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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: 

  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%. 

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: 

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## Cumulative Total Return 

## Growing Dividend 

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. 

## Growth Strategy 

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. 

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. 

