<SUBMISSION>
<ACCESSION-NUMBER>0001104659-01-501840
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20010630
<FILING-DATE>20010814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SIMON PROPERTY GROUP INC /DE/
<CIK>0001063761
<ASSIGNED-SIC>6798
<IRS-NUMBER>046268599
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-14469
<FILM-NUMBER>1711135
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>115 WEST WASHINGTON STREET
<CITY>INDIANAPOLIS
<STATE>IN
<ZIP>46204
<PHONE>3176361600
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>CORPORATE PROPERTY INVESTORS INC
<STREET2>THRE DAG MANNARSKJOLD PLAZA 305 E. 47TH
<CITY>NEW YORK
<STATE>NY
<ZIP>10017
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CORPORATE PROPERTY INVESTORS INC
<DATE-CHANGED>19980610
</FORMER-COMPANY>
</FILER>
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SPG REALTY CONSULTANTS INC
<CIK>0001067173
<ASSIGNED-SIC>6798
<IRS-NUMBER>132838638
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-14469-01
<FILM-NUMBER>1711137
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>115 WEST WASHINGTON STREET
<STREET2>SUITE 15 EAST
<CITY>INDIANAPOLIS
<STATE>IN
<ZIP>46204
<PHONE>2124218200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>THREE DOG HAMMARSKJOLD PLAZA
<STREET2>305 EAST 47TH STREET
<CITY>NEW YORK
<STATE>NY
<ZIP>10017
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CORPORATE REALTY CONSULTANTS INC
<DATE-CHANGED>19980729
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>j1190_10q.htm
<DESCRIPTION>10-Q
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>
</head>

<body link=blue vlink=purple>

<div>




<hr size=2 width="100%" noshade color=black align=right>






<hr size=1 width="100%" noshade color=black align=right>



<p align=center><b><font size=5>UNITED
STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b><b><font size=2><br>
Washington, D.C.&nbsp; 20549</font></b></p>

<p><font size=2>&nbsp;</font></p>

<p align=center><b><font size=5>FORM
10-Q</font></b></p>

<dir>
<p align=center><b><font size=3>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934</font></b></p>
</dir>

<p align=center><b><font size=2>For the quarterly period ended June 30, 2001</font></b></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="45%" valign=top><b><font size=2>SIMON
  PROPERTY GROUP, INC.</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font size=2>SPG
  REALTY CONSULTANTS, INC.</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(Exact
  name of registrant as specified in its charter)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(Exact
  name of registrant as specified in its charter)</font></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>&nbsp;</td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>Delaware</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>Delaware</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(State
  of incorporation or organization)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(State
  of incorporation or organization)</font></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>&nbsp;</td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>001-14469</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>001-14469-01</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(Commission
  File No.)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(Commission
  File No.)</font></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>&nbsp;</td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>046268599</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>13-2838638</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(I.R.S.
  Employer Identification No.)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(I.R.S.
  Employer Identification No.)</font></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>&nbsp;</td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>National City Center</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>National City Center</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>115 West Washington Street, Suite 15 East</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>115 West Washington Street, Suite 15 East</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>Indianapolis, Indiana&nbsp;
  46204</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>Indianapolis, Indiana&nbsp;
  46204</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(Address
  of principal executive offices)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(Address
  of principal executive offices)</font></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>&nbsp;</td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><b><font   size=2>(317) 636-1600</font></b></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><b><font   size=2>(317) 636-1600</font></b></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top>
<hr size=1 width="100%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td  align=center width="45%" valign=top><font   size=2>(Registrant's
  telephone number, including area code)</font></td>
  <td  align=center width="10%" valign=top>&nbsp;</td>
  <td  align=center width="45%" valign=top><font   size=2>(Registrant's
  telephone number, including area code)</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>Indicate by check mark whether the
Registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the Registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; YES&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=2 face=Wingdings>&#253;</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=2 face=Wingdings>o</font></p>

<p><font size=2>As of August 1, 2001, 171,606,443 shares
of common stock, par value $0.0001 per share, 3,200,000 shares of Class B
common stock, par value $0.0001 per share, and 4,000 shares of Class C common
stock, par value $0.0001 per share of Simon Property Group, Inc. were
outstanding, and were paired with 1,748,104&nbsp;
shares of common stock, par value $0.0001 per share, of SPG Realty
Consultants, Inc.</font></p>





<hr size=1 width="100%" noshade color=black align=right>






<hr size=2 width="100%" noshade color=black align=right>


<page>


<p align=center><b><font size=2>SIMON PROPERTY GROUP, INC. AND<br>
SPG REALTY CONSULTANTS, INC.</font></b></p>

<p align=center><b><font size=3 face=Times>FORM 10-Q</font></b></p>

<p align=center><b><font size=2>INDEX</font></b></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="99%">
 <tr>
  <td width="100%" colspan=4 valign=bottom><b><font size=2>Part I - Financial
  Information</font></b></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="96%" colspan=3 valign=bottom><font size=2>Item 1:&nbsp; Financial Statements</font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2>Simon Property Group,
  Inc. and SPG Realty Consultants, Inc.:</font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedCombinedBalanceSheets"   title="Click to goto  Condensed Combined Balance Sheets ">Condensed Combined
  Balance Sheets as of June 30, 2001 and December 31, 2000</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedCombinedStatementsOfOperations"   title="Click to goto  Condensed Combined Statements of Operations ">Condensed
  Combined Statements of Operations for the three-month&nbsp; and six-month periods ended June 30, 2001
  and 2000</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedCombinedStatementsOfCashFlows"   title="Click to goto Condensed Combined Statements of Cash Flows">Condensed
  Combined Statements of Cash Flows for the six-month periods ended June 30,
  2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2>Simon Property Group,
  Inc.:</font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedConsolidatedBalanceSheets"   title="Click to goto Condensed Consolidated Balance Sheets">Condensed
  Consolidated Balance Sheets as of June 30, 2001 and December 31, 2000</a></font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedConsolidatedStatementsOfOperati"   title="Click to goto Condensed Consolidated Statements of Operations">Condensed
  Consolidated Statements of Operations for the three-month&nbsp; and six-month periods ended June 30, 2001
  and 2000</a></font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#CondensedConsolidatedStatementsOfCashFlo"   title="Click to goto Condensed Consolidated Statements of Cash Flows">Condensed
  Consolidated Statements of Cash Flows for the six-month periods ended June
  30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2>SPG Realty
  Consultants, Inc.:</font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#Scondensedconsolidatedbalancesheets"   title="Click to goto Condensed Consolidated Balance Sheets">Condensed
  Consolidated Balance Sheets as of June 30, 2001 and December 31, 2000</a></font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#Scondensedconsolidatedstatementsofoperat"   title="Click to goto Condensed Consolidated Statements of Operations">Condensed
  Consolidated Statements of Operations for the three-month and six-month
  periods ended June 30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=top>&nbsp;</td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#Scondensedconsolidatedstatementsofcashfl"   title="Click to goto Condensed Consolidated Statements of Cash Flows ">Condensed
  Consolidated Statements of Cash Flows for the six-month periods ended June
  30, 2001 and 2000</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2><a
  href="#NotesToUnauditedCondensedFinancialStatem"   title="Click to goto Notes to Unaudited Condensed Financial Statements">Notes
  to Unaudited Condensed Financial Statements</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2><a
  href="#Item2_ManagementsDiscussionAndAnalysisOf"   title="Click to goto Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations">Item
  2:&nbsp; Management's Discussion and
  Analysis of Financial Condition and Results of Operations</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2><a
  href="#Item3_QualitativeAndQuantitativeDisclosu"   title="Click to goto Item 3. Qualitative and Quantitative Disclosure About Market Risk">Item
  3: Qualitative and Quantitative Disclosure About Market Risk</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top><b><font size=2><a
  href="#PartIiOtherInformation"   title="Click to goto Part II - Other Information">Part II - Other Information</a></font></b></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=top>&nbsp;</td>
  <td width="96%" colspan=3 valign=top><font size=2><a
  href="#PartIiOtherInformation"   title="Click to goto Part II - Other Information">Items 1 through 6</a></font></td>
 </tr>
 <tr>
  <td width="100%" colspan=4 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" colspan=3 valign=top><b><font size=2><a   href="#Signature" title="Click to goto SIGNATURE">Signature</a></font></b></td>
  <td   width="49%">&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=13></td>
  <td width=313></td>
  <td width=343></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><b><font size=2>Simon
Property Group, Inc. and SPG Realty Consultants, Inc. </font></b><b><font size=2><br>
</font></b><a name=CondensedCombinedBalanceSheets><i><font size=2>&nbsp;Condensed Combined Balance Sheets </font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts)</font><font size=2><br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font   size=2>June
  30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><font   size=2>December
  31,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom><font size=2>ASSETS:</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investment properties,
  at cost</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font   size=2>13,156,049</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>13,045,133</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="56%" colspan=2 valign=bottom><font size=2>Less &#151; accumulated
  depreciation</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>1,669,250</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>1,480,719</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="56%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>11,486,799</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>11,564,414</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Cash and cash equivalents</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>180,359</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>223,111</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Tenant receivables and accrued
  revenue, net</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>281,720</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>302,198</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Notes and advances receivable
  from Management Company and affiliates</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>122,133</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>182,401</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investment in unconsolidated
  entities, at equity</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,280,068</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,315,836</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Goodwill, net</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>37,798</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>38,384</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Deferred costs and other assets,
  net</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>264,119</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>269,867</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Minority interest, net</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>44,637</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>41,734</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font   size=2>13,697,633</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>13,937,945</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>LIABILITIES:</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Mortgages and other indebtedness</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom><font   size=2>8,730,012</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom><font   size=2>8,728,582</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Accounts payable and accrued expenses</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>476,516</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>451,207</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Cash distributions and losses in
  partnerships and joint ventures, at equity</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>48,252</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>44,634</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Accrued dividends</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>18,487</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>18,266</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Other liabilities</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>104,480</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>227,552</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="54%" valign=bottom bgcolor="#cceeff"><font size=2>Total liabilities</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>9,377,747</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>9,470,241</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="54%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>COMMITMENTS AND
  CONTINGENCIES (Note 9)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>LIMITED PARTNERS'
  INTEREST IN THE OPERATING PARTNERSHIPS</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>871,406</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>913,482</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>LIMITED PARTNERS'
  PREFERRED INTEREST IN THE</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom><font size=2>SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>150,852</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>149,885</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom><font size=2>PREFERRED STOCK OF
  SUBSIDIARY (Liquidation value $350,000)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>340,000</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>339,866</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom><font size=2>SHAREHOLDERS' EQUITY:</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>CAPITAL STOCK OF SIMON PROPERTY
  GROUP, INC. (750,000,000 total shares authorized, $.0001 par value,
  237,996,000 shares of excess common stock):</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="54%" valign=bottom bgcolor="#cceeff"><font size=2>All series of preferred stock, 100,000,000 shares
  authorized, 5,879,896 and 5,881,116 issued </font><font size=2>and
  outstanding, respectively.&nbsp;
  Liquidation values $557,845 and $559,065, respectively.</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>537,229</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>538,684</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="54%" valign=bottom bgcolor="#cceeff"><font size=2>Common stock, $.0001 par value,
  400,000,000 shares authorized, 171,576,618 and 170,840,315 issued and
  outstanding, respectively</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="54%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="54%" valign=bottom bgcolor="#cceeff"><font size=2>Class B common stock, $.0001 par
  value, 12,000,000 shares authorized, 3,200,000 issued and outstanding</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="54%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="54%" valign=bottom><font size=2>Class C common stock, $.0001 par
  value, 4,000 shares authorized, issued and outstanding</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>CAPITAL STOCK OF SPG REALTY
  CONSULTANTS, INC.:</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="54%" valign=bottom><font size=2>Common stock, $.0001 par
  value,&nbsp; 7,500,000 shares authorized,
  1,747,806 and 1,740,443 issued and outstanding, respectively</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Capital in excess of par value</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,330,847</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,313,557</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Accumulated deficit</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>(823,323</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(715,288</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Accumulated other comprehensive
  income</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(8,405</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Unamortized restricted stock
  award</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>(26,220</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(19,982</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom><font size=2>Common stock held in treasury at
  cost, 2,098,555 shares</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>(52,518</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(52,518</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="58%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="54%" valign=bottom bgcolor="#cceeff"><font size=2>Total shareholders'
  equity</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,957,628</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,064,471</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom><font   size=2>13,697,633</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom><font   size=2>13,937,945</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=center></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="62%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="96%" colspan=9 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these
  statements.</font></i></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=13></td>
  <td width=13></td>
  <td width=384></td>
  <td width=7></td>
  <td width=109></td>
  <td width=26></td>
  <td width=7></td>
  <td width=96></td>
  <td width=21></td>
 </tr>
</table>

