<PAGE>

                                UNITED STATES
                            SECURITIES AND EXCHANGE
                       COMMISSION Washington, D.C. 20549


                                   FORM 10-Q


           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 1999


                          SIMON PROPERTY GROUP, L.P.
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                                Delaware
                ----------------------------------------
                (State of incorporation or organization)

                                   33-11491
                                   --------
                             (Commission File No.)

                                  34-1755769
                                  ----------
                     (I.R.S. Employer Identification No.)

                             National City Center
                   115 West Washington Street, Suite 15 East
                          Indianapolis, Indiana 46204
                          ---------------------------
                   (Address of principal executive offices)

                                (317) 636-1600
                                --------------
             (Registrant's telephone number, including area code)


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. YES  [X]  NO [ ]

                                       1
<PAGE>

                          SIMON PROPERTY GROUP, L.P.

                                   FORM 10-Q

                                     INDEX


Part I - Financial Information                                         Page

         Item 1: Financial Statements

                 Consolidated Condensed Balance Sheets as of
                 June 30, 1999 and December 31, 1998                     3

                 Consolidated Condensed Statements of Operations
                 for the three-month and six-month periods
                 ended June 30, 1999 and 1998                            4

                 Consolidated Condensed Statements of Cash Flows
                 for the six-month periods ended June 30, 1999
                 and 1998                                                5

         Notes to Unaudited Consolidated Condensed Financial
         Statements                                                      6

         Item 2: Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                    15

         Item 3: Qualitative and Quantitative Disclosure About
                 Market Risk                                            22

Part II - Other Information

         Items 1 through 6                                              23

Signature                                                               24

                                       2
<PAGE>

                          SIMON PROPERTY GROUP, L.P.
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                     (Unaudited and dollars in thousands)


<TABLE>
<CAPTION>

                                                                                   June 30,     December 31,
                                                                                     1999           1998
                                                                                 -----------   -------------

ASSETS:
<S>   <C>                                                                         <C>             <C>
      Investment properties, at cost                                              $12,237,005     $11,662,860
      Less -- accumulated depreciation                                                905,040         709,114
                                                                                  -----------     -----------
                                                                                   11,331,965      10,953,746
      Goodwill, net                                                                    41,356          58,134
      Cash and cash equivalents                                                       139,591         124,466
      Tenant receivables and accrued revenue, net                                     234,173         217,341
      Notes and advances receivable from Management Company and affiliate             128,441         115,378
      Note receivable from SRC Operating Partnership                                       --          20,565
      Investment in partnerships and joint ventures, at equity                      1,073,057       1,303,251
      Investment in Management Company and affiliates                                  14,452          10,037
      Other investment                                                                 52,289          50,176
      Deferred costs and other assets                                                 236,017         227,684
      Minority interest                                                                34,365          32,138
                                                                                  -----------     -----------
              Total assets                                                        $13,285,706     $13,112,916
                                                                                  ===========     ===========

LIABILITIES:
      Mortgages and other indebtedness                                            $ 8,273,822     $ 7,972,381
      Notes payable to SRC Operating Partnership (Interest at 8%, due 2008)             6,008          17,907
      Accounts payable and accrued expenses                                           420,437         410,445
      Cash distributions and losses in partnerships and joint ventures, at equity      30,901          29,139
      Other liabilities                                                                85,713          95,243
                                                                                  -----------     -----------
              Total liabilities                                                     8,816,881       8,525,115
                                                                                  -----------     -----------

COMMITMENTS AND CONTINGENCIES (Note 11)

PARTNERS' EQUITY:

      Preferred units, 15,897,602 and 16,053,580 units outstanding, respectively      858,059       1,057,245

      General Partners, 168,168,385 and 161,487,017 units outstanding,
       respectively                                                                 2,633,447       2,540,660

      Limited Partners, 64,176,334 and 64,182,157 units outstanding,
       respectively                                                                 1,004,975       1,009,646

      Unamortized restricted stock award                                              (27,656)        (19,750)
                                                                                  -----------     -----------
              Total partners' equity                                                4,468,825       4,587,801
                                                                                  -----------     -----------
              Total liabilities and partners' equity                              $13,285,706     $13,112,916
                                                                                  ===========     ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       3
<PAGE>

                          SIMON PROPERTY GROUP, L.P.
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
         (Unaudited and dollars in thousands, except per unit amounts)


<TABLE>
<CAPTION>
                                                        For the Three Months Ended June 30,     For the Six Months Ended June 30,
                                                        -----------------------------------    ----------------------------------
                                                             1999                1998              1999                1998
                                                        ---------------     --------------     -------------      ---------------
<S>                                                     <C>                 <C>                <C>                <C>
REVENUE:
    Minimum rent                                         $   273,384         $    186,474       $ 543,991          $  370,934
    Overage rent                                              14,556               10,701          27,923              20,483
    Tenant reimbursements                                    138,469               91,811         274,481             181,971
    Other income                                              27,010               21,389          48,218              37,244
                                                         -----------         ------------       ---------          ----------
        Total revenue                                        453,419              310,375         894,613             610,632
                                                         -----------         ------------       ---------          ----------
EXPENSES:
    Property operating                                        71,295               50,479         139,145             100,258
    Depreciation and amortization                             88,836               58,313         177,414             116,618
    Real estate taxes                                         43,573               28,764          89,841              58,959
    Repairs and maintenance                                   16,850               11,655          36,652              23,550
    Advertising and promotion                                 14,717                8,621          29,233              16,722
    Provision for credit losses                                2,914                  733           4,708               3,455
    Other                                                      6,743                6,584          14,423              12,177
                                                         -----------         ------------       ---------          ----------
        Total operating expenses                             244,928              165,149         491,416             331,739
                                                         -----------         ------------       ---------          ----------
OPERATING INCOME                                             208,491              145,226         403,197             278,893

INTEREST EXPENSE                                             145,488               92,510         284,058             184,420
                                                         -----------         ------------       ---------          ----------
INCOME BEFORE MINORITY INTEREST                               63,003               52,716         119,139              94,473

MINORITY INTEREST                                             (3,688)              (2,154)         (5,503)             (3,596)
LOSSES ON SALES OF ASSETS                                     (4,188)              (7,219)         (4,188)             (7,219)
                                                         -----------         ------------       ---------          ----------
INCOME BEFORE UNCONSOLIDATED ENTITIES                         55,127               43,343         109,448              83,658

INCOME FROM UNCONSOLIDATED ENTITIES                           12,608                  171          24,925               4,980
                                                         -----------         ------------       ---------          ----------
INCOME BEFORE EXTRAORDINARY ITEMS                             67,735               43,514         134,373              88,638

EXTRAORDINARY ITEMS                                              (43)               7,024          (1,817)              7,024
                                                         -----------         ------------       ---------          ----------
NET INCOME                                                    67,692               50,538         132,556              95,662

PREFERRED UNIT REQUIREMENT                                   (16,123)              (7,334)        (33,828)            (14,668)
                                                         -----------         ------------       ---------          ----------
NET INCOME AVAILABLE TO UNITHOLDERS                      $    51,569         $     43,204       $  98,728          $   80,994
                                                         ===========         ============       =========          ==========
NET INCOME AVAILABLE TO UNITHOLDERS
  ATTRIBUTABLE TO:
        Managing General Partner (SPG)                   $    12,051         $         --       $  22,400          $       --
        General Partners (SPG Properties, Inc.
         and SD Property Group, Inc.)                         25,260               27,467          48,788              51,415
        Limited Partners                                      14,258               15,737          27,540              29,579
                                                         -----------         ------------       ---------          ----------
        Net income                                       $    51,569         $     43,204       $  98,728          $   80,994
                                                         ===========         ============       =========          ==========
BASIC EARNINGS PER UNIT:
        Income before extraordinary items                $      0.22         $       0.21       $    0.44          $     0.42
        Extraordinary items                                    (0.00)                0.04           (0.01)               0.04
                                                         -----------         ------------       ---------          ----------
        Net income                                       $      0.22         $       0.25       $    0.43          $     0.46
                                                         ===========         ============       =========          ==========
DILUTED EARNINGS PER UNIT:
        Income before extraordinary items                $      0.22         $       0.20       $    0.44          $     0.42
        Extraordinary items                                    (0.00)                0.04           (0.01)               0.04
                                                         -----------         ------------       ---------          ----------
        Net income                                       $      0.22         $       0.24       $    0.43          $     0.46
                                                         ===========         ============       =========          ==========
</TABLE>

       The accompanying notes are an integral part of these statements.

