InvenTrust Properties Corp.
Annual Report 2013

Plain-text annual report

A N N U A L 2013 R E P O R T I N L A N D A M E R I C A N R E A L E S T A T E T R U S T , I N C . | 2 0 1 3 A N N U A L R E P O R T Inland American Real Estate Trust, Inc. TOTAL PORTFOLIO OF PROPERTY ASSETS: $10.1 BILLION* 27% 42% 15% 9% 7% Lodging • $4.2 billion, 99 properties • 19,337 rooms • Same-Store RevPAR growth of 5.3% in 2013 Retail • $2.7 billion • 119 properties • 17 million sq. ft. • 91% same-store economic occupancy Held for Sale† • $1.5 billion Non-core Properties • $1.0 billion • 45 properties • 7.3 million sq. ft. Student Housing • $0.7 billion • 14 properties • 8,290 beds • 93% same-store economic occupancy * Based on undepreciated (total investment in properties) asset values. † As of December 31, 2013, the “Held for Sale” category contains the remaining properties from the net lease transaction announced in August, 2013. We expect to complete the closing of the net lease transaction in the first half of 2014. Inland American Real Estate Trust, Inc. MAJOR MILESTONES January 2013 - March 2014 May 2013: August 2013: Announced a new credit facility in May, expanded in November ‘13 • 3-year, $300 million unsecured revolving line of credit facility • 4-year, $200 million unsecured term loan New $600 million joint venture with PGGM • One of the world’s largest and most respected pension funds • Inland American maintains a majority equity stake in the entity & control of venture $460 million conventional apartment portfolio sale • Closed in August, sold above purchase price $2.1 billion net lease transaction • Will provide approximately $900 million in capital once the closings are completed • Use of the net proceeds include: - Investing in high quality assets in our 3 targeted asset groups - Paying down and reducing debt - Share repurchase (tender offer) To Our Stockholders: We are pleased to report that 2013 was a successful and transformative year for Inland American. Through the thoughtful execution of our strategic initiatives, including more than $1.2 billion in acquisitions, we made meaningful progress on our stated plan to shift our diversified portfolio of assets toward the retail, lodging and student housing sectors. While executing this repositioning, we hit our performance targets for net operating income and funds from operations. Importantly, our three key asset classes are already delivering promising results, and we believe that we are poised to realize additional value as the economic recovery picks up pace. Thanks to the strong performance of our portfolio, we continued to make regular distributions to our stockholders. Maintaining a sustainable annualized distribution rate has been a priority for our Board and management team, and will remain a core principle moving forward. Our portfolio of cash-generative assets, coupled with our leadership team’s extensive experience and unwavering focus on operational excellence, provide a solid foundation to support our distributions. Throughout 2013, our team pursued our strategy with dedication and intensity. We believe we have generated impressive results that reflect our commitment to creating value for stockholders. Acquisition, Disposition and Tender Offer Liquidity In 2013 we focused on cultivating our strong portfolio of retail, lodging and student housing properties, while shedding non-core assets to generate capital for reinvestment and liquidity for our stockholders. As part of this effort, we executed two large-scale, transformative transactions: the $460 million sale of our apartment portfolio and the $2.1 billion sale of our net lease assets. We recorded a net profit on each portfolio sale based on the original purchase price of these assets. The two transactions provided us with approximately $1 billion to redeploy into our target asset classes and provided a liquidity option for our stockholders in the form of a tender offer. When we announced the net lease transaction in August 2013, we were confident that we would be able to allocate some of the proceeds to a liquidity opportunity for our stockholders. Consistent with that goal, we announced in March 2014 that our Board had approved the commencement of a $350 million modified “Dutch Auction” tender offer. The Board and management team believe this was the best course of action for all of our stockholders. Stockholders that wanted to maintain their position in Inland American could do so, and potentially benefit from the Company’s long- term strategy, which we believe will produce improved cash performance and increase the value of our stock in the future. The tender offer also balanced the immediate liquidity need for some of our stockholders who were looking to sell some or all of their position in the Company. The Board evaluated several alternatives and determined that a Dutch Auction tender offer provided management and the Board increased flexibility to allocate more funds to this share repurchase strategy than other options. For example, reinstating a general share repurchase program was an option the Board considered, but there are limits to the amount the Company can repurchase through such a program. Under existing law, repurchases under a general repurchase program may not, over any 12-month period, exceed more than 5% of our issued and outstanding shares at the beginning of the 12-month period. No such limitation exists with a tender offer. In fact, we purchased over 6.6% of shares outstanding during the tender offer that expired on April, 25, 2014 at 5:00 PM ET. Inland American accepted for purchase over 60.6 million shares of stock at a purchase price of $6.50, for an aggregate total of approximately $394.3 million. December 2013: February 2014: March 2014: 2013 Acquisitions (as of 12/31/13) equal $1.2 billion • 14 Lodging properties / 3,303 Rooms • 3 Student Housing properties / 1,409 beds • 4 Retail properties / 483,753 square feet Approved charter changes from stockholder votes • Provided the board flexibility to effectuate our long-term strategy • All of the proposed charter changes were affirmed with more than 471 million votes or 88% of the votes cast (approximately 52% of the outstanding shares) Announced Self-Management Agreements • Eliminates the quarterly advisory fee paid by the REIT to its business manager • A lower property management fee for 2014 • No internalization or self-management fee in connection with the transition to self- management Announced $350 million modified “Dutch Auction” tender offer • The offer expired at 5:00 PM ET on April 25, 2014. Purchased $394.3 million in shares Stone Ridge Market San Antonio, Texas Self-Management In March 2014, we took the significant step of entering into agreements to become a self-managed REIT, meaning that the functions previously carried out by our business manager and property managers will be performed directly by employees of Inland American by the end of 2014. This is a major milestone for the Company that reflects our Board’s confidence in our personnel, expertise and growth prospects. Self-management will include several benefits for the stockholders: the remainder of the property manager’s employees and functions by the end of 2014. Members of the executive team that were previously employed by the business manager on behalf of the REIT—including Thomas McGuinness, president, Jack Potts, treasurer and principal financial officer, Anna Fitzgerald, principal accounting officer and Scott Wilton, general counsel—have now become employees of the REIT, and will continue to lead the Company. • The elimination of the quarterly advisory fee paid by the REIT to its business manager; • A lower property management fee for 2014; and • No internalization or self-management fee in connection with the transition to self-management. We have already brought all of the business manager’s employees and some of the property manager’s employees and functions in-house, and are on track to transition Given that we are still in the process of assessing various costs associated with the transition to self-management, it is difficult to forecast the exact per-share amount of the benefits we expect from this change. However, we do anticipate that self-management will positively impact our net income and funds from operations. 2 | Inland American 2013 Annual Report “We remain focused on steadfastly pursuing opportunities for value creation and long-term growth.” Inland American 2013 Annual Report | 3 Andaz San Diego San Diego, California Other Accomplishments and Highlights: We ended 2013 with a portfolio of over $10 billion in property assets. Our portfolio consists of 501 properties, totaling 26 million square feet of retail, office and industrial space, 8,290 student housing beds and 19,337 hotel rooms. Funds from operations equaled $460 million, or $0.51 per share, while our annual distribution per share to our stockholders was $0.50. Including distributions from 2013, Inland American has declared distributions totaling $2.8 billion to our stockholders since October 2005. • Same-Store net operating income grew 2.2% over 2012 to $466 million, driven by the performance of the lodging and student housing portfolios. • We completed the acquisition of more than $960 million of upper-upscale lodging assets, growing this portion of our portfolio with best-in-class assets while also selling off some non-core properties. • We acquired three new student housing properties for $160 million, with several other development projects also currently underway. • We launched a $600 million joint venture partnership with Dutch pension fund PGGM in order to grow our portfolio of multi-tenant retail properties through new development in stable, growing regions, including Texas and Oklahoma. • We established a new $500 million credit facility, providing us with additional capital to execute our portfolio strategy. In February 2014, with the help of our stockholders, the Company took another step forward in the execution of our long-term strategy. As you may recall, in 2013 the Board of Directors reviewed our governing documents in the context of our long-term strategy, and concluded that our charter was unduly restrictive and might limit our ability to execute some of our plans. We therefore proposed certain amendments to our charter to provide the Company with greater flexibility, and our stockholders approved the proposed changes at our Annual Stockholders Meeting on February 26, 2014. 4 | Inland American 2013 Annual Report “We completed the acquisition of more than $960 million of upper-upscale lodging assets, growing this portion of our portfolio with best-in-class assets...” Inland American 2013 Annual Report | 5 University House Fayetteville, Arkansas Portfolio Evolution We remain committed to our portfolio evolution and the continued refinement of our asset base. We made a lot of progress on our portfolio in 2013 and we plan to continue to execute our strategy in 2014. We previously said that one of our main goals would be to rotate out of the less attractive office and industrial market segments, and we executed toward that objective in 2013. We remain focused on steadfastly pursuing opportunities for value creation and long-term growth. We are confident that as the economic recovery accelerates, these asset classes will capture rent increases and future property appreciation, which will provide our stockholders with stock value appreciation and long-term distribution sustainability. In addition, by decreasing the number of asset classes in our portfolio, we believe we will be in a better position to execute on our multiple liquidity strategies in the future. While focusing our portfolio concentration is an important component of our strategy, the diversity of our portfolio in our three targeted asset classes allows us to be both strategic and prudent buyers of real estate. We can move capital into one asset class or another as markets and cap rates shift. This diversity will allow our stockholders to benefit from changing as well as improving markets. 6 | Inland American 2013 Annual Report Portfolio Evolution by the Numbers (figures in millions) This pie chart shows the activity within Inland American’s portfolio in 2013 and the tremendous amount of progress made on our long-term strategy to tailor our portfolio into the 3 asset classes of multi-tenant retail, lodging and student housing. 2013 Portfolio of Property Assets = $10.1 Billion $1,200 ($2,039) Same-Store Properties in 2013 Acquisitions Dispositions Inland American 2013 Annual Report | 7 Lodging Portfolio The fundamentals of our lodging assets have steadily improved year-over-year, and we see further upside as the sector continues to benefit from a strengthening global economy. Last year we acquired 14 luxury, upper-upscale and urban upscale properties in top-25 markets, including: • Kimpton’s Hotel Monaco collection for $189 million; • The Hyatt Key West Resort and Spa for $76 million; • The Hyatt Regency Santa Clara for $93 million; • The Loews New Orleans Hotel for $74.5 million; and • Two Westin hotels in Houston’s Galleria District for $220 million. As of year-end 2013, these acquisitions brought a total of 3,303 rooms to our premium lodging portfolio. In addition, we are off to a great start in 2014 with our recently announced acquisition of the Aston Waikiki Beach Hotel in Honolulu, HI, which further diversifies our portfolio and gives us a foothold in one of the top-performing hotel markets in the country. Going forward, we believe we are well-positioned to capture high-value demand in lodging and further capitalize on upward trends in the market. Portfolio RevPAR $160 $120 $80 $40 $0 $125 $90 $96 $133 $105 $143 2011 2012 2013 RevPAR Average Daily Rate Lodging Portfolio by Property Type by Number of Rooms 2013 2012 50% 40% 46% 54% 4% 6% Upper Upscale & Luxury Upscale Upper Midscale Lodging Portfolio by Brand Comparison: 2012 – 2013 (by Number of Rooms) 7% 5% 27% 61% 2012 Marriott Hilton Hyatt Others 8 | Inland American 2013 Annual Report 3% 2% 4% 5% 10% 23% 53% 2013 Marriott Hilton Hyatt Starwood Kimpton Fairmont Others Andaz Napa Napa, California Inland American 2013 Annual Report | 9 University House Tempe, Arizona Student Housing Portfolio Student Housing Rent per Bed* With respect to student housing, we intend to grow both through acquisitions and by opening new properties at top-tier schools. In 2013 we expanded our student housing portfolio from $421 million to $710 million, bringing us closer to our goal of doubling or tripling the size of this segment of our portfolio. In 2013 we announced the acquisition of two brand new, purpose-built student housing properties at Arizona State University and the University of Arkansas for a combined total of approximately $145 million, as well as the purchase of a fully developed property on the campus of Texas Christian University in Fort Worth, TX. Plans are also underway to construct student housing developments near UNC Charlotte and Georgia Tech University. We are looking forward to pursuing additional opportunities to purchase or break ground in this asset class in 2014. $740 $720 $700 $680 $660 $640 $620 $724 $655 $670 2011 2012 2013 * The increase in the rent per bed has led to the increase of net operating income for this segment. 10 | Inland American 2013 Annual Report Stone Ridge Market San Antonio, Texas Retail Portfolio In retail, we continue to enhance our position with high- quality multi-tenant assets, which provide our portfolio with a robust and stable foundation. In 2013 we acquired four new necessity-based retail properties with a total of 483,753 square feet. We are confident that there are many additional opportunities for us to apply our solid track record of building and managing properties to this space, particularly as national and regional retailers continue to place a premium on retail space in leading markets given ongoing low supply growth. Portfolio Snapshot Gross Leasable Area Necessity-Based Non Necessity 23% 77% Gross Leasable Area by Geography Southwest South Atlantic Midwest West Northeast 4% 8% 14% 38% 36% Inland American 2013 Annual Report | 11 Confidence in Our Long-Term Strategic Plan In 2013 we acquired $1.2 billion in assets (most occurring in the 3rd and 4th quarters of the year) which have already produced over $34 million of NOI for the Company. We expect the growth in our portfolio in 2014 to be driven by these new lodging and student housing properties. Regardless of the pace of the economic recovery, our Board and management team have no intention of waiting around for markets to gradually strengthen. We are taking the initiative to acquire and develop properties under attractive borrowing and pricing conditions, with the goal of continuing to refine our portfolio in our three core asset groups. We are optimistic that we will maintain our high occupancy levels and we expect slightly higher rent levels across our asset classes and markets in 2014. The success of our strategy to date gives us confidence that we will remain well- positioned regardless of how economic circumstances develop. Our overall cash flow and operating performance continue to improve, and we expect the cost advantages of self-management to help us realize additional benefits from an earnings perspective. Our debt maturities and capital structure are stable, providing us with the flexibility to execute our business strategies successfully. We are committed to making additional investments in our business while maintaining our annualized distribution rate of $0.50 per share. As we move forward with our plans for 2014, we will continue our practice of frequent communications to our stockholders and the investment community. On behalf of the Board of Directors, the senior management team and the employees of Inland American, I want to thank you for your continued support of the Company. We are working hard on your behalf to realize the value of our asset base, and we look forward to sharing the results of our progress with you in the future. Sincerely, Robert D. Parks Chairman of the Board Thomas P. McGuinness President 12 | Inland American 2013 Annual Report UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 000-51609 Inland American Real Estate Trust, Inc. (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction of incorporation or organization) 2901 Butterfield Road, Oak Brook, Illinois (Address of principal executive offices) 34-2019608 (I.R.S. Employer Identification No.) 60523 (Zip Code) 630-218-8000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common stock, $0.001 par value per share (Title of Class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No 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 the filing requirements for the past 90 days. Yes No Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act). Large accelerated filer Non-accelerated filer Accelerated filer Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No There is no established market for the registrant’s shares of common stock. The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of June 30, 2013 (the last business day of the registrant’s most recently completed second quarter) was approximately $6,210,793,798, based on the estimated per share value of $6.93, as established by the registrant on December 19, 2012. As of March 11, 2014, there were 915,257,302 shares of the registrant’s common stock outstanding. The registrant incorporates by reference portions of its Definitive Proxy Statement for the 2014 Annual Meeting of Stockholders, which is expected to be filed no later than April 30, 2014, into Part III of this Form 10-K to the extent stated herein. INLAND AMERICAN REAL ESTATE TRUST, INC. TABLE OF CONTENTS Item 1. Business Item 1A. Risk Factors Item 1B. Unresolved Staff Comments Item 2. Item 3. Item 4. Properties Legal Proceedings Mine Safety Disclosures Part I Part II Item 5. Item 6. Item 7. Item 7A. Item 8. Item 9. Item 9A. Item 9B. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management’s Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Consolidated Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information Item 10. Item 11. Item 12. Item 13. Item 14. Part III Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services Item 15. Exhibits and Financial Statement Schedules Signatures Part IV Page 1 6 31 32 37 37 38 41 44 68 70 165 165 165 165 165 166 166 166 166 167 This Annual Report on Form 10-K includes references to certain trademarks. Courtyard by Marriott®, Marriott®, Marriott Suites®, Residence Inn by Marriott® and SpringHill Suites by Marriott® trademarks are the property of Marriott International, Inc. (“Marriott”) or one of its affiliates. Doubletree®, Embassy Suites®, Hampton Inn®, Hilton Garden Inn®, Hilton Hotels® and Homewood Suites by Hilton® trademarks are the property of Hilton Hotels Corporation (“Hilton”) or one or more of its affiliates. Hyatt Place® and Andaz trademarks are the property of Hyatt Corporation (“Hyatt”). Intercontinental Hotels ® trademark is the property of IHG. Fairmont Hotels and Resorts is a trademark. The Aloft service name and the Westin service name are the property of Starwood Hotels and Resorts Worldwide, Inc. For convenience, the applicable trademark or service mark symbol has been omitted but will be deemed to be included wherever the above-referenced terms are used. PART I Item 1. Business General References to "we", "our", "us", and "the Company" are references to Inland American Real Estate Trust, Inc. and our business and operations conducted through our directly or indirectly owned subsidiaries. Inland American Real Estate Trust, Inc. owns, manages, acquires and develops a diversified portfolio of commercial real estate located throughout the United States. In addition, we own assets and properties in development through various joint ventures with various controlling and noncontrolling interests, as well as investments in marketable securities and other assets. We were incorporated in October 2004 as a Maryland corporation and have elected to be taxed, and currently qualify, as a real estate investment trust (“REIT”) for federal tax purposes. Our strategic focus has been to realign our diversified portfolio in three specific asset classes - retail, lodging and student housing. As of December 31, 2013, our portfolio was comprised of 277 properties representing 17.0 million square feet of retail space, 19,337 hotel rooms, 8,290 student housing beds and and 7.3 million square feet of non-core space, which consists primarily of office and industrial properties. Strategy and Objectives Our objective is to deliver financially rewarding results to our stockholders through thoughtful capital rotation and investment. We intend to achieve this objective by continuing to execute on our portfolio strategy, focusing our diversified assets in three specific real estate asset classes - retail, lodging and student housing. We believe this strategy presents the best opportunity to capitalize on current market trends in commercial real estate and realize income growth in these sectors. A component of our strategy is to improve the overall quality of our retail, lodging and student housing segments for long-term growth through selective asset acquisition and sales. We continue to use our expertise to capitalize on opportunities in the real estate industry. We believe our ability to identify and react to investment opportunities is one of our biggest strengths. This strategy will take time as we dispose of less strategic assets and rotate capital into our targeted segments. Our focus has been, and will continue to be, maximizing stockholder value over the long-term. From time to time, as part of our long-term corporate goal of enhancing stockholder value, we have explored, and will continue to explore, potential strategic transactions including acquisitions and divestitures as well as ways to create liquidity for our stockholders. As previously disclosed by us, these potential strategic transactions may take many forms, including listing our shares on a national securities exchange, a spin-off of an entity owning one of our property segments, an initial public offering or listing of this entity on a national securities exchange, a merger with another existing REIT, or the sale of all, or substantially all, of one or more of our property segments. We currently have no definitive plan or proposal to conduct any specific strategic transaction. We may decide to engage in one or more such transactions in the future, if, among other things, our board determines that any such transactions are in the best interest of the Company and market conditions are favorable. During the execution of our strategy, we will focus on maintaining a stable income stream to provide a sustainable monthly distribution to our stockholders. Our three objectives in the execution of our strategy are: • Sustaining a monthly stockholder distribution while maintaining capital preservation • Tailoring our portfolio to lodging, student housing and multi-tenant retail by expanding and enhancing these portfolios • Positioning for the potential for multiple liquidity events by segment type 2013 Highlights Distributions We paid a monthly cash distribution to our stockholders which totaled in the aggregate $449.3 million for the year ended December 31, 2013, which was equal to $0.50 per share for 2013, assuming that a share was outstanding the entire year. The distributions paid for the year ended December 31, 2013 were funded from cash flow from operations, distributions from unconsolidated joint ventures and gains on sale of properties. 1 Investing Activities Our acquisition and disposition activities highlight our move to divest of non-strategic assets and redeploy the capital into our long-term strategic segments: retail, lodging and student housing. We acquired fourteen lodging properties totaling 3,303 rooms for $963.3 million. We acquired three student housing properties consisting of 1,409 beds for $161.1 million. In addition, we acquired four retail properties consisting of 483,753 square feet for $92.3 million. As part of our strategy to realign our asset segments, we sold 313 properties for a gross disposition price of $2.0 billion, including 259 bank branches, 48 non-core properties, three multi-tenant retail properties, and three hotels. Additionally, we contributed 14 retail properties, including one of the properties we acquired this year, to the IAGM Retail Fund I, LLC joint venture for a gross disposition price of $443.7 million. On August 8, 2013, we entered into a purchase agreement to sell our net lease assets, consisting of 294 retail, office, and industrial properties in a transaction valued at approximately $2.3 billion, including the assumption of approximately $795.3 million of debt and repayment by us of approximately $360.9 million of debt. In accordance with the terms of the purchase agreement, the buyer elected to “kick-out” of the transaction 13 properties valued at approximately $180.1 million. Excluding the “kicked out” properties, the transaction is valued at approximately $2.1 billion. As of December 31, 2013, we closed on the first two tranches of the net lease portfolio consisting of 57 properties for a disposition price of $669.7 million. The remaining 224 properties are expected to be sold at a gain through multiple closings during the first half of 2014. We have classified the remaining properties as held for sale on the consolidated balance sheet as of December 31, 2013 and consequently the operations are reflected as discontinued operations on the consolidated statements of operations and other comprehensive income for the years ended December 31, 2013, 2012 and 2011. On January 8, 2014, February 21, 2014, and March 10, 2014 we closed on three more tranches of the net lease portfolio consisting of 30, 28, and 151 properties for a disposition price of $55.3, $451.9, and $278.6 million, respectively. Financing Activities We obtained a senior unsecured credit facility consisting of a $300 million senior unsecured revolving line of credit and a $200 million unsecured term loan. The credit facility requires monthly interest-only payments at a rate of LIBOR plus a margin ranging from 1.60% to 2.45% on the outstanding balance of the revolver depending on leverage levels, and at a rate of LIBOR plus a margin ranging from 1.50% to 2.45% on the outstanding balance of the term loan depending on leverage levels. As of December 31, 2013, we had $299.8 million available under the revolving line of credit and had borrowed the full amount of the term loan. As of December 31, 2013, the interest rates of the revolving line of credit and unsecured term loan were 1.60% and 1.67% per annum, respectively. The facility will assist us in bridging the proceeds from disposing of non-strategic assets and acquiring retail, lodging and student housing assets. We successfully refinanced or paid off our 2013 maturities of approximately $882.9 million and placed debt of approximately $700.8 million on new and existing properties. We were able to obtain favorable rates while still maintaining what we believe is a manageable debt maturity schedule for future years. As of December 31, 2013, we had mortgage debt of approximately $4.7 billion and have a weighted average interest rate of 5.09% per annum. Our mortgage debt maturities for 2014 are $418.5 million with a weighted average interest rate of 3.94%. Operating Results We experienced an increase in our net operating income due to organic growth in our lodging and student housing segments as our same store net operating income results increased 6.8% and 5.5%, respectively, for the year ended December 31, 2013 compared to 2012. These increases are due to higher occupancy and RevPAR increases in the lodging segment and rental rate increases in our student housing segment. Our retail segments remained unchanged, exhibiting stable occupancy and contractual rental rates. Our non-core segment was slightly down as a result of re-leasing vacant space at decreased rental rates. We also experienced an increase over the prior year in our total net operating income of 28.3% and 78.8% in the lodging and student housing segments, respectively. The addition of 21 lodging and 8 student housing properties (including properties fully placed in service from construction in progress) since January 1, 2012 contributed $76.3 million and $20.1 million, respectively, of net operating income for the year ended December 31, 2013. 2 The following table represents our same store net operating income for the years ended December 31, 2013 and 2012. Same store properties are properties we have owned and operated for the same period during each year. Net operating income is calculated in Item 7 and reconciled to U.S. generally accepted accounting principles ("GAAP") net income in Item 8, Note 13 of this Annual Report on Form 10-K. 2013 Net Operating Income 2012 Net Operating Income Retail Lodging Student Housing Non-core $ $ 179,802 195,964 15,342 74,719 465,827 $ $ 180,658 183,465 14,543 77,127 455,793 Increase (Decrease) $ (856) 12,499 799 (2,408) 10,034 $ Increase (Decrease) 2013 Average Economic Occupancy (a) 2012 Average Economic Occupancy (a) (0.5)% 6.8 % 5.5 % (3.1)% 2.2 % 91% 73% 93% 89% 92% 73% 91% 90% (a) Economic occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement, regardless of the actual use or occupation by that tenant of the area being leased. In 2014, we expect similar increases in operating results compared to 2013 in our lodging and student housing portfolios due to the growth projected in these segments. As occupancy rates increase close to peak levels in lodging and student housing, the ability to increase rooms rates and rental rates, respectively, will help grow our revenue for each segment in 2014. We believe that our stable occupancy in our retail portfolio will result in consistent operating performance in 2014. In addition, we expect to see similar or slightly decreased operating performance in our non-core portfolio in 2014. Segment Data Our business segments are retail, lodging, student housing and non-core. We evaluate segment performance primarily based on net operating income. Net operating income of the segments does not include interest expense, depreciation and amortization, general and administrative expenses, net income of noncontrolling interest and other investment income from corporate investments. The non-segmented assets consist of our cash and cash equivalents, investment in marketable securities, construction in progress, investment in unconsolidated entities and notes receivable. Information related to our business segments, including a measure of profits or loss and revenues from external customers for each of the last three fiscal years and total assets for each of the last two fiscal years, is set forth in Note 13 to our consolidated financial statements in Item 8 of this Annual Report on Form 10-K. Significant Tenants For the year ended December 31, 2013, we generated approximately 9% of our rental revenue (excluding lodging and student housing) from continuing operations from two properties leased to one tenant, AT&T, Inc. We also own a third property that is leased to AT&T, Inc., but the property is classified as held for sale as of December 31, 2013. Tax Status We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), beginning with the tax year ended December 31, 2005. Because we qualify for taxation as a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, we will be subject to federal and state income tax on our taxable income at regular corporate rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income, property or net worth, respectively, and to federal income and excise taxes on our undistributed income. Competition The commercial real estate market is highly competitive. We compete for tenants in all of our markets with other owners and operators of commercial properties. We compete based on a number of factors that include location, rental rates, security, suitability of the property’s design to tenants’ needs and the manner in which the property is operated and marketed. The number of competing properties in a particular market could have a material effect on a property’s occupancy levels, rental rates and operating income. We compete with many third parties engaged in real estate investment activities including other REITs, other REITs sponsored by our sponsor, specialty finance companies, savings and loan associations, banks, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, lenders, hedge funds, governmental bodies and other entities. 3 There are also other REITs with investment objectives similar to ours and others may be organized in the future. In addition, these same entities seek financing through the same channels that we do. Therefore, we compete for funding in a market where funds for real estate investment may decrease, or grow less than the underlying demand. Employees As of December 31, 2013, we have 201 full-time individuals employed by our student housing subsidiaries. As of December 31, 2013, we had entered into a business management agreement with Inland American Business Manager & Advisor, Inc. pursuant to which it served as our business manager, with responsibility for overseeing and managing our day-to- day operations. We had also entered into property management agreements with each of our property managers. We had paid fees to our business manager and our property managers in consideration for the services they perform for us pursuant to these agreements. Except as noted below, we had also reimbursed these entities for the expenses they incur in performing services for us including the compensation expenses for persons providing services to us. As of December 31, 2013, we did not employ our executive officers and they did not receive any compensation from us for their services as such officers. Our executive officers were officers of one or more of The Inland Group, Inc.’s affiliated entities, including our business manager, and were compensated by these entities, in part, for their services rendered to us. We did not reimburse the business manager for any compensation paid to persons serving as one of our executive officers or as an executive officer of the business manager or property managers. Subsequently, on March 12, 2014, we began the process of becoming fully self-managed by terminating our business management agreement, hiring all of our business manager’s employees, and acquiring the assets of our business manager necessary to perform the functions previously performed by the business manager. As a first step towards internalizing our property managers, we hired certain of their employees; assumed responsibility for performing certain significant property management functions; and amended our property management agreements to reduce our property management fees as a result of our assumption of such responsibilities. As the second step, on December 31, 2014, we expect to terminate our property management agreements, hire the remaining property manager employees and acquire the assets necessary to conduct the remaining functions performed by our property managers. As a consequence, beginning January 1, 2015, we expect to become fully self-managed. We will not pay an internalization fee or self-management fee in connection with these self-management transactions. These self-management transactions immediately eliminate the management and advisory fees paid to the business manager and at the end of 2014, we expect to eliminate the fees paid to our property managers when we terminate the property management agreements. As part of the self-management transactions, we agreed to reimburse our business manager and property managers for certain transaction and employee related expenses and directly retain affiliates of The Inland Group, Inc. for IT services, customer service and certain back-office services that were provided to us and managed by our business manager prior to the termination of the business management agreement. Conflicts of Interest Our governing documents require a majority of our directors to be independent. Further, any transactions between The Inland Group, Inc. or its affiliates, including our business manager and property managers, and us must be approved by a majority of our independent directors. Environmental Matters Compliance with federal, state and local environmental laws has not had a material adverse effect on our business, assets, or results of operations, financial condition and ability to pay distributions, and we do not believe that our existing portfolio will require us to incur material expenditures to comply with these laws and regulations. However, we cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on our properties. Seasonality The lodging segment is seasonal in nature, reflecting higher revenue and operating income during the second and third quarters. This seasonality can be expected to cause fluctuations in our net operating income for the lodging segment. None of our other segments are seasonal in nature. 4 Access to Company Information We electronically file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports with the Securities and Exchange Commission (“SEC”). The public may read and copy any of the reports that are filed with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at (800)-SEC-0330. The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically. We make available, free of charge, by responding to requests addressed to our customer relations group, the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports on our website, www.inland-american.com. These reports are available as soon as reasonably practicable after such material is electronically filed or furnished to the SEC. Certifications We have filed with the Securities and Exchange Commission the principal executive officer and principal financial officer certifications required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, which are attached as Exhibits 31.1 and 31.2 to this Annual Report on Form 10-K. 5 Item 1A. Risk Factors The occurrence of any of the risks discussed below could have a material adverse effect on our business, financial condition, results of operations and ability to pay distributions to our stockholders. Risks Related to Our Business Disruptions in the financial markets or economic conditions could adversely affect our ability to refinance or secure additional debt financing at attractive terms. Credit markets are subject to rapid changes from macro economic factors, including rising interest rates, perceptions of the overall health in the US economy and real estate in particular, and regulatory environment in which we, our lenders and tenants operate. In addition, disruptions in the financial markets or economic conditions may negatively impact commercial real estate fundamentals which could have various negative impacts on the value of our investments including: • • a decrease in the values of our investments in commercial properties, below the amounts paid for these investments; or a decrease in revenues from our properties, due to lower occupancy and rental rates, which may make it more difficult for us to pay distributions or meet our debt service obligations on debt financing. Our ongoing strategy depends, in part, upon future acquisitions, and we may not be successful in identifying and consummating these transactions. Our long-term business strategic plan is to refine our diversified portfolio of assets and to focus on the retail, lodging, and student housing sectors. As we continue to execute on this strategy, we plan to rotate capital out of our other asset classes - such as multi-family, office and industrial - to invest in, enhance and expand our strategic holdings in the retail, lodging, and student housing sectors. There is no assurance we will be able to sell assets at acceptable prices or identify suitable replacement assets on satisfactory terms, if at all. We may also face delays in reinvesting net sales proceeds in new assets which would impact the return we earn on our assets. We face significant competition for attractive investment opportunities from an indeterminate number of other real estate investors, including investors with significant capital resources such as domestic and foreign corporations and financial institutions, publicly-traded and privately-held REITs, private institutional investment funds, investment banking firms, life insurance companies and pension funds. As a result of competition, we may be unable to acquire additional properties as we desire or the purchase price may be significantly elevated. In light of current market conditions and real estate values, we may face significant competition to acquire stabilized properties, or have to accept lease-up risk associated with properties that have lower occupancy. As market conditions and real estate values recover, more properties may become available for acquisition, but we can provide no assurances that these properties will meet our investment objectives or that we will be successful in acquiring these properties. If we are unable to acquire sufficient debt financing at suitable rates or at all, we may be unable to acquire as many additional properties as we anticipate. Our ongoing strategy involves the selling of properties; however, we may be unable to sell a property at acceptable terms and conditions, if at all. As we execute on our long-term strategy we will rotate capital out of certain asset classes, such as multi-family, office and industrial to reinvest into retail, lodging or student housing. Besides executing on our strategy, it may make economic sense to sell properties in any asset class when we believe the value of the leases in place at a property will significantly decline over the remaining lease term, or where we conclude that the property has limited or no equity value with a near-term debt maturity, or when a property has equity but the projected returns do not justify further investment, or when the equity in a property can be redeployed in the portfolio in order to achieve better returns or strategic goals. As we engage to sell these properties, general economic conditions along with property specific issues, such as vacancies, lease terminations and debt defeasance, may negatively affect the value of our properties and therefore reducing our return on the investment or preventing us from selling the property on acceptable terms. Real estate investments often cannot be sold quickly. As a result, economic conditions may prevent potential purchasers from obtaining financing on acceptable terms, if at all, thereby delaying or preventing our ability to sell our properties. 6 We may not be successful in identifying, executing and completing strategic alternatives, including liquidity events, with respect to any asset segment or in providing liquidity options to our stockholders. Our long-term business strategic plan is to refine our diversified portfolio of assets and to focus on the retail, lodging, and student housing sectors. One of our objectives in connection with this plan is to explore various strategic alternatives, position the Company for possible multiple liquidity events by segment and provide liquidity options for our stockholders, such as sales, mergers, spin-offs, initial public offerings, listing or other capital markets or merger and acquisition transactions. The execution and consummation as well as the timing of any such transactions are subject to a number of known and unknown risks that are difficult to predict and many of which are out of our control. Among the factors that could impact our ability to successfully identify, execute and complete such transactions and provide liquidity options for our stockholders are: • macro economic factors; • • • economic, financial and investment conditions; the state of the equity and debt capital markets; the state of the retail, lodging and student housing industries and where in the “cycle” the relevant industry is at the time the Company is in a position to effectuate a strategic transaction; changes or increases in interest rates and availability of financing; competition; the need and our ability to effectuate internal restructuring transactions in order to allow the Company to execute on and complete one or more strategic alternatives; our ability to obtain required lender and other third party consents and the timing of such consents; refinancing considerations; the existence of interested buyers and potential merger candidates; tax considerations; and the existence of pending or threatened legal or regulatory proceedings against the Company. • • • • • • • • Accordingly, we cannot assure you that we will be able to identify strategic opportunities or successfully execute and complete transactions on commercially reasonable terms or at all. Similarly, we cannot assure you that we will actually realize any anticipated benefits from such transactions, including that the consummation of any such strategic alternatives will result in our ability to provide liquidity options to our stockholders. Additionally, even if the Company is successful in executing and completing a transaction with respect to one or more of its asset segments, the Company may determine that it is in the best interests of the Company and its stockholders to reinvest any net proceeds resulting from such strategic transaction(s) in one or more of the Company’s core strategic segments. Furthermore, the pursuit of such strategic alternatives could demand significant time and attention from management and divert management’s attention from focusing on our core strategic holdings and business plan, which could harm our business. We are subject to many risks in the process of becoming a self-managed company, and the transition may not prove successful. On March 12, 2014, we entered into a series of agreements, and amendments to existing agreements, with our business manager and property managers, under which we have begun the process of becoming fully self-managed, which we refer to as the self-management transactions. As a result of the self-management transactions and related agreements, we terminated our business management agreement, hired all of the business manager’s employees and acquired the assets necessary to conduct the functions previously performed by our business manager. In addition, we hired certain employees of our property managers; assumed certain property manager functions, including property-level accounting, lease administration, leasing, marketing and construction functions; and amended our property management agreements to reduce our property management fees as a result of our assumption of such responsibilities. We also have now agreed to directly retain certain affiliates of the business manager to provide us with information technology services, investor services and other back-office services that were provided to us through our business manager and managed by our business manager prior to the termination of the business management agreement. On December 31, 2014, subject to the satisfaction of certain closing conditions, we have agreed to hire our property managers’ remaining employees and acquire the assets necessary to conduct the functions previously performed by our property manager. As a result of such closing conditions, there can be no assurance that the remaining self- management transactions with our property managers will be completed. If they are not completed, we could be forced to extend the property management agreements, retain new property managers or build our own property management functions, which could result in significant disruption to our business and result in substantial additional costs. In transitioning to self-management, we could have difficulty integrating business management and property management services into a stand-alone entity and will bear risks to which we have not historically been exposed. An inability to manage the transition to self-management effectively could, therefore, result in our incurring additional costs or experiencing other 7 problems. There may also be unforeseen costs, expenses and difficulties associated with self-providing the services previously provided by our business manager and property managers. Such difficulties could cause us to incur additional costs, and our management's attention could be diverted from most effectively managing our business and properties. Effective February 1, 2014, we no longer pay fees to our business manager and beginning January 1, 2015, we expect not to pay fees to our property managers. However, our direct expenses will increase. We will be responsible for paying the salaries and benefits (including employee benefit plan costs) of all of our employees as well as costs associated with legal, accounting, general office and other services. We will also be subject to potential liabilities that are commonly faced by employers, such as workers’ disability and compensation claims, potential labor disputes and other employee related grievances. We may also issue equity awards to officers and employees which would decrease our net income and funds from operations and may further dilute your investment. Furthermore, there may be unforeseen costs, expenses and difficulties associated with providing services previously provided by our business manager and property managers. As a consequence, we cannot be certain that the transition to self-management will improve our financial performance. Under the agreements related to the self-management transactions, the business manager has retained, and the property managers will retain, liability for, and will indemnify and hold us harmless against liabilities of, their pre-closing operations. In addition, the business manager and property managers are obligated to indemnify us for breaches of representations and warranties and violations of covenants contained in such agreements. If the business manager or property managers do not satisfy such obligations, or do not comply with their indemnity obligations, we could incur significant additional costs. The business manager’s and property managers’ obligations, including their indemnity obligations, are guaranteed by an indirect wholly owned subsidiary of The Inland Group, Inc. Such guarantee includes certain guarantor covenants, including maintaining minimum net assets of $15,000,000. The guarantor’s primary assets are marketable securities, the value of which is subject to market fluctuations. There can be no assurance that the guarantor will comply with its financial covenants or that sufficient assets will be available to pay amounts owed to us under the guarantee. Consequently, we could incur substantial costs if the guarantor fails to meet its obligations under the guarantee. In addition, we will continue to rely on our property managers and affiliates of our business manager to provide us with services that are important to our business. If the property managers or the business manager affiliates are unwilling or unable to provide such services as required under the applicable agreements, then disruptions to our business may occur, and we may incur substantial additional costs. If we lose or are unable to obtain key personnel, our ability to implement our business strategies could be delayed or hindered. Our ability to achieve our objectives depends, to a significant degree, upon the continued contributions of our executive officers and our other key personnel. We do not have employment agreements with these persons and do not separately maintain “key person” life insurance that would provide us with proceeds in the event of death or disability of these persons. We believe that our future success depends, in large part, on our ability to retain and hire highly-skilled managerial and operating personnel. Competition for persons with managerial and operational skills is intense, and we cannot assure you that we will be successful in retaining or attracting skilled personnel. If we lose or are unable to obtain the services of our executive officers and other key personnel, or do not establish or maintain the necessary strategic relationships, our ability to implement our business strategy could be delayed or hindered. We are the subject of an ongoing investigation by the SEC and have received related derivative demands by stockholders to conduct investigations. The SEC's investigation, the derivative demands, or both could have a material adverse impact on our business. We have learned that the SEC is conducting a non-public, formal, fact-finding investigation (the “SEC Investigation”) to determine whether there have been violations of certain provisions of the federal securities laws related to the business management fees, property management fees, transactions with affiliates, timing and amount of distributions paid to investors, determination of property impairments, and any decision regarding whether the Company might become a self-administered REIT. We have also received related demands (“Derivative Demands”) by stockholders to conduct investigations regarding claims that our officers, our board of directors, our former business manager, and the affiliates of our former business manager (the “Inland American Parties”) breached their fiduciary duties to us in connection with the matters that we disclosed are subject to the SEC Investigation. The first Derivative Demand claims that the Inland American Parties (i) falsely reported the value of our common stock until September 2010; (ii) caused us to purchase shares of our common stock from stockholders at prices in excess of their value; and (iii) disguised returns of capital paid to stockholders as REIT income resulting in the payment of fees to our former business manager for which it was not entitled. The three stockholders in that demand contend that legal proceedings should seek recovery of damages in an unspecified amount allegedly sustained by us. The second Derivative Demand by another shareholder makes similar claims and further alleges that the Inland American Parties (i) caused us to 8 engage in transactions that unduly favored related parties, (ii) falsely disclosed the timing and amount of distributions, and (iii) falsely disclosed whether we might become a self-administered REIT. A special litigation committee has been formed by our board of directors to investigate the matters related to the Investigation and the Derivative Demands. We also received a letter from another stockholder that fully adopts and joins in the first Derivative Demand, but makes no additional demands on us to perform investigation or pursue claims. Upon receiving the first of the Derivative Demands, the full board of directors responded by authorizing the independent directors to investigate the claims contained in the first Derivative Demand, any subsequent stockholder demands, as well as any other matters the independent directors see fit to investigate, including matters related to the SEC Investigation. Pursuant to this authority, the independent directors have formed a special litigation committee that is comprised solely of independent directors to review and evaluate the matters referred by the full Board to the independent directors, and to recommend to the full Board any further action as is appropriate. The special litigation committee is investigating these claims with the assistance of independent legal counsel and will make a recommendation to the Board of Directors after the committee has completed its investigation. On March 21, 2013, counsel for the stockholders who made the first Derivative Demand filed a derivative lawsuit in the Circuit Court of Cook County, Illinois, on behalf of the Company. The case has been stayed pending completion of the special litigation committee's investigation. We cannot reasonably estimate the timing or outcome of either the SEC Investigation or the investigation by the special litigation committee or Derivative Demands, nor can we predict whether or not any of these matters may have a material adverse effect on our business. These matters may cause us to incur significant legal expense, both directly and as the result of any indemnification obligations. In addition, the SEC Investigation, the Derivative Demands or the special litigation committee investigation may divert management's attention from our ordinary business operations or may also limit our ability to obtain financing to fund our on-going operating requirements, which could harm our business. Adverse findings by the SEC or the special litigation committee, future litigation related thereto, or the incurrence of costs, fees, fines or penalties that are not reimbursed under our insurance policies, could have a material adverse impact on our business. The failure of any bank in which we deposit our funds could reduce the amount of cash we have available to pay distributions and make additional investments. We have deposited our cash and cash equivalents in several banking institutions in an attempt to minimize exposure to the failure or takeover of any one of these entities. However, the Federal Insurance Deposit Corporation, or “FDIC,” generally only insures limited amounts per depositor per insured bank. At December 31, 2013 we had cash and cash equivalents and restricted cash deposited in interest bearing transaction accounts at certain financial institutions exceeding these federally insured levels. If any of the banking institutions in which we have deposited funds ultimately fails, we may lose our deposits over the federally insured levels. The loss of our deposits could reduce the amount of cash we have available to distribute or invest. A failure of our information technology (IT) infrastructure could adversely impact our business and operations. We rely upon the capacity, reliability and security of our information technology infrastructure and our ability to expand and continually update this infrastructure in response to changing needs of our business. We face the challenge of supporting older systems and hardware and implementing necessary upgrades to our IT infrastructure. We may not be able to successfully implement these upgrades in an effective manner. In addition, we may incur significant increases in costs and extensive delays in the implementation and rollout of any upgrades or new systems. If there are technological impediments, unforeseen complications, errors or breakdowns in implementation, the disruptions could have an adverse effect on our business and financial condition. Risks Related to our Real Estate Assets There are inherent risks with real estate investments. Investments in real estate assets are subject to varying degrees of risk. For example, an investment in real estate cannot generally be quickly converted to cash, limiting our ability to promptly vary our portfolio in response to changing economic, financial and investment conditions. Investments in real estate assets also are subject to adverse changes in general economic conditions which, for example, reduce the demand for rental space or impact a tenant’s ability to pay rent. 9 Among the factors that could impact our real estate assets and the value of an investment in us are: • • • • • • • • • • • local conditions such as an oversupply of space or reduced demand for real estate assets of the type that we own or seek to acquire, including, with respect to our lodging properties, quick changes in supply of and demand for rooms that are rented or leased on a day-to-day basis; inability to collect rent from tenants; vacancies or inability to rent space on favorable terms; inflation and other increases in operating costs, including insurance premiums, utilities and real estate taxes; increases in energy costs or airline fares or terrorist incidents which impact the propensity of people to travel and therefore impact revenues from our lodging facilities because operating costs cannot be adjusted as quickly; adverse changes in the federal, state or local laws and regulations applicable to us, including those affecting rents, zoning, prices of goods, fuel and energy consumption, water and environmental restrictions; the relative illiquidity of real estate investments; changing market demographics; an inability to acquire and finance, or refinance, properties on favorable terms, if at all; acts of God, such as earthquakes, floods or other uninsured losses; and changes or increases in interest rates and availability of financing. In addition, periods of economic slowdown or recession, or declining demand for real estate, or the public perception that any of these events may occur, could result in a general decline in rents or increased defaults under existing leases. We have experienced these impacts in the last few years. There is no assurance that conditions will improve or that these impacts will not occur in the future. We depend on tenants for our revenue, and accordingly, lease terminations, tenant default, and bankruptcies could adversely affect the income produced by our properties. The success of our investments depends on the financial stability of our tenants. Certain economic conditions may adversely affect one or more of our tenants. For example, business failures and downsizings can affect the tenants of our office and industrial properties and may also contribute to reduced consumer demand for retail products and services which would impact tenants of our retail properties. In addition, our retail shopping center properties typically are anchored by large, nationally recognized tenants, any of which may experience a downturn in their business that may weaken significantly their financial condition and thus the performance of the applicable shopping center. Further, mergers or consolidations among large retail establishments could result in the closure of existing stores or duplicate or geographically overlapping store locations, which could include tenants at our retail properties. As a result of these factors, our tenants may delay lease commencements, decline to extend or renew their leases upon expiration, fail to make rental payments, or declare bankruptcy. Any of these actions could result in the termination of the tenants' leases, the expiration of existing leases without renewal, or the loss of rental income attributable to the terminated or expired leases. In the event of a tenant default or bankruptcy, we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment and re-leasing our property. Specifically, a bankruptcy filing by, or relating to, one of our tenants or a lease guarantor would bar efforts by us to collect pre-bankruptcy debts from that tenant or lease guarantor, or its property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of bankruptcy. The bankruptcy of a tenant or lease guarantor could delay our efforts to collect past due balances under the relevant leases, and could ultimately preclude collection of these sums. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If, however, a lease is rejected by a tenant in bankruptcy, we would have only a general, unsecured claim for damages. An unsecured claim would only be paid to the extent that funds are available and only in the same percentage as is paid to all other holders of general, unsecured claims. Restrictions under the bankruptcy laws further limit the amount of any other claims that we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of the remaining rent during the term. Geographic concentration also exposes us to risks of oversupply and competition in these markets. Significant increases in the supply of certain property types, including hotels, without corresponding increases in demand could have a material adverse effect on our financial condition, results of operations and our ability to pay distributions. As of December 31, 2013, approximately, 6%, 8%, and 10% of our base rental income of our consolidated portfolio, excluding our lodging properties, was generated by properties located in the Dallas, Chicago and Houston metropolitan areas, respectively. Additionally, at December 31, 2013, 45 of our lodging properties, or approximately 45% of our lodging portfolio, 10 were located on the eastern seaboard states ranging from Connecticut to Florida, including 7 hotels in New Jersey. Approximately 27% of our lodging portfolio is located in the southern states, including 19 properties located in Texas. One of our tenants generated a significant portion of our revenue, and rental payment defaults by this significant tenant could adversely affect our results of operations. For the year ended December 31, 2013, approximately 9% of our rental revenue from continuing operations was generated by two properties leased to AT&T, Inc. The leases, with approximately 1.7 million and 0.3 million square feet, expire in 2016 and 2019, respectively. An additional property leased to AT&T is classified as held for sale, and the lease, with approximately 1.5 million square feet, expires in 2017. As a result of the concentration of revenue generated from these properties, if AT&T were to cease paying rent or fulfilling its other monetary obligations, we could have significantly reduced rental revenues or higher expenses until the defaults were cured or the properties were leased to a new tenant or tenants. Leases representing approximately 7.0% and 12.9% of the rentable square feet of our retail and non-core portfolio, respectively, are scheduled to expire in 2014. We may be unable to renew leases or lease vacant space at favorable rates or at all. As of December 31, 2013, leases representing approximately 7.0% of the 17,031,497 rentable square feet of our retail portfolio and 12.9% of the 7,257,246 rentable square feet of our non-core properties (excluding a conventional multi-family property) are scheduled to expire in 2014. We may be unable to extend or renew any of these leases, or we may be able to lease these spaces only at rental rates equal to or below existing rental rates. In addition, some of our tenants have leases that include early termination provisions that permit the lessee to terminate all or a portion of its lease with us after a specified date or upon the occurrence of certain events with little or no liability to us. We may be required to offer substantial rent abatements, tenant improvements, early termination rights or below-market renewal options to retain these tenants or attract new ones. Portions of our properties may remain vacant for extended periods of time. Further, some of our leases currently provide tenants with options to renew the terms of their leases at rates that are less than the current market rate or to terminate their leases prior to the expiration date thereof. If we are unable to obtain new rental rates that are on average comparable to our asking rents across our portfolio, then our ability to generate cash flow growth will be negatively impacted. We may be required to make significant capital expenditures to improve our properties in order to retain and attract tenants. We expect that, upon the expiration of leases at our properties, we may be required to provide rent or other concessions to tenants, accommodate requests for renovations, build-to-suit remodeling and other improvements or provide additional services to our tenants. As a result, we may have to pay for significant leasing costs or tenant improvements in order to retain tenants whose leases are expiring and to attract new tenants in sufficient numbers. Additionally, we may need to raise capital to fund these expenditures. If we are unable to do so, or if capital is otherwise unavailable, we may be unable to fund the required expenditures. This could result in non-renewals by tenants upon expiration of their leases or the ability to attract new tenants, which would result in declines in revenues from operations. We face significant competition in the leasing market, which may decrease or prevent increases in the occupancy and rental rates of our properties. We own properties located throughout the United States. We compete with numerous developers, owners and operators of commercial properties, many of which own properties similar to, and in the same market areas as, our properties. If our competitors offer space at rental rates below current market rates, or below the rental rates we currently charge our tenants, we may lose existing or potential tenants and we may be pressured to reduce our rental rates below those we currently charge in order to attract new tenants or retain existing tenants when their leases expire. Also, if our competitors develop additional properties in locations near our properties, there may be increased competition for creditworthy tenants, which may require us to make capital improvements to properties that we would not have otherwise made. Acts of God, such as earthquakes, floods or other uninsured losses may make us susceptible to adverse climate developments from the effects of these natural disasters in those areas. Because our properties are concentrated in certain geographic areas, our operating results are likely to be impacted by climate changes affecting the real estate markets in those areas. Adverse events such as hurricanes, floods, wildfires, earthquakes, blizzards or other natural disasters, could cause a loss of revenues at our real estate properties. These losses may not be insured or insurable at an acceptable cost. Elements such as water, wind, hail, or fire damage can increase or accelerate wear on our properties' weatherproofing, and mechanical, electrical and other systems, and cause mold issues. As a result, we may incur additional operating costs and expenditures for capital improvements and maintenance at these properties. 