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TABLE OF CONTENTS
Part IV

Table of Contents

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



FORM 10-K

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

For the fiscal year ended December 31, 2010



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

Delaware
(State or other jurisdiction of
incorporation or organization)
  333-11491
(Commission File No.)
  34-1755769
(I.R.S. Employer
Identification No.)

225 West Washington Street
Indianapolis, Indiana 46204
(Address of principal executive offices) (ZIP Code)

(317) 636-1600
(Registrant's telephone number, including area code)

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

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



            Indicate by check mark if the Registrant is a well-known seasoned issuer (as defined in Rule 405 of the Securities Act). Yes ý    No o

            Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o    No ý

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

            Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o    No o

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

            Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o   Accelerated filer o   Non-accelerated filer ý
(Do not check if a smaller
reporting company)
  Smaller reporting company o

            Indicate by checkmark whether the Registrant is a shell company (as defined in rule 12-b of the Act). Yes o    No ý

Registrant had no publicly-traded voting equity as of June 30, 2010.

            Registrant has no common stock outstanding.



Documents Incorporated By Reference

            None.


Table of Contents


Simon Property Group, L.P. and Subsidiaries
Annual Report on Form 10-K
December 31, 2010

TABLE OF CONTENTS

Item No.    
  Page No.
Part I

1.

 

Business

 

3
1A.   Risk Factors   7
1B.   Unresolved Staff Comments   11
2.   Properties   12
3.   Legal Proceedings   43
4.   [Removed and Reserved.]   43

Part II

5.

 

Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

 

44
6.   Selected Financial Data   45
7.   Management's Discussion and Analysis of Financial Condition and Results of Operations   46
7A.   Quantitative and Qualitative Disclosure About Market Risk   61
8.   Financial Statements and Supplementary Data   61
9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure   61
9A.   Controls and Procedures   62
9B.   Other Information   63

Part III

10.

 

Directors, Executive Officers and Corporate Governance

 

64
11.   Executive Compensation   64
12.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters   64
13.   Certain Relationships and Related Transactions and Director Independence   64
14.   Principal Accountant Fees and Services   64

Part IV

15.

 

Exhibits, and Financial Statement Schedules

 

65

Signatures

 

102

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Part I

Item 1.    Business

            Simon Property Group, L.P., is a Delaware limited partnership and the majority-owned subsidiary of Simon Property Group, Inc. In this report, the terms "Operating Partnership", "we", "us" and "our" refer to Simon Property Group, L.P. and its subsidiaries and the term "Simon Property" refers specifically to Simon Property Group, Inc.

            We own, develop and manage retail real estate properties, which consist primarily of regional malls, Premium Outlets®, The Mills®, and community/lifestyle centers. As of December 31, 2010, we owned or held an interest in 338 income-producing properties in the United States, which consisted of 161 regional malls, 58 Premium Outlets, 66 community/lifestyle centers, 36 properties acquired in the 2007 acquisition of The Mills Corporation and 17 other shopping centers or outlet centers in 41 states and Puerto Rico. Of the 36 properties in The Mills portfolio, 16 of these properties are The Mills, 16 are regional malls, and four are community centers. Internationally, as of December 31, 2010, we had ownership interests in 45 European shopping centers in Italy, eight Premium Outlets in Japan, one Premium Outlet in Mexico, and one Premium Outlet in South Korea. On July 15, 2010, we and our joint venture partner sold our collective interests in Simon Ivanhoe S.à.r.l., or Simon Ivanhoe, which owned seven shopping centers located in France and Poland.

            For a description of our operational strategies and developments in our business during 2010, see the "Management's Discussion and Analysis of Financial Condition and Results of Operations" which appears in Item 7 to this Form 10-K.

Other Policies

            The following is a discussion of our investment policies, financing policies, conflict of interest policies and policies with respect to certain other activities. One or more of these policies may be amended or rescinded from time to time by Simon Property without a vote by our limited partners.

            While we emphasize equity real estate investments, we may invest in equity or debt securities of other entities engaged in real estate activities or securities of other issuers consistent with Simon Property's qualification as a real estate investment trust, or REIT. However, any of these investments would be subject to the percentage ownership limitations and gross income tests necessary for REIT qualification. These REIT limitations mean that we cannot make an investment that would cause Simon Property's real estate assets to be less than 75% of its total assets. In addition, at least 75% of Simon Property's gross income must be derived directly or indirectly from investments relating to real property or mortgages on real property, including "rents from real property," dividends from other REITs and, in certain circumstances, interest from certain types of temporary investments. At least 95% of Simon Property's income must be derived from such real property investments, and from dividends, interest and gains from the sale or dispositions of stock or securities or from other combinations of the foregoing.

            Subject to REIT limitations, we may invest in the securities of other issuers in connection with acquisitions of indirect interests in real estate. Such an investment would normally be in the form of general or limited partnership or membership interests in special purpose partnerships and limited liability companies that own one or more properties. We may, in the future, acquire all or substantially all of the securities or assets of other REITs, management companies or similar entities where such investments would be consistent with our investment policies.

            We must comply with the covenants contained in our financing agreements that limit our ratio of debt to total assets or market value, as defined. For example, our lines of credit and the indentures for our debt securities contain covenants that restrict the total amount of debt to 65%, or 60% in relation to certain debt, of total assets, as defined under the related arrangement, and secured debt to 50% of total assets. In addition, these agreements contain other covenants requiring compliance with financial ratios. Furthermore, the amount of debt that we may incur is limited as a practical matter by our desire to maintain acceptable ratings for Simon Property's equity securities and our debt securities. We strive to maintain investment grade ratings on our debt securities at all times, but we cannot assure you that we will be able to do so.

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            We may raise additional capital by issuing units of limited partnership interests, or units, or debt securities, creating joint ventures with existing ownership interests in properties, retaining cash flows or a combination of these methods. If Simon Property's Board of Directors determines to raise additional equity capital at the Operating Partnership level, we may, without limited partner approval, issue additional units or other equity interests in us. We may issue units in any manner and on such terms and for such consideration as we deem appropriate. This may include issuing units in exchange for property. We may issue preferred units that could be senior to our units and may be convertible into units. Existing holders of units have no preemptive right to purchase units in any subsequent offerings. Any such offering could dilute a limited partner's investment in us.

            We expect most future borrowings would be made in the form of bank borrowings, publicly and privately placed debt instruments, or purchase money obligations to the sellers of properties. Any such indebtedness may be secured or unsecured. Any such indebtedness may also have full or limited recourse to the borrower or cross-collateralized with other debt, or may be fully or partially guaranteed by us. Although we may borrow to fund the payment of distributions, we currently have no expectation that we will regularly be required to do so.

            We have a $3.9 billion unsecured revolving credit facility, or the Credit Facility. The Credit Facility has an accordion feature allowing the maximum borrowing capacity to expand to $4.0 billion. We also issue debt securities, and we may issue our debt securities which may be convertible into units, preferred units or be accompanied by warrants to purchase equity interests or be exchangeable for stock of Simon Property. We also may sell or securitize our lease receivables. The proceeds from any borrowings or financings may be used for one or more of the following:

            We may also finance acquisitions through the following:

            Our ability to issue units to transferors of properties or other partnership interests may defer gain recognition for tax purposes by the transferor. It may also be advantageous for us since there are ownership limits that restrict the number of units that investors may own.

            We do not have a policy limiting the number or amount of mortgages that may be placed on any particular property. Mortgage financing instruments, however, usually limit additional indebtedness on such properties. We also have covenants on our unsecured debt that limit our total secured debt.

            Typically, we invest in or form special purpose entities to assist us in obtaining permanent financing at attractive terms. Permanent financing may be structured as a mortgage loan on a single property, or on a group of properties, and generally requires us to provide a mortgage interest on the property in favor of an institutional third party, as a joint venture with a third party, or as a securitized financing. For securitized financings, we create special purpose entities to own the properties. These special purpose entities, which are common in the real estate industry, are structured so that they would not be consolidated in a bankruptcy proceeding involving a parent company. We decide upon the structure of the financing based upon the best terms then available to us and whether the proposed financing is consistent with our other business objectives. For accounting purposes, we include the outstanding securitized debt of special purpose entities owning consolidated properties as part of our consolidated indebtedness.

            We maintain policies and have entered into agreements designed to reduce or eliminate potential conflicts of interest. Simon Property has adopted governance principles governing the function, conduct, selection, orientation and duties of its subsidiaries and the Simon Property Board of Directors, as well as written charters for each of the standing Committees of the Board of Directors. In addition, the Board of Directors of Simon Property has a Code of Business Conduct and Ethics, which applies to all of its officers, directors, and employees. At least a majority of the members of the Simon Property Board of Directors must qualify as independent under the listing standards for New York Stock Exchange companies and cannot be affiliated with the Simon family who are significant stockholders. Any transaction

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between us and the Simons, including property acquisitions, service and property management agreements and retail space leases, must be approved by a majority of Simon Property's non-affiliated directors.

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

            We intend to make investments which are consistent with Simon Property's qualification as a REIT; unless the Board of Directors determines that it is no longer in Simon Property's best interests to so qualify as a REIT. The Board of Directors may make such a determination because of changing circumstances or changes in the REIT requirements. We have authority to offer units of equity interest or other securities in exchange for property. We also have authority to repurchase or otherwise reacquire our units or any other securities. Our policy prohibits us from making any loans to the directors or executive officers of Simon Property for any purpose. We may make loans to the joint ventures in which we participate.

Competition

            The retail industry is dynamic and competitive. We compete with numerous merchandise distribution channels including regional malls, outlet centers, community/lifestyle centers, and other shopping centers in the United States and abroad. Internet retailing sites and catalogs also provide retailers with distribution options beyond existing brick and mortar retail properties. The existence of competitive alternatives could have a material adverse effect on our ability to lease space and on the level of rents we can obtain. This results in competition for both the tenants to occupy the properties that we develop and manage as well as for the acquisition of prime sites (including land for development and operating properties). We believe that there are numerous factors that make our properties highly desirable to retailers including:

Certain Activities

            During the past three years, we have:

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Employees

            At December 31, 2010, we and our affiliates employed approximately 5,900 persons at various properties and offices throughout the United States, of which approximately 2,400 were part-time. Approximately 1,000 of these employees were located at our corporate headquarters in Indianapolis, Indiana and 100 were located at our Premium Outlets offices in Roseland, New Jersey.

Corporate Headquarters

            Our corporate headquarters are located at 225 West Washington Street, Indianapolis, Indiana 46204, and our telephone number is (317) 636-1600.

Available Information

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

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Item 1A.    Risk Factors

            The following factors, among others, could cause our actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K and presented elsewhere by our management from time to time. These factors, among others, may have a material adverse effect on our business, financial condition, operating results and cash flows, and you should carefully consider them. It is not possible to predict or identify all such factors. You should not consider this list to be a complete statement of all potential risks or uncertainties and we may update them in our future periodic reports.

Risks Relating to Debt and the Financial Markets

            As of December 31, 2010, our consolidated mortgages and other indebtedness, excluding the related premium and discount, totaled $17.5 billion. We are subject to the risks normally associated with debt financing, including the risk that our cash flow from operations will be insufficient to meet required debt service. Our debt service costs generally will not be reduced if developments at the property, such as the entry of new competitors or the loss of major tenants, cause a reduction in the income from the property. Should such events occur, our operations may be adversely affected. If a property is mortgaged to secure payment of indebtedness and income from this is insufficient to pay that indebtedness, the property could be foreclosed upon by the mortgagee resulting in a loss of income and a decline in our total asset value.

            We depend primarily on external financings, principally debt financings, to fund the growth of our business and to ensure that we can meet ongoing maturities of our outstanding debt. Our access to financing depends on our credit rating, the willingness of banks to lend to us and conditions in the capital markets. We cannot assure you that we will be able to obtain the financing we need for future growth or to meet our debt service as obligations mature, or that the financing available to us will be on acceptable terms.

            Our outstanding senior unsecured notes and the preferred stock of Simon Property are periodically rated by nationally recognized credit rating agencies. The credit ratings are based on our operating performance, liquidity and leverage ratios, overall financial position, and other factors viewed by the credit rating agencies as relevant to our industry and the economic outlook in general. Our credit ratings can also affect the amount of capital we can access, as well as the terms of any financing we obtain. Since we depend primarily on debt financing to fund our growth, adverse changes in our credit rating could have a negative effect on our future growth.

            We manage our exposure to interest rate risk by a combination of interest rate protection agreements to effectively fix or cap a portion of our variable rate debt. In addition, we refinance fixed rate debt at times when we believe rates and terms are appropriate. Our efforts to manage these exposures may not be successful.

            Our use of interest rate hedging arrangements to manage risk associated with interest rate volatility may expose us to additional risks, including a risk that a counterparty to a hedging arrangement may fail to honor its obligations. Developing an effective interest rate risk strategy is complex and no strategy can completely insulate us from risks associated with interest rate fluctuations. There can be no assurance that our hedging activities will have the desired beneficial impact on our results of operations or financial condition. Termination of these hedging agreements typically involves costs, such as transaction fees or breakage costs.

Factors Affecting Real Estate Investments and Operations

            We regularly acquire and develop new properties and expand and redevelop existing properties, and these activities are subject to various risks. We may not be successful in pursuing acquisition, development or redevelopment/expansion opportunities. In addition, newly acquired, developed or redeveloped/expanded properties may not perform

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as well as expected. We are subject to other risks in connection with any acquisition, development and redevelopment/expansion activities, including the following:

            If a development or redevelopment/expansion project is unsuccessful, either because it is not meeting our expectations when operational or was not completed according to the project planning, we could lose our investment in the project. Further, if we guarantee the property's financing, our loss could exceed our investment in the project.

            Our properties represent a substantial portion of our total consolidated assets. These investments are relatively illiquid. As a result, our ability to sell one or more of our properties or investments in real estate in response to any changes in economic or other conditions is limited. If we want to sell a property, we cannot assure you that we will be able to dispose of it in the desired time period or that the sales price of a property will exceed the cost of our investment.

Environmental Risks

            Federal, state and local laws and regulations relating to the protection of the environment may require us, as a current or previous owner or operator of real property, to investigate and clean up hazardous or toxic substances or petroleum product releases at a property or at impacted neighboring properties. These laws often impose liability regardless of whether the property owner or operator knew of, or was responsible for, the presence of hazardous or toxic substances. These laws and regulations may require the abatement or removal of asbestos containing materials in the event of damage, demolition or renovation, reconstruction or expansion of a property and also govern emissions of and exposure to asbestos fibers in the air. Those laws and regulations also govern the installation, maintenance and removal of underground storage tanks used to store waste oils or other petroleum products. Many of our properties contain, or at one time contained, asbestos containing materials or underground storage tanks (primarily related to auto service center establishments or emergency electrical generation equipment). The costs of investigation, removal or remediation of hazardous or toxic substances may be substantial and could adversely affect our results of operations or financial condition but is not estimable. The presence of contamination, or the failure to remediate contamination, may also adversely affect our ability to sell, lease or redevelop a property or to borrow using a property as collateral.

            Although we believe that our portfolio is in substantial compliance with Federal, state and local environmental laws, ordinances and regulations regarding hazardous or toxic substances, this belief is based on limited testing. Nearly all of our properties have been subjected to Phase I or similar environmental audits. These environmental audits have not revealed, nor are we aware of, any environmental liability that we believe will have a material adverse effect on our results of operations or financial condition. However, we cannot assure you that:

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Retail Operations Risks

            Our concentration in the retail real estate market means that we are subject to the risks that affect the retail environment generally, including the levels of consumer spending, seasonality, the willingness of retailers to lease space in our shopping centers, tenant bankruptcies, changes in economic conditions, consumer confidence, casualties and other natural disasters, and the potential for terrorist activities. The economy and consumer spending appear to be recovering from the effects of the recent recession. We derive our cash flow from operations primarily from retail tenants, many of whom have been and continue to be under some degree of economic stress. A significant deterioration in our cash flow from operations could require us to curtail planned capital expenditures or seek alternative sources of financing.

            We may not be able to lease new properties to an appropriate mix of tenants or for rents that are consistent with our projections. Also, when leases for our existing properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. To the extent that our leasing plans are not achieved, our cash generated before debt repayments and capital expenditures could be adversely affected.

            Regional malls are typically anchored by department stores and other large nationally recognized tenants. The value of some of our properties could be adversely affected if these tenants fail to comply with their contractual obligations, seek concessions in order to continue operations, or cease their operations. Department store and larger store, also referred to as "big box", consolidations typically result in the closure of existing stores or duplicate or geographically overlapping store locations. We do not control the disposition of those department stores or larger stores that we do not own. We also may not control the vacant space that is not re-leased in those stores we do own. Other tenants may be entitled to modify the terms of their existing leases in the event of such closures. The modification could be unfavorable to us as the lessor and could decrease rents or expense recovery charges. Additionally, major tenant closures may result in decreased customer traffic which could lead to decreased sales at other stores. If the sales of stores operating in our properties were to decline significantly due to closing of anchors, economic conditions, or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of default by a tenant or anchor store, we may experience delays and costs in enforcing our rights as landlord to recover amounts due to us under the terms of our agreements with those parties.

            Bankruptcy filings by retailers occur regularly in the course of our operations. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant, may make it more difficult to lease the remainder of the affected properties. Future tenant bankruptcies could adversely affect our properties or impact our ability to successfully execute our re-leasing strategy.

Risks Relating to Joint Venture Properties

            As of December 31, 2010, we owned interests in 175 income-producing properties with other parties. Of those, 19 properties are included in our consolidated financial statements. We account for the other 156 properties under the equity method of accounting, which we refer to as joint venture properties. We serve as general partner or property manager for 92 of these 156 properties; however, certain major decisions, such as selling or refinancing these properties, require the consent of the other owners. Of the properties for which we do not serve as general partner or property manager, 55 are in our international joint ventures. The other owners also have other participating rights that we consider substantive for purposes of determining control over the properties' assets. The remaining joint venture properties are managed by third parties. These limitations may adversely affect our ability to sell, refinance, or otherwise operate these properties.

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            Joint venture debt is the liability of the joint venture and is typically secured by a mortgage on the joint venture property. As of December 31, 2010, we had loan guarantees to support $60.7 million of our total $6.6 billion share of joint venture mortgage and other indebtedness. A default by a joint venture under its debt obligations may expose us to liability under a guaranty or letter of credit.

Other Factors Affecting Our Business

            CAM costs typically include allocable energy costs, repairs, maintenance and capital improvements to common areas, janitorial services, administrative, property and liability insurance costs, and security costs. We historically have used leases with variable CAM provisions that adjust to reflect inflationary increases. We have made a concerted effort to convert our leases to a fixed payment methodology which fixes our tenants' CAM contributions and should in turn reduce the volatility of and limitations on the recoveries we collect from our tenants for the reimbursement of our property operating expenses. However, with respect to both variable and fixed payment methodologies, the amount of CAM charges we bill to our tenants may not allow us to recover all of these operating costs.

            Our properties compete with other retail properties and other forms of retailing such as catalogs and e-commerce websites. Competition may come from regional malls, outlet centers, community/lifestyle centers, and other shopping centers, both existing as well as future development projects. The presence of competitive alternatives affects our ability to lease space and the level of rents we can obtain. New construction, renovations and expansions at competing sites could also negatively affect our properties.

            We also compete with other retail property developers to acquire prime development sites. In addition, we compete with other retail property companies for tenants and qualified management.

            We hold interests in joint venture properties that operate in Italy, Japan, Korea, and Mexico, and an interest in a joint venture property under development in Malaysia. We have a minority investment in two U.K. real estate companies. We may pursue additional expansion opportunities outside the United States. International development and ownership activities carry risks that are different from those we face with our domestic properties and operations. These risks include:

            Although our international activities currently are a relatively small portion of our business (international properties represented approximately 5.0% of the GLA of all of our properties at December 31, 2010), to the extent that we expand our international activities, these risks could increase in significance which in turn could adversely affect our results of operations and financial condition.

            We maintain insurance coverage with third party carriers who provide a portion of the coverage for specific layers of potential losses including commercial general liability, fire, flood, extended coverage and rental loss insurance on all of our properties in the United States. The initial portion of coverage not provided by third party carriers is

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either insured through our wholly-owned captive insurance companies, Rosewood Indemnity, Ltd. and Bridgewood Insurance Company, Ltd., and other financial arrangements controlled by us. The third party carrier has, in turn, agreed to provide evidence of coverage for this layer of losses under the terms and conditions of the carrier's policy. A similar policy written through our captive insurance entities also provides initial coverage for property insurance and certain windstorm risks at the properties located in coastal windstorm locations.

            There are some types of losses, including lease and other contract claims, which generally are not insured. If an uninsured loss or a loss in excess of insured limits occurs, we could lose all or a portion of the capital we have invested in a property, as well as the anticipated future revenue it could generate.

            We currently maintain insurance coverage against acts of terrorism on all of our properties in the United States on an "all risk" basis in the amount of up to $1 billion. The current federal laws which provide this coverage are expected to operate through 2014. Despite the existence of this insurance coverage, any threatened or actual terrorist attacks where we operate could adversely affect our property values, revenues, consumer traffic and tenant sales.

Risks Relating to Federal Income Taxes

            Simon Property and two of our subsidiaries have elected to qualify as a REIT. Qualification as a REIT for federal income tax purposes is governed by highly technical and complex provisions for which there are only limited judicial or administrative interpretations. If either of the REIT subsidiaries fails to comply with those provisions, and if available relief provisions do not apply:

            As a result, net income and funds available for distribution to our unitholders would be reduced for those years in which a REIT subsidiary fails to qualify as a REIT. Although we currently intend to operate the REIT subsidiaries so as to qualify each as a REIT, we cannot assure you we will succeed or that future economic, market, legal, tax or other considerations might cause us to revoke the REIT election of either of the REIT subsidiaries.

Item 1B.    Unresolved Staff Comments

            None.

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Item 2.    Properties

            Our U.S. properties primarily consist of regional malls, Premium Outlets, The Mills, community/lifestyle centers, and other properties. These properties contain an aggregate of approximately 250.5 million square feet of gross leasable area, or GLA, of which we own approximately 159.5 million square feet. Total estimated retail sales at the properties in 2010 was in excess of $60 billion.

            Regional malls typically contain at least one traditional department store anchor or a combination of anchors and big box retailers with a wide variety of smaller stores connecting the anchors. Additional stores are usually located along the perimeter of the parking area. Our 161 regional malls are generally enclosed centers and range in size from approximately 400,000 to 2.4 million square feet of GLA. Our regional malls contain in the aggregate more than 18,300 occupied stores, including approximately 709 anchors, which are mostly national retailers. For comparative purposes, we separate the information in this section on the 16 regional malls acquired from The Mills Corporation in 2007, or the Mills Regional Malls, from the information on our other regional malls.

            Premium Outlets generally contain a wide variety of designer and manufacturer stores located in open-air centers. Our 58 Premium Outlets range in size from approximately 150,000 to 850,000 square feet of GLA. The Premium Outlets are generally located near major metropolitan areas and tourist destinations including New York City, Los Angeles, Boston, Palm Springs, Orlando, Las Vegas, and Honolulu.

            The Mills generally range in size from 1.0 million to 2.3 million square feet of GLA and are located in major metropolitan areas. They have a combination of traditional mall, outlet center, and big box retailers and entertainment uses. The Mills Regional Malls typically range in size from 800,000 to 1.3 million square feet of GLA and contain a wide variety of national retailers.

            Community/lifestyle centers are generally unenclosed and smaller than our regional malls. Our 66 community/lifestyle centers generally range in size from approximately 100,000 to 950,000 square feet of GLA. Community/lifestyle centers are designed to serve a larger trade area and typically contain anchor stores and other national retail tenants, which occupy a significant portion of the GLA of the center. We also own traditional community shopping centers that focus primarily on value-oriented and convenience goods and services. These centers are usually anchored by a supermarket, discount retailer, or drugstore and are designed to service a neighborhood area. Finally, we own open-air centers adjacent to our regional malls designed to take advantage of the drawing power of the mall.

            We also have interests in 17 other shopping centers or outlet centers. These properties range in size from approximately 85,000 to 1.0 million square feet of GLA, are considered non-core to our business model, and in total represent less than 1% of our total operating income before depreciation and amortization.

            As of December 31, 2010, approximately 94.2% of the owned GLA in regional malls and Premium Outlets and the retail space of the other properties was leased, approximately 93.7% of the owned GLA for The Mills and 90.4% of owned GLA for the Mills Regional Malls was leased, and approximately 91.6% of owned GLA in the community/lifestyle centers was leased.

            We hold a 100% interest in 218 of our properties, effectively control 19 properties in which we have a joint venture interest, and hold the remaining 101 properties through unconsolidated joint venture interests. We are the managing or co-managing general partner or member of 329 properties. Substantially all of our joint venture properties are subject to rights of first refusal, buy-sell provisions, or other sale rights for all partners which are customary in real estate partnership agreements and the industry. Our partners in our joint ventures may initiate these provisions (subject to any applicable lock up or similar restrictions) which will result in either the use of available cash or borrowings to acquire their partnership interest or the disposal of our partnership interest.

            The following property table summarizes certain data for our regional malls and Premium Outlets, The Mills, the Mills Regional Malls and community/lifestyle centers located in the United States, including Puerto Rico, as of December 31, 2010.

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Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
 
  Regional Malls

1.

 

Anderson Mall

 

SC

 

Anderson

 

Fee

 

 

100.0%

 

Built 1972

 

 

83.0%

 

 

672,013

 

Belk, JCPenney, Sears, Dillard's, Books-A-Million
2.   Apple Blossom Mall   VA   Winchester   Fee     49.1% (4) Acquired 1999     89.8%     439,922   Belk, JCPenney, Sears, Eastwynn Theatres
3.   Arsenal Mall   MA   Watertown (Boston)   Fee     100.0%   Acquired 1999     95.4%     440,124   Marshalls, Filene's Basement
4.   Atrium Mall   MA   Chestnut Hill (Boston)   Fee     49.1% (4) Acquired 1999     95.0%     205,369   Borders Books & Music (16)
5.   Auburn Mall   MA   Auburn   Fee     49.1% (4) Acquired 1999     99.4%     588,270   Macy's, Macy's Home Store, Sears
6.   Aventura Mall(1)   FL   Miami Beach (Miami)   Fee     33.3% (4) Built 1983     96.0%     2,099,260   Bloomingdale's, Macy's, Macy's Mens & Home Furniture, JCPenney, Sears, Nordstrom, Equinox Fitness Clubs, AMC Theatre
7.   Avenues, The   FL   Jacksonville   Fee     25.0% (4)(2) Built 1990     94.0%     1,116,923   Belk, Dillard's, JCPenney, Sears, Forever 21
8.   Bangor Mall   ME   Bangor   Fee     67.4% (15) Acquired 2003     91.6%     652,740   Macy's, JCPenney, Sears, Dick's Sporting Goods
9.   Barton Creek Square   TX   Austin   Fee     100.0%   Built 1981     98.0%     1,429,650   Nordstrom, Macy's, Dillard's Women's & Home, Dillard's Men's & Children's, JCPenney, Sears, AMC Theatre
10.   Battlefield Mall   MO   Springfield   Fee and Ground Lease (2056)     100.0%   Built 1970     95.1%     1,199,901   Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Sears, MC Sports
11.   Bay Park Square   WI   Green Bay   Fee     100.0%   Built 1980     93.0%     710,952   Younkers, Younkers Home Furniture Gallery, Kohl's, ShopKo, Marcus Cinema 16
12.   Bowie Town Center   MD   Bowie (Washington, D.C.)   Fee     100.0%   Built 2001     97.9%     684,341   Macy's, Sears, Barnes & Noble, Bed Bath & Beyond, Best Buy, Safeway
13.   Boynton Beach Mall   FL   Boynton Beach (Miami)   Fee     100.0%   Built 1985     84.7%     1,101,829   Macy's, Dillard's Men's & Home, Dillard's Women, JCPenney, Sears, Cinemark Theatres
14.   Brea Mall   CA   Brea (Los Angeles)   Fee     100.0%   Acquired 1998     96.8%     1,320,204   Nordstrom, Macy's, JCPenney, Sears, Macy's Men's Children & Home.
15.   Broadway Square   TX   Tyler   Fee     100.0%   Acquired 1994     98.5%     627,793   Dillard's, JCPenney, Sears
16.   Brunswick Square   NJ   East Brunswick (New York)   Fee     100.0%   Built 1973     95.8%     765,293   Macy's, JCPenney, Barnes & Noble, Mega Movies
17.   Burlington Mall   MA   Burlington (Boston)   Ground Lease (2048)     100.0%   Acquired 1998     96.6%     1,317,061   Macy's, Lord & Taylor, Sears, Nordstrom, Crate & Barrel
18.   Cape Cod Mall   MA   Hyannis   Ground Leases (2029-2073)(7)     49.1% (4) Acquired 1999     94.5%     721,618   Macy's, Macy's Men's and Home, Sears, Best Buy, Marshalls, Barnes & Noble, Regal Cinema
19.   Castleton Square   IN   Indianapolis   Fee     100.0%   Built 1972     94.3%     1,381,848   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, Borders Books & Music, AMC Theatres
20.   Century III Mall   PA   West Mifflin (Pittsburgh)   Fee     100.0%   Built 1979     76.1%     1,193,247 (17) Macy's, JCPenney, Sears, Dick's Sporting Goods, Macy's Jr., (8)
21.   Charlottesville Fashion Square   VA   Charlottesville   Ground Lease (2076)     100.0%   Acquired 1997     94.3%     576,874   Belk, JCPenney, Sears
22.   Chautauqua Mall   NY   Lakewood   Fee     100.0%   Built 1971     82.3%     423,337   Sears, JCPenney, Bon Ton, Office Max, Dipson Cinema
23.   Chesapeake Square   VA   Chesapeake (Virginia Beach)   Fee and Ground Lease (2062)     75.0% (12) Built 1989     86.5%     717,282   Macy's, JCPenney, Sears, Target, Burlington Coat Factory, Cinemark, (11)
24.   Cielo Vista Mall   TX   El Paso   Fee and Ground Lease (2022)(7)     100.0%   Built 1974     98.0%     1,243,176   Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Sears, Cinemark Theatres
25.   Circle Centre   IN   Indianapolis   Property Lease (2097)     14.7% (4)(2) Built 1995     96.7%     739,273 (17) Nordstrom, Carson Pirie Scott, United Artists Theatre
26.   Coconut Point   FL   Estero   Fee     50.0% (4) Built 2006     96.2%     1,199,867   Dillard's, Barnes & Noble, Bed Bath & Beyond, Best Buy, DSW, Office Max, PetsMart, Ross Dress for Less, Cost Plus World Market, T.J. Maxx, Hollywood Theatres, Super Target
27.   Coddingtown Mall   CA   Santa Rosa   Fee     50.0% (4) Acquired 2005     86.2%     841,718   Macy's, JCPenney, Whole Foods, (8)
28.   College Mall   IN   Bloomington   Fee and Ground Lease (2048)(7)     100.0%   Built 1965     86.2%     636,096   Macy's, Sears, Target, Dick's Sporting Goods, Bed Bath & Beyond

13


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
29.   Columbia Center   WA   Kennewick   Fee     100.0%   Acquired 1987     92.6%     768,431   Macy's, Macy's Mens & Children, JCPenney, Sears, Barnes & Noble, Regal Cinema
30.   Copley Place   MA   Boston   Fee     98.1%   Acquired 2002     95.6%     1,241,929 (17) Neiman Marcus, Barneys New York
31.   Coral Square   FL   Coral Springs (Miami)   Fee     97.2%   Built 1984     95.9%     941,339   Macy's Mens, Children & Home, Macy's Women, JCPenney, Sears, Kohls (6)
32.   Cordova Mall   FL   Pensacola   Fee     100.0%   Acquired 1998     98.3%     857,058   Dillard's Men's, Dillard's Women's, Belk, Best Buy, Bed Bath & Beyond, Cost Plus World Market, Ross Dress for Less
33.   Cottonwood Mall   NM   Albuquerque   Fee     100.0%   Built 1996     96.5%     1,040,981   Macy's, Dillard's, JCPenney, Sears, Regal Cinemas, (11)
34.   Crystal Mall   CT   Waterford   Fee     74.6% (4) Acquired 1998     89.2%     783,352   Macy's, JC Penney, Sears, Bed Bath & Beyond, Christmas Tree Shops
35.   Crystal River Mall   FL   Crystal River   Fee     100.0%   Built 1990     77.2%     420,109   JCPenney, Sears, Belk, Kmart, Regal Cinema
36.   Dadeland Mall   FL   Miami   Fee     50.0% (4) Acquired 1997     100.0%     1,487,989   Saks Fifth Avenue, Nordstrom, Macy's, Macy's Children & Home, JCPenney
37.   DeSoto Square   FL   Bradenton   Fee     100.0%   Built 1973     78.2%     678,219   Macy's, JCPenney, Sears, (8)
38.   Domain, The   TX   Austin   Fee     100.0%   Built 2006     92.8%     1,178,182 (17) Neiman Marcus, Macy's, Borders Books & Music, Dick's Sporting Goods, IPIC Gold Class Cinemas, Dillard's
39.   Eastland Mall   IN   Evansville   Fee     50.0% (4) Acquired 1998     95.6%     865,310   Macy's, JCPenney, Dillard's
40.   Edison Mall   FL   Fort Myers   Fee     100.0%   Acquired 1997     96.8%     1,051,308   Dillard's, Macy's Mens, Children & Home, Macy's Women, JCPenney, Sears
41.   Emerald Square   MA   North Attleboro (Providence]—RI)   Fee     49.1% (4) Acquired 1999     89.9%     1,022,647   Macy's, Macy's Mens & Home Store, JCPenney, Sears
42.   Empire Mall(1)   SD   Sioux Falls   Fee and Ground Lease (2033)(7)     50.0% (4) Acquired 1998     94.5%     1,071,357   Macy's, Younkers, JCPenney, Sears, Gordmans, Hy-Vee
43.   Fashion Centre at Pentagon City, The   VA   Arlington (Washington, DC)   Fee     42.5% (4) Built 1989     99.3%     990,331 (17) Nordstrom, Macy's
44.   Fashion Mall at Keystone, The   IN   Indianapolis   Ground Lease (2067)     100.0%   Acquired 1997     92.8%     681,580   Saks Fifth Avenue, Crate & Barrel, Nordstrom, Keystone Art Cinema
45.   Fashion Valley   CA   San Diego   Fee     50.0% (4) Acquired 2001     99.0%     1,726,083   Forever 21 (6), Neiman-Marcus, Bloomingdale's, Nordstrom, Macy's, JCPenney, AMC Theatres
46.   Firewheel Town Center   TX   Garland (Dallas)   Fee     100.0%   Built 2005     81.0%     1,004,346 (17) Dillard's, Macy's, Barnes & Noble, DSW, Cost Plus World Market, AMC Theatres, Dick's Sporting Goods, Ethan Allen, (8)
47.   Florida Mall, The   FL   Orlando   Fee     50.0% (4) Built 1986     96.4%     1,776,679   Saks Fifth Avenue, Nordstrom, Macy's, Dillard's, JCPenney, Sears, H&M, Forever 21
48.   Forest Mall   WI   Fond Du Lac   Fee     100.0%   Built 1973     92.7%     500,174   JCPenney, Kohl's, Younkers, Sears, Cinema I & II
49.   Forum Shops at Caesars, The   NV   Las Vegas   Ground Lease (2050)     100.0%   Built 1992     98.5%     649,546    
50.   Galleria, The   TX   Houston   Fee     50.4% (4) Acquired 2002     94.0%     2,220,961   Saks Fifth Avenue, Neiman Marcus, Nordstrom, Macy's (2 locations), Borders Books & Music, Galleria Tennis/Athletic Club
51.   Granite Run Mall   PA   Media (Philadelphia)   Fee     50.0% (4) Acquired 1998     83.4%     1,032,545   JCPenney, Sears, Boscov's, Granite Run 8 Theatres, Acme, Kohl's
52.   Great Lakes Mall   OH   Mentor (Cleveland)   Fee     100.0%   Built 1961     87.2%     1,237,297   Dillard's Men's, Dillard's Women's, Macy's, JCPenney, Sears, AMC Theatres, Barnes & Noble
53.   Greendale Mall   MA   Worcester (Boston)   Fee and Ground Lease (2019)(7)     49.1% (4) Acquired 1999     92.4%     429,827 (17) T.J. Maxx 'N More, Best Buy, DSW, Big Lots
54.   Greenwood Park Mall   IN   Greenwood (Indianapolis)   Fee     100.0%   Acquired 1979     97.8%     1,280,035   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, Barnes & Noble, AMC Theatres
55.   Gulf View Square   FL   Port Richey (Tampa)   Fee     100.0%   Built 1980     82.4%     753,514   Macy's, Dillard's, JCPenney, Sears, Best Buy, TJ Maxx
56.   Gwinnett Place   GA   Duluth (Atlanta)   Fee     75.0%   Acquired 1998     81.4%     1,279,491 (17) Belk, JCPenney, Macy's, Sears, Mega Mart

14


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
57.   Haywood Mall   SC   Greenville   Fee and Ground Lease (2017)(7)     100.0%   Acquired 1998     97.9%     1,230,853   Macy's, Dillard's, JCPenney, Sears, Belk
58.   Independence Center   MO   Independence (Kansas City)   Fee     100.0%   Acquired 1994     97.2%     867,169   Dillard's, Macy's, Sears
59.   Indian River Mall   FL   Vero Beach   Fee     50.0% (4) Built 1996     82.1%     736,658   Dillard's, Macy's, JCPenney, Sears, AMC Theatres
60.   Ingram Park Mall   TX   San Antonio   Fee     100.0%   Built 1979     93.4%     1,125,713   Dillard's, Dillard's Home Store, Macy's, JCPenney, Sears, Bealls
61.   Irving Mall   TX   Irving (Dallas)   Fee     100.0%   Built 1971     84.1%     1,053,116   Macy's, Dillard's Clearance Center, Sears, Burlington Coat Factory, La Vida Fashion and Home Décor, AMC Theatres, (8)
62.   Jefferson Valley Mall   NY   Yorktown Heights (New York)   Fee     100.0%   Built 1983     93.9%     579,766   Macy's, Sears, H&M, Movies at Jefferson Valley
63.   King of Prussia Mall   PA   King of Prussia (Philadelphia)   Fee     12.4% (4)(15) Acquired 2003     93.0%     2,401,523 (17) Neiman Marcus, Bloomingdale's (Court), Nordstrom, Lord & Taylor, Macy's (Court), JCPenney, Sears, Crate & Barrel
64.   Knoxville Center   TN   Knoxville   Fee     100.0%   Built 1984     79.6%     977,956 (17) JCPenney, Belk, Sears, The Rush Fitness Center, Regal Cinema, (11)
65.   La Plaza Mall   TX   McAllen   Fee and Ground Lease (2040)(7)     100.0%   Built 1976     98.6%     1,200,684   Macy's, Macy's Home Store, Dillard's, JCPenney, Sears, Joe Brand
66.   Laguna Hills Mall   CA   Laguna Hills (Los Angeles)   Fee     100.0%   Acquired 1997     92.4%     866,382   Macy's, JCPenney, Sears, Laguna Hills Cinema, Nordstrom Rack, Total Woman Gym & Spa
67.   Lake Square Mall   FL   Leesburg (Orlando)   Fee     50.0% (4) Acquired 1998     73.4%     559,224   JCPenney, Sears, Belk, Target, AMC Theatres, Books-A-Million, PetSmart (6)
68.   Lakeline Mall   TX   Cedar Park (Austin)   Fee     100.0%   Built 1995     97.3%     1,097,693   Dillard's, Macy's, JCPenney, Sears, Regal Cinema
69.   Lehigh Valley Mall   PA   Whitehall   Fee     37.6% (4)(15) Acquired 2003     96.8%     1,169,508 (17) Macy's, JCPenney, Boscov's, Barnes & Noble, HH Gregg, Babies R Us
70.   Lenox Square   GA   Atlanta   Fee     100.0%   Acquired 1998     96.5%     1,546,289   Neiman Marcus, Bloomingdale's, Macy's
71.   Liberty Tree Mall   MA   Danvers (Boston)   Fee     49.1% (4) Acquired 1999     91.2%     858,625   Marshalls, The Sports Authority, Target, Bed, Bath & Beyond, Kohl's, Best Buy, Staples, AC Moore, K&G Fashion Superstore (16), AMC Theatres, Nordstrom Rack, Off Broadway Shoes
72.   Lima Mall   OH   Lima   Fee     100.0%   Built 1965     90.7%     740,537   Macy's, JCPenney, Elder-Beerman, Sears, MC Sporting Goods
73.   Lincolnwood Town Center   IL   Lincolnwood (Chicago)   Fee     100.0%   Built 1990     95.0%     421,366   Kohl's, Carson Pirie Scott
74.   Lindale Mall(1)   IA   Cedar Rapids   Fee     50.0% (4) Acquired 1998     86.5%     691,242   Von Maur, Sears, Younkers
75.   Livingston Mall   NJ   Livingston (New York)   Fee     100.0%   Acquired 1998     94.5%     984,695   Macy's, Lord & Taylor, Sears, Barnes & Noble
76.   Longview Mall   TX   Longview   Fee     100.0%   Built 1978     90.3%     638,438   Dillard's, JCPenney, Sears, Bealls, (11)
77.   Mall at Chestnut Hill, The   MA   Chestnut Hill (Boston)   Lease (2038)(9)     94.4%   Acquired 2002     89.9%     474,909   Bloomingdale's, Bloomingdale's Home Furnishing and Men's Store
78.   Mall at Rockingham Park, The   NH   Salem (Boston)   Fee     24.6% (4) Acquired 1999     98.7%     1,019,923   JCPenney, Sears, Macy's, (11)
79.   Mall of Georgia   GA   Buford (Atlanta)   Fee     100.0%   Built 1999     95.8%     1,833,763   Nordstrom, Dillard's, Macy's, JCPenney, Belk, Dick's Sporting Goods, Barnes & Noble, Haverty's Furniture, Regal Cinema, (8)
80.   Mall of New Hampshire, The   NH   Manchester   Fee     49.1% (4) Acquired 1999     97.8%     811,586   Macy's, JCPenney, Sears, Best Buy, A.C. Moore, Ulta (6)
81.   Maplewood Mall   MN   St. Paul (Minneapolis)   Fee     100.0%   Acquired 2002     91.0%     927,039   Macy's, JCPenney, Sears, Kohl's, Barnes & Noble
82.   Markland Mall   IN   Kokomo   Ground Lease (2041)     100.0%   Built 1968     96.4%     415,892   Sears, Target, MC Sporting Goods, (8)

