What Happened to the Inland REITs? Every Inland Real Estate Group Program and What a $10 Share Became
Quick Answer
The Inland Real Estate Group did not fail; its public REITs were closed out one by one, and how a $10 share ended depends entirely on which one you bought. Of the six public non-traded REITs Inland's sponsor (Inland Real Estate Investment Corporation, Oak Brook, Illinois) took to an exit, three returned more than the offering price at the exit: Inland Retail Real Estate Trust paid $12.50 in cash plus $1.50 in DDR stock per share on February 27, 2007; Inland Diversified became 1.707 Kite Realty shares, worth about $10.92 on July 2, 2014; and Inland Real Estate Corporation, listed on the NYSE in 2004, was bought for $10.60 in cash on March 30, 2016. The two largest did worst. An Inland Western $10 share became 0.4 Retail Properties of America shares in 2012 and 0.2492 Kite shares on October 22, 2021, about $5.28 at the $21.18 price Kite used (our arithmetic). An Inland American $10 share became one-eighth of a Xenia share, one Highlands REIT share (estimated at $0.29 in 2026) and one-tenth of an InvenTrust share, which listed on October 12, 2021 with a company tender at $25.00, or $2.50 per original share (our arithmetic). Inland Residential Properties Trust liquidated at $20.93 per $25 share in 2019 (our arithmetic), and Inland Real Estate Income Trust is still non-traded at a $16.89 estimated value per post-split share. Inland's own 2017 prospectus puts the compensation paid to the sponsor and its affiliates by five of these REITs at $2.54 billion (our arithmetic). Exit values exclude the distributions paid along the way. As of October 7, 2026.
Key Takeaways
- Inland's 2017 prior-performance section counts 509 completed programs as of December 31, 2016, including 457 private and public limited partnerships, 47 Section 1031 exchange programs and five non-listed REITs. In the ten years to 2016 its offerings raised more than $12.4 billion from over 182,000 investors.
- Five REITs in Inland's own Table IV raised $15.85 billion before reinvested distributions and paid the sponsor or its affiliates $2.54 billion in compensation and reimbursements (our arithmetic): $1,373,955 thousand from Inland American, $636,317 thousand from Inland Western, $286,281 thousand from Inland Retail, $165,722 thousand from Inland Diversified and $78,410 thousand from Inland Real Estate Corporation.
- Three REITs paid Inland in stock to bring management in-house: Inland Real Estate Corporation about 6.2 million shares at $11.00 (2000), Inland Retail about 19.7 million shares at $10.00 (2004) and Inland Western 37.5 million shares at $10.00 (2007), of which 9 million came back in a 2010 lawsuit settlement. Inland American's filings say it paid no internalization fee in 2014.
- Inland Western's exit, step by step: a ten-to-one reverse split and a stock dividend turned each $10 share into 0.4 shares; the April 5, 2012 IPO at $8.00 equalled $3.20 per original share; the full-listing close of $13.75 on October 7, 2013 equalled $5.50; Kite's 0.623 exchange ratio on October 22, 2021 made it 0.2492 Kite shares, about $5.28 (our arithmetic).
- The SEC opened a formal investigation of Inland American in 2012 into fees, affiliate deals, distributions and impairments; on March 24, 2015 its staff said it did not intend to recommend enforcement action. A derivative case ended with $7.4 million in net proceeds paid to InvenTrust on behalf of the Inland entities, approved by a Cook County court on October 23, 2015.
- The smaller programs: Inland Land Appreciation Fund raised $30.0 million at $1,000 a unit and had paid limited partners 145% of it by 2013; Fund II raised $50.5 million and had paid 198% by 2017. Inland Residential Properties Trust raised about $50 million at $25.00 a Class A share and paid $4.53, $8.59 and $7.81 in liquidating distributions in 2019.
CSV · 105 rows
The Inland Real Estate Group's public programs: money raised, fees paid to the sponsor, exits and what one original share became
105 rows from the prior-performance section of Inland Residential Properties Trust's 2017 prospectus amendment; 10-Ks of Inland Real Estate Corporation, Inland Retail Real Estate Trust, Inland Western, Inland American, Inland Diversified, InvenTrust and the two Inland Land Appreciation Funds; DDR's 2007 merger proxy; Kite Realty's 2014 and 2021 merger 8-Ks and 2021 10-K; InvenTrust's 2021 split and listing 8-Ks; Inland Residential's liquidation proxy and 8-Ks; Inland Real Estate Income Trust's 8-Ks; and Highlands REIT's 2026 8-Ks.
