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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, 2015



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

Delaware
(State or other jurisdiction
of incorporation or organization)
  001-36110
(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:

Title of each class   Name of each exchange on which registered
2.375% Senior Unsecured Notes due 2020   New York Stock Exchange

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 ý    No o

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

            Indicate by check mark whether 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 check mark 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, 2015.

            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, 2015

TABLE OF CONTENTS

Item No.    
  Page No.  
Part I  

1.

 

Business

 

 

3

 
1A.   Risk Factors     7  
1B.   Unresolved Staff Comments     15  
2.   Properties     16  
3.   Legal Proceedings     43  
4.   Mine Safety Disclosures     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.   Qualitative and Quantitative Disclosure About Market Risk     63  
8.   Financial Statements and Supplementary Data     64  
9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure     102  
9A.   Controls and Procedures     102  
9B.   Other Information     103  

Part III

 

10.

 

Directors, Executive Officers and Corporate Governance

 

 

104

 
11.   Executive Compensation     104  
12.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters     104  
13.   Certain Relationships and Related Transactions and Director Independence     104  
14.   Principal Accountant Fees and Services     104  

Part IV

 

15.

 

Exhibits, and Financial Statement Schedules

 

 

105

 

Signatures

 

 

106

 

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Part I

Item 1.    Business

            Simon Property Group, L.P. is a Delaware limited partnership and the majority-owned partnership subsidiary of Simon Property Group, Inc., a Delaware corporation. 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" refers specifically to Simon Property Group, Inc. Simon is a self-administered and self-managed real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. REITs will generally not be liable for federal corporate income taxes as long as they distribute not less than 100% of their REIT taxable income. According to our partnership agreement, we are required to pay all expenses of Simon.

            We own, develop and manage retail real estate properties, which consist primarily of malls, Premium Outlets®, and The Mills®. As of December 31, 2015, we owned or held an interest in 209 income-producing properties in the United States, which consisted of 108 malls, 71 Premium Outlets, 14 Mills, four lifestyle centers, and 12 other retail properties in 37 states and Puerto Rico. We opened four outlets in 2015 and have three outlets and two other significant retail projects under development. In addition, we have redevelopment and expansion projects, including the addition of anchors, big box tenants, and restaurants, underway at 29 properties in the U.S. and Europe. Internationally, as of December 31, 2015, we had ownership interests in nine Premium Outlets in Japan, three Premium Outlets in South Korea, two Premium Outlets in Canada, one Premium Outlet in Mexico, and one Premium Outlet in Malaysia. As of December 31, 2015, we had a noncontrolling ownership interest in a joint venture that holds five outlet properties in Europe and one outlet property in Canada. Of the five properties in Europe, two are located in Italy and one each is located in Austria, the Netherlands, and the United Kingdom. Additionally, as of December 31, 2015, we owned a 20.3% equity stake in Klépierre SA, or Klépierre, a publicly traded, Paris-based real estate company, which owns, or has an interest in, shopping centers located in 16 countries in Europe.

            For a description of our operational strategies and developments in our business during 2015, see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of 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 without a vote of our limited partners or a Simon stockholder vote.

            While we emphasize equity real estate investments, we may also provide secured financing to or invest in equity or debt securities of other entities engaged in real estate activities or securities of other issuers consistent with Simon's qualification as a 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's real estate assets to be less than 75% of its total assets. Simon must also derive at least 75% of its gross income 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. In addition, Simon must also derive at least 95% of its gross income 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 Simon's 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.

            Because Simon's REIT qualification requires it to distribute at least 90% of its REIT taxable income, we regularly access the debt markets to raise the funds necessary to finance acquisitions, develop and redevelop properties, and refinance maturing debt. 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

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under the related agreements, 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 our debt securities. We strive to maintain investment grade ratings at all times for various business reasons, including their effect on our ability to access attractive capital, but we cannot assure you that we will be able to do so in the future.

            We may raise additional capital by issuing common units of partnership interest in us, or units, or incurring debt, creating joint ventures with existing ownership interests in properties, entering into joint venture arrangements for new development projects, retaining cash flows or a combination of these methods. If Simon's Board of Directors determines to raise equity capital at the Operating Partnership level, we may, without limited partner approval, issue additional units or other partnership 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 of partnership interest, or preferred units, that could be senior to our units and may be convertible into units or Simon stock. 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 be cross-collateralized with other debt, or, in the case of indebtedness incurred by our subsidiaries, may be fully or partially guaranteed by us. Although we may borrow to fund the payment of distributions to our unitholders, we currently have no expectation that we will regularly do so.

            We have a $4.0 billion unsecured revolving credit facility, or Credit Facility. The Credit Facility's initial borrowing capacity of $4.0 billion may be increased to $5.0 billion during its term. The initial maturity date of the Credit Facility is June 30, 2018 and can be extended for an additional year to June 30, 2019 at our sole option, subject to our continued compliance with the terms thereof. We also have a $2.75 billion supplemental unsecured revolving credit facility, or Supplemental Facility, and together with the Credit Facility, the Credit Facilities. On March 2, 2015, we amended and extended the Supplemental Facility. The initial borrowing capacity of $2.0 billion was increased to $2.75 billion, may be further increased to $3.5 billion during its term, will initially mature on June 30, 2019 and can be extended for an additional year to June 30, 2020 at our sole option, subject to our continued compliance with the terms thereof. The base interest rate on each of the Credit Facility and the Supplemental Facility is LIBOR plus 80 basis points with an additional facility fee of 10 basis points. The Credit Facilities provide for borrowings denominated in U.S. dollars, Euros, Yen, Sterling, Canadian dollars and Australian dollars.

            On March 2, 2015, we increased the maximum aggregate program size of our global unsecured commercial paper note program, or the Commercial Paper program, from $500.0 million to $1.0 billion, or the non-U.S. dollar equivalent thereof. We may issue unsecured commercial paper notes, denominated in U.S. dollars, Euros and other currencies. Notes issued in non-U.S. currencies may be issued by one or more of our subsidiaries and are guaranteed by us. These notes are sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above) pari passu with our other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and if necessary or appropriate, we may make one or more draws under either the Credit Facilities to pay amounts outstanding from time to time on the Commercial Paper program.

            We may also finance our business through the following:

            We may also issue units to contributors of properties or other partnership interests which may permit the contributor to defer tax gain recognition under the Internal Revenue Code.

            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, typically limit additional indebtedness on such properties. Additionally, the Credit Facilities, our unsecured note indentures and other contracts may limit our ability to borrow and contain limits on mortgage indebtedness we may incur as well as certain financial covenants we must maintain.

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            Typically, we invest in or form special purpose entities to assist us in obtaining secured 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 lien on the property or properties 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 has adopted governance principles governing the function, conduct, selection, orientation and duties of its subsidiaries and the Simon Board of Directors, as well as written charters for each of the standing Committees of Simon's Board of Directors. In addition, Simon's Board of Directors has a Code of Business Conduct and Ethics, which applies to all of its officers, directors, and employees and those of its subsidiaries, including us. At least a majority of the members of the Simon Board of Directors must qualify as independent under the listing standards of the New York Stock Exchange, or NYSE, and cannot be affiliated with the Simon family who are significant stockholders of Simon and/or unitholders in us. In addition, the Audit and Compensation Committees of Simon's Board of Directors are comprised entirely of independent members who meet the additional independence and financial sophistication requirements of the NYSE. Any transaction 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's independent directors.

            The sale of certain of our properties may have an adverse tax impact on the Simons or other of our limited partners. In order to avoid any conflict of interest, the Simon charter requires that at least three-fourths of its independent 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 David Simon, Simon's Chairman and Chief Executive Officer, and Herbert Simon, Simon's Chairman Emeritus, as well as David Simon's employment agreement contain covenants limiting their ability to participate in certain shopping center activities.

            We intend to make investments which are consistent with Simon's qualification as a REIT, unless Simon's Board of Directors determines that it is no longer in Simon's best interests to so qualify as a REIT. Simon's Board of Directors may make such a determination because of changing circumstances or changes in the REIT requirements. We have authority to issue units or other securities in exchange for property. We also have authority to repurchase or otherwise reacquire our units or any other securities. On April 2, 2015, Simon's Board of Directors authorized Simon to repurchase up to $2.0 billion of its common stock over a twenty-four month period as market conditions warrant, or the Repurchase Program. Under the Repurchase Program, Simon may repurchase the shares in the open market or in privately negotiated transactions and we would repurchase a like number of units from Simon. Simon may also issue shares of its common stock, or pay cash at its option, to holders of units in future periods upon exercise of such holders' rights under our partnership agreement. Our policy prohibits us from making any loans to the directors or executive officers of Simon for any purpose. We may make loans to the joint ventures in which we participate. Additionally, we may make or buy interests in loans secured by real estate properties owned by others or make investments in companies that own real estate assets.

Competition

            The retail industry is dynamic and competitive. We compete with numerous merchandise distribution channels including malls, outlet centers, community/lifestyle centers, and other shopping centers in the United States and abroad. We also compete with internet retailing sites and catalogs which 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:

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Certain Activities

            During the past three years, we have:

Employees

            At December 31, 2015, we and our affiliates employed approximately 5,000 persons at various properties and offices throughout the United States, of which approximately 1,850 were part-time. Approximately 1,100 of these employees were located at our corporate headquarters in Indianapolis, Indiana.

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 Securities Exchange Act of 1934, as amended, 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 Securities and Exchange Commission, or 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 may have a material adverse effect on our business, financial condition, liquidity, results of operations, funds from operations, or FFO, and prospects, which we refer to herein as a material adverse effect on us or as materially and adversely affecting us, and you should carefully consider them. Additional risks and uncertainties not presently known to us or which are currently not believed to be material may also affect our actual results. We may update these factors in our future periodic reports.

Risks Relating to Retail Operations

             Overall economic and market conditions may adversely affect the general retail environment.

            Our concentration in the retail real estate market means that we are subject to a number of factors that could adversely affect the retail environment generally, including, without limitation:

            We derive our operating results primarily from retail tenants, many of whom have been and continue to be under some degree of economic stress. A significant deterioration in the creditworthiness of our retail tenants could have a material adverse effect on us.

             We may not be able to lease newly developed properties and renew leases and relet space at existing properties.

            We may not be able to lease new properties to an appropriate mix of tenants. 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 goals are not achieved, we could be materially and adversely affected.

             Some of our properties depend on anchor stores or other major tenants to attract shoppers and could be adversely affected by the loss of one or more of these anchor stores or major tenants.

            Our properties are typically anchored by department stores and other large nationally recognized tenants. The value of some of our properties could be materially and adversely affected if these anchors or other major tenants fail to comply with their contractual obligations or cease their operations.

            For example, among department stores and other large stores — often referred to as "big box" stores — corporate merger activity typically results in the closure of duplicate or geographically overlapping store locations. Further, sustained adverse pressure on the results of our department stores and major tenants may have a similarly sustained adverse impact upon our own results. Certain department stores and other national retailers have experienced, and may continue to experience for the foreseeable future given current macroeconomic uncertainty and less-than-desirable levels of consumer

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confidence, considerable decreases in customer traffic in their retail stores, increased competition from alternative retail options such as those accessible via the Internet and other forms of pressure on their business models. As pressure on these department stores and national retailers increases, their ability to maintain their stores, meet their obligations both to us and to their external lenders and suppliers, withstand takeover attempts by investors or rivals or avoid bankruptcy and/or liquidation may be impaired and result in closures of their stores or their seeking of a lease modification with us. Any lease modification could be unfavorable to us as the lessor and could decrease rents or expense recovery charges. Other tenants may be entitled to modify the economic or other terms of, or terminate, their existing leases with us in the event of such closures.

            If a department store or major tenant were to close its stores at our properties, we may experience difficulty and delay and incur significant expense in replacing the tenant, as well as in leasing spaces in areas adjacent to the vacant department store or major tenant, at attractive rates, or at all. Additionally, department store or major tenant closures may result in decreased customer traffic, which could lead to decreased sales at our properties. If the sales of stores operating in our properties were to decline significantly due to the closing of anchor stores or other national retailers, adverse economic conditions, or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of any default by a tenant, we may not be able to fully recover, and/or may experience delays and costs in enforcing our rights as landlord to recover, amounts due to us under the terms of our agreements with such parties.

             We face potential adverse effects from tenant bankruptcies.

            Bankruptcy filings by retailers can occur regularly in the course of our operations. If a tenant files for bankruptcy, the tenant may have the right to reject and terminate one or more of its leases with us, and we cannot be sure that it will affirm one or more of its leases and continue to make rental payments to us in a timely manner. A bankruptcy filing by, or relating to, one of our tenants would bar all efforts by us to collect pre-bankruptcy debts from that tenant, or from their property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of its bankruptcy. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. However, if a lease is rejected by a tenant in bankruptcy, we would have only a general unsecured claim for damages in connection with such balances. If a bankrupt tenant vacates a space, it might not do so in a timely manner, and we might be unable to re-lease the vacated space during that time at attractive rates, or at all. Furthermore, we may be required to incur significant expense in replacing the bankrupt tenant. Any unsecured claim we hold against a bankrupt tenant might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims, and there are restrictions under bankruptcy laws that limit the amount of the claim we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant or a national tenant with multiple locations, may make the re-leasing of their space difficult and costly, and it also may be more difficult to lease the remainder of the space at the affected properties. Future tenant bankruptcies may impact our ability to successfully execute our re-leasing strategy and could materially and adversely affect us.

             We face a wide range of competition that could affect our ability to operate profitably.

            Our properties compete with other retail properties and other forms of retailing such as catalogs and e-commerce websites. Competition may come from malls, outlet centers, community/lifestyle centers, and other shopping centers, both existing as well as future development and redevelopment/expansion projects, as well as catalogs and e-commerce. 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 major real estate investors and developers for attractive investment opportunities and prime development sites. Competition for the acquisition of existing properties and development sites may result in increased purchase prices and may adversely affect our ability to make attractive investments on favorable terms, or at all. In addition, we compete with other retail property companies for tenants and qualified management.

Risks Relating to Real Estate Investments and Operations

             We face risks associated with the acquisition, development, redevelopment and expansion of properties.

            We regularly acquire and develop new properties and redevelop and expand 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 as well as

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expected, impacting our anticipated return on investment. 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.

             Real estate investments are relatively illiquid.

            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, industry, or other conditions may be limited. The real estate market is affected by many factors, such as general economic conditions, availability and terms of financing, interest rates and other factors, including supply and demand for space, that are beyond our control. 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 at all or that the sales price of a property will be attractive at the relevant time or even exceed the carrying value of our investment. Moreover, if a property is mortgaged, we may not be able to obtain a release of the lien on that property without the payment of the associated debt and/or a substantial prepayment penalty, which could restrict our ability to dispose of the property, even though the sale might otherwise be desirable.

             Our international activities may subject us to different or greater risk from those associated with our domestic operations.

            As of December 31, 2015, we held interests in joint venture properties that operate in Austria, Italy, Japan, Malaysia, Mexico, the Netherlands, South Korea, Canada, and the United Kingdom. We also have an equity stake in Klépierre, a publicly-traded European real estate company which operates in 16 countries in Europe. Accordingly, our operating results and the value of our international operations may be impacted by any unhedged movements in the foreign currencies in which those operations transact and in which our net investment in the international operation is held. We may pursue additional investment, development and redevelopment/expansion opportunities outside the United States. International investment, ownership, development and redevelopment/expansion activities carry risks that are different from those we face with our domestic properties and operations. These risks include, but are not limited to:

            Our international activities represented approximately 7.9% of our net operating income, or NOI, for the year ended December 31, 2015. To the extent that we expand our international activities, the above risks could increase in significance, which in turn could have a material adverse effect on us.

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Risks Relating to Debt and the Financial Markets

             We have a substantial debt burden that could affect our future operations.

            As of December 31, 2015, our consolidated mortgages and unsecured indebtedness, excluding related premium and discount, totaled $22.5 billion. As a result of this indebtedness, we are required to use a substantial portion of our cash flows for debt service, including selected repayment at scheduled maturities, which limits our ability to use those cash flows to fund the growth of our business. We are also subject to the risks normally associated with debt financing, including the risk that our cash flows from operations will be insufficient to meet required debt service or that we will be able to refinance such indebtedness on acceptable terms, or at all. Our debt service costs generally will not be reduced if developments at the applicable property, such as the entry of new competitors or the loss of major tenants, cause a reduction in the income from the property. Our indebtedness could also have other adverse consequences on us, including reducing our access to capital or increasing our vulnerability to general adverse economic, industry and market conditions. In addition, if a property is mortgaged to secure payment of indebtedness and income from such property 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. If any of the foregoing occurs, we could be materially and adversely affected.

             Disruption in the capital and credit markets may adversely affect our ability to access external financings for our growth and ongoing debt service requirements.

            We depend 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 the willingness of lending institutions and other debt investors to grant credit to us and conditions in the capital markets in general. An economic recession may cause extreme volatility and disruption in the capital and credit markets. We rely upon the Credit Facilities as sources of funding for numerous transactions. Our access to these funds is dependent upon the ability of each of the participants to the Credit Facilities to meet their funding commitments to us. When markets are volatile, access to capital and credit markets could be disrupted over an extended period of time and one or more financial institutions may not have the available capital to meet their previous commitments to us. The failure of one or more participants to the Credit Facilities to meet their funding commitments to us could have a material adverse effect on us, including as a result of making it difficult to obtain the financing we may need for future growth and/or meeting our debt service requirements. We cannot assure you that we will be able to obtain the financing we need for the future growth of our business or to meet our debt service requirements, or that a sufficient amount of financing will be available to us on favorable terms, or at all.

             Adverse changes in our credit rating could affect our borrowing capacity and borrowing terms.

            Our outstanding senior unsecured notes, Credit Facilities, the Commercial Paper program, and Simon's preferred stock are periodically rated by nationally recognized credit rating agencies. The credit ratings are based on our operating performance, liquidity and leverage ratios, financial condition and prospects, and other factors viewed by the credit rating agencies as relevant to our industry and the economic outlook in general. Our credit rating can 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 the growth of our business, an adverse change in our credit rating, including actual changes and changes in outlook, or even the initiation of a review of our credit rating that could result in an adverse change, could have a material adverse effect on us.

             The agreements that govern our indebtedness contain various covenants that impose restrictions on us that might affect our ability to operate freely.

            We have a variety of unsecured debt, including the Credit Facilities, and secured property-level debt. Certain of the agreements that govern our indebtedness contain covenants, including, among other things, limitations on our ability to incur secured and unsecured indebtedness, sell all or substantially all of our assets and engage in mergers and certain acquisitions. In addition, certain of the agreements that govern our indebtedness contain financial covenants that require us to maintain certain financial ratios, including certain coverage ratios. These covenants may restrict our ability to pursue certain business initiatives or certain transactions that might otherwise be advantageous to us. In addition, our ability to comply with these provisions might be affected by events beyond our control. Failure to comply with any of our financing covenants could result in an event of default, which, if not cured or waived, could accelerate the related indebtedness as well as other of our indebtedness, which could have a material adverse effect on us.

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             Our hedging interest rate protection arrangements may not effectively limit our interest rate risk.

            We selectively manage our exposure to interest rate risk by a combination of interest rate protection agreements to effectively fix or cap all or a portion of our variable rate debt. In addition, we refinance fixed rate debt at times when we believe rates and other 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 or that we could be required to fund our contractual payment obligations under such arrangements in relatively large amounts or on short notice. 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, liquidity or financial condition. Termination of these hedging agreements typically involves costs, such as transaction fees or breakage costs.

Risks Relating to Income Taxes

             The failure of our REIT subsidiaries to maintain their qualifications as REITs or the loss of favorable tax treatment in certain of our international operations could have adverse tax consequences to us, our unitholders, and Simon.

            We are subject to certain income-based taxes, both domestically and internationally, and other taxes, including state and local taxes, franchise taxes, and withholding taxes on dividends from certain of our international investments. We currently receive favorable tax treatment in various domestic and international jurisdictions through tax rules and regulations or through international treaties. Should we no longer receive such benefits, the amount of taxes we pay may increase.

            In the United States, Simon and certain of our subsidiaries have elected to qualify as REITs. 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. We believe our REIT subsidiaries are organized and have been operated, and will continue to operate, in a manner which allows our REIT subsidiaries and Simon to qualify for taxation as REITs. However, qualification as a REIT depends upon meeting ongoing asset and income tests and other requirements for asset diversification, distribution levels and diversity of ownership under the Internal Revenue Code. Accordingly, there is no assurance that our REIT subsidiaries have operated or will continue to operate in a manner so as to qualify or remain qualified as REITs.

            If a REIT subsidiary 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 the REIT subsidiary fails to qualify as a REIT. Moreover, in the event a REIT subsidiary fails to qualify as a REIT, Simon would also fail to qualify as a REIT, and the adverse consequences described above would apply to Simon, including, without limitation, being subject to substantial taxes, which would have a material adverse effect on us.

             REIT distribution requirements could adversely affect our liquidity and our ability to execute our business plan.

            In order for Simon and certain of our subsidiaries to qualify to be taxed as REITs, and assuming that certain other requirements are also satisfied, Simon and our REIT subsidiaries generally must distribute at least 90% of their respective REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains, to their equity holders each year, so that federal corporate income tax does not apply to earnings that they distribute. To the extent that Simon or a REIT subsidiary satisfies this distribution requirement and qualifies for taxation as a REIT, but distributes less than 100% of its REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gains, Simon or the REIT subsidiary will be subject to federal corporate income tax on its undistributed net taxable income. In addition, Simon or the REIT subsidiary will be subject to a 4% nondeductible excise tax if the actual that it distributes to its equity holders in a calendar year is less than "the required minimum distribution amount" specified under federal income tax laws. Simon and our REIT subsidiaries intend to make distributions to their equity holders to enable them to meet their REIT requirements of the Internal Revenue Code, and we make distributions on our units in amounts sufficient to maintain Simon's qualification as a REIT.

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            From time to time, Simon or a REIT subsidiary might generate taxable income greater than its cash flow as a result of differences in timing between the recognition of taxable income and the actual receipt of cash or the effect of nondeductible capital expenditures, the creation of reserves, or required debt or amortization payments. If Simon or the REIT subsidiary does not have other funds available in these situations, it could be required to access capital on unfavorable terms (the receipt of which cannot be assured), sell assets at disadvantageous prices, distribute amounts that would otherwise be invested in future acquisitions, capital expenditures or repayment of debt, or make taxable distributions of its capital stock or debt securities to make distributions sufficient to enable it to pay out enough of its taxable income to satisfy the REIT distribution requirement and avoid corporate income tax and the 4% excise tax in a particular year. These alternatives could increase costs or reduce equity. Further, since we make distributions on our units in amounts sufficient to maintain Simon's qualification as a REIT, amounts distributed will not be available to fund the growth of our business. Thus, compliance with the REIT requirements may adversely affect our ability to execute our business plan.

             Complying with REIT requirements might cause us to forego otherwise attractive acquisition opportunities or liquidate otherwise attractive investments.

            To qualify to be taxed as a REIT for federal income tax purposes, Simon and our subsidiaries that have elected to qualify as REITs must ensure that, at the end of each calendar quarter, at least 75% of the value of their respective assets consist of cash, cash items, government securities and "real estate assets" (as defined in the Internal Revenue Code), including certain mortgage loans and securities. The remainder of their respective investments (other than government securities, qualified real estate assets and securities issued by a taxable REIT subsidiary, or TRS) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer.

            Additionally, in general, no more than 5% of the value of their respective total assets (other than government securities, qualified real estate assets and securities issued by a TRS) can consist of the securities of any one issuer, and no more than 25% (20% for taxable years beginning after December 31, 2017) of the value of their respective total assets can be represented by securities of one or more TRSs. If Simon or a REIT subsidiary fails to comply with these requirements at the end of any calendar quarter, Simon or the REIT subsidiary must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing its REIT qualification and suffering adverse tax consequences. As a result, we might be required to liquidate or forego otherwise attractive investments in order for Simon or a REIT subsidiary to comply with certain REIT requirements. These actions could have the effect of reducing our income and amounts available for distribution to our unitholders.

            In addition to the asset tests set forth above, to qualify to be taxed as a REIT, Simon and our REIT subsidiaries must continually satisfy tests concerning, among other things, the sources of their income, the amounts they distribute to their equity holders and the ownership of their equity. We might be unable to pursue investments that would be otherwise advantageous to us in order for Simon and our REIT subsidiaries to satisfy the source-of-income or asset-diversification requirements for Simon qualifying as a REIT. Thus, compliance with the REIT requirements may hinder our ability to make certain attractive investments.

             New partnership tax audit rules could have a material adverse effect on us.

            The recently enacted Bipartisan Budget Act of 2015 changes the rules applicable to federal income tax audits of partnerships. Under the new rules (which are generally effective for taxable years beginning after December 31, 2017), among other changes and subject to certain exceptions, any audit adjustment to items of income, gain, loss, deduction, or credit of a partnership (and any partner's distributive share thereof) is determined, and taxes, interest, or penalties attributable thereto are assessed and collected, at the partnership level. Although it is uncertain how these new rules will be implemented, it is possible that they could result in us or partnerships in which we directly or indirect invest being required to pay additional taxes, interest and penalties as a result of an audit adjustment, and we, directly or as a direct or indirect partner of these other partnerships, could be required to bear the economic burden of those taxes, interest, and penalties. The new partnership tax audit rules will apply to us and our subsidiaries that are classified as partnerships for federal income tax purposes. The changes created by these new rules are sweeping and in many respects dependent on the promulgation of future regulations or other guidance by the U.S. Department of the Treasury, or the Treasury, and, accordingly, there can be no assurance that these rules will not have a material adverse effect on us.

             Legislative, administrative, regulatory or other actions affecting REITs, including positions taken by the IRS, could have a material adverse effect on Simon, our REIT subsidiaries, us or our investors.

            The rules dealing with federal income taxation are constantly under review by persons involved in the legislative process, and by the IRS and the Treasury. Changes to the tax laws or interpretations thereof by the IRS and the Treasury, with or without retroactive application, could materially and adversely affect Simon, our subsidiaries that have elected to qualify as REITs, us or our investors. New legislation, Treasury regulations, administrative interpretations or court decisions could significantly and negatively affect the ability of Simon and our REIT subsidiaries to qualify to be taxed as REITs and/or the federal income tax consequences to Simon and our REIT subsidiaries, and by extension, us and Simon's investors of such qualification.

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Risks Relating to Joint Ventures

             We have limited control with respect to some properties that are partially owned or managed by third parties, which may adversely affect our ability to sell or refinance them.

            As of December 31, 2015, we owned interests in 94 income-producing properties with other parties. Of those, 13 properties are included in our consolidated financial statements. We account for the other 81 properties, or the joint venture properties, as well as our investment in Klépierre and our joint ventures with Seritage Growth Properties, or Seritage, and Hudson's Bay Company, or HBC, using the equity method of accounting. We serve as general partner or property manager for 58 of these 81 properties; however, certain major decisions, such as approving the operating budget and selling, refinancing and redeveloping the properties require the consent of the other owners. Of the properties for which we do not serve as general partner or property manager, 20 are in our international joint ventures. The international properties are managed locally by joint ventures in which we share control of the properties with our partner. The other owners have participating rights that we consider substantive for purposes of determining control over the properties' assets. The remaining joint venture properties, Klépierre (a publicly traded, Paris-based real estate company), and our joint venture with HBC are managed by third parties.

            These investments, and other future similar investments could involve risks that would not be present were a third party not involved, including the possibility that partners or other owners might become bankrupt, suffer a deterioration in their creditworthiness, or fail to fund their share of required capital contributions. Partners or other owners could have economic or other business interests or goals that are inconsistent with our own business interests or goals, and could be in a position to take actions contrary to our policies or objectives.

            These investments, and other future similar investments, also have the potential risk of creating impasses on decisions, such as a sale or financing, because neither we nor our partner or other owner has full control over the partnership or joint venture. Disputes between us and partners or other owners might result in litigation or arbitration that could increase our expenses and prevent our officers and/or directors from focusing their time and efforts on our business. Consequently, actions by, or disputes with, partners or other owners might result in subjecting properties owned by the partnership or joint venture to additional risk. In addition, we risk the possibility of being liable for the actions of our partners or other owners.

             We guarantee debt or otherwise provide support for a number of joint venture properties.

            Joint venture debt is the liability of the joint venture and is typically secured by a mortgage on the joint venture property, which is non-recourse to us. Nevertheless, the joint venture's failure to satisfy its debt obligations could result in the loss of our investment therein. As of December 31, 2015, we guaranteed joint venture related mortgage indebtedness of $353.7 million (of which we have a right of recovery from our venture partners of $112.8 million). A default by a joint venture under its debt obligations may expose us to liability under a guaranty. 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 typically required contractually or otherwise.

Risks Relating to Environmental Matters

             As owners of real estate, we can face liabilities for environmental contamination.

            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). We may be subject to regulatory action and may also be held liable to third parties for personal injury or property damage incurred by the parties in connection with any such laws and regulations or hazardous or toxic substances. The costs of investigation, removal or remediation of hazardous or toxic substances, and related liabilities, may be substantial and could materially and adversely affect us. The presence of hazardous or toxic substances, or the failure to remediate the related contamination, may also adversely affect our ability to sell, lease or redevelop a property or to borrow money using a property as collateral.

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             Our efforts to identify environmental liabilities may not be successful.

            Although we believe that our portfolio is in substantial compliance with federal, state and local environmental laws 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 is reasonably likely to have a material adverse effect on us. However, we cannot assure you that:

             We face possible risks associated with climate change.

            We cannot determine with certainty whether global warming or cooling is occurring and, if so, at what rate. To the extent climate change causes changes in weather patterns, our properties in certain markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in volatile or decreased demand for retail space at certain of our properties or, in extreme cases, our inability to operate the properties at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) insurance on favorable terms, or at all, and increasing the cost of energy and snow removal at our properties. Moreover, compliance with new laws or regulations related to climate change, including compliance with "green" building codes, may require us to make improvements to our existing properties or increase taxes and fees assessed on us or our properties. At this time, there can be no assurance that climate change will not have a material adverse effect on us.

Other Factors Affecting Our Business

             Some of our potential losses may not be covered by 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 either insured through our wholly-owned captive insurance companies or other financial arrangements controlled by us. A third-party carrier has, in turn, agreed, if required, 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 companies 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, that generally are not insured or are subject to large insurance deductibles. If an uninsured loss or a loss in excess of insured limits occurs, or a loss for which a large deductible 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, but may remain obligated for any mortgage debt or other financial obligation related to the property.

            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 2020. However, the U.S. government could in the future terminate its reinsurance of terrorism, which would increase the risk of uninsured losses for terrorist acts. Despite the existence of this insurance coverage, or actual or threatened terrorist attacks or other activity where we operate could materially and adversely affect us.

             We face risks associated with security breaches through cyber-attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems.

            We face risks associated with security breaches, whether through cyber-attacks or cyber intrusions over the Internet, malware, computer viruses, attachments to e-mails, persons inside our organization or persons with access to systems inside our organization, and other significant disruptions of our IT networks and related systems. The risk of a security breach or disruption, particularly through cyber-attack or cyber intrusion, including by computer hackers, foreign

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governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations (including managing our building systems). Although we make efforts to maintain the security and integrity of these types of IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.

            A breach or significant and extended disruption in the functioning of our systems, including our primary website, could damage our reputation and cause us to lose customers, tenants and revenues, generate third party claims, result in the unintended and/or unauthorized public disclosure or the misappropriation of proprietary, personal identifying and confidential information, and require us to incur significant expenses to address and remediate or otherwise resolve these kinds of issues, and we may not be able to recover these expenses in whole or in any part from our service providers or responsible parties, or their or our insurers.

             Our success depends, in part, on our ability to attract and retain talented employees, and the loss of any one of our key personnel could adversely impact our business.

            The success of our business depends, in part, on the leadership and performance of our executive management team and key employees, and our ability to attract, retain and motivate talented employees could significantly impact our future performance. Competition for these individuals is intense, and we cannot assure you that we will retain our key executive management team and employees or that we will be able to attract and retain other highly qualified individuals for these positions in the future. Losing any one or more of these persons could have a material adverse effect on us.

             Provisions in Simon's charter and by-laws and in our partnership agreement could prevent a change of control.

            Simon's charter contains a general restriction on the accumulation of shares in excess of 8% of Simon's capital stock. The charter permits the members of the Simon family and related persons to own up to 18% of Simon's capital stock. Ownership is determined by the lower of the number of outstanding shares, voting power or value controlled. Simon's Board of Directors may, by majority vote, permit exceptions to those levels in circumstances where Simon's Board of Directors determines Simon's ability to qualify as a REIT will not be jeopardized. These restrictions on ownership may have the effect of delaying, deferring or preventing a transaction or a change in control that might otherwise be in the best interest of Simon's stockholders or our unitholders. Other provisions of Simon's charter and by-laws could have the effect of delaying or preventing a change of control even if some of Simon's stockholders or our unitholders deem such a change to be in their best interests. These include provisions preventing holders of Simon common stock from acting by written consent and requiring that up to four directors in the aggregate may be elected by holders of Class B common stock. In addition, certain provisions of our partnership agreement could have the effect of delaying or preventing a change of control. These include a provision requiring the consent of a majority in interest of units in order for Simon, as our general partner, to, among other matters, engage in a merger transaction or sell all or substantially all of its assets.

Item 1B.    Unresolved Staff Comments

            None.

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Item 2.    Properties

            Our U.S. properties primarily consist of malls, Premium Outlets, The Mills, lifestyle centers and other retail properties. These properties contain an aggregate of approximately 184.2 million square feet of gross leasable area, or GLA.

            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 108 malls are generally enclosed centers and range in size from approximately 465,000 to 2.6 million square feet of GLA. Our malls contain in the aggregate more than 13,700 occupied stores, including approximately 517 anchors, which are predominately national retailers.

            Premium Outlets generally contain a wide variety of designer and manufacturer stores located in open-air centers. Our 71 Premium Outlets range in size from approximately 150,000 to 870,000 square feet of GLA. The Premium Outlets are generally located within a close proximity to major metropolitan areas and/or tourist destinations.

            The 14 properties in The Mills generally range in size from 1.2 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.

            We also have interests in four lifestyle centers and 12 other retail properties. The lifestyle centers range in size from 160,000 to 900,000 square feet of GLA. The other retail properties range in size from approximately 150,000 to 730,000 square feet of GLA and are considered non-core to our business model. In total, the lifestyle centers and other retail properties represent approximately 1.0% of our total operating income before depreciation and amortization.

            As of December 31, 2015, approximately 96.1% of the owned GLA in malls and Premium Outlets was leased and approximately 98.5% of the owned GLA for The Mills was leased.

            We wholly own 137 of our properties, effectively control 13 properties in which we have a joint venture interest, and hold the remaining 59 properties through unconsolidated joint venture interests. We are the managing or co-managing general partner or member of 206 properties in the United States. Certain of our joint venture properties are subject to various rights of first refusal, buy-sell provisions, put and call rights, or other sale or marketing rights for partners which are customary in real estate partnership agreements and the industry. We and our partners in these joint ventures may initiate these provisions (subject to any applicable lock up or similar restrictions) which may result in either the sale of our interest or the use of available cash or borrowings, or the use of units, to acquire the joint venture interest from our partner.

            On April 13, 2015, we announced a joint venture with Sears Holdings, or Sears, whereby Sears contributed 10 of its properties located at our malls to the joint venture in exchange for a 50% noncontrolling interest in the joint venture. Seritage Growth Properties, or Seritage, a public REIT recently formed by Sears, now holds Sears' interest in the joint venture.

            The following property table summarizes certain data for our malls, Premium Outlets, The Mills, lifestyle centers and other retail properties located in the United States, including Puerto Rico, as of December 31, 2015.

