Notes to Financial Statements Dollars in thousands, except share and per share amounts and where indicated as in millions or billions 7.75%/8.00% Cumulative Redeemable Preferred Units.  During 2003, in connection with the purchase of additional  interest in Kravco, the Operating Partnership issued 7.75%/8.00% Cumulative Redeemable Preferred Units (the “7.75%  Preferred Units”) that accrue cumulative dividends at a rate of 7.75% of the liquidation value for the period beginning  December 5, 2003 and ending December 31, 2004, 8.00% of the liquidation value for the period beginning January 1,  2005 and ending December 31, 2009, 10.00% of the liquidation value for the period beginning January 1, 2010 and  ending December 31, 2010, and 12% of the liquidation value thereafter. These dividends are payable quarterly in arrears. A  unitholder may require the Operating Partnership to repurchase the 7.75% Preferred Units on or after January 1, 2009 or  any time the aggregate liquidation value of the outstanding units exceeds 10% of the book value of partners’ equity of the  Operating Partnership. The Operating Partnership may redeem the 7.75% Preferred on or after January 1, 2011 or earlier  upon the occurrence of certain tax triggering events. Our intent is to redeem these units after January 1, 2009 after the  occurrence of a tax triggering event. The redemption is liquidation value plus accrued and unpaid distributions, payable in  cash or interest in one or more properties mutually agreed upon. 7.5% Cumulative Redeemable Preferred Units.  The Operating Partnership issued 7.5% Cumulative Redeemable  Preferred Units (the “7.5% Preferred Units”) in connection with the purchase of additional interest in Kravco. The 7.5%  Preferred Units accrue cumulative dividends at a rate of $7.50 annually, which is payable quarterly in arrears. The Operating  Partnership may redeem the 7.5% Preferred Units on or after November 10, 2013 unless there is the occurrence of certain  tax triggering events such as death of the initial unit holder, or the transfer of any units to any person or entity other than the  persons or entities entitled to the benefits of the original holder. The 7.5% Preferred Units’ redemption price is liquidation  value plus accrued and unpaid distributions, payable either in cash or shares of common stock. In the event of the death of  a holder of the 7.5% Preferred Units, the occurrence of certain tax triggering events applicable to the holder, or on or after  November 10, 2006, the Preferred Unitholder may require the Operating Partnership to redeem the 7.5% Preferred Units  payable at the option of the Operating Partnership in either cash or shares of common stock.  7.00% Cumulative Convertible Preferred Units.  The 7.00% Cumulative Convertible Preferred Units (the “7.00%  Preferred Units”) accrue cumulative dividends at a rate of $1.96 annually, which is payable quarterly in arrears. The 7.00%  Preferred Units are convertible at the holders’ option on or after August 27, 2004, into either a like number of shares of  7.00% Cumulative Convertible Preferred Stock of Simon Property with terms substantially identical to the 7.00% Preferred  Units or Units of the Operating Partnership at a ratio of 0.75676 to one provided that the closing stock price of Simon  Property’s common stock exceeds $37.00 for any three consecutive trading days prior to the conversion date. The Operating  Partnership may redeem the 7.00% Preferred Units at their liquidation value plus accrued and unpaid distributions on or  after August 27, 2009, payable in Units. In the event of the death of a holder of the 7.00% Preferred Units, or the occurrence  of certain tax triggering events applicable to a holder, the Operating Partnership may be required to redeem the 7.00%  Preferred Units at liquidation value payable at the option of the Operating Partnership in either cash (the payment of which  may be made in four equal annual installments) or shares of common stock. 8.00% Cumulative Redeemable Preferred Units.  The 8.00% Cumulative Redeemable Preferred Units (the “8.00%  Preferred Units”) accrue cumulative dividends at a rate of $2.40 annually, which is payable quarterly in arrears. The 8.00%  Preferred Units are each paired with one 7.00% Preferred Unit or with the Units into which the 7.00% Preferred Units may  be converted. The Operating Partnership may redeem the 8.00% Preferred Units at their liquidation value plus accrued and  unpaid distributions on or after August 27, 2009, payable in either new preferred units of the Operating Partnership having  the same terms as the 8.00% Preferred Units, except that the distribution coupon rate would be reset to a then determined  market rate, or in Units. The 8.00% Preferred Units are convertible at the holders’ option on or after August 27, 2004, into  8.00% Cumulative Redeemable Preferred Stock of Simon Property with terms substantially identical to the 8.00% Preferred  Units. In the event of the death of a holder of the 8.00% Preferred Units, or the occurrence of certain tax triggering events  applicable to a holder, the Operating Partnership may be required to redeem the 8.00% Preferred Units owned by such  holder at their liquidation value payable at the option of the Operating Partnership in either cash (the payment of which  may be made in four equal annual installments) or shares of common stock. Notes receivable of $17,926 from former Corporate Property Investors, Inc. (“CPI”) shareholders, which result from  securities issued under CPI’s executive compensation program and were assumed in our merger with CPI, are reflected  Notes Receivable from Former CPI Shareholders 72 simon property group, inc.