The roll call: every public Inland program and what one original share became
A search for “Inland” on EDGAR returns dozens of filers, from single-property DSTs sold by Inland Private Capital to 1980s mortgage and income partnerships. The table covers the public programs sold to retail investors that reached an outcome you can price from the filings, plus the one REIT still open.
| Program (CIK) | Sold at / raised | Exit | Date | What one original share became |
|---|---|---|---|---|
| Inland Real Estate Corporation (923284) | $10.00, then $11.00 in 1998; $539.3 million gross by end-1998 | NYSE listing, then cash merger with DRA Advisors funds | Jun 9, 2004; Mar 30, 2016 | $10.60 in cash |
| Inland Retail Real Estate Trust (1070764) | $10.00; $2,223.0 million gross by end-2003 | Merger with Developers Diversified Realty (DDR) | Feb 27, 2007 | $12.50 cash plus $1.50 in DDR stock (0.021569 DDR share) |
| Inland Western Retail Real Estate Trust, renamed Retail Properties of America (1222840) | $10.00; $4,595.2 million gross | 10-to-1 reverse split plus B-1, B-2, B-3 stock dividend; NYSE IPO; merger into Kite Realty | Apr 5, 2012; Oct 7, 2013 (fully listed); Oct 22, 2021 | 0.4 RPAI share, then 0.2492 Kite share, about $5.28 at $21.18 (our arithmetic) |
| Inland American Real Estate Trust, renamed InvenTrust (1307748) | $10.00; $7,872.4 million before reinvested distributions | Xenia spin-off; Highlands spin-off; 1-for-10 reverse split; NYSE listing | Feb 3, 2015; Apr 28, 2016; Aug 5, 2021; Oct 12, 2021 | 0.125 Xenia share, 1 Highlands share and 0.1 InvenTrust share ($2.50 at the $25.00 listing tender, our arithmetic) |
| Inland Diversified Real Estate Trust (1438897) | $10.00; $1,099.3 million before reinvested distributions | Merger into Kite Realty | Jul 1, 2014 | 1.707 Kite shares, about $10.92 at the July 2, 2014 close; 0.42675 after Kite's 1-for-4 split (our arithmetic) |
| Inland Residential Properties Trust (1595627) | $25.00 Class A; about $50 million | Plan of liquidation approved Dec 18, 2018 | Jan 25, Apr 10 and Sep 18, 2019 | $20.93 in three liquidating distributions per Class A share (our arithmetic) |
| Inland Land Appreciation Fund (825315) | $1,000 a unit; $30.0 million | Last land sold; SEC registration ended | Dec 4, 2014; Dec 2014 | Limited partners had received 145% of capital by end-2013 |
| Inland Land Appreciation Fund II (853496) | $1,000 a unit; $50.5 million | SEC registration ended | Mar 29, 2018 | Limited partners had received 198% of capital by end-2017 |
| Inland Real Estate Income Trust (1528985) | $10.00; about $834 million in the 2012-2015 offering | Still non-traded; 1-for-2.5 reverse split announced Nov 2017 | Effective Jan 2018 | 0.4 share; $6.76 at the $16.89 estimated value (our arithmetic) |
The table shows the exit value only. All of these REITs paid regular distributions for years before the exit, and some holders took earlier cash in company tender offers; the sponsor's own return math, which does include distributions, is in the next section.
Inland's own scorecard: what the 2017 prospectus says the REITs paid the sponsor
Every new Inland offering had to carry “Prior Performance Tables” on the sponsor's earlier programs. The version filed by Inland Residential Properties Trust in April 2017 is the most complete one written after the big exits, and two of its columns are rarely quoted: how much each completed REIT paid Inland, and the annualized return Inland calculated for an investor who bought on the first day of the offering.