                                       4
<PAGE>
                          SIMON PROPERTY GROUP, L.P.
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                     (Unaudited and dollars in thousands)

<TABLE>
<CAPTION>


                                                                             For the Six Months Ended June 30,
                                                                          ---------------------------------------
                                                                                1999                   1998
                                                                          ---------------        ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                       <C>                    <C>
  Net income                                                               $     132,556          $       95,662
     Adjustments to reconcile net income to net cash provided
       by operating activities--
         Depreciation and amortization                                           182,901                 120,915
         Extraordinary items                                                       1,817                  (7,024)
         Losses on sales of assets                                                 4,188                   7,219
         Straight-line rent                                                       (8,875)                 (4,091)
         Minority interest                                                         5,503                   3,596
         Equity in income of unconsolidated entities                             (24,925)                 (4,980)
     Changes in assets and liabilities--
         Tenant receivables and accrued revenue                                   (1,544)                  4,507
         Deferred costs and other assets                                          (6,427)                 (1,866)
         Accounts payable, accrued expenses and other liabilities                 (4,961)                   (817)
                                                                          ---------------        ----------------
           Net cash provided by operating activities                             280,233                 213,121
                                                                          ---------------        ----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Acquisitions                                                                (99,254)               (243,355)
     Capital expenditures                                                       (198,643)               (126,776)
     Change in restricted cash                                                        --                   2,591
     Cash from acquisitions and consolidation of joint ventures, net              10,812                   4,387
     Net proceeds from sales of assets                                            42,000                  46,087
     Investments in unconsolidated entities                                      (32,338)                 (6,554)
     Note payment from the SRC Operating Partnership                              20,565                      --
     Distributions from unconsolidated entities                                  163,463                 113,426
     Investments in and advances to Management Company and affiliates            (13,063)                (17,045)
                                                                          ---------------        ----------------
         Net cash used in investing activities                                  (106,458)               (227,239)
                                                                          ---------------        ----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Partnership contributions, net                                                1,253                  92,350
     Partnership distributions                                                  (266,883)               (190,425)
     Minority interest distributions, net                                         (8,142)                 (6,326)
     Note payable to the SRC Operating Partnership                               (11,899)                     --
     Mortgage and other note proceeds, net of transaction costs                1,091,808               1,485,545
     Mortgage and other note principal payments                                 (964,787)             (1,373,360)
                                                                          ---------------        ----------------
        Net cash provided by (used in) financing activities                     (158,650)                  7,784
                                                                          ---------------        ----------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                  15,125                  (6,334)

CASH AND CASH EQUIVALENTS, beginning of period                                   124,466                 109,699
                                                                          ---------------        ----------------
CASH AND CASH EQUIVALENTS, end of period                                   $     139,591         $       103,365
                                                                          ===============       =================
</TABLE>


       The accompanying notes are an integral part of these statements.

                                       5
<PAGE>

                          SIMON PROPERTY GROUP, L.P.

        Notes to Unaudited Consolidated Condensed Financial Statements

   (Dollars in thousands, except per Unit amounts and where indicated as in
                                   billions)

1. Organization

          Simon Property Group, L.P. (the "SPG Operating Partnership"), a
Delaware limited partnership, formerly known as Simon DeBartolo Group, L.P.
("SDG, LP"), is a majority owned subsidiary of Simon Property Group Inc.
("SPG"), a Delaware corporation. SPG is a self-administered and self-managed
real estate investment trust ("REIT") under the Internal Revenue Code of 1986,
as amended (the "Code"). Each share of common stock of SPG is paired with a
beneficial interest in 1/100th of a share of common stock of SPG Realty
Consultants, Inc. ("SRC"), also a Delaware corporation. Units of ownership
interest ("Units") in the SPG Operating Partnership are paired with a beneficial
interest in 1/100th of a Unit in SPG Realty Consultants, L.P. (the "SRC
Operating Partnership"). The SRC Operating Partnership is the primary subsidiary
of SRC.


          The SPG Operating Partnership, is engaged primarily 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, 1999, the SPG Operating Partnership owned or held an interest in 240
income-producing properties in the United States, which consisted of 152
regional malls, 76 community shopping centers, four specialty retail centers,
five office and mixed-use properties and three value-oriented super-regional
malls in 35 states (the "Properties"), and one asset in Europe. The SPG
Operating Partnership also owned interests in one regional mall, one value-
oriented super-regional mall, three community centers and one outlet center
currently under construction and twelve parcels of land held for future
development. In addition, the SPG Operating Partnership holds substantially all
of the economic interest in M.S. Management Associates, Inc. (the "Management
Company" See Note 8). The SPG Operating Partnership holds substantially all of
the economic interest in, and the Management Company holds substantially all of
the voting stock of, DeBartolo Properties Management, Inc. ("DPMI"), which
provides architectural, design, construction and other services to substantially
all of the Properties, as well as certain other regional malls and community
shopping centers owned by third parties. SPG owned 72.4% and 71.6% of the SPG
Operating Partnership at June 30, 1999 and December 31, 1998, respectively.

Note 2 - Basis of Presentation

          The accompanying consolidated 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 (consisting solely of normal
recurring matters) necessary for a fair presentation of the consolidated
condensed financial statements for these interim periods have been included. The
results for the interim period ended June 30, 1999 are not necessarily
indicative of the results to be obtained for the full fiscal year. These
unaudited consolidated condensed financial statements should be read in
conjunction with the SPG Operating Partnership's December 31, 1998 audited
financial statements and notes thereto included in its Annual Report on Form
10-K.

          The accompanying consolidated condensed financial statements of the
SPG Operating Partnership include all accounts of all entities owned or
controlled by the SPG Operating Partnership. All significant intercompany
amounts have been eliminated. The accompanying consolidated financial statements
have been prepared in accordance with generally accepted accounting principles,
which requires management to make estimates and assumptions that affect the
reported amounts of the SPG Operating Partnership's assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the reported periods. Actual results
could differ from these estimates.

          Properties which are wholly-owned or owned less than 100% and are
controlled by the SPG Operating Partnership are accounted for using the
consolidated method of accounting. Control is demonstrated by the ability of the
general partner to manage day-to-day operations, refinance debt and sell the
assets of the partnership without the consent of the limited partner and the
inability of the limited partner to replace the general partner. Investments in
partnerships and joint ventures which represent noncontrolling ownership
interests and the investment in the Management Company are accounted for using
the equity method of accounting. These investments are recorded initially at
cost and subsequently adjusted for net equity in income (loss) and cash
contributions and distributions.

          Net operating results of the SPG Operating Partnership are allocated
after preferred distributions, based on its partners' weighted average ownership
interests during the period. SPG's weighted average direct and indirect
ownership interest in the SPG Operating Partnership for the three months ended
June 30, 1999 and 1998 was 72.4% and 63.6%, respectively. SPG's

                                       6
<PAGE>

weighted average direct and indirect ownership interest in the SPG Operating
Partnership for the six months ended June 30, 1999 and 1998 was 72.1% and 63.5%,
respectively.

3. CPI Merger

          For financial reporting purposes, as of the close of business on
September 24, 1998, the CPI Merger was consummated pursuant to the Agreement and
Plan of Merger dated February 18, 1998, among Simon DeBartolo Group, Inc.
("SDG"), Corporate Property Investors, Inc. ("CPI"), and Corporate Realty
Consultants, Inc. ("CRC").

          Pursuant to the terms of the CPI Merger, a subsidiary of CPI merged
with and into SDG with SDG continuing as the surviving company. SDG became a
majority-owned subsidiary of CPI. The outstanding shares of common stock of SDG
were exchanged for a like number of shares of CPI. Beneficial interests in CRC
were acquired for $14,000 in order to pair the common stock of CPI with 1/100th
of a share of common stock of CRC, the paired share affiliate.

          Immediately prior to the consummation of the CPI Merger, the holders
of CPI common stock were paid a merger dividend consisting of (i) $90 in cash,
(ii) 1.0818 additional shares of CPI common stock and (iii) 0.19 shares of 6.50%
Series B convertible preferred stock of CPI per share of CPI common stock.
Immediately prior to the CPI Merger, there were 25,496,476 shares of CPI common
stock outstanding. The aggregate value associated with the completion of the CPI
Merger was approximately $5.9 billion including transaction costs and
liabilities assumed.

          To finance the cash portion of the CPI Merger consideration, $1.4
billion was borrowed under a new senior unsecured medium term bridge loan, which
bears interest at a base rate of LIBOR plus 65 basis points and matures in three
mandatory amortization payments (on June 22, 1999, March 24, 2000 and September
24, 2000) (see Note 9). An additional $237,000 was also borrowed under the SPG
Operating Partnership's existing $1.25 billion credit facility (the "Credit
Facility"). In connection with the CPI Merger, CPI was renamed "Simon Property
Group, Inc." and CPI's paired share affiliate, Corporate Realty Consultants,
Inc., was renamed "SPG Realty Consultants, Inc." In addition SDG and SDG, LP
were renamed "SPG Properties, Inc.", and "Simon Property Group, L.P.",
respectively.

