<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 17, 2000
SIMON PROPERTY GROUP, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 001-14469 046268599
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
115 WEST WASHINGTON STREET
INDIANAPOLIS, INDIANA 46204
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 317.636.1600
------------
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Page 1 of 38 Pages
<PAGE>
Item 5. Other Events
On February 16, 2000, the Registrant issued a press release containing
information on earnings for the year ended December 31, 1999 and other matters.
A copy of the press release is included as an exhibit to this filing.
On February 17, 2000, the Registrant made available additional
ownership and operation information concerning the Registrant, SPG Realty
Consultants, Inc. (the Registrant's paired-share affiliate), Simon Property
Group, L.P., and properties owned or managed as of December 31, 1999, in the
form of a Supplemental Information package, a copy of which is included as an
exhibit to this filing. The Supplemental Information package is available upon
request as specified therein.
Item 7. Financial Statements and Exhibits
Financial Statements:
None
Exhibits:
Page Number in
Exhibit No. Description This Filing
- ----------- ----------- -----------
99.1 Supplemental Information 5
as of December 31, 1999
99.2 Earnings Release for the 30
quarter and year ended
December 31, 1999
Page 2 of 38 Pages
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: February 17, 2000
SIMON PROPERTY GROUP, INC.
By: /s/ Stephen E. Sterrett
-------------------------
Stephen E. Sterrett,
Treasurer
Page 3 of 38 Pages
<PAGE>
SIMON PROPERTY GROUP
Table of Contents
As of December 31, 1999
<TABLE>
<CAPTION>
Description Page
- ----------- ----
<S> <C>
Exhibit 99.1 Supplemental Information
Overview 5
Ownership Structure 6-8
Reconciliation of Income to Funds from Operations ("FFO") 9
Selected Financial Information 10-11
Portfolio GLA, Occupancy & Rent Data 12
Rent Information 13
Lease Expirations 14-15
Debt Amortization and Maturities by Year 16
Summary of Indebtedness 17
Summary of Indebtedness by Maturity 18-24
Summary of Variable Rate Debt and Interest Rate
Protection Agreements 25-26
New Development Activities 27
Significant Renovation/Expansion Activities 28
Capital Expenditures 29
Exhibit 99.2 Press Release 30-38
</TABLE>
4 of 38
<PAGE>
Exhibit 99.1
SIMON PROPERTY GROUP
Overview
The Company
- -----------
Simon Property Group, Inc. ("SPG") (NYSE:SPG) is a self-administered and self-
managed real estate investment trust ("REIT"). Simon Property Group, L.P. (the
"Operating Partnership") is a subsidiary partnership of SPG. Shares of SPG are
paired with beneficial interests in shares of stock of SPG Realty Consultants,
Inc. ("SRC", and together with SPG, the "Company"). The Company and the
Operating Partnership (collectively the "Simon Group") are engaged primarily in
the ownership, operation, management, leasing, acquisition, expansion and
development of real estate properties, primarily regional malls and community
shopping centers.
At December 31, 1999, the Company, directly or through the Operating
Partnership, owned or had an interest in 259 properties which consisted of
regional malls, community shopping centers, and specialty and mixed-use
properties containing an aggregate of 185 million square feet of gross leasable
area (GLA) in 36 states and five assets in Europe. The Company, together with
its affiliated management companies, owned or managed approximately 190 million
square feet of GLA in retail and mixed-use properties.
During 1999, the Company completed the acquisition of a regional mall portfolio
from New England Development Company (NED). A limited liability company
comprised of SPG (49%), JPMorgan Investment Management's Strategic Property Fund
(11%), New York State Teachers Retirement System (26%) and Teachers Insurance
and Annuity Association (14%) acquired 13 malls; Simon alone acquired the
remaining NED regional mall; and Simon assumed management responsibilities from
NED's affiliated management company for all 14 of the properties.
This package was prepared to provide (1) ownership information, (2) certain
operational information, and (3) debt information as of December 31, 1999, for
the Company and the Operating Partnership.
Certain statements contained in this Supplemental Package may constitute
"forward-looking statements" made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements involve risks and uncertainties which may affect the
business and prospects of the Company and the Operating Partnership, including
the risks and uncertainties discussed in other periodic filings made by the
Company and the Operating Partnership with the Securities and Exchange
Commission.
We hope you find this Supplemental Package beneficial. Any questions, comments
or suggestions should be directed to: Shelly J. Doran, Director of Investor
Relations-Simon Property Group, P.O. Box 7033, Indianapolis, IN 46207.
Telephone: (317) 685-7330; e-mail: [email protected]
5 of 38
<PAGE>
SIMON PROPERTY GROUP
ECONOMIC OWNERSHIP STRUCTURE/(1)/
DECEMBER 31, 1999
- -------------------------------------------------------------------------------
Simon Property Group, Inc. /(2)/(3)/(4)/
<TABLE>
<CAPTION>
Common Shareholders Shares %
- ------------------- ------ --
<S> <C> <C>
Public Shareholders 167,731,000 96.9%
Simon Family 4,248,311 2.4%
DeBartolo Family 32,567 0.0%
Executive Management/(5)/ 1,153,377 0.7%
----------- ----
173,165,255/4/ 100.0%
- --------------------------------------------------------------------------
</TABLE>
167,877,241 units
------------------------------
Simon Property Group, L.P.
233,321,921 units
------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------
Limited Partners
("Limited Partners")
Unitholders Units %
- ----------- ----- -
<S> <C> <C>
Simon Family 34,584,455 52.8%
DeBartolo Family 22,222,599 34.0%
Executive Management (5) 153,498 0.2%
Other Limited Partners 8,484,128 13.0%
---------- ------
65,444,680 100.0%
</TABLE>
65,444,680 units
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
Ownership of Simon Property Group, L.P.
- ---------------------------------------
Simon Property Group, Inc. %
<S> <C>
Public Shareholders 69.7%
Simon Family 1.8%
DeBartolo Family 0.0%
Executive Management /(5)/ 0.5%
------
Subtotal 72.0%
------
Limited Partners
Simon Family 14.8%
DeBartolo Family 9.5%
Executive Management /(5)/ 0.1%
Other Limited Partners 3.6%
------
Subtotal 28.0%
------
Total 100.0%
- -----------------------------------------------------------------
</TABLE>
(1) Schedule excludes preferred stock (see "Preferred Stock/Units Outstanding")
and units not convertible into common stock.
(2) General partner of Simon Property Group, L.P.
(3) Shares of Simon Property Group, Inc. ("SPG") are paired with beneficial
interests in shares of stock of SPG Realty Consultants, Inc.
(4) The number of outstanding shares of common stock of SPG exceeds the number
of Simon Property Group, L.P. units owned by SPG by 5,288,014. This is the
result of the direct ownership of Ocean County Mall by SPG.
(5) Executive management excludes Simon family members.
6 of 38
<PAGE>
SIMON PROPERTY GROUP
Changes in Common Shares and Unit Ownership
For the Period from December 31, 1998 through December 31, 1999
<TABLE>
<CAPTION>
Operating
Partnership Company
Units/(1)/ Common Shares/(2)/
----------- ------------------
<S> <C> <C>
Number Outstanding at December 31, 1998 64,182,157 166,775,031
Restricted Stock Awards (Stock Incentive Program), Net - 537,861
Conversion of Series A Preferred Stock into Common Stock - 6,080,330
Conversion of Units into Cash (6,923) -
Issuance of Stock for Stock Option Exercises - 82,988
Issuance of Units in Connection with the New England
Development Portfolio Acquisition 1,269,446 -
Stock Purchased by Affiliated Captive Insurance Company - (310,955)
Number Outstanding at December 31, 1999 65,444,680 173,165,255
</TABLE>
-------------------------------------------------------------------
Total Common Shares and Units Outstanding at December 31, 1999:
238,609,935/(2)/
-------------------------------------------------------------------
Details for Diluted FFO Calculation:
- ------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Company Common Shares Outstanding at December 31, 1999 173,165,255
Number of Common Shares Issuable Assuming Conversion of:
Series A Preferred 6.5% Convertible 2,024,051
Series B Preferred 6.5% Convertible 12,527,686
Net Number of Common Shares Issuable Assuming Exercise of Stock Options 15,940
Diluted Common Shares Outstanding at December 31, 1999 187,732,932
</TABLE>
---------------------------------------------------------------------------
Fully Diluted Common Shares and Units Outstanding at December 31, 1999:
253,177,612
---------------------------------------------------------------------------
(1) Excludes units owned by the Company (shown here as Company Common Shares)
and units not convertible into common shares.
(2) Excludes preferred units relating to preferred stock outstanding (see
Schedule of Preferred Stock Outstanding).
7 of 38
<PAGE>
SIMON PROPERTY GROUP
Preferred Stock/Units Outstanding
As of December 31, 1999
($ in 000's)
<TABLE>
<CAPTION>
Number of Liquidation Ticker
Issuer Description Shares/Units Preference $ Symbol
Preferred Shares:
Convertible
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Simon Property Group, Inc. Series A Preferred 53,271 $1,000 $ 53,271 N/A
6.5% Convertible /(1)/
- ------------------------------------------------------------------------------------------------------------------------------------
Simon Property Group, Inc. Series B Preferred 4,844,331 $ 100 $484,433 SPGPrB
6.5% Convertible /(2)/
- ------------------------------------------------------------------------------------------------------------------------------------
Perpetual
- ------------------------------------------------------------------------------------------------------------------------------------
SPG Properties, Inc. Series B Preferred 8,000,000 $ 25 $200,000 SGVPrB
8 3/4% Perpetual /(3)/
- ------------------------------------------------------------------------------------------------------------------------------------
SPG Properties, Inc. Series C Preferred 7.89% 3,000,000 $ 50 $150,000 N/A
Perpetual /(4)/
- ------------------------------------------------------------------------------------------------------------------------------------
Simon Property Group, Inc. Series E Preferred 8% 1,000,000 $ 25 $ 25,000 N/A
Cumulative Redeemable /(5)/
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred Units:
- ------------------------------------------------------------------------------------------------------------------------------------
Simon Property Group, L.P. Series C 7% Cumulative 2,584,227 $ 28 $ 72,358 N/A
Convertible
Preferred/(6)/
- ------------------------------------------------------------------------------------------------------------------------------------
Simon Property Group, L.P. Series D 8% Cumulative 2,584,227 $ 30 $ 77,527 N/A
Redeemable Preferred /(7)/
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Assumed in connection with the CPI merger. Each share is convertible into a
number of shares of common stock obtained by dividing $1,000 by $26.319
(conversion price), which is subject to adjustment as outlined below. The
stock is not redeemable, except as needed to maintain or bring the direct
or indirect ownership of the capital stock of the Company into conformity
with the requirements of Section 856(a)(6) of the Code.
(2) Issued as part of the consideration for the CPI merger. Each share is
convertible into a number of shares of common stock of the Company obtained
by dividing $100 by $38.669 (the conversion price), which is subject to
adjustment as outlined below. The Company may redeem the stock on or after
September 24, 2003 at a price beginning at 105% of the liquidation
preference plus accrued dividends and declining to 100% of the liquidation
preference plus accrued dividends any time on or after September 24, 2008.
