SIMON PROPERTY GROUP INC.

Previous wording

We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets®, and The Mills®. As of June 30, 2026, we owned or held an interest in 212 income-producing properties in the United States, which consisted of 107 malls, 68 Premium Outlets, 16 Mills, six lifestyle centers, and 15 other retail properties in 38 states and Puerto Rico. Internationally, as of June 30, 2026, we had ownership in 42 properties primarily located in Asia, Europe, and Canada. As of June 30, 2026, we also owned a 20.7% equity stake in Klépierre SA, or Klépierre, a publicly traded, Paris-based real estate company which owns, or has an interest in, shopping centers located in 13 countries in Europe. We also have interests in investments in retail operations (such as Catalyst Brands LLC, or Catalyst); an e-commerce venture (Rue Gilt Groupe, or RGG, which operates shop.simon.com), and Jamestown (a global real estate investment and management company), collectively, our other platform investments.

Current wording

We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets®, and The Mills®. As of September 30, 2026, we owned or held an interest in 212 income-producing properties in the United States, which consisted of 107 malls, 67 Premium Outlets, 16 Mills, six lifestyle centers, and 16 other retail properties in 38 states and Puerto Rico. Internationally, as of September 30, 2026, we had ownership in 42 properties primarily located in Asia, Europe, and Canada. As of September 30, 2026, we also owned a 20.7% equity stake in Klépierre SA, or Klépierre, a publicly traded, Paris-based real estate company which owns, or has an interest in, shopping centers located in 13 countries in Europe. We also have interests in investments in retail operations (such as Catalyst Brands LLC, or Catalyst); an e-commerce venture (Rue Gilt Groupe, or RGG, which operates shop.simon.com), and Jamestown (a global real estate investment and management company), collectively, our other platform investments.

Previous wording

We focus on high quality real estate across the retail real estate spectrum. We expand or redevelop properties to enhance profitability and market share of existing assets when we believe the investment of our capital meets our risk-reward criteria. We selectively develop new properties in markets we believe are not adequately served by existing retail outlet properties.

Current wording

We focus on high quality real estate across the retail real estate spectrum. We expand or redevelop properties to enhance profitability and market share of existing assets when we believe the investment of our capital meets our risk-reward criteria. We selectively develop new properties in markets we believe are not adequately served by existing retail properties.

Previous wording

Diluted earnings per share and diluted earnings per unit were $2.97 during the first six months of 2026 and the same period last year. The changes to the components of these diluted earnings per share and diluted earnings per unit primarily consisted of:

Current wording

Diluted earnings per share and diluted earnings per unit decreased $0.32 during the first nine months of 2026 to $4.51 from $4.83 for the same period last year. The net changes to the components of these diluted earnings per share and diluted earnings per unit primarily consisted of:

Previous wording

Portfolio NOI increased 7.5% for the six month period in 2026 over the prior year period primarily as a result of improved operations in our domestic and international portfolios and our acquisition activity. Average base minimum rent for U.S. Malls and Premium Outlets increased 6.3% to $62.42 psf as of June 30, 2026, from $58.70 psf as of June 30, 2025. Ending occupancy for our U.S. Malls and Premium Outlets was 96.0% as of each of June 30, 2026, and 2025.

Current wording

Portfolio NOI increased 7.2% for the nine month period in 2026 over the prior year period primarily as a result of improved operations in our domestic and international portfolios and our acquisition activity. Average base minimum rent for U.S. Malls and Premium Outlets increased 6.1% to $62.75 psf as of September 30, 2026, from $59.14 psf as of September 30, 2025. Ending occupancy for our U.S. Malls and Premium Outlets increased 0.1% to 96.5% as of September 30, 2026, from 96.4% as of September 30, 2025.

Previous wording

Our effective overall borrowing rate at June 30, 2026 on our consolidated indebtedness increased 30 basis points to 3.93% as compared to 3.63% at June 30, 2025. This is primarily due to an increase in the effective overall borrowing rate on the fixed rate debt of 25 basis points. The weighted average years to maturity of our consolidated indebtedness was 6.9 years and 7.0 years at June 30, 2026 and December 31, 2025, respectively.