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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
    Malls                                      
1.    Apple Blossom Mall   VA   Winchester   Fee     49.1 % (4) Acquired 1999     92.4 %   473,103   Belk, JCPenney, Sears, Carmike Cinemas
2.   Auburn Mall   MA   Auburn   Fee     56.4 % (4) Acquired 1999     99.4 %   586,242   Macy's (9), Sears
3.   Aventura Mall (1)   FL   Miami Beach (Miami)   Fee     33.3 % (4) Built 1983     96.8 %   2,105,023   Bloomingdale's, Macy's (9), JCPenney, Sears, Nordstrom, Equinox Fitness Clubs, AMC Theatres
4.   Avenues, The   FL   Jacksonville   Fee     25.0 % (4)(2) Built 1990     94.1 %   1,113,547   Belk, Dillard's, JCPenney, Sears, Forever 21
5.   Bangor Mall   ME   Bangor   Fee     87.6 % Acquired 2003     92.0 %   652,622   Macy's, JCPenney, Sears, Dick's Sporting Goods
6.   Barton Creek Square   TX   Austin   Fee     100.0 % Built 1981     99.9 %   1,429,521   Nordstrom, Macy's, Dillard's (9), JCPenney, Sears, AMC Theatre
7.   Battlefield Mall   MO   Springfield   Fee and Ground Lease (2056)     100.0 % Built 1970     94.1 %   1,201,628   Macy's, Dillard's (9), JCPenney, Sears, MC Sporting Goods
8.   Bay Park Square   WI   Green Bay   Fee     100.0 % Built 1980     91.4 %   711,732   Younkers (9), Kohl's, ShopKo, Marcus Cinema 16
9.   Brea Mall   CA   Brea (Los Angeles)   Fee     100.0 % Acquired 1998     97.2 %   1,319,477   Nordstrom, Macy's (9), JCPenney, Sears
10.   Briarwood Mall   MI   Ann Arbor   Fee     50.0 % (4) Acquired 2007     99.4 %   979,005   Macy's, JCPenney, Sears, Von Maur, MC Sporting Goods
11.   Broadway Square   TX   Tyler   Fee     100.0 % Acquired 1994     97.6 %   627,562   Dillard's, JCPenney, Sears
12.   Burlington Mall   MA   Burlington (Boston)   Fee and Ground Lease (2048) (7)     100.0 % Acquired 1998     95.6 %   1,317,293   Macy's, Lord & Taylor, Sears, Nordstrom, Crate & Barrel, Primark (6)
13.   Cape Cod Mall   MA   Hyannis   Fee and Ground Leases (2029-2073) (7)     56.4 % (4) Acquired 1999     93.5 %   722,482   Macy's (9), Sears, Best Buy, Marshalls, Barnes & Noble, Regal Cinema
14.   Castleton Square   IN   Indianapolis   Fee     100.0 % Built 1972     96.8 %   1,381,813   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, AMC Theatres
15.   Cielo Vista Mall   TX   El Paso   Fee and Ground Lease (2022) (7)     100.0 % Built 1974     99.4 %   1,245,876   Macy's, Dillard's (9), JCPenney, Sears, Cinemark Theatres
16.   Coconut Point   FL   Estero   Fee     50.0 % (4) Built 2006     96.8 %   1,205,033   Dillard's, Barnes & Noble, Bed Bath & Beyond, Best Buy, DSW, Office Max, PetsMart, Ross, Cost Plus World Market, T.J. Maxx, Hollywood Theatres, Super Target, Michael's, Sports Authority
17.   Coddingtown Mall   CA   Santa Rosa   Fee     50.0 % (4) Acquired 2005     74.2 %   823,563   Macy's, JCPenney, Whole Foods, Target, Nordstrom Rack (6)
18.   College Mall   IN   Bloomington   Fee and Ground Lease (2048) (7)     100.0 % Built 1965     96.0 %   636,593   Macy's, Sears (15), Target, Dick's Sporting Goods, Bed Bath & Beyond, 365 by Whole Foods (6)
19.   Columbia Center   WA   Kennewick   Fee     100.0 % Acquired 1987     98.2 %   772,469   Macy's (9), JCPenney, Sears, Barnes & Noble, Regal Cinema, DSW, Home Goods (6)
20.   Copley Place   MA   Boston   Fee     94.4 % (12) Acquired 2002     86.3 %   1,253,074   Neiman Marcus, Barneys New York
21.   Coral Square   FL   Coral Springs (Miami)   Fee     97.2 % Built 1984     100.0 %   943,791   Macy's (9), JCPenney, Sears, Kohl's
22.   Cordova Mall   FL   Pensacola   Fee     100.0 % Acquired 1998     98.7 %   922,209   Dillard's, Belk, Best Buy, Bed Bath & Beyond, Cost Plus World Market, Ross, Dick's Sporting Goods
23.   Crystal Mall   CT   Waterford   Fee     78.2 % (4) Acquired 1998     90.1 %   783,502   Macy's, JCPenney, Sears, Bed Bath & Beyond, Christmas Tree Shops
24.   Dadeland Mall   FL   Miami   Fee     50.0 % (4) Acquired 1997     99.4 %   1,498,534   Saks Fifth Avenue, Nordstrom, Macy's (9), JCPenney

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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
25.    Del Amo Fashion Center   CA   Torrance (Los Angeles)   Fee     50.0 % (4) Acquired 2007     88.5 %   2,576,164   Nordstrom, Macy's (9), JCPenney, Sears, Marshalls, T.J. Maxx, Barnes & Noble, JoAnn Fabrics, Crate & Barrel, L.A. Fitness, AMC Theatres, (8)
26.   Domain, The   TX   Austin   Fee     100.0 % Built 2006     97.5 %   1,233,550   Neiman Marcus, Macy's, Dillard's, Dick's Sporting Goods, iPic Theaters, Arhaus Furniture, Punch Bowl Social
27.   Dover Mall   DE   Dover   Fee and Ground Lease (2041) (7)     68.1 % (4) Acquired 2007     93.3 %   928,241   Macy's, JCPenney, Boscov's, Sears, Carmike Cinemas, Dick's Sporting Goods
28.   Emerald Square   MA   North Attleboro (Providence, RI)   Fee     56.4 % (4) Acquired 1999     88.9 %   1,022,439   Macy's (9), JCPenney, Sears
29.   Empire Mall   SD   Sioux Falls   Fee and Ground Lease (2033) (7)     100.0 % Acquired 1998     92.7 %   1,125,435   Macy's, Younkers, JCPenney, Sears, Gordmans, Hy-Vee, Dick's Sporting Goods
30.   Falls, The   FL   Miami   Fee     50.0 % (4) Acquired 2007     96.8 %   837,621   Bloomingdale's, Macy's, Regal Cinema, The Fresh Market
31.   Fashion Centre at Pentagon City, The   VA   Arlington (Washington, DC)   Fee     42.5 % (4) Built 1989     99.5 %   985,407   Nordstrom, Macy's
32.   Fashion Mall at Keystone, The   IN   Indianapolis   Fee and Ground Lease (2067) (7)     100.0 % Acquired 1997     94.5 %   711,985   Saks Fifth Avenue, Crate & Barrel, Nordstrom, Keystone Art Cinema
33.   Fashion Valley   CA   San Diego   Fee     50.0 % (4) Acquired 2001     97.5 %   1,720,549   Forever 21, Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, JCPenney, AMC Theatres, The Container Store
34.   Firewheel Town Center   TX   Garland (Dallas)   Fee     100.0 % Built 2005     94.2 %   999,496   Dillard's, Macy's, Barnes & Noble, DSW, Cost Plus World Market, AMC Theatres, Dick's Sporting Goods, Ethan Allen, Toys 'R Us/Babies 'R Us
35.   Florida Mall, The   FL   Orlando   Fee     50.0 % (4) Built 1986     96.3 %   1,702,549   Macy's, Dillard's, JCPenney, Sears, H&M, Forever 21, Zara, American Girl, Dick's Sporting Goods, Crayola Experience
36.   Forum Shops at Caesars, The   NV   Las Vegas   Ground Lease (2050)     100.0 % Built 1992     97.2 %   679,665    
37.   Galleria, The   TX   Houston   Fee     50.4 % (4) Acquired 2002     98.3 %   1,896,781   Saks Fifth Avenue (11), Neiman Marcus, Nordstrom, Macy's
38.   Greenwood Park Mall   IN   Greenwood (Indianapolis)   Fee     100.0 % Acquired 1979     94.9 %   1,288,128   Macy's, Von Maur, JCPenney, Sears, Dick's Sporting Goods, Barnes & Noble, Regal Cinema
39.   Haywood Mall   SC   Greenville   Fee and Ground Lease (2067) (7)     100.0 % Acquired 1998     98.5 %   1,237,008   Macy's, Dillard's, JCPenney, Sears, Belk
40.   Independence Center   MO   Independence (Kansas City)   Fee     100.0 % Acquired 1994     94.3 %   831,338   Dillard's, Macy's, Sears, Dick's Sporting Goods (6)
41.   Ingram Park Mall   TX   San Antonio   Fee     100.0 % Built 1979     96.8 %   1,120,324   Dillard's, Macy's, JCPenney, Sears, Bealls, (8)
42.   King of Prussia   PA   King of Prussia (Philadelphia)   Fee     100.0 % Acquired 2003     95.6 %   2,467,133   Neiman Marcus, Bloomingdale's, Nordstrom, Lord & Taylor, Macy's, JCPenney, Crate & Barrel, Arhaus Furniture, The Container Store, Dick's Sporting Goods, Primark
43.   La Plaza Mall   TX   McAllen   Fee and Ground Lease (2040) (7)     100.0 % Built 1976     99.1 %   1,224,444   Macy's (9), Dillard's, JCPenney, Joe Brand
44.   Lakeline Mall   TX   Cedar Park (Austin)   Fee     100.0 % Built 1995     96.5 %   1,097,549   Dillard's (9), Macy's, JCPenney, Sears, Regal Cinema

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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
45.    Lehigh Valley Mall   PA   Whitehall   Fee     50.0 % (4) Acquired 2003     98.4 %   1,180,561   Macy's, JCPenney, Boscov's, Barnes & Noble, hhgregg, Babies 'R Us
46.   Lenox Square   GA   Atlanta   Fee     100.0 % Acquired 1998     99.0 %   1,559,575   Neiman Marcus, Bloomingdale's, Macy's
47.   Liberty Tree Mall   MA   Danvers (Boston)   Fee     49.1 % (4) Acquired 1999     80.5 %   856,043   Marshalls, Sports Authority, Target, Kohl's, Best Buy, Staples, AC Moore, AMC Theatres, Nordstrom Rack, Off Broadway Shoes, Sky Zone
48.   Livingston Mall   NJ   Livingston (New York)   Fee     100.0 % Acquired 1998     94.2 %   969,192   Macy's, Lord & Taylor, Sears, Barnes & Noble
49.   Mall at Rockingham Park, The   NH   Salem (Boston)   Fee     28.2 % (4) Acquired 1999     97.8 %   1,025,432   JCPenney, Sears, Macy's, Lord & Taylor, Dick's Sporting Goods
50.   Mall at Tuttle Crossing, The   OH   Dublin (Columbus)   Fee     50.0 % (4) Acquired 2007     96.3 %   1,125,111   Macy's (9), JCPenney, Sears
51.   Mall of Georgia   GA   Buford (Atlanta)   Fee     100.0 % Built 1999     97.8 %   1,818,410   Dillard's, Macy's, JCPenney, Belk, Dick's Sporting Goods, Barnes & Noble, Haverty's Furniture, Regal Cinema, Von Maur (6)
52.   Mall of New Hampshire, The   NH   Manchester   Fee     56.4 % (4) Acquired 1999     94.8 %   812,279   Macy's, JCPenney, Sears, Best Buy, AC Moore (15)
53.   McCain Mall   AR   N. Little Rock   Fee     100.0 % Built 1973     94.6 %   795,778   Dillard's, JCPenney, Sears, Regal Cinema
54.   Meadowood Mall   NV   Reno   Fee     50.0 % (4) Acquired 2007     94.6 %   844,614   Macy's (9), Sears, JCPenney, Dick's Sporting Goods (6)
55.   Menlo Park Mall   NJ   Edison (New York)   Fee     100.0 % Acquired 1997     97.1 %   1,334,285   Nordstrom, Macy's, Barnes & Noble, AMC Dine-In Theatre
56.   Miami International Mall   FL   Miami   Fee     47.8 % (4) Built 1982     95.9 %   1,083,419   Macy's (9), JCPenney, Sears, Kohl's
57.   Midland Park Mall   TX   Midland   Fee     100.0 % Built 1980     98.7 %   622,024   Dillard's (9), JCPenney, Sears, Bealls, Ross
58.   Miller Hill Mall   MN   Duluth   Fee     100.0 % Built 1973     97.9 %   832,509   JCPenney, Sears, Younkers, Barnes & Noble, DSW, Dick's Sporting Goods
59.   Montgomery Mall   PA   North Wales (Philadelphia)   Fee     79.4 % Acquired 2003     87.8 %   1,102,982   Macy's, JCPenney, Sears, Dick's Sporting Goods, Wegmans
60.   North East Mall   TX   Hurst (Dallas)   Fee     100.0 % Built 1971     97.4 %   1,669,001   Nordstrom, Dillard's, Macy's, JCPenney, Sears, Dick's Sporting Goods, Rave Theatre
61.   Northgate Mall   WA   Seattle   Fee     100.0 % Acquired 1987     97.5 %   1,046,088   Nordstrom, Macy's, JCPenney, Barnes & Noble, Bed Bath & Beyond, DSW, Nordstrom Rack
62.   Northshore Mall   MA   Peabody (Boston)   Fee     56.4 % (4) Acquired 1999     92.0 %   1,591,263   JCPenney, Sears, Nordstrom, Macy's (9), Barnes & Noble, Toys 'R Us, Shaw's Grocery, The Container Store, DSW
63.   Ocean County Mall   NJ   Toms River (New York)   Fee     100.0 % Acquired 1998     94.6 %   898,150   Macy's, Boscov's, JCPenney, Sears
64.   Orland Square   IL   Orland Park (Chicago)   Fee     100.0 % Acquired 1997     97.8 %   1,231,807   Macy's, Carson's, JCPenney, Sears, Dave & Buster's
65.   Oxford Valley Mall   PA   Langhorne (Philadelphia)   Fee     85.5 % Acquired 2003     94.5 %   1,331,501   Macy's, JCPenney, Sears, United Artists Theatre, (8)
66.   Penn Square Mall   OK   Oklahoma City   Ground Lease (2060)     94.5 % Acquired 2002     99.0 %   1,063,417   Macy's, Dillard's (9), JCPenney, AMC Theatres
67.   Pheasant Lane Mall   NH   Nashua       0.0 % (14) Acquired 2002     95.5 %   979,338   JCPenney, Sears, Target, Macy's, Dick's Sporting Goods
68.   Phipps Plaza   GA   Atlanta   Fee     100.0 % Acquired 1998     92.0 %   829,430   Saks Fifth Avenue, Nordstrom, Belk, AMC Theatres, Arhaus Furniture, Legoland Discovery Center
69.   Plaza Carolina   PR   Carolina (San Juan)   Fee     100.0 % Acquired 2004     93.0 %   1,157,878   JCPenney, Sears, Tiendas Capri, Econo, Best Buy, T.J. Maxx, DSW, Sports Authority

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
70.    Prien Lake Mall   LA   Lake Charles   Fee and Ground Lease (2040) (7)     100.0 % Built 1972     98.9 %   848,573   Dillard's, JCPenney, Sears, Cinemark Theatres, Kohl's, Dick's Sporting Goods
71.   Quaker Bridge Mall   NJ   Lawrenceville   Fee     50.0 % (4) Acquired 2003     90.8 %   1,083,990   Macy's, Lord & Taylor, JCPenney, Sears
72.   Rockaway Townsquare   NJ   Rockaway (New York)   Fee     100.0 % Acquired 1998     94.6 %   1,245,671   Macy's, Lord & Taylor, JCPenney, Sears, Raymour & Flanigan (6)
73.   Roosevelt Field   NY   Garden City (New York)   Fee and Ground Lease (2090) (7)     100.0 % Acquired 1998     94.3 %   2,266,455   Bloomingdale's (9), Nordstrom, Macy's, JCPenney, Dick's Sporting Goods, AMC Entertainment, XSport Fitness, Neiman Marcus (6)
74.   Ross Park Mall   PA   Pittsburgh   Fee     100.0 % Built 1986     99.0 %   1,245,828   JCPenney, Sears, Nordstrom, L.L. Bean, Macy's, Crate & Barrel
75.   Santa Rosa Plaza   CA   Santa Rosa   Fee     100.0 % Acquired 1998     93.2 %   692,405   Macy's, Sears, Forever 21
76.   Shops at Chestnut Hill, The   MA   Chestnut Hill (Boston)   Fee     94.4 % Acquired 2002     98.0 %   468,492   Bloomingdale's (9)
77.   Shops at Nanuet, The   NY   Nanuet   Fee     100.0 % Redeveloped 2013     99.6 %   757,928   Macy's, Sears, Fairway Market, Regal Cinema, 24 Hour Fitness
78.   Shops at Mission Viejo, The   CA   Mission Viejo (Los Angeles)   Fee     51.0 % (4) Built 1979     96.7 %   1,151,720   Nordstrom, Macy's (9), Forever 21
79.   Shops at Riverside, The   NJ   Hackensack (New York)   Fee     100.0 % Acquired 2007     95.9 %   659,665   Bloomingdale's, Barnes & Noble, Arhaus Furniture, AMC Theatre (6)
80.   Smith Haven Mall   NY   Lake Grove (New York)   Fee     25.0 % (4)(2) Acquired 1995     94.2 %   1,300,230   Macy's (9), JCPenney, Sears, Dick's Sporting Goods, Barnes & Noble
81.   Solomon Pond Mall   MA   Marlborough (Boston)   Fee     56.4 % (4) Acquired 1999     95.5 %   886,479   Macy's, JCPenney, Sears, Regal Cinema
82.   South Hills Village   PA   Pittsburgh   Fee     100.0 % Acquired 1997     97.1 %   1,120,615   Macy's (9), Sears, Barnes & Noble, Carmike Cinemas, Dick's Sporting Goods, Target, DSW, Ulta
83.   South Shore Plaza   MA   Braintree (Boston)   Fee     100.0 % Acquired 1998     95.3 %   1,588,916   Macy's, Lord & Taylor, Sears, Nordstrom, Target, DSW, Primark (6)
84.   Southdale Center   MN   Edina (Minneapolis)   Fee     100.0 % Acquired 2007     91.2 %   1,297,421   Macy's, JCPenney, AMC Theatres, Herberger's, Gordmans, Dave & Buster's
85.   SouthPark   NC   Charlotte   Fee and Ground Lease (2040) (10)     100.0 % Acquired 2002     99.2 %   1,676,152   Neiman Marcus, Nordstrom, Macy's, Dillard's, Belk, Dick's Sporting Goods, Crate & Barrel, The Container Store
86.   Southridge Mall   WI   Greendale (Milwaukee)   Fee     100.0 % Acquired 2007     97.8 %   1,177,109   JCPenney, Sears, Kohl's, Boston Store, Macy's
87.   Springfield Mall (1)   PA   Springfield (Philadelphia)   Fee     50.0 % (4) Acquired 2005     88.1 %   610,576   Macy's, Target
88.   Square One Mall   MA   Saugus (Boston)   Fee     56.4 % (4) Acquired 1999     95.0 %   929,848   Macy's, Sears, Best Buy, T.J. Maxx N More, Dick's Sporting Goods, WOW! Work Out World
89.   St. Charles Towne Center   MD   Waldorf (Washington, DC)   Fee     100.0 % Built 1990     98.5 %   980,618   Macy's (9), JCPenney, Sears, Kohl's, Dick Sporting Goods, AMC Theatres
90.   St. Johns Town Center   FL   Jacksonville   Fee     50.0 % (4) Built 2005     100.0 %   1,390,791   Nordstrom, Dillard's, Arhaus Furniture, Dick's Sporting Goods, Barnes & Noble, Target, Ashley Furniture Home Store, Ross, Staples, DSW, JoAnn Fabrics, PetsMart
91.   Stanford Shopping Center (13)   CA   Palo Alto (San Jose)   Ground Lease (2054)     94.4 % (12) Acquired 2003     99.4 %   1,230,537   Neiman Marcus, Bloomingdale's, Nordstrom, Macy's (9), Crate and Barrel, The Container Store
92.   Stoneridge Shopping Center   CA   Pleasanton (San Francisco)   Fee     49.9 % (4) Acquired 2007     99.7 %   1,299,419   Macy's (9), Nordstrom, Sears, JCPenney
93.   Summit Mall   OH   Akron   Fee     100.0 % Built 1965     89.2 %   777,669   Dillard's (9), Macy's
94.   Tacoma Mall   WA   Tacoma (Seattle)   Fee     100.0 % Acquired 1987     93.3 %   1,334,694   Nordstrom, Macy's, JCPenney, Sears, Dick's Sporting Goods (6)

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
95.    Tippecanoe Mall   IN   Lafayette   Fee     100.0 % Built 1973     93.5 %   862,740   Macy's, JCPenney, Sears, Kohl's, Dick's Sporting Goods, hhgregg
96.   Town Center at Boca Raton   FL   Boca Raton (Miami)   Fee     100.0 % Acquired 1998     99.8 %   1,779,736   Saks Fifth Avenue, Neiman Marcus, Bloomingdale's, Nordstrom, Macy's, Sears, Crate & Barrel, The Container Store
97.   Town Center at Cobb   GA   Kennesaw (Atlanta)   Fee     100.0 % Acquired 1998     95.8 %   1,280,866   Belk, Macy's (9), JCPenney, Sears
98.   Towne East Square   KS   Wichita   Fee     100.0 % Built 1975     93.1 %   1,134,758   Dillard's, Von Maur, JCPenney, Sears
99.   Treasure Coast Square   FL   Jensen Beach   Fee     100.0 % Built 1987     93.3 %   876,257   Macy's, Dillard's, JCPenney, Sears, hhgregg, Regal Cinema
100.   Tyrone Square   FL   St. Petersburg (Tampa)   Fee     100.0 % Built 1972     98.9 %   1,100,081   Macy's, Dillard's, JCPenney, Sears, DSW, Cobb 10 Luxury Theatres (6)
101.   University Park Mall   IN   Mishawaka   Fee     100.0 % Built 1979     97.2 %   918,929   Macy's, JCPenney, Sears, Barnes & Noble
102.   Walt Whitman Shops   NY   Huntington Station (New York)   Fee and Ground Lease (2032) (7)     100.0 % Acquired 1998     98.5 %   1,089,488   Saks Fifth Avenue, Bloomingdale's, Lord & Taylor, Macy's, Zara
103.   West Town Mall   TN   Knoxville   Ground Lease (2042)     50.0 % (4) Acquired 1991     99.1 %   1,341,351   Belk (9), Dillard's, JCPenney, Sears, Regal Cinema
104.   Westchester, The   NY   White Plains (New York)   Fee     40.0 % (4) Acquired 1997     99.5 %   820,643   Neiman Marcus, Nordstrom, Crate and Barrel
105.   White Oaks Mall   IL   Springfield   Fee     80.7 % Built 1977     88.7 %   930,118   Macy's, Bergner's, Sears, Dick's Sporting Goods, hhgregg, LA Fitness
106.   Wolfchase Galleria   TN   Memphis   Fee     94.5 % Acquired 2002     97.5 %   1,151,673   Macy's, Dillard's, JCPenney, Sears, Malco Theatres
107.   Woodfield Mall   IL   Schaumburg (Chicago)   Fee     50.0 % (4) Acquired 2012     95.8 %   2,172,176   Nordstrom, Macy's, Lord & Taylor, JCPenney, Sears, Arhaus Furniture, Level 257
108.   Woodland Hills Mall   OK   Tulsa   Fee     94.5 % Acquired 2002     97.0 %   1,091,346   Macy's, Dillard's, JCPenney, Sears
    Total Mall GLA                                 122,723,550 (16)  

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
    Premium Outlets                                      
1.    Albertville Premium Outlets   MN   Albertville (Minneapolis)   Fee     100.0 % Acquired 2004     94.9 %   429,061   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, Guess, Kenneth Cole, Loft Outlet, Lululemon, Michael Kors, Nike, Polo Ralph Lauren, Tommy Hilfiger, The North Face, Under Armour
2.   Allen Premium Outlets   TX   Allen (Dallas)   Fee     100.0 % Acquired 2004     97.0 %   441,781   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Columbia Sportswear, Gap Outlet, Guess, J.Crew, Lacoste, Last Call by Neiman Marcus, Michael Kors, Nike, Polo Ralph Lauren, Tommy Hilfiger
3.   Aurora Farms Premium Outlets   OH   Aurora (Cleveland)   Fee     100.0 % Acquired 2004     94.7 %   285,309   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Tommy Hilfiger, Under Armour
4.   Birch Run Premium Outlets   MI   Birch Run (Detroit)   Fee     100.0 % Acquired 2010     90.6 %   680,612   Adidas, Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Guess, J.Crew, Lacoste, Nike, Polo Ralph Lauren, Puma, Tommy Hilfiger, The North Face
5.   Calhoun Premium Outlets   GA   Calhoun   Fee     100.0 % Acquired 2010     94.1 %   254,062   Ann Taylor, Carter's, Coach, Gap Outlet, Gymboree, Nike, Polo Ralph Lauren, Tommy Hilfiger
6.   Camarillo Premium Outlets   CA   Camarillo (Los Angeles)   Fee     100.0 % Acquired 2004     100.0 %   675,334   Ann Taylor, Armani Outlet, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Diesel, Hugo Boss, Last Call by Neiman Marcus, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Tommy Hilfiger, Tory Burch
7.   Carlsbad Premium Outlets   CA   Carlsbad (San Diego)   Fee     100.0 % Acquired 2004     100.0 %   289,412   Adidas, Banana Republic, BCBG Max Azria, Calvin Klein, Coach, Cole Haan, DKNY, Elie Tahari, Gap Outlet, Lacoste, Michael Kors, Nike, Polo Ralph Lauren, Theory, Under Armour, Vince
8.   Carolina Premium Outlets   NC   Smithfield (Raleigh)   Fee     100.0 % Acquired 2004     97.7 %   438,815   Adidas, Banana Republic, Brooks Brothers, Coach, Gap Outlet, J.Crew, Levi's, Nike, Polo Ralph Lauren, Talbots, Tommy Hilfiger, Under Armour
9.   Charlotte Premium Outlets   NC   Charlotte   Fee     50.0 %(4) Built 2014     98.7 %   398,692   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Cole Haan, Gap Outlet, Kate Spade, Michael Kors, Nike, Saks Fifth Avenue Off 5th, Under Armour
10.   Chicago Premium Outlets   IL   Aurora (Chicago)   Fee     100.0 % Built 2004     87.1 %   688,447   Abercrombie & Fitch, Adidas, Ann Taylor, Armani Outlet, A/X Armani Exchange, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Columbia Sportswear, Diesel, Gap Outlet, J.Crew, Kate Spade New York, Lacoste, Max Mara, Michael Kors, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Tag Heuer, Theory, Under Armour, Vera Bradley
11.   Cincinnati Premium Outlets   OH   Monroe (Cincinnati)   Fee     100.0 % Built 2009     98.5 %   398,729   Adidas, Banana Republic, Brooks Brothers, Coach, Cole Haan, Gap Outlet, J.Crew, Lacoste, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Tommy Hilfiger, The North Face
12.   Clinton Crossing Premium Outlets   CT   Clinton   Fee     100.0 % Acquired 2004     98.4 %   276,227   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, DKNY, Gap Outlet, J.Crew, Lucky Brand, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Talbots, Tommy Hilfiger, Tumi, Under Armour, Vera Bradley
13.   Columbia Gorge Premium Outlets   OR   Troutdale (Portland)   Fee     100.0 % Acquired 2004     88.8 %   163,741   Adidas, Carter's, Coach, Eddie Bauer, Gap Outlet, Gymboree, Levi's, Tommy Hilfiger
14.   Desert Hills Premium Outlets (13)   CA   Cabazon (Palm Springs)   Fee     100.0 % Acquired 2004     99.7 %   651,065   Alexander McQueen, Armani Outlet, Burberry, Coach, Gucci, Lacoste, Last Call by Neiman Marcus, Marc Jocobs, Nike, Polo Ralph Lauren, Prada, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Theory, Tory Burch, True Religion, Yves Saint Laurent, Zegna
15.   Edinburgh Premium Outlets   IN   Edinburgh (Indianapolis)   Fee     100.0 % Acquired 2004     98.0 %   377,734   Abercrombie & Fitch, Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Calvin Klein, Coach, Express, Gap Outlet, J.Crew, Levi's, Michael Kors, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour, White House Black Market
16.   Ellenton Premium Outlets   FL   Ellenton (Tampa)   Fee     100.0 % Acquired 2010     98.8 %   476,481   Ann Taylor, Adidas, Banana Republic, Calvin Klein, Coach, DKNY, J.Crew, Kate Spade New York, Kenneth Cole, Lacoste, Lucky Brand, Michael Kors, Movado, Nike, Puma, Saks Fifth Avenue Off 5th

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
17.    Folsom Premium Outlets   CA   Folsom (Sacramento)   Fee     100.0 % Acquired 2004     97.3 %   297,778   Adidas, BCBG Max Azria, Banana Republic, Calvin Klein, Coach, Eddie Bauer, Gap Outlet, Guess, Kenneth Cole, Loft Outlet, Nike, Tommy Hilfiger
18.   Gaffney Premium Outlets   SC   Gaffney (Greenville/Charlotte)   Fee     100.0 % Acquired 2010     95.0 %   359,839   Adidas, Ann Taylor, Banana Republic, Azria, Brooks Brothers, Coach, Gap Outlet, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Under Armour
19.   Gilroy Premium Outlets   CA   Gilroy (San Jose)   Fee     100.0 % Acquired 2004     97.0 %   578,172   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Elie Tahari, Hugo Boss, J.Crew, Lululemon, Michael Kors, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, The North Face, Tommy Hilfiger, True Religion
20.   Gloucester Premium Outlets   NJ   Blackwood (Philadelphia)   Fee     50.0 %(4) Built 2015     90.2 %   369,652   Adidas, American Eagle Outfitters, Armani Outlet, A/X Armani Exchange, Banana Republic, Calvin Klein, Columbia Sportswear, Express, Gap Outlet, Guess, Levi's, J. Crew, Loft Outlet, Nautica, Nike, Puma, Reebok, Tommy Hilfiger, Under Armour
21.   Grand Prairie Premium Outlets   TX   Grand Prairie (Dallas)   Fee     100.0 % Built 2012     97.5 %   417,177   Bloomingdale's The Outlet Store, Coach, Cole Haan, Hugo Boss, Kate Spade New York, J.Crew, Lucky Brand, Michael Kors, Nike, Saks Fifth Avenue Off 5th, Talbots, Tommy Hilfiger, Under Armour
22.   Grove City Premium Outlets   PA   Grove City (Pittsburgh)   Fee     100.0 % Acquired 2010     100.0 %   531,289   American Eagle Outfitters, Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, J.Crew, Nike, Polo Ralph Lauren, The North Face, Under Armour, Vera Bradley
23.   Gulfport Premium Outlets   MS   Gulfport   Ground Lease (2059)     100.0 % Acquired 2010     96.3 %   300,238   Ann Taylor, Banana Republic, BCBG Max Azria, Coach, Gap Outlet, J.Crew, Nike, Polo Ralph Lauren, Talbots, Tommy Hilfiger, Under Armour
24.   Hagerstown Premium Outlets   MD   Hagerstown (Baltimore/Washington, DC)   Fee     100.0 % Acquired 2010     91.4 %   485,004   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, Guess, J.Crew, Kate Spade New York, Loft Outlet, Nike, The North Face, Tommy Hilfiger, Under Armour
25.   Houston Premium Outlets   TX   Cypress (Houston)   Fee     100.0 % Built 2008     98.9 %   541,832   Ann Taylor, A/X Armani Exchange, Banana Republic, Burberry, Calvin Klein, Coach, Cole Haan, DKNY, Elie Tahari, Gap Outlet, J.Crew, Lucky Brand, Michael Kors, Nike, Saks Fifth Avenue Off 5th, Tommy Hilfiger, Tory Burch, Vera Bradley
26.   Jackson Premium Outlets   NJ   Jackson (New York)   Fee     100.0 % Acquired 2004     98.1 %   285,498   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, J.Crew, Loft Outlet, Lucky Brand, Nike, Polo Ralph Lauren, Reebok, Talbots, Timberland, Tommy Hilfiger, Under Armour
27.   Jersey Shore Premium Outlets   NJ   Tinton Falls (New York)   Fee     100.0 % Built 2008     100.0 %   434,389   Adidas, American Eagle Outfitters, Ann Taylor, A/X Armani Exchange, Banana Republic, Burberry, Brooks Brothers, Coach, Cole Haan, Columbia Sportswear, Diesel, DKNY, Eddie Bauer, Elie Tahari, Guess, J.Crew, Kate Spade New York, Lacoste, Lucky Brand, Michael Kors, Nike, Talbots, Theory, Tommy Hilfiger, True Religion, Under Armour, Ugg
28.   Johnson Creek Premium Outlets   WI   Johnson Creek   Fee     100.0 % Acquired 2004     95.1 %   276,373   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Calvin Klein, Columbia Sportswear, Eddie Bauer, Gap Outlet, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
29.   Kittery Premium Outlets   ME   Kittery   Fee and Ground Lease (2049) (7)     100.0 % Acquired 2004     92.3 %   259,174   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Calvin Klein, Chico's, Coach, Columbia Sportswear, Gap Outlet, J.Crew, Movado, Nike, Polo Ralph Lauren, Reebok, Tommy Hilfiger
30.   Las Americas Premium Outlets   CA   San Diego   Fee     100.0 % Acquired 2007     97.5 %   555,800   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, Guess, Hugo Boss, J.Crew, Nike, Polo Ralph Lauren, Reebok, Tommy Bahama, Tommy Hilfiger, True Religion, Under Armour

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
31.    Las Vegas North Premium Outlets   NV   Las Vegas   Fee     100.0 % Built 2003     99.3 %   675,616   Armani Outlet, A/X Armani Exchange, Ann Taylor, Banana Republic, Burberry, Coach, David Yurman, Diesel, Dolce & Gabbana, Elie Tahari, Etro, Hugo Boss, Lacoste, Last Call by Neiman Marcus, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, St. John, TAG Heuer, Ted Baker, True Religion
32.   Las Vegas South Premium Outlets   NV   Las Vegas   Fee     100.0 % Acquired 2004     100.0 %   535,407   Adidas, Ann Taylor, Banana Republic, Bose, Brooks Brothers, Calvin Klein, Coach, DKNY, Gap Outlet, Kenneth Cole, Levi's, Michael Kors, Nike, Polo Ralph Lauren, Reebok, Tommy Hilfiger, Under Armour, Vera Bradley
33.   Lebanon Premium Outlets   TN   Lebanon (Nashville)   Fee     100.0 % Acquired 2010     93.3 %   227,283   Ann Taylor, Brooks Brothers, Coach, Eddie Bauer, Gap Outlet, Loft Outlet, Nike, Polo Ralph Lauren, Reebok, Samsonite
34.   Lee Premium Outlets   MA   Lee   Fee     100.0 % Acquired 2010     96.4 %   224,825   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Chico's, Coach, Cole Haan, J.Crew, Lacoste, Levi's, Michael Kors, Nike, Polo Ralph Lauren, Talbots, Tommy Hilfiger, Under Armour
35.   Leesburg Corner Premium Outlets   VA   Leesburg (Washington, DC)   Fee     100.0 % Acquired 2004     97.6 %   478,217   Ann Taylor, Armani Outlet, Brooks Brothers, Burberry, Coach, Columbia Sportswear, Diesel, DKNY, Elie Tahari, Hugo Boss, Lacoste, Nike, Polo Ralph Lauren, Restoration Hardware, Saks Fifth Avenue Off 5th, Under Armour, Vera Bradley, Williams-Sonoma
36.   Liberty Village Premium Outlets   NJ   Flemington (New York)   Fee     100.0 % Acquired 2004     77.8 %   162,239   American Eagle Outfitters, Ann Taylor, Brooks Brothers, Calvin Klein, Coach, G.H. Bass & Co., J.Crew, Michael Kors, Polo Ralph Lauren, Timberland
37.   Lighthouse Place Premium Outlets   IN   Michigan City (Chicago, IL)   Fee     100.0 % Acquired 2004     99.0 %   454,730   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Calvin Klein, Coach, Columbia Sportswear, Gap Outlet, Guess, Hollister, J.Crew, Movado, Nike, Polo Ralph Lauren, The North Face, Tommy Hilfiger, Under Armour
38.   Merrimack Premium Outlets   NH   Merrimack   Fee     100.0 % Built 2012     98.6 %   408,996   Ann Taylor, Banana Republic, Bloomingdale's The Outlet Store, 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, Under Armour, White House Black Market
39.   Napa Premium Outlets   CA   Napa   Fee     100.0 % Acquired 2004     96.5 %   179,176   Ann Taylor, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Gap Outlet, J.Crew, Lucky Brand, Michael Kors, Polo Ralph Lauren, Tommy Hilfiger
40.   North Bend Premium Outlets   WA   North Bend (Seattle)   Fee     100.0 % Acquired 2004     96.4 %   223,561   Banana Republic, Carter's, Coach, Eddie Bauer, Gap Outlet, Nike, PacSun, Under Armour, Van Heusen, VF Outlet
41.   North Georgia Premium Outlets   GA   Dawsonville (Atlanta)   Fee     100.0 % Acquired 2004     97.9 %   540,310   Ann Taylor, Armani Outlet, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Elie Tahari, Hugo Boss, J.Crew, Kate Spade, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, Saks Fifth Avenue Off 5th, Talbots, The North Face, Tommy Hilfiger, Williams-Sonoma
42.   Orlando International Premium Outlets   FL   Orlando   Fee     100.0 % Acquired 2010     99.7 %   773,455   7 For All Mankind, Adidas, Banana Republic, Calvin Klein, Coach, DKNY, J.Crew, Kate Spade, Kenneth Cole, Lacoste, Last Call by Neiman Marcus, Michael Kors, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, The North Face, Tommy Hilfiger, True Religion, Victoria's Secret
43.   Orlando Vineland Premium Outlets   FL   Orlando   Fee     100.0 % Acquired 2004     97.0 %   656,610   Adidas, Armani Outlet, A/X Armani Exchange, Brunello Cucinelli, Burberry, Calvin Klein, Carolina Herrera, Coach, Cole Haan, Diesel, Fendi, Hugo Boss, J.Crew, Lacoste, Michael Kors, Nike, Prada, Polo Ralph Lauren, Roberto Cavalli, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, TAG Heuer, The North Face, Tod's, Tory Burch, Vera Bradley, Zegna

