8-K Supplemental 06-30-14

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 7, 2014

(Exact Name of Registrant as Specified in its Charter)



Maryland	001-32185	36-3953261
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2901 Butterfield Road

Oak Brook, Illinois 60523

(Address of Principal Executive Offices)

(630) 218-8000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

Item 7.01. Regulation FD Disclosure.

On August 7, 2014, Inland Real Estate Corporation (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2014. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 2.02 and Item 7.01 disclosure. A copy of the supplemental financial information for the three and six months ended June 30, 2014, referenced in the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 2.02 and Item 7.01 disclosure.

The information in this Item 2.02 and Item 7.01 disclosure, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. In addition, the information in this Item 2.02 and Item 7.01 disclosure, including Exhibits 99.1 and 99.2, shall not be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits.



(a)	Financial Statements of Businesses Acquired: N/A
(b)	Pro Forma Financial Information: N/A
(c)	Shell Company Transactions: N/A
(d)	Exhibits:
	Exhibit No.	Description
	99.1	Press release of Inland Real Estate Corporation, dated August 7, 2014
	99.2	Supplemental financial information of Inland Real Estate Corporation for the three and six months ended June 30, 2014

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



		INLAND REAL ESTATE CORPORATION

Date:	August 7, 2014	By:	/s/ Mark E. Zalatoris
		Name:	Mark E. Zalatoris
		Title:	President and Chief Executive Officer

EXHIBIT INDEX



		Exhibit No.		Description
		99.1		Press release of Inland Real Estate Corporation, dated August 7, 2014
		99.2		Supplemental financial information of Inland Real Estate Corporation for the three and six months ended June 30, 2014

Exhibit 99.1 Press Release 8/7/14

Inland Real Estate Corporation

2901 Butterfield Road

Oak Brook, IL 60523

(888) 331-4732

NEWS RELEASE

Inland Real Estate Corporation Announces Second Quarter Results

- Recurring FFO per Share Increases 9.5% for the Quarter and 7.0% Year to Date -

- Total Portfolio Leased Occupancy Rises to 95.8%, Up 140 Basis Points Over One Year Ago -

OAK BROOK, IL (August 7, 2014) - Inland Real Estate Corporation (NYSE: IRC), a publicly traded real estate investment trust that owns and operates high-quality, necessity and value-based retail centers primarily in select markets within the Central United States, today announced financial and operational results for the three and six months ended June 30, 2014.

Second Quarter Highlights


•	Reported Recurring FFO (defined as FFO adjusted for the impact of lease termination income, certain gains and non-cash impairment charges of non-depreciable real estate, net of taxes) per weighted average common share (basic and diluted) of $0.23 for the three months ended June 30, 2014, representing an increase of 9.5% over the second quarter of 2013.


•	Reported Recurring FFO per weighted average common share (basic and diluted) of $0.46 for the six months ended June 30, 2014, representing an increase of 7.0%, compared to the first six months of 2013.


•	Total portfolio leased occupancy was 95.8% and financial occupancy was 94.3% at June 30, 2014, representing increases of 140 basis points and 250 basis points, respectively, over one year ago.


•	Same-store net operating income (NOI) for the consolidated portfolio excluding lease termination income increased 0.3% for the quarter and 1.1% for the first six months of 2014, over the comparable periods in 2013. Company continues to expect an increase in consolidated same store NOI for full year 2014 to range from 2% to 4%.


•	For the quarter, average base rent for new and renewal leases signed in the total portfolio increased by 14.8% and 10.8%, respectively, over expiring average rents.


•	Company’s joint venture with PGGM acquired Newport Pavilion Phase I located in the Cincinnati MSA for $43.3 million, subject to future earnout payments; Company sold four non-core properties for a total sale price of $42.1 million, recording a net gain on sale of $10.0 million.


•	Entered into amended and restated unsecured credit facilities totaling $475 million with an expanded lending group, increase in total capacity, extended terms, and improved pricing, subsequent to the close of the quarter.

“The acceleration we are experiencing in recurring FFO per share is a direct result of proactive leasing and property management strategies we have been executing, which produced substantial year-over-year gains in occupancy and double-digit increases in average base rent spreads for new and renewal leases,” said Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation. “At this mid-year point, we are on track to meet the annual goals we have set for portfolio performance. We continue to improve the tenant and geographic diversification of our platform by recycling proceeds from non-core dispositions into acquisitions of premier retail properties, and expect to capture additional benefit from our leasing and asset repositioning initiatives in future quarters. With regard to our balance sheet objectives, we further improved our access to and lowered our cost of capital with the recast and expansion of our unsecured credit facilities.”



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Financial Results for the Quarter

FFO attributable to common stockholders was $22.9 million for the quarter ended June 30, 2014, compared to $25.9 million for the second quarter of 2013. On a per share basis, FFO was $0.23 (basic and diluted) for the second quarter of 2014, compared to $0.28 (basic and diluted) for the same period of 2013.

Recurring FFO (defined as FFO adjusted for the impact of lease termination income, certain gains and non-cash impairment charges of non-depreciable real estate, net of taxes) was $22.9 million for the second quarter of 2014, compared to $19.5 million for the prior year quarter. On a per share basis, Recurring FFO was $0.23 (basic and diluted) for the three months ended June 30, 2014, compared to $0.21 for the three months ended June 30, 2013. Recurring FFO per share rose 9.5% year over year primarily due to higher property net operating income from the consolidated portfolio and lower income tax expense, partially offset by higher interest and general and administrative expenses.

Net income attributable to common stockholders for the three months ended June 30, 2014 was $10.4 million, compared to $101.7 million for the second quarter of 2013. On a per common share basis, net income attributable to common stockholders (basic and diluted) was $0.10 for the second quarter of 2014, compared to $1.10 (basic) and $1.09 (diluted) for the prior year quarter. Net income decreased year over year primarily due to substantially lower gains from the change in control of investment properties related to the 2013 consolidation of NYSTRS joint venture assets and from the settlement of receivables, as well as lower lease termination income from discontinued operations. The decrease in net income was partially offset by higher gains on sale of investment properties recorded during the second quarter of 2014.

Financial Results for the Six Months Ended June 30, 2014

For the six months ended June 30, 2014, FFO attributable to common stockholders was $46.0 million, compared to

$45.1 million for the same period in 2013. On a per share basis, FFO for the first six months of 2014 was $0.46 (basic and diluted), compared to $0.50 (basic) and $0.49 (diluted) for the six months ended June 30, 2013.

Recurring FFO was $46.0 million for the six months ended June 30, 2014, compared to $39.3 million for the prior year period. On a per share basis, Recurring FFO was $0.46 (basic and diluted) for the first six months of 2014, compared to $0.43 (basic and diluted) for the same period of 2013. Recurring FFO per share for the six-month period increased 7.0% year over year due to the same items impacting the three-month period.

Net income attributable to common stockholders for the six months ended June 30, 2014, was $23.6 million, compared to $106.4 million for the same period in 2013. On a per share basis, net income attributable to common stockholder was $0.24 (basic and diluted), compared to $1.17 (basic) and $1.16 (diluted) for the same period of 2013. Net income for the period decreased year over year due to the same items that impacted net income for the quarter.

Reconciliations of FFO and Recurring FFO to net income attributable to common stockholders, calculated in accordance with U.S. GAAP, as well as FFO and Recurring FFO per share to net income attributable to common stockholders per share, are provided at the end of this news release.

Portfolio Performance

For the quarter, total portfolio same-store NOI was $26.8 million and consolidated same-store NOI was $20.7 million, representing increases of 0.5% and 0.3%, respectively, over the comparable period in 2013. For the six months ended June 30, 2014, total portfolio same-store NOI was $53.5 million and consolidated same-store NOI was $41.3 million, representing increases of 1.8% and 1.1%, respectively, over the comparable prior year period. Same-store NOI for the total and consolidated portfolios was in line with Company expectations, as income from certain new leases is expected to be recorded in the second half of the year. The Company's guidance for 2014 incorporates assumptions for an increase in consolidated same-store NOI to range from 2% to 4%.

Same-store financial occupancy was 94.4% for the total portfolio and 93.2% for the consolidated portfolio as of June 30, 2014, representing increases of 220 basis points and 260 basis points, respectively, over one year ago.

The Company evaluates its overall portfolio by analyzing the operating performance of properties that have been owned and operated for the same three and six-month periods during each year. A total of 81 of the Company's investment properties within the consolidated portfolio and 105 properties within the total portfolio satisfied this criterion during these periods and are referred to as "same-store" properties. Same-store NOI is a supplemental non-GAAP measure used to monitor the performance of the Company's investment properties.



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A reconciliation of consolidated same-store NOI to net income attributable to common stockholders, calculated in accordance with U.S. GAAP, is provided at the end of this news release.

Leasing

For the quarter, the Company signed 76 leases within the total portfolio aggregating 529,157 square feet of gross leasable area (GLA). Total leases executed included:


•	Fifty-three renewal leases comprising 421,541 square feet, with an average rental rate of $12.11 per square foot, representing an increase of 10.8% over the average expiring rent;


•	Ten new leases comprising 70,137 square feet, with an average rental rate of $13.35 per square foot, representing an increase of 14.8% over the expiring rent; and


•	Thirteen non-comparable leases comprising 37,479 square feet, with an average rental rate of $16.54 per square foot. The company defines non-comparable leases as leases signed for expansion square footage or for space in which there was no former tenant in place for a period of twelve months or more.

On a blended basis, the 63 new and renewal leases executed during the quarter had an average rental rate of $12.28 per square foot, representing an increase of 11.4% over the average expiring rent. The calculations of former and new average base rents are adjusted for rent abatements on the included leases.

For the total portfolio as of June 30, 2014, leased occupancy was 95.8% and financial occupancy was 94.3%, representing gains of 140 basis points and 250 basis points, respectively, over one year ago. Leased occupancy is defined as the percentage of total gross leasable area for which there is a signed lease regardless of whether the tenant is currently obligated to pay rent under their lease agreement. Financial occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of the lease agreement, regardless of the actual use or occupation by that tenant of the area being leased, and excludes tenants in abatement periods.

EBITDA, Balance Sheet, Liquidity and Market Value

The Company reported Recurring EBITDA (earnings before interest, taxes, depreciation and amortization), which is EBITDA adjusted for the impact of lease termination income, certain gains and non-cash impairment charges of non-depreciable real estate, of $36.0 million for the three months ended June 30, 2014, compared to $34.6 million for the second quarter of 2013. Recurring EBITDA for the six months ended June 30, 2014, was $72.7 million, compared to $68.1 million for the same period in 2013.

Definitions and reconciliations of EBITDA and Recurring EBITDA to net income attributable to Inland Real Estate Corporation are provided at the end of this news release.

Recurring EBITDA coverage of interest expense was 3.3 times for the quarter ended June 30, 2014, compared to 3.1 times for the second quarter of 2013. The Company has provided EBITDA and related non-GAAP coverage ratios because it believes EBITDA and the related ratios provide useful supplemental measures in evaluating the Company's operating performance since expenses that may not be indicative of operating performance are excluded.

After the close of the quarter, the Company closed amended and restated unsecured credit facilities totaling $475 million with an expanded lending group that now includes eight banks. The amended agreement provides an increase of $115 million in total capacity; reduces applicable interest rate spreads and the capitalization rate used to determine asset value for purposes of covenant compliance under these facilities; and extends the term of the $275 million revolving credit facility and $200 million term loan to 2018 and 2019, respectively, with an option to further extend the revolver by 12 months, among other things.

As of June 30, 2014, the Company had an equity market capitalization (common shares) of $1.1 billion, outstanding preferred stock of $110.0 million (at face value), and total debt outstanding of $1.1 billion (including the pro-rata share of debt in unconsolidated joint ventures and full face value of outstanding 5.0% convertible senior notes, due 2029) for a total market capitalization of approximately $2.2 billion. The Company's debt-to-total market capitalization was 47.2% as of June 30, 2014. Approximately 60.2% of total debt bears interest at fixed rates. As of June 30, 2014, the weighted average interest rate on the fixed rate debt was 5.17% and the overall weighted average interest rate, including variable rate debt, was 3.95%.



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Dispositions and Acquisitions

During the quarter, the Company sold four properties for a total price of $42.1 million and recorded a net gain on sale of

$10.0 million. The dispositions included a single-user property leased to Disney in Celebration, Fla., for $25.7 million; Lake Park shopping center in Michigan City, Ind., for $3.9 million; Winfield Pointe Center, an unanchored neighborhood center in Winfield, Ill., for $2.5 million; and the Gateway Square shopping center in Hinsdale, Ill., for $10.0 million.

The Company is executing a capital recycling program whereby proceeds from the sale of non-core assets are used to acquire retail properties that further increase the value, diversification and growth potential of the portfolio.

Joint Venture Activity

In June the Company’s joint venture with PGGM purchased Newport Pavilion Phase 1 in Newport, Ky., a high-barrier-to-entry infill market in the Cincinnati metropolitan area, for $43.3 million in cash, subject to future earnout payments. Newport Pavilion Phase I encompasses 222,300 square feet including ground leases, which is 98% leased to Kroger Marketplace, Michaels, PetSmart, Ulta, Famous Footwear, and others. The center is shadow-anchored by a separately-owned 134,500‑square-foot Target store.

Distributions

In April, May, June and July of 2014, the Company paid a monthly cash dividend to Preferred Stockholders of $0.169271 per share on the outstanding shares of its 8.125% Series A Cumulative Redeemable Preferred Stock. In addition, the Company declared a cash dividend of $0.169271 per share on the outstanding shares of its Preferred Stock, payable on

August 15, 2014, to Preferred Stockholders of record at the close of business on August 1, 2014.

In April, May, June and July of 2014, the Company paid monthly cash distributions to Common Stockholders of $0.0475 per common share. The Company also declared a cash distribution of $0.0475 per common share, payable on August 18, 2014, to common stockholders of record at the close of business on July 31, 2014.

Guidance

For fiscal year 2014, the Company continues to expect Recurring FFO per common share (basic and diluted) to range from $0.93 to $0.97. The Company's guidance incorporates assumptions for an increase in consolidated same-store NOI to range from 2% to 4%, and consolidated same-store financial occupancy at year-end 2014 to range from 91% to 92%.

Conference Call/Webcast

Management will host a conference call to discuss the Company's financial and operational results for the quarter ended

June 30, 2014 on Thursday, August 7, 2014, at 2:00 p.m. CT (3:00 p.m. ET). Hosting the conference call will be Mark Zalatoris, President and Chief Executive Officer; Brett Brown, Chief Financial Officer; and Scott Carr, Chief Investment Officer. The live conference call can be accessed by dialing 1-877-509-5836 for callers within the United States, 1‑855‑669‑9657 for callers dialing from Canada, or 1-412-902-4131 for other international callers. A live webcast also will be available on the Company's website at www.inlandrealestate.com. The conference call will be recorded and available for replay one hour after the end of the live event through 8:00 a.m. CT (9:00 a.m. ET) on August 20, 2014. Interested parties can access the replay of the conference call by dialing 1-877-344-7529 or 1-412-317-0088 for international callers, and entering the conference number 10049413. An online playback of the webcast will be archived for approximately one year within the investor relations section of the Company's website.

About Inland Real Estate Corporation

Inland Real Estate Corporation is a self-advised and self-managed publicly traded real estate investment trust (REIT) focused on owning and operating open-air neighborhood, community, and power shopping centers located in well-established markets primarily in the Central United States. As of June 30, 2014, the Company owned interests in 135 investment properties, including 31 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet. Additional information on Inland Real Estate Corporation, including a copy of the Company's supplemental financial information for the three months and six months ended June 30, 2014, is available at www.inlandrealestate.com.