<p align=center><font size=3 face=Times>&nbsp;</font></p>

<page>


<p align=center><b><font size=2>Simon Property Group, Inc. and SPG Realty Consultants,
Inc.&nbsp; </font></b><b><font size=2><br>
</font></b><a name=CondensedCombinedStatementsOfOperations><i><font size=2>&nbsp;Condensed Combined Statements of Operations </font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=7 valign=bottom><font   size=2>For the Three Months Ended June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="19%" colspan=10 valign=bottom><font   size=2>For the Six Months Ended June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=7 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="19%" colspan=10 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=3 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=3 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=3 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=6 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>REVENUE:</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Minimum rent</font></td>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>307,386</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>294,265</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>614,517</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" colspan=4 valign=bottom bgcolor="#cceeff"><font   size=2>590,727</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Overage rent</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>7,130</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>6,718</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>17,013</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>18,756</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Tenant reimbursements</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>146,449</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>154,303</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>294,963</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>299,147</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Other income</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>27,305</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>32,373</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>52,453</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>56,880</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Total revenue</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>488,270</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>487,659</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>978,946</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>965,510</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>EXPENSES:</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Property operating</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>82,666</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>79,459</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>161,440</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>156,441</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>106,748</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>99,140</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>213,263</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>197,628</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Real estate taxes</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>48,721</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>49,729</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>101,513</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>98,151</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Repairs and maintenance</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>19,333</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>16,195</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>39,060</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>35,760</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Advertising and promotion</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>12,618</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>15,245</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>26,424</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>31,255</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Provision for credit losses</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>2,243</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>2,214</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>5,147</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>4,345</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Other</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>6,761</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>9,375</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>13,546</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>18,484</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="45%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Total operating expenses</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>279,090</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>271,357</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>560,393</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>542,064</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="45%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>OPERATING
  INCOME</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>209,180</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>216,302</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>418,553</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>423,446</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INTEREST
  EXPENSE</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>149,970</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>155,207</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>307,894</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>313,866</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>INCOME
  BEFORE MINORITY INTEREST</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>59,210</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>61,095</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>110,659</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>109,580</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>MINORITY
  INTEREST</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>(3,115</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>(2,283</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>(5,231</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>(4,717</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>GAIN
  (LOSS)&nbsp; ON SALES OF ASSETS, NET OF
  ASSET WRITE DOWNS OF $0,</font><font size=2>$</font><font   size=2>
  10,572, $0, AND $10,572, RESPECTIVELY</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(28</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>1,562</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>2,683</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>8,658</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>56,067</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>60,374</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>108,111</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>113,521</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  FROM UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>13,903</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>15,538</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>25,634</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>33,527</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE EXTRAORDINARY ITEMS AND</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>69,970</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>75,912</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>133,745</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>147,048</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>EXTRAORDINARY
  ITEMS - DEBT RELATED TRANSACTIONS</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(25</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>(440</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE (Note 5)</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>(1,638</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>(12,342</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE ALLOCATION TO LIMITED PARTNERS</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>69,970</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>75,912</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>132,082</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>134,266</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>LESS:</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>LIMITED PARTNERS' INTEREST IN THE
  OPERATING PARTNERSHIPS</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>13,878</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>15,532</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>25,620</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>26,271</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>PREFERRED DISTRIBUTIONS OF THE
  SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>2,835</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>2,817</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>5,747</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>5,634</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>PREFERRED DIVIDENDS OF SUBSIDIARY</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>7,334</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>7,334</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>14,668</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>14,668</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>NET
  INCOME</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>45,923</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>50,229</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>86,047</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>87,693</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>PREFERRED
  DIVIDENDS</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(9,177</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(9,217</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(18,362</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>(18,438</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>NET
  INCOME AVAILABLE TO COMMON SHAREHOLDERS</font></td>
  <td width="3%" colspan=2 valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>36,746</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>41,012</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>67,685</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" colspan=3 valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" colspan=3 valign=bottom><font   size=2>69,255</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom><font size=2>BASIC
  AND DILUTED EARNINGS PER COMMON PAIRED SHARE:</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="47%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Income before extraordinary items and cumulative effect
  of </font><font size=2>accounting change</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>0.21</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.24</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>0.40</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" colspan=5 valign=bottom bgcolor="#cceeff"><font   size=2>0.45</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="47%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="47%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="47%" colspan=3 valign=bottom><font size=2>Net income</font></td>
  <td width="3%" colspan=2 valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>0.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>0.24</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>0.39</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" colspan=4 valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" colspan=2 valign=bottom><font   size=2>0.40</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="47%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Net Income</font></td>
  <td width="3%" colspan=2 valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>45,923</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>50,229</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>86,047</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" colspan=3 valign=bottom><font size=2>$</font></td>
  <td  align=right width="6%" colspan=3 valign=bottom><font   size=2>87,693</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Cumulative effect of accounting
  change</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(1,995</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Unrealized gain (loss) on
  interest rate hedge agreements</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>111</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>(6,093</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>--</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net losses on derivative instruments
  reclassified from accumulated other comprehensive income into interest
  expense</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>905</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>1,663</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom><font size=2>Unrealized gain/(loss) on
  investment</font></td>
  <td  align=right width="10%" colspan=3 valign=bottom><font   size=2>(1,980</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom><font   size=2>5,659</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom><font   size=2>(1,980</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom><font   size=2>4,879</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="48%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Comprehensive Income</font></td>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>44,959</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>55,888</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>77,642</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>92,572</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=6 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="52%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=6 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="96%" colspan=22 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these
  statements.</font></i></td>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
 </tr>

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  <td width=27></td>
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  <td width=13></td>
  <td width=1></td>
  <td width=316></td>
  <td width=6></td>
  <td width=16></td>
  <td width=49></td>
  <td width=20></td>
  <td width=6></td>
  <td width=0></td>
  <td width=58></td>
  <td width=20></td>
  <td width=6></td>
  <td width=0></td>
  <td width=53></td>
  <td width=21></td>
  <td width=6></td>
  <td width=3></td>
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  <td width=0></td>
  <td width=42></td>
  <td width=3></td>
  <td width=18></td>
 </tr>
</table>

<p align=center><font size=3 face=Times>&nbsp;</font></p>

<page>


<p align=center><b><font size=2>Simon Property Group, Inc. and SPG Realty Consultants,
Inc.&nbsp; </font></b><font size=2><br>
</font><i><font size=2>&nbsp;<a name=CondensedCombinedStatementsOfCashFlows>Condensed Combined Statements of
Cash Flows</a></font></i></p>

<p align=center><font size=2>(Dollars
in thousands)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="29%" colspan=6 valign=bottom><font   size=2>For the Six Months Ended June 30,</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="29%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=3 valign=bottom><font   size=2>2000</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  OPERATING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="65%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net income</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>86,047</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>87,693</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Adjustments to reconcile net income to net cash provided
  by operating activities&#151;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp; &nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>218,383</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>202,733</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Extraordinary items</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>25</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>440</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cumulative effect of accounting change</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,638</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>12,342</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Gain on sales of assets, net of asset write downs of $0
  and</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>and $10,572, respectively</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,683</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(8,658</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Limited partners' interest in Operating Partnerships</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>25,620</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>26,271</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Preferred dividends of Subsidiary</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>14,668</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>14,668</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Preferred
  distributions of the SPG Operating Partnership</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>5,747</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>5,634</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Straight-line rent</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(4,652</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(8,416</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Minority interest</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>5,231</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>4,717</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Equity in income of unconsolidated entities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(25,634</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(33,527</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Changes in assets and liabilities&#151;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Tenant receivables and accrued revenue</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>31,094</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>44,615</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom><font size=2>Deferred costs and other assets</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(18,141</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>8,116</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accounts payable, accrued expenses and other liabilities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(55,473</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(84,202</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="61%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom><font size=2>Net cash provided by operating activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>281,870</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>272,426</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH FLOWS FROM
  INVESTING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Capital expenditures</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(152,342</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(226,106</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Cash from consolidation of ASP</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>8,156</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Net proceeds from sale of assets</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>19,550</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>108,993</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investments in unconsolidated entities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(20,433</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(103,876</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Distributions from unconsolidated entities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>112,014</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>185,650</font></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investments in and advances (to)/from Management Company
  and affiliate</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,230</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(1,821</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom><font size=2>Net cash used in investing activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(35,285</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(37,160</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  FINANCING ACTIVITIES:</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds from sales of common and preferred stock, net</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>4,163</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>341</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Minority interest distributions, net</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(7,613</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(8,234</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Preferred dividends of Subsidiary</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(14,668</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(14,668</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Preferred
  distributions of the SPG Operating Partnership</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(5,747</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(5,634</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Preferred dividends and distributions to shareholders</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(196,059</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(194,045</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Distributions to limited partners</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(66,859</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(66,070</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Mortgage and other note proceeds, net of transaction
  costs</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>665,134</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>790,007</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom><font size=2>Mortgage and other note principal payments</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(667,688</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom><font   size=2>(751,117</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="63%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="59%" valign=bottom bgcolor="#cceeff"><font size=2>Net cash used in financing activities</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(289,337</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(249,420</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="59%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>DECREASE IN CASH AND
  CASH EQUIVALENTS</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(42,752</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(14,154</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH AND CASH
  EQUIVALENTS, beginning of period</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>223,111</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>157,632</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH AND CASH
  EQUIVALENTS, end of period</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>180,359</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>143,478</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="67%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="95%" colspan=10 valign=bottom><i><font   size=2>The accompanying
  notes are an integral part of these statements.</font></i></td>
  <td width="4%" colspan=2 valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=419></td>
  <td width=7></td>
  <td width=95></td>
  <td width=27></td>
  <td width=8></td>
  <td width=64></td>
  <td width=8></td>
  <td width=21></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><b><font size=2>Simon Property Group,
Inc. </font></b><font size=2><br>
</font><a name=CondensedConsolidatedBalanceSheets><i><font size=2>Condensed Consolidated Balance
Sheets</font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><font   size=2>June
  30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font   size=2>December
  31,</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom><font size=2>ASSETS:</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Investment properties,
  at cost</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>13,148,889</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom bgcolor="#cceeff"><font   size=2>13,037,506</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Less &#151; accumulated
  depreciation</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>1,667,869</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>1,479,378</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>11,481,020</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>11,558,128</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Cash and cash equivalents</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>171,669</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>214,404</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Tenant receivables and accrued
  revenue, net</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>279,150</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>296,785</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Notes and advances receivable from
  Management Company and affiliates</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>122,133</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>182,401</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Note receivable from the SRC
  Operating Partnership (Interest at 8%, due 2009)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,460</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>29,425</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Investment in unconsolidated
  entities, at equity</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>1,273,148</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>1,308,838</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Goodwill, net</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>37,798</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>38,384</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Deferred costs and other assets,
  net</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>262,946</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>240,665</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Minority interest, net</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>44,637</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>42,377</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom><font   size=2>13,673,961</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom><font   size=2>13,911,407</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom><font size=2>LIABILITIES:</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Mortgages and other indebtedness</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>8,730,012</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom bgcolor="#cceeff"><font   size=2>8,728,582</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Accounts payable and accrued
  expenses</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>471,428</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>439,190</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cash distributions and losses in
  partnerships and joint ventures, at equity</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>48,252</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>44,634</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Accrued dividends</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>18,487</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>18,266</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Other liabilities</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>105,118</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>227,481</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" valign=bottom><font size=2>Total liabilities</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>9,373,297</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>9,458,153</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom><font size=2>COMMITMENTS AND
  CONTINGENCIES (Note 9)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom><font size=2>LIMITED PARTNERS'
  INTEREST IN THE SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>866,118</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>909,491</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom><font size=2>LIMITED PARTNERS'
  PREFERRED INTEREST IN THE</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>150,852</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>149,885</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>PREFERRED STOCK OF
  SUBSIDIARY (Liquidation value $350,000)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>340,000</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>339,866</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>SHAREHOLDERS' EQUITY
  (750,000,000 total shares authorized, $.0001 par value,</font><font   size=2>&nbsp; </font><font size=2>237,996,000
  shares of excess common stock):</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; &nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>All series of preferred stock,
  100,000,000 shares authorized, 5,879,896 and 5,881,116 issued and
  outstanding, respectively.&nbsp;
  Liquidation values $557,845 and $559,065, respectively.</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>537,229</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>538,684</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font><font   size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Common stock, $.0001 par value,
  400,000,000 shares authorized, 171,576,618</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>and 170,840,315 issued and
  outstanding, respectively</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Class B common stock, $.0001 par
  value, 12,000,000 shares authorized, 3,200,000</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>issued and outstanding</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>1</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>1</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Class C common stock, $.0001 par
  value, 4,000 shares authorized, issued and outstanding</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Capital in excess of par value</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>3,318,123</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>3,299,016</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accumulated deficit</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(824,722</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(711,395</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom><font size=2>Accumulated other comprehensive
  income</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>(8,405</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Unamortized restricted stock
  award</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(26,220</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(19,982</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom><font size=2>`</font></td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Common stock held in treasury at
  cost, 2,098,555 shares</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(52,329</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(52,329</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="64%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="60%" valign=bottom bgcolor="#cceeff"><font size=2>Total shareholders'
  equity</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,943,694</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,054,012</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="60%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>13,673,961</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom bgcolor="#cceeff"><font   size=2>13,911,407</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="68%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=center width="98%" colspan=8 valign=bottom><i><font   size=2>The accompanying
  notes are an integral part of these statements.</font></i></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=27></td>
  <td width=427></td>
  <td width=7></td>
  <td width=89></td>
  <td width=25></td>
  <td width=7></td>
  <td width=80></td>
  <td width=13></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center><b><font size=2>Simon Property Group,
Inc.</font></b><b><font size=2><br>
</font></b><a name=CondensedConsolidatedStatementsOfOperati><i><font size=2>Condensed Consolidated
Statements of Operations</font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom><font   size=2>For the Three Months Ended June 30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=5 valign=bottom><font   size=2>For the Six Months Ended June 30,</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>REVENUE:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Minimum rent</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>307,406</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>294,285</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>614,557</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>590,763</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Overage rent</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>7,130</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>6,718</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17,013</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>18,756</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Tenant reimbursements</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>146,450</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>154,303</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>294,964</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>299,147</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Other income</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>26,654</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>32,093</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>50,921</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>54,925</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="6%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="48%" colspan=3 valign=bottom><font size=2>Total revenue</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>487,640</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>487,399</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>977,455</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>963,591</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="6%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>EXPENSES:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Property operating</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>82,224</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>78,861</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>160,850</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>154,093</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>106,726</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>99,114</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>213,218</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>197,579</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Real estate taxes</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>48,714</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>49,736</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>101,501</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>98,121</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Repairs and maintenance</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>19,332</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>16,193</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>39,059</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>35,758</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Advertising and promotion</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>12,618</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>15,196</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>26,424</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>31,260</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Provision for credit losses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>2,248</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>2,214</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>5,152</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>4,345</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Other</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>6,608</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>7,363</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>13,504</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>14,988</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="47%" colspan=2 valign=bottom><font size=2>Total operating expenses</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>278,470</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>268,677</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>559,708</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>536,144</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="47%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>OPERATING
  INCOME</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>209,170</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>218,722</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>417,747</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>427,447</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>INTEREST
  EXPENSE</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>149,969</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>155,830</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>307,894</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>314,514</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE MINORITY INTEREST</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>59,201</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>62,892</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>109,853</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>112,933</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>MINORITY
  INTEREST</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(3,115</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,353</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(5,353</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(4,787</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>GAIN
  (LOSS) ON SALES OF ASSETS, NET OF ASSET WRITE DOWNS OF $0, $</font><font   size=2>10,572,
  $0, AND $10,572, RESPECTIVELY</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>(28</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>1,562</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>2,683</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>8,658</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>56,058</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>62,101</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>107,183</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>116,804</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>INCOME
  FROM UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>13,970</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>15,883</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>25,712</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>33,213</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE EXTRAORDINARY ITEMS AND</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>70,028</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>77,984</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>132,895</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>150,017</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>EXTRAORDINARY
  ITEMS - DEBT RELATED TRANSACTIONS</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(25</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>(440</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE (Note 5)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(1,638</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(12,342</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  BEFORE ALLOCATION TO LIMITED PARTNERS</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>70,028</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>77,984</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>131,232</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>137,235</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>LESS:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2 face=Arial>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>LIMITED PARTNERS' INTEREST IN THE
  SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>13,895</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>16,103</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>25,386</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>27,090</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>PREFERRED DISTRIBUTIONS OF THE
  SPG OPERATING PARTNERSHIP</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,835</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,817</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>5,747</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>5,634</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>PREFERRED DIVIDENDS OF SUBSIDIARY</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>7,334</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>7,334</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>14,668</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>14,668</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>NET
  INCOME</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>45,964</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>51,730</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>85,431</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>89,843</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>PREFERRED
  DIVIDENDS</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>(9,177</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>(9,217</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(18,362</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>(18,438</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>NET
  INCOME AVAILABLE TO COMMON SHAREHOLDERS</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>36,787</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>42,513</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>67,069</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>71,405</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>BASIC
  AND DILUTED EARNINGS PER COMMON SHARE:</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>Income before extraordinary items and cumulative effect
  of</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>accounting change</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>0.21</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.24</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>0.40</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>0.46</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>Net
  income</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>0.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>0.24</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>0.39</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>0.41</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>BASIC
  WEIGHTED AVERAGE SHARES OUTSTANDING</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>172,485</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>173,672</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>172,244</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>173,448</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom><font size=2>DILUTED
  WEIGHTED AVERAGE SHARES OUTSTANDING</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>172,805</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>173,815</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>172,484</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>173,570</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Net Income</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>45,964</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>51,730</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>85,431</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>89,843</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Cumulative effect of accounting
  change</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(1,995</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>-</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Unrealized gain (loss) on
  interest rate hedge agreements</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>111</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(6,093</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>-</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=top bgcolor="#cceeff"><font size=2>Net losses on derivative
  instruments reclassified from accumulated other comprehensive income into
  interest expense</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>905</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font   size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td  align=right width="3%" valign=bottom bgcolor="#cceeff"><font   size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,663</font></td>
  <td  align=right width="2%" valign=bottom bgcolor="#cceeff"><font   size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom><font size=2>Unrealized gain/(loss) on
  investment</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>(1,980</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>5,659</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(1,980</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>4,879</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Comprehensive Income</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>45,000</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>57,389</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>77,026</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>94,722</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="54%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=center width="98%" colspan=16 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these
  statements.</font></i></td>
  <td width="1%" valign=bottom><i><font size=2>&nbsp;</font></i></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=20></td>
  <td width=3></td>
  <td width=1></td>
  <td width=335></td>
  <td width=7></td>
  <td width=66></td>
  <td width=16></td>
  <td width=7></td>
  <td width=57></td>
  <td width=24></td>
  <td width=7></td>
  <td width=49></td>
  <td width=16></td>
  <td width=7></td>
  <td width=53></td>
  <td width=8></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><b><font size=2>Simon Property Group,
Inc.</font></b><font size=2><br>
</font><a name=CondensedConsolidatedStatementsOfCashFlo><i><font size=2>Condensed Consolidated
Statements of Cash Flows</font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="38%" colspan=6 valign=bottom><font   size=2>For
  the Six Months Ended June 30,</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="38%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="17%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=3 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  OPERATING ACTIVITIES:</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="57%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net income</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="16%" valign=bottom bgcolor="#cceeff"><font   size=2>85,431</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>89,843</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Adjustments to reconcile net income to net cash provided
  by operating activities&#151;</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp; &nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>218,337</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>202,684</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Extraordinary items</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>25</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>440</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cumulative effect of accounting change</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,638</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>12,342</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Gain on sales of assets, net of asset write downs of $0
  and</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>and $10,572, respectively</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(2,683</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(8,658</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Limited partners' interest in Operating Partnership</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>25,386</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>27,090</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Preferred dividends of Subsidiary</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>14,668</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>14,668</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Preferred
  distributions of the SPG Operating Partnership</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>5,747</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>5,634</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Straight-line rent</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(4,652</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(8,416</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Minority interest</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>5,353</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>4,787</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Equity in income of unconsolidated entities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(25,712</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(33,213</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Changes in assets and liabilities&#151;</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Tenant receivables and accrued revenue</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>32,584</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>46,779</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Deferred costs and other assets</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(19,999</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>8,828</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Accounts payable, accrued expenses and other liabilities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(58,168</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(89,403</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" valign=bottom bgcolor="#cceeff"><font size=2>Net cash provided by operating activities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>277,955</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>273,405</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="51%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  INVESTING ACTIVITIES:</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Capital expenditures</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(152,480</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(216,819</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Cash from consolidation of ASP</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>8,156</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds from sale of assets</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>19,550</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>108,993</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Investments in unconsolidated entities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(20,433</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(103,876</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Distributions from unconsolidated entities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>112,014</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>183,852</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Investments in and advances (to)/from Management Company
  and affiliate</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(2,230</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(1,821</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Loan to the SRC
  Operating Partnership</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>4,136</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(12,478</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="51%" valign=bottom><font size=2>Net cash used in investing activities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(31,287</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(42,149</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="51%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  FINANCING ACTIVITIES:</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Proceeds from sales of common and preferred stock, net</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>4,097</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>292</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Minority interest distributions, net</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(7,613</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(8,234</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Preferred dividends of Subsidiary</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(14,668</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(14,668</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Preferred
  distributions of the SPG Operating Partnership</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(5,747</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(5,634</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Preferred dividends and distributions to shareholders</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(196,059</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(194,045</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Distributions to limited partners</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(66,859</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(66,070</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Mortgage and other note proceeds, net of transaction
  costs</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>665,134</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>790,007</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom><font size=2>Mortgage and other note principal payments</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom><font   size=2>(667,688</font></td>
  <td width="5%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom><font   size=2>(751,007</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="55%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" valign=bottom bgcolor="#cceeff"><font size=2>Net cash used in financing activities</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(289,403</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(249,359</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="51%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>DECREASE IN CASH AND
  CASH EQUIVALENTS</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(42,735</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(18,103</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH AND CASH
  EQUIVALENTS, beginning of period</font></td>
  <td  align=right width="17%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>214,404</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>154,924</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH AND CASH
  EQUIVALENTS, end of period</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="16%" valign=bottom bgcolor="#cceeff"><font   size=2>171,669</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>136,821</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="59%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="17%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="98%" colspan=11 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these
  statements.</font></i></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