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
44.    Osage Beach Premium Outlets   MO   Osage Beach   Fee     100.0 % Acquired 2004     86.6 %   390,311   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Eddie Bauer, Gap Outlet, Levi's, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
45.   Petaluma Village Premium Outlets   CA   Petaluma (San Francisco)   Fee     100.0 % Acquired 2004     100.0 %   201,666   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Coach, Gap Outlet, Nike, Puma, Saks Fifth Avenue Off 5th, Tommy Hilfiger
46.   Philadelphia Premium Outlets   PA   Limerick (Philadelphia)   Fee     100.0 % Built 2007     99.1 %   549,137   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Diesel, Elie Tahari, Gap Outlet, Guess, J.Crew, Last Call by Neiman Marcus, Loft Outlet, Michael Kors, Movado, Nike, Polo Ralph Lauren, Puma, Restoration Hardware, Theory, Under Armour, Vera Bradley, Ugg
47.   Phoenix Premium Outlets   AZ   Chandler (Phoenix)   Ground Lease (2077)     100.0 % Built 2013     97.7 %   356,497   Banana Republic, Brooks Brothers, Calvin Klein, Coach, Elie Tahari, Gap Factory Store, Hugo Boss, Lucky Brand, Michael Kors, Nike, Saks Fifth Avenue Off 5th, Tommy Bahama, Tommy Hilfiger, Under Armour
48.   Pismo Beach Premium Outlets   CA   Pismo Beach   Fee     100.0 % Acquired 2010     100.0 %   147,416   Calvin Klein, Carter's, Coach, Guess, Levi's, Nike, Nine West, Quiksilver, Skechers, Tommy Hilfiger, Van Heusen
49.   Pleasant Prairie Premium Outlets   WI   Pleasant Prairie (Chicago, IL/Milwaukee)   Fee     100.0 % Acquired 2010     96.3 %   402,537   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Gap Outlet, Hugo Boss, Kate Spade, J.Crew, Lacoste, Loft Outlet, Michael Kors, Nike, Polo Ralph Lauren, St. John, The North Face, Under Armour, Ugg
50.   Puerto Rico Premium Outlets   PR   Barceloneta   Fee     100.0 % Acquired 2010     97.3 %   350,005   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, BCBG Max Azria, Calvin Klein, Coach, Disney Store Outlet, Gap Outlet, Guess, Kenneth Cole, Lacoste, Loft Outlet, Michael Kors, Nike, Polo Ralph Lauren, Puma, Tommy Hilfiger
51.   Queenstown Premium Outlets   MD   Queenstown (Baltimore)   Fee     100.0 % Acquired 2010     95.4 %   289,547   Adidas, Banana Republic, BCBG Max Azria, Brooks Brothers, Calvin Klein, Coach, Columbia Sportswear, J.Crew, Kate Spade New York, Loft Outlet, Michael Kors, Nike, Polo Ralph Lauren, St. John, Talbots, Tommy Bahama, Under Armour
52.   Rio Grande Valley Premium Outlets   TX   Mercedes (McAllen)   Fee     100.0 % Built 2006     98.9 %   604,105   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, BCBG Max Azria, Burberry, Calvin Klein, Coach, DKNY, Express, Gap Outlet, Guess, Hugo Boss, Loft Outlet, Nike, Polo Ralph Lauren, Saks Fifth Avenue Off 5th, Tommy Hilfiger, True Religion, Under Armour, VF Outlet
53.   Round Rock Premium Outlets   TX   Round Rock (Austin)   Fee     100.0 % Built 2006     98.0 %   488,678   Adidas, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Gap Outlet, Guess, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Tommy Hilfiger, Under Armour
54.   San Francisco Premium Outlets   CA   Livermore (San Francisco)   Fee and Ground Lease (2021) (10)     100.0 % Built 2012     96.3 %   696,980   All Saints, A/X Armani Exchange, Bloomingdale's The Outlet Store, CH Carolina Herrera, Coach, Gucci, Kate Spade New York, J.Crew, Lacoste, Last Call by Neiman Marcus, MaxMara, Michael Kors, Prada, Saks Fifth Avenue Off 5th, Ted Baker, The North Face, Tommy Hilfiger, Tory Burch, Versace, Vince
55.   San Marcos Premium Outlets   TX   San Marcos (Austin/San Antonio)   Fee     100.0 % Acquired 2010     99.4 %   732,273   Banana Republic, Cole Haan, Diane Von Furstenberg, Gucci, Hugo Boss, J. Crew, Kate Spade, Lacoste, Last Call by Neiman Marcus, Michael Kors, Pottery Barn, Prada, Restoration Hardware, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, The North Face, Tommy Bahama, Ugg, Victoria's Secret

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
56.    Seattle Premium Outlets   WA   Tulalip (Seattle)   Ground Lease (2079)     100.0 % Built 2005     98.7 %   554,809   Abercrombie, Adidas, Ann Taylor, Banana Republic, Burberry, Calvin Klein, Coach, Elie Tahari, Hugo Boss, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, The North Face, Tommy Bahama, Tommy Hilfiger, Under Armour
57.   Silver Sands Premium Outlets   FL   Destin   Fee     50.0 %(4) Acquired 2012     93.7 %   451,219   Adidas, American Eagle Outfitters, Ann Taylor, Armani Outlet, Banana Republic, Brooks Brothers, Coach, Cole Haan, Columbia Sportswear, Dooney & Bourke, J.Crew, Michael Kors, Movado, Nike, Saks Fifth Avenue Off 5th, The North Face, Tommy Hilfiger, Under Armour
58.   St. Augustine Premium Outlets   FL   St. Augustine (Jacksonville)   Fee     100.0 % Acquired 2004     96.3 %   329,059   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, J.Crew, Movado, Nike, Polo Ralph Lauren, Puma, Reebok, Tommy Bahama, Tommy Hilfiger, Under Armour
59.   St. Louis Premium Outlets   MO   St. Louis (Chesterfield)   Fee     60.0 %(4) Built 2013     99.0 %   351,513   Ann Taylor, BCBG Max Azria, Coach, Columbia Sportswear, Crabtree & Evelyn, Elie Tahari, J. Crew, Kate Spade New York, Michael Kors, Nike, Saks Fifth Avenue Off 5th, St. John, Tommy Hilfiger, Ugg, Under Armour, Vera Bradley
60.   Tampa Premium Outlets   FL   Lutz (Tampa)   Fee     100.0 % Built 2015     90.7 %   441,248   Adidas, American Eagle Outfitters, Ann Taylor, Banana Rebublic, Brooks Brothers, Calvin Klein, Coach, Cole Hahn, Columbia Sportswear, Gap Outlet, Guess, J. Crew, Lucky Brand, Michael Kors, Nike, Polo Ralph Lauren, Puma, Reebok, Saks 5th Avenue Off 5th, Tommy Hilfiger, Under Armour, Vera Bradley
61.   Tanger Outlets — Galveston/Houston (1)   TX   Texas City   Fee     50.0 %(4) Built 2012     96.3 %   352,705   Banana Republic, Brooks Brothers, Coach, Gap Outlet, J. Crew, Kenneth Cole, Michael Kors, Nike, Reebok, Tommy Hilfiger, White House Black Market
62.   The Crossings Premium Outlets   PA   Tannersville   Fee and Ground Lease (2019) (7)     100.0 % Acquired 2004     98.3 %   411,717   Abercrombie & Fitch, Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Cole Haan, Guess, J.Crew, Kate Spade, Nike, Polo Ralph Lauren, The North Face, Timberland, Tommy Hilfiger, Under Armour
63.   Tucson Premium Outlets   AZ   Marana (Tucson)   Fee     100.0 % Built 2015     84.6 %   367,192   Adidas, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Express, Forever 21, Gap Outlet, Guess, J. Crew, Levi's, Michael Kors, Nike, Saks 5th Avenue Off 5th, Skechers, Tommy Hilfiger, Under Armour
64.   Twin Cities Premium Outlets   MN   Eagan   Fee     35.0 %(4) Built 2014     99.2 %   408,944   Adidas, Ann Taylor, Armani Outlet, Banana Republic, Brooks Brothers, Calvin Klein, Coach, Gap Outlet, J. Crew, Michael Kors, Movado, Nike, Robert Graham, Saks Fifth Avenue Off 5th, Talbots, True Religion, Under Armour, Vera Bradley
65.   Vacaville Premium Outlets   CA   Vacaville   Fee     100.0 % Acquired 2004     99.0 %   440,113   Adidas, Ann Taylor, Banana Republic, Calvin Klein, Coach, Cole Haan, Columbia Sportswear, DKNY, Gucci, J.Crew, Michael Kors, Nike, Polo Ralph Lauren, Restoration Hardware, Tommy Bahama, Tommy Hilfiger
66.   Waikele Premium Outlets (13)   HI   Waipahu (Honolulu)   Fee     100.0 % Acquired 2004     95.5 %   219,144   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

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
67.    Waterloo Premium Outlets   NY   Waterloo   Fee     100.0 % Acquired 2004     96.8 %   417,823   Ann Taylor, Banana Republic, Brooks Brothers, Calvin Klein, Chico's, Coach, Columbia Sportswear, Gap Outlet, J.Crew, Levi's, Loft Outlet, Nike, Polo Ralph Lauren, Puma, Talbots, Timberland, Tommy Hilfiger, Under Armour, VF Outlet
68.   Williamsburg Premium Outlets   VA   Williamsburg   Fee     100.0 % Acquired 2010     96.6 %   522,201   Adidas, American Eagle Outfitters, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, Columbia Sportswear, Dooney & Bourke, Hugo Boss, J.Crew, Kate Spade New York, Loft Outlet, Lucky Brand, Michael Kors, Nike, Polo Ralph Lauren, Talbots, The North Face, Tommy Bahama, Tommy Hilfiger, True Religion, Under Armour
69.   Woodburn Premium Outlets   OR   Woodburn (Portland)   Fee     100.0 % Acquired 2013     98.7 %   389,732   Adidas, Ann Taylor, Banana Republic, Cole Haan, Eddie Bauer, Fossil, Gap Outlet, J. Crew, Max Studio, Nike, The North Face, Polo Ralph Lauren, Puma, Tommy Hilfiger
70.   Woodbury Common Premium Outlets (13)   NY   Central Valley (New York)   Fee     100.0 % Acquired 2004     97.5 %   869,143   Armani Outlet, Balenciega, Brioni, Brunello Cucinelli, Burberry, Canali, Chloe, Coach, Dior, Dolce & Gabbana, Dunhill, Fendi, Gucci, Hugo Boss, Lacoste, Last Call by Neiman Marcus, Moncler, Nike, Oscar de la Renta, Polo Ralph Lauren, Prada, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Theory, Tod's, Tom Ford, Tory Burch, Valentino, Versace, Yves St. Laurent
71.   Wrentham Village Premium Outlets   MA   Wrentham (Boston)   Fee     100.0 % Acquired 2004     99.6 %   660,091   All Saints, Ann Taylor, Armani Outlet, Banana Republic, Barneys New York, Bloomingdale's The Outlet Store, Brooks Brothers, Burberry, Calvin Klein, Coach, Cole Haan, DKNY, Elie Tahari, Hugo Boss, J. Crew, Kate Spade, Lacoste, Michael Kors, Movado, Nike, Polo Ralph Lauren, Restoration Hardware, Robert Graham, Saks Fifth Avenue Off 5th, Salvatore Ferragamo, Ted Baker, Theory, Tommy Hilfiger, Tory Burch, True Religion, Under Armour, Vineyard Vines
    Total U.S. Premium Outlets GLA                         30,553,947    

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
    The Mills                                      
1.   Arizona Mills   AZ   Tempe (Phoenix)   Fee     100.0 % Acquired 2007     98.5%     1,239,488   Marshalls, Last Call by Neiman Marcus, Burlington Coat Factory, Sears Appliance Outlet, Gameworks (15), Sports Authority, Ross, At Home, Group USA, Harkins Cinemas & IMAX, Sea Life Center, Conn's, Legoland (6)
2.   Arundel Mills   MD   Hanover (Baltimore)   Fee     59.3 % (4) Acquired 2007     100.0%     1,662,860   Bass Pro Shops Outdoor World, 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, Last Call by Neiman Marcus, Saks Fifth Avenue Off 5th, Off Broadway Shoe Warehouse, T.J. Maxx, Cinemark Egyptian 24 Theatres, Maryland Live! Casino, Forever 21
3.   Colorado Mills   CO   Lakewood (Denver)   Fee     37.5 % (4) Acquired 2007     96.5%     1,410,712   Forever 21, Jumpstreet, Last Call by Neiman Marcus, Off Broadway Shoe Warehouse, Saks Fifth Avenue Off 5th, Sports Authority, Super Target, United Artists Theatre, Burlington Coat Factory, H&M
4.   Concord Mills   NC   Concord (Charlotte)   Fee     59.3 % (4) Acquired 2007     99.7%     1,344,807   Bass Pro Shops Outdoor World, Books-A-Million, Burlington Coat Factory, Saks Fifth Avenue Off 5th (15), The Children's Place Outlet, Dave & Buster's, Nike Factory Store, T.J. Maxx, Group USA, Sun & Ski, VF Outlet, Off Broadway Shoes, Bed Bath & Beyond, AMC Theatres, Best Buy, Forever 21, Sea Life Center, H&M (6)
5.   Grapevine Mills   TX   Grapevine (Dallas)   Fee     59.3 % (4) Acquired 2007     98.9%     1,780,928   Bed Bath & Beyond, Burlington Coat Factory, The Children's Place, Group USA, Marshalls, Nike Factory Store, Saks Fifth Avenue Off 5th, AMC Theatres, Sun & Ski Sports, Last Call by Neiman Marcus, Sears Appliance Outlet, Bass Pro Shops Outdoor World, Off Broadway Shoes, VF Outlet, Legoland Discovery Center, Sea Life Center, Ross, H&M, Round 1 Entertainment (6)
6.   Great Mall   CA   Milpitas (San Jose)   Fee     100.0 % Acquired 2007     99.8%     1,365,129   Last Call by Neiman Marcus, Sports Authority, Group USA, Kohl's, Dave & Busters, Sears Appliance Outlet, Burlington Coat Factory, Marshalls, Saks Fifth Avenue Off 5th, Nike Factory Store, Century Theatres, Bed Bath & Beyond, Off Broadway Shoes, Uniqlo
7.   Gurnee Mills   IL   Gurnee (Chicago)   Fee     100.0 % Acquired 2007     97.6%     1,935,843   Bass Pro Shops Outdoor World, Bed Bath & Beyond/Buy Buy Baby, Burlington Coat Factory, Kohl's, Marshalls Home Goods, Saks Fifth Avenue Off 5th, Rinkside, Sears Grand, Sports Authority, T.J. Maxx, VF Outlet, Marcus Cinemas, Last Call by Neiman Marcus, Value City Furniture, Shoppers World, Off Broadway Shoe Warehouse, Macy's
8.   Katy Mills   TX   Katy (Houston)   Fee     62.5 % (4)(2) Acquired 2007     98.9%     1,789,953   Bass Pro Shops Outdoor World, Bed Bath and Beyond, Books-A-Million, Burlington Coat Factory, Jumpstreet, Marshalls, Last Call by Neiman Marcus, Nike Factory Store, Saks Fifth Avenue Off 5th, Sun & Ski Sports, AMC Theatres, Off Broadway Shoes, Tilt, Ross, H&M
9.   Mills at Jersey Gardens, The   NJ   Elizabeth   Fee     100.0 % Acquired 2015     98.8%     1,304,142   Bed Bath & Beyond, Burlington Coat Factory, Century 21 Department Store, Cohoes, Forever 21, Group USA, Last Call Neiman Marcus, Loews Theatres, Marshalls, Modell's, Nike Factory Store, Saks 5th Avenue Off 5th, Tommy Hilfiger, VF Outlet
10.   Ontario Mills   CA   Ontario (Riverside)   Fee     50.0 % (4) Acquired 2007     99.5%     1,366,633   Burlington Coat Factory, Nike Factory Store, Gameworks, The Children's Place Outlet, Marshalls, Saks Fifth Avenue Off 5th, Nordstrom Rack, Dave & Busters, Group USA, Sam Ash Music, Off Broadway Shoes, AMC Theatres, Sports Authority, Forever 21, Last Call by Neiman Marcus (15), Uniqlo (6), (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
11.    Opry Mills   TN   Nashville   Fee     100.0 % Acquired 2007     96.9%     1,153,697   Regal Cinema & IMAX, Dave & Busters, VF Outlet, Sun & Ski, Bass Pro Shops Outdoor World, Forever 21, Bed Bath & Beyond, Saks Fifth Avenue Off 5th, Off Broadway Shoes, H&M
12.   Outlets at Orange, The   CA   Orange (Los Angeles)   Fee     50.0 % (4) Acquired 2007     99.4%     806,295   Dave & Buster's, Vans Skatepark, Lucky Strike Lanes, Saks Fifth Avenue Off 5th, AMC Theatres, Nike Factory Store, Last Call by Neiman Marcus, Off Broadway Shoes, Nordstrom Rack, Sports Authority, H&M, Forever 21
13.   Potomac Mills   VA   Woodbridge (Washington, DC)   Fee     100.0 % Acquired 2007     98.8%     1,530,314   Group USA, Marshalls, T.J. Maxx, Sears Appliance Outlet, JCPenney, Burlington Coat Factory, Off Broadway Shoe Warehouse, Nordstrom Rack, Saks Fifth Avenue Off 5th Outlet, Costco Warehouse, The Children's Place, AMC Theatres, Modell's Sporting Goods, Books-A-Million, H&M, Last Call by Neiman Marcus, XXI Forever, Bloomingdale's Outlet, Buy Buy Baby/and That!
14.   Sawgrass Mills   FL   Sunrise (Miami)   Fee     100.0 % Acquired 2007     96.5%     2,252,947   American Signature Home (15), Bed Bath & Beyond, Brandsmart USA, Burlington Coat Factory, Gameworks, Marshalls, Last Call by Neiman Marcus, Nike Factory Store, Nordstrom Rack, Saks Fifth Avenue Off 5th, Ron Jon Surf Shop, Sports Authority, Super Target, T.J. Maxx (11), Urban Planet, VF Factory Outlet (15), F.Y.E., Off Broadway Shoes, Regal Cinema, Bloomingdale's Outlet, Forever 21, Century 21 Department Store (6), H&M (6)
    Total Mills Properties GLA                         20,943,748    
    Lifestyle Centers                                  
1.   ABQ Uptown   NM   Albuquerque   Fee     100.0 % Acquired 2011     98.9%     230,026    
2.   Hamilton Town Center   IN   Noblesville (Indianapolis)   Fee     50.0 % (4) Built 2008     91.1%     672,896   JCPenney, Dick's Sporting Goods, Stein Mart, Bed Bath & Beyond, DSW, Hamilton 16 IMAX, Earth Fare
3.   Pier Park   FL   Panama City Beach   Fee     65.6 % (4) Built 2008     96.4%     895,790   Dillard's, JCPenney, Target, Grand Theatres, Ron Jon Surf Shop, Margaritaville, Marshalls, Dave & Buster's
4.   University Park Village   TX   Fort Worth   Fee     100.0 % Acquired 2015     100.0%     160,077   Anthropologie, Pottery Barn
    Total Lifestyle Centers GLA                         1,958,789    
    Other Properties                                  
1.   Circle Centre   IN   Indianapolis   Property Lease (2097)     14.7 % (4)(2) Built 1995     89.7%     729,398   Carson's, United Artists Theatre, Indianapolis Star, Nada (6), Punch Bowl Social (6)
2.   Florida Keys Outlet Center   FL   Florida City   Fee     100.0 % Acquired 2010     92.8%     206,325   American Eagle, Carter's, Coach, Gap Outlet, Guess, Nike, Nine West, OshKosh B'gosh, Skechers, Tommy Hilfiger
3.   Greendale Mall   MA   Worcester   Fee and Ground Lease (2019) (7)     56.4 % (4) Acquired 1999     80.1%     428,864   T.J. Maxx 'N More, Best Buy, DSW, Big Lots
4.   Huntley Outlet Center   IL   Huntley   Fee     100.0 % Acquired 2010     56.2%     278,909   Ann Taylor, Banana Republic, Bose, Calvin Klein, Carter's, Eddie Bauer, Gap Outlet, Guess, Reebok, Tommy Hilfiger
5.   Lincoln Plaza   PA   King of Prussia (Philadelphia)   Fee     85.5 % Acquired 2003     100.0%     264,835   AC Moore, Michaels, T.J. Maxx, Home Goods, hhgregg, American Signature Furniture, DSW, Nordstrom Rack (6)
6.   Naples Outlet Center   FL   Naples   Fee     100.0 % Acquired 2010     66.5%     146,047   Ann Taylor, Bass, Coach, L'eggs/Hanes/Bali/Playtex, Loft Outlet, Samsonite, Van Heusen
7.   Outlet Marketplace   FL   Orlando   Fee     100.0 % Acquired 2010     90.4%     199,316   American Eagle, Calvin Klein, Nike, Nine West, Reebok, Skechers
8 - 12.   The Mills Limited Partnership (TMLP)                     Acquired 2007           5,748,472    
    Total Other GLA                         8,002,166    
    Total U.S. Properties GLA                         184,182,200    

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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 to purchase the lessor's interest under an option, right of first refusal or other provision. Unless otherwise indicated, each ground lease listed in this column covers at least 50% of its respective property.

interest under an option, right of first refusal or other provision. 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)
Malls — Executed leases for all company-owned GLA in mall stores, excluding major tenants and anchors. Premium Outlets and The Mills — Executed leases for all company-owned GLA (or total center GLA).

(6)
Indicates anchor or major tenant that is currently under development or has announced plans for development.

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

(8)
Indicates vacant anchor space(s).

(9)
Tenant has multiple locations at this center.

(10)
Indicates ground lease covers outparcel only.

(11)
Tenant has an existing store at this center but will move to a new location.

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

(13)
Property is undergoing an expansion.

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

(15)
Indicates anchor has announced its intent to close this location.

(16)
Mall & Freestanding GLA includes office space. Centers with more than 20,000 square feet of office space are listed below:

Circle Centre — 129,944 sq. ft.
Copley Place — 884,142 sq. ft.
Domain, The — 156,240 sq. ft.
Fashion Centre at Pentagon City, The — 169,089 sq. ft.
Firewheel Town Center — 75,303 sq. ft.
Menlo Park Mall — 49,481 sq. ft.
Oxford Valley Mall — 133,876 sq. ft.
Plaza Carolina — 27,398 sq. ft.
Southdale Center — 20,393 sq. ft.
   

30


Table of Contents

            The following table summarizes lease expiration data for our malls and Premium Outlets located in the United States, including Puerto Rico, as of December 31, 2015. The data presented does not consider the impact of renewal options that may be contained in leases.

U.S. MALLS AND PREMIUM OUTLETS LEASE EXPIRATIONS (1)

Year
  Number of
Leases Expiring
  Square Feet   Avg. Base
Minimum Rent
PSF at 12/31/15
  Percentage of Gross
Annual Rental
Revenues (2)
 

Inline Stores and Freestanding

                         

Month to Month Leases

    445     1,222,938   $ 52.63     1.3 %

2016

    2,170     7,096,525   $ 43.78     6.1 %

2017

    2,588     8,667,329   $ 45.95     7.8 %

2018

    2,404     8,629,006   $ 48.53     8.2 %

2019

    1,894     7,256,147   $ 46.96     6.7 %

2020

    1,696     6,306,093   $ 48.16     5.9 %

2021

    1,356     5,615,580   $ 47.66     5.3 %

2022

    1,490     5,667,409   $ 50.94     5.7 %

2023

    1,699     6,478,381   $ 52.93     6.8 %

2024

    1,529     5,885,487   $ 55.17     6.3 %

2025

    1,492     5,463,717   $ 59.63     6.3 %

2026 and Thereafter

    622     3,314,870   $ 43.42     2.9 %

Specialty Leasing Agreements w/ terms in excess of 12 months

    921     2,385,008   $ 19.73     0.9 %

Anchors

   
 
   
 
   
 
   
 
 

2016

    2     191,285   $ 1.80     0.0 %

2017

    19     2,590,032   $ 3.04     0.1 %

2018

    17     2,177,984   $ 4.60     0.2 %

2019

    20     2,203,190   $ 5.14     0.2 %

2020

    24     2,835,524   $ 4.77     0.3 %

2021

    14     1,611,894   $ 5.19     0.2 %

2022

    8     957,917   $ 9.67     0.2 %

2023

    9     1,119,371   $ 10.29     0.2 %

2024

    12     703,770   $ 11.67     0.2 %

2025

    18     2,095,999   $ 9.56     0.4 %

2026 and Thereafter

    21     2,652,151   $ 5.52     0.3 %

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

(2)
Annual rental revenues represent domestic 2015 consolidated and joint venture combined base rental revenue.

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Table of Contents

International Properties

            Our ownership interests in properties outside the United States are primarily owned through joint venture arrangements.

            At December 31, 2015 we owned 63,924,148 shares, or approximately 20.3%, of Klépierre, which had a quoted market price of $44.82 per share. Klépierre is a publicly traded, Paris-based real estate company, which owns, or has an interest in shopping centers located in 16 countries in Europe. On March 14, 2012, we completed our initial acquisition of a 28.7% interest in Klépierre for approximately $2.0 billion. On July 29, 2014 Klépierre announced that it had entered into a conditional agreement to acquire Corio N.V., or Corio, pursuant to which Corio shareholders received 1.14 Klépierre ordinary shares for each Corio ordinary share. On January 15, 2015 the transaction closed, which resulted in a dilution of our ownership to approximately 18.3%. On May 11, 2015, we purchased 6,290,000 additional shares of Klépierre for $279.4 million bringing our ownership to 20.3%.

            As of December 31, 2015, our joint venture in Europe had noncontrolling ownership interests in six outlet properties, as well as a property management and development company. Five of the outlet properties are located in Europe and one outlet property is located in Canada. Of the five properties in Europe, two are located in Italy and one each is located in Austria, the Netherlands, and the United Kingdom. As of December 31, 2015, our legal percentage ownership interests in these entities ranged from 45% to 90%.

            We own a 13.3% interest in Value Retail PLC and affiliated entities, which own and operate nine luxury outlets throughout Europe. We also have a minority direct ownership in three of those outlets.

            We also hold a 40% interest in nine operating joint venture properties in Japan, a 50% interest in three operating joint venture properties in South Korea, a 50% interest in one operating joint venture property in Mexico, a 50% interest in one operating joint venture property in Malaysia, and a 50% interest in two operating joint venture properties in Canada. The nine Japanese Premium Outlets operate in various cities throughout Japan and comprise over 3.2 million square feet of GLA and were 99.8% leased as of December 31, 2015.

            The following property tables summarize certain data for our international properties as of December 31, 2015 and does not include our equity investment in Klépierre or our cost method investment in Value Retail PLC and affiliated entities.

32


Table of Contents

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

 
 
COUNTRY/Property Name
  City
(Metropolitan area)
  Ownership
Interest
  SPG Effective
Ownership
  Year Built   Total Gross
Leasable Area
  Retail Anchors and Major Tenants
INTERNATIONAL PREMIUM OUTLETS                        
    JAPAN                            
1.   Ami Premium Outlets   Ami (Tokyo)   Fee     40.0 % 2009     315,000   Adidas, Banana Republic, BCBG Max Azria, Beams, Brooks Brothers, Coach, Cole Haan, Gap Outlet, McGregor, MK Michel Klein, Nike, Tommy Hilfiger, Ralph Lauren
2.   Gotemba Premium Outlets   Gotemba City (Tokyo)   Fee     40.0 % 2000     481,500   Armani, Balenciaga, Bally, Banana Republic, Bottega Veneta, Burberry, Coach, Diesel, Dolce & Gabbana, Dunhill, Gap Outlet, Gucci, Jill Stuart, Loro Piana, Miu Miu, Nike, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Tod's
3.   Kobe-Sanda Premium Outlets   Hyougo-ken (Osaka)   Ground Lease (2026)     40.0 % 2007     441,000   Adidas, Armani, Bally, Banana Republic, Beams, Brooks Brothers, Coach, Cole Haan, Diesel, Etro, Gap Outlet, Gucci, Harrod's, Hugo Boss, Loro Piana, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Theory, Tommy Hilfiger, Valentino
4.   Rinku Premium Outlets   Izumisano (Osaka)   Ground Lease (2031)     40.0 % 2000     416,500   Adidas, Armani, Bally, BCBG Max Azria, Beams, Brooks Brothers, Coach, Cole Haan, Diesel, Dolce & Gabbana, Dunhill, Eddie Bauer, Etro, Furla, Gap Outlet, Hugo Boss, Kate Spade, Lacoste, Lanvin Collection, Nike, Ralph Lauren
5.   Sano Premium Outlets   Sano (Tokyo)   Ground Lease (2022)     40.0 % 2003     390,800   Adidas, Armani, Beams, Brooks Brothers, Coach, Diesel, Dunhill, Eddie Bauer, Etro, Furla, Gap Outlet, Gucci, Harrod's, Kate Spade, Miu Miu, Nike, Ralph Lauren, Prada
6.   Sendai-Izumi Premium Outlets   Izumi Park Town (Sendai)   Ground Lease (2027)     40.0 % 2008     164,200   Adidas. Beams, Brooks Brothers, Coach, Forever21, Jill Stuart, Levi's, Pleats Please Issey Miyake, Tasaki, TaylorMade, United Arrows
7.   Shisui Premium Outlets   Shisui (Chiba), Japan   Ground Lease (2032)     40.0 % 2013     365,900   Banana Republic, Brooks Brothers, Citizen, Coach, Gap, Marmot, Michael Kors, Samsonite, Tommy Hilfiger, United Arrows
8.   Toki Premium Outlets   Toki (Nagoya)   Ground Lease (2024)     40.0 % 2005     367,700   Adidas, BCBG Max Azria, Beams, Brooks Brothers, Coach, Diesel, Eddie Bauer, Furla, Gap Outlet, Nike, Olive des Olive, Ralph Lauren, Puma, Timberland, Tommy Hilfiger, United Arrows
9.   Tosu Premium Outlets   Fukuoka (Kyushu)   Ground Lease (2023)     40.0 % 2004     290,400   Adidas, Armani, Banana Republic, BCBG Max Azria, Beams, Bose, Brooks Brothers, Burberry, Coach, Cole Haan, Courreges, Dolce & Gabbana, Furla, Gap Outlet, Miki House, Nike, Puma, Theory, Tommy Hilfiger
   

Subtotal Japan

                      3,233,000    

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Table of Contents

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

 
 
COUNTRY/Property Name
  City
(Metropolitan area)
  Ownership
Interest
  SPG Effective
Ownership
  Year Built   Total Gross
Leasable Area
  Retail Anchors and Major Tenants
    MEXICO                            
10.   Punta Norte Premium Outlets   Mexico City   Fee     50.0 % 2004     333,000   Adidas, Calvin Klein, CH Carolina Herrera, Coach, Kenneth Cole, Diesel, Lacoste, Levi's, MaxMara, Nautica, Nike, Palacio Outlet, Reebok, Rockport, Salvatore Ferragamo, Swarovski, Zegna
   

Subtotal Mexico

                      333,000    

 

 

SOUTH KOREA

 

 

 

 

 

 

 

 

 

 

 

 

 

 
11.   Yeoju Premium Outlets   Yeoju (Seoul)   Fee     50.0 % 2007     551,600   Adidas, Giorgio Armani, Burberry, Chloe, Coach, Diesel, Dolce & Gabbana, Escada, Fendi, Gucci, Lacoste, Marc Jacobs, Michael Kors, Nike, Polo Ralph Lauren, Salvatore Ferragamo, Theory, Tod's, Valentino, Vivienne Westwood
12.   Paju Premium Outlets   Paju (Seoul)   Fee     50.0 % 2011     442,900   Armani, Banana Republic, Calvin Klein, Coach, DKNY, Escada, Jill Stuart, Lacoste, Lanvin Collection, Marc Jacobs, Michael Kors, Nike, Polo Ralph Lauren, Theory, Tory Burch, Vivienne Westwood
13.   Busan Premium Outlets   Busan   Fee     50.0 % 2013     360,200   Adidas, Armani, Banana Republic, Bean Pole, Calvin Klein, Coach, DKNY, Gap, Marc Jacobs, Michael Kors, Nike, Polo Ralph Lauren, Theory, The North Face, Tommy Hilfiger
   

Subtotal South Korea

                      1,354,700    

 

 

MALAYSIA

 

 

 

 

 

 

 

 

 

 

 

 

 

 
14.   Johor Premium Outlets   Johor (Singapore)   Fee     50.0 % 2011     264,400   Adidas, Armani, Brooks Brothers, Burberry, Calvin Klein, Canali, Coach, DKNY, Gap, Guess, Lacoste, Levi's, Michael Kors, Nike, Salvatore Ferragamo, Timberland, Tommy Hilfiger, Zegna
   

Subtotal Malaysia

                      264,400    

 

 

CANADA

 

 

 

 

 

 

 

 

 

 

 

 

 

 
15.   Toronto Premium Outlets   Toronto (Ontario)   Fee     50.0 % 2013     358,400   Adidas, Banana Republic, Burberry, Calvin Klein, Coach, Eddie Bauer, Gap, Michael Kors, Nike, Polo Ralph Lauren, Reebok, Tommy Hilfiger
16.   Premium Outlets Montreal   Montreal (Quebec)   Fee     50.0 % 2014     365,700   Adidas, American Eagle Outfitters, Banana Republic, Calvin Klein, Gap, Lacoste, Michael Kors, Nike, Old Navy, Polo Ralph Lauren, Reebok, Tommy Hilfiger
   

Subtotal Canada

                      724,100    
    TOTAL INTERNATIONAL PREMIUM OUTLETS                   5,909,200    

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Table of Contents

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

 
 
COUNTRY/Property Name
  City
(Metropolitan area)
  Ownership
Interest
  SPG Effective
Ownership
  Year Built   Total Gross
Leasable Area
  Retail Anchors and Major Tenants
INTERNATIONAL DESIGNER OUTLETS
    AUSTRIA                            
1.   Parndorf Designer Outlet   Vienna   Fee     90.0 % Phase 3 — 2005     118,000   Armani, Bally, Burberry, Calvin Klein, Diesel, Furla, Geox,
    Phases 3 & 4                 Phase 4 — 2011         Gucci, Hugo Boss, Joop! Windsor Strellson, Michael Kors, Porsche Design, Prada, Swarovski, Zegna
   

Subtotal Austria

                      118,000    

 

 

ITALY

 

 

 

 

 

 

 

 

 

 

 

 

 

 
2.   La Reggia Designer Outlet   Marcianise (Naples)   Fee     60.0 % Phase 1 — 2010     288,000   Adidas, Armani, Calvin Klein, Hugo Boss, Lacoste, Lui Jo,
    Phases 1 & 2                 Phase 2a — 2010         Michael Kors, Nike, Pinko, Polo Ralph Lauren, Prada,
                      Phase 2b — 2011         Roberto Cavalli, Timberland, Tommy Hilfiger, Valentino, Versace
3.   Noventa Di Piave Designer   Venice   Fee     60.0 % Phase 1 — 2008     280,000   Armani, Bally, Bottega Veneta, Brioni,
    Outlet Phases 1, 2, & 3                 Phase 2 — 2010         Burberry, Calvin Klein, Fendi, Gucci, Hugo Boss, Loro Piana,
                      Phase 3 — 2012         Michael Kors, Nike, Pinko, Paul Smith, Prada, Salvatore
                                Ferragamo, Sergio Rossi,Tommy Hilfiger, Valentino, Versace
   

Subtotal Italy

                      568,000    

 

 

NETHERLANDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 
4.   Roermond Designer Outlet   Roermond   Fee     90.0 % Phase 2 — 2005     173,000   Armani, Bally, Burberry, Calvin Klein Jeans, Escada, Furla,
    Phases 2 & 3                 Phase 3 — 2011         Gucci, Hugo Boss, Joop! Windsor Strellson, Loro Piana,
                                Michael Kors, Moncler, Mulberry, Prada,
                                Ralph Lauren Luxury, Swarovski,
                                Tod's, Tommy Hilfiger, UGG
   

Subtotal Netherlands

                      173,000    

 

 

UNITED KINGDOM

 

 

 

 

 

 

 

 

 

 

 

 

 

 
5.   Ashford Designer Outlet   Kent   Fee     45.0 % 2000     183,000   Abercrombie and Fitch, Adidas, CK Underwear, Clarks, Fossil, French Connection, Gap, Guess, Lacoste, Levis, Marks & Spencer, Next, Nike, Polo Ralph Lauren, Reiss, Superdry, Swarovski, Tommy Hilfiger
   

Subtotal England

                      183,000    

 

 

CANADA

 

 

 

 

 

 

 

 

 

 

 

 

 

 
6.   Vancouver Designer Outlets   Vancover   Ground Lease (2072)     45.0 % 2015     242,000   Armani, Banana Republic, Brooks Brother Factory, Calvin Klein, Cole Hann, Coach, Gap, Hugo Boss, J. Crew Factory, Levi's, Nike, Polo Ralph Lauren Factory, Tommy Hilfiger
   

Subtotal Canada

                      242,000    
    Total International Designer Outlets                   1,284,000    

FOOTNOTES:

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

35


Table of Contents

            We have direct or indirect ownership interests in approximately 300 acres of land held in the United States and Canada for future development.

            We incorporate sustainable thinking into many of the areas of our business; from how we plan, develop and operate our properties, to how we do business with our customers, engage with our communities, and create a productive and positive work environment for our employees. Our sustainability framework has four key areas: Properties, Customers, Communities and Employees.

            Through our 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 have reduced the electricity usage over which we have direct control by 337 million kWhs since 2003. This represents a 32% reduction in electricity usage across a portfolio of comparable properties. Our documented reduction in greenhouse gas emissions resulting from our energy management efforts is 213,741 metric tons of CO2e.

            We have been globally recognized for our energy efficiency programs and transparency in disclosure practices: in 2015, we were listed on the CDP, previously known as the Carbon Disclosure Project, A-List for the second consecutive year — identifying us as a leader in the retail real estate sector for driving significant reduction in emissions due to implementation of energy efficient initiatives. Additionally, in 2015 we received the highest designation of a Green Star rating from the Global Real Estate Sustainability Benchmark, or GRESB, for the second year.

            The following table sets forth certain information regarding the mortgages 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.