The shares are traded on the New York Stock Exchange. The closing price on
December 31, 1999, was $60.50 per share.
The conversion prices of the Series A and Series B Convertible Preferred
Stock are subject to adjustment by the Company in connection with certain
events.
(3) SPG Properties, Inc. may redeem the stock on or after September 29, 2006.
The shares are not convertible into any other securities of SPG Properties,
Inc. or the Company. The shares are traded on the New York Stock Exchange.
The closing price on December 31, 1999, was $20.25 per share.
(4) The Cumulative Step-Up Premium Rate Preferred Stock was issued at 7.89%.
The shares are redeemable after September 30, 2007. Beginning October 1,
2012, the rate increases to 9.89%.
(5) Issued in connection with the Mall of America acquisition. Simon Property
Group, Inc. Series E Preferred 8% Cumulative Redeemable Stock is not
redeemable prior to August 27, 2004. On or after August 27, 2004, the
Corporation may redeem the shares, in whole or in part, for cash at the
Liquidation Preference plus accrued and unpaid dividend, if any.
(6) Issued in connection with the New England Development Acquisition. Each
unit/share is convertible into 0.75676 shares of common stock on or after
August 27, 2004 if certain conditions are met.. Each unit/share is not
redeemable prior to August 27, 2009.
(7) Issued in connection with the New England Development Acquisition. Each
unit/share is not redeemable prior to August 27, 2009.
8 of 38
<PAGE>
SIMON PROPERTY GROUP
Reconciliation of Income to Funds From Operations ("FFO")
As of December 31, 1999
(Amounts in thousands, except per share data)
<TABLE>
<CAPTION>
Twelve Months Ended
December 31,
1999 1998
---- ----
<S> <C> <C>
Income Before Unusual and Extraordinary Items $316,100 $236,230
Plus: Depreciation and Amortization from Consolidated Properties 381,265 267,423
Less: Minority Interest Portion of Depreciation, Amortization
and Extraordinary Items (5,128) (7,307)
Plus: Simon's Share of Depreciation, Amortization and Extraordinary
and Other Items from Unconsolidated Entities 104,537 82,323
Plus: (Gains) Losses on Sales of Assets 7,062 7,283
Less: Preferred Dividends/Distributions (69,323) (41,471)
(including those of subsidiary)
------------ ------------
FFO of the Simon Portfolio $734,513 $544,481
------------ ------------
Percent Increase 34.9%
===================================================================================================================
FFO of the Simon Portfolio $734,513 $544,481
Basic FFO per Paired Share:
Basic FFO Allocable to the Company $534,285 $361,326
Basic Weighted Average Paired Shares Outstanding 172,089 126,522
Basic FFO per Paired Share $ 3.10 $ 2.86
=========== ===========
Percent Increase 8.4%
Diluted FFO per Paired Share:
Diluted FFO Allocable to the Company $574,029 $374,980
Diluted Weighted Average Paired Shares Outstanding 187,732 132,378
Diluted FFO per Paired Share $ 3.06 $ 2.83
=========== ===========
Percent Increase 8.1%
====================================================================================================================
</TABLE>
9 of 38
<PAGE>
SIMON PROPERTY GROUP
Selected Financial Information
As of December 31, 1999
(In thousands, except as noted)
<TABLE>
<CAPTION>
As of or for the
Twelve Months Ended
December 31,
1999 1998 % Change
---- ---- --------
<S> <C> <C> <C>
Financial Highlights of the Company
- -----------------------------------
Total Revenue - Consolidated Properties $1,892,703 $1,405,559 34.7%
Total EBITDA of Simon Portfolio $1,843,131 $1,361,703 35.4%
EBITDA After Minority Interest $1,455,272 $1,068,233 36.2%
Net Income Available to Common Shareholders $ 167,314 $ 133,598 25.2%
Basic Net Income per Common Share $ 0.97 $ 1.06 -8.5%
Diluted Net Income per Common Share $ 0.97 $ 1.06 -8.5%
FFO of the Simon Portfolio $ 734,513 $ 544,481 34.9%
Basic FFO Allocable to the Company $ 534,285 $ 361,326 47.9%
Diluted FFO Allocable to the Company $ 574,029 $ 374,980 53.1%
Basic FFO per Common Share $ 3.10 $ 2.86 8.4%
Diluted FFO per Common Share $ 3.06 $ 2.83 8.1%
Distributions per Common Share $ 2.0200 $ 2.0200 0.0%
Operational Statistics
- ----------------------
Occupancy at End of Period:
Regional Malls /(1)/ 90.6% 90.0% 0.6%
Community Shopping Centers /(2)/ 88.6% 91.4% -2.8%
Average Base Rent per Square Foot:
Regional Malls /(1)/ $ 27.33 $ 25.70 6.3%
Community Shopping Centers /(2)/ $ 8.36 $ 7.68 8.9%
Regional Malls:
Total Tenant Sales Volume, in millions /(3)/ /(4)/ $ 15,542 $ 12,936 20.1%
Comparable Sales per Square Foot /(4)/ $ 377 $ 346 9.0%
Total Sales per Square Foot /(4)/ $ 367 $ 343 7.0%
Number of U.S. Properties Open at End of Period 259 242 7.0%
Total U.S. GLA at End of Period, in millions of square feet 184.6 165.9 11.3%
</TABLE>
(1) Includes mall and freestanding stores.
(2) Includes all Owned GLA.
(3) Represents only those tenants who report sales.
(4) Based upon the standard definition of sales for regional malls adopted
by the International Council of Shopping Centers which includes only
mall and freestanding stores less than 10,000 square feet.
10 of 38
<PAGE>
SIMON PROPERTY GROUP
Selected Financial Information
As of December 31, 1999
(In thousands, except as noted)
<TABLE>
<CAPTION>
December 31, December 31,
Equity Information 1999 1998
- ------------------- ---- ----
<S> <C> <C>
Limited Partner Units Outstanding at End of Period 65,445 64,182
Common Shares Outstanding at End of Period 173,165 166,775
--------------- ---------------
Total Common Shares and Units Outstanding at End of Period 238,610 230,957
=============== ===============
Basic Weighted Average Paired Shares Outstanding 172,089 126,522
Diluted Weighted Average Number of Equivalent Paired Shares/(1)/ 187,732 126,879
December 31, December 31,
1999 1998
---- ----
Debt Information
- ----------------
Consolidated Debt $ 8,768,951 $ 7,973,372
Simon Group's Share of Joint Venture Debt $ 1,886,360 $ 1,227,044
Debt-to-Market Capitalization
- -----------------------------
Common Stock Price at End of Period $ 22.9375 $ 28.5000
Equity Market Capitalization /(2)/ $ 6,320,891 $ 7,608,188
Total Consolidated Capitalization $ 15,089,842 $15,581,560
Total Capitalization - Including Simon Group's Share of JV Debt $ 16,976,202 $16,808,604
</TABLE>
(1) Diluted for purposes of computing FFO per share.
(2) Market value of Common Stock, Units and all issues of Preferred Stock of
SPG and SPG Properties, Inc.
11 of 38
<PAGE>
SIMON PROPERTY GROUP
Portfolio GLA, Occupancy & Rent Data
As of December 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Avg. Annualized
% of Owned Base Rent Per
Total % of GLA Which Leased Sq. Ft.
Type of Property GLA-Sq. Ft. Owned GLA Owned GLA is Leased of Owned GLA
- --------------------------------------------------------------------------------------------------------
Regional Malls
- ----------------------------
<S> <C> <C> <C> <C> <C>
- -Anchor 96,170,080 30,056,285 27.2% 98.3% $ 3.80
- -Mall Store 55,575,193 55,527,296 50.3% 90.5% $28.00
- -Freestanding 3,574,036 1,832,813 1.7% 95.1% $ 9.05
----------- ---------- ----
Subtotal 59,149,229 57,360,109 52.0% 90.6% $27.33
Regional Mall Total 155,319,309 87,416,394 79.2% 93.3% $18.92
Community Shopping Centers
- ----------------------------
- -Anchor 13,526,888 8,767,449 7.9% 92.3% $ 6.80
- -Mall Store 4,983,780 4,898,022 4.4% 81.1% 11.65
- -Freestanding 985,361 479,372 .4% 97.7% 7.45
----
Community Ctr. Total 19,496,029 14,144,843 12.7% 88.6% $ 8.36
Office Portion of
Mixed-Use Properties 2,858,104 2,858,104 2.6% 89.2% $19.40
Value-Oriented
Super-Regional Malls 5,309,627 5,184,627 4.6% 95.1% $16.34
First Quarter 2000
Expected Dispositions 1,625,370 1,031,154 0.9%
GRAND TOTAL 184,608,439 110,635,122 100.00%
</TABLE>
- ------------------------------------------------------------------------------
Occupancy History
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Community
As of Regional Malls/(1)/ Shopping Centers/(2)/
----- -------------- ----------------
<S> <C> <C>
12/31/99 90.6% 88.6%
12/31/98 90.0% 91.4%
12/31/97 87.3% 91.3%
12/31/96 84.7% 91.6%
</TABLE>
/(1)/ Includes mall and freestanding stores.
/(2)/ Includes all Owned GLA.
12 of 38
<PAGE>
SIMON PROPERTY GROUP
Rent Information
As of December 31, 1999
- -----------------
Average Base Rent
- -----------------
<TABLE>
<CAPTION>
Mall & Freestanding % Community %
As of Stores at Regional Malls Change Shopping Centers Change
----- ------------------------ ------- ---------------- -------
<S> <C> <C> <C> <C>
12/31/99 $27.33 6.3% $8.36 8.9%
12/31/98 25.70 8.7 7.68 3.2
12/31/97 23.65 14.4 7.44 -2.7
12/31/96 20.68 7.8 7.65 4.9
12/31/95/(1)/ 19.18 4.4 7.29 2.4
</TABLE>
- ------------
Rental Rates
- ------------
<TABLE>
<CAPTION>
Base Rent /(2)/
---------------
Store Openings Store Closings Amount of Change
-----------------
Year During Period During Period Dollar Percentage
- ---- ------------- ------------- ------ ----------
<S> <C> <C> <C> <C>
Regional Malls:
- ---------------
1999 $31.25 $24.55 $ 6.70 27.3%
1998 27.33 23.63 3.70 15.7
1997 29.66 21.26 8.40 39.5
1996 23.59 18.73 4.86 25.9
Community Shopping Centers:
- ---------------------------
1999 $10.26 $ 7.44 $ 2.82 37.9%
1998 10.43 10.95 (0.52) (4.7)
1997 8.63 9.44 (0.81) (8.6)
1996 8.18 6.16 2.02 32.8
</TABLE>
(1) On a pro forma combined basis giving effect to the merger with DRC for
periods presented.
(2) Represents the average base rent in effect during the period for those
tenants who signed leases as compared to the average base rent in effect
during the period for those tenants whose leases terminated or expired.