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anticipated future cash distributions. Forward-looking statements reflect the intent, belief or expectations of our management based on their knowledge and understanding of our business and industry and their assumptions, beliefs and expectations with respect to the market for commercial real estate, the U.S. economy and other future conditions. Forward-looking statements are not guarantees of future performance, and investors should not place undue reliance on them. Actual results may differ materially from those expressed or forecasted in forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the risks listed and described under Item 1A”Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2014, as they may be revised or supplemented by us in subsequent Reports on Form 10-Q and other filings with the SEC. Except as otherwise required by applicable law, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement in this release to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

Inland Real Estate Corporation Contact:

Dawn Benchelt, Director of Investor Relations

(630) 218-7364 or (888) 331-4732

ir@inlandrealestate.com



	5

Consolidated Balance Sheets

(in thousands, except per share data)



	June 30, 2014			December 31, 2013
Assets:	(unaudited)
Investment properties:
Land	$	391,999		387,010
Construction in progress	18,239			16,856
Building and improvements	1,124,305			1,130,004
Total investment properties	1,534,543			1,533,870
Less accumulated depreciation	329,637			327,684
Net investment properties	1,204,906			1,206,186
Cash and cash equivalents	27,188			11,258
Accounts receivable, net	41,934			37,155
Investment in and advances to unconsolidated joint ventures	142,625			119,476
Acquired lease intangibles, net	98,891			103,576
Deferred costs, net	18,321			19,638
Other assets	37,085			32,648
Total assets	$	1,570,950		1,529,937

Liabilities:
Accounts payable and accrued expenses	$	56,785		57,132
Acquired below market lease intangibles, net	41,780			43,191
Distributions payable	5,124			5,110
Mortgages payable	486,635			497,832
Unsecured credit facilities	375,000			325,000
Convertible notes	29,022			28,790
Other liabilities	25,561			17,413
Total liabilities	1,019,907			974,468

Stockholders’ Equity:
Preferred stock, $0.01 par value, 12,000 shares authorized; 4,400 8.125% Series A Cumulative Redeemable shares, with a $25.00 per share Liquidation Preference, issued and outstanding at June 30, 2014 and December 31, 2013, respectively	110,000			110,000
Common stock, $0.01 par value, 500,000 shares authorized; 100,022 and 99,721 Shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	1,000			997
Additional paid-in capital (net of offering costs of $74,915 and $74,749 at June 30, 2014 and December 31, 2013, respectively)	878,906			877,328
Accumulated distributions in excess of net income	(432,796		)	(427,953	)
Accumulated other comprehensive loss	(6,110		)	(4,904	)
Total stockholders’ equity	551,000			555,468

Noncontrolling interest	43			1
Total equity	551,043			555,469

Total liabilities and equity	$	1,570,950		1,529,937



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Consolidated Statements of Operations and Comprehensive Income (unaudited)

(in thousands, except per share data)



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Revenues:
Rental income	$	34,914		28,836		70,212		55,314
Tenant recoveries	12,127			10,088		32,170		20,479
Other property income	459			419		965		855
Fee income from unconsolidated joint ventures	1,307			1,958		2,566		3,554
Total revenues	48,807			41,301		105,913		80,202

Expenses:
Property operating expenses	6,580			5,397		18,954		12,552
Real estate tax expense	9,558			8,004		19,639		14,794
Depreciation and amortization	17,817			13,963		36,931		25,988
Provision for asset impairment	222			369		222		369
General and administrative expenses	5,993			5,269		12,085		9,976
Total expenses	40,170			33,002		87,831		63,679

Operating income	8,637			8,299		18,082		16,523
Other income	666			451		768		1,198
Gain from settlement of receivables	—			3,095		—		3,095
Gain from change in control of investment properties	—			95,378		—		95,378
Gain on sale of investment properties, net	9,978			—		22,828		1,440
Gain on sale of joint venture interest	6			393		114		734
Interest expense	(8,900		)	(8,278	)	(17,890	)	(16,263	)
Income before income tax expense of taxable REIT subsidiaries, equity in earnings of unconsolidated joint ventures and discontinued operations	10,387			99,338		23,902		102,105

Income tax expense of taxable REIT subsidiaries	(45		)	(1,567	)	(439	)	(1,795	)
Equity in earnings of unconsolidated joint ventures	2,263			2,172		4,057		3,512
Income from continuing operations	12,605			99,943		27,520		103,822

Income from discontinued operations	31			4,029		521		7,063
Net income	12,636			103,972		28,041		110,885

Less: Net (income) loss attributable to the noncontrolling interest	10			(2	)	30		(14	)
Net income attributable to Inland Real Estate Corporation	12,646			103,970		28,071		110,871

Dividends on preferred shares	(2,234		)	(2,295	)	(4,469	)	(4,505	)
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366

Basic and diluted earnings attributable to common shares per weighted average common share:

Income from continuing operations	$	0.10		1.05		0.23		1.09
Income from discontinued operations	—			0.04		0.01		0.08
Net income attributable to common stockholders per weighted average common share — basic	$	0.10		1.10		0.24		1.17

Weighted average number of common shares outstanding — basic	99,455			92,803		99,433		91,149

Income from continuing operations	$	0.10		1.05		0.23		1.09
Income from discontinued operations	—			0.04		0.01		0.08
Net income attributable to common stockholders per weighted average common share — diluted	$	0.10		1.09		0.24		1.16

Weighted average number of common shares outstanding — diluted	99,817			93,042		99,780		91,384

Comprehensive income:
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366
Unrealized loss on investment securities	—			(349	)	—		(386	)
Unrealized gain (loss) on derivative instruments	(706		)	2,813		(1,206	)	3,841
Comprehensive income	$	9,706		104,139		22,396		109,821

Note: Basic and diluted Earnings Per Share may not foot due to rounding.



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Funds From Operations (unaudited)

(in thousands, except per share data)

Non-GAAP Financial Measures

We consider 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, NAREIT has promulgated a standard known as FFO, which it believes more accurately reflects the operating performance of a REIT such as ours. As defined by NAREIT, FFO means net income computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of operating property, plus depreciation and amortization and after adjustments for unconsolidated entities in which the REIT holds an interest. In addition, NAREIT has further clarified the FFO definition to add-back impairment write-downs of depreciable real estate or of investments in unconsolidated entities that are driven by measurable decreases in the fair value of depreciable real estate. Under U.S. GAAP, impairment charges reduce net income. While impairment charges are added back in the calculation of FFO, we caution that because impairments to the value of any property are typically based on reductions in estimated future undiscounted cash flows compared to current carrying value, declines in the undiscounted cash flows which led to the impairment charges reflect declines in property operating performance that may be permanent. We have adopted the NAREIT definition for computing FFO. Recurring FFO includes adjustments to FFO for the impact of lease termination income, certain gains and non-cash impairment charges of non-depreciable real estate, net of taxes recorded in comparable periods, in order to present the performance of our core portfolio operations. Management uses the calculation of FFO and Recurring FFO for several reasons. Recurring FFO per weighted average common share outstanding is used in the employment agreements we have with our executives to determine a portion of incentive compensation payable to them. Additionally, we use FFO and Recurring FFO to compare our performance to that of other REITs in our peer group. The calculation of FFO and Recurring FFO may vary from entity to entity since capitalization and expense policies tend to vary from entity to entity. Items that are capitalized do not impact FFO and Recurring FFO whereas items that are expensed reduce FFO and Recurring FFO. Consequently, our presentation of FFO and Recurring FFO may not be comparable to other similarly titled measures presented by other REITs. FFO and Recurring FFO do not represent cash flows from operations as defined by U.S. GAAP, are not indicative of cash available to fund cash flow needs and liquidity, including our ability to pay distributions, and should not be considered as an alternative to net income, as determined in accordance with U.S. GAAP, for purposes of evaluating our operating performance.



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366
Gain on sale of investment properties	(9,978		)	(565	)	(23,321	)	(4,743	)
Gain from change in control of investment properties	—			(95,378	)	—		(95,378	)
Impairment of depreciable operating property	222			369		222		555
Equity in depreciation and amortization of unconsolidated joint ventures	4,420			5,235		8,612		11,090
Amortization on in-place lease intangibles	4,853			3,454		11,264		5,002
Amortization on leasing commissions	512			412		965		918
Depreciation, net of noncontrolling interest	12,452			10,728		24,702		21,326
Funds From Operations attributable to common stockholders	$	22,893		25,930		46,046		45,136

Gain from settlement of receivables	—			(3,095	)	—		(3,095	)
Lease termination income	(10		)	(3,300	)	(14	)	(3,301	)
Lease termination income included in equity in earnings of unconsolidated joint ventures	—			(7	)	(77	)	(16	)
Impairment loss, net of taxes:
Impairment of investment securities	—			—		—		98
Provision for asset impairment included in equity in earnings of unconsolidated joint ventures	—			—		—		506
Recurring Funds From Operations attributable to common stockholders	$	22,883		19,528		45,955		39,328

Net income attributable to common stockholders per weighted average common share — basic	$	0.10		1.10		0.24		1.17

Net income attributable to common stockholders per weighted average common share — diluted	$	0.10		1.09		0.24		1.16

Funds From Operations attributable to common stockholders, per weighted average common share — basic	$	0.23		0.28		0.46		0.50
Funds From Operations attributable to common stockholders, per weighted average common share — diluted	$	0.23		0.28		0.46		0.49

Recurring Funds From Operations attributable to common stockholders, per weighted average common share — basic and diluted	$	0.23		0.21		0.46		0.43

Weighted average number of common shares outstanding — basic	99,455			92,803		99,433		91,149
Weighted average number of common shares outstanding — diluted	99,817			93,042		99,780		91,384



	8

Earnings Before Interest, Taxes, Depreciation and Amortization (unaudited)

(in thousands, except per share data)

EBITDA is defined as earnings (losses) from operations excluding: (1) interest expense; (2) income tax benefit or expenses; (3) depreciation and amortization expense; and (4) gains (loss) on non-operating property. We believe EBITDA is useful to us and to an investor as a supplemental measure in evaluating our financial performance because it excludes expenses that we believe may not be indicative of our operating performance. By excluding interest expense, EBITDA measures our financial performance regardless of how we finance our operations and capital structure. By excluding depreciation and amortization expense, we believe we can more accurately assess the performance of our portfolio. Because EBITDA is calculated before recurring cash charges such as interest expense and taxes and is not adjusted for capital expenditures or other recurring cash requirements, it does not reflect the amount of capital needed to maintain our properties nor does it reflect trends in interest costs due to changes in interest rates or increases in borrowing. EBITDA should be considered only as a supplement to net earnings and may be calculated differently by other equity REITs.

We believe EBITDA is an important non-GAAP measure. We utilize EBITDA to calculate our interest expense coverage ratio, which equals EBITDA divided by total interest expense. We believe that using EBITDA, which excludes the effect of non-operating expenses and non-cash charges, all of which are based on historical cost and may be of limited significance in evaluating current performance, facilitates comparison of core operating profitability between periods and between REITs, particularly in light of the use of EBITDA by a seemingly large number of REITs in their reports on Forms 10-Q and 10-K. We believe that investors should consider EBITDA in conjunction with net income and the other required U.S. GAAP measures of our performance to improve their understanding of our operating results. Recurring EBITDA includes adjustments to EBITDA for the impact of least termination income and non-cash impairment charges in comparable periods in order to present the performance of our core portfolio operations.



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Net income attributable to Inland Real Estate Corporation	$	12,646		103,970		28,071		110,871
Gain on sale of investment properties	(9,978		)	(565	)	(23,321	)	(4,743	)
Gain from change in control of investment properties	—			(95,378	)	—		(95,378	)
Income tax expense of taxable REIT subsidiaries	45			1,567		439		1,795
Interest expense	8,900			8,279		17,890		16,263
Interest expense associated with discontinued operations	—			179		—		373
Interest expense associated with unconsolidated joint ventures	1,977			2,756		3,967		5,735
Depreciation and amortization	17,817			13,963		36,931		25,996
Depreciation and amortization associated with discontinued operations	—			668		—		1,313
Depreciation and amortization associated with unconsolidated joint ventures	4,420			5,235		8,612		11,090
EBITDA	35,827			40,674		72,589		73,315

Gain from settlement of receivables	—			(3,095	)	—		(3,095	)
Lease termination income	(10		)	(3,300	)	(14	)	(3,301	)
Lease termination income included in equity in earnings of unconsolidated joint ventures	—			(7	)	(77	)	(16	)
Impairment loss, net of taxes:
Impairment of depreciable operating property	222			369		222		555
Impairment of investment securities	—			—		—		98
Provision for asset impairment included in equity in earnings of unconsolidated joint ventures	—			—		—		506
Recurring EBITDA	$	36,039		34,641		72,720		68,062

Total Interest Expense	$	10,877		11,214		21,857		22,371

EBITDA: Interest Expense Coverage Ratio	3.3 x			3.6 x		3.3 x		3.3 x

Recurring EBITDA: Interest Expense Coverage Ratio	3.3 x			3.1 x		3.3 x		3.0 x



	9

Same Store Net Operating Income (unaudited)

(in thousands, except per share data)

The following schedule presents same store net operating income, for our consolidated portfolio, which is the net operating income of properties owned in both the three and six months ended June 30, 2014 and 2013, along with other investment properties' net operating income. Same store net operating income is considered a non-GAAP financial measure because it does not include straight-line rental income, amortization of lease intangibles, lease termination income, interest, depreciation, amortization and bad debt expense. We provide same store net operating income as another metric to compare the results of property operations for the three and six months ended June 30, 2014 and 2013. We also provide a reconciliation of these amounts to the most comparable GAAP measure, net income (loss) attributable to common stockholders.



	Three months ended June 30,							Six months ended June 30,
Consolidated	2014			2013		% Change		2014		2013		% Change
Rental income and tenant recoveries:
"Same store" investment properties, 81 properties
Rental income	$	22,593		22,163		1.9	%	44,834		44,325		1.1	%
Tenant recovery income	7,387			7,465		-1.0	%	19,078		16,354		16.7	%
Other property income	274			284		-3.5	%	649		656		-1.1	%
"Other investment properties”
Rental income	12,144			6,458				24,541		11,011
Tenant recovery income	4,740			2,623				13,092		4,125
Other property income	175			135				302		198
Total property income	$	47,313		39,128				102,496		76,669

Property operating expenses:
"Same store" investment properties, 81 properties
Property operating expenses	$	3,767		3,687		2.2	%	11,514		9,184		25.4	%
Real estate tax expense	5,742			5,536		3.7	%	11,727		11,293		3.8	%
"Other investment properties"
Property operating expenses	2,300			1,084				6,736		2,054
Real estate tax expense	3,816			2,468				7,912		3,501
Total property operating expenses	$	15,625		12,775				37,889		26,032

Property net operating income
"Same store" investment properties	20,745			20,689		0.3	%	41,320		40,858		1.1	%
"Other investment properties"	10,943			5,664				23,287		9,779
Total property net operating income	$	31,688		26,353				64,607		50,637

Other income:
Straight-line rents	$	275		270				1,010		381
Amortization of lease intangibles	(98		)	(55	)			(173	)	(403	)
Lease termination income	10			—				14		1
Other income	666			451				768		1,198
Fee income from unconsolidated joint ventures	1,307			1,958				2,566		3,554
Gain from settlement of receivables	—			3,095				—		3,095
Gain from change in control of investment properties	—			95,378				—		95,378
Gain on sale of investment properties, net	9,978			—				22,828		1,440
Gain on sale of joint venture interest	6			393				114		734

Equity in earnings of unconsolidated joint ventures	2,263			2,172				4,057		3,512

Other expenses:
Income tax expense of taxable REIT subsidiaries	(45		)	(1,567	)			(439	)	(1,795	)
Bad debt expense	(513		)	(626	)			(704	)	(1,314	)
Depreciation and amortization	(17,817		)	(13,963	)			(36,931	)	(25,988	)
General and administrative expenses	(5,993		)	(5,269	)			(12,085	)	(9,976	)
Interest expense	(8,900		)	(8,278	)			(17,890	)	(16,263	)
Provision for asset impairment	(222		)	(369	)			(222	)	(369	)

Income from continuing operations	12,605			99,943				27,520		103,822
Income from discontinued operations	31			4,029				521		7,063
Net income	12,636			103,972				28,041		110,885

Less: Net (income) loss attributable to the noncontrolling interest	10			(2	)			30		(14	)
Net income attributable to Inland Real Estate Corporation	12,646			103,970				28,071		110,871

Dividends on preferred shares	(2,234		)	(2,295	)			(4,469	)	(4,505	)

Net income attributable to common stockholders	$	10,412		101,675				23,602		106,366



	10

Pro Rata Consolidated Information (unaudited)

(in thousands, except per share data)

These schedules present certain Non-GAAP pro-rata consolidated information as of and for the three and six months ended June 30, 2014. These schedules are considered Non-GAAP because they include financial information related to consolidated joint ventures with an adjustment for the portion related to noncontrolling interests and unconsolidated joint ventures accounted for under the equity method of accounting. The Company provides the pro rata amounts of all properties owned through joint ventures to better compare our overall performance and operating metrics to those of other REITs in our peer group. The Company believes this Non-GAAP information provides supplementary information that is both useful to and has been requested by investors and analysts. Investors should not consider Non-GAAP information as a substitute for, or as superior to, U.S. GAAP information. Rather, Non-GAAP information may provide useful information in addition to information presented in accordance with U.S. GAAP.