36


Table of Contents


Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

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

Consolidated Indebtedness:

                         

Secured Indebtedness:

   
 
   
 
   
 
   
 
 

Arizona Mills

    5.76 %   161,834     12,268     07/01/20  

Bangor Mall

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

Battlefield Mall

    3.95 %   124,467     7,118     09/01/22  

Birch Run Premium Outlets

    5.95 %   100,460    (10)(28)   8,078     04/11/16  

Calhoun Premium Outlets

    5.79 %   19,309    (35)   1,519     09/01/16  

Carolina Premium Outlets

    3.36 %   47,409     2,675     12/01/22  

Domain, The

    5.44 %   195,224     14,085     08/01/21  

Ellenton Premium Outlets

    4.30 %   178,000     7,651    (2)   12/01/25  

Empire Mall

    4.31 %   190,000     8,197    (2)   12/01/25  

Florida Keys Outlet Center

    4.17 %   17,000     709    (2)   12/01/25  

Gaffney Premium Outlets

    5.79 %   35,042    (35)   2,757     09/01/16  

Grand Prairie Premium Outlets

    3.66 %   120,000     4,392    (2)   04/01/23  

Greenwood Park Mall

    8.00 %   74,710    (19)   7,044     08/01/16  

Grove City Premium Outlets

    4.31 %   140,000     6,032    (2)   12/01/25  

Gulfport Premium Outlets

    4.35 %   50,000     2,174    (2)   12/01/25  

Gurnee Mills

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

Hagerstown Premium Outlets

    5.95 %   84,410    (10)(28)   6,787     04/11/16  

Independence Center

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

Ingram Park Mall

    5.38 %   135,491     9,746     06/01/21  

King of Prussia — The Court & The Plaza — 1

    7.49 %   23,906     23,183     01/01/17  

King of Prussia — The Court & The Plaza — 2

    8.53 %   1,735     1,685     01/01/17  

King of Prussia — The Court & The Plaza — 3

    4.50 %   50,000     2,250    (2)   01/01/17  

Las Americas Premium Outlets

    5.84 %   174,269     12,728     06/11/16  

Lee Premium Outlets

    5.79 %   48,201    (35)   3,792     09/01/16  

Merrimack Premium Outlets

    3.78 %   128,876     7,247     07/01/23  

Midland Park Mall

    4.35 %   80,362     5,078     09/06/22  

Mills at Jersey Gardens, The

    3.83 %   350,000     13,405    (2)   11/01/20  

Montgomery Mall

    4.57 %   100,000     4,570    (2)   05/01/24  

Opry Mills — 1

    2.93 %   (1)   280,000     8,203    (2)   10/10/16  

Opry Mills — 2

    5.00 %   70,800     3,540    (2)   10/10/16  

Oxford Valley Mall

    4.77 %   65,249     4,456     12/07/20  

Penn Square Mall

    3.84 %   310,000     11,910    (2)   01/01/26  

Pismo Beach Premium Outlets

    5.84 %   33,850    (20)   1,978    (2)   11/06/16  

Plaza Carolina

    1.78 %   (1)   225,000     4,004    (2)   09/30/17    (3)

Pleasant Prairie Premium Outlets

    6.01 %   34,560     2,758     12/01/16  

Potomac Mills

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

Puerto Rico Premium Outlets

    1.78 %   (1)   125,000     2,224    (2)   09/30/17    (3)

Queenstown Premium Outlets

    5.84 %   66,150    (20)   3,864    (2)   11/06/16  

Shops at Chestnut Hill, The

    4.69 %   120,000     5,624    (2)   11/01/23  

Shops at Riverside, The

    3.37 %   130,000     4,382    (2)   02/01/23  

Southdale Center

    3.84 %   152,990     8,713     04/01/23  

SouthPark

    8.00 %   184,908    (19)   17,434     08/01/16  

Southridge Mall

    3.85 %   123,922     7,036     06/06/23  

Summit Mall

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

The Crossings Premium Outlets

    3.41 %   114,827     6,131     12/01/22  

Town Center at Cobb

    4.76 %   195,052     12,530     05/01/22  

University Park Village

    3.85 %   55,000     2,118    (2)   05/01/28  

Walt Whitman Shops

    8.00 %   113,933    (19)   10,742     08/01/16  

White Oaks Mall

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

37


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Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

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

Williamsburg Premium Outlets

    5.95 %   97,517    (10)(28)   7,841     04/11/16  

Wolfchase Galleria

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

Woodland Hills Mall

    7.79 %   90,370     8,414     04/05/19  

Total Consolidated Secured Indebtedness

        $ 6,570,833              

Unsecured Indebtedness:

   
 
   
 
   
 
   
 
 

Simon Property Group, LP:

                         

Global Commercial Paper — USD

    0.43 %   (34) $ 690,593   $ 2,970    (2)   03/24/16  

Global Commercial Paper — Euro

    0.03 %   (34) $ 188,064    (18)   56    (2)   04/18/16  

Revolving Credit Facility — Euro Currency

    0.80 %   (15) $ 237,814    (16)   1,903    (2)   06/30/19    (3)

Revolving Credit Facility — Yen Currency

    0.85 %   (15) $ 184,848    (23)   1,570    (2)   06/30/19    (3)

Revolving Credit Facility — USD Currency

    1.23 %   (15) $ 815,000    (32)   10,020    (2)   06/30/19    (3)

Unsecured Notes — 14B

    6.10 % $ 163,298    (33)   9,961    (14)   05/01/16  

Unsecured Notes — 15B

    5.88 % $ 207,453     12,188    (14)   03/01/17  

Unsecured Notes — 16B

    5.25 % $ 364,276     19,124    (14)   12/01/16  

Unsecured Notes — 20A

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

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  

Unsecured Notes — 24A

    2.80 % $ 500,000     14,000    (14)   01/30/17  

Unsecured Notes — 24B

    4.13 % $ 700,000     28,875    (14)   12/01/21  

Unsecured Notes — 25A

    2.15 % $ 600,000     12,900    (14)   09/15/17  

Unsecured Notes — 25B

    3.38 % $ 600,000     20,250    (14)   03/15/22  

Unsecured Notes — 25C

    4.75 % $ 550,000     26,125    (14)   03/15/42  

Unsecured Notes — 26A

    1.50 % $ 750,000     11,250    (14)   02/01/18  

Unsecured Notes — 26B

    2.75 % $ 500,000     13,750    (14)   02/01/23  

Unsecured Notes — Euro 1

    2.38 % $ 820,049    (8)   19,476    (6)   10/02/20  

Unsecured Notes — 27A

    2.20 % $ 600,000     13,200    (14)   02/01/19  

Unsecured Notes — 27B

    3.75 % $ 600,000     22,500    (14)   02/01/24  

Unsecured Notes — 28A

    3.38 % $ 900,000     30,375    (14)   10/01/24  

Unsecured Notes — 28B

    4.25 % $ 400,000     17,000    (14)   10/01/44  

Unsecured Notes — 29A

    2.50 % $ 500,000     12,500    (14)   09/01/20  

Unsecured Notes — 29B

    3.50 % $ 600,000     21,000    (14)   09/01/25  

Unsecured Notes — Euro 2

    1.38 % $ 820,049    (13)   11,276    (6)   11/18/22  

Unsecured Term Loan

    1.53 %   (1) $ 240,000     3,671    (2)   02/28/18    (3)

Total Consolidated Unsecured Indebtedness

        $ 15,931,444              

Total Consolidated Indebtedness at Face Amounts

        $ 22,502,277              

Net Premium on Indebtedness

          44,735              

Net Discount on Indebtedness

          (44,839 )            

Total Consolidated Indebtedness

        $ 22,502,173              

Our Share of Consolidated Indebtedness

        $ 22,411,398              

Joint Venture Indebtedness:

                         

Secured Indebtedness:

   
 
   
 
   
 
   
 
 

Ami Premium Outlets

    1.83 %   (12)   67,385    (26)   8,348     09/25/23  

Ashford Designer Outlet

    2.68 %   59,276    (21)   1,588    (2)   07/31/16  

Arundel Mills

    4.29 %   385,000     16,509    (2)   02/06/24  

Auburn Mall

    6.02 %   39,136     3,027     09/01/20  

Aventura Mall

    3.75 %   1,200,000     45,002    (2)   12/01/20  

38


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Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

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

Aventura Mall Expansion

    2.38 %   (1)   4,313     103    (2)   12/30/20  

Avenues, The

    3.60 %   110,000     3,960    (2)   02/06/23  

Briarwood Mall

    7.50 %   107,180    (22)   10,641     11/30/16  

Busan Premium Outlets — Fixed

    5.44 %   68,655    (17)   3,736    (2)   06/20/22  

Busan Premium Outlets — Variable

    3.96 %   (27)   48,067    (17)   1,902    (2)   02/13/17  

California Department Stores

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

Cape Cod Mall

    5.75 %   93,642     7,003     03/06/21  

Charlotte Premium Outlets

    1.88 %   (1)   90,000     1,692    (2)   11/24/19    (3)

Circle Centre

    3.33 %   (24)   66,000     3,076     01/28/20    (3)

Coconut Point

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

Coddingtown Mall

    2.18 %   (1)   11,250     839     03/01/17    (3)

Colorado Mills — 1

    4.28 %   136,000     5,824    (2)   11/01/24  

Colorado Mills — 2

    5.04 %   27,445     1,811     07/01/21  

Concord Mills

    3.84 %   235,000     9,015    (2)   11/01/22  

Crystal Mall

    4.46 %   92,755     5,749     06/06/22  

Dadeland Mall

    4.50 %   435,147     27,361     12/05/21  

Del Amo Fashion Center

    1.93 %   (1)   510,000     9,840    (2)   01/20/20    (3)

Domain Westin

    4.12 %   69,710     4,069     09/01/25  

Dover Mall

    5.57 %   88,413     6,455     08/06/21  

Emerald Square Mall

    4.71 %   108,970     7,165     08/11/22  

Falls, The

    7.50 %   103,607    (22)   10,287     11/30/16  

Fashion Centre Pentagon City Office

    5.11 %   40,000     2,043    (2)   07/01/21  

Fashion Centre Pentagon City Retail

    4.87 %   410,000     19,957    (2)   07/01/21  

Fashion Valley

    4.30 %   458,069     28,208     01/04/21  

Firewheel Residential

    2.74 %   (1)   21,388     1,123     12/01/16  

Firewheel Residential II

    2.43 %   (1)   24,000     583    (2)   11/14/18    (3)

Florida Mall, The

    5.25 %   343,876     24,849     09/05/20  

Galleria, The

    3.55 %   1,200,000     42,598    (2)   03/01/25  

Gloucester Premium Outlets

    1.93 %   (1)   72,926     1,407    (2)   06/19/19    (3)

Grapevine Mills

    3.83 %   268,000     10,272    (2)   10/01/24  

Greendale Mall

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

Gotemba Premium Outlets

    0.37 %   (12)   10,896    (26)   4,399     02/28/18  

Hamilton Town Center

    4.81 %   83,100     5,293     04/01/22  

Johor Premium Outlets

    5.32 %   (7)   17,575    (9)   5,212     10/14/20  

Katy Mills

    3.49 %   140,000     4,886    (2)   12/06/22  

Kobe-Sanda Premium Outlets

    0.44 %   (12)   31,333    (26)   1,633     01/31/20  

Lehigh Valley Mall

    5.88 %   129,116     9,943     07/05/20  

La Reggia Designer Outlets Phases 1 & 2

    1.31 %   (25)   63,335    (30)   5,441     03/31/27  

Liberty Tree Mall

    3.41 %   33,238     1,866     05/06/23  

Mall at Rockingham Park, The

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

Mall at Tuttle Crossing, The

    3.56 %   125,000     4,455    (2)   05/01/23  

Mall of New Hampshire, The

    4.11 %   150,000     6,162    (2)   07/01/25  

Meadowood Mall

    5.82 %   118,360     8,818     11/06/21  

Miami International Mall

    4.42 %   160,000     7,072    (2)   02/06/24  

Northshore Mall

    3.30 %   261,491     14,453     07/05/23  

Noventa Di Piave Designer Outlets

    2.00 %   (11)   87,471    (30)   1,749    (2)   06/30/20  

Ontario Mills

    4.25 %   326,521     20,661     03/05/22  

Outlets at Orange, The

    4.22 %   215,000     9,067    (2)   04/01/24  

Paju Premium Outlets

    4.08 %   92,221    (17)   3,764    (2)   11/28/19  

Parndorf Designer Outlet Phases 3 & 4

    1.95 %   100,593    (30)   1,962    (2)   05/20/22  

Phipps Plaza Residential

    2.18 %   (1)   5,610     122    (2)   10/16/19    (3)

Phipps Plaza Hotel

    2.43 %   (1)   4,832     117    (2)   12/17/19    (3)

39


Table of Contents


Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

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

Premium Outlets Montréal

    2.18 %   (4)   78,359    (5)   1,708    (2)   09/10/17    (3)

Quaker Bridge Mall — 1

    7.03 %   10,679     2,407     04/01/16  

Quaker Bridge Mall — 2

    2.95 %   62,000     1,829    (2)   04/01/16  

Rinku Premium Outlets

    0.39 %   (12)   11,623    (26)   1,706     07/31/17  

Roermond Designer Outlet Phases 2 & 3

    1.86 %   196,812    (30)   3,659    (2)   12/01/21  

Sano Premium Outlets

    0.45 %   (12)   4,193    (26)   2,759     05/31/18  

Sendai-Izumi Premium Outlets

    0.41 %   (12)   9,465    (26)   3,194     10/31/18  

Shisui Premium Outlets — Variable

    0.37 %   (12)   34,870    (26)   4,778     05/31/18  

Shisui Premium Outlets — Fixed

    0.38 %   41,511    (26)   158    (2)   05/29/22  

Shops at Mission Viejo, The

    3.61 %   295,000     10,650    (2)   02/01/23  

Silver Sands Premium Outlets

    3.93 %   100,000     3,930    (2)   06/01/22  

Smith Haven Mall

    1.63 %   (1)   180,000     2,933    (2)   05/29/20    (3)

Solomon Pond Mall

    4.01 %   103,803     6,309     11/01/22  

Southdale Residential

    4.46 %   41,689     2,530     10/15/35  

Springfield Mall

    4.45 %   64,835     3,928     10/06/25  

Square One Mall

    5.47 %   94,578     6,793     01/06/22  

Stoneridge Shopping Center

    7.50 %   213,072    (22)   19,214     11/30/16  

St. Johns Town Center

    3.82 %   350,000     13,367    (2)   09/11/24  

St. Louis Premium Outlets

    4.06 %   95,000     3,858    (2)   10/06/24  

Tanger Outlets — Galveston/Houston

    1.93 %   (1)   65,000     1,254    (2)   07/01/18    (3)

Toki Premium Outlets — Fixed

    0.38 %   24,907    (26)   93    (2)   11/30/19  

Toki Premium Outlets — Variable

    0.91 %   (12)   5,166    (26)   47    (2)   05/31/20  

Toronto Premium Outlets

    3.13 %   122,549    (5)   3,831    (2)   06/01/22  

Tosu Premium Outlets

    0.42 %   (12)   15,442    (26)   1,974     12/31/18  

Twin Cities Premium Outlets

    4.32 %   115,000     4,968    (2)   11/06/24  

Vancouver Designer Outlet

    2.73 %   (4)   59,556    (5)   1,626    (2)   04/01/18  

West Town Mall

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

Westchester, The

    6.00 %   345,376     26,980     05/05/20  

Woodfield Mall

    4.50 %   425,000     19,125    (2)   03/05/24  

Yeoju Premium Outlets

    4.69 %   73,423    (17)   3,441    (2)   09/06/20  

Total Joint Venture Secured Indebtedness at Face Value

        $ 13,166,111              

TMLP Indebtedness at Face Value

       
$

720,969

   (29)
           

Total Joint Venture and TMLP Indebtedness at Face Value

        $ 13,887,080              

Net Premium on Indebtedness

         
3,961
             

Total Joint Venture Indebtedness

        $ 13,891,041              

Our Share of Joint Venture Indebtedness

        $ 6,692,809    (31)            

40


Table of Contents


Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

(1)
Variable rate loans based on 1M LIBOR plus interest rate spreads ranging from 80 bps to 250 bps. 1M LIBOR as of December 31, 2015 was 0.43%.

(2)
Requires monthly payment of interest only.

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

(4)
Variable rate loans based on 1M CDOR plus interest rate spreads ranging from 130 bps to 185 bps. 1M CDOR at December 31, 2015 was 0.88%.

(5)
Amount shown in USD equivalent. CAD Equivalent is 361.3 million.

(6)
Requires annual payment of interest only.

(7)
Variable rate loans based on Cost of Fund plus interest rates spreads ranging from 150 bps to 175 bps. Cost of Fund as of December 31, 2015 was 3.75%.

(8)
Amount shown in USD equivalent. Euro equivalent is 750.0 million.

(9)
Amount shown in USD equivalent. Ringgit equivalent is 75.7 million.

(10)
Loans were refinanced after December 31, 2015. These three properties are no longer secured by cross-collateralized and cross-defaulted mortgages.

(11)
Variable rate loan based on 3M EURIBOR plus interest rate spread of 200 bps. Minimum 3M Euribor is 0 bps.

(12)
Variable rate loans based on 1M YEN LIBOR or 6M YEN LIBOR plus interest rate spreads ranging from 25 bps to 40 bps. As of December 31, 2015, 1M YEN LIBOR and 6M YEN LIBOR were 0.05% and 0.12%, respectively.

(13)
Amount shown in USD equivalent. Euro equivalent is 750.0 million.

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

(15)
$4.0 Billion Revolving Credit Facility. As of December 31, 2015, the Credit Facility — USD Currency bears interest at LIBOR + 80 bps, the Credit Facility — Yen Currency bears interest at Yen LIBOR + 80 bps and the Credit Facility — Euro Currency bears interest at 1M EURO LIBOR + 80 bps. The facilities provide for different pricing based upon our investment grade rating. As of December 31, 2015, $4.6 billion was available after outstanding borrowings and letters of credit under our Credit Facilities.

(16)
Amount shown in USD equivalent. Balances include borrowings on multi-currency tranche of Euro 217.5 million.

(17)
Amount shown in USD equivalent. Won equivalent is 331.9 billion.

(18)
Amount shown in USD equivalent. Euro equivalent is 172.0 million.

(19)
Loans secured by these three properties are cross-collateralized and cross-defaulted. Mortgages were repaid on February 1, 2016 (open at par date).

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

(21)
Amount shown in USD equivalent. GBP equivalent is 40.0 million.

(22)
Loans secured by these three properties are cross-collateralized and cross-defaulted.

(23)
Amount shown in USD equivalent. Balances include borrowings on multi-currency tranche of Yen 22.3 billion.

(24)
Variable rate loan based on 1M LIBOR plus an interest rate spread of 290 bps. In addition, 1M LIBOR is capped at 5.00%.

(25)
Variable rate loan based on 6M EURIBOR plus interest rate spread of 135 bps. 6M EURIBOR at December 31, 2015 was –0.04%.

(26)
Amount shown in USD equivalent. Yen equivalent is 30.9 billion.

(27)
Variable rate loans based on 91 Day Korean CD rate plus interest rate spreads ranging from 200 bps to 290 bps. The 91 Day Korean CD rate as of December 31, 2015 was 1.67%.

(28)
Loans secured by these three properties are cross-collateralized and cross-defaulted.

(29)
Consists of five properties with interest rates ranging from 4.50% to 7.32% and maturities between 2016 and 2023.

(30)
Amount shown in USD equivalent. Euro equivalent is 409.9 million.

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Table of Contents


Mortgage and Unsecured Debt
As of December 31, 2015
(Dollars in thousands)

(31)
Our share of total indebtedness includes a pro rata share of the mortgage debt on joint venture properties, including The Mills Limited Partnership. To the extent total indebtedness is secured by a property, it is non-recourse to us, with the exception of approximately $353.7 million of payment guarantees provided by us (of which $112.8 million is recoverable from our venture partner under the partnership agreement).

(32)
The entire outstanding balance on the Revolving Credit Facility — USD was repaid on January 14, 2016.

(33)
Unsecured note was repaid on February 1, 2016 (call at par date).

(34)
Reflects the latest maturity date and weighted average interest rate of all outstanding tranches of commercial paper at December 31, 2015.

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

            The changes in consolidated mortgages and unsecured indebtedness for the years ended December 31, 2015, 2014 and 2013 are as follows:

 
  2015   2014   2013  

Balance, Beginning of Year

  $ 20,852,993   $ 22,669,917   $ 22,186,848  

Additions during period:

                   

New Loan Originations (a)

    6,095,011     2,273,014     1,988,710  

Loans assumed in acquisitions and consolidation           

    405,000     166,950      

Net Premium

    6,980     8,747     (3,273 )

Deductions during period:

                   

Loan Retirements

    (4,750,606 )   (4,164,574 )   (1,400,562 )

Amortization of Net Premiums

    (16,107 )   (24,092 )   (33,026 )

Scheduled Principal Amortization

    (91,098 )   (76,969 )   (68,780 )

Balance, Close of Year

  $ 22,502,173   $ 20,852,993   $ 22,669,917  
(a)
Includes net activity on the Credit Facilities and commercial paper.

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Table of Contents

Item 3.    Legal Proceedings

            We are involved from time-to-time in various legal and regulatory 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 such as acquisitions and divestitures. We believe that our current proceedings will not have a material adverse effect on our financial condition, liquidity or results of operations. We record a liability when a loss is considered probable, and the amount can be reasonably estimated.

Item 4.    Mine Safety Disclosures

            Not applicable.

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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
 

2014

       

1st Quarter

  $ 1.25  

2nd Quarter

    1.30  

3rd Quarter

    1.30  

4th Quarter

    1.30  

2015

   
 
 

1st Quarter

  $ 1.40  

2nd Quarter

    1.50  

3rd Quarter

    1.55  

4th Quarter

    1.60  

            The number of holders of record of units was 261 as of February 12, 2016.

            We make distributions on our units in amounts sufficient to maintain Simon's qualification as a REIT. Simon is required each year to distribute to its stockholders at least 90% of its REIT taxable income after certain adjustments. Future distributions will be determined by Simon's Board of Directors, in its sole discretion, based on actual and projected financial condition, liquidity and results of operations, cash available for distributions, cash reserves as deemed necessary for capital and operating expenditures, financing covenants, if any, and the distributions that may be required to maintain Simon's status as a REIT.

            Distributions during 2015 aggregated $6.05 per unit. Distributions during 2014 aggregated $5.15 per unit. In January 2016, Simon's Board of Directors declared a quarterly cash dividend of $1.60 per share. The distribution rate on our units is equal to the dividend rate on Simon's common stock.

            None.

            None.

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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,  
 
  2015 (1)   2014 (2)   2013   2012   2011  
 
  (in thousands, except per unit data)
 

OPERATING DATA:

                               

Total consolidated revenue

  $ 5,266,103   $ 4,870,818   $ 4,543,849   $ 4,256,157   $ 3,728,454  

Consolidated income from continuing operations

    2,139,375     1,622,165     1,366,793     1,563,242     1,086,040  

Consolidated net income

    2,139,375     1,651,526     1,551,590     1,719,632     1,245,900  

Net income attributable to unitholders

  $ 2,131,139   $ 1,643,783   $ 1,537,348   $ 1,705,860   $ 1,232,089  

BASIC AND DILUTED EARNINGS PER UNIT:

                               

Income from continuing operations

  $ 5.88   $ 4.44   $ 3.73   $ 4.29   $ 3.03  

Discontinued operations

        0.08     0.51     0.43     0.45  

Net income attributable to unitholders

  $ 5.88   $ 4.52   $ 4.24   $ 4.72   $ 3.48  

Basic weighted average units outstanding

    362,244     363,476     362,356     361,323     354,026  

Diluted weighted average units outstanding

    362,244     363,476     362,356     361,324     354,095  

Distributions per unit (3)

  $ 6.05   $ 5.15   $ 4.65   $ 4.10   $ 3.50  

BALANCE SHEET DATA:

                               

Cash and cash equivalents

  $ 701,134   $ 612,282   $ 1,691,006   $ 1,153,532   $ 776,039  

Total assets

    30,650,673     29,532,330     33,324,574     32,586,606     26,216,925  

Mortgages and other indebtedness

    22,502,173     20,852,993     22,669,917     22,186,848     17,431,588  

Total equity

    5,216,369     5,951,505   $ 6,822,632   $ 6,893,089   $ 5,544,288  

OTHER DATA:

                               

Cash flow provided by (used in):

                               

Operating activities

  $ 3,024,685   $ 2,730,420   $ 2,700,996   $ 2,513,072   $ 2,005,887  

Investing activities

    (1,462,720 )   (897,266 )   (948,088 )   (3,580,671 )   (994,042 )

Financing activities

    (1,473,113 )   (2,937,735 )   (1,220,563 )   1,453,467     (1,009,913 )

Ratio of Earnings to Fixed Charges

    2.71 x   2.40 x   2.23 x   2.44 x   2.00 x

Funds from Operations (FFO) (4)

  $ 3,571,237   $ 3,235,298   $ 3,205,693   $ 2,884,915   $ 2,438,765  
(1)
During the year ended December 31, 2015, we recorded a $121.0 million loss on extinguishment of debt associated with the early redemption of two series of unsecured senior notes. . We also recorded a gain on sale of marketable securities of $80.2 million.

(2)
During the year ended December 31, 2014, we recorded a $127.6 million loss on extinguishment of debt associated with five unsecured note tender offers and one early unsecured note redemption. We also recorded transaction expenses related to the spin-off of WP Glimcher Inc. (formerly known as Washington Prime Group Inc.), or Washington Prime, of $38.2 million. 2014 FFO includes results for five months of Washington Prime of $146.2 million.

(3)
Represents distributions on units declared per period.

(4)
FFO is a non-GAAP financial measure that we believe provides useful information to investors. Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operations for a definition and reconciliation of FFO to consolidated net income.

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

            The following discussion should be read in conjunction with the consolidated financial statements and notes thereto that are included in this Annual Report on Form 10-K.

Overview

            Simon Property Group, L.P. is a Delaware limited partnership and the majority-owned partnership subsidiary of Simon Property Group, Inc., a Delaware corporation. 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" refers specifically to Simon Property Group, Inc. Simon is a self-administered and self-managed real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. REITs will generally not be liable for federal corporate income taxes as long as they distribute not less than 100% of their REIT taxable income. According to our partnership agreement, we are required to pay all expenses of Simon.

            We own, develop and manage retail real estate properties, which consist primarily of malls, Premium Outlets®, and The Mills®. As of December 31, 2015, we owned or held an interest in 209 income-producing properties in the United States, which consisted of 108 malls, 71 Premium Outlets, 14 Mills, four lifestyle centers, and 12 other retail properties in 37 states and Puerto Rico. We opened four outlets in 2015 and have three outlets and two other significant retail projects under development. In addition, we have redevelopment and expansion projects, including the addition of anchors, big box tenants, and restaurants, underway at 29 properties in the U.S. and Europe. Internationally, as of December 31, 2015, we had ownership interests in nine Premium Outlets in Japan, three Premium Outlets in South Korea, two Premium Outlets in Canada, one Premium Outlet in Mexico, and one Premium Outlet in Malaysia. As of December 31, 2015, we had a noncontrolling ownership interest in a joint venture that holds five outlet properties in Europe and one outlet property in Canada. Of the five properties in Europe, two are located in Italy and one each is located in Austria, the Netherlands, and the United Kingdom. Additionally, as of December 31, 2015, we owned a 20.3% equity stake in Klépierre SA, or Klépierre, a publicly traded, Paris-based real estate company, which owns, or has an interest in, shopping centers located in 16 countries in Europe.

            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 invest in real estate properties to maximize total financial return which includes both operating cash flows and capital appreciation. 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:

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            We focus on high quality real estate across the retail real estate spectrum. We expand or redevelop properties 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 we believe are not adequately served by existing retail outlet properties.

            We routinely review and evaluate acquisition opportunities based on their ability to enhance 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:

            We consider FFO, net operating income, or NOI, and comparable property NOI (NOI for properties owned and operated in both periods under comparison) to be key measures of operating performance that are not specifically defined by accounting principles generally accepted in the United States, or GAAP. We use these measures internally to evaluate the operating performance of our portfolio and provide a basis for comparison with other real estate companies. Reconciliations of these measures to the most comparable GAAP measure are included below in this discussion.

Results Overview

            Diluted earnings per common unit of partnership interest, or unit, increased $1.36 during 2015 to $5.88 as compared to $4.52 in 2014. The increase in diluted earnings per unit was primarily attributable to:

            Core business fundamentals improved during 2015, primarily driven by higher tenant sales and strong leasing activity. Portfolio NOI grew by 7.1% in 2015 as compared to 2014. Comparable property NOI also grew 3.7% for our portfolio of U.S. Malls, Premium Outlets, and The Mills. Total sales per square foot, or psf, increased 0.1% from $619 psf at December 31, 2014, to $620 psf at December 31, 2015, for our U.S. Malls and Premium Outlets. Average base minimum rent for U.S. Malls and Premium Outlets increased 4.1% to $48.96 psf as of December 31, 2015, from $47.01 psf as of December 31, 2014. Releasing spreads remained positive in our U.S. Malls and Premium Outlets as we were able to lease available square feet at higher rents than the expiring rental rates on the same space, resulting in a releasing spread (based on total tenant payments — base minimum rent plus common area maintenance) of $10.62 psf ($69.64 openings compared to $59.02 closings) as of December 31, 2015, representing a 18.0% increase over expiring payments. Ending occupancy for our U.S. Malls and Premium Outlets was 96.1% as of December 31, 2015, as compared to 97.1% as of December 31, 2014, a decrease of 100 basis points primarily as a result of tenant bankruptcy activity announced in the first quarter of 2015.

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            Our effective overall borrowing rate at December 31, 2015 on our consolidated indebtedness decreased 53 basis points to 3.88% as compared to 4.41% at December 31, 2014. This reduction was primarily due to a decrease in the effective overall borrowing rate on fixed rate debt of 51 basis points (4.12% at December 31, 2015 as compared to 4.63% at December 31, 2014). At December 31, 2015, the weighted average years to maturity of our consolidated indebtedness was 5.9 years as compared to 6.2 years at December 31, 2014.

            Our financing activities for the year ended December 31, 2015, included:

United States Portfolio Data

            The portfolio data discussed in this overview includes the following key operating statistics: ending occupancy, average base minimum rent per square foot, and total sales per square foot for our domestic assets. We include acquired properties in this data beginning in the year of acquisition and remove disposed properties in the year of disposition. The Washington Prime properties have been removed from the portfolio data for all periods presented. For comparative purposes, we separate the information related to The Mills from our other U.S. operations. We also do not include any properties located outside the United States.

            The following table sets forth these key operating statistics for:

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  2015   %/Basis Points
Change (1)
  2014   %/Basis Points
Change (1)
  2013

U.S. Malls and Premium Outlets:

                   

Ending Occupancy

                   

Consolidated

  96.4%   –90 bps   97.3%   –20 bps   97.5%

Unconsolidated

  95.3%   –110 bps   96.4%   +100 bps   95.4%

Total Portfolio

  96.1%   –100 bps   97.1%   +20 bps   96.9%

Average Base Minimum Rent per Square Foot

                   

Consolidated

  $47.39   4.5%   $45.34   4.6%   $43.33

Unconsolidated

  $53.64   3.4%   $51.89   3.8%   $50.00

Total Portfolio

  $48.96   4.1%   $47.01   4.4%   $45.01

Total Sales per Square Foot

                   

Consolidated

  $607   0.7%   $603     $603

Unconsolidated

  $665   –2.1%   $679   1.3%   $670

Total Portfolio

  $620   0.1%   $619   0.2%   $618

The Mills®:

                   

Ending Occupancy

  98.5%   +10 bps   98.4%   –10 bps   98.5%

Average Base Minimum Rent per Square Foot

  $27.14   6.7%   $25.43   6.9%   $23.79

Total Sales per Square Foot

  $568   5.0%   $541   2.3%   $529
(1)
Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.

            Ending Occupancy Levels and Average Base Minimum Rent per Square Foot.    Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy.

            Total Sales per Square Foot.    Total sales include total reported retail tenant sales on a trailing 12-month basis at owned GLA (for mall stores with less than 10,000 square feet) in the malls and The Mills and stores with less than 20,000 square feet in the Premium Outlets. 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.

            During 2015, we signed 803 new leases and 1,594 renewal leases (excluding mall anchors and majors, new development, redevelopment, expansion, downsizing and relocation) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 7.5 million square feet, of which 5.8 million square feet related to consolidated properties. During 2014, we signed 773 new leases and 1,581 renewal leases with a fixed minimum rent, comprising approximately 7.4 million square feet, of which 5.5 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $55.24 per square foot in 2015 and $58.57 per square foot in 2014 with an average tenant allowance on new leases of $36.66 per square foot and $38.83 per square foot, respectively.

            The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner.

 
  December 31,
2015
  %/basis point
Change
  December 31,
2014
  %/basis point
Change
  December 31,
2013

Ending Occupancy

  99.8%   70 bps   99.1%   –30 bps   99.4%

Total Sales per Square Foot

  ¥101,574   7.00%   ¥94,933   4.37%   ¥90,959

Average Base Minimum Rent per Square Foot

  ¥4,967   1.16%   ¥4,910   0.45%   ¥4,888

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Critical Accounting Policies

            The preparation of financial statements in conformity with 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 reevaluate 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 the "Results Overview" section, the following acquisitions, openings, and dispositions of consolidated properties 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 openings of joint venture properties 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, 2015 and 2014 and the years ended December 31, 2014 and 2013, the above transactions are referred to as the property transactions. In the following discussions of our results of operations, "comparable" refers to properties we owned and operated in both years in the year-to-year comparisons.

Year Ended December 31, 2015 vs. Year Ended December 31, 2014

            Minimum rents increased $180.1 million during 2015, of which the property transactions accounted for $55.7 million of the increase. Comparable rents increased $124.4 million, or 4.3%, primarily attributable to an increase in base minimum rents.

            Tenant reimbursements increased $83.2 million, due to a $27.6 million increase attributable to the property transactions and a $55.6 million, or 4.2%, increase in the comparable properties primarily due to annual fixed contractual increases related to common area maintenance and real estate tax recoveries.

            Total other income increased $124.8 million, principally as a result of the following:

            Property operating expense increased $27.4 million, due to a $12.1 million increase related to the property transactions, and a $15.3 million increase in comparable property activity as a result of inflationary cost increases.

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            Real estate taxes increased $48.7 million, of which the property transactions accounted for $15.3 million, with the remaining increase primarily caused by higher tax estimates in 2015.

            During 2015, we recorded a provision for credit losses of $6.6 million whereas in the prior year the provision was $12.0 million, a reflection of the overall strong economic health of our tenants.

            Other expenses increased $11.2 million primarily due to an increase in legal costs and professional fees as well as acquisition-related costs in the first quarter of 2015, partially offset by a favorable net foreign currency revaluation impact on foreign currency-denominated assets and liabilities.

            Interest expense decreased $68.9 million primarily due to the net impact of our financing activities during 2015 and 2014 and the reduction in our effective overall borrowing rate as previously discussed.

            During 2015, we recorded a loss on extinguishment of debt of $121.0 million as a result of an early redemption of senior unsecured notes. During 2014, we recorded a loss on extinguishment of debt of $127.6 million as a result of the tender offers and redemption of senior unsecured notes.

            Income and other taxes decreased $7.9 million primarily due to taxes related to certain of our international investments.

            Income from unconsolidated entities increased $58.0 million primarily due to favorable results of operations and financing activity of joint venture properties as well as our acquisition and development activity.

            During 2015, we disposed of our interests in three unconsolidated retail properties resulting in a gain of $43.6 million and we recorded a non-cash gain on Klépierre's acquisition of Corio of $206.9 million as discussed in Note 3 of the accompanying notes to consolidated financial statements. During 2014, we recorded a gain related to Klépierre's sale of a portfolio of 126 properties and our disposal of three retail properties. Additionally, in 2014, we acquired the remaining 50% interest in Arizona Mills from our joint venture partner. The property was previously accounted for under the equity method and we recognized a non-cash gain upon consolidation of this property. The aggregate gain recognized on these 2014 transactions was $158.3 million.

            Discontinued operations decreased $67.5 million as the twelve months of 2014 included approximately five months of our ownership of the Washington Prime properties, whereas 2015 did not include any ownership of those properties. Results for 2014 also included $38.2 million in transaction costs related to the Washington Prime spin-off.

Year Ended December 31, 2014 vs. Year Ended December 31, 2013

            Minimum rents increased $186.4 million during 2014, of which the property transactions accounted for $32.0 million of the increase. Comparable rents increased $154.4 million, or 5.8%, primarily attributable to an increase in base minimum rents.

            Tenant reimbursements increased $104.2 million, due to a $14.8 million increase attributable to the property transactions and an $89.4 million, or 7.6%, increase in the comparable properties primarily due to utility reimbursements, annual fixed contractual increases related to common area maintenance, real estate tax recoveries and additional marketing recoveries related to costs incurred during our property rebranding initiative and increased digital and social media advertising costs.

            Total other income increased $32.7 million, principally as a result of a $16.1 million increase in lease settlement income, a $8.3 million increase attributable to dividend income and a $7.6 million increase in land sale activity.

            Property operating expense increased $27.6 million due to a $6.5 million increase related to the property transactions, and a $21.1 million increase related to the comparable properties primarily as a result of increased utility expenses partially due to the harsh winter.

            Depreciation and amortization expense increased $36.1 million primarily due to the additional depreciable assets related to the property transactions and our continued redevelopment and expansion activities.

            Advertising and promotion increased $18.8 million primarily related to costs incurred during our property rebranding initiative and increased digital and social media advertising costs.

            Provision for credit losses increased $4.8 million as a result of increased reserves due to an increase in tenant bankruptcies and a decrease in recoveries as compared to 2013. The 2014 expense is in line with longer term historical levels.

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            Home and regional office costs increased $17.6 million primarily related to higher personnel costs including incentive compensation and one-time expenses related to the spin-off of Washington Prime.

            Other expenses increased $7.9 million primarily due to the net foreign currency impact of the change in foreign currency rates from 2013 to 2014.

            Interest expense decreased $89.5 million primarily due to the net impact of our financing activities during 2014 and the reduction in the effective overall borrowing rate.

            During 2014, we recorded a loss on extinguishment of debt of $127.6 million as a result of the debt tender offers and redemption during the third quarter of 2014.