Current wording

Our effective overall borrowing rate at September 30, 2026 on our consolidated indebtedness increased 33 basis points to 4.07% as compared to 3.74% at September 30, 2025. This is primarily due to an increase in the effective overall borrowing rate on the fixed rate debt of 28 basis points. The weighted average years to maturity of our consolidated indebtedness was 7.1 years and 7.0 years at September 30, 2026 and December 31, 2025, respectively.

Previous wording

Our financing activity for the six months ended June 30, 2026 included:

Current wording

Our financing activity for the nine months ended September 30, 2026 included:

Previous wording

U.S. Malls and Premium Outlets portfolio, comprising approximately 5.9 million square feet, of which 4.7 million square feet related to consolidated properties. During the comparable period in 2025, we signed 526 new leases and 997 renewal leases with a fixed minimum rent, comprising approximately 5.7 million square feet, of which 4.3 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $78.58 per square foot in 2026 and $67.36 per square foot in 2025 with an average tenant allowance on new leases of $53.67 per square foot and $60.79 per square foot, respectively.

Current wording

During the nine months ended September 30, 2026, we signed 853 new leases and 1,419 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 8.6 million square feet, of which 6.8 million square feet related to consolidated properties. During the comparable period in 2025, we signed 819 new leases and 1,383 renewal leases with a fixed minimum rent, comprising approximately 8.3 million square feet, of which 6.4 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $76.03 per square foot in 2026 and $65.09 per square foot in 2025 with an average tenant allowance on new leases of $54.12 per square foot and $60.13 per square foot, respectively.

Previous wording

Lease income increased $280.3 million, driven by an increase of $197.5 million due to our acquisition activity, our development activity, and increases in fixed and variable lease consideration.

Current wording

Lease income increased $228.5 million, driven by an increase of $181.2 million due to our acquisition activity, our development activity, and increases in fixed and variable lease consideration.

Previous wording

Other income increased $9.0 million as a result of a $19.1 million increase in Simon Media and Experiences and a $4.5 million increase in mixed use and franchise income, partially offset by a $14.6 million decrease in interest income.

Current wording

Other income decreased $24.7 million as a result of 2025 land sale activity of $18.7 million, a $14.7 million decrease in interest income and a $5.9 million decrease in distributions and other income sources, partially offset by a $14.6 million increase in Simon Media and Experiences.

Previous wording

Property operating expenses increased $31.6 million, due to inflationary cost increases and $27.2 million related to our acquisition activity.

Current wording

Property operating expenses increased $31.0 million, due to inflationary cost increases and $22.3 million related to our acquisition activity.

Previous wording

Home and regional office costs increased $14.9 million due to increased personnel and compensation costs, including adjustments to performance-based stock compensation accruals to reflect current results and our expectations of future performance.

Current wording

Home and regional office costs increased $6.1 million due to increased personnel and compensation costs, including adjustments to performance-based stock compensation accruals to reflect current results and our expectation of future performance.

Previous wording

Interest expense increased $48.4 million, of which $38.5 million related to our acquisition activity, and due to increases related to USD note and commercial paper issuances of $32.8 million, partially offset by a USD bond payoff of $16.2 million and the reduced amounts outstanding on the Euro exchangeable bond, which reduced interest expense by $5.7 million.

Current wording

Interest expense increased $44.8 million, of which $38.2 million related to our acquisition activity, due to increases related to USD note and commercial paper issuances of $25.3 million and Euro note issuances of $5.3 million, partially offset by a USD bond payoff of $13.0 million and the reduced amounts outstanding on the Euro exchangeable bond, which reduced interest expense by $7.2 million.

Previous wording

Simon’s net income attributable to noncontrolling interests increased $28.2 million due to an increase in the net income of the Operating Partnership.

Current wording

Simon’s net income attributable to noncontrolling interests decreased $30.2 million due to a decrease in the net income of the Operating Partnership.

Previous wording

Lease income increased $541.4 million, driven by an increase of $386.7 million due to our acquisition activity, our development activity, and increases in fixed and variable lease consideration.

Current wording

Lease income increased $769.8 million, driven by an increase of $567.9 million due to our acquisition activity, our development activity, and increases in fixed and variable lease consideration.

