The actual amount and timing of distributions will be determined by Inland American's board of directors in its discretion and typically will depend on the amount of funds available for distribution, which is impacted by current and projected cash requirements, tax considerations and other factors. As a result, Inland American's distribution rate and payment frequency may vary from time to time. However, in order to remain qualified as a REIT, Inland American must make distributions equal to at least ninety percent (90.0%) of its “REIT taxable income” each year. If the aggregate amount of cash distributed in any given year exceeds the amount of our "REIT taxable income" generated during the year, the excess amount will be deemed a return of capital to the extent of your tax basis and thereafter will result in the recognition of capital gain (long-term or short-term, depending on whether you have held your stock for more than a year). See "Risk Factors – Risks Related to Our Business" in Inland American’s most recent Annual Report on Form 10-K for additional discussion regarding the amount and timing of distributions.

On January 20, 2009 Inland American's board of directors voted unanimously to determine each monthly distribution rate on an adjustable basis. Read More

Inland American currently pays monthly distributions. Beginning with the distribution for the month of January 2009, and through the distribution for the month of August 2010, Inland American has paid cash distributions at a rate equal to $0.50 per share on an annualized basis.

Tax Deferral

Distributions that you receive will be considered ordinary income to the extent they come from current and accumulated earnings and profits. However, because depreciation expense reduces taxable income but does not reduce cash available for distribution, Inland American expects a portion of your distributions will be considered a return of capital for tax purposes. These amounts will not be subject to tax immediately but will instead reduce the tax basis of your investment in effect deferring a portion of your tax until you sell your shares or we liquidate. Because each investor’s tax implications are different, you should consult with your tax advisor.

Form 1099 tax information will be mailed to stockholders by January 31st of each year.

Distribution Reinvestment Plan (DRP)

Inland American’s distribution reinvestment plan allows investors to reinvest distributions in additional shares at $9.50 per share. Stockholders who elect to participate in the distribution reinvestment plan will authorize Inland American to reinvest distributions on all or a portion of their shares to purchase additional shares of common stock, including fractional shares. The terms of this plan may, however, be amended or the plan terminated in the sole discretion of Inland American’s board of directors.

Effective as of August 23, 2010, Inland American adopted an Amended and Restated Distribution Reinvestment Plan (the “Plan”). The Plan was amended to reflect the fact that DST Systems, Inc., the Company’s new transfer agent, will serve as the administrator of the Plan and to make certain conforming changes in connection therewith. To view the amendment, please click here.