1063761--3/8/2006--SIMON_PROPERTY_GROUP_INC

related topics

{loan, real, estate}

{investment, property, distribution}

{tax, income, asset}

{debt, indebtedness, cash}

{condition, economic, financial}

{loss, insurance, financial}

{acquisition, growth, future}

{capital, credit, financial}

{cost, contract, operation}

{product, market, service}

{operation, natural, condition}

{competitive, industry, competition}

Risks Relating to Debt and the Financial Markets We have a substantial debt burden that could affect our future operations. We depend on external financings for our growth and ongoing debt service requirements. Adverse changes in our credit rating could affect our borrowing capacity and borrowing terms. Rising interest rates could adversely affect our debt service costs. Our hedging interest rate protection arrangements may not effectively limit our interest rate risk. Rising interest rates could also make our equity securities less attractive. Factors Affecting Real Estate Investments and Operations We face risks associated with the acquisition, development and expansion of properties. We are subject to risks related to owning retail real estate. 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. We are subject to risks that affect the general retail environment. We may not be able to lease newly developed Properties and renew leases and relet space at existing Properties. Certain Properties depend on anchor tenants to attract shoppers and could be adversely affected by the loss of a key anchor tenant. We face potential adverse effects from tenants' bankruptcies. Risks Relating to Joint Venture Properties We have limited control with respect to certain Properties partially owned or managed by third parties, which may adversely affect our ability to sell or refinance the Properties at the most advantageous time for us. We guarantee debt or otherwise provide 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. We expect to continue to pursue international expansion opportunities that 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. Terrorist attacks may adversely affect the value of our properties. Inflation may adversely affect our financial condition and results of operations. Risks Relating to Federal Income Taxes Our failure to qualify as a REIT would have adverse tax consequences to us and our stockholders.

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1063761--3/8/2006--SIMON_PROPERTY_GROUP_INC_/DE/