15


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
83.   McCain Mall   AR   N. Little Rock   Fee     100.0%   Built 1973     92.5%     770,584   Dillard's, JCPenney, Sears, (11)
84.   Melbourne Square   FL   Melbourne   Fee     100.0%   Built 1982     81.5%     665,627   Macy's, Dillard's Men's, Children's & Home, Dillard's Women's, JCPenney, Dick's Sporting Goods, (8)
85.   Menlo Park Mall   NJ   Edison (New York)   Fee     100.0%   Acquired 1997     96.9%     1,323,156 (17) Nordstrom, Macy's, Barnes & Noble, AMC Dine-In Theater, WOW! Work Out World, Fortunoff Backyard Store
86.   Mesa Mall(1)   CO   Grand Junction   Fee     50.0% (4) Acquired 1998     87.9%     880,756   Sears, Herberger's, JCPenney, Target, Cabela's (6)
87.   Miami International Mall   FL   Miami   Fee     47.8% (4) Built 1982     92.1%     1,071,484   Macy's Mens & Home, Macy's Women & Children, JCPenney, Sears, Kohls (6)
88.   Midland Park Mall   TX   Midland   Fee     100.0%   Built 1980     92.9%     617,068   Dillard's, Dillard's Mens & Juniors, JCPenney, Sears, Bealls, Ross Dress for Less
89.   Miller Hill Mall   MN   Duluth   Ground Lease (2013)     100.0%   Built 1973     96.6%     805,321   JCPenney, Sears, Younkers, Barnes & Noble, DSW
90.   Montgomery Mall   PA   North Wales (Philadelphia)   Fee     60.0% (15) Acquired 2003     85.8%     1,154,062   Macy's, JCPenney, Sears, Dick's Sporting Goods, (11)
91.   Muncie Mall   IN   Muncie   Fee     100.0%   Built 1970     92.9%     635,645   Macy's, JCPenney, Sears, Elder Beerman
92.   North East Mall   TX   Hurst (Dallas)   Fee     100.0%   Built 1971     96.7%     1,670,694   Nordstrom, Dillard's, Macy's, JCPenney, Sears, Dick's Sporting Goods, Rave Theatre
93.   Northfield Square Mall   IL   Bourbonnais   Fee     31.6% (12) Built 1990     90.4%     530,011   Carson Pirie Scott Women's, Carson Pirie Scott Men's, Children's & Home, JCPenney, Sears, Cinemark Movies 10
94.   Northgate Mall   WA   Seattle   Fee     100.0%   Acquired 1987     94.1%     1,058,744   Nordstrom, Macy's, JCPenney, Toys 'R Us, Barnes & Noble, Bed Bath & Beyond, DSW
95.   Northlake Mall   GA   Atlanta   Fee     100.0%   Acquired 1998     86.8%     961,998   Macy's, JCPenney, Sears, Kohl's
96.   NorthPark Mall   IA   Davenport   Fee     50.0% (4) Acquired 1998     90.6%     1,073,101   Dillard's, Von Maur, Younkers, JCPenney, Sears, Barnes & Noble
97.   Northshore Mall   MA   Peabody (Boston)   Fee     49.1% (4) Acquired 1999     93.6%     1,579,820 (17) JCPenney, Sears, Filene's Basement, Nordstrom, Macy's Mens/Furniture, Macys, H&M, Barnes & Noble, Toys 'R Us, Shaw's Grocery
98.   Northwoods Mall   IL   Peoria   Fee     100.0%   Acquired 1983     95.0%     694,230   Macy's, JCPenney, Sears
99.   Oak Court Mall   TN   Memphis   Fee     100.0%   Acquired 1997     94.5%     849,298 (17) Dillard's, Dillard's Mens, Macy's
100.   Ocean County Mall   NJ   Toms River (New York)   Fee     100.0%   Acquired 1998     98.8%     890,283   Macy's, Boscov's, JCPenney, Sears
101.   Orange Park Mall   FL   Orange Park (Jacksonville)   Fee     100.0%   Acquired 1994     98.6%     957,994   Dillard's, JCPenney, Sears, Belk, Dick's Sporting Goods, AMC Theatres
102.   Orland Square   IL   Orland Park (Chicago)   Fee     100.0%   Acquired 1997     98.5%     1,210,321   Macy's, Carson Pirie Scott, JCPenney, Sears
103.   Oxford Valley Mall   PA   Langhorne (Philadelphia)   Fee     65.0% (15) Acquired 2003     91.9%     1,333,986 (17) Macy's, JCPenney, Sears, United Artists Theatre, (11)
104.   Paddock Mall   FL   Ocala   Fee     100.0%   Built 1980     95.4%     553,811   Macy's, JCPenney, Sears, Belk
105.   Penn Square Mall   OK   Oklahoma City   Ground Lease (2060)     94.5%   Acquired 2002     98.6%     1,050,751   Macy's, Dillard's Women's, Dillard's Men's, Children's & Home, JCPenney, Dickinson Theatre
106.   Pheasant Lane Mall   NH   Nashua       (14) Acquired 2002     94.7%     870,048   JCPenney, Sears, Target, Macy's, Dick's (6)
107.   Phipps Plaza   GA   Atlanta   Fee     100.0%   Acquired 1998     93.7%     813,238   Saks Fifth Avenue, Nordstrom, Belk, AMC Theatres, Arhaus Furniture (6)
108.   Plaza Carolina   PR   Carolina (San Juan)   Fee     100.0%   Acquired 2004     92.5%     1,077,680 (17) JCPenney, Sears, Tiendas Capri, Pueblo Xtra, Best Buy
109.   Port Charlotte Town Center   FL   Port Charlotte   Fee     80.0% (12) Built 1989     90.3%     766,050   Dillard's, Macy's, JCPenney, Bealls, Sears, DSW, Regal Cinema
110.   Prien Lake Mall   LA   Lake Charles   Fee and Ground Lease (2025)(7)     100.0%   Built 1972     95.3%     791,043   Dillard's, JCPenney, Sears, Cinemark Theatres, Kohl's

16


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
111.   Quaker Bridge Mall   NJ   Lawrenceville   Fee     38.0% (4)(15) Acquired 2003     93.0%     1,098,829   Macy's, Lord & Taylor, JCPenney, Sears
112.   Richmond Town Square   OH   Richmond Heights (Cleveland)   Fee     100.0%   Built 1966     93.7%     1,015,451   Macy's, JCPenney, Sears, Regal Cinemas
113.   River Oaks Center   IL   Calumet City (Chicago)   Fee     100.0%   Acquired 1997     90.2%     1,353,042 (17) Macy's, Carson Pirie Scott, JCPenney, Sears
114.   Rockaway Townsquare   NJ   Rockaway (New York)   Fee     100.0%   Acquired 1998     96.3%     1,247,790   Macy's, Lord & Taylor, JCPenney, Sears
115.   Rolling Oaks Mall   TX   San Antonio   Fee     100.0%   Built 1988     86.7%     883,521 (17) Dillard's, Macy's, JCPenney, Sears
116.   Roosevelt Field   NY   Garden City (New York)   Fee and Ground Lease (2090)(7)     100.0%   Acquired 1998     96.1%     2,227,065 (17) Bloomingdale's, Bloomingdale's Furniture Gallery, Nordstrom, Macy's, JCPenney, Dick's Sporting Goods, Loews Theatre, Xsport Fitness
117.   Ross Park Mall   PA   Pittsburgh   Fee     100.0%   Built 1986     94.8%     1,237,363   JCPenney, Sears, Nordstrom, L.L. Bean, Macy's, Crate & Barrel
118.   Rushmore Mall(1)   SD   Rapid City   Fee     50.0% (4) Acquired 1998     76.2%     833,459   JCPenney, Herberger's, Sears, Carmike Cinemas, Hobby Lobby, Toys R Us, (11)
119.   Santa Rosa Plaza   CA   Santa Rosa   Fee     100.0%   Acquired 1998     97.4%     692,577   Macy's, Sears, Forever 21, (11)
120.   Seminole Towne Center   FL   Sanford (Orlando)   Fee     45.0% (4)(2) Built 1995     89.2%     1,125,909   Macy's, Dillard's, JCPenney, Sears, United Artists Theatre, H&M, (8)
121.   Shops at Mission Viejo, The   CA   Mission Viejo (Los Angeles)   Fee     100.0%   Built 1979     97.7%     1,149,135   Nordstrom, Macy's (2 locations), Forever 21 (6)
122.   Shops at Sunset Place, The   FL   S. Miami   Fee     37.5% (4)(2) Built 1999     90.8%     514,624   NikeTown, Barnes & Noble, GameWorks, Z Gallerie, LA Fitness, AMC Theatres, Splitsville, Casa N Ideas
123.   Smith Haven Mall   NY   Lake Grove (New York)   Fee     25.0% (4) Acquired 1995     95.3%     1,287,343   Macy's, Macy's Furniture Gallery, JCPenney, Sears, Dick's Sporting Goods, Barnes & Noble
124.   Solomon Pond Mall   MA   Marlborough (Boston)   Fee     49.1% (4) Acquired 1999     99.2%     885,048   Macy's, JCPenney, Sears, Regal Cinema
125.   South Hills Village   PA   Pittsburgh   Fee     100.0%   Acquired 1997     94.2%     1,142,336 (17) Macy's, Sears, Barnes & Noble, Carmike Cinemas, (8)
126.   South Shore Plaza   MA   Braintree (Boston)   Fee     100.0%   Acquired 1998     97.4%     1,553,605   Macy's, Lord & Taylor, Sears, Filene's Basement, Nordstrom, Target
127.   Southern Hills Mall(1)   IA   Sioux City   Fee     50.0% (4) Acquired 1998     81.9%     790,384   Younkers, JCPenney, Sears, Scheel's Sporting Goods, Barnes & Noble, Carmike Cinemas, Hy-Vee, Toys R Us, Petco
128.   Southern Park Mall   OH   Youngstown   Fee     100.0%   Built 1970     94.0%     1,189,875   Macy's, Dillard's, JCPenney, Sears, Cinemark Theatres
129.   SouthPark   NC   Charlotte   Fee & Ground Lease (2040)(10)     100.0%   Acquired 2002     94.0%     1,620,553   Neiman Marcus, Nordstrom, Macy's, Dillard's, Belk, Dick's Sporting Goods, Crate & Barrel, The Container Store (6)
130.   SouthPark Mall   IL   Moline   Fee     50.0% (4) Acquired 1998     76.1%     1,017,107   Dillard's, Von Maur, Younkers, JCPenney, Sears
131.   SouthRidge Mall(1)   IA   Des Moines   Fee     50.0% (4) Acquired 1998     53.4%     883,312   JCPenney, Younkers, Sears, Target
132.   Springfield Mall(1)   PA   Springfield (Philadelphia)   Fee     38.0% (4)(15) Acquired 2005     84.6%     589,257   Macy's, Target
133.   Square One Mall   MA   Saugus (Boston)   Fee     49.1% (4) Acquired 1999     97.2%     928,569   Macy's, Sears, Best Buy, T.J. Maxx N More, Best Buy, Dick's Sporting Goods, Filene's Basement, World Gym
134.   St. Charles Towne Center   MD   Waldorf (Washington, D.C.)   Fee     100.0%   Built 1990     96.4%     980,643   Macy's, Macy's Home Store, JCPenney, Sears, Kohl's, Dick Sporting Goods, AMC Theatres
135.   St. Johns Town Center   FL   Jacksonville   Fee     50.0% (4) Built 2005     99.1%     1,235,705   Dillard's, Target, Ashley Furniture Home Store, Barnes & Noble, Dick's Clothing & Sporting Goods, Ross Dress for Less, Staples, DSW, JoAnn Fabrics, PetsMart
136.   Stanford Shopping Center   CA   Palo Alto (San Francisco)   Ground Lease (2054)     100.0%   Acquired 2003     98.0%     1,361,234 (17) Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, Macy's Mens Store
137.   Summit Mall   OH   Akron   Fee     100.0%   Built 1965     94.7%     768,064   Dillard's Women's & Children's, Dillard's Men's & Home, Macy's
138.   Sunland Park Mall   TX   El Paso   Fee     100.0%   Built 1988     94.1%     917,533   Macy's, Dillard's Women's & Children's, Dillard's Men's & Home, Sears, Forever 21, (8)

17


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
139.   Tacoma Mall   WA   Tacoma (Seattle)   Fee     100.0%   Acquired 1987     87.5%     1,372,139   Nordstrom, Macy's, JCPenney, Sears, David's Bridal, Forever 21, H&M
140.   Tippecanoe Mall   IN   Lafayette   Fee     100.0%   Built 1973     90.2%     862,773   Macy's, JCPenney, Sears, Kohl's, Dick's Sporting Goods, H.H. Gregg
141.   Town Center at Aurora   CO   Aurora (Denver)   Fee     100.0%   Acquired 1998     83.2%     1,081,383   Macy's, Dillard's, JCPenney, Sears, Century Theatres
142.   Town Center at Boca Raton   FL   Boca Raton (Miami)   Fee     100.0%   Acquired 1998     98.7%     1,753,721   Saks Fifth Avenue, Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, Sears, Crate & Barrel
143.   Town Center at Cobb   GA   Kennesaw (Atlanta)   Fee     75.0%   Acquired 1998     95.5%     1,275,747   Belk, Macy's, JCPenney, Sears, Macy's Men's & Furniture
144.   Towne East Square   KS   Wichita   Fee     100.0%   Built 1975     93.8%     1,125,397   Dillard's, Von Maur, JCPenney, Sears
145.   Towne West Square   KS   Wichita   Fee     100.0%   Built 1980     85.4%     941,626   Dillard's Women's & Home, Dillard's Men's & Children, JCPenney, Sears, Dick's Sporting Goods, The Movie Machine
146.   Treasure Coast Square   FL   Jensen Beach   Fee     100.0%   Built 1987     89.7%     878,213   Macy's, Dillard's, JCPenney, Sears, Borders Books & Music, Regal Cinema
147.   Tyrone Square   FL   St. Petersburg (Tampa)   Fee     100.0%   Built 1972     93.1%     1,095,781   Macy's, Dillard's, JCPenney, Sears, Borders Books & Music
148.   University Park Mall   IN   Mishawaka   Fee     100.0%   Built 1979     91.3%     922,681   Macy's, JCPenney, Sears, Barnes & Noble
149.   Upper Valley Mall   OH   Springfield   Fee     100.0%   Built 1971     80.4%     739,569   Macy's, JCPenney, Sears, Elder-Beerman, MC Sporting Goods, Chakeres Theatres
150.   Valle Vista Mall   TX   Harlingen   Fee     100.0%   Built 1983     50.7%     651,034   Dillard's, JCPenney, Sears, Big Lots, Forever 21
151.   Valley Mall   VA   Harrisonburg   Fee     50.0% (4) Acquired 1998     82.8%     506,269   JCPenney, Belk, Target, Books-A-Million, (8)
152.   Virginia Center Commons   VA   Glen Allen   Fee     100.0%   Built 1991     89.3%     785,193   Macy's, Dillard's, JCPenney, Sears, Burlington Coat Factory (6)
153.   Walt Whitman Mall   NY   Huntington Station (New York)   Ground Lease (2022)     100.0%   Acquired 1998     95.5%     1,027,680   Saks Fifth Avenue, Bloomingdale's, Lord & Taylor, Macy's
154.   Washington Square   IN   Indianapolis   Fee     100.0%   Built 1974     74.2%     971,921 (17) Sears, Target, Dick's Sporting Goods, Burlington Coat Factory, Kerasotes Theatres, (11)
155.   West Ridge Mall   KS   Topeka   Fee     100.0%   Built 1988     92.3%     992,313   Macy's, Dillard's, JCPenney, Sears, Burlington Coat Factory
156.   West Town Mall   TN   Knoxville   Ground Lease (2042)     50.0% (4) Acquired 1991     98.0%     1,335,972   Belk Women, Dillard's, JCPenney, Belk Men, Home and Kids, Sears, Regal Cinema
157.   Westchester, The   NY   White Plains (New York)   Fee     40.0% (4) Acquired 1997     94.0%     827,389 (17) Neiman Marcus, Nordstrom
158.   Westminster Mall   CA   Westminster (Los Angeles)   Fee     100.0%   Acquired 1998     86.5%     1,191,122   Macy's, JCPenney, Sears, Target
159.   White Oaks Mall   IL   Springfield   Fee     80.7%   Built 1977     81.2%     928,049 (17) Macy's, Bergner's, Sears, Dick's Sporting Goods, (8)
160.   Wolfchase Galleria   TN   Memphis   Fee     94.5%   Acquired 2002     94.4%     1,152,695   Macy's, Dillard's, JCPenney, Sears, Malco Theatres
161.   Woodland Hills Mall   OK   Tulsa   Fee     94.5%   Acquired 2002     98.7%     1,092,078   Macy's, Dillard's, JCPenney, Sears
                                         
    Total Regional Mall GLA               159,944,032    
                                         

18


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants

 

 

Premium Outlets
1.   Albertville Premium Outlets   MN   Albertville (Minneapolis)   Fee     100.0%   Acquired 2004     92.8%     429,430   Adidas, Ann Taylor, Banana Republic, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, Guess, Lucky Brand, Nautica, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
2.   Allen Premium Outlets   TX   Allen (Dallas)   Fee     100.0%   Acquired 2004     99.8%     441,582   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Columbia Sportswear, Gap Outlet, Guess, J.Crew, Michael Kors, Last Call by Neiman Marcus, Nike, Polo Ralph Lauren, Tommy Hilfiger
3.   Aurora Farms Premium Outlets   OH   Aurora (Cleveland)   Fee     100.0%   Acquired 2004     93.7%     300,446   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Michael Kors, Nautica, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th,Tommy Hilfiger
4.   Birch Run Premium Outlets   MI   Birch Run   Fee     100.0%   Acquired 2010     91.7%     677,852   Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Guess, J. Crew, Nike, The North Face, Polo Ralph Lauren, Tommy Hilfiger
5.   Calhoun Premium Outlets   GA   Calhoun   Fee     100.0%   Acquired 2010     94.3%     253,674   Ann Taylor, Carter's, Coach, Gap Outlet, Gymboree, Jones New York, Nike, Polo Ralph Lauren, Tommy Hilfiger
6.   Camarillo Premium Outlets   CA   Camarillo (Los Angeles)   Fee     100.0%   Acquired 2004     98.0%     673,976   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Diesel, Giorgio Armani, Hugo Boss, Last Call by Neiman Marcus, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Sony, Tommy Hilfiger
7.   Carlsbad Premium Outlets   CA   Carlsbad (San Diego)   Fee     100.0%   Acquired 2004     99.7%     288,245   Adidas, Banana Republic, BCBG Max Azria, Calvin Klein, Coach, Crate & Barrel, Gap Outlet, Guess, Lacoste, Michael Kors, Polo Ralph Lauren, Salvatore Ferragamo, Theory, Tommy Hilfiger
8.   Carolina Premium Outlets   NC   Smithfield   Ground Lease (2029)     100.0%   Acquired 2004     99.1%     438,953   Adidas, Banana Republic, Brooks Brothers, Coach, Gap Outlet, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
9.   Chicago Premium Outlets   IL   Aurora (Chicago)   Fee     100.0%   Built 2004     100.0%     437,359   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Diesel, Elie Tahari, Gap Outlet, Giorgio Armani, J.Crew, Kate Spade, Lacoste, Michael Kors, Polo Ralph Lauren, Salvatore Ferragamo, Sony, Theory
10.   Cincinnati Premium Outlets   OH   Monroe (Cincinnati)   Fee     100.0%   Built 2009     98.7%     398,807   Adidas, Banana Republic, Brooks Brothers, Coach, Cole Haan, Columbia Sportswear Company, Gap Outlet, Hanes Brands, J.Crew, Nike, Polo Ralph Lauren, Saks 5th Avenue Off 5th, Tommy Hilfiger, The North Face
11.   Clinton Crossing Premium Outlets   CT   Clinton   Fee     100.0%   Acquired 2004     98.4%     276,175   Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Gap Outlet, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Talbots, Tommy Hilfiger
12.   Columbia Gorge Premium Outlets   OR   Troutdale (Portland)   Fee     100.0%   Acquired 2004     95.8%     163,679   Adidas, Calvin Klein, Carter's, Eddie Bauer, Gap Outlet, Guess, Levi's, Tommy Hilfiger
13.   Desert Hills Premium Outlets   CA   Cabazon (Palm Springs)   Fee     100.0%   Acquired 2004     99.9%     501,722   Burberry, Coach, Dior, Elie Tahari, Giorgio Armani, Gucci, Lacoste, Nike, Polo Ralph Lauren, Prada, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Theory, True Religion, Yves Saint Laurent, Zegna
14.   Edinburgh Premium Outlets   IN   Edinburgh (Indianapolis)   Fee     100.0%   Acquired 2004     98.0%     377,703   Adidas, Ann Taylor, Banana Republic, Calvin Klein, Coach, Coldwater Creek, Columbia Sportswear, Gap Outlet, J.Crew, Levi's, Nautica, Nike, Polo Ralph Lauren, Tommy Hilfiger
15.   Ellenton Premium Outlets   FL   Ellenton   Fee     100.0%   Acquired 2010     98.8%     476,538   Banana Republic, Calvin Klein, Coach, J.Crew, Kate Spade, Kenneth Cole, Lacoste, Lucky Brand, Michael Kors, Movado, Nike, Saks Fifth Avenue Off 5th
16.   Folsom Premium Outlets   CA   Folsom (Sacramento)   Fee     100.0%   Acquired 2004     98.8%     295,994   BCBG Max Azria, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, Nautica, Nike, Saks Fifth Avenue Off 5th, Tommy Hilfiger

19


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
17.   Gaffney Premium Outlets   SC   Gaffney   Fee     100.0%   Acquired 2010     96.1%     359,437   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Coach, Gap Outlet, J.Crew, Juicy Couture, Nautica, Nike, Polo Ralph Lauren
18.   Gilroy Premium Outlets   CA   Gilroy (San Jose)   Fee     100.0%   Acquired 2004     96.1%     577,856   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, J.Crew, Hugo Boss, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Sony, Tommy Hilfiger, True Religion
19.   Grove City Premium Outlets   PA   Grove City   Fee     100.0%   Acquired 2010     97.9%     531,720   American Eagle, Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, J. Crew, Nike, Polo Ralph Lauren
20.   Gulfport Premium Outlets   MS   Gulfport   Ground Lease (2034)     100.0%   Acquired 2010     93.0%     302,899   Ann Taylor, Banana Republic, BCBG Max Azria, Coach, Gap Outlet, J. Crew, Jones New York, Nautica, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
21.   Hagerstown Premium Outlets   MD   Hagerstown   Fee     100.0%   Acquired 2010     96.2%     484,926   Adidas, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, J. Crew, Kate Spade, Nike, Tommy Hilfiger, Under Armour
22.   Houston Premium Outlets   TX   Cypress (Houston)   Fee     100.0%   Built 2008     99.4%     536,452   Ann Taylor, A/X Armani Exchange, Banana Republic, Burberry, Calvin Klein, Coach, Cole Haan, DKNY, Elie Tahari, Gap Outlet, J. Crew, Juicy Couture, Lucky Brand, Michael Kors, Nike, Saks Fifth Avenue off 5th, Tommy Hilfiger, Tory Burch
23.   Jackson Premium Outlets   NJ   Jackson (New York)   Fee     100.0%   Acquired 2004     98.9%     285,766   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, J.Crew, Nike, Polo Ralph Lauren, Reebok, Tommy Hilfiger, Under Armour
24.   Jersey Shore Premium Outlets   NJ   Tinton Falls (New York)   Fee     100.0%   Built 2008     97.0%     434,430   Adidas, Ann Taylor, Banana Republic, Burberry, Brooks Brothers, DKNY, Elie Tahari, Guess, J. Crew, Kate Spade, Michael Kors, Theory, Nike, Tommy Hilfiger, True Religion, Under Armour
25.   Johnson Creek Premium Outlets   WI   Johnson Creek   Fee     100.0%   Acquired 2004     89.4%     277,672   Adidas, Ann Taylor, Banana Republic, Calvin Klein, Columbia Sportswear, Eddie Bauer, Gap Outlet, Nike, Polo Ralph Lauren, Tommy Hilfiger
26.   Kittery Premium Outlets   ME   Kittery   Ground Lease (2014)     100.0%   Acquired 2004     97.4%     264,538   Adidas, Banana Republic, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, J.Crew, Movado, Nike, Polo Ralph Lauren, Puma, Reebok, Tommy Hilfiger
27.   Las Americas Premium Outlets   CA   San Diego   Fee     100.0%   Acquired 2007     98.3%     560,904   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, Hugo Boss, J.Crew, Last Call Neiman Marcus, Nike, Polo Ralph Lauren, Sony, Tommy Bahama, True Religion
28.   Las Vegas Outlet Center   NV   Las Vegas   Fee     100.0%   Acquired 2004     100.0%     468,997   Adidas, Aeropostale, Ann Taylor, Bose, Calvin Klein, Coach, DKNY, Gymboree, Levi's, Nautica, Nike, Reebok, Tommy Hilfiger
29.   Las Vegas Premium Outlets   NV   Las Vegas   Fee     100.0%   Built 2003     100.0%     538,689   A/X Armani Exchange, Ann Taylor, Banana Republic, Burberry, Coach, David Yurman, Diesel, Dolce & Gabbana, Elie Tahari, Etro, Hugo Boss, Lacoste, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Tag Heuer, Ted Baker, True Religion
30.   Lebanon Premium Outlets   TN   Lebanon   Fee     100.0%   Acquired 2010     91.8%     227,040   Ann Taylor, Banana Republic, Brooks Brothers, Coach, Eddie Bauer, Gap Outlet, Nike, Polo Ralph Lauren, Samsonite, Tommy Hilfiger, Van Heusen
31.   Lee Premium Outlets   MA   Lee   Fee     100.0%   Acquired 2010     100.0%     224,853   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, J. Crew, Michael Kors, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
32.   Leesburg Corner Premium Outlets   VA   Leesburg (Washington D.C.)   Fee     100.0%   Acquired 2004     97.1%     517,711   Ann Taylor, Brooks Brothers, Burberry, Coach, Crate & Barrel, Diesel, DKNY, Juicy Couture, Lacoste, Nike, Polo Ralph Lauren, Restoration Hardware, Saks Fifth Avenue Off 5th, Under Armour, Williams-Sonoma

20


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
33.   Liberty Village Premium Outlets   NJ   Flemington (New York)   Fee     100.0%   Acquired 2004     94.1%     164,528   Ann Taylor, Brooks Brothers, Calvin Klein, Coach, J.Crew, Michael Kors, Nautica, Nike, Polo Ralph Lauren, Tommy Hilfiger
34.   Lighthouse Place Premium Outlets   IN   Michigan City   Fee     100.0%   Acquired 2004     96.0%     454,365   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Burberry, Calvin Klein, Coach, Coldwater Creek, Columbia Sportswear, Gap Outlet, Guess, J.Crew, Movado, Nike, Polo Ralph Lauren, Tommy Hilfiger
35.   Napa Premium Outlets   CA   Napa   Fee     100.0%   Acquired 2004     99.6%     179,407   Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Gap Outlet, J.Crew, Lucky Brand, Nautica, Tommy Hilfiger
36.   North Bend Premium Outlets   WA   North Bend (Seattle)   Fee     100.0%   Acquired 2004     94.7%     223,411   Adidas, Bass, Carter's, Coach, Eddie Bauer, Gap Outlet, Izod, Nike, Nine West, PacSun, Tommy Hilfiger, Van Heusen, VF Outlet
37.   North Georgia Premium Outlets   GA   Dawsonville (Atlanta)   Fee     100.0%   Acquired 2004     98.2%     540,308   Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Hugo Boss, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, Saks Fifth Avenue Off 5th, Talbots, Tommy Hilfiger, Williams-Sonoma
38.   Orlando Premium Outlets—Vineland Ave.   FL   Orlando   Fee     100.0%   Acquired 2004     100.0%     549,580   Burberry, Calvin Klein, Coach, Cole Haan, Diesel, Dior, Fendi, Giorgio Armani, Hugo Boss, J. Crew, Lacoste, Michael Kors, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Tag Heuer, Theory
39.   Orlando Premium Outlets—International Dr.   FL   Orlando   Fee     100.0%   Acquired 2010     99.0%     773,519   Betsey Johnson, Coach, J. Crew, Kenneth Cole, Lacoste, Michael Kors, Last Call by Neiman Marcus, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Victoria Secret
40.   Osage Beach Premium Outlets   MO   Osage Beach   Fee     100.0%   Acquired 2004     91.6%     393,211   Adidas, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Coldwater Creek, Eddie Bauer, Gap Outlet, Nike, Polo Ralph Lauren, Tommy Hilfiger
41.   Petaluma Village Premium Outlets   CA   Petaluma   Fee     100.0%   Acquired 2004     96.6%     195,771   Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Coach, Gap Outlet, Nike, Puma, Saks Fifth Avenue Off 5th, Tommy Hilfiger
42.   Philadelphia Premium Outlets   PA   Limerick (Philadelphia)   Fee     100.0%   Built 2007     96.9%     549,143   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, DKNY, Elie Tahari, Gap Outlet, Guess, J.Crew, Michael Kors, Last Call by Neiman Marcus, Nike, Polo Ralph Lauren, Restoration Hardware, Sony
43.   Pismo Beach Premium Outlets   CA   Pismo Beach   Fee     100.0%   Acquired 2010     98.0%     147,728   Aeropostale, Calvin Klein, Carter's, Jones New York, Levi's Outlet, Nike, Nine West, Polo Ralph Lauren, Tommy Hilfiger, Van Heusen
44.   Pleasant Prairie Premium Outlets   WI   Pleasant Prairie   Fee     100.0%   Acquired 2010     99.9%     402,465   Adidas, Ann Taylor, Banana Republic, Calvin Klein, Coach, Gap Outlet, Hugo Boss, J. Crew, Juicy Couture, Nike, Polo Ralph Lauren, Sony
45.   Puerto Rico Premium Outlets   PR   Barceloneta   Fee     100.0%   Acquired 2010     89.6%     344,587   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Calvin Klein, Coach, Gap Outlet, Guess, Kenneth Cole, Lacoste, Michael Kors, Nautica, Nike, Nine West, Polo Ralph Lauren, Puma, Tommy Hilfiger
46.   Queenstown Premium Outlets   MD   Queenstown   Fee     100.0%   Acquired 2010     93.1%     284,312   Adidas, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gucci, J. Crew, Juicy Couture, Kate Spade, Michael Kors, Nike, Polo Ralph Lauren
47.   Rio Grande Valley Premium Outlets   TX   Mercedes (McAllen)   Fee     100.0%   Built 2006     96.9%     584,790   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Burberry, Calvin Klein, Coach, Cole Haan, DKNY, Gap Outlet, Guess, Hugo Boss, Loft Outlet, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Sony, Tommy Hilfiger
48.   Round Rock Premium Outlets   TX   Round Rock (Austin)   Fee     100.0%   Built 2006     98.0%     488,561   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Gap Outlet, Guess, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Theory, Tommy Hilfiger
49.   San Marcos Premium Outlets   TX   San Marcos   Fee     100.0%   Acquired 2010     98.5%     732,162   Betsey Johnson, Cole Haan, Fendi, Giorgio Armani, Gucci, Michael Kors, Last Call by Neiman Marcus, Saks Fifth Avenue Off 5th, Salvatore Ferragamo
50.   Seattle Premium Outlets   WA   Tulalip (Seattle)   Ground Lease (2034)     100.0%   Built 2005     99.1%     443,810   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Hugo Boss, J. Crew, Juicy Couture, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, Sony, Tommy Hilfiger

21


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
51.   St. Augustine Premium Outlets   FL   St. Augustine (Jacksonville)   Fee     100.0%   Acquired 2004     97.0%     328,549   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, J.Crew, Movado, Nike, Polo Ralph Lauren, Reebok, Tommy Bahama, Tommy Hilfiger, Under Armour
52.   The Crossings Premium Outlets   PA   Tannersville   Fee and Ground Lease (2019)(7)     100.0%   Acquired 2004     99.3%     411,268   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Coldwater Creek, Guess, J.Crew, Nike, Polo Ralph Lauren, Reebok, Tommy Hilfiger, Under Armour
53.   Vacaville Premium Outlets   CA   Vacaville   Fee     100.0%   Acquired 2004     98.3%     437,395   Adidas, Ann Taylor, Banana Republic, Burberry, Calvin Klein, Coach, Cole Haan, Columbia Sportswear, DKNY, Gucci, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, Tommy Bahama, Tommy Hilfiger
54.   Waikele Premium Outlets   HI   Waipahu (Honolulu)   Fee     100.0%   Acquired 2004     99.5%     209,802   A/X Armani Exchange, Banana Republic, Calvin Klein, Coach, Guess, Michael Kors, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Tommy Bahama, Tommy Hilfiger, True Religion
55.   Waterloo Premium Outlets   NY   Waterloo   Fee     100.0%   Acquired 2004     96.5%     417,737   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, J.Crew, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour, VF Outlet
56.   Williamsburg Premium Outlets   VA   Williamsburg   Fee     100.0%   Acquired 2010     96.8%     521,536   Burberry, Coach, Cole Haan, Dooney & Bourke, Hugo Boss, J. Crew, Juicy Couture, Kenneth Cole, Lacoste, Michael Kors, Nautica, Nike, Polo Ralph Lauren
57.   Woodbury Commons Premium Outlets   NY   Central Valley (New York)   Fee     100.0%   Acquired 2004     100.0%     844,808   Banana Republic, Burberry, Chloe, Coach, Dior, Dolce & Gabbana, Fendi, Giorgio Armani, Gucci, Lacoste, Last Call by Neiman Marcus, Nike, Oscar de la Renta, Polo Ralph Lauren, Prada, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Theory, Tory Burch, Versace, Yves St. Laurent
58.   Wrentham Village Premium Outlets   MA   Wrentham (Boston)   Fee     100.0%   Acquired 2004     99.7%     635,978   Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Elie Tahari, Hugo Boss, J. Crew, Lacoste, Movado, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Sony, Williams-Sonoma, Theory, Tommy Hilfiger, True Religion, Under Armour
                                         
    Total U.S. Premium Outlets GLA               24,284,756    
                                         

 

 

Community/Lifestyle Centers

 

 

 

 

 

 

 

 

 

 

1.

 

Arboretum at Great Hills

 

TX

 

Austin

 

Fee

 

 

100.0%

 

Acquired 1998

 

 

87.4%

 

 

206,397

 

Barnes & Noble, Pottery Barn
2.   Bloomingdale Court   IL   Bloomingdale (Chicago)   Fee     100.0%   Built 1987     96.2%     630,359   Best Buy, T.J. Maxx N More, Office Max, Wal-Mart, Dick's Sporting Goods, Jo-Ann Fabrics, Picture Show, Ross, (8)
3.   Charles Towne Square   SC   Charleston   Fee     100.0%   Built 1976     100.0%     71,794   Regal Cinema
4.   Chesapeake Center   VA   Chesapeake (Virginia Beach)   Fee     100.0%   Built 1989     96.1%     305,935   K-Mart, Movies 10, Petsmart, Michaels, Value City Furniture
5.   Clay Terrace   IN   Carmel (Indianapolis)   Fee     50.0% (4) Built 2004     94.7%     503,655 (17) Dick's Sporting Goods, Whole Foods, DSW, (8)
6.   Cobblestone Court   NY   Victor   Fee     35.7% (4)(13) Built 1993     98.8%     265,477   Dick's Sporting Goods, Kmart, Office Max
7.   Countryside Plaza   IL   Countryside (Chicago)   Fee     100.0%   Built 1977     87.7%     403,756   Best Buy, Home Depot, PetsMart, Jo-Ann Fabrics, Office Depot, Value City Furniture
8.   Crystal Court   IL   Crystal Lake (Chicago)   Fee     37.9% (4)(13) Built 1989     58.8%     278,978   Big Lots
9.   Dare Centre   NC   Kill Devil Hills   Ground Lease (2058)     100.0%   Acquired 2004     100.0%     168,707   Belk, Food Lion

22


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
10.   DeKalb Plaza   PA   King of Prussia (Philadelphia)   Fee     50.3% (15) Acquired 2003     100.0%     101,742   ACME Grocery, (8)
11.   Eastland Convenience Center   IN   Evansville   Ground Lease (2075)     50.0% (4) Acquired 1998     96.1%     175,639   Toys 'R Us, Bed Bath & Beyond, Marshalls
12.   Empire East(1)   SD   Sioux Falls   Fee     50.0% (4) Acquired 1998     98.1%     297,278   Kohl's, Target, Bed Bath & Beyond
13.   Fairfax Court   VA   Fairfax (Washington, D.C.)   Fee     41.3% (4)(13) Built 1992     85.8%     249,538   Burlington Coat Factory, Offenbacher's, X Sport Fitness
14.   Forest Plaza   IL   Rockford   Fee     100.0%   Built 1985     93.2%     427,985   Kohl's, Marshalls, Michaels, Factory Card Outlet, Office Max, Bed Bath & Beyond, Petco, Babies R' Us, Toys R' Us, Big Lots
15.   Gaitway Plaza   FL   Ocala   Fee     32.2% (4)(13) Built 1989     100.0%     208,755   Books-A-Million, Office Depot, T.J. Maxx, Ross Dress for Less, Bed Bath & Beyond
16.   Gateway Shopping Center   TX   Austin   Fee     100.0%   2004     89.2%     512,986   Best Buy, REI., Whole Foods, Crate & Barrel, The Container Store, Regal Cinema, Nordstrom Rack, (8)
17.   Great Lakes Plaza   OH   Mentor (Cleveland)   Fee     100.0%   Built 1976     89.6%     164,377   Michael's, Best Buy, HH Gregg
18.   Greenwood Plus   IN   Greenwood (Indianapolis)   Fee     100.0%   Built 1979     100.0%     155,319   Best Buy, Kohl's
19.   Hamilton Town Center   IN   Noblesville (Indianapolis)   Fee     50.0% (4) Built 2008     88.5%     655,490   JCPenney, Borders, Dick's Sporting Goods, Stein Mart, Bed Bath & Beyond, DSW, Hamilton 16 IMAX
20.   Henderson Square   PA   King of Prussia (Philadelphia)   Fee     76.0% (15) Acquired 2003     96.0%     107,376   Genuardi's Family Market, Avalon Carpet & Tile
21.   Highland Lakes Center   FL   Orlando   Fee     100.0%   Built 1991     75.0%     492,328   Marshalls, Bed Bath & Beyond, American Signature Furniture, Ross Dress for Less, Burlington Coat Factory, (8)
22.   Indian River Commons   FL   Vero Beach   Fee     50.0%   Built 1997     100.0%     255,942   Lowe's, Best Buy, Ross Dress for Less, Bed Bath & Beyond, Michael's
23.   Ingram Plaza   TX   San Antonio   Fee     100.0%   Built 1980     100.0%     111,518   Sheplers
24.   Keystone Shoppes   IN   Indianapolis   Ground Lease (2067)     100.0%   Acquired 1997     93.9%     29,140    
25.   Lake Plaza   IL   Waukegan (Chicago)   Fee     100.0%   Built 1986     93.6%     215,568   Home Owners Bargain Outlet
26.   Lake View Plaza   IL   Orland Park (Chicago)   Fee     100.0%   Built 1986     83.8%     367,686   Factory Card Outlet, Best Buy, Petco, Jo-Ann Fabrics, Golf Galaxy, Value City Furniture, (8)
27.   Lakeline Plaza   TX   Cedar Park (Austin)   Fee     100.0%   Built 1998     88.2%     387,430   T.J. Maxx, Best Buy, Ross Dress for Less, Office Max, PetsMart, Party City, Hancock Fabrics, Toys 'R Us, Rooms to Go, Rooms to Go Kids, (8)
28.   Lima Center   OH   Lima   Fee     100.0%   Built 1978     88.2%     236,878   Kohl's, Hobby Lobby, T.J. Maxx
29.   Lincoln Crossing   IL   O'Fallon (St. Louis)   Fee     100.0%   Built 1990     95.5%     243,326   Wal-Mart, PetsMart, The Home Depot
30.   Lincoln Plaza   PA   King of Prussia (Philadelphia)   Fee     65.0% (15) Acquired 2003     98.6%     267,965   Burlington Coat Factory, AC Moore, Michaels, T.J. Maxx, Home Goods, HH Gregg, (8)
31.   MacGregor Village   NC   Cary   Fee     100.0%   Acquired 2004     58.6%     144,041    
32.   Mall of Georgia Crossing   GA   Buford (Atlanta)   Fee     100.0%   Built 1999     98.1%     440,670   Best Buy, American Signature Furniture, T.J. Maxx 'n More, Nordstrom Rack, Staples, Target
33.   Markland Plaza   IN   Kokomo   Fee     100.0%   Built 1974     100.0%     90,527   Best Buy, Bed Bath & Beyond
34.   Martinsville Plaza   VA   Martinsville   Ground Lease (2046)     100.0%   Built 1967     97.1%     102,105   Rose's, Food Lion
35.   Matteson Plaza   IL   Matteson (Chicago)   Fee     100.0%   Built 1988     69.7%     270,892   Dominick's, (8)
36.   Muncie Plaza   IN   Muncie   Fee     100.0%   Built 1998     98.6%     172,617   Kohl's, Target, Shoe Carnival, T.J. Maxx, MC Sporting Goods, Kerasotes Theatres
37.   New Castle Plaza   IN   New Castle   Fee     100.0%   Built 1966     72.8%     91,648   Goody's, Ace Hardware, Aaron's Rents, Dollar Tree
38.   North Ridge Plaza   IL   Joliet (Chicago)   Fee     100.0%   Built 1985     84.3%     303,469   Hobby Lobby, Office Max, Burlington Coat Factory, Ultra Foods Grocery, AJ Wright

23


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
39.   North Ridge Shopping Center   NC   Raleigh   Fee     100.0%   Acquired 2004     95.8%     169,062   Ace Hardware, Kerr Drugs, Harris-Teeter Grocery
40.   Northwood Plaza   IN   Fort Wayne   Fee     100.0%   Built 1974     83.8%     208,076   Target, Cinema Grill
41.   Palms Crossing   TX   McAllen   Fee     100.0%   Built 2007     100.0%     337,249   Bealls, DSW, Barnes & Noble, Babies 'R Us, Sports Authority, Guitar Center, Cavendar's Boot City, Best Buy
42.   Pier Park   FL   Panama City Beach   Fee     100.0%   Built 2008     95.1%     816,293   Dillard's, JCPenney, Target, Borders, Grand Theatres, Ron Jon Surf Shop, Margaritaville
43.   Plaza at Buckland Hills, The   CT   Manchester   Fee     41.3% (4)(13) Built 1993     62.5%     330,091   Jo-Ann Fabrics, Party City, Toys 'R Us, Michaels, PetsMart, Big Lots, (8)
44.   Regency Plaza   MO   St. Charles (St. Louis)   Fee     100.0%   Built 1988     95.5%     287,473   Wal-Mart, Sam's Wholesale Club, PetSmart
45.   Richardson Square   TX   Richardson (Dallas)   Fee     100.0%   Built 2008     100.0%     517,265   Lowe's, Ross Dress for Less, Sears, Super Target, Anna's Linens
46.   Ridgewood Court   MS   Jackson   Fee     35.7% (4)(13) Built 1993     99.3%     369,500   T.J. Maxx, Lifeway Christian Bookstore, Bed Bath & Beyond, Best Buy, Michaels, Marshalls
47.   Rockaway Commons   NJ   Rockaway (New York)   Fee     100.0%   Acquired 1998     90.9%     150,459   Best Buy, (8)
48.   Rockaway Town Plaza   NJ   Rockaway (New York)   Fee     100.0%   Acquired 1998     100.0%     459,241   Target, PetsMart, Dick's Sporting Goods, AMC Theatres
49.   Royal Eagle Plaza   FL   Coral Springs (Miami)   Fee     42.0% (4)(13) Built 1989     98.4%     199,082   Stein Mart, (8)
50.   Shops at Arbor Walk, The   TX   Austin   Ground Lease (2056)     100.0%   Built 2006     89.0%     442,585   Home Depot, Marshall's, DSW, Vitamin Cottage Natural Grocer, Spec's Wine, Spirits and Fine Foods, Jo-Ann Fabrics, Ethan Allen, Sam Moon
51.   Shops at North East Mall, The   TX   Hurst (Dallas)   Fee     100.0%   Built 1999     97.8%     365,008   Michael's, PetsMart, T.J. Maxx, Bed Bath & Beyond, Best Buy, Barnes & Noble
52.   St. Charles Towne Plaza   MD   Waldorf (Washington, D.C.)   Fee     100.0%   Built 1987     75.3%     394,491   K & G Menswear, CVS, Shoppers Food Warehouse, Dollar Tree, Value City Furniture, Big Lots, (8)
53.   Teal Plaza   IN   Lafayette   Fee     100.0%   Built 1962     22.4%     101,087   Pep Boys, (8)
54.   Terrace at the Florida Mall   FL   Orlando   Fee     100.0%   Built 1989     80.2%     346,693   Marshalls, American Signature Furniture, Global Import, Target, Bed Bath & Beyond, (8)
55.   Tippecanoe Plaza   IN   Lafayette   Fee     100.0%   Built 1974     100.0%     90,522   Best Buy, Barnes & Noble
56.   University Center   IN   Mishawaka   Fee     100.0%   Built 1980     52.5%     150,524   Michael's, Best Buy
57.   Village Park Plaza   IN   Carmel (Indianapolis)   Fee     35.7% (4)(13) Built 1990     98.6%     549,623   Bed Bath & Beyond, Kohl's, Wal-Mart, Marsh, Menards, Regal Cinema, Hobby Lobby
58.   Washington Plaza   IN   Indianapolis   Fee     100.0%   Built 1976     57.1%     50,107   Jo-Ann Fabrics (6)
59.   Waterford Lakes Town Center   FL   Orlando   Fee     100.0%   Built 1999     100.0%     949,678   Ross Dress for Less, T.J. Maxx, Bed Bath & Beyond, Barnes & Noble, Best Buy, Jo-Ann Fabrics, Office Max, PetsMart, Target, Ashley Furniture HomeStore, L.A. Fitness, Regal Cinema
60.   West Ridge Plaza   KS   Topeka   Fee     100.0%   Built 1988     86.6%     254,159   T.J. Maxx, Toys 'R Us, Target
61.   West Town Corners   FL   Altamonte Springs (Orlando)   Fee     32.2% (4)(13) Built 1989     96.9%     385,643   Sports Authority, PetsMart, Winn-Dixie Marketplace, American Signature Furniture, Wal-Mart, Lowes Home Improvement
62.   Westland Park Plaza   FL   Orange Park (Jacksonville)   Fee     32.2% (4)(13) Built 1989     81.9%     163,254   PetsMart, Burlington Coat Factory, (8)
63.   White Oaks Plaza   IL   Springfield   Fee     100.0%   Built 1986     93.2%     391,474   T.J. Maxx, Office Max, Kohl's, Babies 'R Us, Country Market

24


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
64.   Whitehall Mall   PA   Whitehall   Fee     38.0% (15)(4) Acquired 2003     92.6%     588,618   Sears, Kohl's, Bed Bath & Beyond, Borders Books & Music, Gold's Gym, Buy Buy Baby
65.   Willow Knolls Court   IL   Peoria   Fee     35.7% (4)(13) Built 1990     96.7%     382,377   Burlington Coat Factory, Kohl's, Sam's Wholesale Club, Willow Knolls 14, Office Max
66.   Wolf Ranch Town Center   TX   Georgetown (Austin)   Fee     100.0%   Built 2005     79.8%     626,236   Kohl's, Target, Michaels, Best Buy, Office Depot, PetsMart, T.J. Maxx, DSW
                                         
    Total Community/Lifestyle Center GLA               20,191,163    
                                         

 

 

Other Properties

 

 

 

 

 

 

 

 

 

 

1.