11 Actions of our joint venture partners could negatively impact our performance. As of December 31, 2013 we had entered into joint venture agreements with ten entities to fund investment is in office, industrial/distribution, retail, lodging, and mixed use properties. The carrying value of our investment in these joint ventures, which we do not consolidate for financial reporting purposes, was $263.9 million. For the year ended December 31, 2013, we recorded income of $12.0 million and impairments, gains and losses, net of $3.5 million associated with these ventures. With respect to these investments, we are not in a position to exercise sole decision-making authority regarding the property, or the joint venture. Consequently, our joint venture investments may involve risks not otherwise present with other methods of investing in real estate. For example, our venture partner may have economic or business interests or goals which are or which become inconsistent with our business interests or goals or may take action contrary to our instructions or requests or contrary to our policies or objectives. We have experienced these events from time to time with our current or former venture partners, which in some cases has resulted in litigation. An adverse outcome in any lawsuit could have a material effect on our business, financial condition or results of operations. In addition, any litigation increases our expenses and prevents our officers and directors from focusing their time and effort on our core strategic holdings and business plans. Our relationships with our venture partners are contractual in nature. These agreements may restrict our ability to sell our interest when we desire or on advantageous terms and, on the other hand, may be terminated or dissolved under the terms of the agreements and, in each event, we may not continue to own or operate the interests or assets underlying the relationship or may need to purchase these interests or assets at an above-market price to continue ownership. Credit market disruptions and certain economic trends may increase the likelihood of a commercial developer defaulting on its obligations with respect to our development projects, including projects where we have notes receivable, or becoming bankrupt or insolvent. We have invested in, and may continue to invest in, projects that are in various stages of pre-development and development. Investing in properties in pre-development or under development, and in lodging properties in particular, which typically must be renovated or otherwise improved on a regular basis, including renovations and improvements required by existing franchise agreements, subjects us to uncertainties such as the ability to achieve desired zoning for development, environmental concerns of governmental entities or community groups, ability to control construction costs or to build in conformity with plans, specifications and timetables. In many cases, developers may not have adequate capital to address downturns in the market. Further, the developers of the projects in which we have invested are exposed to risks not only with respect to our projects, but also other projects in which they are involved. A default by a developer in respect to one of our development project investments, or the bankruptcy, insolvency or other failure of a developer for one of these projects, may require that we determine whether we want to assume the senior loan, fund monies beyond what we are contractually obligated to fund, take over development of the project, find another developer for the project, or sell our interest in the project. Developer failures could give tenants the right to terminate pre-construction leases, delay efforts to complete or sell the development project and could ultimately preclude us from realizing our anticipated returns. These events could cause a decrease in the value of our development assets and compel us to seek additional sources of funding, which may or may not be available, in order to hold and complete the development project. Generally, under bankruptcy law and the bankruptcy guarantees we have required of certain of our joint venture development partners, we may seek recourse from the developer-guarantor to complete our development project with a substitute developer partner. However, in the event of a bankruptcy by the developer-guarantor, we cannot provide assurance that the developer or its trustee will satisfy its obligations. The bankruptcy of any developer or the failure of the developer to satisfy its obligations would likely cause us to have to complete the development or find a replacement developer, which could result in delays and increased costs. We cannot provide assurance that we would be able to complete the development on terms as favorable as when we first entered into the project. If we are not able to, or elect not to, the development costs ordinarily would be charged against income for the then-current period if we determine our costs are not recoverable. Our investments in equity and debt securities have materially impacted, and may in the future materially impact, our results. As of December 31, 2013, we owned investment in real estate related equity and debt securities with an aggregate market value of $242.8 million. For the year ended December 31, 2013, we realized gains on sale of securities of $31.5 million net of impairments of $1.1 million, and net unrealized gains of $17.6 million. Real estate related equity securities are always unsecured and subordinated to other obligations of the issuer. Investments in real estate-related equity securities are subject to numerous risks including: (1) limited liquidity in the secondary trading market in the case of unlisted or thinly traded securities; (2) substantial market price volatility resulting from, among other things, changes in prevailing interest rates in the overall market or related to a specific issuer, as well as changing investor perceptions of the market as a whole, REIT or real estate securities in particular or the specific issuer in question; (3) subordination to the liabilities of the issuer; (4) the possibility that 12 earnings of the issuer may be insufficient to meet its debt service obligations or to pay distributions; and (5) with respect to investments in real estate-related preferred equity securities, the operation of mandatory sinking fund or call/redemption provisions during periods of declining interest rates that could cause the issuer to redeem the securities. In addition, investments in real estate-related securities involve special risks relating to the particular issuer of the securities, including the financial condition and business outlook of the issuer and to the risks inherent with real estate-related investments discussed herein. In fact, many of the entities that we have invested in have reduced the dividends paid on their securities. The stock prices for some of these entities have declined since our initial purchase, and in certain cases we have sold these investments at a loss. Any mortgage loans that we originate or purchase are subject to the risks of delinquency and foreclosure. We may originate and purchase mortgage loans. Mortgage loans are subject to risks of delinquency and foreclosure, and risks of loss. The ability of a borrower to repay a loan secured by an income-producing property depends primarily upon the successful operation of the property rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced, the borrower's ability to repay the loan may be impaired. A property's net operating income can be affected by the any of the potential issues associated with real estate-related investments as discussed herein. We bear the risks of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the mortgage loan. In the event of the bankruptcy of a mortgage loan borrower, the mortgage loan to that borrower will be deemed to be collateralized only to the extent of the value of the underlying collateral at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the mortgage loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. Foreclosure of a mortgage loan can be an expensive and lengthy process that could have a substantial negative effect on our anticipated return on the foreclosed mortgage loan. We may also be forced to foreclose on certain properties, be unable to sell these properties and be forced to incur substantial expenses to improve operations at the property. An increase in real estate taxes may decrease our income from properties. From time to time, the amount we pay for property taxes increases as either property values increase or assessment rates are adjusted. Increases in a property's value or in the assessment rate result in an increase in the real estate taxes due on that property. If we are unable to pass the increase in taxes through to our tenants, our net operating income for the property will decrease. Uninsured losses or premiums for insurance coverage may adversely affect a stockholder's returns. We attempt to adequately insure all of our properties against casualty losses. There are types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters that are uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Risks associated with potential acts of terrorism could sharply increase the premiums we pay for coverage against property and casualty claims. Additionally, mortgage lenders sometimes require commercial property owners to purchase specific coverage against terrorism as a condition for providing mortgage loans. These policies may not be available at a reasonable cost, if at all, which could inhibit our ability to finance or refinance our properties. In such instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. If we incur any casualty losses not fully covered by insurance, the value of our assets will be reduced by the amount of the uninsured loss. In addition, other than any reserves we may establish, we have no designated source of funding to repair or reconstruct any uninsured damaged property. Terrorist attacks and other acts of violence or war may affect the markets in which we operate our operations and our profitability. We own estate assets located in areas that are susceptible to attack. These attacks may directly impact the value of our assets through damage, destruction, loss or increased security costs. Although we may obtain terrorism insurance, we may not be able to obtain sufficient coverage to fund any losses we may incur. Risks associated with potential acts of terrorism could sharply increase the premiums we pay for coverage against property and casualty claims. Further, certain losses resulting from these types of events are uninsurable or not insurable at reasonable costs. More generally, any terrorist attack, other act of violence or war, including armed conflicts, could result in increased volatility in or damage to, the United States and worldwide financial markets and economy. Any terrorist incident may, for example, deter people from traveling. 13 The cost of complying with environmental and other governmental laws and regulations may adversely affect us. All real property and the operations conducted on real property are subject to federal, state and local laws and regulations (including those of foreign jurisdictions) relating to environmental protection and human health and safety. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above- ground storage tanks, the use, storage, treatment, transportation and disposal of solid and hazardous materials, and the remediation of contamination associated with disposals. We also are required to comply with various local, state and federal fire, health, life-safety and similar regulations. Some of these laws and regulations may impose joint and several liabilities on tenants or owners for the costs of investigating or remediating contaminated properties. These laws and regulations often impose liability whether or not the owner knew of, or was responsible for, the presence of the hazardous or toxic substances. The cost of removing or remediating could be substantial. In addition, the presence of these substances, or the failure to properly remediate these substances, may adversely affect our ability to sell or rent a property or to use the property as collateral for borrowing. Environmental laws and regulations also may impose restrictions on the manner in which properties may be used or businesses may be operated, and these restrictions may require substantial expenditures by us. Environmental laws and regulations provide for sanctions in the event of noncompliance and may be enforced by governmental agencies or, in certain circumstances, by private parties. Third parties may seek recovery from owners of real properties for personal injury or property damage associated with exposure to released hazardous substances. Compliance with new or more stringent laws or regulations or stricter interpretations of existing laws may require material expenditures by us. For example, various federal, regional and state laws and regulations have been implemented or are under consideration to mitigate the effects of climate change caused by greenhouse gas emissions. Among other things, “green” building codes may seek to reduce emissions through the imposition of standards for design, construction materials, water and energy usage and efficiency, and waste management. We are not aware of any such existing requirements that we believe will have a material impact on our current operations. However, future requirements could increase the costs of maintaining or improving our existing properties or developing new properties. Our properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem. The presence of mold at any of our properties could require us to undertake a costly program to remediate, contain or remove the mold. Mold growth may occur when moisture accumulates in buildings or on building materials. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing because exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. The presence of mold could expose us to liability from our tenants, their employees and others if property damage or health concerns arise. We may incur significant costs to comply with the Americans With Disabilities Act. Our properties generally are subject to the Americans With Disabilities Act of 1990, as amended. Under this act, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The act has separate compliance requirements for “public accommodations” and “commercial facilities” that generally require that buildings and services be made accessible and available to people with disabilities. The act's requirements could require us to remove access barriers and could result in the imposition of injunctive relief, monetary penalties or, in some cases, an award of damages. Additional Risks Associated with our Retail Assets Our retail properties face considerable competition for the tenancy of our lessees and the business of retail shoppers. There are numerous shopping venues that compete with our retail properties in attracting retailers to lease space and shoppers to patronize their properties. In addition, our retail tenants face changing consumer preferences and increasing competition from other forms of retailing, such as catalogues and other forms of direct marketing, internet websites and telemarketing as well as other retail centers located within the geographic market area of our retail properties that compete with our properties for customers. All of these factors may adversely affect our tenants’ cash flows and, therefore, their ability to pay rent. 14 Retail conditions may adversely affect our income and our ability to make distributions to you. A retail property’s revenues and value may be adversely affected by a number of factors, many of which apply to real estate investment generally, but which also include trends in the retail industry and perceptions by retailers or shoppers of the safety, convenience and attractiveness of the retail property. Our properties are located in public places, and any incidents of crime or violence, including acts of terrorism, could result in a reduction of business traffic to tenant stores in our properties. Any such incidents may also expose us to civil liability or harm our reputation. In addition, to the extent that the investing public has a negative perception of the retail sector, the value of our retail properties may be negatively impacted. The recent economic downturn and weak recovery in the United States has had, and may continue to have, an adverse impact on the retail industry generally. Slow or negative growth in the retail industry could result in defaults by retail tenants, which could have an adverse impact on our business, financial condition, or result of operations. The economic downturn and weak recovery in the United States has had an adverse impact on the retail industry generally. As a result, the retail industry is facing reductions in sales revenues and increased bankruptcies throughout the United States. The continuation of adverse economic conditions may result in an increase in distressed or bankrupt retail companies, which in turn would result in an increase in defaults by tenants at our commercial properties. Additionally, slow economic growth is likely to hinder new entrants into the retail market which may make it difficult for us to fully lease our real properties. Tenant defaults and decreased demand for retail space would have an adverse impact on the value of our retail properties and our results of operations. Competition may impede our ability to renew leases or re-let space as leases expire and require us to undertake unbudgeted capital improvements, which could harm our operating results. Our properties are located in developed areas. Any competitive properties that are developed close to our existing properties also may impact our ability to lease space to creditworthy tenants. Increased competition for tenants may require us to make capital improvements to properties that we would not have otherwise planned to make. Any unbudgeted capital improvements may negatively impact our financial position. Also, to the extent we are unable to renew leases or re-let space as leases expire, it would result in decreased cash flow from tenants and reduce the income produced by our properties. Excessive vacancies (and related reduced shopper traffic) at one of our properties may hurt sales of other tenants at that property and may discourage them from renewing leases. We may be restricted from re-leasing space at our retail properties. Leases with retail tenants may contain provisions giving the particular tenant the exclusive right to sell particular types of merchandise or provide specific types of services within the particular retail center. These provisions may limit the number and types of prospective tenants interested in leasing space in a particular retail property. We have entered into long-term leases with some of our retail tenants, those leases may not result in fair value over time, which could adversely affect our revenues and ability to make distributions. We have entered into long-term leases with some of our retail tenants. Long-term leases do not allow for significant changes in rental payments and do not expire in the near term. If we do not accurately judge the potential for increases in market rental rates when negotiating these long-term leases, significant increases in future property operating costs could result in receiving less than fair value from these leases. These circumstances would adversely affect our revenues and funds available for distribution. Our revenue will be impacted by the success and economic viability of our anchor retail tenants. Our reliance on single or significant tenants in certain buildings may decrease our ability to lease vacated space and adversely affect the returns on your investment. In the retail sector, a tenant occupying all or a large portion of the gross leasable area of a retail center, commonly referred to as an anchor tenant, may become insolvent, may suffer a downturn in business, or may decide not to renew its lease. Any of these events would result in a reduction or cessation in rental payments to us and would adversely affect our financial condition. A lease termination by an anchor tenant could result in lease terminations or reductions in rent by other tenants whose leases may permit cancellation or rent reduction if another tenant’s lease is terminated. Similarly, the leases of some anchor tenants may permit the anchor tenant to transfer its lease to another retailer. The transfer to a new anchor tenant could cause customer traffic in the retail center to decrease and thereby reduce the income generated by that retail center. A lease transfer to a new anchor tenant could also allow other tenants to make reduced rental payments or to terminate their leases in accordance with lease 15 terms. In the event that we are unable to release the vacated space to a new anchor tenant, we may incur additional expenses in order to remodel the space to be able to re-lease the space to more than one tenant. Additional Risks Associated with our Lodging Assets We are subject to the business, financial and operating risks inherent to the lodging industry, any of which could reduce our revenues and limit opportunities for growth. Our business is subject to a number of business, financial and operating risks inherent to the lodging industry, including: • • • • • • • • • • • • • • • significant competition from multiple lodging providers in all areas where we operate; changes in operating costs, including energy, food, compensation, benefits and insurance; increases in costs due to inflation that may not be fully offset by price and fee increases in our business; changes in tax and governmental regulations that influence or set wages, prices, interest rates or construction and maintenance procedures and costs; the costs and administrative burdens associated with complying with applicable laws and regulations; significant increases in cost for health care coverage for employees and potential government regulation with respect to health care coverage; shortages of labor or labor disruptions; the availability and cost of capital necessary for us and third-party hotel owners to fund investments, capital expenditures and service debt obligations; the quality of services provided by franchisees; the financial condition of third-party property owners, developers and joint venture partners; relationships with third-party property owners, developers and joint venture partners, including the risk that owners may terminate our management, franchise or joint venture agreements; changes in desirability of geographic regions of the hotels in our business and geographic concentration of our operations and customers; changes in the supply and demand for hotel services (including rooms, food and beverage, and other products and services); the ability of third-party internet and other travel intermediaries to attract and retain customers; and decreases that may result in the frequency of business travel as a result of alternatives to in person meetings, including virtual meetings hosted on-line or over private teleconferencing networks. Any of these factors could increase our costs or limit or reduce the prices we are able to charge for lodging services, or otherwise affect our ability to maintain existing properties or develop new properties. As a result, any of these factors can reduce our revenues and limit opportunities for growth. Macro economic and other factors beyond our control can adversely affect and reduce demand for our products and services. Macro economic and other factors beyond our control can reduce demand for lodging products and services, including demand for rooms at properties that we own. These factors include, but are not limited to: • changes in general economic conditions, including low consumer confidence, unemployment levels, depressed real estate prices resulting from the severity and duration of any downturn in the U.S. or global economy; • war, political conditions or civil unrest, terrorist activities or threats and heightened travel security measures instituted in response to these events; decreased corporate or government travel-related budgets and spending, as well as cancellations, deferrals or renegotiations of group business such as industry conventions; statements, actions, or interventions by governmental officials related to travel and corporate travel-related activities and the resulting negative public perception of such travel and activities; the financial and general business condition of the airline, automotive and other transportation-related industries and its impact on travel, including decreased airline capacity and routes; conditions which negatively shape public perception of travel, including travel-related accidents and outbreaks of pandemic or contagious diseases, such as avian flu, severe acute respiratory syndrome (SARS) and H1N1 (swine flu); climate change or availability of natural resources; natural or man-made disasters, such as earthquakes, tsunamis, tornadoes, hurricanes, typhoons, floods, volcanic eruptions, oil spills and nuclear incidents; changes in the desirability of particular locations or travel patterns of customers; cyclical over-building in the hotel industry; and • • • • • • • • 16 • organized labor activities, which could cause a diversion of business from hotels involved in labor negotiations and loss of business for our hotels generally as a result of certain labor tactics. Any one or more of these factors could limit or reduce overall demand for our products and services or could negatively impact our revenue sources, which could adversely affect our business, financial condition and results of operations. We focus on investing in upper-upscale and upscale lodging segments. These segments can be very volatile. A significant portion of our assets consist of hotels, a very different asset class from retail and student housing properties. Retail tenants tend to enter into longer term leases which provide us with some stability over the term of the lease. Lodging, however, is very volatile. Most hotel guests stay at a hotel for only a few nights, so the rate and occupancy at each of our hotels changes every day. In addition, we are focusing on investing in the upper-upscale and upscale segments of the lodging sector. These segments tend to be more susceptible to changes in the economy because they generally target business and high end leisure travelers. In particular, revenue from group contract business, such as meeting space and conferences, may be large component of total revenues for an upper-upscale hotel. Due to economy changes, there may be a reduction in group business demand. As a result, revenues and earnings from our hotel sector may be very volatile. In the past, events beyond our control, including economic slowdowns and terrorism, harmed the operating performance of the lodging industry generally. If these or similar events occur again, our operating and financial results may be harmed by declines in average daily room rates and occupancy. The performance of the lodging industry has traditionally been closely linked with the performance of the general economy. The majority of our hotels are classified as upper upscale hotels. In an economic downturn, this type of hotel may be more susceptible to a decrease in revenue, as compared to hotels in other categories that have lower room rates because, as noted above, upper upscale hotels generally target business and high-end leisure travelers. In periods of economic difficulties, business and leisure travelers may reduce travel costs by limiting travel or by using lower cost accommodations. Also, volatility in transportation fuel costs, increases in air and ground travel costs and decreases in airline capacity may reduce the demand for our hotel rooms. Accordingly, our financial results may be harmed if economic conditions worsen, or if travel-associated costs, such as transportation fuel costs, increase. In addition, the terrorist attacks of September 11, 2001 had a dramatic adverse effect on business and leisure travel, and on the occupancy and average daily rate of our hotels. Future terrorist activities could have a harmful effect on both the industry and us. Failure of the lodging industry to exhibit sustained improvement or to improve as expected will impact our business strategy. We continue to execute on our strategy to focus on three property types: retail, student housing and lodging. The lodging sector has become one of our larger property segments. Our focus on lodging is driven, in part, on our view that lodging will benefit from an improving economy. There is no assurance, however, that the general economy will continue to improve or that lodging industry fundamentals will continue to improve with the general economy. In the event conditions in the industry do not sustain improvement or improve as we expect, or deteriorate, our revenues and profits from our lodging properties will be negatively impacted. Further, the underlying value of our assets may grow slower than the economy as a whole or may decline in value which will have a material adverse effect on our business plan. The lodging industry is subject to seasonal and cyclical volatility, which may contribute to fluctuations in our results of operations and financial condition. The lodging industry is seasonal in nature. The periods during which our lodging properties experience higher revenues vary from property to property, depending principally upon location and the customer base served. Due to seasonality, we generally expect our lodging revenues to be greater during the second and third quarters with lower revenues in the first and fourth quarters. In addition, the lodging industry is cyclical and demand generally follows, on a lagged basis, the general economy. The seasonality and cyclicality of our industry may contribute to fluctuations in our results of operations and financial condition. Our hotels are subject to significant competition. The hotel industry is very competitive regardless of the segment. Material increases in the supply of new hotel rooms to a particular market can quickly destabilize that market and existing hotels can experience rapidly decreasing RevPAR and profitability. Over-building in one or more of our markets may adversely affect our business plan. 17 In the case of the upper upscale segment, hotels compete on the basis of location, room rates and quality, service levels, reputation and reservations systems, among many other factors. There are many competitors in this segment, some of whom may have greater marketing and financial resources than us. This competition could reduce occupancy levels and room revenue at our hotels, which would harm our operations. Over-building in the hotel industry may increase the number of rooms available and may decrease occupancy and room rates. We may also face competition from nationally recognized hotel brands with which we are not associated. In addition, in periods of weak demand, profitability is negatively affected by the relatively high fixed costs of operating upper upscale hotels when compared to other classes of hotels. We may be adversely affected by increased use of business related technology which may reduce the need for business related travel. The increased use of teleconference and video-conference technology by businesses could result in decreased business travel as companies increase the use of technologies that allow multiple parties from different locations to participate in meetings without traveling to a centralized meeting location. To the extent that such technologies play an increased role in day-to-day business and the necessity for business related travel decreases, hotel room demand may decrease and our financial condition, results of operations, the market price of our common stock and our ability to make distributions to our stockholders may be adversely affected. The operating results of some of our individual hotels are significantly impacted by group contract business (such as meeting space and conferences) and room nights generated by large corporate transient customers, and the loss of such customers for any reason could harm our operating results. Group contract business (such as meeting space and conferences) and room nights generated by other large corporate transient customers can significantly impact the results of operations of our hotels. These contracts and customers vary from hotel to hotel and change from time to time. Such group contracts are typically for a limited period of time after which they may be put up for competitive bidding. The impact and timing of large events are not always easy to predict. As a result, the operating results for our individual hotels can fluctuate as a result of these factors, possibly in adverse ways, and these fluctuations can affect the revenues and earnings generated by our lodging properties. The outbreak of influenza or other widespread contagious disease could reduce travel and adversely affect hotel demand. The widespread outbreak of infectious or contagious disease in the U.S. could reduce travel and adversely affect the hotel industry generally and our business in particular. We are subject to risks associated with our ongoing need for renovations and capital improvements as well as financing these expenditures. In order to remain competitive, our hotels have an ongoing need for renovations and other capital improvements, including replacements, from time to time, of furniture, fixtures and equipment. These capital improvements may give rise to the following risks: • • • • • construction cost overruns and delays; a possible shortage of available monies to fund capital improvements and the related possibility that financing for these capital improvements may not be available to us on affordable terms; the renovation investment failing to produce the returns on investment that we expect; disruptions in the operations of the hotel as well as in demand for the hotel while capital improvements are underway; and disputes with franchisors/hotel managers regarding compliance with relevant management/franchise agreements. In addition, we may not be able to fund capital improvements or acquisitions solely from cash provided from our operating activities because we generally must distribute at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding net capital gains, each year to maintain our REIT tax status. As a result, our ability to fund capital expenditures, or investments through retained earnings, is very limited. Consequently, we rely upon the availability of debt or equity capital to fund our investments and capital improvements. These sources of funds may not be available on reasonable terms and conditions or at all. Our franchisors and brand managers may require us to make capital expenditures pursuant to property improvement plans, or PIPs, and the failure to make the expenditures required under the PIPs or to comply with brand standards could cause the franchisors or hotel brands to terminate the franchise or management agreements. 18 Our franchisors and brand managers may require that we make renovations to certain of our hotels in connection with revisions to our franchise or management agreements. In addition, upon regular inspection of our hotels, our franchisors and hotel brands may determine that additional renovations are required to bring the physical condition of our hotels into compliance with the specifications and standards each franchisor or hotel brand has developed. In connection with the acquisitions of hotels, franchisors and hotel brands may also require PIPs, which set forth their renovation requirements. If we do not satisfy the PIP renovation requirements, the franchisor or hotel brand may have the right to terminate the applicable agreement. In addition, if we default on a franchise agreement as a result of our failure to comply with the PIP requirements, in general, we will be required to pay the franchisor liquidated damages. Funds spent to maintain licensed brand standards or the loss of a brand license would adversely affect our lodging segment. Our hotels operate under licensed brands, either through management or franchise agreements with hotel brand companies that permit us to do so, and we anticipate that the hotels we acquire in the future also will operate under licensed brands. We are therefore subject to the risks inherent in concentrating our hotels in several licensed brands. These risks include reductions in business following negative publicity related to one of our licensed brands or arising from or after a dispute with a hotel brand company. The maintenance of the brand licenses for our hotels is subject to the hotel brand companies’ operating standards and other terms and conditions. Hotel brand companies periodically inspect our hotels to ensure that we and our lessees and hotel managers follow their standards. Failure by us, our taxable REIT subsidiaries or one of our hotel managers to maintain these standards or other terms and conditions could result in a brand license being terminated. If a brand license terminates due to our failure to make required improvements or to otherwise comply with its terms, we may also be liable to the hotel brand company for a termination payment, which will vary by hotel brand company and by hotel. As a condition of our continued holding of a brand license, a hotel brand company could also possibly require us to make capital expenditures, even if we do not believe the capital improvements are necessary or desirable or will result in an acceptable return on our investment. Nonetheless, we may risk losing a brand license if we do not make hotel brand company-required capital expenditures. If a hotel brand company terminates the brand license, we may try either to obtain a suitable replacement brand or to operate the hotel without a brand license. The loss of a brand license could materially and adversely affect the operations or the underlying value of the hotel because of the loss of associated name recognition, marketing support and centralized reservation systems provided by the hotel brand company. A loss of a brand license for one or more hotels could materially and adversely affect the revenues and earnings generated by our lodging sector. Many real estate costs are fixed, even if revenue from our hotels decreases. Many costs, such as real estate taxes, insurance premiums and maintenance costs, generally are not reduced even when a hotel is not fully occupied, room rates decrease or other circumstances cause a reduction in revenues. In addition, newly acquired or renovated hotels may not produce the revenues we anticipate immediately, or at all, and the hotel's operating cash flow may be insufficient to pay the operating expenses and debt service associated with these new hotels. If we are unable to offset real estate costs with sufficient revenues across our portfolio, may be adversely affected. To qualify as a REIT, we must rely on third parties to operate our hotels. To continue qualifying as a REIT, we may not, among other things, operate any hotel, or directly participate in the decisions affecting the daily operations of any hotel. Thus, we have retained third party managers to operate our hotel properties. We do not have the authority to directly control any particular aspect of the daily operations of any hotel, such as setting room rates. Thus, even if we believe our hotels are being operated in an inefficient or sub-optimal manner, we may not be able to require an immediate change to the method of operation. Our only alternative for changing the operation of our hotels may be to replace the third party manager of one or more hotels in situations where the applicable management agreement permits us to terminate the existing manager. Certain of these agreements may not be terminated without cause, which generally requires fraud, misrepresentation and other illegal acts. Even if we terminate or replace any manager, there is no assurance that we will be able to find another manager or that we will be able to enter into new management agreements favorable to us. Any change of hotel management would disrupt operations, which could have an adverse material effect on our operating results and financial condition. Conditions of franchise agreements could adversely affect us. Our lodging properties are operated pursuant to agreements with nationally recognized franchisors including Marriott International, Inc., Hilton Hotels Corporation, Intercontinental Hotels Group PLC, Hyatt Corporation, Fairmont Hotels and 19 Resorts, and Starwood Hotels and Resorts Worldwide, Inc. These agreements generally contain specific standards for, and restrictions and limitations on, the operation and maintenance of a franchised hotel in order to maintain uniformity within the particular franchisor's system. These standards are subject to change, in some cases at the discretion of the franchisor, and may restrict our ability to make improvements or modifications to a hotel without the consent of the franchisor. Conversely, these standards may require us to make certain improvements or modifications to a hotel, even if we do not believe the capital improvements are necessary or desirable or will result in an acceptable return on our investment. These agreements also permit the franchisor to terminate the agreement in certain cases such as a failure to pay royalties and fees or to perform covenants contained in the franchise agreement, bankruptcy, abandonment of the franchise, commission of a felony, assignment of the franchise without the consent of the franchisor or failure to comply with applicable law or maintain applicable standards in the operation and condition of the relevant hotel. If a franchise license terminates due to our failure to comply with the terms and conditions of the agreement, we may be liable to the franchisor for a termination payment. These payments vary. Also, these franchise agreements do not renew automatically. If we were to lose a franchise agreement, there is no assurance that we would be able to enter into an agreement with a different franchisor. Due to restrictions in our hotel management agreements, franchise agreements, mortgage agreements and ground leases, we may not be able to sell our hotels at the highest possible price (or at all). Our current hotel management agreements are long-term and contain certain restrictions on selling our hotels, which may affect the value of our hotels. The hotel management agreements that we have entered into, and those we expect to enter into in the future, contain provisions restricting our ability to dispose of our hotels which, in turn, may have an adverse affect on the value of our hotels. Our hotel management agreements generally prohibit the sale of a hotel to: • • • certain competitors of the manager; purchasers who are insufficiently capitalized; or purchasers who might jeopardize certain liquor or gaming licenses. In addition, our current hotel management agreements contain initial terms ranging from six to forty years and certain agreements have renewal periods of three to ten years which are exercisable at the option of the owner. Because our hotels would have to be sold subject to the applicable hotel management agreement, the term length of a hotel management agreement may deter some potential purchasers and could adversely impact the price realized from any such sale. To the extent we receive lower sale proceeds, we could experience a material adverse effect on our business, financial condition, results of operations and our ability to make distributions to stockholders. We are subject to risks associated with the employment of hotel personnel, particularly with hotels that employ unionized labor, which could increase our operating costs, reduce the flexibility of our hotel managers to adjust the size of the workforce at our hotels and impair our ability to make distributions to our shareholders. We have entered into management agreements with third-party hotel managers to operate our hotels. Our hotel managers are responsible for hiring and maintaining the labor force at each of our hotels. Although we do not directly employ or manage employees at our hotels, we are subject to many of the costs and risks generally associated with the hotel labor force, particularly those hotels with unionized labor. From time to time, hotel operations may be disrupted as a result of strikes, lockouts, public demonstrations or other negative actions and publicity. We also may incur increased legal costs and indirect labor costs as a result of contract disputes or other events. Additionally, hotels where our managers have collective bargaining agreements with employees are more highly affected by labor force activities than others. The resolution of labor disputes or re- negotiated labor contracts could lead to increased labor costs, either by increases in wages or benefits or by changes in work rules that raise hotel operating costs. Furthermore, labor agreements may limit the ability of our hotel managers to reduce the size of hotel workforces during an economic downturn because collective bargaining agreements are negotiated between the hotel managers and labor unions. We do not have the ability to control the outcome of these negotiations. 20 Risks Associated with Debt Financing Borrowings may reduce the funds available for distribution and increase the risk of loss since defaults may cause us to lose the properties securing the loans. We have acquired, and will continue to acquire, real estate assets by assuming existing financing or borrowing new monies. Our articles permit us to borrow up to 300% of our net assets. In addition, we may obtain loans secured by some or all of our properties or other assets to fund additional acquisitions or operations including to satisfy the requirement that we distribute at least 90% of our annual “REIT taxable income” (subject to certain adjustments) to our stockholders, or as is otherwise necessary or advisable to assure that we qualify as a REIT for federal income tax purposes. Payments required on any amounts we borrow reduce the funds available for, among other things, distributions to our stockholders because cash otherwise available for distribution is required to pay principal and interest associated with amounts we borrow. Defaults on loans secured by a property we own may result in us losing the property or properties securing the loan that is in default as a result of foreclosure actions initiated by a lender. For tax purposes, a foreclosure would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the property. If the outstanding balance of the debt exceeds our tax basis in the property, we would recognize taxable gain on the foreclosure but would not receive any cash proceeds. We also may fully or partially guarantee any monies that subsidiaries borrow to purchase or operate real estate assets. In these cases, we will be responsible to the lender for repaying the loans if the subsidiary is unable to do so. If any mortgage contains cross-collateralization or cross-default provisions, more than one property may be affected by a default. Lenders may restrict certain aspects of our operations, which could, among other things, limit our ability to make distributions. The terms and conditions contained in any of our loan documents may require us to maintain cash reserves; limit the aggregate amount we may borrow on a secured and unsecured basis; require us to satisfy restrictive financial covenants; prevent us from entering into certain business transactions, such as a merger, sale of assets or other business combination; restrict our leasing operations; or require us to obtain consent from the lender to complete transactions or make investments that are ordinarily approved only by our board of directors. In particular, we have secured mortgages on certain upper-upscale lodging properties. We believe these properties to be more susceptible to changes in the economy because they target business and high end leisure travelers. This may inhibit us from satisfying our debt covenants and put us in default with the terms of our loan documents. In addition, secured lenders typically restrict our ability to discontinue insurance coverage on a mortgaged property even though we may believe that the insurance premiums paid to insure against certain losses, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters, are greater than the potential risk of loss. Our mortgage agreements contain certain provisions that may limit our ability to sell our properties. In order to assign or transfer our rights and obligations under certain of our mortgage agreements, we generally must obtain the consent of the lender, pay a fee equal to a fixed percentage of the outstanding loan balance, and pay any costs incurred by the lender in connection with any such assignment or transfer. These provisions of our mortgage agreements may limit our ability to sell our properties which, in turn, could adversely impact the price realized from any such sale. To the extent we receive lower sale proceeds, we could experience a material adverse effect on our business, financial condition, results of operations and our ability to make distributions to stockholders. Interest-only indebtedness may increase our risk of default. We have obtained, and continue to borrow interest-only mortgage indebtedness. During the interest only period, the amount of each scheduled payment is less than that of a traditional amortizing mortgage loan. The principal balance of the mortgage loan is not reduced (except in the case of prepayments) because there are no scheduled monthly payments of principal during this period. After the interest-only period, we are required either to make scheduled payments of amortized principal and interest or to make a lump-sum or “balloon” payment at maturity. These required principal or balloon payments increase the amount of our scheduled payments and may increase our risk of default under the related mortgage loan if we are unable to fund the lump- sum or balloon amount. 21 Increases in interest rates could increase the amount of our debt payments. As of December 31, 2013, approximately $1.0 billion of our mortgage payables and $200.2 million of our line of credit debt bore interest at variable rates. Increases in interest rates on variable rate debt that has not otherwise been hedged through the use of swap agreements reduce the funds available for other needs, including distribution to our stockholders. As of December 31, 2013, approximately $3.7 billion of our total indebtedness bore interest at fixed rates. As fixed rate debt matures, we may not be able to borrow at rates equal to or lower than the rates on the expiring debt. In addition, if rising interest rates cause us to need additional capital to repay indebtedness, we may be forced to sell one or more of our properties or investments in real estate at times which may not permit us to realize the return on the investments we would have otherwise realized. To hedge against interest rate fluctuations, we use derivative financial instruments, which may be costly and ineffective. From time to time, we use derivative financial instruments to hedge exposures to changes in interest rates on certain loans secured by our assets. Our derivative instruments currently consist of interest rate swap contracts but may, in the future, include, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our actual hedging decisions are determined in light of the facts and circumstances existing at the time of the hedge. There is no assurance that our hedging strategy will achieve our objectives. We may be subject to costs, such as transaction fees or breakage costs, if we terminate these arrangements. To the extent that we use derivative financial instruments to hedge against interest rate fluctuations, we are exposed to credit risk, basis risk and legal enforceability risks. In this context, credit risk is the failure of the counterparty to perform under the terms of the derivative contract. Basis risk occurs when the index upon which the contract is based is more or less variable than the index upon which the hedged asset or liability is based, thereby making the hedge less effective. Finally, legal enforceability risks encompass general contractual risks including the risk that the counterparty will breach the terms of, or fail to perform its obligations under, the derivative contract. A counterparty could fail, shut down, file for bankruptcy or be unable to pay out contracts. The business failure of a hedging counterparty with whom we enter into a hedging transaction will most likely result in a default. Default by a party with whom we enter into a hedging transaction may result in the loss of unrealized profits and force us to cover our resale commitments, if any, at the then current market price. Although generally we will seek to reserve the right to terminate our hedging positions, it may not always be possible to dispose of or close out a hedging position without the consent of the hedging counterparty, and we may not be able to enter into an offsetting contract to cover our risk. We cannot provide assurance that a liquid secondary market will exist for hedging instruments purchased or sold, and we may be required to maintain a position until exercise or expiration, which could result in losses. Further, the REIT provisions of the Code may limit our ability to hedge the risks inherent to our operations. We may be unable to manage these risks effectively. We may be contractually obligated to purchase property even if we are unable to secure financing for the acquisition. We typically finance a portion of the purchase price for each property that we acquire. However, to ensure that our offers are as competitive as possible, we generally do not enter into contracts to purchase property that include financing contingencies. Thus, we may be contractually obligated to purchase a property even if we are unable to secure financing for the acquisition. In this event, we may choose to close on the property by using cash on hand, which would result in less cash available for other purposes including funding operating costs or paying distributions to our stockholders. Alternatively, we may choose not to close on the acquisition of the property and default on the purchase contract. If we default on any purchase contract, we could lose our earnest money and become subject to liquidated or other contractual damages and remedies. The financial covenants under our credit agreement may restrict our ability to make distributions and our operating and acquisition activities. If we breach the financial covenants we could be held in default under the credit agreement, which could accelerate our repayment date and materially adversely affect our liquidity and financial condition. On May 8, 2013, we entered into a credit agreement with KeyBank National Association, JP Morgan Chase Bank National Association and other financial institutions to provide for a senior unsecured credit facility, which was subsequently expanded on November 5, 2013. The credit facility consists of a $300 million senior unsecured revolving line of credit and a $200 million unsecured term loan. We also have an accordion feature to increase available borrowings up to $800 million in certain circumstances with lenders’ consent. As of December 31, 2013, we had borrowed the full amount of the term loan and had $299.8 million available under the revolving line of credit. This full recourse credit agreement requires compliance with certain financial covenants including: a minimum net worth requirement, restrictions on indebtedness, a distribution limitation and investment restrictions. These 22 covenants could prevent or inhibit our ability to make distributions to its stockholders and to pursue some business initiatives or effect certain transactions that may otherwise be beneficial to us. The credit agreement also contains default provisions including the failure to (i) timely pay debt service: (ii) comply with financial and operating covenants in the credit agreement; or (iii) pay when due, all amounts outstanding under the credit agreement. Declaration of a default by the lenders under the credit agreement could restrict our ability to borrow additional monies and accelerate all amounts outstanding under the credit facility. Risks Related to Our Common Stock Since Inland American shares are not currently traded on a national stock exchange, there is no established public market for our shares and you may not be able to sell your shares. Our shares of common stock are not listed on a national securities exchange. There is no established public trading market for our shares and no assurance that one may develop. Our charter also prohibits the ownership of more than 9.8% in value of the aggregate of the outstanding shares of our stock or more than 9.8% (in value or numbers whichever is more restrictive) of any class or series of shares of our stock by any single investor unless exempted by our board. This may inhibit investors from purchasing a large portion of our shares. Our charter also does not require our directors to seek stockholder approval to liquidate our assets by a specified date, nor does our charter require our directors to list our shares for trading on a national exchange by a specified date. There is no assurance the board will pursue a listing or other liquidity event. In addition, even if our board decides to seek a listing of our shares of common stock, there is no assurance that we will satisfy the listing requirements or that our shares will be approved for listing. If and when a listing occurs there is no guarantee you will be able to sell your common shares at a price equal to your initial investment value. Our stockholders may not be able to sell some or all of their shares under our share repurchases program. Our share repurchase program, which was effective through February 28, 2014, contained numerous restrictions that limited our stockholders' ability to sell their shares, including those relating to the number of shares of our common stock that we could repurchase at any given time and limiting the funds we could use to repurchase shares pursuant to the program. Under the program, we may repurchase shares of our common stock, on a quarterly basis only, from the beneficiary of a stockholder that has died or from stockholders that have a “qualifying disability” or are confined to a “long-term care facility” (together, referred to herein as “hardship repurchases”). Our program does not permit us to accept shares for repurchase for any other reason, further, we are authorized to repurchase shares at a price per share equal to 100% of the most recently disclosed estimated per share value of our common stock, which currently is equal to $6.94 per share. Our obligation to repurchase any shares under the program is further conditioned upon our having sufficient funds available to complete the repurchase. Through February 28, 2014, our board has reserved $10.0 million per calendar quarter for the purpose of funding repurchases associated with death and $15.0 million per calendar quarter for the purpose of funding hardship repurchases. If the funds reserved for either category of repurchase under the program are insufficient to repurchase all of the shares for which repurchase requests have been received for a particular quarter, or if the number of shares accepted for repurchase would cause us to exceed the 5.0% limit set forth therein, we will repurchase the shares in the following order: (1) for death repurchases, we will repurchase shares in chronological order, based upon the beneficial owner's date of death; and (2) for hardship repurchases, we will repurchase shares on a pro-rata basis, up to, but not in excess of, the limits described herein; provided, that in the event that the repurchase would result in a stockholder owning less than 150 shares, we will repurchase all of that stockholder's shares. Further, we have no obligation to repurchase shares if the repurchase would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. Since the repurchase price is equal to our estimated per share value of our common stock, a stockholder may receive less than the amount of their investment in the shares. Moreover, our directors have the discretion to suspend or terminate the program upon 30 days' notice. Therefore, our stockholders may not have the opportunity to make a repurchase request prior to a potential termination of the share repurchase program and our stockholders may not be able to sell any of their shares of common stock back to us. As a result of these restrictions and circumstances, the ability of our stockholders to sell their shares should they require liquidity is significantly restricted. The estimated value of our common stock is based on a number of assumptions and estimates that may not be accurate or complete and is also subject to a number of limitations. On December 27, 2013, we announced an estimated value of our common stock equal to $6.94 per share. The audit committee of the Company’s board of directors engaged Real Globe Advisors, LLC (“Real Globe”), an independent third-party real estated advisory firm to estimate the per share value of our common stock on a fully diluted basis as of December 31, 2013. As 23 with any methodology used to estimate value, the methodology employed by Real Globe and the recommendations made by our former business manager were based upon a number of estimates and assumptions that may not be accurate or complete. Further, different parties using different assumptions and estimates could derive a different estimated value per share, which could be significantly different from our estimated value per share. The estimated per share value does not represent the: (i) the amount at which our shares would trade at a national securities exchange, (ii) the amount a stockholder would obtain if he or she tried to sell his or her shares or (iii) the amount stockholders would receive if we liquidated our assets and distributed the proceeds after paying all of our expenses and liabilities. Accordingly, with respect to the estimated value per share, we can give no assurance that: • • • • a stockholder would be able to resell his or her shares at this estimated value; a stockholder would ultimately realize distributions per share equal to our estimated value per share upon liquidation of our assets and settlement of our liabilities or a sale of the Company; our shares would trade at a price equal to or greater than the estimated value per share if we listed them on a national securities exchange; or the methodology used to estimate our value per share would be acceptable to FINRA or that the estimated value per share will satisfy the applicable annual valuation requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Internal Revenue Code of 1986, as amended (the “Code”) with respect to employee benefit plans subject to ERISA and other retirement plans or accounts subject to Section 4975 of the Code. There is no assurance that we will be able to continue paying cash distributions or that distributions will increase over time. We pay regular monthly cash distributions to our stockholders. However, there are many factors that can affect the availability and timing of cash distributions such as our ability to earn positive yields on our real estate assets, the yields on securities of other entities in which we invest, our operating expense levels, as well as many other variables. Our long-term portfolio strategy may also affect our ability to pay our cash distributions if we are not able to reinvest the capital we receive from our properties dispositions, in a reasonable amount of time, into assets that generate cash flow yields similar to or greater than the properties sold. There is no assurance that we will be able to continue paying distributions at the current level or that the amount of distributions will increase, or not decrease, over time. Even if we are able to continue paying distributions, the actual amount and timing of distributions is determined by our board of directors in its discretion and typically depends on the amount of funds available for distribution, which depends on items such as current and projected cash requirements and tax considerations. As a result, our distribution rate and payment frequency may vary from time to time. Funding distributions from sources other than cash flow from operating activities may negatively impact our ability to sustain or pay future distributions and results in us having less cash available for other uses, such as property purchases. If our cash flow from operating activities is not sufficient to fully fund the payment of distributions, the level of our distributions may not be sustainable and some or all of our distributions will be paid from other sources. For the year ended December 31, 2013, distributions were paid from cash flow from operations, distributions from unconsolidated entities, and gain on sales of properties. We also may use cash from financing activities, components of which may include borrowings (including borrowings secured by our assets) and have used proceeds from the sales of our properties, to fund distributions. To the extent distributions are paid from these sources or gains on sales of assets, we will have less money available for other uses, such as cash needed to refinance existing indebtedness or for the purchase of new assets. Risks Related to Our Organization and Structure Stockholders have limited control over changes in our policies and operations. Our board of directors determines our major policies, including our investment policies and strategies, and policies regarding financing, debt and equity capitalization, REIT qualification and distributions. Our board of directors may amend or revise certain of these and other policies without a vote of the stockholders. Stockholders' interest in us will be diluted if we issue additional shares. Stockholders do not have preemptive rights to any shares issued by us in the future. Our articles authorize us to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company has authority to issue. Future issuances of common stock, including issuances through our distribution reinvestment plan (“DRP”), reduce the percentage of our shares owned by our current stockholders who do not participate in future stock issuances. Stockholders are not entitled to vote on whether or not we issue additional shares. In addition, depending on the terms and pricing of an additional offering of our shares and the value of our properties, our stockholders may experience dilution in the 24 value of their shares. Further, our board could issue stock on terms and conditions that subordinate the rights of the holders of our current common stock or have the effect of delaying, deferring or preventing a change in control in us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all of our assets) that might provide a premium price for our stockholders. Stockholders' returns may be reduced if we are required to register as an investment company under the Investment Company Act. We are not registered, and do not intend to register our company or any of our subsidiaries, as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). If we or any of our subsidiaries become obligated to register as an investment company, the registered entity would have to comply with regulation under the Investment Company Act with respect to capital structure (including the registered entity's ability to use borrowings), management, operations, transactions with affiliated persons (as defined in the Investment Company Act) and portfolio composition, including disclosure requirements and restrictions with respect to diversification and industry concentration, and other matters. Compliance with the Investment Company Act would limit our ability to make certain investments and require us to significantly restructure our operations and business plan. The costs we would incur and the limitations that would be imposed on us as a result of such compliance and restructuring would negatively affect the value of our common stock, our ability to make distributions and the sustainability of our business and investment strategies. We believe that neither we nor any subsidiaries we own fall within the definition of an investment company under Section 3(a) (1) of the Investment Company Act because we primarily engage in the business of investing in real property, through our wholly or majority owned subsidiaries, each of which has at least 60% of their assets in real property. The company conducts its operations, directly and through wholly or majority-owned subsidiaries, so that none of the company and its subsidiaries is registered or will be required to register as an investment company under the Investment Company Act. Section 3(a)(1) of the Investment Company Act, in relevant part, defines an investment company as (i) any issuer that is, or holds itself out as being, engaged primarily in the business of investing, reinvesting or trading in securities., or (ii) any issuer that is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and owns, or proposes to acquire, “investment securities” having a value exceeding 40% of the value of its total assets (exclusive of government securities and cash items) on an unconsolidated basis, which we refer to as the “40% test.” The term “investment securities” generally includes all securities except government securities and securities of majority-owned subsidiaries that are not themselves investment companies and are not relying on the exemption from the definition of investment company under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act. We and our subsidiaries are primarily engaged in the business of investing in real property and, as such, fall outside of the definition of an investment company under Section 3(a) (1)(A) of the Investment Company Act. We also conduct our operations and the operations of our subsidiaries so that each complies with the 40% test. Accordingly, we believe that neither we nor any of our wholly and majority-owned subsidiaries are considered investment companies under either Section 3(a)(1)(A) or Section 3(a)(1)(C) of the Investment Company Act. If we or any of our wholly or majority-owned subsidiaries would ever inadvertently fall within one of the definitions of “investment company,” we intend to rely on the exemption provided by Section 3(c)(5)(C) of the Investment Company Act. To rely upon Section 3(c)(5)(C) of the Investment Company Act as it has been interpreted by the SEC staff, an entity would have to invest at least 55% of its total assets in “mortgage and other liens on and interests in real estate,” which we refer to as “qualifying real estate investments” and maintain an additional 25% of its total assets in qualifying real estate investments or other real estate-related assets. The remaining 20% of the entity's assets can consist of miscellaneous assets. These criteria may limit what we buy, sell and hold. We classify our assets for purposes of Section 3(c)(5)(C) based in large measure upon no-action letters issued by the SEC staff and other interpretive guidance provided by the SEC and its staff. The no-action positions are based on factual situations that may be substantially different from the factual situations we may face, and a number of these no-action positions were issued more than twenty years ago. Pursuant to this guidance, and depending on the characteristics of the specific investments, certain mortgage-backed securities, other mortgage-related instruments, joint venture investments and the equity securities of other entities may not constitute qualifying real estate assets, and therefore, we may limit our investments in these types of assets. The SEC or its staff may not concur with the way we classify our assets. Future revisions to the Investment Company Act or further guidance from the SEC or its staff may cause us to no longer be in compliance with the exemption from the definition of an “investment company” provided by Section 3(c)(5)(C) and may force us to re-evaluate our portfolio and our investment strategy. To the extent that the SEC or its staff provides more specific or different guidance, we may be required to adjust our strategy accordingly. Any additional guidance from the SEC or its staff could provide additional flexibility to us, or it could further inhibit our ability to pursue the strategies we have chosen. 