Simon Property Group Announces Second Quarter FFO Per Share Growth of 16.8% and Declares Quarterly Dividends

INDIANAPOLIS, July 28 /PRNewswire-FirstCall/ -- Simon Property Group, Inc. (the "Company" or "Simon") today announced results for the quarter and six months ended June 30, 2005:

* Net income available to common stockholders for the quarter increased 119.0% to $154.8 million from $70.7 million in 2004. On a diluted per share basis the increase was 105.9% to $0.70 from $0.34 in the second quarter of 2004. Net income available to common stockholders for the six months increased 77.9% to $211.9 million from $119.1 million in 2004. On a diluted per share basis the increase was 65.5% to $0.96 per share from $0.58 per share in 2004. The increase in net income for the quarter and six months is primarily attributable to net gains on the sale of two Chicago office building complexes.

* Diluted funds from operations ("FFO") of the Simon portfolio for the quarter increased 30.1% to $349.4 million from $268.5 million in 2004. On a per share basis the increase was 16.8% to $1.18 from $1.01 in the second quarter of 2004. Diluted FFO of the Simon portfolio for the six months increased 30.7% to $683.2 million from $522.8 million in 2004. On a per share basis the increase was 17.3% to $2.31 per share from $1.97 per share in 2004.

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

The Company's core fundamentals continue to demonstrate strength as evidenced by growth in operating metrics for all three domestic business platforms:

As of As of June 30, 2005 June 30, 2004 Increase Occupancy Regional Malls(1) 92.2% 91.3% 90 basis points Premium Outlet(R) Centers(2) 99.2% 98.0%(3) 120 basis points Community/Lifestyle Centers(2) 91.5% 91.5% No change Comparable Sales per Sq. Ft. Regional Malls(4) $442 $419 5.5% Premium Outlet(R) Centers(2) $426 $397(3) 7.3% Community/Lifestyle Centers(2) $218 $213 2.3% Average Rent per Sq. Ft. Regional Malls(1) $34.16 $32.92 3.8% Premium Outlet(R) Centers(2) $22.83 $21.16(3) 7.9% Community/Lifestyle Centers(2) $11.13 $10.77 3.3% (1) For mall and freestanding stores. (2) For all owned gross leasable area (GLA). (3) The Company acquired Chelsea Property Group on October 14, 2004. (4) For mall and freestanding stores with less than 10,000 square feet.

"We reported strong financial results and robust operating fundamentals for the second quarter," said David Simon, Chief Executive Officer. "We also completed the efficient execution of a $1 billion unsecured notes offering, sold over $250 million of non-core assets, and announced additional international development initiatives."

Dividends

Today the Company announced a quarterly common stock dividend of $0.70 per share to be paid on August 31, 2005 to stockholders of record on August 17, 2005.

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

* 8.75% Series F Cumulative Redeemable Preferred dividend of $0.546875 per share is payable on September 30, 2005 to stockholders of record on September 16, 2005.

* 7.89% Series G Cumulative Preferred dividend of $0.98625 per share is payable on September 30, 2005 to stockholders of record on September 16, 2005.

* 6% Series I Convertible Perpetual Preferred dividend of $0.75 per share is payable on August 31, 2005 to stockholders of record on August 17, 2005.

* 8 3/8% Series J Cumulative Redeemable Preferred dividend of $1.046875 per share is payable on September 30, 2005 to stockholders of record on September 16, 2005.

Development Activity

On May 5, 2005, the Company opened Phase I of Seattle Premium Outlets(R), a 381,000 square foot upscale outlet center in Tulalip, Washington, 35 miles north of Seattle. The center is located off I-5 on the Tulalip Tribes Reservation. Tenants include: Adidas, Adrienne Vittadini, Ann Taylor, Banana Republic, Brooks Brothers, Burberry, Calvin Klein, Crabtree & Evelyn, Coach, Gap, Guess, Izod, J.Crew, Le Creuset, Mikasa, Movado, Nike, Polo Ralph Lauren, Sony, Tommy Hilfiger, and Tumi. Gross costs were $58 million. The Company owns 100% of this project.