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 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=364></td>
  <td width=7></td>
  <td width=113></td>
  <td width=40></td>
  <td width=7></td>
  <td width=16></td>
  <td width=89></td>
  <td width=13></td>
 </tr>
</table>


<p align=center><b><font size=2>&nbsp;</font></b></p>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<p align=center><b><font size=2>SPG Realty Consultants,
Inc.</font></b><font size=2><br>
</font><a name=Scondensedconsolidatedbalancesheets><i><font size=2>Condensed Consolidated Balance
Sheets</font></i></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=2 valign=bottom><font   size=2>June
  30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font   size=2>December
  31,</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom><font size=2>ASSETS:</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Cash and cash equivalents</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>8,690</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font   size=2>8,707</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Accounts receivable (including
  $2,312 and $2,984 from related parties)</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>3,532</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>8,394</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="49%" valign=bottom bgcolor="#cceeff"><font size=2>Total current assets</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>12,222</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>17,101</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Investment properties, at cost, less accumulated
  depreciation of $1,381 </font><font size=2>and $1,341,
  respectively</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>5,780</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>6,286</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Investment in unconsolidated
  entities, at equity</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>6,921</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>6,998</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Investment in technology
  initiatives</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>23,583</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Other noncurrent assets</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>469</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,896</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>25,392</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom><font   size=2>56,864</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom><font size=2>LIABILITIES:</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accounts payable and accrued
  expenses (including $63 and $4,855 from related parties)</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,708</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom bgcolor="#cceeff"><font   size=2>12,346</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom><font size=2>Total current liabilities</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>4,708</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>12,346</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Note payable to the SPG Operating
  Partnership (Interest at 8%, due 2009)</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,460</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>29,425</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Minority interest</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>643</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="49%" valign=bottom bgcolor="#cceeff"><font size=2>Total liabilities</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>6,168</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>42,414</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>COMMITMENTS AND
  CONTINGENCIES (Note 9)</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>LIMITED PARTNERS'
  INTEREST IN THE SRC OPERATING PARTNERSHIP</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>5,288</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,991</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>SHAREHOLDERS' EQUITY:</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Common stock, $.0001 par value,&nbsp; 7,500,000 shares authorized, 1,747,806</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>and 1,740,443 issued and
  outstanding, respectively</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Capital in excess of par value</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>27,832</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>29,647</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accumulated deficit</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(13,707</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(18,999</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom><font size=2>Less common stock held in
  treasury at cost, 20,986 shares.</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>(189</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>(189</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom><font size=2>Total shareholders'
  equity</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>13,936</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom><font   size=2>10,459</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>25,392</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="15%" valign=bottom><font   size=2>56,864</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=center width="95%" colspan=8 valign=bottom><i><font   size=2>The accompanying
  notes are an integral part of these statements.</font></i></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=27></td>
  <td width=27></td>
  <td width=348></td>
  <td width=7></td>
  <td width=121></td>
  <td width=27></td>
  <td width=7></td>
  <td width=110></td>
  <td width=29></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><b><font size=2>SPG Realty Consultants,
Inc.</font></b><font size=2><br>
</font><a name=Scondensedconsolidatedstatementsofoperat><i><font size=2>Condensed Consolidated
Statements of Operations</font></i></a></p>

<p align=center><font size=2>(In
thousands, except per share amounts)</font></p>

<p><font size=3 face=Times>&nbsp;</font></p>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom><font   size=2>For the Three Months Ended June 30,</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom><font   size=2>For the Six Months Ended June 30,</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="7%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>REVENUE:</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Rental income</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>77</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>91</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>153</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>197</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom><font size=2>Marketing and fee income</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>2,450</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>4,238</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Insurance premiums</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>544</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,061</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom><font size=2>Other income</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>103</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>50</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>221</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>76</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="40%" valign=bottom bgcolor="#cceeff"><font size=2>Total revenue</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>724</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,591</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,435</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>4,511</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="40%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>EXPENSES:</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>23</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>26</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>46</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>49</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Technology initiatives startup
  costs</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,277</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>90</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>3,138</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom><font size=2>Insurance losses</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>641</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>1,127</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>General
  and administrative expenses</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>23</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,075</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>36</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>4,397</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="44%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="40%" valign=bottom><font size=2>Total operating expenses</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>687</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>4,378</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>1,299</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>7,584</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="40%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>OPERATING
  INCOME (LOSS)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>37</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(1,787</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>136</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>(3,073</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>INTEREST
  EXPENSE</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>28</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>10</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>581</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>280</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>PLUS:</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>MINORITY
  INTEREST</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>70</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>122</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>70</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>GAIN
  ON LAND SALES, NET</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,251</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>INCOME
  (LOSS) BEFORE UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>9</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(1,727</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>928</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>(3,283</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>INCOME
  (LOSS) FROM UNCONSOLIDATED ENTITIES</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>(67</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>(345</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>(78</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>314</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>INCOME
  (LOSS) BEFORE ALLOCATION TO LIMITED PARTNERS</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(58</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,072</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>850</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,969</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>LESS--LIMITED
  PARTNERS' INTEREST IN</font><font size=2>THE
  SRC OPERATING PARTNERSHIP</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(17</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(571</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>234</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp; </font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(819</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>NET
  INCOME (LOSS)</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>(41</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>(1,501</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>616</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>(2,150</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>BASIC
  AND DILUTED EARNINGS PER COMMON SHARE:</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="40%" valign=bottom><font size=2>Net income (loss)</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom><font   size=2>(0.02</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>(0.86</font></td>
  <td width="4%" valign=bottom><font size=2>)</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>0.36</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>(1.24</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="40%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>BASIC
  WEIGHTED AVERAGE SHARES OUTSTANDING</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>1,725</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>1,737</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>1,722</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>1,734</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom><font size=2>DILUTED
  WEIGHTED AVERAGE SHARES OUTSTANDING</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>1,725</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom><font   size=2>1,737</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>1,725</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>1,734</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="48%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=center width="98%" colspan=14 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these statements.</font></i></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>

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  <td width=283></td>
  <td width=7></td>
  <td width=73></td>
  <td width=32></td>
  <td width=7></td>
  <td width=49></td>
  <td width=32></td>
  <td width=7></td>
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</table>


<p align=center><b><font size=2>&nbsp;</font></b></p>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center><b><font size=2>SPG
Realty Consultants, Inc. </font></b><b><font size=2><br>
</font></b><i><font size=2>&nbsp;<a name=Scondensedconsolidatedstatementsofcashfl>Condensed Consolidated Statements
of Cash Flows </a></font></i></p>

<p align=center><font size=2>(Dollars
in thousands)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="39%" colspan=6 valign=bottom><font   size=2>For the Six Months Ended June 30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="39%" colspan=6 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="10%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=3 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=center width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="10%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  OPERATING ACTIVITIES:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="55%" colspan=4 valign=bottom bgcolor="#cceeff"><font size=2>Net income (loss)</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom bgcolor="#cceeff"><font   size=2>616</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,150</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Adjustments to reconcile net income (loss) to net cash
  provided by (used in) operating activities&#151;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp; &nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation and amortization</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>46</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>49</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom><font size=2>Gain on sales of assets, net</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>(1,251</font></td>
  <td width="10%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Limited partners' interest in SRC Operating Partnership</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>234</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(819</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom><font size=2>Minority interest</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>(122</font></td>
  <td width="10%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>(70</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Equity in income of unconsolidated entities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>78</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(314</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Changes in assets and liabilities&#151;</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accounts receivable</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(1,490</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(2,876</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom><font size=2>Other non-current assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>1,859</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accounts payable and accrued expenses</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>2,692</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>5,201</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="51%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom><font size=2>Net cash provided (used in) by operating activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>2,662</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>(979</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom><font size=2>CASH FLOWS FROM
  INVESTING ACTIVITIES:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Investment in technology initiatives and other capital
  expenditures</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(115</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(9,287</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Cash included in transfer of assets to SPG Operating
  Partnership</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>(152</font></td>
  <td width="10%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Net proceeds from
  sales of assets</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,658</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Distributions from unconsolidated entities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>1,798</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="49%" valign=bottom bgcolor="#cceeff"><font size=2>Net cash provided by (used in) investing activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,391</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>(7,489</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom>&nbsp;</td>
  <td width="49%" valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom bgcolor="#cceeff"><font size=2>CASH FLOWS FROM
  FINANCING ACTIVITIES:</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Proceeds from sales of common stock, net</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>66</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>49</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom bgcolor="#cceeff"><font size=2>Loan from the SPG Operating Partnership</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(4,136</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>12,478</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom><font size=2>Mortgage and other note proceeds, net of transaction
  costs</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>(110</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="53%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="7%" colspan=4 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="49%" valign=bottom bgcolor="#cceeff"><font size=2>Net cash (used in) provided by financing activities</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(4,070</font></td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff"><font   size=2>12,417</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom><font size=2>CHANGE IN CASH AND
  CASH EQUIVALENTS</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>(17</font></td>
  <td width="10%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>3,949</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom><font size=2>CASH AND CASH
  EQUIVALENTS, beginning of period</font></td>
  <td  align=right width="15%" colspan=2 valign=bottom><font   size=2>8,707</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom><font   size=2>2,708</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="10%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="10%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom><font size=2>CASH AND CASH EQUIVALENTS,
  end of period</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="14%" valign=bottom><font   size=2>8,690</font></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" colspan=2 valign=bottom><font size=2>$</font></td>
  <td  align=right width="11%" valign=bottom><font   size=2>6,657</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="57%" colspan=5 valign=bottom>&nbsp;</td>
  <td  align=right width="15%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="10%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=3 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td  align=center width="96%" colspan=11 valign=bottom><i><font   size=2>The accompanying notes are an integral part of these
  statements.</font></i></td>
  <td width="3%" valign=bottom><i><font size=2>&nbsp;</font></i></td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=13></td>
  <td width=347></td>
  <td width=7></td>
  <td width=105></td>
  <td width=72></td>
  <td width=8></td>
  <td width=8></td>
  <td width=80></td>
  <td width=21></td>
 </tr>
</table>

<p align=center><b><font size=2>&nbsp;</font></b></p>

<page>


<p align=center>&nbsp;</p>

<p align=center><b><font size=2>SIMON PROPERTY GROUP, INC. AND</font></b><font size=2><br>
<b>SPG
REALTY CONSULTANTS, INC.</b></font></p>

<p align=center><a name=NotesToUnauditedCondensedFinancialStatem><b><font size=2>Notes to Unaudited Condensed
Financial Statements</font></b></a></p>

<p align=center><font size=2>(Dollars
in thousands, except per share amounts and where indicated as in billions)</font></p>