25 A change in the value of any of our assets could cause us to fall within the definition of “investment company” and negatively affect our ability to be free from registration and regulation under the Investment Company Act. To avoid being required to register the company or any of its subsidiaries as an investment company under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. Sales may be required during adverse market conditions, and we could be forced to accept a price below that which we would otherwise consider acceptable. In addition, we may have to acquire additional income or loss generating assets that we might not otherwise have acquired or may have to forgo opportunities to acquire interests in companies that we would otherwise want to acquire and would be important to our investment strategy. Any such selling, acquiring or holding of assets driven by Investment Company Act considerations could negatively affect the value of our common stock, our ability to make distributions and the sustainability of our business and investment strategies. If we or our subsidiaries were required to register as an investment company but failed to do so, we or the applicable subsidiary would be prohibited from engaging in our or its business, and criminal and civil actions could be brought against us or the applicable subsidiary. In addition, our contracts would be unenforceable unless a court required enforcement, and a court could appoint a receiver to take control of us and liquidate our business. Our rights, and the rights of our stockholders, to recover claims against our officers and directors are limited by Maryland law. Maryland law provides that a director or officer has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in our best interest and with the care that an ordinary prudent person in a like position would use under similar circumstances. Our charter and bylaws require us to indemnify our directors and officers to the maximum extent permitted by Maryland law for any claim or liability to which they may become subject or which they may incur by reason of their service as directors or officers. Maryland law generally permits a corporation to indemnify its directors and officers for losses, liabilities and expenses unless it is established that: (i) the act or omission of the director or officer was material to the matter giving rise to the proceeding and was either committed in bad faith or was the result of active and deliberate dishonesty; (ii) the director or officer actually received an improper personal benefit in money, property or services; or (iii) in the case of a criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. As a result, we and our stockholders may have more limited rights against our directors and officers than might otherwise exist under common law, which could reduce our and our stockholders’ recovery from these persons if they act in a negligent or grossly negligent manner. In addition, we may be obligated to fund the defense costs incurred by our officers and directors in some cases. Our articles place limits on the amount of common stock that any person may own without the prior approval of our board of directors. To qualify as a REIT, no more than 50% of the outstanding shares of our common stock may be beneficially owned, directly or indirectly, by five or fewer individuals at any time during the last half of each taxable year. Our articles prohibit any persons or groups from owning more than 9.8% of our common stock without the prior approval of our board of directors. These provisions may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets that might involve a premium price for holders of our common stock. Further, any person or group attempting to purchase shares exceeding these limits could be compelled to sell the additional shares and, as a result, to forfeit the benefits of owning the additional shares. Our articles permit our board of directors to issue preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us. Our board of directors is permitted to issue preferred stock without stockholder approval. Further, our board may classify or reclassify any unissued preferred stock and establish the preferences, conversions or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of any preferred stock. Thus, our board of directors could authorize us to issue shares of preferred stock with terms and conditions that could subordinate the rights of the holders of our common stock or have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets, that might provide a premium price for holders of our common stock. Maryland law prohibits certain business combinations, which may make it more difficult for us to be acquired. Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the holder becomes an “interested 26 stockholder.” These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An “interested stockholder” is defined as: • • any person who beneficially owns 10% or more of the voting power of the then outstanding voting stock of the corporation; or an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation. A person is not an interested stockholder under the statute if the board of directors approved, in advance, the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may condition its approval on compliance, at or after the time of approval, with any terms and conditions determined by the board. After the expiration of the five-year period described above, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least: • • 80% of the votes entitled to be cast by holders of the then outstanding shares of voting stock of the corporation; and two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. These super-majority voting requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. Maryland law also permits various exemptions from these provisions, including business combinations that are exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer. Maryland law limits, in some cases, the ability of a third party to vote shares acquired in a “control share acquisition.” Under the Maryland Control Share Acquisition Act, persons or entities owning “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights with respect to those shares except to the extent approved by a vote of two-thirds of the corporation's disinterested stockholders. Shares of stock owned by the acquirer or by officers or directors who are employees of the corporation, are not considered disinterested for these purposes. “Control shares” are shares of stock that, taken together with all other shares of stock the acquirer previously acquired, would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: • • • one-tenth or more but less than one-third of all voting power; one-third or more but less than a majority of all voting power; or a majority or more of all voting power. Control shares do not include shares of stock the acquiring person is entitled to vote as a result of having previously obtained stockholder approval. A “control share acquisition” means the acquisition of control shares, subject to certain exceptions. The Control Share Acquisition Act does not apply to (1) shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (2) acquisitions approved or exempted by our articles or bylaws. Federal Income Tax Risks If we fail to qualify as a REIT, we will have less cash to distribute to our stockholders. Our qualification as a REIT depends on our ability to meet requirements regarding our organization and ownership, distributions of our income, the nature and diversification of our income and assets as well as other tests imposed by the Code. We cannot assure you that our actual operations for any one taxable year will satisfy these requirements. Further, new legislation, regulations, administrative interpretations or court decisions could significantly affect our ability to qualify as a REIT and/or the federal income tax consequences of our qualification as a REIT. If we were to fail to qualify as a REIT and did not qualify for certain statutory relief provisions: 27 • we would not be allowed to deduct distributions paid to stockholders when computing our taxable income; • we would be subject to federal, state and local income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates; • we would be disqualified from being taxed as a REIT for the four taxable years following the year during which we failed to qualify, unless we qualify for certain statutory relief provisions; • we would have less cash to pay distributions to stockholders; and • we may be required to borrow additional funds or sell some of our assets in order to pay the corporate tax obligations we may incur as a result of being disqualified. In addition, if we were to fail to qualify as a REIT, all distributions to stockholders that we did pay would be subject to tax as regular corporate dividends to the extent of our current and accumulated earnings and profits. This means that our U.S. stockholders who are taxed at individual rates would be taxed on our dividends at long-term capital gains rates of up to 20% and that our corporate stockholders generally would be entitled to the dividends received deduction with respect to such dividends, subject, in each case, to applicable limitations under the Code. We are seeking closing agreements with the Internal Revenue Service (the “IRS”) granting us relief for potential failures to satisfy certain REIT qualification requirements, and we may have to pay a significant penalty even if the IRS grants our requests. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders (the “90% Distribution Test”). We have identified certain distribution and stockholder reimbursement practices that may have caused certain dividends paid by the consolidated Inland American REIT and MB REIT (Florida), Inc. (“MB REIT”) to be treated as preferential dividends, which cannot be used to satisfy the 90% Distribution Requirement. We have also identified the ownership of certain assets by the Inland American REIT and MB REIT that may have violated a REIT qualification requirement that prohibits a REIT from owning "securities" of any one issuer in excess of 5% of the REIT's total assets at the end of any calendar quarter (the "5% Securities Test"). In order to provide greater certainty with respect to the qualification of the Inland American REIT and MB REIT as REITs for federal income tax purposes, management concluded that it was in our best interest and the best interest of our stockholders to request closing agreements from the IRS for both the Inland American REIT and MB REIT with respect to such matters. Accordingly, on October 31, 2012, MB REIT filed a request for a closing agreement with the IRS. Additionally, we filed a separate request for a closing agreement on behalf of the Inland American REIT on March 7, 2013. We identified certain aspects of the calculation of certain dividends on MB REIT's preferred stock and also aspects of the operation of certain "set aside" provisions with respect to accrued but unpaid dividends on certain classes of MB REIT's preferred stock that may have caused certain dividends to be treated as preferential dividends. In the case of the Inland American REIT, management identified certain aspects of the operation of the dividend reinvestment plan and distribution procedures and also certain reimbursements of stockholder expenses that may have caused certain dividends to be treated as preferential dividends. If these practices resulted in preferential dividends, the Inland American REIT and MB REIT would not have satisfied the 90% Distribution Requirement and thus may not have qualified as REITs, which would result in substantial corporate tax liability for the years in which the Inland American REIT or MB REIT failed to qualify as REITs. In addition, the Inland American REIT and MB REIT made certain overnight investments in bank commercial paper. While the Code does not provide a specific definition of “cash item”, we believe that overnight commercial paper should be treated as a “cash item”, which is not treated as a “security” for purposes of the 5% Securities Test. If treated as a "security", the bank commercial paper would appear to have represented more than 5% of the respective REIT's total assets at the end of certain calendar quarters. In the event this commercial paper is treated as a "security", we anticipate that we would be required to pay corporate income tax on the income earned with respect to the portion of the commercial paper that violated the 5% Securities Test. We can provide no assurance that the IRS will accept the Inland American REIT's or MB REIT's closing agreement requests. Our former business manager has agreed to pay any penalty the IRS requires as a condition of granting the closing agreements. To maintain REIT status, we may be forced to borrow funds or dispose of assets during unfavorable market conditions to make distributions to our stockholders, which could increase our operating costs and decrease the value of an investment in our company. To qualify as a REIT, we must comply with the 90% Distribution Test each year. At times, we may not have sufficient funds to satisfy the 90% Distribution Test and may need to borrow funds or dispose of assets to make these required distributions and maintain our REIT status and avoid the payment of income and excise taxes. Our inability to satisfy the the 90% Distribution 28 Test with operating cash flow could result from (1) differences in timing between the actual receipt of cash and inclusion of income for federal income tax purposes; (2) the effect of non-deductible capital expenditures; (3) the creation of reserves; or (4) required debt amortization payments. We may need to borrow funds at times when market conditions are unfavorable. Further, if we are unable to borrow funds when needed for this purpose, we would have to find alternative sources of funding or risk losing our status as a REIT. Even if we qualify as a REIT, we may face other tax liabilities that reduce our cash flows. Even if we qualify for taxation as a REIT, we may be subject to certain federal, state and local taxes on our income and assets. For example: • We will be subject to tax on any undistributed income. We will be subject to a 4% nondeductible excise tax on the • amount, if any, by which distributions we pay in any calendar year plus amounts retained for which federal income tax was paid are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. If we have net income from the sale of foreclosure property that we hold primarily for sale to customers in the ordinary course of business or other non-qualifying income from foreclosure property, we must pay a tax on that income at the highest corporate income tax rate. If we sell a property, other than foreclosure property, that we hold primarily for sale to customers in the ordinary course of business, our gain would be subject to the 100% “prohibited transactions” tax. • Our taxable REIT subsidiaries are subject to regular corporate federal, state and local taxes. • We will be subject to a 100% penalty tax on transactions with a taxable REIT subsidiary that are not conducted on an • arm's-length basis. Any of these taxes would decrease cash available for distributions to our stockholders. The prohibited transactions tax may limit our ability to dispose of our properties , and we could incur a material tax liability if the IRS successfully asserts that the 100% prohibited transaction tax applies to some or all of our past or future dispositions. A REIT's net income from prohibited transactions is subject to a 100% tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. We may be subject to the prohibited transactions tax equal to 100% of net gain upon a disposition of a property. As part of our plan to refine our portfolio, we have selectively disposed of certain of our properties in the past and intend to make additional dispositions in the future. Although a safe harbor to the characterization of the sale of property by a REIT as a prohibited transaction is available, not all of our past dispositions have qualified for that safe harbor and some or all of our future dispositions may not qualify for that safe harbor. We believe that our past dispositions will not be treated as prohibited transactions, and we intend to avoid disposing of property that may be characterized as held primarily for sale to customers in the ordinary course of business. To avoid the prohibited transaction tax, we may choose not to engage in certain sales of our properties or may conduct such sales through a taxable REIT subsidiary, which would be subject to federal, state and local income taxation. Moreover, no assurance can be provided that the IRS will not assert that some or all of our past or future dispositions are subject to the 100% prohibited transactions tax. If the IRS successfully imposes the 100% prohibited transactions tax on some or all of our dispositions, the resulting tax liability could be material. We may fail to qualify as a REIT if the IRS successfully challenges the valuation of our common stock used for purposes of our DRP. In order to satisfy the 90% Distribution Requirement, the dividends we pay must not be “preferential.” A dividend determined to be preferential will not qualify for the dividends paid deduction. To avoid paying preferential dividends, we must treat every stockholder of a class of stock with respect to which we make a distribution the same as every other stockholder of that class, and we must not treat any class of stock other than according to its dividend rights as a class. For example, if certain stockholders receive a distribution that is more or less than the distributions received by other stockholders of the same class, the distribution will be preferential. If any part of a distribution is preferential, none of that distribution will be applied towards satisfying the 90% Distribution Requirement. Stockholders participating in our DRP receive distributions in the form of shares of our common stock rather than in cash. Currently, the purchase price per share under our DRP is equal to 100% of the “market price” of a share of our common stock. Because our common stock is not yet listed for trading, for these purposes, “market price” means the fair market value of a share of our common stock, as estimated by us. In the past, our DRP has offered participants the opportunity to acquire newly- 29 issued shares of our common stock at a discount to the “market price.” Pursuant to an IRS ruling, the prohibition on preferential dividends does not prohibit a REIT from offering shares under a distribution reinvestment plan at discounts of up to 5% of fair market value, but a discount in excess of 5% of the fair market value of the shares would be considered a preferential dividend. Any discount we have offered in the past was intended to fall within the safe harbor for such discounts set forth in the ruling published by the IRS. However, the fair market value of our common stock has not been susceptible to a definitive determination. If the purchase price under our DRP is deemed to have been at more than a 5% discount at any time, we would be treated as having paid one or more preferential dividends. Similarly, we would be treated as having paid one or more preferential dividends if the IRS successfully asserted that the value of the common stock distributions paid to stockholders participating in our DRP exceeded on a per-share basis the cash distribution paid to our other stockholders, which could occur if the IRS successfully asserted that the fair market value of our common stock exceeded the “market value” used for purposes of calculating the distributions under our DRP. If we are determined to have paid preferential dividends as a result of our DRP, we would likely fail to qualify as a REIT. Complying with the REIT requirements may force us to liquidate otherwise attractive investments. To maintain qualification as a REIT, we must ensure that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified real estate assets, including shares of stock in other REITs, certain mortgage loans and mortgage-backed securities. The remainder of our investment in securities (other than governmental securities, qualified real estate assets and securities of taxable REIT subsidiaries) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets (other than government securities, qualified real estate assets and securities of taxable REIT subsidiaries) can consist of the securities of any one issuer, and no more than 25% of the value of our total securities can be represented by securities of one or more taxable REIT subsidiaries. If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within thirty days after the end of the calendar quarter to avoid losing our REIT status and suffering adverse tax consequences. As a result, we may be required to liquidate otherwise attractive investments in order to maintain our REIT status. If our leases are not respected as true leases for federal income tax purposes, we would fail to qualify as a REIT. To qualify as a REIT, we must satisfy two gross income tests, pursuant to which specified percentages of our gross income must be passive income such as rent. For the rent we receive under our lease to be treated as qualifying income for purposes of the gross income tests, the leases must be respected as true leases for federal income tax purposes and must not be treated as service contracts, joint ventures or some other type of arrangement. There are no controlling Treasury regulations, published rulings or judicial decisions involving leases with terms substantially the same as our hotel leases that discuss whether such leases constitute true leases for federal income tax purposes. We believe that all of our leases, including our hotel leases, will be respected as true leases for federal income tax purposes. There can be no assurance, however, that the IRS will agree with this characterization. If a significant portion of our leases were not respected as true leases for federal income tax purposes, we would not be able to satisfy either of the two gross income tests and each would likely lose its REIT status. If MB REIT failed to qualify as a REIT, we would likely fail to qualify as a REIT. We own 100% of the common stock of MB REIT, which owns a significant portion of our properties and has elected to be taxed as a REIT for federal income tax purposes. MB REIT is subject to the various REIT qualification requirements and other limitations that apply to us. We believe that MB REIT has operated and will continue to operate in a manner to permit it to qualify for taxation as a REIT for federal income tax purposes. However, if MB REIT were to fail to qualify as a REIT, then (1) MB REIT would become subject to regular corporation income tax and (2) our ownership of shares MB REIT would cease to be a qualifying real estate asset for purposes of the 75% asset test applicable to REITs and would become subject to the 5% asset test, the 10% vote test, and the 10% value test generally applicable to our ownership in corporations other than REITs, qualified REIT subsidiaries and taxable REIT subsidiaries. If MB REIT were to fail to qualify as a REIT, we would not satisfy the 5% asset test, the 10% value test, or the 10% vote test, in which event we would fail to qualify as a REIT unless we qualified for certain statutory relief provisions. If our hotel managers do not qualify as “eligible independent contractors,” we would fail to qualify as a REIT. Rent paid by a lessee that is a “related party tenant” of ours will not be qualifying income for purposes of the two gross income tests applicable to REITs. We lease our hotels to certain of our taxable REIT subsidiaries. A taxable REIT subsidiary will not be treated as a “related party tenant,” and will not be treated as directly operating a lodging facility, which is prohibited, to the extent that hotels that our taxable REIT subsidiaries lease are managed by an “eligible independent contractor.” 30 We believe that the rent paid by our taxable REIT subsidiaries that lease our hotels is qualifying income for purposes of the REIT gross income tests and that our taxable REIT subsidiaries qualify to be treated as “taxable REIT subsidiaries” for federal income tax purposes, but there can be no assurance that the IRS will not challenge this treatment or that a court would not sustain such a challenge. If the IRS successfully challenged this treatment, we would likely fail to satisfy the asset tests applicable to REITs and a significant portion of our income would fail to qualify for the gross income tests. If we failed to satisfy either the asset or gross income tests, we would likely lose our REIT qualification for federal income tax purposes, unless we qualified for certain statutory relief provisions. If our hotel managers do not qualify as “eligible independent contractors,” we may fail to qualify as a REIT. Each of the hotel management companies that enters into a management contract with our taxable REIT subsidiaries that lease our hotels must qualify as an “eligible independent contractor” under the REIT rules in order for the rent paid to us by taxable REIT subsidiaries to be qualifying income for gross income tests. Among other requirements, in order to qualify as an eligible independent contractor, (1) a manager must be actively engaged in the trade or business of operating hotels for third parties at the time the manger enters into a management contract with a taxable REIT subsidiary lessee and (2) the manager must not own more than 35% of our outstanding shares (by value) and no person or group of persons can own more than 35% of our outstanding shares and the ownership interests of the manager. Although we believe that all of our hotel managers qualify as eligible independent contractors, no complete assurance can be provided that the IRS will not successfully challenge that position. Complying with REIT requirements may limit our ability to hedge effectively. The REIT provisions of the Code may limit our ability to hedge the risks inherent to our operations. Under current law, any income that we generate from derivatives or other transactions intended to hedge our interest rate risk with respect to borrowings made to acquire or carry real estate assets generally will not constitute gross income for purposes of the two gross income tests applicable to REITs, so long as we clearly identify any such transactions as hedges for tax purposes before the close of the day on which they are acquired or entered into and we satisfy other identification requirements. In addition, any income from other hedging transactions would generally not constitute gross income for purposes of both the gross income tests. Accordingly, we may have to limit the use of hedging techniques that might otherwise be advantageous, which could result in greater risks associated with interest rate or other changes than we would otherwise incur. Legislative or regulatory action could adversely affect you. Changes to the tax laws are likely to occur, and these changes may adversely affect the taxation of our stockholders. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets. Future legislation might result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be taxed, for federal income tax purposes, as a corporation. As a result, our charter provides our board of directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a corporation, without the vote of our stockholders. Our board of directors has fiduciary duties to us and our stockholders and could only cause changes in our tax treatment if it determines in good faith that such changes are in the best interest of our stockholders. You are urged to consult with your own tax advisor with respect to the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our stock. The taxation of dividends may adversely affect the value of our stock. The maximum tax rate applicable to “qualified dividend income” payable to U.S. stockholders that are taxed at individual rates is 20%. Dividends payable by REITs, however, are generally not eligible for the reduced rates on qualified dividend income. The more favorable rates applicable to regular corporate qualified dividends could cause investors who are taxed at individual rates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our stock. Item 1B. Unresolved Staff Comments None. 31 Item 2. Properties We own interests in retail, lodging, student housing, and non-core properties. As of December 31, 2013, we, directly or indirectly, including through joint ventures in which we have a controlling interest, owned an interest in 178 properties, excluding our lodging and development properties, located in 31 states and the District of Columbia. In addition, we, through our wholly-owned subsidiaries, Inland American Winston Hotels, Inc., Inland American Orchard Hotels, Inc., Inland American Urban Hotels, Inc., and Inland American Lodging Corporation, own 99 lodging properties in 26 states and the District of Columbia. (Dollar amounts stated in thousands, except for revenue per available room, average daily rate and average rent per square foot). Not included in the property count of 178 properties are 224 properties that are held for sale as of December 31, 2013. These 224 properties are expected to be sold in 2014. In accordance with GAAP, we classify properties as held for sale when certain criteria are met. On the day that the criteria are met, we suspend depreciation on the properties held for sale, including depreciation for tenant improvements and additions, as well as the amortization of acquired in-place leases. Although we still hold these properties as of December 31, 2013, the assets and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. At December 31, 2013, these assets were recorded at their carrying value. Furthermore, the operations for the periods presented are classified on the consolidated statements of operations and other comprehensive income as discontinued operations for all periods presented. General The following table sets forth information regarding the ten largest individual tenants in descending order based on annualized rent paid in 2013 but excluding our lodging and student housing properties. Annualized rent is computed as revenue for the last month of the period multiplied by twelve months. Average rent per square foot is computed as annualized rent divided by the total occupied square footage at the end of the period. Annualized rent includes the effect of rent abatements, lease inducements and straight-line rent GAAP adjustments. Physical occupancy is defined as the percentage of total gross leasable area actually used or occupied by a tenant. Economic occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement, regardless of the actual use or occupation by that tenant of the area being leased. Type Tenant Name AT&T Non-core The Geo Group, Inc. Non-core Ross Dress for Less Lockheed Martin Best Buy Imagine Publix Tom Thumb Bed Bath & Beyond Petsmart Totals Retail Non-core Retail Non-core Retail Retail Retail Retail Total Annualized Rental Income 2013 ($) $28,087 9,850 8,407 8,007 7,790 7,687 6,011 5,875 4,883 4,772 $91,369 Percent of Total Annualized Income 9.40% 3.30% 2.81% 2.68% 2.61% 2.57% 2.01% 1.97% 1.63% 1.60% Gross Leasable Area 1,943,177 301,029 823,616 347,233 551,785 364,710 664,287 626,533 464,970 371,615 6,458,955 Percentage of Gross Leasable Area 8.99% 1.39% 3.81% 1.61% 2.55% 1.69% 3.07% 2.90% 2.15% 1.72% The following sections set forth certain summary information about the character of the properties that we owned at December 31, 2013. Certain of the Company’s properties, both continuing and those classified as held for sale, are encumbered by mortgages, totaling $4,731,709. Additional detail about the properties can be found on Schedule III – Real Estate and Accumulated Depreciation. 32 Retail Segment As of December 31, 2013, our retail segment consisted of 119 properties, with an average of approximately 143,000 square feet of total space, located in stable communities, primarily in the eastern regions of the country. Our retail tenants are largely necessity-based retailers such as grocery and pharmacy. We own the following types of retail centers: • Community or neighborhood centers which are generally open air and designed for tenants that offer a larger array of apparel and other soft goods. Typically, community centers contain anchor stores and other national retail tenants. Our neighborhood shopping centers are generally in-line strip centers with a grocery store anchor, a drugstore, and other small retailers. Tenants of these centers typically offer necessity-based products. • Power centers consist of several anchors, such as department stores, off-price stores, warehouse clubs or stores that offer a large selection of merchandise. Typically, the number of specialty tenants is limited. We have not experienced bankruptcies or receivable write-offs in our retail portfolio that have materially impacted our result of operations. Our retail business is not highly dependent on specific retailers or specific retail industries, which we believe shields the portfolio from significant revenue variances over time. The following table reflects the types of properties within our retail segment as of December 31, 2013. Retail Properties Community & Neighborhood Center Power Center Number of Properties Total Gross Leasable Area (GLA) (Sq. Ft.) Percentage of Economic Occupancy as of December 31, 2013 Total Number of Financially Active Leases as of December 31, 2013 Total Annualized Rent ($) Average Rent PSF ($) 70 49 119 6,433,110 10,598,387 17,031,497 90% 91% 91% 981 1,036 2,017 $82,359 126,904 $209,263 $14.29 13.14 $13.57 The following table represents lease expirations for the retail segment: Lease Expiration Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Number of Expiring Leases 279 334 315 353 287 156 57 48 44 47 91 2,011 GLA of Expiring Leases (Sq. Ft.) 1,195,197 2,215,575 1,837,929 1,827,469 1,853,358 1,977,913 795,303 510,207 802,338 701,950 1,694,491 15,411,730 Annualized Rent of Expiring Leases ($) $16,975 27,678 26,206 31,418 27,701 24,954 11,096 6,794 9,975 9,706 18,388 $210,890 Percent of Total GLA 7.8% 14.4% 11.9% 11.8% 12.0% 12.8% 5.2% 3.3% 5.2% 4.6% 11.0% 100% Percent of Total Annualized Rent 8.0% 13.1% 12.4% 14.9% 13.2% 11.8% 5.4% 3.2% 4.7% 4.6% 8.7% 100% Expiring Rent/Square Foot ($) $14.20 12.49 14.26 17.19 14.95 12.62 13.95 13.32 12.43 13.83 10.85 $13.68 We believe the percentage of leases expiring over the next five years of 12%, is a manageable percentage of lease rollover. We believe that we have staggered our lease expirations so that we can manage lease rollover. 33 The following table represents lease spread metrics for leases that commenced in 2013 compared to expiring leases for the prior tenant in the same unit: Number of Leases Commenced 2013 GLA SF New Contractual Rent per Square Foot ($PSF) (a) Prior Contractual Rent ($PSF) (a) % Change over Prior Contract Rent (a) Weighted Average Lease Term (b) Tenant Improvement Allowance ($PSF) Lease Commissions ($PSF) 249 1,200,378 $15.72 $15.27 3.0% 40 282,739 13.96 12.54 11.3% Comparable Renewal Leases (c) Comparable New Leases (c) Non- Comparable Renewal and New Leases 4.34 4.64 4.86 4.50 $0.35 $0.05 5.89 2.45 11.34 $3.58 3.60 $1.18 87 415,211 12.03 — Total 376 1,898,328 $15.38 $14.75 —% 4.3% (a) Non-comparables are not included in totals. (b) Month-to-month leases do not have expiration date and are not included in weighted avg lease term. (c) Comparable lease is defined as a lease that meets all of the following criteria: same unit, leased within one year of prior tenant, square footage of unit stayed the same or within 10% of prior unit square footage. In 2013, we executed 121 new leases and 255 renewals for 1.9 million square feet of GLA, of which 40 and 249 were comparable, respectively. For our comparable new leases, contractual base rent increased 11.3% from prior contractual base rent, going from $12.54 to $13.96 per square foot. The weighted average term is 4.64 years, with tenant improvement allowances at $5.89 per square foot and lease commissions at $2.45 per square foot. Similarly, our comparable renewed leases saw rent growth of 2.91%, increasing from $15.27 to $15.72 per square foot. The weighted average term is 4.34 years, with tenant improvement allowances at $0.35 per square foot and lease commissions at $0.05 per square foot. We also had 87 non- comparable leases commence in 2013 with contractual base rents starting at $12.03 per square foot and a weighted average term of 4.86 years. Tenant improvement allowances and lease commissions were $11.34 and $3.60 per square foot, respectively. Tenant improvements allowances were primarily given for our new leases. The largest four leases represent 29% of the total given. Lease commissions were also primarily paid to our brokers for our new deals. The largest two commissions comprised 16% of the total paid. As of December 31, 2012, we had 364 leases set to expire in 2013 of which the gross leaseable area of those leases was 1.5 million square feet. We are encouraged by our 2013 lease activity having achieved a comparable new and renewal rate of approximately 80% by number of leases. Lodging Segment Lodging facilities have characteristics different from those found in retail, student housing, and non-core properties. Revenue, operating expenses, and net income of lodging properties are directly tied to the daily hotel sales operation whereas these other asset classes generate revenue from medium to long-term lease contracts. Lodging facilities have the benefit of capturing increased revenue opportunities on a daily or weekly basis but are also subject to immediate decreases in lodging revenue as a result of declines in daily rental rates or daily occupancy when demand is reduced. Due to seasonality, we expect our lodging revenues to be greater during the second and third quarters with lower revenues in the first and fourth quarters. We follow two practices common for REITs that own lodging properties: 1) association with national franchise organizations and 2) management of the properties by third-party hotel managers. We have aligned our portfolio with what we believe are the top franchise enterprises in the lodging industry: Marriott, Hilton, Intercontinental, Hyatt, Fairmont, and Starwood Hotels. By entering into franchise agreements with these organizations, we believe our lodging operations benefit from enhanced advertising, marketing, and sales programs through the franchisor (in this case, the organization) while the franchisee (in this case, us) pays only a fraction of the overall cost for these programs. Additionally, by using the franchise system we are also able to benefit from the frequent traveler rewards programs or “point awards” systems of the franchisor which we believe further bolsters occupancy and overall daily rental rates. 34 The majority of our lodging facilities and these franchise enterprises are classified in the “upscale” or “upper-upscale” lodging categories. The classifications are defined by Smith Travel Research, an independent provider of lodging industry statistical data. The classification of a property is based on lodging industry standards, which take into consideration many factors such as guest facilities and amenities, level of service and quality of accommodations. The following table reflects the types of properties within our lodging segment as of December 31, 2013. Lodging Properties Luxury Upper-Upscale Upscale Upper-Midscale Number of Properties 5 27 62 5 99 Number of Rooms 1,281 8,319 9,020 717 19,337 Average Occupancy for the Year ended December 31, 2013 68% 73% 74% 76% 73% Average Revenue Per Available Room for the Year ended December 31, 2013 ($) $126 114 97 100 $105 Average Daily Rate for the Year 2013 ($) $185 156 130 132 $143 Student Housing Segment Our student housing portfolio consists of residential and mixed-use communities located close to university campuses and in urban infill locations. The student housing properties are high-end properties with amenities such as fitness centers, swimming pools, multimedia lounges, and sports courts. Most of the properties are marketed under the "University House" brand. We are increasing the size of our student housing portfolio through acquisitions and developments. In 2013, we acquired three properties and placed one property in service. The properties are leased on a per bed basis and typically are one year leases commencing in the fall season in conjunction with the beginning of the school year. The following table reflects the types of properties within our student-housing segment as of December 31, 2013. Number of Properties 14 Total Beds 8,290 % of Economic Occupancy as of December 31, 2013 92% Total No. of Beds Occupied 7,632 Rent per Bed ($) $724 Student Housing Non-core Segment We are executing our long-term portfolio strategy by focusing on three specific real estate asset classes - retail, lodging, and student housing. The remaining assets outside of these asset classes are grouped together in the non-core segment. Our non- core segment is comprised of office properties, office and retail bank branches, single tenant retail properties, net lease properties and one conventional multi-family property. The following table reflects the types of properties within our non-core segment as of December 31, 2013. Non-core Single tenant retail Office Correctional facility Charter schools Distribution centers Conventional multi- family Number of Properties 10 10 2 8 14 1 45 Total Gross Leasable Area (Sq. Ft.) 317,832 3,551,858 457,345 364,710 2,371,404 194,097 7,257,246 Percentage of Economic Occupancy as of December 31, 2013 91% 85% 100% 100% 87% Total No. of Financially Active Leases as of December 31, 2013 7 20 2 8 25 246 308 97% 88% 35 Sum of Annualized Rent ($) $ $ 3,571 51,099 12,076 7,687 15,124 3,462 93,019 Average Rent PSF / Unit ($) $12.32 16.93 26.40 21.08 7.33 $1,173 The following table represents lease expirations for the non-core segment, exclusive of multi-family lease activity: Lease Expiration Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Number of Expiring Leases 10 9 11 5 8 4 2 2 1 — 10 62 GLA of Expiring Leases (Sq. Ft.) Annualized Rent of Expiring Leases ($) 935,350 217,089 2,315,448 270,775 345,044 676,863 329,909 226,979 20,845 — 854,359 6,192,661 $9,351 2,560 33,732 5,167 7,721 8,370 10,127 3,268 575 — 9,536 $90,408 Percent of Total GLA 15.1% 3.5% 37.4% 4.4% 5.6% 10.9% 5.3% 3.7% 0.3% —% 13.8% 100% Percent of Total Annualized Rent 10.3% 3.0% 37.3% 5.7% 8.5% 9.3% 11.2% 3.6% 0.6% —% 10.5% 100% Expiring Rent/Square Foot ($) $10.00 11.79 14.57 19.08 22.38 12.37 30.70 14.40 27.58 — 11.16 $14.60 We believe the percentage of leases expiring over the next five years, ranging from 3% to 10%, except for 2016, is a manageable percentage of lease rollover. In 2016, the lease expires for a property with approximately 1.7 million square feet, occupied by AT&T in Hoffman Estates, Illinois, which is in the greater metro Chicago market. 36 Item 3. Legal Proceedings As previously disclosed, the SEC is conducting a non-public, formal, fact-finding investigation ("SEC Investigation") to determine whether there have been violations of certain provisions of the federal securities laws regarding our business manager fees, property management fees, transactions with our affiliates, timing and amount of distributions paid to our investors, determination of property impairments, and any decision regarding whether we might become a self-administered REIT. We have not been accused of any wrongdoing by the SEC. We also have been informed by the SEC that the existence of this investigation does not mean that the SEC has concluded that anyone has broken the law or that the SEC has a negative opinion of any person, entity, or security. We have been cooperating fully with the SEC. We cannot reasonably estimate the timing of the investigation, nor can we predict whether or not the investigation might have a material adverse effect on our business. We have also received related demands (“Derivative Demands”) by stockholders to conduct investigations regarding claims that our officers, our board of directors, our former business manager, and affiliates of our former business manager (the “Inland American Parties”) breached their fiduciary duties to us in connection with the matters that we disclosed are subject to the SEC Investigation. The first Derivative Demand claims that the Inland American Parties (i) falsely reported the value of our common stock until September 2010; (ii) caused us to purchase shares of our common stock from stockholders at prices in excess of their value; and (iii) disguised returns of capital paid to stockholders as REIT income, resulting in the payment of fees to our former business manager for which it was not entitled. The three stockholders in that demand contend that legal proceedings should seek recovery of damages in an unspecified amount allegedly sustained by us. The second Derivative Demand by another shareholder makes similar claims and further alleges that the Inland American Parties (i) caused us to engage in transactions that unduly favored related parties, (ii) falsely disclosed the timing and amount of distributions, and (iii) falsely disclosed whether we might become a self-administered REIT. We also received a letter from another stockholder that fully adopts and joins in the first Derivative Demand, but makes no additional demands on us to perform investigation or pursue claims. Upon receiving the first of the Derivative Demands, the full board of directors responded by authorizing the independent directors to investigate the claims contained in the first Derivative Demand, any subsequent stockholder demands, as well as any other matters the independent directors see fit to investigate, including matters related to the SEC Investigation. Pursuant to this authority, the independent directors have formed a special litigation committee that is comprised solely of independent directors to review and evaluate the matters referred by the full Board to the independent directors, and to recommend to the full Board any further action as is appropriate. The special litigation committee is investigating these claims with the assistance of independent legal counsel and will make a recommendation to the Board of Directors after the committee has completed its investigation. On March 21, 2013, counsel for the stockholders who made the first Derivative Demand filed a derivative lawsuit in the Circuit Court of Cook County, Illinois, on behalf of the Company. The case has been stayed pending completion of the special litigation committee's investigation. We cannot reasonably estimate the timing of the special litigation committee investigation or the Derivative Demands, nor can we predict whether or not the special litigation committee investigation or Derivative Demands might have a material adverse effect on our business. On April 26, 2013, two of our stockholders filed a putative class action in the United States District Court for the Northern District of Illinois against the Company, and current members and one former member of our board of directors ("the Defendants"). The complaint sought damages on behalf of plaintiffs and similarly situated individuals who purchased additional shares in the Company pursuant to our Distribution Reinvestment Plan ("DRP") on or after March 30, 2009. Plaintiffs allege that the Defendants breached their fiduciary duties to plaintiffs and to members of the putative class by inflating the yearly estimated share price announced by the Company and by selling shares in the DRP to plaintiffs and members of the putative class at those allegedly inflated prices. On November 18, 2013, the class action complaint was dismissed with prejudice for failing to state a claim that would entitle the plaintiffs to relief. The Court disagreed with the plaintiffs' allegations, noting in its memorandum opinion and order that the Company’s public disclosures fully described the manner in which the board estimated share value for the Company’s stock sold through the DRP. The Court entered judgment in favor of the Defendants. The plaintiffs appealed the judgment. As of February 26, 2014, the parties entered into a settlement agreement whereby the plaintiffs agreed to dismiss their appeal in exchange for a cash settlement from the Company. We believe that the amount of this settlement is not material, and is less than the amount the Defendants would have incurred in defending the appeal. Item 4. Mine Safety Disclosures Not applicable. 37 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our shares of common stock are not listed on a national securities exchange and there is not otherwise an established public trading market for our shares. We publish an estimated per share value of our common stock to assist broker dealers that sold our common stock in our initial and follow-on “best efforts” offerings to comply with the rules published by the Financial Industry Regulatory Authority (“FINRA”). On December 27, 2013, we announced an estimated value of our common stock equal to $6.94 per share. The audit committee of our board of directors (“Audit Committee”) engaged Real Globe Advisors, LLC (“Real Globe”), an independent third-party real estate advisory firm to estimate the per share value of our common stock on a fully diluted basis as of December 31, 2013. Real Globe has extensive experience estimating the fair values of commercial real estate. The report furnished to the Audit Committee by Real Globe complies with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice and is certified by a member of the Appraisal Institute with the MAI designation. The Real Globe report, dated December 17, 2013, reflects values as of December 31, 2013. Real Globe does not have any direct or indirect interests in any transaction with us or in any currently proposed transaction to which we are a party, and there are no conflicts of interest between Real Globe, on one hand, and ourselves, the business manager or any of our directors, on the other. To estimate our per share value, Real Globe utilized the “net asset value” or “NAV” method which is based on the fair value of real estate, real estate related investments and all other assets, less the fair value of our total liabilities. The fair value estimate of our real estate assets is equal to the sum of the fair value estimates for its individual real estate assets. Generally, Real Globe estimated the value of our wholly owned real estate and real estate-related assets, such as joint ventures, using a discounted cash flow or “DCF” of projected net operating income, less capital expenditures, for each property, for the ten-year period ending December 31, 2023, and applying a “market supported” discount rate and capitalization rate. For all other assets including cash, other current assets and marketable securities, fair value was determined separately. Real Globe also estimated the fair value of our long-term debt obligations, including the current liabilities, by comparing current market interest rates to the contract rates on our long-term debt and discounting to present value the difference in future payments. Real Globe determined NAV in a manner consistent with the definition of fair value under U.S. generally accepted accounting principles set forth in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820 Fair Value Measurements and Disclosures. Our business manager analyzed Real Globe’s report, which was based on capitalization and discount rates derived from third quarter 2013 industry published reports. For its analysis, the business manager used fourth quarter 2013 market data, from both third party sources and management’s industry knowledge (including the Company’s recent experience buying and selling real estate assets) to assess current trends and potential values. Based on this analysis, our business manager recommended to our Audit Committee an estimated share value within the Real Globe range, equal to $6.94 per share. On December 19, 2013, the Audit Committee met to review and discuss Real Globe’s report and our business manager’s recommendation. After meeting with each of them, the Audit Committee unanimously adopted a resolution accepting the Real Globe analysis and our business manager’s recommendation. At a full meeting of our board of directors also held on December 19, 2013, the Audit Committee made a recommendation to the board that the Company publish an estimate of share value as of December 31, 2013 equal to $6.94 per share. The board unanimously adopted this recommendation of estimated per share value, which assumes a weighted average exit capitalization rate equal to 7.52% and a discount rate equal to 9.16%. Real Globe considered this reasonable because each fell within the range of values included in its report. As with any methodology used to estimate value, the methodology employed by Real Globe and the recommendations made by our business manager were based upon a number of estimates and assumptions that may not be accurate or complete. Further, different parties using different assumptions and estimates could derive a different estimated value per share, which could be significantly different from our estimated value per share. The estimated per share value does not represent the: (i) the amount at which our shares would trade at a national securities exchange, (ii) the amount a stockholder would obtain if he or she tried to sell his or her shares or (iii) the amount stockholders would receive if we liquidated our assets and distributed the proceeds after paying all of our expenses and liabilities. Accordingly, with respect to the estimated value per share, we can give no assurance that: • a stockholder would be able to resell his or her shares at this estimated value; 38 • • • a stockholder would ultimately realize distributions per share equal to our estimated value per share upon liquidation of our assets and settlement of our liabilities or a sale of the Company; our shares would trade at a price equal to or greater than the estimated value per share if we listed them on a national securities exchange; or the methodology used to estimate our value per share would be acceptable to FINRA or that the estimated value per share will satisfy the applicable annual valuation requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Internal Revenue Code of 1986, as amended (the “Code”) with respect to employee benefit plans subject to ERISA and other retirement plans or accounts subject to Section 4975 of the Code. The estimated value per share was unanimously adopted by our board on December 19, 2013 and reflects the fact that the estimate was calculated at a moment in time. The value of our shares will likely change over time and will be influenced by changes to the value of our individual assets as well as changes and developments in the real estate and capital markets. We currently expect to update our estimated value per share at least every twelve months. Nevertheless, stockholders should not rely on the estimated value per share in making a decision to buy or sell shares of our common stock. Share Repurchase Program Our board of directors adopted a share repurchase program, which became effective August 31, 2005 and was suspended as of March 30, 2009. Our board later adopted an Amended and Restated Share Repurchase Program, which was effective from April 11, 2011 through January 31, 2012. Our board subsequently adopted a Second Amended and Restated Share Repurchase Program (the “Second Amended Program”), which became effective February 1, 2012 and was suspended as of February 28, 2014. The board voted to suspend the Second Amended Program on January 29, 2014. We anticipate reinstating the Share Repurchase Program later in the year. Under the Second Amended Program, we were permitted to repurchase shares of our common stock, on a quarterly basis, from the beneficiary of a stockholder that had died or from stockholders that had a “qualifying disability” or were confined to a “long-term care facility” (together, referred to herein as “hardship repurchases”). We were authorized to repurchase shares at a price per share equal to 100% of the most recently disclosed estimated per share value of our common stock, which was equal to $6.93 per share as of December 19, 2012 and $6.94 per share as of December 27, 2013. Our obligation to repurchase any shares under the Second Amended Program was conditioned upon our having sufficient funds available to complete the repurchase. Our board had initially reserved $10.0 million per calendar quarter for the purpose of funding repurchases associated with death and $15.0 million per calendar quarter for the purpose of funding hardship repurchases. In addition, notwithstanding anything to the contrary, at no time during any consecutive twelve month period may the aggregate number of shares repurchased under the Second Amended Program have exceeded 5.0% of the aggregate number of issued and outstanding shares of our common stock at the beginning of the twelve month period. For any calendar quarter, if the number of shares accepted for repurchase would have caused us to exceed the 5.0% limit, repurchases for death would have taken priority over any hardship repurchases, in each case in accordance with the procedures, and subject to the funding limits, described in the Second Amended Program and summarized herein. If, on the other hand, the funds reserved for either category of repurchase under the Second Amended Program were insufficient to repurchase all of the shares for which repurchase requests have been received for a particular quarter, or if the number of shares accepted for repurchase would have caused us to exceed the 5.0% limit, we would have repurchased the shares in the following order: • • for death repurchases, we would repurchase shares in chronological order, based upon the beneficial owner’s date of death; and for hardship repurchases, we would repurchase shares on a pro rata basis, up to, but not in excess of, the limits described herein; provided, that in the event that the repurchase would result in a stockholder owning less than 150 shares, we would repurchase all of that stockholder’s shares. The table below outlines the shares of common stock we repurchased pursuant to the Second Amended Program during the three months ended December 31, 2013: 39 Total Number of Share Requests (2) Total Number of Shares Repurchased (2) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs As of month ended, October 31, 2013 (3) November 30, 2013 December 31, 2013 (4) 1,077,829 — — 1,731,356 $ — — 6.93 N/A N/A 1,731,356 — — (1) (1) (1) (1) A description of the Second Amended Program, including the date that the program was amended, the dollar amount approved, the expiration date and the maximum number of shares that may be purchased thereunder is included in the narrative preceding this table. (2) Beginning in April 2012, shares were repurchased in the subsequent quarter that share requests were received. (3) There were 1,731.356 share requests outstanding as of the month ended September 30, 2013, which were repurchased in October 2013 at a price of $6.93 per share. (4) All share requests outstanding as of the month ended December 31, 2013 were repurchased in January 2014 at a price of $6.94 per share. Stockholders As of March 11, 2014, we had 184,020 stockholders of record. Distributions We have been paying monthly cash distributions since October 2005. During the years ended December 31, 2013 and 2012, we declared cash distributions, which are paid monthly in arrears to stockholders, totaling $450.1 million and $440.0 million, respectively, in each case equal to $0.50 per share on an annualized basis. During the years ended December 31, 2013 and 2012, we paid cash distributions of $449.3 million and $439.2 million, respectively. For Federal income tax purposes for the years ended December 31, 2013 and 2012, 0% and 87% of the distributions paid constituted a return of capital in the applicable year, respectively. The remaining portion of the distributions paid constituted ordinary income. We intend to continue paying regular monthly cash distributions to our stockholders. However, there are many factors that can affect the amount and timing of cash distributions to stockholders. There is no assurance that we will be able to continue paying distributions at the current level or that the amount of distributions will increase, or not decrease further, over time. Even if we are able to continue paying distributions, the actual amount and timing of distributions is determined by our board of directors in its discretion and typically depends on the amount of funds available for distribution, which depends on items such as current and projected cash requirements and tax considerations. As a result, our distribution rate and payment frequency may vary from time to time. Notification Regarding Payments of Distributions Shareholders should be aware that the method by which a shareholder has chosen to receive his or her distributions affects the timing of the shareholder's receipt of those distributions. Specifically, under our transfer agent's payment processing procedures, distributions are paid in the following manner: (1) those shareholders who have chosen to receive their distributions via ACH wire transfers receive their distributions on the distribution payment date (as determined by our Board of Directors); (2) those shareholders who have chosen to receive their distributions by paper check are typically mailed those checks on the distribution payment date, but sometimes paper checks are mailed on the day following the distribution payment date; and (3) for those shareholders holding shares through a broker or other nominee, the distributions payments are wired, or paper checks are mailed, to the broker or other nominee on the day following the distribution payment date. All shareholders who hold shares directly in record name may change at any time the method through which they receive their distributions from our transfer agent, and those shareholders will not have to pay any fees to us or our transfer agent to make such a change. Also, all shareholders are eligible to participate at no cost in our DRP. Accordingly, each shareholder may select the timing of receipt of distributions from our transfer agent by selecting the method above that corresponds to the desired timing for receipt of the distributions. Because all shareholders may elect to have their distributions sent via ACH wire on the distribution payment date or credited on the distribution payment date to their DRP, we treat all of our shareholders, 40 regardless of the method by which they have chosen to receive their distributions, as having constructively received their distributions from us on the distribution payment date for federal income tax purposes. Shareholders who hold shares directly in record name and who would like to change their distribution payment method should complete a “Change of Distribution Election Form.” Also, shareholders who would like to participate in our DRP should complete the “Change of Distribution Election Form.” The form is available on our website under “Investor Relations-Forms.” We note that the payment method for shareholders who hold shares through a broker or nominee is determined by the broker or nominee. Similarly, the payment method for shareholders who hold shares in a tax-deferred account, such as an IRA, is generally determined by the custodian for the account. Shareholders that currently hold shares through a broker or other nominee and would like to receive distributions via ACH wire or paper check should contact their broker or other nominee regarding their processes for transferring shares to record name ownership. Similarly, shareholders who hold shares in a tax- deferred account may need to hold shares outside of their tax-deferred accounts to change the method through which they receive their distributions. Shareholders who hold shares through a tax-deferred account and who would like to change the method through which they receive their distributions should contact their custodians regarding the transfer process and should consult their tax advisor regarding the consequences of transferring shares outside of a tax-deferred account. Securities Authorized for Issuance under Equity Compensation Plans The following table provides information regarding our equity compensation plans as of December 31, 2013. Equity Compensation Plan Information Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding shares reflected in column) Equity compensation plans approved by security holders: Independent Director Stock Option Plan Equity compensation plans not approved by security holders Total: 29,000 — 29,000 $8.87 — $8.87 46,000 — 46,000 We have adopted an Independent Director Stock Option Plan, as amended, which, subject to certain conditions, provides for the grant to each independent director of an option to purchase 3,000 shares following their becoming a director and for the grant of additional options to purchase 500 shares on the date of each annual stockholder’s meeting. The options for the initial 3,000 shares are exercisable as follows: 1,000 shares on the date of grant and 1,000 shares on each of the first and second anniversaries of the date of grant. All other options are exercisable on the second anniversary of the date of grant. The exercise price for all options is equal to the fair value of our shares, as defined in the plan, on the date of each grant. Recent Sales of Unregistered Securities None. 41 Item 6. Selected Financial Data The following table shows our consolidated selected financial data relating to our consolidated historical financial condition and results of operations. Such selected data should be read in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes appearing elsewhere in this report (dollar amounts are stated in thousands, except per share amounts). 2013 As of and for the year ended December 31, 2011 2012 2010 2009 Balance Sheet Data: Total assets Debt Operating Data: Total income Total interest and dividend income Net income (loss) attributable to Company Net income (loss) per common share, basic and diluted Common Stock Distributions: Distributions declared to common stockholders Distributions per weighted average common share Funds from Operations: Funds from operations (a) Cash Flow Data: Cash flows provided by operating activities Cash flows provided by (used in) investing activities Cash flows provided by (used in) financing activities Other Information: Weighted average number of common shares outstanding, basic and diluted $ $ $ $ $ $ $ $ $ $ $ 9,662,464 4,153,099 $ 10,759,884 6,006,146 $ $ 10,919,190 5,902,712 $ $ 11,391,502 5,532,057 $ $ 11,328,211 5,085,899 $ 1,321,837 19,267 244,048 0.27 450,104 0.50 459,608 422,813 922,624 $ $ $ $ $ $ $ $ $ 1,119,023 $ $ 23,386 (69,338) $ 920,385 $ $ 22,860 (316,253) $ 802,402 $ $ 33,068 (176,431) $ 691,322 55,161 (397,960) (0.08) $ (0.37) $ (0.21) $ (0.49) 440,031 0.50 476,713 456,221 $ $ $ $ 429,599 0.50 443,460 397,949 $ $ $ $ 417,885 0.50 321,828 356,660 $ $ $ $ 405,337 0.51 142,601 369,031 (118,162) $ (286,896) $ (380,685) $ (563,163) $ (1,246,979) $ (335,443) $ (160,597) $ (208,759) $ (250,602) 899,842,722 879,685,949 858,637,707 835,131,057 811,400,035 (a) We consider Funds from Operations, or “FFO” a widely accepted and appropriate measure of performance for a REIT. FFO provides a supplemental measure to compare our performance and operations to other REITs. Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts or NAREIT, an industry trade group, has promulgated a standard known as FFO, which it believes reflects the operating performance of a REIT. As defined by NAREIT, FFO means net income computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus depreciation and amortization and impairment charges on depreciable property and after adjustments for unconsolidated partnerships and joint ventures in which we hold an interest. In calculating FFO, impairment charges of depreciable real estate assets are added back even though the impairment charge may represent a permanent decline in value due to decreased operating performance of the applicable property. Further, because gains and losses from sales of property are excluded from FFO, it is consistent and appropriate that impairments, which are often early recognition of losses on prospective sales of property, also be excluded. If evidence exists that a loss reflected in the investment of an unconsolidated entity is due to the write-down of depreciable real estate assets, these impairment charges are added back to FFO. The methodology is consistent with the concept of excluding impairment charges of depreciable assets or early recognition of losses on sale of depreciable real estate assets held by the Company. FFO is neither intended to be an alternative to “net income” nor to “cash flows from operating activities” as determined by GAAP as a measure of our capacity to pay distributions. We believe that FFO is a better measure of our properties’ operating performance because FFO excludes non-cash items from GAAP net income. FFO is calculated as follows (in thousands): 42 Year ended December 31, 2012 2011 2013 Funds from Operations: Net income (loss) attributable to Company Add: Depreciation and amortization related to investment properties $ $ 244,048 383,969 (69,338) $ 438,755 (316,253) 439,077 Depreciation and amortization related to investment in unconsolidated entities Provision for asset impairment Provision for asset impairment included in discontinued operations Impairment of investment in unconsolidated entities Impairment reflected in equity in earnings of unconsolidated entities Gain on sale of property reflected in net income attributed to noncontrolling interest Less: Gains from property sales and transfer of assets Net Gains from property sales reflected in equity in earnings of unconsolidated entities, net Gains (loss) from sales of investment in unconsolidated entities Noncontrolling interest share of depreciation and amortization related to investment properties Funds from operations $ 34,766 248,230 4,476 6,532 — — 456,563 2,792 3,058 48,840 37,830 45,485 9,365 470 5,439 40,691 2,399 (2,957) 63,645 24,051 139,590 113,621 16,739 — 16,510 11,141 7,545 — 459,608 $ — 476,713 $ 1,814 443,460 Below is additional information related to certain items that significantly impact the comparability of our Funds from Operations and Net Income (Loss) or significant non-cash items from the periods presented (in thousands): Gain on conversion of note receivable to equity interest Payment from note receivable previously impaired Gain on notes receivable Impairment on securities Straight-line rental income Amortization of above/below market leases Amortization of mark to market debt discounts (Gain) loss on extinguishment of debt Gain on extinguishment of debt reflected in equity in earnings of unconsolidated entities Acquisition costs $ Year ended December 31, 2012 2011 2013 — $ — (5,334) 1,052 (8,147) (2,659) 5,929 18,777 (5,709) 2,987 — $ — — 1,899 (11,010) (2,271) 6,488 (9,478) (2,176) 1,644 (17,150) (2,422) — 24,356 (13,841) (1,326) 7,973 (10,848) — 1,680 43 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Certain statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Form 10-K constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future and are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Similarly, statements that describe or contain information related to matters such as management’s intent, belief or expectation with respect to the Company’s financial performance, investment strategy and portfolio, cash flows, growth prospects, legal proceedings, acquisitions and dispositions, amount and timing of anticipated future cash distributions, amount and timing of anticipated cash proceeds from previously announced sale transactions, including from the sale of the Company's core net lease assets, and other matters are forward-looking statements. These forward-looking statements are not historical facts but are the intent, belief or current expectations of the Company’s management based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in this Annual Report on Form 10-K . These factors include, but are not limited to: market and economic volatility experienced by the U.S. economy or real estate industry as a whole, and the local economic conditions in the markets in which the Company’s properties are located; the Company’s ability to refinance maturing debt or to obtain new financing on attractive terms; the Company's ability to satisfy closing conditions required for the consummation of acquisitions and dispositions, including the Company's ability to obtain lender consents and other third party consents and the timing of such consents; the availability of cash flow from operating activities to fund distributions; future increases in interest rates; and actions or failures by the Company’s joint venture partners, including development partners. The Company intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. The following discussion and analysis relates to the years ended December 31, 2013, 2012 and 2011 and as of December 31, 2013 and 2012. You should read the following discussion and analysis along with our consolidated financial statements and the related notes included in this report. Overview In 2013, we made significant strides in the execution of our portfolio strategy, focusing our diversified assets in three specific real estate asset classes (retail, lodging and student housing), while maintaining a sustainable distribution rate funded by our operations, distributions from unconsolidated entities, and gain on sale of properties. We disposed of assets we determined to be less strategic and reinvested the capital in real estate assets that we believe will produce attractive current yields and long- term risk-adjusted returns to our stockholders. For our existing portfolio, our property managers for our non-lodging properties actively seek to lease space at favorable rates, control expenses, and maintain strong tenant relationships. We oversee the management of our lodging facilities through active engagement with our third party managers and franchisors to maximize occupancy and daily rates as well as control expenses. On a consolidated basis, essentially all of our revenues and cash flows from operations for the year ended December 31, 2013 were generated by collecting rental payments from our tenants, room revenues from lodging properties, distributions from unconsolidated entities and dividend income earned from investments in marketable securities. Our largest cash expense relates to the operation of our properties as well as the interest expense on our mortgages. Our property operating expenses include, but are not limited to, real estate taxes, regular repair and maintenance, management fees, utilities and insurance (some of which are recoverable). Our lodging operating expenses include, but are not limited to, rooms, food and beverage, utility, administrative and marketing, payroll, franchise and management fees and repairs and maintenance expenses. In 2013, we saw total net operating income increase from $513.6 million to $577.9 million for the year ended December 31, 2012 to 2013. The increase of $64.3 million or 12.5% was primarily due to a full year of operations for our lodging and student housing properties we purchased in 2012 and the approximately $1.2 billion of properties purchased in 2013. The remainder of the increase of $10.0 million or 2.2% was driven by our lodging same store properties' operating performance. In evaluating our financial condition and operating performance, management focuses on the following financial and non- financial indicators, discussed in further detail herein: • Funds from Operations (“FFO”), a supplemental non-GAAP measure to net income determined in accordance with GAAP 44 • Cash flow from operations as determined in accordance GAAP • Property net operating income (NOI), which excludes interest expense, depreciation and amortization, general and administrative expenses, net income of noncontrolling interest and other investment income from corporate investments • Economic and physical occupancy and rental rates • Leasing activity and lease rollover • Managing operating expenses • Average daily room rate, revenue per available room, and average occupancy to measure our lodging properties • Debt maturities and leverage ratios • Liquidity levels During 2014, we will continue to execute on our strategy of disposing less strategic assets and deploying the capital into segments we believe have opportunity for higher performance, which are multi-tenant retail, lodging, and student housing. For our non-core properties, we strive to improve individual property performance to increase each property’s value. While we believe we will continue to see overall same store operating performance increases in 2014, we could see significant disposition activity in 2014. This disposition activity could cause us to experience dilution in our operating performance during the period we dispose of properties and prior to reinvestment. We expect to see increased same store operating performance in our lodging and student housing segments in 2014 as we continue to execute our investment strategy in these segment classes. The lodging industry is expected to have continued positive growth for 2014 and rental growth is projected to continue for the student housing properties in 2014. Our retail portfolio is expected to maintain high occupancy and have manageable lease rollover in the next three years. We believe the retail segment same store income will be consistent with 2013 results. In addition, we expect to see similar or slightly decreased operating performance in our non-core portfolio in 2014. We believe that our debt maturities over the next five years are manageable and although we believe interest rates will rise in the future, we anticipate low interest rates to continue in 2014. We believe we will be maintain our cash distribution in 2014 and anticipate distributions to be funded by cash flow from operations as well as distributions from unconsolidated entities and gains on sales of properties. Results of Operations General Consolidated Results of Operations This section describes and compares our results of operations for the years ended December 31, 2013, 2012 and 2011. We generate most of our net operating income from property operations. In order to evaluate our overall portfolio, management analyzes the operating performance of all properties from period to period and properties we have owned and operated for the same period during each year. Investment properties owned for the entire years ended December 31, 2013 and 2012 and December 31, 2012 and 2011, respectively, are referred to herein as “same store” properties. Unless otherwise noted, all dollar amounts are stated in thousands (except per share amounts, per square foot amounts, revenue per available room and average daily rate). Comparison of the years ended December 31, 2013, 2012 and 2011 Net income (loss) attributable to Company Net income (loss) per common share, basic and diluted Year ended December 31, 2013 244,048 $ 0.27 $ Year ended December 31, 2012 $ $ (69,338) $ (0.08) $ Year ended December 31, 2011 (316,253) (0.37) Our net income increased from the year ended December 31, 2012 to 2013 primarily due to the gains on sales of properties for the year ended December 31, 2013 compared to 2012. A gain on sale of property of $442,577 was included in our income from discontinued operations for the year ended December 31, 2013. This gain was offset by our asset impairments of $247,372 for the same period. 45 Our net loss decreased from the years ended December 31, 2011 to 2012 primarily due to a decrease in one-time impairment charges to unconsolidated entities and to various properties for the year ended December 31, 2012 compared to 2011. Additionally, operating income increase from same store growth as our lodging and multi-family (student housing and apartments) operating performance increased and from a full year of operations for retail and lodging properties acquired in late 2011 and early 2012. A detailed discussion of our financial performance is outlined below. Operating Income and Expenses: Income: Rental income Tenant recovery income Other property income Lodging income Operating Expenses: Lodging operating expenses Property operating expenses Real estate taxes Provision for asset impairment General and administrative expenses Business management fee Year ended December 31, 2013 Year ended December 31, 2012 Year ended December 31, 2011 2013 Increase (decrease) from 2012 2012 Increase (decrease) from 2011 $ $ 361,678 71,207 7,202 881,750 $ 347,647 73,214 5,714 692,448 $ 327,052 66,655 8,838 517,840 $ 14,031 (2,007) 1,488 189,302 20,595 6,559 (3,124) 174,608 $ 574,224 $ 449,397 $ 330,185 $ 124,827 $ 119,212 84,107 85,597 242,896 55,549 37,962 77,694 78,348 37,830 36,815 39,892 77,691 68,255 24,051 31,026 40,000 6,413 7,249 205,066 18,734 (1,930) 3 10,093 13,779 5,789 (108) Property Income and Operating Expenses Rental income for non-lodging properties consists of basic monthly rent, straight-line rent adjustments, amortization of acquired above and below market leases, other property, and percentage rental income recorded pursuant to tenant leases. Tenant recovery income consists of reimbursements for real estate taxes, common area maintenance costs, management fees, and insurance costs. Tenant recovery income generally fluctuates correspondingly with property operating expenses and real estate taxes. Other property income for non-lodging properties consists of lease termination fees and other miscellaneous property income. Property operating expenses for non-lodging properties consist of regular repair and maintenance, management fees, utilities and insurance (some of which are recoverable from the tenant). • There was a slight increase in property income for the year ended December 31, 2013 compared to 2012. The increase was a result of the full year of operations for the properties acquired in 2012 as well as the operating performance of the properties acquired in 2013. Same store property performance remained stable. Same store property income amounted to $386,588 in 2013 and $387,289 in 2012, which resulted in a 0.2% decrease. Comparatively, same store operating expenses were $143,585 in 2013 and $142,235 in 2012, an increase of 0.9%. • There was a slight increase in property income for the year ended December 31, 2012 compared to 2011. The increase was a result of the full year of operations for the properties acquired in 2011 as well as the operating performance of the properties acquired in 2012. Same store property performance remained stable. Same store property income amounted to $372,328 in 2012 compared to $371,359 in 2011, which was less than a 1% increase. In correlation, same store property operating expenses amounted to $135,067 in 2012 compared to $133,506 in 2011, which was a 1.2% increase. Lodging Income and Operating Expenses Our lodging properties generate revenue through sales of rooms and associated food and beverage services. Lodging operating expenses include the room maintenance, food and beverage, utilities, administrative and marketing, payroll, franchise and management fees, and repairs and maintenance expenses. • The $189,302 increase in lodging operating income for the year ended December 31, 2013 compared to 2012 was primarily a result of the addition of hotels acquired in 2012 and 2013, which were mostly in the upper-upscale or 46 luxury classification, We acquired fourteen hotels in 2013 and seven hotels in 2012. Additionally, $24,035 of the increase was due to improved same store performance as a result of higher rental rates. Same store average daily rates increased from $131 in 2012 to $136 in 2013. The addition of these upper-upscale and luxury properties to our portfolio resulted in higher operating costs. The increase in lodging expenses of $124,827, or 28%, for 2013 was directly correlated to the percentage increase in income of 27%. • The $174,608 increase in lodging operating income for the year ended December 31, 2012 compared to 2011 was a result of the addition of hotels acquired in 2012 as well as an increase in our same store properties' performance. We acquired five hotels in the first quarter of 2012 and were able to obtain nine months of operating performance. The remaining $26,303 of the increase was due to improved same store performance as a result of higher rental rates. Same store average daily rates increased from $125 in 2011 to $129 in 2012. The increase in lodging expenses of $119,212, or 36%, for 2012 was directly correlated to the percentage increase in income of 34%. Provision for Asset Impairment • • For the year ended December 31, 2013, we identified certain properties which may have a reduction in the expected holding period and reviewed the probability of these assets’ dispositions. As part of our analysis, we identified one property, a large single tenant office property, in which we were exploring a potential disposition. After we began exploring a potential sale of the property, we became aware of circumstances in which the tenant would reduce the space they occupied. Although the lease does not expire until 2016, we analyzed various leasing and sale scenarios for the single tenant property. Based on the probabilities assigned to such scenarios, it was determined the property was impaired and therefore, written down to fair value. As a result, we recorded a provision for asset impairment of $147,480 during the second quarter 2013. Overall, we recorded a provision for asset impairment of $248,230 for continuing operations and $4,476 for discontinued operations, to reduce the book value of certain investment properties to their fair values. Offsetting the impairment charges, due to a change in the amount of an impaired note's expected future cash flows, we reduced the note's impairment allowance, resulting in a gain of $5,334. For the years ended December 31, 2012 and 2011, we identified certain properties which may have a reduction in the expected holding period and reviewed the probability of these assets’ dispositions. As a result, we recorded a provision for asset impairment of $37,830 and $24,051 in continuing operations, respectively, to reduce the book value of certain investment properties to their new fair values. We disposed of many of the properties impaired in 2012 and 2011 by December 31, 2013. The related impairment charges of $45,485 and $139,590, respectively, are reflected in discontinued operations. General Administrative Expenses and Business Management Fee After our stockholders have received a non-cumulative, non-compounded return of 5% per annum on their “invested capital,” we pay our business manager an annual business management fee of up to 1% of the “average invested assets,” payable quarterly in an amount equal to 0.25% of the average invested assets as of the last day of the immediately preceding quarter. Once we have satisfied the minimum return on invested capital, the amount of the actual fee paid to the business manager is requested by the business manager and approved by the board of directors up to the amount permitted by the agreement. • We incurred a business management fee of $37,962, $39,892 and $40,000, which is equal to 0.37%, 0.35%, and 0.35% of average invested assets for the years ended December 31, 2013, 2012 and 2011, respectively. • The increase in general and administrative expenses of $18,734 from $36,815 to $55,549 for the years ended December 31, 2012 to 2013, respectively, was primarily a result of increased legal costs, increased consulting and professional fees due to our large amount of transaction activity and the execution of our portfolio strategy, as well as increased salary expenses resulting from additional personnel, which is reimbursed to the business manager. • The increase in general and administrative expenses of $5,789 from $31,026 to $36,815 for the years ended December 13, 2012 and 2011, respectively, was primarily a result of increased legal costs and increased salary expenses as a result of a shift in personnel from our property managers to our business manager. 47 Non-Operating Income and Expenses: Year ended December 31, 2013 Year ended December 31, 2012 Year ended December 31, 2011 2013 Increase (decrease) from 2012 2012 Increase (decrease) from 2011 $ 15,335 (212,263) $ 2,010 (209,353) $ 19,694 (215,790) $ 11,958 1,998 (12,802) $ 13,325 2,910 9,960 (17,684) (6,437) 14,800 (3,473) (12,322) (106,023) (8,849) 93,701 31,539 459,588 4,319 46,780 (16,219) 27,220 (42,256) 412,808 20,538 89,036 Non-operating income and expenses: Other income Interest expense Equity in income (loss) of unconsolidated entities Gain, (loss) and (impairment) of investment in unconsolidated entities, net Realized gain, (loss) and (impairment) on securities, net Income (loss) from discontinued operations, net Other Income • The increase in other income for the year ended December 31, 2013 compared to 2012 was primarily a result of the gain recognized on fourteen multi-tenant retail properties contributed to the IAGM Retail Fund I, LLC joint venture. We have an equity interest in the IAGM Retail Fund I, LLC joint venture; therefore we have a continued ownership interest in the properties. As such, we treated this disposition as a partial sale, recognizing a gain on sale of $12,783 for the year ended December 31, 2013, and the activity related to the contributed properties remain in continuing operations on the consolidated statements of operations and other comprehensive income. • The decrease in other income for the year ended December 31, 2012 compared to 2011 was primarily due to the gain recognized on the conversion of a note receivable to equity of $17,150 in an unconsolidated entity for the year ended December 31, 2011. Interest Expense • • Interest expense from continuing operations remained largely unchanged for the year ended December 31, 2013 compared to 2012 with balances of $212,263 and $209,353, respectively. However, additional interest expense of $72,906 and $111,281 was reflected in discontinued operations for the years ended December 31, 2013 and 2012, respectively. In total interest expense decreased for the year ended December 31, 2013 compared to 2012 with balances of $285,169 and $320,634, respectively. This was primarily due to the decrease in the principal amount of our total debt (including mortgages, line of credit, and mortgages held for sale) as of December 31, 2013 compared to 2012 with balances of $4,920,180 and $5,867,004, respectively. Interest expense from continuing operations decreased for the year ended December 31, 2012 compared to 2011 with balances of $209,353 and $215,790, respectively. However, additional interest expense of $111,281 and $101,682 was reflected in discontinued operations for the years ended December 31, 2012 and 2011, respectively. In total interest expense increased for the year ended December 31, 2012 compared to 2011 with balances of $320,634 and $317,472, respectively. This was primarily due to the increase in the principal amount of our total debt as of December 31, 2012 compared to 2011 with balances of $5,867,004 to $5,781,855. • Our weighted average interest rate on total outstanding debt was 4.95%, 5.10%, and 5.20% per annum for the years ended December 31, 2013, 2012 and 2011, respectively. Equity in Income (Loss) of Unconsolidated Entities Our equity in income of unconsolidated entities includes the income we pick up from each joint venture's operating income or loss. Also included in this figure are any one-time adjustments associated with the transactions of the joint venture. • For the year ended December 31, 2013, the equity in income of unconsolidated entities in 2013 was primarily a result of a gain on the property sales of $3,015 in one unconsolidated entity and a gain on the extinguishment of debt of $5,709 in an unconsolidated entity. 48 • • For the year ended December 31, 2012, the equity in income of unconsolidated entities in 2012 was largely a result of a $4,575 gain from our share of property sales and extinguishment of debt in two unconsolidated entities offset by an impairment charge recognized by one unconsolidated entity of which our portion was $470. For the year ended December 31, 2011, the equity in loss of unconsolidated entities was largely a result of impairment charges recognized by two unconsolidated entities of which our portion was $16,739, offset by a $11,141 gain from our share of property sales in two unconsolidated entities. Gain, (Loss) and (Impairment) of Investment in Unconsolidated Entities, net • • • For the year ended December 31, 2013, we recorded an impairment of $6,532 in two unconsolidated joint ventures. We also recorded a net gain of $3,058 on sales of four unconsolidated entities. For the year ended December 31, 2012, we recorded an impairment of $9,365 on three of our investments in unconsolidated entities. Additionally, we recorded losses on the sales of 100% of our equity in one joint venture of $1,556 and a lodging joint venture of $1,401. For the year ended December 31, 2011, we recorded an impairment of $113,621 on an investment in an unconsolidated entity. The impairment was offset by a $7,545 gain on our investment in unconsolidated entities due to the sale of 100% of our equity in one joint venture. Realized Gain, (Loss) and (Impairment) on Securities, net • • • For the year ended December 31, 2013, there was a $1,052 impairment charge for equity securities offset by a $32,591 net realized gain. For the year ended December 31, 2012, there was a $1,899 impairment charge for equity securities offset by a $6,218 net realized gain. For the year ended December 31, 2011, the loss was primarily due to a $24,356 impairment charge for equity securities offset by an $8,137 realized gain. Discontinued Operations • • • For the year ended December 31, 2013 we recorded income of $459,588 from discontinued operations, which primarily included a gain on sale of properties of $442,577, a gain on extinguishment of debt of $18,285, a gain on transfer of assets of $16, and provision for asset impairment of $4,476. For the year ended December 31, 2012, we recorded income of $46,780 from discontinued operations, which primarily included a gain on sale of properties of $39,236, a gain on extinguishment of debt of $9,478, a gain on transfer of assets of $2,175, and provision for asset impairment of $45,485. For the year ended December 31, 2011, we recorded a loss of $42,256 from discontinued operations, which primarily included a gain on sale of properties of $11,457, a gain on extinguishment of debt of $10,848, a gain on transfer of assets of $4,546 and a provision for asset impairment of $139,590. Segment Reporting Our long-term portfolio strategy is to focus on three asset classes - retail, lodging, and student housing. During the year ended December 31, 2013, we executed on this strategy by disposing of 313 non-strategic assets as well as classifying 224 non- strategic assets as held for sale. Therefore, beginning on September 30, 2013, we restated our business segments to: Retail, Lodging, Student Housing, and Non-core. Net operating income for the years ended December 31, 2012 and 2011 have been restated to reflect the change in business segments. The non-core segment includes office properties, industrial properties, bank branches, retail single tenant properties, and a conventional multi-family property. We have concentrated our efforts on driving portfolio growth in the multi-tenant retail, student housing and lodging segments to enhance the long-term value of each segment's portfolio and respective platforms. For our non-core properties, we strive to improve individual property performance to increase each property’s value. We evaluate segment performance primarily based on net operating income. Net operating income of the segments exclude interest expense, depreciation and amortization, general and administrative expenses, net income of noncontrolling interest and other investment income from corporate investments. An analysis of results of operations by segment is below. In order to evaluate our overall portfolio, management analyzes the operating performance of all properties from period to period and properties we have owned and operated for the same period during each year. A total of 232 and 226 of our investment properties satisfied the criteria of being owned for the entire years ended December 31, 2013 and 2012 and December 31, 2012 and 2011, respectively, and are referred to herein as “same store” properties. This same store analysis allows management to monitor the operations of our existing properties for comparable 49 periods to determine the effects of our new acquisitions on net income. The tables contained throughout summarize certain key operating performance measures for the years ended December 31, 2013, 2012 and 2011. The rental rates reflected in retail, student housing and non-core are inclusive of rent abatements, lease inducements and straight-line rent GAAP adjustments, but exclusive of tenant improvements and lease commissions. Physical occupancy is defined as the percentage of total gross leasable area actually used or occupied by a tenant. Economic occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement, regardless of the actual use or occupation by that tenant of the area being leased. Retail Segment Our retail segment now consists solely of multi-tenant retail properties in order to present information consistent with our long- term portfolio investment strategy. Our retail segment net operating income on a same store basis remained stable for the year ended December 31, 2013 compared to the year ended December 31, 2012, slightly down $856 or 0.5%. On a total segment basis, we saw a decrease in total net operating income of $8,950 or 4.4%. This was primarily a result of the 14 properties we contributed to the IAGM Retail Fund I, LLC joint venture. For the year ended December 31, 2012, a full year of operations was included in net operating income, whereas for the year ended December 31, 2013, only operations through the disposition date in early April 2013 are included in net operating income. Our retail segment net operating income on a same store basis grew slightly for the year ended December 31, 2012 compared to the year ended December 31, 2011, up $1,973 or 1.2%. This was a result of stable same store economic occupancy and comparable lease rates year to year. On a total segment basis, we saw an increase in total net operating income of $14,679 or 7.7%. This was due to a full year of operations for our acquisitions in 2011 as well as property operating performance for our 2012 acquisitions. We believe that fundamentals in the retail segment are slowly improving. Current market outlook indicates well-timed acquisitions as well as divestiture of low-quality assets are essential to sustainable growth. Sustainable growth is also supported by the strong demand for grocery-anchored retail centers, which are part of our retail acquisition strategy due to their resiliency to e-commerce. With limited new development and construction, we have a positive view of this segment long-term. Our retail portfolio strategy is to focus our capital in favorable demographic and geographic locations where rental and net operating income growth is expected. For current properties in the portfolio, we continue to maintain our expense controls and our successful property marketing programs and enhance current tenant relationships. We focus on new consumer trends and reevaluate tenant synergy as leases mature in an effort to guarantee proper tenant diversity at our properties. Physical occupancy Economic occupancy Rent per square foot Investment in properties, undepreciated Total Retail Properties As of December 31, 2012 91% 92% $13.30 $3,076,434 2011 91% 93% $13.21 $3,014,731 2013 90% 91% $13.57 $2,641,706 50 Comparison of Years Ended December 31, 2013 and 2012 The table below represents operating information for the retail segment and for the same store retail segment consisting of properties acquired prior to January 1, 2012. The properties in the same store portfolio were owned for the entire years ended December 31, 2013 and 2012. Activity in the non-same store column for the years ended December 31, 2013 and 2012 includes those properties contributed to the IAGM joint venture. For the year ended December 31, 2013 For the year ended December 31, 2012 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Retail Revenues: Rental income $199,711 $15,423 $215,134 $200,698 $25,848 $226,546 $(987) (0.5)% $(11,412) (5.0)% Straight line adjustment Tenant recovery income Other property income Total income Expenses: Property operating expenses Real estate taxes Total operating expenses Net operating income 4,041 1,157 5,198 3,904 920 4,824 137 3.5 % 374 7.8 % 59,276 5,654 64,930 58,632 7,522 66,154 644 1.1 % (1,224) (1.9)% 3,592 230 3,822 2,979 (293) 2,686 266,620 22,464 289,084 266,213 33,997 300,210 613 407 20.6 % 0.2 % 1,136 42.3 % (11,126) (3.7)% 50,313 36,505 3,818 2,990 54,131 39,495 50,901 34,654 5,706 4,541 56,607 39,195 588 1.2 % 2,476 4.4 % (1,851) (5.3)% (300) (0.8)% 86,818 6,808 93,626 85,555 10,247 95,802 (1,263) (1.5)% 2,176 2.3 % $179,802 $15,656 $195,458 $180,658 $23,750 $204,408 $(856) (0.5)% $(8,950) (4.4)% Average occupancy for the period Number of Properties 91% 113 - 6 91% 119 92% 113 - 2 92% 115 51 Comparison of Years Ended December 31, 2012 and 2011 The table below represents operating information for the retail segment and for the same store retail segment consisting of properties acquired prior to January 1, 2011. The properties in the same store portfolio were owned for the entire years ended December 31, 2012 and 2011. Activity in the non-same store column for the years ended December 31, 2012 and 2011 includes those properties contributed to the IAGM joint venture. Retail For the year ended December 31, 2012 For the year ended December 31, 2011 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Rental income Straight line adjustment Tenant recovery income Other property income Total income Expenses: Property operating expenses Real estate taxes Total operating expenses $188,996 $37,550 $226,546 $188,519 $22,517 $211,036 $477 0.3 % $15,510 7.3 % 4,114 710 4,824 4,933 9 4,942 (819) (16.6)% (118) (2.4)% 56,316 9,838 66,154 53,732 7,037 60,769 2,584 4.8 % 5,385 8.9 % 2,972 (286) 2,686 3,599 1,066 4,665 (627) (17.4)% (1,979) (42.4)% 252,398 47,812 300,210 250,783 30,629 281,412 1,615 0.6 % 18,798 6.7 % 48,887 33,359 7,720 5,836 56,607 39,195 49,794 32,810 5,359 3,720 55,153 36,530 907 1.8 % (1,454) (2.6)% (549) (1.7)% (2,665) (7.3)% 82,246 13,556 95,802 82,604 9,079 91,683 358 0.4 % (4,119) (4.5)% Net operating income $170,152 $34,256 $204,408 $168,179 $21,550 $189,729 $1,973 1.2 % $14,679 7.7 % Average occupancy for the period Number of Properties Lodging Segment 91% 111 - 4 92% 115 93% 111 - 2 93% 113 During 2013, we made significant progress on our lodging portfolio strategy, to move out of certain midscale lodging assets and into more urban, full service properties by acquiring four luxury, nine upper-upscale, and one upscale lodging assets and disposing of three midscale lodging assets. Refining the assets in our lodging portfolio coupled by the significant improvement in the lodging industry has driven the increase in our operating performance for this sector. Our total net operating income for lodging has increased from $164,353 to $212,219 to $272,270, for the years ended December 31, 2011, 2012 and 2013 respectively. In addition, revenue per available room ("RevPAR") grew 8.2% from $96 as of December 31, 2012 to $105 as of December 31, 2013 because the average daily rate ("ADR") grew 6.8% from $133 to $143 while occupancy remained stable at 73.0% for each period. RevPAR grew 7.8% from $90 as of December 31, 2011 to $96 as of December 31, 2012 because ADR grew 5.6% from $125 to $133 and occupancy increased from 72.0% to 73.0%. Significant growth of RevPAR has occurred in the lodging industry since 2011. RevPAR represents the product of the average daily room rate charged and the average daily occupancy achieved but excludes other revenue generated by a hotel property, such as food and beverage, parking, telephone and other guest service revenues. The lodging industry has seen a recovery in business travelers and leisure transient and our operating managers have been able to push rates which has improved the performance of our lodging segment. On a same store basis, net operating income increased 6.8% for the years ended December 31, 2012 to December 31, 2013, from $183,465 to $195,964. The same store properties for the years ended December 31, 2011 and December 31, 2012 also had an increase in net operating income of 7.1%, from $155,973 to $166,977. We are optimistic our lodging portfolio will continue its strong performance in 2014 with increases in RevPAR and ADR. Our lodging portfolio was presented with certain challenges in select markets related to slowing government business although this was partially offset by strong business and leisure travel. Due to our diverse hotel portfolio, we continued to outperform the total U.S. market as measured by RevPAR growth, and maximize average daily rate, which is the catalyst to our portfolio profitability. We expect that supply growth will remain below historical levels for the next several years which we believe will 52 support the fundamentals for the lodging segment. Market trends for 2014 also indicate greater gains in average daily rates and occupancy for luxury and upper upscale hotel chains. The increase in our same store growth and the acquisitions of high end lodging properties supports our long-term investment portfolio strategy. Revenue per available room Average daily rate Occupancy Investment in properties, undepreciated, as of December 31 Comparison of Years Ended December 31, 2013 and 2012 Total Lodging Properties For the year ended December 31, 2012 $96 $133 72% $3,293,305 2013 $105 $143 73% $4,211,699 2011 $90 $125 72% $2,854,577 The table below represents operating information for the lodging segment and for the same store portfolio for properties acquired prior to January 1, 2012. The properties in the same store portfolio were owned for the entire years ended December 31, 2013 and 2012. Lodging For the year ended December 31, 2013 For the year ended December 31, 2012 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Lodging operating income Expenses: Lodging operating expenses $603,098 $278,652 $881,750 $579,063 $113,385 $692,448 $24,035 4.2 % $189,302 27.3 % 380,274 193,950 574,224 368,324 81,073 449,397 (11,950) (3.2)% (124,827) (27.8)% Real estate taxes 26,860 8,396 35,256 27,274 3,558 30,832 414 1.5 % (4,424) (14.3)% Total operating expenses 407,134 202,346 609,480 395,598 84,631 480,229 (11,536) (2.9)% (129,251) (26.9)% Net operating income $195,964 $76,306 $272,270 $183,465 $28,754 $212,219 $12,499 6.8 % $60,051 28.3 % Average occupancy for the period Number of Properties Room Rev Par Average Daily Rate 73% 78 $100 $136 - 21 - - 73% 99 $105 $143 73% 78 $95 $131 - 7 - - 72% 85 $96 $133 53 Comparison of Years Ended December 31, 2012 and 2011 The table below represents operating information for the lodging segment and for the same store portfolio consisting of properties acquired prior to January 1, 2011. The properties in the same store portfolio were owned for the years ended December 31, 2012 and 2011. Lodging For the year ended December 31, 2012 For the year ended December 31, 2011 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Lodging operating income Expenses: Lodging operating expenses Real estate taxes Total operating expenses $509,425 $183,023 $692,448 $483,122 $34,718 $517,840 $26,303 5.4 % $174,608 33.7 % 318,377 131,020 449,397 304,773 25,412 330,185 (13,604) (4.5)% (119,212) (36.1)% 24,071 6,761 30,832 22,376 926 23,302 (1,695) (7.6)% (7,530) (32.3)% 342,448 137,781 480,229 327,149 26,338 353,487 (15,299) (4.7)% (126,742) (35.9)% Net operating income $166,977 $45,242 $212,219 $155,973 $8,380 $164,353 $11,004 7.1 % $47,866 29.1 % Average occupancy for the period Number of Properties Room Rev Par Average Daily Rate 73% 75 $95 $129 - 10 - - 72% 85 $96 $133 72% 75 $90 $125 - 3 - - 72% 78 $90 $125 Student Housing Segment Our student housing segment was formerly a part of the historical multi-family segment. It is now being presented as its own segment consistent with our long-term portfolio strategy. Our student housing segment has seen strong growth from 2011. Total net operating income increased from $15,175 to $19,830 to $35,462 from December 31, 2011 to 2012 to 2013, respectively. The increase in net operating income was primarily driven by our acquisitions. In 2013 and 2012, we purchased five and developed three student housing properties to add to our portfolio. Rents per bed also increased from $655 in 2011 to $670 in 2012 to $724 in 2013. Our rental rates in student housing rose significantly in 2013 compared to 2012 due to favorable market conditions as well as the addition of new properties. Occupancy remained stable across each year at 92% , 93% , and 92% for the years ended December 31, 2011, 2012 and 2013, respectively. Our student housing segment continues to perform strongly and in line with market expectations. In 2014, we plan to build on this success through acquisitions and continued development. Assets targeted for acquisition and land planned for development include properties that are within walking distance to campus, near schools that have low acceptance rates, are highly ranked academically, and have large enrollments (over 20,000 students). Our current portfolio and investment strategy targets properties meeting these key criteria. We also aim to increase our occupancy and rents in line with market trends in 2014, and expect this to increase our net operating income for the student housing segment. Economic occupancy End of month scheduled rent per bed per month Investment in properties, undepreciated Total Student Housing Properties As of December 31, 2012 93% $670 $420,555 2011 92% $655 $248,938 2013 92% $724 $710,211 54 Comparison of Years Ended December 31, 2013 and 2012 The table below represents operating information for the student-housing segment and for the same store portfolio consisting of properties acquired prior to January 1, 2012. The properties in the same store portfolio were owned for the years ended December 31, 2013 and 2012. Student Housing For the year ended December 31, 2013 For the year ended December 31, 2012 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Rental income Straight line adjustment Tenant recovery income Other property income Total income Expenses: Property operating expenses Real estate taxes Total operating expenses $26,356 $29,417 $55,773 $25,295 $4,939 $30,234 $1,061 4.2 % $25,539 84.5 % 133 240 373 169 455 1,497 66 1,312 521 2,809 429 1,400 — — 350 169 (36) (21.3)% 204 120.7 % 429 1,750 26 97 6.1 % 6.9 % 4.2 % 92 1,059 26,894 21.4 % 60.5 % 82.5 % 28,441 31,035 59,476 27,293 5,289 32,582 1,148 11,193 1,906 8,224 2,691 19,417 4,597 10,952 1,798 (50) 52 10,902 1,850 (241) (2.20)% (108) (6.0)% (8,515) (2,747) (78.1)% (148. 5 )% 13,099 10,915 24,014 12,750 2 12,752 (349) (2.7)% (11,262) (88.3)% Net operating income $15,342 $20,120 $35,462 $14,543 $5,287 $19,830 $799 5.5 % $15,632 78.8 % Average occupancy for the period Number of Properties 93% 6 - 8 87% 14 91% 6 - 4 92% 10 55 Comparison of Years Ended December 31, 2012 and 2011 The table below represents operating information for the student housing segment and for the same store portfolio consisting of properties acquired prior to January 1, 2011. The properties in the same store portfolio were owned for the years ended December 31, 2012 and 2011. Student Housing For the year ended December 31, 2012 For the year ended December 31, 2011 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Rental income Straight line adjustment Tenant recovery income Other property income Total income Expenses: Property operating expenses Real estate taxes Total operating expenses $25,295 $4,939 $30,234 $24,706 — $24,706 $589 2.4 % $5,528 22.4 % 169 429 1,400 — — 350 169 145 429 1,750 446 1,569 — — — 145 446 1,569 27,293 5,289 32,582 26,866 — 26,866 24 16.6 % 24 16.6 % (17) (3.8)% (17) (3.8)% (169) (10.8)% 427 1.6 % 181 5,716 11.5 % 21.3 % 10,952 1,798 12,750 (50) 10,902 52 1,850 10,048 1,643 — 10,048 — 1,643 (904) (155) (9.0)% (9.4)% (854) (8.5)% (207) (12.6)% 2 12,752 11,691 — 11,691 (1,059) (9.1)% (1,061) (9.1)% Net operating income $14,543 $5,287 $19,830 $15,175 — $15,175 $(632) (4.2)% $4,655 30.7 % Average occupancy for the period Number of Properties 91% 6 - 4 92% 10 92% 6 - - 92% 6 Non-core Segment We are executing our long-term portfolio strategy by focusing on three specific real estate asset classes - retail, lodging, and student housing. The remaining assets outside of these asset classes are grouped together in the non-core segment. Our non- core segment consists of 24 industrial properties, ten office properties, ten single tenant retail properties, and one conventional apartment property. On December 31, 2013, the Company entered into a definitive agreement and purchased our partner's interest in D.R. Stephens Institutional Fund, LLC, a joint venture. This resulted in the Company obtaining control of the venture and consolidating ten industrial properties. The ten industrial properties are included in our property count as of December 31, 2013, but we have not reflected income from the properties in 2013 because we acquired the properties on the last day of the year. The segment consists of a diverse portfolio of assets, each with a different performance goal. We continue to focus on long term value for the individual assets in the non-core segment. A large part of our remaining non-core portfolio are net-lease properties which are expected to have limited lease rollover in the immediate future. Our non-core same store net operating income decreased by $2,408 or 3%, from $77,127 at December 31, 2012 to $74,719 at December 31, 2013. This decrease was primarily driven by various tenants re-leasing at lower rates for two multi-tenant office properties. Non-core same store net operating income decreased slightly from $76,875 to $76,637, or $238 and 0.3% from December 31, 2011 to 2012. 56 Physical occupancy Economic occupancy Rent per square foot End of month scheduled rent per conventional unit per month Total Non-core Properties As of December 31, 2013 88% 88% $14.46 $1,173 2012 90% 90% $15.57 $1,136 2011 92% 92% $15.37 $1,158 Investment in properties, undepreciated $968,323 $2,884,812 $3,700,857 Comparison of Years Ended December 31, 2013 and 2012 The table below represents operating information for the non-core segment and for the same store portfolio consisting of properties acquired prior to January 1, 2012. The properties in the same store portfolio were owned for the years ended December 31, 2013 and 2012. Non-core For the year ended December 31, 2013 For the year ended December 31, 2012 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Rental income Straight line adjustment Tenant recovery income Other property income Total income Expenses: Property operating expenses Real estate taxes Total operating expenses Net operating income Average occupancy for the period Number of Properties $85,039 — $85,039 $86,510 — $86,510 $(1,471) (1.7)% $(1,471) (1.7)% 161 5,756 571 91,527 10,559 6,249 16,808 $74,719 — — — 161 (636) 5,756 571 6,631 1,278 — — — (636) 797 (125. 3)% (125. 3)% 797 6,631 1,278 (875) (13.2)% (875) (13.2)% (707) (55.3)% (707) (55.3)% — 91,527 93,783 — 93,783 (2,256) (2.4)% (2,256) (2.4)% — 10,559 — 6,249 10,185 6,471 — 10,185 — 6,471 (374) (3.7)% (374) (3.7)% 222 3.4 % 222 3.4 % — 16,808 16,656 — 16,656 (152) (0.9)% (152) (0.9)% — $74,719 $77,127 — $77,127 $(2,408) (3.1)% $(2,408) (3.1)% 89% 35 - 10 88% 45 90% 35 - - 90% 35 57 Comparison of Years Ended December 31, 2012 and 2011 The table below represents operating information for the non-core segment and for the same store portfolio consisting of properties acquired prior to January 1, 2011. The properties in the same store portfolio were owned for the years ended December 31, 2012 and 2011. Non-core For the year ended December 31, 2012 For the year ended December 31, 2011 Same Store Change Favorable/ (Unfavorable) Total Change Favorable/ (Unfavorable) Same Store Non Same Store Total Same Store Non Same Store Total Amount % Amount % Revenues: Rental Income Straight line adjustment Tenant recovery income Other property income Total revenues Expenses: Property operating expenses Real estate taxes Total operating expenses Net operating income Average occupancy for the period Number of Properties Developments $85,783 $727 $86,510 $86,593 $262 $86,855 $(810) (0.9)% $(345) (0.4)% (394) (242) (636) (226) (406) (632) (168) 74.3 % (4) 0.6 % 5,994 1,254 637 24 6,631 1,278 4,781 2,562 92,637 1,146 93,783 93,710 659 42 557 5,440 2,604 1,213 25.4 % 1,191 21.9 % (1,308) (51.1)% (1,326) (50.9)% 94,267 (1,073) (1.1)% (484) (0.5)% 9,956 6,044 229 427 10,185 6,471 12,262 4,573 228 12,490 2,306 18.8 % 2,305 2,207 6,780 (1,471) (32.2)% 309 16,000 $76,637 656 $490 16,656 16,835 2,435 19,270 835 5.0 % 2,614 $77,127 $76,875 $(1,878) $74,997 $(238) (0.3)% $2,130 18.5 % 4.6 % 13.6 % 2.8 % 90% 34 - 1 90% 35 92% 34 - 1 92% 35 We have development projects that are in various stages of pre-development and development which are funded by borrowings secured by the properties and our equity investments or contributions. Specifically identifiable direct development and construction costs are capitalized, including, where applicable, salaries and related costs, real estate taxes and interest incurred in developing the property. These developments encompass the retail, lodging, and student housing segments. The properties under development and all amounts set forth below are as of December 31, 2013. (Dollar amounts stated in thousands.) Location (City, State) Property Type Square Feet / Beds / Rooms Total Costs Incurred to Date ($) (a) Total Estimated Costs ($) (b) Remaining Costs to be Funded by Inland American ($) (c) Note Payable as of Dec. 31 2013 ($) Estimated Placed in Service Date (d) (e) Name Woodbridge (f) UH at Charlotte Wylie, TX Charlotte, NC UH Tempe Phase II Development Tempe, AZ UH at Georgia Tech Grand Bohemian Charleston Grand Bohemian Mountain Brook Atlanta, GA Charleston, SC Mountain Brook, AL Retail 519,745 $ 44,932 $ 69,019 $ — $ 18,049 (f) Student Housing Student Housing Student Housing 670 beds 12,063 49,533 269 beds 1,938 25,237 8,571 3,783 1 Q3 2015 — Q3 2015 706 beds 16,165 75,470 10,249 — Q3 2015 Lodging 50 rooms 2,935 19,950 Lodging 100 rooms 4,885 26,250 4,665 6,075 — Q4 2014 — Q4 2014 58 (a) The Total Costs Incurred to Date represent total costs incurred for the development, including any costs allocated to parcels placed in service, but excluding capitalized interest. (b) The Total Estimated Costs represent 100% of the development’s estimated costs, including the acquisition cost of the land and building, if any, and excluding capitalized interest. The Total Estimated Costs are subject to change upon, or prior to, the completion of the development and include amounts required to lease the property. (c) We anticipate funding remaining development, to the extent any remains, through construction financing secured by the properties and equity contributions. (d) The Estimated Placed in Service Date represents the date the certificate of occupancy is currently anticipated to be obtained. Subsequent to obtaining the certificate of occupancy, each property (excluding lodging properties) will go through a lease-up period. (e) Leasing activities related to student housing properties do not begin until six to nine months prior to the placed in service date. (f) Woodbridge is a retail shopping center and development is planned to be completed in phases. As the construction and lease-up of individual phases are completed, the respective phase will be placed in service resulting in a range of estimated placed in service dates through 2016. Of the costs incurred to date, $34,388 relates to phases that have been placed in service as of December 31, 2013. As part of our restructure and foreclosure of a note receivable, we began overseeing as the secured lender certain roadway and utility infrastructure projects that will provide access to the 240 acre Sacramento Railyards property. The Railyards property is located immediately adjacent to, and to the north of, Sacramento’s central business district. The infrastructure projects were planned, approved and funded prior to the foreclosure of the Stan Thomas note. The Railyards property is the subject of a collaborative planning and infrastructure funding effort of various federal, state and local municipalities, and its development is scheduled to be completed in phases during the years 2013-2030. We are currently engaged in efforts both to either sell parcels within the Railyards or to sell the entire property to a master developer. The current book value, excluding capitalized interest, of the Railyards property is $120,519 as of December 31, 2013. Critical Accounting Policies and Estimates General The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and related notes. This section discusses those critical accounting policies and estimates. These judgments often result from the need to make estimates about the effect of matters that are inherently uncertain. GAAP requires information in financial statements about accounting principles, methods used and disclosures pertaining to significant estimates. This discussion addresses our judgment pertaining to known trends, events or uncertainties which were taken into consideration upon the application of those policies. Acquisitions We allocate the purchase price of each acquired business between tangible and intangible assets at full fair value at the date of the transaction. Such tangible and intangible assets include land, building and improvements, acquired above market and below market leases, in-place lease value, customer relationships (if any), and any assumed financing that is determined to be above or below market terms. Any additional amounts are allocated to goodwill as required, based on the remaining purchase price in excess of the fair value of the tangible and intangible assets acquired and liabilities assumed. The allocation of the purchase price is an area that requires judgment and significant estimates. We expense acquisition costs of all transactions as incurred. All costs related to finding, analyzing and negotiating a transaction are expensed as incurred as a general and administrative expense, whether or not the acquisition is completed. Impairment We assess the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, we are required to record an impairment loss to the extent that the carrying value exceeds fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on our continuous process of analyzing each property and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the property at a particular point in time. 59 We also evaluate our equity method investments for impairment indicators. The valuation analysis considers the investment positions in relation to the underlying business and activities of our investment and identifies potential declines in fair value. An impairment loss should be recognized if a decline in value of the investment has occurred that is considered to be other than temporary, without ability to recover or sustain operations that would support the value of the investment. Cost Capitalization and Depreciation Policies Our policy is to review all expenses paid and capitalize any items which are deemed to be an upgrade or a tenant improvement. These costs are capitalized and included in the investment properties classification as an addition to buildings and improvements. Buildings and improvements are depreciated on a straight-line basis based upon estimated useful lives of 30 years for buildings and improvements, and 5-15 years for site improvements and furniture, fixtures and equipment. Tenant improvements are depreciated on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. The portion of the purchase price allocated to acquired above market leases and acquired below market leases is amortized on a straight-line basis over the life of the related lease as an adjustment to net rental income. Acquired in-place lease costs, customer relationship value and other leasing costs are amortized on a straight-line basis over the life of the related lease as a component of amortization expense. Cost capitalization and the estimate of useful lives requires our judgment and includes significant estimates that can and do change based on our process which periodically analyzes each property and on our assumptions about uncertain inherent factors. Dispositions The Company accounts for dispositions in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-20, Real Estate Sales. The Company recognizes gain in full when real estate is sold, provided (a) the profit is determinable, that is, the collectability of the sales price is reasonably assured or the amount that will not be collectible can be estimated, and (b) the earnings process is virtually complete, that is, the seller is not obliged to perform significant activities after the sale to earn the profit. The Company records the transaction as discontinued operations for all periods presented in accordance with FASB ASC 205-20, Presentation of Financial Statements - Discontinued Operations. Investment in Marketable Securities We classify our investment in securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities in which we have the ability and intent to hold the security until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale. Investments in securities at December 31, 2013 and 2012 consists of common and preferred stock investments and investments in real estate related bonds that are all classified as available-for-sale securities and are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary, results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. When a security is impaired, management considers whether we have the ability and intent to hold the investment for a time sufficient to allow for any anticipated recovery in market value and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to period end and forecasted performance of the investee. Revenue Recognition We commence revenue recognition on our leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. The determination of who is the owner, for accounting purposes, of the tenant improvements determines the nature of the leased asset and when revenue recognition under a lease begins. If we are the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If we conclude we are not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives 60 which reduces revenue recognized over the term of the lease. In these circumstances, we begin revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct their own improvements. We consider a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • • the uniqueness of the improvements; the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, we consider all of the above factors. No one factor, however, necessarily establishes its determination. We recognize rental income on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying consolidated balance sheets. Due to the impact of the straight-line basis, rental income generally is greater than the cash collected in the early years and decreases in the later years of a lease. We periodically review the collectability of outstanding receivables. Allowances are taken for those balances that we deem to be uncollectible, including any amounts relating to straight-line rent receivables. Reimbursements from tenants for recoverable real estate tax and operating expenses are accrued as revenue in the period the applicable expenses are incurred. We make certain assumptions and judgments in estimating the reimbursements at the end of each reporting period. We do not expect the actual results to significantly differ from the estimated reimbursement. We will recognize lease termination income if there is a signed termination letter agreement, all of the conditions of the agreement have been met, collectability is reasonably assured and the tenant is no longer occupying the property. Upon early lease termination, we will provide for losses related to unrecovered intangibles and other assets. We recognize lodging operating revenue on an accrual basis consistent with operations. Consolidation We evaluate our investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity (“VIE”). If the entity is a VIE, the determination of whether we are the primary beneficiary must be made. We will consolidate a VIE if we are deemed to be the primary beneficiary, as defined in FASB ASC 810, Consolidation. The equity method of accounting is applied to entities in which we are not the primary beneficiary as defined FASB ASC 810, or the entity is not a VIE and we do not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. Income Taxes We operate in a manner intended to enable each entity to qualify as a REIT under Sections 856 through 860 of the Code. Under those sections, a REIT that distributes at least 90% of its “REIT taxable income” determined without regard to the deduction for dividends paid and by excluding any net capital gain to its stockholders each year and that meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its stockholders. If we fail to distribute the required amount of income to our stockholders, or fail to meet the various REIT requirements, without the benefit of certain relief provisions, we may fail to qualify as a REIT and substantial adverse tax consequences may result. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income, property, or net worth, and to federal income and excise taxes on our undistributed taxable income. In addition, taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to federal, state and local income taxes. Liquidity and Capital Resources As of December 31, 2013, we had $319.2 million of cash and cash equivalents. We continually evaluate the economic and credit environment and its impact on our business. Maintaining significant capital reserves has become a priority. We believe we are appropriately positioned to have significant cash to utilize in executing our strategy. 61 Short Term Liquidity and Capital Resources On a short term basis, our principal demands for funds are to pay our corporate and operating expenses, as well as property capital expenditures, make distributions to our stockholders, and pay/make interest and principal payments on our current indebtedness. Our capital expenditures mainly consist of improvements to hotels, in which a portion is reserved for in restricted escrows. We are negotiating refinancing the 2014 debt maturities at terms that will most likely be at lower rates. We expect to meet our short term liquidity requirements from cash flow from operations, proceeds from our dividend reinvestment plan and distributions from our joint venture investments. Long Term Liquidity and Capital Resources On a long term basis, our objectives are to maximize revenue generated by our existing properties, to further enhance the value of our segments that produce attractive current yield and long-term risk-adjusted returns to our stockholders and to generate sustainable and predictable cash flow from our operations to distribute to our stockholders. We believe the increased performance of our lodging and student housing segments as well as the repositioning of our retail and lodging properties will increase our operating cash flows. Our principal demands for funds have been and will continue to be: • • • • • • • to pay our expenses and the operating expenses of our properties; to make distributions to our stockholders; to service or pay-down our debt; to fund capital expenditures; to invest in properties; to fund joint ventures and development investments; and to fund our share repurchase program. Generally, our cash needs have been and will be funded from: • • • • • • income earned on our investment properties; interest income on investments and dividend and gain on sale income earned on our investment in marketable securities; distributions from our joint venture investments; proceeds from sales of properties; proceeds from borrowings on properties; and issuance of shares under our distribution reinvestment plan. Acquisitions and Dispositions of Real Estate Investments We acquired 21 and 13 properties during the years ended December 31, 2013 and 2012, respectively, which were funded with available cash, disposition proceeds, mortgage indebtedness, and the proceeds from the distribution reinvestment plan. We invested net cash of approximately $1,172.1 million and $447.9 million for these acquisitions. For the year ended December 31, 2013, we sold 313 properties, including 259 bank branches, 48 non-core properties, three multi-tenant retail properties, and three lodging properties, generating net sales proceeds of $2,101.3 million. We also contributed 14 retail properties to the IAGM joint venture. Comparatively for the year ended December 31, 2012 we sold 166 properties, including 143 bank branches, six non-core properties(two industrial properties, and four conventional multi-family properties), four multi-tenant retail properties, 13 lodging properties, generating net sales proceeds of $522.6 million. Distributions We declared cash distributions to our stockholders per weighted average number of shares outstanding during the period from January 1, 2013 to December 31, 2013 totaling $450.1 million or $0.50 per share, including amounts reinvested through the dividend reinvestment plan. During the year ended December 31, 2013, we paid cash distributions of $449.3 million. These cash distributions were paid with $422.8 million from our cash flow from operations, $20.1 million provided by distributions from unconsolidated entities, as well as $456.6 million from gain on sales of properties. 62 We continue to provide cash distributions to our stockholders from cash generated by our operations, distributions from unconsolidated entities, and gain on sales of properties. The following chart summarizes the sources of our cash used to pay distributions. Our primary source of cash is cash flow provided by operating activities from our investments as presented in our cash flow statement. We also include distributions from unconsolidated entities to the extent that the underlying real estate operations in these entities generate these cash flows. Gain on sales of properties relate to net profits from the sale of certain properties. Our presentation is not intended to be an alternative to our consolidated statements of cash flow and does not present all the sources and uses of our cash. The following table presents a historical view of our distribution coverage. 2013 2012 2011 2010 2009 Cash flow provided by operations Distributions from unconsolidated entities Gain on sales of properties (1) Distributions declared Excess (deficiency) $ $ 422,813 20,121 456,563 (450,106) 449,391 $ $ 456,221 31,710 40,691 (440,031) 88,591 $ $ 397,949 33,954 6,141 (429,599) 8,445 $ $ 356,660 31,737 55,412 (417,885) 25,924 $ $ 369,031 32,081 — (405,337) (4,225) (1) Excludes gains reflected on impaired values. Cash flow provided by operations for the year ended December 31, 2013 included lender pre-payment penalties paid of $17,307 primarily due to the disposition of our conventional multi-family properties. Cash flow provided by operations for the year ended December 31, 2012 included an increase in the accrued interest expense payable of $22,100 as compared to the year ended December 31, 2011. This was a result of a one-time change in timing of debt service payments from 2011 to 2012. The following table presents a historical summary of distributions declared, distributions paid and distributions reinvested. Distributions declared Distributions paid Distributions reinvested Stock Offering 2013 2012 2011 2010 2009 $ $ 450,104 449,253 181,630 $ 440,031 439,188 191,785 $ 429,599 428,650 199,591 $ 417,885 416,935 207,296 405,337 411,797 231,306 We have completed two public offerings of our common stock on a best efforts basis as well as offerings of common stock under our distribution reinvestment plan, or “DRP.” Under the DRP, as amended, the purchase price per share is equal to 100% of the “market price” of a share of the Company’s common stock until the shares become listed for trading. For reinvestments made after September 21, 2010 until December 29, 2011, the DRP purchase price was equal to $8.03 per share. After December 29, 2011 until December 19, 2012, the DRP purchase price was equal to $7.22 per share. After December 19, 2012 until December 27, 2013, the DRP purchase price was equal to $6.93 per share. After December 27, 2013 and until a new estimated value per share has been established, the DRP purchase price is $6.94 per share. We are permitted to offer shares pursuant to the DRP under the existing registration statement until the earlier of March 16, 2015 or the date we sell all $803.0 million worth of shares in the offering. At that time we would consider filing a new registration statement to permit the continued issuance of DRP shares. As of December 31, 2013, we had raised a total of approximately $8.9 billion of gross offering proceeds as a result of all of our offerings (inclusive of distribution reinvestments and net of redemptions). During the year ended December 31, 2013, we sold a total of 26,203,500 shares and generated $181.6 million in gross offering proceeds under the DRP, as compared to 26,571,399 shares and $191.8 million during the year ended December 31, 2012. Our average distribution reinvestment plan participation was 40% for the year ended December 31, 2013, compared to 44% for the year ended December 31, 2012. Share Repurchase Program Our board adopted an Amended and Restated Share Repurchase Program, which was effective from April 11, 2011 through January 31, 2012 (the “First Amended Program”). Our board subsequently adopted a Second Amended and Restated Share Repurchase Program, which was effective from February 1, 2012 through February 28, 2013 (the “Second Amended Program”). The Board of Directors voted to suspend the Second Amended Program on January 29, 2014. We anticipate reinstating the Share Repurchase Program later in the year. Under the Second Amended Program, we were permitted to repurchase shares of our common stock, on a quarterly basis, from the beneficiary of a stockholder that has died or from stockholders that had a “qualifying disability” or were confined to a 63 “long-term care facility” (together, referred to herein as “hardship repurchases”). We were authorized to repurchase shares at a price per share equal to 100% of the most recently disclosed estimated per share value of our common stock, which was equal to $6.93 per share as of December 19, 2012 and $6.94 per share as of December 27, 2013. Our obligation to repurchase any shares under the Second Amended Program was conditioned upon our having sufficient funds available to complete the repurchase. Our board had initially reserved $10.0 million per calendar quarter for the purpose of funding repurchases associated with death and $15.0 million per calendar quarter for the purpose of funding hardship repurchases. In addition, notwithstanding anything to the contrary, at no time during any consecutive twelve month period may the aggregate number of shares repurchased under the Second Amended Program have exceeded 5.0% of the aggregate number of issued and outstanding shares of our common stock at the beginning of the twelve month period. For any calendar quarter, if the number of shares accepted for repurchase would have caused us to exceed the 5.0% limit, repurchases for death would have taken priority over any hardship repurchases, in each case in accordance with the procedures, and subject to the funding limits, described in the Second Amended Program and summarized herein. If, on the other hand, the funds reserved for either category of repurchase under the Second Amended Program were insufficient to repurchase all of the shares for which repurchase requests had been received for a particular quarter, or if the number of shares accepted for repurchase caused us to exceed the 5.0% limit set forth therein, we repurchased the shares in the following order: (1) for death repurchases, we repurchased shares in chronological order, based upon the beneficial owner’s date of death; and (2) for hardship repurchases, we repurchased shares on a pro rata basis, up to, but not in excess of, the limits described herein; provided, that in the event that the repurchase would result in a stockholder owning less than 150 shares, we repurchased all of that stockholder’s shares. For the year ended December 31, 2013, we received requests for the repurchase of 5,516,204 shares of our common stock. Of these requests, we repurchased 5,772,899 shares of common stock for $40.0 million for the year ended December 31, 2013. In January 2014, we repurchased 1,077,829 shares of common stock for $7.5 million. There were no additional requests outstanding. The price per share for shares repurchased during the year ended December 31, 2013 was $6.93. The price per share for shares repurchased in January 2014 was $6.94. All repurchases were funded from proceeds from our distribution reinvestment plan. The table below summarizes the share repurchases. For the year ended December 31, 2013 January 2014 Total number of share repurchase requests Total number of shares repurchased (a) 5,516,204 — 5,772,899 1,077,829 Price per share at date of redemption $6.93 $6.94 Total value of shares repurchased (in thousands) $40,006 $7,480 (a) Shares are repurchased in the month subsequent to the quarter in which the requests were received. There were 1,334,524 share requests outstanding as of the month ended December 31, 2012, which were repurchased in January 2013 at a price of $6.93 per share. There were 1,077,829 share requests outstanding as of the month ended December 31, 2013, which were repurchased in January 2014 at a price of $6.94 per share. Borrowings The table below presents, on a consolidated basis, the principal amount, weighted average interest rates and maturity date (by year) on our mortgage debt as of December 31, 2013 (dollar amounts are stated in thousands). This table includes mortgage debt related to our properties classified as held for sale. 2014 2015 2016 2017 2018 Thereafter Total Maturing debt : Fixed rate debt (mortgage loans) Variable rate debt (mortgage loans) Weighted average interest rate on debt: Fixed rate debt (mortgage loans) Variable rate debt (mortgage loans) $ 138,323 303,292 698,588 1,139,951 506,711 901,409 3,688,274 $ 280,168 241,147 78,070 37,500 160,550 251,750 1,049,185 6.22% 5.72% 5.70% 5.86% 6.01% 5.51% 5.77% 2.81% 2.70% 2.83% 3.19% 2.27% 2.75% 2.70% 64 The debt maturity excludes mortgage discounts associated with debt assumed at acquisition of which a discount of $17.5 million, net of accumulated amortization, is outstanding as of December 31, 2013. Of the total outstanding debt, approximately $261.1 million is recourse to us. As of December 31, 2013, we had approximately $418 million and $544 million in mortgage debt maturing in 2014 and 2015, respectively. We are negotiating refinancing the remaining 2014 debt maturities at terms that will most likely be at lower rates. We currently anticipate that we will be able to repay or refinance all of our debt on a timely basis, and believe we have adequate sources of funds to meet our short term cash needs. However, there can be no assurance that we can obtain such refinancing on satisfactory terms. Volatility in the capital markets could expose us to the risk of not being able to borrow on terms and conditions acceptable to us for future acquisitions or refinancings. On May 8, 2013, we entered into a credit agreement with KeyBank National Association, JP Morgan Chase Bank National Association and other financial institutions to provide for a senior unsecured credit facility in the aggregate amount of $275 million. The credit facility consists of a $200 million senior unsecured revolving line of credit and a $75 million unsecured term loan. The line of credit is backed by a pool of unencumbered properties that needs to comply with certain covenants laid out in the credit agreement. The credit facility also contains an accordion feature that allows us to increase the aggregate availability thereunder to up to $600 million in certain circumstances. On November 5, 2013, we exercised the accordion feature and closed on a $100 million increase to our revolving line of credit and a $125 million increase to the term loan. Our total revolving line of credit is now $300 million and the total outstanding term loan is now $200 million. We also increased the accordion feature to $800 million. In all material respects, the terms and conditions of the loan agreements remained unchanged. As of December 31, 2013, we had borrowed the full amount of the term loan and had $299,820 available under the revolving line of credit. The revolver bears interest at a rate equal to LIBOR plus a margin ranging from 1.60% to 2.45%, while the rate on the term loan is equal to LIBOR plus a margin ranging from 1.50% to 2.45%. As of December 31, 2013, the interest rates of the revolving line of credit and unsecured term loan were 1.60% and 1.67%, respectively. The facility will assist us in bridging the timing of proceeds from disposing of non-strategic assets and acquiring retail, lodging and student housing assets. As of December 31, 2013, we were in compliance with all covenants and default provisions under the credit agreement, and our current business plan, which is based on our expectations of operating performance, indicates that we will be able to operate in compliance with these covenants and provisions for the next twelve months and beyond. Mortgage loans outstanding as of December 31, 2013 and 2012 were $4.7 billion and $5.8 billion, respectively, and had a weighted average interest rate of 5.09% and 5.10% per annum, respectively. For the years ended December 31, 2013 and 2012, we paid down, net of borrowings, $79.5 million and borrowed, net of paydowns, $18.3 million, respectively, secured by our portfolio of marketable securities. For the years ended December 31, 2013 and 2012, we borrowed approximately $1.2 billion and $0.7 billion, respectively, secured by mortgages on our properties and assumed $36.0 million and $232.0 million million, respectively, of debt at acquisition. Summary of Cash Flows Cash provided by operating activities Cash provided by (used in) investing activities Cash used in financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at end of year Year ended December 31, 2012 2011 2013 $ $ 422,813 922,624 (1,246,979) 98,458 220,779 319,237 $ $ 456,221 (118,162) (335,443) 2,616 218,163 220,779 $ $ 397,949 (286,896) (160,597) (49,544) 267,707 218,163 Cash provided by operating activities was $423, $456 and $398 million for the years ended December 31, 2013, 2012 and 2011, respectively, and was generated primarily from operating income from property operations, and interest and dividends. While the acquisition of lodging and student housing properties increased operating performance, the cash flows decreased from the years ended December 31, 2012 to 2013. For the year ended December 31, 2013, cash provided by operations was reduced by lender pre-payment penalties of $17.3 million primarily due to the disposition of our conventional multi-family properties. For the year ended December 31 2012, cash provided by operating activities included an increase in the accrued interest expenses payable of $22.1 million, which was a result of a one-time change in timing of debt service payments from 65 2011 to 2012. The increase in operating cash flows from the years ended December 31, 2011 to December 31, 2012 was primarily due to the improved performance of the lodging and multi-family segments as well as the 2012 increase in the accrued interest expense payable of $22.1 million. Cash provided by and (used in) investing activities was $923, $(118) and $(287) million for the years ended December 31, 2013, 2012 and 2011, respectively. The increase in cash provided by investing activities from the years ended December 31, 2012 to December 31, 2013 was primarily due to the proceeds from the sale of 313 properties in 2013. The sales of these properties resulted in gains of $442.6 million. The dispositions were offset by the acquisition of 21 properties in 2013. The decrease in cash used in investing activities from the years ended December 31, 2011 to December 31, 2012 was primarily due to the proceeds from the sale of 166 properties in 2012, offset by the acquisition of 13 properties in 2012. Cash used in financing activities was $1,247.0, $335.4 and $160.