secured		71,061		67,150
Keystone at the Crossing			07/31/07			7.85	%	Fixed	Secured		57,790		57,790
Copley Place			08/01/07			7.44	%	Fixed	Secured		171,999		168,812
Simon Property Group, LP (Medium Term Notes)			09/20/07			7.13	%	Fixed	Unsecured		180,000		180,000
University Park Mall			10/01/07			7.43	%	Fixed	Secured		57,006		34,204
CPG Partners, LP (Sr. Notes)			10/21/07			7.25	%	Fixed	Unsecured		125,000		125,000
Simon Property Group, LP (Sr. Notes)			11/15/07			6.38	%	Fixed	Unsecured		750,000		750,000
Bangor Mall			12/01/07			7.06	%	Fixed	Secured		22,223		14,745
White Oaks Mall	(2)		02/25/08			6.42	%	Variable	Secured		48,361		40,954
Simon Property Group, LP (MOPPRS)			06/15/08			7.00	%	Fixed	Unsecured		200,000		200,000
Gilroy Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		64,559		64,559
Kittery Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		10,688		10,688
Lighthouse Place Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		44,547		44,547
Waterloo Premium Outlets	(9)		07/11/08			6.99	%	Fixed	Secured		35,879		35,879
Simon Property Group, LP (Sr. Notes)			08/28/08			5.38	%	Fixed	Unsecured		150,000		150,000
Stanford Shopping Center			09/11/08	(11)		3.60	%	Fixed	Secured		220,000		220,000
Arsenal Mall—1			09/28/08			6.75	%	Fixed	Secured		31,576		31,576
College Mall—1	(3)		01/01/09			7.00	%	Fixed	Secured		33,031		33,031
College Mall—2	(3)		01/01/09			6.76	%	Fixed	Secured		10,762		10,762
Greenwood Park Mall—1	(3)		01/01/09			7.00	%	Fixed	Secured		27,665		27,665
Greenwood Park Mall—2	(3)		01/01/09			6.76	%	Fixed	Secured		55,600		55,600
Towne East Square—1			01/01/09			7.00	%	Fixed	Secured		44,736		44,736
Towne East Square—2			01/01/09			6.81	%	Fixed	Secured		22,438		22,438
Woodland Hills Mall			01/01/09			7.00	%	Fixed	Secured		81,934		77,401
Simon Property Group, LP (Sr. Notes)			01/30/09	(16)		3.75	%	Fixed	Unsecured		300,000		300,000
Simon Property Group, LP (Sr. Notes)			02/09/09			7.13	%	Fixed	Unsecured		300,000		300,000
Penn Square Mall			03/01/09			7.03	%	Fixed	Secured		68,543		64,770
CPG Partners, LP (Sr. Notes)			03/15/09			3.50	%	Fixed	Unsecured		100,000		100,000
Plaza Carolina—Fixed			05/09/09			5.10	%	Fixed	Secured		95,273		95,273
Plaza Carolina—Variable Capped	(2)		05/09/09			6.22	%	Variable	Secured		96,205		96,205
Plaza Carolina—Variable Floating	(2)		05/09/09			6.22	%	Variable	Secured		57,723		57,723

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of September 30, 2006
(In thousands)

												The
							Interest					Company’s
		Maturity		Interest			Rate	Secured or		Total		Share of
Property Name		Date		Rate(1)			Type	Unsecured		Indebtedness		Indebtedness
Simon Property Group, LP (Sr. Notes)			07/15/09		7.00	%	Fixed	Unsecured			150,000		150,000
CPG Partners, LP (Sr. Notes)			08/17/09		8.63	%	Fixed	Unsecured			50,000		50,000
Bloomingdale Court	(8)		11/01/09		7.78	%	Fixed	Secured			27,639		27,639
Forest Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			15,160		15,160
Lake View Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			20,152		20,152
Lakeline Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			22,094		22,094
Lincoln Crossing	(8)		11/01/09		7.78	%	Fixed	Secured			3,050		3,050
Matteson Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			8,874		8,874
Muncie Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			7,673		7,673
Regency Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			4,159		4,159
St. Charles Towne Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			26,622		26,622
West Ridge Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			5,363		5,363
White Oaks Plaza	(8)		11/01/09		7.78	%	Fixed	Secured			16,362		16,362
Simon Property Group, LP (Sr. Notes)			03/18/10		4.88	%	Fixed	Unsecured			300,000		300,000
Simon Property Group, LP (Sr. Notes)			06/15/10		4.60	%	Fixed	Unsecured			400,000		400,000
SB Trolley Square Holding			08/01/10		9.03	%	Fixed	Secured			28,471		28,471
Simon Property Group, LP (Sr. Notes)			08/15/10		4.88	%	Fixed	Unsecured			400,000		400,000
Coral Square			10/01/10		8.00	%	Fixed	Secured			86,038		83,646
Crystal River			11/11/10		7.63	%	Fixed	Secured			15,390		15,390
Forum Shops at Caesars, The			12/01/10		4.78	%	Fixed	Secured			544,005		544,005
Port Charlotte Town Center			12/11/10		7.98	%	Fixed	Secured			52,127		41,702
Oxford Valley Mall			01/10/11		6.76	%	Fixed	Secured			80,517		50,855
Revolving Credit Facility—USD	(2)		01/11/11		5.70	%	Variable	Unsecured			—		—
Revolving Credit Facility—Yen Currency	(2)		01/11/11		0.76	%	Variable	Unsecured	(17)		14,811		14,811
Revolving Credit Facility—Euro Currency	(2)		01/11/11		3.65	%	Variable	Unsecured	(18)		276,588		276,588
Simon Property Group, LP (Sr. Notes)			01/20/11		7.75	%	Fixed	Unsecured			200,000		200,000
CPG Partners, LP (Sr. Notes)			02/01/11		8.25	%	Fixed	Unsecured			150,000		150,000
Simon Property Group, LP (Sr. Notes)			06/01/11		5.38	%	Fixed	Unsecured			500,000		500,000
Henderson Square			07/01/11		6.94	%	Fixed	Secured			15,115		11,483
Ingram Park Mall	(7)		08/11/11		6.99	%	Fixed	Secured			79,772		79,772
Knoxville Center	(7)		08/11/11		6.99	%	Fixed	Secured			60,408		60,408
Northlake Mall	(7)		08/11/11		6.99	%	Fixed	Secured			69,689		69,689
Towne West Square	(7)		08/11/11		6.99	%	Fixed	Secured			52,218		52,218
Simon Property Group, LP (Sr. Notes)			09/01/11		5.60	%	Fixed	Unsecured			600,000		600,000
Gateway Shopping Center			10/01/11		5.89	%	Fixed	Secured			87,000		84,218
Tacoma Mall			10/01/11		7.00	%	Fixed	Secured			127,233		127,233
Simon Property Group, LP (Sr. Notes)			05/01/12		5.75	%	Fixed	Unsecured			400,000		400,000
CPG Partners, LP (Sr. Notes)			06/15/12		6.88	%	Fixed	Unsecured			100,000		100,000
Simon Property Group, LP (Sr. Notes)			08/28/12		6.35	%	Fixed	Unsecured			350,000		350,000
Anderson Mall			10/10/12		6.20	%	Fixed	Secured			28,739		28,739

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of September 30, 2006
(In thousands)

