Simon 2020 Annual Report

REDEVELOPMENT INCLUDING THE ADDITION OF MIXED-USE COMPONENTS • Due to the pandemic, we focused our redevelopment efforts and investments on projects nearing completion. • Our total investment in redevelopment projects completed during the year was more than $400 million, with an average cash-on-cash yield of over 8%. • We completed redevelopment projects of many former department store spaces. A number of redevelopment projects have since been restarted and will open in 2021 or early 2022. • We also continued to add mixed-use components to our market-leading centers with the openings of a multi-family residential complex in Austin, Texas, and a Residence Inn by Marriott in Long Island, New York. We currently have two AC Hotels by Marriott under construction scheduled to open this spring. • Although COVID-19 altered some of our redevelopment plans, the recapture and redevelopment of former department store sites will continue to be a significant opportunity for us to add mixed-use components such as residential, hotel and office that complement our unique destinations and great real estate. We have significant embedded value in our existing real estate portfolio and this will be a source of growth as that real estate is put to its best use. • At Northgate in Seattle, Washington, we will open the first phase of the project’s redevelopment in the summer of 2021 with the new NHL franchise Seattle Kraken’s practice facility. Northgate is a perfect example of a regional center being transformed into a vibrant mixed-use environment. By reinventing the former center, which was one of the original enclosed shopping centers developed in the 1950s, we are reconnecting the site to its surrounding neighborhood. This approach creates an integrated, mixed-use environment, which will feature a LEED Gold office building, multi- family residential, hotel, and health and wellness facilities. Northgate is a multi-phase project that will take several years to complete and will be a testament to our strategic vision to create an ecosystem where people want to live, work, play, stay and shop in well-located real estate. We have many other attractive redevelopment opportunities in our pipeline. Look for the re-emergence of the suburbanization of America to fuel our redevelopment plans. • Since 2012, we have invested over $8 billion to enhance our retail offerings and add complementary mixed-use components to our best-in-class properties.

INTERNATIONAL • We opened Malaga Designer Outlet, a 191,000 square foot outlet center located in Malaga, Spain, and Siam Premium Outlets Bangkok, a 264,000 square foot outlet center located in Bangkok, Thailand. • Significant expansions were completed at Gotemba Premium Outlets (178,000 square foot expansion) in Gotemba City (Tokyo), Japan, and Rinku Premium Outlets (110,000 square foot expansion) in Izumisano (Osaka), Japan. • Total gross costs invested in these four international development projects was approximately $500 million with an average cash yield on cost of 9%. • We have a new international development project under construction in Cannock, England, scheduled to open in April 2021 and an expansion of La Reggia Designer Outlet in Italy also under construction, scheduled to open in November 2021. • Our international portfolio includes 21 Premium Outlets and 10 Designer Outlets in 13 countries; a 22.4% interest in Klépierre (which owns approximately 150 properties in 15 European countries); and TRG’s four properties in Asia (two in China and two in South Korea). LEASING • Even in this environment, we executed more than 3,000 leases totaling over 12 million square feet of new permanent in-line and renewal leases across the portfolio. • It was a successful year for expansion of luxury and fashion brands as we executed multiple deals with many of the world's best brands. • We identified new and unique brands as part of our new business program resulting in new deals with digital-first businesses across the portfolio. • New restaurant openings continued in 2020 with popular options including curbside, take-out and delivery. • We also opened grocery retailers at our properties, expanding retail offerings for our shoppers at these locations. BRAND AND RETAILER INVESTMENTS • We have a long track record of making smart capital allocation decisions in investments. • In 2016, we partnered with Authentic Brands Group (ABG) to acquire Aéropostale out of bankruptcy. We made this investment because we believed in the brand and saw a unique opportunity to generate cash flow which has produced a significant return on our investment, and saved thousands of jobs in the process, which helps the local communities. • Our success with the Aéropostale investment resulted in the creation of the SPARC platform. Today, SPARC includes

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ANNUAL REPORT 2020

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