13 of 38
<PAGE>
SIMON PROPERTY GROUP
Lease Expirations/(1)/
As of December 31, 1999
<TABLE>
<CAPTION>
Number of Square Avg. Base Rent
Year Leases Expiring Feet per Square Foot
at 12/31/99
- -----------------------------------------------------------------
Regional Malls - Mall & Freestanding Stores
- -----------------------------------------------------------------
<S> <C> <C> <C>
2000 1,712 2,990,777 27.37
2001 1,635 3,534,249 26.38
2002 1,630 3,486,631 28.06
2003 1,870 4,430,656 28.86
2004 1,724 4,742,160 28.61
2005 1,537 4,980,410 26.96
2006 1,486 4,148,487 29.78
2007 1,402 4,136,960 30.96
2008 1,296 4,514,277 29.47
2009 1,388 4,574,924 27.91
------------------ -------------------
TOTALS 15,680 41,539,531 $28.51
- -------------------------------------------
Regional Malls - Anchor Tenants
- -------------------------------------------
2000 10 1,300,991 2.18
2001 12 1,515,532 1.95
2002 17 2,111,747 1.96
2003 19 2,353,899 2.38
2004 23 2,316,233 3.35
2005 16 2,093,532 2.43
2006 15 1,883,778 3.30
2007 7 816,448 1.82
2008 13 1,350,173 4.90
2009 17 1,999,841 2.91
------------------ -----------------
TOTALS 149 17,742,174 $2.74
- ---------------------------------------------------------------------
Community Centers - Mall Stores & Freestanding Stores
- ---------------------------------------------------------------------
2000 207 462,167 12.13
2001 201 566,009 12.09
2002 174 571,557 11.47
2003 149 583,535 11.28
2004 132 526,713 11.86
2005 85 436,671 10.70
2006 24 273,749 7.67
2007 19 167,142 11.19
2008 18 131,323 12.20
2009 16 93,879 15.97
------------------ -----------------
TOTALS 1,025 3,812,745 $11.42
</TABLE>
(1) Does not consider the impact of options that may be contained in leases.
14 of 38
<PAGE>
SIMON PROPERTY GROUP
Lease Expirations/(1)/
As of December 31, 1999
<TABLE>
<CAPTION>
Number of Square Avg. Base Rent
Year Leases Expiring Feet per Square Foot
at 12/31/99
- ---------------------------------------------
Community Centers - Anchor Tenants
- ---------------------------------------------
<S> <C> <C> <C>
2000 6 239,945 5.57
2001 13 537,403 4.02
2002 9 334,458 5.74
2003 13 567,872 4.96
2004 15 562,288 4.34
2005 13 632,062 5.95
2006 9 511,812 5.62
2007 11 466,173 6.24
2008 10 399,235 7.91
2009 16 703,913 6.65
---------- ---------------
TOTALS 115 4,955,161 $5.67
</TABLE>
(1) Does not consider the impact of options that may be contained in leases.
15 of 38
<PAGE>
SIMON PROPERTY GROUP
SPG's Share of Total Debt Amortization and Maturities by Year
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
----------------- ----------------- ------------------- ------------------
SPG's Share of SPG's Share of SPG's Share of
Secured Unsecured Unconsolidated SPG's Share of
Consolidated Consolidated Joint Venture Total
- -------------------------------
Year Debt Debt Secured Debt Debt
- ------------------------------- ----------------- ----------------- ------------------- ------------------
<S> <C> <C> <C> <C>
2000...................... 0 200,484 (1) 950,000 (2) 220,221 1,370,705
2001...................... 1 238,378 0 111,407 349,785
2002...................... 2 378,003 1,185,000 (3) 86,349 1,649,352
2003...................... 3 539,056 575,000 347,067 1,461,123
2004...................... 4 308,858 700,000 177,031 1,185,889
2005...................... 5 110,226 660,000 132,131 902,356
2006...................... 6 132,603 250,000 255,562 638,165
2007...................... 7 495,129 180,000 111,842 786,971
2008...................... 8 83,761 200,000 294,200 577,961
2009...................... 9 330,385 450,000 39,324 819,709
Thereafter 109,397 525,000 100,000 734,397
----------------- ----------------- ------------------- ------------------
Subtotal Face Amounts $ 2,926,281 $ 5,675,000 $ 1,875,134 $ 10,476,415
----------------- ----------------- ------------------- ------------------
Premiums and Discounts on
Indebtedness, net 1,301 5,852 11,226 18,379
----------------- ----------------- ------------------- ------------------
SPG's Share of Total Indebtedness $ 2,927,582 $ 5,680,852 $ 1,886,360 $ 10,494,794
================= ================= =================== ==================
</TABLE>
(1) $50,000 of this debt was refinanced on 01/11/00.
(2) Consists of two tranches of $450,000 and $500,000 due 03/24/00 and
09/24/00, respectively. Simon Group has received commitments in excess of
$450,000 to refinance the first tranche for one year.
(3) Includes Credit Facility outstanding of $785,000 which Simon Group has the
option to extend maturity one year to 08/25/03.
16 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------
SPG's
-------------- -------------- -------------------
Total Share of Weighted Avg. Weighted Avg. Years
Indebtedness Indebtedness Interest Rate to Maturity
-------------- --------------- -------------- -------------------
<S> <C> <C> <C> <C>
Consolidated Indebtedness
- -------------------------
Mortgage Debt
Fixed Rate (1) 2,664,407 2,515,473 7.17% 6.3
Other Hedged Debt 50,000 50,000 6.37% 0.1
Floating Rate Debt 372,780 360,807 7.12% 3.5
----------- ----------- ---------- ----------
Total Mortgage Debt 3,087,187 2,926,281 7.15% 5.8
Unsecured Debt
Fixed Rate 3,790,000 3,790,000 7.17% 7.1
Other Hedged Debt 63,000 63,000 6.60% 2.2
Floating Rate Debt 87,000 87,000 6.62% 2.2
----------- ----------- ---------- ----------
Subtotal 3,940,000 3,940,000 7.15% 6.9
Acquisition Facility 950,000 950,000 6.47% 0.5
Revolving Corporate Credit Facility 645,000 645,000 6.47% 2.7
Revolving Corporate Credit Facility (Hedged) 140,000 140,000 6.47% 2.7
----------- ----------- ---------- ----------
Total Unsecured Debt 5,675,000 5,675,000 6.94% 5.3
Adjustment to Fair Market Value - Fixed Rate 5,618 6,716 N/A N/A
Adjustment to Fair Market Value - Variable Rate 1,146 438 N/A N/A
----------- ----------- ---------- ----------
8,768,951 8,608,434 7.01% 5.4
=========== ============ ========== ----------
Joint Venture Mortgage Indebtedness
- -----------------------------------
Fixed Rate 3,125,708 1,377,469 7.66% 6.1
Other Hedged Debt 706,716 225,628 6.60% 3.4
Floating Rate Debt 666,750 272,037 7.14% 2.3
----------- ----------- ---------- ----------
Subtotal 4,499,174 1,875,133 7.45% 5.2
Adjustment to Fair Market Value - Fixed Rate 22,521 11,226 N/A N/A
----------- ----------- ---------- ----------
Joint Venture Mortgages and Other Indebtedness 4,521,695 1,886,360 7.45% 5.2
=========== =========== ========== ==========
----------- ---------- ----------
SPG's Share of Total Indebtedness 10,494,794 7.08% 5.4
----------- --------- ----------
</TABLE>
(1) Includes $185,000 of variable rate debt, of which $148,969 is SPG's
share, that is effectively fixed to maturity through the use of interest
rate hedges.
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
------------ -------------
- --------------------------------------- -------- -------- ------------ SPG's Weighted Avg
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
- --------------------------------------- -------- -------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Consolidated Indebtedness
Fixed Rate Mortgage Debt:
- -------------------------
Florida Mall, The 2/28/00 6.65% 90,000 90,000
Windsor Park Mall - 1 6/1/00 8.00% 5,694 5,694
Trolley Square - 1 7/23/00 5.81% 19,000 17,100
Other 4/1/00 9.75% 22 22
------- -------
Subtotal 2000 114,716 112,816 6.59%
Biltmore Square 1/1/01 7.15% 25,765 17,185
Chesapeake Square 1/1/01 7.28% 46,739 35,054
Port Charlotte Town Center - 1 1/1/01 7.28% 52,099 41,679
Great Lakes Mall - 1 3/1/01 6.74% 52,632 52,632
Great Lakes Mall - 2 3/1/01 7.07% 8,489 8,489
Orland Square 9/1/01 7.74% 50,000 50,000
Other 11/30/01 8.50% 111 111
------- -------
Subtotal 2001 235,835 205,151 7.23%
Lima Mall 3/1/02 7.12% 18,903 18,903
Columbia Center 3/15/02 7.62% 42,326 42,326
Northgate Shopping Center 3/15/02 7.62% 79,035 79,035
Tacoma Mall 3/15/02 7.62% 92,474 92,474
River Oaks Center 6/1/02 8.67% 32,500 32,500
North Riverside Park Plaza - 1 9/1/02 9.38% 3,769 3,769
North Riverside Park Plaza - 2 9/1/02 10.00% 3,617 3,617
Palm Beach Mall 12/15/02 7.50% 49,419 49,419
Other 5/31/02 6.80% 625 625
Other 12/1/02 8.00% 868 868
------- -------
Subtotal 2002 323,536 323,536 7.72%
Principal Mutual Mortgages - Pool 1 (1) 3/15/03 6.81% 103,334 103,334
Principal Mutual Mortgages - Pool 2 (2) 3/15/03 6.77% 137,682 137,682
Century III Mall -1 7/1/03 6.78% 66,000 66,000
Miami International Mall 12/21/03 6.91% 45,920 27,552
------- -------
Subtotal 2003 352,936 334,568 6.79%
Battlefield Mall - 1 1/1/04 7.50% 47,610 47,610
Battlefield Mall - 2 1/1/04 6.81% 44,567 44,567
Forum Phase I - Class A-2 5/15/04 6.19% 44,386 26,632
Forum Phase II - Class A-2 5/15/04 6.19% 40,614 22,338
Forum Phase I - Class A-1 5/15/04 7.13% 46,996 28,198
Forum Phase II - Class A-1 5/15/04 7.13% 43,004 23,652
------- -------
Subtotal 2004 267,177 192,996 6.91%
Tippecanoe Mall - 1 (3) 1/1/05 8.45% 45,485 45,485
Tippecanoe Mall - 2 (3) 1/1/05 6.81% 15,845 15,845
Melbourne Square 2/1/05 7.42% 38,869 38,869
Cielo Vista Mall - 2 11/1/05 8.13% 1,731 1,731
------- -------
Subtotal 2005 101,930 101,930 7.80%
</TABLE>
18 0f 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- ----------------
------------------------------ --------------- ------------- ------------------ SPG's Weighted Avg