											The
							Interest				Company’s
		Maturity		Interest			Rate	Secured or	Total		Share of
Property Name		Date		Rate(1)			Type	Unsecured	Indebtedness		Indebtedness
Century III Mall	(5)		10/10/12		6.20	%	Fixed	Secured		84,832		84,832
Crossroads Mall			10/10/12		6.20	%	Fixed	Secured		42,606		42,606
Forest Mall	(6)		10/10/12		6.20	%	Fixed	Secured		17,062		17,062
Highland Lakes Center	(5)		10/10/12		6.20	%	Fixed	Secured		15,727		15,727
Longview Mall	(5)		10/10/12		6.20	%	Fixed	Secured		31,931		31,931
Markland Mall	(6)		10/10/12		6.20	%	Fixed	Secured		22,591		22,591
Midland Park Mall	(6)		10/10/12		6.20	%	Fixed	Secured		32,980		32,980
Palm Beach Mall			10/10/12		6.20	%	Fixed	Secured		52,758		52,758
Richmond Towne Square	(6)		10/10/12		6.20	%	Fixed	Secured		46,324		46,324
CPG Partners, LP (Sr. Notes)			01/15/13		6.00	%	Fixed	Unsecured		150,000		150,000
Factory Stores of America—Boaz	(10)		03/10/13		9.10	%	Fixed	Secured		2,760		2,760
The Factory Shoppes at Branson Meadows	(10)		03/10/13		9.10	%	Fixed	Secured		9,437		9,437
MacGregor Village	(10)		03/10/13		9.10	%	Fixed	Secured		6,796		6,796
Factory Stores of America—Georgetown	(10)		03/10/13		9.10	%	Fixed	Secured		6,541		6,541
Factory Stores of America—Graceville	(10)		03/10/13		9.10	%	Fixed	Secured		1,943		1,943
Dare Centre	(10)		03/10/13		9.10	%	Fixed	Secured		1,690		1,690
Factory Stores of America—Lebanon	(10)		03/10/13		9.10	%	Fixed	Secured		1,633		1,633
Factory Stores of America—Nebraska City	(10)		03/10/13		9.10	%	Fixed	Secured		1,534		1,534
North Ridge Shopping Center	(10)		03/10/13		9.10	%	Fixed	Secured		8,300		8,300
Factory Stores of America—Story City	(10)		03/10/13		9.10	%	Fixed	Secured		1,897		1,897
Carolina Premium Outlets—Smithfield	(10)		03/10/13		9.10	%	Fixed	Secured		20,293		20,293
The Crossings Premium Outlets			03/13/13		5.85	%	Fixed	Secured		57,028		57,028
Simon Property Group, LP (Sr. Notes)			03/15/13		5.45	%	Fixed	Unsecured		200,000		200,000
Battlefield Mall			07/01/13		4.60	%	Fixed	Secured		98,236		98,236
Retail Property Trust (Sr. Notes)			09/01/13		7.18	%	Fixed	Unsecured		75,000		75,000
Simon Property Group, LP (Sr. Notes)			01/30/14		4.90	%	Fixed	Unsecured		200,000		200,000
Northfield Square			02/11/14		6.05	%	Fixed	Secured		30,538		9,650
Montgomery Mall			05/11/14		5.17	%	Fixed	Secured		92,872		49,659
Boardman Plaza			07/01/14		5.94	%	Fixed	Secured		23,598		23,598
Desoto Square			07/01/14		5.89	%	Fixed	Secured		64,153		64,153
Upper Valley Mall			07/01/14		5.89	%	Fixed	Secured		47,904		47,904
Washington Square			07/01/14		5.94	%	Fixed	Secured		30,693		30,693
West Ridge Mall			07/01/14		5.89	%	Fixed	Secured		68,711		68,711
Chesapeake Square			08/01/14		5.84	%	Fixed	Secured		72,937		54,703
Brunswick Square			08/11/14		5.65	%	Fixed	Secured		85,922		85,922
Simon Property Group, LP (Sr. Notes)			08/15/14		5.63	%	Fixed	Unsecured		500,000		500,000
DeKalb Plaza			01/01/15		5.28	%	Fixed	Secured		3,328		1,675
Simon Property Group, LP (Sr. Notes)			06/15/15		5.10	%	Fixed	Unsecured		600,000		600,000
Simon Property Group, LP (Sr. Notes)			12/01/15		5.75	%	Fixed	Unsecured		600,000		600,000

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of September 30, 2006
(In thousands)

													The
							Interest						Company’s
		Maturity		Interest			Rate	Secured or		Total			Share of
Property Name		Date		Rate(1)			Type	Unsecured		Indebtedness			Indebtedness
Retail Property Trust (Sr. Notes)			03/15/16		7.88	%	Fixed	Unsecured			250,000			250,000
Simon Property Group, LP (Sr. Notes)			05/01/16		6.10	%	Fixed	Unsecured			400,000			400,000
Arsenal Mall—2			05/05/16		8.20	%	Fixed	Secured			1,370			1,370
Simon Property Group, LP (Sr. Notes)			03/01/17		5.88	%	Fixed	Unsecured			500,000			500,000
Simon Property Group, LP (Sr. Notes)			06/15/18		7.38	%	Fixed	Unsecured			200,000			200,000
Sunland Park Mall			01/01/26		8.63	%	Fixed	Secured			35,495			35,495
Total Consolidated Indebtedness at Face Value											14,180,441			13,994,469
Premium on Fixed-Rate Indebtedness											95,692			94,018
Discount on Fixed-Rate Indebtedness											(24,108	)		(24,092	)
Fair Value Interest Rate Swaps											(10,084	)		(10,084	)
*Total Consolidated Indebtedness*											14,241,941			14,054,311
Joint Venture Indebtedness
St. John’s Town Center Phase II			11/30/06		6.17	%	Variable	Secured			11,700			5,850
Hamilton Town Center			03/31/07		6.32	%	Variable	Secured			6,803			3,402
Gwinnett Place—1			04/01/07		7.54	%	Fixed	Secured			35,793			17,897
Gwinnett Place—2			04/01/07		7.25	%	Fixed	Secured			79,551			39,776
Town Center at Cobb—1			04/01/07		7.54	%	Fixed	Secured			45,602			22,801
Town Center at Cobb—2			04/01/07		7.25	%	Fixed	Secured			60,541			30,271
Galleria Commerciali Italia—Cinisello			06/20/07		3.82	%	Variable	Secured	(13)		41,079			20,129
Coddingtown Mall			07/14/07		6.57	%	Variable	Secured			10,500			10,500
Mall at Rockingham			09/01/07		7.88	%	Fixed	Secured			93,562			22,987
Gotemba Premium Outlets—Variable			09/30/07		2.17	%	Variable	Secured	(15)		18,785			7,514
Aventura Mall			04/06/08		6.61	%	Fixed	Secured			200,000			66,667
West Town Mall			05/01/08		6.90	%	Fixed	Secured			76,000			38,000
Mall of New Hampshire—1			10/01/08		6.96	%	Fixed	Secured			96,574			47,454
Mall of New Hampshire—2			10/01/08		8.53	%	Fixed	Secured			8,013			3,937
Fashion Valley Mall—1			10/11/08		6.49	%	Fixed	Secured			159,418			79,709
Fashion Valley Mall—2			10/11/08		6.58	%	Fixed	Secured			29,124			14,562
SouthPark Residential			10/31/08		6.72	%	Variable	Secured			12,270			4,908
Whitehall Mall			11/01/08		6.77	%	Fixed	Secured			13,172			5,004
Galleria Commerciali Italia—Facility C			12/22/08		3.92	%	Variable	Unsecured	(13)		89,574			43,891
Source, The			03/11/09		6.65	%	Fixed	Secured			124,000			31,000
Shops at Sunset Place, The	(2)		05/09/09		6.07	%	Variable	Secured			91,691			34,384

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of September 30, 2006
(In thousands)