            Income and other taxes decreased $11.5 million primarily due to a decrease in state income taxes and taxes related to certain of our international investments.

            Income from unconsolidated entities increased $20.4 million primarily due to favorable results from operations from the development and redevelopment of joint venture properties and 2013 results including an extinguishment charge related to the refinancing of Aventura Mall.

            During 2014, we recorded a gain related to Klépierre's sale of a portfolio of 126 properties and our disposal of three retail properties. Additionally, we acquired the remaining 50% interest in Arizona Mills from our joint venture partner. The property was previously accounted for under the equity method and we recognized a non-cash gain upon consolidation of this property. The aggregate gain recognized on these transactions was $158.3 million. During 2013, we disposed of our interest in two malls, four community centers, and five retail properties and recorded a gain on the acquisition of an outlet center. The aggregate gain recognized on these transactions was approximately $93.4 million.

            Discontinued operations decreased $117.3 million due to 2014 including approximately five months of ownership of the Washington Prime properties, whereas 2013 included twelve full months of ownership of those properties. The 2013 results also included a $14.2 million gain on the disposal of three strip centers held within a joint venture portfolio of Washington Prime properties. Additionally, on February 28, 2014 one strip center was sold by that same joint venture for a gain of $0.2 million. In 2014, we also incurred $38.2 million in transaction costs related to the Washington Prime spin-off.

Liquidity and Capital Resources

            Because we own long-lived income-producing assets, our financing strategy relies primarily on long-term fixed rate debt. Floating rate debt comprised only 9.4% of our total consolidated debt at December 31, 2015. We also enter into interest rate protection agreements to manage our interest rate risk. We derive most of our liquidity from positive net cash flow from operations and distributions of capital from unconsolidated entities that totaled $3.8 billion in the aggregate during 2015. In addition, the Credit Facility, our $2.75 billion supplemental unsecured revolving credit facility, or Supplemental Facility, and together with the Credit Facility, the Credit Facilities, and the Commercial Paper program provide alternative sources of liquidity as our cash needs vary from time to time. Borrowing capacity under these sources may be increased as discussed further below.

            Our balance of cash and cash equivalents increased $88.9 million during 2015 to $701.1 million as of December 31, 2015 as further discussed in "Cash Flows" below.

            On December 31, 2015, we had an aggregate available borrowing capacity of approximately $4.6 billion under the Credit Facility and the Supplemental Facility, net of outstanding borrowings of $1.2 billion, and amounts outstanding under the Commercial Paper program and letters of credit of $36.9 million. For the year ended December 31, 2015, the maximum amount outstanding under the two Credit Facilities was $1.8 billion and the weighted average amount outstanding was $1.2 billion. The weighted average interest rate was 0.79% for the year ended December 31, 2015. Further, on October 6, 2014, we entered into the global Commercial Paper program and on March 2, 2015, increased the maximum aggregate program size from $500.0 million to $1.0 billion as further discussed below.

            We have historically had access to long and short-term unsecured debt markets and access to secured debt and private equity from institutional investors at the property level while Simon has historically had access to public equity.

            Our business model and Simon's status as a REIT require us to regularly access the debt markets to raise funds for acquisition, development and redevelopment activity, and to refinance maturing debt. Simon may also, from time to time, access the equity capital markets to accomplish our business objectives. We believe we have sufficient cash on hand and availability under the Credit Facility, the Supplemental Facility, and the Commercial Paper program to address our debt maturities and capital needs through 2016.

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            Our net cash flow from operating activities and distributions of capital from unconsolidated entities totaled $3.8 billion during 2015. In addition, we had net proceeds from our debt financing and repayment activities, including the $121.0 million debt extinguishment charge, of $1.2 billion in 2015. These activities are further discussed below under "Financing and Debt." During 2015, we also:

            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's REIT qualification on a long-term basis. In addition, we expect to be able to generate or obtain capital for nonrecurring capital expenditures, such as acquisitions, major building redevelopments and expansions, as well as for scheduled principal maturities on outstanding indebtedness, from:

            We expect to generate positive cash flow from operations in 2016, and we consider these projected cash flows in our sources and uses of cash. These cash flows are principally derived from rents paid by our retail tenants. A significant deterioration in projected cash flows from operations could cause us to increase our reliance on available funds from our Credit Facilities and Commercial Paper program, curtail planned capital expenditures, or seek other additional sources of financing as discussed above.

            At December 31, 2015, our unsecured debt consisted of $13.5 billion of senior unsecured notes, net of discounts, $1.2 billion outstanding under the Credit Facility, $240.0 million outstanding under an unsecured term loan, and $878.7 million outstanding under the Commercial Paper program. The December 31, 2015 balance on the Credit Facility included $237.8 million (U.S. dollar equivalent) of Euro-denominated borrowings and $184.8 million (U.S. dollar equivalent) of Yen-denominated borrowings. At December 31, 2015 the outstanding amount under the Commercial Paper program was $878.7 million, of which $188.1 million was related to the U.S. dollar equivalent of Euro-denominated notes. Foreign currency denominated borrowings under both the Credit Facility and Commercial Paper program are designated as net investment hedges of a portion of our international investments.

            On December 31, 2015, we had an aggregate available borrowing capacity of $4.6 billion under the Credit Facility and the Supplemental Facility. The maximum aggregate outstanding balance under the two Credit Facilities during the year ended December 31, 2015 was $1.8 billion and the weighted average outstanding balance was $1.2 billion. Letters of credit of $36.9 million were outstanding under the two Credit Facilities as of December 31, 2015.

            The Credit Facility's initial borrowing capacity of $4.0 billion may be increased to $5.0 billion during its term and provides for borrowings denominated in U.S. dollars, Euros, Yen, Sterling, Canadian dollars and Australian dollars. Borrowings in currencies other than the U.S. dollar are limited to 75% of the maximum revolving credit amount, as defined. The initial maturity date of the Credit Facility is June 30, 2018 and can be extended for an additional year to June 30, 2019 at our sole option, subject to continued compliance with the terms thereof. The base interest rate on the Credit Facility is LIBOR plus 80 basis points with an additional facility fee of 10 basis points.

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            On March 2, 2015, we amended and extended the Supplemental Facility. The initial borrowing capacity of $2.0 billion has been increased to $2.75 billion, may be further increased to $3.5 billion during its term, will initially mature on June 30, 2019 and can be extended for an additional year to June 30, 2020 at our sole option, subject to our continued compliance with the terms thereof. The base interest rate on the amended Supplemental Facility was reduced to LIBOR plus 80 basis points and the additional facility fee was reduced to 10 basis points. The Supplemental Facility provides for borrowings denominated in U.S. dollars, Euros, Yen, Sterling, Canadian dollars and Australian dollars.

            On March 2, 2015, we increased the maximum aggregate program size of its Commercial Paper program from $500.0 million to $1.0 billion, or the non-U.S. dollar equivalent thereof. We may issue unsecured commercial paper notes, denominated in U.S. dollars, Euros and other currencies. Notes issued in non-U.S. currencies may be issued by one or more of our subsidiaries and are guaranteed by us. Notes are sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above) pari passu with our other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and if necessary or appropriate, we may make one or more draws under either of the Credit Facilities to pay amounts outstanding from time to time on the Commercial Paper program. At December 31, 2015, we had $878.7 million outstanding under the Commercial Paper program, comprised of $690.6 million outstanding in U.S. dollar denominated notes and $188.1 million (U.S. dollar equivalent) of Euro denominated notes with weighted average interest rates of 0.43% and 0.03%, respectively. The borrowings mature on various dates from January 4, 2016 to April 18, 2016 and reduce amounts otherwise available under the Credit Facilities.

            On August 17, 2015, we issued $500.0 million of senior unsecured notes at a fixed interest rate of 2.50% with a maturity date of September 1, 2020 and $600.0 million of senior unsecured notes at a fixed interest rate of 3.50% with a maturity date of September 1, 2025. Proceeds from the unsecured notes offering were used to repay debt and for general corporate purposes.

            On November 18, 2015, a wholly-owned subsidiary of ours issued €750.0 million ($798.3 million U.S. dollar equivalent) of senior unsecured notes at a fixed interest rate of 1.38% with a maturity date of November 18, 2022. Proceeds from the unsecured notes offering were used to pay down a portion of Euro-denominated borrowings on the Credit Facility.

            During 2015, we redeemed at par or repaid at maturity $693.5 million of senior unsecured notes with fixed interest rates ranging from 5.10% to 5.75% and completed the early redemption of two series of senior unsecured notes comprising $1.0 billion with fixed interest rates of 6.13% and 7.38%. We recorded a $121.0 million loss on extinguishment of debt in the fourth quarter of 2015 as a result of the early redemption. Further, on February 1, 2016, we redeemed at par $163.3 million of senior unsecured notes with a fixed interest rate of 6.10%.

            On January 13, 2016, we issued $550.0 million of senior unsecured notes at a fixed interest rate of 2.50% with a maturity date of July 15, 2021 and $800.0 million of senior unsecured notes at a fixed interest rate of 3.30% with a maturity date of January 15, 2026. Proceeds from the unsecured notes offering were used to pay down the Credit Facility, unencumber three assets and redeem senior unsecured notes at par in February 2016 and for general corporate purposes.

            Total mortgage indebtedness was $6.6 billion and $6.2 billion at December 31, 2015 and 2014, respectively.

            During the year ended December 31, 2015, we repaid $259.3 million in mortgage loans, with a weighted average interest rate of 5.51%, unencumbering five properties.

            On January 15, 2015, we acquired two properties — Jersey Gardens in Elizabeth, New Jersey (renamed The Mills at Jersey Gardens) and University Park Village in Fort Worth, Texas, subject to existing fixed-rate mortgage loans of $350.0 million and $55.0 million, respectively. The loans mature on November 1, 2020 and May 1, 2028 and bear interest at 3.83% and 3.85%, respectively.

            Our unsecured debt agreements contain financial covenants and other non-financial covenants. If we were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lender including adjustments to the applicable interest rate. As of December 31, 2015, we were in compliance with all covenants of our unsecured debt.

            At December 31, 2015, we or our subsidiaries were the borrowers under 44 non-recourse mortgage notes secured by mortgages on 49 properties, including four separate pools of cross-defaulted and cross-collateralized mortgages encumbering a total of 11 properties. Under these cross-default provisions, a default under any mortgage included in the

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cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties which serve as collateral for that debt. If the applicable borrower under these non-recourse mortgage notes fails to comply with these covenants, the lender could accelerate the debt and enforce its right against their collateral. At December 31, 2015, the applicable borrowers under these non-recourse mortgage notes were in compliance with all covenants where non-compliance could individually, or giving effect to applicable cross-default provisions in the aggregate, have a material adverse effect on our financial condition, liquidity or results of operations.

            Our consolidated debt, adjusted to reflect outstanding derivative instruments, and the effective weighted average interest rates as of December 31, 2015 and 2014, consisted of the following (dollars in thousands):

Debt Subject to
  Adjusted Balance
as of
December 31, 2015
  Effective
Weighted
Average
Interest Rate
  Adjusted Balance
as of
December 31, 2014
  Effective
Weighted
Average
Interest Rate
 

Fixed Rate

  $ 20,394,511     4.12 % $ 19,424,456     4.63 %

Variable Rate

    2,107,662     1.50 %   1,428,537     1.43 %

  $ 22,502,173     3.88 % $ 20,852,993     4.41 %

            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, 2015, and subsequent years thereafter (dollars in thousands) assuming the obligations remain outstanding through initial maturities including applicable exercise of available extension options:

 
  2016   2017 and 2018   2019 and 2020   After 2020   Total  

Long Term Debt (1)

  $ 2,928,580   $ 4,067,342   $ 5,767,151   $ 9,739,204   $ 22,502,277  

Interest Payments (2)

    827,835     1,297,715     965,978     2,438,097     5,529,625  

Consolidated Capital Expenditure Commitments (3)

    156,867                 156,867  

Lease Commitments (4)

    30,474     61,431     51,839     984,431     1,128,175  
(1)
Represents principal maturities only and therefore, excludes net discounts of $104.

(2)
Variable rate interest payments are estimated based on the LIBOR rate at December 31, 2015.

(3)
Represents contractual commitments for capital projects and services at December 31, 2015. Our share of estimated 2016 development, redevelopment and expansion activity is further discussed below under "Development Activity".

(4)
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 to the notes to consolidated 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, 2015, we guaranteed joint venture related mortgage indebtedness of $353.7 million (of which we have a right of recovery from our venture partners of $112.8 million). Mortgages guaranteed by us are secured by the property of the joint venture which could be sold in order to satisfy the outstanding obligation and which has an estimated fair value in excess of the guaranteed amount. 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.

            Buy-sell, marketing rights, and other exit mechanisms 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. We and our partners in

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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 our partner's interest. 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.    On January 15, 2015, we acquired a 100% interest in Jersey Gardens (renamed The Mills at Jersey Gardens) in Elizabeth, New Jersey and University Park Village in Fort Worth, Texas, properties previously owned by Glimcher Realty Trust, for $677.9 million of cash and the assumption of existing mortgage debt of $405.0 million.

            In February 2016, our European outlet joint venture acquired a 75% interest in an outlet center in Ochtrup, Germany for cash consideration of approximately $34.9 million.

            Dispositions.    We continue to pursue the disposition of properties that no longer meet our strategic criteria or that are not a primary retail venue within their trade area.

            During 2015, we disposed of our interests in three unconsolidated retail properties. The aggregate gain recognized on these transactions was approximately $43.6 million.

            In January of 2016, we disposed of our interests in two residential properties and a consolidated retail property. The aggregate gain from these transactions was $36.8 million.

            On April 13, 2015, we announced a joint venture with Sears, whereby Sears contributed 10 of its properties located at our malls to the joint venture in exchange for a 50% noncontrolling interest in the joint venture. We contributed $114.0 million in cash in exchange for a 50% noncontrolling interest in the joint venture. Sears or its affiliates are leasing back each of the 10 properties from the joint venture. The joint venture has the right to recapture not less than 50% of the space leased to Sears to be used for purposes of redeveloping and releasing the recaptured space. We will provide development, leasing and management services to the joint venture for any recaptured space. On July 7, 2015, we separately invested approximately $33.0 million in exchange for 1,125,760 common shares of Seritage, a public REIT recently formed by Sears. Seritage now holds Sears' interest in the joint venture.

            On July 22, 2015, we closed on our previously announced joint venture with HBC, to which HBC contributed 42 properties in the U.S. and we committed to contribute $100.0 million for improvements to the properties contributed by HBC in exchange for a noncontrolling interest in the newly formed joint venture. As of December 31, 2015, we have funded $1.0 million of this commitment. On September 30, 2015, HBC announced it had closed on the acquisition of Galeria Holding, the parent company of Germany's leading department store, Kaufhof. In conjunction with the closing, the joint venture acquired 41 Kaufhof properties in Germany from HBC. All of the joint venture's properties have been leased to affiliates of HBC. We contributed an additional $178.5 million to the joint venture upon closing of the Galeria Holding transaction. Our noncontrolling interest in the joint venture is currently approximately 8.9%.

            New Domestic Developments, Redevelopments and Expansions.    During 2015, construction began on the following properties:

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            During 2015, the following Premium Outlets opened:

            On April 23, 2015, we announced a partnership with Swire Properties Inc. and Whitman Family Development to jointly develop the approximately 500,000 square foot shopping center component of Brickell City Centre, a mixed-use development in downtown Miami. We own a 25% interest in the retail component of this project, which is scheduled to open in September 2016. Our share of the estimated cost of this project is approximately $110.0 million.

            We routinely incur costs related to construction for significant redevelopment and expansion projects at our properties. Redevelopment and expansion projects, including the addition of anchors and big box tenants, are underway at 27 properties in the U.S.

            Summary of Capital Expenditures.    The following table summarizes total capital expenditures on consolidated properties on a cash basis (in millions):

 
  2015   2014   2013  

New Developments

  $ 139   $ 52   $ 40  

Redevelopments and Expansions

    699     500     509  

Tenant Allowances

    91     134     124  

Operational Capital Expenditures

    92     79     75  

Capital Expenditures on Washington Prime properties

        32     93  

Total

  $ 1,021   $ 797   $ 841  

            Our share of the costs of all development and redevelopment projects currently under construction is approximately $2.1 billion. We expect to fund these capital projects with cash flows from operations. Our estimated stabilized return on invested capital typically ranges between 8-12% for all of our new development, expansion and redevelopment projects.

            International Development Activity.    We typically reinvest net cash flow from our international joint ventures 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 most of our foreign investments with local currency-denominated borrowings that act as a natural hedge against fluctuations in exchange rates. Our consolidated net income exposure to changes in the volatility of the Euro, Yen, Won, and other foreign currencies is not material. We expect our share of international development costs for 2016 will be approximately $160.0 million, primarily funded through reinvested joint venture cash flow and construction loans.

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            The following table describes these new development and expansion projects as well as our share of the estimated total cost as of December 31, 2015 (in millions):

Property
  Location   Gross
Leasable
Area (sqft)
  Our
Ownership
Percentage
  Our Share of
Projected
Net Cost
(in Local
Currency)
  Our
Share of
Projected
Net Cost
(in USD)
  Projected Opening
Date

New Development Projects:

                               

Vancouver Designer Outlets

  Vancouver (British Columbia), Canada     242,000     45 %   CAD 70.2   $ 56.5   Opened Jul. - 2015

Provence Designer Outlets

  Miramas, France     269,000     90 %   EUR 105.4   $ 115.3   Mar. - 2017

Siheung Premium Outlets

  Siheung, Korea     399,000     50 %   KRW 135,576   $ 115.3   May - 2017

Expansions:

 

 

   
 
   
 
   
 
   
 
 

 

Yeoju Premium Outlets Phase 2

  Gyeonggi Province, South Korea     265,400     50 %   KRW 79,361   $ 71.8   Opened Feb. - 2015

Shisui Premium Outlets Phase 2

  Shisui (Chiba), Japan     130,000     40 %   JPY 2,895   $ 24.1   Opened Apr - 2015

Noventa Di Piave Designer Outlets Phase 4

  Venice, Italy     67,000     60 %   EUR 28.3   $ 30.9   Mar. - 2017

Roermond Designer Outlets Phase 4

  Roermond, Netherlands     125,000     32 %   EUR 21.5   $ 23.5   Apr. - 2017

            On January 20, 2016, we announced a venture with Ivanhoe Cambridge to build a 428,000 square foot enclosed outlet center in Edmonton, Canada, scheduled to open in the fall of 2017. We will have a 50% noncontrolling interest in this project.

Distributions and Stock Repurchase Program

            Distributions during 2015 aggregated $6.05 per unit. Distributions during 2014 aggregated $5.15 per unit. In January 2016, Simon's Board of Directors declared a quarterly cash dividend of $1.60 per share of common stock payable on February 29, 2016 to stockholders of record on February 12, 2016. The distribution rate on our units is equal to the dividend rate on Simon's common stock. We must pay a minimum amount of distributions to maintain Simon's status as a REIT. Our future distributions will be determined by Simon's Board of Directors, in its sole discretion, based on actual and projected financial condition, liquidity and results of operations, cash available for distributions, cash reserves as deemed necessary for capital and operating expenditures, financing covenants, if any, and the amount required to maintain Simon's status as a REIT.

            On April 2, 2015, Simon's Board of Directors authorized a common stock repurchase program under which Simon may purchase up to $2.0 billion of its common stock over a twenty-four month period as market conditions warrant. Simon may repurchase the shares in the open market or in privately negotiated transactions. Through December 31, 2015, Simon repurchased 1,903,340 shares at an average price of $180.19 per share of its common stock as part of this program. As a result of these share repurchases, we repurchased a like number of units from Simon.

Forward-Looking Statements

            Certain statements made in this section or elsewhere in this Annual Report on Form 10-K 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: our ability to meet debt service requirements, the availability and terms of financing, changes in our credit rating or outlook, changes in market rates of interest and foreign exchange rates for foreign currencies, changes in value of investments in foreign entities, the ability to hedge interest rate and currency risk, risks associated with the acquisition, development, expansion, leasing and management of properties, general risks related to retail real estate, the liquidity of real estate investments, environmental liabilities, international, national, regional and local economic conditions, changes in market rental rates, security breaches that could compromise our information technology or infrastructure or personally identifiable data of customers of our retail properties, 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, the intensely competitive market environment in the retail industry, costs of common area maintenance, risks related to international activities, insurance costs and coverage, the loss of key management personnel, terrorist activities, changes in economic and market conditions and maintenance of Simon's status as a REIT. We discussed these and other risks and uncertainties under the heading "Risk Factors" in Part I, Item1A of this Annual Report on Form 10-K. We may update that discussion in subsequent other periodic reports, but 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.

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Non-GAAP Financial Measures

            Industry practice is to evaluate real estate properties in part based on performance measures such as FFO, NOI and comparable property NOI. We believe that these non-GAAP measures are helpful to investors because they are widely recognized measures of the performance of REITs and provide a relevant basis for comparison among REITs. We also use these measures internally to measure the operating performance of our portfolio.

            We determine FFO based on the definition set forth by the National Association of Real Estate Investment Trusts, or NAREIT, as consolidated net income computed in accordance with GAAP:

            We have adopted NAREIT's clarification of the definition of FFO that requires us to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting changes, or a gain or loss resulting from the sale or disposal of, or any impairment charges related to, previously depreciated operating properties.

            We include in FFO gains and losses realized from the sale of land, outlot buildings, marketable and non-marketable securities, and investment holdings of non-retail real estate. We also include in FFO the impact of foreign currency exchange gains and losses, legal expenses, transaction expenses and other items required by GAAP.

            You should understand that our computation of these non-GAAP measures might not be comparable to similar measures reported by other REITs and that these non-GAAP measures:

            The following schedule reconciles total FFO to consolidated net income.

 
  2015   2014   2013  
 
  (in thousands)
 

Funds from Operations

  $ 3,571,237   $ 3,235,298   $ 3,205,693  

Increase in FFO from prior period

    10.4%     0.9%     11.1%  

Consolidated Net Income

  $ 2,139,375   $ 1,651,526   $ 1,551,590  

Adjustments to Arrive at FFO:

                   

Depreciation and amortization from consolidated properties

    1,160,916     1,204,624     1,273,646  

Our share of depreciation and amortization from unconsolidated entities, including Klépierre

    533,330     549,138     511,200  

Gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net

    (250,516 )   (158,550 )   (107,515 )

Net income attributable to noncontrolling interest holders in properties

    (2,984 )   (2,491 )   (8,990 )

Noncontrolling interests portion of depreciation and amortization

    (3,632 )   (3,697 )   (8,986 )

Preferred unit requirements

    (5,252 )   (5,252 )   (5,252 )

FFO from Operations (A)(B)(C)

  $ 3,571,237   $ 3,235,298   $ 3,205,693  

(A)
Includes FFO related to the Washington Prime properties, net of transaction expenses, of $108.0 million and $360.3 million for the years ended December 31, 2014 and 2013, respectively.

(B)
Includes FFO related to a gain on sale of marketable securities of $80.2 million for the year ended December 31, 2015.

(C)
FFO includes a loss on extinguishment of debt of $121.0 million and $127.6 million for the years ended December 31, 2015 and 2014, respectively.

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            The following schedule reconciles consolidated net income to NOI and sets forth the computations of comparable property NOI.

 
  For the Year Ended
December 31,
 
 
  2015   2014  
 
  (in thousands)
 

Reconciliation of NOI of consolidated properties:

             

Consolidated Net Income

  $ 2,139,375   $ 1,651,526  

Discontinued operations

        (67,524 )

Discontinued operations transaction expenses

        38,163  

Income and other taxes

    20,170     28,085  

Interest expense

    923,697     992,601  

Income from unconsolidated entities

    (284,806 )   (226,774 )

Loss on extinguishment of debt

    120,953     127,573  

Gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net

    (250,516 )   (158,308 )

Operating Income

    2,668,873     2,385,342  

Depreciation and amortization

    1,177,568     1,143,827  

NOI of consolidated properties

  $ 3,846,441   $ 3,529,169  

Reconciliation of NOI of unconsolidated entities:

             

Net Income

  $ 822,766   $ 677,371  

Interest expense

    593,187     598,900  

Gain on sale or disposal of assets and interests in unconsolidated entities

    (67,176 )    

Income from operations of discontinued joint venture interests

        (5,079 )

Operating Income

    1,348,777     1,271,192  

Depreciation and amortization

    594,973     604,199  

NOI of unconsolidated entities

  $ 1,943,750   $ 1,875,391  

Total consolidated and unconsolidated NOI from continuing operations

  $ 5,790,191   $ 5,404,560  

Change in total NOI from continuing operations from prior period

    7.1%        

Adjustments to NOI:

             

NOI of discontinued consolidated properties

        169,828  

NOI of discontinued unconsolidated properties

        17,445  

Total NOI of our portfolio

  $ 5,790,191   $ 5,591,833  

Add: Our share of NOI from Klépierre

    191,551     223,013  

Less: Joint venture partners' share of NOI from continuing operations

    1,017,519     966,154  

Less: Joint venture partners' share of NOI from discontinued operations

        12,998  

Our share of NOI

  $ 4,964,223   $ 4,835,694  

Total NOI of our portfolio

  $ 5,790,191   $ 5,591,833  

NOI from non comparable properties (1)

    884,918     861,030  

Total NOI of comparable properties (2)

  $ 4,905,273   $ 4,730,803  

Increase in NOI of U.S. Malls, Premium Outlets, and The Mills that are comparable properties

    3.7%        

(1)
NOI excluded from comparable property NOI relates to Washington Prime properties, international properties, other retail properties, TMLP properties, any of our non-retail holdings and results of our corporate and management company operations, NOI of U.S. Malls, Premium Outlets, and The Mills not owned and operated in both periods under comparison and excluded income noted in footnote 2 below.

(2)
Excludes lease termination income, interest income, land sale gains, straight line rent, above/below market rent adjustments, and the impact of significant redevelopment activities.

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Item 7A.    Qualitative and Quantitative Disclosure About 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 anticipated issuances of senior notes. Upon completion of the debt issuance, the cost of these instruments is recorded as part of accumulated other comprehensive income (loss) 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, which was at historically low levels during 2015. Based upon consolidated indebtedness and interest rates at December 31, 2015, a 50 basis point increase in the market rates of interest would decrease future earnings and cash flows by approximately $10.5 million, and would decrease the fair value of debt by approximately $501.2 million.

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Item 8.    Financial Statements and Supplementary Data

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, 2015 based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (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, 2015, 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, 2015 and 2014, 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, 2015 of Simon Property Group, L.P. and Subsidiaries, and our report dated February 26, 2016 expressed an unqualified opinion thereon.

    /s/ ERNST & YOUNG LLP

Indianapolis, Indiana
February 26, 2016

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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, 2015 and 2014, 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, 2015. 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, 2015 and 2014, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, 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, 2015, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated February 26, 2016, expressed an unqualified opinion thereon.

    /s/ ERNST & YOUNG LLP

Indianapolis, Indiana
February 26, 2016

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

 
  December 31,
2015
  December 31,
2014
 

ASSETS:

             

Investment properties at cost

  $ 33,463,124   $ 31,318,532  

Less — accumulated depreciation

    9,915,386     8,950,747  

    23,547,738     22,367,785  

Cash and cash equivalents

    701,134     612,282  

Tenant receivables and accrued revenue, net

    624,605     580,197  

Investment in unconsolidated entities, at equity

    2,481,574     2,378,800  

Investment in Klepierre, at equity

    1,943,363     1,786,477  

Deferred costs and other assets

    1,352,259     1,806,789  

Total assets

  $ 30,650,673   $ 29,532,330  

LIABILITIES:

             

Mortgages and unsecured indebtedness

  $ 22,502,173   $ 20,852,993  

Accounts payable, accrued expenses, intangibles, and deferred revenues                 

    1,323,801     1,259,681  

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

    1,368,544     1,167,163  

Other liabilities

    214,249     275,451  

Total liabilities

    25,408,767     23,555,288  

Commitments and contingencies

   
 
   
 
 

Preferred units, at liquidation value

   
25,537
   
25,537
 

EQUITY:

   
 
   
 
 

Partners' Equity

             

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

    43,733     44,062  

General Partner, 309,420,569 and 310,787,910 units outstanding, respectively                 

    4,427,731     5,049,115  

Limited Partners, 51,814,235 and 52,846,682 units outstanding, respectively

    741,449     858,557  

Total partners' equity

    5,212,913     5,951,734  

Nonredeemable noncontrolling deficit interests in properties, net

    3,456     (229 )

Total equity

    5,216,369     5,951,505  

Total liabilities and equity

  $ 30,650,673   $ 29,532,330  

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,
 
 
  2015   2014   2013  

REVENUE:

                   

Minimum rent

  $ 3,142,347   $ 2,962,295   $ 2,775,919  

Overage rent

    194,070     207,104     214,758  

Tenant reimbursements

    1,445,623     1,362,412     1,258,165  

Management fees and other revenues

    158,466     138,226     126,972  

Other income

    325,597     200,781     168,035  

Total revenue

    5,266,103     4,870,818     4,543,849  

EXPENSES:

                   

Property operating

    425,983     398,598     371,044  

Depreciation and amortization

    1,177,568     1,143,827     1,107,700  

Real estate taxes

    432,840     384,189     368,683  

Repairs and maintenance

    101,369     100,016     98,219  

Advertising and promotion

    134,854     136,656     117,894  

Provision for credit losses

    6,635     12,001     7,165  

Home and regional office costs

    154,816     158,576     140,931  

General and administrative

    60,329     59,958     59,803  

Other

    102,836     91,655     83,741  

Total operating expenses

    2,597,230     2,485,476     2,355,180  

OPERATING INCOME

    2,668,873     2,385,342     2,188,669  

Interest expense

   
(923,697

)
 
(992,601

)
 
(1,082,081

)

Loss on extinguishment of debt

    (120,953 )   (127,573 )    

Income and other taxes

    (20,170 )   (28,085 )   (39,538 )

Income from unconsolidated entities

    284,806     226,774     206,380  

Gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net

    250,516     158,308     93,363  

Consolidated income from continuing operations

    2,139,375     1,622,165     1,366,793  

Discontinued operations and gain on disposal

        67,524     184,797  

Discontinued operations transaction expenses

        (38,163 )    

CONSOLIDATED NET INCOME

    2,139,375     1,651,526     1,551,590  

Net income attributable to noncontrolling interests

    2,984     2,491     8,990  

Preferred unit requirements

    5,252     5,252     5,252  

NET INCOME ATTRIBUTABLE TO UNITHOLDERS

  $ 2,131,139   $ 1,643,783   $ 1,537,348  

NET INCOME ATTRIBUTABLE TO UNITHOLDERS ATTRIBUTABLE TO:

                   

General Partner

  $ 1,824,383     1,405,251   $ 1,316,304  

Limited Partners

    306,756     238,532     221,044  

Net income attributable to unitholders

  $ 2,131,139   $ 1,643,783   $ 1,537,348  

BASIC AND DILUTED EARNINGS PER UNIT

                   

Income from continuing operations

  $ 5.88   $ 4.44   $ 3.73  

Discontinued operations

        0.08     0.51  

Net income attributable to unitholders

  $ 5.88   $ 4.52   $ 4.24  

Consolidated net income

  $ 2,139,375   $ 1,651,526   $ 1,551,590  

Unrealized gain on derivative hedge agreements

    17,122     5,220     7,101  

Net (gain) loss reclassified from accumulated other comprehensive loss into earnings

    (69,189 )   10,789     9,205  

Currency translation adjustments

    (160,312 )   (101,799 )   2,865  

Changes in available-for-sale securities and other

    (11,200 )   102,816     (1,479 )

Comprehensive income

    1,915,796     1,668,552     1,569,282  

Comprehensive income attributable to noncontrolling interests

    2,984     2,491     8,990  

Comprehensive income attributable to unitholders

  $ 1,912,812   $ 1,666,061   $ 1,560,292  

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,
 
 
  2015   2014   2013  

CASH FLOWS FROM OPERATING ACTIVITIES:

                   

Consolidated Net Income

  $ 2,139,375   $ 1,651,526   $ 1,551,590  

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

                   

Depreciation and amortization

    1,239,214     1,285,784     1,332,950  

Loss on debt extinguishment

    120,953     127,573      

Gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net

    (250,516 )   (158,550 )   (107,515 )

Gain on sale of marketable securities

    (80,187 )        

Straight-line rent

    (54,129 )   (48,880 )   (48,264 )

Equity in income of unconsolidated entities

    (284,806 )   (227,426 )   (205,259 )

Distributions of income from unconsolidated entities            

    271,998     202,269     179,054  

Changes in assets and liabilities —

                   

Tenant receivables and accrued revenue, net

    9,918     (6,730 )   (13,938 )

Deferred costs and other assets

    (122,677 )   (65,569 )   (30,013 )

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

    35,542     (29,577 )   42,391  

Net cash provided by operating activities

    3,024,685     2,730,420     2,700,996  

CASH FLOWS FROM INVESTING ACTIVITIES:

                   

Acquisitions

    (1,410,881 )   (85,459 )   (866,541 )

Funding of loans to related parties

        (50,892 )   (99,079 )

Repayments of loans to related parties

        170,953      

Capital expenditures, net

    (1,020,924 )   (796,736 )   (841,209 )

Cash impact from the consolidation of properties

        5,402      

Net proceeds from sale of assets

    33,015         274,058  

Investments in unconsolidated entities

    (329,928 )   (239,826 )   (143,149 )

Purchase of marketable and non-marketable securities

    (59,523 )   (391,188 )   (44,117 )

Proceeds from sale of marketable and non-marketable securities

    504,012         47,495  

Distributions of capital from unconsolidated entities and other

    821,509     490,480     724,454  

Net cash used in investing activities

    (1,462,720 )   (897,266 )   (948,088 )

CASH FLOWS FROM FINANCING ACTIVITIES:

                   

Issuance of units

    (285 )   277     99  

Purchase of units related to stock grant recipients' tax withholdings

    (3,301 )        

Cash impact of Washington Prime spin-off

        (33,776 )    

Redemption of limited partner units

        (14,435 )    

Purchase of limited partner units and treasury stock

    (505,691 )        

Purchase of noncontrolling interest in consolidated properties and other

        (172,652 )    

Distributions to noncontrolling interest holders in properties

    (8,041 )   (21,259 )   (9,335 )

Contributions from noncontrolling interest holders in properties

    4,552     1,738     6,053  

Partnership distributions

    (2,196,041 )   (1,877,158 )   (1,690,553 )

Loss on debt extinguishment

    (120,953 )   (127,573 )    

Mortgage and unsecured indebtedness proceeds, net of transaction costs

    10,468,667     3,627,154     2,919,364  

Mortgage and unsecured indebtedness principal payments            

    (9,112,020 )   (5,323,186 )   (2,446,191 )

Proceeds from issuance of debt related to Washington Prime properties, net

        1,003,135      

Net cash used in financing activities

    (1,473,113 )   (2,937,735 )   (1,220,563 )

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (NOTE 3)

    88,852     (1,104,581 )   532,345  

CASH AND CASH EQUIVALENTS, beginning of period

    612,282     1,716,863     1,184,518  

CASH AND CASH EQUIVALENTS, end of period

  $ 701,134   $ 612,282   $ 1,716,863  

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, 2012

  $ 44,719   $ 5,865,884   $ 983,363   $ (877 ) $ 6,893,089  

General partner contributions (1,567 units)

          90                 90  

Series J preferred stock premium and amortization

    (329 )                     (329 )

Limited partner units exchanged to common units (596,051 units)

          11,161     (11,161 )          

Stock incentive program (107,123 units, net)

                           

Amortization of stock incentive

          18,311                 18,311  

Issuance of unit equivalents and other (489,654 units)

          (7,516 )   44,107     5,294     41,885  

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

          28,382     (28,382 )          

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,337 )   (1,442,705 )   (242,596 )   (285 )   (1,688,923 )

Net income, excluding preferred distributions on temporary equity preferred units of $1,915 and $8,858 attributable to noncontrolling redeemable interests in properties in temporary equity

    3,337     1,316,304     221,044     132     1,540,817  

Other comprehensive income

          15,105     2,587           17,692  

Balance at December 31, 2013

  $ 44,390   $ 5,805,016   $ 968,962   $ 4,264   $ 6,822,632  

Issuance of limited partner units (555,150)

                84,910           84,910  

Series J preferred stock premium and amortization

    (328 )                     (328 )

Limited partner units exchanged to common units (70,291 units)

          1,297     (1,297 )          

Stock incentive program (83,509 units, net)

                           

Redemption of limited partner units (87,621 units)

          (12,972 )   (1,463 )         (14,435 )

Amortization of stock incentive

          18,256                 18,256  

Spin-off of Washington Prime

          (694,457 )   (118,306 )         (812,763 )

Long-term incentive performance units

                49,938           49,938  

Issuance of unit equivalents and other (603,287 units and 25,545 common units)

          18,885         12,081     30,966  

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

          93,351     (93,351 )          

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,337 )   (1,600,266 )   (271,640 )   (19,065 )   (1,894,308 )

Net income, excluding preferred distributions on temporary equity preferred units of $1,915

    3,337     1,405,251     238,532     2,491     1,649,611  

Other comprehensive income

          14,754     2,272           17,026  

Balance at December 31, 2014

  $ 44,062   $ 5,049,115   $ 858,557   $ (229 ) $ 5,951,505  

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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
 

Series J preferred stock premium and amortization

    (329 )                     (329 )

Limited partner units exchanged to common units (489,291 units)

          7,942     (7,942 )          

Stock incentive program (63,738 units, net)

                           

Redemption of limited partner units (944,359 units)

          (147,841 )   (14,843 )         (162,684 )

Amortization of stock incentive

          13,692                 13,692  

Treasury unit purchase (1,903,340 units)

          (343,007 )               (343,007 )

Long-term incentive performance units

                47,279           47,279  

Issuance of unit equivalents and other (401,203 units and 17,030 common units)

          (10,543 )       4,537     (6,006 )

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

          101,480     (101,480 )          

Distributions, excluding distributions on preferred interests classified as temporary equity

    (3,337 )   (1,875,845 )   (314,944 )   (3,836 )   (2,197,962 )

Net income, excluding preferred distributions on temporary equity preferred units of $1,915

    3,337     1,824,383     306,756     2,984     2,137,460  

Other comprehensive income

          (191,645 )   (31,934 )         (223,579 )

Balance at December 31, 2015

  $ 43,733   $ 4,427,731   $ 741,449   $ 3,456   $ 5,216,369  

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., a Delaware corporation. 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" refers specifically to Simon Property Group, Inc. (NYSE: SPG). Simon is a self-administered and self-managed real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. REITs will generally not be liable for federal corporate income taxes as long as they distribute not less than 100% of their REIT taxable income. According to our partnership agreement, we are required to pay all expenses of Simon.