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
------------------------------ --------------- ------------- ------------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Treasure Coast Square - 1 1/1/06 7.42% 52,427 52,427
Treasure Coast Square - 2 1/1/06 8.06% 11,992 11,992
Gulf View Square 10/1/06 8.25% 37,064 37,064
Paddock Mall 10/1/06 8.25% 29,478 29,478
-------- --------
Subtotal 2006 130,961 130,961 7.90%
Lakeline Mall 5/1/07 7.65% 72,180 72,180
Cielo Vista Mall - 1 (4) 5/1/07 9.38% 54,502 54,502
Cielo Vista Mall - 3 (4) 5/1/07 6.76% 38,584 38,584
McCain Mall - 1 (4) 5/1/07 9.38% 25,450 25,450
McCain Mall - 2 (4) 5/1/07 6.76% 17,809 17,809
Valle Vista Mall - 1 (4) 5/1/07 9.38% 33,707 33,707
Valle Vista Mall - 2 (4) 5/1/07 6.81% 7,916 7,916
University Park Mall 10/1/07 7.43% 59,500 35,700
CMBS Loan - Variable Component (5) 12/15/07 6.16% 50,000 50,000
CMBS Loan - Fixed Component 12/15/07 7.31% 175,000 175,000
--------- ----------
Subtotal 2007 534,648 510,848 7.64%
Randall Park Mall - 1 7/11/08 7.33% 35,000 35,000
Randall Park Mall - 2 7/11/08 7.33% 5,000 5,000
Arsenal Mall - 1 9/28/08 6.57% 34,603 34,603
--------- ---------
Subtotal 2008 74,603 74,603 6.98%
College Mall - 1 (3) 1/1/09 7.00% 41,598 41,598
College Mall - 2 (3) 1/1/09 6.76% 11,883 11,883
Greenwood Park Mall - 1 (3) 1/1/09 7.00% 34,839 34,839
Greenwood Park Mall - 2 (3) 1/1/09 6.76% 61,397 61,397
Towne East Square - 1 (3) 1/1/09 7.00% 54,998 54,998
Towne East Square - 2 (3) 1/1/09 6.81% 24,758 24,758
Bloomingdale Court 10/1/09 7.78% 29,879 29,879
Forest Plaza 10/1/09 7.78% 16,388 16,388
Lake View Plaza 10/1/09 7.78% 21,785 21,785
Lakeline Plaza 10/1/09 7.78% 23,883 23,883
Lincoln Crossing 10/1/09 7.78% 3,298 3,298
Matteson Plaza 10/1/09 7.78% 9,593 9,593
Muncie Plaza 10/1/09 7.78% 8,294 8,294
Regency Plaza 10/1/09 7.78% 4,497 4,497
St. Charles Towne Plaza 10/1/09 7.78% 28,780 28,780
West Ridge Plaza 10/1/09 7.78% 5,796 5,796
White Oaks Plaza 10/1/09 7.78% 17,688 17,688
--------- ---------
Subtotal 2009 399,354 399,354 7.28%
Windsor Park Mall - 2 5/1/12 8.00% 8,748 8,748
---------- --------
Subtotal 2012 8,748 8,748 8.00%
Chesapeake Center 5/15/15 8.44% 6,563 6,563
Grove at Lakeland Square, The 5/15/15 8.44% 3,750 3,750
Terrace at Florida Mall, The 5/15/15 8.44% 4,688 4,688
--------- ---------
Subtotal 2015 15,001 15,001 8.44%
</TABLE>
19 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- ----------------
------------------------------ --------------- ------------- ------------------ SPG's Weighted Avg
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
------------------------------ --------------- ------------- ------------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Arsenal Mall - 2 5/15/16 8.20% 2,268 2,268
-------- -------
Subtotal 2016 2,268 2,268 8.20%
Sunland Park Mall 1/1/26 8.63% 39,125 39,125
-------- --------
Subtotal 2026 39,125 39,125 8.63%
Keystone at the Crossing 7/1/27 7.85% 63,569 63,569
-------- --------
Subtotal 2027 63,569 63,569 7.85%
-------- -------- --------
Total Consolidated Fixed Rate Mortgage Debt 2,664,407 2,515,473 7.17%
========= ========== ========
Variable Rate Mortgage Debt:
Jefferson Valley Mall 1/12/00 6.37% 50,000 50,000
White Oaks Mall 3/1/00 7.41% 16,500 9,062
Trolley Square 7/23/00 7.32% 8,141 7,327
---------- ---------
Subtotal 2000 74,641 66,389 6.62%
Crystal River 1/1/01 8.82% 15,292 15,292
---------- ---------
Subtotal 2001 15,292 15,292 8.82%
Highland Lakes Center 3/1/02 7.32% 14,377 14,377
Eastgate Consumer Mall (6) 3/29/02 6.82% 22,929 22,929
Mainland Crossing 3/31/02 7.32% 1,603 1,282
---------- ---------
Subtotal 2002 38,909 38,588 7.03%
Richmond Towne Square (6) 7/15/03 6.82% 45,898 45,898
Shops @ Mission Viejo (6) 9/14/03 6.87% 110,068 110,068
Arboretum (6) 11/30/03 7.32% 34,000 30,600
---------- ---------
Subtotal 2003 189,966 186,566 6.93%
North East Mall (6) 5/21/04 7.20% 73,636 73,636
Waterford Lakes (6) 8/16/04 7.22% 30,336 30,336
---------- ---------
Subtotal 2004 103,972 103,972 7.20%
---------- --------- --------
Total Variable Rate Mortgage Debt 422,780 410,807 7.03%
========== ========= ========
--------- --------
Total Consolidated Mortgage Debt 2,926,281 7.15%
========= ========
</TABLE>
20 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- -----------------
SPG's Weighted Avg
- -------------------------------------------------- ------------ ------------ ----------------
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
- -------------------------------------------------- ------------ ------------ ---------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
Fixed Rate Unsecured Debt:
- --------------------------
Unsecured Notes - CPI 1 3/15/02 9.00% 250,000 250,000
---------------- ----------------
Subtotal 2002 250,000 250,000 9.00%
Unsecured Notes - CPI 2 4/1/03 7.05% 100,000 100,000
SPG, LP (Bonds) 6/15/03 6.63% 375,000 375,000
SPG, LP (PATS) 11/15/03 6.75% 100,000 100,000
---------------- ----------------
Subtotal 2003 575,000 575,000 6.72%
SCA (Bonds) 1/15/04 6.75% 150,000 150,000
SPG, LP (Bonds) 2/9/04 6.75% 300,000 300,000
SPG, LP (Bonds) 7/15/04 6.75% 100,000 100,000
Unsecured Notes - CPI 3 8/15/04 7.75% 150,000 150,000
---------------- ----------------
Subtotal 2004 700,000 700,000 6.96%
SCA (Bonds) 5/15/05 7.63% 110,000 110,000
SPG, LP (Bonds) 6/15/05 6.75% 300,000 300,000
SPG, LP (MTN) 6/24/05 7.13% 100,000 100,000
SPG, LP (Bonds) 10/27/05 6.88% 150,000 150,000
---------------- ----------------
Subtotal 2005 660,000 660,000 6.98%
SPG, LP (Bonds) 11/15/06 6.88% 250,000 250,000
---------------- ----------------
Subtotal 2006 250,000 250,000 6.88%
SPG, LP (MTN) 9/20/07 7.13% 180,000 180,000
---------------- ----------------
Subtotal 2007 180,000 180,000 7.13%
SPG, LP (MOPPRS) 6/15/08 7.00% 200,000 200,000
---------------- ----------------
Subtotal 2008 200,000 200,000 7.00%
SPG, LP (Bonds) 2/9/09 7.13% 300,000 300,000
SPG, LP (Bonds) 7/15/09 7.00% 150,000 150,000
---------------- ----------------
Subtotal 2009 450,000 450,000 7.08%
Unsecured Notes - CPI 4 9/1/13 7.18% 75,000 75,000
---------------- ----------------
Subtotal 2013 75,000 75,000 7.18%
Unsecured Notes - CPI 5 3/15/16 7.88% 250,000 250,000
---------------- ----------------
Subtotal 2016 250,000 250,000 7.88%
SPG, LP (Bonds) 6/15/18 7.38% 200,000 200,000
---------------- ----------------
Subtotal 2018 200,000 200,000 7.38%
---------------- ----------------
Total Unsecured Fixed Rate Debt 3,790,000 3,790,000 7.17%
================ ================
</TABLE>
21 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- -----------------
SPG's Weighted Avg
- -------------------------------------------------- ------------ ------------ ----------------
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
- -------------------------------------------------- ------------ ------------ ---------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
Variable Rate Unsecured Debt:
- -----------------------------
Acquisition Facility - 2 3/24/00 6.47% 450,000 450,000
Acquisition Facility - 3 9/24/00 6.47% 500,000 500,000
---------------- ----------------
Subtotal 2000 950,000 950,000 6.47%
SPG, L.P. Unsecured Loan (7) 2/28/02 6.61% 150,000 150,000
Corporate Revolving Credit Facility (8) 8/25/02 6.47% 785,000 785,000
---------------- ----------------
Subtotal 2002 935,000 935,000 6.49%
---------------- ----------------
Total Unsecured Variable Rate Debt 1,885,000 1,885,000 6.48%
================ ================
----------------
Total Unsecured Debt 5,675,000 6.94%
================
Net Premium on Fixed-Rate Indebtedness 5,618 6,716 N/A
Net Premium on Variable-Rate Indebtedness 1,146 438 N/A
----------------
---------------- -----------------
Total Consolidated Debt 8,608,434 7.01%
---------------- -----------------
Joint Venture Indebtedness
Fixed Rate Mortgage Debt:
- ------------------------
Northfield Square 4/1/00 9.52% 23,753 7,506
Emerald Square Mall 4/1/00 9.16% 157,500 77,392
Coral Square 12/1/00 7.40% 53,300 26,650
---------------- ----------------
Subtotal 2000 234,553 111,548 8.76%
Atrium at Chestnut Hill - 1 4/1/01 7.29% 42,846 21,053
Atrium at Chestnut Hill - 2 4/1/01 8.16% 11,725 5,761
Highland Mall - 2 10/1/01 8.50% 188 94
Highland Mall - 3 11/1/01 9.50% 1,822 911
Square One 12/1/01 8.40% 105,825 52,000
---------------- ----------------
Subtotal 2001 162,406 79,820 8.10%
Crystal Mall 2/1/03 8.66% 49,235 36,714
Avenues, The 5/15/03 8.36% 56,951 14,238
Lakeland Square 12/22/03 7.26% 51,840 25,920
---------------- ----------------
Subtotal 2003 158,026 76,872 8.13%
Solomon Pond 2/1/04 7.83% 96,250 47,295
Northshore Mall 5/14/04 9.05% 161,000 79,111
Indian River Commons 11/1/04 7.58% 8,399 4,200
Indian River Mall 11/1/04 7.58% 46,602 23,301
---------------- ----------------
Subtotal 2004 312,251 153,907 8.41%
</TABLE>
22 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- -----------------
SPG's Weighted Avg
- -------------------------------------------------- ------------ ------------ ----------------
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
- -------------------------------------------------- ------------ ------------ ---------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
Westchester, The - 1 9/1/05 8.74% 150,849 75,425
Westchester, The - 2 9/1/05 7.20% 53,674 26,837