													The
								Interest					Company’s
		Maturity			Interest			Rate	Secured or		Total		Share of
Property Name		Date			Rate(1)			Type	Unsecured		Indebtedness		Indebtedness
Seminole Towne Center	(2)		07/09/09			5.97	%	Variable	Secured			70,000		31,500
Fashion Centre Pentagon Office	(2)		07/09/09			6.07	%	Variable	Secured			40,000		17,000
Apple Blossom Mall			09/10/09			7.99	%	Fixed	Secured			38,347		18,843
Auburn Mall			09/10/09			7.99	%	Fixed	Secured			44,894		22,060
Toki Premium Outlets			10/30/09			1.13	%	Variable	Secured	(15)		12,410		4,964
Mall at Chestnut Hill			02/02/10			8.45	%	Fixed	Secured			14,221		6,715
Coconut Point	(2)		05/19/10			6.42	%	Variable	Secured			176,695		88,348
Westchester, The			06/01/10			4.86	%	Fixed	Secured			500,000		200,000
Mall of Georgia			07/01/10			7.09	%	Fixed	Secured			192,529		96,265
Lehigh Valley Mall	(2)		08/09/10			5.88	%	Variable	Secured			150,000		56,415
Springfield Mall			12/01/10			6.42	%	Variable	Secured			76,500		29,062
Florida Mall, The			12/10/10			7.55	%	Fixed	Secured			254,981		127,491
Surprise Grand Vista			12/28/10	(19)		10.61	%	Fixed	Secured			247,504		99,002
Domain Residential	(2)		03/03/11			6.47	%	Variable	Secured			12,783		6,392
Atrium at Chestnut Hill			03/11/11			6.89	%	Fixed	Secured			46,192		22,698
Cape Cod Mall			03/11/11			6.80	%	Fixed	Secured			93,864		46,122
Bay 1 (Torcy)			05/31/11			4.12	%	Fixed	Secured	(14)		17,850		8,925
Bay 2 (Torcy)			06/30/11			4.12	%	Fixed	Secured	(14)		66,586		33,293
Highland Mall			07/11/11			6.83	%	Fixed	Secured			67,051		33,526
Villabe A6—Bel’Est			08/31/11			4.42	%	Fixed	Secured	(14)		11,314		5,657
Wilenska Station Shopping Center			08/31/11			4.82	%	Fixed	Secured	(14)		37,982		18,991
Fashion Centre Pentagon Retail			09/11/11			6.63	%	Fixed	Secured			157,477		66,928
Galleria Commerciali Italia—Facility A			12/22/11			4.47	%	Fixed	Secured	(13)		300,605		147,296
Galleria Commerciali Italia—Facility B			12/22/11			4.57	%	Fixed	Secured	(13)		313,825		153,774
Zakopianka Shopping Center			12/28/11			6.60	%	Fixed	Secured	(12)		14,285		7,142
Borek Shopping Center			02/06/12			5.93	%	Fixed	Secured	(12)		15,756		7,878
Dadeland Mall			02/11/12			6.75	%	Fixed	Secured			189,907		94,954
Square One			03/11/12			6.73	%	Fixed	Secured			90,347		44,394
Arkadia Shopping Center			05/31/12			4.37	%	Fixed	Secured	(14)		129,788		64,894
Crystal Mall			09/11/12			5.62	%	Fixed	Secured			100,290		74,785
Emerald Square Mall			03/01/13			5.13	%	Fixed	Secured			137,436		67,533
Avenues, The			04/01/13			5.29	%	Fixed	Secured			75,917		18,979
Circle Centre Mall			04/11/13			5.02	%	Fixed	Secured			75,953		11,142
Solomon Pond			08/01/13			3.97	%	Fixed	Secured			113,682		55,860
Tosu Premium Outlets			08/24/13			2.59	%	Fixed	Secured	(15)		11,585		4,634
Miami International Mall			10/01/13			5.35	%	Fixed	Secured			97,500		46,582
Liberty Tree Mall			10/11/13			5.22	%	Fixed	Secured			35,000		17,198
Northshore Mall			03/11/14			5.03	%	Fixed	Secured			210,000		103,189
Turzyn Shopping Center			06/06/14			6.32	%	Fixed	Secured	(12)		23,219		11,610

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

												The
						Interest						Company’s
	Maturity		Interest			Rate	Secured or		Total			Share of
Property Name	Date		Rate(1)			Type	Unsecured		Indebtedness			Indebtedness
Dabrowka Shopping Center		07/03/14		6.04	%	Fixed	Secured	(12)		4,784			2,392
Gotemba Premium Outlets—Fixed		10/25/14		2.00	%	Fixed	Secured	(15)		9,181			3,672
Rinku Premium Outlets		10/25/14		2.33	%	Fixed	Secured	(15)		33,587			13,435
Indian River Commons		11/01/14		5.21	%	Fixed	Secured			9,645			4,823
Indian River Mall		11/01/14		5.21	%	Fixed	Secured			65,355			32,678
St. Johns Town Center		03/11/15		5.06	%	Fixed	Secured			170,000			85,000
Gaitway Plaza		07/01/15		4.60	%	Fixed	Secured			13,900			3,243
Plaza at Buckland Hills, The		07/01/15		4.60	%	Fixed	Secured			24,800			8,680
Ridgewood Court		07/01/15		4.60	%	Fixed	Secured			14,650			5,128
Village Park Plaza		07/01/15		4.60	%	Fixed	Secured			29,850			10,448
West Town Corners		07/01/15		4.60	%	Fixed	Secured			18,800			4,388
Clay Terrace		10/01/15		5.08	%	Fixed	Secured			115,000			57,500
Houston Galleria—1		12/01/15		5.44	%	Fixed	Secured			643,583			202,632
Houston Galleria—2		12/01/15		5.44	%	Fixed	Secured			177,417			55,860
Smith Haven Mall		03/01/16		5.16	%	Fixed	Secured			180,000			45,000
Quaker Bridge Mall		04/01/16		7.03	%	Fixed	Secured			21,918			8,327
Sano Premium Outlets		05/31/16		2.40	%	Fixed	Secured	(15)		50,688			20,275
Eastland Mall		06/01/16		5.79	%	Fixed	Secured			168,000			84,000
Empire Mall		06/01/16		5.79	%	Fixed	Secured			176,300			88,150
Granite Run Mall		06/01/16		5.83	%	Fixed	Secured			121,534			60,767
Mesa Mall		06/01/16		5.79	%	Fixed	Secured			87,250			43,625
Rushmore Mall		06/01/16		5.79	%	Fixed	Secured			94,000			47,000
Southern Hills Mall		06/01/16		5.79	%	Fixed	Secured			101,500			50,750
Valley Mall		06/01/16		5.83	%	Fixed	Secured			47,319			23,660
Greendale Mall		10/01/16		6.00	%	Fixed	Secured			45,000			22,112
King of Prussia Mall—1		01/01/17		7.49	%	Fixed	Secured			165,466			20,435
King of Prussia Mall—2		01/01/17		8.53	%	Fixed	Secured			11,489			1,419
Total Joint Venture Indebtedness at Face Value										8,169,043			3,528,083
Premium on JV Fixed-Rate Indebtedness										—			—
Discount on JV Fixed-Rate Indebtedness										(2,493	)		(1,224	)
*Total Joint Venture Indebtedness*										8,166,550			3,526,859
*The Company’s Share of Total Indebtedness*													17,581,170

SIMON PROPERTY GROUP
Summary of Indebtedness by Maturity
As of June 30, 2006
(In thousands)

(Footnotes for preceeding pages)

Footnotes:

(1) Variable rate debt interest rates are based on the following base rates as of September 30, 2006: LIBOR at 5.32%; EURIBOR at 3.27%; and YEN LIBOR at .38%.

(2) Includes applicable extensions available at Company’s option.

(3) These two Properties are secured by cross-collateralized and cross-defaulted mortgages.

(4) These three Properties are secured by cross-collateralized and cross-defaulted mortgages.

(5) These three Properties are secured by cross-collateralized and cross-defaulted mortgages.

(6) These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(7) These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(8) These eleven Properties are secured by cross-collateralized and cross-defaulted mortgages.

(9) These four Properties are secured by cross-collateralized and cross-defaulted mortgages.

(10) These eleven Properties are secured by cross-collateralized and cross-defaulted mortgages.

(11) Simultaneous with the issuance of this loan, the Company entered into a $70 million notional amount variable rate swap agreement which is designated as a hedge against this loan. As of September 30, 2006, after including the impacts of this swap, the terms of the loan are effectively $150 million fixed at 3.60% and $70 million variable rate at 5.37%.