<p><font size=2>&nbsp;</font></p>

<p><b><font size=2>Note 1 &#150; Organization</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simon
Property Group, Inc. (&quot;SPG&quot;), a Delaware corporation, is a
self-administered and self-managed real estate investment trust
(&quot;REIT&quot;) under the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;). Each share of common stock of SPG is paired (&#147;Paired Shares&#148;) with a
beneficial interest in 1/100<sup>th</sup> of a share of common stock of SPG
Realty Consultants, Inc., also a Delaware corporation (&#147;SRC&#148; and together with
SPG, the &#147;Companies&#148;).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simon
Property Group, L.P. (the &#147;SPG Operating Partnership&#148;) is the primary
subsidiary of SPG. Units of ownership interest (&#147;Units&#148;) in the SPG Operating
Partnership are paired with a Unit in SPG Realty Consultants, L.P. (&#147;Paired
Units&#148;) (the &#147;SRC Operating Partnership&#148; and together with the SPG Operating
Partnership, the &#147;Operating Partnerships&#148;). The SRC Operating Partnership is
the primary subsidiary of SRC. The Companies together with the Operating
Partnerships are hereafter referred to as &#147;Simon Group&#148;.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SPG,
primarily through the SPG Operating Partnership, is engaged in the ownership,
operation, management, leasing, acquisition, expansion and development of real
estate properties, primarily regional malls and community shopping centers. As
of June 30, 2001, SPG and the SPG Operating Partnership owned or held an
interest in 250 income-producing properties in the United States, which
consisted of 164 regional malls, 72 community shopping centers, five specialty
retail centers, four office and mixed-use properties and five value-oriented
super-regional malls in 36 states (the &#147;Properties&#148;) and six additional retail
real estate properties operating in Europe and Canada. SPG and the SPG
Operating Partnership also owned an interest in one property currently under
construction and 11 parcels of land held for future development, which together
with the Properties are hereafter referred to as the &#147;Portfolio
Properties&#148;.&nbsp; At June 30, 2001 and
December 31, 2000, the Companies&#146; direct and indirect ownership interests in
the Operating Partnerships were 72.5% and 72.4% respectively.&nbsp; The SPG Operating Partnership also holds
substantially all of the economic interest in M.S. Management Associates, Inc.
(the &#147;Management Company&#148;).&nbsp;&nbsp; Effective
January 1, 2001, the Management Company elected to become a taxable REIT
subsidiary (&#147;TRS&#148;).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SRC,
primarily through the SRC Operating Partnership, engages primarily in
activities that capitalize on the resources, customer base and operating
activities of SPG, which could not be engaged in by SPG without potentially
impacting its status as a REIT.&nbsp; These
activities included a technology subsidiary, clixnmortar.&nbsp; Minority interest on the SRC balance sheet
as of December 31, 2000 represents an 8.3% outside ownership interest in
clixnmortar. Effective March 31, 2001, the SPG Operating Partnership purchased
clixnmortar from the SRC Operating Partnership at its carrying value utilizing
the inter-company note.&nbsp; SRC also has
noncontrolling interests in two joint ventures which each own land held for
sale, which are located adjacent to Properties.&nbsp; The SPG Operating Partnership subsequently contributed
clixnmortar to the Management Company in exchange for preferred stock of the
Management Company.&nbsp; During 2000, SRC&#146;s
wholly-owned insurance subsidiary, Marigold Indemnity, Ltd (&#147;Marigold&#148;), began
providing general liability insurance coverage to a third party that provides
outsourcing services at certain properties.&nbsp;
Marigold reinsures the majority of the risk through a third party
indemnity company.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simon
Brand Ventures, LLC (&#147;SBV&#148;) and Simon Business Network (&#147;SBN&#148;) continue to
expand upon certain mall marketing initiatives to take advantage of Simon
Group&#146;s size and tenant relationships, primarily through strategic corporate
alliances. SBV is focused on leveraging Simon Group&#146;s 100 million unique
shoppers and their 2 billion annual shopping visits to contribute to Simon
Group&#146;s second-curve revenue strategy.&nbsp;
The SBV concept and initiatives were started in 1997 to create a new
medium for connecting consumers with retailers and sponsors by developing a
combination of shopping, entertainment and community.&nbsp; SBN is focused on leveraging Simon Group&#146;s assets to create new
businesses which will drive greater value to its Portfolio Properties,
retailers and other developers and generate new sources of revenue for Simon
Group.&nbsp; SBN&#146;s strategy is to provide a
competitively valued, broad-based offering of products and services via a
unique and dominant marketplace and service network focused on the real estate
industry and their tenants.&nbsp; SBV has
also entered into cost sharing arrangements with the Management Company similar
to those of the SPG Operating Partnership.&nbsp;
Effective January 1, 2001, the SPG Operating Partnership purchased SBV
from SRC at approximately its carrying value utilizing the intercompany note.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On April 1, 2001, SPG, LP became
the managing general partner of SPG Administrative Services Partnership
L.P.&nbsp; (&#147;ASP&#148;). In addition, SPG LP
acquired an additional 24% partnership interest in ASP from the Management
Company.&nbsp; As a result, SPG, LP gained
control of ASP consistent with the Simon Group&#146;s consolidation principles. ASP
was previously consolidated as part of the Management Company.&nbsp; The change in control and consolidation of
ASP will not have a material impact on the results of operations of Simon Group
and the other aspects of the transaction were not material.&nbsp;&nbsp; ASP was organized to provide for the
allocation of the salaries and other costs associated with employees who
perform services for the Management Company and its affiliates as well as
multiple entities controlled by SPG&nbsp;
L.P.</font></p>

<p><b><font size=2>Note 2 - Basis of Presentation</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
accompanying condensed financial statements are unaudited; however, they have
been prepared in accordance with generally accepted accounting principles for
interim financial information and in conjunction with the rules and regulations
of the Securities and Exchange Commission. Accordingly, they do not include all
of the disclosures required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments
necessary for fair presentation, consisting of only normal recurring
adjustments, have been included. The results for the interim period ended June
30, 2001 are not necessarily indicative of the results to be obtained for the
full fiscal year. These unaudited financial statements have been prepared in
accordance with the accounting policies described in the Companies&#146; combined
annual report on Form 10-K for the year ended December 31, 2000, except for the
change in accounting policy discussed in Note 5, and should be read in
conjunction therewith.&nbsp; Investments in
securities classified as available for sale are reflected in deferred costs and
other assets in the accompanying balance sheets at market value with the
changes in market value reflected as comprehensive income or loss in
shareholders&#146; equity.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
accompanying condensed combined financial statements include SPG and SRC and
their subsidiaries. The accompanying condensed consolidated financial
statements for SPG and SRC include SPG and its subsidiaries and SRC and its
subsidiaries, respectively. All significant intercompany amounts have been
eliminated.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
operating results of the Operating Partnerships are allocated to the Companies
based first on the Companies' preferred unit preference, if applicable, and
then on their remaining ownership interests in the Operating Partnerships
during the period. The Companies&#146; remaining weighted average ownership
interests in the Operating Partnerships for both the six-month periods ended
June 30, 2001 and June 30, 2000 was 72.4%.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain
reclassifications of prior period amounts have been made in the financial
statements to conform to the 2001 presentation. These reclassifications have no
impact on the net operating results previously reported.</font></p>

<p><b><font size=2>Note 3 -&nbsp; Per Share
Data</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic
earnings per share is based on the weighted average number of shares of common
stock outstanding during the period and diluted earnings per share is based on
the weighted average number of shares of common stock outstanding combined with
the incremental weighted average shares that would have been outstanding if all
dilutive potential common shares would have been converted into shares at the
earliest date possible. The following table sets forth the computation for the
Companies&#146; basic and diluted earnings per share.&nbsp; The extraordinary items and cumulative effect of accounting
change amounts presented in the reconciliation below represent the common
shareholders&#146; pro rata share of these items.</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="44%" valign=bottom>&nbsp;</td>
  <td  align=center width="25%" colspan=5 valign=bottom><font   size=2>For
  the Three Months Ended <br>
  June 30,</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom><font   size=2>For
  the Six Months Ended June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="44%" valign=bottom>&nbsp;</td>
  <td  align=center width="25%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="44%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="44%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of income before extraordinary items and cumulative effect of
  accounting change</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>36,746</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>41,012</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>68,889</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>78,511</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of extraordinary items</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(18</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(319</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of cumulative effect of accounting change</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(1,186</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(8,937</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Net Income available
  to Common Shareholders</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>36,746</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>41,012</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>67,685</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>69,255</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Weighted Average
  Shares Outstanding &#150; Basic</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>172,485,020</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>173,672,074</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>172,244,332</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>173,447,511</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Effect of stock
  options</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>319,616</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>143,016</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>239,714</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>122,045</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom bgcolor="#cceeff"><font size=2>Weighted Average
  Shares Outstanding&nbsp; - Diluted</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>172,804,636</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>173,815,090</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>172,484,046</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>173,569,556</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="44%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p>&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="47%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom><font   size=2>For
  the Three Months Ended June 30,</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=5 valign=bottom><font   size=2>For
  the Six Months Ended June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="47%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="47%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="7%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="47%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="47%" valign=bottom><font size=2>Basic and Diluted Per
  Share:</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of income before extraordinary items and cumulative effect of
  accounting change</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.21</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.24</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font   size=2>0.40</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>0.45</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of extraordinary items</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>Common Shareholders&#146;
  share of cumulative effect of accounting change</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>&#151;</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(0.01</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(0.05</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom bgcolor="#cceeff"><font size=2>Net Income available
  to Common Shareholders</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.21</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>0.24</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="6%" valign=bottom bgcolor="#cceeff"><font   size=2>0.39</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>0.40</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="47%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="7%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None
of the series of convertible preferred stock issued and outstanding during the
comparative periods had a dilutive effect on earnings per share, nor did any of
the convertible preferred Units of the SPG Operating Partnership outstanding,
which are convertible into Paired Shares on or after August 27, 2004 if certain
conditions are met. Paired Units held by limited partners in the Operating
Partnerships may be exchanged for Paired Shares, on a one-for-one basis in
certain circumstances. If exchanged, the paired Units would not have a dilutive
effect.</font></p>

<p><b><font size=2>Note 4 - Cash Flow Information</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
paid for interest, net of amounts capitalized, during the six months ended June
30, 2001 was $297,342 as compared to $319,696 for the same period in 2000. See
Notes 1 and 8 for information about non-cash transactions during the six months
ended June 30, 2001.</font></p>

<p><b><font size=2>Note 5 - Cumulative Effect of Accounting Change</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 1, 2001 Simon Group adopted SFAS 133&nbsp;
&#147;Accounting for Derivative Instruments and Hedging Activities,&#148; as
amended in June of 2000 by SFAS 138, &#147;Accounting for Derivative Instruments and
Hedging Activities.&#148;&nbsp; SFAS 133, as
amended, establishes accounting and reporting standards for derivative
instruments and requires Simon Group to record on the balance sheet all
derivative instruments at fair value and to recognize certain non-cash changes
in these fair values either in the income statement or other comprehensive income,
as appropriate under SFAS 133.&nbsp; SFAS 133
currently impacts the accounting for Simon Group&#146;s interest rate and foreign
currency rate risk protection agreements.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
adoption of SFAS 133, Simon group recorded the difference between the fair
value of the derivative instruments and the previous carrying amount of those
derivatives on its condensed consolidated combined balance sheets in net income
or other comprehensive income, as appropriate, as the cumulative effect of a
change in accounting principle in accordance with APB 20 &#147;Accounting
Changes.&#148;&nbsp;&nbsp; On adoption, Simon Group&#146;s
net fair value of derivatives was ($2.0) million, of which $3.1 million was
recorded in other liabilities and $1.1 million was recorded in other assets. In
addition, $2.0 million of unrecognized loss was recorded in other comprehensive
income as a cumulative effect of accounting change and an expense of $1.6
million was recorded as a cumulative effect of accounting change in the
statement of operations, which includes Simon Group&#146;s $1.4 million share of
joint venture cumulative effect of accounting change.&nbsp; The joint venture cumulative effect of accounting change was
recorded in investment in unconsolidated entities.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within
the next twelve months, Simon Group expects to reclassify to earnings
approximately $3.0 million of expense of the current balance held in
accumulated other comprehensive income.&nbsp;
Amounts included in these reclassifications attributable to joint
ventures and minority interests were not material.&nbsp; The amount of hedge ineffectiveness recorded during the three
months ended June 30, 2001 was not material.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>

<page>


<p><font size=2>The following table summarizes the
notional and fair values of Simon Group&#146;s derivative instruments as of June 30,
2001, in millions:</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="23%" valign=bottom><font   size=2>Hedge
  Type</font></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><font   size=2>Index</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font   size=2>Notional
  Amount</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom><font   size=2>Interest
  Rate Range</font></td>
  <td  align=center width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom><font   size=2>Maturity
  Range</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=2 valign=bottom><font   size=2>Fair
  Value</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="23%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><b><font size=2>Consolidated:</font></b></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Interest Rate Swaps</font></td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff"><font   size=2>1
  month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>100.0</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff"><font   size=2>5.80-7.24%</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>9/01-12/04</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>(1.4</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Interest Rate Caps</font></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><font   size=2>1
  or 3 month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>238.0</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom><font   size=2>6.40-16.77%</font></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom><font   size=2>9/01-1/05</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>0.3</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Interest Rate Cap -
  Collar</font></td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff"><font   size=2>3
  month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>85.0</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff"><font   size=2>5.89%</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>5/04</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>0.8</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Interest Rate Floor -
  Collar</font></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><font   size=2>3
  month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>85.0</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom><font   size=2>5.89%</font></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom><font   size=2>5/04</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom><font   size=2>(2.5</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>(2.8</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=top><font size=2>Cross-Currency
  Interest Rate Swap</font></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><font   size=2>1
  month EURIBOR and Euros</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>30.0
  EUR</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom><font   size=2>7.75
  %/ 0.94 EUR</font></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom><font   size=2>7/03</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>(4.0</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="23%" valign=top>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom bgcolor="#cceeff"><font   size=2>(6.8</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>)&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=center></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><b><font size=2>Joint Ventures:</font></b></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Interest Rate Caps</font></td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom><font   size=2>1
  or 3 month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>1,001.4</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom><font   size=2>7.70-11.83%</font></td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom><font   size=2>1/02
  &#150; 5/06</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>0.2</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Interest Rate Swap</font></td>
  <td  align=center width="2%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="14%" valign=bottom bgcolor="#cceeff"><font   size=2>3
  month LIBOR</font></td>
  <td  align=center width="2%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>71.0</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom bgcolor="#cceeff"><font   size=2>6.01%</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>7/11</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="8%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1.3</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=center></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="7%" valign=bottom><font   size=2>1.5</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=top>&nbsp;</td>
  <td  align=center width="14%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="16%" valign=bottom>&nbsp;</td>
  <td width="0%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom>&nbsp;</td>
  <td  align=right width="8%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=center></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As
of June 30, 2001, Simon Group has recorded derivatives at their fair values of
$1.1 million included in other assets and $7.9 million included in other
liabilities.&nbsp; Simon Group&#146;s exposure to
market risk due to changes in interest rates primarily relates to Simon Group&#146;s
long-term debt obligations. Through its risk management strategy, Simon Group
manages exposure to interest rate market risk by a combination of interest rate
protection agreements to effectively fix or cap a portion of variable rate debt
and by refinancing fixed rate debt at times when rates and terms are
appropriate. Simon Group is also exposed to foreign currency risk on financings
of certain foreign operations.&nbsp; To
manage foreign currency exchange rate risk as part of its risk management
strategy, Simon Group has also entered into a foreign currency forward
contract. Simon Group&#146;s intent is to offset gains and losses that occur on the
underlying exposures, with gains and losses on the derivative contracts hedging
these exposures.&nbsp; Simon Group does not
enter into either interest rate protection or foreign currency rate protection
agreements for speculative purposes.</font></p>

