The following is a summary of our full-length report on this topic, also dated October 12, 2005.

* SPG Outperforms Office and Residential REITS:
In contrast to office and residential REITS, which have struggled with
occupancy and rental rates, operations at SPG's retail properties have
been strong. 2Q05 occupancy rate was up 90 bps to 92.2%, while rent per
square foot (psf) and sales psf were up 3.8% and 5.5%, respectively, to
$34.16 and $442.

* Double-Digit Sales and Earnings:
2Q05 revenues increased 28.3% to $747 million reflecting contributions
from the outlet centers and higher rental rates. EBITDA increased 25.9%
to $482 million, representing 64.5% of sales. Funds from operations
improved 25.4% to $335.2 million.

* Solid Credit Metrics:
Debt as of 6/30/05 was $14.2 billion, with secured debt representing 33%.
EBITDA/(int exp + pfd div) deteriorated slightly to 2.3x from 2.4x in FY04,
while (debt + pfd stock)/EBITDA improved to 8.1x from 9.3x. We expect credit
metrics to improve moderately in 2H05 from the contribution of outlet centers
and new retail centers.

* We View SPG as an Outperform:
SPG bond spreads appear cheap in view of its ratings, strong occupancy rates,
and solid credit profile.

Source: UBS