Cobblestone Court 11/30/05 7.22% 6,180 2,163
Crystal Court 11/30/05 7.22% 3,570 1,250
Fairfax Court 11/30/05 7.22% 10,320 2,709
Gaitway Plaza 11/30/05 7.22% 7,350 1,715
Plaza at Buckland Hills, The 11/30/05 7.22% 17,680 6,055
Ridgewood Court 11/30/05 7.22% 7,980 2,793
Royal Eagle Plaza 11/30/05 7.22% 7,920 2,772
Village Park Plaza 11/30/05 7.22% 8,960 3,136
West Town Corners 11/30/05 7.22% 10,330 2,411
Westland Park Plaza 11/30/05 7.22% 4,950 1,155
Willow Knolls Court 11/30/05 7.22% 6,490 2,272
Yards Plaza, The 11/30/05 7.22% 8,270 2,895
---------------- ----------------
Subtotal 2005 304,523 133,587 8.07%
Seminole Towne Center 1/1/06 6.88% 70,500 31,725
CMBS Loan - Fixed Component (IBM) (9) 5/1/06 7.41% 300,000 150,000
Great Northeast Plaza 6/1/06 9.04% 17,519 8,760
Smith Haven Mall 6/1/06 7.86% 115,000 28,750
Mall of Georgia Crossing (6) 6/10/06 7.25% 23,931 11,966
Greendale Mall 11/1/06 8.23% 42,000 20,638
---------------- ----------------
Subtotal 2006 568,950 251,838 7.51%
Town Center at Cobb - 1 4/1/07 7.54% 50,205 25,103
Town Center at Cobb - 2 4/1/07 7.25% 65,471 32,736
Gwinnett Place - 1 4/1/07 7.54% 39,446 19,723
Gwinnett Place - 2 4/1/07 7.25% 85,960 42,980
---------------- ----------------
Subtotal 2007 241,082 120,541 7.36%
Metrocenter 2/28/08 8.45% 30,769 15,385
Aventura Mall - A 4/6/08 6.55% 141,000 47,000
Aventura Mall - B 4/6/08 6.60% 25,400 8,467
Aventura Mall - C 4/6/08 6.89% 33,600 11,200
West Town Mall 5/1/08 6.90% 76,000 38,000
Mall of New Hampshire - 1 10/1/08 6.96% 104,779 51,486
Mall of New Hampshire - 2 10/1/08 8.53% 8,483 4,168
Grapevine Mills - 2 10/1/08 6.47% 155,000 58,125
Ontario Mills - 5 11/2/08 6.75% 143,594 35,899
Source, The - 2 11/6/08 6.65% 124,000 31,000
---------------- ----------------
Subtotal 2008 842,625 300,729 6.82%
Apple Blossom Mall 9/10/09 7.99% 40,926 20,110
Auburn Mall 9/10/09 7.99% 47,913 23,543
Highland Mall - 1 12/1/09 9.75% 7,453 3,727
Ontario Mills - 4 (10) 12/28/09 0.00% 5,000 1,250
---------------- ----------------
Subtotal 2009 101,292 48,630 7.92%
Mall of Georgia 7/1/10 7.09% 200,000 100,000
---------------- ----------------
Subtotal 2010 200,000 100,000 7.09%
---------------- ---------------- ---------------
Total Joint Venture Fixed Rate Mortgage Debt 3,125,708 1,377,469 7.66%
================ ================ ===============
</TABLE>
23 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Indebtedness By Maturity
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
---------------- -----------------
SPG's Weighted Avg
- -------------------------------------------------- ------------ ------------ ----------------
Property Maturity Interest Total Share of Interest Rate
Name Date Rate Indebtedness Indebtedness by Year
- -------------------------------------------------- ------------ ------------ ---------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
Variable Rate Mortgage Debt:
- ----------------------------
Tower Shops, The 3/13/00 7.02% 12,900 6,450
Mall at Rockingham 8/24/00 7.79% 100,000 24,569
Dadeland Mall 12/10/00 6.52% 140,000 70,000
---------------- ----------------
Subtotal 2000 252,900 101,019 6.86%
Liberty Tree Mall - 1 10/1/01 7.32% 47,319 23,251
Liberty Tree Mall - 2 10/1/01 9.98% 8,377 4,116
---------------- ----------------
Subtotal 2001 55,696 27,368 7.72%
Montreal Forum 1/31/02 6.50% 11,011 3,923
Arizona Mills (6) 2/1/02 7.12% 142,216 37,425
Shops at Sunset Place, The (6) 6/30/02 7.07% 102,191 38,322
---------------- ----------------
Subtotal 2002 255,418 79,670 7.07%
Cape Cod Mall (6) 4/1/03 7.62% 59,665 29,318
CMBS Loan - Floating Component (IBM) (9) 5/1/03 6.32% 185,000 92,500
Mall of America 11/19/03 6.69% 312,000 85,800
Concord Mills (6) 12/2/03 7.17% 164,442 61,666
---------------- ----------------
Subtotal 2003 721,107 269,283 6.78%
Circle Centre Mall - 1 (6) 1/31/04 6.26% 60,000 8,802
Circle Centre Mall - 2 (6) 1/31/04 7.32% 7,500 1,100
Orlando Premium Outlets (6) 2/12/04 7.32% 20,845 10,423
---------------- ----------------
Subtotal 2004 88,345 20,325 6.86%
---------------- ---------------- ---------------
Total Joint Venture Variable Rate Debt 1,373,466 497,664 6.90%
================ ================ ===============
CMBS Loan - Fixed Premium 18,564 9,282
Net Premium on NED Fixed-Rate Indebtedness 3,957 1,944
----------------
---------------- ---------------
Total Joint Venture Debt 1,886,360 7.45%
---------------- ---------------
---------------- ---------------
SPG's Share of Total Indebtedness 10,494,794 7.08%
---------------- ---------------
</TABLE>
(1) This Principal Mutual Pool 1 loan is secured by cross-
collateralized and cross-defaulted mortgages encumbering four of
the Properties (Anderson, Forest Village Park, Longview, and South
Park). A weighted average rate is used for these Pool 1 Properties.
Includes applicable extensions available at Simon Group's option.
(2) This Principal Mutual Pool 2 loan is secured by cross-
collateralized and cross-defaulted mortgages encumbering seven of
the Properties (Eastland, Forest Mall, Golden Ring, Hutchinson,
Markland, Midland, and North Towne). A weighted average rate is
used for these Pool 2 Properties. Includes applicable extensions
available at Simon Group's option.
(3) This TIAA Pool is secured by cross-collateralized and cross-
defaulted mortgages encumbering these four Properties.
(4) This TIAA Pool is secured by cross-collateralized and cross-
defaulted mortgages encumbering these three Properties.
(5) Through an interest rate protection agreement, effectively fixed at
an all-in-one rate of 6.16%.
(6) Includes applicable extensions available at Simon Group's option.
(7) Through an interest rate protection agreement, $63M of this $150M
loan is effectively fixed at an all-in-one rate of 6.14%. Loan
maturity includes a one year extension available at Simon Group's
option.
(8) Through an interest rate protection agreement, $140M of this
Corporate Revolving Credit Facility is effectively fixed at an all-
in-one rate of 6.14%.
(9) These Commercial Mortgage Notes are secured by cross-collateralized
mortgages encumbering thirteen of the Properties. A weighted
average rate is used.
(10) Notes for purchase of land from Ontario Redevelopment Agency at 6%
commencing January 2000.
24 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Variable Rate Debt and Interest Rate Protection Agreements
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
------------- -------- ------------- ---------
Principal SPG SPG's Interest
- -------------------------------------------- ---------- --------------
Property Maturity Balance Ownership Share of Rate Terms of
Name Date 12/31/99 % Loan Balance 12/31/99 Variable Rate
- -------------------------------------------- ---------- ------------- -------- ------------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Consolidated Properties:
Variable Rate Debt Effectively Fixed to Maturity:
Orland Square 9/1/01 50,000 100.00% 50,000 7.742% LIBOR + 0.500%
Forum Phase I - Class A-2 5/15/04 44,386 60.00% 26,632 6.190% LIBOR + 0.300%
Forum Phase II - Class A-2 5/15/04 40,614 55.00% 22,338 6.190% LIBOR + 0.300%
CMBS Loan - Variable Component 12/15/07 50,000 100.00% 50,000 6.155% LIBOR + 0.365%
------------- -------------
185,000 148,969
============= =============
Other Hedged Debt:
Jefferson Valley Mall 1/12/00 50,000 100.00% 50,000 6.373% LIBOR + 0.550%
SPG, L.P. Unsecured Loan ($150M Loan - swapped) 2/28/02 63,000 100.00% 63,000 6.623% LIBOR + 0.800%
Unsecured Revolving Credit Facility - (1.25B-capped) 8/25/02 140,000 100.00% 140,000 6.473% LIBOR + 0.650%
------------- -------------
253,000 253,000
============= =============
Floating Rate Debt:
White Oaks Mall 3/1/00 16,500 54.92% 9,062 7.410% LIBOR + 1.300%
CPI Merger Facility - 2 (1.4B) 3/24/00 450,000 100.00% 450,000 6.473% LIBOR + 0.650%
Trolley Square 7/23/00 8,141 90.00% 7,327 6.900% LIBOR + 1.500%
CPI Merger Facility - 3 (1.4B) 9/24/00 500,000 100.00% 500,000 6.473% LIBOR + 0.650%
Crystal River 1/1/01 15,292 100.00% 15,292 8.823% LIBOR + 3.000%
SPG, L.P. Unsecured Loan ($150M Loan) 2/28/02 87,000 100.00% 87,000 6.623% LIBOR + 0.800%
Highland Lakes Center 3/1/02 14,377 100.00% 14,377 7.323% LIBOR + 1.500%
Eastgate Consumer Mall 3/29/02 22,929 100.00% 22,929 6.823% LIBOR + 1.000%
Mainland Crossing 3/31/02 1,603 80.00% 1,282 7.323% LIBOR + 1.500%
Richmond Towne Square 7/15/03 45,898 100.00% 45,898 6.823% LIBOR + 1.000%
Unsecured Revolving Credit Facility - (1.25B) 8/25/02 645,000 100.00% 645,000 6.473% LIBOR + 0.650%
Shops @ Mission Viejo 9/14/03 110,068 100.00% 110,068 6.873% LIBOR + 1.050%
Arboretum 11/30/03 34,000 90.00% 30,600 7.323% LIBOR + 1.500%
North East Mall 5/21/04 73,636 100.00% 73,636 7.198% LIBOR + 1.375%
Waterford Lakes 8/16/04 30,336 100.00% 30,336 7.223% LIBOR + 1.400%
------------- -------------
2,054,780 2,042,807
============= =============
<CAPTION>
- -------------------------------------------- --------------------------------------------------------
Property Terms of
Name Interest Rate Protection Agreement
- -------------------------------------------- --------------------------------------------------------
<S> <C>
Consolidated Properties:
Variable Rate Debt Effectively Fixed to Maturity:
Orland Square LIBOR Swapped at 7.24% through maturity.