<p><b><i><font size=2>Accounting
Policies for Derivatives</font></i></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
the normal course of business, Simon Group uses a variety of derivative
financial instruments to manage, or hedge, interest rate and foreign currency
risk and records all derivatives on the balance sheets at fair value.&nbsp; Simon Group may enter into derivative
contracts relating to either wholly owned or joint venture properties.&nbsp; Simon Group requires that hedging derivative
instruments are effective in reducing the risk exposure that they are
designated to hedge. For derivative instruments associated with the hedge of an
anticipated transaction, hedge effectiveness criteria also require that it be
probable that the underlying transaction occurs.&nbsp; Simon Group may hedge its exposure to the variability in future
cash flows for anticipated transactions over a maximum period of 12
months.&nbsp; Any instrument that meets these
hedging criteria is formally designated as a hedge at the inception of the
derivative contract.&nbsp; When the terms of
an underlying transaction are modified resulting in some ineffectiveness, the
portion of the change in the derivative fair value related to ineffectiveness
from period to period will be included in net income. If any derivative
instrument used for risk management does not meet the hedging criteria then it is
marked-to-market each period, however, Simon Group intends for all derivative
transactions to meet all the hedge criteria and qualify as hedges.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
an ongoing quarterly basis, Simon Group adjusts its balance sheets to reflect
current fair market value of its derivatives.&nbsp;
Changes in the fair value of derivatives are to be recorded each period
in earnings or comprehensive income, depending on whether the derivative is
designated and effective as part of a hedged transaction, and on the type of
hedge transaction.&nbsp; To the extent that
the change in value of a derivative does not perfectly offset the change in
value of the instrument being hedged, the ineffective portion of the hedge is
immediately recognized in earnings. Over time, the unrealized gains and losses
held in accumulated other comprehensive income will be reclassified to
earnings.&nbsp; This reclassification occurs
when the hedged items are also recognized in earnings.&nbsp; Interest rate differentials that arise under
interest rate swap contracts are settled periodically based upon the terms of
the contract and are recognized in interest expense over the life of the
contracts.&nbsp; Simon Group has a policy of
only entering into contracts with major financial institutions based upon their
credit ratings and other factors.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To
determine the fair values of derivative instruments, Simon Group uses a variety
of methods and assumptions that are based on market conditions and risks
existing at each balance sheet date.&nbsp;&nbsp;
For most derivatives, standard market conventions and techniques such as
discounted cash flow analysis, option pricing models, and termination cost are
used to determine fair value. All methods of assessing fair value result in a
general approximation of value, and such value may never actually be realized.</font></p>

<page>


<p><b><font size=2>Note 6 - Investment in Unconsolidated Entities</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary
financial information of Simon Group&#146;s investment in partnerships and joint
ventures accounted for using the equity method of accounting and a summary of
Simon Group&#146;s investment in and share of income from such partnerships and
joint ventures follow:</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=2 valign=bottom><b><i><font   size=2>June 30,</font></i></b></td>
  <td  align=center width="9%" valign=bottom>&nbsp;</td>
  <td  align=center width="19%" colspan=2 valign=bottom><b><i><font   size=2>December 31,</font></i></b></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="18%" colspan=2 valign=bottom><b><i><font   size=2>2001</font></i></b></td>
  <td  align=center width="9%" valign=bottom>&nbsp;</td>
  <td  align=center width="19%" colspan=2 valign=bottom><b><i><font   size=2>2000</font></i></b></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><b><font size=2>BALANCE SHEETS</font></b></td>
  <td  align=center width="18%" colspan=2 valign=bottom><div align=right><b><i><font   size=2><hr size=1 width="100%" noshade color=black align=right></font></i></b></div></td>
  <td  align=center width="9%" valign=bottom>&nbsp;</td>
  <td  align=center width="19%" colspan=2 valign=bottom><div align=right><b><i><font   size=2><hr size=1 width="100%" noshade color=black align=right></font></i></b></div></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><b><font size=2>Assets:</font></b></td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Investment properties
  at cost, net</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>6,523,733</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>6,573,412</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Cash and cash
  equivalents</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>181,433</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom><font   size=2>192,138</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Tenant receivables</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>160,161</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>165,918</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Other assets</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>278,175</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom><font   size=2>276,975</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="6%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="43%" valign=bottom bgcolor="#cceeff"><font size=2>Total assets</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>7,143,502</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>7,208,443</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="6%" valign=bottom>&nbsp;</td>
  <td width="43%" valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><b><font size=2>Liabilities and Partners'
  Equity:</font></b></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Mortgages and other
  notes payable</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>5,245,429</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>5,135,488</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Accounts payable, accrued
  expenses and other liabilities</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>326,933</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>347,733</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="6%" valign=bottom>&nbsp;</td>
  <td width="43%" valign=bottom><font size=2>Total liabilities</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom><font   size=2>5,572,362</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom><font   size=2>5,483,221</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Partners' equity</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,571,140</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>1,725,222</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="6%" valign=bottom>&nbsp;</td>
  <td width="43%" valign=bottom><font size=2>Total liabilities and
  partners' equity</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>7,143,502</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>7,208,443</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff">
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><b><font size=2>Simon Group&#146;s Share of:</font></b></td>
  <td  align=right width="18%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Total assets</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>2,911,074</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>2,929,647</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Partners&#146; equity</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>616,027</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>679,591</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Add: Excess Investment</font></td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>551,242</font></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>558,675</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="9%" valign=bottom>&nbsp;</td>
  <td  align=right width="19%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Simon Group&#146;s net
  Investment in Joint Ventures</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>1,167,269</font></td>
  <td width="9%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="2%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>1,238,266</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" colspan=2 valign=bottom bgcolor="#cceeff">
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="9%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="19%" colspan=2 valign=bottom bgcolor="#cceeff">
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="31%" colspan=5 valign=bottom><b><i><font   size=2>For the Three Months Ended June 30,</font></i></b></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="29%" colspan=5 valign=bottom><b><i><font   size=2>For The Six Months Ended June 30,</font></i></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="31%" colspan=5 valign=bottom><div align=right><b><i><font   size=2><hr size=1 width="100%" noshade color=black align=right></font></i></b></div></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="29%" colspan=5 valign=bottom><div align=right><b><i><font   size=2><hr size=1 width="100%" noshade color=black align=right></font></i></b></div></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>STATEMENTS OF OPERATIONS</font></b></td>
  <td  align=center width="14%" colspan=2 valign=bottom><b><i><font   size=2>2001</font></i></b></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><b><i><font   size=2>2000</font></i></b></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><b><i><font   size=2>2001</font></i></b></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><b><i><font   size=2>2000</font></i></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><div><b><i><font size=2><hr size=1 width="100%" noshade color=black align=left></font></i></b></div></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="13%" colspan=2 valign=bottom><div><b><i><font size=2><hr size=1 width="100%" noshade color=black align=left></font></i></b></div></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="14%" colspan=2 valign=bottom><div><b><i><font size=2><hr size=1 width="100%" noshade color=black align=left></font></i></b></div></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="11%" colspan=2 valign=bottom><div><b><i><font size=2><hr size=1 width="100%" noshade color=black align=left></font></i></b></div></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Revenue:</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Minimum rent</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>200,925</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>183,652</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>399,443</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>364,451</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom><font size=2>Overage rent</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>3,718</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>3,184</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>9,525</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>9,028</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Tenant reimbursements</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>99,531</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>92,576</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>196,399</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>184,110</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom><font size=2>Other income</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>16,023</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>12,173</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>27,644</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>22,259</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="28%" valign=bottom bgcolor="#cceeff"><font size=2>Total revenue</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>320,197</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>291,585</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>633,011</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>579,848</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Operating Expenses:</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom><font size=2>Operating expenses and
  other</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>122,899</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>112,351</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>240,019</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>221,469</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Depreciation and
  amortization</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>67,293</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>56,121</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>127,792</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>111,771</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="1%" valign=bottom>&nbsp;</td>
  <td width="32%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="28%" valign=bottom><font size=2>Total operating
  expenses</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>190,192</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>168,472</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>367,811</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>333,240</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="5%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="28%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Operating Income</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>130,005</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>123,113</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>265,200</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>246,608</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Interest Expense</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>92,080</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>86,660</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>186,840</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>171,112</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Income Before Extraordinary
  Items and Cumulative Effect of Accounting Change (&#147;IBEC&#148;)</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>37,925</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>36,453</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>78,360</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>75,496</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Extraordinary Items</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(75</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(75</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>--</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Cumulative Effect of
  Accounting Change</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>--</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>(2,883</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>(3,948</font></td>
  <td width="1%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Net Income</font></b></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>37,850</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>36,453</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>75,402</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>71,548</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Third-Party Investors' Share
  of IBEC</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>23,650</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>21,160</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>50,075</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>44,669</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Simon Group&#146;s Share of IBEC</font></b></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>14,275</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>15,293</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>28,285</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>30,827</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom><b><font size=2>Amortization of Excess
  Investment</font></b></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>6,002</font></td>
  <td width="4%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="13%" colspan=2 valign=bottom><font   size=2>5,310</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="14%" colspan=2 valign=bottom><font   size=2>10,948</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="11%" colspan=2 valign=bottom><font   size=2>10,583</font></td>
  <td width="1%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom bgcolor="#cceeff"><b><font size=2>Income from Unconsolidated
  Entities</font></b></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>8,273</font></td>
  <td width="4%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="12%" valign=bottom bgcolor="#cceeff"><font   size=2>9,983</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="13%" valign=bottom bgcolor="#cceeff"><font   size=2>17,337</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="10%" valign=bottom bgcolor="#cceeff"><font   size=2>20,244</font></td>
  <td width="1%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="34%" colspan=3 valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="4%" valign=bottom>&nbsp;</td>
  <td  align=right width="13%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="14%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="11%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="1%" valign=bottom>&nbsp;</td>
 </tr>

<!-- DO NOT remove the following table row. It is needed for  .               the proper rendering of tables containing misaligned cells.-->
 <tr height=0>
  <td width=13></td>
  <td width=27></td>
  <td width=200></td>
  <td width=7></td>
  <td width=97></td>
  <td width=28></td>
  <td width=7></td>
  <td width=85></td>
  <td width=21></td>
  <td width=7></td>
  <td width=97></td>
  <td width=25></td>
  <td width=7></td>
  <td width=73></td>
  <td width=8></td>
 </tr>
</table>

<p><font size=2>Simon
Group&#146;s share of consolidated net income of the Management Company, excluded
from the tables above, after intercompany profit eliminations, was $5,630 and
$5,555 for the three-month periods ended June 30, 2001 and 2000, respectively,
and $8,297 and $13,283 for the six month periods ended June 30, 2001 and 2000,
respectively.&nbsp; Simon Group&#146;s net
investment in the Management Company, excluded from the tables above, was
$64,547 and $32,936 as of June 30, 2001 and December 31, 2000, respectively.</font></p>

<dir>
<p><font size=2>In
addition, Simon Group has guaranteed its pro rata share of a joint venture's
lease obligations up to $55.4 million.</font></p>
</dir>

<p><b><font size=2>Note 7 - Debt</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At
June 30, 2001, of Simon Group&#146;s combined consolidated debt $6,512,770 was
fixed-rate debt and $2,217,242 was variable-rate debt.&nbsp; Simon Group&#146;s pro rata share of indebtedness
of the unconsolidated joint venture Properties as of June 30, 2001 was
$2,214,475.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
January 11, 2001, Simon Group issued $500,000 of unsecured debt to
institutional investors pursuant to Rule 144A in two tranches.&nbsp; The first tranche is $300,000 bearing an
interest rate of 7 3/8% due January 20, 2006 and the second tranche is $200,000
bearing an interest rate of 7 3/4% due January 20, 2011.&nbsp; The net proceeds of the offering were used
to repay the remaining portion of the indebtedness under the CPI Merger
Facility due March 24, 2001 and to repay a portion of the CPI Merger Facility
due September 24, 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsequent
to June 30, 2001, Simon Group retired the third and final tranche of the CPI
merger facility totaling $435.0 million.&nbsp;
Funds used to retire this debt were generated primarily from a $277.0
million financing of four mall properties at a fixed rate of 6.99% and a $110.0
million financing of one office complex at LIBOR plus 115 basis points.</font></p>

<p><b><font size=2>Note 8 &#150; Shareholders&#146; Equity</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
March 26, 2001, 474,625 Paired Shares of restricted stock were deemed earned
and awarded under The Simon Property Group 1998 Stock Incentive Plan (the &#147;1998
Plan&#148;) at a value of $25.85 per Paired Share.&nbsp;
The cost of restricted stock grants is based upon the stock&#146;s fair
market value at the time such stock is earned, awarded and issued and is
charged to shareholders&#146; equity and subsequently amortized against earnings of
Simon Group over the vesting period.&nbsp; In
addition, 1,032,583 stock options to purchase Paired Shares were granted under
the 1998 Plan on the same day.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
May 22, 2001, 1,220 shares of SPG&#146;s Series A Convertible Preferred Stock were
converted into 46,355 Paired Shares.&nbsp; In
addition, another 442 Paired Shares were issued to the holders of the
convertible shares in lieu of the cash dividends allocable to those preferred
shares.</font></p>