Reconciliation of GAAP Reported to Selected Non-GAAP Pro Rata Consolidated Information



	At June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties	IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total investment properties	$	1,204,906	—		330,819	2,062	9,521	1,547,308
Total assets	1,570,950		(3,098	)	250,193	2,457	2,113	1,822,615
Mortgages payable	486,635		—		164,957	—	—	651,592
Total liabilities	1,019,907		50		193,564	1,608	1,624	1,216,753



	For the three months ended June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties		IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total revenues	$	48,807	—		11,175	—		122	60,104
Total expenses	40,170		(10	)	7,415	(1	)	58	47,632
Operating income	8,637		10		3,760	1		64	12,472



	For the six months ended June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties		IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total revenues	$	105,913	—		24,217	—		180	130,310
Total expenses	87,831		(30	)	17,133	1		93	105,028
Operating income (loss)	18,082		30		7,084	(1	)	87	25,282



	11

Exhibit 99.2 Supplemental 06-2014

Supplemental Financial Information - June 30, 2014



Page		Table of Contents

2		Company Information

3		Other Information

5		Consolidated Balance Sheets

6		Consolidated Statements of Operations

7		Funds From Operations and Other Information

8		Earnings Before Interest Taxes Depreciation and Amortization

9		Same Store Net Operating Income

11		Pro Rata Consolidated Information

12		Selected Financial Ratios and Guidance

13		Summary of Outstanding Debt at June 30, 2014

16		Significant Retail Tenants

18		Portfolio Metrics

19		Lease Expiration Analysis

22		Leasing Activity

24		Leasing Activity - Anchors and Non-Anchors

25		Property Transactions

26		Unconsolidated Joint Venture Summary

27		Investment Properties



	1

Company Information

Inland Real Estate Corporation strives to be a leading owner and operator of high quality, necessity and value based retail centers in prime locations throughout the Central and Southeastern United States. We seek to provide predictable, sustainable cash flows and continually enhance shareholder value through the expert management and strategic improvement of our portfolio of premier retail assets. We have elected to be taxed as a real estate investment trust ("REIT") for federal income tax purposes. As of June 30, 2014, we owned interests in 135 investment properties, including 31 properties owned through our unconsolidated joint ventures.



		Corporate Headquarters
		2901 Butterfield Road
		Oak Brook, IL 60523
		www.inlandrealestate.com



Investor Relations/Media Relations				New York Stock Exchange
Dawn Benchelt				Preferred Stock Symbol IRC-PA
Investor Relations Director				Common Stock Symbol IRC
(630) 218-7364
benchelt@inlandrealestate.com



Transfer Agent				Stock Specialist
Registrar and Transfer Company				KCG
10 Commerce Drive				One Liberty Plaza
Cranford, NJ 07016				165 Broadway, 19th Floor
(800) 368-5948				New York, NY 10008

Analyst Coverage



Bank of America Merrill Lynch	BMO Capital Markets	Janney Capital Markets
Craig Schmidt	Paul E. Adornato	Michael P. Gorman
(646) 855-3640	(212) 885-4170	(215) 665-6224
craig.schmidt@baml.com	paul.adornato@bmo.com	mgorman@janney.com

Juan Sanabria
(646) 855-1589
juan.sanabria@baml.com

KeyBanc Capital Markets	Raymond James & Associates, Inc.	Wells Fargo Securities, LLC
Todd M. Thomas	Paul D. Puryear	Jeffrey J. Donnelly
(917) 368-2286	(727) 567-2253	(617) 603-4207
tthomas@key.com	paul.puryear@raymondjames.com	jeff.donnelly@wellsfargo.com

Grant Keeney	Richard J. Milligan	Tamara Fique
(917) 368-2329	(727) 567-2660	(443) 263-6568
gkeeney@key.com	richard.milligan@raymondjames.com	tamara.fique@wellsfargo.com



	2

Other Information

All items in the supplemental financial information are in thousands except per share data, square footage data and number of leases. All amounts shown in this report are unaudited.

Caution Regarding Forward Looking Statements

Certain information in this supplemental information may constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not reflect historical facts and instead reflect our management's intentions, beliefs, expectations, plans or predictions of the future. Forward-looking statements can often be identified by words such as "seek," “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Examples of forward-looking statements include, but are not limited to, statements that describe or contain information related to matters such as management's intent, belief or expectation with respect to our financial performance, investment strategy or our portfolio, our ability to address debt maturities, our cash flows, our growth prospects, the value of our assets, our joint venture commitments and the amount and timing of anticipated future cash distributions. Forward-looking statements reflect the intent, belief or expectations of our management based on their knowledge and understanding of our business and industry and their assumptions, beliefs and expectations with respect to the market for commercial real estate, the U.S. economy and other future conditions. Forward-looking statements are not guarantees of future performance, and investors should not place undue reliance on them. Actual results may differ materially from those expressed or forecasted in forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the risks listed and described under Item 1A”Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2014, as they may be revised or supplemented by us in subsequent Reports on Form 10-Q and other filings with the SEC. Except as otherwise required by applicable law, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement in this release to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

Funds From Operations ("FFO")

We consider 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, NAREIT has promulgated a standard known as FFO, which it believes more accurately reflects the operating performance of a REIT such as ours. As defined by NAREIT, FFO means net income computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of operating property, plus depreciation and amortization and after adjustments for unconsolidated entities in which the REIT holds an interest. In addition, NAREIT has further clarified the FFO definition to add-back impairment write-downs of depreciable real estate or of investments in unconsolidated entities that are driven by measurable decreases in the fair value of depreciable real estate. Under U.S. GAAP, impairment charges reduce net income. While impairment charges are added back in the calculation of FFO, we caution that because impairments to the value of any property are typically based on reductions in estimated future undiscounted cash flows compared to current carrying value, declines in the undiscounted cash flows which led to the impairment charges reflect declines in property operating performance that may be permanent. We have adopted the NAREIT definition for computing FFO. Recurring FFO includes adjustments to FFO for the impact of lease termination income, certain gains and non-cash impairment charges of non-depreciable real estate, net of taxes recorded in comparable periods, in order to present the performance of our core portfolio operations. Management uses the calculation of FFO and Recurring FFO for several reasons. FFO is used in certain employment agreements we have with our executives to determine a portion of incentive compensation payable to them. Additionally, we use FFO and Recurring FFO to compare our performance to that of other REITs in our peer group. The calculation of FFO and Recurring FFO may vary from entity to entity since capitalization and expense policies tend to vary from entity to entity. Items that are capitalized do not impact FFO and Recurring FFO whereas items that are expensed reduce FFO and Recurring FFO. Consequently, our presentation of FFO and Recurring FFO may not be comparable to other similarly titled measures presented by other REITs. FFO and Recurring FFO do not represent cash flows from operations as defined by U.S. GAAP, are not indicative of cash available to fund cash flow needs and liquidity, including our ability to pay distributions, and should not be considered as an alternative to net income, as determined in accordance with U.S. GAAP, for purposes of evaluating our operating performance.

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")



	3

Other Information

for the impact of least termination income and non-cash impairment charges in comparable periods in order to present the performance of our core portfolio operations.

Same Store Net Operating Income ("NOI")

Same store net operating income, which is the net operating income of properties owned during the same periods during each year, is considered a non-GAAP financial measure because it does not include straight-line rental income, amortization of lease intangibles, lease termination income, interest, depreciation, amortization and bad debt expense. We provide same store net operating income as another metric to compare the results of property operations for the three and six months ended June 30, 2014 and 2013. We also provide a reconciliation of these amounts to the most comparable GAAP measure, net income attributable to common stockholders.

Pro Rata Consolidated Information



	4

Consolidated Balance Sheets



	June 30, 2014			December 31, 2013
Assets:
Investment properties:
Land	$	391,999		387,010
Construction in progress	18,239			16,856
Building and improvements	1,124,305			1,130,004
Total investment properties	1,534,543			1,533,870
Less accumulated depreciation	329,637			327,684
Net investment properties	1,204,906			1,206,186
Cash and cash equivalents	27,188			11,258
Accounts receivable, net	41,934			37,155
Investment in and advances to unconsolidated joint ventures	142,625			119,476
Acquired lease intangibles, net	98,891			103,576
Deferred costs, net	18,321			19,638
Other assets	37,085			32,648
Total assets	$	1,570,950		1,529,937

Liabilities:
Accounts payable and accrued expenses	$	56,785		57,132
Acquired below market lease intangibles, net	41,780			43,191
Distributions payable	5,124			5,110
Mortgages payable	486,635			497,832
Unsecured credit facilities	375,000			325,000
Convertible notes	29,022			28,790
Other liabilities	25,561			17,413
Total liabilities	1,019,907			974,468

Stockholders’ Equity:
Preferred stock, $0.01 par value, 12,000 shares authorized; 4,400 8.125% Series A Cumulative Redeemable shares, with a $25.00 per share Liquidation Preference, issued and outstanding at June 30, 2014 and December 31, 2013, respectively	110,000			110,000
Common stock, $0.01 par value, 500,000 shares authorized; 100,022 and 99,721 Shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	1,000			997
Additional paid-in capital (net of offering costs of $74,915 and $74,749 at June 30, 2014 and December 31, 2013, respectively)	878,906			877,328
Accumulated distributions in excess of net income	(432,796		)	(427,953	)
Accumulated other comprehensive loss	(6,110		)	(4,904	)
Total stockholders’ equity	551,000			555,468

Noncontrolling interest	43			1
Total equity	551,043			555,469

Total liabilities and equity	$	1,570,950		1,529,937



	5

Consolidated Statements of Operations and Comprehensive Income



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Revenues:
Rental income	$	34,914		28,836		70,212		55,314
Tenant recoveries	12,127			10,088		32,170		20,479
Other property income	459			419		965		855
Fee income from unconsolidated joint ventures	1,307			1,958		2,566		3,554
Total revenues	48,807			41,301		105,913		80,202

Expenses:
Property operating expenses	6,580			5,397		18,954		12,552
Real estate tax expense	9,558			8,004		19,639		14,794
Depreciation and amortization	17,817			13,963		36,931		25,988
Provision for asset impairment	222			369		222		369
General and administrative expenses	5,993			5,269		12,085		9,976
Total expenses	40,170			33,002		87,831		63,679

Operating income	8,637			8,299		18,082		16,523
Other income	666			451		768		1,198
Gain from settlement of receivables	—			3,095		—		3,095
Gain from change in control of investment properties	—			95,378		—		95,378
Gain on sale of investment properties, net	9,978			—		22,828		1,440
Gain on sale of joint venture interest	6			393		114		734
Interest expense	(8,900		)	(8,278	)	(17,890	)	(16,263	)
Income before income tax expense of taxable REIT subsidiaries, equity in earnings of unconsolidated joint ventures and discontinued operations	10,387			99,338		23,902		102,105

Income tax expense of taxable REIT subsidiaries	(45		)	(1,567	)	(439	)	(1,795	)
Equity in earnings of unconsolidated joint ventures	2,263			2,172		4,057		3,512
Income from continuing operations	12,605			99,943		27,520		103,822

Income from discontinued operations	31			4,029		521		7,063
Net income	12,636			103,972		28,041		110,885

Less: Net (income) loss attributable to the noncontrolling interest	10			(2	)	30		(14	)
Net income attributable to Inland Real Estate Corporation	12,646			103,970		28,071		110,871

Dividends on preferred shares	(2,234		)	(2,295	)	(4,469	)	(4,505	)
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366

Basic and diluted earnings attributable to common shares per weighted average common share:

Income from continuing operations	$	0.10		1.05		0.23		1.09
Income from discontinued operations	—			0.04		0.01		0.08
Net income attributable to common stockholders per weighted average common share — basic	$	0.10		1.10		0.24		1.17

Weighted average number of common shares outstanding — basic	99,455			92,803		99,433		91,149

Income from continuing operations	$	0.10		1.05		0.23		1.09
Income from discontinued operations	—			0.04		0.01		0.08
Net income attributable to common stockholders per weighted average common share — diluted	$	0.10		1.09		0.24		1.16

Weighted average number of common shares outstanding — diluted	99,817			93,042		99,780		91,384

Comprehensive income:
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366
Unrealized loss on investment securities	—			(349	)	—		(386	)
Unrealized gain (loss) on derivative instruments	(706		)	2,813		(1,206	)	3,841
Comprehensive income	$	9,706		104,139		22,396		109,821

Note: Basic and diluted Earnings Per Share may not foot due to rounding.



	6

Funds From Operations and Other Information



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Net income attributable to common stockholders	$	10,412		101,675		23,602		106,366
Gain on sale of investment properties	(9,978		)	(565	)	(23,321	)	(4,743	)
Gain from change in control of investment properties	—			(95,378	)	—		(95,378	)
Impairment of depreciable operating property	222			369		222		555
Equity in depreciation and amortization of unconsolidated joint ventures	4,420			5,235		8,612		11,090
Amortization on in-place lease intangibles	4,853			3,454		11,264		5,002
Amortization on leasing commissions	512			412		965		918
Depreciation, net of noncontrolling interest	12,452			10,728		24,702		21,326
Funds From Operations attributable to common stockholders	$	22,893		25,930		46,046		45,136

Gain from settlement of receivables	—			(3,095	)	—		(3,095	)
Lease termination income	(10		)	(3,300	)	(14	)	(3,301	)
Lease termination income included in equity in earnings of unconsolidated joint ventures	—			(7	)	(77	)	(16	)
Impairment loss, net of taxes:
Impairment of investment securities	—			—		—		98
Provision for asset impairment included in equity in earnings of unconsolidated joint ventures	—			—		—		506
Recurring Funds From Operations attributable to common stockholders	$	22,883		19,528		45,955		39,328

Net income attributable to common stockholders per weighted average common share — basic	$	0.10		1.10		0.24		1.17

Net income attributable to common stockholders per weighted average common share — diluted	$	0.10		1.09		0.24		1.16

Funds From Operations attributable to common stockholders, per weighted average common share — basic	$	0.23		0.28		0.46		0.50
Funds From Operations attributable to common stockholders, per weighted average common share — diluted	$	0.23		0.28		0.46		0.49

Recurring Funds From Operations attributable to common stockholders, per weighted average common share — basic and diluted	$	0.23		0.21		0.46		0.43

Weighted average number of common shares outstanding — basic	99,455			92,803		99,433		91,149
Weighted average number of common shares outstanding — diluted	99,817			93,042		99,780		91,384

Distributions declared, common	$	14,231		13,303		28,445		26,094
Distributions per common share	$	0.14		0.14		0.29		0.29
Distributions / Recurring Funds From Operations Payout Ratio	62.19		%	68.12	%	61.90	%	66.35	%

Additional Information
Straight-line rents	$	275		270		1,010		381
Amortization of lease intangibles	(98		)	(55	)	(173	)	(403	)
Amortization of deferred financing fees	667			674		1,468		1,463
Stock based compensation expense	339			199		763		402

Capital Expenditures
Maintenance / non-revenue generating cap ex
Building / Site improvements	$	2,100		1,014		2,618		1,349
Redevelopment / Construction	556			2,201		556		2,201
Non-maintenance / revenue generating cap ex
Tenant improvements	902			3,905		3,644		6,770
Leasing commissions	520			654		1,482		1,272



	7

Earnings Before Interest, Taxes, Depreciation and Amortization



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
Net income attributable to Inland Real Estate Corporation	$	12,646		103,970		28,071		110,871
Gain on sale of investment properties	(9,978		)	(565	)	(23,321	)	(4,743	)
Gain from change in control of investment properties	—			(95,378	)	—		(95,378	)
Income tax expense of taxable REIT subsidiaries	45			1,567		439		1,795
Interest expense	8,900			8,279		17,890		16,263
Interest expense associated with discontinued operations	—			179		—		373
Interest expense associated with unconsolidated joint ventures	1,977			2,756		3,967		5,735
Depreciation and amortization	17,817			13,963		36,931		25,996
Depreciation and amortization associated with discontinued operations	—			668		—		1,313
Depreciation and amortization associated with unconsolidated joint ventures	4,420			5,235		8,612		11,090
EBITDA	35,827			40,674		72,589		73,315