     Upon completion of the CPI Merger, SPG transferred substantially all of the
CPI assets acquired, which consisted primarily of 23 regional malls, one
community center, two office buildings and one regional mall under construction
(other than one regional mall, Ocean County Mall, and certain net leased
properties valued at approximately $153,100) and liabilities assumed (except
that SPG remains a co-obligor with respect to the Merger Facility (see Note 9))
of approximately $2.3 billion to the SPG Operating Partnership or one or more
subsidiaries of the SPG Operating Partnership in exchange for 47,790,550 limited
partnership interests and 5,053,580 preferred partnership interests in the SPG
Operating Partnership. The preferred partnership interests carry the same rights
and equal the number of preferred shares issued and outstanding as a direct
result of the CPI Merger.

          SPG accounted for the merger between SDG and the CPI merger subsidiary
as a reverse purchase in accordance with Accounting Principles Board Opinion No.
16. Although paired shares of the former CPI and CRC were issued to SDG common
stock holders and SDG became a substantially wholly owned subsidiary of CPI
following the CPI Merger, CPI is considered the business acquired for accounting
purposes. SDG is considered the acquiring company because the SDG common
stockholders became majority holders of the common stock of SPG. The value of
the consideration paid by SDG has been allocated to the estimated fair value of
the CPI assets acquired and liabilities assumed which resulted in goodwill of
$42,518, as adjusted. Goodwill is being amortized over the estimated life of the
properties acquired, which is 35 years. Accumulated amortization of goodwill as
of June 30, 1999 and December 31, 1998 was $1,162 and $414, respectively.
Purchase accounting will be finalized when the SPG Operating Partnership
completes and implements its combined operating plan, which is expected to occur
by the third quarter of 1999.

          SDG, LP contributed $14,000 cash to CRC and $8,000 cash to the SRC
Operating Partnership on behalf of the SDG common stockholders and the limited
partners of SDG, LP to obtain the beneficial interests in common stock of CRC,
which were paired with the shares of common stock issued by SPG ("Paired
Shares"), and to obtain Units in the SRC Operating Partnership so that the
limited partners of SDG, LP would hold the same proportionate interest in the
SRC Operating Partnership that they hold in SDG, LP. The cash contributed to CRC
and the SRC Operating Partnership on behalf of the partners of SDG, LP was
accounted for as a distribution to the partners.

                                       7
<PAGE>

  Pro Forma

  The following unaudited pro forma summary financial information excludes any
extraordinary items and reflects the consolidated results of operations of the
SPG Operating Partnership as if the CPI Merger had occurred as of January 1,
1998, and was carried forward through June 30, 1998. Preparation of the pro
forma summary information was based upon assumptions deemed appropriate by
management. The pro forma summary information is not necessarily indicative of
the results which actually would have occurred if the CPI Merger had been
consummated at January 1, 1998, nor does it purport to represent the results of
operations for future periods.

<TABLE>
<CAPTION>
                                                                               Six Months Ended
                                                                                 June 30, 1998
                                                                           -----------------------
<S>                                                                          <C>
Revenue                                                                               $    811,197
                                                                           =======================
Net income (1)                                                                             121,730
                                                                           =======================
Net income available to Unitholders                                                         84,462
                                                                           =======================
Net income per Unit (1)                                                               $       0.38
                                                                           =======================
Net income per Unit - assuming dilution                                               $       0.38
                                                                           =======================
Weighted average number of Units outstanding                                           223,889,393
                                                                           =======================
Weighted average number of Units outstanding  assuming dilution                        224,280,389
                                                                           =======================
</TABLE>

  (1) Includes a net gain on the sales of assets of $38,075, or $0.17 on a basic
  earnings per Unit basis.

Note 4 - Reclassifications

         Certain reclassifications of prior period amounts have been made in the
financial statements to conform to the 1999 presentation. These
reclassifications have no impact on the net operating results previously
reported.

Note 5 - Per Unit Data

         Basic earnings per Unit is based on the weighted average number of
Units outstanding during the period and diluted earnings per Unit is based on
the weighted average number of Units outstanding combined with the incremental
weighted average Units that would have been outstanding if all dilutive
potential Units would have been converted into Units at the earliest date
possible. The weighted average number of Units used in the computation for the
three-month periods ended June 30, 1999 and 1998 was 232,231,002 and
176,098,843, respectively. The weighted average number of Units used in the
computation for the six-month periods ended June 30, 1999 and 1998 was
230,067,437 and 174,599,824, respectively. The diluted weighted average number
of Units used in the computation for the three-month periods ended June 30, 1999
and 1998 was 232,498,343 and 176,489,839, respectively. The diluted weighted
average number of Units used in the computation for the six-month periods ended
June 30, 1999 and 1998 was 230,285,798 and 174,989,025, respectively. Both
series of convertible preferred Units issued and outstanding during the
comparative periods did not have a dilutive effect on earnings per Unit. The
increase in weighted average Units outstanding under the diluted method over the
basic method in every period presented for the SPG Operating Partnership is due
entirely to the effect of outstanding stock options. Basic earnings and diluted
earnings were the same for all periods presented.

Note 6 - Cash Flow Information

         Cash paid for interest, net of amounts capitalized, during the six
months ended June 30, 1999 was $270,768 as compared to $186,614 for the same
period in 1998. Accrued and unpaid distributions were $873 and $3,428 at June
30, 1999 and December 31, 1998, respectively, and represented distributions
payable on the Series A Convertible Preferred Units. See Notes 7 and 10 for
information about non-cash transactions during the six months ended June 30,
1999.

Note 7   Other Acquisitions and Development

         During the first six months of 1999 the SPG Operating Partnership
acquired the remaining ownership interests in four Properties for a total of
approximately $147,500, including the assumption of approximately $48,500 of
mortgage indebtedness. These purchases were funded primarily with borrowings
from the Credit Facility. Each of the Properties purchased were previously
accounted for using the equity method of accounting and are now accounted for
using the consolidated method of accounting.

         On April 15, 1999, the SPG Operating Partnership sold the land at
Three Dag Hammarskjold in New York, New York for $9,500, which was accounted for
as an adjustment to the purchase price. Also in the second quarter of 1999, one
community

                                       8
<PAGE>

shopping center was sold for $4,200, resulting in a loss of $4,188. In addition,
on June 18, 1999, the SPG Operating Partnership sold a parcel of land, which was
accounted for as an adjustment to the purchase price. The net proceeds of
approximately $28,300 were used to reduce the outstanding borrowings on the
Credit Facility.

          In January of 1999, The Shops at Sunset Place opened in South Miami,
Florida. The SPG Operating Partnership owns a noncontrolling 37.5% interest in
this 510,000 square-foot destination-oriented retail and entertainment project.

                                       9
<PAGE>

Note 8 - Investment in Unconsolidated Entities

          Partnerships and Joint Ventures

          Summary financial information of the SPG Operating Partnership's
investment in partnerships and joint ventures accounted for using the equity
method of accounting and a summary of the SPG Operating Partnership's investment
in and share of income from such partnerships and joint ventures follow:

<TABLE>
<CAPTION>
                                                                              June 30,              December 31,
BALANCE SHEETS                                                                  1999                    1998
                                                                         -----------------       -----------------
<S>                                                                      <C>                     <C>
Assets:
  Investment properties at cost, net                                            $4,170,365              $4,265,022
  Cash and cash equivalents                                                        149,924                 171,553
  Tenant receivables                                                               135,109                 140,579
  Note receivable from affiliate (Interest at 9.0%, due 2005)                       20,227                  25,174
  Other assets                                                                     118,503                 100,938
                                                                         -----------------       -----------------
          Total assets                                                          $4,594,128              $4,703,266
                                                                         =================       =================

Liabilities and Partners' Equity:
  Mortgages and other indebtedness                                              $3,000,058              $2,861,589
  Accounts payable, accrued expenses and other liabilities                         199,953                 223,631
                                                                         -----------------       -----------------
          Total liabilities                                                      3,200,011               3,085,220
  Partners' equity                                                               1,394,117               1,618,046
                                                                         -----------------       -----------------
          Total liabilities and partners' equity                                $4,594,128              $4,703,266
                                                                         =================       =================

SPG Operating Partnership's Share of:
  Total assets                                                                  $1,747,355              $1,905,459
                                                                         =================       =================
  Partners' equity                                                              $  450,957              $  565,496
  Add: Excess Investment (See below)                                               591,199                 708,616
                                                                         -----------------       -----------------
  SPG Operating Partnership's Net Investment in Joint Ventures                  $1,042,156              $1,274,112
                                                                         =================       =================
</TABLE>

<TABLE>
<CAPTION>
                                                    For the Three Months Ended             For the Six Months Ended
                                                  -------------------------------      -------------------------------
                                                             June 30,                             June 30,
                                                  -------------------------------      -------------------------------
STATEMENTS OF OPERATIONS                               1999             1998               1999              1998
                                                  -------------     -------------      -------------     -------------
<S>                                               <C>               <C>                <C>               <C>
Revenue:
  Minimum rent                                         $125,359          $106,881           $252,492          $197,562
  Overage rent                                            4,679             4,988              8,521             7,810
  Tenant reimbursements                                  60,080            44,782            119,686            86,658
  Other income                                            7,714             5,534             15,152            11,220
                                                  -------------     -------------      -------------     -------------
     Total revenue                                      197,832           162,185            395,851           303,250

