Simon 2021 Annual Report

Results Overview Diluted earnings per share and diluted earnings per unit increased $3.25 during 2021 to $6.84 as compared to $3.59 in 2020. The increase in diluted earnings per share and diluted earnings per unit was primarily attributable to: • improved operating performance and solid core business fundamentals in 2021 and the impact of our acquisition, development and expansion activity, • increased income from unconsolidated entities of $563.0 million, or $1.50 per diluted share/unit, primarily due to favorable results of operations from our other platform investments, including earnings from our acquisition of an interest in J.C. Penney in the later part of 2020, and international investments which included the reversal of a previously established deferred tax liability at Klépierre resulting in a non-cash gain, of which our share was $118.4 million, partially offset by amortization of our excess investment in TRG, • increased other income of $65.3 million, or $0.17 per diluted share/unit, primarily due to an increase in lease settlement income of $39.8 million, or $0.11 per diluted share/unit, • a non-cash gain in 2021 on acquisitions and disposals of $203.4 million, or $0.54 per diluted share/unit, related to the disposition of our interest in three properties of $176.8 million, or $0.47 per diluted share/unit, a non-cash gain on the consolidation of one property of $3.7 million, or $0.01 per diluted share/unit, and net gains of $21.0 million, or $0.06 per diluted share/unit, related to property insurance recoveries of previously depreciated assets, primarily due to hurricane, flood and wind storm damage, • a net loss in 2020 of $115.0 million, or $0.32 per diluted share/unit, primarily related to impairment charges related to Klépierre, an unconsolidated investment, one consolidated property, and three joint venture properties, partially offset by gains from disposition activity, of $14.9 million, or $0.04 per diluted share/unit, • a non-cash gain in 2021 on the exchange of equity interests of $159.8 million, or $0.43 per diluted share/unit, • a gain in 2021 on the sale of equity interests of $18.8 million, or $0.05 per diluted share/unit, and • an unrealized favorable change in fair value of equity instruments of $11.5 million, or $0.03 per diluted share/unit, partially offset by • increased tax expense of $161.8 million, or $0.43 per diluted share/unit, primarily due to favorable year-over- year operations from other platform investments and a $55.9 million tax impact created by the gain on sale or exchange of equity interests transactions noted above, • increased interest expense in 2021 of $11.3 million, or $0.03 per diluted share/unit, due to Term Loan borrowings, which were subsequently replaced by notes issuances to fund our investment in TRG, and • a charge on early extinguishment of debt of $51.8 million, or $0.14 per diluted share/unit, in 2021. Portfolio NOI increased 22.3% in 2021 as compared to 2020. Average base minimum rent for U.S. Malls and Premium Outlets decreased 3.4% to $53.91 psf as of December 31, 2021, from $55.80 psf as of December 31, 2020. Ending occupancy for our U.S. Malls and Premium Outlets increased 2.1% to 93.4% as of December 31, 2021, from 91.3% as of December 31, 2020, primarily due to leasing activity, partially offset by 2020 tenant bankruptcy activity. Our effective overall borrowing rate at December 31, 2021 on our consolidated indebtedness decreased 12 basis points to 2.86% as compared to 2.98% at December 31, 2020. This decrease was primarily due to a decrease in the effective overall borrowing rate on variable rate debt of 11 basis points (1.20% at December 31, 2021 as compared to 1.31% at December 31, 2020) and a decrease in the effective overall borrowing rate on fixed rate debt of 22 basis points (3.28% at December 31, 2021 as compared to 3.50% at December 31, 2020). The weighted average years to maturity of our consolidated indebtedness was 7.8 years and 7.3 years at December 31, 2021 and 2020, respectively. Our financing activity for the year ended December 31, 2021 included: • borrowing $1.05 billion under the Operating Partnership’s $3.5 billion unsecured revolving credit facility, or Supplemental Facility, and using a portion of the proceeds to remove the encumbrances with respect to approximately $1.16 billion aggregate principal amount of mortgage loans, • decreasing our borrowings under the Operating Partnership’s global unsecured commercial paper note program, or the Commercial Paper program, by $123.0 million,

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