| REIT (Table IV) | Raised, excluding reinvested distributions | Paid or reimbursed to the sponsor and affiliates | Share of money raised (our arithmetic) | Inland's annualized return at 'completion' | Inland's annualized return at the real exit |
|---|---|---|---|---|---|
| Inland Real Estate Corporation | $532.2 million | $78.4 million | 14.7% | 13.16% (internalization, Jul 2000) | 13.51% (NYSE listing, Jun 2004) |
| Inland Retail Real Estate Trust | $2,131.3 million | $286.3 million | 13.4% | 10.41% (internalization, Dec 2004) | 15.34% (DDR merger, Feb 2007) |
| Inland Western / RPAI | $4,219.7 million | $636.3 million | 15.1% | 9.79% (internalization, Nov 2007) | 1.03% (full NYSE listing, Oct 2013) |
| Inland American / InvenTrust | $7,872.4 million | $1,374.0 million | 17.5% | 3.12% (internalization, Mar 2014) | Not determinable as of the prospectus |
| Inland Diversified | $1,099.3 million | $165.7 million | 15.1% | 10.98% (Kite merger, Jul 2014) | Same date |
| Total | $15,854.9 million (our arithmetic) | $2,540.7 million (our arithmetic) | 16.0% |
Two things in this table matter to a former holder. First, the compensation column runs only to each program's “completion”, which Inland defines as the earliest of internalization, listing, a sale or a merger, so it leaves out anything paid to Inland affiliates after that date. Second, the choice of completion date flatters the record. For Inland Western, the prospectus reports 9.79% a year at the 2007 internalization, “based upon the stock's internalization value of $10.50”, and 1.03% a year at the date the stock was fully listed in 2013, when the closing price of $13.75 was equivalent to $5.50 per original share. Both figures are in the filing; only the first is in the table.
The exits above $10: Inland Real Estate Corporation and Inland Retail
Inland Real Estate Corporation (IRC) was formed in May 1994 and sold shares in four offerings: 5 million, 10 million and 20 million shares at $10.00, then 16,642,397 shares at $11.00 in 1998 before the board ended the fourth offering early. It internalized its adviser and property manager on July 1, 2000 for about 6.2 million shares valued at $11.00 a share, roughly $68 million (our arithmetic). It listed on the NYSE on June 9, 2004 at a closing price of $11.95 and was paying $0.94 a share a year. Funds managed by DRA Advisors bought it on March 30, 2016 for $10.60 in cash per share. Inland's prospectus puts total distributions through the 2004 listing at about $365 million.
Inland Retail Real Estate Trust (IRRETI) raised $2,223,009,841 gross at $10.00 a share by the end of 2003 for shopping centers mostly east of the Mississippi, internalized management on December 29, 2004 for 19.7 million shares at $10.00 ($197 million), and was sold to Developers Diversified Realty in 2007. The merger proxy offered $14.00 a share in cash and let DDR pay up to $4.00 of it in DDR shares; at closing on February 27, 2007 holders received $12.50 in cash and $1.50 in DDR stock (0.021569 DDR share). Inland's prospectus counts $872 million of distributions through that date and an annualized return of 15.34% for a first-day investor, the best figure in its tables.
Inland Western: the internalization lawsuit, the split and the long road to Kite
Inland Western Retail Real Estate Trust sold 459,484 thousand shares at $10.00 for $4,595,193 thousand of gross proceeds and had over 111,000 shareholders of record by 2010. On November 15, 2007 it bought its business manager and property managers from Inland for 37,500 thousand shares valued at $10.00, or $375 million (our arithmetic). Shareholders sued over the deal; under the settlement, 9,000 thousand of those shares came back to the company in December 2010, 24% of the payment (our arithmetic). The share repurchase program had been suspended on November 19, 2008.
In 2012, renamed Retail Properties of America (RPAI), it did a ten-to-one reverse split, paid each Class A share a dividend of one Class B-1, one B-2 and one B-3 share (each converting into Class A over the next 18 months) and sold 36,750,000 new shares in an IPO at $8.00. Inland's prospectus spells out what that meant for an original holder: the IPO price “is equivalent to $3.20 per share” of the old stock. The last block of shares became tradable on October 7, 2013, when RPAI closed at $13.75, or $5.50 per original share.
On October 22, 2021 RPAI merged into Kite Realty Group at 0.623 Kite shares per RPAI share. Kite valued the stock it issued at $21.18 a share, the October 21 close, about $2.8 billion in total. Per original Inland Western share that is 0.4 × 0.623 = 0.2492 Kite shares, about $5.28 (our arithmetic), before more than a decade of distributions.
Inland American: the largest raise, the SEC investigation and three pieces of paper
Inland American Real Estate Trust sold shares at $10.00 in two offerings from August 31, 2005 until April 6, 2009, raising $7,872,412 thousand before reinvested distributions and $9,308,724 thousand including them, from about 184,000 investors (185,430 holders of record in March 2013). It paid $0.50 a share a year in 2011 and 2012, while its estimated value went from $7.22 (December 29, 2011) to $6.93 (December 19, 2012). Our InvenTrust review covers the company that emerged; the points below are the ones specific to the Inland years.