 

Crossville Outlet Center

 

TN

 

Crossville

 

Fee

 

 

100.0%

 

Acquired 2004

 

 

94.4%

 

 

151,287

 

Bass, Dressbarn, Kasper, L'eggs Hanes Bali Playtex, Rack Room Shoes, Van Heusen, VF Outlet
2.   Factory Merchants Branson   MO   Branson   Ground Lease (2021)     100.0%   Acquired 2004     60.3%     273,540   Carter's, Crocs, Izod, Jones New York, Pendleton, Reebok, Tuesday Morning
3.   Factory Stores of America—Boaz   AL   Boaz   Ground Lease (2027)     100.0%   Acquired 2004     77.5%     111,616   Bon Worth, Easy Spirit, Rue21, VF Outlet
4.   Factory Stores of America—Georgetown   KY   Georgetown   Fee     100.0%   Acquired 2004     95.9%     173,326   Bass, Dressbarn, Rack Room Shoes, Rue 21, Van Heusen
5.   Factory Stores of America—Graceville   FL   Graceville   Fee     100.0%   Acquired 2004     100.0%     84,225   Factory Brand Shoes, Van Heusen, VF Outlet
6.   Factory Stores of America—Lebanon   MO   Lebanon   Fee     100.0%   Acquired 2004     100.0%     85,924   Dressbarn, Factory Brand Shoes, Van Heusen, VF Outlet
7.   Factory Stores of America—Nebraska City   NE   Nebraska City   Fee     100.0%   Acquired 2004     97.8%     89,608   Bass, Easy Spirit, Van Heusen, VF Outlet
8.   Factory Stores of America—Story City   IA   Story City   Fee     100.0%   Acquired 2004     78.6%     112,596   Dressbarn, Factory Brand Shoes, Van Heusen, VF Outlet
9.   Florida City Outlet Center   FL   Florida City   Fee     100.0%   Acquired 2010     88.5%     207,896   Aeropostale, Carter's, Gap Outlet, Guess, Nike, Nine West, OshKosh B'gosh, Tommy Hilfiger
10.   The Shoppes at Branson Meadows   MO   Branson   Fee     100.0%   Acquired 2004     73.2%     287,063   Branson Meadows Cinemas, Dressbarn, VF Outlet
11.   Huntley Outlet Center   IL   Huntley   Fee     100.0%   Acquired 2010     75.9%     279,101   Aeropostale, Ann Taylor, Banana Republic, BCBG Max Azria, Bose, Calvin Klein, Carter's, Eddie Bauer, Gap Outlet, Guess, Reebok, Tommy Hilfiger, Van Heusen

25


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
12.   Mall at The Source, The   NY   Westbury (New York)   Fee     25.5% (4)(2) Built 1997     76.2%     722,740   Off 5th-Saks Fifth Avenue, Nordstrom Rack, David's Bridal, Golf Galaxy, (8)
13.   Nanuet Mall   NY   Nanuet (New York)   Fee     100.0%   Acquired 1998     N/A     912,999   Macy's, Sears, (8)
14.   Naples Outlet Center   FL   Naples   Fee     100.0%   Acquired 2010     81.6%     146,001   Bass, Coach, Jones New York, Samsonite, Van Heusen
15.   Outlet Marketplace   FL   Orlando   Fee     100.0%   Acquired 2010     74.9%     204,978   Calvin Klein, Coldwater Creek, Nine West, Reebok, Sketchers, Van Heusen
16.   Prime Outlets—Jeffersonville   OH   Jeffersonville   Fee     100.0%   Acquired 2010     99.8%     410,059   Adidas, Banana Republic, Coach, Gap Outlet, J. Crew, Kate Spade, Polo Ralph Lauren, Pottery Barn
17.   University Mall   FL   Pensacola   Fee     100.0%   Acquired 1994     N/A     709,711   JCPenney, Sears, Belk
                                         
    Total Other GLA               4,962,670    
                                         

 

 

Mills Properties

 

 

 

 

 

 

 

 

 

 

 

 

The Mills®

 

 

 

 

 

 

 

 

 

 

1.

 

Arizona Mills

 

AZ

 

Tempe (Phoenix)

 

Fee

 

 

25.0%

(4)

Acquired 2007

 

 

93.8%

 

 

1,244,540

 

Marshalls, Last Call Neiman Marcus, Off 5th Saks Fifth Avenue, Burlington Coat Factory, Sears Appliance Outlet, Gameworks, Sports Authority, Ross Dress for Less, JCPenney Outlet, Group USA, Harkins Cinemas, IMAX Theatre, F.Y.E., Sea Life Center
2.   Arundel Mills   MD   Hanover (Baltimore)   Fee     29.6% (4) Acquired 2007     99.7%     1,298,239   Bass Pro Shops, Bed Bath & Beyond, Best Buy, Books-A-Million, Burlington Coat Factory, The Children's Place, Dave & Buster's, F.Y.E., H&M, Medieval Times, Modell's, Neiman Marcus Last Call, OFF 5TH Saks Fifth Avenue Outlet, Off Broadway Shoe Warehouse, T.J. MAXX, Cinemark Egyptian 24 Theatres
3.   Colorado Mills   CO   Lakewood (Denver)   Fee     18.8% (4)(2) Acquired 2007     83.1%     1,097,621   Borders Books Music Café, Eddie Bauer Outlet, Last Call Clearance Center from Neiman Marcus, Off Broadway Shoe Warehouse, OFF 5TH Saks Fifth Avenue Outlet, Sports Authority, Super Target, United Artists Theatre, Burlington Coat Factory
4.   Concord Mills   NC   Concord (Charlotte)   Fee     29.6% (4)(2) Acquired 2007     99.3%     1,333,938   Bass Pro Shops Outdoor World, Books-A-Million, Burlington Coat Factory, Off 5th Saks Fifth Avenue, F.Y.E., The Children's Place Outlet, Dave & Buster's, NIKE, TJ Maxx, Group USA, Sun & Ski, VF Outlet, Off Broadway Shoes, Bed Bath & Beyond, NASCAR Speedpark, AMC Theatres, Best Buy
5.   Discover Mills   GA   Lawrenceville (Atlanta)   Fee     25.0% (4)(2) Acquired 2007     94.5%     1,182,984   Bass Pro Shops, Books-A-Million, Burlington Coat Factory, Neiman Marcus Last Call, Medieval Times, Off 5th Saks Fifth Avenue Outlet, Off Broadway Shoe Warehouse, ROSS Dress for Less, Sears Appliance Outlet, Sun & Ski Sports, Urban Behavior, Spaha Skatepark, Dave & Buster's, AMC Theatres
6.   Franklin Mills   PA   Philadelphia   Fee     50.0% (4) Acquired 2007     87.0%     1,743,731   Dave & Buster's, JC Penney Outlet Store, Burlington Coat Factory, Marshalls HomeGoods, Modell's Sporting Goods, Group USA, Bed Bath & Beyond, Sam Ash Music, Off 5th Saks Fifth Avenue, Last Call Neiman Marcus, Off Broadway Shores, Sears Appliance Outlet, H&M, Spaha Skatepark, AMC Theatres, Forever 21

26


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
7.   Grapevine Mills   TX   Grapevine (Dallas)   Fee     29.6% (4) Acquired 2007     96.3%     1,778,434   Bed, Bath & Beyond, Books-A-Million, Burlington Coat Factory, The Children's Place, Forever 21, Group USA—The Clothing Co. JCPenney Outlet, Marshalls, NIKE, OFF 5th Saks Fifth Avenue, AMC Theatres, Dr. Pepper Star Center, Sun & Ski Sports, Last Call Neiman Marcus, Sears Appliance Outlet, Bass Pro Outdoor World, Off Broadway Shoes, VF Outlet, Legoland Discovery (6), Sea Life Center (6)
8.   Great Mall   CA   Milpitas (San Jose)   Fee     50.0%   Acquired 2007     94.9%     1,361,151   Last Call Neiman Marcus, Sports Authority, Group USA, Kohl's, Dave & Busters, H&M, Sears Appliance Outlet, Burlington Coat Factory, Marshalls, Off 5th Saks Fifth Avenue, NIKE, Century Theatres, Bed Bath & Beyond, XXI Forever
9.   Gurnee Mills   IL   Gurnee (Chicago)   Fee     50.0% (4) Acquired 2007     95.7%     1,826,523   Bass Pro Shops Outdoor World, Bed Bath & Beyond, Burlington Coat Factory, H & M, Kohl's, Marshall's Home Goods, Off 5th—Saks Fifth Avenue Outlet, Rinkside, Sears Grand, The Sports Authority, TJ Maxx, VF Outlet, Marcus Cinemas, Last Call Neiman Marcus, Value City Furniture
10.   Katy Mills   TX   Katy (Houston)   Fee     31.3% (4)(2) Acquired 2007     89.9%     1,554,826   Bass Pro Shops Outdoor World, Bed Bath and Beyond, Books-A-Million, Burlington Coat Factory, F.Y.E., Marshalls, Neiman Marcus Last Call Clearance Center, Nike Factory Store, Off 5th Saks Fifth Avenue Outlet, Sun & Ski Sports, AMC Theatres, Off Broadway Shoes, XXI Forever
11.   Ontario Mills   CA   Ontario (Riverside)   Fee     25.0% (4) Acquired 2007     93.2%     1,479,453   Burlington Coat Factory, Baby Depot, NIKE, Gameworks, The Children's Place Outlet, Marshalls, JCPenney Outlet, Off 5th Saks Fifth Avenue Outlet, Bed Bath & Beyond, Nordstrom Rack, Dave & Busters, Group USA, Sam Ash Music, Off Broadway Shoes, AMC Theatres, H&M, F.Y.E., Second Spin
12.   Opry Mills   TN   Nashville   Fee     50.0% (4)(2) Acquired 2007     (18)     1,159,833   (18)
13.   Potomac Mills   VA   Prince William (Washington, D.C.)   Fee     50.0% (4) Acquired 2007     98.1%     1,537,357   Group USA, Marshall's, TJ Maxx, Sears Appliance Outlet, JCPenney Outlet, Urban Behavior, Burlington Coat Factory, Off Broadway Shoe Warehouse, Nordstrom Rack, Off 5th Saks Fifth Avenue Outlet, Costco Warehouse, The Children's Place, AMC Theatres, Modell's Sporting Goods, Books-A-Million, H&M, Last Call Neiman Marcus, XXI Forever, Bloomingdale's Outlet
14.   Sawgrass Mills   FL   Sunrise (Miami)   Fee     50.0% (4) Acquired 2007     99.8%     2,258,616   American Signature Home, Beall's Outlet, Bed Bath & Beyond, Brandsmart USA, Burlington Coat Factory, Gameworks, JCPenney Outlet Store, Marshalls, Neiman Marcus Last Call Clearance Center, Nike Factory Store, Nordstrom Rack, Off 5th Saks Fifth Avenue Outlet, Ron Jon Surf Shop, The Sports Authority, Super Target, TJ Maxx, VF Factory Outlet, Wannado City, F.Y.E., Off Broadway Shoes, Regal Cinemas, GAP Outlet, Bloomingdale's Outlet
15.   St. Louis Mills   MO   Hazelwood (St. Louis)   Fee     25.0% (4)(2) Acquired 2007     80.8%     1,174,827   Bed Bath & Beyond, Books-A-Million, Burlington Coat Factory, Cabela's, iceZONE, Marshalls MegaStore, NASCAR SpeedPark, Off Broadway Shoe Warehouse, Sears Appliance Outlet, The Children's Place Outlet, Regal Cinemas, Plan 9 Skatepark
16.   The Block at Orange   CA   Orange (Los Angeles)   Fee     25.0% (4) Acquired 2007     92.1%     725,154   Dave & Buster's, Vans Skatepark, Lucky Strike Lanes, Borders Books & Music, Off 5th Saks Fifth Avenue, AMC Theatres, Nike Factory Store, Last Call Neiman Marcus, Off Broadway Shoes, H&M
                                         
    Subtotal The Mills®               22,757,227    
                                         

27


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants

 

 

Mills Regional Malls

 

 

 

 

 

 

 

 

 

 
17.   Briarwood Mall   MI   Ann Arbor   Fee     25.0% (4) Acquired 2007     95.5%     973,413   Macy's, JCPenney, Sears, Von Maur
18.   Del Amo Fashion Center   CA   Torrance (Los Angeles)   Fee     25.0% (4) Acquired 2007     89.6%     2,268,717   Macy's, Macy's, Macy's Home & Furnishings, JCPenney, Sears, Marshalls, T.J. Maxx, Barnes & Noble, JoAnn Fabrics, Crate & Barrel, L.A. Fitness, Burlington Coat Factory, AMC Theatres
19.   Dover Mall   DE   Dover   Fee     34.1% (4) Acquired 2007     94.6%     886,509   Macy's, JCPenney, Boscov's, Sears, Carmike Cinemas
20.   Esplanade, The   LA   Kenner (New Orleans)   Fee     50.0% (4) Acquired 2007     83.9%     814,839   Dillard's, Dillard's Men's, Macy's, Target (6), (11)
21.   Falls, The   FL   Miami   Fee     25.0% (4) Acquired 2007     93.3%     806,644   Bloomingdale's, Macy's, Regal Cinema
22.   Galleria at White Plains, The   NY   White Plains (New York)   Fee     50.0% (4) Acquired 2007     79.0%     862,394   Macy's, Sears, H&M
23.   Hilltop Mall   CA   Richmond (San Francisco)   Fee     25.0% (4) Acquired 2007     75.8%     1,094,064   JCPenney, Sears, Macy's, Wal-Mart, 24 Hour Fitness
24.   Lakeforest Mall   MD   Gaithersburg (Washington, D.C.)   Fee     25.0% (4) Acquired 2007     84.5%     1,045,994   Macy's, Lord & Taylor, JCPenney, Sears, H&M
25.   Mall at Tuttle Crossing, The   OH   Dublin (Columbus)   Fee     25.0% (4) Acquired 2007     97.4%     1,111,434   Macy's, Macy's, Sears, JCPenney
26.   Marley Station   MD   Glen Burnie (Baltimore)   Fee     25.0% (4) Acquired 2007     82.1%     1,069,154   Macy's, JCPenney, Sears, The Movies at Marley Station, Gold's Gym, (11)
27.   Meadowood Mall   NV   Reno   Fee     25.0% (4) Acquired 2007     89.1%     876,891 (17) Macy's Men's, Macy's, Sears, JCPenney, Sports Authority
28.   Northpark Mall   MS   Ridgeland   Fee     50.0% (4) Acquired 2007     97.2%     956,266   Dillard's, JCPenney, Belk, Regal Cinema
29.   Shops at Riverside, The   NJ   Hackensack (New York)   Fee     50.0% (4) Acquired 2007     86.8%     769,859   Bloomingdale's, Saks Fifth Avenue, Barnes & Noble, Pottery Barn
30.   Southdale Center   MN   Edina (Minneapolis)   Fee     50.0% (4) Acquired 2007     91.0%     1,339,084 (17) Macy's, JCPenney, Marshall's, AMC Theatres, (8)

28


Table of Contents

Simon Property Group, L.P. and Subsidiaries

Property Table

U.S. Properties

 
 
Property Name
  State   City (CBSA)   Ownership
Interest
(Expiration if
Lease)(3)
  Legal Ownership   Year Built
or
Acquired
  Occupancy(5)   Total GLA   Retail Anchors and Selected Major Tenants
31.   Southridge Mall   WI   Greendale (Milwaukee)   Fee     50.0% (4) Acquired 2007     90.5%     1,212,366   JC Penney, Sears, Kohl's, Boston Store, Cost Plus World Market, (8)
32.   Stoneridge Shopping Center   CA   Pleasanton (San Francisco)   Fee     25.0% (4) Acquired 2007     97.1%     1,298,402   Macy's Women's, Macy's Men's, Nordstrom, Sears, JCPenney, H&M
                                         
    Subtotal Mills Regional Malls               17,386,030    
                                         

 

 

Mills Community Centers

 

 

 

 

 

 

 

 

 

 
33.   Arundel Mills Marketplace   MD   Hanover (Baltimore)   Fee     29.6% (4) Acquired 2007     100.0%     101,613   Michael's, Staples, PetSmart, HH Gregg
34.   Concord Mills Marketplace   NC   Concord (Charlotte)   Fee     50.0% (4) Acquired 2007     100.0%     230,683   BJ's Wholesale Club, Garden Ridge
35.   Denver West Village   CO   Lakewood (Denver)   Fee     18.8% (4) Acquired 2007     98.5%     310,217   Barnes & Noble, Bed Bath & Beyond, Office Max, Whole Foods, DSW, Ultimate Electronics, Christy Sports, United Artists
36.   Liberty Plaza   PA   Philadelphia   Fee     50.0% (4) Acquired 2007     99.0%     371,618   Wal-Mart, Dick's Sporting Goods, Raymour & Flanigan, Super Fresh Food Market
                                         
    Subtotal Mills Community Centers               1,014,131    
                                         
    Total Mills Properties               41,157,388    
                                         
    Total U.S. Properties GLA               250,540,009    
                                         

29


Table of Contents

FOOTNOTES:


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

(2)
Our 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 us.

(3)
The date listed is the expiration date of the last renewal option available to the operating entity under the ground lease. In a majority of the ground leases, we have a right of first refusal or the right to purchase the lessor's interest. Unless otherwise indicated, each ground lease listed in this column covers at least 50% of its respective property.

(4)
Joint venture properties accounted for under the equity method.

(5)
Regional Malls—Executed leases for all company-owned GLA in mall stores, excluding majors. Premium Outlets—Executed leases for all company-owned GLA (or total center GLA). Community/Lifestyle Centers—Executed leases for all company-owned GLA including majors and mall stores.

(6)
Indicates anchor or major that is currently under development.

(7)
Indicates ground lease covers less than 50% of the acreage of this property.

(8)
Indicates vacant anchor space(s).

(9)
The lease at the Mall at Chestnut Hill includes the entire premises including land and building.

(10)
Indicates ground lease covers outparcel only.

(11)
Indicates vacant anchor owned by another company, but we still collect rent and/or fees under an agreement.

(12)
We receive substantially all the economic benefit of the property due to a preference or advance.

(13)
Outside partner receives substantially all of the economic benefit due to a partner preference.

(14)
We own a mortgage note that encumbers Pheasant Lane Mall that entitles us to 100% of the economics of this property.

(15)
Our indirect ownership interest is through an approximately 76% ownership interest in Kravco Simon Investments.

(16)
Indicates anchor or major tenant has announced its intent to close this location.

(17)
Mall & Freestanding GLA includes office space as follows:

    Circle Centre Mall—192 sq. ft.   Northshore Mall—12,367 sq. ft.
    Century III Mall—18,609 sq. ft.   Oak Court Mall—126,583 sq. ft.
    Clay Terrace—75,118 sq. ft.   Oxford Valley Mall—110,324 sq. ft.
    The Domain—132,881 sq. ft.   Plaza Carolina—28,474 sq. ft.
    Copley Place—867,301 sq. ft.   River Oaks Center—117,716 sq. ft.
    Del Amo—1,413 sq. ft.   Rolling Oaks Mall—6,383 sq. ft.
    Fashion Centre at Pentagon City, The—169,089 sq. ft.   Roosevelt Field—1,610 sq. ft.
    Firewheel Town Center—75,103 sq. ft.   South Hills Village—4,407 sq. ft.
    Greendale Mall—119,860 sq. ft.   Stanford Shopping Center—7,444 sq. ft.
    Gwinnett Place—32,603 sq. ft.   The Westchester—820 sq. ft.
    King of Prussia Mall—13,250 sq. ft.   White Oaks Mall—17,807 sq. ft.
    Knoxville Center—1,455 sq. ft.   Meadowood Mall—6,109 sq. ft.
    Lehigh Valley Mall—11,754 sq. ft.   Southdale Center—20,295 sq. ft.
    Menlo Park Mall—52,424 sq. ft.   Washington Square—7,737 sq. ft.
(18)
Property temporarily closed due to flood damage which occurred during May 2010.

30


Table of Contents

            The following table summarizes lease expiration data for our regional malls and Premium Outlets located in the United States, including Puerto Rico, as of December 31, 2010. The data does not include information for The Mills, the Mills Regional Malls, or properties we acquired in 2010 in our acquisition of Prime. The data presented does not consider the impact of renewal options that may be contained in leases.


Simon Property Group L.P. and Subsidiaries
U.S. Lease Expirations
Regional Malls and Premium Outlets
As of December 31, 2010

Year
  Number of
Leases Expiring
  Square Feet   Avg. Base Rent per
Square Foot at
12/31/10
  Percentage of Gross
Annual Rental
Revenues(1)
 

Small Shops and Freestanding

                         

Month to Month Leases

   
532
   
1,313,575
 
$

38.27
   
1.0

%

2011

    2,933     8,149,030   $ 33.63     6.2 %

2012

    2,719     9,290,505   $ 33.91     7.2 %

2013

    2,544     7,710,019   $ 38.47     6.8 %

2014

    1,911     6,344,328   $ 37.86     5.5 %

2015

    1,987     6,992,366   $ 39.63     6.3 %

2016

    1,644     5,237,467   $ 41.52     5.0 %

2017

    1,544     5,203,214   $ 44.64     5.3 %

2018

    1,534     5,868,249   $ 47.70     6.4 %

2019

    1,334     5,189,423   $ 45.31     5.4 %

2020

    1,023     3,959,029   $ 44.31     4.0 %

2021 and Thereafter

    569     3,114,912   $ 37.04     2.6 %

Specialty Leasing Agreements w/ terms in excess of 12 months

    1,692     4,258,276   $ 13.85     1.3 %

Anchor Tenants

                         

2011

   
6
   
687,400
 
$

5.23
   
0.1

%

2012

    22     2,391,624   $ 3.69     0.2 %

2013

    31     3,868,995   $ 4.60     0.4 %

2014

    33     3,460,414   $ 4.65     0.4 %

2015

    28     3,337,128   $ 3.02     0.2 %

2016

    20     2,294,049   $ 3.52     0.2 %

2017

    5     871,969   $ 1.28      

2018

    9     906,997   $ 6.23     0.1 %

2019

    9     1,136,399   $ 3.34     0.1 %

2020

    11     1,149,573   $ 5.50     0.1 %

2021 and Thereafter

    33     3,642,551   $ 5.84     0.5 %

(1)
Annual rental revenues represent 2010 consolidated and joint venture combined base rental revenue.

31


Table of Contents

International Properties

            Our ownership interests in properties outside the United States are primarily owned through joint venture arrangements. However, we have direct minority investments in certain real estate companies within the U.K. as further described below.

            Gallerie Commerciali Italia, S.p.A., or GCI, is a fully integrated European retail real estate developer, owner and manager of 45 properties in Italy. At December 31, 2010, we had a 49.0% ownership interest in GCI. Our properties in Italy consist primarily of hypermarket-anchored shopping centers. Substantially all of these properties are anchored by the hypermarket retailer Auchan, who is also our partner in GCI. Certain of the properties in Italy are subject to leaseholds whereby GCI leases all or a portion of the premises from a third party who is entitled to receive substantially all the economic benefits of that portion of the properties. Auchan is one of the two largest hypermarket operators in Europe. These centers comprise over 10.1 million square feet of GLA and were 97.2% leased as of December 31, 2010.

            On July 15, 2010, we and our partner in Simon Ivanhoe, Ivanhoe Cambridge Inc., or Ivanhoe Cambridge, sold our collective interests in Simon Ivanhoe which owned seven shopping centers located in France and Poland to Unibail-Rodamco. The joint venture partners received net consideration of €422.5 million for their interests after the repayment of all joint venture debt, subject to certain post-closing adjustments. Our share of the gain on sale of our interests in Simon Ivanhoe was approximately $281 million. A portion of the proceeds was used to repay the €167.4 million (approximately $215 million) principal balance on the Euro-denominated tranche of our Credit Facility.

            We and Ivanhoe Cambridge have the right to participate with Unibail-Rodamco in the potential development of up to five new retail projects in the Simon Ivanhoe pipeline, subject to customary approval rights. We will own a 25% interest in any of these projects in which we agree to participate.

            We also hold real estate interests in eight operating joint venture properties in Japan, one operating joint venture property in Mexico, one operating joint venture property and two joint venture properties under development in South Korea, and one joint venture property under development in Malaysia. The eight Japanese Premium Outlets operate in various cities throughout Japan and are held in a joint venture with Mitsubishi Estate Co., Ltd. These centers comprise over 2.5 million square feet of GLA and were 99.8% leased as of December 31, 2010.

            The following summarizes our holdings in these international joint ventures and the underlying countries in which these joint ventures own and operate real estate properties as of December 31, 2010:

Holdings
  Ownership
Interest
  Properties
open and
operating
  Countries of
Operation

Chelsea Japan Co. Ltd. 

    40.0 %   8   Japan

Premium Outlets Punta Norte (Mexico City)

    50.0 %   1   Mexico

Yeoju Premium Outlets (Seoul)

    50.0 %   1   South Korea

            In July 2010, we completed construction and opened a 62,000 square foot expansion at Toki Premium Outlets in Toki, Japan.

            Prior to May 7, 2010 we held a minority interest in Liberty International, PLC, or Liberty, a U.K. Real Estate Investment Trust that operated regional shopping centers and owned other prime retail assets throughout the U.K. Effective May 7, 2010, Liberty completed a demerger in which it was separated into two companies, Capital Shopping Centres Group PLC, or CSCG, and Capital & Counties Properties PLC, or CAPC. Liberty shareholders acquired the same number of shares of CSCG and CAPC as they owned in Liberty. CSCG operates regional shopping centers and is the owner of other retail assets primarily located in the United Kingdom. CAPC is predominantly focused on property investment and development in central London. Our interest in CSCG and CAPC is adjusted to their quoted market price, including a related foreign exchange component. Our interests in CSCG and CAPC are less than 6% of their outstanding shares respectively.

            The following property table summarizes certain data for our properties located in Europe, Japan, Mexico, and Korea at December 31, 2010.

32


Table of Contents

Simon Property Group, L.P. and Subsidiaries
International Properties

 
  COUNTRY/Property Name   City (Metropolitan area)   Ownership
Interest
  SPG
Effective
Ownership
  Year
Built
  Total Gross
Leasable Area
  Retail Anchors and
Major Tenants
    ITALY                            
1.   Ancona — Senigallia   Senigallia (Ancona)   Fee     49.0 % 1995     82,800   IPERSimply, Samoiraghi & Vigano
2.   Ascoli Piceno — Grottammare   Grottammare (Ascoli Piceno)   Fee     49.0 % 1995     94,800   IPERSimply
3.   Ascoli Piceno — Porto Sant'Elpidio   Porto Sant'Elpidio (Ascoli Piceno)   Fee     49.0 % 1999     162,300   Auchan, Benetton, Giacomelli Sport, Bata Superstore
4.   Bari — Casamassima   Casamassima (Bari)   Fee     49.0 % 1995     547,800   Auchan, Coin, Upim, Oviesse, Leroy Merlin, Decathlon
    5.Bari — Modugno   Modugno (Bari)   Fee     49.0 % 2004     143,500   Auchan, Euronics, Inverso
6.   Brescia — Mazzano   Mazzano (Brescia)   Fee / Leasehold     49.0 %(2) 1994     230,700   Auchan, Bricocenter, Trony, Bata, Conbipel, OVS
7.   Brindisi-Mesagne   Mesagne (Brindisi)   Fee     49.0 % 2003     228,600   Auchan, Euronics, Iper Sport, Benetton
8.   Cagliari — Santa Gilla   Cagliari   Fee / Leasehold     49.0 %(2) 1992     190,700   Auchan, Bricocenter, Bata
9.   Catania — La Rena   Catania   Fee     49.0 % 1998     146,200   Auchan
10.   Catania   Catania   Fee     24.0 % 2010     641,700   Auchan
11.   Cinisello   Cinisello (Milano)   Fee     49.0 % 2007     375,600   Auchan, H&M, Darty, Scarpe & Scarpe, Conbipel, Piazza Italia, Nike
12.   Cuneo   Cuneo (Torino)   Fee     49.0 % 2004     282,200   Auchan, Bricocenter, Decathlon, Euronics, OVS Industry
13.   Giugliano   Giugliano (Napoli)   Fee     49.0 %(4) 2006     754,500   Auchan, Piazza Italia, Conbipel, Euronics, Oviesse, Eldo, Leroy Merlin, Decathlon, Scarpe & Scarpe, Alcott, Bershka, Fair, Zara, Pull & Bear
14.   Milano — Rescaldina   Rescaldina (Milano)   Fee     49.0 % 2000     377,100   Auchan, Bricocenter, Media World, OVS Industry
15.   Milano — Vimodrone   Vimodrone (Milano)   Fee     49.0 % 1989     190,600   Auchan, Bricocenter
16.   Napoli — Pompei   Pompei (Napoli)   Fee     49.0 % 1990     91,400   Auchan, Euronics
17.   Napoli — Argine   Napli   Fee     24.0 % 2010     296,200   Auchan, Euronics, Pia Aitalia,
18.   Nola — Volcano Buono   Nola (Napoli)   Ground Lease (2080)     22.1 % 2007     876,000   Auchan, Coin, Holiday Inn, Media World, Alcott, Bershka, H&M, Nike, Zara, Zara Home
19.   Padova   Padova   Fee     49.0 % 1989     105,800   Auchan
20.   Palermo   Palermo   Fee     49.0 % 1990     82,900   Auchan
21.   Pesaro — Fano   Fano (Pesaro)   Fee     49.0 % 1994     112,300   Auchan, Euronics
22.   Pescara   Pescara   Fee     49.0 % 1998     161,500   Auchan, Upim, Euronics
23.   Pescara — Cepagatti   Cepagatti (Pescara)   Fee     49.0 % 2001     269,800   Auchan, Bata, Expert, Conbipel
24.   Piacenza — San Rocco al Porto   San Rocco al Porto (Piacenza)   Fee     49.0 % 1992     179,200   Auchan, Euronics, Benetton
25.   Roma — Collatina   Collatina (Roma)   Fee     49.0 % 1999     63,600   Auchan
26.   Sassari — Predda Niedda   Predda Niedda (Sassari)   Fee / Leasehold     49.0 %(2) 1990     233,700   Auchan, Bricocenter, OVS Industry, Bata
27.   Taranto   Taranto   Fee     49.0 % 1997     201,700   Auchan, Bricocenter, OVS Industry, Expert, Iper Sport
28.   Torino   Torino   Fee     49.0 % 1989     171,800   Auchan, OVS Industry, Norouto, Benetton
29.   Torino — Venaria   Venaria (Torino)   Fee     49.0 % 1982     165,600   Auchan, Bricocenter
30.   Venezia — Mestre   Mestre (Venezia)   Fee     49.0 % 1995     246,700   Auchan, Oviesse, Benetton, Scarpe & Scarpe
31.   Vicenza   Vicenza   Fee     49.0 % 1995     98,500   Auchan, Piazza Italia
32.   Ancona   Ancona   Leasehold     49.0 %(3) 1993     165,200   Auchan, King Sport, Upim, L'isola del Ristoro
33.   Bergamo   Bergamo   Leasehold     49.0 %(3) 1976     119,900   Auchan
34.   Brescia — Concesio   Concesio (Brescia)   Leasehold     49.0 %(3) 1972     117,500   Auchan, Bata
35.   Cagliari — Marconi   Cagliari   Leasehold     49.0 %(3) 1994     193,400   Auchan, Bricocenter, Bata. Trony, Cisalfa, Conbipel
36.   Catania — Misterbianco   Misterbianco (Catania)   Leasehold     49.0 %(3) 1989     99,300   Auchan
37.   Merate — Lecco   Merate (Lecco)   Leasehold     49.0 %(3) 1976     162,000   Auchan, Bricocenter, Super Media
38.   Milano — Cesano Boscone   Cesano Boscone (Milano)   Leasehold     49.0 %(3) 2005     283,900   Auchan, Darty
39.   Milano — Nerviano   Nerviano (Milano)   Leasehold     49.0 %(3) 1991     111,600   Auchan
40.   Monza   Monza   Leasehold     49.0 %(3)       211,700   Auchan, UniEuro, Adidas, Conbipel, H&M
41.   Napoli — Mugnano di Napoli   Mugnano di Napoli   Leasehold     49.0 %(3) 1992     192,900   Auchan, Bricocenter, OVS Industry, Eldo
42.   Olbia   Olbia   Leasehold     49.0 %(3) 1993     207,600   Auchan, Terranova, Bata, Unieuro, Zara
43.   Roma — Casalbertone   Roma   Leasehold     49.0 %(3) 1998     147,600   Auchan, Cisalfa, OVS Industry, Benetton
44.   Torino — Rivoli   Rivoli (Torino)   Leasehold     49.0 %(3) 1986     94,100   Auchan, OVS Industry, Norauto
45.   Verona — Bussolengo   Bussolengo (Verona)   Leasehold     49.0 %(3) 1975     164,600   Auchan, Bricocenter, Bata
                               
    Subtotal Italy                       10,077,100    

33


Table of Contents

Simon Property Group, L.P. and Subsidiaries
International Properties

 
  COUNTRY/Property Name   City (Metropolitan area)   Ownership
Interest
  SPG
Effective
Ownership
  Year
Built
  Total Gross
Leasable Area
  Retail Anchors and
Major Tenants
    JAPAN                            
46.   Ami Premium Outlets   Ami (Tokyo)   Fee     40.0 % 2009     224,800   Adidas, BCBG Max Azria, Beams, Brooks Brothers, Coach, Cole Haan, Diesel, Gap Outlet, Lanvin en Bleu, Laundry, McGregor, MK Michel Klein Homme, Pal Zileri, Tommy Hilfiger, Ralph Lauren
47.   Gotemba Premium Outlets   Gotemba City (Tokyo)   Fee     40.0 % 2000     482,000   Armani Factory Store, Balenciaga, Bally, Beams, Bottega Veneta, Burberry, Coach, Diesel, Dolce & Gabbana, Dunhill, Gap Outlet, Gucci, Jill Stuart, Loro Piana, Miu Miu, Moschino, Nike, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Tod's
48.   Kobe-Sanda Premium Outlets   Hyougo-ken (Osaka)   Ground Lease (2026)     40.0 % 2007     365,100   Adidas, Armani Factory Store, Bally, Banana Republic, Beams, Brooks Brothers, Coach, Cole Haan, Diesel, Etro, Gap Outlet, Gucci, Harrod's, Helmut Lang, Hugo Boss, Loro Piana, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Theory, Tommy Hilfiger, Valentino
49.   Rinku Premium Outlets   Izumisano (Osaka)   Ground Lease (2020)     40.0 % 2000     321,800   Adidas, Armani Factory Store, Bally, BCBG Max Azria, Beams, Brooks Brothers, Coach, Cole Haan, Diesel, Dolce & Gabbana, Dunhill, Eddie Bauer, Etro, Furla, Gap Outlet, Hugo Boss, Jill Stuart, Kate Spade, Lacoste, Lanvin Collection, Nike, Polo Ralph Lauren,
50.   Sano Premium Outlets   Sano (Tokyo)   Ground Lease (2022)     40.0 % 2003     390,800   Adidas, Armani Factory Store, Bally, Beams, Brooks Brothers, Coach, Cynthia Rowley, Diesel, Dolce & Gabbana, Dunhill, Eddie Bauer, Escada, Etro, French Connection, Furla, Gap Outlet, Gucci, Harrod's, Kate Spade, Lanvin Collection, Miu Miu, Nike, Polo Ralph Lauren
51.   Sendai-Izumi Premium Outlets   Izumi Park Town (Sendai)   Ground Lease (2027)     40.0 % 2008     164,200   Beams, Brooks Brothers, Bose, Coach, Jill Stuart, Kipling, Laundry, Levi's, Miss Sixty, Pleats Please Issey Miyake, Ray Ban, Tasaki
52.   Toki Premium Outlets   Toki (Nagoya)   Ground Lease (2024)     40.0 % 2005     289,600   Adidas, BCBG Max Azria, Beams, Brooks Brothers, Coach, Diesel, Eddie Bauer, Furla, Gap Outlet, Lacoste, Laundry, MK Michel Klein, Nike, Olive des Olive, Polo Ralph Lauren, Timberland, Tommy Hilfiger
53.   Tosu Premium Outlets   Fukuoka (Kyushu)   Ground Lease (2023)     40.0 % 2004     239,800   Adidas, Armani Factory Store, BCBG Max Azria, Beams, Bose, Brooks Brothers, Coach, Cole Haan, Courreges, Dolce & Gabbana, Furla, Gap Outlet, Miki House, Nike, Quiksilver, Reebok, Theory, Tommy Hilfiger
                               
    Subtotal Japan                       2,478,100    
    MEXICO                            
54.   Punta Norte Premium Outlets   Mexico City   Fee     50.0 % 2004     278,000   Adidas, Calvin Klein, CH Carolina Herrera, Coach, Kenneth Cole, Lacoste, Levi's, MaxMara, Nautica, Nike, Palacio Outlet, Reebok, Roberto Cavalli, Rockport, Salvatore Ferragamo, Swarovski, Zegna
    SOUTH KOREA                            
55.   Yeoju Premium Outlets   Yeoju (Seoul)   Fee     50.0 % 2007     276,200   Adidas, Giorgio Armani, Bally, Burberry, Chloe, Coach, Diesel, Dolce & Gabbana, Escada, Fendi, Furla, Gucci, Lacoste, Marc Jacobs, Marks & Spencer, Michael Kors, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Theory, Tod's, Valentino, Vivienne Westwood,
                               
    TOTAL INTERNATIONAL ASSETS                       13,109,400    
                               

FOOTNOTES:

34


Table of Contents

            We have direct or indirect ownership interests in approximately 550 acres of land held in the United States for future development.

            Due to the size of our portfolio, we focus on energy efficiency as a core sustainability strategy. Through the continued use of energy conservation practices, energy efficiency projects, and continuous monitoring and reporting, we have reduced our energy consumption at comparable properties every year since 2003. As a result, excluding new developments and expansions, we reduced the electricity usage over which we have direct control by 295 million kWhs since 2003. This represents a 22% percent reduction in electricity usage across a portfolio of comparable properties and reflects an annual value of over $34 million in avoided operating costs. Our documented reduction in greenhouse gas emissions resulting from our energy management efforts is 182,000 metric tons CO2e.

            In 2010, Simon Property was awarded NAREIT's Leader in the Light Award for the sixth year in a row and is the only company to have achieved the Leader in the Light distinction every single year since NAREIT launched the program in 2005. Simon Property was also included in the 2009 Carbon Disclosure Project's Global 500 Carbon Disclosure Leadership Index. The 2009 Carbon Disclosure Leadership Index highlights 50 companies worldwide that have displayed the most professional approach to corporate governance with respect to climate change disclosure practices. Simon Property was the only real estate company to be recognized.

            The following table sets forth certain information regarding the mortgages and other indebtedness encumbering our properties, and the properties held by our domestic and international joint venture arrangements, and also our unsecured corporate debt. Substantially all of the mortgage and property related debt is nonrecourse to us.

