European Investments Our investments in the 47 shopping centers in Europe are dependent upon the relationship with two companies  that operate the hypermarkets that anchor the shopping centers, including our partner in GCI, the Rinascente Group who  operates the hypermarkets in Italy through its affiliates. Our total equity investment in our European properties, including  subordinated debt, was approximately $311.1 million as of December 31, 2003.  The Operating Partnership has a 35.2% ownership interest in European Retail Enterprises, B.V. (“ERE”), that is  accounted for using the equity method of accounting. The agreements with ERE are structured to allow us to acquire an  additional 26.1% ownership interest over time. The future commitments to purchase shares from three of the existing  shareholders of ERE are based upon a multiple of adjusted results of operations in the year prior to the purchase of the shares.  Therefore, the actual amount of these additional commitments may vary. The current estimated additional commitment is  approximately $60 million to purchase shares of stock of ERE, assuming that the three existing shareholders exercise their  rights under put options. We expect these purchases to be made from 2006-2008.  2003 annual report 63 For the Year Ended December 31,  2003 2002  2001 STATEMENTS OF OPERATIONS Revenue: Minimum rent  $  900,390 $  805,537 $  691,469  Overage rent  31,086 29,279 25,640 Tenant reimbursements  468,049 406,856 349,134 Other income  198,512 55,375 44,752 Total revenue  1,598,037 1,297,047 1,110,995 Operating Expenses: Property operating  312,911 210,051 182,489 Depreciation and amortization  272,746 234,264 203,910 Real estate taxes  140,261 126,390 112,309 Repairs and maintenance  75,691 69,853 51,689 Advertising and promotion  45,435 38,656 36,405 Provision for credit losses  8,684 9,131 5,070 Other  70,008 34,466 20,583 Total operating expenses  925,736 722,811 612,455 Operating Income 672,301 574,236 498,540 Interest Expense  364,740 337,119 307,849 Income Before Minority Interest and Unconsolidated Entities 307,561 237,117 190,691 Loss from debt related transactions  – – (295 ) Minority interest  (654 ) (751 )  – Income from unconsolidated entities  8,393 3,062 – Income From Continuing Operations 315,300 239,428 190,396 Income from Discontinued Joint Venture Interests  1,295 16,063 32,562 Income Before Cumulative Effect of Accounting Change (“IBC”) 316,595 255,491 222,958 Cumulative Effect of Accounting Change  – – (3,011 ) Net Income $  316,595 $  255,491 $  219,947 Third-Party Investors’ Share of IBC $  190,535 $  150,161 $  134,563 Simon Group’s Share of IBC 126,060 105,330 88,395  Amortization of Excess Investment 26,415 26,635 21,279 Income from Joint Ventures $  99,645 $  78,695 $  67,116