To Our Stockholders: We are pleased to report that 2013 was a successful and  transformative year for Inland American.  GLYPH<T_h> rough 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 diversi fi ed 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. GLYPH<T_h> anks 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.  GLYPH<T_h> roughout 2013, our team pursued our strategy with  dedication and intensity. We believe we have generated  impressive results that re fl ect our commitment to creating  value for stockholders. Acquisition, Disposition and Tender O ff er 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 e ff ort, 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.  GLYPH<T_h> e Board evaluated several alternatives and determined that  a Dutch Auction tender o ff er provided management and  the Board increased  fl exibility 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  o ff er. In fact, we purchased over 6.6% of shares outstanding  during the tender o ff er 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. When we announced the net lease transaction in August  2013, we were con fi dent 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 modi fi ed “Dutch Auction” tender o ff er.  GLYPH<T_h> e 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 bene fi t 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.  GLYPH<T_h> e tender o ff er 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. We recorded a net pro fi t on each portfolio sale based on the  original purchase price of these assets.  GLYPH<T_h> e 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 o ff er. 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 modi fi ed “Dutch  Auction” tender o ff er •  GLYPH<T_h> e o ff er expired at 5:00 PM ET on April 25, 2014. Purchased $394.3 million in  shares 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  fl exibility to  e ff ectuate our long-term strategy • All of the proposed charter  changes were a ffi rmed with more  than 471 million votes or 88%  of the votes cast (approximately  52% of the outstanding shares) December 2013:  February 2014:  March 2014: 