Previous wording

Other income increased $25.6 million as a result of a $30.7 million increase in Simon Media and Experiences, an $8.7 million increase in mixed use and franchise income, a $5.6 million increase in distribution income and other income sources and a $4.7 million increase in lease settlement income, partially offset by a $24.1 million decrease in interest income.

Current wording

Other income increased $0.8 million as a result of a $45.3 million increase in Simon Media and Experiences, a $10.3 million increase in mixed use and franchise income, and a $2.0 million increase in lease settlement, distribution income and other income sources, partially offset by a $38.8 million decrease in interest income and an $18.0 million decrease in land sale activity.

Previous wording

Property operating expenses increased $65.6 million, due to inflationary cost increases and $48.9 million related to our acquisition activity.

Current wording

Property operating expenses increased $96.6 million, due to inflationary cost increases and $71.3 million related to our acquisition activity.

Previous wording

Real estate taxes increased $26.6 million, of which $20.0 million relates to our acquisition activity, and due to a large successful property tax appeal impacting 2025.

Current wording

Real estate taxes increased $66.0 million, of which $59.8 million relates to our acquisition activity, with the remainder primarily due to a large successful property tax appeal impacting 2025.

Previous wording

Repairs and maintenance increased $16.5 million, of which $9.9 million relates to our acquisition activity, inflationary cost increases, and an increase in snow removal costs in 2026.

Current wording

Repairs and maintenance increased $22.5 million, of which $14.2 million relates to our acquisition activity, with the remainder primarily due to inflationary cost increases and an increase in snow removal costs in 2026.

Previous wording

Home and regional office costs increased $12.3 million due to increased personnel and compensation costs, including adjustments to performance-based stock compensation accruals to reflect current results and our expectations of future performance.

Current wording

Home and regional office costs increased $20.9 million due to increased personnel and compensation costs, including adjustments to performance-based stock compensation accruals to reflect current results and our expectations of future performance.

Previous wording

General and administrative increased $39.4 million, which includes $40.0 million of accelerated stock compensation expense.

Current wording

General and administrative costs increased $34.5 million, which includes $40.0 million of accelerated stock compensation expense.

Previous wording

Interest expense increased $97.1 million, of which $77.8 million relates to our acquisition activity, and due to increases related to USD note and commercial paper issuances of $60.3 million and a $2.4 million increase due to the issuance of a Euro term loan, partially offset by a USD bond payoff of $31.3 million and the reduced amounts outstanding on the Euro exchangeable bond which reduced interest expense by $13.5 million.

Current wording

Interest expense increased $141.9 million, of which $116.1 million relates to our acquisition activity, and due to increases related to USD note and commercial paper issuances of $85.6 million and a $6.2 million increase due to the issuance of a Euro term loan, partially offset by a USD bond payoff of $44.4 million and the reduced amounts outstanding on the Euro exchangeable bond which reduced interest expense by $20.7 million.

Previous wording

(Loss) gain due to disposal, exchange, or revaluation of equity interests, net, decreased $98.8 million. In 2026, we recorded transition and restructuring costs of $18.3 million related to Catalyst and to the TRG Acquisition. In 2025, we recorded a net pre-tax gain within Catalyst of $80.5 million, primarily because of the deconsolidation of Forever 21.

Current wording

(Loss) gain due to disposal, exchange, or revaluation of equity interests, net, decreased $98.2 million. In 2026, we recorded transition and restructuring costs of $26.6 million related to Catalyst and to the TRG Acquisition. In 2025, we recorded a net pre-tax gain within Catalyst of $71.6 million, primarily because of the deconsolidation of Forever 21.

Previous wording

Income and other tax (expense) benefit decreased $36.6 million, due to a larger tax benefit related to Catalyst operations and restructuring charges of $9.9 million, as well as a non-cash tax expense of $27.8 million related to the gain from Catalyst related to the deconsolidation of Forever 21 during 2025.

Current wording

Income and other tax benefit (expense) improved $74.3 million, due to a non-cash tax benefit of $30.0 million related to the mark-to-market adjustment on equity securities in 2026 and a larger tax benefit in 2026 related to Catalyst operations of $15.0 million, as well as a non-cash tax expense of $27.8 million from the gain at Catalyst related to the deconsolidation of Forever 21 during 2025.