<p><b><font size=2>Note 9 - Commitments and Contingencies</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Litigation</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Triple Five
of Minnesota, Inc., a Minnesota corporation, v. Melvin Simon, et. al. </i>On
or about November 9, 1999, Triple Five of Minnesota, Inc. (&#147;Triple Five&#148;)
commenced an action in the District Court for the State of Minnesota, Fourth
Judicial District, against, among others, Mall of America, certain members of
the Simon family and entities allegedly controlled by such individuals, and
Simon Group. Two transactions form the basis of the complaint: (i) the sale by
Teachers Insurance and Annuity Association of America of one-half of its
partnership interest in Mall of America Company and Minntertainment Company to
the SPG Operating Partnership and related entities (the &#147;Teachers Sale&#148;); and
(ii) a financing transaction involving a loan in the amount of $312,000
obtained from The Chase Manhattan Bank (&#147;Chase&#148;) that is secured by a mortgage
placed on Mall of America&#146;s assets (the &#147;Chase Mortgage&#148;).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
complaint, which contains twelve counts, seeks remedies of damages, rescission,
constructive trust, accounting, and specific performance. Although the
complaint names all defendants in several counts, Simon Group is specifically
identified as a defendant in connection with the Teachers Sale.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
SPG Operating Partnership has agreed to indemnify Chase and other nonparties to
the litigation that are related to the offering of certificates secured by the
Chase Mortgage against, among other things, (i) any and all litigation expenses
arising as a result of litigation or threatened litigation brought by Triple
Five, or any of its owners or affiliates, against any person regarding the
Chase Mortgage, the Teachers Sale, any securitization of the Chase Mortgage or
any transaction related to the foregoing and (ii) any and all damages, awards,
penalties or expenses payable to or on behalf of Triple Five (or payable to a
third party as a result of such party&#146;s obligation to pay Triple Five) arising
out of such litigation. These indemnity obligations do not extend to
liabilities covered by title insurance.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simon
Group believes that the Triple Five litigation is without merit and intends to
defend the action vigorously. Simon Group believes that neither the Triple Five
litigation nor any potential payments under the indemnity, if any, will have a
material adverse effect on Simon Group. Given the early stage of the litigation
it is not possible to provide an assurance of the ultimate outcome of the
litigation or an estimate of the amount or range of potential loss, if any.</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Carlo
Angostinelli et al. v. DeBartolo Realty Corp. et al.</font></i><font size=2>On
October 16, 1996, a complaint was filed in the Court of Common Pleas of
Mahoning County, Ohio, captioned <u>Carlo Angostinelli et al. v. DeBartolo
Realty Corp. et al.</u> The named defendants are SD Property Group, Inc., an
indirect 99%-owned subsidiary of SPG, and DeBartolo Properties Management,
Inc., a subsidiary of the Management Company, and the plaintiffs are 27 former
employees of the defendants. In the complaint, the plaintiffs alleged that they
were recipients of deferred stock grants under the DeBartolo Realty Corporation
(&#147;DRC&#148;) Stock Incentive Plan (the &#147;DRC Plan&#148;) and that these grants immediately
vested under the DRC Plan&#146;s &#147;change in control&#148; provision as a result of the
DRC Merger. Plaintiffs asserted that the defendants&#146; refusal to issue them
approximately 542,000 shares of DRC common stock, which is equivalent to
approximately 370,000 Paired Shares computed at the 0.68 exchange ratio used in
the DRC Merger, constituted a breach of contract and a breach of the implied
covenant of good faith and fair dealing under Ohio law. Plaintiffs sought
damages equal to such number of shares of DRC common stock, or cash in lieu
thereof, equal to all deferred stock ever granted to them under the DRC Plan,
dividends on such stock from the time of the grants, compensatory damages for
breach of the implied covenant of good faith and fair dealing, and punitive
damages. The plaintiffs and the defendants each filed motions for summary
judgment. On October 31, 1997, the Court of Common Pleas entered a judgment in
favor of the defendants granting their motion for summary judgment. The
plaintiffs appealed this judgment to the Seventh District Court of Appeals in
Ohio. On August 18, 1999, the District Court of Appeals reversed the summary
judgment order in favor of the defendants entered by the Common Pleas Court and
granted plaintiffs&#146; cross motion for summary judgment, remanding the matter to
the Common Pleas Court for the determination of plaintiffs&#146; damages. The
defendants petitioned the Ohio Supreme Court asking that they exercise their
discretion to review and reverse the Appellate Court decision, but the Ohio
Supreme Court did not grant the petition for review. The case was remanded to
the Court of Common Pleas of Mahoning County, Ohio, to conduct discovery
relevant to each plaintiff&#146;s damages and the counterclaims asserted by Simon
Group. The Trial Court referred these matters to a Magistrate. Plaintiffs filed
a Supplemental Motion for Summary Judgment on the question of damages.&nbsp; The Magistrate ruled on the counterclaims
and found in Defendants&#146; favor on one of them. On December 27, 2000, the Trial
Court rendered judgment for the plaintiffs in the combined total amount of
approximately $12,000, which includes a set-off of approximately $2,000 with
impact to two of the plaintiffs. Defendants have appealed this judgment and
plaintiffs have cross-appealed.&nbsp; The
judgment has accrued interest at 10% per annum from and after December 27,
2000.&nbsp; Those appeals are pending before
the District Court of Appeals and there can be no execution upon the judgment
while the appeals are pending.&nbsp; Simon
Group recorded a $12,000 loss in the third quarter of 1999 related to this
litigation as an unusual item.</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roel
Vento et al v. Tom Taylor et al.</font></i><font size=2>An affiliate of Simon
Group is a defendant in litigation entitled <u>Roel Vento et al v. Tom Taylor
et al.</u>, in the District Court of Cameron County, Texas, in which a judgment
in the amount of $7,800 was entered against all defendants. This judgment
includes approximately $6,500 of punitive damages and is based upon a jury&#146;s
findings on four separate theories of liability including fraud, intentional
infliction of emotional distress, tortious interference with contract and civil
conspiracy arising out of the sale of a business operating under a temporary
license agreement at Valle Vista Mall in Harlingen, Texas. Simon Group appealed
the verdict and on May 6, 1999, the Thirteenth Judicial District (Corpus
Christi) of the Texas Court of Appeals issued an opinion reducing the trial
court verdict to $3,364 plus interest. Simon Group filed a petition for a writ
of certiorari to the Texas Supreme Court requesting that they review and
reverse the determination of the Appellate Court. The Texas Supreme Court
granted certiorari and heard oral arguments on October 4, 2000.&nbsp; On April 26, 2001, the Texas Supreme Court
rendered a unanimous 9-0 opinion against the Ventos and ordered that they take
nothing from the Simon defendants. Plaintiffs have filed a motion for
reconsideration with the Texas Supreme Court. The court has not yet ruled on
Plaintiff&#146;s motion.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simon
Group currently is not subject to any other material litigation other than
routine litigation, claims and administrative proceedings arising in the
ordinary course of business. On the basis of consultation with counsel,
management believes that such routine litigation, claims and administrative
proceedings will not have a material adverse impact on Simon Group's financial
position or its results of operations.</font></p>

<p><b><i><font size=2>Note 10 -
Real Estate Disposals and Other</font></i></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During
the first six months of 2001, Simon Group sold its ownership interest in one
regional mall, one community center, and one office building for a combined
gross sales price of $20.3 million.&nbsp;
These sales resulted in a net combined gain of $2.7 million.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On December 28, 2000, Montgomery
Ward LLC and certain of its related entities (&#147;Ward&#148;) filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code.&nbsp;&nbsp; In late February 2001, a limited liability
company, Kimsward LLC (&#147;Kimsward&#148;), was formed to designate persons or entities
to whom the Ward real estate assets will be sold.&nbsp; These transactions are subject to Bankruptcy Court approval.&nbsp; The Management Company&#146;s interest in
Kimsward is 18.5% and its remaining investment in Kimsward was $6.4 million as
of June 30, 2001.&nbsp; During the second
quarter of 2001 the Management Company recorded $10.1 million of equity in
income from Kimsward.&nbsp; During the second
quarter, SPG, L.P. charged the Management Company a $5.7 million fee for
services rendered to the Management Company in connection with the Kimsward
transactions, which is included in other income in the accompanying condensed
combined statements of operations.</font></p>

<p><b><font size=2>Note 11 &#150;Merger</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
order to simplify the organizational structure of Simon Group, the Boards of
Directors of SPG and SPG Properties, Inc. (&#147;Properties, Inc.&#148;), on May 8, 2001
approved an agreement for the merger of Properties, Inc. into SPG.&nbsp; The merger was completed on July 1,
2001.&nbsp; SPG previously owned&nbsp; 99.999% of the common stock of Properties,
Inc.&nbsp; In the&nbsp; merger, shares of Properties, Inc.&#146;s common stock (other than
those held by SPG) were converted into the right to receive approximately $98
in total and outstanding shares of Properties, Inc.&#146;s preferred stock were
converted into shares of SPG preferred stock having substantially identical
terms.&nbsp; The merger became effective July
1, 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
merger will be accounted for under the purchase method of accounting during the
third quarter.&nbsp; The pro forma effect of
the merger on SPG&#146;s balance sheet will be to reclassify the entire carrying
amount SPG&#146;s preferred stock of subsidiary to be included in the caption all
series of preferred stock within shareholders' equity.&nbsp; In addition, the pro forma effect on the
statement of operations will be the reclassification of preferred dividends of
subsidiary to preferred dividends.&nbsp; All
other pro forma effects associated with this transaction are immaterial.</font></p>

<p><b><font size=2>Note 12 &#150; New Accounting Pronouncements</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
July 20, 2001, the FASB issued SFAS No. 141, &#147;Business Combinations&#148; and SFAS
No. 142 &#147;Goodwill and Other Intangible Assets&#148;.&nbsp; SFAS 141 further clarifies the criteria to recognize intangible
assets separately from goodwill.&nbsp; SFAS
141 is effective for Simon Group for any business combination accounted for
under the purchase method that is completed after June 30, 2001.&nbsp; SFAS No. 142 requires that goodwill and
indefinite lived intangible assets are no longer amortized but are reviewed
annually, or more frequently if impairment indicators arise, for
impairment.&nbsp; Separable intangible assets
that are not deemed to have an indefinite life will continue to be amortized
over their useful lives but with no maximum life.&nbsp; The amortization provisions of SFAS 142 apply to goodwill and
intangible assets acquired by Simon Group after June 30, 2001.&nbsp; With respect to goodwill and intangible
assets acquired prior to July 1, 2001, Simon Group is required to adopt SFAS
142 on January 1, 2002 at which time amortization of the remaining book value
of goodwill will cease and the new impairment-only approach will apply and may
not be applied retroactively.&nbsp; Simon
Group is currently evaluating the impacts of SFAS 141 and SFAS 142.</font></p>

<page>


<p><a name="Item2_ManagementsDiscussionAndAnalysisOf"><b><font size=2>Item 2. Management's Discussion
and Analysis of Financial Condition and Results of Operations</font></b></a></p>

<p><b><font size=2>SIMON PROPERTY GROUP, INC. AND SPG REALTY CONSULTANTS, INC.
COMBINED</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; You
should read the following discussion in conjunction with the financial
statements and notes thereto that are included in this Form 10-Q. Certain
statements made in this report may constitute &#147;forward-looking statements&#148;
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause our actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.&nbsp; Those risks and uncertainties include, but
are not limited to, the national, regional and local economic climate,
competitive market forces, changes in market rental rates, trends in the retail
industry, the inability to collect rent due to the bankruptcy or insolvency of
tenants or otherwise, and changes in market rates of interest and maintenance
of REIT status.&nbsp; We undertake no duty or
obligation to update or revise these forward-looking statements, whether as a
result of new information, future developments, or otherwise.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Overview</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Who
we are - Simon Property Group, Inc. (&quot;SPG&quot;), a Delaware corporation,
is a self-administered and self-managed real estate investment trust
(&quot;REIT&quot;). Each share of common stock of SPG is paired (&#147;Paired
Shares&#148;) with 1/100<sup>th</sup> of a share of common stock of SPG Realty
Consultants, Inc. (&#147;SRC&#148; and together with SPG, the &#147;Companies&#148;). Simon
Property Group, L.P. (the &#147;SPG Operating Partnership&#148;) is the primary
subsidiary of SPG. Units of ownership interest (&#147;Units&#148;) in the SPG Operating
Partnership are paired (&#147;Paired Units&#148;) with a Unit in SPG Realty Consultants,
L.P. (the &#147;SRC Operating Partnership&#148; and together with the SPG Operating
Partnership, the &#147;Operating Partnerships&#148;). The SRC Operating Partnership is
the primary subsidiary of SRC. In this Quarterly Report on Form 10-Q, the terms
&#147;we&#148;, &#147;us&#148; and &#147;our&#148; refer to the Companies and the Operating Partnerships.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following Property acquisitions and openings impacted our consolidated results
of operations in the comparative periods. In May 2000, we opened Orlando
Premium Outlots, in November 2000, we opened Arundel Mills, and in May 2001, we
opened Montreal Forum.&nbsp; In addition, we
sold interests in several Properties throughout the comparative periods
(collectively the &#147;Property Transactions&#148;).&nbsp;
See &#147;Liquity and Capital Resources&#148; and Note 10 to the financial
statements for additional information about acquisitions, openings and disposals
during the comparative period.</font></p>

<dir>
<p><b><i><font size=2>Results of Operations</font></i></b></p>
</dir>

<p><i><font size=2>Three Months Ended June 30, 2001 vs. Three Months Ended June
30, 2000</font></i></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating
income decreased $7.1 million or 3.3% in 2001 as compared to 2000.&nbsp; This decrease primarily resulted from an
$8.5 million increase in depreciation and amortization, a $12.1 million
decrease in net tenant reimbursements, and a $4.4 million decrease in outlot
land sales,&nbsp; partially offset by a $11.9
million increase in minimum rents, excluding our Simon Brand Venture(&quot;SBV&quot;)
and Simon Business Network (&quot;SBN&quot;) initiatives, a $1.2 million
increase in consolidated revenues realized from our SBV and SBN initiatives,
and a $1.3 million increase in miscellaneous income.&nbsp; The increase in depreciation and amortization is primarily due to
an increase in depreciable real estate realized through renovation and
expansion activities.&nbsp; The decrease in
net tenant reimbursements is the result of true-up billings and lower spending
levels on recoverable expenditures.&nbsp; The
increase in miscellaneous income includes $5.7 million in fees associated with
the Kimsward transaction charged to the Management Company offset by a $3.8
million decrease in miscellaneous income items in the prior year.&nbsp; The increase in minimum rent primarily
results from increased occupancy levels and the replacement of expiring tenant
leases with renewal leases at higher minimum base rents.&nbsp; The impact of Property Transactions is an
increase in operating income of $3.0 million for the comparative period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income
from unconsolidated entities decreased $1.6 million in 2001, resulting from a
$1.7 million decrease in income from unconsolidated partnerships and joint
ventures and a $0.1 million increase in income from the Management
Company.&nbsp;&nbsp; Included in income from the
Management Company is $4.0 million of income from Kimsward, net of fees charged
by SPG, L.P. offset by a decrease in fee revenues and an increase in income tax
expense&nbsp; . The decrease in joint venture
income is primarily related to our pro rata share in the technology start up
activities of MerchantWired, LLC, which is partially offset by lower interest
rates and the full period impact of opening two properties in 2000.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest
expense during the three months ended June 30, 2001 decreased $5.2 million, or
3.4% compared to the same period in 2000.&nbsp;
This decrease is primarily due to lower interest rates during 2001 and
reductions in the corporate credit facilities offset by the issuance of $500
million of unsecured notes on January 11, 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income
before allocation to limited partners was $70.0 million for the three months
ended June 30, 2001, which reflects a $5.9 million or 7.8% decrease over 2000,
primarily for the reasons discussed above.&nbsp;
Income before allocation to limited partners was allocated to the Companies
based on SPG&#146;s direct ownership of Ocean County Mall and certain net lease
assets, and the Companies&#146; preferred Unit preferences and weighted average
ownership interests in the Operating Partnerships during the period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
comparability between SRC&#146;s balance sheet as of June 30, 2001 and December 31,
2000 and results of operations for the three-months ended June 30, 2001 and
June 30, 2000 have been affected by the following:</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=41 valign=top>&nbsp;</td>
  <td width=24 valign=top><font size=2>&#149;</font></td>
  <td width=640 valign=top><font size=2>Effective
  March 31, 2001, ownership of clixnmortar was transferred from SRC to the
  Management Company.&nbsp; See Note 1 of the
  Notes to Unaudited Condensed Financial Statements included in Item 1 of this
  Form 10-Q for a discussion of the transfer.</font></td>
 </tr>
 <tr>
  <td width=41 valign=top>&nbsp;</td>
  <td width=24 valign=top>&nbsp;</td>
  <td width=640 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width=41 valign=top>&nbsp;</td>
  <td width=24 valign=top><font size=2>&#149;</font></td>
  <td width=640 valign=top><font size=2>Effective
  January 1, 2001, ownership of SBV was transferred from SRC to the SPG
  Operating Partnership.</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred
distributions of the SPG Operating Partnership represent distributions on
preferred Units issued in connection with the NED Acquisition. Preferred
dividends of subsidiary represent distributions on preferred stock of SPG
Properties, Inc., a 99.999% owned subsidiary of SPG, which was merged into SPG
effective July 1, 2001.</font></p>