35


Table of Contents


MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Consolidated Indebtedness:

                         

Secured Indebtedness:

                         

Anderson Mall

    6.20 % $ 26,754   $ 2,216     10/10/12  

Arsenal Mall HCHP

    8.20 %   846     202     05/05/16  

Bangor Mall

    6.15 %   80,000     4,918   (2)   10/01/17  

Battlefield Mall

    4.60 %   90,885     6,154     07/01/13  

Birch Run Premium Outlets

    5.95 %   109,113   (39)   8,078     04/11/16  

Bloomingdale Court

    8.15 %   26,262     2,495     11/01/15  

Brunswick Square

    5.65 %   80,965     5,957     08/11/14  

Calhoun Premium Outlets

    5.79 %   20,974   (34)   1,519     09/01/16  

Carolina Premium Outlets — Smithfield

    9.10 %   19,047   (6)   2,114     03/10/13   (25)

Century III Mall

    6.20 %   78,973   (9)   6,541     10/10/12  

Chesapeake Square

    5.84 %   68,796     5,162     08/01/14  

The Crossings Premium Outlets

    5.85 %   50,927     4,649     03/13/13  

Crystal River

    9.63 %   14,441     1,385     11/11/30  

Dare Centre

    9.10 %   1,586   (6)   176     03/10/13   (25)

DeKalb Plaza

    5.28 %   2,815     284     01/01/15  

Desoto Square

    5.89 %   63,156     4,561     07/01/14  

Ellenton Premium Outlets

    5.51 %   107,735   (21)   7,646     01/11/16  

The Factory Shoppes at Branson Meadows

    9.10 %   8,858   (6)   983     03/10/13   (25)

Factory Stores of America

    9.10 %   15,306   (6)   1,699     03/10/13   (25)

Florida City Outlet Center

    5.51 %   10,995   (21)   780     01/11/16  

Forest Mall

    6.20 %   15,883   (10)   1,316     10/10/12  

Forest Plaza

    7.50 %   18,685     1,685     10/10/19  

Gaffney Premium Outlets

    5.79 %   38,065   (34)   2,757     09/01/16  

Gateway Shopping Center

    5.89 %   87,000     5,124   (2)   10/01/11  

Greenwood Park Mall

    8.00 %   79,097   (37)   7,044     08/01/16  

Grove City Premium Outlets

    5.51 %   116,314   (21)   8,270     01/11/16  

Gulfport Premium Outlets

    5.51 %   25,948   (21)   1,842     01/11/16  

Gwinnett Place

    5.68 %   115,000     6,532   (2)   06/08/12  

Hagerstown Premium Outlets

    5.95 %   91,680   (39)   6,787     04/11/16  

Henderson Square

    6.94 %   14,100     1,270     07/01/11  

Highland Lakes Center

    6.20 %   14,641   (9)   1,213     10/10/12  

Huntley Outlet Center

    5.51 %   30,753   (21)   2,183     01/11/16  

Independence Center

    5.94 %   200,000     11,886   (2)   07/10/17  

Ingram Park Mall

    6.99 %   74,493   (20)   6,724     08/11/11  

Kittery Premium Outlets

    5.39 %  (11)   43,556   (7)   2,347   (2)   07/10/13   (3)

Knoxville Center

    6.99 %   56,410   (20)   5,092     08/11/11  

Lake View Plaza

    8.00 %   15,885     1,409     01/01/15  

Lakeline Plaza

    7.50 %   17,504     1,578     10/10/19  

Las Americas Premium Outlets

    5.84 %   180,000     10,511   (2)   06/11/16  

Lebanon Premium Outlets

    5.51 %   15,953   (21)   1,132     01/11/16  

Lee Premium Outlets

    5.79 %   52,358   (34)   3,792     09/01/16  

Lighthouse Place Premium Outlets

    5.39 %  (11)   88,623   (7)   4,775   (2)   07/10/13   (3)

Longview Mall

    6.20 %   29,726   (9)   2,462     10/10/12  

MacGregor Village

    9.10 %   6,378   (6)   708     03/10/13   (25)

Markland Mall

    6.20 %   21,031   (10)   1,742     10/10/12  

Midland Park Mall

    6.20 %   30,702   (10)   2,543     10/10/12  

Montgomery Mall

    5.17 %   86,063     6,307     05/11/34  

Muncie Plaza

    7.50 %   7,277     656     10/10/19  

36


Table of Contents


MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Naples Outlet Center

    5.51 %   16,531   (21)   1,173     01/11/16  

North Ridge Shopping Center

    9.10 %   7,790   (6)   865     03/10/13   (25)

Northfield Square

    6.05 %   27,575     2,485     02/11/14  

Northlake Mall

    6.99 %   65,075   (20)   5,874     08/11/11  

Oxford Valley Mall

    4.77 %   71,000     4,456     12/07/20  

Penn Square Mall

    7.75 %   98,498     8,597     04/01/16  

Philadelphia Premium Outlets

    4.19 %  (11)   190,000     7,969   (2)   07/30/14   (3)

Pismo Beach Premium Outlets

    5.84 %   33,850   (36)   1,978   (2)   11/06/16  

Plaza Carolina — Fixed

    7.50 %   88,657     7,552     06/01/14  

Plaza Carolina — Variable Swapped

    7.63 %  (11)   97,335     8,498     06/01/14  

Pleasant Prairie Premium Outlets

    5.51 %   61,988   (21)   4,400     01/11/16  

Pleasant Prairie Premium Outlets II

    6.01 %   37,363     2,758     12/01/16  

Port Charlotte Town Center

    5.30 %   48,398     3,232     11/01/20  

Prime Outlets Jeffersonville

    5.51 %   72,175   (21)   5,123     01/11/16  

Puerto Rico Premium Outlets

    3.75 %  (24)   74,516     3,965     05/01/14  

Queenstown Premium Outlets

    5.84 %   66,150   (36)   3,864   (2)   11/06/16  

Regency Plaza

    5.50 %  (24)   3,893   (4)   331     12/14/14   (3)

Richmond Towne Square

    6.20 %   43,124   (10)   3,572     10/10/12  

San Marcos Premium Outlets

    5.51 %   147,523   (21)   10,470     01/11/16  

SB Boardman Plaza Holdings

    5.94 %   22,601     1,687     07/01/14  

Secured Term Loan

    0.96 %  (1)   735,000     7,061   (2)   03/05/12  

South Park Mall

    8.00 %   195,764   (37)   17,434     08/01/16  

St. Charles Towne Plaza

    5.50 %  (24)   25,303   (4)   2,152     12/14/14   (3)

Stanford Shopping Center

    2.41 %  (1)   240,000     5,786   (2)   07/01/13   (3)

Summit Mall

    5.42 %   65,000     3,526   (2)   06/10/17  

Sunland Park Mall

    8.63 %  (13)   31,856     3,773     01/01/26  

Tacoma Mall

    7.00 %   118,001     10,778     10/01/11  

Texas Lifestyle Centers Secured Loan

    3.86 %  (5)   260,000   (8)   10,026   (2)   09/23/13   (3)

Town Center at Cobb

    5.74 %   280,000     16,072   (2)   06/08/12  

Towne West Square

    6.99 %   48,760   (20)   4,402     08/11/11  

Upper Valley Mall

    5.89 %   47,108     3,406     07/01/14  

Valle Vista Mall

    5.35 %   40,000     3,598   (2)   05/10/17  

Walt Whitman Mall

    8.00 %   120,622   (37)   10,742     08/01/16  

Washington Square

    5.94 %   27,835     1,653   (2)   07/01/16   (3)

Waterloo Premium Outlets

    5.39 %  (11)   72,822   (7)   3,923   (2)   07/10/13   (3)

West Ridge Mall

    5.89 %   67,568     4,885     07/01/14  

West Ridge Plaza

    5.50 %  (24)   4,866   (4)   414     12/14/14   (3)

White Oaks Mall

    5.54 %   50,000     2,768   (2)   11/01/16  

White Oaks Plaza

    7.50 %   14,554     1,312     10/10/19  

Williamsburg Premium Outlets

    5.95 %   105,916   (39)   7,841     04/11/16  

Wolfchase Galleria

    5.64 %   225,000     12,700   (2)   04/01/17  

Woodland Hills Mall

    7.79 %   96,047     8,414     04/05/19  
                         
 

Total Consolidated Secured Indebtedness

        $ 6,597,623              

Unsecured Indebtedness:

                         

Simon Property Group, LP:

                         

Unsecured Revolving Credit Facility — USD

    2.36 %  (15) $ 585,000   $ 13,810   (2)   03/31/13  

Revolving Credit Facility — Yen Currency

    2.23 %  (15)   273,637   (33)   6,092   (2)   03/31/13  

Unsecured Notes — 4C

    7.38 %   200,000     14,750   (14)   06/15/18  

Unsecured Notes — 6B

    7.75 %   77,639   (32)   6,017   (14)   01/20/11  

Unsecured Notes — 8B

    6.35 %   106,065     6,735   (14)   08/28/12  

Unsecured Notes — 9B

    5.45 %   122,288     6,665   (14)   03/15/13  

37


Table of Contents


MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Unsecured Notes — 10B

    4.90 %   200,000     9,800   (14)   01/30/14  

Unsecured Notes — 11B

    5.63 %   218,430     12,287   (14)   08/15/14  

Unsecured Notes — 12A

    5.10 %   600,000     30,600   (14)   06/15/15  

Unsecured Notes — 13A

    5.38 %   120,022     6,451   (14)   06/01/11  

Unsecured Notes — 13B

    5.75 %   600,000     34,500   (14)   12/01/15  

Unsecured Notes — 14A

    5.75 %   74,245     4,269   (14)   05/01/12  

Unsecured Notes — 14B

    6.10 %   400,000     24,400   (14)   05/01/16  

Unsecured Notes — 15A

    5.60 %   101,517     5,685   (14)   09/01/11  

Unsecured Notes — 15B

    5.88 %   500,000     29,375   (14)   03/01/17  

Unsecured Notes — 16A

    5.00 %   159,753     7,988   (14)   03/01/12  

Unsecured Notes — 16B

    5.25 %   650,000     34,125   (14)   12/01/16  

Unsecured Notes — 19A

    5.30 %   237,897     12,609   (14)   05/30/13  

Unsecured Notes — 19B

    6.13 %   800,000     49,000   (14)   05/30/18  

Unsecured Notes — 20A

    10.35 %   650,000     67,275   (14)   04/01/19  

Unsecured Notes — 21A

    6.75 %   516,052     34,834   (14)   05/15/14  

Unsecured Notes — 22A

    4.20 %   400,000     16,800   (14)   02/01/15  

Unsecured Notes — 22B

    5.65 %   1,250,000     70,625   (14)   02/01/20  

Unsecured Notes — 22C

    6.75 %   600,000     40,500   (14)   02/01/40  

Unsecured Notes — 23A

    4.38 %   900,000     39,375   (14)   03/01/21  
                         

          10,342,545              

The Retail Property Trust, subsidiary:

                         

Unsecured Notes — CPI 4

    7.18 %   75,000     5,385   (14)   09/01/13  

Unsecured Notes — CPI 5

    7.88 %   250,000     19,688   (14)   03/15/16  
                         

          325,000              

CPG Partners, LP, subsidiary:

                         

Unsecured Notes — CPG 5

    8.25 %   83,588   (40)   6,896   (14)   02/01/11  

Unsecured Notes — CPG 6

    6.88 %   50,642     3,482   (14)   06/15/12  

Unsecured Notes — CPG 7

    6.00 %   69,334     4,160   (14)   01/15/13  
                         

          203,564              
                         
 

Total Consolidated Unsecured Indebtedness

       
$

10,871,109
             
                         
 

Total Consolidated Indebtedness at Face Amounts

        $ 17,468,732              
 

Net Premium on Indebtedness

          44,207              
 

Net Discount on Indebtedness

          (39,179 )            
                         
 

Total Consolidated Indebtedness

        $ 17,473,760              
                         
 

Our Share of Consolidated Indebtedness

        $ 17,206,280              
                         

Joint Venture Indebtedness:

                         

Secured Indebtedness:

                         

Ami Premium Outlets

    2.09 % $ 136,655   (26) $ 10,513     09/25/23  

Atrium at Chestnut Hill

    6.89 %   42,975     3,880     03/11/31  

Auburn Mall

    6.02 %   41,881     3,027     09/01/20  

Aventura Mall

    5.91 %   430,000     25,392   (2)   12/11/17  

Avenues, The

    5.29 %   69,689     5,325     04/01/13  

Busan Premium Outlets

    5.70 %  (31)   15,025   (17)   856   (2)   12/28/15  

California Department Stores

    6.53 %   31,300     2,044   (2)   11/01/17  

Cape Cod Mall

    6.80 %   87,225     7,821     03/11/11  

38


Table of Contents


MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Circle Centre Mall

    5.02 %   69,809     5,165     04/11/13  

Clay Terrace

    5.08 %   115,000     5,842   (2)   10/01/15  

Cobblestone Court

    5.00 %  (28)   2,356     431     05/05/12  

Coconut Point

    5.83 %   230,000     13,409   (2)   12/10/16  

Coddingtown Mall

    3.16 %  (1)   14,250     1,059     07/01/14   (3)

Crystal Mall

    5.62 %   92,611     7,319     09/11/32  

Dadeland Mall

    6.75 %   177,300     15,566     02/11/32  

Domain Residential Phase II

    2.26 %  (1)   36,569     827   (2)   07/22/13   (3)

Domain Residential Building P

    2.26 %  (1)   3,657     83   (2)   11/07/11  

Domain Westin

    2.21 %  (1)   39,570     875   (2)   10/15/13   (3)

Eastland Mall

    5.79 %   168,000     9,734   (2)   06/01/16  

Emerald Square Mall

    5.13 %   126,640     9,479     03/01/13  

Empire Mall

    5.79 %   176,300     10,215   (2)   06/01/16  

Fashion Centre Pentagon Retail

    6.63 %   146,453     12,838     09/11/11   (25)

Fashion Centre Pentagon Office

    5.50 %  (30)   40,000     2,200   (2)   10/01/12   (3)

Fashion Valley Mall

    4.30 %   475,000     20,425   (2)   01/04/21  

Firewheel Residential

    5.91 %   22,931     1,635     11/20/16   (3)

Florida Mall, The

    5.25 %   373,704     24,849     09/05/20  

Gaitway Plaza

    4.60 %   13,900     640   (2)   07/01/15  

Galleria Commerciali Italia — Facility A

    5.37 %  (16)   301,592     21,531     12/22/11  

Galleria Commerciali Italia — Facility B

    5.85 %  (16)   299,087     22,566     12/22/11  

Galleria Commerciali Italia — Catania

    1.74 %  (16)   92,931     1,614   (2)   12/17/12  

Galleria Commerciali Italia — Cinisello — Fixed

    5.38 %  (16)   96,997     6,719     03/31/15  

Galleria Commerciali Italia — Cinisello — Variable

    1.76 %  (16)   68,003     1,881     03/31/15  

Galleria Commerciali Italia — Giugliano A

    4.77 %  (16)   35,783     1,708   (2)   10/20/13  

Galleria Commerciali Italia — Giugliano B

    4.78 %  (16)   32,401     2,433     10/20/13  

Galleria Commerciali Italia — Giugliano C

    5.19 %  (16)   13,041     1,511     10/20/13  

Granite Run Mall

    5.83 %   114,963     8,622     06/01/16  

Greendale Mall

    6.00 %   45,000     2,699   (2)   10/01/16  

Gotemba Premium Outlets — Fixed

    1.57 %   58,811   (26)   12,348     10/25/14  

Gotemba Premium Outlets — Variable

    0.63 %  (12)   7,800   (26)   1,349     05/31/12  

Hamilton Town Center

    1.86 %  (1)   95,283     1,773   (2)   05/29/12   (3)

Houston Galleria — 1

    5.44 %   643,583     34,985   (2)   12/01/15  

Houston Galleria — 2

    5.44 %   177,417     9,644   (2)   12/01/15  

Indian River Commons

    5.21 %   9,494     637     11/01/14  

Indian River Mall

    5.21 %   64,325     4,313     11/01/14  

King of Prussia Mall — 1

    7.49 %   112,899     23,183     01/01/17  

King of Prussia Mall — 2

    8.53 %   7,976     1,685     01/01/17  

Kobe Sanda Premium Outlets — Fixed

    1.49 %   23,142   (26)   3,937     01/31/14  

Kobe Sanda Premium Outlets — Variable

    0.89 %  (12)   58,009   (26)   7,628     01/31/14  

Lehigh Valley Mall

    5.88 %   139,280     9,943     07/05/20  

Liberty Tree Mall

    5.22 %   35,000     1,827   (2)   10/11/13  

Mall at Rockingham

    5.61 %   260,000     14,586   (2)   03/10/17  

Mall of New Hampshire

    6.23 %   133,085     10,079     10/05/15  

Mesa Mall

    5.79 %   87,250     5,055   (2)   06/01/16  

Miami International Mall

    5.35 %   91,592     6,533     10/01/13  

Northshore Mall

    5.03 %   198,255     13,566     03/11/34  

Paju Premium Outlets

    5.92 %  (31)   50,578   (17)   2,994   (2)   04/01/13  

Plaza at Buckland Hills, The

    4.60 %   24,800     1,142   (2)   07/01/15  

Quaker Bridge Mall

    7.03 %   17,644     2,407     04/01/16  

Ridgewood Court

    4.60 %   14,650     674   (2)   07/01/15  

Rinku Premium Outlets

    1.85 %   27,913   (26)   8,108     11/25/14  

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MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Rushmore Mall

    5.79 %   94,000     5,446   (2)   06/01/16  

Sano Premium Outlets

    0.52 %  (12)   42,033   (26)   20,436     05/31/18  

Seminole Towne Center

    3.26 %  (22)   66,560     4,871     08/09/11  

Sendai Premium Outlets

    0.48 %  (12)   37,283   (26)   4,660     10/31/18  

Shops at Sunset Place, The

    5.62 %   78,648     5,892     09/01/20  

Smith Haven Mall

    5.16 %   180,000     9,283   (2)   03/01/16  

Solomon Pond

    3.97 %   104,947     6,505     08/01/13  

Source, The

    6.65 %   124,000     8,246   (2)   01/31/11  

Southern Hills Mall

    5.79 %   101,500     5,881   (2)   06/01/16  

SouthPark Residential

    3.01 %  (1)   21,111     636   (2)   02/23/13  

Springfield Mall

    4.77 %  (11)   67,000     3,194   (2)   11/30/15  

Square One

    6.73 %   84,395     7,380     03/11/12  

St. Johns Town Center

    5.06 %   168,456     11,026     03/11/15  

St. John's Town Center Phase II

    5.50 %  (11)   77,500     4,266   (2)   05/10/15   (3)

Toki Premium Outlets — Fixed

    1.80 %   8,830   (26)   2,869     10/31/11  

Toki Premium Outlets — Variable

    1.14 %  (12)   16,216   (26)   2,093     04/30/15  

Tosu Premium Outlets — Fixed

    1.50 %   6,298   (26)   2,396     08/24/13  

Tosu Premium Outlets — Variable

    0.63 %  (12)   10,302   (26)   1,536     01/31/12  

Valley Mall

    5.83 %   44,646     3,357     06/01/16  

Village Park Plaza

    4.60 %   29,850     1,374   (2)   07/01/15  

West Town Corners

    4.60 %   18,800     865   (2)   07/01/15  

West Town Mall

    6.34 %   210,000     13,309   (2)   12/01/17  

Westchester, The

    6.00 %   372,347     26,980     05/05/20  

Whitehall Mall

    7.00 %   11,712     1,149     11/01/18  

Yeoju Premium Outlets

    6.20 %  (31)   4,419   (17)   274   (2)   07/31/12  
                         
 

Total Joint Venture Secured Indebtedness at Face Amounts

        $ 8,598,237              

Mills Indebtedness at Face Amounts (detail in The Mills Limited Partnership Summary)

       
$

2,810,565
             
                         
 

Total Joint Venture and Mills Indebtedness at Face Amounts

        $ 11,408,802              
 

Net Premium on Indebtedness

          10,777              
 

Net Discount on Indebtedness

          (895 )            
 

Total Joint Venture Indebtedness

        $ 11,418,684              
                         
 

Our Share of Joint Venture Indebtedness

        $ 6,562,500   (23)            
                         

Mills Indebtedness:

                         

Secured Indebtedness:

                         

Arizona Mills

    5.76 %   174,006     12,268     07/01/20  

Arundel Marketplace

    5.92 %   11,187     884     01/01/14  

Arundel Mills

    6.14 %   383,314     28,116     08/01/14  

Block at Orange

    6.25 %   220,000     13,753   (2)   10/01/14  

Briarwood Mall

    7.50 %   118,006     10,641     11/30/16  

Colorado Mills

    2.04 %  (18)   153,574     3,134   (2)   11/12/11  

Concord Marketplace

    5.76 %   13,023     972     02/01/14  

Concord Mills Mall

    6.13 %   160,891     13,208     12/07/12  

Del Amo Fashion Center

    1.76 %  (1)   307,753     5,418   (2)   01/23/13   (3)

Denver West Village

    8.15 %   21,404     2,153     10/01/11  

Discover Mills — 1

    7.32 %   23,700     1,735   (2)   12/11/11  

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MORTGAGE AND OTHER DEBT ON PORTFOLIO PROPERTIES

As of December 31, 2010

(Dollars in thousands)

Property Name   Interest
Rate
  Face
Amount
  Annual
Debt Service (1)
  Maturity
Date
 

Discover Mills — 2

    6.08 %   135,000     8,212   (2)   12/11/11  

Dover Mall & Commons

    2.21 %  (29)   83,756   (35)   1,852   (2)   02/01/12   (3)

Esplanade, The

    2.21 %  (29)   75,136   (35)   1,661   (2)   02/01/12   (3)

Falls, The

    7.50 %   114,072     10,287     11/30/16  

Franklin Mills

    5.65 %   290,000     16,385   (2)   06/01/17  

Galleria at White Plains

    2.21 %  (29)   125,566   (35)   2,776   (2)   02/01/12   (3)

Grapevine Mills

    5.91 %  (38)   270,000     15,945   (2)   09/22/14   (3)

Great Mall of the Bay Area

    6.01 %   270,000     16,227   (2)   08/28/15   (3)

Gurnee Mills

    5.77 %   321,000     18,512   (2)   07/01/17  

Hilltop Mall

    4.99 %   64,350     3,211   (2)   07/08/12  

Katy Mills

    6.69 %   141,055     12,207     01/09/13  

Lakeforest Mall

    4.90 %   140,061     8,978     07/08/13   (3)

Liberty Plaza

    5.68 %   43,000     2,442   (2)   06/01/17  

Mall at Tuttle Crossing

    5.05 %   112,625     7,774     11/05/13  

Marley Station

    4.89 %   114,400     5,595   (2)   07/01/12  

Meadowood Mall

    1.13 %  (27)   140,114     1,584   (2)   01/09/12  

Mills Senior Loan Facility

    1.51 %  (1)   655,000     9,895   (2)   06/07/12   (3)

Net Leases II

    9.35 %   20,873     1,952   (2)   01/10/23  

Northpark Mall — Mills

    2.21 %  (29)   105,543   (35)   2,333   (2)   02/01/12   (3)

Ontario Mills

    4.98 %  (11)   175,000     8,718   (2)   12/05/13   (3)

Opry Mills

    6.16 %   280,000     17,248   (2)   10/10/14  

Potomac Mills

    5.83 %   410,000     23,901   (2)   07/11/17  

Sawgrass Mills

    5.82 %   820,000     47,724   (2)   07/01/14  

Shops at Riverside, The

    1.06 %  (1)   138,000     1,464   (2)   11/14/11  

Southdale Center

    5.18 %   157,354     10,430     04/01/13   (3)

Southridge Mall

    5.23 %   124,000     6,489   (2)   04/01/12  

St. Louis Mills

    6.39 %   90,000     5,751   (2)   01/08/12  

Stoneridge Shopping Center

    7.50 %   226,522     19,214     11/30/16  
                         
 

Total Mills Secured Indebtedness

        $ 7,229,285              

Unsecured Indebtedness:

                         

TMLP Trust Preferred Unsecured Securities

    7.38 %   100,000     7,375   (2)   03/30/36   (19)
                         
 

Total Mills Unsecured Indebtedness

        $ 100,000              
                         
 

Total Mills Indebtedness at Face Amounts

        $ 7,329,285              
 

Our Share of Mills Indebtedness

        $ 2,810,565              
                         

(Footnotes on following page)

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(Footnotes for preceding pages)

(1)
Variable rate loans based on LIBOR plus interest rate spreads ranging from 70 bps to 450 bps. LIBOR as of December 31, 2010 was 0.26%.

(2)
Requires monthly payment of interest only.

(3)
Includes applicable extension available at the Applicable Borrower's option.

(4)
Loans secured by these three properties are cross-collateralized and cross-defaulted.

(5)
We have executed a swap agreement that fixes the interest rate on $200 million of this loan at 4.35%.

(6)
Loans secured by these properties are cross-collateralized and cross-defaulted. Factory Stores of America includes Boaz, Georgetown, Graceville, Lebanon, Nebraska City and Story City.

(7)
Loans secured by these three properties are cross-collateralized and cross-defaulted.

(8)
Loan is secured by The Domain Shopping Center, Palms Crossing, and Shops at Arbor Walk and is cross-collateralized and cross-defaulted.

(9)
Loans secured by these three properties are cross-collateralized.

(10)
Loans secured by these four properties are cross-collateralized.

(11)
Associated with these loans are interest rate swap agreements that effectively fix the interest rate of the loans at the all-in rate presented.

(12)
Variable rate loans based on Yen LIBOR plus interest rate spreads ranging from 35 bps to 187.5 bps. Yen LIBOR as of December 31, 2010 was 0.1263%.

(13)
Lender also participates in a percentage of certain gross receipts above a specified base. This threshold was met and additional interest was paid in 2010.

(14)
Requires semi-annual payments of interest only.

(15)
$3,900,000 Credit Facility. As of December 31, 2010, the Credit Facility bears interest at LIBOR+210 basis points and provides for different pricing based upon our investment grade rating. As of December 31, 2010, $3.0 billion was available after outstanding borrowings and letter of credits.

(16)
Amounts shown in USD equivalent. Euro equivalent is 709.1 million. Associated with these loans are interest rate swap agreements with a total combined Euro 587.7 million notional amount that effectively fixes Facility A and B, Giugliano, and a portion of Cinisello at 4.88%.

(17)
Amounts shown in USD equivalent. Won Equivalent is 79,228.0 million.

(18)
LIBOR+1.780%, with LIBOR capped at 4.000%.

(19)
Redeemable beginning 3/30/11, pricing re-sets every 5 years based on an index of LIBOR+2.45%.

(20)
Loans secured by these four properties are cross-collateralized and cross-defaulted.

(21)
Loans secured by these ten properties are cross-collateralized and cross-defaulted.

(22)
LIBOR+3.000%, with LIBOR capped at 8.500%.

(23)
Our share of indebtedness for joint ventures excludes our share of indebtedness of $146.4 million in joint venture entities in which GCI holds a non-controlling interest.

(24)
Through an interest rate floor agreement, the LIBOR rate is currently fixed at 1.50%.

(25)
The maturity date shown represents the anticipated maturity date of the loan which is typically 10-20 years earlier than the stated Maturity Date of the loan. Should the loan not be repaid at the anticipated repayment date the applicable interest rate shall increase as specified in the loan agreement.

(26)
Amounts shown in US Dollar Equivalent. Yen equivalent 35,330.3 million

(27)
LIBOR+0.870%, with LIBOR capped at 4.000%.

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Table of Contents

(28)
Through an interest rate floor agreement, the LIBOR rate is currently fixed at 1.00%.

(29)
LIBOR+1.950%, with LIBOR capped at 6.00%.

(30)
LIBOR+4.500%, with LIBOR capped at 8.250%. Through an interest rate floor agreement, the LIBOR rate is currently fixed at 1.00%.

(31)
Variable rate loans based on 91 Day Korea CD rate plus interest rate spreads ranging from 290 bps to 340 bps. The 91 Day Korea CD rate as of December 31, 2010 was 2.80%.

(32)
Senior note was paid off on 1/20/11.

(33)
Amounts shown in US Dollar Equivalent. Balances include borrowings on multi-currency tranche of Yen 22,265.0 million.

(34)
Loans secured by these three properties are cross-collateralized and cross-defaulted.

(35)
Loans secured by these four properties are cross-collateralized and cross-defaulted.

(36)
Loans secured by these two properties are cross-collateralized and cross-defaulted.

(37)
Loans secured by these three properties are cross-collateralized.

(38)
We have executed a swap agreement that fixes the interest rate on $245 million of this loan at 6.26%.

(39)
Loans secured by these three properties are cross-collateralized.

(40)
Senior note was paid off on 2/1/11.

The changes in consolidated mortgages and other indebtedness for the years ended December 31, 2010, 2009, 2008 are as follows:

   
  2010   2009   2008  
 

Balance, Beginning of Year

  $ 18,630,302   $ 18,042,532   $ 17,218,674  
   

Additions during period:

                   
     

New Loan Originations

    3,709,910     2,073,874     1,833,677  
     

Loans assumed in acquisitions

    1,241,907          
     

Net Premium

    4,360     3,162     (7,192 )
   

Deductions during period:

                   
     

Loan Retirements

    (6,053,631 )   (1,427,858 )   (930,818 )
     

Amortization of Net Premiums

    (9,066 )   (10,627 )   (14,611 )
     

Scheduled Principal Amortization

    (50,022 )   (50,781 )   (57,198 )
                 
 

Balance, Close of Year

  $ 17,473,760   $ 18,630,302   $ 18,042,532  
                 

Item 3.    Legal Proceedings

            We are involved from time-to-time in various legal proceedings that arise in the ordinary course of our business, including, but not limited to commercial disputes, environmental matters, and litigation in connection with transactions including acquisitions and divestitures. We believe that such litigation, claims and administrative proceedings will not have a material adverse impact on our financial position or our results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated.

Item 4.    [Removed and Reserved.]

43


Table of Contents


Part II

Item 5.    Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

            There is no established trading market for our units or preferred units. The following table sets forth for the periods indicated, the distributions declared on our units:

 
  Declared Distributions  

2009

       

1st Quarter

  $ 0.90  

2nd Quarter

    0.60  

3rd Quarter

    0.60  

4th Quarter

    0.60  

2010

       

1st Quarter

  $ 0.60  

2nd Quarter

    0.60  

3rd Quarter

    0.60  

4th Quarter

    0.80  

            The number of holders of record of units was 266 as of February 25, 2011.

            We make distributions on our units in order to maintain Simon Property's qualification as a REIT. Simon Property is required each year to distribute to its stockholders at least 90% of its taxable income after certain adjustments. Future distributions will be determined at the discretion of Simon Property's Board of Directors based on actual results of operations, cash available for distribution, and what may be required to maintain Simon Property's status as a REIT.

            On February 3, 2011, Simon Property's Board of Directors approved a quarterly common stock dividend of $0.80 per share, payable all in cash. The distribution rate on our units is equal to the dividend rate on Simon Property's common stock. Distributions during 2010 aggregated $2.60 per unit and were paid entirely in cash. Distributions during 2009, which aggregated to $2.70 per unit, were paid in a combination of cash and units.

            We did not issue any equity securities that were not required to be registered under the Securities Act of 1933, as amended, during the fourth quarter of 2010.

            Holders of the Series I preferred units had the right to convert their Series I preferred units into units or exchange the preferred units for shares of Simon Property's Series I 6% Convertible Perpetual Preferred Stock from March 31, 2010 until the date the Series I preferred units were redeemed. The conversion right resulted from the closing sale price of Simon Property's common stock exceeding the applicable trigger price per share for a period of 20 trading days in the last 30 trading days of the prior quarter. Each Series I preferred unit was convertible into units at a conversion ratio of .847495.

            On March 17, 2010, we announced that we would redeem all of the outstanding Series I preferred units on April 16, 2010. The redemption price was equal to the liquidation value per unit plus accumulated and unpaid distributions through the redemption date or $50.4917 per unit.

            Through the redemption date of April 16, 2010, we issued 6,670,589 units as a result of the conversion of 7,871,276 Series I preferred units. In addition, we issued 862,292 units to limited partners, as a result of the conversion of 1,017,480 Series I preferred units at a conversion ratio of .847495.

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Table of Contents

Item 6.    Selected Financial Data

            The following tables set forth selected financial data. The selected financial data should be read in conjunction with the financial statements and notes thereto and with Management's Discussion and Analysis of Financial Condition and Results of Operations. Other data we believe is important in understanding trends in our business is also included in the tables.

 
  As of or for the Year Ended December 31,  
 
  2010   2009   2008   2007   2006  
 
  (in thousands, except per unit data)
 

OPERATING DATA:

                               
 

Total consolidated revenue

  $ 3,957,630   $ 3,775,216   $ 3,783,155   $ 3,650,799   $ 3,332,154  
 

Consolidated income from continuing operations

    753,514     387,262     599,560     674,605     729,727  
 

Net income attributable to unitholders

  $ 733,945   $ 343,572   $ 529,726   $ 549,678   $ 614,911  

BASIC EARNINGS PER UNIT:

                               
 

Income from continuing operations

  $ 2.10   $ 1.06   $ 1.88   $ 2.09   $ 2.20  
 

Discontinued operations

                (0.13 )    
                       
 

Net income attributable to unitholders

  $ 2.10   $ 1.06   $ 1.88   $ 1.96   $ 2.20  
                       
 

Weighted average units outstanding

    349,976     324,102     282,508     281,035     279,567  

DILUTED EARNINGS PER UNIT:

                               
 

Income from continuing operations

  $ 2.10   $ 1.05   $ 1.87   $ 2.08   $ 2.19  
 

Discontinued operations

                (0.13 )    
                       
 

Net income attributable to unitholders

  $ 2.10   $ 1.05   $ 1.87   $ 1.95   $ 2.19  
                       
 

Diluted weighted average units outstanding

    350,250     325,764     283,059     281,813     280,471  
 

Distributions per unit (1)

  $ 2.60   $ 2.70   $ 3.60   $ 3.36   $ 3.04  

BALANCE SHEET DATA:

                               
 

Cash and cash equivalents

  $ 796,718   $ 3,957,718   $ 773,544   $ 501,982   $ 929,360  
 

Total assets

    24,857,429     25,948,266     23,422,749     23,442,466     22,003,173  
 

Mortgages and other indebtedness

    17,473,760     18,630,302     18,042,532     17,218,674     15,394,489  
 

Total equity

  $ 5,633,752   $ 5,182,962   $ 3,101,967   $ 3,414,612   $ 4,040,676  

OTHER DATA:

                               
 

Cash flow provided by (used in):

                               
   

Operating activities

  $ 1,755,210   $ 1,720,520   $ 1,635,887   $ 1,559,432   $ 1,316,148  
   

Investing activities

    (1,246,695 )   (418,991 )   (1,022,275 )   (2,049,576 )   (607,432 )
   

Financing activities

  $ (3,669,515 ) $ 1,882,645   $ (342,050 ) $ 62,766   $ (116,404 )
   

Ratio of Earnings to Fixed Charges

    1.45x     1.30x     1.46x     1.53x     1.73x  

Notes

(1)
Represents distributions on units declared per period.

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

            You should read the following discussion in conjunction with the consolidated financial statements and notes thereto that are included in this report.

Overview

            Simon Property Group, L.P., is a Delaware limited partnership and the majority-owned subsidiary of Simon Property Group, Inc. In this discussion, the terms "Operating Partnership", "we", "us" and "our" refer to Simon Property Group, L.P. and its subsidiaries and the term "Simon Property" refers specifically to Simon Property Group, Inc.

            We own, develop and manage retail real estate properties, which consist primarily of regional malls, Premium Outlets®, The Mills®, and community/lifestyle centers. As of December 31, 2010, we owned or held an interest in 338 income-producing properties in the United States, which consisted of 161 regional malls, 58 Premium Outlets, 66 community/lifestyle centers, 36 properties acquired in the 2007 acquisition of The Mills Corporation, or the Mills acquisition, and 17 other shopping centers or outlet centers in 41 states and Puerto Rico. Of the 36 properties acquired in the Mills portfolio, 16 of these properties are The Mills, 16 are regional malls, and four are community centers. Internationally, as of December 31, 2010, we had ownership interests in 45 European shopping centers in Italy, eight Premium Outlets in Japan, one Premium Outlet in Mexico, and one Premium Outlet in South Korea. On July 15, 2010, we and our joint venture partner sold our collective interests in Simon Ivanhoe S.à.r.l., or Simon Ivanhoe, which owned seven shopping centers located in France and Poland.

            We generate the majority of our revenues from leases with retail tenants including:

            Revenues of our management company, after intercompany eliminations, consist primarily of management fees that are typically based upon the revenues of the property being managed.

            We seek growth in earnings, funds from operations, or FFO, and cash flows by enhancing the profitability and operation of our properties and investments. We seek to accomplish this growth through the following:

            We also grow by generating supplemental revenue from the following activities:

            We focus on high quality real estate across the retail real estate spectrum. We expand or modernize to enhance profitability and market share of existing assets when we believe the investment of our capital meets our risk-reward criteria. We selectively develop new properties in markets that exhibit strong population and economic growth.

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            We routinely review and evaluate acquisition opportunities based on their ability to complement our portfolio. Our international strategy includes partnering with established real estate companies and financing international investments with local currency to minimize foreign exchange risk.

            To support our growth, we employ a three-fold capital strategy:

Results Overview

            Diluted earnings per unit of limited partnership interest, or units, increased from $1.05 in 2009 to $2.10 in 2010. Significant factors contributing to the year-over-year change included:

            Core business fundamentals during 2010 improved from the difficult economic environment that existed during 2009. Comparable sales per square foot, or psf, increased to $494 psf, or 9.3%, for our regional malls and Premium Outlets. Average base rents increased 1.0% to $38.87 psf as of December 31, 2010, from $38.47 psf as of December 31, 2009. Leasing spreads remained positive as we were able to lease available square feet at higher rents than the expiring rental rates resulting in a leasing spread of $1.15 psf as of December 31, 2010, representing a 3.0% increase over expiring rents. Occupancy was 94.2% as of December 31, 2010, as compared to 93.4% as of December 31, 2009, an increase of 80 basis points.

            Internationally, on July 15, 2010, we and our partner in Simon Ivanhoe, Ivanhoe Cambridge, Inc., or Ivanhoe Cambridge, sold our collective interests in Simon Ivanhoe which owned seven shopping centers located in France and Poland to Unibail-Rodamco. The joint venture partners received net consideration of €422.5 million for their interests after the repayment of all joint venture debt, subject to certain post-closing adjustments. Our share of the gain on sale of our interests in Simon Ivanhoe was approximately $281 million. A portion of the proceeds was used to repay the €167.4 million (approximately $215 million) principal balance on the Euro-denominated tranche of our $3.9 billion unsecured revolving credit facility, or the Credit Facility.

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            Our effective overall borrowing rate at December 31, 2010 decreased four basis points to 5.58% as compared to 5.62% at December 31, 2009. This decrease was primarily due to a $1.3 billion decrease in our portfolio of fixed rate debt ($14.8 billion at December 31, 2010 as compared to $16.1 billion at December 31, 2009) partially offset by an increase in the effective overall borrowing rate on variable rate debt of 74 basis points (1.93% at December 31, 2010 as compared to 1.19% at December 31, 2009). The 74 basis point increase was a result of increased borrowing spreads and LIBOR floors. At December 31, 2010, the weighted average years to maturity of our consolidated indebtedness was approximately 5.9 years as compared to December 31, 2009 of approximately 4.1 years. Our financing activities for the year ended December 31, 2010, included:

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United States Portfolio Data

            The portfolio data discussed in this overview includes the following key operating statistics: occupancy; average base rent per square foot; and comparable sales per square foot for our domestic assets. We include acquired properties in this data beginning in the year of acquisition and remove properties sold in the year disposed. For comparative purposes, we separate the information below related to community/lifestyle centers, the properties acquired from the Mills Corporation in 2007, or the Mills, from our other U.S. operations. We also do not include any properties located outside of the United States. The following table sets forth these key operating statistics for:

 
  2010   %/Basis Points
Change(1)
  2009   %/Basis Points
Change(1)
  2008  

U.S. Regional Malls and Premium Outlets(2):

                               

Occupancy

                               

Consolidated

    94.8%     +80 bps     94.0%     -50 bps     94.5%  

Unconsolidated

    92.4%     +100 bps     91.4%     -50 bps     91.9%  

Total Portfolio

    94.2%     +80 bps     93.4%     -40 bps     93.8%  

Average Base Rent per Square Foot

                               

Consolidated

  $ 37.39     1.4%   $ 36.88     5.8%   $ 34.86  

Unconsolidated

  $ 43.44     0.6%   $ 43.19     2.8%   $ 42.03  

Total Portfolio

  $ 38.87     1.0%   $ 38.47     4.9%   $ 36.69  

Comparable Sales per Square Foot

                               

Consolidated

  $ 483     9.3%   $ 442     (5.6% ) $ 468  

Unconsolidated

  $ 530     9.7%   $ 483     (7.6%   $ 523  

Total Portfolio

  $ 494     9.3%   $ 452     (5.8% ) $ 480  

The Mills®:

                               

Occupancy

    93.7%     -20 bps     93.9%     -60 bps     94.5%  

Average Base Rent per Square Foot

  $ 19.86     1.2%   $ 19.62     0.6%   $ 19.51  

Comparable Sales per Square Foot

  $ 391     6.0%   $ 369     (0.8% ) $ 372  

Mills Regional Malls:

                               

Occupancy

    90.4%     +110 bps     89.3%     190 bps     87.4%  

Average Base Rent per Square Foot

  $ 34.97     (1.2% ) $ 35.41     (4.3% ) $ 36.99  

Comparable Sales per Square Foot

  $ 408     7.4%   $ 380     (9.1% ) $ 418  

Community/Lifestyle Centers:

                               

Occupancy

    91.6%     +90 bps     90.7%         90.7%  

Average Base Rent per Square Foot

  $ 13.38     (0.5% ) $ 13.45     1.8%   $ 13.25  

(1)
Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.

(2)
For comparative purposes, U.S. Regional Malls and Premium Outlets statistical data do not include the 21 Prime properties. As of December 31, 2010, Occupancy of these 21 acquired properties was 95.4%, Average Base Rent per Square Foot was $24.75, and Sales per Square Foot were $423.

            Occupancy Levels and Average Base Rent per Square Foot.    Occupancy and average base rent are based on gross leasable area, or GLA, owned by us in the regional malls, all tenants at the Premium Outlets, all tenants in the Mills portfolio, and all tenants at community/lifestyle centers.

            Comparable Sales per Square Foot.    Comparable sales include total reported retail tenant sales at owned GLA (for mall and freestanding stores with less than 10,000 square feet) in the regional malls and all reporting tenants at the Premium Outlets and the Mills. Retail sales at owned GLA affect revenue and profitability levels because sales determine the amount of minimum rent that can be charged, the percentage rent realized, and the recoverable expenses (common area maintenance, real estate taxes, etc.) that tenants can afford to pay.

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International Property Data

            The following are selected key operating statistics for certain of our international properties.

 
  2010   % Change   2009   % Change   2008  

European Shopping Centers

                               

Occupancy

    97.2%           95.9%           98.4%  

Comparable Sales per Square Foot

    €388     -3.0%     €400     -2.7%     €411  

Average Rent per Square Foot

    €26.27     -16.4%     €31.41     4.3%     €30.11  

International Premium Outlets(1)

                               

Occupancy

    99.8%           99.6%           99.9%  

Comparable Sales per Square Foot

    ¥89,139     -5.6%     ¥94,468     2.7%     ¥92,000  

Average Rent per Square Foot

    ¥4,766     1.1%     ¥4,714     0.6%     ¥4,685  

(1)
Does not include one center in Mexico (Premium Outlets Punta Norte) and one center in Korea (Yeoju Premium Outlets).

Critical Accounting Policies

            The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to use judgment in the application of accounting policies, including making estimates and assumptions. We base our estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. These judgments affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue, and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied resulting in a different presentation of our financial statements. From time to time, we evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current information. Below is a discussion of accounting policies that we consider critical in that they may require complex judgment in their application or require estimates about matters that are inherently uncertain. For a summary of our significant accounting policies, see Note 3 of the Notes to Consolidated Financial Statements.