Previous wording

Income from unconsolidated entities decreased $55.4 million, primarily due to lower results of operations from our other platform investments, partially offset by a strong performance of our domestic and international joint venture properties.

Current wording

Income from unconsolidated entities decreased $46.3 million, primarily due to lower results of operations from our other platform investments, partially offset by a strong performance of our domestic and international joint venture properties.

Previous wording

We recorded net non-cash unrealized losses of $31.0 million in 2026 and $87.2 million in 2025 as a result of mark-to-market activity on publicly traded equity instruments and the change in fair value of a derivative instrument.

Current wording

We recorded non-cash unrealized losses of $160.6 million in 2026, which includes a $120.0 million mark-to-market adjustment on equity securities held within an unconsolidated investment and a $40.6 million loss on the change in fair value of a derivative instrument, and $85.0 million of non-cash unrealized losses in 2025 as a result of the change in fair value of a derivative instrument.

Previous wording

During 2026, we recorded a $64.3 million gain related to the exchange of 4,074,711 shares of Klépierre to settle the conversion of €110.3 million of the Operating Partnership’s exchangeable bonds, partially offset by a non-cash other-than-temporary impairment charge representing our remaining equity method investment in a real estate venture of $8.7 million. During 2025, we recognized a $9.6 million loss on the disposition of certain Klépierre assets.

Current wording

During 2026, we recorded a $64.3 million gain related to the exchange of 4,074,711 shares of Klépierre to settle the conversion of €110.3 million of the Operating Partnership’s exchangeable bonds, a non-cash $10.7 million net gain related to the recapitalization of our investment in an unconsolidated property, partially offset by a non-cash other-than-temporary impairment charge representing our remaining equity method investment in a real estate venture of $8.7 million. During 2025, we recognized a $2.1 million gain related to excess insurance proceeds, partially offset by a $1.3 million loss on the disposition of certain Klépierre assets.

Previous wording

Because we own long-lived income-producing assets, our financing strategy relies primarily on long-term fixed rate debt. Floating rate debt comprised 4.5% of our total consolidated debt at June 30, 2026. We also enter into interest rate protection agreements from time to time to manage our interest rate risk. We derive most of our liquidity from positive net cash flow from operations and distributions of capital from unconsolidated entities that totaled $2.3 billion in the aggregate during the six months ended June 30, 2026. The Credit Facilities and the Commercial Paper program provide alternative sources of liquidity as our cash needs vary from time to time. Borrowing capacity under these sources may be increased as discussed further below.

Current wording

Because we own long-lived income-producing assets, our financing strategy relies primarily on long-term fixed rate debt. Floating rate debt comprised 4.5% of our total consolidated debt at September 30, 2026. We also enter into interest rate protection agreements from time to time to manage our interest rate risk. We derive most of our liquidity from positive net cash flow from operations and distributions of capital from unconsolidated entities that totaled $3.4 billion in the aggregate during the nine months ended September 30, 2026. The Credit Facilities and the Commercial Paper program provide alternative sources of liquidity as our cash needs vary from time to time. Borrowing capacity under these sources may be increased as discussed further below.

Previous wording

Our balance of cash and cash equivalents increased $195.9 million during the first six months of 2026 to $1.0 billion as of June 30, 2026 as a result of the operating and financing activity, as further discussed in “Cash Flows” below.

Current wording

Our balance of cash and cash equivalents decreased $253.2 million during the first nine months of 2026 to $569.9 million as of September 30, 2026 as a result of the operating and financing activity, as further discussed in “Cash Flows” below.

Previous wording

On June 30, 2026, we had an aggregate available borrowing capacity of approximately $7.7 billion under the Credit Facilities, net of letters of credit of $3.1 million. For the six months ended June 30, 2026, the maximum aggregate outstanding balance under the Credit Facilities was $460.0 million and the weighted average outstanding balance was $429.5 million. The weighted average interest rate was 4.06% for the six months ended June 30, 2026.

Current wording

On September 30, 2026, we had an aggregate available borrowing capacity of approximately $7.7 billion under the Credit Facilities, net of letters of credit of $3.1 million. For the nine months ended September 30, 2026, the maximum aggregate outstanding balance under the Credit Facilities was $460.0 million and the weighted average outstanding balance was $284.8 million. The weighted average interest rate was 4.06% for the nine months ended September 30, 2026.

