NOTE 9. RENTALS UNDER OPERATING LEASES Subsequent Event At the time of the initial public offering of Simon Property’s predecessor in 1993, the charter of the predecessor gave  Melvin Simon, Herbert Simon, David Simon and certain of their affiliates (the “Simons”) the right to elect four members  of the Board of Directors, conditioned upon the Simons, or entities they control, maintaining specified levels of equity  ownership in Simon Property’s predecessor, the Operating Partnership and all of their subsidiaries. In addition, at that time,  Melvin Simon & Associates, Inc. (“MSA”), acquired 3,200,000 shares of Class B common stock. MSA placed the Class B  common stock into a voting trust under which the Simons were the sole trustees. These voting trustees had the authority to  elect the four members of the Board of Directors. These same arrangements were incorporated into Simon Property’s Charter  in 1998 during the combination of its predecessor and Corporate Property Investors, Inc. On March 1, 2004, Simon Property and the Simons completed a restructuring transaction in which MSA exchanged  3,192,000 Class B common shares for an equal number of shares of common stock in accordance with our Charter. Those  shares continue to be owned by MSA and remain subject to a voting trust under which the Simons are the sole voting  The holders of common stock of Simon Property are entitled to one vote for each share held of record on all matters  submitted to a vote of shareholders, other than for the election of directors. The holders of Class B common stock are  entitled to elect four of the thirteen members of the board. Shares of Class B common stock convert automatically into an  equal number of shares of common stock upon the sale or transfer thereof to a person not affiliated with Melvin Simon,  Herbert Simon or David Simon. The holder of the Class C common stock is entitled to elect two of the thirteen members  of the board. Shares of Class C common stock convert automatically into an equal number of shares of common stock upon  the sale or transfer thereof to a person not affiliated with the members of the DeBartolo family or entities controlled by  them. The Class B and Class C shares can be converted into shares of common stock at the option of the holders. We have  reserved 3,200,000 and 4,000 shares of common stock for the possible conversion of the outstanding Class B and Class C  shares, respectively. The Board of Directors is authorized to reclassify the excess common stock into one or more additional classes and  series of capital stock, to establish the number of shares in each class or series and to fix the preferences, conversion and other  rights, voting powers, restrictions, limitations as to dividends, and qualifications and terms and conditions of redemption  of such class or series, without any further vote or action by the shareholders. The issuance of additional classes or series of  capital stock may have the effect of delaying, deferring or preventing a change in control of Simon Property without further  action of the shareholders. The ability of the Board of Directors to issue additional classes or series of capital stock, while  providing flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making  it more difficult for a third party to acquire, or of discouraging a third party from acquiring, a majority of the outstanding  voting stock of Simon Property. Approximately 0.87% of future minimum rents to be received are attributable to leases with an affiliate of a limited  partner in the Operating Partnership. NOTE 10. CAPITAL STOCK Future minimum rentals to be received under noncancelable tenant operating leases for each of the next five years and  thereafter, excluding tenant reimbursements of operating expenses and percentage rent based on tenant sales volume, as of  December 31, 2003, are as follows: 2004  $ 1,131,455 2005  1,032,095 2006  922,152 2007  800,765 2008  676,384 Thereafter  2,188,490 $ 6,751,341 2003 annual report 69