Gain from settlement of receivables	—			(3,095	)	—		(3,095	)
Lease termination income	(10		)	(3,300	)	(14	)	(3,301	)
Lease termination income included in equity in earnings of unconsolidated joint ventures	—			(7	)	(77	)	(16	)
Impairment loss, net of taxes:
Impairment of depreciable operating property	222			369		222		555
Impairment of investment securities	—			—		—		98
Provision for asset impairment included in equity in earnings of unconsolidated joint ventures	—			—		—		506
Recurring EBITDA	$	36,039		34,641		72,720		68,062

Total Interest Expense	$	10,877		11,214		21,857		22,371

EBITDA: Interest Expense Coverage Ratio	3.3 x			3.6 x		3.3 x		3.3 x

Recurring EBITDA: Interest Expense Coverage Ratio	3.3 x			3.1 x		3.3 x		3.0 x



	8

Same Store Net Operating Income



	Three months ended June 30,							Six months ended June 30,
Consolidated	2014			2013		% Change		2014		2013		% Change
Rental income and tenant recoveries:
"Same store" investment properties, 81 properties
Rental income	$	22,593		22,163		1.9	%	44,834		44,325		1.1	%
Tenant recovery income	7,387			7,465		-1.0	%	19,078		16,354		16.7	%
Other property income	274			284		-3.5	%	649		656		-1.1	%
"Other investment properties”
Rental income	12,144			6,458				24,541		11,011
Tenant recovery income	4,740			2,623				13,092		4,125
Other property income	175			135				302		198
Total property income	$	47,313		39,128				102,496		76,669

Property operating expenses:
"Same store" investment properties, 81 properties
Property operating expenses	$	3,767		3,687		2.2	%	11,514		9,184		25.4	%
Real estate tax expense	5,742			5,536		3.7	%	11,727		11,293		3.8	%
"Other investment properties"
Property operating expenses	2,300			1,084				6,736		2,054
Real estate tax expense	3,816			2,468				7,912		3,501
Total property operating expenses	$	15,625		12,775				37,889		26,032

Property net operating income
"Same store" investment properties	20,745			20,689		0.3	%	41,320		40,858		1.1	%
"Other investment properties"	10,943			5,664				23,287		9,779
Total property net operating income	$	31,688		26,353				64,607		50,637

Other income:
Straight-line rents	$	275		270				1,010		381
Amortization of lease intangibles	(98		)	(55	)			(173	)	(403	)
Lease termination income	10			—				14		1
Other income	666			451				768		1,198
Fee income from unconsolidated joint ventures	1,307			1,958				2,566		3,554
Gain from settlement of receivables	—			3,095				—		3,095
Gain from change in control of investment properties	—			95,378				—		95,378
Gain on sale of investment properties, net	9,978			—				22,828		1,440
Gain on sale of joint venture interest	6			393				114		734

Equity in earnings of unconsolidated joint ventures	2,263			2,172				4,057		3,512

Other expenses:
Income tax expense of taxable REIT subsidiaries	(45		)	(1,567	)			(439	)	(1,795	)
Bad debt expense	(513		)	(626	)			(704	)	(1,314	)
Depreciation and amortization	(17,817		)	(13,963	)			(36,931	)	(25,988	)
General and administrative expenses	(5,993		)	(5,269	)			(12,085	)	(9,976	)
Interest expense	(8,900		)	(8,278	)			(17,890	)	(16,263	)
Provision for asset impairment	(222		)	(369	)			(222	)	(369	)

Income from continuing operations	12,605			99,943				27,520		103,822
Income from discontinued operations	31			4,029				521		7,063
Net income	12,636			103,972				28,041		110,885

Less: Net (income) loss attributable to the noncontrolling interest	10			(2	)			30		(14	)
Net income attributable to Inland Real Estate Corporation	12,646			103,970				28,071		110,871

Dividends on preferred shares	(2,234		)	(2,295	)			(4,469	)	(4,505	)

Net income attributable to common stockholders	$	10,412		101,675				23,602		106,366



	9

Same Store Net Operating Income



	Three months ended June 30,							Six months ended June 30,
Unconsolidated (at 100%)	2014			2013		% Change		2014		2013		% Change
Rental income and tenant recoveries:
"Same store" investment properties, 24 properties
Rental income	$	12,206		11,764		3.8	%	24,326		23,484		3.6	%
Tenant recovery income	5,170			5,490		-5.8	%	12,883		11,828		8.9	%
Other property income	185			99		86.9	%	278		211		31.8	%
"Other investment properties”
Rental income	2,131			6,924				4,449		15,890
Tenant recovery income	501			2,445				1,672		6,584
Other property income	82			16				143		79
Total property income	$	20,275		26,738				43,751		58,076

Property operating expenses:
"Same store" investment properties, 24 properties
Property operating expenses	$	2,896		2,981		-2.9	%	7,965		7,201		10.6	%
Real estate tax expense	3,635			3,483		4.4	%	7,401		7,062		4.8	%
"Other investment properties"
Property operating expenses	491			1,227				1,098		3,506
Real estate tax expense	483			2,168				1,609		5,286
Total property operating expenses	$	7,505		9,859				18,073		23,055

Property net operating income
"Same store" investment properties	$	11,030		10,889		1.3	%	22,121		21,260		4.0	%
"Other investment properties"	1,740			5,990				3,557		13,761
Total property net operating income	$	12,770		16,879				25,678		35,021

Other income:
Straight-line rent	$	201		724				635		1,314
Amortization of lease intangibles	(25		)	(96	)			(21	)	(27	)
Lease termination income	—			14				140		32
Other income (expense)	(142		)	47				550		57

Other expenses:
Bad debt expense	20			(221	)			(43	)	(287	)
Depreciation and amortization	(8,001		)	(9,816	)			(15,731	)	(21,069	)
General and administrative expenses	547			(635	)			(147	)	(1,213	)
Interest expense	(3,596		)	(5,204	)			(7,299	)	(11,128	)
Provision for asset impairment	—			—				—		(1,730	)

Net income (loss) from continuing operations	$	1,774		1,692				3,762		970



	Three months ended June 30,				Six months ended June 30,
Same Store Net Operating Income ("NOI")	2014		2013	% Change	2014	2013	% Change

Consolidated Portfolio (81 properties)
Same Store NOI	$	20,745	20,689	0.3%	41,320	40,858	1.1%
Same Store NOI including lease termination income	$	20,755	20,689	0.3%	41,330	40,859	1.2%

Unconsolidated Portfolio (at 100%) (24 properties)
Same Store NOI	$	11,030	10,889	1.3%	22,121	21,260	4.0%
Same Store NOI including lease termination income	$	11,030	10,889	1.3%	22,261	21,278	4.6%

Total Portfolio (including our pro rata share of unconsolidated NOI) (105 properties)
Same Store NOI	$	26,811	26,678	0.5%	53,487	52,551	1.8%
Same Store NOI including lease termination income	$	26,821	26,678	0.5%	53,574	52,562	1.9%



	10

Pro Rata Consolidated Information

Reconciliation of GAAP Reported to Selected Non-GAAP Pro Rata Consolidated Information



	At June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties	IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total investment properties	$	1,534,543	—		330,819	2,062	9,521	1,876,945
Total assets	1,570,950		(3,098	)	250,193	2,457	2,113	1,822,615
Mortgages payable	486,635		—		164,957	—	—	651,592
Total liabilities	1,019,907		50		193,564	1,608	1,624	1,216,753



	For the three months ended June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties		IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total revenues	$	48,807	—		11,175	—		122	60,104
Total expenses	40,170		(10	)	7,415	(1	)	58	47,632
Operating income	8,637		10		3,760	1		64	12,472



	For the six months ended June 30, 2014
	GAAP Reported		Noncontrolling Interest		INP Retail LP (PGGM)	Development Properties		IPCC Unconsolidated properties	Non-GAAP Pro-rata Consolidated Information

Total revenues	$	105,913	—		24,217	—		180	130,310
Total expenses	87,831		(30	)	17,133	1		93	105,028
Operating income (loss)	18,082		30		7,084	(1	)	87	25,282



	11

Selected Financial Ratios and Guidance

Financial Ratios



	Three months ended June 30,
	2014					2013
	Consolidated			Pro-rata Consolidation (1)		Consolidated		Pro-rata Consolidation (1)
Fixed rate debt	$	472,255		632,736		510,727		661,612
Total debt	888,455			1,050,839		856,727		1,014,875
Fixed rate debt / Total debt	53.2		%	60.2	%	59.6	%	65.2	%

Unsecured debt	$	404,215		404,215		319,215		319,215
Total debt	888,455			1,050,839		856,727		1,014,875
Unsecured debt / Total debt	45.5		%	38.5	%	37.3	%	31.5	%

Total debt	$	888,455		1,050,839		856,727		1,014,875
Total gross assets (2)	1,858,807			2,110,914		1,874,724		2,112,898
Debt / Total gross assets	47.8		%	49.8	%	45.7	%	48.0	%

Quarterly Recurring EBITDA	$	27,379		36,039		24,485		34,641
Quarterly fixed charges (3)	11,603			13,742		11,313		14,270
Fixed charge coverage ratio	2.4		x	2.6	x	2.2	x	2.4	x

Net debt (4)	$	861,267		1,015,547		844,570		995,384
Recurring EBITDA (Annualized)	109,516			144,156		97,940		138,564
Net debt / Recurring EBITDA	7.9		x	7.0	x	8.6	x	7.2	x



	Three months ended June 30,					Six months ended June 30,
	2014			2013		2014		2013
General and Administrative Expenses (G&A)	$	5,993		5,269		12,085		9,976
Total revenues of assets under management (5)	84,605			82,080		180,994		165,040
Total assets under management (5)	2,948,179			2,882,050		2,948,179		2,882,050

G&A Expenses as a Percentage of Total Revenue, including unconsolidated joint ventures at 100%	7.1		%	6.4	%	6.7	%	6.0	%
Annualized G&A Expenses as a Percentage of Total Assets, including unconsolidated joint ventures at 100%	0.8		%	0.7	%	0.8	%	0.7	%



	As of June 30,
Capitalization	2014			2013
Total Common Shares Outstanding	$	100,022		99,626
Closing Price Per Share	10.63			10.22
Equity Market Capitalization Common Shares	1,063,234			1,018,178
Preferred Stock (at face value)	110,000			110,000
Total Debt (6)	1,050,839			1,014,875
Total Market Capitalization	$	2,224,073		2,143,053
Debt to Total Market Capitalization	47.2		%	47.4	%

Guidance



		2014 Guidance
Recurring FFO per common share (basic and diluted) (7)		$0.93 to $0.97

Consolidated same-store NOI		+ 2% to + 4%

Consolidated same-store financial occupancy		91% to 92%


(1)	Pro-rata consolidation includes the Company's pro-rata share of unconsolidated joint ventures.


(2)	Total gross assets includes total assets plus accumulated depreciation and less acquired below market lease intangibles, net.


(3)	Quarterly fixed charges includes interest expense, distributions to non-controlling members, dividends on preferred shares, and principal amortization.


(4)	Reflects debt net of the current cash and cash equivalents balance at the end of the period.


(5)	Assets under management include consolidated assets, unconsolidated assets at 100% and assets that we do not have an ownership interest in, but that we manage on behalf of a third party.


(6)	Includes pro-rata share of unconsolidated joint venture debt and full face value of convertible notes. Excludes unamortized mortgage premiums/discounts.


(7)	This guidance does not include any assumptions for impairments, other non-cash adjustments or the benefits of lease termination fees.



	12

Summary of Outstanding Debt at June 30, 2014

Total Outstanding Debt



	Outstanding Amount			Ratio		Weighted Average Interest Rate (1)		Weighted Average Maturity (in years)
Fixed Rate Debt:
Consolidated	$	443,040		42.1	%	5.21	%	4.7
Unconsolidated (pro rata)	160,481			15.3	%	5.09	%	6.1
Unsecured convertible notes	29,215			2.8	%	5.00	%	0.3
Total Fixed Rate Debt	632,736			60.2	%	5.17	%	4.9
Variable Rate Debt:
Consolidated	41,200			3.9	%	2.23	%	1.8
Unconsolidated (pro rata)	1,903			0.2	%	2.40	%	1.8
Unsecured line of credit facility	145,000			13.8	%	1.89	%	3.2
Unsecured term loan	180,000			17.1	%	1.84	%	4.2
Unsecured term loan	50,000			4.8	%	3.50	%	4.4
Total Variable Rate Debt	418,103			39.8	%	2.10	%	3.6
Total	$	1,050,839		100.0	%	3.95	%	4.4
Remaining unamortized convertible notes discount	(193		)
Remaining unamortized mortgages premium/discount, net	4,968
Total Outstanding Debt	$	1,055,614

Schedule of Maturities by Year



Schedule of Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities	Unsecured Maturities (2)		Total Consolidated Outstanding Debt		IRC Share of Unconsolidated Mortgage Debt	Total Consolidated and Unconsolidated Debt
2014	$	1,012	101,520	29,215	(3)	131,747		—	131,747
2015	1,802		34,523	—		36,325		13,141	49,466
2016	1,717		42,641	—		44,358		1,903	46,261
2017	1,675		44,895	145,000		191,570		14,469	206,039
2018	789		—	230,000		230,789		5,785	236,574
2019	629		38,862	—		39,491		24,098	63,589
2020	511		70,300	—		70,811		—	70,811
2021	537		42,068	—		42,605		25,130	67,735
2022	232		61,373	—		61,605		77,858	139,463
2023	128		11,900	—		12,028		—	12,028
2024	55		27,071	—		27,126		—	27,126
Total	$	9,087	475,153	404,215		888,455		162,384	1,050,839
Remaining unamortized convertible notes discount						(193	)	—	(193	)
Remaining unamortized mortgages premium/discount, net						2,395		2,573	4,968
Total Outstanding Debt						890,657		164,957	1,055,614


(1)	Interest rates are as of June 30, 2014 and exclude the impact of deferred loan fee amortization.


(2)	Includes unsecured convertible notes, line of credit facility and term loans.


(3)	The convertible notes, which mature in 2029, are included in the 2014 maturities because that is the earliest date these notes can be redeemed or the note holder can require us to repurchase their note.



