Report to Shareholders simon property group, inc. 2 GROWTH STRATEGY CASH DIVIDEND INCREASE SHAREHOLDER RETURNS FINANCIAL RESULTS W e had a very busy and productive  year in   . We completed  three significant acquisitions; partnered  with the leading Italian retail real  estate developer; launched four new  development projects; and continued  to increase real estate cash flow and  asset value through our redevelopment  and expansion program. We also sold   non-core assets, realizing net proceeds of    million. We continued to finance  the Company in a prudent manner and  completed a    million bond issuance  at industry-leading interest rates. We  once again posted solid operational and  financial results.  Due to our excellent performance in   and our positive outlook for the  future, we raised the common stock div- idend by   .  % in February of    to an  annual rate of $  .   per share. Our an- nual dividend has increased by   % over  the last two years, from   .   per share  in    to   .   per share in   . We delivered a strong total return  of   % for our shareholders in   comprised of a   % increase in the  price of our common stock plus cash  dividends of $  .  per share. We  significantly outperformed the S&P  500 which delivered a total return of   % in   . Since our IPO in   ,  our investors have enjoyed a total  return, including the reinvestment of  dividends of   %. Revenues increased in    by   .  %  to   .   billion. Operating income rose   .  % to $  million. Diluted funds  from operations (FFO) gained   .  %  to   .   per common share from   .  per common share in   . FFO is  a widely recognized measure of the  performance of real estate investment  trusts.  Net income available to common  shareholders decreased   .  % to   million, or   .  per diluted common  share, from   million, or   .  per  diluted common share, due primarily to  the sale of certain joint venture interests in  real estate in   . In   , we recorded  a net gain of    million, or   .   per  share, as a result of the disposition of  real estate or interests in real estate, as  compared to a net gain of    million,  or   .   per share, in   . Our growth strategy has five major  components: SIMON GROWTH STRATEGY ●  Enhance Profitability of the Core  Portfolio ●  Generate Supplemental Revenues ●  Develop High Quality Retail Real  Estate ●  Acquire High Quality Retail Real  Estate ●  Selectively Expand Our  International Presence • Enhance Profitability of the Core Portfolio • Generate Supplemental Revenues • Develop High Quality Retail Real Estate • Acquire High Quality Retail Real Estate • Selectively Expand Our International  Presence