Wolf Ranch, a 670,000 square foot community center located north of Austin, Texas in Georgetown, opened earlier this month. It is an open-air, mixed-use shopping center containing a mix of anchor stores, specialty retail stores and unique restaurants. Wolf Ranch is anchored by Target, Linens 'n Things, Michaels, Office Depot, Old Navy, Pier One Imports, PetsMart and T.J. Maxx. Three additional anchors -- Kohl's, Best Buy and DSW -- are under construction and scheduled to open during October and November of this year. Gross costs are expected to approximate $98 million. The Company owns 100% of this project.

During the quarter, the Company started construction on three new projects:

* Round Rock Premium Outlets -- a 433,000 square foot upscale outlet center in Round Rock (Austin), Texas. The project is scheduled to open in the fall of 2006.

* The Domain -- a master-planned urban village in Austin, Texas, that will include 700,000 square feet of retail and restaurants, 75,000 square feet of Class A office space and 390 multi-family residential units. The retail portion will be anchored by Neiman Marcus and Foley's. The Domain is scheduled to open in March 2007.

* The Village at SouthPark -- a mixed-use project comprised of residential and retail components located adjacent to Simon's highly successful SouthPark Mall in Charlotte, North Carolina. The retail component is scheduled to open in March 2007, followed by the residential component in May 2007.

The Company continues construction on:

* Firewheel Town Center -- a 785,000 square foot open-air regional shopping center in Garland, Texas. The project is scheduled to open on October 7, 2005.

* Coconut Point -- an open-air, mixed-use mainstreet regional shopping center in Estero/Bonita Springs, Florida. The community center component is expected to open in March 2006, followed by the remainder of the project in September 2006.

Construction also continues on three development projects in Italy, partially owned by Gallerie Commerciali Italia, the Company's Italian joint venture.

International Activity

On April 19, 2005, the Company announced that it signed an agreement with Seoul-based Shinsegae Co., Ltd. and Shinsegae International Co., Ltd. to jointly develop Premium Outlet centers in South Korea. The joint venture will adapt Chelsea's Premium Outlet concept to the development of upscale, fashion- oriented outlet centers in South Korea. Chelsea will contribute leasing, design, marketing and operations expertise to the venture; Shinsegae will manage the venture's entitlement, development and construction activities. The initial focus will be on the development of a Premium Outlet center to serve the greater Seoul market.

On May 23, 2005, the Company announced the opening of a regional office in Hong Kong. Operating as Simon/Chelsea International Ltd., a newly formed subsidiary, the office will be responsible for Simon's retail real estate activities in Asia. Located in the Central district of Hong Kong, the new regional office will be headed by Renee Ting, Managing Director, a real estate professional with extensive experience in Hong Kong, Beijing and Shanghai.

On July 25, 2005, SPG announced the execution of a Cooperation Framework Agreement with the Morgan Stanley Real Estate Funds ("MSREF") and SZITIC Commercial Property Co. Ltd. ("SZITIC CP"), retail property subsidiary of the Chinese state-owned trust and investment firm, Shenzhen International Trust & Investment Co., Ltd. ("SZITIC"), to develop retail shopping center projects in China. Simon and MSREF will each own 32.5% of the enterprise while SZITIC CP will own 35%. Each project will be an urban, multi-level, retail destination of between 40,000 sq. m and 70,000 sq. m (430,000 and 750,000 sq. ft.), anchored in all cases by a Wal-Mart store.

Disposition Activity

On June 1, 2005, the Company sold its Chicago office portfolio -- three buildings at Riverway and two buildings at O'Hare International Center -- for $257 million. In addition, the Company has completed or expects to complete the sale of land at Riverway underlying two additional buildings owned by the current ground lessees for $19 million during the third quarter. The Company recorded a gain of $119.7 million in the second quarter in conjunction with the sale of Riverway and O'Hare.

Financing Activity

On June 7, 2005, the Company announced the closing of a private offering of $1 billion of senior notes by its operating partnership subsidiary, Simon Property Group, L.P. (the "Operating Partnership"). The offering consisted of $400 million of 4.60% notes due 2010 and $600 million of 5.10% notes due 2015. The notes were offered within the United States to qualified institutional buyers pursuant to Rule 144A and outside the United States in accordance with Regulation S under the Securities Act of 1933, as amended. The five-year notes were issued at an offering price of 99.870% and the ten-year notes at 99.967%. The net proceeds of the offering were used to reduce outstanding borrowings on two credit facilities of the Operating Partnership. An offer to

exchange these notes for registered notes is underway and is expected to be completed during the third quarter.