(12) Amounts shown in USD Equivalent. Euro equivalent is 45.7 million.

(13) Amounts shown in USD Equivalent. Euro equivalent is 587.3 million. Associated with Facility A and B are interest rate swap agreements with a total combined 484.0 million euros notional amount that effectively fixes Facility A and B at 3.99%.

(14) Amounts shown in USD Equivalent. Euro equivalent is 207.7 million. Associated with these loans are interest rate swap agreements with a total combined 195.9 million euros notional amount that effectively fix these loans at a combined 5.28%.

(15) Amounts shown in USD Equivalent. Yen equivalent is 15,770.5 million.

(16) The Company has $300 million notional amount variable rate swap agreement which is a designated hedge against this unsecured note effectively converting to a six month LIBOR variable rate.

(17) Amounts shown in USD Equivalent. Balance includes borrowings on multi-currency tranche of Yen 1,746.4 million.

(18) Amounts shown in USD Equivalent. Balance includes borrowings on multi-currency tranche of Euro 218.0 million.

(19) Property debt consists of three components; fixed loans at 9.80% and 13.80%, and a variable rate loan at LIBOR plus 500 basis points. The variable component has LIBOR capped at 7.50%, which effectively fixes the three components at a weighted average rate of 10.61%

SIMON PROPERTY GROUP
Unencumbered Assets
As of September 30, 2006

Property Name	City	State
*Regional Malls:*
University Mall	Little Rock	AR
Brea Mall	Brea	CA
Laguna Hills Mall	Laguna Hills	CA
Santa Rosa Plaza	Santa Rosa	CA
Shops at Mission Viejo, The	Mission Viejo	CA
Westminster Mall	Westminster	CA
Town Center at Aurora	Aurora	CO
Boynton Beach Mall	Boynton Beach	FL
Cordova Mall	Pensacola	FL
Edison Mall	Fort Meyers	FL
Gulf View Square	Port Richey	FL
Melbourne Square	Melbourne	FL
Orange Park Mall	Orange Park	FL
Paddock Mall	Ocala	FL
Town Center at Boca Raton	Boca Raton	FL
Treasure Coast Square	Jensen Beach	FL
Tyrone Square	St. Petersburg	FL
University Mall	Pensacola	FL
Lenox Square	Atlanta	GA
Phipps Plaza	Atlanta	GA
Alton Square	Alton	IL
Lincolnwood Town Center	Lincolnwood	IL
Northwoods Shopping Center	Peoria	IL
Orland Square	Orland Park	IL
River Oaks Center	Calumet City	IL
Castleton Square Mall	Indianapolis	IN
Lafayette Square	Indianapolis	IN
Muncie Mall	Muncie	IN
Tippecanoe Mall	Lafayette	IN
Prien Lake Mall	Lake Charles	LA
Burlington Mall	Burlington	MA
South Shore Plaza	Braintree	MA
Bowie Town Center	Bowie	MD
St. Charles Towne Center	Waldorf	MD

SIMON PROPERTY GROUP
Unencumbered Assets
As of September 30, 2006

Property Name	City	State
Maplewood Mall	Minneapolis	MN
Miller Hill Mall	Duluth	MN
Independence Center	Independence	MO
SouthPark	Charlotte	NC
Pheasant Lane	Nashua	NH
Livingston Mall	Livingston	NJ
Menlo Park Mall	Edison	NJ
Ocean County Mall	Toms River	NJ
Rockaway Townsquare	Rockaway	NJ
Cottonwood Mall	Albuquerque	NM
Chautauqua Mall	Lakewood	NY
Nanuet Mall	Nanuet	NY
Jefferson Valley Mall	Yorktown Heights	NY
Roosevelt Field	Garden City	NY
Walt Whitman Mall	Huntington Station	NY
Great Lakes Mall	Mentor	OH
Lima Mall	Lima	OH
Southern Park Mall	Boardman	OH
Summit Mall	Akron	OH
Ross Park Mall	Pittsburgh	PA
South Hills Village	Pittsburgh	PA
Haywood Mall	Greenville	SC
Oak Court Mall	Memphis	TN
Raleigh Springs Mall	Memphis	TN
Barton Creek Square	Austin	TX
Broadway Square	Tyler	TX
Firewheel Town Center	Garland	TX
Irving Mall	Irving	TX
La Plaza Mall	McAllen	TX
North East Mall	Hurst	TX
Richardson Square Mall	Richardson	TX
Rolling Oaks Mall	San Antonio	TX
Charlottesville Fashion Square	Charlottesville	VA
Virginia Center Commons	Glen Allen	VA

SIMON PROPERTY GROUP
Unencumbered Assets
As of September 30, 2006

Property Name	City	State
Columbia Center	Kennewick	WA
Northgate Mall	Seattle	WA
Bay Park Square	Green Bay	WI
*Premium Outlet Centers:*
Camarillo Premium Outlets	Camarillo	CA
Carlsbad Premium Outlets	Carlsbad	CA
Desert Hills Premium Outlets	Cabazon	CA
Folsom Premium Outlets	Folsom	CA
Napa Premium Outlets	Napa	CA
Petaluma Village Premium Outlets	Petaluma	CA
Vacaville Premium Outlets	Vacaville	CA
Clinton Crossing Premium Outlets	Clinton	CT
Orlando Premium Outlets	Orlando	FL
St. Augustine Premium Outlets	St. Augustine	FL
North Georgia Premium Outlets	Dawsonville	GA
Waikele Premium Outlets	Waipahu	HI
Chicago Premium Outlets	Aurora	IL
Edinburgh Premium Outlets	Edinburgh	IN
Wrentham Village Premium Outlets	Wrentham	MA
Albertville Premium Outlets	Albertville	MN
Osage Beach Premium Outlets	Osage Beach	MO
Jackson Premium Outlets	Jackson	NJ
Liberty Village Premium Outlets	Flemington	NJ
Las Vegas Outlet Center	Las Vegas	NV
Las Vegas Premium Outlets	Las Vegas	NV
Woodbury Common Premium Outlets	Central Valley	NY
Aurora Farms Premium Outlets	Aurora	OH
Columbia Gorge Premium Outlets	Troutdale	OR
Allen Premium Outlets	Allen	TX

SIMON PROPERTY GROUP
Unencumbered Assets
As of September 30, 2006

Property Name	City	State
Round Rock Premium Outlets	Austin	TX
Leesburg Corner Premium Outlets	Leesburg	VA
Seattle Premium Outlets	Seattle	WA
Johnson Creek Premium Outlets	Johnson Creek	WI
*Community/Lifestyle Centers:*
Royal Eagle Plaza	Coral Springs	FL
Terrace at Florida Mall	Orlando	FL
Waterford Lakes Town Center	Orlando	FL
Westland Park Plaza	Orange Park	FL
Mall of Georgia Crossing	Atlanta	GA
Countryside Plaza	Countryside	IL
Crystal Court	Crystal Lake	IL
Lake Plaza	Waukegan	IL
North Ridge Plaza	Joliet	IL
Willow Knolls Court	Peoria	IL
Brightwood Plaza	Indianapolis	IN
Greenwood Plus	Greenwood	IN
Griffith Park Plaza	Griffith	IN
Keystone Shoppes	Indianapolis	IN
Markland Plaza	Kokomo	IN
New Castle Plaza	New Castle	IN
Northwood Plaza	Fort Wayne	IN
Teal Plaza	Lafayette	IN
Tippecanoe Plaza	Lafayette	IN
University Center	Mishawaka	IN
Washington Plaza	Indianapolis	IN
Park Plaza	Hopkinsville	KY
Rockaway Convenience Center	Rockaway	NJ
Rockaway Town Plaza	Rockaway	NJ
Cobblestone Court	Victor	NY
Great Lakes Plaza	Mentor	OH
Lima Center	Lima	OH
Northland Plaza	Columbus	OH
Eastland Plaza	Tulsa	OK