	13

Summary of Outstanding Debt at June 30, 2014

Consolidated Debt



Servicer	Property Name	Interest Rate at June 30, 2014		Maturity Date	Balance at June 30, 2014
Fixed rate debt
Wachovia (1)	The Exchange at Algonquin	5.24	%	11/2014	18,645
Wachovia (1)	Algonquin Commons	5.45	%	11/2014	71,602
Prudential Insurance (1)	Orland Park Place Outlots	5.83	%	12/2014	5,123
John Hancock Life Insurance	Thatcher Woods	5.83	%	02/2015	13,500
Cohen Financial	Forest Lake Marketplace	5.86	%	03/2015	8,500
TCF Bank (1)	Grand/Hunt Center Outlot	6.50	%	04/2015	1,291
TCF Bank (1)	Dominick’s	6.50	%	04/2015	5,896
TCF Bank (1)	PetSmart	6.50	%	04/2015	1,867
TCF Bank (1)	Roundy’s	6.50	%	04/2015	3,670
Principal Life Insurance Co. (1)	Shoppes at Mill Creek	5.00	%	05/2016	7,872
Metlife Insurance Company (1)	Shakopee Valley Marketplace	5.05	%	12/2017	7,564
Metlife Insurance Company (1)	Crystal Point	5.05	%	12/2017	16,923
Metlife Insurance Company (1)	Shops at Orchard Place	5.05	%	12/2017	23,636
Prudential Insurance	Randall Square	4.00	%	01/2019	16,500
GEMSA (1)	Woodfield Commons	4.75	%	06/2019	17,478
Cohen Financial	Cobbler Crossing	4.60	%	07/2019	6,350
John Hancock Life Insurance	Roundy’s	4.85	%	12/2020	10,300
Wells Fargo	Woodland Heights	6.03	%	12/2020	4,175
Wells Fargo	Salem Square	6.03	%	12/2020	4,897
Wells Fargo	Townes Crossing	6.03	%	12/2020	6,289
Wells Fargo	Hawthorne Village Commons	6.03	%	12/2020	6,443
Wells Fargo	Aurora Commons	6.03	%	12/2020	6,443
Wells Fargo	Deertrace Kohler	6.03	%	12/2020	9,691
Wells Fargo	Pine Tree Plaza	6.03	%	12/2020	10,825
Wells Fargo	Joliet Commons	6.03	%	12/2020	11,237
Midland Loan Services	Orland Park Place	5.55	%	09/2021	42,068
Wells Fargo	Bradley Commons	5.40	%	01/2022	14,330
GEMSA (1)	Chatham Ridge	4.40	%	04/2022	17,343
Cohen Financial	Dunkirk Square	4.35	%	09/2022	4,050
Cohen Financial	Park Place Plaza	4.35	%	09/2022	6,500
Cohen Financial	Rivertree Court	4.35	%	09/2022	22,000
Midland Loan Services	Valparaiso Walk	4.11	%	02/2023	11,900
Wells Fargo	BJ's Wholesale Club	4.65	%	03/2024	15,900
KeyBank Real Estate Capital (1)	CVS	4.55	%	05/2024	2,322
KeyBank Real Estate Capital (1)	O'Reilly	4.55	%	05/2024	799
KeyBank Real Estate Capital (1)	Walgreens	4.55	%	05/2024	2,497
KeyBank Real Estate Capital	Academy Sports	4.68	%	05/2024	6,614
Total/Weighted Average Fixed Rate Secured		5.21	%		443,040
Unsecured Convertible Notes (2)		5.00	%	11/2014	29,215
Total/Weighted Average Fixed Rate		5.20	%		472,255

Variable rate debt
Bank of America	Skokie Fashion Square	0.16	%	12/2014	6,200
Bank of America	North Aurora Towne Center	2.60	%	06/2016	2,163
Bank of America	Edinburgh Festival	2.60	%	06/2016	4,063
Bank of America	CarMax	2.60	%	06/2016	9,830
Bank of America	Cliff Lake	2.60	%	06/2016	4,439
Bank of America	Burnsville Crossing	2.60	%	06/2016	4,675
Bank of America	Food 4 Less	2.60	%	06/2016	2,665
Bank of America	Shingle Creek Center	2.60	%	06/2016	1,485
Bank of America	Bohl Farm Marketplace	2.60	%	06/2016	5,680
Total/Weighted Average Variable Rate Secured		2.23	%		41,200

Unsecured
Line of Credit Facility		1.89	%	08/2017	145,000
Term Loan		1.84	%	08/2018	180,000
Term Loan		3.50	%	11/2018	50,000
Total/Weighted Average Variable Rate		2.09	%		416,200
Total/Weighted Average Consolidated Debt		3.74	%		888,455
Remaining unamortized convertible notes discount					(193		)
Remaining unamortized mortgages premium/discount, net					2,395
Total Consolidated Debt					$	890,657



	14

Summary of Outstanding Debt at June 30, 2014

Unconsolidated Debt



Servicer	Property Name	Interest Rate at June 30, 2014		Maturity Date	Balance at June 30, 2014		IRC Share of Debt (2)
Venture with PGGM
Fixed rate debt
Principal Life Insurance Co.	Diffley Marketplace	3.94	%	11/2015	$	5,800	3,190
Wells Fargo Bank (1)	Cedar Center South	5.48	%	12/2015	18,092		9,951
John Hancock Life Insurance	Point at Clark	5.05	%	09/2017	14,300		7,865
Metlife Insurance Company (1)	Woodfield Plaza	5.05	%	12/2017	12,007		6,604
John Hancock Life Insurance (1)	Four Flaggs	7.65	%	01/2018	10,519		5,785
Prudential Insurance	Brownstones Shopping Center	3.85	%	01/2019	13,255		7,290
Prudential Insurance	Elston Plaza	3.85	%	01/2019	10,560		5,808
Prudential Insurance	Silver Lake Village	5.85	%	02/2019	20,000		11,000
Midland Loan Services	Shops of Plymouth Town Center	5.83	%	03/2021	5,200		2,860
Wachovia Securities	Joffco Square	5.84	%	03/2021	13,090		7,200
Midland Loan Services	Village Ten Shopping Center	5.17	%	06/2021	8,300		4,565
Midland Loan Services	Caton Crossings	5.19	%	06/2021	7,700		4,235
Midland Loan Services	Red Top Plaza	5.55	%	09/2021	11,400		6,270
Midland Loan Services	Champlin Marketplace	4.70	%	02/2022	7,123		3,918
Wachovia Securities	Turfway Commons	5.05	%	02/2022	7,150		3,932
Wells Fargo Bank (1)	Fort Smith Pavilion	5.81	%	02/2022	33,014		18,158
Wells Fargo Bank	Stone Creek Towne Center	5.04	%	03/2022	19,800		10,890
Wells Fargo Bank	Westgate	4.94	%	03/2022	40,373		22,205
Principal Life Insurance Co.	Quarry Retail	3.75	%	08/2022	18,100		9,955
Principal Life Insurance Co.	Riverdale Commons	3.75	%	08/2022	16,000		8,800
Total/Weighted Average Fixed Rate		5.09	%		$	291,783	160,481

Variable rate debt
PNC Bank NA	Evergreen Promenade	2.40	%	05/2016	4,071		1,903
Total/Weighted Average Variable Rate		2.40	%		4,071		1,903
Total/Weighted Average Unconsolidated Debt		5.05	%		295,854		162,384
Remaining unamortized mortgages premium/discount, net					4,680		2,573
Total Unconsolidated Debt					$	300,534	164,957


(1)	These loans require payments of principal and interest monthly, all other loans listed are interest only.


(2)	IRC's pro rata share of debt is calculated using the pro rata allocation of the original equity contribution by each partner. This allocation is for presentation purposes and the Company is only financially obligated for any amounts guaranteed under the loan documents as all other amounts are non-recourse and secured by the underlying property.



	15

Significant Retail Tenants

Consolidated (1) (2)



Tenant Name	Number of Stores	Annual Base Rent		Percentage of Annual Base Rent		GLA Square Feet	Percentage of Total Square Footage
Roundy's (Rainbow-2, Pick 'N Save-2, Super Pick 'N Save 1)	5	$	4,392	3.2	%	351,700	3.3	%
TJX Companies, Inc. (TJ Maxx-6, Marshall's-9)	15	4,351		3.2	%	472,814	4.5	%
Carmax	2	4,021		2.9	%	187,851	1.8	%
AB Acquisitions LLC (Jewel-6)	6	3,985		2.9	%	393,357	3.7	%
Safeway (Dominick's Finer Foods-4) (3)	4	3,827		2.8	%	275,775	2.6	%
PetSmart	10	2,950		2.1	%	220,604	2.1	%
Ross Dress For Less	9	2,433		1.8	%	252,800	2.4	%
Kroger (Food 4 Less-3)	3	2,407		1.7	%	207,441	2.0	%
Ascena Retail Group (Justice-3, Dress Barn-8, Maurice's-7, Lane Bryant-5, Catherine's-2)	25	2,333		1.7	%	150,587	1.4	%
Bed Bath and Beyond (Bed, Bath & Beyond-5, Buy Buy Baby-2, World Market-1)	8	2,283		1.7	%	259,262	2.4	%
Dick's Sporting Goods (Dick's Sporting Goods-3, Golf Galaxy-1)	4	2,168		1.6	%	232,748	2.2	%
Best Buy	4	2,066		1.5	%	177,679	1.7	%
Office Depot (Office Depot-4, OfficeMax-4)	8	1,888		1.4	%	140,115	1.3	%
Retail Ventures, Inc. (DSW Warehouse-4)	4	1,810		1.3	%	95,915	0.9	%
The Gap (Old Navy-7, The Gap-1, The Gap Factory-1)	9	1,769		1.3	%	130,290	1.2	%
BJ's Wholesale Club	1	1,737		1.3	%	114,481	1.1	%
Hobby Lobby	2	1,649		1.2	%	103,374	1.0	%
Gordmans	3	1,547		1.1	%	148,642	1.4	%
Michaels	6	1,530		1.1	%	131,701	1.2	%
Pier 1 Imports	8	1,513		1.1	%	82,851	0.8	%
Ulta	7	1,456		1.1	%	76,013	0.7	%
Dollar Tree (Dollar Tree-14)	14	1,383		1.0	%	136,839	1.3	%
Supervalu, Inc. (Cub Foods-2)	2	1,358		1.0	%	128,298	1.2	%
Regal Cinemas	1	1,331		1.0	%	73,000	0.7	%

Total		$	56,187	41.0	%	4,544,137	42.9	%

Unconsolidated (1) (2) (4)



Tenant Name	Number of Stores	Annual Base Rent		Percentage of Annual Base Rent		GLA Square Feet	Percentage of Total Square Footage
Supervalu, Inc. (Cub Foods-6)	6	$	4,578	7.6	%	383,656	9.3	%
Roundy's (Mariano's-1, Metro Market-1, Rainbow-2)	4	3,128		5.2	%	263,245	6.4	%
Best Buy	3	2,786		4.6	%	111,001	2.7	%
AB Acquisitions LLC (Jewel-3)	3	2,101		3.5	%	192,397	4.7	%
TJX Companies, Inc. (TJ Maxx-1, Marshall's-3, Home Goods-1)	5	2,061		3.4	%	148,483	3.6	%
Michaels	6	1,998		3.3	%	136,041	3.3	%
Kohl's	3	1,880		3.1	%	83,000	2.0	%
Home Depot	1	1,243		2.1	%	113,000	2.7	%
Bed Bath and Beyond (Bed, Bath & Beyond-3, Buy Buy Baby-1)	4	1,230		2.0	%	108,789	2.6	%
Wal-Mart	3	1,164		1.9	%	38,093	0.9	%
Whole Foods Market	1	1,068		1.8	%	45,282	1.1	%
Lowe's	1	1,040		1.7	%	—	—	%
Petco	4	956		1.6	%	61,784	1.5	%
Kroger (Kroger-1, Food 4 Less-1)	2	949		1.6	%	56,668	1.4	%
PetSmart	3	827		1.4	%	59,469	1.4	%
Office Depot (Office Depot-1, OfficeMax-2)	3	818		1.4	%	65,533	1.6	%
Ascena Retail Group (Justice-2, Dress Barn-2, Lane Bryant-2)	6	701		1.2	%	36,021	0.9	%
The Gap (Old Navy-3)	3	684		1.1	%	51,780	1.3	%
The Sports Authority	1	672		1.1	%	42,563	1.0	%
Ulta	3	652		1.1	%	30,365	0.7	%
Retail Ventures, Inc. (DSW Warehouse-1)	1	584		1.0	%	23,600	0.6	%
Party City	3	580		1.0	%	35,515	0.9	%

Total		$	31,700	52.7	%	2,086,285	50.6	%


(1)	Significant tenants are tenants that represent 1% or more of our annual base rent


(2)	Includes ground leases in number of stores and annual base rent, ground lease square footage is excluded from GLA as we do not own that square footage


(3)	As previously announced, Safeway has exited the Chicago market. Although the stores have closed, the tenant is still financially obligated under their leases.


(4)	Annualized rent shown includes joint venture partner's pro rata share



	16

Significant Retail Tenants

Total (1) (2) (3)



Tenant Name	Number of Stores	Annual Base Rent		Percentage of Annual Base Rent		GLA Square Feet	Percentage of Total Square Footage
Roundy's (Mariano's-1, Metro Market-1, Pick 'N Save-2, Rainbow-4, Super Pick 'N Save-1)	9	$	7,520	3.8	%	614,945	4.2	%
TJX Companies, Inc. (TJ Maxx-7, Marshall's-12, Home Goods-1)	20	6,413		3.2	%	621,297	4.2	%
AB Acquisitions LLC (Jewel-9)	9	6,086		3.1	%	585,754	4.0	%
Supervalu, Inc. (Cub Foods-8)	8	5,936		3.0	%	511,954	3.5	%
Best Buy	7	4,851		2.5	%	288,680	2.0	%
Carmax	2	4,021		2.0	%	187,851	1.3	%
Safeway (Dominick's Finer Foods-4) (4)	4	3,827		1.9	%	275,775	1.9	%
PetSmart	13	3,777		1.9	%	280,073	1.9	%
Michaels	12	3,527		1.8	%	267,742	1.8	%
Bed Bath & Beyond (Bed, Bath & Beyond-8, Buy Buy Baby-3, World Market-1)	12	3,513		1.8	%	368,051	2.5	%
Kroger (Kroger-1, Food 4 Less-4)	5	3,355		1.7	%	264,109	1.8	%
Ascena Retail Group (Justice-5, Dress Barn-10, Maurice's-7, Lane Bryant-7, Catherine's-2)	31	3,034		1.5	%	186,608	1.3	%
Office Depot (Office Depot-5, OfficeMax-6)	11	2,705		1.4	%	205,648	1.4	%
Dick's Sporting Goods (Dick's Sporting Goods-4, Golf Galaxy-1)	5	2,693		1.4	%	282,748	1.9	%
Kohl's	4	2,470		1.2	%	169,584	1.2	%
The Gap (Old Navy-10, The Gap-1, The Gap Factory-1)	12	2,453		1.2	%	182,070	1.2	%
Ross Dress For Less	9	2,433		1.2	%	252,800	1.7	%
Retail Ventures, Inc. (DSW Warehouse-5)	5	2,394		1.2	%	119,515	0.8	%
Ulta	10	2,108		1.1	%	106,378	0.7	%
Petco	9	2,009		1.0	%	132,316	0.9	%
The Sports Authority	3	1,892		1.0	%	134,869	0.9	%

Total		$	77,017	38.9	%	6,038,767	41.1	%

Total excluding properties held through the joint venture with IPCC (1) (2) (3) (5)



Tenant Name	Number of Stores	Annual Base Rent		Percentage of Annual Base Rent		GLA Square Feet	Percentage of Total Square Footage
Roundy's (Mariano's-1, Metro Market-1, Pick 'N Save-2, Rainbow-4, Super Pick 'N Save-1)	9	$	7,520	3.9	%	614,945	4.3	%
TJX Companies, Inc. (TJ Maxx-7, Marshall's-12, Home Goods-1)	20	6,413		3.3	%	621,297	4.3	%
AB Acquisitions LLC (Jewel-9)	9	6,086		3.1	%	585,754	4.1	%
Supervalu, Inc. (Cub Foods-8)	8	5,936		3.1	%	511,954	3.6	%
Best Buy	7	4,851		2.5	%	288,680	2.0	%
Carmax	2	4,021		2.1	%	187,851	1.3	%
Safeway (Dominick's Finer Foods-4) (4)	4	3,827		2.0	%	275,775	1.9	%
PetSmart	13	3,777		1.9	%	280,073	1.9	%
Michaels	12	3,527		1.8	%	267,742	1.9	%
Bed Bath & Beyond (Bed, Bath & Beyond-8, Buy Buy Baby-3, World Market-1)	12	3,513		1.8	%	368,051	2.6	%
Kroger (Kroger-1, Food 4 Less-4)	5	3,355		1.7	%	264,109	1.8	%
Ascena Retail Group (Justice-5, Dress Barn-10, Maurice's-7, Lane Bryant-7, Catherine's-2)	31	3,034		1.6	%	186,608	1.3	%
Office Depot (Office Depot-5, OfficeMax-6)	11	2,705		1.4	%	205,648	1.4	%
Dick's Sporting Goods (Dick's Sporting Goods-4, Golf Galaxy-1)	5	2,693		1.4	%	282,748	2.0	%
The Gap (Old Navy-10, The Gap-1, The Gap Factory-1)	12	2,453		1.3	%	182,070	1.3	%
Ross Dress For Less	9	2,433		1.3	%	252,800	1.8	%
Retail Ventures, Inc. (DSW Warehouse-5)	5	2,394		1.2	%	119,515	0.8	%
Ulta	10	2,108		1.1	%	106,378	0.7	%
Petco	9	2,009		1.0	%	132,316	0.9	%
The Sports Authority	3	1,892		1.0	%	134,869	0.9	%
Dollar Tree (Dollar Tree-19)	19	1,861		1.0	%	186,902	1.3	%
Party City	11	1,843		1.0	%	129,488	0.9	%

Total		$	78,251	40.5	%	6,185,573	43.0	%


(1)	Significant tenants are tenants that represent 1% or more of our annual base rent


(2)	Annualized rent shown includes joint venture partner's pro rata share


(3)	Includes ground leases in number of stores and annual base rent, ground lease square footage is excluded from GLA as we do not own that square footage.


(4)	As previously announced, Safeway has exited the Chicago market. Although the stores have closed, the tenant is still financially obligated under their leases.


(5)	Due to the tenant fluctuations produced by the temporary ownership of the properties within the IPCC joint venture, the Company has disclosed significant tenants excluding these properties. The Company believes the additional disclosure allows investors to evaluate the tenant mix of the portfolio of properties it expects to own longer term.



