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## Ten Years Later 

at Boca Raton. The transaction increases our presence in Boston, New York City, Atlanta and Southeast Florida. We also obtain a  % interest in a portfolio of  regional malls in growing middle markets in the Midwest. 

We invest $   million to renovate and expand several core properties and raise $  billion in well-timed capital market transactions. Recognizing opportunities available in the global market, we acquire an interest in Groupe BEG, a European development company with significant experience in European retail properties. The regional mall portfolio generates sales of $   per square foot in  . Port- folio occupancy improves to  .  % and total market capitalization grows to $  .  billion. FFO for   is $  .   per share. 

‘99 $_{We acquire a }$  % interest in   high quality regional malls—ten in Massachu- setts; two in New Hampshire and one each in Connecticut and Virginia—comprising  .   million square feet. These properties give us a preeminent position in the New England market. We continue to improve our core assets, investing $   million in development and redevelopment. Annual revenues approach $  .   billion. 

’00 The U.S. economy is experiencing a slowdown. Some retailers falter, but Simon’s revenue continues to increase— by  % to more than $  billion. Simon’s regional mall occupancy increases to  .  %. We raise $   million through the sale of non-core assets. We invest $  million in redevelopment projects. We launch the Simon Business Network to 

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Ten years later it has amassed a total of   properties in North America and interests in   assets in Europe. Its common stock price increased to .  as of year-end   and total market capi- talization has grown to   billion. 

generate supplemental revenue through the aggregation of products and services. 

‘01 We buy a  % interest in Fashion Valley Mall in San Diego and increase our interest to  % in one of our best- performing assets, The Fashion Centre at Pentagon City in the Washington, D.C. suburb of Arlington. Both acquisitions meet our asset test - high quality properties that are premier assets in their markets. We open one new project – Bowie Town Center in Bowie, Maryland, an open-air regional shopping center. Occupancy of the regional mall portfolio increases to  .  % and sales are $   per square foot in  . Total market capitalization at year-end is $  .  billion and the Company reports FFO of $  .  per share. 

‘02$_{ The Company completes a unique and }$ unprecedented transaction with two other public companies to acquire the real estate assets of Rodamco North America, N.V. We invest $  .   billion to acquire interests in nine malls new to the Simon portfolio as well as to increase ownership in four existing joint ventures. The transaction adds premier properties to the portfolio such as Copley Place in Boston, The Galleria in Houston and SouthPark Mall in Charlotte. 

We sell interests in  non-core assets for a net gain of $   million. We refinance $  .  billion of maturing mortgage debt and issue $   million of unsecured notes. We are added to the S&P   Index. We sell nine million shares of common stock 

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to accommodate the demand by index fund investors, raising $   million of net proceeds. 

‘03 $_{We continue our strategy of acquiring }$ highly-productive, premier retail assets – purchasing the remaining interest in The Forum Shops at Caesars in Las Vegas, increasing our interest in the Kravco portfolio of properties and buying a  % interest in Stanford Shopping Center in Palo Alto, California. 

We create a joint venture with The Rinascente Group, an Italian retailer and property owner, to own, manage and de- velop shopping centers in Italy. We begin construction on four new retail projects totaling  .  million square feet. We sell thirteen non-core assets, generating total proceeds of approximately $  million. We issue   million of new debt securi- ties. In December, we celebrate our  th anniversary as a public company. 

Improvement in regional mall portfolio quality since the IPO is demonstrated by increases in sales and occupancy. Sales in   are $   per square foot,  % higher than in  . The portfolio is  .  % occupied at year-end, an increase of  basis points from December  ,  . Total market capitalization grows to $   billion, up from $   billion at the IPO. 

Our progress toward the achievement of our strategy – to own high-quality re- tail real estate in the best markets – is best illustrated by the fact that we now own  of the top regional malls in the U.S. (malls generating over $   million in total annual sales), an approximate  % market share. 

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