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Results of Operations

            In addition to the activity discussed above in "Results Overview", the following acquisitions, dispositions, and property openings affected our consolidated results from continuing operations in the comparative periods:

            In addition to the activities discussed above and in "Results Overview", the following acquisitions, dispositions, and property openings affected our income from unconsolidated entities in the comparative periods:

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            For the purposes of the following comparisons between the years ended December 31, 2010 and 2009 and the years ended December 31, 2009 and 2008, the above transactions are referred to as the property transactions. In the following discussions of our results of operations, "comparable" refers to properties open and operating throughout both the current and prior year.

            During 2010, we disposed of three consolidated properties that had an aggregate carrying value net of any related debt obligations of $0.1 million for aggregate sales proceeds of $5.8 million, resulting in a net gain of $5.7 million. The gain on disposition of these properties recognized in the consolidated statements of operations and the operating results of the properties that we sold or disposed of during 2010 were not significant to our consolidated results of operations. The following lists those consolidated properties we disposed of and the date of disposition:

Property
  Date of Disposition

Crossroads Mall

  March 4, 2010

Brightwood Plaza

  March 30, 2010

Palm Beach Mall

  March 31, 2010

            During 2009, we disposed of four consolidated properties that had an aggregate net book value of $13.7 million for aggregate sales proceeds of $3.9 million, resulting in a net loss of $9.8 million. The loss on disposition of these assets recognized in the consolidated statements of operations and the operating results of the properties that we sold or disposed of during 2009 were not significant to our consolidated results of operations. The following lists those consolidated properties we disposed of and the date of disposition:

Property
  Date of Disposition

Knoxville Commons

  November 2, 2009

Park Plaza

  November 2, 2009

Eastland Plaza

  October 30, 2009

Raleigh Springs Mall

  October 15, 2009

            In 2008 we had no consolidated property dispositions.

Year Ended December 31, 2010 vs. Year Ended December 31, 2009

            Minimum rents increased $112.7 million during the 2010 period, due to a $80.9 million increase attributable to the property transactions and an increase in comparable rents of $31.8 million, or 1.4%. The increase in comparable minimum rents was primarily attributable to a $33.8 million increase in base minimum rents and a $6.5 million increase in comparable rents from carts, kiosks, and other temporary tenants, partially offset by a $4.8 million decline in the fair market value of in-place lease amortization and a $3.7 million decrease in straight-line rents. Overage rents increased $25.7 million, or 30.3%, as a result of an increase in tenant sales for the period as compared to the prior year.

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            Tenant reimbursements increased $21.6 million, due to a $24.5 million increase attributable to the property transactions, offset by a $2.9 million, or 0.3%, decrease in the comparable properties as a result of a decrease in expenditures allocable to tenants paying common area maintenance on a proportionate basis.

            Total other income increased $25.3 million, principally as a result of the result of the following:

            Property operating expenses decreased $11.4 million, or 2.69%, primarily related to lower costs resulting from our cost control and cost reduction initiatives and generally lower cost of utilities. An increase in property operating expenses in the fourth quarter related to the Prime properties was offset by more favorable claims experience by our captive insurance subsidiaries.

            Depreciation and amortization expense decreased $14.8 million due to the impact of the acceleration of depreciation in 2009 for certain properties scheduled for redevelopment, offset by an increase in 2010 of $52.7 million related to the acquisition of the Prime properties and an increase related to openings and expansion activity.

            The provision for credit losses decreased $19.5 million due to a reduction in the number of tenants in default and a decrease in the number of tenants in bankruptcy proceedings compared to the same period in 2009. We also had strong collections of receivables which we had previously established reserves for due to uncertainty of payment.

            During 2010, we incurred $69.0 million in transaction expenses related to acquisitions, potential acquisitions, and the settlement of a transaction related dispute.

            Interest expense increased $35.0 million primarily related to our issuance of unsecured notes totaling $3.2 billion in 2010 and $1.8 billion during 2009 and the result of new or refinanced debt at several properties including debt associated with the Prime acquisition, offset by the purchase of unsecured notes in the January and August 2010 tender offers and mortgage loans which we repaid during the 2010 period.

            During 2010, we incurred a loss on extinguishment of debt of $350.7 million related to the two unsecured note tender offers.

            Income tax expense (benefit) of taxable REIT subsidiaries increased $7.0 million due to the recognition of a $5.8 million tax benefit in 2009 related to the adjustment of the carrying value of our investment in an unconsolidated non-retail real estate entity.

            Income from unconsolidated entities increased $35.7 million primarily due to favorable results of operations over the prior period, the sale of a non-retail building in 2010, a property opening and expansion in Japan, a decrease in the provision for credit losses and interest savings, partially offset by the negative impact to operations of the flood at Opry Mills.

            In 2010, we recognized an $8.2 million impairment charge from an investment in an unconsolidated entity representing the impact of an impairment recorded on an investment property in Italy.

            In 2010, we recorded a gain upon acquisition of a controlling interest and on the sale of interests in unconsolidated entities of $321.0 million primarily due to our share of the gain on the sale of our interest in Simon Ivanhoe, the gain on the acquisition of a controlling interest in a regional mall previously accounted for under the equity method and the gain on sale of Porta di Roma by GCI.

            Preferred unit distribution requirements decreased $29.3 million as a result of the conversion and redemption of the remaining 6% Series I Convertible Perpetual Preferred Units, or Series I preferred units, to units or cash during 2010 and 2009.

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Year Ended December 31, 2009 vs. Year Ended December 31, 2008

            Minimum rents increased $24.9 million in 2009, of which the property transactions accounted for $27.3 million of the increase, offset by a decrease in comparable minimum rents of $2.4 million, or 0.1%. The decrease in comparable minimum rents was primarily attributable to a $15.4 million decline in the fair market value of in-place lease amortization and a $12.6 million decrease in straight-line rents, offset by an increase in minimum rents of $22.8 million and an increase in comparable rents from carts, kiosks, and other temporary tenants of $2.8 million. Overage rents decreased $15.3 million or 15.3%, as a result of a reduction in tenant sales for the period as compared to the prior year.

            Tenant reimbursements decreased $3.7 million, due to a $14.8 million, or 1.4%, decrease in the comparable properties as a result of a decrease in expenditures allocable to tenants paying common area maintenance on a proportionate basis, offset by an $11.1 million increase attributable to the property transactions.

            Management fees and other revenues decreased $8.4 million principally as a result of decreased earned premiums of our wholly-owned captive insurance entities and lower fee revenue due to the reduction in development, leasing and joint venture property refinancing activity.

            Total other income decreased $5.4 million, and was principally the result of the following:

            Property operating expenses decreased $30.2 million, or 6.6%, primarily related to lower utility costs resulting from our cost control and cost reduction initiatives.

            Depreciation and amortization expense increased $28.1 million due to the impact of prior year openings and expansion activity and acceleration of depreciation for certain properties scheduled for redevelopment.

            Repairs and maintenance decreased $16.1 million due to our cost savings efforts.

            Home and regional office expense decreased $34.8 million primarily due to decreased personnel costs attributable to our cost control initiatives and lower incentive compensation levels.

            During 2009, we recognized a non-cash charge of $140.5 million representing an other-than-temporary impairment in the fair value below the carrying value of our minority investment in Liberty. We recorded the charge to earnings due to the significance and duration of the decline in the total share price, including currency revaluations. In addition, we recorded impairment charges in 2009 of $56.9 million related to one regional mall, certain parcels of land and certain predevelopment costs related to projects no longer being pursued. In 2008, we recognized an impairment of $16.5 million primarily representing the write-down of a mall property to its estimated net realizable value and the write-off of predevelopment costs for various development opportunities which we no longer plan to pursue.

            During 2009, we recorded $5.7 million in transaction expenses related to costs associated with acquisition related activities. In accordance with the required adoption of a new accounting pronouncement effective January 1, 2009, all transaction costs are expensed as incurred and are no longer capitalized as a component of acquisition cost as prior accounting guidance permitted.

            Interest expense increased $44.9 million primarily related to our issuance of $500 million of senior unsecured notes on August 11, 2009, $600 million senior unsecured notes on May 15, 2009 and $650 million senior unsecured notes on March 25, 2009, offset by decreased interest expense on our Credit Facility due to the payoff of the U.S. tranche and other property debt refinancings.

            The 2008 period included a loss on extinguishment of debt of $20.3 million in the second quarter of 2008 related to the redemption of $200 million in remarketable debt securities. We extinguished the debt because the remarketing reset base rate was above the rate for 30-year U.S. Treasury securities at the date of redemption.

            Income tax expense of taxable REIT subsidiaries decreased $8.8 million due to the recognition of a $5.8 million tax benefit in 2009 related to the adjustment of the carrying value of our investment in an unconsolidated non-retail real estate entity.

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            Income from unconsolidated entities increased $8.0 million as a result of our 2008 joint venture openings and expansion activity, interest rate savings from favorable interest rates and debt refinancings, and additional depreciation provisions related to the finalization of purchase accounting on asset basis step-ups in the 2008 period associated with the acquisition of Mills, offset by the gain recognized in 2008 from our disposition of an investment holding of non-retail real estate adjacent to one of our regional mall operating properties.

            In 2009, we recognized a $42.7 million impairment charge representing our share of impairment charges recorded by unconsolidated entities and also impairment charges on our investment in certain unconsolidated entities for which we deemed the declines in value below our carrying amount other-than-temporary.

            The loss on sale of assets and interests in unconsolidated entities of $30.1 million in 2009 was the result of the sale of one regional mall, three community centers, and our 32.5% joint venture interests in our shopping centers operating or under development in China.

            Preferred unit distribution requirements decreased $20.5 million as a result of the conversion of preferred units to units during 2008.

Liquidity and Capital Resources

            Because we generate revenues primarily from long-term leases, our financing strategy relies primarily on long-term fixed rate debt. We manage our floating rate debt to be at or below 15-25% of total outstanding indebtedness by negotiating interest rates for each financing or refinancing based on current market conditions. Floating rate debt currently comprises approximately 11.6% of our total consolidated debt at December 31, 2010. We also enter into interest rate protection agreements as appropriate to assist in managing our interest rate risk. We derive most of our liquidity from leases that generate positive net cash flow from operations and distributions of capital from unconsolidated entities that totaled $2.0 billion during 2010. In addition, our Credit Facility provides an alternative source of liquidity as our cash needs vary from time to time.

            Our balance of cash and cash equivalents decreased $3.2 billion during 2010 to $0.8 billion as of December 31, 2010. December 31, 2010 and 2009 balances include $55.3 million and $38.1 million, respectively, related to our co-branded gift card programs, which we do not consider available for general working capital purposes.

            On December 31, 2010, we had available borrowing capacity of approximately $3.0 billion under the Credit Facility, net of outstanding borrowings of $858.6 million and letters of credit of $33.3 million. For the year ended December 31, 2010, the maximum amount outstanding under the Credit Facility was $862.2 million and the weighted average amount outstanding was approximately $580.4 million. The weighted average interest rate was 2.20% for the year ended December 31, 2010.

            We and/or Simon Property also have access to public capital markets and access to private equity from institutional investors at the property level.

            Our business model requires us to regularly access the debt and equity capital markets to raise funds for acquisition and development activity, redevelopment capital, and to refinance maturing debt. We believe we have sufficient cash on hand and availability under our Credit Facility to address our debt maturities and capital needs through 2011.

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            As discussed further in "Financing and Debt" below, we conducted two cash tender offers for several outstanding series of unsecured notes during 2010. On January 12, 2010, we commenced a tender offer to purchase ten outstanding series of notes. We subsequently purchased $2.3 billion of notes on January 26, 2010. The purchase of the notes was primarily funded with proceeds from the sale of $2.25 billion of senior unsecured notes issued on January 25, 2010. Additionally, on August 9, 2010, we commenced a tender offer to purchase three outstanding series of notes. We subsequently purchased $1.33 billion of tendered notes on August 17, 2010. The purchase of the notes was primarily funded with proceeds from the sale of $900.0 million of senior unsecured notes issued on August 16, 2010. As a result of the tenders, we extended the weighted average duration of our senior unsecured notes portfolio from 6.8 years to 7.5 years and slightly decreased the weighted average interest rate.

            As part of the Mills acquisition in 2007, we made loans to SPG-FCM and the Mills which were used by SPG-FCM and Mills to repay loans and other obligations of Mills. As of December 31, 2010 and 2009, the outstanding balance of our remaining loan to SPG-FCM was $651.0 million and $632.0 million, respectively. During 2010, 2009 and 2008, we recorded approximately $9.9 million, $9.3 million and $15.3 million in interest income (net of inter-entity eliminations) related to this loan, respectively. We also recorded fee income, including fee income amortization related to up-front fees on those loans during 2010, 2009 and 2008 of approximately $0.9 million, $3.7 million and $3.1 million (net of inter-entity eliminations), respectively, for providing refinancing services to Mills' properties and SPG-FCM. The loan bears interest at a rate of LIBOR plus 275 basis points and matures on June 8, 2011, and can be extended for one year.

            In conjunction with the Mills acquisition, we acquired a majority interest in two properties in which we previously held a 50% ownership interest (Town Center at Cobb and Gwinnett Place) and as a result we have consolidated these two properties at the date of acquisition.

            In addition to the loans provided to SPG-FCM, we also provide management services to substantially all of the properties in which SPG-FCM holds an interest.

            Our net cash flow from operating activities and distributions of capital from unconsolidated entities totaled $2.0 billion during 2010. In addition, we had net repayments from our debt financing and repayment activities in 2010 of $2.4 billion and an additional $350.7 million primarily related to premiums paid to par as a result of the cash tender offers for our senior notes. These activities are further discussed below in "Financing and Debt". Also during 2010, we:

            In general, we anticipate that cash generated from operations will be sufficient to meet operating expenses, monthly debt service, recurring capital expenditures, and distributions to partners necessary to maintain Simon Property's REIT qualification on a long-term basis. In addition, we expect to be able to obtain capital for nonrecurring capital expenditures, such as acquisitions, major building renovations and expansions, as well as for scheduled principal maturities on outstanding indebtedness, from:

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            We expect to generate positive cash flow from operations in 2011, and we consider these projected cash flows in our sources and uses of cash. These cash flows are principally derived from retail tenants, many of whom have been and continue to be under some degree of economic stress. A significant deterioration in projected cash flows from operations could cause us to increase our reliance on available funds from our Credit Facility, curtail planned capital expenditures, or seek other additional sources of financing as discussed above.

            Our unsecured debt at December 31, 2010 consisted of approximately $10.0 billion of our senior unsecured notes of and $858.6 million outstanding under our Credit Facility. The Credit Facility has a borrowing capacity of $3.9 billion and contains an accordion feature allowing the maximum borrowing capacity to expand to $4.0 billion. The Credit Facility matures on March 31, 2013. The base interest on the Credit Facility is LIBOR plus 210 basis points and includes a facility fee of 40 basis points. The Credit Facility also includes a money market competitive bid feature, which allows participating lenders to bid on amounts outstanding at then current market rates of interest for up to 50% of amounts available under the facility. As of December 31, 2010, we are in compliance with all of the covenants of our unsecured debt.

            During the year ended December 31, 2010, our borrowings under the Credit Facility increased primarily as a result of the Prime acquisition partially offset by the repayment of €167.4 million (approximately $215 million) principal balance on the Euro-denominated tranche of our Credit Facility on July 23, 2010. The total outstanding balance of the Credit Facility as of December 31, 2010 was $858.6 million, and the maximum outstanding balance during the year ended December 31, 2010 was $862.2 million. During the year ended December 31, 2010, the weighted average outstanding balance on the Credit Facility was approximately $580.4 million. The outstanding balance as of December 31, 2010 includes $273.6 million (U.S. dollar equivalent) of Yen-denominated borrowings.

            On January 12, 2010, we commenced a cash tender offer for any and all senior unsecured notes of ten outstanding series with maturity dates ranging from January 2011 to March 2013. The total principal amount of the notes accepted for purchase on January 26, 2010 was approximately $2.3 billion, with a weighted average duration of 2.0 years and a weighted average coupon of 5.76%. We purchased the tendered notes with cash on hand and the proceeds from an offering of $2.25 billion of senior unsecured notes that closed on January 25, 2010. The senior notes offering was comprised of $400.0 million of 4.20% notes due 2015, $1.25 billion of 5.65% notes due 2020 and $600.0 million of 6.75% notes due 2040. The weighted average duration of the notes offering was 14.4 years and the weighted average coupon was 5.69%. We recorded a $165.6 million charge to earnings in the first quarter of 2010 as a result of the tender offer.

            On March 18, 2010, we repaid a $300.0 million senior unsecured note which had a fixed rate of 4.875%.

            On June 15, 2010, we repaid a $400.0 million senior unsecured note which had a fixed rate of 4.60%.

            On August 9, 2010, we commenced a cash tender offer for any and all senior unsecured notes of three outstanding series with maturity dates ranging from May 2013 to August 2014. The total principal amount of the notes accepted for purchase on August 17, 2010 was approximately $1.33 billion, with a weighted average duration of 3.5 years and a weighted average coupon of 6.06%. We purchased the tendered notes with cash on hand and the proceeds from an offering of $900.0 million of 4.375% senior unsecured notes that closed on August 16, 2010. The senior notes are due on March 1, 2021. We recorded a $185.1 million charge to earnings in the third quarter of 2010 as a result of the tender offer.

            On August 16, 2010, we repaid a $400.0 million senior unsecured note which had a fixed rate of 4.875%.

            Total secured indebtedness was $6.6 billion at December 31, 2010 and 2009. During the year ended December 31, 2010, we unencumbered five properties by repaying $1.1 billion in mortgage loans with a weighted average interest rate of 4.35%.

            On May 13, 2010, we acquired a property located in Barceloneta, Puerto Rico from Prime subject to an existing $75.2 million mortgage loan. The loan matures on May 1, 2014 and bears interest at LIBOR plus 225 basis points with a LIBOR floor of 1.50%.

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            On August 30, 2010, we completed our acquisition of Prime and assumed existing mortgage loans of approximately $1.2 billion which bear interest at fixed rates ranging from 5.51% and 6.01% and mature at various dates throughout 2016.

            Our consolidated debt, adjusted to reflect outstanding derivative instruments, and the effective weighted average interest rates as of December 31, 2010, and 2009, consisted of the following (dollars in thousands):

Debt Subject to
  Adjusted Balance
as of
December 31,
2010
  Effective
Weighted
Average
Interest Rate
  Adjusted Balance
as of
December 31,
2009
  Effective
Weighted
Average
Interest Rate
 

Fixed Rate

  $ 15,471,545     6.05%   $ 16,814,240     6.10%  

Variable Rate

    2,002,215     1.93%     1,816,062     1.19%  
                   

  $ 17,473,760     5.58%   $ 18,630,302     5.62%  
                   

            As of December 31, 2010, we had $692.5 million of notional amount fixed rate swap agreements that have a weighted average fixed pay rate of 2.79% and a weighted average variable receive rate of 0.51%. As of December 31, 2010, the net effect of these agreements effectively converted $692.5 million of variable rate debt to fixed rate debt.

            Contractual Obligations and Off-balance Sheet Arrangements:    In regards to long-term debt arrangements, the following table summarizes the material aspects of these future obligations on our consolidated indebtedness as of December 31, 2010, and subsequent years thereafter (dollars in thousands) assuming the obligations remain outstanding through initial maturities:

 
  2011   2012 to 2013   2014 to 2016   After 2016   Total  

Long Term Debt(1)

  $ 895,575   $ 4,129,255   $ 6,575,971   $ 5,867,931   $ 17,468,732  

Interest Payments(2)

    946,503     1,671,292     1,775,136     1,726,473     6,119,404  

Consolidated Capital Expenditure Commitments

    24,361     62,429             86,790  

Consolidated Ground Lease Commitments(3)

    25,717     52,187     80,481     913,332     1,071,717  

(1)
Represents principal maturities only and therefore, excludes net premiums of $5,028.

(2)
Variable rate interest payments are estimated based on the LIBOR rate at December 31, 2010.

(3)
Represents only the minimum non-cancellable lease period, excluding applicable lease extension and renewal options.

            Our off-balance sheet arrangements consist primarily of our investments in joint ventures which are common in the real estate industry and are described in Note 7 of the notes to the accompanying financial statements. Our joint ventures typically fund their cash needs through secured debt financings obtained by and in the name of the joint venture entity. The joint venture debt is secured by a first mortgage, is without recourse to the joint venture partners, and does not represent a liability of the partners, except to the extent the partners or their affiliates expressly guarantee the joint venture debt. As of December 31, 2010, we had guaranteed $60.7 million of the total joint venture related mortgage or other indebtedness of $6.6 billion then outstanding. We may elect to fund cash needs of a joint venture through equity contributions (generally on a basis proportionate to our ownership interests), advances or partner loans, although such fundings are not required contractually or otherwise.

            Holders of the Series I preferred units had the right to convert their Series I preferred units into units or exchange the preferred units for shares of Simon Property's Series I 6% Convertible Perpetual Preferred Stock from March 31, 2010 until the date the Series I preferred units were redeemed. The conversion right resulted from the closing sale price of Simon Property's common stock exceeding the applicable trigger price per share for a period of 20 trading days in the last 30 trading days of the prior quarter. Each Series I preferred unit was convertible into units at a conversion ratio of .847495.

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            On April 16, 2010, we redeemed all of the outstanding Series I preferred units. The redemption price was equal to the liquidation value per unit plus accumulated and unpaid distributions through the redemption date or $50.4917 per unit.

            Through the redemption date, we issued 6,670,589 units as a result of the conversion of 7,871,276 Series I preferred units. In addition, we issued 862,292 units to limited partners as a result of the conversion of 1,017,480 Series I preferred units at a conversion ratio of .847495.

            Buy-sell provisions are common in real estate partnership agreements. Most of our partners are institutional investors who have a history of direct investment in retail real estate. Our partners in our joint venture properties may initiate these provisions (subject to any applicable lock up or similar restrictions). If we determine it is in our unitholders' best interests for us to purchase the joint venture interest and we believe we have adequate liquidity to execute the purchase without hindering our cash flows, then we may initiate these provisions or elect to buy. If we decide to sell any of our joint venture interests, we expect to use the net proceeds to reduce outstanding indebtedness or to reinvest in development, redevelopment, or expansion opportunities.

            Acquisitions.    During 2010, we acquired a controlling interest in a regional mall which resulted in a remeasurement of our previously held equity interest to fair value and corresponding gain of approximately $13.0 million. This gain is included in gain (loss) upon acquisition of controlling interest and on sale or disposal of assets and interests in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income.

            On May 28, 2010, we acquired an additional interest of approximately 19% in Houston Galleria, located in Houston, Texas thereby increasing our interest from 31.5% to 50.4%.

            On August 30, 2010, we completed our previously announced transaction to acquire 21 outlet centers from Prime, including a center located in Puerto Rico, which was acquired on May 13, 2010. The transaction was valued at approximately $2.3 billion, including the assumption of existing mortgage indebtedness of $1.2 billion and the repayment of $310.7 million of preexisting mortgage loans at closing.

            We paid consideration comprised of 80% cash and 20% in units. We issued approximately 1.7 million units with an issuance date fair value of approximately $154.5 million. We funded the cash portion of this acquisition through draws on our Credit Facility.

            Dispositions.    We continue to pursue the disposition of properties that no longer meet our strategic criteria or that are not the primary retail venue within their trade area. During 2010, we disposed of one regional mall, one community center, two other retail properties, and our interest in eight international joint venture properties for an aggregate net gain of $308.1 million.

            New Domestic Developments.    During 2010, we began construction on Merrimack Premium Outlets located in Merrimack, New Hampshire. This new center, which will be wholly owned by us, is expected to open in the first half of 2012. The estimated cost of this project is $138 million, and the carrying amount of the construction in progress as of December 31, 2010 was $37.6 million. Other than this project, our share of other 2010 new developments was not significant.

            Domestic Expansions and Renovations.    In addition to new development, we incur costs related to construction for significant renovation and expansion projects at our properties. In 2011 we expect to reinstitute our redevelopment and expansion initiatives which were previously reduced given the downturn in the economy. We expect our share of development costs for 2011 related to renovation or expansion initiatives to be approximately $350 million. We expect to fund these capital projects with cash flows from operations.

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            The following table summarizes total capital expenditures on consolidated properties on a cash basis:

 
  2010   2009   2008  

New Developments and Other

  $ 39   $ 160   $ 327  

Renovations and Expansions

    96     159     432  

Tenant Allowances

    103     43     72  

Operational Capital Expenditures

    18     14     43  
               

Total

  $ 256   $ 376   $ 874  
               

            International Development Activity.    We typically reinvest net cash flow from our international investments to fund future international development activity. We believe this strategy mitigates some of the risk of our initial investment and our exposure to changes in foreign currencies. We have also funded our European investments with Euro-denominated borrowings that act as a natural hedge against local currency fluctuations. This has also been the case with our Premium Outlets in Japan and South Korea where we use Yen and Won denominated financing, respectively. Currently, our consolidated net income exposure to changes in the volatility of the Euro, Yen, Won, Peso and other foreign currencies is not material. We expect our share of international development costs for 2011 will be approximately $90 million, primarily funded through reinvested joint venture cash flow and construction loans.

            In March 2010, two European developments opened, adding approximately 942,000 square feet of GLA for a total net cost of approximately €221 million, of which our share was approximately €53 million, or $64.8 million based on applicable Euro:USD exchange rates. Although we sold our joint venture interest in Simon Ivanhoe, we and Ivanhoe Cambridge have the right to participate with Unibail-Rodamco in the potential development of up to five new retail projects in the Simon Ivanhoe pipeline, subject to customary approval rights. We will own a 25% interest in any of these projects in which we agree to participate.

            On July 14, 2010 Toki Premium Outlets Phase III, a 62,000 square foot expansion to the Toki Premium Outlet located in Toki, Japan, opened to the public. Currently Tosu Premium Outlets Phase III, a 52,000 square foot expansion to the Tosu Premium Outlet located in Fukuoka, Japan, is under construction. The combined projected net cost of these projects is JPY 5.3 billion, of which our share is approximately JPY 2.1 billion, or $25.8 million based on applicable Yen:USD exchange rates.

            Paju Premium Outlets, a 328,000 square foot center located in Seoul, South Korea, is under construction. The projected net cost of this project is KRW 121.2 billion, of which our share is approximately KRW 60.6 billion, or $53.6 million based on applicable KRW:USD exchange rates.

            We have a 50% joint venture investment in Malaysia. Currently, Johor Premium Outlets, a 173,000 square foot center located in Johor, Malaysia is under construction. The projected net cost of this project is MYR 153 million, of which our share is approximately MYR 77 million, or $24.9 million based on applicable MYR:USD exchange rates.

Market Risk

            Our exposure to market risk due to changes in interest rates primarily relates to our long-term debt obligations. We manage exposure to interest rate market risk through our risk management strategy by a combination of interest rate protection agreements to effectively fix or cap a portion of variable rate debt. We are also exposed to foreign currency risk on financings of certain foreign operations. Our intent is to offset gains and losses that occur on the underlying exposures, with gains and losses on the derivative contracts hedging these exposures. We do not enter into either interest rate protection or foreign currency rate protection agreements for speculative purposes.

            We may enter into treasury lock agreements as part of an anticipated debt issuance. If the anticipated transaction does not occur, the cost is charged to consolidated net income. Upon completion of the debt issuance, the cost of these instruments is recorded as part of accumulated other comprehensive income and is amortized to interest expense over the life of the debt agreement.

            Our future earnings, cash flows and fair values relating to financial instruments are dependent upon prevalent market rates of interest, primarily LIBOR. LIBOR was at historically low levels during 2010. Based upon consolidated indebtedness and interest rates at December 31, 2010, a 50 basis point increase in the market rates of interest would

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decrease future earnings and cash flows by approximately $10.0 million, and would decrease the fair value of debt by approximately $374.7 million.

Distributions

            Distributions during 2010 aggregated $2.60 per unit and were paid entirely in cash. Distributions during 2009 aggregated $2.70 per unit and were paid in a combination of cash and units. We must pay a minimum amount of distributions to maintain Simon Property's status as a REIT. Our distributions typically exceed our consolidated net income generated in any given year primarily because of depreciation, which is a "non-cash" expense. Future distributions will be determined by the Simon Property Board of Directors based on actual results of operations, cash available for distributions, cash reserves as deemed necessary for capital and operating expenditures, and the amount required to maintain Simon Property's status as a REIT.

Forward-Looking Statements

            Certain statements made in this section or elsewhere in this report may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the impact of a prolonged recession, our ability to meet debt service requirements, the availability and terms of financing, changes in our 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, 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, competitive market forces, risks related to international activities, insurance costs and coverage, terrorist activities, and maintenance of our status as a real estate investment trust. We discuss these and other risks and uncertainties under the heading "Risk Factors" in this Annual Report on Form 10-K. We may update that discussion in subsequent Quarterly Reports on Form 10-Q, but otherwise we undertake no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

Item 7A.    Qualitative and Quantitative Disclosure About Market Risk

            Please refer to the Management's Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 under the caption Liquidity and Capital Resources.

Item 8.    Financial Statements and Supplementary Data

            Reference is made to the Index to Financial Statements contained in Item 15.

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

            None.

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Item 9A.    Controls and Procedures

            Evaluation of Disclosure Controls and Procedures.    We carried out an evaluation under the supervision and with participation of Simon Property management, including the chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, Simon Property management, including the chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective as of December 31, 2010.

            Changes in Internal Control Over Financial Reporting.    There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f)) that occurred during the fourth quarter of 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

            Management's Report on Internal Control over Financial Reporting.    We are responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, Simon Property's Board of Directors, principal executive and principal financial officers and effected by Simon Property's management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles and includes those policies and procedures that:

            Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

            We assessed the effectiveness of our internal control over financial reporting as of December 31, 2010. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.

            Based on that assessment, we believe that, as of December 31, 2010, our internal control over financial reporting is effective based on those criteria.

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Report of Independent Registered Public Accounting Firm

The Board of Directors of Simon Property Group, Inc.
and The Partners of Simon Property Group, L.P.:

            We have audited Simon Property Group, L.P. and Subsidiaries' internal control over financial reporting as of December 31, 2010 based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). Simon Property Group, L.P. and Subsidiaries' management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership's internal control over financial reporting based on our audit.

            We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

            A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

            Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

            In our opinion, Simon Property Group, L.P. and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on the COSO criteria.

            We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Simon Property Group, L.P. and Subsidiaries as of December 31, 2010 and 2009, and the related consolidated statements of operations and comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2010 of Simon Property Group, L.P. and Subsidiaries, and the financial statement schedule listed in the Index at Item 15, and our report dated March 11, 2011 expressed an unqualified opinion thereon.


 

 

/s/ ERNST & YOUNG LLP

Indianapolis, Indiana
March 11, 2011

 

 

Item 9B.    Other Information

            During the fourth quarter of the year covered by this report, the Audit Committee of Simon Property Group, Inc.'s Board of Directors approved certain non-audit tax compliance services to be provided by Ernst & Young, LLP, Simon Property's independent registered public accounting firm. This disclosure is made pursuant to Section 10A(i)(2) of the Securities Exchange Act of 1934, as added by Section 202 of the Sarbanes-Oxley Act of 2002.

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Part III

Item 10.    Directors, Executive Officers and Corporate Governance

            We are a limited partnership and Simon Property is our sole general partner. We do not have any directors or executive officers or any equity securities registered under the Securities Exchange Act of 1934. Comparable information for Simon Property can be found in its periodic reports and proxy statements it files with the Securities and Exchange Commission.

Item 11.    Executive Compensation

            We are a limited partnership and Simon Property is our sole general partner. We do not have any directors or executive officers or any equity securities registered under the Securities Exchange Act of 1934. Comparable information for Simon Property can be found in its periodic reports and proxy statements it files with the Securities and Exchange Commission.

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

            We are a limited partnership and Simon Property is our sole general partner. We do not have any directors or executive officers or any equity securities registered under the Securities Exchange Act of 1934. Comparable information for Simon Property can be found in its periodic reports and proxy statements it files with the Securities and Exchange Commission.

Item 13.    Certain Relationships and Related Transactions and Director Independence

            We are a limited partnership and Simon Property is our sole general partner. We do not have any directors or executive officers or any equity securities registered under the Securities Exchange Act of 1934. Comparable information for Simon Property can be found in its periodic reports and proxy statements it files with the Securities and Exchange Commission.

Item 14.    Principal Accountant Fees and Services

            The Audit Committee of Simon Property's Board of Directors pre-approves all audit and permissible non-audit services to be provided by Ernst & Young LLP, or Ernst & Young, our independent registered public accounting firm, prior to commencement of services. The Audit Committee has delegated to the Chairman of the Audit Committee the authority to pre-approve specific services up to specified individual and aggregate fee amounts. These pre-approval decisions are presented to the full Audit Committee at the next scheduled meeting after such approvals are made. We have incurred fees as shown below for services from Ernst & Young as our independent registered public accounting firm. Ernst & Young has advised us that it has billed or will bill these indicated amounts for the following categories of services for the years ended December 31, 2010 and 2009, respectively:

 
  2010   2009  

Audit Fees (1)

  $ 2,465,000   $ 2,853,000  

Audit-Related Fees (2)

    4,954,000     5,119,000  

Tax Fees (3)

    351,000     777,000  

All Other Fees

         

(1)
Audit Fees include fees for the audit of the financial statements and the effectiveness of internal control over financial reporting for us, Simon Property, and certain of our subsidiaries and services associated with Securities and Exchange Commission registration statements, periodic reports, and other documents issued in connection with securities offerings.

(2)
Audit-Related Fees include audits of individual properties and schedules of recoverable common area maintenance costs to comply with lender, joint venture partner or tenant requirements and accounting consultation and due diligence services. Our share of these Audit-Related Fees for the years ended 2010 and 2009 are approximately 47% and 46%, respectively.

(3)
Tax Fees include fees for international and other tax consulting services. Tax Fees also include return compliance services associates with the tax returns for The Mills Corporation and related subsidiaries and joint ventures. Our share of these fees for 2010 and 2009 is approximately 51% and 75%, respectively.

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Part IV

Item 15.    Exhibits and Financial Statement Schedules

 
   
  Page No.  
(1)   Financial Statements        

 

 

Report of Independent Registered Public Accounting Firm

 

 

66

 
    Consolidated Balance Sheets as of December 31, 2010 and 2009     67  
    Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008     68  
    Consolidated Statements of Cash Flow for the years ended December 31, 2010, 2009 and 2008     69  
    Consolidated Statements of Equity for the years ended December 31, 2010, 2009 and 2008     70  
    Notes to Consolidated Financial Statements     71  

(2)

 

Financial Statement Schedule

 

 

 

 

 

 

Simon Property Group, L.P. and Subsidiaries Schedule III — Schedule of Real Estate and Accumulated Depreciation

 

 

104

 

 

 

Notes to Schedule III

 

 

111

 

(3)

 

Exhibits

 

 

 

 

 

 

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

 

 

112

 

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Report of Independent Registered Public Accounting Firm

The Board of Directors of Simon Property Group, Inc.
and The Partners of Simon Property Group, L.P.:

            We have audited the accompanying consolidated balance sheets of Simon Property Group, L.P. and Subsidiaries as of December 31, 2010 and 2009, and the related consolidated statements of operations and comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2010. Our audit also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

            We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

            In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Simon Property Group, L.P. and Subsidiaries at December 31, 2010 and 2009, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

            We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Simon Property Group, L.P. and Subsidiaries' internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 11, 2011, expressed an unqualified opinion thereon.


 

 

/s/ ERNST & YOUNG LLP

Indianapolis, Indiana
March 11, 2011

 

 

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Simon Property Group, L.P. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except unit amounts)

 
  December 31,
2010
  December 31,
2009
 

ASSETS:

             
 

Investment properties, at cost

  $ 27,508,735   $ 25,336,189  
   

Less — accumulated depreciation

    7,711,304     7,004,534  
           

    19,797,431     18,331,655  
 

Cash and cash equivalents

    796,718     3,957,718  
 

Tenant receivables and accrued revenue, net

    426,736     402,729  
 

Investment in unconsolidated entities, at equity

    1,390,105     1,468,577  
 

Deferred costs and other assets

    1,795,439     1,155,587  
 

Note receivable from related party

    651,000     632,000  
           
   

Total assets

  $ 24,857,429   $ 25,948,266  
           

LIABILITIES:

             
 

Mortgages and other indebtedness

  $ 17,473,760   $ 18,630,302  
 

Accounts payable, accrued expenses, intangibles, and deferred revenue

    993,738     987,530  
 

Cash distributions and losses in partnerships and joint ventures, at equity

    485,855     457,754  
 

Other liabilities and accrued distributions

    184,855     159,345  
           
   

Total liabilities

    19,138,208     20,234,931  
           

Commitments and contingencies

             

Preferred units, various series, at liquidation value, and noncontrolling redeemable interests in properties

   
85,469
   
530,373
 

EQUITY:

             

Partners' Equity

             
 

Preferred units, 796,948 units outstanding. Liquidation value of $39,847

    45,375     45,704  
 

General Partner, 292,961,909 and 285,748,271 units outstanding, respectively

    4,785,405     4,412,433  
 

Limited Partners, 60,233,424 and 57,804,779 units outstanding, respectively

    983,887     892,603  
           
   

Total partners' equity

    5,814,667     5,350,740  

Nonredeemable noncontrolling deficit interests in properties, net

    (180,915 )   (167,778 )
           
   

Total equity

    5,633,752     5,182,962  
           
   

Total liabilities and equity

  $ 24,857,429   $ 25,948,266  
           

The accompanying notes are an integral part of these statements.

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Simon Property Group, L.P. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per unit amounts)

 
  For the Twelve Months Ended
December 31,
 
 
  2010   2009   2008  

REVENUE:

                   
 

Minimum rent

  $ 2,429,519   $ 2,316,838   $ 2,291,919  
 

Overage rent

    110,621     84,922     100,222  
 

Tenant reimbursements

    1,083,780     1,062,227     1,065,957  
 

Management fees and other revenues

    121,207     124,059     132,471  
 

Other income

    212,503     187,170     192,586  
               
   

Total revenue

    3,957,630     3,775,216     3,783,155  
               

EXPENSES:

                   
 

Property operating

    414,264     425,703     455,874  
 

Depreciation and amortization

    982,820     997,598     969,477  
 

Real estate taxes

    345,960     333,957     334,657  
 

Repairs and maintenance

    102,425     91,736     107,879  
 

Advertising and promotion

    97,194     93,565     96,783  
 

Provision for credit losses

    3,130     22,655     24,035  
 

Home and regional office costs

    109,314     110,048     144,865  
 

General and administrative

    21,267     18,124     20,987  
 

Impairment charge

        197,353     16,489  
 

Transaction expenses

    68,972     5,697      
 

Other

    68,045     72,088     69,061  
               
   

Total operating expenses

    2,213,391     2,368,524     2,240,107  
               

OPERATING INCOME

    1,744,239     1,406,692     1,543,048  

Interest expense

    (1,027,091 )   (992,065 )   (947,140 )

Loss on extinguishment of debt

    (350,688 )       (20,330 )

Income tax (expense) benefit of taxable REIT subsidiaries

    (1,734 )   5,220     (3,581 )

Income from unconsolidated entities

    75,921     40,220     32,246  

Impairment charge from investments in unconsolidated entities

    (8,169 )   (42,697 )   (4,683 )

Gain (loss) upon acquisition of controlling interest, and on sale or disposal of assets and interests in unconsolidated entities, net

    321,036     (30,108 )    
               

Consolidated income from continuing operations

    753,514     387,262     599,560  

Discontinued operations

            (25 )
               

CONSOLIDATED NET INCOME

    753,514     387,262     599,535  

Net income attributable to noncontrolling interests

    10,640     5,496     11,091  

Preferred unit requirements

    8,929     38,194     58,718  
               

NET INCOME ATTRIBUTABLE TO UNITHOLDERS

  $ 733,945   $ 343,572   $ 529,726  
               

NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO:

                   
   

General Partner

  $ 610,424   $ 283,098   $ 422,517  
   

Limited Partners

    123,521     60,474     107,209  
               
   

Net income attributable to unitholders

  $ 733,945   $ 343,572   $ 529,726  
               

BASIC EARNINGS PER UNIT

                   
   

Net income attributable to unitholders

  $ 2.10   $ 1.06   $ 1.88  
               

DILUTED EARNINGS PER UNIT

                   
   

Net income attributable to unitholders

  $ 2.10   $ 1.05   $ 1.87  
               

Consolidated net income

  $ 753,514   $ 387,262   $ 599,535  

Unrealized gain (loss) on interest rate hedge agreements

    28,045     1,509     (50,973 )

Net loss on derivative instruments reclassified from accumulated other comprehensive loss into interest expense

    (15,769 )   (14,754 )   (3,205 )

Currency translation adjustments

    (20,590 )   (8,244 )   (6,953 )

Changes in available-for-sale securities and other

    19,934     224,694     (168,619 )
               

Comprehensive income

    765,134     590,467     369,785  

Comprehensive income attributable to noncontrolling interests

    10,640     5,496     11,091  
               

Comprehensive income attributable to unitholders

  $ 754,494   $ 584,971   $ 358,694  
               

The accompanying notes are an integral part of these statements.

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Simon Property Group, L.P. and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)

 
  For the Twelve Months Ended
December 31,
 
 
  2010   2009   2008  

CASH FLOWS FROM OPERATING ACTIVITIES:

                   
 

Consolidated net income

  $ 753,514   $ 387,262   $ 599,535  
   

Adjustments to reconcile net income to net cash provided by operating activities —

                   
     

Depreciation and amortization

    1,016,027     1,009,490     956,827  
     

Loss on debt extinguishment

    350,688          
     

Impairment charges

    8,169     240,050     21,172  
     

(Gain) loss upon acquisition of controlling interest, and on sale or disposal of assets and interests in unconsolidated entities, net

    (321,036 )   30,108      
     

Straight-line rent

    (24,487 )   (24,653 )   (33,672 )
     

Equity in income of unconsolidated entities

    (75,921 )   (40,220 )   (32,246 )
     

Distributions of income from unconsolidated entities

    109,050     105,318     118,665  
   

Changes in assets and liabilities —

                   
     

Tenant receivables and accrued revenue, net

    2,144     37,465     (14,312 )
     

Deferred costs and other assets

    (40,388 )   (28,089 )   (21,295 )
     

Accounts payable, accrued expenses, intangibles, deferred revenues and other liabilities

    (22,550 )   3,789     41,213  
               
       

Net cash provided by operating activities

    1,755,210     1,720,520     1,635,887  
               

CASH FLOWS FROM INVESTING ACTIVITIES:

                   
   

Acquisitions

    (976,276 )        
   

Funding of loans to related parties

    (29,500 )   (120,000 )   (8,000 )
   

Repayments of loans from related parties

    10,500     8,700     35,300  
   

Capital expenditures, net

    (256,312 )   (376,275 )   (874,286 )
   

Cash from acquisitions and cash impact from the consolidation of properties

    27,015          
   

Net proceeds from sale of assets and interest in unconsolidated entities

    301,425     33,106      
   

Investments in unconsolidated entities

    (193,925 )   (107,204 )   (137,509 )
   

Purchase of marketable and non-marketable securities

    (16,157 )   (132,984 )   (355,994 )
   

Sale of marketable securities

    26,175     74,116     8,997  
   

Purchase of loans held for investment

    (433,033 )        
   

Repayments of loans held for investment

    37,574          
   

Distributions of capital from unconsolidated entities and other

    255,819     201,550     309,217  
               
       

Net cash used in investing activities

    (1,246,695 )   (418,991 )   (1,022,275 )
               

CASH FLOWS FROM FINANCING ACTIVITIES:

                   
   

Issuance of units

    4,166     1,642,228     11,106  
   

Purchase of preferred units and partnership units

            (16,009 )
   

Preferred unit redemptions

    (10,994 )   (87,689 )   (1,845 )
   

Distributions to noncontrolling interest holders in properties

    (24,615 )   (30,706 )   (28,251 )
   

Contributions from noncontrolling interest holders in properties

    1,058     2,795     4,005  
   

Partnership distributions

    (919,443 )   (186,050 )   (1,075,895 )
   

Loss on debt extinguishment

    (350,688 )        
   

Mortgage and other indebtedness proceeds, net of transaction costs

    3,858,815     3,220,706     4,456,975  
   

Mortgage and other indebtedness principal payments

    (6,227,814 )   (2,678,639 )   (3,692,136 )
               
       

Net cash (used in) provided by financing activities

    (3,669,515 )   1,882,645     (342,050 )
               

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

    (3,161,000 )   3,184,174     271,562  

CASH AND CASH EQUIVALENTS, beginning of year

    3,957,718     773,544     501,982  
               

CASH AND CASH EQUIVALENTS, end of year

  $ 796,718   $ 3,957,718   $ 773,544  
               

The accompanying notes are an integral part of these statements.