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. The increase in cash used in financing activities from December 31, 2012 to December 31, 2013 was primarily due to the payoffs of mortgage debt of $2.0 billion. The increase in cash used in financing activities from the years ended December 31, 2011 to December 31, 2012 was primarily due to a decrease in proceeds from our mortgage debt of $470 million in 2012, offset by the redemption of noncontrolling interest of $294 million in 2011. We consider all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements with a maturity of three months or less, at the date of purchase, to be cash equivalents. We maintain our cash and cash equivalents at financial institutions. The combined account balances at one or more institutions periodically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. Off Balance Sheet Arrangements Contractual Obligations The table below presents, on a consolidated basis, obligations and commitments to make future payments under debt obligations (including interest), lease agreements, and margin accounts on our marketable securities portfolio as of December 31, 2013 (dollar amounts are stated in thousands). Long-Term Debt Obligations Ground Lease Payments Margins Payable Payments due by period $ Total 6,174,586 34,664 59,681 $ Less than 1 year 1-3 years 3-5 years More than 5 years $ 660,036 780 59,681 $ 3,223,034 2,340 — $ 1,029,926 2,340 — 1,261,590 29,204 — Of the total long-term debt obligations, approximately $261.1 million is recourse to the Company. In 2013, we acquired two properties subject to the obligation to pay the seller additional monies depending on the operating performance of the properties. These earnout payments are based on a predetermined formula. Each earnout agreement has a time limit regarding the obligation to pay any additional monies. If at the end of the time period, operational performance targets have not been met, we will not have any further obligation. Assuming all the conditions are satisfied, as of December 31, 2013, we would be obligated to pay as much as $11.5 million in the future. The information in the above table does not reflect these contractual obligations. Unconsolidated Real Estate Joint Ventures Unconsolidated joint ventures are those where we have substantial influence over but do not control the entity. We account for our interest in these ventures using the equity method of accounting. For additional discussion of our investments in joint ventures. Please refer to Note 5 in our consolidated financial statements in Item 8 of this Annual Report on Form 10-K, which is incorporated by reference into this Item 7. Our ownership percentage and related investment in each joint venture is summarized in the following table. (Dollar amounts stated in thousands.) 66 Joint Venture Cobalt Industrial REIT II Brixmor/IA JV, LLC IAGM Retail Fund I, LLC Other unconsolidated entities Ownership % 36% (a) 55% Various $ $ Investment at December 31, 2013 83,306 77,551 90,509 12,552 263,918 (a) We have preferred membership interest and are entitled to a 11% preferred dividend in Brixmor/IA JV, LLC. Subsequent Events Subsequent to December 31, 2013, we purchased two retail assets for $26,150. On February 28, 2014, we purchased one lodging asset for $183,000. We also disposed of thirty non-core net lease assets on January 8, 2014 for a gross disposition price of $55,303. We then disposed of another twenty-eight non-core net lease assets on February 21, 2014 for a gross disposition price of $451,881. Finally, we disposed of another 151 non-core net lease assets on March 10, 2014 for a gross disposition price of $278,553 These assets were all classified as held for sale as of December 31, 2013. On March 12, 2014, we began the process of becoming fully self-managed by terminating our business management agreement, hiring all of our business manager’s employees, and acquiring the assets of our business manager necessary to perform the functions previously performed by the business manager. As a first step towards internalizing our property managers, we hired certain of their employees; assumed responsibility for performing certain significant property management functions; and amended our property management agreements to reduce our property management fees as a result of our assumption of such responsibilities. As the second step, on December 31, 2014, we expect to terminate our property management agreements, hire the remaining property manager employees and acquire the assets necessary to conduct the remaining functions performed by our property managers. As a consequence, beginning January 1, 2015, we expect to become fully self-managed. We will not pay an internalization fee or self-management fee in connection with these self-management transactions. These self-management transactions immediately eliminate the management and advisory fees paid to the business manager and at the end of 2014, we expect to eliminate the fees paid to our property managers when we terminate the property management agreements. As part of the self-management transactions, we agreed to reimburse our business manager and property managers for certain transaction and employee related expenses and directly retain affiliates of The Inland Group, Inc. for IT services, customer service and certain back-office services that were provided to us and managed by our business manager prior to the termination of the business management agreement. 67 Item 7A. Quantitative and Qualitative Disclosures About Market Risk We are subject to market risk associated with changes in interest rates both in terms of variable-rate debt and the price of new fixed-rate debt upon maturity of existing debt and for acquisitions. We are also subject to market risk associated with our marketable securities investments. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. If market rates of interest on all of the floating rate debt as of December 31, 2013 permanently increased by 1%, the increase in interest expense on the floating rate debt would decrease future earnings and cash flows by approximately $10.5 million. If market rates of interest on all of the floating rate debt as of December 31, 2013 permanently decreased by 1%, the decrease in interest expense on the floating rate debt would increase future earnings and cash flows by approximately $10.5 million. With regard to our variable rate financing, we assess interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. We maintain risk management control systems to monitor interest rate cash flow risk attributable to both of our outstanding or forecasted debt obligations as well as our potential offsetting hedge positions. The risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows. We monitor interest rate risk using a variety of techniques, including periodically evaluating fixed interest rate quotes on all variable rate debt and the costs associated with converting the debt to fixed rate debt. Also, existing fixed and variable rate loans that are scheduled to mature in the next year or two are evaluated for possible early refinancing and or extension due to consideration given to current interest rates. Refer to our Borrowings table in Item 7 of this Annual Report on Form 10-K for mortgage debt principal amounts and weighted average interest rates by year and expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes. We may use financial instruments to hedge exposures to changes in interest rates on loans secured by our properties. To the extent we do, we are exposed to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not possess credit risk. In the alternative, we seek to minimize the credit risk in derivative instruments by entering into transactions with what we believe are high-quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The following table summarizes interest rate swap contracts outstanding as of December 31, 2013 and 2012: Pay Fixed Rate Receive Floating Rate Index Notional Amount Fair Value as of December 31, 2013 Fair Value as of December 31, 2012 N/A $ — $ Date Entered Effective Date End Date March 28, 2008 March 28, 2008 March 27, 2013 October 15, 2010 November 1, 2010 April 23, 2013 January 7, 2011 January 7, 2011 January 2, 2013 January 7, 2011 January 7, 2011 January 2, 2013 September 1, 2011 September 29, 2012 September 29, 2014 3.32% 0.94% 0.91% 0.91% 0.79% 1 month LIBOR 1 month LIBOR 1 month LIBOR 1 month LIBOR N/A N/A N/A 1 month LIBOR $ 55,683 October 14, 2011 October 14, 2011 October 22, 2013 1.037% 1 month LIBOR July 1, 2008 July 1, 2008 January 1, 2015 4.68% 1 month LIBOR N/A 4,361 — (1) — (241) — (216) (243) (68) (1) — (507) (52) 0 $ 60,044 $ (458) $ (871) We have, and may in the future enter into, derivative positions that do not qualify for hedge accounting treatment. The gains or losses resulting from marking-to-market, these derivatives at the end of each reporting period are recognized as an increase or decrease in “interest expense” on our consolidated statements of income. In addition, we are, and may in the future be, subject to additional expense based on the notional amount of the derivative positions and a specified spread over LIBOR. Equity Price Risk We are exposed to equity price risk as a result of our investments in marketable equity securities. Equity price risk is based on volatility of equity prices and the values of corresponding equity indices. 68 Other than temporary impairments on our investments in marketable securities were $1.1, $1.9 and $24.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. We believe that our investments will continue to generate dividend income and we could continue to recognize gains on sale. However, due to general economic and credit market uncertainties it is difficult to project where the REIT market and our portfolio will perform in 2014. Although it is difficult to project what factors may affect the prices of equity sectors and how much the effect might be, the table below illustrates the impact of a 10% increase and a 10% decrease in the price of the equities held by us would have on the value of the total assets and the book value of the Company as of December 31, 2013 (dollar amounts stated in thousands). Equity securities $ 164,472 234,760 211,284 258,236 Cost Fair Value Hypothetical 10% Decrease in Market Value Hypothetical 10% Increase in Market Value 69 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Index Item 8. Consolidated Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm Financial Statements: Consolidated Balance Sheets at December 31, 2013 and 2012 Consolidated Statements of Operations and Other Comprehensive Income for the years ended December 31, 2013, 2012 and 2011 Consolidated Statements of Changes in Equity for the years ended December 31, 2013, 2012 and 2011 Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011 Notes to Consolidated Financial Statements Real Estate and Accumulated Depreciation (Schedule III) Schedules not filed: All schedules other than the ones listed in the Index have been omitted as the required information is inapplicable or the information is presented in the financial statements or related notes. Page 71 72 73 74 77 80 112 70 Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders Inland American Real Estate Trust, Inc.: We have audited the accompanying consolidated balance sheets of Inland American Real Estate Trust, Inc. (the Company) as of December 31, 2013 and 2012, and the related consolidated statements of operations and other comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2013. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedule III. These consolidated financial statements and financial statement schedule III are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule III based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Inland American Real Estate Trust, Inc. as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule III, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. /S/ KPMG LLP Chicago, Illinois March 13, 2014 71 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Balance Sheets (Dollar amounts in thousands, except share amounts) Assets: Investment properties: Land Building and other improvements Construction in progress Total Less accumulated depreciation Net investment properties Cash and cash equivalents Restricted cash and escrows Investment in marketable securities Investment in unconsolidated entities Accounts and rents receivable (net of allowance of $9,378 and $10,348) Goodwill and intangible assets, net Deferred costs and other assets Assets held for sale Total assets Liabilities: Debt Accounts payable and accrued expenses Distributions payable Intangible liabilities, net Other liabilities Liabilities held for sale Total liabilities Commitments and contingencies Stockholders’ Equity: Preferred stock, $.001 par value, 40,000,000 shares authorized, none outstanding Common stock, $.001 par value, 1,460,000,000 shares authorized, 909,855,173 and 889,424,572 shares issued and outstanding Additional paid in capital Accumulated distributions in excess of net loss Accumulated other comprehensive income Total Company stockholders’ equity Noncontrolling interests Total equity Total liabilities and equity December 31, 2013 December 31, 2012 $ 1,356,331 $ $ $ $ $ 6,849,321 196,754 8,402,406 (1,251,454) 7,150,952 319,237 137,980 242,819 263,918 65,234 176,998 108,597 1,196,729 9,662,464 4,153,099 174,751 37,911 59,097 90,809 880,156 5,395,823 — 909 8,063,517 (3,870,649) 71,128 4,264,905 1,736 4,266,641 $ 9,662,464 $ 1,882,715 8,679,105 337,384 10,899,204 (1,581,524) 9,317,680 220,779 104,027 327,655 253,799 121,773 298,828 115,343 — 10,759,884 6,006,146 142,835 37,059 80,769 150,325 — 6,417,134 — 889 7,921,913 (3,664,591) 84,414 4,342,625 125 4,342,750 10,759,884 See accompanying notes to the consolidated financial statements. 72 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Operations and Other Comprehensive Income (Dollar amounts in thousands, except per share amounts) Year ended December 31, 2013 Year ended December 31, 2012 Year ended December 31, 2011 $ 361,678 $ 347,647 $ Income: Rental income Tenant recovery income Other property income Lodging income Total income Expenses: General and administrative expenses Property operating expenses Lodging operating expenses Real estate taxes Depreciation and amortization Business management fee Provision for asset impairment Total expenses Operating income (loss) Interest and dividend income Other income Interest expense Equity in earnings (loss) of unconsolidated entities Gain, (loss) and (impairment) of investment in unconsolidated entities, net Realized gain, (loss) and (impairment) on securities, net Loss before income taxes Income tax (expense) benefit Net loss from continuing operations Net income (loss) from discontinued operations Net income (loss) Less: Net income attributable to noncontrolling interests Net income (loss) attributable to Company Net loss per common share, from continuing operations, basic and diluted Net income (loss) per common share, from discontinued operations, basic and diluted Net income (loss) per common share, basic and diluted Weighted average number of common shares outstanding, basic and diluted Other comprehensive income (loss): Unrealized gain (loss) on investment securities Unrealized loss on derivatives Reclassification adjustment for amounts recognized in net income Comprehensive income (loss) attributable to the Company $ $ $ $ $ $ $ $ 71,207 7,202 881,750 1,321,837 55,549 84,107 574,224 85,597 314,630 37,962 242,896 1,394,965 (73,128) $ 19,267 15,335 (212,263) 11,958 (3,473) 31,539 (210,765) (4,759) (215,524) $ 459,588 244,064 $ (16) $ $ 244,048 73,214 5,714 692,448 1,119,023 36,815 77,694 449,397 78,348 311,752 39,892 37,830 1,031,728 87,295 23,386 2,010 (209,353) 1,998 $ (12,322) 4,319 (102,667) (7,762) (110,429) $ 46,780 (63,649) $ (5,689) $ (69,338) $ (0.24) $ (0.13) $ 0.51 0.27 0.05 (0.08) 327,052 66,655 8,838 517,840 920,385 31,026 77,691 330,185 68,255 311,573 40,000 24,051 882,781 37,604 22,860 19,694 (215,790) (12,802) (106,023) (16,219) (270,676) 3,387 (267,289) (42,256) (309,545) (6,708) (316,253) (0.32) (0.05) (0.37) 899,842,722 879,685,949 858,637,707 17,622 (70) (30,838) 230,762 $ $ $ 45,372 (913) (1,993) (26,872) $ (24,950) (2,799) 20,267 (323,735) See accompanying notes to the consolidated financial statements. 73 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Changes in Equity (Dollar amounts in thousands) For the years ended December 31, 2013, 2012 and 2011 Number of Shares Common Stock Additional Paid-in Capital Accumulated Distributions in excess of Net Loss Accumulated Other Comprehensive Income (Loss) Non - controlling Interests Total Non - controlling Redeemable Interests 846,406,774 $ 846 $ 7,605,105 $ (2,409,370) $ 49,430 $ 17,381 $ 5,263,392 $ 264,132 Balance at January 1, 2011 Net income (loss) Unrealized loss on investment securities Unrealized loss on derivatives Reclassification adjustment for amounts recognized in net income Distributions declared Distributions to noncontrolling interest Adjustment to redemption value for noncontrolling interest Contributions from noncontrolling interests Redemption of noncontrolling interests Proceeds from distribution reinvestment program Share repurchase program Balance at December 31, 2011 — — — — — — — — — — — — — — — — — — — — — (13,793) — — 24,855,275 (2,074,689) 25 (2) 199,566 (14,998) (316,253) — (1,183) (317,436) 7,891 — — — (429,599) (24,950) (2,799) 20,267 — — — — — (24,950) (2,799) 20,267 (429,599) — — — — — — — — — — — — — — (660) (660) (7,891) (15,555) (29,348) 29,348 651 651 — (795) (795) (293,480) — — 199,591 (15,000) — — — 869,187,360 $ 869 $ 7,775,880 $ (3,155,222) $ 41,948 $ (161) $ 4,663,314 $ See accompanying notes to the consolidated financial statements. 74 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Changes in Equity (continued) (Dollar amounts in thousands) For the years ended December 31, 2013, 2012 and 2011 Balance at January 1, 2012 Net income (loss) Unrealized gain on investment securities Unrealized loss on derivatives Reclassification adjustment for amounts recognized in net income Distributions declared Disposal of noncontrolling interest Proceeds from distribution reinvestment program Share repurchase program Number of Shares Common Stock Additional Paid-in Capital Accumulated Distributions in excess of Net Loss Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total 869,187,360 $ 869 $ 7,775,880 $ (3,155,222) $ 41,948 $ (161) $ 4,663,314 — — — — — — 26,571,399 (6,334,187) — — — — — — 26 (6) — — — — — — 191,759 (45,726) (69,338) — 5,689 (63,649) — — — (440,031) — — — 45,372 (913) (1,993) — — — — — — — (3,806) (1,597) — — 45,372 (913) (1,993) (443,837) (1,597) 191,785 (45,732) Balance at December 31, 2012 889,424,572 $ 889 $ 7,921,913 $ (3,664,591) $ 84,414 $ 125 $ 4,342,750 See accompanying notes to the consolidated financial statements. 75 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Changes in Equity (continued) (Dollar amounts in thousands) For the years ended December 31, 2013, 2012 and 2011 Number of Shares Common Stock Additional Paid-in Capital Accumulated Distributions in excess of Net Loss Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total Balance at January 1, 2013 889,424,572 $ 889 $ 7,921,913 $ (3,664,591) $ 84,414 $ 125 $ 4,342,750 Net income Unrealized gain in investment securities Unrealized loss on derivatives Reclassification adjustment for amounts recognized in net income Distribution declared, net Contributions from noncontrolling interests, net Proceeds from distribution reinvestment program Share repurchase program — — — — — — 26,203,500 (5,772,899) — — — — — — 26 (6) — — — — — — 181,604 (40,000) 244,048 — — — (450,106) — — — — 17,622 (70) (30,838) — — — — 16 — — — — 244,064 17,622 (70) (30,838) (450,106) 1,595 1,595 — — 181,630 (40,006) Balance at December 31, 2013 909,855,173 $ 909 $ 8,063,517 $ (3,870,649) $ 71,128 $ 1,736 $ 4,266,641 See accompanying notes to the consolidated financial statements. 76 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Cash Flows (Dollar amounts in thousands) Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization Amortization of above and below market leases, net Amortization of debt premiums, discounts, and financing costs Straight-line rental income (Gain) loss on extinguishment of debt Gain on sale of properties, net Provision for asset impairment Equity in (income) loss of unconsolidated of entities Distributions from unconsolidated entities (Gain), loss and impairment of investment in unconsolidated entities, net Realized (gain) loss on investments in securities Impairment of investments in securities Other non-cash adjustments, net Changes in assets and liabilities: Accounts and rents receivable Deferred costs and other assets Accounts payable and accrued expenses Other liabilities Net cash flows provided by operating activities Cash flows from investing activities: Purchase of investment properties Acquired in-place and market-lease intangibles, net Acquired goodwill Capital expenditures and tenant improvements Investment in development projects Proceeds from sale of investment properties Purchase of investment securities Sale of investment securities Investment in unconsolidated entities Consolidation of joint venture Proceeds from the sale of and return of capital from unconsolidated entities Distributions from unconsolidated entities Contributions to unconsolidated entities Payment of leasing fees and franchise fees Payments from notes receivable 77 Year ended December 31, 2013 Year ended December 31, 2012 Year ended December 31, 2011 $ 244,064 $ (63,649) $ (309,545) 383,969 (2,659) 14,730 (8,147) 1,470 (456,563) 247,372 (11,958) 7,217 3,473 (32,591) 1,052 (386) (4,404) 348 40,579 (4,753) 422,813 (1,172,127) (12,457) (10,918) (66,640) (60,203) 2,101,277 (3,686) 106,143 — 2,705 40,243 20,121 (5,225) (5,700) 10,226 438,755 (2,271) 16,107 (11,010) (9,478) (40,691) 83,316 (1,998) 7,171 12,322 (6,218) 1,899 2,019 (603) (3,005) 33,205 350 456,221 (447,909) (15,838) (23,735) (89,578) (109,441) 522,583 (23,015) 30,095 — — 13,706 31,710 — (11,341) 26 439,759 (1,326) 20,430 (13,841) (10,848) (16,510) 163,641 12,802 9,849 106,023 (8,137) 24,356 (18,649) (855) (12,138) 7,492 5,446 397,949 (446,096) (18,231) — (71,157) (74,850) 246,317 (79,147) 33,558 (409) — 100,408 33,954 — (9,772) 18,443 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Cash Flows (Dollar amounts in thousands) Restricted escrows Other assets Net cash flows provided by (used in) investing activities Cash flows from financing activities: Proceeds from the distribution reinvestment program Shares repurchased Distributions paid Proceeds from mortgage debt and notes payable Payoffs of mortgage debt Principal payments of mortgage debt Proceeds from (payoffs of) margin securities debt, net Payment of loan fees and deposits Distributions paid to noncontrolling interests Distributions paid to noncontrolling redeemable interests Contributions from noncontrolling interests Redemption of noncontrolling interests Payments for contingent consideration Disposal of noncontrolling interests Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at end of year $ (12,194) $ (8,941) 922,624 (4,735) $ 9,310 (118,162) 181,630 (40,006) (449,253) 1,187,646 (1,978,075) (48,931) (79,461) (12,124) (16) — 1,611 — (10,000) — (1,246,979) 98,458 191,785 (45,732) (439,188) 709,280 (722,233) (34,735) 18,284 (7,501) (3,806) — — — — (1,597) (335,443) 2,616 220,779 319,237 $ 218,163 220,779 $ $ (6,567) (13,347) (286,896) 199,591 (15,000) (428,650) 1,179,594 (804,204) (36,036) 58,756 (12,473) (660) (7,891) 651 (294,275) — — (160,597) (49,544) 267,707 218,163 See accompanying notes to the consolidated financial statements. 78 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Consolidated Statements of Cash Flows (Dollar amounts in thousands) Year ended December 31, 2013 Year ended December 31, 2012 Year ended December 31, 2011 Supplemental disclosure of cash flow information: Purchase of investment properties $ (1,208,370) $ Tenant and real estate tax liabilities assumed at acquisition Assumption of mortgage debt at acquisition Non-cash premium (discount) on assumption of mortgage debt at acquisition Assumption of lender held escrows $ $ $ Cash paid for interest, net of capitalized interest of $7,607, $10,487, and $10,851 for 2013, 2012, and 2011 Supplemental schedule of non-cash investing and financing activities: Property surrendered in exchange for extinguishment of debt Property acquired through exchange of notes receivable Conversion of note receivable to equity interest Redemption value adjustment for noncontrolling redeemable interest Property acquired through transfer of equity interest Mortgage assumed by buyer upon disposal of property Properties contributed to an unconsolidated entity, net of related payables Consolidation of assets from joint venture Assumption of mortgage debt at consolidation of joint venture Liabilities assumed at consolidation of joint venture 552 35,963 702 (974) (1,172,127) $ (672,125) $ 492 232,017 (3,311) (4,982) (447,909) $ (448,169) 2,073 — — — (446,096) 270,683 $ 309,478 $ 296,065 $ 5,289 — — — — 7,683 99,092 89,164 88,503 5,616 $ 28,655 — — — — 60,659 — — — — 35,524 20,000 17,150 29,348 8,500 — — — — — See accompanying notes to the consolidated financial statements. 79 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2013 and 2011 (1) Organization Inland American Real Estate Trust, Inc. (the “Company”) was formed on October 4, 2004 (inception) to acquire and manage a diversified portfolio of commercial real estate, primarily retail properties and multi-family (both conventional and student housing), office, industrial and lodging properties, located in the United States. The Company is executing on a long-term portfolio strategy to focus specifically on the retail, lodging, and student housing asset classes. The Business Management Agreement (the “Agreement”) provides for Inland American Business Manager & Advisor, Inc. (the “Business Manager”), an affiliate of the Company’s sponsor, to be the business manager to the Company. On August 31, 2005, the Company commenced an initial public offering (the “Initial Offering”) of up to 500,000,000 shares of common stock (“Shares”) at $10.00 each and the issuance of 40,000,000 shares at $9.50 per share available to be distributed pursuant to the Company’s distribution reinvestment plan. On August 1, 2007, the Company commenced a second public offering (the “Second Offering”) of up to 500,000,000 shares of common stock at $10.00 per share and up to 40,000,000 shares at $9.50 per share available to be distributed through the Company’s distribution reinvestment plan. Effective April 6, 2009, the Company elected to terminate the Second Offering. On March 31, 2009, the Company filed a registration statement to register 50,000,000 shares to be issued under the distribution reinvestment plan or “DRP.” Under the DRP, as amended, the purchase price per share is equal to 100% of the “market price” of a share of the Company’s common stock until the shares become listed for trading. The accompanying consolidated financial statements include the accounts of the Company, as well as all wholly owned subsidiaries and consolidated joint venture investments. Wholly owned subsidiaries generally consist of limited liability companies (LLCs) and limited partnerships (LPs). The effects of all significant intercompany transactions have been eliminated. Each property is owned by a separate legal entity which maintains its own books and financial records and each entity's assets are not available to satisfy the liabilities of other affiliated entities, except as otherwise disclosed in Debt Note 10. At December 31, 2013, the Company owned a portfolio of 277 commercial real estate properties, in which the operating activity is reflected in continuing operations on the consolidated statements of operations and other comprehensive income for the year ended December 31, 2013, 2012 and 2011. Additionally, at December 31, 2013, the Company classified 224 properties as held for sale, in which the operating activity is reflected in discontinued operations on the consolidated statements of operations and other comprehensive income for the years ended December 31, 2013, 2012 and 2011. Comparatively, at December 31, 2012, the Company owned 794 properties and there were no properties classified as held for sale. The breakdown by segment of the 277 owned properties at December 31, 2013 is as follows: Segment Retail Lodging Student Housing Non-core Property Count 119 99 14 45 Square Ft /Rooms/ Beds 17,031,497 Square feet 19,337 Rooms 8,290 Beds 7,257,246 Square feet (2) Summary of Significant Accounting Policies The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Revenue Recognition The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. The determination of who is the owner, for accounting purposes, of the tenant improvements 80 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 determines the nature of the leased asset and when revenue recognition under a lease begins. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives which reduces revenue recognized over the term of the lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct their own improvements. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements; • • the uniqueness of the improvements; the expected economic life of the tenant improvements relative to the length of the lease; and • who constructs or directs the construction of the improvements. The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, the Company considers all of the above factors. No one factor, however, necessarily establishes its determination. Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable and is included as a component of accounts and rents receivable in the accompanying consolidated balance sheets. Revenue for lodging facilities is recognized when the services are provided. Additionally, the Company collects sales, use, occupancy and similar taxes at its lodging facilities which it presents on a net basis (excluded from revenues) on the consolidated statements of operations and other comprehensive income. The Company records lease termination income if there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and amounts due are considered collectible. The Company defers recognition of contingent rental income (i.e. percentage/excess rent) until the specified target that triggers the contingent rental income is achieved. Consolidation The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity (“VIE”). If the entity is a VIE, the determination of whether the Company is the primary beneficiary must be made. The primary beneficiary determination is based on a qualitative assessment as to whether the entity has (i) power to direct significant activities of the VIE and (ii) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The Company will consolidate a VIE if it is deemed to be the primary beneficiary, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The equity method of accounting is applied to entities in which the Company is not the primary beneficiary as defined in FASB ASC 810, or the entity is not a VIE and the Company does not have effective control, but can exercise influence over the entity with respect to its operations and major decisions. Reclassifications Certain reclassifications have been made to the 2012 and 2011 consolidated financial statements to conform to the 2013 presentations. The reclasses primarily represent reclassifications of revenue and expenses to discontinued operations as a result of the sales of investment properties and the reclassification of properties as held for sale in 2013. 81 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Capitalization and Depreciation Real estate is reflected at cost less accumulated depreciation. Ordinary repairs and maintenance are expensed as incurred. Depreciation expense is computed using the straight line method. Building and other improvements are depreciated based upon estimated useful lives of 30 years for building and improvements and 5-15 years for furniture, fixtures and equipment and site improvements. Tenant improvements are amortized on a straight line basis over the life of the related lease as a component of depreciation and amortization expense. Leasing fees are amortized on a straight-line basis over the life of the related lease as a component of depreciation and amortization expense. Loan fees are amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan as a component of interest expense. Direct and indirect costs that are clearly related to the construction and improvements of investment properties are capitalized. Costs incurred for property taxes and insurance are capitalized during periods in which activities necessary to get the property ready for its intended use are in progress. Interest costs are also capitalized during such periods. Additionally, the Company treats investments accounted for by the equity method as assets qualifying for interest capitalization provided (1) the investee has activities in progress necessary to commence its planned principal operations and (2) the investee’s activities include the use of such funds to acquire qualifying assets. Investment Properties Held for Sale In determining whether to classify an investment property as held for sale, the Company considers whether: (i) management has committed to a plan to sell the investment property; (ii) the investment property is available for immediate sale, in its present condition; (iii) the Company has initiated a program to locate a buyer; (iv) the Company believes that the sale of the investment property is probable; (v) the Company has received a significant non-refundable deposit for the purchase of the property; (vi) the Company is actively marketing the investment property for sale at a price that is reasonable in relation to its fair value; and (vii) actions required for the Company to complete the plan indicate that it is unlikely that any significant changes will be made to the plan. If all of the above criteria are met, the Company classifies the investment property as held for sale. On the day that these criteria are met, the Company suspends depreciation on the investment properties held for sale, including depreciation for tenant improvements and additions, as well as on the amortization of acquired in-place leases. The investment properties and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. Additionally, the operations for the periods presented are classified on the consolidated statements of operations and other comprehensive income as discontinued operations for all periods presented. As of December 31, 2013, 224 investment properties were classified as held for sale. As of December 31, 2012, no investment properties were classified as held for sale. Disposition of Real Estate The Company accounts for dispositions in accordance with FASB ASC 360-20, Real Estate Sales. The Company recognizes gain in full when real estate is sold, provided (a) the profit is determinable, that is, the collectability of the sales price is reasonably assured or the amount that will not be collectible can be estimated, and (b) the earnings process is virtually complete, that is, the seller is not obliged to perform significant activities after the sale to earn the profit. The Company records the transaction as discontinued operations for all periods presented in accordance with FASB ASC 205-20, Presentation of Financial Statements - Discontinued Operations. Impairment The Company assesses the carrying values of the respective long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable, such as a reduction in the expected holding 82 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 period of the asset. If it is determined that the carrying value is not recoverable because the undiscounted cash flows do not exceed carrying value, the Company records an impairment loss to the extent that the carrying value exceeds fair value. The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on our continuous process of analyzing each property and reviewing assumptions about uncertain inherent factors, as well as the economic condition of the property at a particular point in time. The use of projected future cash flows and related holding period is based on assumptions that are consistent with the estimates of future expectations and the strategic plan the Company uses to manage its underlying business. However assumptions and estimates about future cash flows and capitalization rates are complex and subjective. Changes in economic and operating conditions and the Company’s ultimate investment intent that occur subsequent to the impairment analyses could impact these assumptions and result in future impairment charges of the real estate properties. On a periodic basis, management assesses whether there are any indicators that the carrying value of the Company’s investments in unconsolidated entities may be other than temporarily impaired. To the extent impairment has occurred, the loss is measured as the excess of the carrying value of the investment over the fair value of the investment. The fair value of the underlying investment includes a review of expected cash flows to be received from the investee. Derivative Instruments In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company limits these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The Company has a policy of only entering into contracts with established financial institutions based upon their credit ratings and other factors. When viewed in conjunction with the underlying and offsetting exposure that the derivatives are designed to hedge, the Company has not sustained a material loss from those instruments nor does it anticipate any material adverse effect on its net income or financial position in the future from the use of derivatives. The Company recognizes all derivatives in the balance sheet at fair value. Additionally, the fair value adjustments will affect either equity or net income depending on whether the derivative instruments qualify as a hedge for accounting purposes and, if so, the nature of the hedging activity. When the terms of an underlying transaction are modified, or when the underlying transaction is terminated or completed, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income each period until the instrument matures. Any derivative instrument used for risk management that does not meet the criteria for hedge accounting is marked-to-market each period in the income statement. The Company does not use derivatives for trading or speculative purposes. Marketable Securities The Company classifies its investment in securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the security until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale. Investment in securities at December 31, 2013 and 2012 consists of common and preferred stock investments and investments in real estate related bonds that are all classified as available-for-sale securities and are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary, results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. When a security is impaired, the Company considers whether it has the ability and intent to hold the investment for a time sufficient to allow for any anticipated recovery in market value and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to period end and forecasted performance of the investee. 83 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Acquisition of Real Estate The Company allocates the purchase price of each acquired business (as defined in the accounting guidance related to business combinations, Accounting Standards Codification 805 - Business Combinations) between tangible and intangible assets at full fair value at the date of the transaction. Such tangible and intangible assets include land, building and improvements, acquired above market and below market leases, in-place lease value, customer relationships (if any), and any assumed financing that is determined to be above or below market terms. Any additional amounts are allocated to goodwill as required, based on the remaining purchase price in excess of the fair value of the tangible and intangible assets acquired and liabilities assumed. The allocation of the purchase price is an area that requires judgment and significant estimates. The Company engages a third party to assist in the allocation of the purchase price to land, building, and other assets as stated above. The Company determines whether any financing assumed is above or below market based upon comparison to similar financing terms for similar investment properties. The Company allocates a portion of the purchase price to the estimated acquired in-place lease costs based on estimated lease execution costs for similar leases as well as lost rent payments during assumed lease up period when calculating as if vacant fair values. The Company also evaluates each acquired lease based upon current market rates at the acquisition date and considers various factors including geographical location, size and location of leased space within the investment property, tenant profile, and the credit risk of the tenant in determining whether the acquired lease is above or below market lease costs. After an acquired lease is determined to be above or below market, the Company allocates a portion of the purchase price to such above or below acquired lease costs based upon the present value of the difference between the contractual lease rate and the estimated market rate. For below market leases with fixed rate renewals, renewal periods are included in the calculation of below market in-place lease values. The determination of the discount rate used in the present value calculation is based upon the “risk free rate” and current interest rates. This discount rate is a significant factor in determining the market valuation which requires judgment of subjective factors such as market knowledge, economics, demographics, location, visibility, age and physical condition of the property. The Company expenses acquisition costs of all transactions as incurred. All costs related to finding, analyzing and negotiating a transaction are expensed as incurred as a general and administrative expense, whether or not the acquisition is completed. Cash and Cash Equivalents The Company considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased with a maturity of three months or less, at the date of purchase, to be cash equivalents. The Company maintains its cash and cash equivalents at financial institutions. The combined account balances at one or more institutions periodically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. Restricted Cash and Escrows Restricted escrows primarily consist of cash held in escrow comprised of lenders’ restricted escrows of $41,112 and $36,278, post acquisition escrows of $6,463 and $12,435, and lodging furniture, fixtures and equipment reserves of $74,667 and $50,041 as of December 31, 2013 and 2012, respectively. As of December 31, 2013 and 2012, the restricted cash balance was $15,738 and $5,273, respectively. Goodwill The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed was recorded as goodwill. Goodwill has been recognized and allocated to specific properties in our lodging segment since each individual hotel property is an operating segment and considered a reporting unit. The Company tests goodwill for impairment annually or more frequently if events or changes in circumstances indicate impairment. In accordance with FASB ASC 350, Intangibles - Goodwill and Other, the Company tested goodwill for impairment by making a qualitative assessment of whether it is more likely than not the reporting unit's fair value is less than its carrying amount before application of the two-step goodwill impairment test. The two-step goodwill test was not performed for those assets 84 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 where it was concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. For those reporting units where this was not the case, the two step procedure detailed below was followed in order to determine goodwill impairment. In the first step, the Company compared the estimated fair value of each property with goodwill to the carrying value of the property’s assets, including goodwill. The fair value is based on estimated future cash flow projections that utilize discount and capitalization rates, which are generally unobservable in the market place (Level 3 inputs), but approximate the inputs the Company believes would be utilized by market participants in assessing fair value. The estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions. If the carrying amount of the property’s assets, including goodwill, exceeds its estimated fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. In this second step, if the implied fair value of goodwill is less than the carrying amount of goodwill, an impairment charge is recorded in an amount equal to that excess. The Company tested goodwill for impairment as of December 31, 2013, 2012 and 2011 resulting in no impairment recorded as of December 31, 2013, 2012 and 2011. Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. 85 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (3) Acquired Properties The Company records identifiable assets, liabilities, and goodwill acquired in a business combination at fair value. The Company acquired 21 properties, including 4 retail, 14 lodging, and 3 student housing properties for the year ended December 31, 2013 and 13 properties, including 4 retail, 7 lodging, and 2 student housing properties, for the year ended December 31, 2012, for a gross acquisition price of $1,216,600 and $726,550, respectively. The table below reflects acquisition activity for the year ended December 31, 2013. Property Westport Village South Frisco Village Shopping Center Walden Park Shopping Center West Creek Shopping Center Date 2/22/2013 5/9/2013 8/7/2013 9/26/2013 Segment Retail Retail Retail Retail Retail, subtotal Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging Lodging, subtotal Bohemian Hotel Celebration Andaz San Diego Hotel Residence Inn Denver Center Westin Galleria Houston Westin Oaks Houston Andaz Savannah Andaz Napa Valley Hyatt Regency Santa Clara Loews New Orleans Hotel Lorien Hotel & Spa Hotel Monaco Chicago Hotel Monaco Denver Hotel Monaco Salt Lake City Hyatt Key West Student Housing Student Housing Student Housing Student Housing, subtotal University House at TCU University House Fayetteville University House Tempe Total Gross Acquisition Price Square Feet / Rooms (unaudited) 169,603 Square Feet 227,175 Square Feet 33,637 Square Feet 53,338 Square Feet 115 Rooms 159 Rooms 228 Rooms 487 Rooms 406 Rooms 151 Rooms 141 Rooms 501 Rooms 285 Rooms 107 Rooms 191 Rooms 189 Rooms 225 Rooms 118 Rooms 118 Beds 654 Beds 637 Beds $33,550 34,350 9,300 15,100 $92,300 $17,500 53,000 80,000 120,000 100,000 43,000 72,000 93,000 74,500 45,250 56,000 75,000 58,000 76,000 $963,250 $15,850 42,200 103,000 $161,050 $1,216,600 2/7/2013 3/4/2013 4/17/2013 8/22/2013 8/22/2013 9/10/2013 9/20/2013 9/20/2013 10/11/2013 10/24/2013 11/1/2013 11/1/2013 11/1/2013 11/15/2013 3/7/2013 7/19/2013 8/13/2013 Additionally, during the second quarter 2013, the Company fully placed in service from construction in progress one student housing property, University House Fullerton (1,189 beds) and one non-core property, Cityville Cityplace (Haskell) (356 units), for $130,147 and $65,857, respectively. Subsequently, Cityville Cityplace (Haskell) was sold in the fourth quarter 2013. For properties acquired during the year ended December 31, 2013, the Company recorded revenue of $108,789 and net operating income of $34,053, not including related expensed acquisition costs in 2013. For properties acquired during the year ended December 31, 2012, the Company recorded revenue of $119,436 and net operating income of $19,207, not including related expensed acquisition costs in 2012. During the years ended December 31, 2013, 2012 and 2011, the Company incurred $2,987, $1,644 and $1,680, respectively, of acquisition and transaction costs that were recorded in general and administrative expenses on the consolidated statements of operations and other comprehensive income. 86 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (4) Discontinued Operations The Company sold 313 properties and surrendered one retail property to the lender (in satisfaction of non-recourse debt) for the year ended December 31, 2013 and sold 166 properties and surrendered one lodging property and 19 non-core properties (cross-collateralized by one loan) to the lender (in satisfaction of non-recourse debt) for the year ended December 31, 2012 for a gross disposition price of $2,039,060 and $603,500, respectively. For the year ended December 31, 2011 the Company surrendered three properties to the lender and sold 26 properties for a gross disposition price of $242,300. The table below reflects disposition activity for the year ended December 31, 2013. Segment Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core Non-core, subtotal Property Citizens Banks - 8 Properties Nantucket Apartments SunTrust - 27 Properties IDS Center Medical Office Building- 3 Properties Citizens Banks - 5 Properties SunTrust - 176 Properties Citizens Bank - 1 property Kato/Milmont Logan's Roadhouse SunTrust - 7 properties Triple net portfolio - 56 properties Apartment portfolio - 14 properties United Healthcare Green Bay MCP I, II & III Cityville Cityplace (Haskell) Citizens (CFG) Mellon Bank Bldg. Middleburg Crossing 95th & Cicero Stone Creek Crossing Baymont Inn - Jacksonville Homewood Suites - Durham Fairfield Inn-Ann Arbor Retail Retail Retail Retail, subtotal Lodging Lodging Lodging Lodging, subtotal Total Date Q1 2013 3/13/2013 3/22/2013 4/25/2013 5/2/2013 Q2 2013 Q2 2013 7/23/2013 8/23/2013 9/6/2013 Q3 2013 Q3 2013 Q3 2013 10/7/2013 12/6/2013 12/20/2013 12/31/2013 12/20/2013 12/27/2013 12/31/2013 2/6/2013 3/21/2013 8/15/2013 Gross Disposition Price $6,600 46,100 50,800 253,500 36,400 7,900 307,700 1,400 6,900 2,600 13,700 602,500 460,000 67,160 42,300 76,250 3,250 $1,985,060 $8,750 14,000 11,450 $34,200 $3,500 8,300 8,000 $19,800 $2,039,060 Sq Ft/Units/Rooms (unaudited) 23,428 Square Feet 394 Units 146,851 Square Feet 1,462,374 Square Feet 181,703 Square Feet 27,182 Square Feet 883,279 Square Feet 4,810 Square Feet 125,818 Square Feet 7,995 Square Feet 28,579 Square Feet 5,435,508 Square Feet 4,378 Units 400,000 Square Feet 336,183 Square Feet 356 Units 14,567 Square Feet 74,717 Square Feet 76,479 Square Feet 62,476 Square Feet 118 Rooms 96 Rooms 109 Rooms The Company classified 224 properties as held for sale as of December 31, 2013, and the operations are reflected in discontinued operations on the consolidated statements of operations and other comprehensive income for the year ended December 31, 2013, 2012 and 2011. As of December 31, 2012, there were no properties classified as held for sale. The Company has presented separately as discontinued operations in all periods the results of operations for all disposed and held for sale assets in consolidated operations. The components of the Company’s discontinued operations are presented below 87 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 and include the results of operations for the respective periods that the Company owned such assets or was involved with the operations of such ventures during the years ended December 31, 2013, 2012 and 2011. Revenues Depreciation and amortization expense Other expenses Provision for asset impairment Operating income from discontinued operations Interest expense and other Gain on sale of properties, net Gain (loss) on extinguishment of debt Gain (loss) on transfer of assets Net income (loss) from discontinued operations Year ended December 31, 2013 227,213 $ 69,336 45,177 4,476 108,224 (72,912) 442,577 (18,285) $ $ (16) $ $ 459,588 Year ended December 31, 2012 388,651 $ 127,002 109,105 45,485 107,059 (111,168) 39,236 9,478 2,175 46,780 Year ended December 31, 2011 443,188 $ 128,186 142,987 139,590 32,425 (101,532) 11,457 10,848 4,546 (42,256) $ $ For the years ended December 31, 2013, 2012 and 2011, the Company had proceeds from the sale of investment properties of $1,999,524, $545,132, and $246,317, respectively. (5) Investment in Partially Owned Entities Consolidated Entities On October 11, 2005, the Company entered into a joint venture with Minto (Delaware), LLC, or Minto Delaware who owned all of the outstanding equity of Minto Builders (Florida), Inc. (“MB REIT”) prior to October 11, 2005. Pursuant to the terms of the purchase agreement, the Company purchased 920,000 shares of common stock of MB REIT at a price of $1,276 per share for a total investment of approximately $1,172,000 in MB REIT. MB REIT was not considered a VIE as defined in FASB ASC 810, Consolidation, however the Company had a controlling financial interest in MB REIT, had the direct ability to make major decisions for MB REIT through its voting interests, and held key management positions in MB REIT. Therefore this entity was consolidated by the Company and the outside ownership interests were reflected as noncontrolling redeemable interests in the accompanying consolidated financial statements. On October 4, 2011, the Company bought out the common and preferred stock of the consolidated MB REIT joint venture for $293,480. No gain or loss was recorded due to this transaction because there was no change in control. The Company has ownership interests of 67% in various limited liability companies which own nine shopping centers. These nine shopping centers are considered held for sale as of December 31, 2013. The assets and liabilities associated with these nine shopping centers are classified separately as held for sale on the consolidated balance sheets for the most recent reporting period. The operations for the periods presented are classified on the consolidated statements of operations and other comprehensive income as discontinued operations for all periods presented. These entities are considered VIEs as defined in FASB ASC 810, and the Company is considered the primary beneficiary of each of these entities. Therefore, these entities are consolidated by the Company. The entities' agreements contain put/call provisions which grant the right to the outside owners and the Company to require these entities to redeem the ownership interests of the outside owners during future periods. Because the outside ownership interests are subject to a put/call arrangement requiring settlement for a fixed amount, these entities are treated as 100% owned subsidiaries by the Company with the amount of $47,762 as of December 31, 2013 and 2012 due to the outside owners reflected as a financing and included within held for sale other liabilities, in the accompanying consolidated financial statements. Interest expense is recorded on these liabilities in an amount generally equal to the preferred return due to the outside owners as provided in the entities agreements. During the fourth quarter 2013, the Company entered into two joint ventures to each develop a lodging property. The Company has ownership interests of 75% in each joint venture. These entities are considered VIEs as defined in FASB ASC 810. The Company determined that it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic 88 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 performance, as well as the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. As such, the Company has a controlling financial interest and is considered the primary beneficiary of each of these entities. Therefore, these entities are consolidated by the Company. For these VIEs where the Company is the primary beneficiary, the following are the liabilities of the consolidated VIEs, which are not recourse to the Company, and the assets that can be used only to settle those obligations. Net investment properties Other assets Total assets Mortgages, notes and margins payable Other liabilities Total liabilities Net assets Unconsolidated Entities December 31, 2013 December 31, 2012 $ $ $ $ $ $ 123,121 8,766 131,887 $ (77,873) $ (49,904) (127,777) $ $ 4,110 113,476 8,687 122,163 (84,291) (49,648) (133,939) (11,776) The entities listed below are owned by the Company and other unaffiliated parties in joint ventures. Net income, distributions and capital transactions for these properties are allocated to the Company and its joint venture partners in accordance with the respective partnership agreements. These entities are not consolidated by the Company and the equity method of accounting is used to account for these investments. Under the equity method of accounting, the net equity investment of the Company and the Company’s share of net income or loss from the unconsolidated entity are reflected in the consolidated balance sheets and the consolidated statements of operations and other comprehensive income. Entity Cobalt Industrial REIT II (a) D.R. Stephens Institutional Fund, LLC (b) Brixmor/IA JV, LLC (c) IAGM Retail Fund I, LLC (d) Other unconsolidated entities (e) Description Industrial portfolio Industrial assets Retail shopping centers Retail shopping centers Various real estate investments Ownership % 36% 90% (c) 55% Various Investment at Dec. 31, 2013 Investment at Dec. 31, 2012 $ $ $ 83,306 — 77,551 90,509 12,552 263,918 $ 102,599 34,541 90,315 — 26,344 253,799 (a) On June 29, 2007, the Company entered into a joint venture, Cobalt Industrial REIT II (“Cobalt”), to invest $149,000 in shares of common beneficial interest. The Company analyzed the venture and determined that it was not a VIE. The Company also considered its participating rights under the joint venture agreement and determined that such participating rights also require the agreement of Cobalt, which equates to shared decision making ability, and therefore do not give the Company control over the venture. As such, the Company has significant influence but does not control Cobalt. Therefore, the Company does not consolidate this entity, rather the Company accounts for its investment in the entity under the equity method of accounting. (b) On April 23, 2007, the Company entered into a joint venture, D.R. Stephens Institutional Fund, LLC, between the Company and Stephens Ventures III, LLC (“Stephens Member”) for the purpose of acquiring entities engaged in the acquisition, ownership, and development of real property. The Company’s initial capital contribution was limited to approximately $90,000 and the Stephens Member’s initial contribution was limited to approximately $10,000. During the year ended December 31, 2013, the Company recorded an other than temporary impairment of $5,528 for this joint 89 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 venture. On December 31, 2013, the Company entered into a definitive agreement and purchased Stephens Member's interest in D.R. Stephens Institutional Fund, LLC, which resulted in the Company obtaining control of the venture. Therefore, as of December 31, 2013, the Company consolidated this entity, recorded the assets and liabilities of the joint venture at fair value, and recorded a loss of $4,411 on the purchase of the investment. (c) On December 6, 2010, the Company entered into a Joint Venture with Brixmor Residual Holding LLC (“Brixmor”) (formerly Centro NP Residual Holding LLC), resulting in the creation of Brixmor/IA JV, LLC (formerly Centro/IA JV, LLC). The joint venture structure provides the Company with an equity stake of $121,534, a preferred capital position and preferred return of 11%. The Company analyzed the venture and determined that it was not a VIE. The Company also considered its participating rights under the joint venture agreement and determined that such participating rights also require the agreement of Brixmor, which equates to shared decision making ability, and therefore do not give the Company control over the venture. As such, the Company has significant influence but does not control Brixmor/IA JV, LLC. Therefore, the Company does not consolidate this entity, rather the Company accounts for its investment in the entity under the equity method of accounting. (d) On April 17, 2013, the Company entered into a joint venture, IAGM Retail Fund I, LLC ("IAGM"), with PGGM Private Real Estate Fund ("PGGM"), for the purpose of acquiring, owning, managing, supervising, and disposing of properties and sharing in the profits and losses from those properties and its activities. The Company initially contributed 13 multi-tenant retail properties totaling 2,109,324 square feet from its portfolio to IAGM for an equity interest of $96,788, and PGGM contributed $79,190. The gross disposition price was $409,280. On July 1, 2013, the Company contributed another multi-tenant retail property, South Frisco Village, for a gross disposition price of $34,350. The Company treated these dispositions as a partial sale, and the activity related to the disposed properties remains in continuing operations on the consolidated statements of operations and other comprehensive income, since the Company has an equity interest in IAGM, and therefore the Company has continued ownership interest in the properties. The Company recognized a gain on sale of $12,783 for the year ended December 31, 2013, which is included in other income on the consolidated statements of operations and other comprehensive income, and recorded an equity investment basis adjustment of $15,625. The Company amortizes the basis adjustment over 30 years consistent with the depreciation of the investee's underlying assets. The Company is the managing member of IAGM, responsible for the day-to-day activities and earns fees for venture management, leasing and other services provided to IAGM. An affiliate of the Company is responsible for and earns fees for property management. The Company analyzed the joint venture agreement and determined that it was not a variable interest entity. The Company also considered PGGM's participating rights under the joint venture agreement and determined that PGGM has the ability to participate in major decisions, which equates to shared decision making ability. As such, the Company has significant influence but does not control IAGM. Therefore, this joint venture is unconsolidated and accounted for using the equity method of accounting. (e) On July 7, 2011, a foreclosure sale was held on a hotel property which previously secured one of the Company’s notes receivable. The note had been in default and fully impaired since 2009. A trust, on behalf of the lender group, was the successful bidder at the foreclosure sale and thereby, the Company obtained an equity interest in the trust which is the 100% owner of the hotel property. The Company’s interest is not consolidated and the equity method is used to account for the investment. The Company recorded its equity interest at fair value and recognized a gain of $17,150 in 2011 on the conversion of the note reflected in other income on the consolidated statement of operations and other comprehensive income. On August 9, 2013, the hotel property was sold and during the fourth quarter 2013, the Company received its proceeds from the sale and recognized a gain of $6,983 Additionally, as of December 31, 2013, the Company recorded an impairment of $1,003 on a lodging joint venture and a gain of $487 on the sale of three lodging joint ventures. Gains and impairments of unconsolidated joint ventures are included in gain, loss and impairment of investment in unconsolidated entities, net, on the consolidated statement of operations and other comprehensive income. In total, the Company recorded an impairment of $6,532, $9,365 and $113,621 related to two, three and one of its unconsolidated entities for the years ended December 31, 2013, 2012 and 2011, respectively. 