From the Chairman & CEO 2  Simon Property Group, Inc. 2011 was a tremendous year for our Company. Our passionate  pursuit of operational excellence once again led to industry-leading  results and we exceeded our own expectations. Although we do not  always get where we want to on all aspects of our business, we do  know where we want to go and will work hard to get there.  Our consolidated revenue grew a robust 8.8% for the year, to $4.3  billion. We generated Funds from Operations (“FFO”) of $2.4 billion  in 2011, the highest ever recorded in the industry, and nearly $670  million higher than in 2010. Our 2011 FFO was nearly two times  greater than FFO reported by any other U.S. real estate company.  FFO per share was $6.89, an increase of 37% from the prior year  and also a record for our Company. We have now outgrown the  great recession and for that I am very proud of the organization. A continued focus on improving our busi- ness is ingrained in our culture. Our people  work tirelessly to increase profitability, to  improve the assets within our portfolio, and  to mine new opportunities for growth. This  mindset and our conservative financial  structure position us to deliver impressive  results, year after year. This focus is not  just within senior management, but ex- ists throughout our entire organization of  5,500 strong employees. Our high-quality portfolio continued to  strengthen in 2011 as demonstrated by  key financial and operational statistics: As a result of our increased profitability  and cash flow, our dividend is growing. In  the fourth quarter of 2011, we increased  our quarterly dividend from $0.80 to $0.90  per share, and in the first quarter of 2012,  we increased the dividend again, to $0.95  per share. I am pleased to report that the  SPG common stock dividend has grown  18.8% since the third quarter of 2011, and  we are on a trajectory to pay dividends of at  least $3.80 per share in 2012 — a record  amount for the Company. When we went public in December of  1993, our equity capitalization was $1.8  billion and we owned a portfolio of primarily  middle-market malls in the Midwest and  Texas. We could have been content with  our status quo or “our roots,” excelling at  that which we knew best — but were not.  We determined that this was not the best  way to create long-term shareholder value.  It is in our DNA at Simon Property Group to  grow, improve, and never be satisfied with  where we are.  Our common stock outperformed the rel- evant indices, generating a total return to  our stockholders of 33.6%, as compared  to the MSCI U.S. REIT Index (RMS) return of  8.7% and the S&P 500 Index return of 2.1%.  Our historical returns are quite impressive: We have redefined Simon Property  Group from a Midwest-based, mall-centric  company to a retail real estate company  that can operate anywhere in the world.  Over the past 18 years we have trans- formed our company through opportunistic  acquisitions, development, and opera- tional achievements to our position to- day as the world’s largest real estate company and one of the S&P 100’s most  valuable companies. We own a portfolio  of high-quality, irreplaceable assets that  encompass the entire retail spectrum —  malls, Premium Outlets ® , The Mills ® , and  community/lifestyle centers.  Cumulative Total Return 1 Year  5 Year  10 Year SPG 33.6% 54% 583% S&P 500  2.1%  –1%  33% RMS 8.7% –7% 163% Growth Strategy Growing Dividend  Total sales on a rolling 12 month basis  increased by 10.7% to $536 per square  foot.  Occupancy improved by 30 basis points  to 94.8%.  The releasing spread for the rolling 12  months was $5.20 per square foot, an  increase of 10.5%.  Comparable property net operating income (NOI) growth was 3.4%.