Important Disclosures

The information contained in the Portfolio Overview reflects the performance of all 217 IPC programs offered to investors through December 31, 2017 by Inland Private Capital Corporation (“IPC”). Past performance is not indicative of future results. Investments in offerings sponsored by IPC involve certain risks including but not limited to tax risks, general real estate risks, risks relating to the financing on the applicable property (if any), risks relating to the ownership and management of the property, risks relating to private offerings and the lack of liquidity, and risks relating to the Delaware statutory trust structure. In addition, Inland Private Capital Corporation can give no assurance that it will be able to pay or maintain distributions, or that distributions will increase over time.

IPC invests in a diversified portfolio of properties in terms of type of assets, locations of properties, and industries. All data in the Portfolio Overview aggregates these properties for an overall snapshot of the portfolio.

¹ “Cumulative Distributions” represent distributions from property operations as well as sales proceeds from properties which have been sold.

² Explanation of Calculations

Metrics for Open Programs

² NOTE: The “Cash Distributions” metric presented on the preceding page applies to all “open” programs, meaning those programs that continued to own assets as of December 31, 2017. This metric is defined as follows:

• A “cash distribution” is calculated by dividing the amounts distributed to investors over the indicated period by such investors’ capital invested in the program, less any proceeds returned in a refinance and inclusive of all fees and expenses. All cash distributions represent distributions to investors from property operations and not return of capital.
• The weighted average is calculated as: the cash distribution for each program multiplied by the capital invested in that program, divided by total capital invested in all programs represented in the analysis.

   

• Note that programs offered with fully amortizing debt, in which no cash flow is available during the term of the applicable loan, are not included in this calculation.

Metrics for Program Dispositions

Weighted Average Total Return is calculated by dividing the sum of amounts distributed to investors over the hold period of the investment plus the sale proceeds returned to the investors, by such investors’ capital invested in the program inclusive of all fees and expenses. To determine the weighted average, the total return for each program is multiplied by the capital invested in that program, divided by total capital invested in all programs represented in the analysis.

Weighted Average Annualized Rate of Return (ARR) is calculated as the sum of total cash flows distributed during the term of the investment plus any profit or loss on the initial offering price, divided by the investment period. To determine the weighted average, the ARR for each program is multiplied by the capital invested in that program, divided by the total capital invested in all programs represented in this analysis.

The Weighted Average Total Return and Weighted Average ARR metrics presented above apply to those programs in which the property owned by such program was sold. Please note that this analysis does not include programs in which the subject property was in foreclosure. In such situations, IPCC has negotiated with the applicable lender and advanced funds to the investors to allow the investors to exchange their beneficial interests in the original program for a proportional beneficial interest in a new program, in order to continue their Section 1031 exchanges and avoid potential capital gains and/or forgiveness of debt tax liabilities.