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Simon Property Group, L.P. and Subsidiaries
Consolidated Statements of Equity
(Dollars in thousands)

 
  Preferred
Units
  Simon Property
(Managing General
Partner)
  Limited
Partners
  Noncontrolling
interests
  Total Equity  

Balance at December 31, 2007

  $ 49,184   $ 2,783,828   $ 722,851   $ (141,251 ) $ 3,414,612  
                       

General partner contributions (282,106 units)

         
11,886
               
11,886
 

Series J preferred stock premium and amortization

    (329 )                     (329 )

Series C preferred units (6,583 units) converted to limited partner common units (4,981 units)

    (184 )         184           -  

Series I preferred units (6,437,072 units) converted to common units (5,151,776 units)

          321,854                 321,854  

Series I preferred units (1,493,904 units) converted to limited partner common units (1,187,238 units)

                74,695           74,695  

Limited partner units converted to common units (2,574,608 units)

          31,351     (31,351 )         -  

Stock incentive program (276,872 units, net)

                            -  

Amortization of stock incentive

          28,640                 28,640  

Other (includes 162,451 limited partner units converted to cash)

          (5,834 )   (16,797 )   5,103     (17,528 )

Adjustment to limited partners' interest from increased ownership in the Operating Partnership

          (23,455 )   23,455           -  

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,531 )   (811,327 )   (205,850 )   (25,753 )   (1,046,461 )

Net income, excluding preferred distributions on temporary equity preferred units of $55,187

    3,531     422,517     107,209     11,091     544,348  

Other comprehensive income (loss)

          (183,153 )   (46,597 )         (229,750 )
                       

Balance at December 31, 2008

  $ 48,671   $ 2,576,307   $ 627,799   $ (150,810 ) $ 3,101,967  
                       

General partner contributions (181,850 units)

         
4,725
               
4,725
 

Issuance of units related to Simon Property public offerings (40,250,000 units)

          1,638,340                 1,638,340  

Series J preferred stock premium and amortization

    (328 )                     (328 )

Limited partner units converted to common units (1,866,474 units)

          24,033     (24,033 )         -  

Series C preferred units (94,235 units) converted to limited partner units (51,447 units)

                2,638           2,638  

Series D preferred units (1,269,524 units) converted to limited partner units (614,055 units)

                38,086           38,086  

Stock incentive program (254,227 units, net)

                            -  

Amortization of stock incentive

          22,870                 22,870  

Other

    (2,639 )   (5,275 )   624     2,712     (4,578 )

Adjustment to limited partners' interest from increased ownership in the Operating Partnership

          (171,446 )   171,446           -  

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,337 )   (742,700 )   (159,392 )   (25,176 )   (930,605 )

Units issued to common unitholders (11,876,076 units) and limited partners (2,637,341 units)

          620,503     133,734           754,237  

Net income, excluding preferred distributions on temporary equity preferred units of $34,857

    3,337     283,098     60,474     5,496     352,405  

Other comprehensive income (loss)

          161,978     41,227           203,205  
                       

Balance at December 31, 2009

  $ 45,704   $ 4,412,433   $ 892,603   $ (167,778 ) $ 5,182,962  
                       

General partner contributions (178,683 units)

         
5,006
               
5,006
 

Issuance of limited partner units (1,813,993)

                162,987           162,987  

Series J preferred stock premium and amortization

    (329 )                     (329 )

Series I preferred units (7,871,276 units) converted to common units (6,670,589 units)

          393,564                 393,564  

Series I preferred units (1,017,480 units) converted to limited partner common units (862,292 units)

                50,874           50,874  

Limited partner units converted to common units (247,640 units)

          3,866     (3,866 )         -  

Stock incentive program (116,726 units, net)

                            -  

Amortization of stock incentive

          16,839                 16,839  

Issuance of unit equivalents and other

          (10,634 )   10,569     1,058     993  

Adjustment to limited partners' interest from increased ownership in the Operating Partnership

          101,556     (101,556 )         -  

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,337 )   (757,267 )   (153,247 )   (24,835 )   (938,686 )

Net income, excluding preferred distributions on temporary equity preferred units of $5,592

    3,337     610,424     123,521     10,640     747,922  

Other comprehensive income (loss)

          9,618     2,002           11,620  
                       

Balance at December 31, 2010

  $ 45,375   $ 4,785,405   $ 983,887   $ (180,915 ) $ 5,633,752  
                       

The accompanying notes are an integral part of these statements.

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Simon Property Group, L.P. and Subsidiaries

Notes to Consolidated Financial Statements

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

1.    Organization

            Simon Property Group, L.P. is a Delaware limited partnership and the majority-owned subsidiary of Simon Property Group, Inc. In these notes to consolidated financial statements, the terms "Operating Partnership", "we", "us" and "our" refer to Simon Property Group, L.P., and its subsidiaries and the term "Simon Property" refers to Simon Property Group, Inc. Simon Property is a self-administered and self-managed real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code. According to our partnership agreement, we are required to pay all expenses of Simon Property.

            We own, develop and manage retail real estate properties, which consist primarily of regional malls, Premium Outlets®, The Mills®, and community/lifestyle centers. As of December 31, 2010, we owned or held an interest in 338 income-producing properties in the United States, which consisted of 161 regional malls, 58 Premium Outlets, 66 community/lifestyle centers, 36 properties acquired in the 2007 acquisition of The Mills Corporation, or the Mills acquisition, and 17 other shopping centers or outlet centers in 41 states and Puerto Rico. Of the 36 properties acquired in the Mills portfolio, 16 of these properties are The Mills, 16 are regional malls, and four are community centers. Internationally, as of December 31, 2010, we had ownership interests in 45 European shopping centers in Italy, eight Premium Outlets in Japan, one Premium Outlet in Mexico, and one Premium Outlet in South Korea. On July 15, 2010, we and our joint venture partner sold our collective interests in Simon Ivanhoe S.à.r.l., or Simon Ivanhoe, which owned seven shopping centers located in France and Poland.

            We generate the majority of our revenues from leases with retail tenants including:

            Revenues of our management company, after intercompany eliminations, consist primarily of management fees that are typically based upon the revenues of the property being managed.

            We also generate supplemental revenue from the following activities:

2.    Basis of Presentation and Consolidation

            The accompanying consolidated financial statements include the accounts of all majority-owned subsidiaries, and all significant intercompany amounts have been eliminated.

            We consolidate properties that are wholly owned or properties where we own less than 100% but we control. Control of a property is demonstrated by, among other factors, our ability to refinance debt and sell the property without the consent of any other partner or owner and the inability of any other partner or owner to replace us.

            We also consolidate a variable interest entity, or VIE, when we are determined to be the primary beneficiary. On January 1, 2010, we adopted the amendment on the accounting and disclosure requirements for the consolidation of VIEs. This amendment requires an enterprise to perform a qualitative analysis when determining whether or not it must consolidate a VIE. The amendment also requires an enterprise to continuously reassess whether it must

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Simon Property Group, L.P. and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

2.    Basis of Presentation and Consolidation (Continued)


consolidate a VIE. Additionally, the amendment requires enhanced disclosures about an enterprise's involvement with VIEs and any significant change in risk exposure due to that involvement, as well as how its involvement with VIEs impacts the enterprise's financial statements. Finally, an enterprise will be required to disclose significant judgments and assumptions used to determine whether or not to consolidate a VIE. The adoption of this amendment did not have a significant impact on our financial position, results of operations, or cash flows.

            Determination of the primary beneficiary of a VIE is based on whether an entity (1) has the power to direct activities that most significantly impact the economic performance of the VIE and (2) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE, including management agreements and other contractual arrangements. There have been no changes during 2010 in conclusions about whether an entity qualifies as a VIE or whether we are the primary beneficiary of any previously identified VIE. During 2010, we did not provide financial or other support to a previously identified VIE that we were not previously contractually obligated to provide.

            Investments in partnerships and joint ventures represent our noncontrolling ownership interests in properties. We account for these investments using the equity method of accounting. We initially record these investments at cost and we subsequently adjust for net equity in income or loss, which we allocate in accordance with the provisions of the applicable partnership or joint venture agreement, and cash contributions and distributions. The allocation provisions in the partnership or joint venture agreements are not always consistent with the legal ownership interests held by each general or limited partner or joint venture investee primarily due to partner preferences. We separately report investments in joint ventures for which accumulated distributions have exceeded investments in and our share of net income of the joint ventures within cash distributions and losses in partnerships and joint ventures, at equity in the consolidated balance sheets. The net equity of certain joint ventures is less than zero because of financing or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization.

            As of December 31, 2010, we consolidated 218 wholly-owned properties and 19 additional properties that are less than wholly-owned, but which we control or for which we are the primary beneficiary. We account for the remaining 156 properties, or joint venture properties, using the equity method of accounting. We manage the day-to-day operations of 92 of the 156 joint venture properties, but have determined that our partner or partners have substantive participating rights in regards to the assets and operations of these joint venture properties. Our investments in joint ventures in Europe, Japan, Mexico and Korea comprise 55 of the remaining 64 properties. The international properties are managed by joint ventures in which we share oversight responsibility with our partner. Additionally, we account for our investment in SPG-FCM Ventures, LLC, or SPG-FCM, which acquired The Mills Corporation and its wholly-owned subsidiary, The Mills Limited Partnership, or collectively Mills, in April 2007, using the equity method of accounting. We have determined that SPG-FCM is not a VIE and that Farallon Capital Management, L.L.C., our joint venture partner, has substantive participating rights with respect to the assets and operations of SPG-FCM pursuant to the applicable partnership agreements.

            We allocate our net operating results after preferred distributions based on our partners' respective weighted average ownership. Simon Property owns a majority of our common units of partnership interest, or units, and certain series of our preferred units of partnership interest, or preferred units, which have terms comparable to outstanding shares of Simon Property preferred stock. Simon Property's weighted average ownership interest in us was as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Weighted average ownership interest

    83.2 %   82.4 %   79.8 %

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Simon Property Group, L.P. and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

2.    Basis of Presentation and Consolidation (Continued)

            As of December 31, 2010 and 2009, Simon Property's ownership interest was 82.9% and 83.2%, respectively. We adjust the limited partners' interest at the end of each period to reflect their respective interests in us.

            Preferred unit requirements in the accompanying consolidated statements of operations and cash flows represent distributions on outstanding preferred units at the time of declaration of partnership interests held by limited partners.

            We made certain reclassifications of prior period amounts in the consolidated financial statements to conform to the 2010 presentation. These reclassifications had no impact on previously reported net income attributable to common unitholders or earnings per unit.

3.    Summary of Significant Accounting Policies

            We record investment properties at cost. Investment properties include costs of acquisitions; development, predevelopment, and construction (including allocable salaries and related benefits); tenant allowances and improvements; and interest and real estate taxes incurred during construction. We capitalize improvements and replacements from repair and maintenance when the repair and maintenance extends the useful life, increases capacity, or improves the efficiency of the asset. All other repair and maintenance items are expensed as incurred. We capitalize interest on projects during periods of construction until the projects are ready for their intended purpose based on interest rates in place during the construction period. The amount of interest capitalized during each year is as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Capitalized interest

  $ 3,715   $ 14,502   $ 27,847  

            We record depreciation on buildings and improvements utilizing the straight-line method over an estimated original useful life, which is generally 10 to 40 years. We review depreciable lives of investment properties periodically and we make adjustments when necessary to reflect a shorter economic life. We amortize tenant allowances, tenant inducements and tenant improvements utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter. We record depreciation on equipment and fixtures utilizing the straight-line method over seven to ten years.

            We review investment properties for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in cash flows, occupancy and comparable sales per square foot at the property. We measure any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization plus its residual value is less than the carrying value of the property. To the extent impairment has occurred, we charge to income the excess of carrying value of the property over its estimated fair value. We estimate fair value using unobservable data such as operating income, estimated capitalization rates, or multiples, leasing prospects and local market information. We may decide to sell properties that are held for use and the sale prices of these properties may differ from their carrying values. We also review our investments including investments in unconsolidated entities if events or circumstances change indicating that the carrying amount of our investments may not be recoverable. We will record an impairment charge if we determine that a decline in the fair value of the investments is other-than-temporary.

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Simon Property Group, L.P. and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            Certain of our real estate assets contain asbestos. The asbestos is appropriately contained, in accordance with current environmental regulations, and we have no current plans to remove the asbestos. If these properties were demolished, certain environmental regulations are in place which specify the manner in which the asbestos must be handled and disposed. Because the obligation to remove the asbestos has an indeterminable settlement date, we are not able to reasonably estimate the fair value of this obligation.

            We allocate the purchase price of acquisitions to the various components of the acquisition based upon the fair value of each component which may be derived from various observable or unobservable inputs and assumptions. Also, we may utilize third party valuation specialists. These components typically include buildings, land and intangibles related to in-place leases and we estimate:

            Amounts allocated to building are depreciated over the estimated remaining life of the acquired building or related improvements. We amortize amounts allocated to tenant improvements, in-place lease assets and other lease-related intangibles over the remaining life of the underlying leases. We also estimate the value of other acquired intangible assets, if any, which are amortized over the remaining life of the underlying related intangibles.

            We reclassify any material operations and gains or losses on disposal related to consolidated properties sold during the period to discontinued operations. There were no consolidated assets sold during 2008. During 2009, we reported a net loss of approximately $9.8 million upon the sale of four consolidated assets. During 2010, we reported a net gain of approximately $5.7 million upon the sale of one regional mall, one community center, and two other retail properties. These gains and losses are reported in gain (loss) upon acquisition of controlling interest, and on sale of assets and interests in unconsolidated entities, net in the consolidated statements of operations and comprehensive income. The gains and losses on the disposition of these assets and the operating results were not significant to our consolidated results of operations.

            We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash and cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Cash equivalents generally consist of commercial paper, bankers acceptances, Eurodollars, repurchase agreements, and money markets. Our gift card programs are administered by banks. We collect gift card funds at the point of sale and then remit those funds to the banks for further processing. As a result, cash and cash equivalents, as of December 31, 2010 and 2009, includes a balance of $55.3 million and $38.1 million, respectively, related to these gift card programs which we do not consider available for general working capital purposes. Financial instruments that potentially subject us to concentrations of credit risk include our cash and cash equivalents and our trade accounts receivable. We place our cash and cash equivalents with institutions with high credit quality. However, at certain times, such cash and cash equivalents may be in excess of FDIC and SIPC insurance limits. See Notes 4, 8, and 10 for disclosures about non-cash investing and financing transactions.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            Marketable securities consist primarily of the investments of our captive insurance subsidiaries, available-for-sale securities, our deferred compensation plan investments, and certain investments held to fund the debt service requirements of debt previously secured by investment properties that have been sold.

            The types of securities included in the investment portfolio of our captive insurance subsidiaries typically include U.S. Treasury or other U.S. government securities as well as corporate debt securities with maturities ranging from less than 1 to 10 years. These securities are classified as available-for-sale and are valued based upon quoted market prices or other observable inputs when quoted market prices are not available. The amortized cost of debt securities, which approximates fair value, held by our captive insurance subsidiaries is adjusted for amortization of premiums and accretion of discounts to maturity. Changes in the values of these securities are recognized in accumulated other comprehensive income (loss) until the gain or loss is realized or until any unrealized loss is deemed to be other-than-temporary. We review any declines in value of these securities for other-than-temporary impairment and consider the severity and duration of any decline in value. To the extent an other-than-temporary impairment is deemed to have occurred, an impairment charge is recorded and a new cost basis is established. Subsequent changes are then recognized through other comprehensive income (loss) unless another other-than-temporary impairment is deemed to have occurred.

            Our investment in shares of Liberty International PLC, or Liberty, was also accounted for as an available-for-sale security. During 2009, we recognized a non-cash charge of $140.5 million, or $0.44 per diluted share, representing an other-than-temporary impairment in fair value below the carrying value of our investment in Liberty. At June 30 and December 31, 2009, we owned 35.4 million shares at a weighted average original cost per share of £5.74. As of June 30 and December 31, 2009, Liberty's quoted market price was £3.97 and £5.15 per share, respectively. As a result of the significance and duration of the decline in the total share price at June 30, 2009, including currency revaluations, we deemed the decline in value as other-than-temporary impairment establishing a new cost basis of our investment in Liberty. As a result, changes in available-for-sale securities and other in the 2009 consolidated statement of operations and comprehensive income include the reclassification of $140.5 million from accumulated other comprehensive loss to earnings related to this non-cash charge. Prior to the quarter ending June 30, 2009, the changes in value of our Liberty investment were reflected in other comprehensive income. Effective July 1, 2009, we resumed marking to market our Liberty investment through other comprehensive income.

            Effective May 7, 2010, Liberty completed a demerger in which it was separated into two companies, Capital Shopping Centres Group PLC, or CSCG, and Capital & Counties Properties PLC, or CAPC. Liberty shareholders acquired the same number of shares of CSCG and CAPC as they owned in Liberty. Our interests in CSCG and CAPC are adjusted to their quoted market price, including a related foreign exchange component. At December 31, 2010, we owned 35.4 million shares of CSCG at a carrying value of £3.03 per share, and 35.4 million shares of CAPC at a carrying value of £0.94 per share. The market value of our investments in CSCG and CAPC was $228.4 million and $82.4 million, respectively, at December 31, 2010. Our aggregate unrealized gain on these investments was approximately $79.0 million at December 31, 2010. The carrying value of our investment in Liberty at December 31, 2009 was $290.0 million with an unrealized gain of $58.2 million.

            Our insurance subsidiaries are required to maintain statutory minimum capital and surplus as well as maintain a minimum liquidity ratio. Therefore, our access to these securities may be limited. Our deferred compensation plan investments are classified as trading securities and are valued based upon quoted market prices. The investments have a matching liability as the amounts are fully payable to the employees that earned the compensation. Changes in value of these securities and changes to the matching liability to employees are both recognized in earnings and, as a result, there is no impact to consolidated net income. As of December 31, 2010 and December 31, 2009, we also had investments of $24.9 million and $51.7 million, respectively, which must be used to fund the debt service requirements of mortgage debt related to investment properties that previously collateralized the debt. These investments are

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

classified as held-to-maturity and are recorded at amortized cost as we have the ability and intent to hold these investments to maturity.

            At December 31, 2010 and 2009, we had an investment of $72.4 million and $70 million, respectively, in a non-marketable security that we account for under the cost method. We regularly evaluate this investment for any other-than-temporary decline in its estimated fair value.

            Total net unrealized gains as of December 31, 2010 and December 31, 2009 were approximately $79.3 million and $59.4 million, respectively, and represented the valuation and related currency adjustments for our available-for-sale marketable securities. As of December 31, 2010, we do not consider any declines in value of any of our marketable and non-marketable securities to be an other-than-temporary impairment, as these market value declines, if any, have existed for a short period of time, and, in the case of debt securities, we have the ability and intent to hold these securities to maturity.

            We hold marketable securities that total $511.3 million and $464.1 million at December 31, 2010 and December 31, 2009, respectively, and are considered to have Level 1 fair value inputs. In addition, we have derivative instruments which are classified as having Level 2 inputs which consist primarily of interest rate swap agreements and foreign currency forward contracts with a gross liability balance of $27.6 million and $13.0 million at December 31, 2010 and December 31, 2009, respectively, and a nominal asset value at December 31, 2010 and 2009. We also have interest rate cap agreements with a nominal asset value. Level 1 fair value inputs are quoted prices for identical items in active, liquid and visible markets such as stock exchanges. Level 2 fair value inputs are observable information for similar items in active or inactive markets, and appropriately consider counterparty creditworthiness in the valuations. Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. Note 8 includes discussion of the fair value of debt measured using level 1 and level 2 inputs. Note 4 includes discussion of fair values recorded in purchase accounting and impairment determination using level 2 and level 3 inputs. Level 3 inputs to our purchase accounting and impairment calculations include our estimations of net operating results of the property, capitalization rates and discount rates.

            We prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States, or GAAP. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Our actual results could differ from these estimates.

            Our primary business is the ownership, development, and management of retail real estate. We have aggregated our retail operations, including regional malls, Premium Outlets, The Mills, and community/lifestyle centers, into one reportable segment because they have similar economic characteristics and we provide similar products and services to similar types of tenants.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            Deferred costs and other assets include the following as of December 31:

 
  2010   2009  

Deferred financing and lease costs, net

  $ 298,674   $ 265,906  

In-place lease intangibles, net

    150,199     13,900  

Acquired above market lease intangibles, net

    12,466     19,424  

Marketable securities of our captive insurance companies

    90,963     75,703  

Goodwill

    20,098     20,098  

Other marketable securities

    420,356     388,427  

Loans held for investment

    395,934      

Prepaids, notes receivable and other assets, net

    406,749     372,129  
           

  $ 1,795,439   $ 1,155,587  
           

            Our deferred costs consist primarily of financing fees we incurred in order to obtain long-term financing and internal and external leasing commissions and related costs. We record amortization of deferred financing costs on a straight-line basis over the terms of the respective loans or agreements. Our deferred leasing costs consist primarily of capitalized salaries and related benefits in connection with lease originations. We record amortization of deferred leasing costs on a straight-line basis over the terms of the related leases. Details of these deferred costs as of December 31 are as follows:

 
  2010   2009  

Deferred financing and lease costs

  $ 461,315   $ 417,975  

Accumulated amortization

    (162,641 )   (152,069 )
           

Deferred financing and lease costs, net

  $ 298,674   $ 265,906  
           

            We report amortization of deferred financing costs, amortization of premiums, and accretion of discounts as part of interest expense. Amortization of deferred leasing costs is a component of depreciation and amortization expense. We amortize debt premiums and discounts, which are included in mortgages and other indebtedness, over the remaining terms of the related debt instruments. These debt premiums or discounts arise either at the debt issuance or as part of the purchase price allocation of the fair value of debt assumed in acquisitions. The accompanying consolidated statements of operations and comprehensive income include amortization as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Amortization of deferred financing costs

  $ 27,806   $ 20,408   $ 17,044  

Amortization of debt premiums, net of discounts

    (9,066 )   (10,627 )   (14,701 )

Amortization of deferred leasing costs

    34,801     32,744     31,674  

            From time to time, we may make investments in mortgage loans or mezzanine loans of entities that own and operate commercial real estate assets located in the United States. Mortgage loans are secured, in part, by mortgages recorded against the underlying properties. Mezzanine loans are secured, in part, by pledges of ownership interests of

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

the entities that own the underlying real estate. Loans held for investment are carried at cost, net of any premiums or discounts which are accreted or amortized over the life of the related loan receivable utilizing the effective interest method. We evaluate the collectability of both interest and principal of each of our loans quarterly to determine whether the value has been impaired. A loan is deemed to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a loan is impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the loan held for investment to its estimated realizable value.

            At December 31, 2010, we had investments in six mortgage and mezzanine loans secured by retail real estate with an aggregate carrying value of $395.9 million. These loans mature at various dates through October 2012 with a weighted average maturity of approximately 13 months. Certain of these loans require interest-only payments while others require payments of interest and principal based on a 30 year amortization. Interest rates on these loans are fixed between 5.5% and 7.0% with a weighted average interest rate of approximately 5.9% and approximate market rates for instruments of similar quality and duration. During 2010, we recorded $4.6 million in interest income earned from loans held for investment. Payments on each of these loans were current as of December 31, 2010.

            The average life of in-place lease intangibles is approximately 6.6 years and is amortized over the remaining life of the leases of the related property on the straight-line basis and is included with depreciation and amortization in the consolidated statements of operations and comprehensive income. The amount of in-place lease intangibles increased during 2010 as a result of the acquisition of Prime Outlets Acquisition Company, or Prime, as further discussed in Note 4. The fair market value of above and below market leases is amortized into revenue over the remaining lease life as a component of reported minimum rents. The weighted average remaining life of these intangibles is approximately 3.6 years. The unamortized amount of below market leases is included in accounts payable, accrued expenses, intangibles and deferred revenues in the consolidated balance sheets and was $39.0 million and $60.9 million as of December 31, 2010 and 2009, respectively. The amount of amortization of above and below market leases, net for the years ended December 31, 2010, 2009, and 2008 was $15.2 million, $20.0 million, and $35.4 million, respectively. If a lease is terminated prior to the original lease termination, any remaining unamortized intangible is charged to earnings.

            Details of intangible assets as of December 31 are as follows:

 
  2010   2009  

In-place lease intangibles

  $ 211,541   $ 90,183  

Accumulated amortization

    (61,342 )   (76,283 )
           

In-place lease intangibles, net

  $ 150,199   $ 13,900  
           

Acquired above market lease intangibles

  $ 104,690   $ 104,690  

Accumulated amortization

    (92,224 )   (85,266 )
           

Acquired above market lease intangibles, net

  $ 12,466   $ 19,424  
           

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            Estimated future amortization, and the increasing (decreasing) effect on minimum rents for our above and below market leases as of December 31, 2010 are as follows:

 
  Below Market
Leases
  Above Market
Leases
  Increase to
Minimum
Rent, Net
 

2011

  $ 15,713   $ (4,909 ) $ 10,804  

2012

    10,703     (3,703 )   7,000  

2013

    6,555     (2,592 )   3,963  

2014

    2,824     (1,119 )   1,705  

2015

    1,690     (115 )   1,575  

Thereafter

    1,473     (28 )   1,445  
               

  $ 38,958   $ (12,466 ) $ 26,492  
               

            We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We use a variety of derivative financial instruments in the normal course of business to manage or hedge the risks associated with our indebtedness and interest payments. Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps and caps. We require that hedging derivative instruments be highly effective in reducing the risk exposure that they are designated to hedge. As a result, there was no significant ineffectiveness from any of our derivative activities during the period. We formally designate any instrument that meets these hedging criteria as a hedge at the inception of the derivative contract. We have no credit-risk-related hedging or derivative activities.

            As of December 31, 2010, we had the following outstanding interest rate derivatives related to interest rate risk:

Interest Rate Derivative
 
Number of Instruments
 
Notional Amount
Interest Rate Swaps   4   $692.5 million
Interest Rate Caps   3   $385.0 million

            The carrying value of our interest rate swap agreements, at fair value, is included within other liabilities and was $19.5 million and $13.0 million at December 31, 2010 and December 31, 2009, respectively. At December 31, 2009, we also had interest rate swaps with a carrying value of $0.3 million reported within deferred costs and other assets. The interest rate cap agreements were of nominal value at December 31, 2010 and December 31, 2009 and we generally do not apply hedge accounting to these arrangements. The total gross accumulated other comprehensive loss related to our derivative activities, including our share of the other comprehensive loss from joint venture properties, approximated $40.1 million and $52.3 million as of December 31, 2010 and 2009, respectively.

            We are also exposed to fluctuations in foreign exchange rates on financial instruments which are denominated in foreign currencies, primarily in Japan and Europe. We use currency forward contracts to manage our exposure to changes in foreign exchange rates on certain Yen and Euro-denominated receivables and net investments. Currency forward contracts involve fixing the Yen-USD or Euro-USD exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward contracts are typically cash settled in US dollars for their fair value at or close to their settlement date. We entered into Yen-USD forward contracts during 2009 for approximately ¥3 billion that we expect to receive through April 2011 at an average exchange rate of 97.1 JPY:USD. We entered into

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)


Yen-USD forward contracts during 2010 for an additional ¥1.7 billion that we expect to receive through October 2012 at an average exchange rate of 89.0 JPY:USD. Approximately ¥1.8 billion remains as of December 31, 2010 the aggregate of the 2009 and 2010 contracts. The December 31, 2010 liability balance related to these forwards was $2.1 million and is included in other liabilities and accrued distributions. We have reflected the changes in fair value for these forward contracts in earnings. The underlying currency adjustments on the foreign-denominated receivables are also reflected in income and generally offset the amounts in earnings for these forward contracts. We entered into two Euro-USD forward contracts during 2010 with an aggregate €200.0 million notional value maturing on June 30, 2011 which were designated as net investment hedges. The December 31, 2010 liability balance related to these forwards was $6.0 million and is included in other liabilities and accrued distributions. We apply hedge accounting and the changes in fair value for these Euro forward contracts are reflected in other comprehensive income (loss). Changes in the value of these hedges are offset by changes in the underlying hedged Euro-denominated joint venture investment.

            In addition to noncontrolling redeemable interests in properties, we classify our 6% Series I Convertible Perpetual Preferred Units, or Series I preferred units, and our 7.5% Cumulative Redeemable Preferred Units, or 7.5% preferred units, in temporary equity due to the possibility that we could be required to redeem the securities for cash. Prior to their redemption, as further discussed in Note 10, the holders of the Series I preferred units had the ability to redeem this series of preferred units for cash upon the occurrence of a change in control event, which included a change in the majority of the directors on Simon Property's Board of Directors, or the Board, that occurs over a two year period. Such a change in Board composition could be deemed outside of our control. For the 7.5% preferred units, the redemption of preferred units requires the delivery of fully registered shares of Simon Property common stock. The previous and current carrying amounts of both of these series of preferred units are equal to their liquidation value, which is the amount payable upon the occurrence of any event that could potentially result in cash settlement.

            Our evaluation of the appropriateness of classifying the units held by Simon Property and limited partners within permanent equity considered several significant factors in determining the appropriate classification of those units in the consolidated balance sheets. First, as a limited partnership, all routine decisions relating to our operations and distributions are made by Simon Property, acting as our sole general partner. The decisions of the general partner are made by the Board and Simon Property's management. We have no other governance structure. Secondly, the sole asset of Simon Property is its interest in us. As a result, a share of Simon Property common stock (if owned by us) is best characterized as being similar to a treasury share and thus not an asset of the Operating Partnership.

            Limited partners have the right under our partnership agreement to exchange their units for shares of Simon Property common stock or cash as selected by the general partner. Accordingly, we classify limited partner units in permanent equity because we have the unrestricted ability to issue shares of Simon Property common stock to limited partners exercising their exchange rights rather than using cash or other assets. Under our partnership agreement, we are required to redeem units held by Simon Property only when Simon Property has redeemed shares of its common stock. We classify units held by Simon Property in permanent equity because the decision to redeem those units would be made through our governance structure, with Simon Property making the decision on our behalf.

            Net income attributable to noncontrolling interests (which includes nonredeemable noncontrolling interests in consolidated properties) is a component of consolidated net income. In addition, the individual components of other comprehensive income (loss) are presented in the aggregate for both controlling and noncontrolling interests, with the portion attributable to noncontrolling interests deducted from comprehensive income (loss) attributable to unitholders.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            A rollforward of noncontrolling interests for the years ending December 31 is as follows:

 
  2010   2009   2008  

Noncontrolling nonredeemable deficit interests in properties, net —
beginning of period

  $ (167,778 ) $ (150,810 ) $ (141,251 )

Net income attributable to noncontrolling nonredeemable interests

    10,640     5,496     11,091  

Distributions to noncontrolling nonredeemable interestholders

    (24,835 )   (25,176 )   (25,753 )

Issuance of unit equivalents and other

    1,058     2,712     5,103  
               

Noncontrolling nonredeemable deficit interests in properties, net —
end of period

  $ (180,915 ) $ (167,778 ) $ (150,810 )
               

            The components of our accumulated other comprehensive income (loss) consisted of the following as of December 31:

 
  2010   2009  

Cumulative translation adjustments

  $ (31,358 ) $ (10,768 )

Accumulated derivative losses, net

    (40,069 )   (52,345 )

Net unrealized gains on marketable securities, net

    79,292     59,358  
           

Total accumulated other comprehensive income (loss)

  $ 7,865   $ (3,755 )
           

            We, as a lessor, retain substantially all of the risks and benefits of ownership of the investment properties and account for our leases as operating leases. We accrue minimum rents on a straight-line basis over the terms of their respective leases. Substantially all of our retail tenants are also required to pay overage rents based on sales over a stated base amount during the lease year. We recognize overage rents only when each tenant's sales exceed the applicable sales threshold.

            We structure our leases to allow us to recover a significant portion of our property operating, real estate taxes, repairs and maintenance, and advertising and promotion expenses from our tenants. A substantial portion of our leases, other than those for anchor stores, require the tenant to reimburse us for a substantial portion of our operating expenses, including common area maintenance, or CAM, real estate taxes and insurance. This significantly reduces our exposure to increases in costs and operating expenses resulting from inflation. Such property operating expenses typically include utility, insurance, security, janitorial, landscaping, food court and other administrative expenses. We accrue reimbursements from tenants for recoverable portions of all these expenses as revenue in the period the applicable expenditures are incurred. As of December 31, 2010 for approximately 84% of our leases in the U.S. regional mall portfolio, we receive a fixed payment from the tenant for the CAM component. Without the fixed-CAM component, CAM expense reimbursements are based on the tenant's proportionate share of the allocable operating expenses and CAM capital expenditures for the property. We also receive escrow payments for these reimbursements from substantially all our non-fixed CAM tenants and monthly fixed CAM payments throughout the year. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material in any period presented. Our advertising and promotional costs are expensed as incurred.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)

            Management fees and other revenues are generally received from our unconsolidated joint venture properties as well as third parties. Management fee revenue is earned based on a contractual percentage of joint venture property revenue. Development fee revenue is earned on a contractual percentage of hard costs to develop a property. Leasing fee revenue is earned on a contractual per square foot charge based on the square footage of current year leasing activity. We recognize revenue for these services provided when earned based on the underlying activity.

            Insurance premiums written and ceded are recognized on a pro-rata basis over the terms of the policies. Insurance losses are reflected in property operating expenses in the accompanying consolidated statements of operations and comprehensive income and include estimates for losses incurred but not reported as well as losses pending settlement. Estimates for losses are based on evaluations by third-party actuaries and management's best estimates. Total insurance reserves for our insurance subsidiaries and other self-insurance programs as of December 31, 2010 and 2009 approximated $116.2 million and $117.2 million, respectively, and are included in other liabilities and accrued distributions in the consolidated balance sheets. Information related to the securities included in the investment portfolio of our captive insurance subsidiaries is included within the "Marketable and Non-Marketable Securities" section above.

            We recognize fee revenues from our co-branded gift card programs when the fees are earned under the related arrangements with the card issuer. Generally, these revenues are recorded at the issuance of the gift card for handling fees.

            We record a provision for credit losses based on our judgment of a tenant's creditworthiness, ability to pay and probability of collection. In addition, we also consider the retail sector in which the tenant operates and our historical collection experience in cases of bankruptcy, if applicable. Accounts are written off when they are deemed to be no longer collectible. Presented below is the activity in the allowance for credit losses and includes the activities related to discontinued operations during the following years:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Balance, beginning of period

  $ 45,187   $ 44,650   $ 33,810  

Consolidation of previously unconsolidated entities

    426          

Provision for credit losses

    3,130     22,655     24,037  

Accounts written off, net of recoveries

    (17,093 )   (22,118 )   (13,197 )
               

Balance, end of period

  $ 31,650   $ 45,187   $ 44,650  
               

            As a partnership, the allocated share of our income or loss for each year is included in the income tax returns of the partners; accordingly, no accounting for income taxes is required in the accompanying consolidated financial statements. State income, franchise or other taxes were not significant in any of the periods presented.

            Simon Property and two of our subsidiaries are taxed as REITs under Sections 856 through 860 of the Internal Revenue Code and applicable Treasury regulations relating to REIT qualification. In order to maintain this REIT status, the regulations require each REIT to distribute at least 90% of its taxable income to stockholders and meet certain other asset and income tests as well as other requirements. We intend to continue to make distributions to Simon Property to assist Simon Property in meeting the asset and income tests and other REIT requirements in order to allow it to adhere to these requirements and maintain its REIT status. Our subsidiary REIT entities will generally

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

3.    Summary of Significant Accounting Policies (Continued)


not be liable for federal corporate income taxes as long as they continue to distribute in excess of 100% of their taxable income. Thus, we made no provision for federal income taxes for these entities in the accompanying consolidated financial statements. If Simon Property or either of our REIT subsidiaries fail to qualify as a REIT, Simon Property or that entity will be subject to tax at regular corporate rates for the years in which it failed to qualify. If Simon Property or either of our REIT subsidiaries lost its REIT status, it could not elect to be taxed as a REIT for four years unless its failure to qualify was due to reasonable cause and certain other conditions were satisfied.

            Simon Property has also elected taxable REIT subsidiary, or TRS, status for some of our subsidiaries. This enables us to provide services that would otherwise be considered impermissible for REITs and participate in activities that do not qualify as "rents from real property". For these entities, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe all or some portion of the deferred tax asset may not be realized. An increase or decrease in the valuation allowance that results from the change in circumstances that causes a change in our judgment about the realizability of the related deferred tax asset is included in income.

            As of December 31, 2010 and 2009, we had a net deferred tax asset of $9.0 million and $8.7 million, respectively, related to our TRS subsidiaries. The net deferred tax asset is included in deferred costs and other assets in the accompanying consolidated balance sheets and consists primarily of operating losses and other carryforwards for federal income tax purposes as well as the timing of the deductibility of losses or reserves from insurance subsidiaries. No valuation allowance has been recorded as we believe these amounts will be realized. State income, franchise or other taxes were not significant in any of the periods presented.

            We expense acquisition, potential acquisition and disposition related costs as they are incurred. During the year ended December 31, 2010, we incurred costs for the acquisition of Prime as further discussed in Note 4. We also incurred expenses for other transactions that were not consummated. Additionally, during 2010, we settled, in cash, a transaction-related dispute and recorded a charge to earnings. Transaction expenses for the year ended December 31, 2010 totaled $69.0 million. During the year ended December 31, 2009, we recorded $5.7 million in transaction expenses related to costs associated with significant acquisition related activities.

4.    Real Estate Acquisitions, Disposals, and Impairment

            We acquire properties to generate both current income and long-term appreciation in value. We acquire individual properties or portfolios of other retail real estate companies that meet our investment criteria and sell properties which no longer meet our strategic criteria. Our consolidated acquisition and disposal activity for the periods presented are highlighted as follows:

            During 2010, we acquired a controlling interest in a previously unconsolidated regional mall which resulted in a remeasurement of our previously held equity interest to fair value and corresponding gain of approximately $13.0 million. This gain is included in gain (loss) upon acquisition of controlling interest and on sale or disposal of assets and interests in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income. On May 28, 2010, we acquired an additional interest of approximately 19% in Houston Galleria, located in Houston, Texas thereby increasing our noncontrolling interest from 31.5% to 50.4%.

            On August 30, 2010, we completed our previously announced acquisition of Prime, adding 21 outlet centers, including a center located in Puerto Rico, which was acquired on May 13, 2010. The transaction was valued at

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

4.    Real Estate Acquisitions, Disposals, and Impairment (Continued)


approximately $2.3 billion, including the assumption of existing mortgage indebtedness of $1.2 billion and the repayment of $310.7 million of preexisting mortgage loans at closing.

            We paid consideration comprised of 80% cash and 20% in units. We issued approximately 1.7 million units with an issuance date fair value of approximately $154.5 million. We funded the cash portion of this acquisition through draws on our $3.9 billion unsecured revolving credit facility, or the Credit Facility, as further discussed in Note 8.

            The following table summarizes our recording of the assets acquired and liabilities assumed at the acquisition date:

 
  Total  
 
  (in millions)
 

Investment properties

  $ 2,167  

Cash and cash equivalents

    26  

Tenant receivables and accrued revenue, net

    4  

Deferred costs and other assets (including intangibles)

    234  
       
 

Total assets

  $ 2,431  
       

Mortgages and other indebtedness (including premium of $28)

  $ 1,270  

Accounts payable, accrued expenses, intangibles and other

    29  

Other liabilities

    18  
       
 

Total liabilities

  $ 1,317  
       

            Acquisition related intangibles relate to in-place leases of $193.6 million and were recorded based on their estimated fair values and are reflected within deferred costs and other assets in the accompanying financial statements. The weighted average useful life of these intangibles is approximately 6.0 years and is amortized over the remaining life of the related leases on a straight-line basis and is included within depreciation and amortization in the consolidated statements of operations and comprehensive income.

            We recorded our acquisition of these 21 outlet centers using the acquisition method of accounting. Tangible and intangible assets and liabilities were established based on their estimated fair values at the date of acquisition. The results of operations of the acquired properties have been included in our consolidated results from the date of acquisition. The purchase price allocations are preliminary and subject to revision within the measurement period, not to exceed one year from the date of acquisition. There have been no significant changes in amounts recorded since the date of acquisition through December 31, 2010.

            We had no consolidated property acquisitions during the year ended December 31, 2009.

            Effective January 1, 2008, we acquired additional interests in three existing consolidated properties of between 1.8% and 5%, for an aggregate $6.2 million in cash. Two of the properties continue to have a noncontrolling interest holder. We now own 100% of the third property.

            During the year ended December 31, 2010, we disposed of one regional mall, one community center, and two other retail properties for which we received proceeds of $5.8 million. The net gain on these disposals was $5.7 million

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

4.    Real Estate Acquisitions, Disposals, and Impairment (Continued)

and is included in gain (loss) upon acquisition of controlling interest, and on sale or disposal of assets and interests in unconsolidated entities, net in the consolidated statements of operations and comprehensive income.

            During the year ended December 31, 2009, we sold four consolidated properties for which we received proceeds of $3.9 million. The net loss on these disposals totaled $9.8 million and is included in gain (loss) upon acquisition of controlling interest, and on sale or disposal of assets and interests in unconsolidated entities, net in the consolidated statements of operations and comprehensive income.

            We had no consolidated property dispositions during the year ended December 31, 2008.

            In 2009, we recorded non-cash impairment charges of $240.1 million ($228.6 million, net of a tax benefit of $5.8 million and noncontrolling interest holders' share of $5.7 million). As discussed in Note 3, this non-cash charge includes a $140.5 million other-than-temporary impairment of our investment in Liberty. In addition, the total charge includes adjustments in the carrying value of one wholly-owned and one joint venture regional mall, a write-down of five land parcels and two joint venture non-retail real estate assets, and certain predevelopment costs related to projects no longer being pursued.

            In 2008, we recorded impairment charges of $21.2 million ($19.4 million, net of tax benefit), which resulted primarily from a $10.5 million reduction in the carrying value of a regional mall to its estimated net realizable value and the write-off of predevelopment costs related to various projects that we no longer plan to pursue.

5.    Per Unit Data

            We determine basic earnings per unit based on the weighted average number of units outstanding during the period. We determine diluted earnings per unit based on the weighted average number of units outstanding combined with the incremental weighted average units that would have been outstanding assuming all dilutive potential common units were converted into units at the earliest date possible. The following table sets forth the computation of our basic and diluted earnings per unit.