<p><i><font size=2>Six Months Ended June 30, 2001 vs. Six Months Ended June 30,
2000</font></i></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income decreased $4.9
million or 1.2% in 2001 as compared to 2000.&nbsp;
This decrease primarily resulted from a $17.4 million increase in
depreciation and amortization, a $13.5 million decrease in net tenant
reimbursements, a $1.2 million offset by a $22.6 million increase in minimum
rents, excluding our SBV and SBN initiatives, a $10.3 million increase in
consolidated revenues realized from our SBV and SBN initiatives and a $2.5
million decrease in other expenses.&nbsp; The
increase in depreciation and amortization is primarily due to an increase in
depreciable real estate realized through renovation and expansion activities. &nbsp;The decrease in net tenant reimbursements is
the result of true-up billings and lower spending levels on recoverable
expenditures. The decrease in miscellaneous income includes a $6.0 million
decrease in various miscellaneous income items in the prior year offset by $5.7
million in fees associated with the Kimsward transaction charged to the
Management Company.&nbsp; The increase in
minimum rent primarily results from increased occupancy levels and the
replacement of expiring tenant leases with renewal leases at higher minimum
base rents.&nbsp; The increase in SBV and SBN
revenues include $5.6 million from a contract termination payment.&nbsp; The decrease in other expenses reflect lower
partnership taxes in select states and&nbsp;
lower professional fees.&nbsp; The
impact of Property Transactions is a decrease in operating income of $0.7
million for the comparative period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from unconsolidated entities
decreased $7.9 million in 2001, resulting from a $5.0 million decrease in
income from the Management Company and a $2.9 million decrease in income from
unconsolidated partnerships and joint ventures.&nbsp; Included in income from the Management Company is $4.0 million of
income from Kimsward, LLC net of fees charged by SPG, L.P. offset by a decrease
in fee revenues and an increase in income tax expense.&nbsp; The decrease in joint venture income is
primarily related to technology start up activities of MerchantWired, LLC,
which is partially offset by lower interest rates and the full year impact of
opening two properties in 2000.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense during the first
six months of 2001 decreased $6.0 million, or 1.9% compared to the same period
in 2000.&nbsp; This decrease is primarily due
to lower interest rates during 2001 and reductions in the corporate credit
facilities.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of 2001 we
recorded a $1.6 million expense as a cumulative effect of an accounting change,
which includes our $1.4 million share from unconsolidated entities, due to the
adoption of&nbsp; SFAS 133&nbsp; &#147;Accounting for Derivative Instruments and
Hedging Activities,&#148; as amended.&nbsp; See
Note 5 of the Notes to Unaudited Condensed Financial Statements included in
Item 1 of this Form 10-Q for a discussion of the cumulative effect of
accounting change.&nbsp; During the first
quarter of 2000 we recorded a $12.3 million expense as a cumulative effect of
an accounting change, which includes our $1.8 million share from unconsolidated
entities, due to the adoption of Staff Accounting Bulletin No. 101, which
addressed certain revenue recognition policies, including the accounting for
overage rent by a landlord.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The $2.7 million net gain on the
sales of assets in 2001 results from the sale of our interests in one regional
mall, one community center, and an office building for a gross sales price of
approximately $20.3 million. In 2000, we recognized a net gain of $8.7 million
on the sale of two regional malls, three community centers, and one office
building.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income before allocation to limited
partners was $132.1 million for the six months ended June 30, 2001, which
reflects a decrease of $2.2 million or 1.6% over 2000, primarily for the
reasons discussed above.&nbsp; Income before
allocation to limited partners was allocated to the Companies based on SPG&#146;s
direct ownership of Ocean County Mall and certain net lease assets, and the
Companies&#146; preferred Unit preferences and weighted average ownership interests
in the Operating Partnerships during the period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The comparability between SRC&#146;s
balance sheet as of June 30, 2001 and December 31, 2000 and results of
operations for the six months ended June 30, 2001 and June 30, 2000 have been
affected by the following:</font></p>

<dir>
<table border=0 cellspacing=0 cellpadding=0 width="90%">
 <tr>
  <td width="5%" valign=top><font size=2>&#149;</font></td>
  <td width="94%" valign=top><font size=2>Effective
  March 31, 2001, ownership of clixnmortar transferred from SRC to the
  Management Company.&nbsp; See Note 1 of the
  Notes to Unaudited Condensed Financial Statements included in Item 1 of this
  Form 10-Q for a discussion of the transfer.</font></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="94%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2>&#149;</font></td>
  <td width="94%" valign=top><font size=2>Effective
  January 1, 2001, ownership of SBV transferred from SRC to the SPG Operating
  Partnership.</font></td>
 </tr>
</table>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred distributions of the SPG
Operating Partnership represent distributions on preferred Units issued in
connection with the NED Acquisition. Preferred dividends of subsidiary
represent distributions on preferred stock of SPG Properties, Inc.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Liquidity and Capital Resources</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of June 30, 2001, our balance of
unrestricted cash and cash equivalents was $180.4 million, including $50.1
million related to our gift certificate program, which we do not consider
available for general working capital purposes.&nbsp; We have a $1.25 billion unsecured revolving credit facility (the
&#147;Credit Facility&#148;) which had available credit of $625.5 million at June 30,
2001. The Credit Facility bears interest at LIBOR plus 65 basis points and has
an initial maturity of August 2002, with an additional one-year extension
available at our option. SPG and the SPG Operating Partnership also have access
to public equity and debt markets.&nbsp; Our
current corporate bond ratings are Baa1 by Moody&#146;s Investors Service and BBB+
by Standard &amp; Poor&#146;s.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We anticipate that cash generated
from operating performance will provide the funds we need on a short- and
long-term basis for operating expenses, interest expense on outstanding
indebtedness, recurring capital expenditures, and distributions to shareholders
in accordance with REIT requirements. Sources of capital for nonrecurring capital
expenditures, such as major building renovations and expansions, as well as for
scheduled principal payments, including balloon payments, on outstanding
indebtedness are expected to be obtained from:</font></p>

<dir>
<p><font size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; excess cash generated from operating performance<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; working capital reserves<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional debt financing and<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional equity raised in
the public markets.</font></p>
</dir>

<p><i><font size=2>Financing
and Debt</font></i></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At June 30, 2001, we had combined
consolidated debt of $8.7 billion, of which $6.5 billion was fixed-rate debt
bearing interest at a weighted average rate of 7.3% and $2.2 billion was
variable-rate debt bearing interest at a weighted average rate of 5.0%.&nbsp; As of June 30, 2001, we had interest rate
protection agreements related to combined consolidated variable-rate debt with
a total carrying amount of $451.2 million. Our interest rate protection
agreements did not materially impact interest expense or weighted average
borrowing rates for the six months ended June 30, 2001 or 2000.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Our
share of total scheduled principal payments of mortgage and other indebtedness,
including unconsolidated joint venture indebtedness over the next five years is
$6.5 billion, with $4.3 billion thereafter. Our ratio of consolidated
debt-to-market capitalization was 51.9% and 57.0% at June 30, 2001 and December
31, 2000, respectively.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsequent
to June 30, 2001, we retired the third and final tranche of the CPI merger
facility totaling $435.0 million. We generated the funds used to retire this
debt primarily from our $277.0 million financing of four mall properties at
fixed rate of 6.99%, our $110.0 million financing of one office complex at
LIBOR plus 115 basis points and along with excess cash flow.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; See
Note 7 of the Notes to Unaudited Condensed Financial Statements included in
Item 1 of this Form 10-Q for a discussion of the unsecured debt issued on
January 11, 2001.</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions
and Disposals</font></i></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
continue to review and evaluate a limited number of acquisition opportunities.
We believe that acquisition activity in the near term will be a less significant
component of our growth strategy and amounts available under the Credit
Facility, together with the ability to issue shares of common stock and/or
Units, provide adequate means to finance certain acquisitions. We cannot assure
you that we will not be required to, or will not elect to, even if not required
to, obtain funds from outside sources, including through the sale of debt or
equity securities, to finance significant acquisitions, if any.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Dispositions</i></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the first six months of
2001, we sold our interests in one regional mall, one community center, and one
office building for a combined gross sales price of $20.3 million, resulting in
a net combined gain of $2.7 million. The net proceeds of approximately $19.6
million, were used for general working capital purposes.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
addition to the Property sales described above, as a continuing part of our
long-term strategic plan, we continue to pursue the sale of our remaining
non-retail holdings and a number of retail assets that are no longer aligned with
our strategic criteria, including four Properties currently under contract for
sale. We expect the sale prices of our non-core assets, if sold, will not
differ materially from the carrying value of the related assets.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Development
Activity</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Developments.
</font></i><font size=2>Development
activities are an ongoing part of our business.&nbsp; During 2000, we opened two new Properties aggregating
approximately 1.7 million square feet of GLA. In total, we invested
approximately $179.6 million on new developments in 2000. With fewer new
developments currently under construction, we expect 2001 development costs to
be approximately $76.2 million</font><i><font size=2>.</font></i></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic
Expansions and Renovations. </font></i><font size=2>One
of our key objectives is to increase the profitability and market share of the
Properties through the completion of strategic renovations and expansions.
During 2000, we invested approximately $201.6 million on redevelopment projects
and completed five major redevelopment projects, which added approximately 1.2
million square feet of GLA to the Portfolio. We have a number of renovation
and/or expansion projects currently under construction, or in preconstruction
development and expect to invest approximately $121.0 million on redevelopment
in 2001.</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International
Expansion</font></i><font size=2>. The SPG Operating
Partnership and the Management Company have a combined 29% ownership interest
in European Retail Enterprises, B.V. (&#147;ERE&#148;) which is accounted for using the
equity method of accounting.&nbsp; Prior to
January 2001, The Management Company had a 29% interest in Groupe BEG, S.A.
(&quot;BEG&quot;), which was accounted for using the equity method of
accounting.&nbsp; In January 2001, BEG merged
with ERE and became a wholly-owned subsidiary of ERE.&nbsp; BEG and ERE are fully integrated European retail real estate
developers, lessors and managers. Our total cash investment in ERE and BEG at
June 30, 2001 was approximately $45.8 million. The current estimated additional commitment is approximately $24.5
million.&nbsp; However, since our future
commitments are subject to certain performance and other criteria, including
our approval of development projects, these additional committments may
vary.&nbsp; The agreements with BEG
and ERE are structured to allow us to acquire an additional 32.5% ownership
interest over time. As of June 30, 2001, BEG and ERE had three Properties open
in Poland and two in France.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
May 4, 2001 Montreal Forum opened in Montreal, Canada.&nbsp; The SPG Operating Partnership has a 35.625%
ownership interest in this 243,000 square foot specialty retail center.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Technology
Initiatives. </i>We continue with
our technology initiatives through our association with several third party
participants.&nbsp; Our technology
initiatives include MerchantWired LLC, clixnmortar, and Constellation Real
Technologies including its investment in FacilityPro.com as described in our
annual report. The SPG Operating Partnership owns an approximately 53%
noncontrolling interest in MerchantWired LLC and accounts for it using the
equity method of accounting.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; These
activities may generate losses in the initial years of operation, while
programs are being developed and customer bases are being established. We have
investments with a total carrying amount of approximately $51.2 million related
to such programs through June 30, 2001.&nbsp;
We expect to continue to invest in these programs over the next two
years and together with the other members of MerchantWired, LLC have guaranteed
our pro rata share of certain equipment lease payments.&nbsp; We cannot assure you that our technology
programs will succeed.</font></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions.</font></i><font size=2> The Companies declared a common stock dividend of
$0.525 per share in the second quarter of 2001, which represents a 4.0%
increase over the previous quarter. The current combined annual distribution
rate is $2.10 per Paired Share.&nbsp;
Dividends during 2000 aggregated $2.02 per share. Future distributions
will be determined based on actual results of operations and cash available for
distribution.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Investing and Financing Activities</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
used in investing activities of $35.3 million for the six months ended June 30,
2001 includes capital expenditures of $152.4 million, investments in
unconsolidated joint ventures of $20.5 million, and advances to the Management
Company of $2.2 million.&nbsp; Capital
expenditures include development costs of $40.9 million, renovation and
expansion costs of $79.0 million and tenant costs and other operational capital
expenditures of $32.5 million.&nbsp; These
cash uses are partially offset by distributions from unconsolidated entities of
$112.0 million, cash from the consolidation of ASP of $8.2 million and net
proceeds of $19.6 million from the sale of three properties previously
mentioned.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
used in financing activities for the six months ended June 30, 2001 was $289.3
million and includes net distributions of $286.8 million, and net payments of
$2.5 million.</font></p>

<page>


<p><b><i><font size=2>EBITDA&#151;Earnings
from Operating Results before Interest, Taxes, Depreciation and Amortization</font></i></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
believe that there are several important factors that contribute to our ability
to increase rent and improve profitability of our shopping centers, including
aggregate tenant sales volume, sales per square foot, occupancy levels and
tenant costs. Each of these factors has a significant effect on EBITDA. We
believe that EBITDA is an effective measure of shopping center operating
performance because:</font></p>

<dir>
<table border=0 cellspacing=0 cellpadding=0 width="90%">
 <tr>
  <td width=37 valign=top><font size=2>&#149;</font></td>
  <td width=595 valign=top><font size=2>it
  is industry practice to evaluate real estate properties based on operating
  income before interest, taxes, depreciation and amortization, which is
  generally equivalent to EBITDA</font></td>
 </tr>
 <tr>
  <td width=37 valign=top><font size=2>&#149;</font></td>
  <td width=595 valign=top><font size=2>EBITDA
  is unaffected by the debt and equity structure of the property owner.</font></td>
 </tr>
</table>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However,
you should understand that EBITDA:</font></p>

<p><font size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; does
not represent cash flow from operations as defined by accounting principles
generally accepted in the United States<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; should not be considered as
an alternative to net income as a measure of operating performance<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is not indicative of cash
flows from operating, investing and financing activities<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is not an alternative to cash
flows as a measure of liquidity.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
EBITDA for the Properties increased from $979.5 million&nbsp; for the six months ended June 30, 2000 to
$1,024.8 million for the same period in 2001, representing a 4.6%
increase.&nbsp; This growth is primarily the
result of increased rental rates, increased tenant sales, improved occupancy
levels, effective control of operating costs and the addition of GLA to the
Portfolio through expansions and renovations.&nbsp;
During this period, the operating profit margin increased from 63.4% to
63.6%. There were no major acquisitions during 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>FFO-Funds from Operations</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FFO
is an important and widely used measure of the operating performance of REITs,
which provides a relevant basis for comparison among REITs. FFO, as defined by
NAREIT, means consolidated net income without giving effect to real estate
related depreciation and amortization, gains or losses from extraordinary items
and gains or losses on sales of real estate, plus the allocable portion, based
on economic ownership interest, of funds from operations of unconsolidated
joint ventures, all determined on a consistent basis in accordance with accounting
principles generally accepted in the United States. However, FFO:</font></p>

