600% 500% 400% 300% 200% 100% 0% -100% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Cumulative Total Return) STRONG HISTORICAL RETURNS TO STOCKHOLDERS m Simo n Property Group m  MSCI U .S. REIT Index (RMS) m S& 500 Total return for the 1 0-year period (1 2/31/0 – 12/31/1 1) was  583% for SPG, 163% for the RMS and 33% for the S&P 500. 2012 In Summary The year is off to an excellent start. In  addition to the Klépierre transaction, we  acquired our joint venture partner Farallon  Capital’s stake in 26 Mills assets for $1.5  billion. The acquisition will be immediately  accretive to FFO. This was a compelling opportunity for us to expand our investment in a portfolio of assets that we know well and  already manage. These properties have considerable consumer brand equity and large trade areas, and they generate  significant cash flow and total sales volume.  We now own 100% of several of these  high-quality, well-positioned properties, including Sawgrass Mills in Miami. Sawgrass Mills comprises over 2.2 million  square feet of outlet, value-oriented and  entertainment retailers and generates total annual retail sales in excess of $1  billion. This center is one of the most  visited tourist destinations in the U.S.  Upside exists throughout this portfolio  through redevelopment opportunities. For example, we are replacing an anchor  tenant at Sawgrass Mills with over 90,000  square feet of big box and small shop  space. In addition, a 36,000 square foot  expansion of The Colonnade Outlets at  Sawgrass Mills, which houses the luxury  outlet retailers, is well underway. We completed two successful offerings  in connection with the Klépierre and Mills  transactions – we sold 9,137,500 common  shares at $137.00 per share and sold $1.75  billion of senior unsecured notes in three  series. The weighted average interest rate  for the notes is 3.39% and the weighted  average term is 14.7 years. The coupon on  all three series of unsecured notes was the  lowest ever achieved by a REIT, once again  proving our industry leadership position. All  three rating agencies affirmed their SPG  ratings subsequent to the Klépierre and Mills transactions. Never willing to sacrifice  the balance sheet for the sake of growth is a  mantra from which I will not waiver. On March 16th, Simon Property Group  was added to the S&P 100 Index. We are  delighted and honored to be included in this prestigious index, a sub-set of the S&P 500 Index that measures the  performance of large cap companies in  the U.S. It is comprised of 100 major, blue  chip companies across multiple industry  groups. Simon Property Group is the only  real estate company in the index.  Our management team is highly respected  and capable. We have an infrastructure  that enables execution at consistently high  levels across all aspects of our business.  We want to improve, we are never satisfied,  and we like to compete. We will continue to seek additional op- portunistic transactions. I believe that we  have the expertise, the discipline, the capital,  and the organization to identify, evaluate and  successfully execute transactions better than  anyone else in the real estate business. We have the strongest balance sheet  in the industry. This affords us excellent  access to low-cost capital, which was evident earlier this month when we successfully accessed the debt and equity  markets to prudently fund the Klépierre  and Mills transactions. Our returns are growing, which will  enable us to pay higher dividends and  still reinvest in our portfolio, generating  higher returns and continuing to reduce  our cost of capital. I firmly believe that  we will continue to grow our company  and deliver excellent results, as we have  demonstrated consistently since our IPO in 1993. We are very well positioned  for 2012, with our portfolio of strong- performing, irreplaceable assets, and our  focus remains on enhancing long-term stockholder value. As a result of this, I am  confident we can deliver another year of  record earnings growth. I would like to thank all of my colleagues  at Simon Property Group for their contribution to our many achievements  in 2011 and ask for their continued dedication in producing a great 2012. Their hard work and commitment to our  Company is critical to our success.  I would also like to thank our Board  of Directors for their strategic guidance.  Linda Walker Bynoe will retire from our  Board at the 2012 Annual Meeting. Linda  has served the Company with dedication  throughout her nine year tenure and we  thank her for her many contributions.  I thank you, our stockholders, for your  continued support. We value your comments,  insights and questions. Sincerely, March 26, 2012 David Simon Chairman and Chief Executive Officer 8  Simon Property Group, Inc.