SIMON PROPERTY GROUP
Unencumbered Assets
As of September 30, 2006

Property Name	City	State
Lincoln Plaza	Langhorne	PA
Charles Towne Square	Charleston	SC
Knoxville Commons	Knoxville	TN
The Arboretum	Austin	TX
Celina Plaza	El Paso	TX
Wolf Ranch Town Center	Georgetown	TX
Ingram Plaza	San Antonio	TX
Shops at North East Mall	Hurst	TX
Chesapeake Center	Chesapeake	VA
Fairfax Court	Fairfax	VA
Martinsville Plaza	Martinsville	VA
*Other:*
Factory Merchants Branson	Branson	MO
Crossville Outlet Center	Crossville	TN
Factory Stores at North Bend	North Bend	WA

SIMON PROPERTY GROUP
Preferred Stock/Units Outstanding
As of September 30, 2006
($ in 000’s, except per share amounts)

			Per Share			Aggregate
		Number of	Liquidation			Liquidation			Ticker
Issuer	Description	Shares/Units	Preference			Preference			Symbol
Preferred Stock:
Simon Property Group, Inc.	Series F 8.75% Cumulative Redeemable(1)	8,000,000		$	25		$	200,000	SPGPrF
Simon Property Group, Inc.	Series G 7.89% Cumulative Step-Up Premium Rate(2)	3,000,000		$	50		$	150,000	SPGPrG
Simon Property Group, Inc.	Series I 6% Convertible Perpetual Preferred(3)	13,680,678		$	50		$	684,034	SPGPrI
Simon Property Group, Inc.	Series J 8.375% Cumulative Redeemable(4)	796,948		$	50		$	39,847	SPGPrJ
Preferred Units:
Simon Property Group, L.P.	Series C 7% Cumulative Convertible(5)	1,369,108		$	28		$	38,335	N/A
Simon Property Group, L.P.	Series D 8% Cumulative Redeemable(6)	1,425,573		$	30		$	42,767	N/A
Simon Property Group, L.P.	Series I 6% Convertible Perpetual(7)	4,082,665		$	50		$	204,133	N/A
Simon Property Group, L.P.	7.50% Cumulative Redeemable(8)	255,373		$	100		$	25,537	N/A
Simon Property Group, L.P.	7.75%/8.00% Cumulative Redeemable(9)	850,698		$	100		$	85,070	N/A

(1) All outstanding shares were redeemed on October 4, 2006. Prior to redemption, the shares were traded on the New York Stock Exchange and the closing price on September 29, 2006, was $25.00 per share. The Company sold a new issue of preferred stock to an institutional investor in a private transaction and used the proceeds to pay the aggregate redemption price.

(2) The Cumulative Step-Up Premium Rate Preferred Stock was issued at 7.89%. The shares are redeemable after September 30, 2007. Beginning October 1, 2012, the rate increases to 9.89%. The shares are not convertible into any other securities of the Company. The shares are traded on the New York Stock Exchange. The closing price on September 29, 2006 was $51.60 per share.

(3) Each share was convertible into 0.78637 of a share of common stock during the period beginning on July 3, 2006 and ending on September 29, 2006. Each share is convertible into 0.78745 of a share of common stock during the period beginning on October 2, 2006 and ending on December 29, 2006. The shares are redeemable on or after October 14, 2009, in whole or in part, for cash only at a liquidation preference of $50 per share, if the closing price per share of common stock exceeds 130% of the applicable conversion price for 20 trading days within a period of 30 consecutive trading days ending on the trading day before notice of redemption is issued. The shares are traded on the New York Stock Exchange. The closing price on September 29, 2006 was $74.00 per share.

(4) Each share is redeemable on or after October 15, 2027. The shares are traded on the New York Stock Exchange. The closing price on September 29, 2006 was $62.15 per share.

(5) Each unit is convertible into 0.75676 of a share of common stock. Each unit is redeemable on or after August 27, 2009.

(6) Each unit is redeemable on or after August 27, 2009.

(7) Each unit was convertible into 0.78637 of a share of common stock during the period beginning on July 3, 2006 and ending on September 29, 2006. Each unit is convertible into 0.78745 of a share of common stock during the period beginning on October 2, 2006 and ending on December 29, 2006. Each unit may be exchanged for a share of Series I 6% Convertible Perpetual Preferred stock or cash, at Simon Group’s option.

(8) Each unit is redeemable on or after November 10, 2013 or earlier upon the occurrence of certain tax triggering events.

(9) Each unit is redeemable on or after January 1, 2011 or earlier upon the occurrence of certain tax triggering events.

Exhibit 99.2

CONTACTS:
Shelly Doran	317.685.7330	Investors
Les Morris	317.263.7711	Media

FOR IMMEDIATE RELEASE

SIMON PROPERTY GROUP ANNOUNCES THIRD QUARTER RESULTS
AND QUARTERLY DIVIDENDS

Indianapolis, Indiana—October 30, 2006...Simon Property Group, Inc. (the “Company” or “Simon”) (NYSE:SPG) today announced results for the quarter ended September 30, 2006:

· Funds from operations (“FFO”) of the Simon portfolio for the quarter increased 9.4% to $369.5 million from $337.7 million in the third quarter of 2005. On a diluted per share basis the increase was 9.2% to $1.30 from $1.19 in 2005. FFO of the Simon portfolio for the nine months increased 9.5% to $1.087 billion from $992.4 million in 2005. On a diluted per share basis the increase was 9.5% to $3.82 per share from $3.49 per share in 2005.

· Net income available to common stockholders for the quarter increased 27.2% to $94.6 million from $74.4 million in the third quarter of 2005. On a diluted per share basis the increase was 26.5% to $0.43 from $0.34 in 2005. Net income available to common stockholders for the nine months decreased 1.6% to $281.5 million from $286.2 million in 2005. On a diluted per share basis the decrease was 2.3% to $1.27 per share from $1.30 per share in 2005.

“The third quarter of 2006 was a very busy and productive time for us,” said David Simon, Chief Executive Officer. “We completed a $1.1 billion senior unsecured notes offering at favorable rates; successfully opened two new retail projects—one in Poland and one in Austin, Texas; started construction on new projects in Philadelphia, Noblesville, Indiana, Panama City Beach, Florida, and China; moved into our new headquarters building; and generated strong growth in FFO and earnings per share. Strong growth in tenant sales and healthy releasing spreads for both our regional mall and Premium Outlet platforms are driving our results.”

	As of				As of
	September 30, 2006				September 30, 2005				Change
Occupancy
Regional Malls(1)		92.5		%		92.6		%	10 basis point decrease
Premium Outlet® Centers(2)		99.3		%		99.6		%	30 basis point decrease
Community/Lifestyle Centers(2)		90.7		%		91.3		%	60 basis point decrease
Comparable Sales per Sq. Ft.
Regional Malls(3)		$	474			$	445		6.5% increase
Premium Outlet Centers(2)		$	462			$	436		6.0% increase
Community/Lifestyle Centers(2)		$	220			$	221		0.5% decrease
Average Rent per Sq. Ft.
Regional Malls(1)		$	35.23			$	34.30		2.7% increase
Premium Outlet Centers(2)		$	24.05			$	22.99		4.6% increase
Community/Lifestyle Centers(2)		$	11.69			$	11.23		4.1% increase

(1) For mall and freestanding stores.

(2) For all owned gross leasable area (GLA).

(3) For mall and freestanding stores with less than 10,000 square feet.

Dividends

Today the Company announced a quarterly common stock dividend of $0.76 per share. This dividend will be paid on November 30, 2006 to stockholders of record on November 16, 2006.

The Company also declared dividends on its three outstanding public issues of preferred stock:

· 7.89% Series G Cumulative Preferred (NYSE:SPGPrG) dividend of $0.98625 per share is payable on December 29, 2006 to stockholders of record on December 15, 2006.

· 6% Series I Convertible Perpetual Preferred (NYSE:SPGPrI) dividend of $0.75 per share is payable on December 29, 2006 to stockholders of record on December 15, 2006.

