Simon 2021 Annual Report

properties may be negatively impacted by delays in opening and/or the performance of such non-retail uses. To the extent that our leasing goals are not achieved, we could be materially and adversely affected. Risks Relating to Real Estate Investments and Operations Our international activities may subject us to risks that are different from or greater than those associated with our domestic operations. As of December 31, 2021, we held interests in consolidated and joint venture properties that operate in Austria, Canada, France, Italy, Germany, Japan, Malaysia, Mexico, the Netherlands, South Korea, Spain, Thailand, and the United Kingdom. We also have an equity stake in Klépierre, a publicly traded European real estate company, which operates in 14 countries in Europe. Accordingly, our operating results and the value of our international operations may be impacted by any unhedged movements in the foreign currencies in which those operations transact and in which our net investment in those international operations is held. While we occasionally enter into hedging agreements to manage our exposure to changes in foreign exchange rates, these agreements may not eliminate foreign currency risk entirely. We may pursue additional investment, ownership, development and redevelopment/expansion opportunities outside the United States. Such international activities carry risks that are different from those we face with our domestic properties and operations. These risks include, but are not limited to: • adverse effects of changes in exchange rates for foreign currencies; • changes in foreign political and economic environments, regionally, nationally, and locally; • impact from international trade disputes and the associated impact on our tenants’ supply chain and consumer spending levels; • challenges of complying with a wide variety of foreign laws, including corporate governance, operations, taxes and litigation; • the risk that we, our employees and/or agents could violate anti-bribery, anti-corruption and international trade laws in the U.S., such as the U.S. Foreign Corrupt Practices Act, and certain foreign countries, such as the U.K. Bribery Act, which could result in criminal or civil sanctions and/or fines, negatively impact our reputation, or require us to incur significant expenses to investigate; • differing lending practices; • differences in cultures and consumer retail behavior; • changes in applicable laws and regulations in the United States that affect international operations; • changes in applicable laws and regulations in these foreign jurisdictions; • difficulties in managing international operations; • obstacles to the repatriation of earnings and cash; and • labor discord, political or civil unrest, acts of terrorism, epidemics and pandemics, including COVID-19, the fear of spread of contagious diseases, or the threat of international boycotts. Our international activities represented approximately 7.1% of consolidated net income and 8.5% of our net operating income, or NOI, for the year ended December 31, 2021. To the extent that we expand our international activities, the above risks could increase in significance, which in turn could have a material adverse effect on us. We face risks associated with the acquisition, development, redevelopment and expansion of properties. We regularly acquire and develop new properties and redevelop and expand existing properties, and these activities are subject to various risks. We may not be successful in pursuing acquisition, development or redevelopment/expansion opportunities. In addition, newly acquired, developed or redeveloped/expanded properties may not perform as well as expected, impacting our anticipated return on investment. We are subject to other risks in connection with any acquisition, development and redevelopment/expansion activities, including the following: • acquisition or construction costs of a project may be higher than projected, potentially making the project unfeasible or unprofitable;

16