90 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Combined Financial Information The following table presents the combined financial information for the Company’s investment in unconsolidated entities. Balance Sheet: Assets: Real estate assets, net of accumulated depreciation Other assets Total Assets Liabilities and Equity: Mortgage debt Other liabilities Equity Total Liabilities and Equity Company’s share of equity Net excess (deficiency) of cost of investments over (under) the net book value of underlying net assets (net of accumulated depreciation of $783 and $1,714, respectively) Carrying value of investments in unconsolidated entities Balance as of December 31, 2013 Balance as of December 31, 2012 $ $ $ $ $ $ 1,558,312 272,810 1,831,122 1,135,630 96,217 599,275 1,831,122 278,745 (14,827) 263,918 $ $ $ $ $ $ 1,437,268 222,096 1,659,364 1,062,086 89,573 507,705 1,659,364 252,994 805 253,799 December 31, 2013 For the years ended December 31, 2012 December 31, 2011 $ 214,582 $ 202,155 $ 283,913 52,349 70,024 74,510 — 196,883 17,699 8,128 25,827 $ $ 63,233 83,324 76,149 553 223,259 (21,104) $ 9,484 (11,620) $ 91,965 111,699 159,539 21,017 384,220 (100,307) 9,219 (91,088) 11,958 $ 1,998 $ (12,802) Statement of Operations: Revenues Expenses: Interest expense and loan cost amortization Depreciation and amortization Operating expenses, ground rent and general and administrative expenses Impairments Total expenses Net income (loss) before gain on sale of real estate Gain on sale of real estate Net income (loss) Company’s share of: Net income (loss), net of excess basis depreciation of $529, $342, and $5 $ $ $ 91 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The unconsolidated entities had total third party mortgage debt of $1,135,630 at December 31, 2013 that matures as follows: Year 2014 2015 2016 2017 2018 Thereafter Amount 74,536 28,478 — 161,580 204,028 667,008 1,135,630 $ $ Of the total outstanding debt, approximately $23,000 is recourse to the Company. It is anticipated that the joint ventures will be able to repay or refinance all of their debt on a timely basis. (6) Transactions with Related Parties The following table summarizes the Company’s related party transactions for the years ended December 31, 2013, 2012 and 2011. General and administrative: General and administrative reimbursement (a) Loan servicing (b) Investment advisor fee (c) Total general and administrative to related parties Property management fees (d) Business manager fee (e) Loan placement fees (f) For the years ended Unpaid amounts as of December 31, 2013 December 31, 2012 December 31, 2011 December 31, 2013 December 31, 2012 $ $ $ $ $ $ 15,751 — 1,667 17,418 21,818 37,962 519 $ $ $ 12,189 147 1,768 14,104 27,406 39,892 1,241 $ $ $ 9,404 586 1,564 11,554 31,437 40,000 1,260 $ $ $ 4,834 — 115 4,949 67 8,836 — 4,017 — 150 4,167 75 9,910 — (a) The Business Manager and its related parties are entitled to reimbursement for general and administrative expenses of the Business Manager and its related parties relating to the Company’s administration. Unpaid amounts as of December 31, 2013 and 2012 are included in accounts payable and accrued expenses on the consolidated balance sheets. (b) A related party of the Business Manager provided loan servicing to the Company. (c) The Company pays a related party of the Business Manager to purchase and monitor its investment in marketable securities. (d) The property managers, entities owned principally by individuals who were related parties of the Business Manager, are entitled to receive property management fees up to a certain percentage of gross operating income (as defined). For the year ended December 31, 2013, the management fees by property type are as follows: (i) for any bank branch facility (office or retail), 2.50% of the gross income generated by the property; (ii) for any multi-tenant industrial property, 4.00% of the gross income generated by the property; (iii) for any multi-family property, 3.75% of the gross income generated by the property; (iv) for any multi-tenant office property, 3.75% of the gross income generated by the property; (v) for any multi-tenant retail property, 4.50% of the gross income generated by the property; (vi) for any single-tenant industrial property, 2.25% of the gross income generated by the property; (vii) for any single-tenant office property, 2.90% of the gross income generated by the property; and (viii) for any single-tenant retail property, 2.90% of the gross income generated by the property. 92 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 In addition to these fees, the property managers receive reimbursements of payroll costs for property level employees. The Company reimbursed the property managers and other affiliates $11,019, $14,055 and $15,752 for the year ended December 31, 2013, 2012 and 2011, respectively. Unpaid amounts as of December 31, 2013 and 2012 are included in other liabilities on the consolidated balance sheets. (e) After the Company’s stockholders have received a non-cumulative, non-compounded return of 5.00% per annum on their “invested capital,” the Company pays its Business Manager an annual business management fee of up to 1.00% of the “average invested assets,” payable quarterly in an amount equal to 0.25% of the average invested assets as of the last day of the immediately preceding quarter. For the years ended December 31, 2013, 2012 and 2011, average invested assets were $10,742,053, $11,470,745 and $11,515,550. The Company incurred a business management fee of $37,962, $39,892, and $40,000, which is equal to 0.37%, 0.35%, and 0.35% of average invested assets for the years ended December 31, 2013, 2012 and 2011, respectively. Pursuant to the letter agreement dated May 4, 2012, the business management fee shall be reduced in each particular quarter for investigation costs exclusive of legal fees incurred in conjunction with the SEC matter. During the years ended December 31, 2013 and 2012, the Company incurred $2,038 and $108 of investigation costs, resulting in a business management fee expense of $37,962 and $39,892 for the year ended December 31, 2013. In addition, effective July 30, 2013, the Company extended the agreement with the Business Manager through July 30, 2014 and provides that the Company may terminate the Business Manager agreement without cause or penalty upon 30 days' written notice to the Business Manager. Pursuant to the March 12, 2014 self- management transactions, both the Business Manager agreement and the May 4, 2012 letter agreement by the Business Manager have been terminated. Further information on the self-management transactions is included in Subsequent Events Note 17. (f) The Company pays a related party of the Business Manager 0.2% of the principal amount of each loan placed for the Company. Such costs are capitalized as loan fees and amortized over the respective loan term. As of December 31, 2013 and 2012, the Company had deposited $376 and $375, respectively, in Inland Bank and Trust, a subsidiary of Inland Bancorp, Inc., an affiliate of The Inland Real Estate Group, Inc. The Company is party to an agreement with an LLC formed as an insurance association captive (the “Captive”), which is wholly-owned by the Company and three related parties, Inland Real Estate Corporation (“IRC”), Inland Diversified Real Estate Trust, Inc., Inland Real Estate Income Trust, Inc., and a third party, Retail Properties of America ("RPAI"). The Company paid insurance premiums of $12,399, $12,217 and $9,627 for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013 and 2012, the Company held 899,820 shares of IRC valued at $9,466 and $7,540, respectively. (7) Investment in Marketable Securities Investment in marketable securities of $242,819 and $327,655 at December 31, 2013 and 2012, respectively, consists primarily of preferred and common stock investments in other REITs and certain real estate related bonds which are classified as available-for-sale securities and recorded at fair value. The cost basis net of impairments of available-for-sale securities was $171,450 and $242,370 at December 31, 2013 and 2012, respectively. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported as a separate component of comprehensive income until realized. The Company has net accumulated other comprehensive income related to its marketable securities portfolio of $71,369, $85,285 and $44,234, which includes gross unrealized losses of $3,189, $2,014 and $9,990 as of December 31, 2013, 2012 and 2011, respectively. Securities with gross unrealized losses have a related fair value of $23,394 as of December 31, 2013. The Company’s policy for assessing recoverability of its available-for-sale securities is to record a charge against net earnings when the Company determines that a decline in the fair value of a security drops below the cost basis and believes that decline to be other-than-temporary. Factors in the assessment of other-than-temporary impairment include determining whether (1) the Company has the ability and intent to hold the security until it recovers, and (2) the length of time and degree to which the security’s price has declined. During the year ended December 31, 2013, the Company recorded impairment of $1,052 compared to an impairment of $1,899 and $24,356 for the years ended December 31, 2012 and 2011 for other-than-temporary 93 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 declines on certain available-for-sale securities, which is included as a component of realized gain (loss) and (impairment) on securities, net on the consolidated statements of operations and other comprehensive income. Dividend income is recognized when earned. During the years ended December 31, 2013, 2012 and 2011, dividend income of $16,926, $20,757 and $18,586 was recognized and is included in interest and dividend income on the consolidated statements of operations and other comprehensive income. (8) Leases Operating Leases Minimum lease payments to be received under operating leases, excluding student housing and lodging properties and assuming no expiring leases are renewed, are as follows: Minimum Lease Payments 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Total $ $ 292,558 266,289 222,988 172,661 132,795 96,777 69,445 57,242 43,559 36,354 175,269 1,565,937 The remaining lease terms range from one year to eighty-one years. The majority of the revenue from the Company’s properties consists of rents received under long-term operating leases. Some leases provide for the payment of fixed base rent paid monthly in advance, and for the reimbursement by tenants to the Company for the tenant’s pro rata share of certain operating expenses including real estate taxes, special assessments, insurance, utilities, common area maintenance, management fees, and certain building repairs paid by the landlord and recoverable under the terms of the lease. Under these leases, the landlord pays all expenses and is reimbursed by the tenant for the tenant’s pro rata share of recoverable expenses paid. Certain other tenants are subject to net leases which provide that the tenant is responsible for fixed base rent as well as all costs and expenses associated with occupancy. Under net leases where all expenses are paid directly by the tenant rather than the landlord, such expenses are not included in the consolidated statements of operations and other comprehensive income. Under leases where all expenses are paid by the landlord, subject to reimbursement by the tenant, the expenses are included within property operating expenses and reimbursements are included in tenant recovery income on the consolidated statements of operations and other comprehensive income. 94 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (9) Intangible Assets and Goodwill The following table summarizes the Company’s identified intangible assets, intangible liabilities and goodwill as of December 31, 2013 and 2012. Intangible assets: Acquired in-place lease Acquired above market lease Acquired below market ground lease Advance bookings Accumulated amortization Net intangible assets Goodwill, net Total intangible assets, net Intangible liabilities: Acquired below market lease Acquired above market ground lease Accumulated amortization Net intangible liabilities Balance as of December 31, 2013 Balance as of December 31, 2012 $ $ $ $ 305,143 37,558 13,336 13,666 (234,818) 134,885 42,113 176,998 79,691 5,839 (26,433) 59,097 $ $ $ $ 573,711 41,276 10,536 8,410 (366,301) 267,632 31,196 298,828 101,430 5,839 (26,500) 80,769 The portion of the purchase price allocated to acquired above market lease costs and acquired below market lease costs are amortized on a straight line basis over the life of the related lease, including the respective renewal period for below market lease costs with fixed rate renewals, as an adjustment to rental income. Amortization pertaining to the above market lease costs was applied as a reduction to rental income. Amortization pertaining to the below market lease costs was applied as an increase to rental income. The portion of the purchase price allocated to acquired in-place lease intangibles is amortized on a straight line basis over the life of the related lease. The following table summarized the amortization related to acquired above and below market lease costs and acquired in-place lease intangibles for the years ended December 31, 2013, 2012 and 2011. Amortization of: Acquired above market lease costs Acquired below market lease costs Net rental income increase Acquired in-place lease intangibles For the years ended December 31, 2013 December 31, 2012 December 31, 2011 (3,098) $ 5,493 2,395 33,215 $ $ (3,828) $ 5,800 1,972 34,340 $ $ (4,393) 5,781 1,388 43,386 $ $ $ 95 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The following table presents the amortization during the next five years and thereafter related to intangible assets and liabilities at December 31, 2013. 2014 2015 2016 2017 2018 Thereafter Total Amortization of: Acquired above market lease costs $ Acquired below market lease costs Net rental income increase (decrease) Acquired in-place lease intangibles $ $ Advance bookings Acquired below market ground lease Acquired above market ground lease (10) Debt (5,767) $ 4,329 (5,342) $ 4,186 (5,135) $ 4,028 (1,530) $ 3,873 (1,183) $ 3,740 (1,456) $ 34,182 (20,413) 54,338 (1,438) $ (1,156) $ (1,107) $ 2,343 $ 28,077 4,380 $ 22,199 3,243 18,108 1,979 $ 9,581 — $ $ $ $ 2,557 6,666 — $ $ 32,726 13,530 — 33,925 98,161 9,602 (206) (206) (206) (206) (206) (5,679) (6,709) 140 140 140 140 140 4,059 4,759 During the years ended December 31, 2013 and 2012, the following debt transactions occurred: Balance at December 31, 2011 New financings Paydown of debt Assumed financings, net of discount Extinguishment of debt Amortization of discount/premium Balance at December 31, 2012 New financings Paydown of debt Assumed financings, net of discount Extinguishment of debt Amortization of discount/premium Debt classified as held for sale Balance at December 31, 2013 Mortgages Payable $ $ $ 5,902,712 867,651 (409,067) 228,706 (590,344) 6,488 6,006,146 1,317,821 (797,610) 127,590 (1,680,015) 5,929 (826,762) 4,153,099 Mortgage loans outstanding as of December 31, 2013 and 2012 were $4,737,459 and $5,894,443 and had a weighted average interest rate of 5.09% and 5.10% per annum, respectively. Of these mortgage loans outstanding at December 31, 2013, approximately $826,762 related to properties held for sale. Mortgage premium and discount, net was a discount of $17,459 and $27,439 as of December 31, 2013 and 2012. As of December 31, 2013, scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through December 2041, as follows: 96 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 2014 2015 2016 2017 2018 Thereafter Total As of December 31, 2013 $ $ 418,491 544,439 776,658 1,177,451 667,261 1,153,159 4,737,459 Weighted average interest rate 3.94% 4.38% 5.41% 5.78% 5.11% 4.90% The Company is negotiating refinancing debt maturing in 2014 with various lenders at terms that will allow us to pay lower interest rates. It is anticipated that the Company will be able to repay, refinance or extend the maturities and the Company believes it has adequate sources of funds to meet short term cash needs related to these refinancings. Of the total outstanding debt, approximately $261,130 is recourse to the Company. Some of the mortgage loans require compliance with certain covenants, such as debt service ratios, investment restrictions and distribution limitations. As of December 31, 2013, the Company was in compliance with all mortgage loan requirements except six loans with a carrying value of $116,910; none of which are cross collateralized with any other mortgage loans or recourse to the Company. The original stated maturities of the mortgage loans in default are reflected as follows: $12,100 in 2011, $11,000 in 2012, $20,115 in 2016 and $73,695 in 2017. Line of Credit On May 8, 2013, the Company entered into a credit agreement with KeyBank National Association, JP Morgan Chase Bank National Association and other financial institutions to provide for a senior unsecured credit facility in the aggregate amount of $275,000. The credit facility consisted of of a $200,000 senior unsecured revolving line of credit and a $75,000 unsecured term loan. On November 5, 2013, the Company closed on a $100,000 increase to its revolving line of credit and a $125,000 increase to the term loan. The total revolving line of credit is now $300,000 and the total outstanding term loan is now $200,000. The Company also increased the accordion feature to $800,000. In all material respects, the terms and conditions of the loan agreements remained unchanged. The senior unsecured revolving line of credit matures on May 7, 2016 and the unsecured term loan matures on May 7, 2017. The Company has a one year extension option on the revolver which it may exercise as long as there is no existing default, it is in compliance with all covenants, a 60-day notice has been provided and it pays an extension fee equal to 0.20% of the commitment amount being extended. As of December 31, 2013, the terms of the credit agreement stipulate: • monthly interest-only payments at a rate of LIBOR plus a margin ranging from 1.60% to 2.45% on the outstanding balance of the revolver depending on leverage levels, and at a rate of LIBOR plus a margin ranging from 1.50% to 2.45% on the outstanding balance of the term loan depending on leverage levels; • • quarterly unused fees on the revolver ranging from 0.25% to 0.35%, depending on the undrawn amount; the requirement for a pool of unencumbered assets to support the facility, subject to certain covenants and minimum requirements related to the value, debt service coverage, and number of properties included in the collateral pool. This full recourse credit agreement requires compliance with certain covenants including: a minimum net worth requirement, restrictions on indebtedness, a distribution limitation and investment restrictions. It also contains customary default provisions including the failure to timely pay debt service payable thereunder, the failure to comply with the Company's financial and operating covenants and the failure to pay when amounts outstanding under the credit agreement become due. In the event the lenders declare a default, as defined in the credit agreement, this could result in an acceleration of all outstanding borrowings on the credit facility. As of December 31, 2013, management believes the Company was in compliance with all of the covenants and default provisions under the credit agreement. As of December 31, 2013, the interest rates of the revolving line of credit and unsecured term loan were 1.60% and 1.67%, respectively. Upon closing the credit agreement, and subsequently upon expansion of the line, the Company borrowed the full amount of the term loan which remains outstanding as of December 31, 2013. As of December 31, 2013, the Company had $299,820 available under the revolving line of credit. 97 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Margins Payable The Company has purchased a portion of its securities through margin accounts. As of December 31, 2013 and 2012, the Company recorded a payable of $59,681 and $139,142, respectively, for securities purchased on margin. At December 31, 2013 and 2012, the interest rate on the margin loans was 0.516% and 0.560%, respectively. Interest expense in the amount of $495, $756 and $473 was recognized in interest expense on the consolidated statements of operations and other comprehensive income for the years ended December 31, 2013, 2012 and 2011, respectively. (11) Fair Value Measurements In accordance with FASB ASC 820, Fair Value Measurement and Disclosures, the Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: • Level 1 - Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has estimated the fair value of its financial and non-financial instruments using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that would be realized upon disposition. For assets and liabilities measured at fair value on a recurring basis, quantitative disclosure of the fair value for each major category of assets and liabilities is presented below: Fair Value Measurements at December 31, 2013 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Using Significant Other Observable Inputs (Level 2) Using Significant Other Unobservable Inputs (Level 3) $ 234,760 — 234,760 $ — $ — $ — $ 8,059 $ 8,059 (458) $ (458) $ — — — — — Available-for-sale real estate equity securities Real estate related bonds Total assets Derivative interest rate instruments Total liabilities $ $ $ $ 98 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Fair Value Measurements at December 31, 2012 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Using Significant Other Observable Inputs (Level 2) Using Significant Other Unobservable Inputs (Level 3) Available-for-sale real estate equity securities Real estate related bonds Total assets Derivative interest rate instruments Total liabilities $ $ $ $ Level 1 $ 304,811 — 304,811 $ — $ — $ — $ 22,844 22,844 $ (871) $ (871) $ — — — — — At December 31, 2013 and 2012, the fair value of the available for sale real estate equity securities have been estimated based upon quoted market prices for the same or similar issues when current quoted market prices are available. Unrealized gains or losses on investment are reflected in unrealized gain (loss) on investment securities in other comprehensive income on the consolidated statements of operations and other comprehensive income. Level 2 To calculate the fair value of the real estate related bonds and the derivative interest rate instruments, the Company primarily uses quoted prices for similar securities and contracts. For the real estate related bonds, the Company reviews price histories for similar market transactions. For the derivative interest rate instruments, the Company uses inputs based on data that is observed in the forward yield curve which is widely observable in the marketplace. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements which utilizes Level 3 inputs, such as estimates of current credit spreads. However, as of December 31, 2013 and 2012, the Company has assessed that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of December 31, 2013, the Company had entered into interest rate swap agreements with a notional value of $60,044. Level 3 Non-Recurring Measurements The following table summarizes activity for the Company’s assets measured at fair value on a non-recurring basis. The Company recognized certain non-cash gains and impairment charges to reflect the investments at their fair values for the years ended December 31, 2013 and 2012. The asset groups that were reflected at fair value through this evaluation are: As of December 31, 2013 As of December 31, 2012 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Total Impairment Losses (Gain) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Total Impairment Losses 248,768 $ 248,230 $ 115,776 $ 37,830 1,795 13,108 29,923 293,594 $ 1,004 (5,334) 4,411 248,311 $ 36,469 — — 152,245 $ 5,165 — — 42,995 Investment properties Investment in unconsolidated entities Notes receivable Consolidated investment Total $ $ 99 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Investment Properties During the years ended December 31, 2013 and 2012, the Company identified certain properties which may have a reduction in the expected holding period and reviewed the probability of these assets' dispositions. The Company’s estimated fair value relating to the investment properties’ impairment analysis was based on a comparison of letters of intent or purchase contracts, broker opinions of value and ten-year discounted cash flow models, which includes contractual inflows and outflows over a specific holding period. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. Capitalization rates ranging from 6.25% to 10.50% and discount rates ranging from 6.75% to 12.00% were utilized in the model and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. During the year ended December 31, 2013, the Company also identified one property, a large single tenant office property, in which it was exploring a potential disposition. After the Company began exploring a potential sale of the property, it became aware of circumstances in which the tenant would reduce the space they occupied. Although the lease does not expire until 2016, the Company analyzed various leasing and sale scenarios for the single tenant property. The Company’s estimated fair value relating to the investment properties’ impairment analysis was based on ten-year discounted cash flow models, which includes contractual inflows and outflows over a specific holding period. The cash flows consist of observable inputs such as contractual revenues and unobservable inputs such as forecasted revenues and expenses. These unobservable inputs are based on market conditions and the Company’s expected growth rates. The capitalization rates ranging from 6.25% to 7.75% and discount rates ranging from 7.00% to 8.50% were utilized in this model and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. Based on the probabilities assigned to such scenarios, it was determined the property was impaired and therefore, written down to fair value. An impairment charge of $147,480 was recorded for this asset. For the years ended, December 31, 2013, 2012 and 2011, the Company recorded an impairment of investment properties of $248,230, $37,830 and $24,051, respectively. Certain properties have been disposed and were impaired prior to disposition and the related impairment charge of $4,476, $45,485 and $139,590 was included in discontinued operations for the years ended December 31, 2013, 2012 and 2011, respectively. Investment in Unconsolidated Entities For the years ended December 31, 2013 and 2012, the Company identified certain investments in unconsolidated entities that may be other than temporarily impaired. The Company's estimated fair value relating to the investment in unconsolidated entities' impairment analysis was based on analyzing each joint venture partner's respective waterfall distribution, letters of intent or purchase contracts, broker opinions of value, and expected future cash distributions of the Company's interest in the underlying assets of the investment using a net asset value model. The net asset value model utilizes an income capitalization analysis and consists of unobservable inputs such as forecasted net operating income and capitalization rates based on market conditions. Capitalization rates ranging from 6.50% to 8.25% were utilized in the model and are based upon observable rates that the Company believes to be within a reasonable range of current market rates. For the years ended, December 31, 2013, 2012 and 2011, the Company recorded an impairment of investments in unconsolidated entities of $6,532, $9,365, and $113,621, respectively. Notes Receivable For the year ended December 31, 2013, the Company determined that a re-evaluation of its notes receivable impairment allowance was appropriate because there had been a significant change in the amount of an impaired note's expected future cash flows. The Company assessed the note receivable impairment allowance by estimating the value of the underlying collateral using comparable property sales, which are observable in the market. As a result, the Company adjusted its notes receivable impairment allowance and recorded a gain of $5,334 for year ended December 31, 2013. For the years ended December 31, 2012 and 2011, the Company recorded no impairment of notes receivables. Impairment of notes receivable is included in provision for asset impairment on the consolidated statement of operations and other comprehensive income. 100 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Consolidated Investment The Company valued the consolidating properties using broker opinions of value and a discounted cash flow model, including capitalization rates between 7.0% and 7.5% and discount rates between 8.0% and 9.0%, which are based upon observable rates that the Company believes to be within a reasonable range of current market rates. The Company estimated fair value of the debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments. These factors resulted in a loss on a consolidated investment of $4,411 for the year ended December 31, 2013. Financial Instruments not Measured at Fair Value The table below represents the fair value of financial instruments presented at carrying values in our consolidated financial statements as of December 31, 2013 and December 31, 2012. December 31, 2013 December 31, 2012 Mortgage and notes payable Line of credit Margins payable $ Carrying Value 4,737,459 $ 200,180 59,681 Estimated Fair Value 4,748,276 200,180 59,681 Carrying Value $ 5,894,443 $ Estimated Fair Value 5,790,201 — 139,142 — 139,142 The Company estimates the fair value of its debt instruments using a weighted average effective interest rate of 4.95% per annum. The assumptions reflect the terms currently available on similar borrowing terms to borrowers with credit profiles similar to the Company's. The Company has determined that its debt instrument valuations are classified in Level 2 of the fair value hierarchy. (12) Income Taxes The Company is qualified and has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended, for federal income tax purposes commencing with the tax year ending December 31, 2005. Since the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal income tax on taxable income that is distributed to stockholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distributes at least 90% of its REIT taxable income (subject to certain adjustments) to its stockholders (the "90% Distribution Requirement"). If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, property or net worth and federal income and excise taxes on its undistributed income. The Company has elected to treat certain of its consolidated subsidiaries, and may in the future elect to treat newly formed subsidiaries, as taxable REIT subsidiaries pursuant to the Internal Revenue Code. Taxable REIT subsidiaries may participate in non-real estate related activities and/or perform non-customary services for tenants and are subject to federal and state income tax at regular corporate tax rates. The Company’s hotels are leased to certain of the Company’s taxable REIT subsidiaries. Lease revenue from these taxable REIT subsidiaries and its wholly-owned subsidiaries is eliminated in consolidation. The components of income tax expense for the years ended December 31: Current Deferred Total income expense (benefit) Federal 2013 State Total Federal 2012 State Total Federal 2011 State Total $ 576 $ 2,477 $ 3,053 $ 267 $ 2,594 $ 2,861 $ 110 $ 588 $ 698 1,522 184 1,706 4,412 489 4,901 (3,837) (248) (4,085) $ 2,098 $ 2,661 $ 4,759 $ 4,679 $ 3,083 $ 7,762 $ (3,727) $ 340 $ (3,387) 101 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 Deferred tax assets and liabilities are included within deferred costs and other assets and other liabilities in the consolidated balance sheets, respectively. The components of the deferred tax assets and liabilities at December 31, 2013 and 2012 were as follows: Net operating loss Deferred income Basis difference on property Depreciation expense Miscellaneous Total deferred tax assets Less: Valuation allowance Net deferred tax assets Deferred tax liabilities 2013 2012 9,236 $ 2,389 35,362 986 431 48,404 (42,590) 5,814 $ — $ 11,618 2,657 35,263 879 (190) 50,227 (42,707) 7,520 — $ $ $ Federal net operating loss carryforwards amounting to $9,236 begin to expire in 2023, if not utilized by then. Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including future reversal of existing taxable temporary differences, future projected taxable income, and tax-planning strategies. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company has considered various factors, including future reversals of existing taxable temporary differences, projected future taxable income and tax-planning strategies in making this assessment. Based upon tax-planning strategies and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowance of $42,590 at December 31, 2013. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. Uncertain Tax Positions The Company had no unrecognized tax benefits as of or during the three year period ended December 31, 2013. The Company expects no significant increases or decreases in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2013. The Company has no material interest or penalties relating to income taxes recognized in the consolidated statements of operations and other comprehensive income for the years ended December 31, 2013, 2012 and 2011 or in the consolidated balance sheets as of December 31, 2013 and 2012. As of December 31, 2013, the Company’s 2011, 2010, and 2009 tax years remain subject to examination by U.S. and various state tax jurisdictions. Distributions For federal income tax purposes, distributions may consist of ordinary income, qualifying dividends, return of capital, capital gains or a combination thereof. Distributions to the extent of the Company’s current and accumulated earnings and profits for federal income tax purposes are taxable to the recipient as ordinary income. Distributions in excess of these earnings and profits will constitute a non-taxable return of capital rather than a dividend and will reduce the recipient’s basis in the shares. 102 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 A summary of the average taxable nature of the Company’s common distributions paid for each of the years in the three year period ended December 31, 2013 is as follows: Ordinary income Return of capital Total distributions per share IRS Closing Agreement 2013 2012 2011 $ $ 0.50 — 0.50 $ $ 0.07 0.43 0.50 $ $ 0.19 0.31 0.50 The Company has identified certain distribution and shareholder reimbursement practices that may have caused certain dividends to be treated as preferential dividends, which cannot be used to satisfy the 90% Distribution Requirement. The Company has also identified the ownership of certain assets that may have violated a REIT qualification requirement that prohibits a REIT from owning "securities" of any one issuer in excess of 5% of the REIT's total assets at the end of any calendar quarter (the "5% Securities Test"). In order to provide greater certainty with respect to the Company's qualification as a REIT for federal income tax purposes, management concluded that it was in the best interest of the Company and its stockholders to request closing agreements from the Internal Revenue Service ("IRS") for both the Company and MB REIT with respect to such matters. Accordingly, on October 31, 2012, MB REIT filed a request for a closing agreement with the IRS. Additionally, the Company filed a separate request for a closing agreement on its own behalf on March 7, 2013. The Company identified certain aspects of the calculation of certain dividends on MB REIT's preferred stock and also aspects of the operation of certain "set aside" provisions with respect to accrued but unpaid dividends on certain classes of MB REIT's preferred stock that may have caused certain dividends to be treated as preferential dividends. In the case of the Company, management identified certain aspects of the operation of the Company's dividend reinvestment plan and distribution procedures and also certain reimbursements of shareholder expenses that may have caused certain dividends to be treated as preferential dividends. If these practices resulted in preferential dividends, the Company and MB REIT would not have satisfied the 90% Distribution Requirement and thus may not have qualified as REITs, which would result in substantial corporate tax liability for the years in which the Company or MB REIT failed to qualify as a REIT. In addition, the Company and MB REIT made certain overnight investments in bank commercial paper. While the Internal Revenue Code does not provide a specific definition of “cash item”, the Company believes that overnight commercial paper should be treated as a “cash item”, which is not treated as a “security” for purposes of the 5% Securities Test. If treated as a "security", the bank commercial paper would appear to have represented more than 5% of the Company's and MB REIT's total assets at the end of certain calendar quarters. In the event this commercial paper is treated as a "security", the Company anticipates that it would be required to pay corporate income tax on the income earned with respect to the portion of the commercial paper that violated the 5% Securities Test. The Company can provide no assurance that the IRS will accept the Company's or MB REIT's closing agreement requests. Even if the IRS accepts those requests, the Company and MB REIT may be required to pay a penalty. The Company cannot predict whether such a penalty would be imposed or, if so, the amount of the penalty. The Company believes that (i) the IRS will enter into closing agreements with the Company and MB REIT and (ii) the Business Manager has agreed to pay any penalty the IRS requires as a condition of granting the closing agreements. As noted above, the Company can provide no assurance that the IRS will enter into closing agreements with the Company and MB REIT or that the Company and MB REIT will not be liable for any penalty imposed in connection with those closing agreements. Management believes based on the currently available information, that such penalty, if any, will not have a material adverse effect on the financial statements of the Company. 103 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (13) Segment Reporting The Company's long-term portfolio strategy is to focus on three asset classes - retail, lodging, and student housing. During the year ended December 31, 2013, the Company has executed on this strategy by disposing of 313 non-strategic assets as well as classifying 224 non-strategic assets as held for sale. Beginning on September 30, 2013, the Company restated its business segments to: Retail, Lodging, Student Housing, and Non-core. Net operating income for the year December 31, 2012 and 2011 have been restated to reflect the change in business segments. The non-core segment includes office properties, industrial properties, bank branches, retail single tenant properties, and a conventional multi-family property. The Company has concentrated its efforts on driving portfolio growth in the multi-tenant retail, student housing and lodging segments to enhance the long-term value of each segment's portfolio and respective platforms. For its non-core properties, the Company strives to improve individual property performance to increase each property’s value. The Company evaluates segment performance primarily based on net operating income. Net operating income of the segments exclude interest expense, depreciation and amortization, general and administrative expenses, net income of noncontrolling interest and other investment income from corporate investments. The non-segmented assets primarily include the Company’s cash and cash equivalents, investment in marketable securities, construction in progress, investment in unconsolidated entities and notes receivable. For the year ended December 31, 2013, approximately 9% of the Company’s rental revenue (excluding lodging and student housing) from continuing operations, included in the non-core segment, was generated by two properties leased to AT&T, Inc. We also own a third property that is leased to AT&T, Inc., but the property is classified as held for sale as of December 31, 2013. As a result of the concentration of revenue generated from these properties, if AT&T were to cease paying rent or fulfilling its other monetary obligations, the Company could have significantly reduced rental revenues or higher expenses until the defaults were cured or the properties were leased to a new tenant or tenants. 104 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The following table summarizes net operating income by segment as of and for the year ended December 31, 2013. Rental income Straight line rent adjustment Tenant recovery income Other property income Lodging income Total income Operating expenses Net operating income Non allocated expenses (a) Other income and expenses (b) Earnings from unconsolidated entities (c) Provision for asset impairment (d) Net loss from continuing operations Income from discontinued operations, net Less: net income attributable to noncontrolling interests Net income attributable to Company Balance Sheet Data: Real estate assets, net (e) Non-segmented assets (f) Total Assets Capital expenditures Total 355,946 5,732 71,207 7,202 881,750 1,321,837 743,928 577,909 (408,141) (150,881) 8,485 (242,896) (215,524) 459,588 (16) 244,048 7,131,196 2,531,268 9,662,464 66,640 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Retail Lodging Student Housing Non - core $ $ $ $ 215,134 5,198 64,930 3,822 — 289,084 93,626 195,458 $ $ $ $ — $ — — — 881,750 881,750 609,480 272,270 $ $ $ 55,773 373 521 2,809 — 59,476 24,014 35,462 $ $ $ $ 85,039 161 5,756 571 — 91,527 16,808 74,719 $ 2,207,062 $ 3,492,657 $ 639,848 $ 791,629 $ 12,736 $ 49,781 $ 2,316 $ 1,807 (a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization. (b) Other income and expenses consist of interest and dividend income, interest expense, other income and expenses, realized gain, (loss) and (impairment) on securities, net, and income tax expense. (c) Earnings from unconsolidated entities consists of equity (losses) in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities. (d) Total provision for asset impairment included $21,179 related to four retail properties, $49,146 related to four lodging properties, and $177,905 related to eleven non-core properties. On December 31, 2013, we also adjusted the impairment allowance for notes receivable for a gain $5,334. (e) Real estate assets includes intangible assets, net of amortization. (f) Construction in progress is included as non-segmented assets. 105 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The following table summarizes net operating income by segment as of and for the year ended December 31, 2012. Rental income Straight line rent adjustment Tenant recovery income Other property income Lodging income Total income Operating expenses Net operating income Non allocated expenses (a) Other income and expenses (b) Loss from unconsolidated entities (c) Provision for asset impairment (d) Net loss from continuing operations Income from discontinued operations, net Net income attributable to noncontrolling interests Net loss attributable to Company Balance Sheet Data: Real estate assets, net (e) Non-segmented assets (f) Total Assets Capital expenditures Total 343,290 4,357 73,214 5,714 692,448 1,119,023 605,439 513,584 (388,459) (187,400) (10,324) (37,830) (110,429) 46,780 (5,689) (69,338) $ $ $ $ $ $ $ $ $ $ $ $ $ 9,279,123 1,480,761 $ 10,759,884 88,637 $ Retail Lodging Student Housing Non - core $ $ $ $ 226,546 4,824 66,154 2,686 — 300,210 95,802 204,408 $ $ $ $ — $ — — — 692,448 692,448 480,229 212,219 $ $ $ 30,234 169 429 1,750 — 32,582 12,752 19,830 $ $ $ $ 86,510 (636) 6,631 1,278 — 93,783 16,656 77,127 $ 2,690,365 $ 2,687,180 $ 374,839 $ 3,526,739 $ 14,411 $ 60,373 $ 162 $ 13,691 (a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization. (b) Other income and expenses consist of interest and dividend income, interest expense, other income, realized gain, (loss) and (impairment) on securities, net, and income tax benefit. (c) Loss from unconsolidated entities consists of equity losses in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities. (d) Total provision for asset impairment included $16,234 related to three retail properties, and $21,596 related to six non- core properties. (e) Real estate assets includes intangible assets, net of amortization. (f) Construction in progress is included as non-segmented assets. 106 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The following table summarizes net operating income by segment as of and for the year ended December 31, 2011. Total Retail Lodging Student Housing Non - core $ $ $ $ 211,036 4,942 60,769 4,665 — 281,412 91,683 189,729 $ $ $ $ — $ — — — 517,840 517,840 353,487 164,353 $ $ $ 24,706 145 446 1,569 — 26,866 11,691 15,175 $ $ $ $ 86,855 (632) 5,440 2,604 — 94,267 19,270 74,997 Rental income Straight line rent adjustment Tenant recovery income Other property income Lodging income Total income Operating expenses Net operating income Non allocated expenses (a) Other income and expenses (b) Loss from unconsolidated entities (c) Provision for asset impairment (d) Net loss from continuing operations Loss from discontinued operations, net Net income attributable to noncontrolling interests Net loss attributable to Company $ $ $ $ $ $ $ $ $ $ $ $ 322,597 4,455 66,655 8,838 517,840 920,385 476,131 444,254 (382,599) (186,068) (118,825) (24,051) (267,289) (42,256) (6,708) (316,253) (a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization. (b) Other income and expenses consist of interest and dividend income, interest expense, other income and expenses, realized gain, (loss) and (impairment) on securities, net, and income tax benefit. (c) Loss from unconsolidated entities consists of equity (losses) in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities. (d) Total provision for asset impairment included $19,390 related to five retail properties, $2,886 related to one lodging properties, and $1,775 related to two non-core properties. (14) Earnings (loss) per Share Basic earnings (loss) per share (“EPS”) are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (the “common shares”). Diluted EPS is computed by dividing net income (loss) by the common shares plus potential common shares issuable upon exercising options or other contracts. There are an immaterial amount of potentially dilutive common shares. The basic and diluted weighted average number of common shares outstanding was 899,842,722, 879,685,949 and 858,637,707 for the years ended December 31, 2013, 2012 and 2011. (15) Commitments and Contingencies Certain leases and operating agreements within the lodging segment require the Company to reserve funds relating to replacements and renewals of the hotels' furniture, fixtures and equipment. As of December 31, 2013 the Company has funded $74,667 in reserves for future improvements. This amount is included in restricted cash and escrows on the consolidated balance sheet as of December 31, 2013. 107 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 The Company has learned that the SEC is conducting a non-public, formal, fact-finding investigation ("SEC Investigation") to determine whether there have been violations of certain provisions of the federal securities laws regarding the business management fees, property management fees, transactions with affiliates, timing and amount of distributions paid to investors, determination of property impairments, and any decision regarding whether the Company might become a self-administered REIT. The Company has not been accused of any wrongdoing by the SEC. The Company also has been informed by the SEC that the existence of this investigation does not mean that the SEC has concluded that anyone has broken the law or that the SEC has a negative opinion of any person, entity, or security. The Company has been cooperating fully with the SEC. The Company cannot reasonably estimate the timing of the SEC Investigation, nor can the Company predict whether or not the investigation might have a material adverse effect on the business. The Company also received related demands (“Derivative Demands”) by stockholders to conduct investigations regarding claims that the officers, the board of directors, the former business manager, and affiliates of the former business manager (the “Inland American Parties”) breached their fiduciary duties to Company in connection with the matters that the Company disclosed are subject to the SEC Investigation. The first Derivative Demand claims that the Inland American Parties (i) falsely reported the value of our common stock until September 2010; (ii) caused us to purchase shares of our common stock from stockholders at prices in excess of their value; and (iii) disguised returns of capital paid to stockholders as REIT income, resulting in the payment of fees to the former business manager for which it was not entitled. The three stockholders in that demand contend that legal proceedings should seek recovery of damages in an unspecified amount allegedly sustained by us. The second Derivative Demand by another shareholder makes similar claims and further alleges that the Inland American Parties (i) caused us to engage in transactions that unduly favored related parties, (ii) falsely disclosed the timing and amount of distributions, and (iii) falsely disclosed whether the Company might become a self-administered REIT. The Company also received a letter from another stockholder that fully adopts and joins in the first Derivative Demand, but makes no additional demands on the Company to perform investigation or pursue claims. Upon receiving the first of the Derivative Demands, the full board of directors responded by authorizing the independent directors to investigate the claims contained in the first Derivative Demand, any subsequent stockholder demands, as well as any other matters the independent directors see fit to investigate, including matters related to the SEC Investigation. Pursuant to this authority, the independent directors have formed a special litigation committee that is comprised solely of independent directors to review and evaluate the matters referred by the full Board to the independent directors, and to recommend to the full Board any further action as is appropriate. The special litigation committee is investigating these claims with the assistance of independent legal counsel and will make a recommendation to the Board of Directors after the committee has completed its investigation. On March 21, 2013, counsel for the stockholders who made the first Derivative Demand filed a derivative lawsuit in the Circuit Court of Cook County, Illinois, on behalf of the Company. The case has been stayed pending completion of the special litigation committee's investigation. The Company cannot predict the timing of the special litigation committee investigation or the Derivative Demands, nor can the Company predict whether or not the special litigation committee investigation or Derivative Demands might have a material adverse impact on our business. On April 26, 2013, two stockholders of the Company filed a putative class action in the United States District Court for the Northern District of Illinois against the Company, and current members and one former member of its board of directors ("the Defendants"). The complaint sought damages on behalf of plaintiffs and similarly situated individuals who purchased additional shares in the Company pursuant to the Company's Distribution Reinvestment Plan ("DRP") on or after March 30, 2009. Plaintiffs allege that the Defendants breached their fiduciary duties to plaintiffs and to members of the putative class by inflating the yearly estimated share price announced by the Company and by selling shares in the DRP to plaintiffs and members of the putative class at those allegedly inflated prices. On November 18, 2013, the class action was dismissed with prejudice for failing to state a claim that would entitle the plaintiffs to relief. The Court disagreed with the plaintiffs' allegations, noting in its memorandum opinion and order that the Company’s public disclosures fully described the manner in which the board estimated share value for the Company’s stock sold through the DRP. The Court entered judgment in favor of the Defendants. The plaintiffs appealed the judgment. As of February 26, 2014, the parties entered into a settlement agreement whereby the plaintiffs agreed to dismiss their appeal in exchange 108 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 for a cash settlement from the Company. We believe that the amount of the settlement is not material and is less than the amount the Defendants would have incurred in defending the appeal. The Company has also filed a number of eviction actions against tenants and is involved in a number of tenant bankruptcies. The tenants in some of the eviction cases may file counterclaims against the Company in an attempt to gain leverage against the Company in connection with the eviction. In the opinion of the Company, none of these counterclaims is likely to result in any material losses to the Company. The Company is subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. While the resolution of these matters cannot be predicted with certainty, management believes, based on currently available information, that the final outcome of such matters will not have a material adverse effect on the financial statements of the Company. (16) Assets and Liabilities Held for Sale In accordance with GAAP, the Company classifies properties as held for sale when certain criteria are met. On the day that the criteria are met, the Company suspends depreciation on the properties held for sale, including depreciation for tenant improvements and additions, as well as the amortization of acquired in-place leases. The assets and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for the most recent reporting period and recorded at the lesser of the carrying value or fair value less costs to sell. At December 31, 2013, these assets were recorded at their carrying value. The operations for the periods presented are classified on the consolidated statements of operations and other comprehensive income as discontinued operations for all periods presented. On August 8, 2013, we entered into a purchase agreement to sell our net lease assets, consisting of 294 retail, office, and industrial properties in a transaction valued at approximately $2.3 billion. In accordance with the terms of the purchase agreement, the buyer elected to “kick-out” of the transaction 13 properties valued at approximately $180.1 million. Excluding the “kicked out” properties, the transaction is valued at approximately $2.1 billion. As of December 31, 2013, the Company closed on the sale of 57 of the net lease portfolio properties for a disposition price of $669,660. The remaining 224 properties are expected to be sold through multiple closings at a gain during the first half of 2014. The 224 properties consist of 181 retail and office bank branches, 12 retail single user properties, 7 office properties, and 24 industrial properties. As of December 31, 2013, the 224 properties met the criteria to be classified as held for sale. The operating activity for the properties has been included within discontinued operations. As of December 31, 2012, there were no properties classified as held for sale. The major classes of assets and liabilities associated with held for sale properties as of December 31, 2013 are as follows: December 31, 2013 Land Building and other improvements Total Less accumulated depreciation Net investment properties Restricted cash & escrows Accounts and rents receivable Intangible assets, net Deferred cost and other assets Total Assets Debt Accounts payable and accrued expenses Intangible liabilities, net Other liabilities Total Liabilities 109 $ $ $ $ 271,870 1,067,039 1,338,909 (233,907) 1,105,002 1,643 33,888 48,017 8,179 1,196,729 826,762 1,977 1,122 50,295 880,156 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (17) Subsequent Events Subsequent to December 31, 2013, the Company purchased two retail assets for $26,150 on February 13, 2014. On February 28, 2014, the Company purchased one lodging asset for $183,000. The Company disposed of thirty non-core net lease assets on January 8, 2014 for a gross disposition price of $55,303. The Company then disposed of another twenty-eight non-core net lease assets on February 21, 2014 for a gross disposition price of $451,881. Finally, the company disposed of another 151 non-core net lease assets on March 10, 2014 for a gross disposition price of $278,553. These assets were all classified as held for sale as of December 31, 2013. On March 12, 2014, the Company began the process of becoming fully self-managed by terminating its business management agreement, hiring all of its business manager’s employees, and acquiring the assets of its business manager necessary to perform the functions previously performed by the business manager. As a first step towards internalizing our property managers, the Company hired certain of their employees; assumed responsibility for performing certain significant property management functions; and amended its property management agreements to reduce its property management fees as a result of its assumption of such responsibilities. As the second step, on December 31, 2014, the Company expects to terminate its property management agreements, hire the remaining property manager employees and acquire the assets necessary to conduct the remaining functions performed by its property managers. As a consequence, beginning January 1, 2015, the Company expects to become fully self-managed. The Company will not pay an internalization fee or self-management fee in connection with these self-management transactions. These self-management transactions immediately eliminate the management and advisory fees paid to the business manager and at the end of 2014, the Company expects to eliminate the fees paid to its property managers when it terminates the property management agreements. As part of the self-management transactions, the Company agreed to reimburse its business manager and property managers for certain transaction and employee related expenses and directly retain affiliates of The Inland Group, Inc. for IT services, customer service and certain back-office services that were provided to the Company and managed by the business manager prior to the termination of the business management agreement. In addition, in connection with the self-management transactions, the Company and the business manager terminated their letter agreement dated May 4, 2012 pursuant to which the business management fee had been reduced in each particular quarter for investigation costs exclusive of legal fees incurred in conjunction with the SEC matter. As a result of such termination, the Company will no longer be effectively reimbursed for such investigation costs. 110 INLAND AMERICAN REAL ESTATE TRUST, INC. (A Maryland Corporation) Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share amounts) December 31, 2013, 2012 and 2011 (18) Quarterly Supplemental Financial Information (unaudited) The following represents the results of operations, for each quarterly period, during 2013 and 2012. Total income Net income (loss) Net income (loss) attributable to Company Net income (loss), per common share, basic and diluted (1) Weighted average number of common shares outstanding, basic and diluted (1) For the quarter ended December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013 $ 369,978 $ 326,033 $ 327,591 $ 298,235 34,788 34,788 0.03 237,541 237,533 0.26 (32,756) (32,756) (0.03) 4,491 4,483 0.01 907,386,623 902,456,636 897,233,931 892,097,144 Total income Net loss Net loss attributable to Company Net loss, per common share, basic and diluted (1) Weighted average number of common shares outstanding, basic and diluted (1) For the quarter ended December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012 $ 290,741 $ 288,516 $ 299,302 $ (2,731) (3,569) (0.01) (12,917) (17,576) (0.02) (17,791) (17,910) (0.02) 240,464 (30,210) (30,283) (0.03) 886,849,317 881,717,879 877,188,933 872,886,566 (1) Quarterly income per common share amounts may not total to the annual amounts due to rounding and the changes in the number of weighted common shares outstanding 111 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 5 0 0 2 0 1 0 2 9 0 0 2 7 0 0 2 9 0 0 2 0 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 2 2 , 2 6 0 2 , 3 1 0 0 , 1 2 4 4 , 1 2 0 5 5 6 7 , 2 5 7 1 , 2 5 8 8 , 1 5 0 3 , 1 9 0 4 , 2 7 7 1 , 3 1 7 7 6 , 9 0 0 5 , 3 6 3 4 7 6 5 , 0 2 7 6 6 , 5 1 0 0 9 , 4 1 1 8 , 6 1 1 5 , 5 0 0 3 , 1 0 9 — 1 4 1 , 3 1 1 4 3 , 0 1 0 0 8 , 2 0 8 3 — — — — 1 4 2 , 9 0 0 5 , 3 2 1 7 , 7 7 7 5 , 5 1 0 0 9 , 4 0 4 6 , 1 1 1 1 5 , 5 0 0 3 , 1 — T E K R A M T E E R T S h t 4 1 X T , o n a l P l i a t e R E G N A H C X E A O C L A R A , t n a y r B I I E G N A H C X E A O C L A R A , n o t n e B 1 6 9 , 9 0 0 8 , 2 3 5 6 , 3 1 L A R T N E C N O S R E D N A C S , n o s r e d n A 2 1 1 8 9 2 , 6 6 4 1 , 5 2 5 1 , 1 ) 8 4 8 , 2 ( ) 8 9 3 ( 4 9 9 , 7 0 5 5 , 1 — G N I P P O H S A T I C O C S A T A 1 4 8 , 5 2 1 4 2 , 0 2 0 0 6 , 5 7 8 4 3 8 , 5 1 1 1 3 , 2 1 3 2 5 , 3 ) 3 7 ( 3 6 3 , 0 1 3 6 9 , 7 0 0 4 , 2 4 1 2 1 1 0 , 9 8 2 0 , 7 3 8 9 , 1 ) 5 6 ( 6 5 8 , 8 2 6 5 4 , 7 1 0 0 4 , 1 1 1 4 1 — — — — — 4 5 1 , 0 2 0 0 6 , 5 8 9 2 , 3 2 E C A L P T E K R A M W O T R A B A G , a t n a l t A X T , e l b m u H R E T N E C 4 8 3 , 2 1 3 2 5 , 3 3 6 1 , 4 1 E G A L L I V K E E R C R A E B 9 4 7 , 7 0 0 4 , 2 2 9 0 , 6 3 9 0 , 7 3 8 9 , 1 5 7 3 , 5 5 1 3 , 7 1 0 0 4 , 1 1 4 5 8 , 7 2 A Z A L P E V R E L L E B I Y K , e l l i v s a l o h c i N A C , r a m o d l i W R E T N E C A Z A L P E E R T T N E B C N , h g i e l a R S N O M M O C N O T N Y O B L F , i m a i M d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 6 0 0 2 9 0 0 2 6 0 0 2 9 0 0 2 9 0 0 2 7 0 0 2 9 0 0 2 0 1 0 2 9 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 3 9 7 , 4 6 8 4 , 4 6 5 5 , 4 6 3 3 , 3 7 9 6 , 4 3 8 6 , 2 1 9 6 , 2 0 7 2 , 1 0 0 9 9 8 7 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 4 9 2 , 7 2 4 9 6 , 6 1 0 0 6 , 0 1 6 4 0 , 3 5 1 7 , 3 3 0 5 1 , 6 2 5 6 5 , 7 ) 4 5 9 ( 3 9 2 , 4 1 2 4 6 , 2 1 1 5 6 , 1 2 7 8 1 7 0 , 4 3 8 4 3 , 7 2 3 2 7 , 6 ) 4 1 1 ( 8 1 7 , 8 1 4 1 8 , 4 1 4 0 9 , 3 0 7 5 , 3 1 1 0 9 , 0 1 9 6 6 , 2 9 9 2 6 3 8 8 , 8 9 9 8 , 9 6 2 4 , 5 0 6 8 , 6 3 2 0 , 2 ) 1 3 1 ( 9 9 6 , 5 0 0 2 , 4 0 2 3 8 2 , 4 3 4 1 , 1 ) 7 0 3 ( 4 8 0 , 6 2 4 6 3 , 0 2 0 2 7 , 5 4 6 8 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E — — — — — — — — — — 0 0 5 , 9 1 0 2 7 , 5 3 3 1 , 6 1 H T U O S E R T N E C N O D N A R B 8 4 6 , 3 1 0 0 6 , 0 1 1 6 7 , 3 1 4 0 1 , 7 2 5 6 5 , 7 5 1 2 , 3 3 0 7 7 , 1 1 1 5 6 , 1 5 2 0 , 9 2 6 4 , 7 2 3 2 7 , 6 3 4 3 , 8 1 G N I S S O R C D A E H K C U B A G , a t n a l t A A Z A L P N R O H K C U B A P , g r u b s m o o l B E C A L P T E K R A M S U P M A C A C , s o c r a M n a S R E N R O C S K O O R B X T , o i n o t n A n a S L F , n o d n a r B 5 1 7 , 4 1 4 0 9 , 3 8 0 3 , 5 1 Y E L E E R G F O E C A L P R E T N E C 9 3 8 , 0 1 9 6 6 , 2 — 1 9 9 , 6 3 2 0 , 2 7 5 1 , 6 0 9 5 , 4 3 4 1 , 1 — 9 7 6 , 5 0 0 2 , 4 8 1 4 , 7 1 S N O M M O C E K A E P A S E H C A V , e k a e p a s e h C S W O D A E M E N N E Y E H C O C , s g n i r p S o d a r o l o C O C , y e l e e r G G N I S S O R C A T E W O C A G , n a n w e N A G , s n i b o R r e n r a W G N I S S O R C Y T I C 3 1 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 5 0 0 2 7 0 0 2 9 0 0 2 7 0 0 2 5 0 0 2 6 0 0 2 9 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 2 8 3 , 2 3 9 7 , 3 3 1 9 , 2 2 4 4 8 7 7 9 2 2 , 7 3 5 5 , 2 1 2 1 , 5 5 9 2 5 6 8 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 2 9 0 , 7 1 2 4 3 , 2 1 0 5 7 , 4 7 9 4 0 3 , 9 1 4 3 3 , 5 1 0 7 9 , 3 2 0 6 , 1 5 1 4 , 3 1 5 1 1 , 0 1 0 0 3 , 3 6 7 1 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t — — — s t n e m t s u j d A d n a L o t s i s a B ) C ( 2 3 7 , 3 1 0 7 9 , 3 — 5 4 2 , 2 1 0 5 7 , 4 9 4 1 , 0 1 9 3 9 , 9 0 0 3 , 3 3 9 1 , 8 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 7 7 6 , 4 5 4 0 , 1 ) 3 5 9 , 6 ( ) 5 0 8 ( 0 3 6 , 1 1 0 5 8 , 1 — 2 2 7 , 5 7 4 1 , 4 1 2 9 , 7 4 1 2 7 , 9 3 0 0 2 , 8 4 6 7 , 2 1 4 6 7 , 0 1 0 0 0 , 2 6 7 1 , 0 2 6 7 9 , 6 1 0 0 2 , 3 7 4 1 , 3 0 0 0 , 1 — 2 6 9 9 5 4 3 1 3 — — — — 7 4 1 , 3 0 0 0 , 1 5 1 3 , 2 9 5 7 , 8 3 0 0 2 , 8 5 2 8 , 3 3 5 0 3 , 0 1 0 0 0 , 2 0 0 8 , 6 T R U O C S R E B M I T S S O R C X T , d n u o M r e w o l F E R A U Q S E K A E P A S E H C T A S D A O R S S O R C A V , e k a e p a s e h C E G A L L I V K E E R C R E T S U C X T , n o s d r a h c i R R E T N E C N W O T S S E R P Y C X T , n o t s u o H A Z A L P N O S L E N O D N T , e l l i v h s a N N O I L I V A P N A H T O D L A , n a h t o D E T A G T S A E C S , n e k i A 4 1 1 9 1 9 , 9 9 5 3 , 6 5 4 4 , 8 4 7 4 , 1 ) 3 5 7 , 3 1 ( ) 6 2 9 ( 8 9 1 , 2 2 0 0 4 , 2 — 9 1 2 , 5 0 4 1 , 1 ) 2 2 ( — 1 4 2 , 5 0 4 1 , 1 5 9 3 , 2 A Z A L P L L A D N A R N A Y B A F L I , a i v a t a B T E K R A M W E I V R A F I C S , e l l i v n o s p m i S X T , n o t s u o H 3 6 6 , 6 1 0 0 2 , 3 0 0 0 , 9 R E T N E C N W O T E G D R D L E I d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 9 0 0 2 0 1 0 2 0 1 0 2 9 0 0 2 7 0 0 2 0 1 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 1 0 3 , 2 5 8 4 , 3 4 2 5 , 2 1 1 8 , 2 1 4 9 6 7 9 2 1 0 , 4 9 6 9 , 3 9 0 3 , 3 0 1 2 , 3 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 0 4 9 , 3 1 0 4 4 , 9 0 0 5 , 4 3 0 5 , 8 1 3 0 1 , 5 1 0 0 4 , 3 9 5 9 , 1 1 9 5 3 , 0 1 0 0 6 , 1 1 9 3 3 5 5 6 7 5 6 3 5 , 9 1 8 4 3 , 6 1 8 8 1 , 3 ) 4 7 1 ( 4 1 9 , 8 1 4 1 3 , 5 0 0 6 , 3 1 2 2 3 6 9 2 , 1 1 6 9 5 , 6 0 0 7 , 4 ) 3 7 1 ( 1 0 3 , 4 3 1 0 1 , 7 2 0 0 2 , 7 7 1 1 6 6 5 , 3 2 6 6 2 , 6 1 0 0 3 , 7 6 6 2 , 6 1 0 8 5 , 8 2 0 8 1 , 4 2 0 0 4 , 4 9 5 2 , 1 4 8 3 , 8 1 4 8 7 , 3 1 0 0 6 , 4 2 8 2 — — — — — — — — — — ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 9 4 0 , 9 0 0 5 , 4 2 4 3 , 8 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E G N I S S O R C D N U O M R E W O L F X T , d n u o M r e w o l F 0 5 5 , 4 1 0 0 4 , 3 1 9 8 , 1 3 8 7 , 9 0 0 6 , 1 1 8 3 , 6 2 2 5 , 6 1 8 8 1 , 3 9 1 5 , 1 1 A Z A L P T S E R O F I W , c a L u d d n o F Y R R E F S ’ Y R U F A G , a t s u g u A E G A L L I V N E D R A G A C , o r d e P n a S 2 9 9 , 4 0 0 6 , 3 1 3 7 1 , 3 2 R E T N E C T E K R A M Y A W E T A G 9 6 7 , 6 0 0 7 , 4 8 9 0 , 0 1 4 8 9 , 6 2 0 0 2 , 7 — — 0 0 3 , 7 0 3 6 , 2 1 1 2 9 , 2 2 0 0 4 , 4 — 2 0 5 , 3 1 0 0 6 , 4 9 1 7 , 0 1 A Z A L P N O L L I D S I O V A R G O M , e g d i R h g i H S N O M M O C N O T F A R G R E T N E C G N I P P O H S I W , n o t f a r G G N I S S O R C E G A T I R E H C N , n o s l i W S T H G I E H E G A T I R E H X T , e n i v e p a r G A Z A L P Y A W E T A G C N , e l l i v n o s k c a J L F , a p m a T 5 1 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 9 0 0 2 5 0 0 2 0 1 0 2 7 0 0 2 6 0 0 2 9 0 0 2 9 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 0 7 5 , 1 1 0 0 , 1 8 3 6 , 2 3 3 8 , 2 6 8 5 2 4 5 0 0 , 3 4 1 4 , 3 6 0 4 , 9 1 0 5 , 3 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 7 5 3 , 1 1 7 2 4 , 9 0 3 9 , 1 ) 5 1 2 , 6 ( ) 0 2 5 ( 2 4 6 , 5 1 0 5 4 , 2 — ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 5 2 3 , 3 1 8 4 4 , 8 7 7 8 , 4 ) 3 8 3 ( ) 0 2 4 ( 1 3 8 , 8 7 9 2 , 5 8 3 3 , 0 1 I O G A C H C — A Z A L P E G A T I R E H 5 9 7 , 2 2 5 9 1 , 8 1 0 0 6 , 4 3 6 3 , 1 1 7 1 , 7 1 1 7 3 , 2 1 0 0 8 , 4 2 5 6 — — 2 3 8 , 6 1 0 0 6 , 4 9 0 6 , 7 3 6 1 1 8 3 4 , 0 1 6 5 5 , 8 2 8 8 , 1 ) 9 0 7 , 7 ( ) 8 1 5 ( 5 6 2 , 6 1 0 0 4 , 2 — 8 7 9 , 2 9 5 1 , 2 9 1 8 1 2 1 4 1 7 , 0 2 7 1 2 , 6 1 7 9 4 , 4 ) 2 ( 6 4 8 , 6 1 6 2 2 , 4 1 0 2 6 , 2 7 3 2 3 4 9 , 0 5 3 4 1 , 3 4 0 0 8 , 7 9 5 1 , 3 0 7 4 , 8 1 0 9 1 , 4 1 0 8 2 , 4 4 9 2 — — — — — 8 3 0 , 2 9 1 8 1 5 6 , 2 9 1 2 , 6 1 7 9 4 , 4 0 7 1 , 2 1 4 8 9 , 9 3 0 0 8 , 7 — 9 8 9 , 3 1 0 2 6 , 2 6 4 3 , 9 6 9 8 , 3 1 0 8 2 , 4 0 9 8 , 0 1 U O Y A B G N I T N U H X T , y t i C o t n i c a J X T , o n a l P L I A T E R H C E T N I N I , s i l o p a n a i d n I R E T N E C S E M A J A W , a m o c a T G N I S S O R C S K A O Y E S O J X T , n o t l l o r r a C S N O M M O C T R O P E K A L A I , y t i C x u o i S G N I S S O R C Y C A G E L H O , n o i r a M 9 1 7 , 1 1 0 0 8 , 4 0 9 7 , 9 G N I S S O R C N E L G S ’ R E T N U H A Z A L P D N A L H G H I X T , y t a K N O I L I V A P M A R H I A G , m a r i H L I , m a e r t S l o r a C 6 3 3 , 4 1 5 4 3 , 6 6 5 4 3 , 5 5 0 0 0 , 1 1 0 5 9 , 4 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 6 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 9 0 0 2 6 0 0 2 6 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 1 6 6 , 6 1 8 2 , 2 8 0 3 1 5 5 , 1 5 8 0 , 3 1 9 9 , 1 5 4 2 4 9 2 5 4 4 , 9 3 5 4 8 , 5 2 0 0 6 , 3 1 2 9 7 8 3 6 , 0 2 8 3 6 , 9 0 0 0 , 1 1 1 7 6 2 9 , 8 3 5 5 , 7 3 4 3 , 5 3 8 5 , 3 ) 1 9 3 , 3 ( ) 7 0 9 ( 4 3 7 , 8 0 9 4 , 4 — 3 5 3 , 6 0 0 2 , 1 9 7 4 7 2 , 6 0 0 2 , 1 3 0 8 , 4 8 5 3 , 9 3 1 6 0 , 3 2 7 9 2 , 6 1 9 9 4 1 3 5 , 3 1 7 2 1 , 0 1 4 0 4 , 3 ) 4 5 1 , 1 ( 2 6 5 , 2 2 7 9 2 , 6 1 1 8 2 , 1 1 4 0 4 , 3 5 7 9 , 9 2 7 3 8 , 3 2 8 3 1 , 6 ) 1 7 1 , 5 1 ( ) 2 6 8 ( 8 0 0 , 9 3 0 0 0 , 7 1 8 1 , 4 4 4 9 , 2 7 3 2 , 1 ) 8 7 9 ( ) 3 5 2 ( 2 2 9 , 3 0 9 4 , 1 — — — — — — — — — — E K A L T S E W T A T E K R A M X T , s l l i H e k a l t s e W / E S R O M T A T E K R A M H O , s u b m u l o C N O T L I M A H , D M y r u b s i l a S R E T N E C N W O T Y E N N K C M I X T , y e n n i K c M G N I S S O R C S T N A H C R E M L F , d o o w e l g n E E C A L P T E K R A M K C O N D A N O M H N , e n e e K I I G N I S S O R C T S E R O F W E N X T , n o t s u o H 3 5 0 , 5 2 0 0 6 , 3 1 5 3 0 , 2 2 5 9 3 , 0 5 0 0 0 , 1 1 — d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E E G A L L I V N L O C N I L L I , o g a c i h C L L A M N L O C N I L I R , n l o c n i L 7 6 5 , 9 0 0 0 , 1 1 0 0 6 , 2 1 R E T N E C Y R U B S I L A S D R O L 7 1 1 3 4 0 , 7 8 4 5 , 3 3 8 3 6 , 0 3 0 1 9 , 2 8 9 2 — 0 4 3 , 0 3 0 1 9 , 2 5 6 9 , 9 1 E C A L P T E K R A M T S E W H T R O N X T , n o t s u o H d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 9 0 0 2 0 1 0 2 5 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 9 0 0 2 7 0 0 2 9 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 5 8 , 1 1 9 1 , 3 1 5 5 3 , 0 1 6 3 8 , 2 ) 2 7 5 ( 1 1 8 6 5 2 , 2 7 2 0 , 2 1 3 4 , 4 4 4 6 5 9 5 , 3 8 3 6 , 7 5 9 1 , 1 6 6 1 , 7 6 0 9 , 9 1 3 9 , 5 5 7 9 , 3 6 1 1 , 2 1 6 7 4 , 7 0 4 6 , 4 1 7 4 , 2 1 1 2 2 , 8 0 5 2 , 4 9 1 ) 7 ( 5 3 8 1 5 , 3 8 1 6 , 2 0 0 9 4 4 2 , 6 3 4 4 0 , 1 2 0 0 2 , 5 1 8 2 7 9 7 5 6 , 2 2 7 7 9 , 7 1 0 8 6 , 4 1 3 9 , 1 6 0 7 , 3 4 6 0 0 , 4 3 0 0 7 , 9 7 5 1 , 5 3 2 4 , 8 1 8 6 , 6 2 4 7 , 1 9 7 1 7 6 5 , 7 3 7 0 3 , 1 3 0 6 2 , 6 3 8 8 , 1 — — — — — — — — — — 8 1 1 7 2 9 , 0 1 6 3 8 , 2 0 0 1 , 2 1 G N I P P O H S R O B R A H M L A P 2 1 9 , 5 5 7 9 , 3 9 4 1 , 0 1 L F , h c a e B m l a P t s e W E C A L P E S I D A R A P L F , t s a o C m l a P R E T N E C 3 8 4 , 7 0 4 6 , 4 1 5 4 , 6 O G R A L F O S P O H S E S I D A R A P 6 8 1 , 8 0 5 2 , 4 2 3 5 , 7 A Z A L P T S E W K R A P X T , e n i v e p a r G L F , o g r a L 6 4 0 , 6 1 0 8 6 , 4 0 0 9 , 3 1 H T R O N E R T N E C Y A W K R A P H O , y t i C e v o r G 0 9 5 , 2 0 0 9 0 0 2 , 2 H T R O N E R T N E C Y A W K R A P 7 4 9 , 0 2 0 0 2 , 5 1 0 0 2 , 4 2 I A T N U Q A L T A N O I L I V A P A C , a t n i u Q a L H O B T O L T U O , y t i C e v o r G 9 4 8 , 8 2 0 0 7 , 9 0 5 4 , 3 2 N A M T R A H T A S N O I L I V A P 2 0 5 , 6 2 4 7 , 1 — 4 2 4 , 9 2 0 6 2 , 6 0 0 0 , 1 3 E D A N E M O R P D N A L H C A E P L F , e t t o l r a h C t r o P O M , e c n e d n e p e d n I E G A T I R E H K O , y t i C a m o h a l k O K R A P N N E P d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 0 1 0 2 8 0 0 2 9 0 0 2 7 0 0 2 7 0 0 2 9 0 0 2 9 0 0 2 0 1 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 3 7 7 2 7 4 1 7 4 , 5 0 2 9 , 3 0 6 3 , 6 0 3 3 , 2 4 2 0 , 1 0 3 7 3 2 6 , 3 1 5 2 , 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 4 8 4 , 3 1 1 1 , 3 3 7 3 2 1 — 9 9 0 , 3 3 7 3 0 5 2 , 2 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E A Z A L P R E E N O I P X T , e t i u q s e M 0 3 4 , 5 1 9 7 8 , 0 1 1 5 5 , 4 ) 2 7 7 , 1 1 ( ) 9 9 3 , 3 ( 1 5 6 , 2 2 0 5 9 , 7 9 5 4 , 0 3 E R A U Q S L L I H T N A S A E L P 5 8 1 , 5 3 5 8 0 , 9 2 0 0 1 , 6 5 9 2 , 1 — 0 9 7 , 7 2 0 0 1 , 6 1 0 8 , 1 2 E C A L P N I L P O P C N , e o r n o M A G , h t u l u D 9 1 9 , 7 2 5 3 5 , 2 2 4 8 3 , 5 5 6 6 , 8 3 5 6 6 , 6 2 0 0 0 , 2 1 6 9 2 , 6 1 6 9 2 , 0 1 0 0 0 , 6 5 1 0 , 7 3 0 0 , 5 2 7 5 , 5 3 4 4 , 1 5 6 8 , 3 8 3 1 , 1 1 2 1 0 7 2 7 4 6 ) 8 5 ( ) 1 8 ( 6 7 1 , 8 3 6 7 1 , 6 2 0 0 0 , 2 1 3 5 3 0 2 1 , 3 1 0 2 0 , 5 0 0 1 , 8 8 2 — — — — — — 9 1 1 5 9 3 , 6 2 0 0 0 , 2 1 0 5 3 , 8 1 G N I P P O