Previous wording

Our business model and Simon’s status as a REIT require us to regularly access the debt markets to raise funds for acquisition, development and redevelopment activity, and to refinance maturing debt. Simon may also, from time to time, access the equity capital markets to accomplish our business objectives. We believe we have sufficient cash on hand and availability under the Credit Facilities and the Commercial Paper program to address our debt maturities and capital needs through 2026.

Current wording

Our business model and Simon’s status as a REIT require us to regularly access the debt markets to raise funds for acquisition, development and redevelopment activity, and to refinance maturing debt. Simon may also, from time to time, access the equity capital markets to accomplish our business objectives. We believe we have sufficient cash on hand and availability under the Credit Facilities and the Commercial Paper program to address our debt maturities and capital needs through 2026 and 2027.

Previous wording

Our net cash flow from operating activities and distributions of capital from unconsolidated entities for the six months ended June 30, 2026 totaled $2.3 billion. In addition, we had net proceeds from our debt financing and repayment activities of $504.4 million in the first six months of 2026. These activities are further discussed below under “Financing and Debt.” During the first six months of 2026, we also:

Current wording

Our net cash flow from operating activities and distributions of capital from unconsolidated entities for the nine months ended September 30, 2026 totaled $3.4 billion. In addition, we had net proceeds from our debt financing and repayment activities of $295.5 million in the first nine months of 2026. These activities are further discussed below under “Financing and Debt.” During the first nine months of 2026, we also:

Previous wording

At June 30, 2026, our unsecured debt, excluding discounts and debt issuance costs, consisted of $19.0 billion of senior unsecured notes of the Operating Partnership, a €350.0 million ($399.3 million U.S. dollar equivalent) unsecured term loan, a $460.0 million unsecured term loan, and $846.4 million outstanding under the Commercial Paper program.

Current wording

At September 30, 2026, our unsecured debt, excluding discounts and debt issuance costs, consisted of $19.6 billion of senior unsecured notes of the Operating Partnership, a €350.0 million ($397.0 million U.S. dollar equivalent) unsecured term loan, a $460.0 million unsecured term loan, and $755.0 million outstanding under the Commercial Paper program.

Previous wording

At June 30, 2026, we had an aggregate available borrowing capacity of $7.7 billion under the Credit Facilities. The maximum aggregate outstanding balance under the Credit Facilities during the six months ended June 30, 2026 was $460.0 million and the weighted average outstanding balance was $429.5 million. Letters of credit of $3.1 million were outstanding under the Credit Facilities as of June 30, 2026.

Current wording

At September 30, 2026, we had an aggregate available borrowing capacity of $7.7 billion under the Credit Facilities. The maximum aggregate outstanding balance under the Credit Facilities during the nine months ended September 30, 2026 was $460.0 million and the weighted average outstanding balance was $284.8 million. Letters of credit of $3.1 million were outstanding under the Credit Facilities as of September 30, 2026.

Previous wording

The Operating Partnership also has available a Commercial Paper program of $2.0 billion, or the non-U.S. dollar equivalent thereof. The Operating Partnership may issue unsecured commercial paper notes, denominated in U.S. dollars, Euro and other currencies. Notes issued in non-U.S. currencies may be issued by one or more subsidiaries of the Operating Partnership and are guaranteed by the Operating Partnership. Notes will be sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above)pari passu with the Operating Partnership's other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and, if necessary or

Current wording

The Operating Partnership also has available a Commercial Paper program of $2.0 billion, or the non-U.S. dollar equivalent thereof. The Operating Partnership may issue unsecured commercial paper notes, denominated in U.S. dollars, Euro and other currencies. Notes issued in non-U.S. currencies may be issued by one or more subsidiaries of the Operating Partnership and are guaranteed by the Operating Partnership. Notes will be sold under customary terms in the U.S. and Euro commercial paper note markets and rank (either by themselves or as a result of the guarantee described above)pari passu with the Operating Partnership's other unsecured senior indebtedness. The Commercial Paper program is supported by the Credit Facilities and, if necessary or appropriate, we may make one or more draws under either of the Credit Facilities to pay amounts outstanding from time to time on the Commercial Paper program. On September 30, 2026, we had $755.0 million outstanding under the Commercial Paper program, fully comprised of U.S. dollar denominated notes with a weighted average interest rate of 3.97%. These borrowings have a weighted average maturity date of October 15, 2026 and reduced amounts otherwise available under the Credit Facilities.