Operating Expenses:
  Operating expenses and other                           71,330            56,866            142,637           107,503
  Depreciation and amortization                          36,335            31,835             71,065            61,625
                                                  -------------     -------------      -------------     -------------
     Total operating expenses                           107,665            88,701            213,702           169,128
                                                  -------------     -------------      -------------     -------------
Operating Income                                         90,167            73,484            182,149           134,122
Interest Expense                                         49,928            46,501             97,216            85,178
Extraordinary Losses                                         --                42                 --                42
                                                  -------------     -------------      -------------     -------------
Net Income                                               40,239            26,941             84,933            48,902
Third Party Investors' Share of Net Income               24,933            17,207             52,439            34,030
                                                  -------------     -------------      -------------     -------------
SPG Operating Partnership's Share of Net Income        $ 15,306          $  9,734           $ 32,494          $ 14,872
Amortization of Excess Investment (See below)            (5,606)           (3,417)           (11,663)           (5,402)
                                                  =============     =============      =============     =============
Income from Unconsolidated Entities                    $  9,700          $  6,317           $ 20,831          $  9,470
                                                  =============     =============      =============     =============
</TABLE>

          As of June 30, 1999 and December 31, 1998, the unamortized excess of
the SPG Operating Partnership's investment over its share of the equity in the
underlying net assets of the partnerships and joint ventures ("Excess
Investment") was $591,199 and $708,616, respectively. This Excess Investment is
being amortized generally over the life of the related Properties.

                                      10
<PAGE>

Amortization included in income from unconsolidated entities for the three-month
periods ended June 30, 1999 and 1998 was $5,606 and $3,417, respectively.
Amortization included in income from unconsolidated entities for the six-month
periods ended June 30, 1999 and 1998 was $11,663 and $5,402, respectively.

          The net income or net loss for each partnership and joint venture is
allocated in accordance with the provisions of the applicable partnership or
joint venture agreement. The allocation provisions in these agreements are not
always consistent with the ownership interest held by each general or limited
partner or joint venturer, primarily due to partner preferences.

          The Management Company

          The Management Company, including its consolidated subsidiaries,
provides management, leasing, development, accounting, legal, marketing and
management information systems services to five wholly-owned Properties, 25 non
wholly-owned Properties, Melvin Simon & Associates, Inc., and certain other
nonowned properties. Certain subsidiaries of the Management Company provide
architectural, design, construction, insurance and other services primarily to
certain of the Properties. The Management Company also invests in other
businesses to provide other synergistic services to the Properties. The SPG
Operating Partnership's share of consolidated net income of the Management
Company, after intercompany profit eliminations, was $2,908 and ($6,146) for the
three-month periods ended June 30, 1999 and 1998, and was $4,094 and ($4,490)
for the six-month periods ended June 30, 1999 and 1998, respectively.

Note 9 - Debt

          At June 30, 1999, the SPG Operating Partnership had consolidated debt
of $8,273,822, of which $6,369,823 was fixed-rate debt and $1,903,999 was
variable-rate debt. The SPG Operating Partnership's pro rata share of
indebtedness of the unconsolidated joint venture Properties as of June 30, 1999
was $1,250,367. As of June 30, 1999, the SPG Operating Partnership had interest-
rate protection agreements related to $687,999 of its consolidated indebtedness.
The agreements are generally in effect until the related variable-rate debt
matures. The SPG Operating Partnership's hedging activity did not materially
impact interest expense during the comparative periods.

          In January of 1999, the SPG Operating Partnership retired the $21,910
mortgage on North East Mall, which bore interest at 10% and had a stated
maturity of September, 2000, using cash from working capital. The paydown
included a $1,774 prepayment charge, which was recorded as an extraordinary
loss. In June of 1999, a new $17,709 mortgage was placed on North East Mall
bearing interest at 6.74%, with a stated maturity of May 2002. The net proceeds
were added to working capital.

          On February 4, 1999, the SPG Operating Partnership completed the sale
of $600,000 of senior unsecured notes. These notes include two $300,000
tranches. The first tranche bears interest at 6.75% and matures on February 4,
2004 and the second tranche bears interest at 7.125% and matures on February 4,
2009. The SPG Operating Partnership used the net proceeds of approximately
$594,000 primarily to retire the $450,000 initial tranche of the Merger Facility
and to pay $142,000 on the outstanding balance of the Credit Facility.

                                      11
<PAGE>

Note 10 - Partners' Equity

     The following table summarizes the changes in Partners' equity since
December 31, 1998.

<TABLE>
<CAPTION>
                                                              General Partners
                                                        -------------------------------
                                                         Managing                                         Unamortized       Total
                                        Preferred        General          Non-managing       Limited      Restricted      Partners'
                                          Units          Partner       General Partners      Partners     Stock Award      Equity
                                     --------------     -----------    ----------------    ------------   -----------     ---------
<S>                                  <C>                <C>            <C>                 <C>            <C>             <C>
Balance at December 31, 1998           $1,057,245       $751,948          $1,788,712        $1,009,646       (19,750)    $4,587,801

Managing General Partner
 Contributions (77,988 Units)                              1,899                                                              1,899

Conversion of 155,978 Series A
 Preferred Units into 5,926,440
 Units (2)                               (199,320)       198,787                                                               (533)

Units issued as dividend
 (153,890 Units) (2)                                       4,016                                                              4,016

Stock incentive program (523,050
 Units, net of forfeitures)                               13,562                (336)                        (13,273)           (47)

Amortization of stock incentive                                                                                5,367          5,367

Units converted to cash (5,823
 Units)                                                                                           (154)                        (154)

Other                                         134                                                                               134

Adjustment to allocate net
 equity of the SPG Operating
 Partnership                                             (89,080)             56,898            32,182                           --

Distributions                             (33,828)       (50,854)           (114,824)          (64,821)                    (264,327)
                                     ------------       --------       -------------       -----------    ----------     ----------
Subtotal                                  824,231        830,278           1,730,450           976,853       (27,656)     4,334,156

Comprehensive Income:
--------------------

Unrealized gain on investment (1)                            496               1,035               582                        2,113

Net income                                 33,828         22,400              48,788            27,540                      132,556
                                     ------------       --------       -------------       -----------    ----------     ----------
Total Comprehensive Income                 33,828         22,896              49,823            28,122            --        134,669
                                     ------------       --------       -------------       -----------    ----------     ----------
Balance at June 30, 1999               $  858,059       $853,174          $1,780,273        $1,004,975      $(27,656)    $4,468,825
                                     ============       ========       =============       ===========    ==========     ==========
</TABLE>

(1)  Amounts consist of the unrealized gain resulting from the change in market
     value of 1,408,450 shares of common stock of Chelsea GCA Realty, Inc.
     ("Chelsea"), a publicly traded REIT, which the SPG Operating Partnership
     purchased on June 16, 1997. The investment in Chelsea is being reflected in
     the accompanying consolidated condensed balance sheets as other investment.

(2)  On February 26, 1999, 150,000 Series A Convertible Preferred Units were
     converted into 5,699,304 Units. On March 1, 1999, another 152,346 Units
     were issued to the holders of the converted Units in lieu of the cash
     dividends allocable to these preferred Units. Additionally, on May 10, 1999
     another 5,978 Units of Series A Convertible Preferred Units were converted
     into 227,136 Units, with another 1,544 Units issued in lieu of the cash
     dividends allocable to those preferred Units. At June 30, 1999, 53,271
     Series A Convertible Preferred Units remained outstanding.

          The Simon Property Group 1998 Stock Incentive Plan

     At the time of the CPI Merger, the SPG Operating Partnership adopted The
Simon Property Group 1998 Stock Incentive Plan (the "1998 Plan"). The 1998 Plan
provides for the grant of equity-based awards during the ten-year period
following its adoption, in the form of options to purchase Paired Shares
("Options"), stock appreciation rights ("SARs"), restricted stock grants and
performance unit awards (collectively, "Awards"). Options may be granted which
are qualified as "incentive stock options" within the meaning of Section 422 of
the Code and Options which are not so qualified. In March of 1999, 533,696
Paired Shares of restricted stock were awarded to executives related to 1998
performance. As of June 30, 1999, 1,810,275 Paired Shares of

                                      12
<PAGE>

restricted stock, net of forfeitures, were deemed earned and awarded under the
1998 Plan. Approximately $2,654 and $3,100 relating to these programs were
amortized in the three-month periods ended June 30, 1999 and 1998, respectively
and approximately $5,367 and $4,447 relating to these programs were amortized in
the six-month periods ended June 30, 1999 and 1998, respectively. The cost of
restricted stock grants, which is based upon the stock's fair market value at
the time such stock is earned, awarded and issued, is charged to Partners'
equity and subsequently amortized against earnings of the SPG Operating
Partnership over the vesting period.

