Simon Profit Jumps

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Indianapolis-based Simon Property Group Inc. (NYSE: SPG) is reporting first quarter Funds From Operations of $865 million, compared to $742 million during the same period a year earlier. The company says its Washington Prime Group Inc. spin-off deal is expected to close in the second quarter. April 22, 2014

News Release

INDIANAPOLIS, Ind. - Simon Property Group, Inc. (NYSE: SPG) today reported results for the quarter ended March 31, 2014.

Results for the Quarter

-Funds from Operations ("FFO") was $865.3 million, or $2.38 per diluted share, as compared to $741.9 million, or $2.05 per diluted share, in the prior year period. The FFO increase per diluted share was 16.1%.

-Net income attributable to common stockholders was $341.6 million, or $1.10 per diluted share, as compared to $283.1 million, or $0.91 per diluted share, in the prior year period.

"We are off to an outstanding start in 2014, reporting strong financial and operating results led by a 16.1% growth in FFO per diluted share," said David Simon, Chairman and CEO. "The increase in comparable property net operating income of 3.7% was driven by strong releasing spreads and occupancy gains, and demonstrates our ability to continue to increase our cash flow. We are increasing our full-year 2014 guidance and raising our dividend due to our strong first quarter performance and expectations for continued growth."

U.S. Malls and Premium Outlets Operating Statistics

As of

March 31, Year-over-Year

2014 2013 Change

Occupancy (1) 95.5% 94.7% + 80 basis points

Total Sales per sq. ft. (2) $576 $575 +0.2%

Base Minimum Rent per sq. ft. (1) $42.77 $41.05 +4.2%

Releasing Spread per sq. ft. (1)(3) $9.90 $7.00 + $2.90

Releasing Spread (percentage change) (1)(3) 19.5% 13.4% + 610 basis points

(1) Represents mall stores in Malls and all owned square footage in Premium Outlets.

(2) Trailing 12-month sales per square foot for mall stores less than 10,000 square feet in Malls and all owned square footage in Premium Outlets.

(3) Same space measure that compares opening and closing rates on individual spaces leased during trailing 12-month period.

Dividends

Today the Company announced that the Board of Directors declared a quarterly common stock dividend of $1.30 per share. This is an increase of $0.05 from the previous quarter, and a year-over-year increase of 13%. The dividend will be payable on May 30, 2014 to stockholders of record on May 16, 2014.

The Company also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on June 30, 2014 to stockholders of record on June 16, 2014.

Development Activity

During the first quarter, we started construction on three significant redevelopment and expansion projects:

-Stanford Shopping Center in Palo Alto, California - relocation of Bloomingdale's (opening October 2014), and a 120,000 square foot small shop expansion including restaurants and leading retailers

-Houston Galleria in Houston, Texas - relocation of Saks Fifth Avenue, and 105,000 square foot small shop expansion including restaurants and leading retailers

-Yeoju Premium Outlets in Yeoju (Seoul), Korea - 259,000 square foot expansion of this highly productive outlet center

Redevelopment and expansion projects, including the addition of new anchors, are underway at 29 properties in the U.S., Asia and Mexico.

Construction continues on four new Premium Outlets opening in 2014 and 2015:

-Charlotte Premium Outlets in Charlotte, North Carolina is a 400,000 square foot center scheduled to open in July of 2014. The Company owns a 50% interest in this project.

-Twin Cities Premium Outlets in Eagan, Minnesota is a 410,000 square foot center scheduled to open in August of 2014. The Company owns a 35% interest in this project.

-Montreal Premium Outlets in Mirabel, Quebec, Canada is a 360,000 square foot center scheduled to open in October of 2014. The Company owns a 50% interest in this project.

-Vancouver Designer Outlet in Vancouver, British Columbia, Canada is a 242,000 square foot center scheduled to open in April of 2015. The Company owns a 45% interest in this project.

The Company's share of the costs of all development and redevelopment projects currently under construction is approximately $1.5 billion.

Acquisitions and Dispositions

As previously announced in January 2014, we acquired our joint venture partners' remaining interest in Kravco Simon Investments, an owner of interests in a portfolio of 10 assets. This transaction included the remaining interest in King of Prussia Mall, bringing our ownership of that asset to 100 percent.

In January, we completed the acquisition of our joint venture partner's interest in Arizona Mills, as well as land in Oyster Bay, Long Island for future development. We now own 100% of Arizona Mills.

Financing Activity

In January, 2014, Simon Property Group, L.P., completed a $1.2 billion senior unsecured notes offering with a weighted average duration of 7.5 years and an average coupon rate of 2.975 percent. The offering was comprised of $600 million of 2.20 percent five-year senior notes and $600 million of 3.75 percent ten-year senior notes. Net proceeds from the public offering were used to repay debt and for general corporate purposes.

On April 7th, the Company announced that it had amended and extended its $4.0 billion unsecured multi-currency revolving credit facility. The newly refinanced facility, which can be increased to $5.0 billion during its term, will initially mature on June 30, 2018 and can be extended for an additional year to June 30, 2019 at the Company's sole option. The interest rate on the amended revolver is reduced to LIBOR plus 80 basis points from LIBOR plus 95 basis points. The Company has a combined $6.0 billion of total revolving credit capacity.

Washington Prime Group Inc.

Spin-Off Activities continue related to the announced spin-off transaction of our strip centers and smaller enclosed malls. During the first quarter, we announced the senior management team and Board of Directors for Washington Prime Group Inc. We continue to expect the transaction will be completed in the second quarter of 2014.

2014 Guidance

Today the Company increased its FFO guidance by $0.10 to a range of $9.60 to $9.70 per diluted share for the year ending December 31, 2014, and net income to a range of $4.55 to $4.65 per diluted share. This guidance does not take into consideration any impact from the previously mentioned spin-off of Washington Prime Group. The Company plans to update guidance once the spin-off transaction is completed.

About Simon Property Group

Simon Property Group, Inc. (NYSE: SPG) is an S&P 100 company and a global leader in the retail real estate industry. We currently own or have an interest in more than 325 retail real estate properties in North America, Asia and Europe comprising approximately 242 million square feet. We are headquartered in Indianapolis, Indiana and employ approximately 5,500 people in the U.S. For more information, visit simon.com.

Source: Simon Property Group Inc.