1063761--2/25/2010--SIMON_PROPERTY_GROUP_INC

related topics

{loan, real, estate}

{investment, property, distribution}

{capital, credit, financial}

{loss, insurance, financial}

{tax, income, asset}

{cost, contract, operation}

{condition, economic, financial}

{operation, international, foreign}

{debt, indebtedness, cash}

{product, market, service}

{acquisition, growth, future}

Risks Relating to Debt and the Financial Markets We have a substantial debt burden that could affect our future operations. Disruption in the credit markets or downgrades in our credit ratings may adversely affect our ability to access external financings for our growth and ongoing debt service requirements. Adverse changes in our credit rating could affect our borrowing capacity and borrowing terms. Our hedging interest rate protection arrangements may not effectively limit our interest rate risk. Factors Affecting Real Estate Investments and Operations We face risks associated with the acquisition, development and expansion of properties. Real estate investments are relatively illiquid. As owners of real estate, we can face liabilities for environmental contamination. Our efforts to identify environmental liabilities may not be successful. Ongoing economic conditions are adversely affecting the general retail environment. We may not be able to lease newly developed properties and renew leases and relet space at existing properties. Some of our properties depend on anchor stores or major tenants to attract shoppers and could be adversely affected by the loss of or a store closure by one or more of these tenants. We face potential adverse effects from the increasing number of tenant bankruptcies. Risks Relating to Joint Venture Properties We have limited control with respect to some properties that are partially owned or managed by third parties, which may adversely affect our ability to sell or refinance them. The Operating Partnership guarantees debt or otherwise provides support for a number of joint venture properties. Other Factors Affecting Our Business Our Common Area Maintenance (CAM) contributions may not allow us to recover the majority of our operating expenses from tenants. We face a wide range of competition that could affect our ability to operate profitably. Our international expansion may subject us to different or greater risk from those associated with our domestic operations. Some of our potential losses may not be covered by insurance. Risks Relating to Federal Income Taxes We have elected to be taxed as a REIT.

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1063761--2/25/2010--SIMON_PROPERTY_GROUP_INC_/DE/