Note 11 - Commitments and Contingencies

          Litigation

          Richard E. Jacobs, et al. v. Simon DeBartolo Group, L.P. On September
3, 1998, a complaint was filed in the Court of Common Pleas in Cuyahoga County,
Ohio, captioned Richard E. Jacobs, et al. v. Simon DeBartolo Group, L.P. The
plaintiffs are all principals or affiliates of The Richard E. Jacobs Group, Inc.
("Jacobs"). The plaintiffs alleged in their complaint that the SPG Operating
Partnership engaged in malicious prosecution, abuse of process, defamation,
libel, injurious falsehood/unlawful disparagement, deceptive trade practices
under Ohio law, tortious interference and unfair competition in connection with
the SPG Operating Partnership's acquisition by tender offer of shares in RPT, a
Massachusetts business trust, and certain litigation instituted in September,
1997, by the SPG Operating Partnership against Jacobs in federal district court
in New York, wherein the SPG Operating Partnership alleged that Jacobs and other
parties had engaged, or were engaging in activity which violated Section 10(b)
of the Securities Exchange Act of 1934, as well as certain rules promulgated
thereunder. Plaintiffs in the Ohio action are seeking compensatory damages in
excess of $200,000, punitive damages and reimbursement for fees and expenses.
The SPG Operating Partnership moved to dismiss certain of plaintiffs' claims. On
March 31, 1999, the Ohio trial court dismissed the claims for malicious
prosecution and abuse of process as to all plaintiffs other than Jacobs Group,
Inc. On May 7, 1999, the trial court dismissed the claim of Jacobs Group, Inc.
for abuse of process. On May 21, 1999, SPG Operating Partnership filed its
answer to the complaint and asserted counterclaims against Jacobs Group, Inc.
for tortious interference with prospective business relations and contracts,
unfair competition, breach of fiduciary duty and breach of contract seeking
damages in excess of $425,000. On July 28, 1999, United States Court of Appeals,
Second Circuit, reversed the trial court's previously-imposed sanction against
the SPG Operating Partnership. It is difficult to predict the ultimate outcome
of this action and there can be no assurance that the SPG Operating Partnership
will receive a favorable verdict. Based upon the information known at this time,
in the opinion of management, it is not expected that this action will have a
material adverse effect on the SPG Operating Partnership.

          Carlo Angostinelli et al. v. DeBartolo Realty Corp. et al. On October
16, 1996, a complaint was filed in the Court of Common Pleas of Mahoning County,
Ohio, captioned Carlo Angostinelli et al. v. DeBartolo Realty Corp. et al. The
named defendants are SD Property Group, Inc., an indirect 99%-owned subsidiary
of the SPG Operating Partnership, and DPMI, 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 DRC Plan and that these
grants immediately vested under the DRC Plan's "change in control" provision as
a result of the DRC Merger. Plaintiffs asserted that the defendants' refusal to
issue them approximately 661,000 shares of DRC common stock, which is equivalent
to approximately 450,000 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 complaint was served on the defendants on October 28, 1996. The
plaintiffs and the defendants each filed motions for summary judgment. On
October 31, 1997, the Court entered a judgment in favor of the defendants
granting their motion for summary judgment. The plaintiffs have appealed this
judgment and the matter is pending. While it is difficult to predict the
ultimate outcome of this action, based on the information known to date, it is
not expected that this action will have a material adverse effect on the SPG
Operating Partnership.

          Roel Vento at al v. Tom Taylor et al. An affiliate of the SPG
Operating Partnership is a defendant in litigation entitled Roel Vento et al v.
Tom Taylor et al., in the District Court of Cameron County, Texas, in which a
judgment in the amount of $7,800 has been entered against all defendants. This
judgment includes approximately $6,500 of punitive damages and is based upon a
jury'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. The
SPG Operating Partnership 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 $3,384 plus interest. The
SPG Operating Partnership intends to file a petition for a writ of certiorari to
the Texas Supreme Court requesting that they review and revise the determination
of the Appellate Court. Management, based upon the advice of counsel, believes
that the ultimate outcome of this action will not have a material adverse effect
on the SPG Operating Partnership.

                                      13
<PAGE>

          The SPG Operating Partnership currently is not subject to any other
material litigation other than routine litigation and administrative proceedings
arising in the ordinary course of business. On the basis of consultation with
counsel, management believes that these items will not have a material adverse
impact on the SPG Operating Partnership's financial position or results of
operations.

Note 12--New Accounting Pronouncements

          On June 15, 1998, the FASB issued Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging Activities
("SFAS 133"). SFAS 133 establishes accounting and reporting standards requiring
that every derivative instrument (including certain derivative instruments
embedded in other contracts) be recorded in the balance sheet as either an asset
or liability measured at its fair value. SFAS 133 requires that changes in the
derivative's fair value be recognized currently in earnings unless specific
hedge accounting criteria are met. Special accounting for qualifying hedges
allows a derivative's gains and losses to offset related results on the hedged
item in the income statement, and requires that a company formally document,
designate, and assess the effectiveness of transactions that receive hedge
accounting.

          SFAS 133 will be effective for the SPG Operating Partnership beginning
with the 2001 fiscal year and may not be applied retroactively. Management does
not expect the impact of SFAS 133 to be material to the financial statements.
However, SFAS 133 could increase volatility in earnings and other comprehensive
income.

          On April 3, 1998, the Accounting Standards Executive Committee issued
Statement of Position 98-5 ("SOP 98-5"), Reporting on the Costs of Start-Up
Activities, which is effective for fiscal years beginning after December 15,
1998. The SPG Operating Partnership has assessed the impact of this
pronouncement and determined the impact to be immaterial to the financial
statements.

Note 13--Pending Acquisition

          On February 25, 1999 the SPG Operating Partnership entered into a
definitive agreement with New England Development Company ("NED") to acquire and
assume management responsibilities for NED's portfolio of up to 14 regional
malls aggregating approximately 10.6 million square feet of GLA. The purchase
price for the portfolio is approximately $1.7 billion. On April 15, 1999, the
SPG Operating Partnership executed a letter of intent to form a joint venture to
acquire the portfolio, with the SPG Operating Partnership's initial ownership to
be approximately 50%. The joint venture intends to complete the purchase of ten
of such regional malls in August of 1999 and up to four more by the end of 1999.

                                      14
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

          Certain statements made in this report may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the SPG Operating Partnership to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the following:
general economic and business conditions, which will, among other things, affect
demand for retail space or retail goods, availability and creditworthiness of
prospective tenants, lease rents and the terms and availability of financing;
adverse changes in the real estate markets including, among other things,
competition with other companies and technology; risks of real estate
development and acquisition; governmental actions and initiatives; substantial
indebtedness; conflicts of interests; maintenance of REIT status; risks related
to the "year 2000 issue"; and environmental/safety requirements.

          Overview

          For financial reporting purposes, as of the close of business on
September 24, 1998, the operating results include the CPI Merger described in
Note 3 to the financial statements. As a result, the 1999 consolidated results
of operations include an additional 16 regional malls, one office building and
one community center, with an additional six regional malls being accounted for
using the equity method of accounting.

          The following Property acquisitions, sales and opening (the "Property
Transactions"), also impacted the SPG Operating Partnership's consolidated
results of operations in the comparative periods. On January 26, 1998, the SPG
Operating Partnership acquired 100% of Cordova Mall in Pensacola, Florida for
approximately $87.3 million. In March of 1998, the SPG Operating Partnership
opened the approximately $13.3 million Muncie Plaza in Muncie, Indiana. On May
5, 1998, the SPG Operating Partnership acquired the remaining 50.1% interest in
Rolling Oaks Mall for 519,889 shares of SPG's common stock, valued at
approximately $17.2 million. Effective June 1, 1998, the SPG Operating
Partnership sold The Promenade for $33.5 million. Effective June 30, 1998, The
SPG Operating Partnership sold Southtown Mall for $3.3 million. On December 7,
1998, the SPG Operating Partnership obtained a controlling 90% interest in The
Arboretum, a community center in Austin, Texas for approximately $40.5 million.
On January 29, 1999, the SPG Operating Partnership acquired the remaining 15%
ownership interests in Lakeline Mall and Lakeline Plaza for approximately $21.8
million. On February 26, 1999, the SPG Operating Partnership acquired the
remaining 50% ownership interests in Century III Mall for approximately $57.0
million. On May 20, 1999, the SPG Operating Partnership sold Cohoes Commons for
$4.2 million. (See Liquidity and Capital Resources for additional information on
1999 acquisitions and dispositions.)