Forum Phase I - Class A-2 Through an interest rate protection agreement, effectively fixed
at an all-in-one rate of 6.19%.
Forum Phase II - Class A-2 Through an interest rate protection agreement, effectively fixed
at an all-in-one rate of 6.19%.
CMBS Loan - Variable Component Through an interest rate protection agreement, effectively fixed
at an all-in-one rate of 6.16%.
Other Hedged Debt:
Jefferson Valley Mall LIBOR Capped at 8.70% through maturity.
SPG, L.P. Unsecured Loan ($150M Loan - swapped) Through an interest rate protection agreement, $63M of this $150M loan is
effectively fixed at an all-in-one rate of 6.14%.
Unsecured Revolving Credit Facility - (1.25B - Capped) Subject to an 11.53% LIBOR cap on $90M and a 16.77% LIBOR cap on $50M.
Floating Rate Debt:
White Oaks Mall 90-day LIBOR set on November 30, 1999.
CPI Merger Facility - 2 (1.4B)
Trolley Square
CPI Merger Facility - 3 (1.4B)
Crystal River
SPG, L.P. Unsecured Loan ($150M Loan)
Highland Lakes Center
Eastgate Consumer Mall
Mainland Crossing
Richmond Towne Square
Unsecured Revolving Credit Facility - (1.25B)
Shops @ Mission Viejo
Arboretum
North East Mall
Waterford Lakes
</TABLE>
25 of 38
<PAGE>
SIMON PROPERTY GROUP
Summary of Variable Rate Debt and Interest Rate Protection Agreements
As of December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
------------- -------- ------------- ---------
Principal SPG SPG's Interest
- -------------------------------------------- ---------- --------------
Property Maturity Balance Ownership Share of Rate Terms of
Name Date 12/31/99 % Loan Balance 12/31/99 Variable Rate
- -------------------------------------------- ---------- ------------- -------- ------------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Joint Venture Properties:
- ------------------------
Other Hedged Debt:
Arizona Mills 2/1/02 142,216 26.32% 37,425 7.123% LIBOR + 1.300%
CMBS Loan - Floating Component (IBM) 5/1/03 185,000 50.00% 92,500 6.321% See Footnote(1)
Mall of America 11/19/03 312,000 27.50% 85,800 6.693% LIBOR + .870%
Circle Centre Mall - 1 1/31/04 60,000 14.67% 8,802 6.263% LIBOR + 0.440%
Circle Centre Mall - 2 1/31/04 7,500 14.67% 1,100 7.323% LIBOR + 1.500%
------------- -------------
706,716 225,628
============= =============
Floating Rate Debt:
Tower Shops, The 3/13/00 12,900 50.00% 6,450 7.023% LIBOR + 1.200%
Mall at Rockingham 8/24/00 100,000 24.57% 24,569 7.793% LIBOR + 1.970%
Dadeland Mall 12/10/00 140,000 50.00% 70,000 6.523% LIBOR + 0.700%
Liberty Tree Mall - 1 10/1/01 47,319 49.14% 23,251 7.323% LIBOR + 1.500%
Liberty Tree Mall - 2 10/1/01 8,377 49.14% 4,116 9.983% LIBOR + 4.160%
Montreal Forum 1/31/02 11,011 35.63% 3,923 6.500% Canadian Prime
Shops at Sunset Place, The 6/30/02 102,191 37.50% 38,322 7.073% LIBOR + 1.250%
Cape Cod Mall 4/1/03 59,665 49.14% 29,318 7.623% LIBOR + 1.800%
Concord Mills 12/2/03 164,442 37.50% 61,666 7.173% LIBOR + 1.350%
Orlando Premium Outlets 2/12/04 20,845 50.00% 10,423 7.323% LIBOR + 1.500%
------------- -------------
666,750 272,037
============= =============
<CAPTION>
- -------------------------------------------- --------------------------------------------------------
Property Terms of
Name Interest Rate Protection Agreement
- -------------------------------------------- --------------------------------------------------------
<S> <C>
Joint Venture Properties:
- ------------------------
Other Hedged Debt:
Arizona Mills LIBOR Capped at 9.50% through maturity.
CMBS Loan - Floating Component (IBM) The Operating Partnership took assignment of an interest rate protection
agreement (LIBOR cap of 11.67%) relating to this debt.
Mall of America LIBOR Capped at 8.13% through April 30, 2000.
Circle Centre Mall - 1 LIBOR Capped at 8.81% through maturity.
Circle Centre Mall - 2 LIBOR Capped at 7.75% through maturity.
Floating Rate Debt:
Tower Shops, The
Mall at Rockingham
Dadeland Mall
Liberty Tree Mall - 1
Liberty Tree Mall - 2
Montreal Forum
Shops at Sunset Place, The Rate can be reduced based upon project performance.
Cape Cod Mall
Concord Mills
Orlando Premium Outlets Rate can be reduced based upon project performance.
</TABLE>
Footnote:
(1) Represents the weighted average interest rate.
26 of 38
<PAGE>
SIMON PROPERTY GROUP
New Development Activities
As of December 31, 1999
<TABLE>
<CAPTION>
Simon Non-Anchor
Group's Actual/ Projected Sq. Footage
Mall/ Ownership Projected Cost Leased/ GLA
Location Percentage Opening (in millions) Committed/(1)/ (sq. ft.)
- ------------------------------------ -------------- --------------- --------------- ----------------- ------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Projects Recently Opened
- ---------------------------------------
The Mall of Georgia 50% 8/99 $245 83% 1,600,000
Buford, Georgia
(Atlanta)
Anchors/Major Tenants: Nordstrom (3/00), Rich's (11/00), Dillard's, Lord & Taylor, JCPenney, Galyan's,
Bed Bath & Beyond, Haverty's, Regal 20 Cinemas, IMAX, FAO Schwarz (8/00)
- ------------------------------------ ------------------------------------------------------------------------------------
The Shops at North East Mall 100% 11/99 $42 97% 366,000
Hurst, TX
Anchors/Major Tenants: Michaels, OfficeMax, PetsMart, TJMaxx, Bed Bath & Beyond, Nordstrom
Rack (5/00); anchor tenants opening summer 2000: Noodle Kidoodle,
Ulta Cosmetics, Old Navy, Best Buy and Mikasa
- ------------------------------------ ------------------------------------------------------------------------------------
Waterford Lakes Town Center Phase I opened 11/99 - 385,000 sq. ft. See below.
Orlando, FL Phase II to open 11/00 - 575,000 sq. ft.
- ---------------------------------------
Projects Under Construction
- ---------------------------------------
Waterford Lakes Town Center 100% 11/99 and $84 86% 960,000
Orlando, FL 11/00 (Phase I)
Anchors/Major Tenants: Super Target, TJMaxx, Ross Dress for Less, Bed Bath & Beyond, Barnes &
Noble; anchor tenants opening summer 2000: Old Navy, Regal 20-Plex Theatre,
Zany Brainy and Dress Barn; Phase II anchors include OfficeMax, PetsMart
and Best Buy
- ------------------------------------ ------------------------------------------------------------------------------------
Orlando Premium Outlets 50% Mid 2000 $91 78% 430,000
Orlando, FL
Anchors/Major Tenants: Versace Company Store, Bottega Veneta, Timberland, Nike Factory Store,
Liz Claiborne Shoes, Mikasa
- ------------------------------------ ------------------------------------------------------------------------------------
Arundel Mills 37.5% Fall 2000 $252 (2) 1,350,000
Anne Arundel, MD
Anchors/Major Tenants: Jillian's, Bed Bath & Beyond, Sun & Ski Sports, Iguana Amerimex, Muvico,
Books-A-Million, Black Lion, Off 5th-Saks Fifth Avenue
</TABLE>
(1) Community Center leased/committed percentage includes owned anchor GLA.
(2) Leasing still in preliminary stage.
27 of 38
<PAGE>
SIMON PROPERTY GROUP
Significant Renovation/Expansion Activities
As of December 31, 1999
<TABLE>
<CAPTION>
GLA New or
SPG Actual/ Projected Before Incremental
Mall/ Ownership Projected Cost Renov/Expan GLA
Location Percentage Opening (in millions) (sq. ft.) (sq. ft.)
- ------------------------------------ ---------------- -------------- --------------- ---------------- ---------------
- ------------------------------------
Projects Recently Opened
- ------------------------------------
<S> <C> <C> <C> <C> <C>
Florida Mall 50% 11/99 $83* 1,120,000* 608,000*
Orlando, FL *excludes Nordstrom
Project Description: Dillard's and JCPenney expansions, food court renovation (completed 1998);
new Burdines, small shop expansion and mall renovation; new Nordstrom
and additional small shops (spring 2002)
- ------------------------------------ -----------------------------------------------------------------------------------------
Richmond Town Square 100% 12/99 $60 873,000 10,000
Cleveland, OH & 8/00
Project Description: New Kaufmann's, JCPenney remodel and mall renovation (opened 11/98); Sears
remodel and new food court; new Sony Cinema (12/99); new Barnes &
Noble (8/00)
- ------------------------------------
Projects Under Construction
- ------------------------------------
LaPlaza Mall 100% 11/99, 3/00 $35 988,000 215,000
McAllen, TX & 11/00
Project Description: Mall renovation; new Dillard's (3/00); JCPenney expansion and new small
shops retrofitted from the existing Dillard's store (11/00)
- ------------------------------------ ----------------------------------------------------------------------------------------
North East Mall 100% 9/99, 9/00 $103 1,141,000 308,000
Hurst, TX & 3/01
Project Description: New Dillard's, mall expansion and parking deck (9/99); Montgomery Ward remodel (10/99);
JCPenney remodel and expansion and parking deck (11/99); new Saks Fifth Avenue, mall
renovation and parking deck (9/00); new Nordstrom (3/01)
- ------------------------------------ -----------------------------------------------------------------------------------------
Palm Beach Mall 100% 2/00 $33 1,205,000 61,000
West Palm Beach, FL & fall 2000
Project Description: JCPenney remodel (11/99); mall renovation and new Dillard's (2/00); new
Borders, Old Navy, Designer Shoe Warehouse and Burdines remodel
- ------------------------------------ -----------------------------------------------------------------------------------------
Town Center at Boca Raton 100% 10/99 $67 1,327,000 228,000
Boca Raton, FL & 11/00
Project Description: New, expanded and relocated Saks Fifth Avenue and new parking structure (10/99);
Bloomingdale's expansion (11/99); new Nordstrom, Lord & Taylor expansion, mall expansion
and renovation, food court renovation and new parking structure (11/00)
</TABLE>
28 of 38
<PAGE>
SIMON PROPERTY GROUP
Capital Expenditures
For the Twelve Months Ended December 31, 1999
(In millions)
<TABLE>
<CAPTION>
Joint Venture Properties
------------------------
Simon
Consolidated Group's
Properties Total Share
---------- ----- -----
<S> <C> <C> <C>
New Developments $226.4 $396.1 $172.8
Renovations and Expansions 248.3 64.0 28.6
Tenant Allowances-Retail 64.0 17.9 8.0
Tenant Allowances-Office .6 - -
Capital Expenditures
Recoverable from Tenants 27.3 15.8 6.8
Other /(1)/ - - -
------ ------ ------
Totals $566.6 $493.8 $216.2
====== ====== ======
</TABLE>
(1) Primarily represents capital expenditures not recovered from tenants.