· 8 3/8% Series J Cumulative Redeemable Preferred (NYSE:SPGPrJ) dividend of $1.046875 per share is payable on December 29, 2006 to stockholders of record on December 15, 2006.

U.S. Development Activity

On August 3rd, the Company opened Round Rock Premium Outlets in Round Rock, Texas. Located just 20 minutes north of Austin, Round Rock Premium Outlets comprises 432,000 square feet and features 125 designer and name-branded outlet stores. The center opened 97% leased with tenants such as Adidas, AG Adriano Goldschmeid, Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Gap Outlet, J.Crew, Michael Kors, Miss Sixty/Energie, Nike, Polo Ralph Lauren, Puma, Swarovski and Theory.

The Company continues construction on:

· Coconut Point—a 1.2 million square foot open-air town center with village and community center components in Estero/Bonita Springs (Naples-Fort Myers corridor), Florida. The initial tenants in the community center component opened in phases earlier this year and the remainder of the project is scheduled to open on November 10, 2006.

· Rio Grande Valley Premium Outlets—a 404,000 square foot upscale outlet center in Mercedes, Texas. The project is scheduled to open on November 2, 2006.

· The Village at SouthPark—a mixed-use project comprised of residential and retail components located adjacent to Simon’s highly successful SouthPark in Charlotte, North Carolina. Crate & Barrel is scheduled to open in November of 2006, followed by other retail in March of 2007 and the residential component in May 2007.

· The Domain—a 700,000 square foot open-air center in Austin, Texas, anchored by Neiman Marcus and Macy’s and including office, residential and hotel components. The Domain is scheduled to open in March 2007.

· The Shops at Arbor Walk—a 460,000 square foot community center in Austin, Texas anchored by Home Depot. The project will open in phases from November 2006 through March 2007.

The Company commenced construction on three new retail developments during the third quarter:

· Philadelphia Premium Outlets—a 430,000 square foot upscale manufacturers’ outlet center located in Limerick Township, Pennsylvania, just 35 miles northwest of Philadelphia. The center is scheduled to open in November of 2007.

· Hamilton Town Center—a 950,000 square foot open-air retail center located in Noblesville, Indiana. The center is scheduled to open in March of 2008.

· Pier Park—a 920,000 square foot community/lifestyle center located in Panama City Beach, Florida. The center is scheduled to open in March of 2008.

International Activity

On September 28th, our Simon Ivanhoe European joint venture opened Gliwice Shopping Center in Gliwice, Poland. This 380,000 square foot shopping center is anchored by Carrefour and Leroy Merlin and was 95% leased at opening. The Company owns 50% of this asset.

On October 14th, our wholly-owned Chelsea subsidiary opened a 53,000 square foot expansion of Toki Premium Outlets in Toki, Japan. The Company owns 40% of this asset.

On October 26th, Simon Ivanhoe opened the 200,000 square foot expansion of a Carrefour-anchored shopping center in Wasquehal, France. The Company owns 50% of this expansion.

Several international projects are under construction or will begin construction later in 2006:

· Construction continues on four shopping center projects in Italy, fully or partially owned by GCI, the Italian joint venture in which the Company owns a 49% interest. The shopping centers are located in Argine (Naples), Cinisello (Milan), Nola (Naples) and Porta di Roma (Rome). All are expected to open in 2007, with the exception of Argine which is scheduled to open in 2008.

· Yeoju Premium Outlets is a 253,000 square foot upscale outlet center that will serve the greater Seoul, South Korea market. The center is under construction and is scheduled to open in spring 2007. The Company owns 50% of this project.

· Through its wholly-owned Chelsea subsidiary, the Company owns 40% of five Premium Outlet centers in Japan. The Company has announced plans for the development of its sixth Premium Outlet in Japan, Kobe Sanda Premium Outlets. The project is located in the Kobe/Osaka market, 22 miles north of downtown Kobe. Construction on the 185,000 square foot first phase is expected to commence in November of 2006 for a projected summer 2007 opening.

· Construction has commenced on four projects in China—Changshu, Hangzhou and Zhengzhou, scheduled to open in 2008, and Suzhou, scheduled to open in 2009. All centers will be anchored by Wal-Mart. Simon owns 32.5% of these projects through its partnership with Morgan Stanley Real Estate Fund and Shenzhen International Trust and Investment Company CP.

Disposition Activity

On July 27th, the Company sold Wabash Village, a 124,000 square foot community center in West Lafayette, Indiana. Trolley Square, a 225,000 square foot mall in Salt Lake City, Utah, was sold on August 3rd.

Financing Activity

On August 29th, the Company announced the closing of an offering of $1.1 billion of senior notes by its operating partnership subsidiary, Simon Property Group, L.P. (the “Operating Partnership”). The

offering consisted of $600 million of 5.60% notes due 2011 and $500 million of 5.875% notes due 2017. The Operating Partnership used the proceeds to reduce the outstanding balance of its unsecured corporate credit facility.

The Company also reported that the Operating Partnership settled certain forward-starting interest rate swap contracts concurrently with the pricing of the notes. If the impact of these settlements were applied to the notes, the effective interest rate of the 2011 notes and the 2017 notes would be 5.63% and 5.96%, respectively, and 5.78% on a blended basis, over the 7.5 year weighted average maturity of all the notes.

On October 4th, the Company announced the completion of the redemption of all 8,000,000 of the outstanding shares of its 8 ¾% Series F Cumulative Redeemable Preferred Stock (NYSE: SPGPrF) (CUSIP 828806604). The Series F Preferred Stock was redeemed at a redemption price of $25.00 per share plus accrued and unpaid distributions to the redemption date, or a total of $25.01823 per share. The Company sold a new issue of preferred stock to an institutional investor in a private transaction and used the proceeds to pay the aggregate redemption price.

The Company will record a $7.0 million charge to net income related to this redemption during the fourth quarter of 2006, impacting both diluted earnings and diluted funds from operations by approximately $0.02 per share. This charge represents the difference between the carrying value of the Series F Preferred Stock and the liquidation value of $25 per Series F Preferred share.

2006 Guidance

Today the Company increased its guidance for 2006 FFO to $5.36 per share, consistent with the current Wall Street consensus estimate. Current FFO guidance is three cents higher than the mid point of the range reported by the Company on July 31, 2006, and it includes a charge of two cents per share related to the Company’s October preferred stock redemption described above. The Company’s current guidance for diluted net income available to common stockholders is $1.89 per share.

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

For the year ending December 31, 2006
Estimated diluted net income available to common stockholders per share	$	1.89	*
Depreciation and amortization including our share of joint ventures	3.73
Gain on sales of real estate, discontinued operations and interests in unconsolidated entities	(0.18		)
Impact of additional dilutive securities	(0.08		)
Estimated diluted FFO per share	$	5.36

* Includes a charge of $0.02 in the fourth quarter of 2006 related to the Company’s redemption of its Series F Preferred Stock.

Conference Call

The Company will provide an online simulcast of its quarterly conference call at www.simon.com (Investor Relations section), www.earnings.com, and www.streetevents.com. To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 10:00 a.m. Eastern Standard Time tomorrow, October 31, 2006. An online replay will be available for approximately 90 days at www.simon.com, www.earnings.com, and www.streetevents.com. A fully searchable podcast of the conference call will also be available at www.REITcafe.com shortly after completion of the call.

Supplemental Materials

The Company will publish a supplemental information package which will be available at www.simon.com in the Investor Relations section, Financial Information tab. It will also be furnished to the SEC as part of a current report on Form 8-K. If you wish to receive a copy via mail or email, please call 800-461-3439.