	17

Portfolio Metrics

Portfolio Occupancy



Consolidated Occupancy (1)	As of June 30, 2014		As of March 31, 2014		As of June 30, 2013
Leased Occupancy (2)	95.4	%	94.8	%	93.1	%
Financial Occupancy (3)	93.6	%	92.6	%	90.3	%
Same Store Leased Occupancy (2)	94.8	%	94.8	%	93.8	%
Same Store Financial Occupancy (3)	93.2	%	92.3	%	90.6	%

Unconsolidated Occupancy (1) (4)
Leased Occupancy (2)	96.7	%	96.4	%	98.2	%
Financial Occupancy (3)	96.2	%	95.9	%	96.1	%
Same Store Leased Occupancy (2)	97.4	%	97.1	%	97.9	%
Same Store Financial Occupancy (3)	97.0	%	96.6	%	95.5	%

Total Occupancy (1)
Leased Occupancy (2)	95.8	%	95.2	%	94.4	%
Financial Occupancy (3)	94.3	%	93.5	%	91.8	%
Same Store Leased Occupancy (2)	95.6	%	95.6	%	95.1	%
Same Store Financial Occupancy (3)	94.4	%	93.6	%	92.2	%
Leased Occupancy excluding properties held through the joint venture with IPCC (2) (5)	95.7	%	95.1	%	94.2	%
Financial Occupancy excluding properties held through the joint venture with IPCC (3) (5)	94.2	%	93.3	%	91.5	%
Anchor Leased Occupancy excluding properties held through the joint venture with IPCC (2) (5)	98.8	%	98.1	%	96.5	%
Non-Anchor Leased Occupancy excluding properties held through the joint venture with IPCC (2) (5)	88.7	%	88.2	%	89.0	%

Geographic Information



	Number of investment properties (6)	Gross leasable area (7)	Percent of gross leasable area		Total Portfolio NOI PRS for the three months ended June 30, 2014 (8)		Percent of NOI
Arkansas	1	275,414	1.9	%	$	475	1.3	%
Florida	1	91,497	0.6	%	324		0.9	%
Illinois	75	8,496,328	59.0	%	23,490		63.0	%
Indiana	5	545,909	3.8	%	1,722		4.6	%
Kentucky	2	200,871	1.4	%	152		0.4	%
Minnesota	28	2,915,963	20.2	%	5,992		16.1	%
Nebraska	1	81,000	0.6	%	353		0.9	%
Ohio	5	732,728	5.1	%	2,111		5.6	%
Wisconsin	11	1,069,044	7.4	%	2,674		7.2	%

Total	129	14,408,754	100.0	%	$	37,293	100.0	%


(1)	All occupancy calculations exclude seasonal tenants.


(2)	Leased occupancy is defined as the percentage of total gross leasable area for which there is a signed lease regardless of whether the tenant is currently obligated to pay rent under their lease agreement.


(3)	Financial 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, excluding tenants in their abatement period.


(4)	Unconsolidated occupancy is calculated using 100% of the square footage of the respective properties.


(5)	Due to the occupancy fluctuations produced by the temporary ownership of the properties within this venture, the Company discloses occupancy rates excluding these properties. The Company believes the additional disclosure allows investors to evaluate the occupancy of the portfolio of properties it expects to own longer term.


(6)	Includes properties held through our unconsolidated joint ventures and excludes properties held through the Company's development joint ventures and its joint venture with IPCC.


(7)	Gross leasable area shown includes joint venture partner's pro rata share.


(8)	Total portfolio NOI includes our pro rata share of unconsolidated NOI and excludes properties held through the Company's development joint ventures and its joint venture with IPCC.



	18

Lease Expiration Analysis

Consolidated



Lease Expiration Year	Number of Leases Expiring	GLA (Sq.Ft.)	Percent of Total GLA		Total Annualized Base Rent ($) (2)		Percent of Total Annualized Base Rent (%)		Annualized Base Rent ($/Sq.Ft.) (3)

All Anchor Leases (1)
2014	4	150,960	1.4	%	$	908	0.7	%	6.01
2015	21	427,438	4.0	%	5,260		3.8	%	12.31
2016	25	610,491	5.8	%	7,025		5.1	%	11.51
2017	23	776,423	7.3	%	9,357		6.7	%	12.05
2018	20	622,649	5.9	%	7,031		5.0	%	11.29
2019	29	1,192,092	11.2	%	13,841		9.9	%	11.61
2020	16	537,973	5.1	%	5,693		4.1	%	10.58
2021	21	717,940	6.8	%	10,937		7.8	%	15.23
2022	24	558,817	5.3	%	6,105		4.4	%	10.92
2023+	52	1,592,791	15.0	%	19,702		14.1	%	12.37
Vacant (4)	—	149,514	1.4	%	—		—		—
Total/Weighted Average	235	7,337,088	69.2	%	$	85,859	61.6	%	$	11.95

All Non-Anchor Leases (1)
MTM	15	31,841	0.3	%	$	433	0.3	%	$	13.60
2014	65	156,286	1.5	%	2,705		1.9	%	17.31
2015	152	383,992	3.6	%	7,612		5.5	%	19.82
2016	151	421,142	4.0	%	7,767		5.6	%	18.44
2017	130	375,662	3.5	%	6,634		4.8	%	17.66
2018	157	395,732	3.7	%	7,997		5.7	%	20.21
2019	118	365,733	3.5	%	6,858		4.9	%	18.75
2020	40	143,537	1.4	%	2,780		2.0	%	19.37
2021	28	106,353	1.0	%	1,966		1.4	%	18.49
2022	39	177,289	1.7	%	3,072		2.2	%	17.33
2023+	83	297,543	2.8	%	5,777		4.1	%	19.42
Vacant (4)	—	406,889	3.8	%	—		—		—
Total/Weighted Average	978	3,261,999	30.8	%	$	53,601	38.4	%	$	18.77

All Leases
MTM	15	31,841	0.3	%	$	433	0.3	%	$	13.60
2014	69	307,246	2.9	%	3,613		2.6	%	11.76
2015	173	811,430	7.6	%	12,872		9.3	%	15.86
2016	176	1,031,633	9.8	%	14,792		10.7	%	14.34
2017	153	1,152,085	10.8	%	15,991		11.5	%	13.88
2018	177	1,018,381	9.6	%	15,028		10.7	%	14.76
2019	147	1,557,825	14.7	%	20,699		14.8	%	13.29
2020	56	681,510	6.5	%	8,473		6.1	%	12.43
2021	49	824,293	7.8	%	12,903		9.2	%	15.65
2022	63	736,106	7.0	%	9,177		6.6	%	12.47
2023+	135	1,890,334	17.8	%	25,479		18.2	%	13.48
Vacant (4)	—	556,403	5.2	%	—		—		—
Total/Weighted Average	1,213	10,599,087	100.0	%	$	139,460	100.0	%	$	13.89


(1)	The Company defines anchors as single tenants which lease 10,000 or more square feet. Non-anchors are defined as tenants which lease less than 10,000 square feet.


(2)	Annualized base rent for all leases financially occupied, including seasonal tenants and tenants in their abatement period at report date based on the rent as of the end of the lease.


(3)	Annualized base rent divided by gross leasable area.


(4)	Leases executed but not commenced are included in the vacant totals.



	19

Lease Expiration Analysis

Unconsolidated (1)



Lease Expiration Year	Number of Leases Expiring	GLA (Sq.Ft.)	Percent of Total GLA		Total Annualized Base Rent ($) (3)		Percent of Total Annualized Base Rent (%)		Annualized Base Rent ($/Sq.Ft.) (4)

All Anchor Leases (2)
M-T-M	1	11,092	0.3	%	$	13	—	%	$	1.17
2014	2	33,217	0.8	%	478		0.8	%	14.39
2015	3	48,656	1.2	%	671		1.2	%	13.79
2016	5	194,291	4.7	%	2,605		4.6	%	13.41
2017	13	380,401	9.2	%	5,047		8.8	%	13.27
2018	13	428,680	10.4	%	4,847		8.5	%	11.31
2019	15	414,403	10.1	%	5,105		8.9	%	12.32
2020	9	268,187	6.5	%	2,732		4.8	%	10.19
2021	5	73,172	1.8	%	860		1.5	%	11.75
2022	6	289,622	7.0	%	3,202		5.6	%	11.06
2023+	21	803,980	19.5	%	10,307		18.1	%	12.82
Vacant (5)	—	—	—	%	—		—		—
Total/Weighted Average	93	2,945,701	71.5	%	$	35,867	62.8	%	$	12.18

All Non-Anchor Leases (2)
MTM	2	3,243	0.1	%	$	81	0.1	%	$	24.98
2014	19	38,363	0.9	%	568		1.0	%	14.81
2015	52	134,408	3.3	%	2,524		4.4	%	18.78
2016	64	152,975	3.7	%	3,146		5.5	%	20.57
2017	46	110,670	2.7	%	2,517		4.4	%	22.74
2018	79	212,800	5.2	%	4,600		8.0	%	21.62
2019	49	112,007	2.7	%	2,145		3.8	%	19.15
2020	23	64,257	1.6	%	1,383		2.4	%	21.52
2021	17	53,735	1.3	%	1,238		2.2	%	23.04
2022	7	25,691	0.6	%	492		0.9	%	19.15
2023+	30	123,959	3.0	%	2,595		4.5	%	20.93
Vacant (5)		140,105	3.4	%	—		—		—
Total/Weighted Average	388	1,172,213	28.5	%	$	21,289	37.2	%	$	20.63

All Leases
MTM	3	14,335	0.4	%	$	94	0.1	%	$	6.56
2014	21	71,580	1.7	%	1,046		1.8	%	14.61
2015	55	183,064	4.5	%	3,195		5.6	%	17.45
2016	69	347,266	8.4	%	5,751		10.1	%	16.56
2017	59	491,071	11.9	%	7,564		13.2	%	15.40
2018	92	641,480	15.6	%	9,447		16.5	%	14.73
2019	64	526,410	12.8	%	7,250		12.7	%	13.77
2020	32	332,444	8.1	%	4,115		7.2	%	12.38
2021	22	126,907	3.1	%	2,098		3.7	%	16.53
2022	13	315,313	7.6	%	3,694		6.5	%	11.72
2023+	51	927,939	22.5	%	12,902		22.6	%	13.90
Vacant (5)	—	140,105	3.4	%	—		—		—
Total/Weighted Average	481	4,117,914	100.0	%	$	57,156	100.0	%	$	14.37


(1)	Amounts in table include our joint venture partner's pro-rata share.


(2)	The Company defines anchors as single tenants which lease 10,000 or more square feet. Non-anchors are defined as tenants which lease less than 10,000 square feet.


(3)	Annualized base rent for all leases financially occupied, including seasonal tenants and tenants in their abatement period at report date based on the rent as of the end of the lease.


(4)	Annualized base rent divided by gross leasable area.


(5)	Leases executed but not commenced are included in the vacant totals.



	20

Lease Expiration Analysis

Total (1)



Lease Expiration Year	Number of Leases Expiring	GLA (Sq.Ft.)	Percent of Total GLA		Total Annualized Base Rent ($) (3)		Percent of Total Annualized Base Rent (%)		Annualized Base Rent ($/Sq.Ft.) (4)

All Anchor Leases (2)
M-T-M	1	11,092	0.1	%	$	13	—	%	$	1.17
2014	6	184,177	1.3	%	1,386		0.7	%	7.53
2015	24	476,094	3.2	%	5,931		3.0	%	12.46
2016	30	804,782	5.5	%	9,630		4.9	%	11.97
2017	36	1,156,824	7.9	%	14,404		7.3	%	12.45
2018	33	1,051,329	7.1	%	11,878		6.0	%	11.30
2019	44	1,606,495	10.9	%	18,946		9.6	%	11.79
2020	25	806,160	5.5	%	8,425		4.3	%	10.45
2021	26	791,112	5.4	%	11,797		6.0	%	14.91
2022	30	848,439	5.8	%	9,307		4.7	%	10.97
2023+	73	2,396,771	16.3	%	30,009		15.3	%	12.52
Vacant (5)	—	149,514	1.0	%	—		—		—
Total/Weighted Average	328	10,282,789	70.0	%	$	121,726	61.8	%	$	12.01

All Non-Anchor Leases (2)
MTM	17	35,084	0.2	%	$	514	0.3	%	$	14.65
2014	84	194,649	1.3	%	3,273		1.7	%	16.81
2015	204	518,400	3.5	%	10,136		5.2	%	19.55
2016	215	574,117	3.9	%	10,913		5.5	%	19.01
2017	176	486,332	3.3	%	9,151		4.7	%	18.82
2018	236	608,532	4.1	%	12,597		6.4	%	20.70
2019	167	477,740	3.2	%	9,003		4.6	%	18.84
2020	63	207,794	1.4	%	4,163		2.1	%	20.03
2021	45	160,088	1.1	%	3,204		1.6	%	20.01
2022	46	202,980	1.4	%	3,564		1.8	%	17.56
2023+	113	421,502	2.9	%	8,372		4.3	%	19.86
Vacant (5)	—	546,994	3.7	%	—		—		—
Total/Weighted Average	1,366	4,434,212	30.0	%	$	74,890	38.2	%	$	19.27

All Leases
MTM	18	46,176	0.3	%	$	527	0.3	%	$	11.41
2014	90	378,826	2.6	%	4,659		2.4	%	12.30
2015	228	994,494	6.7	%	16,067		8.2	%	16.16
2016	245	1,378,899	9.4	%	20,543		10.4	%	14.90
2017	212	1,643,156	11.2	%	23,555		12.0	%	14.34
2018	269	1,659,861	11.2	%	24,475		12.4	%	14.75
2019	211	2,084,235	14.1	%	27,949		14.2	%	13.41
2020	88	1,013,954	6.9	%	12,588		6.4	%	12.41
2021	71	951,200	6.5	%	15,001		7.6	%	15.77
2022	76	1,051,419	7.2	%	12,871		6.5	%	12.24
2023+	186	2,818,273	19.2	%	38,381		19.6	%	13.62
Vacant (5)	—	696,508	4.7	%	—		—		—
Total/Weighted Average	1,694	14,717,001	100.0	%	$	196,616	100.0	%	$	14.02


(1)	Amounts in table include our joint venture partner's pro-rata share.


(2)	The Company defines anchors as single tenants which lease 10,000 or more square feet. Non-anchors are defined as tenants which lease less than 10,000 square feet.


(3)	Annualized base rent for all leases financially occupied, including seasonal tenants and tenants in their abatement period at report date based on the rent as of the end of the lease.


(4)	Annualized base rent divided by gross leasable area.


(5)	Leases executed but not commenced are included in the vacant totals.



	21

Leasing Activity

Consolidated



	Number	GLA	Total Former Average Base Rent ($) (1)		Total Former Average Base Rent (psf) (1)		Total New Average Base Rent ($) (1)		Total New Average Base Rent (psf) (1)		Total Increase (Decrease) ($)		Total Increase (Decrease) (psf)	Percent
New Lease Summary
1Q 2014	8	17,704	$	293	$	16.55	$	352	$	19.88	$	59	3.33	20.1	%
2Q 2014	7	54,214	653		12.04		713		13.15		60		1.11	9.2	%

2014 Total	15	71,918	$	946	$	13.15	$	1,065	$	14.81	$	119	1.66	12.6	%

Renewal Lease Summary (2)
1Q 2014	41	258,456	$	3,351	$	12.97	$	3,609	$	13.96	$	258	0.99	7.7	%
2Q 2014	37	295,028	3,740		12.68		4,045		13.71		305		1.03	8.2	%

2014 Total	78	553,484	$	7,091	$	12.81	$	7,654	$	13.83	$	563	1.02	7.9	%

Non-Comparable Lease Summary (3)
1Q 2014	12	34,122	$	—	$	—	$	561	$	16.44
2Q 2014	10	32,320	—		—		547		16.92

2014 Total	22	66,442	$	—	$	—	$	1,108	$	16.68

Unconsolidated (4)



	Number	GLA	Total Former Average Base Rent ($) (1)		Total Former Average Base Rent (psf) (1)		Total New Average Base Rent ($) (1)		Total New Average Base Rent (psf) (1)		Total Increase (Decrease) ($)			Total Increase (Decrease) (psf)		Percent
New Lease Summary
1Q 2014	2	2,680	$	46	$	17.16	$	54	$	20.15	$	8		2.99		17.4	%
2Q 2014	3	15,923	162		10.17		223		14.00		61			3.83		37.7	%

2014 Total	5	18,603	$	208	$	11.18	$	277	$	14.89	$	69		3.71		33.2	%

Renewal Lease Summary (2)
1Q 2014	14	49,487	$	913	$	18.45	$	857	$	17.32	$	(56	)	(1.13	)	-6.1	%
2Q 2014	16	126,513	866		6.85		1,057		8.35		191			1.50		22.1	%

2014 Total	30	176,000	$	1,779	$	10.11	$	1,914	$	10.88	$	135		0.77		7.6	%

Non-Comparable Lease Summary (3)
1Q 2014	2	3,379	$	—	$	—	$	83	$	24.56
2Q 2014	3	5,159	—		—		73		14.15

2014 Total	5	8,538	$	—	$	—	$	156	$	18.27


(1)	The calculations of former and new average base rents are adjusted for rent abatements on the included leases.