Previous wording

During the first half of 2026, we settled the conversion of €547.1 million ($641.6 million U.S. dollar equivalent) of the Operating Partnership’s exchangeable bonds, which are exchangeable at the option of the bondholder into shares of Klépierre, reducing the outstanding balance to €187.5 million ($213.9 million U.S. dollar equivalent) as of June 30, 2026. Amounts settled through the exchange of Klépierre shares are discussed in Note 6. The remaining conversions were settled in cash for €548.7 million ($643.3 million U.S. dollar equivalent). Subsequent to June 30, 2026, we settled additional conversions of €86.3 million of the exchangeable bonds in cash for €115.7 million, further reducing the exchangeable bonds’ outstanding balance to €101.2 million.

Current wording

During the first nine months of 2026, we settled the conversion of €706.4 million ($824.3 million U.S. dollar equivalent) of the Operating Partnership’s exchangeable bonds, which are exchangeable at the option of the bondholder into shares of Klépierre, reducing the outstanding balance to €28.2 million ($32.0 million U.S. dollar equivalent) as of September 30, 2026. Amounts settled through the exchange of Klépierre shares are discussed in Note 6. The remaining conversions were settled in cash for €770.2 million ($898.7 million U.S. dollar equivalent).

Previous wording

Total mortgage indebtedness was $8.1 billion and $8.2 billion at June 30, 2026 and December 31, 2025, respectively. On October 31, 2025, as part of the TRG Acquisition, discussed in Note 4 of the condensed notes to the consolidated financial statements, the Operating Partnership’s consolidated debt increased $3.1 billion. Subsequent to June 30, 2026, we unencumbered one property from its $375.0 million mortgage using existing liquidity.

Current wording

Total mortgage indebtedness was $7.4 billion and $8.2 billion at September 30, 2026 and December 31, 2025, respectively. On October 31, 2025, as part of the TRG Acquisition, discussed in Note 4 of the condensed notes to the consolidated financial statements, the Operating Partnership’s consolidated debt increased $3.1 billion. During the third quarter of 2026, we unencumbered two properties using existing liquidity, which reduced mortgage indebtedness by $540.0 million.

Previous wording

At June 30, 2026, our consolidated subsidiaries were the borrowers under 41 non-recourse mortgage notes secured by mortgages on 44 properties and other assets, including two separate pools of cross-defaulted and cross-collateralized mortgages encumbering a total of five properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties that serve as collateral for that debt. If the applicable borrower under these non-recourse mortgage notes were to fail to comply with these covenants, the lender could accelerate the debt and enforce its rights against their collateral. At June 30, 2026, the applicable borrowers under these non-recourse mortgage notes were in compliance with all covenants where non-compliance could individually or in the aggregate, giving effect to applicable cross-default provisions, have a material adverse effect on our financial condition, liquidity or results of operations.

Current wording

At September 30, 2026, our consolidated subsidiaries were the borrowers under 38 non-recourse mortgage notes secured by mortgages on 42 properties and other assets, including three separate pools of cross-defaulted and cross-collateralized mortgages encumbering a total of seven properties. Under these cross-default provisions, a default under any mortgage included in the cross-defaulted pool may constitute a default under all mortgages within that pool and may lead to acceleration of the indebtedness due on each property within the pool. Certain of our secured debt instruments contain financial and other non-financial covenants which are specific to the properties that serve as collateral for that debt. If the applicable borrower under these non-recourse mortgage notes were to fail to comply with these covenants, the lender could accelerate the debt and enforce its rights against their collateral. At September 30, 2026, the applicable borrowers under these non-recourse mortgage notes were in compliance with all covenants where non-compliance could individually or in the aggregate, giving effect to applicable cross-default provisions, have a material adverse effect on our financial condition, liquidity or results of operations.