            We own, develop and manage retail real estate properties, which consist primarily of malls, Premium Outlets®, and The Mills®. As of December 31, 2015, we owned or held an interest in 209 income-producing properties in the United States, which consisted of 108 malls, 71 Premium Outlets, 14 Mills, four lifestyle centers, and 12 other retail properties in 37 states and Puerto Rico. Internationally, as of December 31, 2015, we had ownership interests in nine Premium Outlets in Japan, three Premium Outlets in South Korea, two Premium Outlets in Canada, one Premium Outlet in Mexico, and one Premium Outlet in Malaysia. As of December 31, 2015, we had a noncontrolling ownership interest in a joint venture that holds five outlet properties in Europe and one outlet property in Canada. Of the five properties in Europe, two are located in Italy and one each is located in Austria, the Netherlands, and the United Kingdom. Additionally, as of December 31, 2015, we owned a 20.3% equity stake in Klépierre SA, or Klépierre, a publicly traded, Paris-based real estate company which owns, or has an interest in, shopping centers located in 16 countries in Europe.

            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 grow by generating supplemental revenues from the following activities:

2. Basis of Presentation and Consolidation

            The accompanying consolidated financial statements include the accounts of all controlled 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. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive

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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)

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 2015 in previous conclusions about whether an entity qualifies as a VIE or whether we are the primary beneficiary of any previously identified VIE. During 2014 and 2015, 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, cash contributions and distributions, and foreign currency fluctuations, if applicable. 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, 2015, we consolidated 137 wholly-owned properties and 13 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 81 properties, or the joint venture properties, as well as our investment in Klépierre and our joint venture with Hudson's Bay Company, or HBC, using the equity method of accounting, as we have determined we have significant influence over their operations. We manage the day-to-day operations of 58 of the 81 joint venture properties, but have determined that our partner or partners have substantive participating rights with respect to the assets and operations of these joint venture properties. Our investments in joint ventures in Japan, South Korea, Mexico, Malaysia, and the six outlet properties owned by our European joint venture comprise 20 of the remaining 23 properties. These international properties are managed by joint ventures in which we share control.

            We allocate our net operating results after preferred distributions based on our partners' respective weighted average ownership. Simon 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 preferred stock. Simon's weighted average ownership interest in us was as follows:

 
  For the Year Ended
December 31,
 
 
  2015   2014   2013  

Weighted average ownership interest

    85.6 %   85.5 %   85.6 %

            As of December 31, 2015 and 2014, Simon's ownership interest in us was 85.7% and 85.5%, respectively. We adjust the noncontrolling limited partners' interests at the end of each period to reflect their respective interests in us.

            Preferred unit requirements in the accompanying consolidated statements of operations and comprehensive income represent distributions on outstanding preferred units held by limited partners and are recorded when declared.

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

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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)

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,
 
 
  2015   2014   2013  

Capitalized interest

  $ 32,664   $ 16,500   $ 15,585  

            We record depreciation on buildings and improvements utilizing the straight-line method over an estimated original useful life, which is generally 10 to 35 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 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 a property's cash flows, ending occupancy or total sales per square foot. 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. Changes in economic and operating conditions that occur subsequent to our review of recoverability of investment property and other investments could impact the assumptions used in that assessment and could result in future charges to earnings if assumptions regarding those investments differ from actual results.

            We allocate the purchase price of acquisitions and any excess investment in unconsolidated entities 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:

            The fair value of buildings is depreciated over the estimated remaining life of the acquired building or related improvements. We amortize 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.

            On May 28, 2014, we completed the spin-off of our interests in 98 properties comprised of substantially all of our strip center business and our smaller enclosed malls to WP Glimcher Inc. (formerly known as Washington Prime Group Inc.), or Washington Prime, an independent, publicly traded REIT. The spin-off was effectuated through a distribution of the

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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)

common shares of Washington Prime to holders of Simon common stock as of the distribution record date, and qualified as a tax-free distribution for U.S. federal income tax purposes. For every two shares of Simon common stock held as of the record date of May 16, 2014, Simon stockholders received one Washington Prime common share on May 28, 2014. At the time of the separation and distribution, Washington Prime owned a percentage of the outstanding units of partnership interest of Washington Prime Group, L.P. that was approximately equal to the percentage of our outstanding units owned by Simon. The remaining units of Washington Prime Group, L.P. were owned by our limited partners who received one Washington Prime Group, L.P. unit for every two units they owned of us. Subsequent to the spin-off, we retained a nominal interest in Washington Prime Group, L.P. We also retained approximately $1.0 billion of proceeds from completed unsecured debt and mortgage debt as part of the spin-off and incurred $38.2 million in transaction costs during 2014 related to the spin-off of Washington Prime.

            The historical results of operations of the Washington Prime properties have been presented as discontinued operations in our consolidated statements of operations and comprehensive income. The accompanying consolidated statement of cash flows includes, within operating, investing and financing cash flows, those activities which related to our period of ownership of the Washington Prime properties.

            Summarized financial information for discontinued operations for the years ended December 31, 2014 and 2013 is present below.

 
  For the Year Ended  
 
  2014   2013  

TOTAL REVENUE

  $ 262,652   $ 626,289  

Property Operating

   
43,175
   
104,089
 

Depreciation and amortization

    76,992     182,828  

Real estate taxes

    32,474     76,216  

Repairs and maintenance

    10,331     22,584  

Advertising and promotion

    3,340     8,316  

Provision for credit losses

    1,494     572  

Other

    2,028     4,664  

Total operating expenses

    169,834     399,269  

OPERATING INCOME

   
92,818
   
227,020
 

Interest expense

   
(26,076

)
 
(55,058

)

Income and other taxes

    (112 )   (196 )

Income (loss) from unconsolidated entities

    652     (1,121 )

Gain upon acquisition of controlling interests, sale or disposal of assets and interests in unconsolidated entities, and impairment charge on investment in unconsolidated entities, net

    242     14,152  

CONSOLIDATED NET INCOME

    67,524     184,797  

Net income attributable to noncontrolling interests

   
9,781
   
26,571
 

NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS

  $ 57,743   $ 158,226  

            Capital expenditures on a cash basis for the years ended December 31, 2014 and 2013 were $31.9 million and $93.3 million, respectively.

            We and Washington Prime entered into property management and transitional services agreements in connection with the spin-off whereby we provide certain services to Washington Prime and its properties that were previously owned by us. Pursuant to the terms of the property management agreements, we manage, lease, and maintain those Washington Prime mall properties under the direction of Washington Prime. In exchange, Washington Prime pays us annual fixed rate property management fees ranging from 2.5% to 4.0% of base minimum and percentage rents, reimburses us for direct

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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)

out-of-pocket costs and expenses and also pays us separate fees for any leasing and development services we provide. The property management agreements had an initial term of two years and will terminate upon the two-year anniversary of the spinoff. Either party may terminate the property management agreements on or after the two-year anniversary of the spin-off upon 180 days prior written notice.

            We also provide certain support services to the Washington Prime strip centers that were previously owned by us and certain of its central functions to assist Washington Prime as it establishes its stand-alone processes for various activities that were previously provided by us. These services, which do not constitute significant continuing support of Washington Prime's operations, include assistance in the areas of information technology, treasury and financial management, payroll, lease administration, taxation and procurement. The charges for such services are intended to allow us to recover costs of providing these services. The transition services agreement will terminate upon the two-year anniversary of the spinoff. Transitional services fees earned for 2015 and for the portion of 2014 subsequent to the spin-off were approximately $5.7 million and $3.2 million, respectively.

            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 market deposits or securities. 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 of high credit quality. However, at certain times, such cash and cash equivalents are in excess of FDIC and SIPC insurance limits. See Notes 4 and 10 for disclosures about non-cash investing and financing transactions.

            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. At December 31, 2015 and 2014, we had marketable securities of $183.8 million and $643.0 million, respectively, generally accounted for as available-for-sale, which are adjusted to their quoted market price with a corresponding adjustment in other comprehensive income (loss). Net unrealized gains recorded in accumulated other comprehensive income (loss) as of December 31, 2015 and 2014 were approximately $12.6 million and $103.9 million, respectively, and represent the valuation adjustments for our marketable securities.

            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.

            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.

            On June 24, 2015, we sold our investment in certain marketable securities that were accounted for as an available-for-sale security, with the value adjusted to its quoted market price through other comprehensive income (loss).

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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)

At the date of sale, we owned 5.71 million shares. The aggregate proceeds received from the sale were $454.0 million, and we recognized a gain on the sale of $80.2 million, which is included in other income in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2015.

            At December 31, 2015 and 2014, we had investments of $181.4 million and $167.1 million, respectively, in non-marketable securities that we account for under the cost method. We regularly evaluate these investments for any other-than-temporary impairment in their estimated fair value and determined that no adjustment in the carrying value was required.

            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. We have no investments for which fair value is measured on a recurring basis using Level 3 inputs.

            The marketable securities we held at December 31, 2015 and 2014 were primarily classified as having Level 1 fair value inputs. In addition, we had derivative instruments which were 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 $2.1 million at December 31, 2014, and a gross asset value of $27.8 million and $20.1 million at December 31, 2015 and 2014, respectively.

            Note 8 includes a discussion of the fair value of debt measured using Level 2 inputs. Notes 3 and 4 include discussions of the fair values recorded in purchase accounting using Level 2 and Level 3 inputs. Level 3 inputs to our purchase accounting and impairment analyses include our estimations of net operating results of the property, capitalization rates and discount rates.

            When one of our equity method investees issues additional shares to third parties, our percentage ownership interest in the investee may decrease. In the event the issuance price per share is higher or lower than our average carrying amount per share, we recognize a noncash gain or loss on the issuance, when appropriate. This noncash gain or loss is recognized in our net income in the period the change of ownership interest occurs.

            In 2015, as discussed in Note 7, we recorded a non-cash gain of $206.9 million related to Klépierre's issuance of shares in connection with Klépierre's acquisition of Corio N.V., or Corio, which is included in gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income.

            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 malls, Premium Outlets, The Mills, and our international investments into one reportable segment because they have similar economic characteristics and we provide similar products and services to similar types of, and in many cases, the same tenants.

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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)

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

 
  2015   2014  

Deferred financing and lease costs, net

  $ 325,720   $ 312,569  

In-place lease intangibles, net

    188,219     216,330  

Acquired above market lease intangibles, net

    67,363     75,366  

Marketable securities of our captive insurance companies

    87,257     111,844  

Goodwill

    20,098     20,098  

Other marketable and non-marketable securities

    278,026     698,265  

Prepaids, notes receivable and other assets, net

    385,576     372,317  

  $ 1,352,259   $ 1,806,789  

            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:

 
  2015   2014  

Deferred financing and lease costs

  $ 567,862   $ 533,050  

Accumulated amortization

    (242,142 )   (220,481 )

Deferred financing and lease costs, net

  $ 325,720   $ 312,569  

            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 unsecured indebtedness, over the remaining terms of the related debt instruments. These debt premiums or discounts arise either at the time of the debt issuance or as part of purchase accounting for the fair value of debt assumed in acquisitions. The accompanying consolidated statements of operations and comprehensive income include amortization from continuing operations as follows:

 
  For the Year Ended December 31,  
 
  2015   2014   2013  

Amortization of deferred financing costs

  $ 19,349   $ 21,392   $ 25,159  

Amortization of debt premiums, net of discounts

    (16,107 )   (24,092 )   (33,026 )

Amortization of deferred leasing costs

    43,788     39,488     34,891  

            The average remaining life of in-place lease intangibles is approximately 3.1 years and is being amortized on a straight-line basis and is included with depreciation and amortization in the consolidated statements of operations and comprehensive income. 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 5.3 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 $117.8 million and $103.1 million as of December 31, 2015 and 2014, respectively. The amount of amortization from continuing operations of above and below market leases, net for the years ended December 31, 2015, 2014, and 2013 was $13.6 million, $11.3 million, and

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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)

$22.8 million, respectively. If a lease is terminated prior to the original lease termination, any remaining unamortized intangible is written off to earnings.

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

 
  2015   2014  

In-place lease intangibles

  $ 431,712   $ 416,623  

Accumulated depreciation

    (243,493 )   (200,293 )

In-place lease intangibles, net

  $ 188,219   $ 216,330  

 
  2015   2014  

Acquired above market lease intangibles

  $ 183,625   $ 225,335  

Accumulated amortization

    (116,262 )   (149,969 )

Acquired above market lease intangibles, net

  $ 67,363   $ 75,366  

            Estimated future amortization and the increasing (decreasing) effect on minimum rents for our above and below market leases as of December 31, 2015 are as follows:

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

2016

  $ 30,568   $ (19,677 ) $ 10,891  

2017

    23,517     (16,155 )   7,362  

2018

    18,424     (12,422 )   6,002  

2019

    15,347     (8,964 )   6,383  

2020

    12,131     (6,542 )   5,589  

Thereafter

    17,801     (3,603 )   14,198  

  $ 117,788   $ (67,363 ) $ 50,425  

            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 designated a derivative as a hedge and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may use a variety of derivative financial instruments in the normal course of business to selectively manage or hedge a portion of 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 is no significant ineffectiveness from any of our derivative activities. 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, 2015, we had no outstanding interest rate derivatives. As of December 31, 2014, we had two interest rate swaps with an aggregate notional amount of $375.0 million.

            The carrying value of our interest rate swap agreements, at fair value, as of December 31, 2014, was a net liability balance of $1.2 million, of which $2.1 million was included in other liabilities and $0.9 million was included in deferred costs and other assets.

            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 and foreign currency denominated

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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)

debt 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 U.S. dollars for their fair value at or close to their settlement date.

            As of December 31, 2015, we had no outstanding Yen:USD forward contracts. Approximately ¥14.7 million remained as of December 31, 2014 for our Yen forward contracts that matured on January 5, 2015. The December 31, 2014 asset balance related to these forward contracts was $0.1 million and was included in deferred costs and other assets. We have reported the changes in fair value for these forward contracts in earnings. The underlying currency adjustments on the foreign currency denominated receivables are also reported in income and generally offset the amounts in earnings for these forward contracts.

            In the third quarter of 2014, we entered into Euro:USD forward contracts, which were designated as net investment hedges, with an aggregate €150.0 million notional value which mature through August 11, 2017. During the second quarter of 2015, one forward contract with a €50.0 million notional value was settled. The December 31, 2015 asset balance related to the remaining €100.0 million forward contracts was $26.0 million and is included in deferred costs and other assets. The December 31, 2014 asset balance related to these forward contracts was $19.1 million and is included in deferred costs and other assets. During the fourth quarter of 2015, we entered into a Euro:USD forward contract, which was designated as a net investment hedge, with an aggregate €50.0 million notional value that matures on May 15, 2019. The December 31, 2015 asset balance related to this forward contract was $1.8 million and is included in deferred costs and other assets. We apply hedge accounting to these forward contracts and report the changes in fair value in other comprehensive income (loss). Changes in the value of these forward contracts are offset by changes in the underlying hedged Euro-denominated joint venture investment.

            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 $17.7 million and $45.8 million as of December 31, 2015 and 2014, respectively.

            In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU 2014-08 became effective prospectively for fiscal years beginning after December 15, 2014, but could be early-adopted. We early adopted ASU 2014-08 in the first quarter of 2014 and are applying the revised definition to all disposals on a prospective basis, including the spin-off of Washington Prime. ASU 2014-08 also requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation.

            In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers." ASU 2014-09 amends the existing accounting standards for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In July 2015, the FASB delayed the effective date of the new revenue recognition standard by one year, which will result in the new standard being effective for us beginning with the first quarter of 2018. The new standard can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact adopting the new accounting standard (and the transition method of such adoption) will have on our consolidated financial statements.

            In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis." ASU 2015-02 makes changes to both the variable interest model and the voting model. This guidance becomes effective for annual and interim periods beginning after December 15, 2015. All reporting entities involved with limited partnerships will have to re-evaluate whether these entities qualify for consolidation and revise documentation accordingly. We are currently evaluating the impact adopting the new accounting standard will have on our consolidated financial statements, but we do not currently believe it will result in material changes to our previous consolidation conclusions.

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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)

            In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 will be effective for us retrospectively beginning in the first quarter of 2016. We expect this new guidance will reduce total assets and total mortgage and unsecured indebtedness on our consolidated balance sheets for amounts classified as deferred costs specific to debt issuance costs. We do not expect this guidance to have any other effect on our consolidated financial statements.

            In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which requires adjustments to provisional amounts used in business combinations during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. It also requires the disclosure of the impact on changes in estimates on earnings, depreciation, amortization and other income effects. ASU 2015-16 will be effective beginning January 1, 2016. We do not expect the adoption of this standard to have a significant impact on our consolidated financial statements.

            In January 2016, the FASB issued ASU 2016-01, "Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities," which will require entities to measure their investments at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The practicability exception will be available for equity investments that do not have readily determinable fair values. The guidance will be effective for us beginning with the first quarter of 2018. We are currently evaluating the impact of adopting the new standard will have on our consolidated financial statements.

            In addition to noncontrolling redeemable interests in properties, we classify our 7.5% Cumulative Redeemable Preferred Units, or 7.5% preferred units, in temporary equity. Although we may redeem the 7.5% preferred units for cash or shares of Simon common stock, we could be required to redeem the securities for cash because the non-cash redemption alternative requires us to deliver fully registered shares of Simon common stock which we may not be able to deliver depending upon the circumstances that exist at the time of redemption. The previous and current carrying amounts are equal to the 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 and limited partners within permanent equity considered several significant factors. First, as a limited partnership, all decisions relating to our operations and distributions are made by Simon, acting as our sole general partner. The decisions of the general partner are made by Simon's Board of Directors or management. We have no other governance structure. Secondly, the sole asset of Simon is its interest in us. As a result, a share of Simon 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 common stock or cash as selected by the general partner. Accordingly, we classify units held by limited partners in permanent equity because Simon has the ability to issue shares of its 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 only when Simon has redeemed shares of its common stock. We classify units held by Simon in permanent equity because the decision to redeem those units would be made by Simon.

            Net income attributable to noncontrolling interests (which includes nonredeemable and redeemable noncontrolling interests in consolidated properties) is a component of consolidated net income. During 2015, 2014 and 2013, no individual components of other comprehensive income (loss) were attributable to noncontrolling interests.

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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)

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

 
  2015   2014   2013  

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

  $ (229 ) $ 4,264   $ (877 )

Net income attributable to noncontrolling nonredeemable interests

    2,984     2,491     132  

Distributions to noncontrolling nonredeemable interestholders

    (3,836 )   (19,065 )   (285 )

Contributions by noncontrolling interest holders, net and other

    4,537     12,081     5,294  

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

  $ 3,456   $ (229 ) $ 4,264  

            The changes in components of our accumulated other comprehensive income (loss) consisted of the following net of noncontrolling interest as of December 31, 2015:

 
  Currency
translation
adjustments
  Accumulated
derivative
losses, net
  Net unrealized
gains on
marketable
securities
  Total  

Beginning balance

  $ (129,554 ) $ (45,824 ) $ 103,950   $ (71,428 )

Other comprehensive income (loss) before reclassifications

    (160,312 )   17,122     (11,200 )   (154,390 )

Amounts reclassified from accumulated other comprehensive income (loss)

        10,998     (80,187 )   (69,189 )

Net current-period other comprehensive income (loss)

    (160,312 )   28,120     (91,387 )   (223,579 )

Ending balance

  $ (289,866 ) $ (17,704 ) $ 12,563   $ (295,007 )

            The reclassifications out of accumulated other comprehensive income (loss) consisted of the following as of December 31, 2015, 2014 and 2013:

 
  December 31, 2015   December 31, 2014   December 31, 2013    
 
  Affected line item
in the statement
where net
income
is presented
Details about accumulated other
comprehensive income
(loss) components:
  Amount reclassified
from accumulated
other comprehensive
income (loss)
  Amount reclassified
from accumulated
other comprehensive
income (loss)
  Amount reclassified
from accumulated
other comprehensive
income (loss)

Accumulated derivative losses, net

  $ (10,998 ) $ (10,789 ) $ (9,205 ) Interest expense

  $ (10,998 ) $ (10,789 ) $ (9,205 )  

Realized gain on sale of marketable securities

  $ 80,187   $   $   Other income

  $ 80,187   $   $    

            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

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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)

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 amortize any tenant inducements as a reduction of revenue utilizing the straight-line method over the term of the related lease or occupancy term of the tenant, if shorter.

            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. As of December 31, 2015 for substantially all of our leases in the U.S. mall portfolio, we receive a fixed payment from the tenant for the CAM component which is recognized as revenue when earned. When not reimbursed by 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 accrue reimbursements from tenants for recoverable portions of all these expenses as revenue in the period the applicable expenditures are incurred. 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.

            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.

            Revenues from insurance premiums charged to unconsolidated properties are recognized on a pro-rata basis over the terms of the policies. Insurance losses on these policies and our self-insurance for our consolidated properties 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 estimates. Total insurance reserves for our insurance subsidiaries and other self-insurance programs as of December 31, 2015 and 2014 approximated $88.1 million and $93.5 million, respectively, and are included in other liabilities 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 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 during the following years:

 
  For the Year Ended December 31,  
 
  2015   2014   2013  

Balance, beginning of period

  $ 33,282   $ 32,681   $ 29,263  

Provision for credit losses

    6,635     12,001     7,165  

Accounts written off, net of recoveries

    (9,823 )   (11,400 )   (3,747 )

Balance, end of period

  $ 30,094   $ 33,282   $ 32,681  

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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)

            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 other than as discussed below for our taxable REIT subsidiaries, or TRSs.

            Simon and certain 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 the entity to distribute at least 90% of REIT taxable income to its owners and meet certain other asset and income tests as well as other requirements. We intend to continue to make distributions to Simon in amounts sufficient to assist Simon in adhering to REIT requirements and maintaining its REIT status. Our subsidiary REIT entities will generally not be liable for federal corporate income taxes as long as they distribute in excess of 100% of their REIT taxable income. Thus, we made no provision for federal income taxes for these entities in the accompanying consolidated financial statements. If Simon or any of our REIT subsidiaries fail to qualify as a REIT, Simon or that entity will be subject to tax at regular corporate rates for the years in which it failed to qualify. If Simon or any of our REIT subsidiaries lost their REIT status, they could not elect to be taxed as a REIT for four taxable years following the year during which qualification was lost unless their failure to qualify was due to reasonable cause and certain other conditions were satisfied.

            We have also elected 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, 2015 we had no net deferred tax asset or liability. As of December 31, 2014, we had a net deferred tax liability of $1.1 million related to our TRS subsidiaries. The net deferred tax liability is included in other liabilities 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.

            We are also subject to certain other taxes, including state and local taxes, franchise taxes, as well as income-based and withholding taxes on dividends from certain of our international investments, which are included in income and other taxes in the consolidated statements of operations and comprehensive income.

            Home and regional office costs primarily include compensation and personnel related costs, travel, building and office costs, and other expenses for our corporate home office and regional offices. General and administrative expense primarily includes executive compensation, benefits and travel expenses as well as costs of being a public company including certain legal costs, audit fees, regulatory fees, and certain other professional fees.

4. Real Estate Acquisitions and Dispositions

            We acquire interests in properties to generate both current income and long-term appreciation in value. We acquire interests in individual properties or portfolios of retail real estate companies that meet our investment criteria and sell properties which no longer meet our strategic criteria. Unless otherwise noted below, gains and losses on these transactions are included in gain upon acquisition of controlling interests and sale or disposal of assets and interests in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income. We expense acquisition, potential acquisition and disposition related costs as they are incurred. We incurred $4.4 million in transaction costs during 2015 in connection with the acquisitions of Jersey Gardens and University Park Village, which are included in other expenses in the accompanying consolidated statements of operations and comprehensive income. We also incurred

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

$38.2 million in transaction costs during the first six months of 2014 related to the spin-off of Washington Prime. Other than these transaction costs, we incurred a minimal amount of transaction expenses during 2015, 2014, and 2013.

            Our consolidated and unconsolidated acquisition and disposition activity for the periods presented are as follows:

            On January 15, 2015, we acquired a 100% interest in Jersey Gardens (renamed The Mills at Jersey Gardens) in Elizabeth, New Jersey, and University Park Village in Fort Worth, Texas, properties previously owned by Glimcher Realty Trust for $677.9 million of cash and the assumption of existing mortgage debt of $405.0 million. We recorded the assets and liabilities of these properties at estimated fair value at the acquisition date and the determination of fair value was finalized during the fourth quarter of 2015 resulting in a valuation of investment property of $1.1 billion, net lease related intangibles of $3.6 million and mortgage debt premiums of $17.9 million. We amortize these amounts over the estimated life of the related depreciable components of investment property, typically no greater than 40 years, the terms of the applicable leases and the applicable debt maturities, respectively.

            On April 10, 2014, as discussed further in Note 7, through a European joint venture, we acquired an additional 22.5% noncontrolling interest in Ashford Designer Outlet, increasing our percentage ownership to 45%.

            On January 30, 2014, we acquired the remaining 50% interest in Arizona Mills from our joint venture partner, as well as approximately 39 acres of land in Oyster Bay, New York, for approximately $145.8 million, consisting of cash consideration and 555,150 units. Arizona Mills is subject to a mortgage which was $166.9 million at the time of the acquisition. The consolidation of this previously unconsolidated property resulted in a remeasurement of our previously held interest to fair value and a corresponding non-cash gain of $2.7 million in the first quarter of 2014. We now own 100% of this property.

            On January 10, 2014, we acquired one of our partner's interests in a portfolio of ten properties for approximately $114.4 million, seven of which were previously consolidated.

            During 2013, as further discussed in Note 7, we acquired noncontrolling interests in the property management and development companies of our European joint venture as well as interests in five designer outlet properties.

            On May 30, 2013, we acquired a 100% interest in a 390,000 square foot outlet center located near Portland, Oregon for cash consideration of $146.7 million. The fair value of the acquisition was recorded primarily as investment property and lease related intangibles. As a result of the excess of fair value over amounts paid, we recognized a gain of approximately $27.3 million.

            During 2015, we disposed of our interests in three unconsolidated retail properties. The aggregate gain recognized on these transactions was approximately $43.6 million.

            In January of 2016, we disposed of our interests in two residential properties and a consolidated retail property. The aggregate gain from these transactions was $36.8 million.

            During 2014, we disposed of our interests in three consolidated retail properties. The aggregate gain recognized on these transactions was approximately $21.8 million.

            On September 26, 2014, we sold our investment in a hotel located at Coconut Point in Estero, Florida. The gain from this sale was $4.5 million, which is included in other income in the accompanying consolidated statements of operations and comprehensive income.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            During 2013, we increased our economic interest in three unconsolidated community centers and subsequently disposed of our interests in those properties. Additionally, we disposed of our interests in eight consolidated retail properties and three unconsolidated retail properties. The aggregate gain recognized on these transactions was approximately $80.2 million.

            On August 8, 2013, we disposed of our interest in an office property located in the Boston, Massachusetts area. The gain on the sale was $7.9 million and is included in other income in the accompanying consolidated statements of operations and comprehensive income.

5. Per Unit Data

            We determine basic earnings per unit based on the weighted average number of units outstanding during the period and we consider any participating securities for purposes of applying the two-class method. 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 potentially dilutive securities 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,  
 
  2015   2014   2013  

Net Income attributable to Unitholders — Basic and Diluted

  $ 2,131,139   $ 1,643,783   $ 1,537,348  

Weighted Average Units Outstanding — Basic

    362,244,154     363,475,504     362,355,581  

Effect of stock options of Simon

            50  

Weighted Average Units Outstanding — Diluted

    362,244,154     363,475,504     362,355,631  

            For the year ended December 31, 2015 and 2014, potentially dilutive securities include long-term incentive performance units, or LTIP units. No securities had a material dilutive effect for the years ended December 31, 2015 and 2014. The only securities that had a dilutive effect for the year ended December 31, 2013 were options of Simon.

            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,
 
 
  2015   2014   2013  

Total distributions paid per unit

  $ 6.05   $ 5.15   $ 4.65  

Percent taxable as ordinary income

    94.30 %   100.00 %   97.50 %

Percent taxable as long-term capital gains

    5.70 %   0.00 %   2.50 %

    100.00 %   100.00 %   100.00 %

            In January 2016, Simon's Board of Directors declared a quarterly cash dividend for the first quarter of 2016 of $1.60 per share. The distribution rate on our units is equal to the dividend rate on Simon's common stock.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

6. Investment Properties

            Investment properties consist of the following as of December 31:

 
  2015   2014  

Land

  $ 3,417,716   $ 3,185,624  

Buildings and improvements

    29,715,169     27,828,509  

Total land, buildings and improvements

    33,132,885     31,014,133  

Furniture, fixtures and equipment

    330,239     304,399  

Investment properties at cost

    33,463,124     31,318,532  

Less — accumulated depreciation

    9,915,386     8,950,747  

Investment properties at cost, net

  $ 23,547,738   $ 22,367,785  

Construction in progress included above

  $ 663,271   $ 640,081  

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 of properties. We held joint venture interests in 81 properties as of December 31, 2015 and 82 properties as of December 31, 2014. Certain of our joint venture properties are subject to various rights of first refusal, buy-sell provisions, put and call rights, or other sale or marketing rights for partners which are customary in real estate joint venture agreements and the industry. We and our partners in these joint ventures may initiate these provisions (subject to any applicable lock up or similar restrictions), which may result in either the sale of our interest or the use of available cash, borrowings or our units to acquire the joint venture interest from our partner.

            We may provide financing to joint ventures primarily in the form of interest bearing construction loans. As of December 31, 2015 and 2014, we had construction loans and other advances to related parties totaling $13.9 million and $14.9 million, respectively, which are included in deferred costs and other assets in the accompanying consolidated balance sheets.

            On July 22, 2015, we closed on our previously announced joint venture with HBC, to which HBC contributed 42 properties in the U.S. and we committed to contribute $100.0 million for improvements to the properties contributed by HBC in exchange for a noncontrolling interest in the newly formed joint venture. As of December 31, 2015, we have funded $1.0 million of this commitment. On September 30, 2015, HBC announced it had closed on the acquisition of Galeria Holding, the parent company of Germany's leading department store, Kaufhof. In conjunction with the closing, the joint venture acquired 41 Kaufhof properties in Germany from HBC. All of the joint venture's properties have been leased to affiliates of HBC. We contributed an additional $178.5 million to the joint venture upon closing of the Galeria Holding transaction. Our noncontrolling interest in the joint venture is approximately 8.9%. Our share of net loss was $0.7 million from the date of our investment through December 31, 2015. The joint venture's total assets and total liabilities as of December 31, 2015 were $4.2 billion and $2.9 billion, respectively, and the joint venture's total revenues, operating income and consolidated net loss were approximately $55.0 million, $10.0 million and $8.0 million, respectively, for the period of our ownership in 2015.

            On April 23, 2015, we announced a partnership with Swire Properties Inc. and Whitman Family Development to jointly develop the approximately 500,000 square foot shopping center component of Brickell City Centre, a mixed-use development in downtown Miami. We own a 25% interest in the retail component of this project, which is scheduled to open in September 2016. Our share of the estimated cost of this project including development fees is approximately $110.0 million. As of December 31, 2015, we have contributed substantially all of our share of the cost of this project.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            On April 13, 2015, we announced a joint venture with Sears Holdings, or Sears, whereby Sears contributed 10 of its properties located at our malls to the joint venture in exchange for a 50% noncontrolling interest in the joint venture. We contributed $114.0 million in cash in exchange for a 50% noncontrolling interest in the joint venture. Sears or its affiliates are leasing back each of the 10 properties from the joint venture. The joint venture has the right to recapture not less than 50% of the space leased to Sears to be used for purposes of redeveloping and releasing the recaptured space. We will provide development, leasing and management services to the joint venture for any recaptured space. On July 7, 2015, we separately invested approximately $33.0 million in exchange for 1,125,760 common shares of Seritage Growth Properties, or Seritage, a public REIT recently formed by Sears, which we account for as an available-for-sale security. Seritage now holds Sears' interest in the joint venture.

            On February 24, 2015, Houston Galleria, in which we own a 50.4% noncontrolling interest, refinanced its $821.0 million mortgage with a $1.2 billion mortgage that matures on March 1, 2025. The fixed interest rate was reduced from 5.44% to 3.55% as a result. Excess proceeds of $377.1 million from the financing were distributed to the venture partners in February 2015.

            On January 30, 2014, as discussed in Note 4, we acquired the remaining 50% interest in Arizona Mills from our joint venture partner. The consolidation of this previously unconsolidated property resulted in a remeasurement of our previously held interest to fair value and a corresponding non-cash gain of $2.7 million in the first quarter of 2014. As a result of this acquisition, we now own 100% of this property.

International Investments

            We conduct our international operations through joint venture arrangements and account for all of our international joint venture investments using the equity method of accounting

            European Investments.    At December 31, 2015, we owned 63,924,148 shares, or approximately 20.3%, of Klépierre, which had a quoted market price of $44.82 per share. On July 29, 2014 Klépierre announced that it had entered into a conditional agreement to acquire Corio pursuant to which Corio shareholders received 1.14 Klépierre ordinary shares for each Corio ordinary share. On January 15, 2015 the tender offer transaction closed and the merger was completed on March 31, 2015, reducing our ownership from 28.9% at December 31, 2014 to 18.3%, resulting in a non-cash gain of $206.9 million that was required to be recognized in the first quarter of 2015 as if we had sold a proportionate share of our investment. On May 11, 2015, we purchased 6,290,000 additional shares of Klépierre for $279.4 million bringing our ownership to 20.3%. All of the excess investment related to this additional purchase has been determined to relate to investment property. Our share of net income, net of amortization of our excess investment, was $6.7 million and $131.5 million for the year ended December 31, 2015 and 2014, respectively. Based on applicable Euro:USD exchange rates and after our conversion of Klépierre's results to GAAP, Klépierre's total assets, total liabilities, and noncontrolling interests were $20.8 billion, $12.4 billion, and $1.4 billion, respectively, as of December 31, 2015 and $12.7 billion, $8.2 billion, and $1.4 billion, respectively, as of December 31, 2014. Klépierre's total revenues, operating income and consolidated net income were approximately $1.5 billion, $414.8 million and $181.2 million, respectively, for the year ended December 31, 2015 and $1.2 billion, $432.1 million and $1.3 billion, respectively, for the year ended December 31, 2014.

            On April 16, 2014, Klépierre completed the disposal of a portfolio of 126 retail galleries located in France, Spain and Italy. Total gross consideration for the transaction, including transfer duties, was €1.98 billion (€1.65 billion Klépierre's group share). The net cash proceeds were used by Klépierre to reduce its overall indebtedness. In connection with this transaction, we recorded a gain of $133.9 million, net of the write-off of a portion of our excess investment, which is included in gain upon acquisition of controlling interests and sale or disposal of assets and interest in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income.

            Our joint venture in Europe has interests in six outlet properties, as well as a property management and development company. As of December 31, 2015, our legal percentage ownership interests in these entities ranged from 45% to 90%. The carrying amount of our investment in these joint ventures, including all related components of accumulated other comprehensive income (loss) as well as subsequent capital contributions for development, was $577.3 million and $677.1 million as of December 31, 2015 and 2014, respectively. In December 2014, Roermond Designer Outlet phases 2 and 3, in which we own a 90% interest, refinanced its $85.1 million mortgage maturing in 2017 with a $218.9 million mortgage that matures in 2021. The fixed interest rate was reduced from 5.12% to 1.86% as a result. Excess proceeds of

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

approximately $106.0 million from the financing were distributed to the venture partners in January 2015. In the first quarter of 2016, we will consolidate the entity that holds our interests in the six outlet properties as we obtain control of the investee entity. This will result in the consolidation of two of the six operating properties and will be accounted for as a step acquisition, requiring a remeasurement of our previously held equity interest to fair value and the recognition of a non-cash gain in earnings during the first quarter of 2016. Consolidation will require us to recognize the investee's identifiable assets and liabilities at fair value in our consolidated financial statements along with the related noncontrolling interest representing our partners' share. In February 2016, our joint venture acquired a 75% interest in an outlet center in Ochtrup, Germany for cash consideration of approximately $34.9 million.

            We also have minority interests in Value Retail PLC and affiliated entities, which own or have interests in and operate nine luxury outlets throughout Europe and a direct minority ownership in three of those outlets. Our investment in these entities is accounted for under the cost method. At both December 31, 2015 and 2014, the carrying value of these non-marketable investments was $115.4 million and is included in deferred costs and other assets.

            On March 19, 2015, we disposed of our interest in a joint venture which had held interests in rights to pre-development projects in Europe, for total proceeds of $19.0 million. We recognized a gain on the sale of $8.3 million, which is included in other income in the accompanying consolidated statements of operations and comprehensive income.

            Asian Joint Ventures.    We conduct our international Premium Outlet operations in Japan through a joint venture with Mitsubishi Estate Co., Ltd. We have a 40% ownership interest in this joint venture. The carrying amount of our investment in this joint venture was $224.6 million and $229.8 million as of December 31, 2015 and 2014, respectively, including all related components of accumulated other comprehensive income (loss). We conduct our international Premium Outlet operations in South Korea through a joint venture with Shinsegae International Co. We have a 50% ownership interest in this joint venture. The carrying amount of our investment in this joint venture was $117.0 million and $104.5 million as of December 31, 2015 and 2014, respectively, including all related components of accumulated other comprehensive income (loss).