          Results of Operations

For the Three Months ended June 30, 1999 vs. the Three Months Ended June 30,
1998

          Total revenue increased $143.0 million or 46.1% for the three months
ended June 30, 1999, as compared to the same period in 1998. This increase is
primarily the result of the CPI Merger ($120.0 million) and the Property
Transactions ($10.2 million). Excluding these items, total revenues increased
$12.9 million or 4.1%, primarily due to a $10.5 million increase in minimum rent
and a $6.0 million increase in tenant reimbursements. The 5.9% comparable
increase in minimum rent results from increased occupancy levels and the
replacement of expiring tenant leases with renewal leases at higher minimum base
rents, while the $6.0 million increase in tenant reimbursements is offset by a
similar increase in recoverable expenses.

          Total operating expenses increased $79.8 million or 48.3% for the
three months ended June 30, 1999, as compared to the same period in 1998. This
increase is primarily the result of the CPI Merger ($65.9 million) and the
Property Transactions ($7.1 million). Excluding these transactions, total
operating expenses increased $6.8 million or 4.1%, primarily due to a $6.0
million increase in recoverable expenses, which is offset by an increase in
tenant reimbursements, as described above.

          Interest expense increased $53.0 million, or 57.3% for the three
months ended June 30, 1999, as compared to the same period in 1998. This
increase is primarily a result of the CPI Merger ($45.7 million), the Property
Transactions ($4.1 million), and additional interest ($1.0 million) on
indebtedness incurred by the SPG Operating Partnership, the net proceeds of
which were used to retire mortgage indebtedness on one of the joint venture
Properties and to pay down the Credit Facility. Excluding these transactions,
interest expense increased $2.2 million.

          Income from unconsolidated entities increased from $0.2 million in
1998 to $12.6 million in 1999, resulting from a $3.3 million increase in income
from unconsolidated partnerships and joint ventures and a $9.1 million increase
in income from the Management Company. The increase in income from
unconsolidated partnerships and joint ventures is primarily due to the CPI
Merger ($2.6 million).

                                      15
<PAGE>

          The $7.0 million extraordinary gain in 1998 is the result of a gain on
forgiveness of debt ($5.2 million) and the write-off of the premium on such
indebtedness ($1.8 million).

          Net income was $67.7 million for the three months ended June 30, 1999,
as compared to $50.5 million for the same period in 1998, reflecting an increase
of $17.2 million, primarily for the reasons discussed above. Net income was
allocated to the partners of the SPG Operating Partnership based on their
preferred Unit preferences and weighted average ownership interests in the SPG
Operating Partnership during the period.

For the Six Months ended June 30, 1999 vs. the Six Months Ended June 30, 1998

          Total revenue increased $284.0 million or 46.5% for the six months
ended June 30, 1999, as compared to the same period in 1998. This increase is
primarily the result of the CPI Merger ($231.7 million) and the Property
Transactions ($17.3 million). Excluding these items, total revenues increased
$35.0 million or 5.7%, primarily due to a $21.6 million increase in minimum rent
and a $13.0 million increase in tenant reimbursements. The 5.8% comparable
increase in minimum rent results from increased occupancy levels and the
replacement of expiring tenant leases with renewal leases at higher minimum base
rents, while the $13.0 million increase in tenant reimbursements was offset by
an increase in recoverable expenses.

          Total operating expenses increased $159.7 million or 48.1% for the six
months ended June 30, 1999, as compared to the same period in 1998. This
increase is primarily the result of the CPI Merger ($133.0 million) and the
Property Transactions ($11.3 million). Excluding these transactions, total
operating expenses increased $15.4 million or 4.6%, primarily due to a $14.9
million increase in recoverable expenses, which was offset by an increase in
tenant reimbursements, as described above.

          Interest expense increased $99.6 million, or 54.0% for the six months
ended June 30, 1999, as compared to the same period in 1998. This increase is
primarily a result of the CPI Merger ($84.6 million), the Property Transactions
($6.6 million), and additional interest ($2.0 million) on indebtedness incurred
by the SPG Operating Partnership, the net proceeds of which were used to retire
mortgage indebtedness on one of the joint venture Properties and to pay down the
Credit Facility and incremental interest on borrowings under the Credit Facility
to acquire a noncontrolling joint venture interest in twelve regional malls and
two community centers (the "IBM Properties") in February 1998 ($2.2 million).
Excluding these transactions, interest expense increased $4.2 million.

          Income from unconsolidated entities increased from $5.0 million in
1998 to $24.9 million in 1999, resulting from a $11.3 million increase in income
from unconsolidated partnerships and joint ventures and a $8.6 million increase
in income from the Management Company. The increase in income from
unconsolidated partnerships and joint ventures is primarily due to the CPI
Merger ($7.2 million) and the IBM Properties ($3.3 million).

          The $1.8 million extraordinary loss in 1999 is the result of
refinancing mortgage indebtedness. The $7.0 million extraordinary gain in 1998
is the result of a gain on forgiveness of debt ($5.2 million) and the write-off
of the premium on such indebtedness ($1.8 million).

          Net income was $132.6 million for the six months ended June 30, 1999,
as compared to $95.7 million for the same period in 1998, reflecting an increase
of $36.9 million, primarily for the reasons discussed above. Net income was
allocated to the partners of the SPG Operating Partnership based on their
preferred Unit preferences and weighted average ownership interests in the SPG
Operating Partnership during the period.

          Liquidity and Capital Resources

          As of June 30, 1999, the SPG Operating Partnership's balance of cash
and cash equivalents was approximately $139.6 million. In addition to its cash
balance, the SPG Operating Partnership had a borrowing capacity on the Credit
Facility of $926.0 million available after outstanding borrowings at June 30,
1999. The SPG Operating Partnership also has access to public equity and debt
markets. The SPG Operating Partnership has a debt shelf registration statement
under which $250 million in debt securities may be issued.

          Management anticipates that cash generated from operating performance
will provide the necessary funds on a short- and long-term basis for its
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: (i) excess cash generated from operating performance; (ii)
working capital reserves; (iii) additional debt financing; and (iv) additional
equity raised in the public markets.

                                      16
<PAGE>

          On February 26, 1999, 150,000 Series A Convertible Preferred Units
were converted into 5,699,304 Units. Additionally, on March 1, 1999, another
152,346 Units were issued in lieu of the cash dividends allocable to those
preferred Units. Additionally, on May 10, 1999 another 5,978 Series A
Convertible Preferred Units were converted into 227,136 Units, with another
1,544 Units issued in lieu of the cash dividends allocable to those preferred
Units. At June 30, 1999, 53,271 Series A Convertible Preferred Units remained
outstanding.

          Sensitivity Analysis

          The SPG Operating Partnership's future earnings, cash flows and fair
values relating to financial instruments are dependent upon prevalent market
rates of interest, such as LIBOR. Based upon consolidated indebtedness and
interest rates at June 30, 1999, a 1% increase in the market rates of interest
would decrease future earnings and cash flows by approximately $13.4 million per
year, and would decrease the fair value of debt by approximately $670 million. A
1% decrease in the market rates of interest would increase future earnings and
cash flows by approximately $14.0 million per year, and would increase the fair
value of debt by approximately $870 million.

          Financing and Debt

          At June 30, 1999, the SPG Operating Partnership had consolidated debt
of $8,274 million, of which $6,370 million is fixed-rate debt bearing interest
at a weighted average rate of 7.3% and $1,904 million is variable-rate debt
bearing interest at a weighted average rate of 5.9%. As of June 30, 1999, the
SPG Operating Partnership had interest rate protection agreements related to
$688 million of consolidated variable-rate debt. The SPG Operating Partnership's
interest rate protection agreements did not materially impact interest expense
or weighted average borrowing rates for the six months ended June 30, 1999 or
1998.

          Scheduled principal payments of the SPG Operating Partnership's share
of consolidated indebtedness over the next five years is $3,917 million, with
$4,216 million thereafter. The SPG Operating Partnership, together with the SRC
Operating Partnership, had a combined ratio of consolidated debt-to-market
capitalization of 54.8% and 51.7% at June 30, 1999 and December 31, 1998,
respectively.

          In January of 1999 the SPG Operating Partnership retired the $22
million mortgage on North East Mall, which bore interest at 10% and had a stated
maturity of September, 2000, using cash from working capital. The paydown
included a $1.8 million prepayment charge, which was recorded as an
extraordinary loss. In June of 1999, a new $17.7 million mortgage was placed on
North East Mall bearing interest at 6.74%, with a stated maturity of May 2002.
The net proceeds were added to working capital.

          On February 4, 1999, the SPG Operating Partnership completed the sale
of $600 million of senior unsecured notes. These notes included two $300 million
tranches. The first tranche bears interest at 6.75% and matures on February 4,
2004 and the second tranche bears interest at 7.125% and matures on February 4,
2009. The SPG Operating Partnership used the net proceeds of approximately $594
million primarily to retire the $450 million initial tranche of the Merger
Facility and to pay $142 million on the outstanding balance of the Credit
Facility.