2005 Guidance

Today the Company updated its guidance for 2005. The Company expects diluted FFO to be within a range of $4.80 to $4.85 per share for the year ending December 31, 2005, and diluted net income to be within a range of $1.67 to $1.72 per share.

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

For the twelve months ended December 31, 2005 Low High Estimated diluted net income per share $1.67 $1.72 Depreciation and amortization including joint ventures 3.65 3.65 Gain on sales of real estate and discontinued operations, net of tax effect (0.46) (0.46) Impact of additional dilutive securities for FFO per share (0.06) (0.06) Estimated diluted FFO per share $4.80 $4.85 Forward-Looking Statements

Estimates of future net income and FFO per share, and other statements regarding future developments and operations, are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements often contain words such as "estimated," "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to, international, national, regional and local economic climates, competitive market forces, changes in market rental rates, trends in the retail industry, the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, risks associated with acquisitions, the impact of terrorist activities, environmental liabilities, pending litigation, maintenance of REIT status, changes in applicable laws, rules and regulations, changes in market rates of interest and fluctuations in exchange rates of foreign currencies. The reader is directed to the Company's various filings with the Securities and Exchange Commission for a discussion of such risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward- looking statements whether as a result of new information, future events or otherwise.

Conference Call

The Company will provide an online simulcast of its quarterly conference call at http://www.simon.com/ (in the About Simon section), http://www.earnings.com/ , and http://www.streetevents.com/ . To listen to the live call, please go to any of these websites at least fifteen minutes prior to the call to register, download and install any necessary audio software. The call will begin at 4:00 p.m. Eastern Daylight Time (New York) today, July 28, 2005. An online replay will be available for approximately 90 days at http://www.simon.com/.

Supplemental Materials

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

About Simon

Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet(R) centers and community/lifestyle centers. The Company's current total market capitalization is approximately $39 billion. Through its subsidiary partnership, it currently owns or has an interest in 294 properties in the United States containing an aggregate of 201 million square feet of gross leasable area in 40 states plus Puerto Rico. Simon also holds interests in 51 European shopping centers in France, Italy, Poland and Portugal; 5 Premium Outlet centers in Japan; one Premium Outlet center in Mexico; and one shopping center in Canada. Additional Simon Property Group information is available at http://www.simon.com/ .