Summary Financial Information

            A summary of our equity method investments and share of income from such investments, excluding Klépierre and our joint venture with HBC, is included below. During 2015, we disposed of three retail properties. During 2013, we disposed of three retail properties. As discussed in Note 3, on May 28, 2014, we completed the spin-off of Washington Prime, which included ten unconsolidated properties. The net income of these ten properties is included in income from operations of discontinued joint venture interests in the accompanying summary financial information.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

BALANCE SHEETS

 
  December 31,
2015
  December 31,
2014
 

Assets:

             

Investment properties, at cost

  $ 17,186,884   $ 16,087,282  

Less — accumulated depreciation

    5,780,261     5,457,899  

    11,406,623     10,629,383  

Cash and cash equivalents

    818,805     993,178  

Tenant receivables and accrued revenue, net

    354,133     362,201  

Investment in unconsolidated entities, at equity

        11,386  

Deferred costs and other assets

    545,850     536,600  

Total assets

  $ 13,125,411   $ 12,532,748  

Liabilities and Partners' Deficit:

             

Mortgages

  $ 13,891,041   $ 13,272,557  

Accounts payable, accrued expenses, intangibles, and deferred revenue

    985,159     1,015,334  

Other liabilities

    468,005     493,718  

Total liabilities

    15,344,205     14,781,609  

Preferred units

   
67,450
   
67,450
 

Partners' deficit

    (2,286,244 )   (2,316,311 )

Total liabilities and partners' deficit

  $ 13,125,411   $ 12,532,748  

Our Share of:

             

Partners' deficit

  $ (854,562 ) $ (663,700 )

Add: Excess Investment

    1,788,749     1,875,337  

Our net Investment in unconsolidated entities, at equity

  $ 934,187   $ 1,211,637  

            "Excess Investment" represents the unamortized difference of our investment over our share of the equity in the underlying net assets of the joint ventures or other investments acquired and has been determined to relate to the fair value of the investment property, lease related intangibles, and debt premiums and discounts. We amortize excess investment over the life of the related depreciable components of investment property, typically no greater than 40 years, the terms of the applicable leases and the applicable debt maturity, respectively. The amortization is included in the reported amount of income from unconsolidated entities.

            As of December 31, 2015, scheduled principal repayments on joint venture properties' mortgage indebtedness are as follows:

2016

  $ 1,325,067  

2017

    810,684  

2018

    433,362  

2019

    599,718  

2020

    3,049,673  

Thereafter

    7,668,576  

Total principal maturities

    13,887,080  

Net unamortized debt premium

    3,961  

Total mortgages and unsecured indebtedness

  $ 13,891,041  

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            This debt becomes due in installments over various terms extending through 2035 with interest rates ranging from 0.37% to 9.35% and a weighted average interest rate of 4.15% at December 31, 2015.

            In November 2013, Aventura Mall in which we own a 33% interest refinanced its $430.0 million mortgage maturing on December 11, 2017 with a $1.2 billion mortgage that matures on December 1, 2020. The fixed interest rate was reduced from 5.91% to 3.75% as a result of this transaction and an extinguishment charge of $82.8 million was incurred which is included in interest expense in the accompanying joint venture statements of operations. Excess proceeds from the financing were distributed to the venture partners.

STATEMENTS OF OPERATIONS

 
  For the Year Ended
December 31,
 
 
  2015   2014   2013  

Revenue:

                   

Minimum rent

  $ 1,801,023   $ 1,746,549   $ 1,618,802  

Overage rent

    191,249     183,478     180,435  

Tenant reimbursements

    799,420     786,351     747,447  

Other income

    236,726     293,419     199,197  

Total revenue

    3,028,418     3,009,797     2,745,881  

Operating Expenses:

   
 
   
 
   
 
 

Property operating

    530,798     574,706     487,144  

Depreciation and amortization

    594,973     604,199     512,702  

Real estate taxes

    231,154     221,745     204,894  

Repairs and maintenance

    73,286     71,203     66,612  

Advertising and promotion

    75,773     72,496     61,664  

Provision for credit losses

    4,153     6,527     1,388  

Other

    169,504     187,729     155,421  

Total operating expenses

    1,679,641     1,738,605     1,489,825  

Operating Income

    1,348,777     1,271,192     1,256,056  

Interest expense

   
(593,187

)
 
(598,900

)
 
(680,321

)

Income from Continuing Operations

    755,590     672,292     575,735  

Income from operations of discontinued joint venture interests

   
   
5,079
   
14,200
 

Gain on disposal of discontinued operations, net

            51,164  

Gain on sale or disposal of assets and interests in unconsolidated entities, net

    67,176          

Net Income

  $ 822,766   $ 677,371   $ 641,099  

Third-Party Investors' Share of Net Income

  $ 405,456   $ 348,127   $ 353,708  

Our Share of Net Income

    417,310     329,244     287,391  

Amortization of Excess Investment

    (94,828 )   (99,463 )   (102,875 )

Our Share of (Loss) Income from Unconsolidated Discontinued Operations

        (652 )   1,121  

Our Share of Gain on Sale or Disposal of Assets and Interests in Unconsolidated Entities, net

    (43,589 )        

Income from Unconsolidated Entities

  $ 278,893   $ 229,129   $ 185,637  

            Our share of income from unconsolidated entities in the above table, aggregated with our share of results of Klépierre and our joint venture with HBC, is presented in income from unconsolidated entities in the accompanying

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

consolidated statements of operations and comprehensive income. Our share of the gain on sale or disposal of assets and interests in unconsolidated entities, net is reflected within gain upon acquisition of controlling interests, sale or disposal of assets and interests in unconsolidated entities, net in the accompanying consolidated statements of operations and comprehensive income.

            In 2015, we disposed of our interests in three retail properties. Our share of the net gain on disposition was $43.6 million.

            In 2013, we disposed of our interest in three retail properties. We recognized no gain or loss on the disposal of these properties.

8. Indebtedness and Derivative Financial Instruments

            Our mortgages and unsecured indebtedness, excluding the impact of derivative instruments, consist of the following as of December 31:

 
  2015   2014  

Fixed-Rate Debt:

             

Mortgage notes, including $44,594 and $49,723 net premiums, respectively. Weighted average interest and maturity of 5.12% and 4.6 years at December 31, 2015. 

  $ 5,985,427   $ 5,615,351  

Unsecured notes, including $44,698 and $40,701 net discounts, respectively. Weighted average interest and maturity of 3.93% and 7.3 years at December 31, 2015. 

    13,530,427     13,399,920  

Commercial Paper (see below)

    878,657     409,185  

Total Fixed-Rate Debt

    20,394,511     19,424,456  

Variable-Rate Debt:

             

Mortgages notes, at face value. Weighted average interest and maturity of 2.29% and 1.3 years at December 31, 2015. 

    630,000     630,000  

Unsecured Term Loan (see below)

    240,000     240,000  

Credit Facility (see below)

    1,237,662     558,537  

Total Variable-Rate Debt

    2,107,662     1,428,537  

Total Mortgages and Unsecured Indebtedness

  $ 22,502,173   $ 20,852,993  

            General.    Our unsecured debt agreements contain financial covenants and other non-financial covenants. If we were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lender including adjustments to the applicable interest rate. As of December 31, 2015, we were in compliance with all covenants of our unsecured debt.

            At December 31, 2015, we or our subsidiaries were the borrowers under 44 non-recourse mortgage notes secured by mortgages on 49 properties, including four separate pools of cross-defaulted and cross-collateralized mortgages encumbering a total of 11 properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties which serve as collateral for that debt. If the applicable borrower under these non-recourse mortgage notes fails to comply with these covenants, the lender could accelerate the debt and enforce its right against their collateral. At December 31, 2015, the applicable borrowers under these non-recourse mortgage notes were in compliance with all covenants where non-compliance could individually, or giving

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

effect to applicable cross-default provisions in the aggregate, have a material adverse effect on our financial condition, liquidity or results of operations.

Unsecured Debt

            At December 31, 2015, our unsecured debt consisted of $13.5 billion of our senior unsecured notes, net of discounts, $1.2 billion outstanding under our $4.0 billion unsecured revolving credit facility, or Credit Facility, $240.0 million outstanding under an unsecured term loan, and $878.7 million outstanding under our global unsecured commercial paper note program, or Commercial Paper program. The December 31, 2015 balance on the Credit Facility included $237.8 million (U.S. dollar equivalent) of Euro-denominated borrowings and $184.8 million (U.S. dollar equivalent) of Yen-denominated borrowings. At December 31, 2015 the outstanding amount under the Commercial Paper program was $878.7 million, of which $188.1 million was related to the U.S. dollar equivalent of Euro-denominated notes. Foreign currency denominated borrowings under both the Credit Facility and Commercial Paper program are designated as net investment hedges of a portion of our international investments.

            On December 31, 2015, we had an aggregate available borrowing capacity of $4.6 billion under the Credit Facility and our $2.75 billion supplemental unsecured revolving credit facility, or Supplemental Facility, and together with the Credit Facility, the Credit Facilities. The maximum aggregate outstanding balance under the two Credit Facilities during the year ended December 31, 2015 was $1.8 billion and the weighted average outstanding balance was $1.2 billion. Letters of credit of $36.9 million were outstanding under the two Credit Facilities as of December 31, 2015.

            The Credit Facility's initial borrowing capacity of $4.0 billion may be increased to $5.0 billion during its term and provides for borrowings denominated in U.S. dollars, Euros, Yen, Sterling, Canadian dollars and Australian dollars. Borrowings in currencies other than the U.S. dollar are limited to 75% of the maximum revolving credit amount, as defined. The initial maturity date of the Credit Facility is June 30, 2018 and can be extended for an additional year to June 30, 2019 at our sole option, subject to our continued compliance with the terms thereof. The base interest rate on the Credit Facility is LIBOR plus 80 basis points with an additional facility fee of 10 basis points.

            On March 2, 2015, we amended and extended the Supplemental Facility. The initial borrowing capacity of $2.0 billion was increased to $2.75 billion, may be further increased to $3.5 billion during its term, will initially mature on June 30, 2019 and can be extended for an additional year to June 30, 2020 at our sole option, subject to our continued compliance with the terms thereof. The base interest rate on the amended Supplemental Facility was reduced to LIBOR plus 80 basis points and the additional facility fee was reduced to 10 basis points. The Supplemental Facility provides for borrowings denominated in U.S. dollars, Euros, Yen, Sterling, Canadian dollars and Australian dollars.

            On March 2, 2015, we increased the maximum aggregate program size of our Commercial Paper program from $500.0 million to $1.0 billion, or the non-U.S. dollar equivalent thereof. We may issue unsecured commercial paper notes, denominated in U.S. dollars, Euros and other currencies. Notes issued in non-U.S. currencies may be issued by one or more of our subsidiaries and are guaranteed by us. Notes will be sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above) pari passu with our other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and if necessary or appropriate, we may make one or more draws under either of the Credit Facilities to pay amounts outstanding from time to time on the Commercial Paper program. At December 31, 2015, we had $878.7 million outstanding under the Commercial Paper program, comprised of $690.6 million outstanding in U.S. dollar denominated notes and $188.1 million (U.S. dollar equivalent) of Euro denominated notes with weighted average interest rates of 0.43% and 0.03%, respectively. The borrowings mature on various dates from January 4, 2016 to April 18, 2016 and reduce amounts otherwise available under the Credit Facilities.

            On August 17, 2015, we issued $500.0 million of senior unsecured notes at a fixed interest rate of 2.50% with a maturity date of September 1, 2020 and $600.0 million of senior unsecured notes at a fixed interest rate of 3.50% with a maturity date of September 1, 2025. Proceeds from the unsecured notes offering were used to repay debt and for general corporate purposes.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            On November 18, 2015, a wholly-owned subsidiary of ours issued €750.0 million ($798.3 million U.S. dollar equivalent) of senior unsecured notes at a fixed interest rate of 1.38% with a maturity date of November 18, 2022. Proceeds from the unsecured notes offering were used to pay down a portion of Euro-denominated borrowings on the Credit Facility.

            During 2015, we redeemed at par or repaid at maturity $693.5 million of senior unsecured notes with fixed interest rates ranging from 5.10% to 5.75% and completed the early redemption of two series of senior unsecured notes comprising $1.0 billion with fixed interest rates of 6.13% and 7.38%. We recorded a $121.0 million loss on extinguishment of debt in the fourth quarter of 2015 as a result of the early redemption. Further, on February 1, 2016, we redeemed at par $163.3 million of senior unsecured notes with a fixed interest rate of 6.10%.

            On January 13, 2016, we issued $550.0 million of senior unsecured notes at a fixed interest rate of 2.50% with a maturity date of July 15, 2021 and $800.0 million of senior unsecured notes at a fixed interest rate of 3.30% with a maturity date of January 15, 2026. Proceeds from the unsecured notes offering were used to pay down the Credit Facility, unencumber three assets and redeem senior unsecured notes at par in February 2016 and for general corporate purposes.

Mortgage Debt

            Total mortgage indebtedness was $6.6 billion and $6.2 billion at December 31, 2015 and 2014, respectively.

            During the year ended December 31, 2015, we repaid $259.3 million in mortgage loans, with a weighted average interest rate of 5.51%, unencumbering five properties.

            On January 15, 2015, we acquired two properties — Jersey Gardens in Elizabeth, New Jersey (renamed The Mills at Jersey Gardens) and University Park Village in Fort Worth, Texas, subject to existing fixed-rate mortgage loans of $350.0 million and $55.0 million, respectively. The loans mature on November 1, 2020 and May 1, 2028 and bear interest at 3.83% and 3.85%, respectively.

Debt Maturity and Other

            Our scheduled principal repayments on indebtedness as of December 31, 2015 are as follows:

2016

  $ 2,928,580  

2017

    3,043,067  

2018

    1,024,275  

2019

    2,607,519  

2020

    3,159,632  

Thereafter

    9,739,204  

Total principal maturities

    22,502,277  

Net unamortized debt discount

    (104 )

Total mortgages and unsecured indebtedness

  $ 22,502,173  

            Our cash paid for interest in each period, net of any amounts capitalized, was as follows:

 
  For the Year Ended December 31,  
 
  2015   2014   2013  

Cash paid for interest

  $ 943,683   $ 1,018,911   $ 1,086,128  

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.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            We may enter into treasury lock agreements as part of an anticipated debt issuance. Upon completion of the debt issuance, the fair value of these instruments is recorded as part of accumulated other comprehensive income (loss) and is amortized to interest expense over the life of the debt agreement.

            The unamortized loss on our treasury locks and terminated hedges recorded in accumulated other comprehensive income (loss) was $60.8 million and $65.7 million as of December 31, 2015 and 2014, respectively. As of December 31, 2015, we had no outstanding interest rate derivatives. As of December 31, 2014, our outstanding LIBOR based derivative contracts consisted of fixed rate swap agreements with a notional amount of $375.0 million.

            Within the next year, we expect to reclassify to earnings approximately $12.4 million of losses related to terminated interest rate swaps from the current balance held in accumulated other comprehensive income (loss).

Fair Value of Debt

            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 book value of our consolidated fixed-rate mortgages and unsecured indebtedness including Commercial Paper was $20.4 billion and $19.4 billion as of December 31, 2015 and 2014, respectively. The fair values of these financial instruments and the related discount rate assumptions as of December 31 are summarized as follows:

 
  2015   2014

Fair value of fixed-rate mortgages and unsecured indebtedness (in millions)

  $21,331   $20,967

Weighted average discount rates assumed in calculation of fair value for fixed-rate mortgages

  3.46%   3.02%

Weighted average discount rates assumed in calculation of fair value for unsecured indebtedness

  3.59%   3.51%

9. Rentals under Operating Leases

            Future minimum rentals to be received under non-cancelable 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, 2015 are as follows:

2016

  $ 2,754,732  

2017

    2,516,302  

2018

    2,230,521  

2019

    1,948,366  

2020

    1,714,945  

Thereafter

    4,823,612  

  $ 15,988,478  

10. 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 preferred units and noncontrolling redeemable interests in properties in temporary equity.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

            Noncontrolling Redeemable Interests in Properties    Redeemable instruments, which typically represent the remaining interest in a property or portfolio of properties, and which are redeemable at the option of the holder or in circumstances that may be outside our control, are accounted for as temporary equity. The carrying amount of the noncontrolling interest is adjusted to the redemption amount assuming the instrument is redeemable at the balance sheet date. Changes in the redemption value of the underlying noncontrolling interest are recorded within equity. There are no noncontrolling interests redeemable at amounts in excess of fair value and as of December 31, 2015 and 2014, there were no material noncontrolling redeemable interests in properties.

            On January 10, 2014, we acquired one of our partner's remaining redeemable interests in a portfolio of ten properties for approximately $114.4 million subject to a pre-existing contractual arrangement. The amount paid to acquire the interests in the seven properties which were previously consolidated had been included in temporary equity at December 31, 2013. During the second quarter of 2014, in connection with the resolution of all partnership disputes with related party limited partners in one of our partnerships, we contributed $83.0 million into the partnership in exchange for a new series of preferred partnership units that carry a 2.5% preferred return. Amounts due upon a future exercise of the limited partners' right to cause us to redeem their noncontrolling interests would be net of this preferred investment. Accordingly, this preferred investment contractually offsets the mezzanine liability previously recognized on the accompanying consolidated balance sheet.

            7.5% Cumulative Redeemable Preferred Units    The 7.5% preferred units accrue cumulative quarterly distributions at a rate of $7.50 annually. We may redeem the preferred units upon the death of the survivor of the original holders, or the transfer of any preferred 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. In the event of the death of a holder of the 7.5% 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. These preferred units have a carrying value of $25.5 million and are included in preferred units, at liquidation value in the consolidated balance sheets at December 31, 2015 and 2014.

Permanent Equity

            Series J 83/8% Cumulative Redeemable Preferred Units.    Distributions accrue quarterly at an annual rate of 83/8% per unit on the Series J 83/8% preferred units, or Series J preferred units. Simon owns all of the Series J preferred units which have the same economic rights and preferences of an outstanding series of Simon preferred stock. We can redeem this series, in whole or in part, when Simon can redeem the related preferred stock, on and after October 15, 2027 at a redemption price of $50.00 per unit, plus accumulated and unpaid distributions. The Series J preferred units were issued at a premium of $7.5 million. The unamortized premium included in the carrying value of the preferred units at December 31, 2015 and 2014 was $3.9 million and $4.2 million, respectively. There are 1,000,000 Series J preferred units authorized and 796,948 issued and outstanding.

Unit Issuances and Repurchases

            In 2015, nine limited partners exchanged 489,291 units for an equal number of shares of common stock of Simon pursuant to our partnership agreement. These transactions increased Simon's ownership interest in us.

            On April 2, 2015, Simon's Board of Directors authorized a common stock repurchase program under which Simon may purchase up to $2.0 billion of its common stock over a twenty-four month period as market conditions warrant. Simon may repurchase the shares in the open market or in privately negotiated transactions. Through December 31, 2015, Simon repurchased 1,903,340 shares of its common stock at an average price of $180.19 per share as part of this program. As a result of these share repurchases, we repurchased a like number of units from Simon.

            On May 14, 2015, we redeemed 944,359 units from a limited partner for $162.7 million.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

Other Equity Activity

            Notes Receivable from Former CPI Stockholders.    Notes receivable of $14.8 million from stockholders of an entity we acquired in 1998 are reflected as a deduction from general partner's equity 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, as amended.    We, along with Simon, have a stock incentive plan, or the 1998 plan, which provides for the grant of awards with respect to the equity of Simon, in the form of options to purchase shares of Simon common stock, or options, stock appreciation rights, or SARs, restricted stock grants and performance-based unit awards, collectively, Awards. Options may be granted which are qualified as "incentive stock options" within the meaning of Section 422 of the Internal Revenue Code and options which are not so qualified. An aggregate of 16,300,000 shares of Simon common stock have been reserved for issuance under the 1998 plan. Additionally, the partnership agreement requires Simon to purchase units for cash in an amount equal to the fair market value of such shares issued on the exercise of options.

            Administration.    The 1998 plan is administered by the Compensation Committee of Simon's Board of Directors, or the Compensation Committee. The Compensation Committee determines which eligible individuals may participate and the type, extent and terms of the awards to be granted to them. In addition, the Compensation 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 Compensation 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.

            Awards and Compensation for Eligible Directors.    Directors of Simon who are not employees of Simon or employees of affiliates of Simon, receive awards under the 1998 plan. Each independent director receives an annual cash retainer of $100,000, and an annual restricted stock award with a grant date value of $150,000. Committee chairs receive annual retainers for Simon's Audit, Compensation, and Nominating and Governance Committees of $35,000, $35,000 and $25,000, respectively. Directors receive fixed annual retainers for service on the Audit, Compensation and Nominating and Governance Committees, of $15,000, $15,000, and $10,000, respectively. The Lead Director receives an annual retainer of $50,000. These retainers are paid 50% in cash and 50% in restricted stock.

            Restricted stock awards vest 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 Simon common stock and held in the Director Deferred Compensation Plan until the shares of restricted stock are delivered to the former director.

Stock Based Compensation

            Awards under our stock based compensation plans primarily take the form of LTIP units and restricted stock grants of Simon. Restricted stock and awards under the LTIP programs are all performance-based and are based on various individual, corporate and business unit performance measures as further described below. The expense related to these programs, net of amounts capitalized, is included within home and regional office costs and general and administrative costs in the accompanying statements of operations and comprehensive income.

            LTIP Programs.    Every year since 2010, the Compensation Committee has approved long-term, performance-based incentive compensation programs, or the LTIP programs, for certain senior executive officers. Awards under the LTIP programs take the form of LTIP units, a form of limited partnership interest issued by us, and will be considered earned if, and only to the extent to which, applicable total shareholder return, or TSR, performance measures are achieved during the performance period. Once earned, LTIP units are subject to a two year vesting period. 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 and certain other conditions as described in those agreements. Awarded LTIP units not earned are forfeited. Earned and fully vested LTIP units are the equivalent of units.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

During the performance period, participants are entitled to receive distributions on the LTIP units awarded to them equal to 10% of the regular quarterly distributions paid on a unit. As a result, we account for these LTIP units as participating securities under the two-class method of computing earnings per unit.

            From 2010 to 2015, the Compensation Committee approved LTIP unit grants as shown in the table below. Grant date fair values of the LTIP units are estimated using a Monte Carlo model, and the resulting expense is recorded regardless of whether the TSR performance measures are achieved if the required service is delivered. The grant date fair values are being amortized into expense over the period from the grant date to the date at which the awards, if any, would become vested. The extent to which LTIP units were earned, and the aggregate grant date fair values adjusted for estimated forfeitures, are as follows:

LTIP Program   LTIP Units Earned   Grant Date Fair Value

2010 LTIP program

       

1-year 2010 LTIP program

  133,673   1-year program — $7.2 million

2-year 2010 LTIP program

  337,006   2-year program — $14.8 million

3-year 2010 LTIP program

  489,654   3-year program — $23.0 million

2011-2013 LTIP program

  469,848   $35.0 million

2012-2014 LTIP program

  401,203   $35.0 million

2013-2015 LTIP program

  To be determined in 2016   $29.5 million

2014-2016 LTIP program

  To be determined in 2017   $30.0 million

2015-2017 LTIP program

  To be determined in 2018   $29.9 million

            We recorded compensation expense, net of capitalization, related to these LTIP programs of approximately $24.9 million, $27.6 million, and $25.7 million for the years ended December 31, 2015, 2014 and 2013, respectively.

            Restricted Stock.    The 1998 plan also provides for shares of restricted common stock of Simon to be granted to certain employees at no cost to those employees, subject to achievement of individual performance and certain financial and return-based performance measures established by the Compensation Committee related to the most recent year's performance. Once granted, the shares of restricted stock then vest annually over a three-year or a four-year period (as defined in the award). The cost of restricted stock grants, which is based upon the stock's fair market value on the grant date, is recognized as expense ratably over the vesting period. Through December 31, 2015 a total of 5,594,683 shares of restricted stock, net of forfeitures, have been awarded under the 1998 plan. Information regarding restricted stock awards is summarized in the following table for each of the years presented:

 
  For the Year Ended
December 31,
 
 
  2015   2014   2013  

Shares of restricted stock awarded during the year, net of forfeitures

    63,738     83,509     107,123  

Weighted average fair value of shares granted during the year

  $ 197.17   $ 166.36   $ 160.22  

Amortization expense

  $ 13,692   $ 18,256   $ 18,311  

            We recorded compensation expense, net of capitalization, related to restricted stock of approximately $9.4 million, $12.3 million, and $13.4 million for the years ended December 31, 2015, 2014 and 2013, respectively.

            Other Compensation Arrangements.    On July 6, 2011, in connection with the execution of an employment agreement, the Compensation Committee granted David Simon, our Chairman and Chief Executive Officer, a retention award in the form of 1,000,000 LTIP units, or the Award, for his continued service as our Chairman and Chief Executive Officer through July 5, 2019. Effective December 31, 2013, the Award was modified, or the Current Award, and as a result the LTIP units will now become earned and eligible to vest based on the attainment of Simon-based performance goals, in addition to the service-based vesting requirement included in the original Award. If the relevant performance criteria are not achieved, all or a portion of the Current Award will be forfeited. The Current Award does not contain an opportunity for Mr. Simon to receive additional LTIP units above and beyond the original Award should our performance exceed the higher

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

end of the performance criteria. The performance criteria of the Current Award are based on the attainment of specific funds from operations per share. If the performance criteria have been met, a maximum of 360,000 LTIP units, or the A units, 360,000 LTIP units, or the B units, and 280,000 LTIP units, or the C units, may become earned on December 31, 2015, December 31, 2016 and December 31, 2017, respectively. The earned A units will vest on January 1, 2018, earned B units will vest on January 1, 2019 and earned C units will vest on June 30, 2019, subject to Mr. Simon's continued employment through such applicable date. The grant date fair value of the retention award of $120.3 million is being recognized as expense over the eight-year term of his employment agreement on a straight-line basis based through the applicable vesting periods of the A units, B units and C units.

            Since 2001, we have not granted any options to officers, directors or employees, except for a series of reload options we assumed as part of a prior business combination. As of December 31, 2014, there were no remaining options outstanding.

            We also maintain a tax-qualified retirement 401(k) savings plan and offer no other post-retirement or post-employment benefits to our employees.

Exchange Rights

            Limited partners have the right under our partnership agreement to exchange all or any portion of their units for shares of Simon common stock on a one-for-one basis or cash, as determined by Simon in its sole discretion. If Simon selects cash, Simon 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 will be deemed to have elected to exchange the units for shares of Simon 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's common stock at that time. The number of shares of Simon's common stock issued pursuant to the exercise of the exchange right 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 and regulatory 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 such as acquisitions and divestitures. We believe that our current proceedings will not have a material adverse effect on our financial condition, liquidity or results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated.

            In May 2010, Opry Mills sustained significant flood damage. Insurance proceeds of $50 million have been funded by the primary insurer and remediation and restoration work has been completed. The property was re-opened on March 29, 2012. The excess insurance carriers (those providing coverage above $50 million) denied our claim under the policy for additional proceeds (of up to $150 million) to pay further amounts for restoration costs and business interruption losses. In the first quarter of 2015, summary judgment was granted in our favor, concluding that up to $150 million of additional coverage is available under our excess insurance policy for this claim. In July and August 2015, trial on the damages portion of our claim was completed and the jury entered a verdict for damages in the amount of $204.1 million (inclusive of the $50.0 million previously paid by the primary carrier). The court has also ruled that we are entitled to recover prejudgment interest and legal fees paid to our lender's counsel, all in amounts to be determined by the court. We will continue our efforts through the conclusion of the pending litigation to recover our losses, including consequential damages, under the excess insurance policies for Opry Mills and we believe recovery is probable, but no assurances can be made that our efforts to recover these funds will be successful.

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Notes to Consolidated Financial Statements
(Dollars in thousands, except unit and per unit amounts
and where indicated as in millions or billions)

Lease Commitments

            As of December 31, 2015, a total of 22 of the consolidated properties are subject to ground leases. The termination dates of these ground leases range from 2017 to 2090. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental payment plus a percentage rent component based upon the revenues or total sales of the property. In addition, we have several regional office locations that are subject to leases with termination dates ranging from 2016 to 2028. These office leases generally require us to make fixed annual rental payments plus pay our share of common area, real estate and utility expenses. Some of our ground and office leases include escalation clauses and renewal options. We incurred ground lease expense and office lease expense, which are included in other expense and home office and regional expense, respectively, as follows:

 
  For the Year Ended,
December 31,
 
 
  2015   2014   2013  

Ground lease expense

  $ 38,851   $ 39,898   $ 37,150  

Office lease expense

    4,067     4,577     4,057  

            Future minimum lease payments due under these leases for years ending December 31, excluding applicable extension options and any sublease income, are as follows:

2016

  $ 30,474  

2017

    30,687  

2018

    30,744  

2019

    27,205  

2020

    24,634  

Thereafter

    984,431  

  $ 1,128,175  

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 either insured through our wholly-owned captive insurance companies, Rosewood Indemnity, Ltd. and Bridgewood Insurance Company, Ltd., or other financial arrangements controlled by us. The third party carrier has, in turn, agreed, if required, 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 2020. 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, 2015 and 2014, we guaranteed joint venture related mortgage indebtedness of $353.7 million and $223.5 million, respectively (of which we have a right of recovery from our venture partners of $112.8 million and $78.7 million, respectively). Mortgages guaranteed by us are secured by the property of the joint venture which could be sold in order to satisfy the outstanding obligation and which has an estimated fair value in excess of the guaranteed amount.

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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)

Concentration of Credit Risk

            Our malls, Premium Outlets and Mills rely heavily upon anchor tenants to attract customers; however, anchor retailers do not contribute materially to our financial results as many anchor retailers own their spaces. All material operations managed by us are within the United States and no customer or tenant accounts for 5% or more of our 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, 2015 and 2014, as approximately $90.0 million and $101.0 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, unconsolidated joint ventures, and other non-owned related party 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,  
 
  2015   2014   2013  

Amounts charged to unconsolidated joint ventures

  $ 154,098   $ 133,730   $ 121,996  

Amounts charged to properties owned by related parties

    4,324     4,393     4,510  

            During 2015, 2014 and 2013, we recorded development, royalty and other fee income, net of elimination, related to our international investments of $13.6 million, $13.7 million and $14.0 million, respectively. Also during 2015, 2014 and 2013, we received fees related to financing activities, net of elimination, provided to unconsolidated joint ventures of $2.3 million, $4.2 million and $15.9 million, respectively. The fees related to our international investments and financing activities are included in other income in the accompanying consolidated statements of operations and comprehensive income.

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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)

13. Quarterly Financial Data (Unaudited)

            Quarterly 2015 and 2014 data is summarized in the table below. Quarterly amounts may not sum to annual amounts due to rounding.

 
  First
Quarter
  Second
Quarter
  Third
Quarter
  Fourth
Quarter
 

2015

                         

Total revenue

  $ 1,216,235   $ 1,349,110   $ 1,320,137   $ 1,380,621  

Operating income

    599,171     702,385     657,587     709,730  

Consolidated net income

    632,435     554,526     492,496     459,917  

Net income attributable to unitholders

    630,432     552,604     490,344     457,759  

Net income per unit — Basic and Diluted

  $ 1.73   $ 1.52   $ 1.36   $ 1.27  

Weighted average units outstanding — Basic and Diluted

    363,784,004     362,762,067     361,234,111     361,234,804  

2014

                         

Total revenue

  $ 1,157,022   $ 1,181,982   $ 1,234,694   $ 1,297,120  

Operating income

    560,965     561,531     607,557     655,288  

Consolidated income from continuing operations

    359,601     489,609     296,963     475,992  

Consolidated net income

    401,103     477,468     296,963     475,992  

Net income attributable to unitholders

    399,267     475,708     294,900     473,907  

Net income per unit from continuing operations — Basic and Diluted

  $ 0.99   $ 1.34   $ 0.81   $ 1.30  

Net income per unit — Basic and Diluted

  $ 1.10   $ 1.31   $ 0.81   $ 1.30  

Weighted average units outstanding — Basic and Diluted

    363,008,959     363,604,376     363,645,178     363,634,759  

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

            None.

Item 9A.    Controls and Procedures

As of December 31, 2015

            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) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, 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, 2015. 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 (2013). Based on that assessment and criteria, we believe that, as of December 31, 2015, our internal control over financial reporting was effective.

            The audit report of Ernst & Young LLP on their assessment of our internal control over financial reporting as of December 31, 2015 is set forth within Item 8 of this Form 10-K.

            We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

            Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2015. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2015, our disclosure controls and procedures were effective at a reasonable assurance level.

As of March 31, 2015, June 30, 2015 and September 30, 2015

            As part of our year-end reporting procedures and controls, we identified a non-cash gain of $206.9 million, solely relating to our equity method investment in Klépierre SA ("Klépierre") and its acquisition of Corio N.V. ("Corio") and issuance of shares to Corio shareholders in January 2015, that should have been, but was not, recorded in the first quarter of 2015. Notwithstanding this omission, we did disclose the Corio transaction in the footnotes to our 2015 first quarter

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financial statements, including: the dilution of our ownership interest in Klépierre as a result of Klépierre's issuance of shares to Corio shareholders; the number of Klépierre shares we owned; and Klépierre's quoted market price per share at March 31, 2015 (Klépierre is listed on Euronext Paris).

            On January 13, 2016, we amended our quarterly reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015 to record the $206.9 million non-cash gain in the interim financial statements contained therein. In amending these quarterly reports, we did not revise management's conclusions regarding the effectiveness of disclosure controls and procedures as stated in the originally filed quarterly reports.

            This accounting error occurred due to a deficiency in our internal control over interim financial reporting — specifically, a design defect in our internal control over interim financial reporting of equity method investees as a result of our not applying the guidance in ASC-323-10-40-1 when preparing our interim financial statements. Because of this deficiency, which existed until the fourth quarter of 2015, any dilution in our ownership caused by the issuance of additional shares of capital stock by either of the two joint ventures accounted for under the equity method that have the ability to issue such shares, which would result in the need to recognize a gain or loss due to the application of ASC-323-10-40-1, would not have been timely recorded in our interim financial statements. As "disclosure controls and procedures" is defined to include those controls that are designed to ensure that information required to be disclosed in Exchange Act reports is "recorded" within the time periods specified in the Commission's rules and forms, upon further consideration, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, re-evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2015, June 30, 2015 and September 30, 2015. Based on this re-evaluation, our Chief Executive Officer and Chief Financial Officer have now concluded that our disclosure controls and procedures as of such dates were not effective at a reasonable assurance level.

            The procedures performed by the company which identified the appropriate accounting for these transactions by our equity method investees were part of our year-end internal control procedures. We have now implemented additional procedures as part of our quarterly internal control procedures. As a result, this deficiency in our internal control over financial reporting has been remediated and tested as of December 31, 2015.

During the Quarter Ended December 31, 2015

            As discussed above, during the quarter ended December 31, 2015, we implemented procedures encompassing the guidance in ASC-323-10-40-1 as part of our quarterly internal control procedures.

Item 9B.    Other Information

            During the fourth quarter of the year covered by this Annual Report on Form 10-K, the Audit Committee of Simon's Board of Directors approved certain audit, audit-related and non-audit tax compliance and tax consulting services to be provided by Ernst & Young LLP, our independent registered public accounting firm. This disclosure is made pursuant to Section 10A(i)(2) of the Exchange Act 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 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, as amended, or the Exchange Act. Comparable information for Simon can be found in its periodic reports and proxy statements it files with the Securities and Exchange Commission, or SEC.

Item 11.    Executive Compensation

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

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

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

Item 13.    Certain Relationships and Related Transactions and Director Independence

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

Item 14.    Principal Accountant Fees and Services

            The Audit Committee of Simon's Board of Directors pre-approves all audit and permissible non-audit services to be provided by Ernst & Young LLP, or Ernst & Young, Simon's and 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, 2015 and 2014, respectively:

 
  2015   2014  

Audit Fees (1)

  $ 4,072,000   $ 3,753,000  

Audit-Related Fees (2)

    4,336,000     4,269,000  

Tax Fees (3)

    448,000     428,000  

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, and certain of our subsidiaries and services associated with SEC registration statements, periodic reports, and other documents issued in connection with securities offerings.

(2)
Audit-Related Fees include audits of individual or portfolios of 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 is approximately 57% and 58% for the years ended 2015 and 2014 , respectively.

(3)
Tax Fees include fees for international and other tax consulting services and tax return compliance services associated with the tax returns for certain joint ventures as well as other miscellaneous tax compliance services. Our share of these Tax Fees is approximately 89% and 85% for 2015 and 2014, respectively.

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Part IV

Item 15.    Exhibits and Financial Statement Schedules

 
   
   
  Page No.  

(a)

  (1)  

Financial Statements

       

     

The following consolidated financial statements of Simon Property Group, L.P. and subsidiaries are set forth in Part II, item 8.

       

     

Reports of Independent Registered Public Accounting Firm

   
64
 

     

Consolidated Balance Sheets as of December 31, 2015 and 2014

    66  

   

Consolidated Statements of Operations and Comprehensive Income for years ended December 31, 2015, 2014 and 2013

    67  

   

Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013

    68  

   

Consolidated Statements of Equity for the years ended December 31, 2015, 2014 and 2013

    69  

   

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

   
108
 

   

Notes to Schedule III

    113  

     

Other financial statement schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

       

 

(3)

 

Exhibits

       

     

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

   
114
 

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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

February 26, 2016

            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)   February 26, 2016

/s/ HERBERT SIMON

Herbert Simon

 

Chairman Emeritus and Director

 

February 26, 2016

/s/ RICHARD S. SOKOLOV

Richard S. Sokolov

 

President, Chief Operating Officer of Simon Property Group, Inc., General Partner and Director

 

February 26, 2016

/s/ MELVYN E. BERGSTEIN

Melvyn E. Bergstein

 

Director

 

February 26, 2016

/s/ LARRY C. GLASSCOCK

Larry C. Glasscock

 

Director

 

February 26, 2016

/s/ REUBEN S. LEIBOWITZ

Reuben S. Leibowitz

 

Director

 

February 26, 2016

/s/ J. ALBERT SMITH, JR.

