## Acquisitions 

## SUPPLEMENTAL REVENUES 

S imon Brand Ventures (SBV) and Simon Business Network (SBN) are initiatives launched by the Com- pany to generate supplemental revenues. Through a combination of new strategic alliances, new product introductions, and the integration of existing programs into newly acquired assets, SBV and SBN’s contribution to the Company’s bottom line increased by 17.5% in 2003 to $119.4 million. 

SBV completed the roll-out of the Simon Giftcard, and it quickly became the largest Visa pre-paid program in the world. Anticipating consumer demand, SBV broke into co-branding and affinity marketing by launching the first co-branded pre-paid university card in the country with the University of Texas-Austin. Simon Giftcard sales reached $340 million in 2003. 

With two billion customer visits a year, SBV’s programming has tapped into the potential of Simon’s properties functioning as a true marketing me- dium. Successful platforms in 2003 which drew thousands to Simon malls included a national teen tour, Simon DTour Live, “Behind-the-Scenes with American Idol”, Simon Evening of Giving and “Thank You Very Much” Holiday Sweepstakes. Simon also launched an innovative enterprise branding campaign “More Choices” which clearly differentiates Simon Malls. 

The Simon Kidgits Club platform was launched nationally with great success. It focused Simon‘s children’s programs on health and wellness, education, safety, and entertainment. In its first six months of operation, nearly 150,000 children and parents enrolled. The Simon Kidgits Club is designed to build brand loyalty and reinforce the mall as a family destination. 

Consistent with the Company’s growing worldwide presence, SBN implemented a plan to export its business-to-business services that generate tenant efficiencies. SBN became a shareholder in the London- based Tecient Business Network. Tecient is an independent services company focusing on revenue creation and new cost savings for property owners and their tenants worldwide with an initial focus in Europe and Australia. 

Acquired remaining ownership interest in The Forum Shops at Caesars • Purchased Stanford Shopping Center in Palo Alto, California • Increased ownership of Kravco portfolio 

Total costs for the five projects under construction are estimated at approximately $   million. Simon’s share of these costs is approximately $  million. 

We also have a pipeline of projects in the pre-development stage, some of which we anticipate could commence construction as early as the third quarter of  , including projects in Austin, Texas and in the rapidly growing Ft. Myers-Bonita Springs-Naples, Florida market. 

## ACQUISITIONS 

I n   we completed three domestic acquisitions – the remaining ownership of The Forum Shops at Caesars;  % ownership of Stanford Shopping Center in Palo Alto, California and an additional interest in the Kravco portfolio of properties. 

The Forum Shops at Caesars.  In March   the Company purchased the remaining ownership interest in The Forum Shops at Caesars in Las Vegas, Nevada for $   million in cash, and assumed the minority limited partner’s share of existing liabilities. 

Forum Shops is one of the top retail destinations in the world with a tenant mix comprised of a “who’s who” in retailing – Christian Dior, Emporio Armani, Gianni Versace, Gucci, Louis Vuitton, Dolce & Gabbana, Valentino, Salvatore Ferragamo, Escada, Fendi, MaxMara, St. John, Hugo Boss, DKNY, Tourneau, Judith Lieber and many more. Traffic at the center averages  ,  shoppers daily and annual tenant sales exceed $  ,   per square foot. A  ,  square foot expansion of The Forum Shops affronting Las Vegas Boulevard is scheduled to open in the fall of  , creating a multilevel luxury retail and restaurant addition to the project at an expected cost of   million. 

Stanford Shopping Center.  In August   we purchased a  % stake in this  .   million square foot unique, one-of-a-kind property for $   million. Stanford is one of the most successful shopping centers in the U.S., generating total sales in excess of $   million and sales per square foot in excess of $  . 

It is one of the few open-air, super-regional shopping centers in the country and is anchored by four major department stores—Neiman Marcus, Nordstrom, Bloomingdale’s and Macy’s. Stanford Shopping Center is an irreplaceable location with unparalleled demographics. We believe that there are significant opportunities to redevelop and reconfigure the center’s existing space to enhance profitability and retail offerings. We have a long history of improving cash flow at acquired centers, and we would expect to achieve the same here. 

The Kravco Portfolio.  In November   we increased our ownership interest in Kravco Investments L.P., a Philadelphia, Pennsylvania-based owner of regional malls, from approximately  % to approximately  %. We also increased our interest in Kravco Company, its affiliated property management company, from approximately  % to  %. 

Total consideration paid by the Company was approximately $   million, including the assumption of its pro rata share of mortgage indebtedness. The Com- pany’s partnership subsidiary, Simon Property Group, L.P., issued $  .   million of perpetual preferred operating partnership units as part of the consideration. 

The Kravco portfolio consists of interests in six regional malls, five of which are located in the Philadelphia metropolitan area. Included in the portfolio is an interest in the Plaza and Court at King of Prussia, one of the 