H S E N O T S R E V R I 9 4 6 , 9 0 0 0 , 6 1 2 1 , 0 1 0 3 6 , 5 3 4 4 , 1 1 5 1 , 4 E G A L L I V W E I V R E V R I X T , n o t g n i l r A X T , y t i C i r u o s s i M R E T N E C A G , k c o t s d o o W K E E R C E S O R 6 4 9 , 3 8 3 1 , 1 6 9 2 , 3 G N I P P O H S D O O W E S O R 3 2 8 , 5 2 0 0 0 , 2 1 5 2 4 , 0 4 2 9 9 , 4 0 0 1 , 8 5 3 4 , 8 N O I L I V A P A T O S A R A S L F , a t o s a r a S C S , a i b m u l o C R E T N E C G N I S S O R C D L E I F O C S X T , n i t s u A ) 6 5 1 ( 4 1 4 , 2 2 0 4 5 , 5 — E L A D N O T L U F E D A N E M O R P L A , e l a d n o t l u F d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 6 0 0 2 0 1 0 2 7 0 0 2 8 0 0 2 9 0 0 2 9 0 0 2 1 1 0 2 6 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 0 4 4 , 9 0 3 3 , 9 4 5 7 6 , 9 3 5 5 6 , 9 3 9 6 , 8 5 0 7 , 2 1 2 2 3 , 4 5 2 7 4 , 9 4 0 5 8 , 4 9 9 1 0 4 6 , 1 5 8 7 , 7 1 5 8 7 , 4 1 0 0 0 , 3 ) 0 2 ( 2 3 9 6 0 2 , 4 7 7 2 , 1 7 1 9 3 1 4 , 2 2 4 4 , 3 5 8 0 , 1 9 7 9 , 4 4 5 9 , 3 5 2 0 , 1 8 0 5 9 , 9 2 0 1 6 , 0 2 0 4 3 , 9 9 5 3 4 0 9 , 8 9 8 9 , 7 3 7 8 , 6 1 3 0 , 2 ) 2 0 1 ( 0 0 2 , 6 9 8 7 , 1 ) 6 6 ( 4 8 7 , 3 3 4 5 4 , 3 2 0 3 3 , 0 1 6 1 2 1 8 6 , 5 1 1 3 5 , 2 1 0 5 1 , 3 8 9 1 2 4 , 6 1 0 1 , 5 0 2 3 , 1 1 3 0 , 2 — — — — — — — — — — 0 2 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 2 8 9 , 0 3 5 5 6 , 9 5 7 2 , 0 3 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E A Z A L P N A M R E H S L I , n o t s n a v E 3 7 2 , 9 4 0 5 8 , 4 8 9 9 , 2 3 R E T N E C N W O T N A M R E H S X T , n a m r e h S 5 0 8 , 4 1 0 0 0 , 3 0 0 0 , 0 1 I I R E T N E C N W O T N A M R E H S 6 4 9 , 3 5 2 0 , 1 8 3 2 , 3 1 5 2 , 0 2 0 4 3 , 9 0 0 6 , 6 1 5 7 9 , 6 1 3 0 , 2 6 5 2 , 5 6 6 2 , 6 9 8 7 , 1 5 1 8 , 4 8 3 2 , 3 2 0 3 3 , 0 1 3 3 4 , 2 1 0 5 1 , 3 0 7 0 , 3 0 2 3 , 1 — — — E R A U Q S H O L I H S X T , d n a l r a G X T , n a m r e h S A L , e g u o R n o t a B t s a E A Z A L P N E G E I S E K A L R E V L I S Y K , r e g n a l r E E G A L L I V E T A G H T U O S L A , m a h l e P G N I S S O R C S K R A P S V N , s k r a p S R E T N E C N W O T G N R P S I X T , g n i r p S I I I R E T N E C N W O T G N R P S I X T , g n i r p S d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 0 1 0 2 7 0 0 2 8 0 0 2 7 0 0 2 0 1 0 2 7 0 0 2 6 0 0 2 5 0 0 2 9 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 8 8 1 , 4 9 5 2 , 3 3 9 1 , 6 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 9 1 9 , 9 2 9 6 7 , 3 2 0 5 1 , 6 8 4 4 4 8 7 , 2 3 4 8 4 , 8 2 0 0 3 , 4 9 6 2 , 8 9 0 9 , 9 1 9 5 9 , 5 1 0 5 9 , 3 5 7 7 , 1 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t 3 0 0 , 0 1 2 1 1 , 4 6 7 8 2 , 5 5 5 2 8 , 8 8 0 6 , 6 2 0 8 0 8 8 , 4 4 1 9 , 2 7 0 3 , 2 6 1 2 , 4 9 6 5 , 1 0 1 1 , 4 0 1 2 , 3 0 0 9 6 5 4 , 4 4 6 5 9 , 1 3 0 0 5 , 2 1 6 2 0 , 4 1 6 7 7 , 1 1 0 5 2 , 2 8 9 2 , 5 1 8 9 7 , 9 0 0 5 , 5 5 5 1 9 6 5 8 6 9 0 2 6 7 9 , 0 2 4 4 5 , 6 1 2 3 4 , 4 6 3 2 , 3 0 5 1 , 0 1 8 2 5 , 8 2 2 6 , 1 6 0 2 1 2 1 — — — — — — — — — — s t n e m t s u j d A d n a L o t s i s a B ) C ( 4 8 1 , 4 1 0 5 9 , 3 2 0 2 , 0 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E T E K R A M T E E R T S E T A T S L I , d r o f k c o R 1 2 3 , 3 2 0 5 1 , 6 6 1 5 , 4 3 E C A L P T E K R A M T S E R C E N O T S 5 1 2 , 0 2 0 0 3 , 4 8 6 5 , 9 1 9 7 6 , 8 4 5 2 8 , 8 0 0 5 , 7 3 5 5 1 , 3 0 0 9 3 8 6 , 2 5 6 2 , 1 3 0 0 5 , 2 1 2 8 3 , 8 4 Y R R E B N A R C F O S T E E R T S A P , p i h s n w o T y r r e b n a r C A G , a i n o h t i L S E K A L N A D N I I F O S T E E R T S E G A L L I V K E E R C N U S X T , o n a l P N T , e l l i v n o s r e d n e H S N O M M O C E R O M A C Y S C N , s w e h t t a M 1 9 0 , 1 1 0 5 2 , 2 2 2 7 , 7 H G U H T A R E T N E C E H T 9 8 5 , 9 0 0 5 , 5 5 4 7 , 9 S D N A L H G H E H T I X T , d n u o M r e w o l F A G , r e k c u T L L E W O H 8 0 3 , 3 1 2 3 4 , 4 5 0 2 , 1 1 D R A I L L I H T A T E K R A M E H T 2 2 3 , 8 2 2 6 , 1 4 9 3 , 5 S D A O R S S O R C S A M O H T A G , n a n w e N H O , d r a i l l i H d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 5 0 0 2 5 0 0 2 0 1 0 2 0 1 0 2 0 1 0 2 3 1 0 2 3 1 0 2 0 1 0 2 5 0 0 2 3 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 2 2 9 , 4 3 3 4 , 7 7 8 0 , 6 1 8 6 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 1 8 9 , 3 0 0 4 , 8 3 0 5 1 , 1 3 0 5 2 , 7 4 2 8 , 5 5 4 2 5 6 2 5 6 , 1 3 5 6 , 7 0 8 7 6 0 , 7 1 0 4 9 , 6 7 2 1 , 0 1 ) 7 4 9 , 5 ( ) 3 7 2 ( 7 8 8 , 2 1 0 0 4 , 0 1 8 1 8 , 5 2 I T N O P E R U T N E V A G , h t u l u D X T , k c o R d n u o R R E T N E C 1 6 4 , 8 8 7 2 , 5 3 8 1 , 3 0 2 8 , 3 1 0 2 4 , 1 1 0 0 4 , 2 — 3 0 4 1 , 0 4 0 4 6 , 3 3 0 0 5 , 6 ) 2 7 2 ( 0 1 8 , 3 1 9 5 6 , 8 1 5 1 , 5 — — — — — 8 7 2 , 5 3 8 1 , 3 — G N I P P O H S K R A P N E D L A W 7 1 4 , 1 1 0 0 4 , 2 4 0 9 , 2 1 G N I S S O R C S D R A W A V , g r u b h c n y L X T , n i t s u A R E T N E C 2 1 9 , 3 3 0 0 5 , 6 0 0 6 , 0 3 A Z A L P K R A P N O T G N H S A W I L I , d o o w e m o H 9 5 6 , 8 1 5 1 , 5 — G N I P P O H S K E E R C T S E W X T , n i t s u A R E T N E C 2 2 1 6 6 8 , 7 6 6 9 , 4 0 0 9 , 2 6 1 — — 0 5 9 , 4 0 0 9 , 2 7 8 8 , 9 A Z A L P L A S R E V N U I L F , l l i h r e d u a L R E T N E C K O , a s l u T 6 2 3 , 5 2 0 5 2 , 7 0 0 0 , 7 2 G N I P P O H S S K A O Y T I S R E V N U I 3 2 0 , 0 4 3 5 2 , 7 2 0 7 7 , 2 1 7 9 6 , 2 — 6 5 5 , 4 2 0 7 7 , 2 1 0 5 5 , 1 2 1 0 6 , 2 2 3 0 3 , 0 2 8 9 2 , 2 0 7 0 , 6 0 6 3 3 3 2 , 4 1 8 3 9 , 1 5 9 5 , 9 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E R E N T E C N W O T L L A B M O T X T , l l a b m o T R E T N E C E L G N A R T I , A W w e i v g n o L 9 5 4 , 0 6 9 8 6 , 7 4 0 7 7 , 2 1 7 1 4 , 5 0 7 7 , 4 2 7 2 , 2 4 0 0 0 , 8 7 2 7 , 7 3 G N I P P O H S S L L I H A S L U T 3 1 0 2 1 1 0 2 5 0 0 2 5 0 0 2 5 0 0 2 9 0 0 2 9 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 9 8 1 , 1 2 9 0 , 2 9 2 4 , 3 1 8 4 , 2 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 5 9 7 5 2 7 , 1 3 0 5 9 , 6 2 5 7 7 , 4 2 4 9 , 5 3 8 2 , 9 8 3 8 2 , 0 7 0 0 0 , 9 1 — 8 — — d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 5 7 2 , 0 7 0 0 0 , 9 1 0 0 0 , 2 5 0 5 9 , 6 2 5 7 7 , 4 1 4 6 , 0 2 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 6 7 5 , 1 9 0 5 , 4 2 2 4 , 8 1 3 7 4 1 0 , 4 5 4 8 5 9 4 2 0 2 , 7 0 2 2 , 1 8 4 1 7 8 ) 9 8 0 , 1 ( ) 5 0 7 ( 0 2 8 , 1 0 5 5 , 1 6 6 9 , 3 5 9 4 1 3 3 , 6 0 2 2 , 1 — — — 6 5 8 , 0 3 6 5 8 , 0 3 — 6 5 8 , 0 3 0 0 7 , 0 2 0 8 2 , 7 1 0 2 4 , 3 7 2 1 , 3 — — 7 0 9 , 7 1 3 5 1 , 4 1 0 2 4 , 3 5 7 5 , 7 — — — — 3 2 1 G N I S S O R C K A O E T I H W C N , r e n r a G R E T N E C N W O T S I L L I W X T , s i l l i W E G A L L I V T R O P S E W Y K , e l l i v s i u o L R E T N E C N W O T R E T S E H C N W I X T , n o t s u o H E G A L L I V E R E M R E D N W I X T , n o t s u o H G N I S S O R C E K A L D O O W X T , o i n o t n A n a S I E G D R B D O O W X T , e i l y W 0 1 0 2 3 1 0 2 3 1 0 2 3 1 0 2 3 1 0 2 2 1 0 2 7 0 0 2 7 0 0 2 7 0 0 2 8 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 5 2 8 2 6 1 , 7 6 2 1 0 , 7 5 0 5 1 , 0 1 8 1 7 , 1 9 7 3 , 0 5 0 3 4 , 3 4 9 4 9 , 6 8 7 1 , 3 4 0 0 , 3 2 5 7 4 , 6 1 9 2 5 , 6 ) 3 ( 3 8 3 5 0 8 7 1 0 , 2 0 0 1 , 8 3 9 4 , 7 2 9 8 , 8 3 2 1 2 , 6 3 0 8 6 , 2 2 3 2 , 0 2 0 0 0 , 9 1 2 3 2 , 1 8 4 0 , 7 2 8 4 7 , 4 2 0 0 3 , 2 8 0 5 9 5 3 , 2 3 9 5 3 , 8 2 0 0 0 , 4 8 1 2 , 2 7 6 2 , 8 2 8 7 2 , 3 2 9 8 9 , 4 0 9 2 , 4 5 9 7 , 3 1 8 9 4 , 5 5 8 9 3 , 3 4 0 0 1 , 2 1 6 5 1 , 3 — — — — 5 4 — — — — — — — — 8 7 4 , 6 1 4 8 4 , 6 — 2 1 0 , 7 5 0 5 1 , 0 1 0 0 5 , 0 3 0 3 4 , 3 4 9 4 9 , 6 0 0 5 , 6 2 2 1 2 , 6 3 0 8 6 , 2 0 0 5 , 1 2 0 0 0 , 9 1 2 3 2 , 1 4 4 8 , 9 L L I H L E P A H C T F O L A C N , l l i H l e p a h C g n i g d o L Y E L L A V A P A N Z A D N A A C , a p a N O G E I D N A S Z A D N A A C , o g e i D n a S H A N N A V A S Z A D N A A G , h a n n a v a S L E T O H N A M E H O B I N O I T A R B E L E C L F , n o i t a r b e l e C 0 4 2 , 4 2 0 0 3 , 2 0 8 4 , 7 2 H A N N A V A S L E T O H N A M E H O B I A G , h a n n a v a S 1 4 1 , 6 2 0 0 0 , 4 0 6 8 , 8 1 I T T O R R A M Y B D R A Y T R U O C X T , n o s i d d A M U R O U Q 8 8 9 , 8 1 9 8 9 , 4 0 8 6 , 1 1 I T T O R R A M Y B D R A Y T R U O C I M , r o b r A n n A 2 4 2 , 0 4 0 0 1 , 2 1 0 1 8 , 0 3 I T T O R R A M Y B D R A Y T R U O C I X A F R A F - G N R O L N N U D I 4 2 1 0 8 8 , 7 5 9 3 , 4 2 2 4 8 , 2 2 3 5 5 , 1 2 3 0 , 2 3 5 5 , 1 0 1 8 , 0 2 — 9 0 9 , 3 1 N W O T N W O D — D R A Y T R U O C A V , a n n e i V L A , m a h g n i m r i B B A U T A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 8 0 0 2 7 0 0 2 8 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 8 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 6 7 , 7 1 0 6 , 4 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 4 9 4 , 6 1 4 9 9 , 4 1 0 0 5 , 1 8 7 5 , 1 1 9 2 , 6 2 0 8 6 , 4 2 1 1 6 , 1 8 5 0 , 2 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t 9 7 7 , 5 1 6 8 7 , 0 5 2 1 0 , 0 5 4 7 7 2 9 1 , 4 7 7 7 , 5 9 6 2 , 5 6 1 7 , 7 8 4 5 , 5 0 4 3 , 5 8 1 9 , 6 6 9 2 , 8 1 6 9 6 , 6 1 0 0 6 , 1 9 4 4 , 3 2 3 1 , 8 1 4 0 7 , 6 1 8 2 4 , 1 9 1 6 , 1 6 5 2 , 0 3 6 5 8 , 5 2 0 0 4 , 4 0 3 2 , 3 0 8 4 , 0 2 0 8 2 , 8 1 0 0 2 , 2 2 7 8 , 1 0 7 0 , 2 2 4 4 6 , 8 1 6 2 4 , 3 5 9 2 , 2 5 0 7 , 4 2 5 0 5 , 1 2 0 0 2 , 3 6 9 4 , 2 7 4 9 , 2 1 5 0 3 , 8 3 5 0 3 , 8 3 — 8 2 1 , 3 5 2 1 — — — — — — — — — — s t n e m t s u j d A d n a L o t s i s a B ) C ( 2 2 6 , 2 2 1 1 6 , 1 — d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E E D A E M T R O F — D R A Y T R U O C D M , n o i t c n u J s i l o p a n n A P B N T A 6 1 4 , 3 1 0 0 5 , 1 0 5 5 , 7 I - T T O R R A M Y B D R A Y T R U O C 0 2 8 , 5 4 4 7 7 — H T R O W T F — D R A Y T R U O C X T , h t r o W t r o F D N E S D N A L T S E W X T , h t r o W t r o F 7 4 2 , 3 1 0 0 6 , 1 0 9 7 , 6 I T T O R R A M Y B D R A Y T R U O C X T , n e g n i l r a H 5 8 0 , 5 1 8 2 4 , 1 9 3 9 , 6 I — T T O R R A M Y B D R A Y T R U O C T S E W H T R O N X T , n o t s u o H 6 2 6 , 2 2 0 0 4 , 4 0 8 6 , 6 1 I — T T O R R A M Y B D R A Y T R U O C E S A H C T S E W X T , n o t s u o H 8 0 4 , 6 1 0 0 2 , 2 0 8 9 , 0 1 I T T O R R A M Y B D R A Y T R U O C 9 4 3 , 6 1 6 2 4 , 3 0 4 7 , 2 1 I — T T O R R A M Y B D R A Y T R U O C A Z A L P B U L C Y R T N U O C O M , y t i C s a s n a K I Y T I S R E V N U T S E W X T , n o t s u o H 9 0 0 , 9 1 0 0 2 , 3 0 2 3 , 0 1 I T T O R R A M Y B D R A Y T R U O C J N , n o n a b e L 7 7 1 , 5 3 — 0 3 8 , 8 K R A W E N — D R A Y T R U O C H T E B A Z I L E J N , h t e b a z i l E d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 0 1 0 2 0 1 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 0 1 0 2 8 0 0 2 8 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 7 8 , 5 9 8 4 , 2 7 7 5 , 6 8 3 3 , 7 3 8 9 , 7 7 3 8 , 7 4 5 8 , 6 7 4 7 , 1 8 3 7 , 7 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 9 6 7 , 6 1 9 6 2 , 5 1 0 0 5 , 1 5 0 9 1 8 8 , 1 2 8 0 7 , 9 1 3 7 1 , 2 8 0 7 , 9 1 9 6 0 , 8 2 8 5 7 , 4 2 1 1 3 , 3 6 1 5 , 2 8 2 6 , 6 3 8 2 9 , 8 2 0 0 7 , 7 1 6 7 , 1 2 6 2 , 8 2 2 6 2 , 4 2 0 0 0 , 4 0 2 3 , 3 1 0 5 , 4 2 4 0 1 , 2 2 7 9 3 , 2 4 4 5 , 3 0 3 6 , 1 1 0 3 7 , 9 0 0 9 , 1 7 2 0 , 1 7 3 5 , 3 2 5 5 4 , 2 2 2 8 0 , 1 8 5 0 , 2 1 2 9 , 7 3 1 2 2 , 5 3 0 0 7 , 2 5 3 1 , 2 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t 0 6 1 , 8 1 7 8 1 , 6 8 0 3 3 , 0 6 7 5 8 , 5 2 6 6 3 , 3 6 2 1 s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E — — — — — — — — — — 6 8 0 , 3 3 0 0 7 , 2 1 5 8 , 3 2 H G R U B S T T I P — D R A Y T R U O C N W O T N W O D A P , h g r u b s t t i P 4 6 3 , 4 1 0 0 5 , 1 4 1 8 , 7 H G R U B S T T I P — D R A Y T R U O C — 3 7 1 , 2 5 9 1 , 7 I D N O M H C R — D R A Y T R U O C A V , d n o m h c i R E M O H T S E W A P , h g r u b s t t i P 2 4 2 , 2 2 1 1 3 , 3 8 9 9 , 3 1 I — T T O R R A M Y B D R A Y T R U O C 7 6 1 , 7 2 0 0 7 , 7 0 3 8 , 2 2 I T T O R R A M Y B D R A Y T R U O C Y A W L A R E D E F — E L T T A E S A W , y a W l a r e d e F I T R O P R A E K O N A O R A V , e k o n a o R 2 4 9 , 0 2 0 0 0 , 4 0 3 0 , 6 1 I — T T O R R A M Y B D R A Y T R U O C 0 6 5 , 8 1 7 9 3 , 2 — I T T O R R A M Y B D R A Y T R U O C C N , n o t g n i m l i W R E T N E C M A I L L I W Z A , n o s c u T 3 0 7 , 8 0 0 9 , 1 2 3 5 , 5 M L A P T S E W — D R A Y T R U O C 7 9 3 , 0 2 2 8 0 , 1 4 6 9 , 6 5 7 5 8 , 5 2 — — I N O T G N H S A W — E E R T E L B U O D C D , n o t g n i h s a W C D A T N A L T A — E E R T E L B U O D A G , a t t e r a h p l A I A R E L L A G L F , t s a o C m l a P T R O P R A I 8 0 0 2 1 1 0 2 8 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 8 0 0 2 8 0 0 2 8 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 3 2 , 9 5 8 1 , 6 1 9 6 4 4 2 , 9 4 7 2 , 9 1 2 2 , 6 1 4 0 , 2 2 4 8 3 , 8 8 4 8 5 , 9 6 0 0 8 , 8 1 5 2 2 , 5 4 7 2 , 5 4 3 8 , 0 2 4 3 4 , 8 1 0 0 4 , 2 5 7 2 , 2 8 0 2 , 5 3 8 0 0 , 2 3 0 0 2 , 3 8 4 8 , 5 7 7 8 , 3 3 2 8 7 , 9 2 5 9 0 , 4 6 2 2 , 4 8 9 3 , 1 2 8 9 9 , 9 1 0 0 4 , 1 6 7 4 , 2 0 6 8 , 4 3 6 1 7 , 8 2 4 4 1 , 6 4 4 2 , 2 2 3 4 , 4 2 2 3 7 , 2 2 0 0 7 , 1 5 6 6 , 1 4 3 3 , 5 1 1 0 2 , 6 4 2 7 7 , 3 4 9 2 4 , 2 5 4 8 , 4 7 5 2 , 0 1 8 8 9 , 0 8 8 8 2 , 2 7 0 0 7 , 8 4 5 6 , 1 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D — — — — 4 3 6 , 0 6 0 0 7 , 8 9 7 8 , 1 4 2 7 4 , 6 2 4 4 1 , 6 6 8 8 , 3 1 7 2 9 , 8 3 9 2 4 , 2 — d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E — S E T I U S Y S S A B M E D M , y e l l a V t n u H E R O M I T L A B S A L L A D — T N O M R A F I X T , s a l l a D — S E T I U S N N I N O T P M A H O C , s g n i r p S o d a r o l o C R E V N E D 7 6 0 , 1 2 0 0 7 , 1 0 0 0 , 9 - E R O M I T L A B N N I N O T P M A H R O B R A H R E N N I D M , e r o m i t l a B — — — — — 7 2 1 6 5 5 , 5 2 5 9 0 , 4 2 2 5 , 7 1 0 0 4 , 1 — — 0 6 1 , 6 2 0 0 2 , 3 6 4 9 , 4 1 9 5 3 , 4 6 0 0 8 , 8 1 1 0 1 , 7 5 I - S N A L P E T I H W N N I A G , h t u l u D N O T P M A H N O T G N I L R U B N O T S O B — G H I A M , n o t g n i l r u B N W O T Y R R A T Y N , d r o f s m E l I S G N R P S O D A R O L O C — G H I O C , s g n i r p S o d a r o l o C I C D N O T G N H S A W — G H I 9 5 1 , 6 1 0 0 4 , 2 0 6 4 , 9 A P M A T N N I N E D R A G N O T L I H L F R O B Y , a p m a T C D , n o t g n i h s a W 1 4 7 , 9 3 4 3 , 9 8 9 3 ) 8 4 6 , 3 ( ) 0 9 ( 1 9 9 , 2 1 8 8 4 8 5 1 , 9 S E T I U S N N I N O T P M A H I T T E N N W G H T U L U D - 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 8 0 0 2 2 1 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 1 0 8 , 7 0 4 8 , 6 2 5 9 1 , 5 2 5 4 6 , 1 2 3 9 , 4 7 7 6 , 8 5 0 0 , 5 3 5 8 0 , 2 3 0 2 9 , 2 0 9 0 , 4 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t — — s t n e m t s u j d A d n a L o t s i s a B ) C ( 5 9 9 , 7 2 0 2 9 , 2 0 4 0 , 9 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 3 6 2 , 0 2 5 4 6 , 1 — Y N A B L A N N I N E D R A G N O T L I H 0 8 9 , 8 8 7 6 , 4 3 4 0 7 , 0 3 4 7 9 , 3 4 5 6 , 4 0 2 2 , 1 0 5 0 , 6 2 4 5 7 , 2 — 4 5 6 , 8 5 2 3 , 8 3 5 2 4 , 9 2 0 0 9 , 8 9 6 2 , 4 7 4 0 , 4 7 8 0 , 7 1 3 3 7 , 0 1 4 5 3 , 6 5 0 4 4 7 8 , 5 9 1 5 , 4 2 3 1 9 , 8 1 6 0 6 , 5 1 2 0 , 5 — — — 6 5 1 , 5 2 0 0 9 , 8 0 8 6 , 1 2 8 2 3 , 0 1 4 5 3 , 6 0 0 2 , 5 2 9 8 , 3 1 6 0 6 , 5 1 2 9 , 9 — 0 0 9 , 4 2 8 8 4 , 1 2 2 1 4 , 3 ) 7 1 6 , 5 3 ( ) 2 0 7 , 1 ( 5 0 1 , 7 5 4 1 1 , 5 — 6 8 9 , 1 2 2 7 , 4 2 2 4 9 , 3 2 0 8 7 1 1 9 , 1 3 3 2 , 8 1 4 3 3 , 6 5 4 3 3 , 6 5 5 6 3 0 1 , 7 3 0 1 , 7 — — 7 2 9 , 5 ) 8 8 1 , 6 1 ( — — — 8 2 1 1 3 0 , 2 2 0 8 7 0 9 6 , 4 1 7 0 4 , 0 5 1 9 2 , 3 2 — — 5 7 7 , 7 2 I F O Y T I S R E V N U — N O T L I H — N O M R A H N N I Y A D I L O H S U C U A C E S W O D A E M J N , s u c u a c e S L F , e l l i v s e n i a G I A D R O L F N N I N E D R A G N O T L I H L I , n o t s n a v E N N I N E D R A G N O T L I H M A H R U D - H G I E L A R C N , h g i e l a R N N I N E D R A G N O T L I H Y N , y r u b t s e W N N I N E D R A G N O T L I H C N , n o t g n i m l i W N N I N E D R A G N O T L I H H T R O N D R O F T R A H T C , r o s d n i W N N I N E D R A G N O T L I H Z A , x i n e o h P I X N E O H P S I U O L T S - N O T L I H N W O T N W O D O M , s i u o L t S Y N , y n a b l A T R O P R A I d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 8 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 3 1 0 2 3 1 0 2 3 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 8 2 , 1 1 9 1 7 , 3 3 4 6 0 , 2 3 5 5 6 , 1 7 7 4 , 1 7 3 3 , 7 3 1 4 , 6 7 6 9 , 8 0 5 5 , 7 0 6 4 , 4 4 0 3 , 6 6 5 1 8 0 2 1 6 1 0 9 3 , 3 2 0 9 9 , 0 2 0 0 4 , 2 9 1 9 , 2 5 9 7 , 2 2 5 9 4 , 8 1 0 0 3 , 4 6 6 8 , 2 6 2 8 , 7 2 8 4 3 , 6 2 8 7 4 , 1 4 4 9 , 6 2 1 0 , 7 2 9 0 8 , 3 2 3 0 2 , 3 9 0 5 , 2 9 4 4 , 4 1 9 4 5 , 2 1 0 0 9 , 1 2 9 7 , 1 6 6 6 , 9 1 6 6 7 , 6 1 0 0 9 , 2 5 5 7 , 2 7 9 8 , 5 5 1 4 8 , 0 4 6 5 0 , 5 1 0 0 9 , 4 7 8 5 1 , 9 6 2 4 7 , 5 3 3 9 , 7 5 6 5 1 , 6 5 7 7 7 , 1 — — — — — — — — — — — — — 9 2 1 7 8 5 , 0 3 5 5 6 , 1 0 9 6 , 4 1 N O T S U O H — D O O W E M O H 1 7 0 , 8 1 0 0 4 , 2 0 6 1 , 0 1 9 2 6 , 5 1 0 0 3 , 4 0 3 9 , 2 1 4 0 4 , 9 1 8 7 4 , 1 9 7 1 , 2 1 0 0 3 , 1 2 3 0 2 , 3 5 0 4 , 1 1 7 5 7 , 0 1 0 0 9 , 1 0 9 4 , 5 1 1 0 , 4 1 0 0 9 , 2 0 3 8 , 7 1 4 8 , 0 4 6 5 0 , 5 1 8 5 1 , 9 6 2 4 7 , 5 6 5 1 , 6 5 7 7 7 , 1 — — — S E T I U S D O O W E M O H M N , e u q r e u q u b l A I A R E L L A G X T , n o t s u o H S E T I U S D O O W E M O H A L , e g u o R n o t a B S E T I U S D O O W E M O H C N , y r a C S E T I U S D O O W E M O H J N , n o t e c n i r P S E T I U S D O O W E M O H N O L O S D N A L E V E L C H O , n o l o S I H T R O N S G N R P S O D A R O L O C S E T I U S D O O W E M O H O C , s g n i r p S o d a r o l o C O G A C H C I - O C A N O M L E T O H L I , o g a c i h C R E V N E D - O C A N O M L E T O H O C , r e v n e D E K A L T L A S - O C A N O M L E T O H T U , y t i C e k a L t l a S Y T I C d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 3 1 0 2 8 0 0 2 3 1 0 2 8 0 0 2 2 1 0 2 3 1 0 2 3 1 0 2 8 0 0 2 8 0 0 2 8 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 0 1 2 5 1 5 , 5 7 9 2 5 , 4 3 6 8 9 , 0 4 — 7 8 9 , 4 3 5 5 8 , 8 3 1 7 6 1 , 0 2 1 8 8 6 , 8 1 3 8 7 , 6 2 4 7 2 , 1 7 2 2 , 0 0 1 7 2 2 , 0 0 1 — 2 7 3 , 0 1 6 6 3 , 2 3 0 0 6 , 9 2 6 6 7 , 2 0 0 8 , 3 8 6 7 , 3 8 9 2 0 , 6 7 9 3 7 , 7 9 0 4 1 5 2 1 8 1 , 4 7 2 5 6 , 0 7 9 2 5 , 3 3 5 2 , 5 4 8 8 8 , 0 4 5 6 3 , 4 — 9 5 4 9 1 5 — — 7 2 8 , 5 1 8 0 1 , 0 4 8 0 1 , 0 4 — 7 3 5 , 3 5 9 9 , 8 3 9 9 , 5 6 5 0 , 2 3 5 2 2 , 3 2 1 3 8 , 8 4 1 3 , 5 2 5 3 , 4 3 2 5 3 , 4 3 — 5 0 7 , 7 — — — — — — — — — — 0 3 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 4 8 3 , 3 9 8 8 6 , 8 1 4 5 2 , 4 6 9 2 5 , 4 3 6 8 9 , 0 4 — d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E C O — Y C N E G E R T T A Y H A C , y t n u o C e g n a r O T S E W Y E K T T A Y H L F , t s e W y e K 7 2 2 , 0 0 1 — 0 0 5 , 6 4 A T N A S Y C N E G E R T T A Y H A C , a r a l C a t n a S A R A L C 1 4 1 , 9 2 6 6 7 , 2 1 1 5 , 4 1 / D R O F D E M N O T S O B — T T A Y H A M , d r o f d e M 0 1 5 , 5 7 9 3 7 , 7 6 1 1 , 1 5 I L E T O H N A M E H O B D N A R G 2 5 6 , 0 7 9 2 5 , 3 0 0 5 , 7 3 8 8 8 , 0 4 5 6 3 , 4 1 7 5 , 6 3 — — — 1 1 9 , 7 1 1 3 8 , 8 2 8 3 , 8 S N A E L R O W E N S W E O L A L , s n a e l r O w e N O D N A L R O L F , o d n a l r O A P S & L E T O H N E I R O L A V , a r i d n a x e l A Y R U T N E C L T A — T T O R R A M I A G , a t n a l t A R E T N E C I D E M — O G A C H C — T T O R R A M I 7 4 6 , 6 2 — 7 0 1 , 7 1 N O T S E L R A H C — T T O R R A M I C S , n o t s e l r a h C L I , o g a c i h C I C U T S I D 5 2 8 , 8 1 2 7 3 , 9 5 2 7 3 , 9 5 — 2 6 9 , 3 1 3 1 2 2 4 , 2 0 1 8 8 5 , 5 9 4 3 8 , 6 6 9 7 , 4 3 7 8 , 4 1 1 7 1 2 , 4 0 1 6 5 6 , 0 1 7 5 2 , 6 0 1 0 2 2 1 0 2 1 1 0 2 2 1 0 2 7 0 0 2 0 1 0 2 7 0 0 2 2 1 0 2 2 1 0 2 8 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 1 6 3 , 5 0 4 3 , 6 1 7 3 , 6 1 0 1 8 4 9 , 7 6 8 3 , 8 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 1 6 4 , 2 1 4 9 7 , 7 6 4 9 4 , 1 6 0 0 3 , 6 6 3 3 , 6 1 — 8 5 1 , 5 4 0 0 3 , 6 0 0 0 , 4 3 S A L L A D — T T O R R A M I X T , s a l l a D 4 9 6 , 9 6 8 5 5 , 9 5 6 3 1 , 0 1 8 9 5 , 4 8 9 4 , 1 0 6 9 , 4 5 8 3 6 , 8 2 1 7 , 5 3 E T A G N I F F I R G I - T T O R R A M 9 3 9 , 5 3 8 1 2 , 1 3 1 8 1 7 , 5 2 1 0 0 5 , 5 2 3 8 , 6 2 0 0 8 , 3 5 2 1 , 4 2 5 1 7 , 0 2 0 1 4 , 3 9 9 2 , 5 7 7 8 , 3 7 7 7 0 , 9 5 0 0 8 , 4 1 4 5 8 , 1 2 5 0 , 0 1 1 2 5 3 , 3 7 0 0 7 , 6 3 2 8 9 — — — — 3 2 2 , 7 5 0 0 8 , 4 1 2 6 2 , 9 3 Y E L L A V A P A N — T T O R R A M I A C , y e l l a V a p a N 0 7 3 , 2 7 0 0 7 , 6 3 4 7 3 , 4 5 O C S I C N A R F N A S - T O R R A M I A C , o c s i c n a r F n a S T R O P R A I 6 8 8 , 8 9 0 0 5 , 5 3 1 3 , 5 7 S D N A L D O O W — T T O R R A M I X T , s d n a l d o o W Y A W R E T A W 6 1 4 , 5 1 0 1 4 , 3 7 5 2 , 0 1 S E D T S E W — T T O R R A M I Y K , n o t g n i x e L T R O S E R 8 1 0 , 2 1 6 6 7 , 0 1 2 5 2 , 1 ) 3 4 9 , 2 ( ) 9 7 ( 9 0 7 , 3 1 1 3 3 , 1 9 8 8 , 9 S E T I U S Y T I L A U Q C S , n o t s e l r a h C A I , s e n i o M s e D S E N O M I — — — 2 9 7 , 0 9 4 3 8 , 6 0 0 0 , 7 9 A T N A L T A - E C N A S S I A N E R Y L R E V A W A G , a t n a l t A 0 6 9 , 7 9 6 5 6 , 0 1 0 0 0 , 3 8 M U T E R O B R A E C N A S S I A N E R X T , n i t s u A 0 1 4 , 5 5 — — E R O M I T L A B — N N I E C N E D I S E R D M , e r o m i t l a B d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 8 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 3 1 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 4 6 1 , 4 9 3 5 , 5 1 9 3 8 , 3 1 0 0 7 , 1 0 1 2 , 1 6 2 8 , 1 2 3 8 7 , 5 8 7 3 4 , 5 7 6 4 3 , 0 1 2 0 7 , 2 7 7 9 , 5 5 8 4 , 9 9 1 6 , 4 7 9 0 , 2 5 4 0 , 7 0 6 4 , 5 2 4 6 , 5 2 0 7 , 5 6 5 1 , 3 2 6 5 0 , 8 1 0 0 1 , 5 8 8 6 , 2 0 0 7 , 7 3 0 0 5 , 8 2 0 0 2 , 9 1 2 4 , 3 5 8 6 , 8 1 5 8 8 , 5 1 0 0 8 , 2 3 0 1 , 1 9 2 9 , 9 7 8 3 6 , 4 7 1 9 2 , 5 — 3 5 8 , 2 2 3 5 2 , 0 2 0 0 6 , 2 1 3 9 , 2 2 0 8 , 9 1 2 0 7 , 6 1 0 0 1 , 3 0 8 3 , 2 3 9 4 , 2 2 3 9 1 , 7 1 0 0 3 , 5 1 6 5 , 2 5 6 3 , 4 2 5 6 0 , 0 2 0 0 3 , 4 6 9 0 , 3 — — — — — — — — — — 2 3 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 5 3 7 , 2 7 6 4 3 , 0 1 2 5 1 , 1 3 9 2 6 , 2 1 0 0 7 , 1 0 0 9 , 6 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E N N I E C N E D I S E R X T , e l l i v s n w o r B — N N I E C N E D I S E R A M , e g d i r b m a C I E G D R B M A C 8 6 3 , 5 1 0 0 1 , 5 0 0 0 , 0 1 H T U O S N N I E C N E D I S E R - Y R U B N A R C K C W S N U R B I 9 7 0 , 5 2 0 0 2 , 9 0 5 6 , 0 2 — S S E R P Y C N N I E C N E D I S E R J N , y r u b n a r C S T I M A L A S O L A C , s s e r p y C 2 8 7 , 4 1 0 0 8 , 2 0 6 5 , 9 I T R O P R A W F D N N I E C N E D I S E R 8 3 6 , 4 7 1 9 2 , 5 0 0 0 , 0 4 R E V N E D N N I E C N E D I S E R O C , r e v n e D R E T N E C 2 2 3 , 7 1 0 0 6 , 2 0 7 9 , 8 K R A P N N I E C N E D I S E R L A R T N E C X T , s a l l a D 2 2 3 , 4 1 0 0 1 , 3 0 9 8 , 9 - T E S R E M O S N N I E C N E D I S E R X T , h t r o W t r o F - s a l l a D H T R O N 2 3 6 , 4 1 0 0 3 , 5 0 1 8 , 0 1 N N I E C N E D I S E R Y N , e g u a p p u a H N I L K N A R F J N , n i l k n a r F 9 6 9 , 6 1 0 0 3 , 4 0 5 5 , 2 1 E S A H C T S E W N N I E C N E D I S E R X T , e s a h c t s e W d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 8 0 0 2 7 0 0 2 7 0 0 2 8 0 0 2 7 0 0 2 3 1 0 2 3 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 2 5 8 , 5 1 7 0 , 5 4 0 7 , 8 8 9 1 , 3 0 5 8 , 5 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 1 5 8 , 0 2 1 5 3 , 7 1 0 0 5 , 3 4 0 2 , 3 6 2 9 , 7 2 3 2 9 , 6 2 3 0 0 , 1 3 3 3 , 2 5 8 2 , 0 1 5 8 7 , 9 0 0 5 6 8 2 9 6 5 , 3 2 9 6 8 , 9 1 0 0 7 , 3 8 6 2 , 2 6 3 6 , 3 2 6 3 8 , 9 1 0 0 8 , 3 2 0 0 , 1 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t 7 8 0 , 5 1 3 1 4 , 3 4 3 1 4 , 3 4 — 7 1 3 , 2 5 2 6 , 4 1 3 7 , 1 5 3 5 , 1 2 9 6 , 0 2 1 0 5 8 , 2 1 1 2 4 8 , 7 7 4 3 , 0 0 1 7 8 0 , 6 9 0 6 2 , 4 — — 2 8 5 , 9 1 2 8 3 , 6 1 0 0 2 , 3 9 4 5 , 1 3 3 1 s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E — — — — — — — — — 4 3 8 , 8 1 0 0 8 , 3 0 0 1 , 3 1 T S E W N N I E C N E D I S E R Y T I S R E V N U I X T , n o t s u o H 7 4 1 , 4 1 0 0 5 , 3 0 2 1 , 2 1 E L L I V H S A N N N I E C N E D I S E R 0 9 5 , 4 2 3 0 0 , 1 4 9 4 , 1 1 — N N I E C N E D I S E R E I S P E E K H G U O P Y N , e i s p e e k h g u o P N T T R O P R A I , e l l i v h s a N 9 9 4 , 9 0 0 5 0 0 8 , 5 E K O N A O R N N I E C N E D I S E R A V , e k o n a o R T R O P R A I 1 0 6 , 7 1 0 0 7 , 3 0 7 7 , 2 1 S M A I L L I W N N I E C N E D I S E R Z A , n o s c u T E R T N E C 6 9 0 , 1 4 — 5 4 1 , 0 1 K R A W E N - N N I E C N E D I S E R 3 3 8 , 4 1 0 0 2 , 3 0 3 1 , 9 S E T I U S L L I H G N R P S I T C , y r u b n a D H T E B A Z I L E J N , h t e b a z i l E 0 5 8 , 2 1 1 2 4 8 , 7 0 0 0 , 0 6 I N O T S U O H A R E L L A G N I T S E W 7 8 0 , 6 9 0 6 2 , 4 0 0 0 , 0 5 N O T S U O H S K A O N I T S E W X T , n o t s u o H X T , n o t s u o H 7 0 0 2 2 1 0 2 7 0 0 2 7 0 0 2 2 1 0 2 3 1 0 2 3 1 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 6 5 9 , 2 0 0 8 , 4 6 1 8 4 , 1 5 9 1 3 , 3 1 3 5 5 , 6 0 5 8 , 1 3 0 0 6 , 7 2 0 5 2 , 4 2 4 1 7 1 7 9 1 7 , 1 1 9 1 7 , 1 1 — ) 3 0 4 ( 6 6 4 , 7 4 3 7 , 1 3 4 8 8 , 9 2 0 5 8 , 1 1 0 1 1 3 9 , 7 1 6 4 9 , 1 9 6 4 9 , 1 9 — 9 4 9 , 1 1 2 9 7 2 4 4 , 2 2 4 1 , 8 9 1 6 , 6 8 0 3 , 4 2 4 4 , 1 4 5 8 4 , 7 3 7 5 9 , 3 6 5 1 , 0 3 1 2 3 8 , 0 0 1 4 2 3 , 9 2 2 4 3 , 4 4 1 8 7 , 7 3 1 6 5 , 6 2 0 9 9 1 9 , 8 2 8 6 5 , 7 2 1 5 3 , 1 0 6 2 , 1 2 2 1 , 8 1 2 2 1 , 8 1 — 5 6 7 , 1 3 — — — — — — — — — — — — 4 3 1 8 5 4 , 7 2 0 5 2 , 4 — 2 2 1 , 2 1 — 8 3 8 , 7 3 8 7 , 9 2 0 5 8 , 1 0 0 7 , 8 1 7 9 9 , 9 7 — 2 9 5 , 6 5 8 7 4 , 1 5 9 1 3 , 3 1 2 1 8 , 4 4 5 8 4 , 7 3 7 5 9 , 3 5 7 0 , 1 2 2 3 8 , 0 0 1 4 2 3 , 9 2 8 4 7 , 2 7 9 7 8 , 6 3 1 6 5 , 6 8 0 3 , 6 2 1 5 3 , 1 7 5 3 , 6 1 — — — — I T N E D U T S C N H C E T Y L O P U S A G N I S U O H Z A , a s e M S E M O H T N E M T R A P A S D L E I F N I , n o t g n i m o o l B L F L A R T N E C T A E S U O H V N U I L F , o d n a l r O ) N N E P ( I N A D A R E H T A P , n a i d a R N O T R E L L U F E S U O H V N U I A C , n o t r e l l u F T A E S U O H V N U I E L L I V E T T E Y A F R A , e l l i v e t t e y a F B A U — T E E R T S h t 4 1 L A , m a h g n i m r i B g n i s u o H t n e d u t S I E L L I V S E N A G T A E S U O H V N U I E L L I V S T N U H T A E S U O H V N U I X T , e l l i v s t n u H E T T E Y A F A L T A E S U O H V N U I L A , e t t e y a f a L L F , e l l i v s e n i a G d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 3 1 0 2 3 1 0 2 2 1 0 2 2 1 0 2 5 0 0 2 7 0 0 2 5 0 0 2 7 0 0 2 7 0 0 2 0 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 8 2 4 5 4 5 , 1 0 7 3 , 1 7 1 9 , 1 9 1 4 1 0 , 3 7 3 6 , 9 8 0 2 , 2 1 5 0 , 2 6 9 9 , 3 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 6 7 1 , 5 1 6 6 1 , 3 1 0 1 0 , 2 5 5 7 , 7 9 8 9 9 , 1 9 7 5 7 , 5 1 7 5 , 8 3 1 7 3 , 6 3 0 0 2 , 2 7 1 7 , 2 5 2 4 6 , 8 4 5 7 0 , 4 — — 7 6 — — — — ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 8 9 9 , 1 9 7 5 7 , 5 0 0 4 , 3 5 6 6 1 , 3 1 0 1 0 , 2 5 2 9 , 7 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E E P M E T T A E S U O H V N U I Z A , e p m e T U C T T A E S U O H V N U I X T , h t r o W h t r o F 4 6 3 , 6 3 0 0 2 , 2 0 6 3 , 4 2 T A E R T E R E H T T A E S U O H V N U I C N , h g i e l a R H G I E L A R 6 3 6 , 8 4 5 7 0 , 4 7 2 2 , 2 3 T A E R T E R E H T T A E S U O H V N U I 2 9 2 7 8 1 5 0 1 ) 9 5 1 ( ) 5 3 ( 6 4 3 0 4 1 9 9 7 , 5 1 9 9 5 , 3 1 0 0 2 , 2 1 6 9 0 , 1 4 6 2 2 , 0 4 0 7 8 3 9 1 3 8 9 , 3 1 3 9 0 , 0 1 0 9 8 , 3 9 5 2 , 0 1 9 5 3 , 9 0 0 9 — — — — — — 8 9 5 , 3 1 0 0 2 , 2 3 9 0 , 0 1 0 9 8 , 3 9 5 3 , 9 0 0 9 — — 3 3 0 , 0 4 0 7 8 9 2 5 , 4 2 — — 1 2 7 , 7 3 1 1 5 , 4 3 0 1 2 , 3 4 2 4 , 2 ) 0 5 1 ( 7 8 0 , 2 3 0 6 3 , 3 3 3 1 , 5 1 5 3 1 T E E R T S T E K R A M 0 0 5 1 1 X T , y t i C o t n i c a J e r o c - n o N E E S S A H A L L A T L F , e e s s a h a l l a T H C S U B R E S U E H N A A M , s n e v e D D N A L E V E L C T & T A H O , d n a l e v e l C L U A P T S - S A L T A N M , l u a P t S M L U W E N - S A L T A N M , l m U w e N L A 1 2 1 K C O L B , m a h g n i m r i B 2 0 0 , 3 6 7 5 , 3 1 6 7 8 , 1 1 0 0 7 , 1 7 3 — 9 3 8 , 1 1 0 0 7 , 1 6 3 1 6 0 0 2 5 0 0 2 5 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 6 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A — 4 5 7 7 — 7 0 2 8 1 5 8 2 9 4 5 , 5 7 9 1 , 8 0 8 3 8 1 7 2 6 3 4 4 , 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 3 9 0 , 8 1 7 1 , 0 3 6 4 6 , 8 2 5 2 5 , 1 — 9 0 6 , 8 2 5 2 5 , 1 9 3 9 , 5 1 I E C I F F O T N O P E D I S E G D R B I 7 3 — — 6 6 7 , 4 5 8 2 3 8 7 ) 4 7 7 , 5 ( ) 7 7 3 ( 0 4 5 , 0 1 0 6 1 , 1 ) 5 1 1 ( — 0 0 4 7 4 7 , 3 0 5 4 , 4 ) 6 8 8 , 1 1 ( ) 0 7 1 , 5 ( 3 3 6 , 5 1 0 2 6 , 9 9 7 6 4 1 3 0 5 7 6 8 1 7 3 4 2 1 6 7 5 ) 3 6 2 , 1 ( ) 9 6 ( 2 4 3 , 1 ) 6 1 8 ( ) 3 1 1 ( 2 6 9 ) 3 1 5 , 2 ( ) 6 7 2 ( 6 1 0 , 3 0 7 0 5 1 0 0 4 ) 0 5 9 , 2 ( ) 2 0 7 ( 7 1 8 , 3 8 7 2 , 1 — — — — — — — — U O Y A B G N I T N U H - S ' I L I H C X T , y t i C o t n i c a J A P , h g r u b s t t i P G D L B Y T I C O T N C A J I - K R A M E N C I X T , y t i C o t n i c a J K R O Y W E N ) G F C ( S N E Z I T I C Y N , h g r u b s t t a l P W E N ) G F C ( S N E Z I T I C H N , r e t s e h c n a M I E R H S P M A H E D O H R ) G F C ( S N E Z I T I C I R , e c n e d i v o r P D N A L S I I S D N A L H G H R E V N E D O C , h c n a R s d n a l h g i H ) G F C ( S N E Z I T I C I A N A V L Y S N N E P A P , n w o t s a l l a D ) G F C ( S N E Z I T I C I A N A V L Y S N N E P A P , k r o Y 6 0 0 2 3 1 0 2 8 0 0 2 9 0 0 2 1 1 0 2 0 1 0 2 0 1 0 2 1 1 0 2 0 1 0 2 0 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A — 4 3 8 2 6 6 5 3 4 3 3 0 , 1 5 3 9 6 2 9 , 6 2 8 6 , 5 2 7 3 , 7 7 0 7 , 7 9 1 1 , 7 6 9 3 , 4 9 7 7 , 9 1 4 3 7 , 9 1 5 4 — 1 5 7 , 7 7 6 7 , 4 4 8 9 , 2 — 1 7 5 6 , 7 2 0 5 7 , 4 1 1 0 5 2 , 9 9 0 0 5 , 5 1 7 6 1 , 3 1 6 9 , 6 1 9 1 5 , 4 9 7 3 1 , 3 9 2 8 3 , 1 7 3 1 , 3 9 8 8 3 , 9 1 — 8 8 3 , 9 1 1 3 7 , 5 5 9 1 , 1 — — — — — — — — 3 3 7 , 9 1 5 4 — — 2 8 3 , 1 8 8 3 , 9 1 1 3 7 , 5 5 9 1 , 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 7 6 7 , 4 4 8 9 , 2 0 0 4 , 1 1 3 8 0 , 6 9 0 0 5 , 5 1 0 5 7 , 8 6 A Z A L P E V I T U C E X E S E L L U D — — — — — — — — I S N A L P G N I L L O R - L L E K S A H X T , l l e k s a H Y T I L I C A F L A N O I T C E R R O C N O S D U H Y T I L I C A F o C , n o s d u H D N A S O D N A L R O A I L F , o d n a l r O A V , n o d n r e H A C , t n o m e r F T N O M E R F E L A D N O V A E N G A M I I Z A , e l a d n o v A I I E G D I L O O C E N G A M I I Z A , e g d i l o o C Z A , e g d i l o o C Y R E V O C S I D E N G A M I I E N O T S E R I F E N G A M I I O C , e n o t s e r i F D M , e r o m i t l a B E G D I L O O C E N G A M I I 2 1 9 , 4 0 7 7 7 1 0 , 1 ) 0 9 4 , 1 ( 5 9 8 , 3 0 6 2 , 2 7 1 1 , 7 9 3 4 , 6 0 9 5 0 8 6 — — 2 8 8 , 5 0 9 4 , 1 5 2 0 , 1 — — — 7 5 8 , 4 0 9 4 , 1 7 1 1 , 7 9 3 4 , 6 0 9 5 0 8 6 7 3 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 0 1 0 2 0 1 0 2 0 1 0 2 3 1 0 2 3 1 0 2 1 1 0 2 5 0 0 2 1 1 0 2 1 1 0 2 0 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 7 0 4 , 1 1 6 0 , 1 1 4 2 , 1 — — — — — — — d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 1 8 4 , 0 1 6 0 7 , 9 5 7 7 4 5 4 , 8 4 0 3 , 7 0 5 1 , 1 — — 0 9 0 , 1 1 5 1 9 , 9 5 7 1 , 1 6 0 6 , 2 4 7 2 , 1 1 9 8 3 , 1 5 8 8 , 9 6 9 9 , 8 0 5 3 , 2 0 6 9 9 1 3 , 4 1 8 6 , 9 8 3 9 , 8 8 0 1 , 1 8 8 8 , 7 — — — — — 0 5 3 , 2 0 6 9 9 1 3 , 4 1 8 6 , 9 8 3 9 , 8 — — — — — — — — — — — — — — ) 0 8 1 , 4 ( ) 9 4 3 , 9 ( — ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 8 3 1 4 0 3 , 7 0 5 1 , 1 9 0 3 , 7 5 7 1 , 1 — — — d n a s g n i d l i u B s t n e m e v o r p m I 6 0 7 , 9 5 7 7 d n a L e c n a r b m u c n E 9 8 3 , 1 5 8 8 , 9 4 9 3 , 9 1 8 0 1 , 1 8 8 8 , 7 1 9 1 , 8 — — — — — 0 5 3 , 2 0 6 9 9 9 4 , 8 0 3 0 , 9 1 8 3 9 , 8 — 0 0 5 — — — D N O M A L E P O H E N G A M I I C D , n o t g n i h s a W H C N A R O G D N I I I E N G A M I R E T N E C N W O T E N G A M I I L F , t s a o C m l a P O C , s g n i r p S o d a r o l o C I K R A P E T N O P H T R O N C S , n a h a n a H S A M U L P S A L A C , e s o J n a S T S R I F H T R O N A C , e s o J n a S I E G D R D L E B T N X T , n o t s u o H I I K R A P K A O X T , s a l l a D S R T K R A P K A O X T , s a l l a D O G A L L E D O Z Z A L A P L F , o d n a l r O 7 0 0 2 5 0 0 2 7 0 0 2 7 0 0 2 3 1 0 2 3 1 0 2 7 0 0 2 7 0 0 2 3 1 0 2 3 1 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D — — 5 7 6 8 9 2 — — 5 7 6 8 9 2 — — d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t ) 0 3 9 , 1 ( ) 2 4 2 ( s t n e m t s u j d A d n a L o t s i s a B ) C ( — — 5 0 6 , 2 0 4 5 — — d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 6 0 6 , 1 2 8 2 , 9 9 9 7 7 , 9 7 3 0 5 , 9 1 ) 5 4 6 , 7 0 2 ( ) 7 9 2 , 6 1 ( 4 2 4 , 7 8 2 0 0 8 , 5 3 4 0 7 , 7 5 1 4 9 2 — — 9 6 1 8 2 3 — — 4 5 3 , 9 9 5 9 , 5 2 6 9 , 7 7 0 3 , 1 0 7 8 , 1 1 9 3 , 2 0 0 6 , 4 5 8 7 , 7 9 6 5 , 1 ) 5 3 9 , 6 ( ) 1 8 5 ( 0 2 7 , 4 1 0 5 1 , 2 0 0 0 , 1 1 5 6 6 , 1 4 9 2 , 4 4 4 7 , 4 8 1 2 , 3 7 5 7 0 7 4 , 1 0 5 5 0 0 4 2 8 3 9 0 0 , 2 — — — ) 1 ( — — — — — — 4 4 7 , 4 8 1 2 , 3 7 5 7 1 7 4 , 1 0 5 5 0 0 4 — — — 5 6 6 , 1 4 9 2 , 4 5 3 3 , 4 2 8 3 9 0 0 , 2 0 3 7 , 2 5 9 2 , 2 5 0 3 , 2 5 9 2 , 2 5 0 3 , 2 7 2 0 , 3 9 3 1 H G U O R O B S L L I H H G I E L A R C N , h g i e l a R - T N A R U A T S E R S S A R G T L A S U O Y A B G N I T N U H X T , y t i C o t n i c a J L I , s e t a t s E n a m f f o H R E T N E C C B S I C R T C E L E R E D I E N H C S L I , k r a P s e v o L C N I K N A B T S U R T N U S C N , d r o c n o C C N I E C I F F O T S U R T N U S C N , m e l a S - n o t s n i W A C , e l a v y n n u S A R O N O S I T N O P H T U O S A C , a m u l a t e P E R O M A C Y S A C , s a t i p i M A C , t n o m e r F I H C E T d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 3 1 0 2 3 1 0 2 3 1 0 2 8 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A — — — d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 3 0 6 , 4 5 0 4 , 1 3 5 0 3 , 6 2 0 0 1 , 5 3 0 3 , 6 2 0 0 1 , 5 — I K C R E D E R F - H T L A E H D E T I N U D M , k c i r e d e r F 5 6 2 6 5 8 , 6 1 8 3 5 , 3 1 8 1 3 , 3 ) 7 8 3 , 7 1 ( ) 9 4 5 , 1 ( 5 2 9 , 0 3 7 6 8 , 4 5 1 1 , 0 2 - L A U T U M N O T G N H S A W I 5 9 0 , 0 2 2 0 9 , 6 9 2 0 9 , 2 8 0 0 0 , 4 1 4 5 8 , 3 — 8 4 0 , 9 7 0 0 0 , 4 1 0 5 9 , 9 5 A Z A L P E T A G D L R O W A V , n o d n r e H N O T G N I L R A X T , n o t g n i l r A 4 5 4 , 1 5 2 , 1 2 5 6 , 5 0 2 , 8 1 2 3 , 9 4 8 , 6 1 3 3 , 6 5 3 , 1 2 0 6 , 1 9 1 ) 2 9 1 , 5 4 ( 9 1 7 , 7 5 6 , 6 3 2 5 , 1 0 4 , 1 7 4 9 , 4 0 9 , 3 s l a t o T 0 4 1 8 2 6 , 9 7 0 7 , 4 1 2 9 , 4 7 0 7 , 4 1 2 9 , 4 8 5 1 , 0 1 7 6 2 , 3 1 8 1 9 , 7 9 4 3 , 5 — — 8 1 9 , 7 9 4 3 , 5 0 0 4 , 4 1 ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 7 7 7 , 2 2 5 4 0 , 0 1 2 3 7 , 2 1 5 4 0 , 0 1 2 3 7 , 2 1 8 6 8 , 4 1 — 2 — — A C I I H C E T , t n o m e r F A C R E B M I T , t n o m e r F A C , e s o J n a S E L B M R T I d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 8 0 4 , 1 0 0 7 , 1 7 9 7 , 1 — 9 5 9 , 2 8 2 0 , 3 6 4 1 , 4 0 8 1 , 2 6 1 3 , 3 9 3 5 , 3 3 0 9 , 6 1 9 7 , 8 5 8 0 , 9 5 7 5 3 0 5 , 5 0 0 4 , 1 1 7 5 , 6 0 2 2 , 2 5 0 1 , 7 0 8 9 , 1 — 2 7 1 — 1 4 7 5 ) 6 7 8 ( 9 5 7 , 3 1 9 5 5 , 1 1 0 0 2 , 2 0 3 5 , 3 1 0 3 8 , 1 1 0 0 7 , 1 6 9 5 , 8 1 6 9 1 , 6 1 0 0 4 , 2 7 1 0 , 5 1 7 1 5 , 8 0 0 5 , 6 4 7 2 , 4 1 4 7 2 , 2 1 0 0 0 , 2 8 2 5 , 0 2 8 2 8 , 3 1 0 0 7 , 6 — — — — — — — — — — — — — — — — 1 4 1 3 0 5 , 5 0 0 4 , 1 0 8 4 , 3 e l a S r o f d l e H s a d e i f i s s a l C s e i t r e p o r P E L L I V N E E R G - O L - I B C S , e l l i v n e e r G 9 9 3 , 6 0 2 2 , 2 5 0 7 , 4 I I I , I I , I S T H G I E H E L A D N E L G L I , s t h g i e H e l a d n e l G 5 0 1 , 7 0 8 9 , 1 4 5 4 , 5 7 7 8 4 7 5 8 6 9 D A O R N O T G N X E L I A G , s n e h t A D A O R N W O T W E N A V , h c a e B a i n i g r i V 9 5 5 , 1 1 0 0 2 , 2 4 6 0 , 8 E L L I V R E L K C I S - P O H S & P O T S 0 3 8 , 1 1 0 0 7 , 1 9 8 0 , 8 L O T S I R B - P O H S N P O T S I R , l o t s i r B J N , e l l i v r e l k c i S 6 9 1 , 6 1 0 0 4 , 2 5 3 4 , 0 1 D N A L R E B M U C - P O H S N P O T S I R , d n a l r e b m u C 7 1 5 , 8 0 0 5 , 6 7 8 9 , 8 I M A H G N M A R F - P O H S N P O T S 4 7 2 , 2 1 0 0 0 , 2 — 8 2 8 , 3 1 0 0 7 , 6 1 2 3 , 2 1 K R A P E D Y H - P O H S N P O T S Y N , k r a P e d y H N E D L A M - P O H S N P O T S A M , n e d l a M A M , m a h g n i m a r F d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 6 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 8 6 5 , 3 4 8 4 , 3 7 1 2 6 9 9 2 1 4 2 1 5 4 1 4 1 1 6 7 9 9 1 8 3 9 , 7 1 8 3 9 , 3 1 0 0 0 , 4 3 1 8 , 7 1 3 1 6 , 3 1 0 0 2 , 4 2 9 6 , 1 2 8 0 , 1 3 0 8 , 1 9 6 8 , 1 1 8 2 , 1 4 3 4 , 1 4 8 0 , 1 3 3 6 , 2 7 1 0 , 1 9 4 4 3 0 6 4 8 5 1 8 6 4 3 5 9 5 3 3 3 9 5 7 6 3 3 6 0 0 2 , 1 5 8 2 , 1 0 0 6 0 0 9 5 2 7 0 0 7 , 1 — — ) 1 ( — — — — — — — — — — — — — — — — — 2 4 1 8 3 9 , 3 1 0 0 0 , 4 0 2 0 , 0 1 I N O T G N H T U O S - P O H S N P O T S T C , n o t g n i h t u o S 3 1 6 , 3 1 0 0 2 , 4 7 2 7 , 0 1 T T O C S P M A W S - P O H S N P O T S 8 1 0 , 1 9 4 4 3 0 6 4 8 5 1 8 6 4 3 5 9 5 3 3 3 9 5 7 6 3 3 6 0 0 2 , 1 5 8 2 , 1 0 0 6 0 0 9 5 2 7 6 6 9 6 2 4 9 3 8 9 1 8 0 4 9 7 3 7 9 9 4 0 0 7 , 1 8 0 3 , 1 L A I K N A B T S U R T N U S L A , s l a o h S e l c s u M L A I K N A B T S U R T N U S L A , n e l l i K L F I K N A B T S U R T N U S L F , y t i C a m a n a P L F I K N A B T S U R T N U S L F , t n i o P t e n o y a B L F I K N A B T S U R T N U S L F , h c a e B a n o t y a D L F I K N A B T S U R T N U S L F , a t o s a r a S L F I K N A B T S U R T N U S L F , a l o c a s n e P L F I K N A B T S U R T N U S L F , r e t a w r a e l C A M , t t o c s p m a w S d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 8 2 1 3 2 1 1 8 1 1 7 1 2 2 1 4 1 1 2 5 1 8 6 9 0 1 4 6 1 9 1 8 , 1 9 2 5 , 1 9 4 7 , 2 2 0 7 , 1 0 5 0 , 2 4 3 6 , 1 2 1 1 , 2 6 9 8 2 6 4 , 1 1 2 7 , 1 1 0 6 9 7 5 9 4 8 2 0 8 4 7 5 4 3 5 2 1 7 1 2 3 9 0 5 1 7 7 8 1 2 , 1 0 5 9 0 0 9 , 1 0 0 9 6 7 4 , 1 0 0 1 , 1 0 0 4 , 1 5 7 5 3 5 9 0 5 9 — — — — — — — — — — — — — — — — — — — — 3 4 1 1 0 6 9 7 5 9 4 8 2 0 8 4 7 5 4 3 5 2 1 7 1 2 3 9 0 5 1 7 7 8 1 2 , 1 0 5 9 9 2 8 2 1 8 0 0 9 , 1 2 7 1 , 1 0 0 9 4 2 1 , 1 6 7 4 , 1 0 0 1 , 1 0 0 4 , 1 5 7 5 3 5 9 0 5 9 4 0 8 8 4 7 2 8 9 6 4 4 3 0 7 3 6 0 , 1 L F I K N A B T S U R T N U S L F , h c a e B a n o t y a D L F I K N A B T S U R T N U S L F , a n o t l e D L F I K N A B T S U R T N U S L F , n o t a R a c o B L F I K N A B T S U R T N U S L F , r e t a w r a e l C L F I K N A B T S U R T N U S L F , a l a c O L F I K N A B T S U R T N U S L F , t s a o C m l a P L F I K N A B T S U R T N U S L F , e d a e M t r o F L F I K N A B T S U R T N U S L F , k r a P d n a l t i u r F L F I K N A B T S U R T N U S L F , a l a c O L F I K N A B T S U R T N U S L F , h c a e B d n o m O r d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 1 1 8 7 7 3 1 7 6 8 1 1 2 5 1 3 0 3 0 4 1 2 1 1 1 0 1 7 3 6 , 1 1 9 9 1 9 5 , 1 4 1 9 3 1 6 , 1 5 1 2 , 1 2 2 5 , 3 6 6 5 , 1 5 2 5 , 1 4 7 5 , 1 7 3 5 6 6 3 1 4 6 4 1 3 3 5 5 5 1 7 0 0 1 , 1 5 2 6 0 5 9 0 0 6 0 6 0 , 1 0 0 5 2 2 4 , 1 0 0 1 , 2 6 5 6 5 2 5 4 7 4 0 1 9 0 0 0 , 1 0 0 1 , 1 — — — — — — — — — — — — — — — — — — — — 4 4 1 7 3 5 6 6 3 1 4 6 4 1 3 3 5 5 5 1 7 0 0 1 , 1 5 2 6 0 5 9 0 0 6 0 6 0 , 1 0 0 5 0 4 7 9 0 5 4 8 8 3 3 4 4 6 7 6 8 9 2 2 4 , 1 0 0 1 , 2 3 9 9 , 1 6 5 6 5 2 5 4 7 4 0 1 9 0 0 0 , 1 0 0 1 , 1 6 0 9 4 2 7 3 5 6 L F I K N A B T S U R T N U S L F , e l l i v s e n i a G L F I K N A B T S U R T N U S L F , d n a l e k a L L F I K N A B T S U R T N U S L F , d n u o S e b o H L F I K N A B T S U R T N U S L F , y r r e b l u M L F I K N A B T S U R T N U S L F , h c a e B r u o b r a H n a i d n I L F I K N A B T S U R T N U S L F , s s e n r e v n I L F I K N A B T S U R T N U S L F , y r a M e k a L L F I K N A B T S U R T N U S L F , e n r u o b l e M L F I K N A B T S U R T N U S L F , g r u b s r e t e P . t S L F I K N A B T S U R T N U S L F , z t u L d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 9 7 1 2 7 9 0 2 5 6 1 1 8 1 6 8 0 5 1 8 1 1 2 3 1 3 8 1 6 1 1 , 1 0 7 0 , 1 9 7 8 , 1 2 7 2 , 1 0 5 6 , 2 3 0 7 5 0 4 , 2 2 5 4 , 1 0 2 8 , 1 9 0 5 , 1 1 4 8 0 4 3 9 7 9 2 7 7 0 5 8 3 0 4 5 0 7 2 5 5 0 2 6 9 5 8 5 7 2 0 3 7 0 0 9 0 0 5 0 0 8 , 1 0 0 3 0 0 7 , 1 0 0 9 0 0 2 , 1 0 5 6 — — — — — — — — — — — — — — — — — — — — 5 4 1 1 4 8 0 4 3 9 7 9 2 7 7 0 5 8 3 0 4 5 0 7 2 5 5 0 2 6 9 5 8 5 7 2 0 3 7 0 0 9 0 0 5 9 7 1 , 1 9 6 4 1 6 3 , 1 5 6 0 , 1 0 0 8 , 1 2 7 1 , 1 0 0 3 0 0 7 , 1 0 0 9 0 0 2 , 1 6 5 5 2 7 9 1 6 7 1 6 8 0 5 6 6 8 1 , 1 L F I K N A B T S U R T N U S L F , a n n a i r a M L F I K N A B T S U R T N U S L F , e l l i v s e n i a G L F I K N A B T S U R T N U S L F , h c a e B o r e V L F I K N A B T S U R T N U S L F , a r o D t n u o M L F I K N A B T S U R T N U S L F , a t o s a r a S L F I K N A B T S U R T N U S L F , h c a e B a n r y m S w e N L F I K N A B T S U R T N U S L F , d n a l e k a L L F I K N A B T S U R T N U S L F , e i c u L . t S t r o P L F I K N A B T S U R T N U S L F , e e b o h c e e k O L F I K N A B T S U R T N U S L F , h c a e B d n o m O r d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 3 5 1 8 9 1 5 1 3 5 1 1 9 1 0 0 1 7 9 2 3 2 1 7 8 3 4 2 9 1 8 , 1 4 3 4 , 1 8 5 4 , 2 2 4 7 , 1 6 9 6 , 2 9 9 4 , 1 7 9 1 , 4 7 6 0 , 1 8 1 2 , 1 6 0 7 , 2 9 1 7 9 5 4 8 0 7 9 1 7 6 9 8 9 6 4 0 0 1 , 1 5 7 9 0 5 7 , 1 3 2 0 , 1 0 0 8 , 1 0 3 0 , 1 4 9 3 , 1 3 0 8 , 2 7 7 5 6 0 4 0 9 4 2 1 8 1 4 1 , 1 5 6 5 , 1 — — — — — — — — — — — — — — — — — — — — 6 4 1 9 1 7 9 5 4 8 0 7 9 1 7 6 9 8 9 6 4 0 0 1 , 1 5 7 9 0 5 7 , 1 3 2 0 , 1 9 9 9 4 3 6 3 9 9 2 9 9 0 0 8 , 1 7 3 2 , 1 0 3 0 , 1 7 4 6 4 9 3 , 1 3 0 8 , 2 8 3 9 , 1 7 7 5 6 0 4 0 9 4 2 1 8 6 9 7 1 6 5 1 4 1 , 1 5 6 5 , 1 6 8 5 , 1 L F I K N A B T S U R T N U S L F , y e r p s O L F I K N A B T S U R T N U S L F , y e h c i R t r o P w e N L F I K N A B T S U R T N U S L F , s e n i P e k o r b m e P L F I K N A B T S U R T N U S L F , o d n a l r O L F I K N A B T S U R T N U S L F , h c a e B o n a p m o P L F I K N A B T S U R T N U S L F , e l l i v n o s k c a J L F I K N A B T S U R T N U S L F , i m a i M L F I K N A B T S U R T N U S L F , e g d e l k c o R L F I K N A B T S U R T N U S L F , a p m a T L F I K N A B T S U R T N U S L F , e l o n i m e S d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 2 5 1 2 9 3 6 1 1 7 2 6 1 1 6 1 7 4 1 4 9 3 2 1 4 9 1 4 4 1 , 2 2 9 2 , 1 4 6 2 , 2 5 3 9 1 6 3 , 1 8 5 7 , 1 9 3 7 , 1 1 9 2 , 1 6 2 7 , 1 3 1 3 , 3 4 1 7 1 3 4 4 6 7 5 3 3 1 6 7 8 5 7 9 8 6 1 4 4 6 7 5 3 1 9 0 3 4 , 1 1 6 8 0 0 5 , 1 0 0 6 0 0 6 0 0 0 , 1 0 5 0 , 1 0 5 8 0 5 1 , 1 0 0 4 , 2 — — — — — — — — — — — — — — — — — — — — 7 4 1 4 1 7 1 3 4 4 6 7 5 3 3 1 6 7 8 5 7 9 8 6 1 4 4 6 7 5 3 1 9 0 3 4 , 1 1 6 8 5 8 9 4 9 5 0 0 5 , 1 1 7 0 , 1 0 0 6 0 0 6 2 6 4 7 6 0 , 1 0 0 0 , 1 2 6 0 , 1 0 5 0 , 1 0 5 8 0 5 1 , 1 1 5 9 9 0 6 5 9 7 0 0 4 , 2 9 5 2 , 1 L F I K N A B T S U R T N U S L F , o d n a l r O L F I K N A B T S U R T N U S L F , e l l i v n o s k c a J L F I K N A B T S U R T N U S L F , a l a c O L F I K N A B T S U R T N U S L F , e l l i v s k o o r B L F I K N A B T S U R T N U S L F , l l i H g n i r p S L F I K N A B T S U R T N U S L F , e n i t s u g u A . t S L F I K N A B T S U R T N U S L F , e i c u L . t S t r o P L F I K N A B T S U R T N U S L F , h c a e B o r e V L F I K N A B T S U R T N U S L F , e z e e r B f l u G L F I K N A B T S U R T N U S L F , y r r e b l e s s a C d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 2 2 7 9 1 4 1 1 4 1 8 6 1 9 3 1 4 2 1 3 0 2 2 8 1 0 1 7 5 7 7 , 3 6 5 0 , 1 2 0 2 , 2 1 4 2 , 1 0 0 6 , 2 2 0 1 , 2 4 3 6 , 1 5 5 0 , 3 7 2 5 , 1 5 7 0 , 1 0 0 7 , 2 6 5 4 2 6 6 1 6 6 6 8 7 2 5 6 4 8 5 5 5 9 2 5 8 0 0 6 0 4 5 , 1 0 8 5 4 1 8 , 1 0 5 4 , 1 0 5 0 , 1 0 0 1 , 2 5 7 6 3 1 5 , 0 1 9 2 3 , 3 4 8 1 , 7 — — — — — — — — — — — — — — ) 6 2 ( — — — — — 8 4 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 6 5 4 2 6 6 1 6 6 6 8 7 2 5 6 4 8 5 5 5 9 2 5 8 0 0 6 0 4 5 , 1 0 8 5 3 3 6 3 1 9 1 1 9 0 4 8 , 1 5 8 0 , 1 0 5 4 , 1 0 5 0 , 1 9 9 8 6 7 6 0 0 1 , 2 4 1 1 , 1 5 7 6 3 0 0 , 1 9 2 3 , 3 4 8 1 , 7 7 5 8 , 3 5 7 0 , 1 0 0 7 , 2 4 9 4 , 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E L F I K N A B T S U R T N U S L F , k r a P r e t n i W L F I K N A B T S U R T N U S L F , y t i C t n a l P L F I K N A B T S U R T N U S L F , g r u b s r e t e P . t S L F I K N A B T S U R T N U S L F , h c a e B d n o m O r L F I K N A B T S U R T N U S L F , d u o l C . t S t s e W L F I K N A B T S U R T N U S L F , c a r a m a T A G I K N A B T S U R T N U S A G , k c i w s n u r B A G I K N A B T S U R T N U S A G , w a s e n n e K A G I K N A B T S U R T N U S A G , s u b m u l o C A G I K N A B T S U R T N U S A G , a t n a l t A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 1 6 1 8 6 1 8 5 2 3 0 1 1 3 1 4 5 9 9 7 8 0 5 2 1 3 1 1 3 1 , 2 2 1 3 , 1 1 6 9 , 2 3 8 7 7 1 4 , 1 8 7 5 1 3 3 , 1 8 5 6 6 5 7 7 8 7 5 7 3 , 1 5 2 5 1 1 2 , 1 0 5 7 , 1 3 8 4 7 1 6 3 5 2 6 6 4 8 0 4 0 0 3 0 0 8 5 2 3 5 6 8 0 5 2 4 0 7 4 1 6 0 9 6 4 4 , 2 1 7 1 , 1 5 7 2 , 1 — — — — — — — — — — — — — — — — — — — — 9 4 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 1 1 2 , 1 0 5 7 , 1 4 1 4 , 1 6 5 7 7 8 7 5 7 3 , 1 5 2 5 0 9 8 2 1 9 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 3 8 4 7 1 6 3 5 2 6 6 4 8 0 4 0 0 3 0 0 8 5 2 3 5 6 8 0 5 2 0 6 5 0 2 7 3 9 2 0 4 5 2 7 4 1 7 1 , 1 5 7 2 , 1 6 6 3 , 1 4 1 6 0 9 3 2 7 A G I K N A B T S U R T N U S A G , e e e l b m a h C A G I K N A B T S U R T N U S A G , s r e y n o C A G I K N A B T S U R T N U S A G , a t n a l t A A G I K N A B T S U R T N U S A G , h a n n a v a S A G I K N A B T S U R T N U S A G , e l l i v s a l g u o D A G I K N A B T S U R T N U S A G , y n a b l A A G I K N A B T S U R T N U S A G , s n e h t A A G I K N A B T S U R T N U S A G , n o c a M A G I K N A B T S U R T N U S A G , h t u l u D A G I K N A B T S U R T N U S A G , n o s i d a M d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 3 2 1 1 2 3 4 2 2 8 4 9 9 0 2 2 7 4 1 7 3 3 4 7 8 9 5 4 1 , 3 2 9 1 , 2 1 4 1 , 2 8 9 7 , 6 5 6 7 4 3 5 , 2 3 6 2 , 1 1 8 1 , 3 2 2 8 2 1 1 , 1 0 2 1 , 1 5 2 0 , 2 2 9 9 0 0 2 , 1 1 4 1 , 1 0 0 0 , 1 9 5 2 , 2 9 3 5 , 4 5 6 4 0 0 3 4 3 0 , 1 0 0 5 , 1 8 8 6 5 7 5 1 8 5 , 1 0 0 6 , 1 7 4 3 2 6 4 5 7 4 0 5 6 — — — — — — — — — — — — — — — — — — — — 0 5 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 2 9 9 0 0 2 , 1 9 4 1 , 1 1 4 1 , 1 0 0 0 , 1 2 2 3 , 1 9 5 2 , 2 9 3 5 , 4 7 1 6 , 2 5 6 4 0 0 3 9 3 5 4 3 0 , 1 0 0 5 , 1 7 9 1 , 1 8 8 6 5 7 5 7 9 7 1 8 5 , 1 0 0 6 , 1 2 3 8 , 1 7 4 3 2 6 4 5 7 4 0 5 6 2 0 4 5 3 5 0 2 1 , 1 5 2 0 , 2 8 9 2 , 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E A G I K N A B T S U R T N U S A G , a t t e i r a M A G I K N A B T S U R T N U S A G , a t t e i r a M A G I K N A B T S U R T N U S A G , e l l i v s r e t r a C A G I K N A B T S U R T N U S A G , a t n a l t A A G I K N A B T S U R T N U S A G , a i n o h t i L A G I K N A B T S U R T N U S A G , y t i C e e r t h c a e P A G I K N A B T S U R T N U S A G , n i a t n u o M e n o t S A G I K N A B T S U R T N U S a G , a t n a l t A A G I K N A B T S U R T N U S A G , y t i C n o i n U A G I K N A B T S U R T N U S A G , h a n n a v a S 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 7 8 1 4 8 9 2 1 6 9 3 8 7 2 2 3 6 1 0 3 1 1 3 6 3 3 3 0 4 , 1 1 7 9 2 7 4 , 1 9 9 6 3 6 9 8 7 8 6 9 3 3 0 6 9 4 4 8 8 3 5 2 5 5 7 5 9 6 8 0 5 2 5 7 5 5 6 1 , 2 5 6 0 , 1 0 0 1 , 1 4 9 4 3 1 0 , 2 1 6 2 , 2 4 7 3 , 2 4 9 2 3 1 4 , 1 1 6 4 , 1 4 7 5 , 1 0 0 2 0 0 6 0 0 8 0 0 8 — — — — — — — ) 1 ( ) 1 ( ) 1 ( — — — — — — — — — — 1 5 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I 8 7 8 6 9 3 3 0 6 9 4 4 8 8 3 5 2 5 5 7 5 9 6 8 0 5 2 5 7 5 d n a L e c n a r b m u c n E 7 1 0 , 1 2 6 4 9 9 6 9 2 5 0 5 4 5 6 0 , 1 0 0 1 , 1 3 3 2 , 1 4 9 2 4 1 4 , 1 2 6 4 , 1 5 7 5 , 1 0 0 2 0 0 6 0 0 8 0 0 8 0 4 3 5 1 0 , 1 0 5 0 , 1 9 3 1 , 1 A G I K N A B T S U R T N U S A G , w o r r o M A G I K N A B T S U R T N U S A G , s s o r c r o N A G I K N A B T S U R T N U S A G , e g d i r b k c o t S A G I K N A B T S U R T N U S A G , n i a t n u o M e n o t S A G I K N A B T S U R T N U S A G , r e t s e v l y S A G I K N A B T S U R T N U S A G , s n a v E A G I K N A B T S U R T N U S A G , n o s m o h T D M I K N A B T S U R T N U S D M , e l a d n o v A D M I K N A B T S U R T N U S D M , e g d i r b m a C D M I K N A B T S U R T N U S D M , e l l i v s y e k c o C d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 5 7 4 7 2 5 0 7 3 0 8 1 3 5 1 1 9 1 2 0 1 7 4 1 9 2 1 5 9 8 2 9 , 2 2 7 5 , 2 6 3 8 , 2 4 4 4 , 1 9 6 2 , 1 6 8 0 , 1 7 2 9 0 9 0 , 1 9 7 6 4 4 9 8 2 2 , 2 2 7 4 , 2 0 0 7 0 0 1 6 3 7 , 1 0 0 1 , 1 4 4 8 9 1 7 6 9 8 7 7 4 0 9 6 4 0 6 4 4 4 0 0 6 0 5 5 0 9 1 0 5 4 0 0 4 5 7 0 0 5 ) 1 ( ) 1 ( ) 1 ( — — — — — — — — — — — — — — — — — 2 5 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 7 3 7 , 1 0 0 1 , 1 7 6 2 , 1 9 2 2 , 2 3 7 4 , 2 0 0 7 0 0 1 0 0 6 , 1 6 7 7 , 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 4 8 9 1 7 6 9 8 7 7 4 0 9 6 4 0 6 4 4 4 0 0 6 0 5 5 0 9 1 0 5 4 0 0 4 5 7 0 0 5 8 0 6 0 1 5 0 4 6 1 4 3 0 9 4 8 2 4 5 1 3 D M I K N A B T S U R T N U S D M , e i n r u B n e l G D M I K N A B T S U R T N U S D M , s i l o p a n n A D M I K N A B T S U R T N U S D M , k c i r e d e r F e c n i r P C N I K N A B T S U R T N U S C N , o r o b s n e e r G C N I K N A B T S U R T N U S C N , o r o b s n e e r G C N I K N A B T S U R T N U S C N , x e p A C N I K N A B T S U R T N U S C N , n e d r A C N I K N A B T S U R T N U S C N , o r o b e h s A C N I K N A B T S U R T N U S C N , y t i C r e m e s s e B C N I K N A B T S U R T N U S C N , m a h r u D d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 0 5 1 0 9 1 5 9 1 9 0 1 0 7 1 5 7 1 3 8 8 9 1 1 2 2 7 0 5 1 5 2 , 1 1 9 0 , 1 0 4 3 , 1 2 3 8 4 1 9 1 2 2 , 1 9 3 9 9 7 3 , 1 4 3 3 , 1 6 5 5 , 2 1 0 7 1 9 8 5 1 9 2 1 5 6 9 7 1 2 8 9 8 3 9 2 9 4 3 0 , 1 1 8 3 , 2 0 5 5 0 0 2 5 2 4 0 2 3 8 1 1 0 0 4 0 5 5 0 5 4 0 0 3 5 7 1 — — — — — — — — — 1 — — — — ) 2 6 1 ( — — — — — 3 5 1 1 0 7 1 9 8 5 1 9 2 1 5 6 9 7 1 2 8 9 8 3 9 2 9 4 3 0 , 1 0 8 3 , 2 0 5 5 0 0 2 5 2 4 0 2 3 0 8 2 0 0 4 0 5 5 0 5 4 0 0 3 5 7 1 6 0 5 2 3 6 4 5 6 9 6 3 5 6 5 3 8 5 6 7 2 9 5 6 4 3 7 9 8 6 , 1 C N I K N A B T S U R T N U S C N , e t t o l r a h C C N I K N A B T S U R T N U S C N , e t t o l r a h C C N I K N A B T S U R T N U S C N , o r o b s n e e r G C N I K N A B T S U R T N U S C N , r o o m d e e r C C N I K N A B T S U R T N U S C N , m a h r u D C N I K N A B T S U R T N U S C N , n n u D C N I K N A B T S U R T N U S C N , g r u b s i r r a H C N I K N A B T S U R T N U S C N , e l l i v n o s r e d n e H C N I K N A B T S U R T N U S C N , e n a b e M C N I K N A B T S U R T N U S C N , r i o n e L d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 9 5 1 2 3 1 8 4 2 7 8 6 2 2 0 2 1 7 8 1 8 5 9 1 5 7 7 8 7 1 9 7 4 7 7 1 6 4 4 4 , 1 4 6 1 , 1 3 3 4 1 6 5 , 1 1 6 0 , 1 0 6 7 7 5 6 6 4 0 , 1 7 8 3 8 0 4 1 6 0 , 1 1 6 5 0 1 4 2 8 3 6 4 4 7 3 2 0 3 1 0 0 3 0 8 2 5 2 0 0 5 0 0 5 0 5 3 5 7 2 0 0 6 0 5 1 — — — — — — — — — — — — — — — — — — — — 4 5 1 7 4 7 7 1 6 4 6 1 , 1 8 0 4 1 6 0 , 1 1 6 5 0 1 4 2 8 3 6 4 4 7 3 2 0 3 1 0 0 3 0 8 2 5 2 0 0 5 0 0 5 0 5 3 5 7 2 0 0 6 0 5 1 9 3 5 8 3 4 6 2 8 4 9 2 3 5 7 1 0 4 1 9 2 3 7 2 7 1 3 8 6 1 C N I K N A B T S U R T N U S C N , o r o b x o R C N I K N A B T S U R T N U S C N , m e l a S - n o t s n i W C N I K N A B T S U R T N U S C N , d r o f x O C N I K N A B T S U R T N U S C N , o r o b s t t i P C N I K N A B T S U R T N U S C N , e t t o l r a h C C N I K N A B T S U R T N U S C N , o r o b s n e e r G C N I K N A B T S U R T N U S C N , y e l n a t S C N I K N A B T S U R T N U S C N , y r u b s i l a S C N I K N A B T S U R T N U S C N , a v l y S C N I K N A B T S U R T N U S C N , n o t g n i x e L d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 4 4 1 1 0 2 6 7 7 6 2 2 6 1 7 8 1 4 7 1 2 3 1 4 5 2 8 6 4 1 8 1 9 1 , 1 1 3 6 4 7 6 1 4 9 6 5 3 4 1 5 , 1 4 5 2 , 1 8 3 8 7 2 2 , 1 6 7 9 8 7 9 8 5 7 7 7 8 6 1 8 8 1 6 1 9 9 , 1 1 9 1 , 1 9 5 5 9 1 3 0 4 1 0 5 2 5 7 2 0 6 2 0 8 0 5 3 0 6 1 0 6 3 0 0 8 0 4 2 — — — ) 1 ( — ) 1 ( — — ) 1 ( — — — — — — — — — — — 5 5 1 4 7 6 1 4 9 6 5 3 5 5 2 , 1 8 5 7 8 7 8 6 1 8 8 1 6 2 9 1 , 1 9 1 3 0 4 1 0 5 2 5 7 2 0 6 2 0 8 0 5 3 0 6 1 0 6 3 0 0 8 0 4 2 8 7 4 8 6 6 2 5 2 6 3 8 3 1 5 0 9 5 3 4 5 1 1 4 4 9 7 3 4 3 C N I K N A B T S U R T N U S C N , e v o C t u n l a W C N I K N A B T S U R T N U S C N , e l l i v n i k d a Y C N I K N A B T S U R T N U S C N , l l a H l a r u R C S I K N A B T S U R T N U S C S , e l l i v n e e r G C S I K N A B T S U R T N U S C S , y t r e b i L C S I K N A B T S U R T N U S C S , n i d l u a M C S I K N A B T S U R T N U S C S , e l l i v n e e r G C S I K N A B T S U R T N U S C S , e l l i v n e e r G C S I K N A B T S U R T N U S C S , e l l i v n e e r G N T I K N A B T S U R T N U S N T , t r o p s g n i K d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 0 5 1 2 2 8 9 1 9 1 2 5 8 6 8 1 0 8 1 4 3 1 5 0 1 2 8 4 0 6 5 4 1 , 2 1 3 0 , 2 7 7 4 , 2 0 5 6 6 0 6 , 1 2 2 5 , 1 4 5 0 , 1 6 7 6 3 9 7 4 3 2 0 7 3 5 3 0 , 1 0 1 1 , 1 1 3 9 0 0 1 , 1 7 2 0 , 1 0 5 4 , 1 0 0 4 1 7 8 7 4 8 9 2 6 1 9 4 3 8 3 0 5 2 5 3 7 5 7 6 5 2 4 5 8 1 0 1 4 — ) 1 ( ) 1 ( ) 1 ( — ) 1 ( ) 1 ( ) 1 ( — — — — — — — — — — — — 6 5 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 6 3 0 , 1 0 1 1 , 1 2 1 1 , 1 2 3 9 0 0 1 , 1 1 0 0 , 1 8 2 0 , 1 0 5 4 , 1 4 0 1 , 1 4 3 2 0 7 3 1 5 2 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 0 0 4 2 7 8 8 4 8 0 3 6 1 9 4 3 8 3 0 5 2 5 3 7 5 7 6 5 2 4 5 8 1 0 1 4 3 3 4 2 5 9 5 2 9 7 7 6 1 3 5 1 1 4 N T I K N A B T S U R T N U S N T , n w o t s i r r o M N T I K N A B T S U R T N U S N T , d o o w t n e r B N T I K N A B T S U R T N U S N T , d o o w t n e r B N T I K N A B T S U R T N U S N T , e l l i v h s a N N T I K N A B T S U R T N U S N T , e g d i R t s a E N T I K N A B T S U R T N U S N T , e l l i v h s a N N T I K N A B T S U R T N U S N T , n o n a b e L N T I K N A B T S U R T N U S N T , a g o o n a t t a h C N T I K N A B T S U R T N U S N T , a g o o n a t t a h C N T I K N A B T S U R T N U S N T , n o d u o L d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 3 4 1 4 8 0 8 6 2 1 3 1 1 7 5 6 3 9 5 7 9 5 5 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 4 4 5 5 2 9 2 6 4 , 1 9 2 5 , 1 6 5 6 8 4 3 1 3 7 4 7 0 , 1 0 9 2 0 7 0 , 2 ) E D , ( l a t o T 0 7 6 4 9 3 5 7 3 2 9 5 9 2 5 5 6 2 8 6 1 8 7 2 4 5 4 0 6 2 d n a s g n i d l i u B s t n e m e v o r p m I ) D ( 0 5 1 0 5 5 0 7 8 0 0 0 , 1 1 9 3 0 8 1 3 5 4 0 2 6 0 3 — — ) 1 ( ) 1 ( — — — — — 0 0 4 , 1 ) 1 ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t — — — — — — — — — — 1 7 6 4 9 3 5 7 3 3 9 5 0 3 5 5 6 2 8 6 1 8 7 2 4 5 4 0 6 2 0 0 4 , 1 0 5 1 0 5 5 0 7 8 0 0 0 , 1 1 9 3 0 8 1 3 5 4 0 2 6 0 3 6 2 7 3 2 4 3 0 4 6 3 6 0 7 5 5 8 2 4 8 1 8 9 2 8 8 4 2 3 2 s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E N T I K N A B T S U R T N U S N T , e l l i v h s a N N T I K N A B T S U R T N U S N T , y s i a D y d d o S N T I K N A B T S U R T N U S N T , n i a t n u o M l a n g i S N T I K N A B T S U R T N U S N T , a n r y m S N T I K N A B T S U R T N U S N T , o r o b s e e r f r u M N T I K N A B T S U R T N U S N T , o r o b s e e r f r u M N T I K N A B T S U R T N U S N T , y t i C n o s n h o J N T I K N A B T S U R T N U S N T , a g o o n a t t a h C N T I K N A B T S U R T N U S N T , e l l i v h s a N A V I K N A B T S U R T N U S A V , c a m o c c A 7 5 1 d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 5 6 1 5 3 6 1 2 2 6 2 8 0 1 2 6 1 3 3 4 2 5 5 1 9 4 6 0 6 7 4 6 , 2 2 1 0 , 2 2 9 7 4 2 5 8 6 3 , 1 2 8 6 , 3 2 0 9 , 1 6 7 1 , 1 8 3 5 6 0 3 0 0 3 7 4 6 , 1 0 0 0 , 1 2 1 0 , 1 0 0 0 , 1 2 9 2 4 8 3 8 8 9 0 0 5 0 4 1 0 8 3 2 8 4 , 1 0 0 2 , 2 2 4 1 , 1 6 2 7 8 2 2 0 6 7 0 5 4 0 1 3 — — — — — — — — — — — — — — — — — — — — 8 5 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 7 4 6 , 1 0 0 0 , 1 1 7 4 , 1 2 1 0 , 1 0 0 0 , 1 2 9 2 4 8 3 8 8 9 0 0 5 0 4 1 0 8 3 1 1 9 1 6 2 9 4 3 9 8 8 2 8 4 , 1 0 0 2 , 2 3 2 3 , 1 2 4 1 , 1 6 2 7 8 2 2 0 6 7 0 5 4 0 1 3 6 3 0 , 1 3 5 6 4 0 2 6 0 3 0 0 3 3 7 2 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E A V I K N A B T S U R T N U S A V , d n o m h c i R A V I K N A B T S U R T N U S A V , x a f r i a F A V I K N A B T S U R T N U S A V , g r u b s k c i r e d e r F A V I K N A B T S U R T N U S A V , d n o m h c i R A V I K N A B T S U R T N U S A V , e l l i v s n i l l o C A V I K N A B T S U R T N U S A V , g r u b h c n y L A V I K N A B T S U R T N U S A V , d r o f f a t S A V I K N A B T S U R T N U S A V , r e t s e c u o l G A V I K N A B T S U R T N U S A V , e k a e p a s e h C A V I K N A B T S U R T N U S A V , n o t g n i x e L d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 9 3 7 1 1 9 8 2 3 1 2 7 3 7 9 1 6 0 1 5 7 2 7 7 0 , 1 7 2 5 , 2 9 9 1 , 1 6 9 2 6 8 1 , 1 8 4 9 5 8 1 7 4 5 0 9 0 3 5 7 5 3 , 1 0 7 1 , 1 9 9 9 6 7 1 6 2 9 8 9 4 0 0 2 0 2 1 0 6 2 0 5 4 — — — — — — — 7 9 0 , 0 4 2 4 3 , 8 7 1 2 4 3 , 0 7 1 0 0 0 , 8 3 7 1 2 6 9 , 1 6 6 6 , 0 1 6 6 0 , 9 0 0 6 , 1 0 2 3 , 3 — — — — — — — — — 9 5 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 7 5 3 , 1 0 7 1 , 1 2 1 2 , 1 5 8 1 7 4 5 0 9 0 3 5 5 6 1 9 8 4 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 9 9 9 6 7 1 6 2 9 8 9 4 0 0 2 0 2 1 0 6 2 0 5 4 2 9 8 7 5 1 0 4 8 5 4 4 9 6 1 , 0 7 1 0 0 0 , 8 5 9 6 , 2 1 1 6 4 7 , 5 0 0 6 , 1 3 6 6 , 3 A V I K N A B T S U R T N U S a V , d r o f d a R A V I K N A B T S U R T N U S A V , g r u b s m a i l l i W A V I K N A B T S U R T N U S A V , e k o n a o R A V I K N A B T S U R T N U S A V , k c o c n a n O A V I K N A B T S U R T N U S A V , r e t n i a P A V I K N A B T S U R T N U S A V , t r a u t S A V I K N A B T S U R T N U S A V , e k o n a o R S I U O L T S - T & T A O M , s i u o L t S I E V R D S N O M M O C L I , a r o r u A 6 0 0 2 5 0 0 2 6 0 0 2 9 0 0 2 5 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 9 2 , 3 4 9 5 , 6 1 4 9 5 , 3 1 0 0 0 , 3 4 4 6 — 0 5 9 , 2 1 0 0 0 , 3 8 8 9 , 8 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 9 8 8 2 6 , 3 1 7 2 , 3 3 7 6 , 2 3 7 5 , 1 1 3 2 6 , 0 1 7 5 3 0 5 9 ) 8 6 3 , 1 1 ( ) 8 6 4 ( 9 3 6 , 4 1 2 2 1 1 0 5 , 0 1 5 2 8 0 5 9 5 6 0 , 0 1 9 7 6 , 8 3 5 9 , 1 3 8 0 5 , 2 1 2 8 0 6 , 5 9 1 0 0 9 , 6 1 1 2 6 , 2 6 4 4 , 4 0 4 6 , 8 1 0 4 6 , 8 1 7 7 1 4 1 4 4 1 3 8 9 2 6 3 7 7 6 1 2 9 , 1 0 5 9 5 6 2 , 5 9 9 1 , 2 2 6 3 1 6 6 5 7 6 5 1 6 , 4 9 9 6 , 1 — 5 1 3 0 6 2 , 1 5 7 2 0 5 6 0 0 5 2 0 8 ) 1 ( ) 1 ( — ) 2 ( ) 1 ( 7 8 9 , 2 9 1 0 0 9 , 6 1 0 0 0 , 0 9 1 8 3 8 , 7 1 3 6 3 2 6 6 5 7 6 7 1 6 , 4 0 0 7 , 1 — 5 1 3 8 7 5 3 2 0 , 2 1 0 6 2 , 1 6 4 0 , 1 5 7 2 0 5 6 0 0 5 5 9 4 1 5 6 , 2 8 9 0 , 1 — — — — — — — — 0 6 1 S E K A L N O T S U O H X T , n o t s u o H S E K A L S S O R N K I H O , d l e i f h c i R D A O R L A N O G E R I C N , o r o b s n e e r G S I T N E V A I F O N A S J N , r e t a w e g d i r B R E T N E C C V C I I - E E T N A S A C , e e t n a S L F I E C I F F O T S U R T N U S L F , l l e n h s u B L F I E C I F F O T S U R T N U S L F , e n r u o b l e M A G I E C I F F O T S U R T N U S A G , s a l g u o D D M I E C I F F O T S U R T N U S D M , a d s e h t e B C N I E C I F F O T S U R T N U S C N , h g i e l a R d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 7 0 0 2 6 0 0 2 6 0 0 2 6 0 0 2 7 0 0 2 6 0 0 2 6 0 0 2 8 0 0 2 6 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 6 3 3 , 1 2 4 1 , 1 8 0 0 , 2 9 9 8 , 1 1 1 8 , 2 7 8 5 , 5 2 4 8 , 7 1 9 3 , 7 4 9 0 , 7 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( 9 2 6 , 7 1 7 5 , 7 ) E D , ( l a t o T 8 5 0 , 8 1 8 5 0 , 8 0 0 0 , 0 1 1 7 0 , 5 0 0 5 , 2 — 7 8 9 0 8 , 8 9 0 6 , 7 0 0 2 , 1 0 5 1 5 1 7 , 2 1 5 1 1 , 1 1 0 0 6 , 1 6 5 6 , 4 2 1 3 4 , 3 2 5 2 2 , 1 9 2 9 , 7 3 9 8 2 , 3 3 0 4 6 , 4 3 7 7 , 3 4 3 7 3 , 0 4 0 0 4 , 3 7 1 9 , 4 3 7 1 1 , 0 3 0 0 8 , 4 — 4 2 3 1 — 4 1 9 6 2 , 6 0 6 3 , 1 ) 3 ( d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t — — — — — — s t n e m t s u j d A d n a L o t s i s a B ) C ( 2 7 2 , 6 0 6 3 , 1 6 2 8 , 3 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E A V I E C I F F O T S U R T N U S A V , d n o m h c i R 1 7 0 , 5 0 0 5 , 2 1 6 5 , 4 4 9 2 - E V A E S O R L E M 0 0 5 1 1 1 7 9 , 7 0 0 0 , 0 1 6 5 1 , 0 1 9 5 4 , 7 0 0 2 , 1 0 6 8 , 5 5 1 1 , 1 1 0 0 6 , 1 1 5 3 , 7 L I , k r a P n i l k n a r F Y A W L L O T I G N N U R B 0 0 8 1 L I , a c s a t I D N A L T R A H 0 0 5 I W , d n a l t r a H T E E R T S h t 5 5 I W , a h s o n e K 7 0 4 , 3 2 5 2 2 , 1 4 2 8 , 3 1 E I N R U B N E L G - W O D A E M Y A B 1 6 1 ) 0 1 ( 6 7 2 , 3 3 0 5 6 , 4 0 2 7 , 2 2 — — 3 7 3 , 0 4 0 0 4 , 3 1 2 5 , 4 2 3 0 1 , 0 3 0 0 8 , 4 0 8 2 , 0 2 D L E I F T A H H T R O N - S & C A M , d l e i f t a H L A , m a h g n i m r i B M A H G N M R B I I - S & C N E E D R E B A - S & C D M , n e e d r e b A D M , e i n r u B n e l G d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 6 0 0 2 6 0 0 2 7 0 0 2 6 0 0 2 7 0 0 2 6 0 0 2 7 0 0 2 6 0 0 2 7 0 0 2 5 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 5 9 5 , 3 2 6 7 , 7 1 2 6 2 , 5 1 0 0 5 , 2 7 1 8 , 0 1 9 6 7 , 9 4 9 1 9 , 5 4 0 5 8 , 3 9 5 1 , 1 2 9 7 , 3 3 3 3 , 1 1 1 5 4 4 6 , 1 9 9 2 , 3 5 9 8 , 2 4 8 7 , 4 7 6 9 , 4 0 8 8 , 4 2 9 2 , 8 1 2 8 8 , 7 1 1 1 5 , 5 9 2 3 , 2 2 1 0 , 7 1 7 2 , 5 9 8 0 , 2 2 1 8 , 6 7 4 5 , 5 1 7 8 0 , 5 1 7 8 0 1 4 0 4 2 0 4 2 0 0 2 0 6 4 5 5 6 , 3 1 5 5 4 , 1 1 0 0 2 , 2 2 7 1 , 4 2 2 7 5 , 0 2 0 0 6 , 3 1 1 3 1 0 9 2 7 7 — 6 7 — 0 5 2 2 4 9 — — — — — — — — — — 2 6 1 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( 6 0 9 , 5 4 0 5 8 , 3 0 0 5 , 9 2 1 5 2 , 5 1 0 0 5 , 2 0 0 0 , 0 1 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E 0 9 7 , 4 0 1 1 , 7 1 1 7 2 , 5 3 1 0 , 2 2 1 8 , 6 7 3 8 , 4 1 7 8 0 1 4 0 4 2 0 4 2 0 0 2 0 6 4 2 7 1 , 3 7 1 0 , 0 1 5 6 9 , 2 4 6 3 , 1 9 0 7 , 3 0 3 9 , 8 3 1 4 , 1 1 0 0 2 , 2 3 6 8 , 7 D L E I F T A H H T U O S - S & C A M , d l e i f t a H D L E I F T S E W - S & C A M , d l e i f t s e W O C A E S K R A P R E E D X T , k r a P r e e D A H S E K U A W - L A R O D I W , a h s e k u a W I N O R A L C A I , n o i r a l C A M O L O C I M , a m o l o C I E V R D L A R T S U D N I I I W , n a c i r o H N O T S N K I C N , n o t s n i K D A O R K R K I L I , s e l r a h C . t S 3 6 5 , 0 2 0 0 6 , 3 7 0 8 , 4 1 I S E T A C O S S A E L L I V Y T R E B I L L I , e l l i v y t r e b i L 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 7 0 0 2 6 0 0 2 f o e t a D f o n o i t e l p m o C r o n o i t c u r t s n o C n o i t i s i u q c A 7 1 7 8 6 9 8 1 6 , 2 0 8 8 , 1 2 4 6 , 1 5 0 1 , 3 3 7 6 , 8 5 0 9 , 2 0 0 2 3 7 9 , 3 0 0 7 , 4 2 8 8 , 2 1 2 5 2 , 1 1 0 3 6 , 1 3 3 7 , 8 9 6 9 , 7 3 8 0 , 8 0 5 6 9 6 6 , 6 0 0 3 , 1 6 8 4 — — — — — — — — — — — 3 9 6 , 9 7 3 2 , 4 4 7 6 6 , 1 4 0 7 5 , 2 d e t a l u m u c c A n o i t a i c e r p e D ) F D , ( ) E D , ( l a t o T d n a s g n i d l i u B s t n e m e v o r p m I ) D ( d n a d n a L s t n e m e v o r p m I s t n e m t s u j d A ) C ( s i s a B o t s t n e m t s u j d A d n a L o t s i s a B ) C ( d o i r e p f o d n e t a d e i r r a c h c i h w t a t n u o m a s s o r G ) A ( t s o C l a i t i n I . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 5 0 9 , 2 0 0 2 8 6 7 , 1 3 7 9 , 3 0 0 7 , 4 5 6 6 , 4 2 5 2 , 1 1 0 3 6 , 1 2 7 3 , 6 3 8 0 , 8 0 5 6 4 3 3 , 4 3 8 1 , 6 0 0 3 , 1 9 2 0 , 4 7 6 6 , 1 4 0 7 5 , 2 2 3 6 , 4 2 d n a s g n i d l i u B s t n e m e v o r p m I d n a L e c n a r b m u c n E D A O R N O I Z T N U O M N I , n o n a b e L A W A T T O L I , a w a t t O I I S G N D L O H E T A T S - I R T L I , e l a D d o o W I I I S G N D L O H E T A T S - I R T X T , n o t s u o H I I I I S G N D L O H E T A T S - I R T I W , e e n i s o M I G R U B S C N A H C E M A P , g r u b s c i n a h c e M - T R O P T S E W ) 7 0 9 , 3 3 2 ( 9 0 9 , 8 3 3 , 1 9 3 0 , 7 6 0 , 1 0 7 8 , 1 7 2 ) 9 7 3 , 2 ( ) 6 6 6 ( 8 1 4 , 9 6 0 , 1 6 3 5 , 2 7 2 2 6 7 , 6 2 8 l a t o t , s e i t r e p o r P e l a S r o f d l e H 3 6 1 t a d e t a l p m e t n o c e r e w h c i h w n o i t i s i u q c a o t t n e u q e s b u s d e r r u c n i s t n u o m a g n i d u l c n i , y t r e p o r p e h t f o e c i r p e s a h c r u p l a n i g i r o e h t s t n e s e r p e r y n a p m o C e h t o t t s o c l a i t i n i e h T , s e i t r e p o r p t n e m t s e v n i h t i w d e t a i c o s s a s t s o c e l b i g n a t l a n o i t i d d a s a l l e w s a s t n e m e e r g a e s a e l r e t s a m r e d n u s t n e m y a p s e d u l c n i n o i t i s i u q c a o t t n e u q e s b u s d e z i l a t i p a c t s o C . ) d e t i d u a n u ( 5 4 0 , 4 3 2 , 0 1 $ y l e t a m i x o r p p a s a w s e s o p r u p x a t e m o c n i l a r e d e F r o f 3 1 0 2 , 1 3 r e b m e c e D t a d e n w o e t a t s e l a e r f o t s o c e t a g e r g g a e h T . d e r i u q c a s a w y t r e p o r p e h t e m i t e h t . C N I , T S U R T E T A T S E L A E R N A C I R E M A D N A L N I ) n o i t a r o p r o C d n a l y r a M A ( I I I e l u d e h c S n o i t a i c e r p e D d e t a l u m u c c A d n a e t a t s E l a e R ) s d n a s u o h t n i s t n u o m a r a l l o D ( 3 1 0 2 , 1 3 r e b m e c e D 1 1 0 2 2 1 0 2 3 1 0 2 — 3 2 9 8 1 6 , ) 1 9 7 9 0 5 ( , — 8 6 7 5 8 8 , ) 7 8 1 8 2 7 ( , , 7 0 1 5 9 2 0 1 , , 9 3 2 4 0 4 0 1 , , 9 3 2 4 0 4 0 1 , , 0 2 8 1 6 5 0 1 , — — — — 0 5 4 1 6 3 , 4 7 9 1 6 3 , ) 0 8 3 8 9 ( , ) 9 4 3 2 8 ( , , 9 2 8 8 3 0 1 , , 9 9 8 1 0 3 1 , , 9 9 8 1 0 3 1 , , 4 2 5 1 8 5 1 , 0 2 8 , 1 6 5 , 0 1 2 9 9 , 0 5 5 , 1 ) 1 5 2 , 8 6 5 , 2 ( ) 9 0 9 , 8 3 3 , 1 ( 2 5 6 , 5 0 2 , 8 9 9 6 , 5 7 2 5 5 8 , 7 2 4 2 5 , 1 8 5 , 1 ) 7 0 9 , 3 3 2 ( ) 7 1 7 , 9 9 3 ( 4 5 4 , 1 5 2 , 1 $ $ $ $ $ e s a e l e h t f o e f i L s r a e y 5 1 - 5 s r a e y 0 3 4 6 1 e l a s r o f d l e h s a d e i f i s s a l c s e i t r e p o r p , e s n e p x e n o i t a i c e r p e d d e t a l u m u c c A e l a s r o f d l e h s a d e i f i s s a l c s e i t r e p o r p , e s n e p x e n o i t a i c e r p e D s n o i t a r e p o g n i u n i t n o c , e s n e p x e n o i t a i c e r p e D , 1 y r a u n a J t a e c n a l a B : n o i t a i c e r p e d d e t a l u m u c c a f o n o i t a i l i c n o c e R , 1 3 r e b m e c e D t a e c n a l a B s f f o - e t i r w d n a l a s o p s i D : s e v i l d e t a m i t s e g n i w o l l o f e h t n o p u d e s a b d e t u p m o c s i n o i t a i c e r p e D t n e m p i u q e & s e r u t x i f , e r u t i n r u F s t n e m e v o r p m i d n a s g n i d l i u B s t n e m e v o r p m i t n a n e T . e c a p s t n a n e t f o t u o n r a e y n a g n i d u l c n i : d e n w o e t a t s e l a e r f o n o i t a i l i c n o c e R s t n e m e v o r p m i l a t i p a c d n a s n o i t i s i u q c A e l a s r o f d l e h s a d e i f i s s a l c s e i t r e p o r P , 1 3 r e b m e c e D t a e c n a l a B s f f o - e t i r w d n a s l a s o p s i D , 1 y r a u n a J t a e c n a l a B : s e t o N ) A ( ) B ( ) C ( ) D ( ) E ( ) F ( Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. Item 9A. Controls and Procedures As required by Rule 13a-15(b) and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management, including our principal executive officer and our principal financial officer evaluated as of December 31, 2013, the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures, as of December 31, 2013, were effective for the purpose of ensuring that information required to be disclosed by us in this report is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Exchange Act and is accumulated and communicated to management, including the principal executive officer and our principal financial officer as appropriate to allow timely decisions regarding required disclosures. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Our management, including our principal executive officer and principal financial officer, evaluated as of December 31, 2013, the effectiveness of our internal control over financial reporting based on the framework in “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992). Based on its evaluation, our management has concluded that we maintained effective internal control over financial reporting as of December 31, 2013. This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to the permanent deferral adopted by the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report. Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting during the fourth quarter of 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information None. Part III Item 10. Directors, Executive Officers and Corporate Governance. The information required by this Item will be presented in our definitive proxy statement for the 2014 annual meeting of stockholders, which is expected to be filed with the Securities and Exchange Commission no later than April 30, 2014, and is incorporated herein by reference. Code of Ethics We have adopted a code of ethics applicable to our directors, officers and employees, which is available on our website free of charge at http://www.inlandamerican.com. We will provide the code of ethics free of charge upon request to our customer relations group. Item 11. Executive Compensation The information required by this Item will be presented in our definitive proxy statement for the 2014 annual meeting of stockholders, which is expected to be filed with the Securities and Exchange Commission no later than April 30, 2014, and is incorporated herein by reference. 