SIMON Consolidated Statements of Operations Unaudited (In thousands) For the Three Months Ended For the Six Months Ended June 30, June 30, 2005 2004 2005 2004 REVENUE: Minimum rent $470,387 $355,455 $937,026 $703,781 Overage rent 14,423 8,538 27,731 18,019 Tenant reimbursements 213,873 174,947 425,470 345,180 Management fees and other revenues 17,505 18,490 37,185 36,403 Other income 40,074 34,133 76,769 61,137 Total revenue 756,262 591,563 1,504,181 1,164,520 EXPENSES: Property operating 100,916 84,821 202,567 167,824 Depreciation and amortization 206,444 142,906 418,070 277,697 Real estate taxes 71,783 58,687 143,892 117,139 Repairs and maintenance 24,904 19,886 53,230 41,833 Advertising and promotion 18,687 12,720 36,860 25,325 Provision for credit losses (recoveries) (1,688) 3,213 824 6,656 Home and regional office costs 30,802 21,267 57,992 42,232 General and administrative 4,459 3,460 8,251 7,021 Other 11,107 7,627 21,958 16,482 Total operating expenses 467,414 354,587 943,644 702,209 OPERATING INCOME 288,848 236,976 560,537 462,311 Interest expense 199,153 156,218 395,763 308,879 Income before minority interest 89,695 80,758 164,774 153,432 Minority interest (2,253) (3,820) (5,560) (4,681) Gain (loss) on sales of assets and other, net 2,134 11,619 12,607 (1,881) Income tax expense of taxable REIT subsidiaries (2,734) (6,632) (7,420) (8,642) Income before unconsolidated entities 86,842 81,925 164,401 138,228 Income from unconsolidated entities 14,456 19,836 32,383 36,908 Income from continuing operations 101,298 101,761 196,784 175,136 Results of operations from discontinued operations 1,596 1,688 4,073 3,889 Gain on disposal or sale of discontinued operations, net 119,692 197 119,780 288 Income before allocation to limited partners 222,586 103,646 320,637 179,313 LESS: Limited partners' interest in the Operating Partnership 42,018 20,201 57,681 34,776 Preferred distributions of the Operating Partnership 7,350 4,900 14,274 9,805 NET INCOME 173,218 78,545 248,682 134,732 Preferred dividends (18,407) (7,834) (36,804) (15,670) NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $154,811 $70,711 $211,878 $119,062 SIMON Per Share Data Unaudited For the Three For the Six Months Ended Months Ended June 30, June 30, 2005 2004 2005 2004 PER SHARE DATA: Basic Earnings Per Common Share: Income from continuing operations $0.27 $0.33 $0.52 $0.56 Discontinued operations - results of operations and gain on disposal or sale, net 0.43 0.01 0.44 0.02 Net income available to common stockholders $0.70 $0.34 $0.96 $0.58 Percentage Change 105.9% 65.5% Diluted Earnings Per Common Share: Income from continuing operations $0.27 $0.33 $0.52 $0.56 Discontinued operations - results of operations and gain on disposal or sale, net 0.43 0.01 0.44 0.02 Net income available to common stockholders $0.70 $0.34 $0.96 $0.58 Percentage Change 105.9% 65.5% SIMON Reconciliation of Net Income to FFO (A) Unaudited (In thousands, except as noted) For the Three For the Six Months Ended Months Ended June 30, June 30, 2005 2004 2005 2004 Net Income(B)(C)(D)(E) $173,218 $78,545 $248,682 $134,732 Plus: Limited partners' interest in the Operating Partnership and preferred distributions of the Operating Partnership 49,368 25,101 71,955 44,581 Plus: Depreciation and amortization from consolidated properties and discontinued operations 205,858 143,547 417,576 279,798 Plus: Simon's share of depreciation and amortization from unconsolidated entities 55,567 42,140 103,298 83,632 Plus: (Gain)/loss on sales of real estate and other assets and discontinued operations (121,826) (11,816) (132,387) 1,593 Plus: Tax provision related to sale 1,533 4,415 1,533 4,415 Less: Minority interest portion of depreciation and amortization (2,792) (1,938) (4,841) (3,019) Less: Preferred distributions and dividends (25,757) (12,734) (51,078) (25,475) FFO of the Simon Portfolio $335,169 $267,260 $654,738 $520,257 Per Share Reconciliation: Diluted net income per share $0.70 $0.34 $0.96 $0.58 Plus: Depreciation and amortization from consolidated properties and the Company's share of depreciation and amortization from unconsolidated affiliates, net of minority interest portion of depreciation and amortization 0.92 0.70 1.83 1.36 Plus: (Gain)/loss on sales of real estate and other assets and discontinued operations (0.43) (0.04) (0.47) 0.01 Plus: Tax provision related to sale 0.01 0.02 0.01 0.02 Less: Impact of additional dilutive securities for FFO per share (0.02) (0.01) (0.02) 0.00 Diluted FFO per share $1.18 $1.01 $2.31 $1.97 Details for per share calculations: FFO of the Simon Portfolio $335,169 $267,260 $654,738 $520,257 Adjustments for dilution calculation: Impact of preferred stock and preferred unit conversions and option exercises (F) 14,209 1,275 28,421 2,549 Diluted FFO of the Simon Portfolio 349,378 268,535 683,159 522,806 Diluted FFO allocable to unitholders (70,309) (58,283) (138,244) (116,401) Diluted FFO allocable to common stockholders $279,069 $210,252 $544,915 $406,405 Basic weighted average shares outstanding 220,228 205,553 220,306 203,901 Adjustments for dilution calculation: Effect of stock options 883 808 887 888 Impact of Series C preferred unit conversion 1,078 1,968 1,105 1,968 Impact of Series I preferred unit conversion 3,424 0 3,426 0 Impact of Series I preferred stock conversion 10,682 0 10,680 0 Diluted weighted average shares outstanding 236,295 208,329 236,404 206,757 