          Acquisitions

          Management continues to actively review and evaluate a number of
individual property and portfolio acquisition opportunities. Management believes
that funds on hand, and amounts available under the Credit Facility, together
with the net proceeds of public and private offerings of debt and equity
securities are sufficient to finance likely acquisitions. No assurance can be
given that the SPG Operating Partnership 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.

          During the first six months of 1999 the SPG Operating Partnership
acquired the remaining ownership interests in four Properties for a total of
approximately $147.5 million, including the assumption of approximately $48.5
million of mortgage indebtedness. These purchases were funded primarily with
borrowings from the Credit Facility. Each of the Properties purchased were
previously accounted for using the equity method of accounting and are now
accounted for using the consolidated method of accounting.

          Dispositions

          On April 15, 1999, the SPG Operating Partnership sold the land at
Three Dag Hammarskjold in New York, New York for $9.5 million, which was
recorded as an adjustment to the purchase price. Also in the second quarter of
1999, one community shopping center was sold for $4.2 million, resulting in a
loss of $4.2 million. In addition, the SPG Operating Partnership sold a


                                      17
<PAGE>

parcel of land, which was accounted for as an adjustment to the purchase price.
The net proceeds of approximately $28.3 million, were used to reduce the
outstanding borrowings on the Credit Facility.

          Portfolio Restructuring. In addition to the Property sales described
above, the SPG Operating Partnership is continuing to evaluate the potential
sale of its remaining non-retail holdings, along with a number of retail assets
that are no longer aligned with the SPG Operating Partnership's strategic
criteria. If these assets are sold, management expects the sale prices will not
differ materially from the carrying value of the related assets.

          Development, Expansions and Renovations. The SPG Operating Partnership
is involved in several development, expansion and renovation efforts.

          In January of 1999, The Shops at Sunset Place, a 510,000 square-foot
destination-oriented retail and entertainment project, opened in South Miami,
Florida. The SPG Operating Partnership owns 37.5% of this approximately $150
million specialty center.

          Construction also continues on the following projects, which have an
aggregate construction cost of approximately $720 million, of which the SPG
Operating Partnership's share is approximately $395 million:

          .    Concord Mills, a 37.5%-owned value-oriented super regional mall
               project, containing approximately 1.4 million square feet of GLA,
               is scheduled to open in September of 1999 in Concord (Charlotte),
               North Carolina.

          .    The Mall of Georgia, an approximately 1.6 million square foot
               regional mall project, is scheduled to open in August of 1999.
               Adjacent to the regional mall, The Mall of Georgia Crossing is an
               approximately 441,000 square-foot community shopping center
               project, which is also scheduled to open in August of 1999. The
               SPG Operating Partnership is funding 85% of the capital
               requirements of the project. The SPG Operating Partnership has a
               noncontrolling 50% ownership interest in each of these
               development projects after the return of its equity and a 9%
               return thereon.

          .    In addition to Mall of Georgia Crossing, two other new community
               center projects are under construction: The Shops at North East
               Mall and Waterford Lakes Town Center at a combined 1,261,000
               square feet of GLA, which are each scheduled to open in November
               of 1999.

          .    Orlando Premium Outlets marks the SPG Operating Partnership's
               first project to be constructed in the partnership with Chelsea
               GCA Realty. This 433,000 square-foot upscale outlet center is
               scheduled for completion in the summer of 2000 in Orlando,
               Florida.

          A key objective of the SPG Operating Partnership is to increase the
profitability and market share of its Properties through strategic renovations
and expansions. The SPG Operating Partnership's share of projected costs to fund
all renovation and expansion projects in 1999 is approximately $400 million,
which includes approximately $150 million incurred in the first six months of
1999. It is anticipated that the cost of these projects will be financed
principally with the Credit Facility, project-specific indebtedness, access to
debt and equity markets, and cash flows from operations. The SPG Operating
Partnership currently has nine major expansion and/or redevelopment projects
under construction and in the preconstruction development stage with targeted
1999 completion dates. Included in combined investment properties at June 30,
1999 is approximately $330 million of construction in progress, with another
$300 million in the unconsolidated joint venture investment properties.

          Distributions. The SPG Operating Partnership declared a distribution
of $0.505 per Unit in each of the first two quarters of 1999. The current annual
distribution rate is $2.02 per Unit. Future distributions will be determined
based on actual results of operations and cash available for distribution.

          Investing and Financing Activities

          Cash used in investing activities for the six months ended June 30,
1999 of $106.5 million is primarily the result of $198.6 million of capital
expenditures; acquisitions of $99.3 million; $32.4 million of investments in
unconsolidated joint ventures; and $13.1 million of investments in and advances
to the Management Company, partially offset by distributions from unconsolidated
entities of $163.5 million; net proceeds from the sales of assets of $42.0
million; and cash of $10.8 million from the consolidations of Haywood Mall,
Century III Mall, Lakeline Mall and Lakeline Plaza. Capital expenditures
includes development costs of $12.5 million, renovation and expansion costs of
approximately $158.5 million and tenant costs and other operational capital
expenditures of approximately $27.6 million. Acquisitions includes $69.0
million, $24.0 million and $6.3 million for the remaining interests in Haywood
Mall, Century III Mall and Lakeline Mall and Plaza, respectively. Investments in
unconsolidated joint ventures is primarily $11.5 million in Florida Mall and
$11.2 million in Orlando Premium Outlots. Distributions from unconsolidated
entities includes $44.9 million, $33.1 million, $27.4 million and $14.4 million
derived


                                      18
<PAGE>

primarily from incremental borrowings on Gwinnett Place, Town Center at Cobb,
Westchester Mall and Concord Mills, respectively. Net proceeds from the sales of
assets is made up of $28.3 million, $9.5 million and $4.2 million from the sales
of the Charles Hotel land, the Three Dag Hammarskjold land and Cohoes Center,
respectively. The $13.1 million investment in the Management Company is
primarily to fund an additional investment in Groupe BEG, which represents the
SPG Operating Partnership's interests in retail real estate in Europe.

     Cash used in financing activities for the six months ended June 30, 1999
was $158.7 million and primarily includes net distributions of $273.8 million,
partially offset by net borrowings of $115.1 million.

     EBITDA--Earnings from Operating Results before Interest, Taxes,
Depreciation and Amortization

     Management believes that there are several important factors that
contribute to the ability of the SPG Operating Partnership to increase rent and
improve profitability of its 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. Management believes that EBITDA is
an effective measure of shopping center operating performance because: (i) 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; and (ii) EBITDA is unaffected by the debt and equity
structure of the property owner. EBITDA: (i) does not represent cash flow from
operations as defined by generally accepted accounting principles; (ii) should
not be considered as an alternative to net income as a measure of operating
performance; (iii) is not indicative of cash flows from operating, investing and
financing activities; and (iv) is not an alternative to cash flows as a measure
of liquidity.

     Total EBITDA for the Properties increased from $591.3 million for the six
months ended June 30, 1998 to $833.8 million for the same period in 1999,
representing a 41.0% increase. This increase is primarily attributable to the
CPI Merger ($192.4 million), the IBM Properties ($14.4 million) and the other
Properties opened or acquired during 1998 and 1999 ($7.9 million), partially
offset by a decrease from Properties sold in the comparative periods ($2.3
million). Excluding these items, EBITDA increased $30.2 million, or 5.1%,
resulting from aggressive leasing of new and existing space and increased
operating efficiencies. During this period operating profit margin decreased
slightly from 64.7% to 64.6%.

     FFO--Funds from Operations

     FFO, as defined by the National Association of Real Estate Investment
Trusts, means the consolidated net income of the SPG Operating Partnership and
its subsidiaries without giving effect to depreciation and amortization, gains
or losses from extraordinary items, gains or losses on sales of real estate,
gains or losses on investments in marketable securities and any
provision/benefit for income taxes for such period, plus the allocable portion,
based on the SPG Operating Partnership's ownership interest, of funds from
operations of unconsolidated joint ventures, all determined on a consistent
basis in accordance with generally accepted accounting principles. Management
believes that FFO is an important and widely used measure of the operating
performance of REITs which provides a relevant basis for comparison among REITs.
FFO is presented to assist investors in analyzing performance. The SPG Operating
Partnership's method of calculating FFO may be different from the methods used
by other REITs. FFO: (i) does not represent cash flow from operations as defined
by generally accepted accounting principles; (ii) should not be considered as an
alternative to net income as a measure of operating performance or to cash flows
from operating, investing and financing activities; and (iii) is not an
alternative to cash flows as a measure of liquidity.