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Net Income Attributable to Unitholders — Basic & Diluted

  $ 733,945   $ 343,572   $ 529,726  

Weighted Average Units Outstanding — Basic

    349,975,924     324,102,292     282,508,087  

Effect of stock options of Simon Property

    274,460     315,897     551,057  
               

Effect of contingently issuable units from unit distributions

        1,345,537      
               

Weighted Average Units Outstanding — Diluted

    350,250,384     325,763,726     283,059,144  
               

            For the year ending December 31, 2010, potentially dilutive securities include options to purchase shares of Simon Property common stock, units granted under our long-term incentive performance programs and preferred units that are convertible into or exchangeable for units. The only security that had a dilutive effect for the year ended December 31, 2010 was stock options of Simon Property. The only securities that had a dilutive effect for the year

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

5.    Per Unit Data (Continued)


ended December 31, 2009 were stock options of Simon Property and contingently issuable units from unit distributions. The only security that had a dilutive effect for the year ended December 31, 2008 was stock options of Simon Property.

            We accrue distributions when they are declared. The taxable nature of the distributions declared for each of the years ended as indicated is summarized as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Total distributions paid per unit

  $ 2.60   $ 2.70   $ 3.60  
               

Percent taxable as ordinary income

    53.82 %   99.3 %   84.7 %

Percent taxable as long-term capital gains

    39.68 %   0.7 %   1.2 %

Percent nontaxable as return of capital

    6.50 %       14.1 %
               

    100.0 %   100.0 %   100.0 %
               

6.    Investment Properties

            Investment properties consist of the following as of December 31:

 
  2010   2009  

Land

  $ 2,929,054   $ 2,757,994  

Buildings and improvements

    24,263,169     22,265,721  
           

Total land, buildings and improvements

    27,192,223     25,023,715  

Furniture, fixtures and equipment

    316,512     312,474  
           

Investment properties at cost

    27,508,735     25,336,189  

Less — accumulated depreciation

    7,711,304     7,004,534  
           

Investment properties at cost, net

  $ 19,797,431   $ 18,331,655  
           

Construction in progress included above

  $ 125,227   $ 281,683  
           

7.    Investments in Unconsolidated Entities

            Joint ventures are common in the real estate industry. We use joint ventures to finance properties, develop new properties, and diversify our risk in a particular property or portfolio. We held joint venture ownership interests in 101 properties in the U.S. as of December 31, 2010. We also held an interest in a joint venture which owned 45 European shopping centers as of December 31, 2010 and we held an interest in two joint ventures which owned 51 European shopping centers as of December 31, 2009. As of December 31, 2010, we also held interests in eight joint venture properties under operation in Japan, one joint venture property under operation in Mexico, one joint venture property under operation and two joint venture properties under development in Korea, and one joint venture property under development in Malaysia. We account for these joint venture properties using the equity method of accounting.

            Substantially all of our joint venture properties are subject to rights of first refusal, buy-sell provisions, or other sale or marketing rights for partners which are customary in real estate joint venture agreements and the industry. Our partners in these joint ventures may initiate these provisions at any time (subject to any applicable lock up or similar restrictions), which could result in either the sale of our interest or the use of available cash or borrowings to acquire the joint venture interest from our partner.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

7.    Investments in Unconsolidated Entities (Continued)

            In May 2010, Opry Mills Mall, a property in which we have a 50% interest through our SPG-FCM joint venture, sustained significant flood damage and remains closed. Insurance proceeds of $50 million have been funded by the primary insurers and remediation work has been completed. The excess insurance carriers (those providing coverage above $50 million) have denied the joint venture's claim for additional proceeds (of up to an additional $150 million) to pay amounts for restoration costs and business interruption losses. We believe recovery under the insurance coverage is probable, but no assurances can be made in that regard.

Loans to SPG-FCM

            As part of the 2007 Mills acquisition, we made loans to SPG-FCM and Mills which were used by SPG-FCM and Mills to repay loans and other obligations of Mills. As of December 31, 2010 and 2009, the outstanding balance of our remaining loan to SPG-FCM was $651.0 million and $632.0 million, respectively. During 2010, 2009 and 2008, we recorded approximately $9.9 million, $9.3 million and $15.3 million in interest income (net of inter-entity eliminations) related to this loan, respectively. We also recorded fee income, including fee income amortization related to up-front fees on loans made to SPG-FCM and Mills, during 2010, 2009 and 2008 of approximately $0.9 million, $3.7 million and $3.1 million (net of inter-entity eliminations), respectively, for providing refinancing services to Mills' properties and SPG-FCM. The loan bears interest at a rate of LIBOR plus 275 basis points and matures on June 8, 2011, and can be extended for one year.

Summary Financial Information

            A summary of our investments in joint ventures and share of income from such joint ventures follows. Balance sheet information for the joint ventures is as follows:

 
  December 31, 2010   December 31, 2009  

BALANCE SHEETS

             

Assets:

             

Investment properties, at cost

  $ 21,236,594   $ 21,555,729  

Less — accumulated depreciation

    5,126,116     4,580,679  
           

    16,110,478     16,975,050  

Cash and cash equivalents

    802,025     771,045  

Tenant receivables and accrued revenue, net

    353,719     364,968  

Investment in unconsolidated entities, at equity

    158,116     235,173  

Deferred costs and other assets

    525,024     535,398  
           
 

Total assets

  $ 17,949,362   $ 18,881,634  
           

Liabilities and Partners' Equity:

             

Mortgages and other indebtedness

  $ 15,937,404   $ 16,549,276  

Accounts payable, accrued expenses, intangibles, and deferred revenue

    748,245     834,668  

Other liabilities

    961,284     978,771  
           
 

Total liabilities

    17,646,933     18,362,715  

Preferred units

    67,450     67,450  

Partners' equity

    234,979     451,469  
           
 

Total liabilities and partners' equity

  $ 17,949,362   $ 18,881,634  
           

Our Share of:

             

Partners' equity

  $ 146,578   $ 316,800  

Add: Excess Investment

    757,672     694,023  
           

Our net Investment in Joint Ventures

  $ 904,250   $ 1,010,823  
           

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

7.    Investments in Unconsolidated Entities (Continued)

            "Excess Investment" represents the unamortized difference of our investment over our share of the equity in the underlying net assets of the joint ventures acquired. We amortize excess investment over the life of the related properties, typically no greater than 40 years, and the amortization is included in the reported amount of income from unconsolidated entities.

            As of December 31, 2010, scheduled principal repayments on joint venture properties' mortgages and other indebtedness are as follows:

2011

  $ 1,674,563  

2012

    2,233,471  

2013

    1,883,954  

2014

    2,205,723  

2015

    1,998,785  

Thereafter

    5,931,026  
       

Total principal maturities

    15,927,522  

Net unamortized debt premiums and discounts

    9,882  
       

Total mortgages and other indebtedness

  $ 15,937,404  
       

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

7.    Investments in Unconsolidated Entities (Continued)

            This debt becomes due in installments over various terms extending through 2036 with interest rates ranging from 0.48% to 9.35% and a weighted average rate of 5.09% at December 31, 2010.

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

STATEMENTS OF OPERATIONS

                   

Revenue:

                   

Minimum rent

  $ 1,960,951   $ 1,965,565   $ 1,956,129  

Overage rent

    147,776     132,260     130,549  

Tenant reimbursements

    950,267     987,028     1,005,638  

Other income

    223,234     174,611     199,774  
               
 

Total revenue

    3,282,228     3,259,464     3,292,090  

Operating Expenses:

                   

Property operating

    635,946     656,399     671,268  

Depreciation and amortization

    793,012     801,618     775,887  

Real estate taxes

    253,627     261,294     263,054  

Repairs and maintenance

    105,042     110,606     124,272  

Advertising and promotion

    61,814     65,124     70,425  

Provision for credit losses

    4,053     16,123     24,053  

Impairment charge

        18,249      

Other

    210,858     182,201     177,298  
               
 

Total operating expenses

    2,064,352     2,111,614     2,106,257  
               

Operating Income

    1,217,876     1,147,850     1,185,833  

Interest expense

    (868,856 )   (884,539 )   (969,420 )

Gain (loss) from unconsolidated entities

    (840 )   (4,739 )   (5,123 )

Impairment charge from investments in unconsolidated entities

    (16,671 )        

Gain on sale of asset

    39,676          
               

Income from Continuing Operations

    371,185     258,572     211,290  

Income from discontinued joint venture interests

            47  
               

Net Income

  $ 371,185   $ 258,572   $ 211,337  
               

Third-Party Investors' Share of Net Income

  $ 234,799   $ 170,265   $ 132,111  
               

Our Share of Net Income

    136,386     88,307     79,226  

Amortization of Excess Investment

    (48,329 )   (55,690 )   (46,980 )

Our Share of Gain on Sale or Disposal of Assets and Interests in unconsolidated entities, net

    (20,305 )        

Our Share of Impairment Charge from Investments in Unconsolidated Entities

    8,169     7,603      
               

Income from Unconsolidated Entities, net

  $ 75,921   $ 40,220   $ 32,246  
               

            In December 2010, we recognized an $8.2 million non-cash impairment charge representing our share of an impairment on a joint venture investment in a property in Italy for which a decline in value below our carrying amount was deemed other-than-temporary.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

7.    Investments in Unconsolidated Entities (Continued)

            In December 2009 we recognized non-cash impairment charges of $7.6 million representing our share of impairment charges on joint venture properties. This charge represents adjustments to the carrying value of certain parcels of land and the write-off of predevelopment costs related to certain projects no longer being pursued. In addition, in December 2009 we recognized $35.1 million of impairment charges for investments in certain unconsolidated entities including one regional mall and two non-retail real estate assets for which declines in value below our carrying amount were deemed other-than-temporary.

International Joint Venture Investments

            We account for all of our international joint venture investments using the equity method of accounting and we conduct our international operations through joint venture arrangements.

            European Joint Ventures.    We have a 49% ownership interest in Gallerie Commerciali Italia, or GCI. The carrying amount of our investment in GCI was $330.1 million and $302.2 million as of December 31, 2010 and 2009, respectively, including all related components of accumulated other comprehensive income (loss).

            On July 15, 2010, we and our partner in Simon Ivanhoe, Ivanhoe Cambridge Inc., sold our collective interests in Simon Ivanhoe which owned seven shopping centers located in France and Poland to Unibail-Rodamco. The joint venture partners received net consideration of €422.5 million for their interests after the repayment of all joint venture debt, subject to certain post-closing adjustments. Our share of the gain on sale of our interests in Simon Ivanhoe was approximately $281 million. A portion of the proceeds was used to repay the €167.4 million (approximately $215 million) principal balance on the Euro-denominated tranche of our Credit Facility.

            Asian Joint Ventures.    We conduct our international Premium Outlet operations in Japan through our 40% participation in a joint venture with Mitsubishi Estate Co., Ltd. The carrying amount of our investment in this joint venture was $340.8 million and $302.2 million as of December 31, 2010 and 2009, respectively, including all related components of accumulated other comprehensive income (loss). We conduct our international Premium Outlet operations in Korea through our 50% participation in a joint venture with Shinsegae International Co. As of December 31, 2010 and December 31, 2009, respectively, the carrying amount of our investment in this joint venture was $35.7 million and $26.1 million including all related components of accumulated other comprehensive income (loss).

            In December 2009, we recognized a loss on our 32.5% interests in our shopping centers operating or under development in China. The interests were sold to affiliates of our Chinese partner for approximately $29 million, resulting in a loss of approximately $20 million which is included in gain (loss) upon acquisition of controlling interest, and on sale or disposal of assets and interests in unconsolidated entities, net in the 2009 consolidated statement of operations and comprehensive income.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

8.    Indebtedness and Derivative Financial Instruments

            Our mortgages and other indebtedness, excluding the impact of derivative instruments, consist of the following as of December 31:

 
  2010   2009  

Fixed-Rate Debt:

             

Mortgages and other notes, including $31,614 and $9,757 net premiums, respectively. Weighted average interest and maturity of 6.09% and 4.6 years at December 31, 2010.

  $ 5,485,659   $ 5,239,263  

Unsecured notes, including $26,586 and $23 net discounts, respectively. Weighted average interest and maturity of 6.04% and 7.3 years at December 31, 2010.

    9,985,886     11,574,977  
           

Total Fixed-Rate Debt

    15,471,545     16,814,240  

Variable-Rate Debt:

             

Mortgages and other notes, at face value. Weighted average interest and maturity of 1.65% and 1.8 years at December 31, 2010.

    1,143,578     1,370,000  

Credit Facility (see below)

    858,637     446,062  
           

Total Variable-Rate Debt

    2,002,215     1,816,062  
           

Total Mortgages and Other Indebtedness

  $ 17,473,760   $ 18,630,302  
           

            General.    At December 31, 2010, we have pledged 92 properties as collateral to secure related mortgage notes including 12 pools of cross-defaulted and cross-collateralized mortgages encumbering a total of 52 properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted package may constitute a default under all such mortgages and may lead to acceleration of the indebtedness due on each property within the collateral package. Of our 92 encumbered properties, indebtedness on 31 of these encumbered properties and our unsecured debt are subject to various financial performance covenants relating to leverage ratios, annual real property appraisal requirements, debt service coverage ratios, minimum net worth ratios, debt-to-market capitalization, and/or minimum equity values. Our mortgages and other indebtedness may be prepaid but are generally subject to payment of a yield-maintenance premium or defeasance.

            Some of our limited partners guarantee a portion of our consolidated debt through foreclosure guarantees. In total, 25 limited partners provide guarantees of foreclosure of $173.4 million of our consolidated debt at three consolidated properties. In each case, the loans were made by unrelated third party institutional lenders and the guarantees are for the benefit of each lender. In the event of foreclosure of the mortgaged property, the proceeds from the sale of the property are first applied against the amount of the guarantee and also reduce the amount payable under the guarantee. To the extent the sale proceeds from the disposal of the property do not cover the amount of the guarantee, then the limited partner is liable to pay the difference between the sale proceeds and the amount of the guarantee so that the entire amount guaranteed to the lender is satisfied. The debt is non-recourse to us and our affiliates.

Unsecured Debt

            Our unsecured debt consists of approximately $10.0 billion of senior unsecured notes and $858.6 million outstanding under our Credit Facility. The Credit Facility has a borrowing capacity of $3.9 billion and contains an accordion feature allowing the maximum borrowing capacity to expand to $4.0 billion. The Credit Facility matures on March 31, 2013. The base interest on the Credit Facility is LIBOR plus 210 basis points and includes a facility fee of 40 basis points. The Credit Facility also includes a money market competitive bid feature, which allows participating lenders to bid on amounts outstanding at then current market rates of interest for up to 50% of amounts available under the facility. As of December 31, 2010, we are in compliance with all of the covenants of our unsecured debt.

            During the year ended December 31, 2010, our borrowings under the Credit Facility increased primarily as a result of the acquisition of Prime partially offset by the repayment of €167.4 million (approximately $215 million)

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

8.    Indebtedness and Derivative Financial Instruments (Continued)


principal balance on the Euro-denominated tranche of our Credit Facility on July 23, 2010. The total outstanding balance of the Credit Facility as of December 31, 2010 was $858.6 million, and the maximum outstanding balance during the year ended December 31, 2010 was $862.2 million. During the year ended December 31, 2010, the weighted average outstanding balance on the Credit Facility was approximately $580.4 million. The outstanding balance as of December 31, 2010 includes $273.6 million (U.S. dollar equivalent) of Yen-denominated borrowings. Letters of credit of $33.3 million were outstanding under the Credit Facility at December 31, 2010.

            On January 12, 2010, we commenced a cash tender offer for any and all senior unsecured notes of ten outstanding series with maturity dates ranging from January 2011 to March 2013. The total principal amount of the notes accepted for purchase on January 26, 2010 was approximately $2.3 billion, with a weighted average duration of 2.0 years and a weighted average coupon of 5.76%. We purchased the tendered notes with cash on hand and the proceeds from an offering of $2.25 billion of senior unsecured notes that closed on January 25, 2010. The senior notes offering was comprised of $400.0 million of 4.20% notes due 2015, $1.25 billion of 5.65% notes due 2020 and $600.0 million of 6.75% notes due 2040. The weighted average duration of the notes offering was 14.4 years and the weighted average coupon was 5.69%. We recorded a $165.6 million charge to earnings in the first quarter of 2010 as a result of the tender offer.

            On March 18, 2010, we repaid a $300.0 million senior unsecured note which had a fixed rate of 4.875%.

            On June 15, 2010, we repaid a $400.0 million senior unsecured note which had a fixed rate of 4.60%.

            On August 9, 2010, we commenced a cash tender offer for any and all senior unsecured notes of three outstanding series with maturity dates ranging from May 2013 to August 2014. The total principal amount of the notes accepted for purchase on August 17, 2010 was approximately $1.33 billion, with a weighted average duration of 3.5 years and a weighted average coupon of 6.06%. We purchased the tendered notes with cash on hand and the proceeds from an offering of $900.0 million of 4.375% senior unsecured notes that closed on August 16, 2010. The senior notes are due on March 1, 2021. We recorded a $185.1 million charge to earnings in the third quarter of 2010 as a result of the tender offer.

            On August 16, 2010, we repaid a $400.0 million senior unsecured note which had a fixed rate of 4.875%.

Secured Debt

            The balance of fixed and variable rate mortgage notes was $6.6 billion at December 31, 2010 and 2009. Of the balance outstanding at December 31, 2010, $5.7 billion is nonrecourse to us. The fixed-rate mortgages generally require monthly payments of principal and/or interest. The interest rates of variable-rate mortgages are typically based on LIBOR. During the year ended December 31, 2010, we unencumbered five properties by repaying $1.1 billion in mortgage loans with a weighted average interest rate of 4.35%.

            On May 13, 2010, we acquired a property located in Barceloneta, Puerto Rico subject to an existing $75.2 million mortgage loan. The loan matures on May 1, 2014 and bears interest at LIBOR plus 225 basis points with a LIBOR floor of 1.50%.

            In connection with our acquisition of Prime, we assumed existing mortgage loans of approximately $1.2 billion which bear interest at fixed rates ranging from 5.51% to 6.01% and mature at various dates throughout 2016.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

8.    Indebtedness and Derivative Financial Instruments (Continued)

Debt Maturity and Other

            Our scheduled principal repayments on indebtedness as of December 31, 2010 are as follows:

2011

  $ 895,575  

2012

    1,823,095  

2013

    2,306,160  

2014

    1,796,160  

2015

    1,680,043  

Thereafter

    8,967,699  
       

Total principal maturities

    17,468,732  

Net unamortized debt premium and other

    5,028  
       

Total mortgages and other indebtedness

  $ 17,473,760  
       

            Our cash paid for interest in each period, net of any amounts capitalized, was as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Cash paid for interest

  $ 1,015,989   $ 994,688   $ 1,001,718  

Derivative Financial Instruments

            Our exposure to market risk due to changes in interest rates primarily relates to our long-term debt obligations. We manage exposure to interest rate market risk through our risk management strategy by a combination of interest rate protection agreements to effectively fix or cap a portion of variable rate debt. We are also exposed to foreign currency risk on financings of certain foreign operations. Our intent is to offset gains and losses that occur on the underlying exposures, with gains and losses on the derivative contracts hedging these exposures. We do not enter into either interest rate protection or foreign currency rate protection agreements for speculative purposes.

            We may enter into treasury lock agreements as part of an anticipated debt issuance. If the anticipated transaction does not occur, the cost is charged to consolidated net income. Upon completion of the debt issuance, the cost of these instruments is recorded as part of accumulated other comprehensive income and is amortized to interest expense over the life of the debt agreement.

            The fair value of our interest rate swap agreements is included within other liabilities and was $19.5 million and $13.0 million at December 31, 2010 and 2009, respectively. At December 31, 2009, we also had interest rate swaps with a fair value of $0.3 million within deferred costs and other assets. The interest rate cap agreements were of nominal net value at December 31, 2010 and 2009. In addition, the unamortized balance of our treasury locks recorded in accumulated other comprehensive income (loss) was $6.5 million as of December 31, 2010. The net deficit from terminated swap agreements is also recorded in accumulated other comprehensive income (loss) and the unamortized balance was $1.3 million as of December 31, 2010. As of December 31, 2010, our outstanding LIBOR based derivative contracts consisted of:

            Within the next year, we expect to reclassify to earnings approximately $19.8 million of losses from the current balance held in accumulated other comprehensive income (loss). The amount of ineffectiveness relating to cash flow hedges recognized in income during the periods presented was not material.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

8.    Indebtedness and Derivative Financial Instruments (Continued)

            Our joint ventures may also enter into interest rate swaps or caps, which are recorded at fair value on the joint venture balance sheets. Included in our accumulated other comprehensive income (loss) as of December 31, 2010 and 2009 is our share of the joint ventures' accumulated derivative losses of $20.9 million and $30.1 million, respectively.

Fair Value of Financial Instruments

            The carrying value of our variable-rate mortgages and other loans approximates their fair values. We estimate the fair values of consolidated fixed-rate mortgages using cash flows discounted at current borrowing rates and other indebtedness using cash flows discounted at current market rates. We estimate the fair values of consolidated fixed-rate unsecured notes using quoted market prices, or, if no quoted market prices are available, we use quoted market prices for securities with similar terms and maturities. The carrying value of our consolidated fixed-rate mortgages and other indebtedness, excluding those with an associated fixed to floating swap, was $14.8 billion and $16.1 billion as of December 31, 2010 and 2009, respectively. The fair values of financial instruments and our related discount rate assumptions used in the estimation of fair value for our consolidated fixed-rate mortgages and other indebtedness as of December 31 is summarized as follows:

 
  2010   2009  

Fair value of fixed-rate mortgages and other indebtedness

  $ 16,087   $ 16,580  

Weighted average discount rates assumed in calculation of fair value for fixed-rate mortgages

    4.46%     6.11%  

9.    Rentals under Operating Leases

            Future minimum rentals to be received under noncancelable tenant operating leases for each of the next five years and thereafter, excluding tenant reimbursements of operating expenses and percentage rent based on tenant sales volume as of December 31, 2010 are as follows:

2011

  $ 2,140,123  

2012

    1,944,020  

2013

    1,709,738  

2014

    1,501,966  

2015

    1,252,753  

Thereafter

    3,369,238  
       

  $ 11,917,838  
       

            Approximately 0.6% of future minimum rents to be received are attributable to leases with an affiliate of one of our limited partners.

10.    Partners' Equity

Temporary Equity

            We classify as temporary equity those securities for which there is the possibility that we could be required to redeem the security for cash, irrespective of the probability of such a possibility. As a result, we classify one series of

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

10.    Partners' Equity (Continued)


preferred units in temporary equity. The carrying values for those securities classified in temporary equity are discussed below and summarized as follows as of December 31:

 
  2010   2009  

7.5% Cumulative Redeemable Preferred Units, 260,000 units authorized, 255,373 issued and outstanding

  $ 25,537   $ 25,537  

6% Series I Convertible Perpetual Preferred Units, 19,000,000 units authorized, 0 and 9,108,635 issued and outstanding, respectively

        455,432  
           

Total carrying value of preferred units

    25,537     480,969  

Noncontrolling redeemable interests in properties

    59,932     49,404  
           

Total preferred units, at liquidation value, and noncontrolling redeemable interests in properties

  $ 85,469   $ 530,373  
           

            Series I 6% Convertible Perpetual Preferred Units.    On October 14, 2004, we issued 18,015,506 Series I 6% convertible perpetual preferred units as part of our acquisition of the Chelsea Property Group, or Chelsea.

            Holders of the Series I preferred units had the right to convert their Series I preferred units into units or exchange the preferred units for shares of Simon Property's Series I 6% Convertible Perpetual Preferred Stock from March 31, 2010 until the date the Series I preferred units were redeemed. The conversion right resulted from the closing sale price of Simon Property's common stock exceeding the applicable trigger price per share for a period of 20 trading days in the last 30 trading days of the prior quarter. Each Series I preferred unit was convertible into units at a conversion ratio of .847495.

            On April 16, 2010, we redeemed all of the outstanding Series I preferred units. The redemption price was equal to the liquidation value per unit plus accumulated and unpaid distributions through the redemption date or $50.4917 per unit.

            Through the redemption date, we issued 6,670,589 units as a result of the conversion of 7,871,276 Series I preferred units. In addition, we issued 862,292 units to limited partners as a result of the conversion of 1,017,480 Series I preferred units at a conversion ratio of .847495.

            7.5% Cumulative Redeemable Preferred Units    We issued this series of preferred units in connection with the purchase of an additional interest in a joint venture. The preferred units accrue cumulative quarterly distributions at a rate of $7.50 annually. We may redeem the preferred units on or after November 10, 2013, unless there is the occurrence of certain tax triggering events such as death of the initial holder, or the transfer of any units to any person or entity other than the persons or entities entitled to the benefits of the original holder. The redemption price is the liquidation value ($100.00 per preferred unit) plus accrued and unpaid distributions, payable either in cash or fully registered shares of common stock of Simon Property. In the event of the death of a holder of the preferred units, the occurrence of certain tax triggering events applicable to the holder, or on or after November 10, 2006, the holder may require us to redeem the preferred units at the same redemption price payable at our option in either cash or fully registered shares of common stock of Simon Property.

Permanent Equity

            Series J 83/8% Cumulative Redeemable Preferred Units.    We issued this series of preferred units in 2004 to replace a series of Chelsea preferred units. Distributions accrue quarterly at an annual rate of 83/8% per unit. We can redeem this series, in whole or in part, on and after October 15, 2027 at a redemption price of $50.00 per unit, plus accumulated and unpaid distributions. These preferred units were issued at a premium of $7.5 million as of the date of our acquisition of Chelsea. The carrying value was $45,375 and $45,704 as of December 31, 2010 and 2009, respectively, including unamortized premiums of $5,528 and $5,856 in 2010 and 2009, respectively. There are 1,000,000 preferred units authorized and 796,948 issued and outstanding.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

10.    Partners' Equity (Continued)

            The following authorized series of preferred units had been outstanding in years prior to 2009, but there were no preferred units of such series outstanding at the end of 2010 and 2009: Series B 6.5% Convertible Preferred Units (5,000,000 units); Series C 7.00% Cumulative Convertible Preferred Units (2,700,000 units); Series E 8.00% Cumulative Redeemable Preferred Units (1,000,000 units); Series F 8.75% Cumulative Redeemable Preferred Units (8,000,000 units); Series G 7.89% Cumulative Step-Up Premium Rate Convertible Preferred Units (3,000,000 units); Series H Variable Rate Preferred Units (4,530,000 units); Series K Variable Rate Redeemable Preferred Units (8,000,000 units); and Series L Variable Rate Redeemable Preferred Units (6,000,000 units).

            In 2010, 47 limited partners exchanged 247,640 units for an equal number of shares of common stock of Simon Property. We issued an equal number of units to Simon Property, increasing its ownership interest in us.

            We issued 178,683 units to Simon Property related to employee and director stock options exercised during 2010. We used the net proceeds from the option exercises of approximately $4.9 million for general working capital purposes.

            We issued 6,670,589 units as a result of the conversion of 7,871,276 Series I preferred units as discussed above in "Temporary Equity".

            On May 13, 2010, we issued 77,798 units to the owners of Prime in connection with the acquisition of an outlet center located in Barceloneta, Puerto Rico.

            On August 30, 2010, we issued 1,720,671 units to the owners of Prime in connection with the acquisition of 20 outlet centers as discussed in Note 4.

Other Equity Activity

            Notes Receivable from Former CPI Stockholders.    Notes receivable of $16.8 million from stockholders of an entity we acquired in 1998 are reflected as a deduction from capital in excess of par value in the consolidated statements of equity in the accompanying financial statements. The notes do not bear interest and become due at the time the underlying shares are sold.

            The Simon Property Group 1998 Stock Incentive Plan.    We, along with Simon Property, have a stock incentive plan, or the 1998 plan, which provides for the grant of awards with respect to the equity of Simon Property during a ten-year period, in the form of options to purchase shares of Simon Property common stock, or Options, stock appreciation rights, or SARs, restricted stock grants and performance unit awards, collectively, Awards. Options may be granted which are qualified as "incentive stock options" within the meaning of Section 422 of the Code and Options which are not so qualified. An aggregate of 11,300,000 shares of common stock have been reserved for issuance under the 1998 plan. Additionally, the partnership agreement requires Simon Property to sell shares to us, at fair value, sufficient to satisfy the exercising of any stock options, and for Simon Property to purchase units for cash in an amount equal to the fair market value of such shares issued on the exercise of stock options. Annual stock incentive programs were approved each year from 2001 until 2009 when no program was established.

            Administration.    The 1998 plan is administered by the Simon Property's Compensation Committee of the Board of Directors. The committee determines which eligible individuals may participate and the type, extent and terms of the awards to be granted to them. In addition, the committee interprets the 1998 plan and makes all other determinations deemed advisable for its administration. Options granted to employees become exercisable over the period determined by the committee. The exercise price of an employee option may not be less than the fair market value of the shares on the date of grant. Employee options generally vest over a three-year period and expire ten years from the date of grant. Since 2001, Simon Property have not granted any options to employees, except for a series of reload options we assumed as part of a prior business combination.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

10.    Partners' Equity (Continued)

            Automatic Awards For Eligible Directors.    Directors of Simon Property who are not employees or employees of affiliates of Simon Property, or Eligible Directors, receive automatic awards under the 1998 plan. Until 2003, these awards took the form of stock options. Since then, the awards have been shares of restricted stock of Simon Property.

            Each eligible director receives on the first day of the first calendar month following his or her initial election an award of restricted stock with a value of $82,500 (pro-rated for partial years of service). Thereafter, as of the date of each annual meeting of stockholders, eligible directors who are re-elected receive an award of restricted stock having a value of $82,500. In addition, eligible directors who serve as chairpersons of the standing committees (excluding the Executive Committee) receive an additional annual award of restricted stock having a value of $10,000 (in the case of the Audit Committee) or $7,500 (in the case of all other standing committees). The Lead Director also receives an annual restricted stock award having a value of $12,500. The restricted stock vests in full after one year.

            Once vested, the delivery of the shares of restricted stock (including reinvested dividends) is deferred under our Director Deferred Compensation Plan until the director retires, dies or becomes disabled or otherwise no longer serves as a director. The directors may vote and are entitled to receive dividends on the underlying shares; however, any dividends on the shares of restricted stock must be reinvested in shares of common stock and held in the deferred compensation plan until the shares of restricted stock are delivered to the former director. In addition to automatic awards, eligible directors may be granted discretionary awards under the 1998 plan.

            On March 16, 2010, the Compensation Committee of the Board approved a Long-Term Incentive Performance Program, or LTIP Program, for certain of our senior executive officers. Awards under the LTIP Program take the form of LTIP Units, a form of limited partnership interest issued by us. During the performance period, participants are entitled to receive on the LTIP Units awarded to them distributions equal to 10% of the regular quarterly distributions paid on a unit. As a result, we account for these LTIP awards as participating securities under the two-class method of computing earnings per unit. Awarded LTIP Units will be considered earned, in whole or in part, depending upon the extent to which the applicable TSR benchmarks, as defined, are achieved during the performance period and, once earned, will become the equivalent of units after a two year service-based vesting period, beginning after the end of the performance period. Awarded LTIP Units not earned are forfeited.

            The Compensation Committee awarded LTIP Units under three LTIP Programs having one, two and three year performance periods, which end on December 31, 2010, 2011 and 2012, respectively. We refer to these three programs as the one, two and three year 2010 LTIP Programs, or the 2010 LTIP Programs. After the end of each performance period, any earned LTIP Units will then be subject to service-based vesting over a period of two years. One-half of the earned LTIP Units will vest on January 1 of each of the second and third years following the end of the applicable performance period, subject to the participant maintaining employment with us through those dates.

            The awards made pursuant to the 2010 LTIP Programs have an aggregate grant date fair value, adjusted for estimated forfeitures, of $7.2 million for the one-year program, $14.8 million for the two-year program and $23.0 million for the three-year program. Grant date fair value was estimated based upon the results of a Monte Carlo model, and the resulting expense will be recorded regardless of whether the TSR benchmarks are achieved. The grant date fair value is being amortized into expense over the period from the grant date to the date at which the awards, if any, become vested. During the twelve months ended December 31, 2010, we recognized $12.5 million of compensation expense under the LTIP Programs.

            Restricted Stock.    The 1998 plan also provides for shares of restricted common stock of Simon Property to be granted to certain employees at no cost to those employees, subject to achievement of certain financial and return-based performance measures established by the committee related to the most recent year's performance. Once granted, the shares of restricted stock then vest annually over a four-year period (25% each year) beginning on January 1 of each year. The cost of restricted stock grants, which is based upon the stock's fair market value on the grant date, is charged to earnings ratably over the vesting period. Through December 31, 2010 a total of 5,109,362

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

10.    Partners' Equity (Continued)


shares of restricted stock, net of forfeitures, have been awarded under the plan. Information regarding restricted stock awards is summarized in the following table for each of the years presented:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Restricted stock shares awarded during the year, net of forfeitures

    116,726     254,227     276,872  

Weighted average fair value of shares granted during the year

  $ 85.17   $ 29.44   $ 85.77  

Amortization expense

  $ 16,839   $ 22,870   $ 28,640  

            The weighted average life of our outstanding options as of December 31, 2010 is 0.8 years. Information relating to Director Options and Employee Options from December 31, 2007 through December 31, 2010 is as follows:

 
  Options   Weighted Average
Exercise Price
Per Share
 

Shares under option at December 31, 2007

    1,006,738   $ 33.48  
           

Granted

         

Exercised, none were forfeited during the period

    (282,106 )   41.96  
           

Shares under option at December 31, 2008

    724,632   $ 30.18  
           

Granted

         

Exercised

    (181,850 )   25.52  

Forfeited

    (37,100 )   70.73  
           

Shares under option at December 31, 2009

    505,682   $ 28.88  
           

Granted

         

Exercised, none were forfeited during the period

    (178,683 )   23.03  
           

Shares under option at December 31, 2010

    326,999   $ 29.75  
           

 

 
  Outstanding and Exercisable  
Employee Options:
   
  Weighted
Average Remaining
Contractual
Life in Years
   
 
Range of Exercise Prices
  Options   Weighted Average
Exercise Price
Per Share
 

$23.41 - $30.38

    266,550     0.23   $ 25.54  

$30.39 - $46.97

    34,749     3.09     46.97  

$46.98 - $50.17

    25,700     3.17     50.17  
                 
 

Total

    326,999         $ 29.75  
                 

            No stock options were granted to any non-employee director and there were no stock options previously awarded to non-employee directors that were outstanding from December 31, 2007 through December 31, 2010.

            We also maintain a tax-qualified retirement 401(k) savings plan and offer no other postretirement or post employment benefits to our employees.

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

10.    Partners' Equity (Continued)

Exchange Rights

            Limited partners have the right to exchange all or any portion of their units for shares of Simon Property common stock on a one-for-one basis or cash, as determined by Simon Property in its sole discretion. If Simon Property selects cash, Simon Property cannot cause us to redeem the exchanged units for cash without contributing cash to us as partners' equity sufficient to effect the redemption. If sufficient cash is not contributed, Simon Property will be deemed to have elected to exchange the units for shares of Simon Property common stock. The amount of cash to be paid if the exchange right is exercised and the cash option is selected will be based on the trading price of Simon Property's common stock at that time. The number of shares of Simon Property's common stock issued will be the same as the number of units exchanged.

11.    Commitments and Contingencies

Litigation

            We are involved from time-to-time in various legal proceedings that arise in the ordinary course of our business, including, but not limited to commercial disputes, environmental matters, and litigation in connection with transactions including acquisitions and divestitures. We believe that such litigation, claims and administrative proceedings will not have a material adverse impact on our financial position or our results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated.

Lease Commitments

            As of December 31, 2010, a total of 31 of the consolidated properties are subject to ground leases. The termination dates of these ground leases range from 2012 to 2090. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental plus a percentage rent component based upon the revenues or total sales of the property. Some of these leases also include escalation clauses and renewal options. We incurred ground lease expense included in other expense as follows:

 
  For the Year Ended
December 31,
 
 
  2010   2009   2008  

Ground lease expense

  $ 36,750   $ 32,086   $ 30,681  

            Future minimum lease payments due under these ground leases for years ending December 31, excluding applicable extension options, are as follows:

2011

  $ 25,717  

2012

    25,923  

2013

    26,264  

2014

    26,248  

2015

    26,966  

Thereafter

    940,599  
       

  $ 1,071,717  
       

Insurance

            We maintain insurance coverage with third party carriers who provide a portion of the coverage for specific layers of potential losses including commercial general liability, fire, flood, extended coverage and rental loss insurance on all of our properties in the United States. The initial portion of coverage not provided by third party carriers is

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(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

11.    Commitments and Contingencies (Continued)


either insured through our wholly-owned captive insurance companies, Rosewood Indemnity, Ltd. and Bridgewood Insurance Company, Ltd., and other financial arrangements controlled by us. The third party carrier has, in turn, agreed to provide evidence of coverage for this layer of losses under the terms and conditions of the carrier's policy. A similar policy written through our captive insurance entities also provides initial coverage for property insurance and certain windstorm risks at the properties located in coastal windstorm locations.

            We currently maintain insurance coverage against acts of terrorism on all of our properties in the United States on an "all risk" basis in the amount of up to $1 billion. The current federal laws which provide this coverage are expected to operate through 2014. Despite the existence of this insurance coverage, any threatened or actual terrorist attacks where we operate could adversely affect our property values, revenues, consumer traffic and tenant sales.

Guarantees of Indebtedness

            Joint venture debt is the liability of the joint venture and is typically secured by the joint venture property, which is non-recourse to us. As of December 31, 2010, we had loan guarantees of $60.7 million underlying joint venture related mortgage or other indebtedness. Mortgages which are guaranteed by us are secured by the property of the joint venture and that property could be sold in order to satisfy the outstanding obligation.

Concentration of Credit Risk

            We are subject to risks incidental to the ownership and operation of commercial real estate. These risks include, among others, the risks normally associated with changes in the general economic climate, trends in the retail industry, creditworthiness of tenants, competition for tenants and customers, changes in tax laws, interest rate and foreign currency levels, the availability of financing, and potential liability under environmental and other laws. Our regional malls, Premium Outlets, The Mills, and community/lifestyle centers rely heavily upon anchor tenants like most retail properties. Four retailers occupied 526 of the approximately 1,320 anchor stores in the properties as of December 31, 2010. An affiliate of one of these retailers is one of our limited partners. Further, all material operations are within the United States and no customer or tenant comprises more than 10% of consolidated revenues.

Limited Life Partnerships

            We are the controlling partner in several consolidated partnerships that have a limited life. We estimated the settlement values of these noncontrolling interests as of December 31, 2010 and 2009 as approximately $135 million and $115 million, respectively. The settlement values are based on the estimated fair values upon a hypothetical liquidation of the partnership interests and estimated yield maintenance or prepayment penalties associated with the payment to settle any underlying secured mortgage debt.

12.    Related Party Transactions

            Our management company provides management, insurance, and other services to Melvin Simon & Associates, Inc., a related party, and other non-owned properties. Amounts for services provided by our management company and its affiliates to our unconsolidated joint ventures and other related parties were as follows:

 
  For the Year Ended December 31,  
 
  2010   2009   2008  

Amounts charged to unconsolidated joint ventures

  $ 118,905   $ 120,866   $ 125,663  

Amounts charged to properties owned by related parties

    4,308     4,522     4,980  

            During 2010, 2009 and 2008, we recorded interest income of $9.9 million, $9.3 million and $15.3 million respectively, and financing fee income of $0.9 million, $3.7 million and $3.1 million, respectively, net of inter-entity

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Notes to Consolidated Financial Statements (Continued)

(Dollars in thousands, except unit and per unit amounts and where indicated as in millions or billions)

12.    Related Party Transactions (Continued)


eliminations, related to the loans that we have provided to Mills and SPG-FCM and lending financing services to those entities and the properties in which they hold an ownership interest.

13.    Quarterly Financial Data (Unaudited)

            Quarterly 2010 and 2009 data is summarized in the table below. Quarterly amounts may not equal annual amounts due to rounding.

 
  First Quarter   Second Quarter   Third Quarter   Fourth Quarter  

2010

                         

Total revenue

  $ 925,071   $ 933,566   $ 979,275   $ 1,119,718  

Operating income

    426,916     415,467     397,794     504,062  

Consolidated income from continuing operations

    20,754     185,152     280,532     267,076  

Net income available to unitholders

    11,263     183,117     277,101     262,464  

Income from continuing operations per unit — Basic

  $ 0.03   $ 0.52   $ 0.79   $ 0.74  

Net income per unit — Basic

  $ 0.03   $ 0.52   $ 0.79   $ 0.74  

Income from continuing operations per unit — Diluted

  $ 0.03   $ 0.52   $ 0.79   $ 0.74  

Net income per unit — Diluted

  $ 0.03   $ 0.52   $ 0.79   $ 0.74  

Weighted average units outstanding

    343,822,515     350,774,430     352,003,179     353,179,310  

Diluted weighted average units outstanding

    344,136,257     351,064,361     352,261,889     353,408,976  

2009

                         

Total revenue

  $ 918,492   $ 903,612   $ 924,932   $ 1,028,180  

Operating income

    364,216     224,698     392,177     425,601  

Consolidated income (loss) from continuing operations

    146,248     (14,108 )   139,189     115,933  

Net income (loss) available to unitholders

    132,502     (27,114 )   127,827     110,357  

Income (loss) from continuing operations per unit — Basic

  $ 0.45   ($ 0.08 ) $ 0.38   $ 0.33  

Net income (loss) per unit — Basic

  $ 0.45   ($ 0.08 ) $ 0.38   $ 0.33  

Income (loss) from continuing operations per unit — Diluted

  $ 0.45   ($ 0.08 ) $ 0.38   $ 0.32  

Net income (loss) per unit — Diluted

  $ 0.45   ($ 0.08 ) $ 0.38   $ 0.32  

Weighted average units outstanding

    292,771,470     325,115,460     338,766,765     341,622,416  

Diluted weighted average units outstanding

    292,991,380     325,115,460     339,953,846     342,377,675  

101


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SIGNATURES

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

  SIMON PROPERTY GROUP, L.P.

 

By

 

    /s/ DAVID SIMON

David Simon
Chairman of the Board of Directors
and Chief Executive Officer of
Simon Property Group, Inc., General Partner

March 11, 2011

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

Signature   Capacity   Date

 

 

 

 

 
    /s/ DAVID SIMON

David Simon
  Chairman of the Board of Directors
and Chief Executive Officer of
Simon Property Group, Inc., General Partner
(Principal Executive Officer)
  March 11, 2011

    /s/ HERBERT SIMON

Herbert Simon

 

Chairman Emeritus and Director

 

March 11, 2011

    /s/ RICHARD S. SOKOLOV

Richard S. Sokolov

 

President, Chief Operating Officer of
Simon Property Group, Inc., General Partner
and Director

 

March 11, 2011

    /s/ MELVYN E. BERGSTEIN

Melvyn E. Bergstein

 

Director

 

March 11, 2011

    /s/ LARRY C. GLASSCOCK

Larry C. Glasscock

 

Director

 

March 11, 2011

    /s/ LINDA WALKER BYNOE

Linda Walker Bynoe

 

Director

 

March 11, 2011

    /s/ REUBEN S. LEIBOWITZ

Reuben S. Leibowitz

 

Director

 

March 11, 2011

102


Table of Contents

Signature   Capacity   Date

 

 

 

 

 
    /s/ J. ALBERT SMITH, JR.