The SEC matter. In May 2012 the company disclosed a non-public, formal SEC investigation into fees paid to its business manager and property managers, transactions with Inland affiliates, the timing and amount of distributions, impairments and the decision on self-management. The filings show no SEC charge: on March 24, 2015 the staff told the company “it did not intend to recommend any enforcement action against InvenTrust.” The money came instead from a derivative case, Trumbo v. The Inland Group, Inc., in Cook County. A special litigation committee of independent directors found no evidence for the allegations in the shareholder demands but reported that “certain then-related parties breached their fiduciary duties to InvenTrust by failing to disclose to the independent directors certain facts and circumstances associated with the payment of fees” to the former managers. The settlement paid InvenTrust $7.4 million in net proceeds from Midwest Risk Management, LLC, as agent for the Inland entities, and the court approved it on October 23, 2015.
What an original share became. The company internalized management on March 12, 2014 without, per its filings, paying an internalization fee. It then bought back 60,665,233 shares at $6.50 in a 2014 tender, spun off Xenia Hotels & Resorts on February 3, 2015 (one Xenia share per eight shares; Xenia then bought back stock in a tender at $21.00), spun off Highlands REIT on April 28, 2016 (one share per share, estimated at $0.36), bought back 89,502,449 shares at $2.66 in a 2016 tender, did a one-for-ten reverse split on August 5, 2021 and listed on the NYSE on October 12, 2021, with a tender that bought 4,000,000 shares at $25.00 against a last estimated NAV of $28.90. Highlands, which our Highlands REIT review follows, was estimated at $0.29 a share as of March 31, 2026 and has just bought back shares at $0.20 in a tender that was oversubscribed (about 135.4 million shares tendered for up to 125 million sought).
Inland Diversified, Inland Residential and the land funds
Inland Diversified Real Estate Trust started selling at $10.00 on August 24, 2009, closed its offering on August 23, 2012 with $1,099.3 million raised before reinvested distributions from about 27,620 investors, and merged into Kite Realty on July 1, 2014: each share became 1.707 Kite shares. Kite issued 201,089,235 shares; Inland's prospectus values them at about $10.92 per Inland Diversified share at the July 2, 2014 close of $6.40, with $193 million of distributions paid before the merger. Kite did a 1-for-4 reverse split on August 11, 2014, so a former holder had 0.42675 Kite shares per original share (our arithmetic), the same Kite shares that later absorbed RPAI.
Inland Residential Properties Trust was Inland's apartment REIT. It sold Class A shares at $25.00 from February 2015, stopped on January 3, 2018 after 2,047,607 shares and about $50 million, and asked holders to approve a liquidation, estimating $21.38 to $22.86 per Class A share. They approved it on December 18, 2018. The three liquidating distributions were $4.53353284 (January 25, 2019), $8.59 (April 10, 2019) and $7.81 (September 18, 2019): $20.93 per $25.00 share (our arithmetic), below the low end of the estimate.
Inland Land Appreciation Fund and Fund II bought land in northern Illinois, such as McHenry County, to rezone and sell. Fund I sold 30,000 units at $1,000 by 1989 and, by December 31, 2013, had paid limited partners $43,480,223, “equivalent to 145% of the original capital raised”; it sold its last 64 acres on December 4, 2014 and ended its SEC registration that month. Fund II sold 50,476.17 units for $50,476,170 and by December 31, 2017 had paid limited partners $100,030,845, or 198% of capital, before ending its registration on March 29, 2018. Both partnership agreements gave limited partners priority for a return of capital plus a 15% cumulative return.
Still open under the Inland name
- Inland Real Estate Income Trust sold shares at $10.00 from October 18, 2012 to October 16, 2015 and raised about $834 million. Its board approved a 1-for-2.5 reverse split in November 2017 to take effect in January 2018, so its $16.89 estimated value (as of September 30, 2025) compares with $25.00 per post-split share. It declared a $0.1356 distribution for holders of record on September 30, 2026. Redemptions, the abandoned sale process and the November 5, 2026 annual meeting are covered in our Inland Real Estate Income Trust review.
- InPoint Commercial Real Estate Income, which Inland's 2017 prospectus counts among the sponsor's five REITs of the previous ten years, is covered on our InPoint distribution cut page.
- Inland Private Capital DSTs are private Regulation D offerings, not REITs; our Inland Private Capital DST Form D analysis has what they raised and what they charge.