29 of 38
<PAGE>
EXHIBIT 99.2
[LOGO OF SIMON PROPERTY GROUP]
CONTACTS:
Shelly Doran 317.685.7330 Investors
Billie Scott 317.263.7148 Media
FOR IMMEDIATE RELEASE
SIMON PROPERTY GROUP ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS
Indianapolis, Indiana - February 16, 2000...Simon Property Group, Inc. (the
"Company") (NYSE:SPG) today announced results for the quarter and year ended
December 31, 1999. The Company's share of diluted funds from operations for the
quarter increased 12.9%, to $174.1 million as compared to $154.2 million in
1998. The increase on a per share, diluted basis was 13.4%, to $0.93 per share
in 1999 from $0.82 per share in 1998. Total revenue for the quarter increased
10.3%, to $521.4 million as compared to $472.6 million in 1998.
The Company's share of diluted funds from operations for the year increased
53.1%, to $574.0 million as compared to $375.0 million in 1998. The increase on
a per share, diluted basis was 8.1%, to $3.06 per share in 1999 from $2.83 per
share in 1998. Total revenue for the year increased 34.7%, to $1,892.7 million
as compared to $1,405.6 million in 1998.
In July of 1999, the Company changed its method of computing diluted funds from
operations per share to comply with new provisions of the National Association
of Real Estate Investment Trusts' guidelines for reporting funds from
operations. This change resulted in the inclusion of certain of the Company's
convertible preferred instruments in the calculation of diluted funds from
operations per share. Diluted funds from operations per share have been restated
to reflect this change retroactively, reducing 1998 diluted funds from
operations for the fourth quarter and year by $0.03 and $0.02 per share,
respectively.
Beginning May 22, 1998, the Company adopted EITF 98-9, "Accounting for
Contingent Rent," which impacted the timing of recognition of contingent rent,
reducing revenues and funds from operations for the period May 22, 1998, to
September 30, 1998, by approximately $5.6 million. The EITF was reversed during
the fourth quarter of 1998, resulting in incremental funds from operations in
the fourth quarter of 1998 of $0.02 per share. After adjusting the 1998 fourth
quarter's diluted funds from operations for this item, the Company's growth rate
for the fourth quarter of 1999 was 16.3%.
Occupancy for mall and freestanding stores in the regional malls at December 31,
1999 increased to 90.6%, as compared to 90.0% at December 31, 1998. Comparable
retail sales per square foot increased 9%, to $377 while total retail sales per
square foot increased 7% to $367. Average base rents for mall and freestanding
stores in the regional mall portfolio were $27.33 per square foot at December
31, 1999, an increase of $1.63, or 6%, from $25.70 at December 31, 1998. The
average initial base rent for new mall store leases signed during 1999 was
$31.25, an increase of $6.70, or 27% over the tenants who closed or whose leases
expired.
30 of 38
<PAGE>
"1999 was a successful year for SPG on many levels," said David Simon, chief
executive officer. "We continued to improve portfolio productivity, opened six
exciting new retail projects, completed selective, strategic acquisitions, and
cemented new strategic relationships with some of the most-recognized companies
in the world. The strong operating performance of our portfolio demonstrates the
mall's prominent position in the retail environment."
Acquisition and Disposition Activities
- --------------------------------------
In 1999, the Company invested approximately $1.1 billion in the acquisition of
the following assets:
. In October, the Company acquired 50% of the economic ownership interest in
Mall of America, a super-regional mall comprising 2.8 million square feet
of gross leasable area in the Minneapolis suburb of Bloomington, Minnesota.
Mall of America is one of the most recognized retail projects in the United
States.
. During the fourth quarter of 1999, the Company completed the final phases
of a regional mall portfolio acquisition from New England Development
Company. A limited liability company comprised of SPG, JPMorgan Investment
Management's Strategic Property Fund, New York State Teachers Retirement
System and Teachers Insurance and Annuity Association acquired the
portfolio. SPG owns 49% of the venture.
During 1999 and early 2000, the Company sold five properties, generating gross
proceeds of approximately $104 million. The Company today announced that its
Board of Directors has approved a plan to make opportunistic repurchases of the
Company's stock during the calendar year 2000 funded solely by a portion of the
proceeds realized from asset sales.
Simon Brand Ventures
- --------------------
During 1999 the Company announced a number of strategic alliances and
partnerships:
. Time Inc. Custom Publishing, a division of Time Inc.--For the publication
of S, the first national lifestyle magazine targeted to mall shoppers with
circulation of approximately 2.2 million copies per month.
. AT&T--As the exclusive long distance provider for the MALLPeRKS program.
. Enron Energy Services--A $1.5 billion, 10-year alliance for Enron to supply
or manage the energy commodity requirements throughout the Simon portfolio.
. Turner Broadcasting/Time Warner--An alliance to create the Simon Live Media
Network that will integrate the Internet and multi-channel technology to
deliver Simon shoppers a value-added, entertainment-oriented shopping
experience.
. Ford Motor Company--An in-mall promotion to showcase the newly introduced
2000 Ford Taurus.
. Microsoft Corp.--An alliance offering Simon mall gift certificates with the
purchase of the MSN(TM) Internet Access online service.
31 of 38
<PAGE>
New Development Activities
- --------------------------
The Company continues to selectively develop projects in multiple retail
formats. 1999 was an active period of development with the investment of
approximately $400 million in new development projects and the opening of six
new properties:
. The Shops at Sunset Place in South Miami, Florida - a 510,000 square foot
specialty center blending retail and entertainment. Anchors/major tenants:
AMC 24 Theatre, NIKETOWN, Barnes & Noble, IMAX Theatre, Virgin Megastore,
GameWorks, Z Gallerie, Old Navy, Urban Outfitters, and FAO Schwarz.
. The Mall of Georgia in suburban Atlanta - a 1.6 million square foot
regional mall. The project includes a 140,000 square foot pedestrian-
oriented outdoor streetscape, featuring lifestyle tenants and restaurants.
Anchors: Dillard's, Lord & Taylor, JCPenney, IMAX, Regal 20 Cinemas,
Nordstrom (opening 3/2000) and Rich's (opening 11/2000).
. The Mall of Georgia Crossing located adjacent to The Mall of Georgia - a
441,000 square foot power center. Anchors: Target, Best Buy, Staples,
TJMaxx & More and Nordstrom Rack (opening 4/2000).
. Concord Mills in Concord (Charlotte), North Carolina - a 1.4 million square
foot value-oriented super-regional mall developed with The Mills
Corporation and Kan Am. Anchors/major tenants: Books-A-Million, Bed Bath &
Beyond, TJMaxx, Burlington Coat Factory, Bass Pro Outdoor World, AMC
Theatres, Jillian's, Alabama Grill, Group USA, Sun & Ski, and For Your
Entertainment.
. The Shops at North East Mall in Hurst (Ft. Worth), Texas - a 366,000 square
foot power center located adjacent to SPG's North East Mall. Anchors:
Michaels, OfficeMax, PetsMart, TJMaxx, and Bed Bath & Beyond plus Nordstrom
Rack, Noodle Kidoodle, Ulta Cosmetics, Best Buy and Old Navy opening mid
2000.
. Waterford Lakes Town Center in Orlando - a 960,000 square foot town center
concept blending retail, recreation, entertainment, restaurant and
specialty users. Phase I opened in November 1999; Phase II to open in
November 2000. Phase I Anchors: Super Target, TJMaxx, Ross Dress for Less,
Bed Bath & Beyond, and Barnes & Noble plus Old Navy and Regal 20-Plex
Theatre (opening summer of 2000).
Construction continues on two projects scheduled for 2000 openings:
. Orlando Premium Outlets is a 430,000 square foot upscale outlet center
being jointly developed by Simon and Chelsea GCA Realty. The center is
located on Interstate 4 midway between Walt Disney World and Sea World in
Orlando, Florida. Major tenants: Versace Company Store, Bottega Veneta,
Timberland, Nike Factory Store, Liz Claiborne Shoes, and Mikasa. Simon's
ownership percentage: 50%. Scheduled completion: mid 2000.
. Arundel Mills is a 1.4 million square foot value-oriented super-regional
mall in Anne Arundel County, Maryland, in the middle of the highly
trafficked Baltimore/Washington, D.C. corridor. This project is the fifth
Simon joint venture with The Mills Corporation. Anchors/major tenants:
Jillian's, Bed Bath & Beyond, Sun & Ski Sports, Iguana Amerimex, Muvico,
Books-A-Million, Black Lion, and Off Fifth-Saks Fifth Avenue. Simon's
ownership percentage: 37.5%. Scheduled completion: fall of 2000.
32 of 38
<PAGE>
Redevelopment Activities
- ------------------------
The Company continues to focus on revenue enhancement opportunities through the
redevelopment of assets. SPG invested approximately $280 million in the
redevelopment of existing assets in 1999. The more significant projects
completed in 1999 were:
. The Shops at Mission Viejo in Mission Viejo, California - Addition of
Nordstrom and Saks Fifth Avenue, small shop expansion, new parking
structure and mall renovation. Robinson-May (spring 2000) and Macy's (2001)
are also expanding and renovating, and a new food court will open in the
fall of 2000.
. Florida Mall in Orlando - Complete interior and exterior refurbishment plus
the addition of an entire expansion wing and a new Burdines. Nordstrom will
also open at Florida Mall in spring 2002, along with additional small
shops.
Major redevelopment projects scheduled for 2000 completion are:
. LaPlaza Mall in McAllen, Texas - Addition of Dillard's (March 2000) and
expansion of JCPenney and small shops (November 2000).
. North East Mall in Hurst, Texas - Saks Fifth Avenue and Nordstrom are
scheduled to open in September 2000 and March 2001, respectively. Mall
renovation is to be completed in conjunction with Saks' opening. New,
expanded and relocated Dillard's and small shop expansion opened in
September of 1999.
. Palm Beach Mall in West Palm Beach, Florida - Addition of Dillard's, Old
Navy and Borders.
. Town Center at Boca Raton in Boca Raton, Florida - Addition of Nordstrom,
Lord & Taylor expansion, mall expansion and renovation, and new parking
structure (November 2000). New, expanded and relocated Saks Fifth Avenue,
new parking structure and expansion of Bloomingdale's opened during the
fourth quarter of 1999.
Internet Initiative
- -------------------
On November 4/th/, the Company announced a comprehensive, multi-tiered digital
strategy. Designed to exploit new retail opportunities in the digital age, the
strategy enhances Simon's retail properties for today's digital consumer.
. The first tier of the strategy digitizes existing retail assets and extends
recognition of Simon properties and products into the digital channel by
offering Simon.com and individual Simon mall web sites.
