MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Loans to SPG-FCM Cash Flows 20 Simon Property Group  Inc. We expect to generate positive cash flow from operations in 2012  and we consider these projected cash flows in our sources  and uses of cash. These cash flows are principally derived from rents paid by our retail tenants  many of whom are still recovering  from the recent economic downturn. A significant deterioration in projected cash flows from operations could cause us to increase  our reliance on available funds from the Credit Facility  curtail planned capital expenditures  or seek other additional sources of  financing as discussed above. In general  we anticipate that cash generated from operations will be sufficient to meet operating expenses  monthly debt  service  recurring capital expenditures  and distributions to stockholders necessary to maintain our REIT qualification on a long- term basis. In addition  we expect to be able to obtain capital for nonrecurring capital expenditures  such as acquisitions  major  building renovations and expansions  as well as for scheduled principal maturities on outstanding indebtedness  from: Our net cash flow from operating activities and distributions of capital from unconsolidated entities totaled $2.4 billion during  2011. In addition  we received net proceeds from our debt financing and repayment activities in 2011 of $256.5 million. These  activities are further discussed below in “Financing and Debt”. During the 2011 period  we or the Operating Partnership also: As part of the Mills acquisition in 2007  the Operating Partnership made loans to SPG-FCM Ventures  LLC  or SPG-FCM  which  were used to repay loans and other obligations. As of December 31  2011 and 2010  the outstanding balance of our remaining  loan to SPG-FCM was $651.0 million. The loan bears interest at a rate of LIBOR plus 275 basis points and matures on June 7   2012. During 2011  2010 and 2009  we recorded approximately $9.8 million  $9.9 million and $9.3 million in interest income  (net of inter-entity eliminations) related to this loan  respectively. We also recorded fee income  including fee income amortization  related to up-front fees on those loans during 2011  2010 and 2009 of approximately $1.0 million  $0.9 million and $3.7 million  (net of inter-entity eliminations)  respectively  for providing refinancing services to Mills’ properties and SPG-FCM. ● paid stockholder dividends and unitholder distributions of $1.2 billion  ● paid preferred stock dividends and preferred unit distributions totaling $5.3 million  ● funded consolidated capital expenditures of $445.5 million (includes development and other costs of $67.9 million   renovation and expansion costs of $157.1 million  and tenant costs and other operational capital expenditures of $220.5  million)  ● funded investments in unconsolidated entities of $20.8 million  and ● funded property acquisitions and acquired additional interests in previously unconsolidated entities for $1.3 billion. ● excess cash generated from operating performance and working capital reserves  ● borrowings on the Credit Facility  ● additional secured or unsecured debt financing  or ● additional equity raised in the public or private markets.