What $10,000 at the offering became
| $10,000 invested in | Shares bought | What they became | Value at the exit (our arithmetic, before distributions) |
|---|---|---|---|
| Inland Real Estate Corporation, 1994-1998 | 1,000 at $10.00 | Cash merger, Mar 30, 2016 | $10,600 |
| Inland Retail Real Estate Trust | 1,000 at $10.00 | Cash and DDR stock, Feb 27, 2007 | $14,000 ($12,500 cash plus 21.569 DDR shares set at $1,500) |
| Inland Diversified | 1,000 at $10.00 | 1,707 Kite shares, Jul 1, 2014 | $10,920 at Kite's $6.40 close |
| Inland Western | 1,000 at $10.00 | 400 RPAI shares, then 249.2 Kite shares, Oct 22, 2021 | $5,278 at $21.18 |
| Inland American | 1,000 at $10.00 | 125 Xenia, 1,000 Highlands and 100 InvenTrust shares | $2,500 for the InvenTrust shares at the $25.00 listing tender, $2,625 for Xenia at its $21.00 tender, $290 for Highlands at $0.29 |
| Inland Real Estate Income Trust | 1,000 at $10.00 | 400 shares after the 2018 split | $6,756 at the $16.89 estimated value (not a price you can sell at) |
| Inland Residential Properties Trust | 400 at $25.00 | Liquidated, 2019 | $8,373 |
| Inland Land Appreciation Fund | 10 units at $1,000 | Wound up, 2014 | About $14,500 of cumulative distributions by 2013 (145%) |
The Inland American row mixes dates: Xenia's tender was in March 2015, InvenTrust's in November 2021 and the Highlands estimate is from 2026, and a holder who sold Xenia or InvenTrust stock at other times got other prices. Our listing discount ladder sets InvenTrust's listing against other non-traded REITs that went public.
What a holder can do with this
- If you held Inland Western and now hold Kite (KRG): your cost basis for 0.2492 Kite shares is what you paid for one Inland Western share, reduced by any distributions your 1099s reported as return of capital. Basis records are easy to lose through the 2012 split, the three extra share classes and the 2021 merger; check them before you sell.
- If you held Inland American: you may hold three securities. InvenTrust (IVT) and Xenia (XHR) trade on the NYSE. Highlands does not; its exits are company tenders, the latest at $0.20. The spin-offs were taxable distributions, so part of your original basis moved into the Xenia and Highlands shares.
- If you held Inland Diversified: your Kite shares are 0.42675 per original share after the 2014 split.
- If you held Inland Real Estate Corporation, Inland Retail, Inland Residential or a land fund: these are closed. The cash you received ended the investment for tax purposes in the year of the merger or final distribution; the filings we read show nothing further owed on any of them.
- If you hold Inland Real Estate Income Trust: the exit is the company's repurchase program or a future liquidity event, neither guaranteed; see our review for the current terms.
This is analysis of public documents, not investment, legal or tax advice.
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Sources, read on October 7, 2026: Inland Residential Properties Trust (CIK 1595627) post-effective amendment of April 12, 2017 (0001193125-17-120253), proxy of October 9, 2018 (0000892626-18-000121) and 8-Ks of January 25, April 4 and September 18, 2019; Inland Real Estate Corporation (CIK 923284) Forms 10-K for 1998 (0000923284-99-000010) and 2004 (0001104659-05-010898); Inland Retail Real Estate Trust (CIK 1070764) Forms 10-K for 2003 (0001070764-04-000018) and 2005 and the DDR merger proxy of January 3, 2007 (0000950152-07-000030); Inland Western Retail Real Estate Trust (CIK 1222840) Form 10-K for 2010 (0001222840-11-000008); Inland American Real Estate Trust / InvenTrust (CIK 1307748) Forms 10-K for 2012 (0001307748-13-000007) and 2021 (0001307748-22-000021) and 8-Ks of August 5 and October 12, 2021; Inland Diversified Real Estate Trust (CIK 1438897) Form 10-K for 2013; Kite Realty Group Trust (CIK 1286043) 8-Ks of July 8 and August 12, 2014 and October 22, 2021 (0001104659-21-129010) and Form 10-K for 2021 (0001286043-22-000024); Inland Real Estate Income Trust (CIK 1528985) 8-Ks of November 22, 2017, December 9, 2025 (0001193125-25-312903) and September 29, 2026; Highlands REIT (CIK 1661458) 8-Ks of May 12 and October 1, 2026; Inland Land Appreciation Fund (CIK 825315) 2013 Form 10-K, December 9, 2014 8-K and Form 15; Inland Land Appreciation Fund II (CIK 853496) 2017 Form 10-K and Form 15. Exit values per original share, totals and percentages are our arithmetic and exclude regular distributions unless stated. This is analysis of public documents, not investment, legal or tax advice.
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