Previous wording

Our off-balance sheet arrangements consist primarily of our investments in joint ventures which are common in the real estate industry and are described in Note 6 of the condensed notes to the consolidated financial statements. Our joint ventures typically fund their cash needs through secured debt financings obtained by and in the name of the joint venture entity. The joint venture debt is secured by a first mortgage, is without recourse to the joint venture partners, and does not represent a liability of the partners, except to the extent the partners or their affiliates expressly guarantee the joint venture debt. In addition to the guarantee disclosed in Note 6 of the condensed notes of the consolidated financial statements, as of June 30, 2026, the Operating Partnership guaranteed joint venture-related mortgage indebtedness of $124.0 million. Mortgages guaranteed by the Operating Partnership are secured by the property of the joint venture which could be sold in order to satisfy the outstanding obligation and which has an estimated fair value in excess of the guaranteed amount. We may elect to fund cash needs of a joint venture through equity contributions (generally on a basis proportionate to our ownership interests), advances or partner loans, although such fundings are not typically required contractually or otherwise.

Current wording

Our off-balance sheet arrangements consist primarily of our investments in joint ventures which are common in the real estate industry and are described in Note 6 of the condensed notes to the consolidated financial statements. Our joint ventures typically fund their cash needs through secured debt financings obtained by and in the name of the joint venture entity. The joint venture debt is secured by a first mortgage, is without recourse to the joint venture partners, and does not represent a liability of the partners, except to the extent the partners or their affiliates expressly guarantee the joint venture debt. In addition to the guarantee disclosed in Note 6 of the condensed notes of the consolidated financial statements, as of September 30, 2026, the Operating Partnership guaranteed joint venture-related mortgage indebtedness of $128.4 million. Mortgages guaranteed by the Operating Partnership are secured by the property of the joint venture which could be sold in order to satisfy the outstanding obligation and which has an estimated fair value in excess of the guaranteed amount. We may elect to fund cash needs of a joint venture through equity contributions (generally on a basis proportionate to our ownership interests), advances or partner loans, although such fundings are not typically required contractually or otherwise.

Previous wording

Construction continues on certain redevelopment and new development projects in the U.S. and internationally that are nearing completion. Our share of the costs of all new development, redevelopment and expansion projects currently under construction is approximately $1.1 billion. Simon’s share of remaining net cash funding required to complete the new development and redevelopment projects currently under construction in the remainder of 2026 and 2027 is approximately $346.0 million. We expect to fund these capital projects with cash flows from operations. We seek a stabilized return on invested capital in the range of 8-10% for all of our new development, expansion and redevelopment projects.

Current wording

Construction continues on certain redevelopment and new development projects in the U.S. and internationally that are nearing completion. Our share of the costs of all new development, redevelopment and expansion projects currently under construction is approximately $1.2 billion. Simon’s share of remaining net cash funding required to complete the new development and redevelopment projects currently under construction in the remainder of 2026 and 2027 is approximately $342.0 million. We expect to fund these capital projects with cash flows from operations. We seek a stabilized return on invested capital in the range of 8-10% for all of our new development, expansion and redevelopment projects.

Previous wording

International Development Activity. We typically reinvest net cash flow from our international joint ventures to fund future international development activity. We believe this strategy mitigates some of the risk of our initial investment and our exposure to changes in foreign currencies. We have also funded most of our foreign investments with local currency-denominated borrowings that act as a natural hedge against fluctuations in exchange rates. Our consolidated net income exposure to changes in the volatility of the Euro, Yen, Peso, Won, and other foreign currencies is not material. We expect our share of estimated committed capital for international development projects to be completed with projected delivery in 2026 or 2027 is $2.0 million, which we expect will be primarily funded through reinvested joint venture cash flow and construction loans.

Current wording

International Development Activity. We typically reinvest net cash flow from our international joint ventures to fund future international development activity. We believe this strategy mitigates some of the risk of our initial investment and our exposure to changes in foreign currencies. We have also funded most of our foreign investments with local currency-denominated borrowings that act as a natural hedge against fluctuations in exchange rates. Our consolidated net income exposure to changes in the volatility of the Euro, Yen, Peso, Won, and other foreign currencies is not material. We expect our share of estimated committed capital for international development projects to be completed with projected delivery in 2026 or 2027 is $2.7 million, which we expect will be primarily funded through reinvested joint venture cash flow and construction loans.