. The second tier is clixnmortar.com, a venture creation firm that incubates,
develops and launches products that bring together physical and online
retail by leveraging and propelling commerce, consumers and community
through continuous online-offline lifestyle and personal information
management offerings. clixnmortar.com takes advantage of the online
opportunities created by the Company's physical mall space, its 2.3 billion
shopper visits annually, and its relationships with key retailers.
33 of 38
<PAGE>
Another component of SPG's digital strategy generates new opportunities and
revenue streams by creating products that leverage the digitalization of
consumers and Simon merchants. Simon has teamed with industry-leading providers
to create TenantConnect.net, an enhanced broadband network. TenantConnect.net
provides the conduit in which retailers can tie their physical and virtual
capabilities, enhancing the shopping experience.
During the fourth quarter of 1999, the Company conducted beta testing for
TenantConnect.net and two products created by clixnmortar.com: FastFrog.com and
YourSherpa.com. FastFrog is a teen "wish list" registry that utilizes personal
digital assistants. YourSherpa is a shopping assistant program that also uses a
personal digital assistant. YourSherpa allows customers to shop at their own
leisure, buy quickly, avoid waiting in lines, and it reduces the burden of
carrying, transporting, wrapping and personalizing packages.
Capital Markets Activities
- --------------------------
During August of 1999, SPG completed a three-year extension of its existing
$1.25 billion unsecured corporate credit facility. The facility now matures in
August 2002 and contains a one-year extension, at the Company's sole option. The
Company succeeded in obtaining this extension at the existing facility rate of
LIBOR plus 65 basis points. The facility also includes a money market
competitive bid option program which allows the Company to hold auctions at
lower pricing for short term funds (30, 60 or 90 days) for up to $625 million.
SPG completed a total of $3.6 billion of capital market transactions in 1999,
including new financings of $1.1 billion; secured refinancings of $0.5 billion;
and unsecured refinancings of $2 billion.
The Company today announced that it has obtained commitments from 29 lenders
totaling $550 million to extend the second tranche of the existing CPI facility.
The $450 million tranche matures March 24th. The new facility will mature March
2001 at the existing facility rate of LIBOR plus 65 basis points. This
transaction is expected to close in March.
Dividends
- ---------
On January 19, 2000, the Company declared a common stock dividend of $0.5050 per
share. This dividend will be paid on February 18, 2000 to shareholders of record
on February 4, 2000.
The Company also declared dividends on its three public issues of preferred
stock, all payable on March 31, 2000 to shareholders of record on March 17,
2000:
. Simon Property Group, Inc.'s 6.50% Series B Convertible Preferred Stock
(NYSE:SPGPrB) - $1.625 per share
. SPG Properties, Inc. Series B Cumulative Redeemable Preferred Stock
(NYSE:SGVPrB) - $0.546875 per share
. SPG Properties, Inc. 7.89% Series C Cumulative Preferred Stock - $0.98625
per share.
34 of 38
<PAGE>
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a self-
administered and self-managed real estate investment trust which, through its
subsidiary partnerships, is engaged in the ownership, development, management,
leasing, acquisition and expansion of income-producing properties, primarily
regional malls and community shopping centers. It currently owns or has an
interest in 258 properties containing an aggregate of 184 million square feet of
gross leasable area in 36 states and five assets in Europe. Together with its
affiliated management company, Simon owns or manages approximately 190 million
square feet of gross leasable area in retail and mixed-use properties. Shares of
Simon Property Group, Inc. are paired with beneficial interests in shares of
stock of SPG Realty Consultants, Inc. Additional Simon Property Group
information is available at www.simon.com.
-------------
Supplemental Materials
- ----------------------
The Company's 1999 Form 10-K will be available on or about March 31/st/. The
year-end supplemental information package (Form 8-K) will be available on
February 18/th/. These documents may be requested in e-mail or hard copy formats
by contacting Shelly Doran - Director of Investor Relations, Simon Property
Group, P.O. Box 7033, Indianapolis, IN 46207 or via e-mail at [email protected].
----------------
Conference Call
- ---------------
Investors may listen to the Company's year-end conference call over the Internet
at www.vcall.com. To listen to the live call, please go to the web site at least
fifteen minutes prior to the call (by 9:45 a.m. EST on February 17th) to
register, download and install any necessary audio software. An online replay
will be available after the call on www.vcall.com for approximately 90 days.
Statements in this press release that are not historical may be deemed forward-
looking statements within the meaning of the federal securities laws. Although
the Company believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no assurance that
its expectations will be attained. The reader is directed to the Company's
various filings with the Securities and Exchange Commission, including quarterly
reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K for a
discussion of such risks and uncertainties.
35 of 38
<PAGE>
================================================================================
SIMON
Combined Financial Highlights/(A)/
(In thousands, except as noted)
================================================================================
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Minimum Rent $315,496 $285,151 $1,146,659 $ 850,708
Overage Rent 20,643 26,916 60,976 49,689
Tenant Reimbursements 150,425 145,572 583,777 429,470
Other Income 34,869 14,950 101,291 75,692
-------- -------- ---------- ----------
Total Revenue 521,433 472,589 1,892,703 1,405,559
Operating Expenses 176,262 166,090 656,282 494,905
Depreciation and Amortization 109,249 90,717 382,176 268,442
-------- -------- ---------- ----------
Operating Income before Interest Expense 235,922 215,782 854,245 642,212
Interest Expense 151,722 138,167 579,593 419,918
-------- -------- ---------- ----------
Income before Minority Interest 84,200 77,615 274,652 222,294
Minority Interest and Other (2,980) (2,631) (7,345) (7,335)
Gains (Losses) on Sales of Assets 2,246 - (7,062) (7,283)
-------- -------- ---------- ----------
Income before Unconsolidated Entities 83,466 74,984 260,245 207,676
Income from Unconsolidated Entities 10,783 19,757 55,855 28,554
-------- -------- ---------- ----------
Income before Unusual and Extraordinary Items 94,249 94,741 316,100 236,230
Unusual Item - Provision for Additional Cost
of DeBartolo Merger/(B)/ - - (12,000) -
Extraordinary Items - Debt Related Transactions (4,478) 144 (6,705) 7,146
-------- -------- ---------- ----------
Income before Limited Partners' Interest 89,771 94,885 297,395 243,376
Less: Limited Partners' Interest in Operating Partnerships 19,503 22,939 60,758 68,307
Less: Preferred Distributions of the
SPG Operating Partnership 2,305 - 2,917 -
Less: Preferred Dividends of Subsidiary 7,334 7,334 29,335 7,816
-------- -------- ---------- ----------
Net Income 60,629 64,612 204,385 167,253
Preferred Dividends (9,166) (11,395) (37,071) (33,655)
-------- -------- ---------- ----------
Net Income Available to Common Shareholders $ 51,463 $ 53,217 $ 167,314 $ 133,598
======== ======== ========== ==========
Basic Income per Paired Share:
Before Extraordinary Items $ 0.32 $ 0.32 $ 1.00 $ 1.02
Extraordinary Items (0.02) - (0.03) 0.04
-------- -------- ---------- ----------
Net Income Available to Common Shareholders $ 0.30 $ 0.32 $ 0.97 $ 1.06
======== ======== ========== ==========
Diluted Income per Paired Share:
Before Extraordinary Items $ 0.32 $ 0.32 $ 1.00 $ 1.02
Extraordinary Items (0.02) - (0.03) 0.04
-------- -------- ---------- ----------
Net Income Available to Common Shareholders $ 0.30 $ 0.32 $ 0.97 $ 1.06
======== ======== ========== ==========
</TABLE>
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<PAGE>
================================================================================
SIMON
Combined Financial Highlights - Continued/(A)/
(In thousands, except as noted)
================================================================================
RECONCILIATION OF INCOME TO FUNDS FROM OPERATIONS ("FFO")
---------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income Before Unusual and Extraordinary Items $ 94,249 $ 94,741 $316,100 $236,230
Plus: Depreciation and Amortization from
Consolidated Properties 109,002 90,385 381,265 267,423
Less: Minority Interest Portion of Depreciation,
Amortization and Extraordinary Items (1,562) (1,933) (5,128) (7,307)
Plus: Simon's Share of Depreciation, Amortization,
and Extraordinary and Other Items from
Unconsolidated Entities 45,346 31,569 104,537 82,323
Plus: (Gains) Losses on Sales of Assets (2,246) - 7,062 7,283
Less: Preferred Dividends/Distributions
(including those of subsidiary) (18,805) (18,729) (69,323) (41,471)
-------- -------- -------- --------
FFO of the Simon Portfolio $225,984 $196,033 $734,513 $544,481
======== ======== ======== ========
<CAPTION>
<S> <C> <C> <C> <C>
FFO of the Simon Portfolio $225,984 $196,033 $734,513 $544,481
Basic FFO per Paired Share:
---------------------------
Basic FFO Allocable to the Company $164,018 $141,122 $534,285 $361,326
Basic Weighted Average Paired Shares
Outstanding 173,167 166,776 172,089 126,522
Basic FFO per Paired Share $ 0.95 $ 0.85 $ 3.10 $ 2.86
======== ======== ======== ========
Diluted FFO per Paired Share:
-----------------------------
Diluted FFO Allocable to the Company $174,085 $154,179 $574,029 $374,980
Diluted Weighted Average Number of Equivalent
Paired Shares 187,735 187,556 187,732 132,378
Diluted FFO per Paired Share $ 0.93 $ 0.82 $ 3.06 $ 2.83
======== ======== ======== ========
</TABLE>
37 of 38
<PAGE>
================================================================================
SIMON
Combined Financial Highlights - Continued/(A)/
(In thousands, except as noted)
================================================================================
SELECTED BALANCE SHEET INFORMATION
----------------------------------
December 31, December 31,
1999 1998
---- ----
Cash and Cash Equivalents $ 157,632 $ 129,195
Investment Properties, Net $11,703,171 $11,127,643
Mortgages and Other Indebtedness $ 8,768,951 $ 7,973,372
SELECTED REGIONAL MALL OPERATING STATISTICS
-------------------------------------------
December 31,
1999 1998
---- ----
Occupancy/(C)/ 90.6% 90.0%
Average Rent per Square Foot/(C)/ $ 27.33 $ 25.70
Total Sales Volume (millions)/(D)/ $15,542 $12,936
Comparable Sales per Square Foot/(D)/ $ 377 $ 346
Total Sales per Square Foot/(D)/ $ 367 $ 343
(A) Represents combined condensed financial statements of Simon Property Group,
Inc. and its paired share affiliate, SPG Realty Consultants, Inc.
(B) Provision relates to litigation filed by former employees/shareholders of
DeBartolo Realty Corporation (purchased by SPG in 1996) regarding stock
incentive plan shares. Judgment was rendered in favor of SPG in district
court, but reversed by appellate court on August 18, 1999.
(C) Includes mall and freestanding stores.
(D) Based on the standard definition of sales for regional malls adopted by the
International Council of Shopping Centers, which includes only mall and
freestanding stores.
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