Forward-Looking Statements

Certain statements made in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that our expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to: the Company’s ability to meet debt service requirements, the availability of financing, changes in the Company’s credit rating, changes in market rates of interest and foreign exchange rates for foreign currencies, the ability to hedge interest rate risk, risks associated with the acquisition, development and expansion of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic climates, changes in market rental rates, trends in the retail industry, relationships with anchor tenants, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks relating to joint venture properties, costs of common area maintenance, competitive market forces, risks related to international activities, insurance costs and coverage, impact of terrorist activities, inflation and maintenance of REIT status. The Company discusses these and other risks and uncertainties under the heading “Risk Factors” in its most recent Annual Report on Form 10-K that could cause the Company’s actual results to differ materially from the forward-looking statements that the Company makes. The Company may update that discussion in subsequent quarterly reports, but otherwise the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

Funds from Operations (“FFO”)

The Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States (“GAAP”). The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of real estate investment trusts (“REITs”) and provides a relevant basis for comparison among REITs. A reconciliation of GAAP reported net income to FFO is provided in the financial statement section of this press release.

About Simon

Simon Property Group, Inc., an S&P 500 company headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet® centers and community/lifestyle centers. The Company’s current total market capitalization is approximately $46 billion. Through its subsidiary partnership, it currently owns or has an interest in 284 properties in the United States containing an aggregate of approximately 200 million square feet of gross leasable area in 38 states plus Puerto Rico. Simon also owns interests in 53 European shopping centers in France, Italy, and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico. Additional Simon Property Group information is available at www.simon.com. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG.

SIMON
Consolidated Statements of Operations
Unaudited
(In thousands)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2006			2005			2006			2005
REVENUE:
Minimum rent	$	500,589		$	475,912		$	1,474,503		$	1,406,461
Overage rent	21,931			18,484			53,287			46,276
Tenant reimbursements	233,278			225,973			681,090			648,926
Management fees and other revenues	20,780			19,746			60,348			56,931
Other income	42,158			42,894			135,895			118,469
Total revenue	818,736			783,009			2,405,123			2,277,063
EXPENSES:
Property operating	118,185			115,742			331,389			315,827
Depreciation and amortization	211,390			203,022			632,200			617,814
Real estate taxes	73,427			74,558			225,636			217,175
Repairs and maintenance	23,910			22,637			74,704			75,250
Advertising and promotion	17,718			20,974			55,661			57,736
Provision for credit losses	393			2,727			4,853			3,331
Home and regional office costs	32,703			27,068			95,691			85,060
General and administrative	4,422			4,993			13,920			13,239
Other	15,264			12,450			40,492			34,375
Total operating expenses	497,412			484,171			1,474,546			1,419,807
OPERATING INCOME	321,324			298,838			930,577			857,256
Interest expense	206,195			201,150			611,010			594,136
Income before minority interest	115,129			97,688			319,567			263,120
Minority interest	(3,154		)	(3,174		)	(7,512		)	(8,734		)
Income tax expense of taxable REIT subsidiaries	(2,536		)	(3,796		)	(7,395		)	(11,216		)
Income before unconsolidated entities	109,439			90,718			304,660			243,170
Income from unconsolidated entities and beneficial interests	25,898			18,662			75,703			51,045
Gain (loss) on sales of assets and interests in unconsolidated entities, net	9,457			(55		)	51,406			12,552
Income from continuing operations	144,794			109,325			431,769			306,767
Results of operations from discontinued operations	56			4,695			112			8,110
Gain on disposal or sale of discontinued operations, net	—			5,605			84			125,385
Income before allocation to limited partners	144,850			119,625			431,965			440,262
LESS:
Limited partners’ interest in the Operating Partnership	24,962			19,860			74,470			77,541
Preferred distributions of the Operating Partnership	6,893			6,882			20,647			21,156
NET INCOME	112,995			92,883			336,848			341,565
Preferred dividends	(18,403		)	(18,525		)	(55,371		)	(55,329		)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	94,592		$	74,358		$	281,477		$	286,236

SIMON
Per Share Data
Unaudited

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2006			2005		2006			2005
Basic Earnings Per Common Share:
Income from continuing operations	$	0.43		$	0.30	$	1.27		$	0.82
Discontinued operations—results of operations and gain on disposal or sale, net	—			0.04		—			0.48
Net income available to common stockholders	$	0.43		$	0.34	$	1.27		$	1.30
Percentage Change	26.5		%			-2.3		%
Diluted Earnings Per Common Share:
Income from continuing operations	$	0.43		$	0.30	$	1.27		$	0.83
Discontinued operations—results of operations and gain on disposal or sale, net	—			0.04		—			0.47
Net income available to common stockholders	$	0.43		$	0.34	$	1.27		$	1.30
Percentage Change	26.5		%			-2.3		%

SIMON
Consolidated Balance Sheets
Unaudited
(In thousands, except as noted)

	September 30, 2006			December 31, 2005
ASSETS:
Investment properties, at cost	$	22,227,899		$	21,745,309
Less—accumulated depreciation	4,348,676			3,809,293
	17,879,223			17,936,016
Cash and cash equivalents	322,952			337,048
Tenant receivables and accrued revenue, net	312,948			357,079
Investment in unconsolidated entities, at equity	1,492,522			1,562,595
Deferred costs and other assets	995,973			938,301
Total assets	$	21,003,618		$	21,131,039
LIABILITIES:
Mortgages and other indebtedness	$	14,241,941		$	14,106,117
Accounts payable, accrued expenses, intangibles, and deferred revenue	1,036,219			1,092,334
Cash distributions and losses in partnerships and joint ventures, at equity	233,902			194,476
Other liabilities, minority interest and accrued dividends	179,731			163,524
Total liabilities	15,691,793			15,556,451
COMMITMENTS AND CONTINGENCIES
LIMITED PARTNERS’ INTEREST IN THE OPERATING PARTNERSHIP	811,990			865,565
LIMITED PARTNERS’ PREFERRED INTEREST IN THE OPERATING PARTNERSHIP	395,843			401,727
STOCKHOLDERS’ EQUITY
CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock):
All series of preferred stock, 100,000,000 shares authorized, 25,477,626 and 25,632,122 issued and outstanding, respectively, and with liquidation values of $1,073,881 and $1,081,606, respectively	1,072,252			1,080,022
Common stock, $.0001 par value, 400,000,000 shares authorized, 225,657,388 and 225,165,236 issued and outstanding, respectively	23			23
Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding	—			—
Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding	—			—
Capital in excess of par value	4,985,389			4,998,723
Accumulated deficit	(1,777,373		)	(1,551,179		)
Accumulated other comprehensive income	17,377			9,793
Common stock held in treasury at cost, 4,379,245 and 4,815,655 shares, respectively	(193,676		)	(230,086		)
Total stockholders’ equity	4,103,992			4,307,296
Total liabilities and stockholders’ equity	$	21,003,618		$	21,131,039

SIMON
Joint Venture Statements of Operations
Unaudited
(In thousands)

	For the Three Months Ended								For the Nine Months Ended
	September 30,								September 30,
	2006				2005				2006			2005
REVENUE:
Minimum rent		$	276,572			$	262,663		$	813,217		$	774,671
Overage rent		19,621				17,074			52,312			48,677
Tenant reimbursements		143,194				134,384			405,910			390,522
Other income		41,071				38,843			110,842			96,188
Total revenue		480,458				452,964			1,382,281			1,310,058
EXPENSES:
Property operating		103,044				100,477			280,263			271,796
Depreciation and amortization		82,840				81,546			241,959			241,036
Real estate taxes		35,265				33,186			102,654			98,477
Repairs and maintenance		20,678				19,088			62,402			58,559
Advertising and promotion		11,594				7,956			26,309			23,780
Provision for credit losses		2,425				2,679			4,087			7,769
Other		26,414				29,136			86,884			82,818
Total operating expenses		282,260				274,068			804,558			784,235
OPERATING INCOME		198,198				178,896			577,723			525,823
Interest expense		113,400				103,438			331,028			298,162
Income Before Gain on Sale of Asset		84,798				75,458			246,695			227,661
Gain on sale of asset		—				—			94			—
Income Before Unconsolidated Entities		84,798				75,458			246,789			227,661
Income (loss) from unconsolidated entities		480				—			719			(1,892		)
Income from Continuing Operations		85,278				75,458			247,508			225,769
Income (loss) from discontinued joint venture interests (B)		129				(1,025		)	631			(887		)
Gain (loss) on disposal or sale of discontinued operations, net		(329		)(C)		—			20,375		(C)	98,359		(D)
NET INCOME		$	85,078			$	74,433		$	268,514		$	323,241
Third-party investors’ share of net income		$	51,049			$	45,578		$	160,488		$	186,617
Our share of net income		34,029				28,855			108,026			136,624
Amortization of excess investment		(12,164		)		(10,221		)	(37,056		)	(36,400		)
Income from Beneficial Interests		4,033				—			15,309		(A)	—
Write-off of investment related to properties sold		135		(C)		14			(2,842		)(C)	(37,764		)(D)
Our share of net gain related to properties sold		(135		)(C)		14			(7,734		)(C)	(11,415		)(D)
Income from unconsolidated entities and beneficial interests		$	25,898			$	18,662		$	75,703		$	51,045