J. Albert Smith, Jr.

 

Director

 

February 26, 2016

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Signature   Capacity   Date

 

 

 

 

 
/s/ KAREN N. HORN

Karen N. Horn
  Director   February 26, 2016

/s/ ALLAN HUBBARD

Allan Hubbard

 

Director

 

February 26, 2016

/s/ DANIEL C. SMITH

Daniel C. Smith

 

Director

 

February 26, 2016

/s/ GARY RODKIN

Gary Rodkin

 

Director

 

February 26, 2016

/s/ ANDREW JUSTER

Andrew Juster

 

Executive Vice President and Chief Financial Officer of Simon Property Group, Inc., General Partner (Principal Financial Officer)

 

February 26, 2016

/s/ STEVEN K. BROADWATER

Steven K. Broadwater

 

Senior Vice President and Chief Accounting Officer of Simon Property Group, Inc., General Partner (Principal Accounting Officer)

 

February 26, 2016

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SCHEDULE III

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2015
(Dollars in thousands)

 
   
   
   
   
  Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts
At Which Carried
At Close of Period
   
   
 
   
   
  Initial Cost (3)    
   
 
   
   
   
  Date of
Construction
or
Acquisition
Name
  Location   Encumbrances (6)   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)

Malls

                                                             

Bangor Mall

  Bangor, ME   $ 80,000   $ 5,478   $ 59,740   $   $ 13,599   $ 5,478   $ 73,339   $ 78,817   $ 35,268   2004 (5)

Barton Creek Square

  Austin, TX         2,903     20,929     7,983     67,405     10,886     88,334     99,220     56,790   1981

Battlefield Mall

  Springfield, MO     124,467     3,919     27,231     3,000     63,987     6,919     91,218     98,137     64,580   1970

Bay Park Square

  Green Bay, WI         6,358     25,623     4,106     25,912     10,464     51,535     61,999     28,944   1980

Brea Mall

  Brea (Los Angeles), CA         39,500     209,202         45,970     39,500     255,172     294,672     120,465   1998 (4)

Broadway Square

  Tyler, TX         11,306     32,431         27,175     11,306     59,606     70,912     33,195   1994 (4)

Burlington Mall

  Burlington (Boston), MA         46,600     303,618     19,600     99,494     66,200     403,112     469,312     186,168   1998 (4)

Castleton Square

  Indianapolis, IN         26,250     98,287     7,434     76,214     33,684     174,501     208,185     93,721   1972

Cielo Vista Mall

  El Paso, TX         1,005     15,262     608     56,005     1,613     71,267     72,880     43,202   1974

College Mall

  Bloomington, IN         1,003     16,245     720     46,585     1,723     62,830     64,553     37,926   1965

Columbia Center

  Kennewick, WA         17,441     66,580         28,108     17,441     94,688     112,129     49,309   1987

Copley Place

  Boston, MA             378,045         164,956         543,001     543,001     202,102   2002 (4)

Coral Square

  Coral Springs (Miami), FL         13,556     93,630         21,636     13,556     115,266     128,822     78,296   1984

Cordova Mall

  Pensacola, FL         18,626     73,091     7,321     64,641     25,947     137,732     163,679     58,541   1998 (4)

Domain, The

  Austin, TX     195,224     40,436     197,010         139,994     40,436     337,004     377,440     110,570   2005

Empire Mall

  Sioux Falls, SD     190,000     35,998     192,186         23,833     35,998     216,019     252,017     30,463   1998 (5)

Fashion Mall at Keystone, The

  Indianapolis, IN             120,579     29,145     90,392     29,145     210,971     240,116     94,575   1997 (4)

Firewheel Town Center

  Garland (Dallas), TX         8,485     82,716         27,079     8,485     109,795     118,280     47,765   2004

Forum Shops at Caesars, The

  Las Vegas, NV             276,567         241,471         518,038     518,038     219,881   1992

Greenwood Park Mall

  Greenwood (Indianapolis), IN     74,710     2,423     23,445     5,253     116,410     7,676     139,855     147,531     71,929   1979

Haywood Mall

  Greenville, SC         11,585     133,893     6     36,461     11,591     170,354     181,945     93,940   1998 (4)

Independence Center

  Independence (Kansas City), MO     200,000     5,042     45,798         43,166     5,042     88,964     94,006     46,127   1994 (4)

Ingram Park Mall

  San Antonio, TX     135,491     733     17,163     37     23,970     770     41,133     41,903     28,372   1979

King of Prussia

  King of Prussia (Philadelphia), PA     75,641     175,063     1,128,200         241,420     175,063     1,369,620     1,544,683     194,201   2003 (5)

La Plaza Mall

  McAllen, TX         87,912     9,828     6,569     54,620     94,481     64,448     158,929     32,951   1976

Lakeline Mall

  Cedar Park (Austin), TX         10,088     81,568     14     17,689     10,102     99,257     109,359     54,030   1995

Lenox Square

  Atlanta, GA         38,058     492,411         116,271     38,058     608,682     646,740     278,923   1998 (4)

Livingston Mall

  Livingston (New York), NJ         22,214     105,250         45,506     22,214     150,756     172,970     69,295   1998 (4)

Mall of Georgia

  Buford (Atlanta), GA         47,492     326,633         20,673     47,492     347,306     394,798     156,378   1999 (5)

McCain Mall

  N. Little Rock, AR             9,515     10,530     27,992     10,530     37,507     48,037     11,225   1973

Menlo Park Mall

  Edison (New York), NJ         65,684     223,252         65,851     65,684     289,103     354,787     145,610   1997 (4)

Midland Park Mall

  Midland, TX     80,362     687     9,213         24,594     687     33,807     34,494     20,849   1980

Miller Hill Mall

  Duluth, MN         2,965     18,092     1,811     40,222     4,776     58,314     63,090     37,094   1973

Montgomery Mall

  North Wales (Philadelphia), PA     100,000     27,105     86,915         61,554     27,105     148,469     175,574     53,682   2004 (5)

North East Mall

  Hurst (Dallas), TX         128     12,966     19,010     151,594     19,138     164,560     183,698     99,013   1971

Northgate Mall

  Seattle, WA         24,369     115,992         106,816     24,369     222,808     247,177     105,543   1987

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Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2015
(Dollars in thousands)

 
   
   
   
   
  Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts
At Which Carried
At Close of Period
   
   
 
   
   
  Initial Cost (3)    
   
 
   
   
   
  Date of
Construction
or
Acquisition
Name
  Location   Encumbrances (6)   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)

Ocean County Mall

  Toms River (New York), NJ         20,404     124,945         31,772     20,404     156,717     177,121     76,563   1998 (4)

Orland Square

  Orland Park (Chicago), IL         35,514     129,906         50,868     35,514     180,774     216,288     89,356   1997 (4)

Oxford Valley Mall

  Langhorne (Philadelphia), PA     65,249     24,544     100,287         20,367     24,544     120,654     145,198     72,266   2003 (4)

Penn Square Mall

  Oklahoma City, OK     310,000     2,043     155,958         49,533     2,043     205,491     207,534     102,945   2002 (4)

Pheasant Lane Mall

  Nashua, NH         3,902     155,068     550     46,296     4,452     201,364     205,816     86,814   2004 (5)

Phipps Plaza

  Atlanta, GA         15,005     210,610         59,887     15,005     270,497     285,502     122,663   1998 (4)

Plaza Carolina

  Carolina (San Juan), PR     225,000     15,493     279,560         62,451     15,493     342,011     357,504     124,038   2004 (4)

Prien Lake Mall

  Lake Charles, LA         1,842     2,813     3,053     49,413     4,895     52,226     57,121     24,866   1972

Rockaway Townsquare

  Rockaway (New York), NJ         41,918     212,257         44,919     41,918     257,176     299,094     120,410   1998 (4)

Roosevelt Field

  Garden City (New York), NY         163,160     702,008     1,246     339,761     164,406     1,041,769     1,206,175     371,047   1998 (4)

Ross Park Mall

  Pittsburgh, PA         23,541     90,203         91,305     23,541     181,508     205,049     102,132   1986

Santa Rosa Plaza

  Santa Rosa, CA         10,400     87,864         26,267     10,400     114,131     124,531     52,621   1998 (4)

Shops at Chestnut Hill, The

  Chestnut Hill (Boston), MA     120,000     449     25,102     43,257     102,405     43,706     127,507     171,213     17,569   2002 (5)

Shops at Nanuet, The

  Nanuet, NY         28,125     143,120         10,175     28,125     153,295     181,420     14,340   2013

Shops at Riverside, The

  Hackensack (New York), NJ     130,000     13,521     238,746         16,255     13,521     255,001     268,522     34,240   2007 (4)(5)

South Hills Village

  Pittsburgh, PA         23,445     125,840     1,472     58,817     24,917     184,657     209,574     80,596   1997 (4)

South Shore Plaza

  Braintree (Boston), MA         101,200     301,495         159,976     101,200     461,471     562,671     195,016   1998 (4)

Southdale Center

  Edina (Minneapolis), MN     152,990     40,172     184,967         45,050     40,172     230,017     270,189     30,404   2007 (4)(5)

SouthPark

  Charlotte, NC     184,908     42,092     188,055     100     186,322     42,192     374,377     416,569     167,958   2002 (4)

Southridge Mall

  Greendale (Milwaukee), WI     123,922     12,359     130,111     2,389     18,403     14,748     148,514     163,262     26,086   2007 (4)(5)

St. Charles Towne Center

  Waldorf (Washington, DC), MD         7,710     52,934     1,180     30,898     8,890     83,832     92,722     52,033   1990

Stanford Shopping Center

  Palo Alto (San Jose), CA             339,537         104,531         444,068     444,068     133,697   2003 (4)

Summit Mall

  Akron, OH     65,000     15,374     51,137         47,643     15,374     98,780     114,154     49,922   1965

Tacoma Mall

  Tacoma (Seattle), WA         37,803     125,826         87,545     37,803     213,371     251,174     106,676   1987

Tippecanoe Mall

  Lafayette, IN         2,897     8,439     5,517     48,227     8,414     56,666     65,080     40,768   1973

Town Center at Boca Raton

  Boca Raton (Miami), FL         64,200     307,317         176,802     64,200     484,119     548,319     229,468   1998 (4)

Town Center at Cobb

  Kennesaw (Atlanta), GA     195,052     32,355     158,225         18,869     32,355     177,094     209,449     94,183   1998 (5)

Towne East Square

  Wichita, KS         8,525     18,479     4,108     45,317     12,633     63,796     76,429     42,464   1975

Treasure Coast Square

  Jensen Beach, FL         11,124     72,990     3,067     37,728     14,191     110,718     124,909     61,410   1987

Tyrone Square

  St. Petersburg (Tampa), FL         15,638     120,962     1,459     50,226     17,097     171,188     188,285     85,056   1972

University Park Mall

  Mishawaka, IN         16,768     112,158     7,000     58,184     23,768     170,342     194,110     137,801   1996 (4)

Walt Whitman Shops

  Huntington Station (New York), NY     113,933     51,700     111,258     3,789     126,352     55,489     237,610     293,099     94,988   1998 (4)

White Oaks Mall

  Springfield, IL     50,000     3,024     35,692     2,102     62,858     5,126     98,550     103,676     44,361   1977

Wolfchase Galleria

  Memphis, TN     225,000     15,881     128,276         16,002     15,881     144,278     160,159     77,313   2002 (4)

Woodland Hills Mall

  Tulsa, OK     90,370     34,211     187,123         27,751     34,211     214,874     249,085     106,778   2004 (5)

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Table of Contents

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2015
(Dollars in thousands)

 
   
   
   
   
  Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts
At Which Carried
At Close of Period
   
   
 
   
   
  Initial Cost (3)    
   
 
   
   
   
  Date of
Construction
or
Acquisition
Name
  Location   Encumbrances (6)   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)

Premium Outlets

                                                             

Albertville Premium Outlets

  Albertville (Minneapolis), MN         3,900     97,059         7,651     3,900     104,710     108,610     41,127   2004 (4)

Allen Premium Outlets

  Allen (Dallas), TX         13,855     43,687     9,132     14,883     22,987     58,570     81,557     26,551   2004 (4)

Aurora Farms Premium Outlets

  Aurora (Cleveland), OH         2,370     24,326         5,075     2,370     29,401     31,771     19,612   2004 (4)

Birch Run Premium Outlets

  Birch Run (Detroit), MI     100,460     11,477     77,856         5,212     11,477     83,068     94,545     21,469   2010 (4)

Calhoun Premium Outlets

  Calhoun, GA     19,309     1,745     12,529         1,187     1,745     13,716     15,461     6,683   2010 (4)

Camarillo Premium Outlets

  Camarillo (Los Angeles), CA         16,670     224,721     395     65,372     17,065     290,093     307,158     104,629   2004 (4)

Carlsbad Premium Outlets

  Carlsbad (San Diego), CA         12,890     184,990     96     6,034     12,986     191,024     204,010     64,132   2004 (4)

Carolina Premium Outlets

  Smithfield (Raleigh), NC     47,409     3,175     59,863     5,311     6,101     8,486     65,964     74,450     30,147   2004 (4)

Chicago Premium Outlets

  Aurora (Chicago), IL         659     118,005     13,050     94,636     13,709     212,641     226,350     54,598   2004 (4)

Cincinnati Premium Outlets

  Monroe (Cincinnati), OH         14,117     71,520         5,199     14,117     76,719     90,836     24,572   2008

Clinton Crossing Premium Outlets

  Clinton, CT         2,060     107,556     1,532     3,831     3,592     111,387     114,979     44,404   2004 (4)

Columbia Gorge Premium Outlets

  Troutdale (Portland), OR         7,900     16,492         2,189     7,900     18,681     26,581     10,423   2004 (4)

Desert Hills Premium Outlets

  Cabazon (Palm Springs), CA         3,440     338,679         98,699     3,440     437,378     440,818     121,914   2004 (4)

Edinburgh Premium Outlets

  Edinburgh (Indianapolis), IN         2,857     47,309         15,158     2,857     62,467     65,324     27,262   2004 (4)

Ellenton Premium Outlets

  Ellenton (Tampa), FL     178,000     15,807     182,412         5,159     15,807     187,571     203,378     56,859   2010 (4)

Folsom Premium Outlets

  Folsom (Sacramento), CA         9,060     50,281         4,544     9,060     54,825     63,885     26,112   2004 (4)

Gaffney Premium Outlets

  Gaffney (Greenville/Charlotte), SC     35,042     4,056     32,371         2,672     4,056     35,043     39,099     11,354   2010 (4)

Gilroy Premium Outlets

  Gilroy (San Jose), CA         9,630     194,122         10,697     9,630     204,819     214,449     79,050   2004 (4)

Grand Prairie Premium Outlets

  Grand Prairie (Dallas), TX     120,000     9,497     196,271             9,497     196,271     205,768     22,660   2012

Grove City Premium Outlets

  Grove City (Pittsburgh), PA     140,000     6,421     121,880         4,380     6,421     126,260     132,681     39,372   2010 (4)

Gulfport Premium Outlets

  Gulfport, MS     50,000         27,949         2,434         30,383     30,383     9,717   2010 (4)

Hagerstown Premium Outlets

  Hagerstown (Baltimore/Washington, DC), MD     84,410     3,576     85,883         2,333     3,576     88,216     91,792     22,933   2010 (4)

Houston Premium Outlets

  Cypress (Houston), TX         8,695     69,350         45,070     8,695     114,420     123,115     35,097   2007

Jackson Premium Outlets

  Jackson (New York), NJ         6,413     104,013     3     6,218     6,416     110,231     116,647     37,818   2004 (4)

Jersey Shore Premium Outlets

  Tinton Falls (New York), NJ         15,390     50,979         75,287     15,390     126,266     141,656     41,045   2007

Johnson Creek Premium Outlets

  Johnson Creek, WI         2,800     39,546         6,951     2,800     46,497     49,297     17,956   2004 (4)

Kittery Premium Outlets

  Kittery, ME         11,832     94,994         8,099     11,832     103,093     114,925     33,778   2004 (4)

Las Americas Premium Outlets

  San Diego, CA     174,269     45,168     251,878         6,713     45,168     258,591     303,759     63,471   2007 (4)

Las Vegas North Premium Outlets

  Las Vegas, NV         25,435     134,973     16,536     147,840     41,971     282,813     324,784     81,049   2004 (4)

Las Vegas South Premium Outlets

  Las Vegas, NV         13,085     160,777         31,102     13,085     191,879     204,964     59,268   2004 (4)

Lebanon Premium Outlets

  Lebanon (Nashville), TN         1,758     10,189         741     1,758     10,930     12,688     4,164   2010 (4)

Lee Premium Outlets

  Lee, MA     48,201     9,167     52,212         1,510     9,167     53,722     62,889     16,887   2010 (4)

Leesburg Corner Premium Outlets

  Leesburg (Washington, DC), VA         7,190     162,023         5,292     7,190     167,315     174,505     66,955   2004 (4)

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Table of Contents

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2015
(Dollars in thousands)

 
   
   
   
   
  Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts
At Which Carried
At Close of Period
   
   
 
   
   
  Initial Cost (3)    
   
 
   
   
   
  Date of
Construction
or
Acquisition
Name
  Location   Encumbrances (6)   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)

Liberty Village Premium Outlets

  Flemington (New York), NJ         5,670     28,904         1,660     5,670     30,564     36,234     16,815   2004 (4)

Lighthouse Place Premium Outlets

  Michigan City (Chicago, IL), IN         6,630     94,138         9,051     6,630     103,189     109,819     45,349   2004 (4)

Merrimack Premium Outlets

  Merrimack, NH     128,876     17,028     118,428         1,117     17,028     119,545     136,573     19,546   2012

Napa Premium Outlets

  Napa, CA         11,400     45,023         4,808     11,400     49,831     61,231     20,261   2004 (4)

North Bend Premium Outlets

  North Bend (Seattle), WA         2,143     36,197         3,645     2,143     39,842     41,985     13,875   2004 (4)

North Georgia Premium Outlets

  Dawsonville (Atlanta), GA         4,300     132,325         3,174     4,300     135,499     139,799     51,543   2004 (4)

Orlando International Premium Outlets

  Orlando, FL         31,998     472,815         3,148     31,998     475,963     507,961     99,605   2010 (4)

Orlando Vineland Premium Outlets

  Orlando, FL         14,040     304,410     36,023     79,938     50,063     384,348     434,411     121,507   2004 (4)

Osage Beach Premium Outlets

  Osage Beach, MO         9,460     85,804         7,176     9,460     92,980     102,440     38,512   2004 (4)

Petaluma Village Premium Outlets

  Petaluma (San Francisco), CA         13,322     13,710         3,178     13,322     16,888     30,210     9,542   2004 (4)

Philadelphia Premium Outlets

  Limerick (Philadelphia), PA         16,676     105,249         17,114     16,676     122,363     139,039     48,133   2006

Phoenix Premium Outlets

  Chandler (Phoenix), AZ             63,724                 63,724     63,724     9,960   2013

Pismo Beach Premium Outlets

  Pismo Beach, CA     33,850     4,317     19,044         1,866     4,317     20,910     25,227     7,621   2010 (4)

Pleasant Prairie Premium Outlets

  Pleasant Prairie (Chicago, IL/Milwaukee), WI     34,560     16,823     126,686         4,508     16,823     131,194     148,017     30,877   2010 (4)

Puerto Rico Premium Outlets

  Barceloneta, PR     125,000     20,586     114,021         4,737     20,586     118,758     139,344     27,930   2010 (4)

Queenstown Premium Outlets

  Queenstown (Baltimore), MD     66,150     8,129     61,950         3,831     8,129     65,781     73,910     16,751   2010 (4)

Rio Grande Valley Premium Outlets

  Mercedes (McAllen), TX         12,229     41,547         32,538     12,229     74,085     86,314     33,103   2005

Round Rock Premium Outlets

  Round Rock (Austin), TX         14,706     82,252         3,631     14,706     85,883     100,589     38,818   2005

San Francisco Premium Outlets

  Livermore (San Francisco), CA         21,925     308,694     40,046     50,266     61,971     358,960     420,931     33,858   2012

San Marcos Premium Outlets

  San Marcos (Austin/San Antonio), TX         13,180     287,179         8,249     13,180     295,428     308,608     61,969   2010 (4)

Seattle Premium Outlets

  Tulalip (Seattle), WA             103,722         54,487         158,209     158,209     53,196   2004 (4)

St. Augustine Premium Outlets

  St. Augustine (Jacksonville), FL         6,090     57,670     2     10,128     6,092     67,798     73,890     29,324   2004 (4)

Tampa Premium Outlets

  Lutz (Tampa), FL         14,298     97,188             14,298     97,188     111,486     1,146   2015

The Crossings Premium Outlets

  Tannersville, PA     114,827     7,720     172,931         14,177     7,720     187,108     194,828     64,181   2004 (4)

Tucson Premium Outlets

  Marana (Tucson), AZ         12,508     69,677             12,508     69,677     82,185     666   2015

Vacaville Premium Outlets

  Vacaville, CA         9,420     84,850         13,957     9,420     98,807     108,227     43,736   2004 (4)

Waikele Premium Outlets

  Waipahu (Honolulu), HI         22,630     77,316         18,519     22,630     95,835     118,465     33,442   2004 (4)

Waterloo Premium Outlets

  Waterloo, NY         3,230     75,277         8,656     3,230     83,933     87,163     36,662   2004 (4)

Williamsburg Premium Outlets

  Williamsburg, VA     97,517     10,323     223,789         4,684     10,323     228,473     238,796     48,100   2010 (4)

Woodburn Premium Outlets

  Woodburn (Portland), OR         9,414     150,414         536     9,414     150,950     160,364     17,456   2013 (4)

Woodbury Common Premium Outlets

  Central Valley (New York), NY         11,110     862,559     1,658     176,467     12,768     1,039,026     1,051,794     301,038   2004 (4)

Wrentham Village Premium Outlets

  Wrentham (Boston), MA         4,900     282,031         9,637     4,900     291,668     296,568     105,572   2004 (4)

The Mills

 

 

   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 

 

Arizona Mills

  Tempe (Phoenix), AZ     161,834     41,936     297,289         9,686     41,936     306,975     348,911     21,076   2007 (4)(5)

Great Mall

  Milpitas (San Jose), CA         70,496     463,101         15,318     70,496     478,419     548,915     64,259   2007 (4)(5)

Gurnee Mills

  Gurnee (Chicago), IL     321,000     41,133     297,911         9,722     41,133     307,633     348,766     42,976   2007 (4)(5)

Mills at Jersey Gardens, The

  Elizabeth, NJ     350,000     120,417     865,605         3,088     120,417     868,693     989,110     33,444   2015 (4)

Opry Mills

  Nashville, TN     350,800     51,000     327,503         10,063     51,000     337,566     388,566     46,444   2007 (4)(5)

Potomac Mills

  Woodbridge (Washington, DC), VA     410,000     61,755     425,370         34,324     61,755     459,694     521,449     64,120   2007 (4)(5)

Sawgrass Mills

  Sunrise (Miami), FL         194,002     1,641,153     5,395     94,365     199,397     1,735,518     1,934,915     218,917   2007 (4)(5)

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Table of Contents

Simon Property Group, L.P. and Subsidiaries
Real Estate and Accumulated Depreciation
December 31, 2015
(Dollars in thousands)

 
   
   
   
   
  Cost Capitalized
Subsequent to
Acquisition (3)
  Gross Amounts
At Which Carried
At Close of Period
   
   
 
   
   
  Initial Cost (3)    
   
 
   
   
   
  Date of
Construction
or
Acquisition
Name
  Location   Encumbrances (6)   Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Land   Buildings and
Improvements
  Total (1)   Accumulated
Depreciation (2)

Community Centers

                                                             

ABQ Uptown

  Albuquerque, NM         6,374     75,333     4,054     4,522     10,428     79,855     90,283     14,299   2011 (4)

University Park Village

  Fort Worth, TX     55,000     18,031     100,354         2,362     18,031     102,716     120,747     3,542   2015 (4)

Other Properties

 

 

   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 

 

Florida Keys Outlet Center

  Florida City, FL     17,000     1,560     1,748         3,017     1,560     4,765     6,325     1,738   2010 (4)

Huntley Outlet Center

  Huntley, IL         3,477     2,027         345     3,477     2,372     5,849     1,462   2010 (4)

Lincoln Plaza

  King of Prussia (Philadelphia), PA             21,299         2,925         24,224     24,224     14,042   2003 (4)

Naples Outlet Center

  Naples, FL         1,514     519         107     1,514     626     2,140     458   2010 (4)

Outlet Marketplace

  Orlando, FL         3,367     1,557         1,891     3,367     3,448     6,815     1,209   2010 (4)

Development Projects

 

 

   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 

 

Other pre-development costs

            68,319     15,607             68,319     15,607     83,926     78    

Other

            2,615     10,873             2,615     10,873     13,488     5,423    

      $ 6,570,833   $ 3,081,047   $ 23,341,842   $ 336,669   $ 6,373,327   $ 3,417,716   $ 29,715,169   $ 33,132,885   $ 9,696,420    

112


Table of Contents

Simon Property Group, L.P. and Subsidiaries
Notes to Schedule III as of December 31, 2015
(Dollars in thousands)

            All periods presented exclude properties which were spun-off to Washington Prime as further discussed in Note 3 to the consolidated financial statements.

(1)
Reconciliation of Real Estate Properties:

            The changes in real estate assets for the years ended December 31, 2015, 2014, and 2013 are as follows:

 
  2015   2014   2013  

Balance, beginning of year

  $ 31,014,133   $ 30,048,230   $ 29,263,463  

Acquisitions and consolidations (5)

    1,190,944     393,351     288,835  

Improvements

    995,964     791,453     874,240  

Disposals and deconsolidations

    (68,156 )   (218,901 )   (378,308 )

Balance, close of year

  $ 33,132,885   $ 31,014,133   $ 30,048,230  

            The unaudited aggregate cost of real estate assets for federal income tax purposes as of December 31, 2015 was $29,771,725.

(2)
Reconciliation of Accumulated Depreciation:

            The changes in accumulated depreciation for the years ended December 31, 2015, 2014, and 2013 are as follows:

 
  2015   2014   2013  

Balance, beginning of year

  $ 8,740,928   $ 7,896,614   $ 7,055,622  

Depreciation expense

    1,018,078     997,482     948,811  

Disposals and deconsolidations

    (62,586 )   (153,168 )   (107,819 )

Balance, close of year

  $ 9,696,420   $ 8,740,928   $ 7,896,614  

            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 noted below.

(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 initial acquisition date for assets in which we have acquired multiple interests.

(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)
Encumbrances represent face amount of mortgage debt and exclude any premiums or discounts.

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Table of Contents

EXHIBIT INDEX

Exhibits
   
  2.1   Separation and Distribution Agreement by and among Simon Property Group, Inc., Simon Property Group, L.P., Washington Prime Group Inc. and Washington Prime Group, L.P., dated as of May 27, 2014 (incorporated by reference to Exhibit 2.1 of Simon Property Group, Inc.'s Current Report on Form 8-K filed May 29, 2014).
        
  3.1   Second Amended and Restated Certificate of Limited Partnership of the Limited Partnership (incorporated by reference to Exhibit 3.1 of Simon Property Group, L.P.'s Annual Report on Form 10-K filed March 31, 2003, SEC File No. 333-11491).
        
  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 filed May 9, 2008, SEC File No. 001-14469).
        
  3.3   Certificate of Designation of Series B Junior Participating Redeemable Preferred Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 3.1 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q filed August 8, 2014).
        
  3.4   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 of Simon Property Group, L.P.'s Annual Report on Form 10-K filed March 16, 2007, SEC File No. 333-11491).
        
  3.5   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 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q filed May 8, 2009, SEC File No. 333-11491).
        
  4.1  (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 of Simon Property Group, L.P.'s Registration Statement on Form S-3 filed October 21, 1996 (Reg. No. 333-11491)).
        
  10.1 * Simon Property Group, L.P. Amended and Restated 1998 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Current Report on Form 8-K filed April 10, 2014).
        
  10.2 * Certificate of Designation of Series 2010 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.4 of Simon Property Group, Inc.'s Current Report on Form 8-K filed March 19, 2010).
        
  10.3 * Form of Simon Property Group Series 2010 LTIP Unit (Three Year Program) Award Agreement (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Current Report on Form 8-K filed March 19, 2010).
        
  10.4 * Form of Simon Property Group Series 2010 LTIP Unit (Two Year Program) Award Agreement (incorporated by reference to Exhibit 10.2 of Simon Property Group, Inc.'s Current Report on Form 8-K filed March 19, 2010).
        
  10.5 * Form of Simon Property Group Series 2010 LTIP Unit (One Year Program) Award Agreement (incorporated by reference to Exhibit 10.3 of Simon Property Group, Inc.'s Current Report on Form 8-K filed March 19, 2010).
        
  10.6 * Certificate of Designation of Series CEO LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.3 of Simon Property Group, Inc.'s Current Report on Form 8-K filed July 7, 2011).
        
  10.7 * Simon Property Group Series CEO LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.4 of Simon Property Group, Inc.'s Current Report on Form 8-K filed July 7, 2011).
 
   

114


Table of Contents

Exhibits
   
  10.8 * First Amendment to Simon Property Group Series CEO LTIP Unit Award Agreement, dated as of December 22, 2011 (incorporated by reference to Exhibit 10.24 of Simon Property Group, Inc.'s Annual Report on Form 10-K filed February 28, 2012).
        
  10.9 * Second Amendment to Simon Property Group Series CEO LTIP Unit Award Agreement, dated as of March 29, 2013 (incorporated by reference to Exhibit 10.2 of Simon Property Group, Inc.'s Current Report on Form 8-K filed April 4, 2013).
        
  10.10 * Simon Property Group Amended and Restated Series CEO LTIP Unit Award Agreement, dated as of December 31, 2013 (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Current Report on Form 8-K filed January 2, 2014).
        
  10.11 * Certificate of Designation of Series 2011 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.5 of Simon Property Group, Inc.'s Current Report on Form 8-K filed July 7, 2011).
        
  10.12 * Form of Simon Property Group Series 2011 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.6 of Simon Property Group, Inc.'s Current Report on Form 8-K filed July 7, 2011).
        
  10.13 * Certificate of Designation of Series 2012 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.2 of Simon Property Group, L.P's Quarterly Report on Form 10-Q filed May 11, 2012)
        
  10.14 * Amended and Restated Certificate of Designation of Series 2012 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.5 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q filed May 7, 2014).
        
  10.15 * Form of Simon Property Group Series 2012 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Quarterly Report on Form 10-Q filed May 8, 2012).
        
  10.16 * Simon Property Group Amended and Restated Series 2012 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.1 of Simon Property Group, Inc.'s Current Report on Form 8-K filed April 28, 2014).
        
  10.17 * 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.).
        
  10.18   Voting Agreement dated as of June 20, 2004 among 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 of Simon Property Group, Inc.'s Current Report on Form 8-K filed June 22, 2004, SEC File No. 001-14469).
        
  10.19   Amended and Restated $4,000,000,000 Credit Agreement dated as of April 7, 2014 (incorporated by reference to Exhibit 99.2 of Simon Property Group, L.P.'s Current Report on Form 8-K filed April 8, 2014).
        
  10.20 * Certificate of Designation of Series 2013 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.2 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q filed May 10, 2013).
        
  10.21 * Form of Simon Property Group Series 2013 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.3 of Simon Property Group, Inc.'s Current Report on Form 8-K filed April 4, 2013).
        
  10.22 * Simon Property Group CEO LTIP Unit Adjustment Waiver, dated April 18, 2014 (incorporated by reference to Exhibit 10.3 of Simon Property Group Inc.'s Current Report on Form 8-K filed April 28, 2014).
        
  10.23 * Form of Simon Property Group Series 2014 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.2 of Simon Property Group, Inc.'s Quarterly Report on Form 10-Q filed May 7, 2014).
        
  10.24 * Certificate of Designation of Series 2014 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.3 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q filed May 7, 2014).

115


Table of Contents

Exhibits
   
        
  10.25 * Form of Simon Property Group Executive Officer LTIP Waiver, dated April 18, 2014 (incorporated by reference to Exhibit 10.2 of Simon Property Group, Inc.'s Current Report on Form 8-K filed April 28, 2014).
        
  10.26   Form of Global Dealer Agreement, dated October 6, 2014 (incorporated by reference to Exhibit 10.2 of Simon Property Group, L.P.'s Current Report on Form 8-K filed October 7, 2014).
        
  10.27   Amended and Restated $2,750,000,000 Credit Agreement dated as of March 2, 2015 (incorporated by reference to Exhibit 10.1 of Simon Property Group, L.P.'s Current Report on Form 8-K filed March 3, 2015).
        
  10.28   Notice of Increase of Maximum Amount under Global Dealer Agreement dated as of February 27, 2015 (incorporated by reference to Exhibit 10.2 of Simon Property Group, L.P.'s Current Report on Form 8-K filed March 3, 2015).
        
  10.29 * Form of Simon Property Group Series 2015 LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.3 of Simon Property Group, Inc.'s Form 10-Q/A for the quarter ended March 31, 2015 filed January 13, 2016.
        
  10.30 * Certificate of Designation of Series 2015 LTIP Units of Simon Property Group, L.P. (incorporated by reference to Exhibit 10.4 of Simon Property Group, L.P.'s Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2015 filed on January 13, 2016).
        
  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.
        
  101.INS   XBRL Instance Document
        
  101.SCH   XBRL Taxonomy Extension Schema Document
        
  101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
        
  101.LAB   XBRL Taxonomy Extension Label Linkbase Document
        
  101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document
        
  101.DEF   XBRL Taxonomy Extension Definition Linkbase Document

(a)
Does not include supplemental indentures that 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.

116




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Exhibit 12.1

Simon Property Group, L.P. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
Unaudited, (in thousands)

 
  For the year ended December 31,  
 
  2015   2014   2013
Restated
  2012
Restated
  2011
Restated
 

Earnings:

                               

Pre-tax income from continuing operations

    2,159,545     1,650,250     1,406,331   $ 1,578,957   $ 1,097,478  

Add:

                               

Distributions of income from unconsolidated entities

    271,998     201,614     177,354     148,927     112,611  

Amortization of capitalized interest

    4,527     3,925     3,900     999     2,830  

Fixed Charges

    1,090,371     1,150,251     1,110,893     1,102,184     946,500  

Less:

                               

Income from unconsolidated entities

    (535,322 )   (226,774 )   (206,380 )   (121,634 )   (255,201 )

Minority interest in pre-tax (income) loss of subsidiaries that have not incurred fixed charges

    (399 )   (347 )   (1,063 )   (1,286 )   (1,249 )

Interest capitalization

    (32,664 )   (16,500 )   (15,585 )   (20,703 )   (5,700 )

Earnings

  $ 2,958,056   $ 2,762,419   $ 2,475,450   $ 2,687,444   $ 1,897,269  

Fixed Charges:

                               

Portion of rents representative of the interest factor

    13,057     13,577     13,227     13,300     12,600  

Interest on indebtedness (including amortization of debt expense)

    923,697     992,601     1,082,081     1,068,181     928,200  

Interest capitalized

    32,664     16,500     15,585     20,703     5,700  

Loss on extinguishment of debt

    120,953     127,573              

Fixed Charges

  $ 1,090,371   $ 1,150,251   $ 1,110,893   $ 1,102,184   $ 946,500  

Ratio of Earnings to Fixed Charges

    2.71x     2.40x     2.23x     2.44x     2.00x  

            For purposes of calculating the ratio of earnings to fixed charges, the term "earnings" is the amount resulting from adding (a) pre-tax income from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or income or loss from equity investees, (b) fixed charges, (c) amortization of capitalized interest and (d) distributed income of equity investees, reduced by (a) interest capitalized and (b) the noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges. "Fixed charges" consist of (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness and (c) an estimate of the interest within rental expense.

            There are generally no restrictions on our ability to receive distributions from our joint ventures where no preference in favor of the other owners of the joint venture exists.

            Ratios have been revised for all years presented to reflect the spin-off of WP Glimcher Inc. (formerly known as Washington Prime Group Inc.).




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Exhibit 21.1

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
M.S. Management Associates, Inc.    Delaware
Bridgewood Insurance Company, Ltd.    Bermuda
Simon Property Group Administrative Services Partnership, L.P.    Delaware
Kravco Simon Investments, L.P.    Pennsylvania
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
Simon KP I S.a.r.l.    Luxembourg
Simon KP II S.a.r.l.    Luxembourg
Simon-Mills I, LLC   Delaware

Omits names of subsidiaries that as of December 31, 2015 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. 333-202562-01) of Simon Property Group, L.P. and in the related prospectus of our reports dated February 26, 2016 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, 2015.

    /s/ ERNST & YOUNG LLP

Indianapolis, Indiana
February 26, 2016

 

 



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Consent of Independent Registered Public Accounting Firm

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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:

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: February 26, 2016

    /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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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, Andrew Juster, 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: February 26, 2016

    /s/ ANDREW JUSTER

Andrew Juster
Executive Vice President and Chief Financial
Officer of Simon Property Group, Inc., General Partner



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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 ended December 31, 2015 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
   

February 26, 2016

 

 

/s/ ANDREW JUSTER

Andrew Juster
Executive Vice President and
Chief Financial Officer of
Simon Property Group, Inc., General Partner

 

 

February 26, 2016

 

 



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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