                                      19
<PAGE>

     The following summarizes FFO of the SPG Operating Partnership and
reconciles income before extraordinary items to FFO for the periods presented:
<TABLE>
<CAPTION>

                                                                For the Three Months                       For the Six Months
                                                                   Ended June 30,                             Ended June 30,
                                                         ----------------------------------     -----------------------------------
                                                               1999               1998                1999                 1998
                                                         ---------------     --------------     ----------------     --------------
(In thousands)
<S>                                                      <C>                  <C>                <C>                  <C>
FFO of the SPG Operating Partnership                         $165,231            $115,957            $321,254             $224,864
                                                             ========            ========            ========             ========
Reconciliation:
Income Before Extraordinary Items                            $ 67,735            $ 43,514             $134,373            $ 88,638
Plus:
 Depreciation and amortization from combined
  consolidated Properties                                      88,925              58,082              177,280             116,161

 The SPG Operating Partnership's share of
  depreciation and amortization and extraordinary
  items from unconsolidated affiliates                         20,761              16,304               41,291              31,108
 Losses on the sales of real estate                             4,188               7,219                4,188               7,219
Less:
 Minority interest portion of depreciation,
  amortization and extraordinary items                           (255)             (1,828)              (2,050)             (3,594)

 Preferred dividends                                          (16,123)             (7,334)             (33,828)            (14,668)
                                                             --------            --------             --------            --------
FFO of the SPG Operating Partnership                         $165,231            $115,957             $321,254            $224,864
                                                             ========            ========             ========            ========

</TABLE>

     Portfolio Data

     The following operating statistics give effect to the CPI Merger for 1999
only. Statistics include all Properties except Charles Towne Square, Richmond
Town Square, The Shops at Mission Viejo, and the redevelopment area at Irving
Mall, which are all undergoing extensive redevelopment.

     Aggregate Tenant Sales Volume. For the six months ended June 30, 1999
compared to the same period in 1998, total reported retail sales at mall and
freestanding GLA owned by the SPG Operating Partnership ("Owned GLA") in the
regional malls increased $1,725 million or 41.1% from $4,200 million to $5,925
million, primarily as a result of the CPI Merger ($1,380 million), 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.

     Occupancy Levels. Occupancy levels for Owned GLA at mall and freestanding
stores in the regional malls increased from 87.0% at June 30, 1998, to 88.4% at
June 30, 1999. Owned GLA has increased 13.5 million square feet from June 30,
1998, to June 30, 1999, primarily as a result of the CPI Merger (11.8 million).

     Average Base Rents. Average base rents per square foot of mall and
freestanding Owned GLA at regional malls increased 13.1%, from $23.10 at June
30, 1998 to $26.12 at June 30, 1999.

     Inflation

     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' leases contain provisions
designed to lessen the impact of inflation. Such provisions include clauses
enabling the SPG Operating Partnership to receive percentage rentals based on
tenants' 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 the SPG Operating Partnership 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 the SPG Operating Partnership's exposure to increases in costs
and operating expenses resulting from inflation.


                                      20
<PAGE>

     However, inflation may have a negative impact on some of the SPG Operating
Partnership's 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.

     Year 2000 Costs

     The SPG Operating Partnership has undertaken a project to identify and
correct problems arising from the inability of information technology hardware
and software systems to process dates after December 31, 1999. This Year 2000
project consists of two primary components. The first component focuses on the
SPG Operating Partnership's key information technology systems (the "IT
Component") and the second component focuses on the information systems of key
tenants and key third party service providers as well as imbedded systems within
common areas of substantially all of the Properties (the "Non-IT Component").
Key tenants include the 20 largest base rent contributors and anchor tenants
with over 25,000 square feet of GLA. Key third party service providers are those
providers whose Year 2000 problems, if not addressed, would be likely to have a
material adverse effect on the SPG Operating Partnership's operations.

     The IT Component of the Year 2000 project is being managed by the
information services department of the SPG Operating Partnership who have
actively involved other disciplines within the SPG Operating Partnership which
are directly impacted by an IT Component of the project. The Non-IT Component is
being managed by a steering committee of 25 employees, including senior
executives of a number of the SPG Operating Partnership's departments. In
addition, outside consultants have been engaged to assist in the Non-IT
Component.

     Status of Project Through July 31, 1999

          IT Component.  The SPG Operating Partnership's primary operating,
     financial accounting and billing systems and the SPG Operating
     Partnership's standard primary desktop software have been determined to be
     Year 2000 ready. The SPG Operating Partnership's information services
     department has also completed its assessment of other "mission critical"
     applications within the SPG Operating Partnership and is currently
     implementing solutions to those applications in order for them to be Year
     2000 ready. It is expected that the implementation of these mission
     critical solutions will be complete by September 30, 1999.

          Non-IT Component.  The Non-IT Component includes the following phases:
     (1) an inventory of Year 2000 items which are determined to be material to
     the SPG Operating Partnership's operations; (2) assigning priority to
     identified items; (3) assessing Year 2000 compliance status as to all
     critical items; (4) developing replacement or contingency plans based on
     the information collected in the preceding phases; (5) implementing
     replacement and contingency plans; and (6) testing and monitoring of plans,
     as applicable.

          Phase (1) and Phase (2) are complete and Phase (3) is in process. The
     assessment of compliance status of key tenants is approximately 90%
     complete, the assessment of compliance status of key third party service
     providers is approximately 91% complete, the assessment of compliance
     status of critical inventoried components at the Properties is
     approximately 90% complete and the assessment of compliance status of non-
     critical inventoried components at the Properties is approximately 90%
     complete. The SPG Operating Partnership expects to complete Phase (3) by
     August 31, 1999. The development of contingency or replacement plans (Phase
     (4)) is scheduled to be completed by August 31, 1999. Development of such
     plans is ongoing. Implementation of contingency and replacement plans
     (Phase (5)) is ongoing and will continue throughout 1999 to the extent Year
     2000 issues are identified. Testing is in process. Testing of critical
     inventoried components is scheduled to be completed by September 30, 1999.

     Costs.  The SPG Operating Partnership estimates that it will spend
approximately $1.5 million in incremental costs for its Year 2000 project. This
amount is being incurred over a period that commenced in January 1997 and is
expected to end in September 1999. Costs incurred through June 30, 1999 are
estimated at approximately $600 thousand, including approximately $100 thousand
in the six-month period ended June 30, 1999. Such amounts are expensed as
incurred. These estimates do not include the costs expended by the SPG Operating
Partnership following the 1996 merger with DeBartolo Realty Corporation for
software, hardware and related costs necessary to upgrade its primary operating,
financial accounting and billing systems, which allowed those systems to, among
other things, become Year 2000 compliant.

     Risks.  The most reasonably likely worst case scenario for the SPG
Operating Partnership with respect to the Year 2000 problems would be
disruptions in operations at the Properties. This could lead to reduced sales at
the Properties and claims by tenants which would in turn adversely affect the
SPG Operating Partnership's results of operations.


                                      21
<PAGE>

          The SPG Operating Partnership has not yet completed all phases of its
Year 2000 project and the SPG Operating Partnership is dependent upon key
tenants and key third party suppliers to make their information systems Year
2000 compliant. In addition, disruptions in the economy generally resulting from
Year 2000 problems could have an adverse effect on the SPG Operating
Partnership's operations.

          Pending Acquisition

          As described in Note 13 to the financial statements, on February 25,
1999 the SPG Operating Partnership entered into a definitive agreement with NED
to acquire and assume management responsibilities for NED's portfolio of up to
14 regional malls aggregating approximately 10.6 million square feet of GLA. The
purchase price for the portfolio is approximately $1.7 billion. On April 15,
1999, the SPG Operating Partnership executed a letter of intent to form a joint
venture to acquire the portfolio, with the SPG Operating Partnership's initial
ownership to be approximately 50%. The joint venture intends to complete the
purchase of ten of such regional malls in August of 1999 and up to four more by
the end of 1999.

          Seasonality

          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, earnings are generally highest in the fourth quarter of each year.

Item 3. Qualitative and Quantitative Disclosure About Market Risk

          Reference is made to Item 2 of this Form 10-Q under the caption
"Liquidity and Capital Resources".

                                      22
<PAGE>

Part II - Other Information

          Item 1:  Legal Proceedings

                   None.

          Item 6:  Exhibits and Reports on Form 8-K

                   (a) Exhibits

                   2.1  Management And Portfolio Agreement Among Simon Property
                        Group, Inc., Simon Property Group, L.P., NED Management
                        Limited Partnership, and Wellspark Management LLC Dated
                        as of February 22, 1999. (Incorporated by reference to
                        Exhibit 2.1 of SPG's Form 10-Q for the period ended June
                        30, 1999.)


                   (b) Reports on Form 8-K

                   None.

                                      23
<PAGE>

                                   SIGNATURE


          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.


                                         SIMON PROPERTY GROUP, L.P.
                                         By: Simon Property Group, Inc.
                                         General Partner

                                         /s/ John Dahl
                                         -----------------------
                                         John Dahl,
                                         Senior Vice President and Chief
                                         Accounting Officer
                                         (Principal Accounting Officer)

                                         Date: August 12, 1999

                                      24