165 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by this Item will be presented in our definitive proxy statement for the 2014 annual meeting of stockholders, which is expected to be filed with the Securities and Exchange Commission no later than April 30, 2014, and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by this Item will be presented in our definitive proxy statement for the 2014 annual meeting of stockholders, which is expected to be filed with the Securities and Exchange Commission no later than April 30, 2014, and is incorporated herein by reference. Item 14. Principal Accounting Fees and Services. The information required by this Item will be presented in our definitive proxy statement for the 2014 annual meeting of stockholders, which is expected to be filed with the Securities and Exchange Commission no later than April 30, 2014, and is incorporated herein by reference. Part IV Item 15. Exhibits and Financial Statement Schedules (a) List of documents filed: (b) Financial Statements: Report of Independent Registered Public Account Firm The consolidated financial statements of the Company are set forth in the report in Item 8. (2) Financial Statement Schedules: Financial statement schedule for the year ended December 31, 2013 is submitted herewith. Real Estate and Accumulated Depreciation (Schedule III) (3) Exhibits: The list of exhibits filed as part of this Annual Report is set forth on the Exhibit Index attached hereto. (b) Exhibits: The exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto. (c) Financial Statement Schedules All schedules other than those indicated in the index have been omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes. 166 Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SIGNATURES INLAND AMERICAN REAL ESTATE TRUST, INC. By: Date: /s/ Thomas P. McGuinness Thomas P. McGuinness President March 13, 2014 Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date By: Name: /s/ Robert D. Parks Robert D. Parks By: Name: /s/ Thomas P. McGuinness Thomas P. McGuinness By: Name: /s/ Jack Potts Jack Potts /s/ Anna N. Fitzgerald By: Name: Anna N. Fitzgerald By: Name: /s/ J. Michael Borden J. Michael Borden By: Name: /s/ Thomas F. Meagher Thomas F. Meagher By: Name: /s/ Paula Saban Paula Saban /s/ William J. Wierzbicki By: Name: William J. Wierzbicki By: Name: /s/ Thomas F. Glavin Thomas F. Glavin By: Name: /s/ Brenda G. Gujral Brenda G. Gujral Director and chairman of the board March 13, 2014 President (principal executive officer) March 13, 2014 Treasurer and principal financial officer March 13, 2014 Principal accounting officer March 13, 2014 March 13, 2014 March 13, 2014 March 13, 2014 March 13, 2014 March 13, 2014 March 13, 2014 Director Director Director Director Director Director 167 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 3.1 3.2 4.1 4.2 10.1 Sixth Articles of Amendment and Restatement of Inland American Real Estate Trust, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on August 26, 2010) Amended and Restated Bylaws of Inland American Real Estate Trust, Inc., effective as of April 1, 2008 (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on April 1, 2008), as amended by the Amendment to the Amended and Restated Bylaws of Inland American Real Estate Trust, Inc., effective as of January 20, 2009 (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on January 23, 2009) Second Amended and Restated Distribution Reinvestment Plan (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on September 23, 2010) Statement regarding restrictions on transferability of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates) (incorporated by reference to Exhibit 4.4 to the Registrant’s Amendment No. 1 to Form S-11 Registration Statement, as filed by the Registrant with the SEC on July 31, 2007 (file number 333-139504)) First Amended and Restated Business Management Agreement, dated as of July 30, 2007, by and between Inland American Real Estate Trust, Inc. and Inland American Business Manager & Advisor, Inc. (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on August 3, 2009) 10.1.1 Amendment to the First Amended and Restated Business Management Agreement (incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K, as filed by the Registrant with the SEC on August 2, 2013) 10.2.2 10.2.3 Master Management Agreement, dated as of July 1, 2012, by and between Inland American Real Estate Trust, Inc. and Inland American Industrial Management LLC (incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on July 6, 2012) Master Management Agreement, dated as of July 1, 2012, by and between Inland American Real Estate Trust, Inc. and Inland American Office Management LLC (incorporated by reference to Exhibit 10.3 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on July 6, 2012) 168 EXHIBIT NO. 10.2.4 10.2.5 10.2.6 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 14.1 21.1 23.1 DESCRIPTION Fourth Master Management Agreement and Property Management Agreement Amendment Agreement, dated as of October 30, 2013, by and among Inland American Real Estate Trust, Inc. and Inland American Industrial Management LLC, Inland American Office Management LLC and Inland American Retail Management LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, as filed by the Registrant with the Securities and Exchange Commission on October 31, 2013) Fifth Master Management Agreement and Property Management Agreement Amendment Agreement, dated as of November 29, 2013, by and among Inland American Real Estate Trust, Inc. and Inland American Industrial Management LLC, Inland American Office Management LLC and Inland American Retail Management LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, as filed by the Registrant with the Securities and Exchange Commission on December 3, 2013) Sixth Master Management Agreement and Property Management Agreement Amendment Agreement, dated as of December 30, 2013, by and among Inland American Real Estate Trust, Inc. and Inland American Industrial Management LLC, Inland American Office Management LLC and Inland American Retail Management LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, as filed by the Registrant with the Securities and Exchange Commission on January 3, 2014) First Amended and Restated Property Acquisition Agreement, dated as of July 30, 2007, by and between Inland American Real Estate Trust, Inc. and Inland American Real Estate Acquisitions, Inc. (incorporated by reference to Exhibit 10.3.1 to the Registrant’s Amendment No. 1 to Form S-11 Registration Statement, as filed by the Registrant with the SEC on July 31, 2007 (file number 333-139504)) Form of Indemnification Agreement (previously filed and incorporated by reference to Exhibit 10.5 to the Registrant’s Amendment No. 4 to Form S-11 Registration Statement, as filed by the Registrant with the SEC on August 18, 2005 (file number 333-122743)) Indemnity Agreement, dated as of June 9, 2008, by Inland American Real Estate Trust, Inc. in favor of and for the benefit of Inland Real Estate Acquisitions, Inc. (incorporated by reference to Exhibit 10.177 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on June 13, 2008) Amended and Restated Independent Director Stock Option Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on July 26, 2010) Articles of Association of Oak Real Estate Association by and among Inland Real Estate Corporation, Inland Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc. and Inland American Real Estate Trust, Inc., dated September 29, 2006 (incorporated by reference to Exhibit 10.139 to the Registrant’s Quarterly Report on Form 10-Q, as filed by the Registrant with the SEC on November 7, 2006) Operating Agreement of Oak Property and Casualty L.L.C. by and among Inland Real Estate Corporation, Inland Retail Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc. and Inland American Real Estate Trust, Inc, dated September 29, 2006 (incorporated by reference to Exhibit 10.140 to the Registrant’s Quarterly Report on Form 10-Q, as filed by the Registrant with the SEC on November 7, 2006) Oak Property and Casualty L.L.C. Membership Participation Agreement by and among Inland Real Estate Corporation, Inland Retail Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc., Inland American Real Estate Trust, Inc., and Oak Property and Casualty L.L.C. dated September 29, 2006 (incorporated by reference to Exhibit 10.141 to the Registrant’s Quarterly Report on Form 10-Q, as filed by the Registrant with the SEC on November 7, 2006) Letter Agreement, dated May 4, 2012, from Inland American Business Manager & Advisor, Inc. to Inland American Real Estate Trust, Inc. (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q, as filed by the Registrant with the SEC on May 7, 2012) Code of Ethics* Subsidiaries of the Registrant* Consent of KPMG LLP* 169 EXHIBIT NO. DESCRIPTION 31.1 31.2 32.1 32.2 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 101 Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* Certification by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* Non-Retaliation Policy (incorporated by reference to Exhibit 99.1 to the Registrant’s Form S-11 Registration Statement, as filed by the Registrant with the SEC on February 11, 2005 (file number 333-122743)) Responsibilities of the Compliance Officer of the Company (incorporated by reference to Exhibit 99.2 to the Registrant’s Form S-11 Registration Statement, as filed by the Registrant with the SEC on February 11, 2005 (file number 333-122743)) First Amended and Restated Articles of Incorporation of Minto Builders (Florida), Inc. (incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on October 17, 2005) Articles of Amendment to the First Amended and Restated Articles of Incorporation of Minto Builders (Florida), Inc. with Respect to 3.5% Series A Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 99.2 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on October 17, 2005) Second Amended and Restated Articles of Incorporation of Minto Builders (Florida), Inc. (incorporated by reference to Exhibit 99.3 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on October 17, 2005) Articles of Amendment to the Second Amended and Restated Articles of Incorporation of Minto Builders (Florida), Inc. with Respect to Convertible Special Voting Stock (incorporated by reference to Exhibit 99.4 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on October 17, 2005) Articles of Amendment to the Second Amended and Restated Articles of Incorporation of Minto Builders (Florida), Inc. with Respect to 125 Shares of 12.5% Series B Cumulative Non-Voting Preferred Stock (incorporated by reference to Exhibit 99.5 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on October 17, 2005) Second Amended and Restated Share Repurchase Program, effective February 1, 2012 (incorporated by reference to Exhibit 99.2 to the Registrant’s Form 8-K, as filed by the Registrant with the SEC on December 29, 2011) The following financial information from our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 13, 2014, is formatted in Extensible Business Reporting Language (“XBRL”): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Other Comprehensive Income, (iii) Consolidated Statements of Equity, (iv) Consolidated Statements of Cash Flows (v) Notes to Consolidated Financial Statements (tagged as blocks of text). * Filed as part of this Annual Report on Form 10-K. 170 I, Thomas P. McGuiness, certify that: Certification of Principal Executive Officer Exhibit 31.1 1. I have reviewed this Annual Report on Form 10-K of Inland American Real Estate Trust, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. By: Name: Title: Date: /s/ Thomas P. McGuinness Thomas P. McGuinness President March 13, 2014 I, Jack Potts, certify that: Certification of Principal Executive Officer Exhibit 31.2 1. I have reviewed this Annual Report on Form 10-K of Inland American Real Estate Trust, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. By: Name: Title: Date: /s/ Jack Potts Jack Potts Treasurer and principal financial officer March 13, 2014 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Exhibit 32.1 In connection with the Annual Report on Form 10-K of Inland American Real Estate Trust, Inc. (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Thomas P. McGuinness, president of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge: (1) amended; and The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: March 13, 2014 By: /s/ Thomas P. McGuinness Name: Thomas P. McGuinness Title: President This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Exhibit 32.2 In connection with the Annual Report on Form 10-K of Inland American Real Estate Trust, Inc. (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jack Potts, treasurer and principal financial officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that, to the best of his knowledge: (1) amended; and The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: March 13, 2014 By: /s/ Jack Potts Name: Jack Potts Title: Treasurer and principal financial officer This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. (cid:3) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K/A (Amendment No. 1) (cid:95) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2013 OR (cid:134) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-51609 Inland American Real Estate Trust, Inc. (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction of incorporation or organization) 34-2019608 (I.R.S. Employer Identification No.) 2901 Butterfield Road, Oak Brook, Illinois 60523 (Address of principal executive offices) (Zip Code) (Registrant’s telephone number, including area code) 630-218-8000 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common stock, $0.001 par value per share Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes (cid:134) No (cid:95) Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes (cid:134) No (cid:95) 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 (cid:95) No (cid:134) Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section §232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes (cid:95) No (cid:134) Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. (cid:134) Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act: Large accelerated filer (cid:134) Smaller reporting company (cid:134) Accelerated filer (cid:134) Non-accelerated filer (cid:95) (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes (cid:134) No (cid:95) There is no established market for the registrant’s shares of common stock. The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of June 30, 2013 (the last business day of the registrant’s most recently completed second quarter) was approximately $6,210,793,798, based on the estimated per share value of $6.93, as established by the registrant on December 19, 2012. As of April 21, 2014, there were 917,154,184.1110 shares of the registrant’s common stock outstanding. Documents incorporated by reference: None. (cid:3) (This page intentionally left blank) (cid:3) EXPLANATORY NOTE Inland American Real Estate Trust, Inc. (referred to herein as “us,” “we,” “our” or the “Company”) filed an Annual Report on Form 10-K for the year ended December 31, 2013 (the “Form 10-K”) on March 13, 2014, pursuant to which it incorporated by reference into Part III thereof portions of its definitive Proxy Statement for its 2014 Annual Meeting of Stockholders (the “Proxy Statement”) to be subsequently filed with the Securities and Exchange Commission (the “SEC”). The Company has determined to amend the Form 10-K to include the Part III information in this Amendment No. 1 on Form 10-K/A (the “Form 10-K/A”), rather than incorporating it into the Form 10-K by reference to the Proxy Statement. Accordingly, Part III of the Form 10-K is hereby amended and restated in its entirety as set forth below. Pursuant to Rules 12b-15 and 13a-14 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is including with this Form 10-K/A currently dated certifications. No attempt has been made in this Form 10-K/A to modify or update the other disclosures presented in the Form 10-K. This Form 10-K/A does not reflect events occurring after the filing of the Form 10-K or modify or update those disclosures, including the exhibits to the Form 10-K, affected by subsequent events. Information not affected by the amendments described above is unchanged and has not been included herein. Accordingly, this Form 10-K/A should be read in conjunction with the Form 10-K and our other filings made with the SEC. (cid:3) 1 (cid:3) Part III Item 10. Directors, Executive Officers and Corporate Governance. The following biographies set forth each director's principal occupation and business, as well as the specific experience, qualifications, attributes and skills that led to the conclusion by the board that he or she should serve as a director of the Company. All ages are stated as of January 1, 2014. As used herein, “Inland” refers to some or all of the entities that are a part of The Inland Real Estate Group of Companies, Inc., which is comprised of a group of independent legal entities, some of which share ownership or have been sponsored and managed by Inland Real Estate Investment Corporation (“IREIC”) or its subsidiaries. Robert D. Parks, 70. Chairman of the board and director since October 2004. Mr. Parks has over forty years of experience in the commercial real estate industry, having been a principal of the Inland organization since May 1968. Mr. Parks is currently chairman of IREIC, a position he has held since November 1984. He has also served as a director of Inland Investment Advisors, Inc. since June 1995, and served as a director of Inland Securities Corporation from August 1984 until June 2009. He served as a director of Inland Real Estate Corporation from 1994 through June 2008, and served as chairman of the board from May 1994 to May 2004 and president and chief executive officer from 1994 to April 2008. He also served as a director and chairman of the board of Inland Retail Real Estate Trust, Inc. from its inception in September 1998 to March 2006, and as chief executive officer until December 2004, and as the chairman of the board and a director of Retail Properties of America, Inc. (formerly, Inland Western Retail Real Estate Trust, Inc.) from its inception in March 2003 to October 2010. Mr. Parks also has served as the chairman of the board and a director of Inland Diversified Real Estate Trust, Inc. since its inception in June 2008. Mr. Parks is responsible for the ongoing administration of existing investment programs, corporate budgeting and administration for IREIC. He oversees and coordinates the marketing of all investments and investor relations. Mr. Parks received his bachelor degree from Northeastern Illinois University in Chicago, and his master’s degree from the University of Chicago and later taught in Chicago’s public schools. He is a member of the National Association of Real Estate Investment Trusts, or “NAREIT.” With over forty years of experience in the commercial real estate industry, our board believes that Mr. Parks has the depth of experience to oversee our business strategy. As the current or past chairman of the board of each of the other REITs sponsored by IREIC, including as the past chairman of a New York Stock Exchange-listed REIT, our board believes Mr. Parks has an understanding of the requirements of serving on a public company board and the leadership experience necessary to serve as our chairman. J. Michael Borden, 77. Independent director since October 2004. Mr. Borden is president and chief executive officer of Rock Valley Trucking Co., Inc., Rock Valley Leasing, Inc., Hufcor Inc. and Airwall, Inc. Mr. Borden also served as the president and chief executive officer of Freedom Plastics, Inc. through February 2009, at which time it filed a voluntary petition for a court-supervised liquidation of all of its assets in the Circuit Court of Rock County, Wisconsin. (cid:3) 2 (cid:3) Mr. Borden also is the chief executive officer of Hufcor Asia Pacific in China and Hong Kong, Marashumi Corp. in Malaysia, Hufcor Australia Group, and F. P. Investments a Real Estate Investment Company. He currently serves on the board of directors of ANGI Corp., Dowco, Inc., Competitive Wisconsin, and St. Anthony of Padua Charitable Trust, is a trustee of The Nature Conservancy and is a regent of the Milwaukee School of Engineering. Mr. Borden previously served as chairman of the board of the Wisconsin Workforce Development Board and as a member of the SBA Advisory Council and the Federal Reserve Bank Advisory Council. He was named Wisconsin entrepreneur of the year in 1998. Mr. Borden received a bachelor degree in accounting and finance from Marquette University, Milwaukee, Wisconsin. He also attended a master of business administration program in finance at Marquette University. Over the past twenty-five years, Mr. Borden’s various businesses have routinely entered into real estate transactions in the ordinary course of business, allowing him to develop experience in acquiring, leasing, developing and redeveloping real estate assets. Our board believes that this experience qualifies him to serve as a director on our board. Thomas F. Glavin, 53. Independent director since October 2007. Mr. Glavin is the owner of Thomas F. Glavin & Associates, Inc., a certified public accounting firm that he started in 1988. In that capacity, Mr. Glavin specializes in providing accounting and tax services to closely held companies. Mr. Glavin began his career at Vavrus & Associates, a real estate firm, located in Joliet, Illinois, that owned and managed apartment buildings and health clubs. At Vavrus & Associates, Mr. Glavin was an internal auditor responsible for reviewing and implementing internal controls. In 1984, Mr. Glavin began working in the tax department of Touche Ross & Co., where he specialized in international taxation. In addition to his accounting experience, Mr. Glavin also has been involved in the real estate business for the past seventeen years. Since 1997, Mr. Glavin has been a partner in Gateway Homes, which has zoned, developed and manages a 440 unit manufactured home park in Frankfort, Illinois. Mr. Glavin received his bachelor degree in accounting from Michigan State University in East Lansing, Michigan and a master of science in taxation from DePaul University in Chicago, Illinois. Mr. Glavin is a member of the Illinois CPA Society and the American Institute of Certified Public Accountants. As a result of his financial experience, including over twenty-eight years in the accounting profession, our board believes that Mr. Glavin is able to provide valuable insight and advice with respect to our financial risk exposures, our financial reporting process and our system of internal controls. Mr. Glavin, who currently serves as the chairman of the audit committee of our board, qualifies as an “audit committee financial expert” as defined by the SEC. Brenda G. Gujral, 71. Director since October 2004. Ms. Gujral has served as our president from October 2004 to September 2012. Ms. Gujral is a director of IREIC and has served as its president most recently from January 2013 to December 2013 (and served in that capacity from July 1987 through June 1992 and again from January 1998 through January 2011). Ms. Gujral was appointed chief executive officer of IREIC in January 2008 until February 2012. She served as a director of Inland Securities Corporation from January 1997 to August 2013 (and served as its president and chief operating officer from January 1997 to June 2009). Ms. Gujral served as a director of Inland Investment Advisors, Inc., an investment advisor, from January 2001 to May (cid:3) 3 (cid:3) 2013, and has served as a director (March 2003 to May 2012) and chief executive officer (June 2005 to November 2007) of Retail Properties of America, Inc. (formerly, Inland Western Retail Real Estate Trust, Inc.) and as president (from June 2008 to May 2009) of Inland Diversified Real Estate Trust, Inc. Ms. Gujral also has been the chairman of the board (since May 2001) and the president (since May 2012) of Inland Private Capital Corporation (formerly, Inland Real Estate Exchange Corporation) and a director of Inland Opportunity Business Manager & Advisor, Inc. since April 2009. Ms. Gujral was a director of Inland Retail Real Estate Trust, Inc. from its inception in September 1998 until it was acquired in February 2007. Ms. Gujral has been with the Inland organization for over thirty-five years, becoming an officer in 1982. Prior to joining the Inland organization, she worked for the Land Use Planning Commission of the State of Oregon, establishing an office in Portland, to implement land use legislation for Oregon. Ms. Gujral graduated from California State University, in Fresno. She holds Series 7, 22, 39 and 63 certifications from FINRA, and is a member of NAREIT, the Investment Program Association and the Real Estate Investment Securities Association. Additionally, Ms. Gujral serves on the board of directors of the Disability Rights Center of the Virgin Islands, an organization that focuses on advancing the legal rights of people with disabilities in the U.S. Virgin Islands. In February of 2013, Ms. Gujral was inducted into Midwest Real Estate News Commercial Real Estate Hall of Fame. Our board believes that this experience, coupled with her leadership experience, qualifies Ms. Gujral to serve as a member of our board. Thomas F. Meagher, 83. Independent director since October 2004. Mr. Meagher currently serves on the board of directors of the TWA Plan Oversight Committee. He also is a former member of the board of trustees of Edward Lowe Foundation, Fairfield Savings and Loan, The Private Bank Corp. and the Chicago Chamber of Commerce. Mr. Meagher has previously served on the board of directors of UNR Industries, Rohn Towers, Greyhound Lines Inc., DuPage Airport Authority, Lakeside Bank and Trans World Airlines, where he served as chairman of the board for two years and participated in the sale of the company to American Airlines. Mr. Meagher began his business career in 1958 when he was selected by American Airlines for its management training program. He subsequently joined Continental Air Transport of Chicago as Executive Vice-President in 1964. In 1970, Mr. Meagher was appointed the first president and chief executive officer of the Chicago Convention and Tourism Bureau, returning to Continental Air Transport as president and chief executive officer in 1972, and he sold the company in 1996. In 1980, Mr. Meagher purchased Howell Tractor and Equipment Company, a large heavy construction equipment dealership, and sold the company in April 2005. Mr. Meagher received his bachelor degree from St. Mary’s University of Minnesota. Upon graduation, he entered the U.S. Marine Corps Officer Candidate Program, serving with the 2nd Marine Air Wing and achieving the rank of Captain. Mr. Meagher also attended graduate business school at the University of Chicago. (cid:3) 4 (cid:3) As a result of Mr. Meagher’s extensive business experience, including his leadership experience, our board believes that he is qualified to serve as a director on our board. Paula Saban, 60. Independent director since October 2004. Ms. Saban has worked in the financial services and banking industry for over twenty-five years. She began her career in 1978 with Continental Bank, which later merged into Bank of America. From 1978 to 1990, Ms. Saban held various consultative sales roles in treasury management and in traditional lending areas. She also managed client service teams and developed numerous client satisfaction programs. In 1990, Ms. Saban began designing and implementing various financial solutions for clients with Bank of America’s Private Bank and Banc of America Investment Services, Inc. Her clients included top management of publicly held companies and entrepreneurs. In addition to managing a diverse client portfolio, she was responsible for client management and overall client satisfaction. She retired from Bank of America in 2006 as a senior vice president/private client manager. In 1994, Ms. Saban and her husband started a construction products company, Newport Distribution, Inc., of which she is secretary and treasurer, and a principal stockholder. Ms. Saban received her bachelor degree from MacMurray College, Jacksonville, Illinois, and her master of business administration from DePaul University, Chicago, Illinois. She holds Series 7 and 63 certifications from FINRA. She is a former president of the Fairview Elementary School PTA and a former trustee of both the Goodman Theatre and Urban Gateways. She served as Legislative Chair of Illinois PTA District 37 and as liaison to the No Child Left Behind Task Force of School District 54. She is currently a board member of a Hands On Suburban Chicago which is a not-for-profit organization that matches community and corporate volunteers of all ages and skills with opportunities to connect and serve. In light of Ms. Saban’s experience in financial services and banking, among other things, our board believes that Ms. Saban has the necessary experience and insight to serve on our board. William J. Wierzbicki, 68. Independent director since October 2005. Mr. Wierzbicki is a registered Professional Planner in the Province of Ontario, Canada, and is a member of both the Canadian Institute of Planners and the Ontario Professional Planners Institute. Mr. Wierzbicki is the sole proprietor of “Planning Advisory Services,” a land-use planning consulting service providing consultation and advice to various local governments, developers and individuals. Through Planning Advisory Services, Mr. Wierzbicki is the planner for the Municipalities of Huron Shores, the Sault Ste. Marie North Planning Board, Township of Prince, as well as the Town of Chapleau. Mr. Wierzbicki previously served as the Coordinator of Current Planning with the City of Sault Ste. Marie, Ontario. In that capacity, his expertise was in the review of residential, commercial and industrial development proposals. Mr. Wierzbicki led the program to develop a new Comprehensive Zoning By-Law for the City of Sault Ste. Marie. Mr. Wierzbicki was the leader of the team that developed the Sault Ste. Marie’s Industrial Development Strategy. More recently he has completed Community Development Plans for Batchwana First Nation’s Rankin site and for Pic Mobert First Nations. He has also developed an Official Plan and Comprehensive Zoning Bylaw for the Township of Prince. Mr. Wierzbicki received an architectural technologist diploma from the Sault Ste. Marie Technical and Vocational School in Ontario, Canada, and attended Sault College and Algoma University. (cid:3) 5 (cid:3) Our board believes that Mr. Wierzbicki’s experience and knowledge of commercial real estate industry, including with real estate development and land-use planning, qualifies him to serve on our board. Executive Officers In addition to Mr. Parks, whose biography is set forth above, the following individuals serve as our executive officers. All ages are stated as of January 1, 2014. Thomas P. McGuinness, 58. President and principal executive officer since September 2012. Mr. McGuinness joined Inland Property Management, Inc. in 1982, and has served as its president since 1991. Mr. McGuinness also has served as president (since 1990) and chairman (since 2001) of Mid-America Management Corporation. From August 2005 through December 2011, Mr. McGuinness served as the president of Inland American HOLDCO LLC (“HOLDCO”), the sole member of each of the property managers, Inland American Industrial Management LLC (“Inland Industrial”), Inland American Office Management LLC (“Inland Office”) and Inland American Retail Management LLC (“Inland Retail”) (“HOLDCO” and collectively with Inland Industrial, Inland Office and Inland Retail, the “Property Managers”), and as the chairman, a director and the chief executive officer of the three members of HOLDCO. Mr. McGuinness previously served as the president of the Chicagoland Apartment Association and as the regional vice president of the National Apartment Association. He also served on the board of directors of the Apartment Building Owners and Managers Association, and was a trustee with the Service Employees’ Local No. 1 Health and Welfare Fund and its Pension Fund. He holds SCLS and SCSM accreditations from the International Council of Shopping Centers (“ICSC”). Jack Potts, 44. Executive Vice President since March 2014 and Treasurer and principal financial officer of the Company since February 2012. Mr. Potts previously served as our principal accounting officer and the chief accounting officer of Inland American Business Manager & Advisor, Inc. (the “Business Manager”), from September 2007 to January 2012. Mr. Potts also has served as the treasurer of Inland Real Estate Income Trust, Inc., and the treasurer of its business manager from February 2012 through July 2012. Prior to joining the Inland organization, from February 1998 to April 2007, Mr. Potts held various accounting and financial reporting positions with Equity Office Properties Trust, Inc., a then-publicly-traded owner and manager of office properties. Mr. Potts previously worked in the field of public accounting and was a manager in the real estate division for Ernst and Young LLP. He received a bachelor degree in accounting from Michigan State University in East Lansing. Mr. Potts is a certified public accountant. Anna Fitzgerald, 38. Executive Vice President since March 2014 and principal accounting officer of the Company since February 2012. Ms. Fitzgerald served as the vice president of accounting of the Business Manager from January 2011 through March 2014. Prior to joining the (cid:3) 6 (cid:3) Inland organization, she had worked as a consultant to the Company, from March 2008 to December 2010. Ms. Fitzgerald was previously employed by Equity Office Properties Trust, Inc. from October 1999 to February 2008, where she held various positions in accounting, financial reporting and treasury. She received a bachelor degree in accounting and finance from Drake University in Des Moines, Iowa. Ms. Fitzgerald is a certified public accountant. Michael E. Podboy, 37. Executive Vice President since March 2014. Mr. Podboy served as the senior vice president of non core asset management of the Business Manager from January 2012 through March 2014 and vice president asset management of the Business Manager from May 2007 through December 2011. Mr. Podboy previously worked in the field of public accounting and was a senior manager in the real estate division for KPMG LLP. He received a B.A. in accounting and computer science from the University of Saint Thomas in Saint Paul, Minnesota. Mr. Podboy is a certified public accountant (inactive). Mr. Podboy serves as a Trust Manager for Cobalt Industrial REIT II which focuses on light industrial as well as an Executive Committee member of our retail joint venture entity IAGM Retail Fund I, LLC. Scott W. Wilton, 53. General Counsel since March 2014 and Secretary since October 2004. Mr. Wilton joined The Inland Group, Inc. in January 1995. Mr. Wilton served as the vice president of the Business Manager from July 2013 through March 2014. Prior to that time, he served as assistant vice president of The Inland Real Estate Group, Inc. and senior counsel with The Inland Real Estate Group law department. Mr. Wilton previously served as secretary of Retail Properties of America, Inc. (formerly, Inland Western Retail Real Estate Trust, Inc.) from March 2003 to November 2005, as secretary of Inland Private Capital Corporation from May 2001 to August 2009 and as secretary of Inland Retail Real Estate Trust, Inc. and Inland Retail Real Estate Advisory Services, Inc. from September 1998 to December 2004. Mr. Wilton was involved in all aspects of The Inland Group, Inc.’s business, including real estate acquisitions and financing, securities law and corporate governance matters, leasing and tenant matters and litigation management. He received bachelor degrees in economics and history from the University of Illinois, Champaign, in 1982 and his law degree from Loyola University, Chicago, Illinois, in 1985. Prior to joining The Inland Group, Inc. Mr. Wilton worked for the Chicago law firm of Williams, Rutstein, Goldfarb, Sibrava and Midura, Ltd., specializing in real estate, corporate transactions and litigation. Audit Committee Our board has formed an audit committee comprised of four independent directors, Messrs. Borden, Glavin, Meagher and Ms. Saban. The board has determined that Mr. Glavin, the chairman of the committee, qualifies as an “audit committee financial expert,” as defined by the SEC, and that each member of the committee is independent in accordance with the standards set forth in the committee's charter. The audit committee assists the board in fulfilling its oversight responsibility relating to: (1) the integrity of our financial statements; (2) our compliance with legal and regulatory requirements; (3) the qualifications and independence of the independent registered public accounting firm; (4) the adequacy of our internal controls; and (5) the performance of our independent registered public accounting firm. The audit committee has adopted a written charter, which is available on our website at www.inland-american.com under the “Corporate Governance” tab. (cid:3) 7 (cid:3) Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Exchange Act requires each director, officer and individual beneficially owning more than 10% of our common stock to file initial statements of beneficial ownership (Form 3) and statements of changes in beneficial ownership (Forms 4 and 5) of our common stock with the SEC. Officers, directors and greater than 10% beneficial owners are required by SEC rules to furnish us with copies of all such forms they file. Based solely on a review of the copies of such forms furnished to us during and with respect to the fiscal year ended December 31, 2013, or written representations that no additional forms were required, we believe that all of our officers and directors and persons that beneficially own more than 10% of the outstanding shares of our common stock complied with these filing requirements in 2013. Code of Ethics We have adopted a code of ethics applicable to our directors, officers and employees, which is available on our website free of charge at http://www.inlandamerican.com. We will provide the code of ethics free of charge upon request to our customer relations group. (cid:3) 8 (cid:3) Item 11. Executive Compensation Compensation of Named Executive Officers Since the Company’s inception in 2004 until March 12, 2014, all of our named executive officers were officers and employees of one or more of the affiliates of the Business Manager and were compensated by those entities, in part, for services rendered to us. We did not separately compensate our named executive officers, nor did we reimburse the Business Manager, the Property Managers or their respective affiliates for any compensation paid to their employees who also served as our named executive officers. We paid the Business Manager and the Property Managers fees under the agreements with them. We also reimbursed them for certain fees and expenses incurred on our behalf. These fees and expenses are described in more detail in Item 13 of this Form 10-K. For the purposes of reimbursement, our corporate secretary was not considered an “executive officer,” and, accordingly, not a named executive officer. Because we did not separately compensate our executive officers during the year ended December 31, 2013, we did not have, and our board did not consider, a compensation policy or program for our named executive officers and has not included in this Form 10-K a “Compensation Discussion and Analysis” or a report from our board with respect to executive compensation. On March 12, 2014, we agreed with the Business Manager to terminate our business management agreement, hired all of the Business Manager’s employees, and acquired the assets necessary to conduct the functions previously performed by the Business Manager. As a result, we now directly employ our executive officers, including our named executive officers, and the other former employees of the Business Manager and will no longer pay a fee to the Business Manager. We expect that during 2014, our board will review all forms of compensation to our named executive officers and approve any stock option grants, warrants, stock appreciation rights and other current or deferred compensation that may be payable to our named executive officers with respect to the current or future value of our shares. In addition, we will include the non-binding stockholder advisory votes on executive compensation and on the frequency of stockholder votes on executive compensation in our 2015 proxy statement as required pursuant to Section 14A of the Exchange Act. Independent Director Compensation We pay each of our independent directors an annual fee of $30,000, plus $1,000 for each meeting of the board attended in person and $500 for each meeting of the board attended by telephone. We also pay the chairperson of the audit committee an annual fee of $10,000, and pay each member of the audit committee $1,000 for each meeting of the audit committee attended in person and $500 for each meeting of the audit committee attended by telephone. We pay the chairperson of every other committee, including any special committee, an annual fee of $5,000, and pay each member of such committee $1,000 for each meeting of the committee attended in person and $500 for each meeting of the committee attended by telephone. Under certain circumstances, our board may determine that in consideration of the time and effort required of members of a special committee, certain fees are appropriate in addition to such member’s normal remuneration. For example, members of the special litigation committee, which consists (cid:3) 9 (cid:3) solely of independent directors and is charged with, among things, reviewing and evaluating a series of demands from stockholders to conduct investigations regarding breach of fiduciary duty claims related to matters that are the subject of an SEC investigation, as described below under Item 13, receive an additional $7,500 per month during the existence of the special litigation committee. We reimburse all of our directors for any out-of-pocket expenses incurred by them in attending meetings. In addition, on the date of each annual meeting of stockholders, we grant to each independent director then in office options to purchase 500 shares of our common stock under our independent director stock option plan. This grant was not made at our annual meeting of stockholders held on November 15, 2013, but was later made at the reconvened meeting held on February 26, 2014. We do not compensate any director that also is an employee of our Company, or who was an employee of the Business Manager or any of its affiliates. The following table further summarizes compensation earned by the independent directors for the year ended December 31, 2013. J. Michael Borden Thomas F. Glavin Thomas F. Meagher Paula Saban William J. Wierzbicki Fees Earned in Cash Option Awards (1) - - - - - $147,000 $160,000 $56,500 $150,000 $46,000 Total $147,000 $160,000 $56,500 $150,000 $46,000 (1) With the exception of Mr. Glavin, each independent director had options to purchase 6,000 shares of our common stock outstanding at December 31, 2013. Mr. Glavin had options to purchase 5,000 shares of our common stock outstanding at December 31, 2013. All options have been granted pursuant to our independent director stock option plan. Stock Option Grants Under our independent director stock option plan, we have authorized and reserved a total of 75,000 shares of our common stock for issuance. The number and type of shares that could be issued under the plan may be adjusted if we are the surviving entity after a reorganization or merger or if we split our stock, are consolidated or are recapitalized. If this occurs, the exercise price of the options will be correspondingly adjusted. The independent director stock option plan generally provides for the grant of non-qualified stock options to purchase 3,000 shares to each independent director upon his or her appointment subject to satisfying the conditions set forth in the plan. The plan also provides for subsequent grants of options to purchase 500 shares on the date of each annual stockholder’s meeting to each independent director then in office. The exercise price for all options is equal to the fair market value of our shares, as defined in the plan, on the date of each grant. However, options may not be granted at any time when the grant, along with the grants to be made at the same time to other independent directors, would exceed 9.8% in value of our issued and outstanding shares of stock 10 (cid:3) (cid:3) or 9.8% in value or number of shares, whichever is more restrictive, of our issued and outstanding shares of common stock. One-third of the options granted following an individual initially becoming an independent director are exercisable beginning on the date of their grant, one-third become exercisable on the first anniversary of the date of their grant and the remaining one-third become exercisable on the second anniversary of the date of their grant. All other options granted under the independent director stock option plan become fully exercisable on the second anniversary of their date of grant. Options granted under the independent director stock option plan are exercisable until the first to occur of: (i) the tenth anniversary of the date of grant; (ii) the removal for cause of the person as an independent director; or (iii) three months following the date the person ceases to be an independent director for any other reason except death or disability. All options generally are exercisable in the case of death or disability for a period of one year after death or the disabling event, provided that the death or disabling event occurs while the person is an independent director. However, if the option is exercised within the first six months after it becomes exercisable, any shares issued pursuant to such exercise may not be sold until the six month anniversary of the date of the grant of the option. Notwithstanding any other provisions of the independent director stock option plan to the contrary, no option issued pursuant thereto may be exercised if exercise would jeopardize our status as a REIT under the Internal Revenue Code of 1986, as amended. No option may be sold, pledged, assigned or transferred by an independent director in any manner otherwise than by will or by the laws of descent or distribution. Upon our dissolution, liquidation, reorganization, merger or consolidation as a result of which we are not the surviving corporation, or upon sale of all or substantially all of our assets, the independent director stock option plan will terminate, and any outstanding unexercised options will terminate and be forfeited. However, holders of options may exercise any options that are otherwise exercisable immediately prior to the dissolution, liquidation, consolidation or merger. Additionally, our board may provide for other alternatives in the case of a dissolution, liquidation, consolidation or merger. Compensation Committee Interlocks and Insider Participation None of our current or former officers or employees, or the current or former officers or employees of our subsidiaries, participated in any deliberations of our board of directors concerning executive officer compensation during the year ended December 31, 2013. In addition, during the year ended December 31, 2013, none of our executive officers served as a director or a member of the compensation committee of any entity that has one or more executive officers serving as a member of our board of directors. (cid:3) 11 (cid:3) Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Equity Compensation Plan Information The following table provides information regarding our equity compensation plans as of December 31, 2013. Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted- average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans 29,000 $8.87 46,000 — 29,000 — $8.87 — 46,000 Plan category Equity compensation plans approved by security holders: Independent Director Stock Option Plan Equity compensation plans not approved by security holders Total: As described above, we have adopted an Independent Director Stock Option Plan; see “Stock Option Grants” above. Stock Owned by Certain Beneficial Owners and Management Based on a review of filings with the SEC, the following table shows the amount of common stock beneficially owned (unless otherwise indicated) by: (1) persons that are known to beneficially own more than 5% of the outstanding shares of our common stock; (2) our directors and each nominee for director; (3) our executive officers; and (4) our directors and executive officers as a group. All information is as of December 31, 2013. Name and Address of Beneficial Owner (1) J. Michael Borden, Independent Director Thomas F. Glavin, Independent Director Brenda G. Gujral, Director Amount and Nature of Beneficial Ownership (2) 165,403 28,610 9,853 (3) (4) (5) Percent of Class * * * (cid:3) 12 (cid:3) Thomas F. Meagher, Independent Director Robert D. Parks, Director and Chairman of the Board Paula Saban, Independent Director William J. Wierzbicki, Independent Director Thomas P. McGuinness, President Jack Potts, Treasurer and Principal Financial Officer Anna Fitzgerald, Principal Accounting Officer Scott W. Wilton, Secretary 21,193 451,920 5,500 6,996 — — — 4,028 All Directors and Officers as a group (11 persons) 693,503 (6) (7) (8) (9) (10) * * * * — — — * * *Less than 1% (1) The business address of each person listed in the table is c/o Inland American Real Estate Trust, Inc., 2901 Butterfield Road, Oak Brook, Illinois 60523. (2) All fractional ownership amounts have been rounded to the nearest whole number. (3) Mr. Borden has sole voting and dispositive power over 158,826 shares, including 61,962 shares owned by St. Anthony Padua Charitable Trust, for which Mr. Borden is the trustee, and Mr. Borden and his wife share voting and dispositive power over 6,577 shares. Mr. Borden’s shares include vested options exercisable into 5,500 shares of common stock. (4) Mr. Glavin has sole voting and dispositive power over 4,500 shares. Mr. Glavin and his wife share voting and dispositive power over 24,110 shares. Mr. Glavin’s shares include vested options exercisable into 4,500 shares of common stock. (5) Ms. Gujral has sole voting and dispositive power over 3,542 shares. Ms. Gujral and her husband share voting and dispositive power over 6,311 shares. (6) Mr. Meagher has sole voting and dispositive power over all of the shares that he owns. Mr. Meagher’s shares include vested options exercisable into 5,500 shares of common stock. (7) Mr. Parks has sole voting and dispositive power over all 451,920 shares. (8) Ms. Saban has sole voting and dispositive power over all of the shares that she owns. Ms. Saban’s ownership is comprised of vested options exercisable into 5,500 shares of common stock. (9) Mr. Wierzbicki has sole voting and dispositive power over 5,500 shares. Mr. Wierzbicki and his wife share voting and dispositive power over 1,496 shares. Mr. Wierzbicki’s shares include vested options exercisable into 5,500 shares of common stock. (10) Mr. Wilton and his mother share voting and dispositive power over all 3,351 shares, and Mr. Wilton and his spouse share voting and dispositive power over 677 shares owned by Mr. Wilton’s spouse through her individual IRA. (cid:3) 13 (cid:3) Item 13. Certain Relationships and Related Transactions, and Director Independence. Director Independence Our business is managed under the direction and oversight of our board. The members of our board are J. Michael Borden, Thomas F. Glavin, Brenda G. Gujral, Thomas F. Meagher, Robert D. Parks, Paula Saban and William J. Wierzbicki. As required by our charter, a majority of our directors must be “independent.” Although our shares are not listed for trading on any national securities exchange, our charter defines, an “independent director” as a person who qualifies as an “independent director” pursuant to the provisions of the New York Stock Exchange Listed Company Manual. The New York Stock Exchange Listed Company Manual provides that to qualify as an independent director, in addition to satisfying certain bright-line criteria, the board of directors must affirmatively determine that a director has no material relationship with the Company (either directly or as a partner, stockholder or officer of an organization that has a relationship with the Company). Consistent with these considerations, after reviewing all relevant transactions or relationships between each director, or any of his or her family members, and the Company, our management and our independent registered public accounting firm, and considering each director’s direct and indirect association with the Company and IREIC, our former sponsor, and its affiliates, the board has determined that Ms. Saban and Messrs. Borden, Glavin, Meagher and Wierzbicki qualify as independent directors. Related Party Transactions During the year ended December 31, 2013 we paid the Business Manager, an affiliate of our sponsor, IREIC, and its affiliates various fees and compensation. The following is a summary of the fees and compensation we paid to the Business Manager and its affiliates during that period. In addition, on March 12, 2014, we began the process of becoming fully self-managed by terminating our business management agreement with the Business Manager, hiring all of the Business Manager’s employees, and acquiring the assets of the Business Manager necessary to perform the functions previously performed by the Business Manager. As a first step towards internalizing the Property Managers, we hired certain of their employees; assumed responsibility for performing certain significant property management functions; and amended our property management agreements to reduce our property management fees as a result of our assumption of such responsibilities. As the second step, on December 31, 2014, we expect to terminate our property management agreements, hire the remaining Property Manager employees and acquire the assets necessary to conduct the remaining functions performed by the Property Managers. As a consequence, beginning January 1, 2015, we expect to become fully self-managed. We will not pay an internalization fee or self-management fee in connection with these self-management transactions. These self-management transactions immediately eliminated the management and advisory fees paid to the Business Manager and at the end of 2014, we expect to eliminate the fees paid to the Property Managers and terminate the property management agreements. As part of the self-management transactions, we agreed to reimburse the Business Manager and the Property Managers for certain transaction and employee related expenses and directly retain (cid:3) 14 (cid:3) affiliates of The Inland Group, Inc. for IT services, customer service and certain back-office services that were provided to us and managed by the Business Manager prior to the termination of the business management agreement. Pursuant to the terms of the now terminated business management agreement, after our stockholders received a non-cumulative, non-compounded return of 5.0% per annum on their “invested capital,” we paid the Business Manager an annual business management fee of up to 1% of the “average invested assets,” payable quarterly in an amount up to 0.25% of the average invested assets as of the last day of the immediately preceding quarter. For these purposes, “average invested assets” meant, for any period, the average of the aggregate book value of our assets, including lease intangibles, invested, directly or indirectly, in financial instruments, debt and equity securities and equity interests in and loans secured by real estate assets, including amounts invested in REITs and other real estate operating companies, before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the period. We paid this fee for services provided or arranged by the Business Manager, such as managing our day-to-day business operations, arranging for the ancillary services provided by other affiliates and overseeing these services, administering our bookkeeping and accounting functions, consulting with our board, overseeing our real estate assets and providing other services as our board deems appropriate. Pursuant to the letter agreement dated May 4, 2012, the business management fee was reduced in each particular quarter for investigation costs (excluding legal fees) incurred in conjunction with a non-public, formal, fact-finding investigation by the SEC to determine whether there have been violations of certain provisions of the federal securities laws regarding the business management fees, property management fees, transactions with affiliates, timing and amount of distributions paid to investors, determination of property impairments, and any decision regarding whether the Company might become a self-administered REIT. The Company has not been accused of any wrongdoing by the SEC. The Company also has been informed by the SEC that the existence of this investigation does not mean that the SEC has concluded that anyone has broken the law or that the SEC has a negative opinion of any person, entity or security. During the year ended December 31, 2013, the Company incurred $2.04 million of investigation costs, and paid the Business Manager a business management fee equal to approximately $37.96 million, or approximately 0.37% of our “average invested assets” on an annual basis, for the year ended December 31, 2013. For the year ended December 31, 2013, we paid Inland Investment Advisors, Inc., another affiliate of the Business Manager, an annual fee, paid on a monthly basis, totaling 1% of the first $1 to $5 million of marketable securities under management, 0.85% of marketable securities from $5 to $10 million, 0.75% of marketable securities from $10 to $25 million, 0.65% of marketable securities from $25 to $50 million, 0.60% of marketable securities from $50 to $100 million and 0.50% of marketable securities above $100 million. Notwithstanding the above, the total annual fees paid to Inland Investment Advisors plus the annual business management fee paid to the Business Manager could not exceed the amounts we paid as the annual business management fee. For the year ended December 31, 2013, we paid fees to Inland Investment Advisors in an amount equal to approximately $1.67 million. (cid:3) 15 (cid:3) For the year ended December 31, 2013, we also reimbursed the Business Manager and its affiliates for all expenses that it, or any affiliate, paid or incurred on our behalf, including the salaries and benefits of persons employed by the Business Manager or its affiliates and performing services for us, except for the salaries and benefits of persons who also serve as one of the executive officers or as an executive officer of the Business Manager. For the purposes of reimbursement, our corporate secretary is not considered an “executive officer.” For the year ended December 31, 2013, we incurred approximately $15.7 million of these costs. We pay the Property Managers, the sole member of each of which is Inland American Holdco Management LLC which has three corporate members (owners) that are controlled by the principals of The Inland Group, Inc. but which are also owned by a number of other individuals, a monthly fee up to a certain percentage of gross operating income. For the year ended December 31, 2013, we paid the Property Managers monthly management fees by property type. These fees are as follows: (i) for any bank branch facility (office or retail), 2.50% of the gross income generated by the property; (ii) for any multi-tenant industrial property, 4.00% of the gross income generated by the property; (iii) for any multi-family property, 3.75% of the gross income generated by the property; (iv) for any multi-tenant office property, 3.75% of the gross income generated by the property; (v) for any multi-tenant retail property, 4.50% of the gross income generated by the property; (vi) for any single-tenant industrial property, 2.25% of the gross income generated by the property; (vii) for any single-tenant office property, 2.90% of the gross income generated by the property; and (viii) for any single-tenant retail property, 2.90% of the gross income generated by the property. We did not pay the Property Managers a management fee with respect to our lodging properties. Further, as is customary in the industry, we reimbursed each Property Managers, its affiliates and agents for property-level expenses that it or they paid, such as salaries and benefit expenses for on-site employees and other miscellaneous expenses. For the year ended December 31, 2013, we paid the Property Managers management aggregate fees of approximately $21.8 million. We did not pay any oversight fees for the year ended December 31, 2013. For the year ended December 31, 2013, we also reimbursed the Property Managers approximately $11.0 million, related to property level payroll expenses. For the year ended December 31, 2013, we paid a related party of the Business Manager 0.2% of the principal amount of each loan placed on our behalf by the affiliate. These costs are capitalized as loan fees and amortized over the respective loan term. We paid $0.52 million for the year ended December 31, 2013. We did not pay loan servicing fees for the year ended December 31, 2013. As of December 31, 2013, we had deposited approximately $0.38 million, in Inland Bank and Trust, a subsidiary of Inland Bancorp, Inc., an affiliate of The Inland Real Estate Group, Inc., which is owned by The Inland Group, Inc. We are party to an agreement with a limited liability company formed as an insurance association captive, which is wholly owned by us and three related parties, Inland Real Estate Corporation (“IRC”), Inland Diversified Real Estate Trust, Inc., Inland Real Estate Income Trust, (cid:3) 16 (cid:3) Inc., and an unrelated third party, Retail Properties of America. We paid insurance premiums of $12.4 million for the year ended December 31, 2013. We held 889,820 shares of IRC valued at approximately $9.5 million as of December 31, 2013. Policies and Procedures with Respect to Related Party Transactions Our board, acting in accordance with the standard of care imposed on each director by the Maryland General Corporation Law, may approve a transaction with a related party if the board believes that the transaction would be in the best interest of the Company. All transactions described in this Item 13 were approved by our board, including a majority of the independent directors not otherwise interested in the transaction. In determining whether to approve or authorize a particular related party transaction, these directors considered whether the transaction between us and the related party was fair and reasonable to us and has terms and conditions no less favorable to us than those available from unaffiliated third parties. We may in the future adopt more specific written policies and procedures regarding related party transactions. (cid:3) 17 (cid:3) Item 14. Principal Accounting Fees and Services. Fees to Independent Registered Public Accounting Firm The following table presents fees for professional services rendered by our independent registered public accounting firm, KPMG LLC (“KPMG”), for the audit of our annual financial statements for the years ended December 31, 2013 and 2012, together with fees for audit-related services and tax services rendered by KPMG for the years ended December 31, 2013 and 2012, respectively. Audit fees (1) Audit-related fees Tax fees (2) All other fees Year ended December 31, 2013 $2,466,805 2012 $1,638,845 — $748,300 — — $514,774 — TOTAL $3,215,105 $2,153,619 (1) Audit fees consist principally of fees paid for the audit of our annual consolidated financial statements, review of our consolidated financial statements included in our quarterly reports and reimbursement of out-of-pocket legal expenses associated with the ongoing SEC investigation described herein. (2) Tax fees are comprised of tax compliance fees. Approval of Services and Fees Our audit committee has reviewed and approved all of the fees charged by KPMG for the years ended December 31, 2013 and 2012, and actively monitors the relationship between audit and non-audit services provided by KPMG. The audit committee concluded that all services rendered by KPMG during the years ended December 31, 2013 and 2012, respectively, were consistent with maintaining KPMG’s independence. As a matter of policy, the Company will not engage its primary independent registered public accounting firm for non-audit services other than “audit- related services,” as defined by the SEC, certain tax services and other permissible non-audit services as specifically approved by the chairperson of the audit committee and presented to the full committee at its next regular meeting. The policy also includes limits on hiring partners of, and other professionals employed by, KPMG to ensure that the SEC’s auditor independence rules are satisfied. Under the policy, the audit committee must pre-approve any engagements to render services provided by the Company’s independent registered public accounting firm and the fees charged for these services including an annual review of audit fees, audit-related fees, tax fees and other fees with specific dollar value limits for each category of service. During the year, the audit committee will periodically monitor the levels of fees charged by KPMG and compare these fees (cid:3) 18 (cid:3) to the amounts previously approved. The audit committee also will consider on a case-by-case basis and, if appropriate, approve specific engagements that are not otherwise pre-approved. Any proposed engagement that does not fit within the definition of a pre-approved service may be presented to the chairperson of the audit committee for approval. (cid:3) 19 (cid:3) Item 15. Exhibits and Financial Statement Schedules Part IV (a) List of documents filed: (3) Exhibits: The list of exhibits filed as part of this Form 10-K/A is set forth in (b) below and on the Exhibit Index attached hereto. (b) Exhibits: 31.1 Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 31.2 Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 32.1 Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* 32.2 Certification by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* * Filed herewith. (cid:3) 20 (cid:3) SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. INLAND AMERICAN REAL ESTATE TRUST, INC. By: Date: /s/ Thomas P. McGuinness Thomas P. McGuinness President April 30, 2014 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date Director and chairman of the board April 30, 2014 President (principal executive officer) April 30, 2014 Treasurer and principal financial officer April 30, 2014 Principal accounting officer April 30, 2014 Director Director Director Director Director Director Director April 30, 2014 April 30, 2014 April 30, 2014 April 30, 2014 April 30, 2014 April 30, 2014 April 30, 2014 By: /s/ Robert D. Parks Name: Robert D. Parks By: /s/ Thomas P. McGuinness Name: Thomas P. McGuinness By: /s/ Jack Potts Name: Jack Potts By: /s/ Anna N. Fitzgerald Name: Anna N. Fitzgerald By: /s/ J. Michael Borden Name: J. Michael Borden By: /s/ Thomas F. Glavin Name: Thomas F. Glavin By: /s/ David Mahon Name: David Mahon By: /s/ Thomas F. Meagher Name: Thomas F. Meagher By: /s/ Paula Saban Name: Paula Saban By: /s/ William J. Wierzbicki Name: William J. Wierzbicki By: /s/ Brenda G. Gujral Name: Brenda G. Gujral (cid:3) (cid:3) Exhibit Index 31.1 Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 31.2 Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 32.1 Certification by Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* 32.2 Certification by Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* * Filed as part of this Form 10-K/A. (cid:3) (cid:3)(cid:3) Exhibit 31.1 Certification of Principal Executive Officer I, Thomas P. McGuinness, certify that: 1.(cid:3) I have reviewed this Amendment No. 1 to the Annual Report on Form 10-K of Inland American Real Estate Trust, Inc.; 2.(cid:3) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.(cid:3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial conditions, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.(cid:3) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: a)(cid:3) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b)(cid:3) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c)(cid:3) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d)(cid:3) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to material affect, the registrant’s internal control over financial reporting; and 5.(cid:3) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a)(cid:3) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b)(cid:3) Any fraud, whether or not material, that involves management or other employees who have significant role in the registrant’s internal control over financial reporting. /s/ Thomas P. McGuinness By: Name: Thomas P. McGuinness Title: Date: President April 30, 2014 (cid:3) Exhibit 31.2 Certification of Principal Financial Officer I, Jack Potts, certify that: 1.(cid:3) I have reviewed this Amendment No. 1 to the Annual Report on Form 10-K of Inland American Real Estate Trust, Inc.; 2.(cid:3) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.(cid:3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial conditions, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.(cid:3) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: a)(cid:3) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b)(cid:3) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c)(cid:3) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d)(cid:3) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to material affect, the registrant’s internal control over financial reporting; and 5.(cid:3) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a)(cid:3) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b)(cid:3) Any fraud, whether or not material, that involves management or other employees who have significant role in the registrant’s internal control over financial reporting. By: Name: Title: Date: /s/ Jack Potts Jack Potts Executive Vice President, Treasurer and principal financial officer April 30, 2014 (cid:3) Exhibit 32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 In connection with Amendment No. 1 to Annual Report on Form 10-K of Inland American Real Estate Trust, Inc. (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Thomas P. McGuinness, president of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge: (1)(cid:3) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2)(cid:3) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: April 30, 2014 By: Name: Thomas P. McGuinness /s/ Thomas P. McGuinness Title: President This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. (cid:3) Exhibit 32.2 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 In connection with Amendment No. 1 to Annual Report on Form 10-K of Inland American Real Estate Trust, Inc. (the “Company”) for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jack Potts, Executive Vice President, Treasurer and principal financial officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge: (1)(cid:3) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2)(cid:3) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: April 30, 2014 By: Name: /s/ Jack Potts Jack Potts Title: Executive Vice President, Treasurer and principal financial officer This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. (cid:3) Inland American Real Estate Trust, Inc. CORPORATE PROFILE Inland American Real Estate Trust, Inc. was incorporated in October 2004 as a Maryland corporation and has elected to be taxed, and currently qualifies, as a real estate investment trust for federal tax purposes. Inland American owns, manages, acquires and develops a diversified portfolio of commercial real estate located throughout the United States. In addition, Inland American owns assets and properties in development through various joint ventures with various controlling and noncontrolling interests, as well as investments in marketable securities and other assets. Inland American’s strategic focus is to realign its diversified portfolio in three specific asset classes - retail, lodging and student housing. Legal Counsel Proskauer Rose LLP Three First National Plaza 70 West Madison, Suite 3800 Chicago, IL 60602-4342 Transfer Agent DST Systems, Inc. 333 W. 11th St. Kansas City, MO 64105 888.DST.INFO Independent Auditors KPMG LLP 303 East Wacker Drive Chicago, IL 60601 Memberships Investor Relations If you have any questions, please contact Dan Lombardo, Vice President of Investor Relations, at 630.586.6314 or by e-mail at custserv@inland-investments.com. Forward-Looking Statements Certain statements and assumptions in this press release contain or are based upon “forward-looking” information. When we use the words “will,” may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, including the fulfillment of conditions to the Offer, many of which are outside of the Company’s control, which could cause actual results to differ materially from those expressed in or implied by the content of this document. Forward-looking statements made in this annual report are made only as of the date of their initial publication and neither party undertakes an obligation to publicly update any of these forward-looking statements as actual events unfold. We describe risks, uncertainties and assumptions that could affect the outcome or results of operations in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. . 2901 Butterfield Road · Oak Brook, IL 60523 Phone: 800.826.8228 www.inlandamerican.com The companies depicted in the photographs herein may have proprietary interests in their trade names and trademarks and nothing herein shall be considered to be an endorsement, authorization or approval of Inland American Real Estate Trust, Inc. (“Inland American”) by the companies. Further, none of these companies are affiliated with Inland American in any manner. The Inland American name and logo are registered trademarks being used under license. 

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