Weighted average limited partnership units outstanding 59,535 57,605 59,975 59,096 Diluted weighted average shares and units outstanding 295,830 265,934 296,379 265,853 Basic FFO per share $1.20 $1.01 $2.34 $1.98 Percent Increase 18.8% 18.2% Diluted FFO per share $1.18 $1.01 $2.31 $1.97 Percent Increase 16.8% 17.3% SIMON Consolidated Balance Sheets Unaudited (In thousands, except as noted) June 30, December 31, 2005 2004 ASSETS: Investment properties, at cost $21,161,935 $21,253,761 Less - accumulated depreciation 3,440,838 3,162,523 17,721,097 18,091,238 Cash and cash equivalents 375,575 520,084 Tenant receivables and accrued revenue, net 310,606 361,590 Investment in unconsolidated entities, at equity 1,709,899 1,920,983 Deferred costs and other assets 1,200,889 1,176,124 Total assets $21,318,066 $22,070,019 LIABILITIES: Mortgages and other indebtedness $14,247,220 $14,586,393 Accounts payable, accrued expenses, intangibles, and deferred revenue 1,016,179 1,113,645 Cash distributions and losses in partnerships and joint ventures, at equity 111,694 37,739 Other liabilities, minority interest and accrued dividends 163,755 311,592 Total liabilities 15,538,848 16,049,369 COMMITMENTS AND CONTINGENCIES LIMITED PARTNERS' INTEREST IN THE OPERATING PARTNERSHIP 917,598 965,204 LIMITED PARTNERS' PREFERRED INTEREST IN THE OPERATING PARTNERSHIP 409,340 412,840 STOCKHOLDERS' EQUITY CAPITAL STOCK OF SIMON PROPERTY GROUP, INC. (750,000,000 total shares authorized, $.0001 par value, 237,996,000 shares of excess common stock): All series of preferred stock, 100,000,000 shares authorized, 25,479,963 and 25,434,967 issued and outstanding, respectively, and with liquidation values of $1,073,998 and $1,071,748, respectively 1,072,392 1,062,687 Common stock, $.0001 par value, 400,000,000 shares authorized, 224,574,876 and 222,710,350 issued and outstanding, respectively 23 23 Class B common stock, $.0001 par value, 12,000,000 shares authorized, 8,000 issued and outstanding - - Class C common stock, $.0001 par value, 4,000 shares authorized, issued and outstanding - - Capital in excess of par value 5,016,631 4,993,698 Accumulated deficit (1,432,864) (1,335,436) Accumulated other comprehensive income 7,053 16,365 Unamortized restricted stock award (39,517) (21,813) Common stock held in treasury at cost, 4,000,255 and 2,415,855 shares, respectively (171,438) (72,918) Total stockholders' equity 4,452,280 4,642,606 Total liabilities and stockholders' equity $21,318,066 $22,070,019 SIMON Joint Venture Statements of Operations Unaudited (In thousands) For the Three Months Ended For the Six Months Ended June 30, June 30, 2005 2004 2005 2004 REVENUE: Minimum rent $262,318 $225,055 $515,287 $452,972 Overage rent 19,653 3,525 31,621 8,758 Tenant reimbursements 131,020 118,437 258,183 232,657 Other income 33,035 16,160 57,663 28,738 Total revenue 446,026 363,177 862,754 723,125 EXPENSES: Property operating 91,552 66,918 172,784 136,124 Depreciation and amortization 84,707 67,508 160,876 134,655 Real estate taxes 33,013 30,742 66,093 63,533 Repairs and maintenance 18,276 16,920 39,872 33,915 Advertising and promotion 8,129 8,475 15,836 16,514 Provision for credit losses 1,725 2,446 5,100 4,629 Other 29,390 15,964 53,891 32,433 Total operating expenses 266,792 208,973 514,452 421,803 OPERATING INCOME 179,234 154,204 348,302 301,322 Interest expense 99,458 92,622 196,965 185,617 Income Before Minority Interest and Unconsolidated Entities 79,776 61,582 151,337 115,705 Loss from unconsolidated entities (637) (1,612) (1,892) (2,301) Income from Continuing Operations 79,139 59,970 149,445 113,404 Income from consolidated joint venture interests(G) - 4,363 - 10,334 Income from discontinued joint venture interests (G) 542 (H) 9,704 1,004 (H) 6,560 Gain on disposal or sale of discontinued operations, net (34)(H) 4,704 98,359 (H) 4,704 NET INCOME $79,647 $78,741 $248,808 $135,002 Third-party investors' share of net income $49,305 $52,831 $141,067 $85,851 Simon's share of net income 30,342 25,910 107,741 49,151 Amortization of excess investment 15,903 6,074 26,179 12,243 Write-off of investment related to property sold (945)(H) - 37,778 (H) - Simon's share of net gain related to property sold 928 (H) - 11,401 (H) - Income from unconsolidated joint ventures $14,456 $19,836 $32,383 $36,908 SIMON Joint Venture Balance Sheets Unaudited (In thousands) June 30, December 31, 2005 2004 ASSETS: Investment properties, at cost $9,454,830 $9,429,465 Less - accumulated depreciation 1,833,801 1,745,498 7,621,029 7,683,967 Cash and cash equivalents 285,919 292,770 Tenant receivables 185,988 209,040 Investment in unconsolidated entities 134,453 167,182 Deferred costs and other assets 337,460 322,660 Total assets $8,564,849 $8,675,619 LIABILITIES AND PARTNERS' EQUITY: Mortgages and other indebtedness $6,738,891 $6,398,312 Accounts payable, accrued expenses and deferred revenue 347,324 373,887 Other liabilities 207,941 179,443 Total liabilities 7,294,156 6,951,642 Preferred units 67,450 67,450 Partners' equity 1,203,243 1,656,527 Total liabilities and partners' equity $8,564,849 $8,675,619 Simon's Share of: Total assets $3,589,234 $3,619,969 Partners' equity 564,620 779,252 Add: Excess Investment(I) 1,033,585 1,103,992 Simon's net investment in joint ventures $1,598,205 $1,883,244 Mortgages and other indebtedness $2,903,088 $2,750,327 SIMON Footnotes to Financial Statements Unaudited Notes:

(A) The Company considers FFO a key measure of its operating performance that is not specifically defined by GAAP. The Company believes that FFO is helpful to investors because it is a widely recognized measure of the performance of REITs and it provides a relevant basis for comparison among REITs. The Company also uses this measure internally to measure the operating performance of the portfolio. The Company's computation of FFO may not be comparable to FFO reported by other REITs.

As defined by NAREIT, FFO is consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sales of real estate, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. The Company has adopted NAREIT's clarification of the definition of FFO that requires it to include the effects of nonrecurring items not classified as extraordinary, cumulative effect of accounting change or resulting from the sale of depreciable real estate. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.

(B) Includes our share of gains on land sales of $8.8 million and $10.3 million for the three months ended June 30, 2005 and 2004, respectively, and $17.9 million and $14.6 million for the six months ended June 30, 2005 and 2004, respectively.

(C) Includes our share of straight-line adjustments to minimum rent of $5.4 million and $0.8 million for the three months ended June 30, 2005 and 2004, respectively, and $9.5 million and $3.0 million for the six months ended June 30, 2005 and 2004, respectively.

(D) Includes our share of the fair market value of leases from acquisitions of $13.5 million and $9.7 million for the three months ended June 30, 2005 and 2004, respectively, and $27.1 million and $17.1 million for the six months ended June 30, 2005 and 2004, respectively.

(E) Includes our share of debt premium amortization of $8.1 million and $1.9 million for the three months ended June 30, 2005 and 2004, respectively, and $16.2 million and $3.7 million for the six months ended June 30, 2005 and 2004, respectively.

(F) Includes dividends and distributions of Series I preferred stock and Series C and I preferred units.

(G) Consolidation occurs when the Company acquires an additional ownership interest in a joint venture and has, as a result, gained control of the joint venture. These interests have been separated from operational interests to present comparative results of operations for those joint ventures held as of June 30, 2005. Discontinued joint venture interests represent those partnership interests that have been sold.

(H) Relates to Metrocenter, a regional mall in Phoenix, Arizona sold on January 11, 2005.

(I) Excess Investment represents the unamortized difference of our investment over our share of the equity in the underlying net assets of the partnerships and joint ventures acquired. We generally amortize excess investment over the life of the related Properties, typically 35 years, and the amortization is included in income from unconsolidated entities.