(2)	Renewal leases include expiring leases renewed with the same tenant and the exercise of options. All other leases are categorized as new.


(3)	Non-comparable leases represent leases signed for expansion square footage, or for space in which there was no former tenant in place for one year or more.



	22

Leasing Activity

Total (4)



	Number	GLA	Total Former Average Base Rent ($) (2)		Total Former Average Base Rent (psf) (2)		Total New Average Base Rent ($) (2)		Total New Average Base Rent (psf) (2)		Total Increase (Decrease) ($)		Total Increase (Decrease) (psf)	Percent
New Lease Summary
1Q 2014	10	20,384	$	339	$	16.63	$	406	$	19.92	$	67	3.29	19.8	%
2Q 2014	10	70,137	815		11.62		936		13.35		121		1.73	14.8	%

2014 Total	20	90,521	$	1,154	$	12.75	$	1,342	$	14.83	$	188	2.08	16.3	%

Renewal Lease Summary (3)
1Q 2014	55	307,943	$	4,263	$	13.84	$	4,466	$	14.50	$	203	0.66	4.8	%
2Q 2014	53	421,541	4,605		10.92		5,103		12.11		498		1.19	10.8	%

2014 Total	108	729,484	$	8,868	$	12.16	$	9,569	$	13.12	$	701	0.96	7.9	%

Non-Comparable Lease Summary (4)
1Q 2014	14	37,501	$	—	$	—	$	644	$	17.17
2Q 2014	13	37,479	—		—		620		16.54

2014 Total	27	74,980	$	—	$	—	$	1,264	$	16.86


(1)	The calculations of former and new average base rents are adjusted for rent abatements on the included leases.


(2)	Renewal leases include expiring leases renewed with the same tenant and the exercise of options. All other leases are categorized as new.


(3)	Non-comparable leases represent leases signed for expansion square footage, or for space in which there was no former tenant in place for one year or more.


(4)	Includes leasing activity on unconsolidated properties owned by joint ventures.



	23

Leasing Activity - Anchors and Non-Anchors

Consolidated (1)



New Leases	Non-Anchors (2)		Anchors (2)	Total
Number of Leases	5		2	7
Gross Leasable Area (Sq.Ft.)	11,236		42,978	54,214
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	21.61	10.95	13.15

Renewals
Number of Leases	30		7	37
Gross Leasable Area (Sq.Ft.)	82,800		212,228	295,028
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	19.69	11.38	13.71

Non-Comparable Leases (3)
Number of Leases	10		—	10
Gross Leasable Area (Sq.Ft.)	32,320		—	32,320
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	16.92	—	16.92

Total New, Renewal and Non-Comparable Leases
Number of Leases	45		9	54
Gross Leasable Area (Sq.Ft.)	126,356		255,206	381,562
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	19.15	11.31	13.90

Unconsolidated (1) (4)



New Leases	Non-Anchors (2)		Anchors (2)	Total
Number of Leases	3		—	3
Gross Leasable Area (Sq.Ft.)	15,923		—	15,923
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	14.00	—	14.00

Renewals
Number of Leases	15		1	16
Gross Leasable Area (Sq.Ft.)	32,013		94,500	126,513
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	20.94	4.10	8.35

Non-Comparable Leases (3)
Number of Leases	3		—	3
Gross Leasable Area (Sq.Ft.)	5,159		—	5,159
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	14.15	—	14.15

Total New, Renewal and Non-Comparable Leases
Number of Leases	21		1	22
Gross Leasable Area (Sq.Ft.)	53,095		94,500	147,595
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	18.20	4.10	9.16

Total (1) (4)



New Leases	Non-Anchors (2)		Anchors (2)	Total
Number of Leases	8		2	10
Gross Leasable Area (Sq.Ft.)	27,159		42,978	70,137
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	17.16	10.95	13.35

Renewals
Number of Leases	45		8	53
Gross Leasable Area (Sq.Ft.)	114,813		306,728	421,541
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	20.04	9.13	12.11

Non-Comparable Leases (3)
Number of Leases	13		—	13
Gross Leasable Area (Sq.Ft.)	37,479		—	37,479
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	16.54	—	16.54

Total New, Renewal and Non-Comparable Leases
Number of Leases	66		10	76
Gross Leasable Area (Sq.Ft.)	179,451		349,706	529,157
Base Rent/Sq.Ft. ($/Sq.Ft.)	$	18.87	9.36	12.59


(1)	The calculations of average base rents per square foot are adjusted for rent abatements on the included leases.


(2)	The Company defines anchors as single tenants which lease 10,000 or more square feet. Non-anchors are defined as tenants which lease less than 10,000 square feet.


(3)	Non-comparable leases represent leases signed for expansion square footage, or for space in which there was no former tenant in place for one year or more.


(4)	Includes leasing activity on unconsolidated properties owned by joint ventures.



	24

Property Transactions

Property Acquisitions



Date	Property	City	State	GLA Sq.Ft.	Approx. Ground Lease Sq. Ft. (1)	Purchase Price		Cap Rate (2)		Financial Occupancy		Anchors	Year Built / Renovated

01/01/14	CVS (3)	Port St. Joe	FL	13,225	—	$	4,303	6.28	%	100	%	CVS	2010
01/01/14	O'Reilly (3)	Kokomo	IN	7,210	—	1,475		6.39	%	100	%	None	2013
01/02/14	Walgreens (3)	Trenton	OH	14,820	—	4,462		6.50	%	100	%	Walgreens	2007
02/12/14	BJ's Wholesale Club (3)	Framingham	MA	114,481	—	26,500		6.43	%	100	%	BJ's Wholesale Club	1993
02/26/14	Academy Sports (3)	Olathe	KS	71,927	—	11,024		6.62	%	100	%	Academy Sports + Outdoors	2013
03/19/14	Mountain View Square (2)	Wausau	WI	86,584	7,600	11,425		6.64	%	100	%	Kohl's	2000
03/27/14	Mokena Marketplace	Mokena	IL	49,058	4,300	13,737		7.25	%	76	%	Party City, PetSmart	2008
06/30/14	Newport Pavilion (4)	Newport	KY	95,400	126,938	43,279		6.50	%	94	%	Michaels, Kroger, PetSmart, Ulta	2009

				452,705	138,838	$	116,205

Property Dispositions



Date	Property	City	State	GLA Sq. Ft.	Sale Price		Gain (Loss) on Sale			Provision for Asset Impairment

01/24/14	Dominick's	Countryside	IL	62,344	$	3,000	$	1,167		$	—
02/04/14	Golf Road Plaza	Niles	IL	25,992	3,300		742			—
03/11/14	River Square	Naperville	IL	58,260	16,750		10,941			—
04/18/14	Disney	Celebration	FL	166,131	25,700		7,030			—
05/16/14	Lake Park	Michigan City	IN	114,867	3,900		—			222
06/16/14	Winfield Pointe Center	Winfield	IL	19,888	2,500		(346		)	—
06/26/14	Gateway Square	Hinsdale	IL	39,710	10,000		3,295			—

				487,192	$	65,150	$	22,829		$	222


(1)	The purchase price of these properties includes square footage subject to ground leases. Ground lease square footage is not included in our GLA.

(2)

The cap rate disclosed is as of the time of acquisition and is calculated by dividing the forecasted net operating income ("NOI") by the purchase price. Forecasted NOI is defined as forecasted net income for the twelve months following the acquisition of the property, calculated in accordance with U.S. GAAP, excluding straight-line rental income, amortization of lease intangibles, interest, depreciation, amortization and bad debt expense, less a vacancy factor to allow for potential tenant move-outs or defaults.


(3)	This property was acquired through our joint venture with IPCC.


(4)	This property was acquired through our joint venture with PGGM.



	25

Unconsolidated Joint Venture Summary

Venture with PGGM Private Real Estate Fund (INP Retail LP)



Date	Property	City	State	GLA	IRC % Interest		IRC Investment
07/01/10	Mallard Crossing Shopping Center	Elk Grove Village	IL	82,920	55	%	$	2,287
07/01/10	Shannon Square Shoppes	Arden Hills	MN	97,638	55	%	5,567
07/01/10	Woodland Commons	Buffalo Grove	IL	170,122	55	%	3,309
08/30/10	Point at Clark	Chicago	IL	95,455	55	%	5,952
10/25/10	Diffley Marketplace	Eagan	MN	71,903	55	%	3,983
01/11/11	Joffco Square	Chicago	IL	95,204	55	%	5,217
03/01/11	Byerly's Burnsville	Burnsville	MN	72,339	55	%	1,949
03/08/11	Shops of Plymouth Town Center	Plymouth	MN	84,003	55	%	(681		)
06/02/11	Red Top Plaza	Libertyville	IL	151,840	55	%	4,351
06/02/11	Village Ten Shopping Center	Coon Rapids	MN	211,472	55	%	1,711
09/19/11	Stuart's Crossing	St. Charles	IL	85,529	55	%	(693		)
09/21/11	Champlin Marketplace	Champlin	MN	88,577	55	%	2,847
11/09/11	Quarry Retail	Minneapolis	MN	281,472	55	%	(3,358		)
11/15/11	Caton Crossings	Plainfield	IL	83,792	55	%	(1,516		)
11/18/11	Woodfield Plaza	Schaumburg	IL	177,160	55	%	(5,768		)
11/29/11	Brownstones Shopping Center	Brookfield	WI	137,816	55	%	4,818
12/07/11	Elston Plaza	Chicago	IL	87,946	55	%	4,170
12/15/11	Turfway Commons	Florence	KY	105,471	55	%	2,346
02/21/12	Riverdale Commons	Coon Rapids	MN	231,753	55	%	(75		)
02/24/12	Silver Lake Village	St. Anthony	MN	159,316	55	%	8,103
02/29/12	Stone Creek Towne Center	Cincinnati	OH	142,824	55	%	7,290
04/10/12	Four Flaggs	Niles	IL	325,972	55	%	9,082
04/13/12	Woodbury Commons	Woodbury	MN	116,196	55	%	6,328
12/11/12	Westgate	Fairview Park	OH	241,838	55	%	16,541
08/20/13	Evergreen Promenade (1)	Evergreen Park	IL	—	55	%	1,962
09/11/13	Capitol and 124th Shopping Center	Wauwatosa	WI	54,204	55	%	5,616
09/11/13	Pilgrim Village	Menomonee Falls	WI	31,331	55	%	4,979
09/11/13	Timmerman Plaza	Milwaukee	WI	40,343	55	%	2,674
10/08/13	Cedar Center South	University Heights	OH	136,080	55	%	3,661
12/19/13	Fort Smith Pavilion	Fort Smith	AR	275,414	55	%	5,228
06/30/14	Newport Pavilion	Newport	KY	95,400	55	%	23,846
				4,031,330			$	131,726

Development Joint Venture with TMK Development (TMK/Inland Aurora Venture, LLC)

Date

Property

City

State

Acres

IRC %

Interest

IRC

Investment

01/05/06

Savannah Crossing

Aurora

5 Acres

(294

)

Joint Venture with Inland Private Capital Corporation ("IPCC") (IRC/IREX Venture II, LLC)

Date

Property

City

State

GLA

IRC %

Interest

IRC

Investment

03/19/14

Mountain View Square

Wausau

86,584

9,800

IPCC Joint Venture Property Status



Property (2)	Location	% DST Ownership		Pro Rata Share of Acquisition Fee		Acquisition Fee Earned for the six months ended June 30, 2014
7-Eleven Portfolio (3)	Various	100	%	$	362	$	192
Mountain View Square	Wausau, WI	14	%	143		20

				$	505	$	212


1)	Our joint venture with PGGM acquired vacant land to develop approximately 92,500 square feet of retail space through a development partnership that is 96% pre-leased to Mariano's Fresh Market and PetSmart.


2)	These properties are not consolidated because upon the first sale of equity interest by the joint venture through a private placement offering with respect to a particular property, the Company begins accounting for its equity interest in that property under the equity method of accounting


3)	This portfolio includes twelve 7-Eleven stores, located in Akron, Brunswick, Chagrin Falls, Cleveland, Mentor, Painesville, Stow, Streetsboro, Strongsville, Twinsburg, Willoughby and Willoughby Hills OH.



	26

Investment Properties

As of June 30, 2014, we owned fee simple interests in 99 investment properties (excluding properties owned by unconsolidated joint ventures) and we owned Delaware Statutory Trust interests in the 5 properties owned through our IPCC joint venture. Total properties are comprised of 16 single-user retail properties, 36 Neighborhood Retail Centers, 25 Community Centers, 26 Power Centers and 1 Lifestyle Center. These investment properties are located in the states of Florida (2), Illinois (65), Indiana (6), Kansas (1), Massachusetts (1), Minnesota (18), Nebraska (1), Ohio (3) and Wisconsin (7). Most tenants of the investment properties are responsible for the payment of some or all of the real estate taxes, insurance and common area maintenance.



Property	City	State	Gross Leasable Area (Sq Ft)	Date Acq.	Year Built/ Renovated	Financial Occupancy (1)		Anchor Tenants (2)
Single-User
Carmax	Schaumburg	IL	93,333	12/98	1998	100	%	Carmax
Carmax	Tinley Park	IL	94,518	12/98	1998	100	%	Carmax
Cub Foods	Hutchinson	MN	60,208	01/03	1999	100% (3)		Cub Foods (3)
Freeport Commons	Freeport	IL	24,049	12/98	1998	100	%	Staples
Fresh Market	Lincolnshire	IL	20,414	10/12	2013	100	%	The Fresh Market
Glendale Heights Retail	Glendale Heights	IL	68,879	09/97	1997	100% (3)		Dominick's Finer Foods (3)
Mosaic Crossing	West Chicago	IL	78,271	01/98	1990/2013	100	%	Old Time Pottery
PetSmart	Gurnee	IL	25,692	04/01	1997	100	%	PetSmart
Pick 'N Save	Waupaca	WI	63,780	03/06	2002	100	%	Pick 'N Save
Roundy's	Menomonee Falls	WI	103,611	11/10	2010	100	%	Super Pick 'N Save
Verizon	Joliet	IL	4,504	05/97	1995	100	%	None

Single-User (IPCC Joint Venture)
Academy Sports	Olathe	KS	71,927	02/14	2013	100	%	Academy Sports + Outdoors
BJ's Wholesale Club	Framingham	MA	114,481	02/14	1993	100	%	BJ's Wholesale Club
CVS	Port St. Joe	FL	13,225	01/14	2010	100	%	CVS
O'Reilly	Kokomo	IN	7,210	01/14	2013	100	%	None
Walgreens	Trenton	OH	14,820	01/14	2007	100	%	Walgreens (4)

