Simon 2021 Annual Report

Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)

January 1, 2023, and January 1, 2024. The grant date fair value of the awards of $26.3 million is being recognized as expense over the three-year vesting service period. Information regarding restricted stock awards is summarized in the following table for each of the years presented: For the Year Ended December 31, 2021 2020 2019

Shares of restricted stock awarded during the year, net of forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Weighted average fair value of shares granted during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annual amortization. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80,012 462,966 90,902

$ 115.34 $ 73.28 $ 181.94

$ 19,673 $ 11,660 $ 12,604 We recorded compensation expense, net of capitalization, related to restricted stock for employees and non- employee directors of approximately $20.2 million, $10.3 million, and $11.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. We also maintain a tax-qualified retirement 401(k) savings plan and offer no other post-retirement or post-employment benefits to our employees.

Exchange Rights Simon

Limited partners in the Operating Partnership have the right to exchange all or any portion of their units for shares of common stock on a one-for-one basis or cash, as determined by Simon’s Board of Directors. The amount of cash to be paid if the exchange right is exercised and the cash option is selected will be based on the trading price of Simon’s common stock at that time. At December 31, 2021, Simon had reserved 54,492,801 shares of common stock for possible issuance upon the exchange of units, stock options and Class B common stock. The Operating Partnership Limited partners have the right under the partnership agreement to exchange all or any portion of their units for shares of Simon common stock on a one-for-one basis or cash, as determined by Simon in its sole discretion. If Simon selects cash, Simon cannot cause the Operating Partnership to redeem the exchanged units for cash without contributing cash to the Operating Partnership as partners’ equity sufficient to effect the redemption. If sufficient cash is not contributed, Simon will be deemed to have elected to exchange the units for shares of Simon common stock. The amount of cash to be paid if the exchange right is exercised and the cash option is selected will be based on the trading price of Simon’s common stock at that time. The number of shares of Simon’s common stock issued pursuant to the exercise of the exchange right will be the same as the number of units exchanged. 9. Lease Income Fixed lease income under our operating leases includes fixed minimum lease consideration and fixed CAM reimbursements recorded on a straight-line basis. Variable lease income includes consideration based on sales, as well

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