J. Albert Smith, Jr.
  Director   March 11, 2011

    /s/ KAREN N. HORN

Karen N. Horn

 

Director

 

March 11, 2011

    /s/ ALLAN HUBBARD

Allan Hubbard

 

Director

 

March 11, 2011

    /s/ DANIEL C. SMITH

Daniel C. Smith

 

Director

 

March 11, 2011

    /s/ STEPHEN E. STERRETT

Stephen E. Sterrett

 

Executive Vice President and Chief Financial Officer of Simon Property Group, Inc., General Partner (Principal Financial Officer)

 

March 11, 2011

    /s/ STEVEN K. BROADWATER

Steven K. Broadwater

 

Senior Vice President and Chief Accounting Officer of Simon Property Group, Inc., General Partner (Principal Accounting Officer)

 

March 11, 2011

103


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (3)   Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Regional Malls

                                                         

Anderson Mall, Anderson, SC

  $ 26,754   $ 1,712   $ 15,227   $ 851   $ 20,334   $ 2,563   $ 35,561   $ 38,124   $ 13,687   1972

Arsenal Mall, Watertown, MA

    846     14,714     47,680         6,430     14,714     54,110     68,824     17,411   1999 (4)

Bangor Mall, Bangor, ME

    80,000     5,478     59,740         9,404     5,478     69,144     74,622     21,729   2004 (5)

Barton Creek Square, Austin, TX

        2,903     20,929     7,983     61,142     10,886     82,071     92,957     43,312   1981

Battlefield Mall, Springfield, MO

    90,885     3,919     27,231     3,000     62,518     6,919     89,749     96,668     52,350   1970

Bay Park Square, Green Bay, WI

        6,358     25,623     4,133     23,627     10,491     49,250     59,741     21,470   1980

Bowie Town Center, Bowie, MD

        2,710     65,044     235     5,789     2,945     70,833     73,778     25,565   2001

Boynton Beach Mall, Boynton Beach, FL

        22,240     78,804     4,666     25,170     26,906     103,974     130,880     39,730   1985

Brea Mall, Brea, CA

        39,500     209,202         25,682     39,500     234,884     274,384     83,316   1998 (4)

Broadway Square, Tyler, TX

        11,306     32,431         22,257     11,306     54,688     65,994     23,516   1994 (4)

Brunswick Square, East Brunswick, NJ

    80,965     8,436     55,838         27,967     8,436     83,805     92,241     37,536   1973

Burlington Mall, Burlington, MA

        46,600     303,618     19,600     90,699     66,200     394,317     460,517     122,167   1998 (4)

Castleton Square, Indianapolis, IN

        26,250     98,287     7,434     70,451     33,684     168,738     202,422     63,697   1972

Century III Mall, West Mifflin, PA

    78,973     17,380     102,364     10     7,083     17,390     109,447     126,837     72,123   1979

Charlottesville Fashion Square, Charlottesville, VA

            54,738         13,939         68,677     68,677     27,214   1997 (4)

Chautauqua Mall, Lakewood, NY

        3,257     9,641         16,456     3,257     26,097     29,354     12,829   1971

Chesapeake Square, Chesapeake, VA

    68,796     11,534     70,461         11,517     11,534     81,978     93,512     42,220   1989

Cielo Vista Mall, El Paso, TX

        1,005     15,262     608     44,663     1,613     59,925     61,538     33,617   1974

College Mall, Bloomington, IN

        1,003     16,245     720     43,377     1,723     59,622     61,345     28,994   1965

Columbia Center, Kennewick, WA

        17,441     66,580         21,868     17,441     88,448     105,889     34,170   1987

Copley Place, Boston, MA

            378,045         88,575         466,620     466,620     118,457   2002 (4)

Coral Square, Coral Springs, FL

        13,556     93,630         14,493     13,556     108,123     121,679     54,666   1984

Cordova Mall, Pensacola, FL

        18,626     73,091     7,321     44,759     25,947     117,850     143,797     36,937   1998 (4)

Cottonwood Mall, Albuquerque, NM

        10,122     69,958         5,082     10,122     75,040     85,162     35,198   1996

Crystal River Mall, Crystal River, FL

    14,441     5,393     20,241         4,850     5,393     25,091     30,484     11,203   1990

DeSoto Square, Bradenton, FL

    63,156     9,011     52,675         7,114     9,011     59,789     68,800     24,970   1973

Domain, The, Austin, TX (6)

        45,152     197,010         137,617     45,152     334,627     379,779     39,371   2005

Edison Mall, Fort Myers, FL

        11,529     107,350         28,277     11,529     135,627     147,156     49,499   1997 (4)

Fashion Mall at Keystone, The, Indianapolis, IN

            120,579         47,507         168,086     168,086     61,436   1997 (4)

Firewheel Town Center, Garland, TX

        8,636     82,716         24,793     8,636     107,509     116,145     25,015   2004

Forest Mall, Fond Du Lac, WI

    15,883     721     4,491         8,819     721     13,310     14,031     8,209   1973

Forum Shops at Caesars, The, Las Vegas, NV

            276,567         210,699         487,266     487,266     141,772   1992

104


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Great Lakes Mall, Mentor, OH

        12,302     100,362         10,478     12,302     110,840     123,142     47,300   1961

Greenwood Park Mall, Greenwood, IN

    79,097     2,423     23,445     5,253     115,289     7,676     138,734     146,410     53,749   1979

Gulf View Square, Port Richey, FL

        13,690     39,991     2,023     18,348     15,713     58,339     74,052     24,499   1980

Gwinnett Place, Duluth, GA

    115,000     17,051     141,191         4,908     17,051     146,099     163,150     50,674   1998 (5)

Haywood Mall, Greenville, SC

        11,585     133,893     6     20,669     11,591     154,562     166,153     67,804   1998 (4)

Independence Center, Independence, MO

    200,000     5,042     45,798         31,354     5,042     77,152     82,194     34,005   1994 (4)

Ingram Park Mall, San Antonio, TX

    74,493     733     17,163     73     21,444     806     38,607     39,413     22,437   1979

Irving Mall, Irving, TX

        6,737     17,479     2,533     40,945     9,270     58,424     67,694     35,644   1971

Jefferson Valley Mall, Yorktown Heights, NY

        4,868     30,304         26,422     4,868     56,726     61,594     30,474   1983

Knoxville Center, Knoxville, TN

    56,410     5,006     21,617     3,712     34,423     8,718     56,040     64,758     30,140   1984

La Plaza Mall, McAllen, TX

        1,375     9,828     6,569     39,449     7,944     49,277     57,221     23,938   1976

Laguna Hills Mall, Laguna Hills, CA

        27,928     55,446         13,916     27,928     69,362     97,290     26,114   1997 (4)

Lakeline Mall, Austin, TX

        10,088     81,568     14     16,119     10,102     97,687     107,789     40,371   1995

Lenox Square, Atlanta, GA

        38,058     492,411         64,371     38,058     556,782     594,840     190,438   1998 (4)

Lima Mall, Lima, OH

        7,659     35,338         11,638     7,659     46,976     54,635     21,598   1965

Lincolnwood Town Center, Lincolnwood, IL

        7,907     63,480     28     7,325     7,935     70,805     78,740     39,335   1990

Livingston Mall, Livingston, NJ

        22,214     105,250         37,666     22,214     142,916     165,130     45,636   1998 (4)

Longview Mall, Longview, TX

    29,726     259     3,567     124     8,112     383     11,679     12,062     6,282   1978

Mall at Chestnut Hill, The, Chestnut Hill, MA

        449     24,615             449     24,615     25,064     701   2002 (5)

Mall of Georgia, Mill Creek, GA

        47,492     326,633         4,965     47,492     331,598     379,090     89,654   1999 (5)

Maplewood Mall, Minneapolis, MN

        17,119     80,758         13,177     17,119     93,935     111,054     27,422   2002 (4)

Markland Mall, Kokomo, IN

    21,031         7,568         10,367         17,935     17,935     10,524   1968

McCain Mall, N. Little Rock, AR

            9,515     10,530     11,095     10,530     20,610     31,140     14,879   1973

Melbourne Square, Melbourne, FL

        15,762     55,891     4,160     27,746     19,922     83,637     103,559     31,357   1982

Menlo Park Mall, Edison, NJ

        65,684     223,252         39,840     65,684     263,092     328,776     100,995   1997 (4)

Midland Park Mall, Midland, TX

    30,702     687     9,213         16,722     687     25,935     26,622     14,792   1980

Miller Hill Mall, Duluth, MN

        2,965     18,092         29,506     2,965     47,598     50,563     31,404   1973

Montgomery Mall, Montgomeryville, PA

    86,063     27,105     86,915         26,977     27,105     113,892     140,997     29,056   2004 (5)

Muncie Mall, Muncie, IN

        172     5,776     52     27,415     224     33,191     33,415     18,186   1970

North East Mall, Hurst, TX

        128     12,966     19,010     150,597     19,138     163,563     182,701     72,329   1971

Northfield Square Mall, Bourbonnais, IL

    27,575     362     53,396         1,809     362     55,205     55,567     34,429   2004 (5)

Northgate Mall, Seattle, WA

        24,369     115,992         92,465     24,369     208,457     232,826     66,851   1987

Northlake Mall, Atlanta, GA

    65,075     33,400     98,035         4,146     33,400     102,181     135,581     56,918   1998 (4)

Northwoods Mall, Peoria, IL

        1,185     12,779     2,372     36,610     3,557     49,389     52,946     28,766   1983

Oak Court Mall, Memphis, TN

        15,673     57,304         9,188     15,673     66,492     82,165     27,311   1997 (4)

Ocean County Mall, Toms River, NJ

        20,404     124,945         24,479     20,404     149,424     169,828     51,626   1998 (4)

105


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Orange Park Mall, Orange Park, FL

        12,998     65,121         40,006     12,998     105,127     118,125     44,665   1994 (4)

Orland Square, Orland Park, IL

        35,514     129,906         22,651     35,514     152,557     188,071     60,746   1997 (4)

Oxford Valley Mall, Langhorne, PA

    71,000     24,544     100,287         8,905     24,544     109,192     133,736     53,329   2003 (4)

Paddock Mall, Ocala, FL

        11,198     39,727         16,659     11,198     56,386     67,584     20,655   1980

Penn Square Mall, Oklahoma City, OK

    98,498     2,043     155,958         28,249     2,043     184,207     186,250     68,745   2002 (4)

Pheasant Lane Mall, Nashua, NH

        3,902     155,068     550     18,953     4,452     174,021     178,473     57,549   2004 (5)

Phipps Plaza, Atlanta, GA

        16,725     210,610         26,934     16,725     237,544     254,269     84,988   1998 (4)

Plaza Carolina, Carolina, PR

    185,992     15,493     279,560         21,950     15,493     301,510     317,003     65,576   2004 (4)

Port Charlotte Town Center, Port Charlotte, FL

    48,398     5,471     58,570         15,792     5,471     74,362     79,833     33,357   1989

Prien Lake Mall, Lake Charles, LA

        1,842     2,813     3,091     37,574     4,933     40,387     45,320     20,603   1972

Richmond Town Square, Richmond Heights, OH

    43,124     2,600     12,112         58,662     2,600     70,774     73,374     44,952   1966

River Oaks Center, Calumet City, IL

        30,560     101,224         10,299     30,560     111,523     142,083     42,727   1997 (4)

Rockaway Townsquare, Rockaway, NJ

        44,116     212,257     27     34,740     44,143     246,997     291,140     82,110   1998 (4)

Rolling Oaks Mall, San Antonio, TX

        1,929     38,609         13,239     1,929     51,848     53,777     27,196   1988

Roosevelt Field, Garden City, NY

        163,609     702,008         36,094     163,609     738,102     901,711     257,321   1998 (4)

Ross Park Mall, Pittsburgh, PA

        23,541     90,203         81,368     23,541     171,571     195,112     65,766   1986

Santa Rosa Plaza, Santa Rosa, CA

        10,400     87,864         11,084     10,400     98,948     109,348     35,805   1998 (4)

Shops at Mission Viejo, The, Mission Viejo, CA

        9,139     54,445     7,491     150,426     16,630     204,871     221,501     87,292   1979

South Hills Village, Pittsburgh, PA

        23,445     125,840     2,945     24,469     26,390     150,309     176,699     54,768   1997 (4)

South Shore Plaza, Braintree, MA

        101,200     301,495         147,442     101,200     448,937     550,137     118,145   1998 (4)

Southern Park Mall, Boardman, OH

        16,982     77,767     97     24,244     17,079     102,011     119,090     44,551   1970

SouthPark, Charlotte, NC

    195,764     42,092     188,055     100     165,575     42,192     353,630     395,822     106,810   2002 (4)

St. Charles Towne Center, Waldorf, MD

        7,710     52,934     1,180     28,677     8,890     81,611     90,501     40,070   1990

Stanford Shopping Center, Palo Alto, CA

    240,000         339,537         5,280         344,817     344,817     79,769   2003 (4)

Summit Mall, Akron, OH

    65,000     15,374     51,137         41,529     15,374     92,666     108,040     33,738   1965

Sunland Park Mall, El Paso, TX

    31,856     2,896     28,900         8,475     2,896     37,375     40,271     22,544   1988

Tacoma Mall, Tacoma, WA

    118,001     37,803     125,826         80,839     37,803     206,665     244,468     70,160   1987

Tippecanoe Mall, Lafayette, IN

        2,897     8,439     5,517     44,075     8,414     52,514     60,928     34,491   1973

Town Center at Aurora, Aurora, CO

        9,959     56,832     6     56,929     9,965     113,761     123,726     44,584   1998 (4)

Town Center at Boca Raton, Boca Raton, FL

        64,200     307,317         152,520     64,200     459,837     524,037     153,354   1998 (4)

Town Center at Cobb, Kennesaw, GA

    280,000     32,355     158,225         13,564     32,355     171,789     204,144     57,555   1998 (5)

Towne East Square, Wichita, KS

        8,525     18,479     1,429     39,035     9,954     57,514     67,468     33,506   1975

106


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Towne West Square, Wichita, KS

    48,760     972     21,203     61     12,060     1,033     33,263     34,296     20,104   1980

Treasure Coast Square, Jensen Beach, FL

        11,124     72,990     3,067     34,039     14,191     107,029     121,220     43,301   1987

Tyrone Square, St. Petersburg, FL

        15,638     120,962         27,980     15,638     148,942     164,580     60,922   1972

University Park Mall, Mishawaka, IN

        16,768     112,158     7,000     49,562     23,768     161,720     185,488     98,426   1996 (4)

Upper Valley Mall, Springfield, OH

    47,108     8,421     38,745         10,434     8,421     49,179     57,600     19,768   1979

Valle Vista Mall, Harlingen, TX

    40,000     1,398     17,159     329     20,676     1,727     37,835     39,562     19,546   1983

Virginia Center Commons, Glen Allen, VA

        9,764     50,547     4,149     11,961     13,913     62,508     76,421     21,303   1991

Walt Whitman Mall, Huntington Station, NY

    120,622     51,700     111,258     3,789     42,228     55,489     153,486     208,975     65,360   1998 (4)

Washington Square, Indianapolis, IN

    27,835     6,319     36,495         11,109     6,319     47,604     53,923     41,851   1974

West Ridge Mall, Topeka, KS

    67,568     5,453     34,132     1,168     22,900     6,621     57,032     63,653     26,964   1988

Westminster Mall, Westminster, CA

        43,464     84,709         32,058     43,464     116,767     160,231     40,375   1998 (4)

White Oaks Mall, Springfield, IL

    50,000     3,024     35,692     2,102     38,422     5,126     74,114     79,240     31,776   1977

Wolfchase Galleria, Memphis, TN

    225,000     15,881     128,276         9,482     15,881     137,758     153,639     54,785   2002 (4)

Woodland Hills Mall, Tulsa, OK

    96,047     34,211     187,123         13,645     34,211     200,768     234,979     68,846   2004 (5)

Premium Outlets

                                                         

Albertville Premium Outlets, Albertville, MN

        3,900     97,059         4,139     3,900     101,198     105,098     27,603   2004 (4)

Allen Premium Outlets, Allen, TX

        13,855     43,687     97     16,023     13,952     59,710     73,662     17,726   2004 (4)

Aurora Farms Premium Outlets, Aurora, OH

        2,370     24,326         1,876     2,370     26,202     28,572     14,288   2004 (4)

Birch Run Premium Outlets, Birch Run, MI

    109,113     11,432     78,338             11,432     78,338     89,770     1,476   2010 (4)

Calhoun Premium Outlets, Calhoun, GA

    20,974     1,560     13,800             1,560     13,800     15,360     638   2010 (4)

Camarillo Premium Outlets, Camarillo, CA

        16,670     224,721     482     62,741     17,152     287,462     304,614     56,768   2004 (4)

Carlsbad Premium Outlets, Carlsbad, CA

        12,890     184,990     96     2,274     12,986     187,264     200,250     39,874   2004 (4)

Carolina Premium Outlets, Smithfield, NC

    19,047     3,170     59,863         2,919     3,170     62,782     65,952     19,936   2004 (4)

Chicago Premium Outlets, Aurora, IL

        659     118,005         4,294     659     122,299     122,958     34,690   2004 (4)

Cincinnati Premium Outlets, Monroe, OH

        14,117     71,520         3,199     14,117     74,719     88,836     5,349   2008

Clinton Crossing Premium Outlets, Clinton, CT

        2,060     107,556     1,532     1,793     3,592     109,349     112,941     28,015   2004 (4)

Columbia Gorge Premium Outlets, Troutdale, OR

        7,900     16,492         2,184     7,900     18,676     26,576     7,957   2004 (4)

Desert Hills Premium Outlets, Cabazon, CA

        3,440     338,679         3,832     3,440     342,511     345,951     69,218   2004 (4)

Edinburgh Premium Outlets, Edinburgh, IN

        2,857     47,309         11,980     2,857     59,289     62,146     18,228   2004 (4)

Ellenton Premium Outlets, Ellenton, FL

    107,735     15,396     181,048             15,396     181,048     196,444     3,868   2010 (4)

Folsom Premium Outlets, Folsom, CA

        9,060     50,281         3,372     9,060     53,653     62,713     18,132   2004 (4)

Gaffney Premium Outlets, Gaffney, SC

    38,065     5,162     30,767             5,162     30,767     35,929     727   2010 (4)

Gilroy Premium Outlets, Gilroy, CA

        9,630     194,122         7,538     9,630     201,660     211,290     49,547   2004 (4)

Grove City Premium Outlets, Grove City, PA

    116,314     10,092     128,516             10,092     128,516     138,608     2,823   2010 (4)

Gulfport Premium Outlets, Gulfport, MS

    25,948         29,648                 29,648     29,648     615   2010 (4)

Hagerstown Premium Outlets, Hagerstown, MD

    91,680     3,798     89,724             3,798     89,724     93,522     1,813   2010 (4)

Houston Premium Outlets, Cypress, TX

        20,871     69,350         48,532     20,871     117,882     138,753     11,578   2007

Jackson Premium Outlets, Jackson, NJ

        6,413     104,013     3     3,673     6,416     107,686     114,102     22,999   2004 (4)

Jersey Shore Premium Outlets, Tinton Falls, NJ

        16,141     50,979         74,435     16,141     125,414     141,555     12,876   2007

Johnson Creek Premium Outlets, Johnson Creek, WI

        2,800     39,546         5,523     2,800     45,069     47,869     10,653   2004 (4)

107


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Kittery Premium Outlets, Kittery, ME

    43,556     11,832     94,994         5,859     11,832     100,853     112,685     18,645   2004 (4)

Las Americas Premium Outlets, San Diego, CA

    180,000     45,168     251,878         3,746     45,168     255,624     300,792     25,052   2007 (4)

Las Vegas Outlet Center, Las Vegas, NV

        13,085     160,777         16,826     13,085     177,603     190,688     30,836   2004 (4)

Las Vegas Premium Outlets, Las Vegas, NV

        25,435     134,973     450     60,237     25,885     195,210     221,095     43,591   2004 (4)

Lebanon Premium Outlets, Lebanon, TN

    15,953     1,723     9,890             1,723     9,890     11,613     303   2010 (4)

Lee Premium Outlets, Lee, MA

    52,358     9,464     54,439             9,464     54,439     63,903     1,264   2010 (4)

Leesburg Corner Premium Outlets, Leesburg, VA

        7,190     162,023         3,392     7,190     165,415     172,605     43,945   2004 (4)

Liberty Village Premium Outlets, Flemington, NJ

        5,670     28,904         2,279     5,670     31,183     36,853     12,391   2004 (4)

Lighthouse Place Premium Outlets, Michigan City, IN

    88,623     6,630     94,138         5,517     6,630     99,655     106,285     30,715   2004 (4)

Napa Premium Outlets, Napa, CA

        11,400     45,023         1,669     11,400     46,692     58,092     13,132   2004 (4)

North Bend Premium Outlets, North Bend, WA

        2,143     36,197         2,145     2,143     38,342     40,485     8,182   2004 (4)

North Georgia Premium Outlets, Dawsonville, GA

        4,300     132,325         2,324     4,300     134,649     138,949     34,753   2004 (4)

Orlando Premium Outlets—Vineland Ave., Orlando, FL

        14,040     304,410     15,855     47,169     29,895     351,579     381,474     65,172   2004 (4)

Orlando Premium Outlets—International Dr., Orlando, FL

        35,365     449,563             35,365     449,563     484,928     6,315   2010 (4)

Osage Beach Premium Outlets, Osage Beach, MO

        9,460     85,804         3,484     9,460     89,288     98,748     24,918   2004 (4)

Petaluma Village Premium Outlets, Petaluma, CA

        13,322     14,067         322     13,322     14,389     27,711     7,815   2004 (4)

Philadelphia Premium Outlets, Limerick, PA

    190,000     16,676     105,249         14,227     16,676     119,476     136,152     19,305   2006

Pismo Beach Premium Outlets, Pismo Beach, CA

    33,850     3,837     24,751             3,837     24,751     28,588     736   2010 (4)

Pleasant Prairie Premium Outlets, Pleasant Prairie, WI

    99,351     15,870     126,841             15,870     126,841     142,711     2,117   2010 (4)

Puerto Rico Premium Outlets, Barceloneta, PR

    74,516     20,716     112,948             20,716     112,948     133,664     3,352   2010 (4)

Queenstown Premium Outlets, Queenstown, MD

    66,150     7,005     65,801             7,005     65,801     72,806     1,211   2010 (4)

Rio Grande Valley Premium Outlets, Mercedes, TX

        12,229     41,547         35,104     12,229     76,651     88,880     16,203   2005

Round Rock Premium Outlets, Round Rock, TX

        21,977     82,252         478     21,977     82,730     104,707     20,621   2005

San Marcos Premium Outlets, San Marcos, TX

    147,523     18,482     254,079             18,482     254,079     272,561     3,602   2010 (4)

Seattle Premium Outlets, Seattle, WA

            103,722         16,985         120,707     120,707     26,934   2004 (4)

St. Augustine Premium Outlets, St. Augustine, FL

        6,090     57,670     2     7,356     6,092     65,026     71,118     19,587   2004 (4)

The Crossings Premium Outlets, Tannersville, PA

    50,927     7,720     172,931         10,311     7,720     183,242     190,962     39,629   2004 (4)

Vacaville Premium Outlets, Vacaville, CA

        9,420     84,850         8,183     9,420     93,033     102,453     28,247   2004 (4)

Waikele Premium Outlets, Waipahu, HI

        22,630     77,316         2,335     22,630     79,651     102,281     22,173   2004 (4)

Waterloo Premium Outlets, Waterloo, NY

    72,822     3,230     75,277         6,621     3,230     81,898     85,128     24,337   2004 (4)

108


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Williamsburg Premium Outlets, Williamsburg, VA

    105,916     11,124     219,681             11,124     219,681     230,805     3,414   2010 (4)

Woodbury Common Premium Outlets, Central Valley, NY

        11,110     862,559     1,658     4,580     12,768     867,139     879,907     178,108   2004 (4)

Wrentham Village Premium Outlets, Wrentham, MA

        4,900     282,031         5,057     4,900     287,088     291,988     66,343   2004 (4)

Community/Lifestyle Centers

                                                         

Arboretum at Great Hills, Austin, TX

        7,640     36,774     71     8,582     7,711     45,356     53,067     16,363   1998 (4)

Bloomingdale Court, Bloomingdale, IL

    26,262     8,748     26,184         9,696     8,748     35,880     44,628     18,087   1987

Charles Towne Square, Charleston, SC

            1,768     370     10,636     370     12,404     12,774     7,616   1976

Chesapeake Center, Chesapeake, VA

        5,352     12,279         753     5,352     13,032     18,384     5,340   1989

Countryside Plaza, Countryside, IL

        332     8,507     2,554     9,182     2,886     17,689     20,575     8,518   1977

Dare Centre, Kill Devil Hills, NC

    1,586         5,702         202         5,904     5,904     1,117   2004 (4)

DeKalb Plaza, King of Prussia, PA

    2,815     1,955     3,405         1,139     1,955     4,544     6,499     1,907   2003 (4)

Forest Plaza, Rockford, IL

    18,685     4,132     16,818     453     11,456     4,585     28,274     32,859     10,851   1985

Gateway Shopping Center, Austin, TX

    87,000     24,549     81,437         9,775     24,549     91,212     115,761     24,639   2004 (4)

Great Lakes Plaza, Mentor, OH

        1,028     2,025         3,574     1,028     5,599     6,627     1,946   1976

Greenwood Plus, Greenwood, IN

        1,129     1,792         3,737     1,129     5,529     6,658     3,048   1979

Henderson Square, King of Prussia, PA

    14,100     4,223     15,124         746     4,223     15,870     20,093     3,522   2003 (4)

Highland Lakes Center, Orlando, FL

    14,641     7,138     25,284         1,581     7,138     26,865     34,003     15,578   1991

Ingram Plaza, San Antonio, TX

        421     1,802     4     59     425     1,861     2,286     1,270   1980

Keystone Shoppes, Indianapolis, IN

            4,232         935         5,167     5,167     2,016   1997 (4)

Lake Plaza, Waukegan, IL

        2,487     6,420         1,082     2,487     7,502     9,989     3,855   1986

Lake View Plaza, Orland Park, IL

    15,885     4,702     17,543         13,176     4,702     30,719     35,421     15,274   1986

Lakeline Plaza, Austin, TX

    17,504     5,822     30,875         6,498     5,822     37,373     43,195     15,467   1998

Lima Center, Lima, OH

        1,781     5,151         6,860     1,781     12,011     13,792     5,244   1978

Lincoln Crossing, O'Fallon, IL

        674     2,192         784     674     2,976     3,650     1,358   1990

Lincoln Plaza, King of Prussia, PA

            21,299         3,289         24,588     24,588     10,034   2003 (4)

MacGregor Village, Cary, NC

    6,378     502     8,897         249     502     9,146     9,648     1,717   2004 (4)

Mall of Georgia Crossing, Mill Creek, GA

        9,506     32,892         311     9,506     33,203     42,709     12,982   2004 (5)

Markland Plaza, Kokomo, IN

        206     738         6,285     206     7,023     7,229     3,274   1974

Martinsville Plaza, Martinsville, VA

            584         408         992     992     768   1967

Matteson Plaza, Matteson, IL

        1,771     9,737         2,750     1,771     12,487     14,258     6,818   1988

Muncie Plaza, Muncie, IN

    7,277     267     10,509     87     1,583     354     12,092     12,446     4,763   1998

New Castle Plaza, New Castle, IN

        128     1,621         1,457     128     3,078     3,206     1,659   1966

North Ridge Plaza, Joliet, IL

        2,831     7,699         4,464     2,831     12,163     14,994     5,370   1985

North Ridge Shopping Center, Raleigh, NC

    7,790     385     12,838         610     385     13,448     13,833     2,634   2004 (4)

Northwood Plaza, Fort Wayne, IN

        148     1,414         1,682     148     3,096     3,244     1,991   1974

Palms Crossing, McAllen, TX (6)

        13,496     45,925         9,074     13,496     54,999     68,495     8,082   2006

Pier Park, Panama City Beach, FL

        23,586     73,158         41,394     23,586     114,552     138,138     13,515   2006

Regency Plaza, St. Charles, MO

    3,893     616     4,963         583     616     5,546     6,162     2,650   1988

Richardson Square, Richardson, TX

        6,285         990     15,323     7,275     15,323     22,598     1,467   1977

Rockaway Commons, Rockaway, NJ

        5,149     26,435         7,713     5,149     34,148     39,297     9,132   1998 (4)

Rockaway Town Plaza, Rockaway, NJ

            18,698     2,225     1,961     2,225     20,659     22,884     3,848   2004

109


Table of Contents

SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2010
(Dollars in thousands)

 
   
  Initial Cost (Note 3)   Cost Capitalized
Subsequent to
Acquisition (Note 3)
  Gross Amounts At Which
Carried At Close of Period
   
   
Name, Location
  Encumbrances   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)
  Date of
Construction

Shops at Arbor Walk, The, Austin, TX (6)

        930     42,546         4,295     930     46,841     47,771     7,189   2005

Shops at North East Mall, The, Hurst, TX

        12,541     28,177     402     4,065     12,943     32,242     45,185     15,380   1999

St. Charles Towne Plaza, Waldorf, MD

    25,303     8,377     18,993         3,354     8,377     22,347     30,724     11,163   1987

Teal Plaza, Lafayette, IN

        99     878         1,769     99     2,647     2,746     1,604   1962

Terrace at the Florida Mall, Orlando, FL

        2,150     7,623         5,151     2,150     12,774     14,924     5,340   1989

Tippecanoe Plaza, Lafayette, IN

            745     234     5,169     234     5,914     6,148     3,330   1974

University Center, Mishawaka, IN

        3,071     7,413         1,754     3,071     9,167     12,238     7,095   1980

Washington Plaza, Indianapolis, IN

        941     1,697         447     941     2,144     3,085     2,604   1976

Waterford Lakes Town Center, Orlando, FL

        8,679     72,836         14,052     8,679     86,888     95,567     37,570   1999

West Ridge Plaza, Topeka, KS

    4,866     1,376     4,560         1,926     1,376     6,486     7,862     3,253   1988

White Oaks Plaza, Springfield, IL

    14,554     3,169     14,267         3,029     3,169     17,296     20,465     7,637   1986

Wolf Ranch Town Center, Georgetown, TX

        21,785     51,547         7,024     21,785     58,571     80,356     12,211   2004

Other Properties

                                                         

Crossville Outlet Center, Crossville, TN

        263     4,380         208     263     4,588     4,851     1,005   2004 (4)

Factory Merchants Branson, Branson, MO

            19,637         2,251         21,888     21,888     7,704   2004 (4)

The Shoppes at Branson Meadows, Branson, MO

    8,858         5,205         457         5,662     5,662     1,033   2004 (4)

Factory Stores of America — Boaz, AL

    2,590         924         43         967     967     160   2004 (4)

Factory Stores of America — Georgetown, KY

    6,140     148     3,610         49     148     3,659     3,807     666   2004 (4)

Factory Stores of America — Graceville, FL

    1,823     12     408         116     12     524     536     84   2004 (4)

Factory Stores of America — Lebanon. MO

    1,534     24     214             24     214     238     56   2004 (4)

Factory Stores of America — Nebraska City, NE

    1,439     26     566         31     26     597     623     117   2004 (4)

Factory Stores of America — Story City, IA

    1,780     7     526         5     7     531     538     93   2004 (4)

Florida City Outlet Center, Florida City, FL

    10,995     1,080     2,874             1,080     2,874     3,954     115   2010 (4)

Huntley Outlet Center, Huntley, IL

    30,753     1,154     3,720             1,154     3,720     4,874     130   2010 (4)

Nanuet Mall, Nanuet, NY

        27,310     162,993         3,207     27,310     166,200     193,510     165,293   1998 (4)

Naples Outlet Center, Naples, FL

    16,531     906     1,363             906     1,363     2,269     47   2010 (4)

Outlet Marketplace, Orlando, FL

        6,587     6,274             6,587     6,274     12,861     261   2010 (4)

University Mall, Pensacola, FL

        4,256     26,657         3,394     4,256     30,051     34,307     29,135   1994

Development Projects

                                                         

Merrimack Premium Outlets

        17,306     20,300             17,306     20,300     37,606        

Other pre-development costs

        20,336     997             20,336     997     21,333     391    

Other

    72,175     9,791     108,705         1,266     9,791     109,971     119,762     9,313    
                                         

  $ 5,580,022     2,744,371   $ 19,388,253   $ 184,683   $ 4,874,916   $ 2,929,054   $ 24,263,169   $ 27,192,223   $ 7,485,822    
                                         

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Table of Contents

Simon Property Group, L.P. and Subsidiaries

Notes to Schedule III as of December 31, 2010

(Dollars in thousands)

(1)    Reconciliation of Real Estate Properties:

            The changes in real estate assets for the years ended December 31, 2010, 2009, and 2008 are as follows:

 
  2010   2009   2008  

Balance, beginning of year

  $ 25,023,715   $ 24,907,970   $ 24,163,367  
 

Acquisitions and consolidations (5)

    2,200,102         7,640  
 

Improvements

    273,255     315,928     797,717  
 

Disposals

    (304,849 )   (200,183 )   (60,754 )
               

Balance, close of year

  $ 27,192,223   $ 25,023,715   $ 24,907,970  
               

            The unaudited aggregate cost of real estate assets for federal income tax purposes as of December 31, 2010 was $21,371,250.

(2)       Reconciliation of Accumulated Depreciation:

            The changes in accumulated depreciation and amortization for the years ended December 31, 2010, 2009, and 2008 are as follows:

 
  2010   2009   2008  

Balance, beginning of year

  $ 6,806,670   $ 6,015,677   $ 5,168,565  
 

Depreciation expense

    874,450     893,139     871,556  
 

Disposals

    (195,299 )   (102,146 )   (24,444 )
               

Balance, close of year

  $ 7,485,821   $ 6,806,670   $ 6,015,677  
               

            Depreciation of our investment in buildings and improvements reflected in the consolidated statements of operations and comprehensive income is calculated over the estimated original lives of the assets as follows:

(3)
Initial cost generally represents net book value at December 20, 1993, except for acquired properties and new developments after December 20, 1993. Initial cost also includes any new developments that are opened during the current year. Costs of disposals and impairments of property are first reflected as a reduction to cost capitalized subsequent to acquisition.

(4)
Not developed/constructed by us or our predecessors. The date of construction represents the acquisition date.

(5)
Initial cost for these properties is the cost at the date of consolidation for properties previously accounted for under the equity method of accounting.

(6)
Secured by a $260,000 cross-collateralized and cross-defaulted mortgage loan facility.

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Exhibits    

2

 

Agreement and Plan of Merger, dated as February 12, 2007, by and among SPG-FCM Ventures, LLC, SPG-FCM Acquisitions,  Inc., SPG-FCM Acquisitions, L.P., The Mills Corporation, and The Mills Limited Partnership (incorporated by reference to Exhibit 2.1 to Simon Property Group, Inc.'s Current Report on Form 8-K filed February 23, 2007).

3.1

 

Second Amended and Restated Certificate of Limited Partnership of the Limited Partnership (incorporated by reference to Exhibit 3.1 to Simon Property Group, L.P.'s Annual Report on Form 10-K for the year ended December 31, 2002).

3.2

 

Eighth Amended and Restated Limited Partnership Agreement (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Current Report on Form 8-K dated May 8, 2008).

3.3

 

Agreement between Simon Property Group, Inc. and Simon Property Group, L.P. dated March 7, 2007, but effective as of August 27, 1999, regarding a prior agreement filed under an exhibit 99.1 to Form S-3/A of Simon Property Group, L.P. on November 20, 1996 (incorporated by reference to Exhibit 3.4 to Simon Property Group, L.P.'s Annual Report on Form 10-K for the year ended December 31, 2006).

3.4

 

Agreement between Simon property Group, Inc. and Simon Property Group, L.P. dated April 29, 2009, but effective as of October 14, 2004, regarding redemption of the Registrant's Series I Preferred Units (incorporated by reference to Exhibit 3.2 to Simon Property Group, L.P.'s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009).

4(a)

 

Indenture, dated as of November 26, 1996, by and among Simon Property Group, L.P. and The Chase Manhattan Bank, as trustee (incorporated by reference to Exhibit 4.1 to the Registration Statement of Form S-3 filed on October 21, 1996 (Reg. No. 333-11491)).

10.1*

 

Simon Property Group, L.P. 1998 Stock Incentive Plan, as amended (incorporated by reference to Exhibit 10.2 to Simon Property Group, Inc.'s Current Report on Form 8-K dated May 8, 2008).

10.2

 

Option Agreement to acquire the Excluded Retail Property (incorporated by reference to Exhibit 10.10 of the Annual Report on Form 10-K for the year ended December 31, 1993 filed by a predecessor of Simon Property Group, L.P.).

10.3

 

Voting Agreement dated as of June 20, 2004 among the Simon Property Group, Inc., Simon Property Group, L.P., and certain holders of shares of common stock of Chelsea Property Group, Inc. and/or common units of CPG Partners, L.P. (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K filed by Simon Property Group,  L.P. on June 22, 2004).

10.4

 

$3,565,000,000 Credit Agreement dated as of December 8, 2009 (incorporated by reference to Exhibit 99.2 of Simon Property Group, L.P.'s Current Report on Form 8-K filed December 11, 2009).

12

 

Statement regarding computation of ratios.

21

 

List of Subsidiaries of the Company.

23.1

 

Consent of Ernst & Young LLP.

31.1

 

Certification by the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

 

Certification by the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32

 

Certification by the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


(a)
Does not include supplemental indentures which authorize the issuance of debt securities series, none of which exceeds 10% of the total assets of Simon Property Group, L.P. on a consolidated basis. Simon Property Group, L.P. agrees to file copies of any such supplemental indentures upon the request of the Commission.

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

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Exhibit 12


SIMON PROPERTY GROUP, L.P.
Computation of Ratio of Earnings to Fixed Charges
(in thousands)

 
  For the Year Ended December 31,  
 
  2010   2009   2008   2007   2006  

Earnings:

                               
 

Pre-tax income from consolidated continuing operations

  $ 755,248   $ 382,042   $ 603,141   $ 663,283   $ 741,097  
 

Add:

                               
   

Pre-tax (loss) income from 50% or greater than 50% owned unconsolidated entities

    (2,433 )   (22,914 )   (29,093 )   (9,061 )   45,313  
   

Distributed income from less than 50% owned unconsolidated entities

    60,636     60,877     61,482     51,594     53,000  
   

Amortization of capitalized interest

    3,453     4,367     4,927     2,462     5,027  
 

Fixed Charges

    1,645,710     1,247,543     1,254,111     1,196,718     958,818  
 

Less:

                               
   

Income from unconsolidated entities

    (75,921 )   (40,220 )   (32,246 )   (38,120 )   (110,819 )
   

Interest capitalization

    (3,833 )   (14,749 )   (28,451 )   (37,270 )   (34,073 )
                       

Earnings

  $ 2,382,860   $ 1,616,946   $ 1,833,871   $ 1,829,606   $ 1,658,363  
                       

Fixed Charges:

                               
 

Portion of rents representative of the interest factor

    13,683     9,082     8,996     9,032     9,052  
 

Interest on indebtedness (including amortization of debt expense)

    1,277,506     1,223,712     1,196,334     1,150,416     915,693  
 

Interest capitalized

    3,833     14,749     28,451     37,270     34,073  
 

Loss on extinguishment of debt

    350,688         20,330          
                       

Fixed Charges

  $ 1,645,710   $ 1,247,543   $ 1,254,111   $ 1,196,718   $ 958,818  
                       

Ratio of Earnings to Fixed Charges

    1.45x     1.30x     1.46x     1.53x     1.73x  
                       

            For purposes of calculating the ratio of earnings to fixed charges, "earnings" have been computed by adding fixed charges, excluding capitalized interest, to income from continuing operations including income from noncontrolling interests and our share of income from 50% owned unconsolidated affiliates which have fixed charges, and our share of distributed operating income from less than 50% owned unconsolidated affiliates instead of our share of income from the less than 50% owned unconsolidated affiliates. There are generally no restrictions on our ability to receive distributions from our unconsolidated joint ventures where no preference in favor of the other owners of the joint venture exists. "Fixed charges" consist of interest costs, whether expensed or capitalized, the interest component of rental expenses, preferred distributions, losses on extinguishment of debt, and amortization of debt issuance costs.

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Exhibit 21


List of Subsidiaries of Simon Property Group, L.P.

Subsidiary
 
Jurisdiction
The Retail Property Trust   Massachusetts
Simon Property Group (Illinois), L.P.    Illinois
Simon Property Group (Texas), L.P.    Texas
Shopping Center Associates   New York
Simon Capital Limited Partnership   Delaware
M.S. Management Associates, Inc.    Delaware
Rosewood Indemnity, Ltd.    Bermuda
Marigold Indemnity, Ltd.    Delaware
Bridgewood Insurance Company, Ltd.    Bermuda
Simon Business Network, LLC   Delaware
Simon Brand Ventures, LLC   Indiana
Simon Global Limited   United Kingdom
Simon Services, Inc.    Delaware
Simon Property Group Administrative Services Partnership, L.P.    Delaware
SPGGC, LLC   Virginia
Kravco Simon Investments, L.P.    Pennsylvania
SPG ML Holdings, LLC   Delaware
Simon Management Associates II, LLC   Delaware
Simon Management Associates, LLC   Delaware
CPG Partners, L.P.    Delaware
Prime Retail, L.P.    Delaware
SPG Mayflower, LLC   Delaware

            Omits names of subsidiaries that as of December 31, 2010 were not, in the aggregate, a "significant subsidiary."

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List of Subsidiaries of Simon Property Group, L.P.

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Exhibit 23.1


Consent of Independent Registered Public Accounting Firm

            We consent to the incorporation by reference in the Registration Statement (Form S-3 No. 333-157794-01) of Simon Property Group, L.P. and in the related prospectus of our reports dated March 11, 2011, with respect to the consolidated financial statements and schedule of Simon Property Group, L.P. and Subsidiaries, and the effectiveness of internal control over financial reporting of Simon Property Group, L.P. and Subsidiaries included in this Annual Report (Form 10-K) for the year ended December 31, 2010.

 
   
    /s/ ERNST & YOUNG LLP

Indianapolis, Indiana
March 11, 2011

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Exhibit 31.1


Certification by the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities
Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

            I, David Simon, certify that:

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

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

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

            4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

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


Date: March 11, 2011

 

 

 

 

/s/ DAVID SIMON

David Simon
Chairman of the Board of Directors and
Chief Executive Officer of
Simon Property Group, Inc., General Partner

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Certification by the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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Exhibit 31.2


Certification by the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities
Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

            I, Stephen E. Sterrett, certify that:

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

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

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

4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f) for the registrant and have:

a.
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

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

a.
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: March 11, 2011

 

 

 

 

/s/ STEPHEN E. STERRETT

Stephen E. Sterrett
Executive Vice President and Chief Financial Officer of
Simon Property Group, Inc., General Partner

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Certification by the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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Exhibit 32


CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

            In connection with the Annual Report of Simon Property Group, L.P., on Form 10-K for the period ending December 31, 2010 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ DAVID SIMON

David Simon
Chairman of the Board of Directors
and Chief Executive Officer of
Simon Property Group, Inc., General Partner
March 11, 2011
   

/s/ STEPHEN E. STERRETT

Stephen E. Sterrett
Executive Vice President and
Chief Financial Officer of
Simon Property Group, Inc., General Partner
March 11, 2011

 

 

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CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002