SIMON
Joint Venture Balance Sheets
Unaudited
(In thousands)

	September 30,		December 31,
	2006		2005
ASSETS:
Investment properties, at cost	$	10,565,734		$	9,915,521
Less—accumulated depreciation	2,191,105			1,951,749
	8,374,629			7,963,772
Cash and cash equivalents	379,053			334,714
Tenant receivables	235,336			207,153
Investment in unconsolidated entities	184,570			135,914
Deferred costs and other assets	325,337			304,825
Total assets	$	9,498,925		$	8,946,378
LIABILITIES AND PARTNERS’ EQUITY:
Mortgages and other indebtedness	$	8,166,550		$	7,479,359
Accounts payable, accrued expenses and deferred revenue	495,539			403,390
Other liabilities	227,673			189,722
Total liabilities	8,889,762			8,072,471
Preferred units	67,450			67,450
Partners’ equity	541,713			806,457
Total liabilities and partners’ equity	$	9,498,925		$	8,946,378
Our Share of:
Total assets	$	4,090,724		$	3,765,258
Partners’ equity	360,992			429,942
Add: Excess Investment(E)	897,628			938,177
Our net investment in joint ventures	$	1,258,620		$	1,368,119
Mortgages and other indebtedness	$	3,526,859		$	3,169,662

SIMON
Footnotes to Financial Statements
Unaudited

Notes:

(B) Discontinued joint venture interests represent those assets and partnership interests that have been sold.

(D) On January 11, 2005, Metrocenter, a regional mall in Phoenix, Arizona was sold.

(E) Excess investment represents the unamortized difference of the Company’s investment over equity in the underlying net assets of the partnerships and joint ventures. The Company generally amortizes excess investment over the life of the related properties, typically no greater than 40 years, and the amortization is included in income from unconsolidated entities.

SIMON
Reconciliation of Net Income to FFO (1)
Unaudited
(In thousands, except as noted)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2006			2005			2006			2005
Net Income(2)(3)(4)(5)	$	112,995		$	92,883		$	336,848		$	341,565
Adjustments to Net Income to Arrive at FFO:
Limited partners’ interest in the Operating Partnership and preferred distributions of the Operating Partnership	31,855			26,742			95,117			98,697
Depreciation and amortization from consolidated properties, beneficial interests and discontinued operations	209,023			202,021			633,013			619,597
Simon’s share of depreciation and amortization from unconsolidated entities	52,477			49,136			155,555			152,434
Tax provision related to sale	—			—			—			1,533
Gain on sales of real estate, discontinued operations and interests in unconsolidated entities	(9,457		)	(5,550		)	(51,490		)	(137,937		)
Minority interest portion of depreciation and amortization	(2,091		)	(2,152		)	(6,222		)	(6,993		)
Preferred distributions and dividends	(25,296		)	(25,407		)	(76,018		)	(76,485		)
FFO of the Simon Portfolio	$	369,506		$	337,673		$	1,086,803		$	992,411
Per Share Reconciliation:
Diluted net income available to common stockholders per share	$	0.43		$	0.34		$	1.27		$	1.30
Adjustments to net income to arrive at FFO:
Depreciation and amortization from consolidated properties and beneficial interests, and the Company’s share of depreciation and amortization from unconsolidated entities, net of minority interest portion of depreciation and amortization	0.92			0.89			2.80			2.72
Gain on sales of real estate, discontinued operations and interests in unconsolidated entities	(0.03		)	(0.02		)	(0.18		)	(0.49		)
Tax provision related to sale	—			—			—			0.01
Impact of additional dilutive securities for FFO per share	(0.02		)	(0.02		)	(0.07		)	(0.05		)
Diluted FFO per share	$	1.30		$	1.19		$	3.82		$	3.49

Details for per share calculations:
FFO of the Simon Portfolio	$	369,506		$	337,673		$	1,086,803		$	992,411
Adjustments for dilution calculation:
Impact of preferred stock and preferred unit conversions and option exercises (6)	14,092			14,203			42,407			42,624
Diluted FFO of the Simon Portfolio	383,598			351,876			1,129,210			1,035,035
Diluted FFO allocable to unitholders	(75,785		)	(70,378		)	(223,432		)	(208,627		)
Diluted FFO allocable to common stockholders	$	307,813		$	281,498		$	905,778		$	826,408
Basic weighted average shares outstanding	221,198			220,559			220,925			220,391
Adjustments for dilution calculation:
Effect of stock options	872			932			911			907
Impact of Series C preferred unit conversion	1,041			1,068			1,050			1,092
Impact of Series I preferred unit conversion	3,261			3,335			3,270			3,395
Impact of Series I preferred stock conversion	10,724			10,771			10,796			10,711
Diluted weighted average shares outstanding	237,096			236,665			236,952			236,496
Weighted average limited partnership units outstanding	58,375			59,169			58,450			59,704
Diluted weighted average shares and units outstanding	295,471			295,834			295,402			296,200
Basic FFO per share	$	1.32		$	1.21		$	3.89		$	3.54
Percent Increase	9.1		%				9.9		%
Diluted FFO per share	$	1.30		$	1.19		$	3.82		$	3.49
Percent Increase	9.2		%				9.5		%

SIMON
Footnotes to Reconciliation of Net Income to FFO
Unaudited

Notes:
(1)		The Company considers FFO a key measure of its operating performance that is not specifically defined by GAAP and believes that FFO is helpful to investors because it is a widely recognized measure of the performance of REITs and provides a relevant basis for comparison among REITs. The Company also uses this measure internally to measure the operating performance of the portfolio. The Company’s computation of FFO may not be comparable to FFO reported by other REITs.
		As defined by NAREIT, FFO is consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sales of real estate, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. The Company has adopted NAREIT’s clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting change or resulting from the sale of depreciable real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.
(2)		Includes the Company’s share of gains on land sales of $8.3 million and $7.4 million for the three months ended September 30, 2006 and 2005, respectively, and $34.6 million and $25.3 million for the nine months ended September 30, 2006 and 2005, respectively.
(3)		Includes the Company’s share of straight-line adjustments to minimum rent of $7.8 million and $6.2 million for the three months ended September 30, 2006 and 2005, respectively, and $13.1 million and $15.7 million for the nine months ended September 30, 2006 and 2005, respectively.
(4)		Includes the Company’s share of the fair market value of leases from acquisitions of $17.4 million and $14.1 million for the three months ended September 30, 2006 and 2005, respectively, and $52.6 million and $41.2 million for the nine months ended September 30, 2006 and 2005, respectively.
(5)		Includes the Company’s share of debt premium amortization of $9.4 million and $6.5 million for the three months ended September 30, 2006 and 2005, respectively, and $22.8 million and $22.7 million for the nine months ended September 30, 2006 and 2005, respectively.
(6)		Includes dividends and distributions of Series I preferred stock and Series C and Series I preferred units.