Simon 2020 Annual Report

“ I am extremely proud of the Simon team and how we navigated through the countless challenges thrown at us, with agility and resilience. The team stepped up for our shoppers, our tenants, our communities and each other. During these times is when the Simon team comes together and does its best work.”

SIMON PROPERTY GROUP ACQUISITION HOLDINGS • We recently sponsored a special purpose acquisition corporation (referred to as a “SPAC”) named Simon Property Group Acquisition Holdings, Inc. and listed the company on the New York Stock Exchange (NYSE: SPGS.U). The SPAC’s initial public offering resulted in gross proceeds of $345 million. • The SPAC was formed with the purpose of pursuing a business combination targeting innovative businesses that operate within Simon’s “Live, Work, Play, Stay, Shop” ecosystem. • The SPAC’s focus is on companies with an experienced, growth-oriented management team, with the ability to deliver revenue growth and a scalable market position. • Most importantly, the SPAC’s focus is on finding a target company that will benefit from Simon’s strengths, including our physical global real estate footprint, relationships with portfolio companies and others in various industries, and our expertise and market insights. • The SPAC structure allows us to extend our capital and make accretive investments that enhance our ecosystem. TAUBMAN REALTY GROUP • We completed the acquisition of an 80% ownership interest in TRG and are pleased to add their premier retail real estate of 24 regional, super-regional and outlet centers in the U.S. and Asia to our portfolio. • Under the terms of the transaction, we acquired all of Taubman Centers, Inc. common stock for $43.00 per share in cash, and the Taubman family sold approximately one- third of its ownership interest at the transaction price and remains a 20% partner in TRG. • Total consideration was approximately $3.45 billion and was funded with existing liquidity, including proceeds from our equity offering completed in November 2020. • Our investment will enhance the ability of TRG to establish innovative retail environments for consumers and to create new job prospects for the communities in which it operates. • We look forward to our partnership with Robert and William Taubman and working with the rest of the TRG team. We have been sharing ideas and implementing best practices to enhance the operations and cash flow of our properties.

five brands – Aéropostale, Nautica, Forever 21, Brooks Brothers and Lucky Brands. SPARC successfully strengthens the long-term value of brands through the implementation of industry-leading technology and dedicated leadership teams who are committed to grow each brand. • We entered a joint venture (our partners include Brookfield Asset Management, Inc. and ABG) that acquired the operations, intellectual property, and certain real estate of JCPenney out of bankruptcy. We believe in the JCPenney brand and, through our and our joint venture’s efforts, we can return this storied retailer to increasing sales and grow the company’s earnings. And importantly, we are very pleased to have saved more than 50,000 jobs across the country, continuing to do our part to support the local communities in which we operate. DIGITAL BRAND INVESTMENTS • In addition to our successful investments in traditional operating retailers, we continue to advance the digitization of our business through our investment in Rue Gilt Groupe (“RGG”). • RGG is the premier off-price e-commerce portfolio company, consisting of three complementary brands— Gilt, Rue La La and Shop Premium Outlets. RGG’s brands connect more than 35 million members with coveted designers and in-demand labels at exceptional value. RGG utilizes world-class technology and marketing to strategically support its brand partners and engage shoppers daily. • The Shop Premium Outlets online marketplace continues to grow under the direction of its dedicated management team and includes more than 3,000 leading retail brands and designers. • SPARC and its brands, RGG, and JCPenney generate in excess of $3.5 billion annually in digital sales. This clearly demonstrates the unique value that we have fostered in these additional non-real estate investments.

iv

SIMON PROPERTY GROUP, INC.

Made with FlippingBook - professional solution for displaying marketing and sales documents online