<p><font size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; does
not represent cash flow from operations as defined by accounting principles
generally accepted in the United States<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; should not be considered as
an alternative to net income as a measure of operating performance<br>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is not an alternative to cash
flows as a measure of liquidity.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following summarizes our FFO and that of the Companies and reconciles our
combined income before extraordinary items and cumulative effect of accounting
change to our FFO for the periods presented:</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom><font   size=2>For
  the Three Months Ended June 30,</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom><font   size=2>For
  the Six Months<br>
  Ended&nbsp; June 30,</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="21%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="23%" colspan=5 valign=bottom>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom><font   size=2>2001</font></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom><font   size=2>2000</font></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="3%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>(In thousands)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Our FFO</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>189,195</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>180,468</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>366,764</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>350,693</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Reconciliation:</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Income Before
  Extraordinary Items and Cumulative Effect of Accounting Change (1) (2)</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>69,970</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>75,912</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom><font   size=2>133,745</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom><font   size=2>147,048</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Plus:</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="46%" valign=bottom><font size=2>Depreciation and
  amortization from combined consolidated Properties</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>106,580</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>98,906</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>212,746</font></td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>197,142</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Our share of
  depreciation and amortization from unconsolidated affiliates</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>33,463</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>28,055</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>64,720</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>56,856</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom><font size=2>Less:</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>(Gain) loss on sale of
  asset, net of asset write downs of $0, $10,572, $0, and $10,572, respectively</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>28</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(1,562</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(2,683</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(8,658</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="46%" valign=bottom><font size=2>Minority interest
  portion of depreciation and amortization</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>(1,500</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>(1,475</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom><font   size=2>(2,987</font></td>
  <td width="3%" valign=bottom><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom><font   size=2>(2,955</font></td>
  <td width="2%" valign=bottom><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="46%" valign=bottom bgcolor="#cceeff"><font size=2>Preferred
  distributions (including preferred distributions of a subsidiary and to
  preferred unitholders)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(19,346</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(19,368</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(38,777</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom bgcolor="#cceeff"><font   size=2>(38,740</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>)</font></td>
 </tr>
 <tr>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td width="46%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=1 width="100%" noshade color=black align=left></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>Our FFO</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>189,195</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>180,468</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>366,764</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>350,693</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="9%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="3%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" colspan=2 valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom bgcolor="#cceeff"><font size=2>FFO Allocable to the
  Companies</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>137,530</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>131,039</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="8%" valign=bottom bgcolor="#cceeff"><font   size=2>266,293</font></td>
  <td width="3%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td width="0%" valign=bottom bgcolor="#cceeff"><font size=2>$</font></td>
  <td  align=right width="9%" valign=bottom bgcolor="#cceeff"><font   size=2>254,542</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="49%" colspan=2 valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="9%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="3%" valign=bottom>&nbsp;</td>
  <td  align=right width="10%" colspan=2 valign=bottom>
<hr size=2 width="100%" noshade color=black align=right></td>
  <td width="2%" valign=bottom>&nbsp;</td>
 </tr>
</table>





<hr size=1 width="25%" noshade color=black align=left>


<p><font size=2>Notes:</font></p>

<p><font size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Includes
gains on land sales of $2.1 million and $2.7 million for the three months ended
June 30, 2001 and 2000, respectively, and $3.3 million and $4.5 million for the
six months ended June 30, 2001 and 2000, respectively</font></p>

<p><font size=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Includes
straight-line rent adjustments to minimum rent of $1.8 million and $5.3 million
for the three months ended June 30, 2001 and 2000, respectively, and $6.1
million and $10.3 million for the six months ended June 30, 2001 and 2000,
respectively.</font></p>

<page>


<p><b><i><font size=2>Portfolio Data</font></i></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating
statistics do not include Properties located outside of the United States.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Aggregate
Tenant Sales Volume</i>. For the six months ended June 30, 2001 compared
to the same period in 2000, total reported retail sales at mall and
freestanding GLA we own (&#147;Owned GLA&#148;) in the regional malls increased $0.3
billion or 4.2% from $7,075 million to $7,370 million, primarily as a result
of&nbsp; increased productivity of our
existing tenant base and an overall increase in occupancy. Retail sales at
Owned GLA affect revenue and profitability levels because they determine the
amount of minimum rent that can be charged, the percentage rent realized, and
the recoverable expenses (common area maintenance, real estate taxes, etc.) the
tenants can afford to pay.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Occupancy
Levels</i>. Occupancy levels for Owned GLA at mall and freestanding
stores in the regional malls increased from 90.0% at June 30, 2000, to 90.3% at
June 30, 2001. Owned GLA has decreased 0.03 million square feet from June 30,
2000, to June 30, 2001, primarily as a result of dispositions.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Average Base Rents</i>. Average base rents per
square foot of mall and freestanding Owned GLA at regional malls increased
4.4%, from $27.63 at June 30, 2000 to $28.84 at June 30, 2001.</font></p>

<p><b><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflation</font></i></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inflation
has remained relatively low during the past four years and has had a minimal
impact on the operating performance of the Properties. Nonetheless,
substantially all of the tenants&#146; leases contain provisions designed to lessen
the impact of inflation. These provisions include clauses enabling us to
receive percentage rentals based on tenants&#146; gross sales, which generally
increase as prices rise, and/or escalation clauses, which generally increase
rental rates during the terms of the leases. In addition, many of the leases
are for terms of less than ten years, which may enable us to replace existing
leases with new leases at higher base and/or percentage rentals if rents of the
existing leases are below the then-existing market rate. Substantially all of
the leases, other than those for anchors, require the tenants to pay a
proportionate share of operating expenses, including common area maintenance,
real estate taxes and insurance, thereby reducing our exposure to increases in
costs and operating expenses resulting from inflation.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However,
inflation may have a negative impact on some of our other operating items.
Interest and general and administrative expenses may be adversely affected by
inflation as these specified costs could increase at a rate higher than rents.
Also, for tenant leases with stated rent increases, inflation may have a
negative effect as the stated rent increases in these leases could be lower
than the increase in inflation at any given time.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Seasonality</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
shopping center industry is seasonal in nature, particularly in the fourth
quarter during the holiday season, when tenant occupancy and retail sales are
typically at their highest levels. In addition, shopping malls achieve most of
their temporary tenant rents during the holiday season. As a result of the above,
our earnings are generally highest in the fourth quarter of each year.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Retail Climate and Tenant
Bankruptcies</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A
number of local, regional, and national retailers, including both in-line and
anchor tenants, have recently announced store closings or filed for
bankruptcy.&nbsp; Some changeover in tenants
is normal in our business.&nbsp; We lost
800,000 square feet of tenants in 2000 and 1,200,000 square feet in the first
six months of 2001 to bankruptcies.&nbsp;
Pressures which affect consumer confidence, job growth, energy costs and
income gains, however, can affect retail sales growth and a continuing soft
economic cycle may impact our ability to retenant property vacancies resulting
from these store closings or bankruptcies.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
geographical diversity of our portfolio mitigates some of our risk in the event
of an economic downturn.&nbsp; In addition,
the diversity of our tenant mix also is a factor because no single retailer
represents neither more than 2.0% of total GLA nor more than 3.5% of our
annualized base minimum rent.&nbsp;
Bankruptcies and store closings may, in some circumstances, create
opportunities for us to release spaces at higher rents to tenants with enhanced
sales performance.&nbsp; Our previously
demonstrated ability to successfully retenant anchor and in line store
locations reflects our resilience to fluctuations in economic cycles.&nbsp; While these factors reflect some of the
inherent strengths of our portfolio in a difficult retail environment,
successful execution of a releasing strategy is not assured.</font></p>

<p><a name="Item3_QualitativeAndQuantitativeDisclosu"><b><font size=2>Item 3. Qualitative and
Quantitative Disclosure About Market Risk</font></b></a></p>

<p><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sensitivity
Analysis.</font></i><font size=2> Our combined future
earnings, cash flows and fair values relating to financial instruments are
dependent upon prevalent market rates of interest, primarily LIBOR. Based upon
consolidated indebtedness and interest rates at June 30, 2001, a 0.50% increase
in the market rates of interest would decrease annual future earnings and cash
flows by approximately $10.0 million, and would decrease the fair value of debt
by approximately $446.8 million. A 0.50% decrease in the market rates of
interest would increase annual future earnings and cash flows by approximately
$10.0 million, and would increase the fair value of debt by approximately
$513.8 million.&nbsp; We manage our exposure
to interest rate risk by a combination of interest rate protection agreements
to effectively fix or cap a portion of our variable rate debt and by
refinancing fixed rate debt at times when rates and terms are appropriate.</font></p>

<page>


<p><a name=PartIiOtherInformation><b><font size=2>Part II
- Other Information</font></b></a></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item
1:&nbsp; Legal Proceedings</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Please
refer to Note 9 of the combined financial statements for a summary of material
pending litigation.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item
4: Submissions of Matters to a Vote of Security Holders</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
annual meetings of the stockholders of SPG and SRC were held on April 2,
2001.&nbsp; The matters submitted to the
stockholders for a vote included (a) the election of 6 directors to the SPG&#146;s
Board of Directors and the election of 10 directors to the SRC&#146;s Board of
Directors; and (b) the ratification of the appointment Arthur Andersen LLP as
independent accountants for the fiscal year ending December 31, 2001.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following tables set forth the results of voting on these matters:</font></p>

<p><b><font size=2>SPG:</font></b></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="23%" valign=bottom><b><font size=2>Matter:</font></b></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="18%" valign=bottom><b><font size=2>Number
  of Votes FOR</font></b></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom><b><font size=2>Number
  of Votes WITHHELD</font></b></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><b><font size=2>Number
  of Abstentions/Broker-Non Votes</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="23%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="18%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="23%" valign=bottom>&nbsp;</td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="18%" valign=bottom>&nbsp;</td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom>&nbsp;</td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom>&nbsp;</td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Election of Directors:</font></td>
  <td  align=right width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Birch Bayh</font></td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
  <td  align=right width="18%" valign=bottom><font   size=2>135,383,335</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,222,062</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Hans C. Mautner</font></td>
  <td  align=right width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" valign=bottom bgcolor="#cceeff"><font   size=2>135,519,527</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,085,870</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>G. William Miller</font></td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
  <td  align=right width="18%" valign=bottom><font   size=2>135,450,351</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,155,046</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>J. Albert Smith, Jr.</font></td>
  <td  align=right width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" valign=bottom bgcolor="#cceeff"><font   size=2>110,303,498</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>29,301,899</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Pieter S. van den Berg</font></td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
  <td  align=right width="18%" valign=bottom><font   size=2>135,514,165</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,091,232</font></td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Philip J. Ward</font></td>
  <td  align=right width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" valign=bottom bgcolor="#cceeff"><font   size=2>118,373,405</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>21,230,992</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom>&nbsp;</td>
  <td  align=right width="5%" valign=top>&nbsp;</td>
  <td  align=right width="18%" valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom>&nbsp;</td>
  <td width="5%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom>&nbsp;</td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Ratification of
  appointment of Arthur Andersen LLP</font></td>
  <td  align=right width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="18%" valign=bottom bgcolor="#cceeff"><font   size=2>139,340,578</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>183,965</font></td>
  <td width="5%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>80,854</font></td>
  <td width="2%" valign=bottom bgcolor="#cceeff"><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><b><font size=2>SRC:</font></b></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td  align=center width="23%" valign=bottom><b><font size=2>Matter:</font></b></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="19%" valign=bottom><b><font size=2>Number
  of Votes FOR</font></b></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom><b><font size=2>Number
  of Votes WITHHELD</font></b></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><b><font size=2>Number
  of Abstentions/Broker-Non Votes</font></b></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="23%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="19%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Election of Directors:</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=center width="19%" valign=bottom>&nbsp;</td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=center width="17%" valign=bottom>&nbsp;</td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom>&nbsp;</td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Birch Bayh</font></td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font   size=2>135,444,275</font></td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,161,122</font></td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Hans C. Mautner</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>135,519,661</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,085,736</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>G. William Miller</font></td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font   size=2>135,349,770</font></td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,255,627</font></td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Melvin Simon</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>135,461,039</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,144,358</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Herbert Simon</font></td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font   size=2>135,478,634</font></td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,126,763</font></td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>David Simon</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>113,789,912</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>25,815,485</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>J. Albert Smith, Jr.</font></td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font   size=2>135,522,659</font></td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,082,738</font></td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Richard S. Sokolov</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>135,483,666</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>4,121,731</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff"><font size=2>Pieter S. van den Berg</font></td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff"><font   size=2>135,513,367</font></td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff"><font   size=2>4,092,030</font></td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff"><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Philip J. Ward</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>124,924,033</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>14,681,364</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>None</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="5%" valign=top bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="19%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="5%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=right width="17%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="4%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="22%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
  <td  align=center width="1%" valign=bottom bgcolor="#cceeff">&nbsp;</td>
 </tr>
 <tr>
  <td width="23%" valign=bottom><font size=2>Ratification of
  appointment of Arthur Andersen LLP</font></td>
  <td  align=center width="5%" valign=top>&nbsp;</td>
  <td  align=right width="19%" valign=bottom><font   size=2>139,340,578</font></td>
  <td  align=center width="5%" valign=bottom>&nbsp;</td>
  <td  align=right width="17%" valign=bottom><font   size=2>183,965</font></td>
  <td  align=center width="4%" valign=bottom>&nbsp;</td>
  <td  align=center width="22%" valign=bottom><font   size=2>80,854</font></td>
  <td  align=center width="1%" valign=bottom>&nbsp;</td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>Members
of the SPG&#146;s Board of Directors whose term of office as director continued
after the Annual Meeting other than those elected are Melvin Simon, Herbert
Simon, David Simon, Richard S. Sokolov, Frederick W. Petri and M. Denise
DeBartolo York.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item
5:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
June 11, 2001, SPG announced that it had appointed Melvyn E. Bergstein as a
director of SPG and SRC.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item
6:&nbsp; Exhibits and Reports on Form 8-K</font></p>

<dir><dir>
<p><font size=2>(a)
Exhibits</font></p>
</dir></dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Reports on Form 8-K</font></p>

<dir><dir><dir>
<p><font size=2>One
report on Form 8-K was filed during the current period.</font></p>
</dir></dir></dir>

<dir><dir><dir>
<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On May 11, 2001 under
Item 5 - Other Events, SPG reported that it made available additional ownership
and operational information concerning the Companies, the Operating
Partnerships, and the properties owned or managed as of March 31, 2001, in the
form of a Supplemental Information Package. A copy of the package was included
as an exhibit to the 8-K filing. In addition, SPG reported that, on May 8,
2001, it issued a press release containing information on earnings as of March
31, 2001 and other matters. A copy of the press release was included as an
exhibit to the filing.</font></p>
</dir></dir></dir>

<p><font size=2>&nbsp;</font></p>

<page>


<p align=center><a name=Signature><b><font size=2>SIGNATURE</font></b></a></p>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><b><font size=2>SIMON
  PROPERTY GROUP, INC. AND</font></b></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><b><font size=2>SPG
  REALTY CONSULTANTS, INC.</font></b></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><font size=2>/s/
  Stephen E. Sterrett</font></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top>
<hr size=1 width="35%" noshade color=black align=left></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><font size=2>Stephen
  E. Sterrett,</font></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><font size=2>Executive
  Vice President and Chief Financial Officer</font></td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="52%" valign=top>&nbsp;</td>
  <td width="47%" valign=top><font size=2>Date:
  August 14, 2001</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

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