Neighborhood Retail Centers
22nd Street Plaza Outlot	Oakbrook Terrace	IL	9,970	11/97	1985/2004	100	%	None
Big Lake Town Square	Big Lake	MN	67,858	01/06	2005	100	%	Coborn's Super Store
Brunswick Market Center	Brunswick	OH	119,540	12/02	1997/1998	96	%	Buehler's Fresh Foods
Cliff Lake Centre	Eagan	MN	74,182	09/99	1988	88	%	None
Cobbler Crossing	Elgin	IL	102,643	05/97	1993	96	%	Jewel Food Stores
Downers Grove Market	Downers Grove	IL	103,419	03/98	1998	93	%	Angelo Caputo's
Dunkirk Square	Maple Grove	MN	79,130	09/99	1998	97	%	Rainbow
Eastgate Center	Lombard	IL	129,101	07/98	1959/2000	85	%	Ace Hardware, Illinois Secretary of State, Illinois Dept. of Employment
Edinburgh Festival	Brooklyn Park	MN	91,563	10/98	1997	95	%	Festival Foods
Elmhurst City Centre	Elmhurst	IL	39,090	02/98	1994	100	%	Walgreens (4)
Forest Lake Marketplace	Forest Lake	MN	93,853	09/02	2001	98	%	Cub Foods
Grand Hunt Center Outlot	Gurnee	IL	21,194	12/96	1996	100	%	None
Hammond Mills	Hammond	IN	78,801	05/99 12/98	1998/1999/2011	100	%	Food 4 Less
Hickory Creek Market Place	Frankfort	IL	55,831	08/99	1999	53	%	None
Iroquois Center	Naperville	IL	140,981	12/97	1983	86	%	Planet Fitness, Xilin Association, Big Lots
Maple View	Grayslake	IL	105,642	03/05	2000/2005	98	%	Jewel Food Stores
Medina Marketplace	Medina	OH	92,446	12/02	1956/1999/ 2010	100% (3)		Giant Eagle
Mundelein Plaza	Mundelein	IL	16,803	03/96	1990	90	%	None
Nantucket Square	Schaumburg	IL	56,981	09/95	1980	91	%	Go Play/Kidtown USA
Oak Forest Commons	Oak Forest	IL	108,563	03/98	1998	82	%	Food 4 Less, O'Reilly Auto Parts
Oak Forest Commons III	Oak Forest	IL	7,424	06/99	1999	40	%	None
Park Square	Brooklyn Park	MN	12,320	08/02	1986/1988/ 2006	100	%	None
Plymouth Collection	Plymouth	MN	45,915	01/99	1999	100	%	Golf Galaxy
Ravinia Plaza	Orland Park	IL	101,605	10/06	1990	97	%	Whole Foods Market, Pier 1 Imports, Eva's Bridal
Regal Showplace	Crystal Lake	IL	89,928	03/05	1998	100	%	Regal Cinemas
Rose Plaza	Elmwood Park	IL	24,204	11/98	1997	100	%	Binny's Beverage Depot
Schaumburg Plaza	Schaumburg	IL	63,485	06/98	1994	87	%	Jo-Ann Stores, Party City
Shoppes at Mill Creek	Palos Park	IL	102,422	03/98	1989	97	%	Jewel Food Stores
Shops at Cooper's Grove	Country Club Hills	IL	72,518	01/98	1991	18	%	None
Six Corners Plaza	Chicago	IL	80,596	10/96	1966/2005	96	%	L.A. Fitness, CW Price
St. James Crossing	Westmont	IL	49,994	03/98	1990	95	%	None



	27

Investment Properties

Property

City

State

Gross

Leasable

Area

(Sq Ft)

Date

Acq.

Year Built/

Renovated

Financial

Occupancy

(1)

Anchor Tenants (2)

Neighborhood Retail Centers

Townes Crossing

Oswego

105,989

08/02

1988

Jewel Food Stores

Wauconda Crossings

Wauconda

90,167

08/06

1997

97% (3)

Dominick's Finer Foods (3), Walgreens

Wauconda Shopping Center

Wauconda

34,286

05/98

1988

100

Dollar Tree

Westriver Crossings

Joliet

32,452

08/99

1999

None

Woodland Heights

Streamwood

120,436

06/98

1956/1997

Jewel Food Stores, U.S. Postal Service

Community Centers

Apache Shoppes

Rochester

60,780

12/06

2005/2006

100

Trader Joe's, Chuck E. Cheese

Aurora Commons

Aurora

126,908

01/97

1988/2013

Ross Dress for Less, Fallas Paredes

Bergen Plaza

Oakdale

262,452

04/98

1978

K-Mart, Rainbow, Dollar Tree

Bohl Farm Marketplace

Crystal Lake

97,287

12/00

2000

Dress Barn, Barnes & Noble, Buy Buy Baby

Burnsville Crossing

Burnsville

97,210

09/99

1989/2010

PetSmart, Becker Furniture World

Chatham Ridge

Chicago

175,991

02/00

1999

100

Food 4 Less, Marshall's, Anna's Linens

Chestnut Court

Darien

172,918

03/98

1987/2009

92% (3)

X-Sport Fitness, Tuesday Morning, Jo-Ann Stores, Oakridge Hobbies & Toys, Ross Dress for Less

Goldenrod Marketplace

Orlando

91,497

12/13

2013

LA Fitness, Marshall's

Greentree Centre & Outlot

Racine

169,268

02/05

1990/1993

Pick 'N Save, K-Mart

Hawthorn Village Commons

Vernon Hills

98,806

08/96

1979

Dollar Tree, Hobby Lobby

Lansing Square

Lansing

56,613

12/96

1991

None

Marketplace at Six Corners

Chicago

116,975

11/98

1997

Jewel Food Stores, Marshall's

Mokena Marketplace

Mokena

49,058

03/14

2008

Party City, PetSmart

Orchard Crossing

Ft. Wayne

130,131

04/07

2008

Gordmans, Dollar Tree

Park Avenue Centre

Highland Park

64,943

06/97

1996/2005

100

Staples, TREK Bicycle Store, Illinois Bone and Joint

Park Center

Tinley Park

132,288

12/98

1988

Charter Fitness, Chuck E. Cheese, Old Country Buffet, Sears Outlet

Park St. Claire

Schaumburg

83,259

05/97 12/96

1994/1996

100% (3)

Dominick's Finer Foods (3)

Shingle Creek Center

Brooklyn Center

39,146

09/99

1986

None

Shops at Orchard Place

Skokie

159,091

12/02

2000

DSW Shoe Warehouse, Ulta, Pier 1 Imports, Petco, Walter E Smithe, Party City, Nordstrom Rack

Skokie Fashion Square

Skokie

84,857

12/97

1984/2010

100

Ross Dress for Less, Produce World

Skokie Fashion Square II

Skokie

7,151

11/04

1984/2010

100

None

Thatcher Woods Center

River Grove

187,710

04/02

1969/1999

87% (3)

Walgreens, Hanging Garden Banquet, Binny's Beverage Depot, Sears Outlet, Dominick's Finer Foods (subleased to Rich's Food) (3)

The Plaza

Brookfield

107,952

02/99

1985

94% (3)

CVS, Guitar Center, Hooters

Two Rivers Plaza

Bolingbrook

57,900

10/98

1994

100

Marshall's, Pier 1 Imports

University Center

St. Paul

43,645

09/99

1998

100

High School for the Recording Arts

Power Centers

Baytowne Shoppes/Square

Champaign

118,305

02/99

1993

98% (3)

Staples, PetSmart, Party City, Citi Trends, Ulta

Bradley Commons

Bourbonnais

174,348

11/11

2007/2011

Shoe Carnival, Ulta, Bed, Bath & Beyond, Dick's Sporting Goods, Petco

Crystal Point

Crystal Lake

357,914

07/04

1976/1998/ 2012

Best Buy, K-Mart, Bed, Bath & Beyond, The Sports Authority, World Market, Ross Dress for Less, The Fresh Market

Deertrace Kohler

Kohler

149,924

07/02

2000

The Boston Store, TJ Maxx, Dollar Tree, Ulta, Jo-Ann Stores

Deertrace Kohler II

Kohler

24,292

08/04

2003/2004

100

None

Joliet Commons

Joliet

158,853

10/98

1995

100

Movies 10, PetSmart, Barnes & Noble, Old Navy, Party City, Jo-Ann Stores, BC Osaka Hibachi Grill

Joliet Commons Phase II

Joliet

40,395

02/00

1999

100

Office Max

Mankato Heights Plaza

Mankato

155,173

04/03

2002

TJ Maxx, Michaels, Old Navy, Pier 1 Imports, Petco

Maple Park Place

Bolingbrook

210,746

01/97

1992/2004

98% (3)

X-Sport Fitness, Office Depot (3), The Sports Authority, Best Buy, Ross Dress for Less

Orland Park Place

Orland Park

592,495

04/05

1980/1999

K & G Superstore, Old Navy, Stein Mart, Tiger Direct, Barnes & Noble, DSW Shoe Warehouse, Bed, Bath & Beyond, Binny's Beverage Depot, Nordstrom Rack, Dick's Sporting Goods, Marshall's, Buy Buy Baby, HH Gregg, Ross Dress for Less

Orland Park Place Outlots

Orland Park

11,900

08/07

2007

—

Dao



	28

Investment Properties

Property

City

State

Gross

Leasable

Area

(Sq Ft)

Date

Acq.

Year Built/

Renovated

Financial

Occupancy

(1)

Anchor Tenants (2)

Power Centers

Orland Park Place Outlots II

Orland Park

22,966

04/12

2007

None

Park Place Plaza

St. Louis Park

88,999

09/99

1997/2006

100

Office Max, PetSmart

Pine Tree Plaza

Janesville

186,523

10/99

1998

Gander Mtn., TJ Maxx, Staples, Michaels, Old Navy, Petco

Randall Square

Geneva

216,738

05/99

1999

Marshall's, Bed, Bath & Beyond, PetSmart, Michaels, Party City, Old Navy

Rivertree Court

Vernon Hills

308,610

07/97

1988/2011

100

Best Buy, Discovery Clothing, TJ Maxx, Michaels, Harlem Furniture, Gordmans, Old Navy, Pier 1 Imports, Ross Dress for Less, Shoe Carnival

Rochester Marketplace

Rochester

70,213

09/03

2001/2003

100

Staples, PetSmart

Salem Square

Countryside

116,992

08/96

1973/1985/ 2009

100

TJ Maxx/Home Goods, Marshall's

Schaumburg Promenade

Schaumburg

91,831

12/99

1999

100

Ashley Furniture, DSW Shoe Warehouse, Destination XL

Shakopee Outlot

Shakopee

12,285

03/06

2007

100

None

Shakopee Valley Marketplace

Shakopee

146,362

12/02

2000/2001

Kohl's, Office Max

Shoppes at Grayhawk

Omaha

81,000

02/06

2001/2004

Michaels, Lowe's (5)

University Crossings

Granger

111,651

10/03

2003

Marshall's, Petco, Dollar Tree, Pier 1 Imports, Ross Medical Education Center, Babies R Us (5)

Valparaiso Walk

Valparaiso

137,500

12/12

2005

100

Best Buy, Michaels, Marshall's, Bed, Bath & Beyond

Warsaw Commons

Warsaw

87,826

04/13

2012

Dollar Tree, TJ Maxx, PetSmart, Ulta

Woodfield Commons E/W

Schaumburg

207,452

10/98

1973/1975/ 1997/2007/ 2012

Toys R Us, Discovery Clothing, REI, Hobby Lobby, Ross Dress for Less, Half Price Books

Lifestyle Centers

Algonquin Commons

Algonquin

563,704

02/06

2004/2005

92% (3)

PetSmart, Office Max, Pottery Barn, Old Navy, DSW Shoe Warehouse, Discovery Clothing, Dick's Sporting Goods, Trader Joe's, Ulta, Charming Charlie, Ross Dress for Less, Gordmans

Total

10,599,087

As of June 30, 2014, we owned fee simple interests in 30 investment properties through our unconsolidated joint ventures and we owned Delaware Statutory Trust interests in the 1 property owned through our IPCC joint venture. Total properties are comprised of 13 Neighborhood Retail Centers, 6 Community Centers and 12 Power Centers. These investment properties are located in the states of Arkansas (1), Illinois (10), Kentucky (2), Minnesota (10), Ohio (3) and Wisconsin (5). Most tenants of the investment properties are responsible for the payment of some or all of the real estate taxes, insurance and common area maintenance.

Property

City

State

Gross

Leasable

Area

(Sq Ft)

Date

Acq.

Year Built/

Renovated

Financial

Occupancy

(1)

Anchor Tenants (2)

Neighborhood Retail Centers

Byerly's Burnsville

Burnsville

72,339

09/99

1988

100

Byerly's Food Store, Erik's Bike Shop

Capitol and 124th Shopping Center

Wauwatosa

54,204

09/13

1998/2012

100

Wal-Mart, Petco

Caton Crossings

Plainfield

83,792

06/03

1998

Tony's Finer Foods

Champlin Marketplace

Champlin

88,577

09/11

1999/2005

Cub Foods

Diffley Marketplace

Egan

71,903

10/10

2008

Cub Foods

Elston Plaza

Chicago

87,946

12/11

1983/2010

100

Jewel Food Stores, O'Reilly Auto Parts

Mallard Crossing Shopping Center

Elk Grove Village

82,920

05/97

1993

Food 4 Less

Pilgrim Village

Menomonee Falls

31,331

09/13

1984/2012

Wal-Mart (5), Friends of Nature

Red Top Plaza

Libertyville

151,840

06/11

1981/2008

Jewel Food Stores

Shannon Square Shoppes

Arden Hills

97,638

03/04 06/04

2003

Cub Foods

Shops of Plymouth Town Center

Plymouth

84,003

03/99

1991

100

The Foursome, Inc., Cub Foods

Stuart's Crossing

St. Charles

85,529

08/98

1999

Jewel Food Stores

Timmerman Plaza

Milwaukee

40,343

09/13

1965/2013

Dollar Tree



	29

Investment Properties

Property

City

State

Gross

Leasable

Area

(Sq Ft)

Date

Acq.

Year Built/

Renovated

Financial

Occupancy

(1)

Anchor Tenants (2)

Community Centers

Brownstones Shopping Center

Brookfield

137,816

11/11

1989/2009

97% (3)

Metro Market, TJ Maxx

Cedar Center South

University Heights

136,080

10/13

1950/2006

Tuesday Morning, Whole Foods Market, CVS, Dollar Tree

Village Ten Shopping Center

Coon Rapids

211,472

08/03

2002

Dollar Tree, Life Time Fitness, Cub Foods

Woodbury Commons

Woodbury

116,196

02/12

1992/2004/ 2012

100% (3)

Hancock Fabrics, Schuler Shoes, Dollar Tree, Becker Furniture World

Woodland Commons

Buffalo Grove

170,122

02/99

1991

Mariano's

Community Centers (IPCC Joint Venture)

Mountain View Square

Wausau

86,584

03/14

2000

100

Kohl's

Power Centers

Fort Smith Pavilion

Fort Smith

275,414

12/13

2009/2011

Dick's Sporting Goods, Best Buy, Michaels, Books-A-Million, Old Navy, Shoe Carnival, Ulta, Bed Bath & Beyond, Petco

Four Flaggs

Niles

325,972

11/02

1973/1998/ 2010

Fresh Farms, Party City, Marshall's, PetSmart, Office Depot, Old Navy, Global Clinic, Ashley Furniture, Sears Outlet, Jo-Ann Stores, Shoe Carnival

Joffco Square

Chicago

95,204

01/11

2008

100

Bed, Bath & Beyond, Best Buy, Jo-Ann Stores

Newport Pavilion

Newport

95,400

06/14

2009

Michaels, Kroger (5), PetSmart, Ulta

Point at Clark

Chicago

95,455

06/10

1996

DSW Shoe Warehouse, Marshall's, Michaels

Quarry Retail

Minneapolis

281,472

09/99

1997

100

Home Depot, Rainbow, PetSmart, Office Max, Party City, Michaels

Riverdale Commons

Coon Rapids

231,753

09/99

1999

100

Rainbow, The Sports Authority, Office Max, Petco, Party City, Home Goods, Michaels

Silver Lake Village

St. Anthony

159,316

02/12

1996/2005

North Memorial Healthcare, Cub Foods, Wal-Mart (5)

Stone Creek Towne Center

Cincinnati

142,824

02/12

2008

100

Bed, Bath & Beyond, Best Buy, Old Navy

Turfway Commons

Florence

105,471

12/11

1993/2007

Babies 'R' Us, Half Price Books, Guitar Center, Michaels

Westgate

Fairview Park

241,838

03/12

2007/2011

Books-A-Million, Lowe's (5), Petco, Marshall's, Kohl's (5), Earth Fare

Woodfield Plaza

Schaumburg

177,160

01/98

1992

Kohl's, Barnes & Noble, Buy Buy Baby, David's Bridal, Tuesday Morning

Total

4,117,914

Total/Weighted Average

14,717,001



(1)	Financial 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 excluding tenants in their abatement period.
(2)	Anchor tenants are defined as any tenant occupying 10,000 or more square feet. The trade name used in this table may be different than the tenant name on the lease.
(3)	Tenant has vacated their space but is still contractually obligated under their lease to pay rent.
(4)	Beginning with the earlier date listed, pursuant to the terms of the lease, the tenant has a right to terminate prior to the lease expiration date.
(5)	Ground lease tenants, ground lease square footage is excluded from GLA as we do not own that square footage.



	30