Retail Properties of America (RPAI) 8-K Acquisition or disposition of assets

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: March 4, 2004
(Date of earliest event reported)


Inland Western Retail Real Estate Trust, Inc.
(Exact name of registrant as specified in the charter)

Maryland	333-103799	42-1579325
(State or other jurisdiction of incorporation)	(Commission File No.)	(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)


Not Applicable
(Former name or former address, if changed since last report)

Item 2: Acquisition or Disposition of Assets

Heritage Towne Crossing, Euless, Texas

On March 5, 2004, we purchased an existing shopping center known as Heritage Towne Crossing containing 73,364 gross leasable square feet. The center is located at Glade Road and State Highway 121 in Euless, Texas.

We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $16,288,000. This amount may increase by additional costs which have not yet been finally determined. We expect any additional costs to be insignificant. Our acquisition cost was approximately $222 per square foot of leasable space. A portion of the purchase price will be held in an escrow, to be paid to the seller when the remaining spaces are leased.

We purchased this property with our own funds. However, we expect to place financing on the property at a later date.

We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.

No individual tenant leases more than 10% of the total gross leasable area of the property.

For federal income tax purposes, the depreciable basis in this property will be approximately $12,200,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.

Heritage Towne Crossing was built in 2002. As of March 1, 2004, this property was 88% occupied, with a total 64,808 square feet leased to 27 tenants. The following table sets forth certain information with respect to those leases:

	Approximate GLA Leased		Current Annual	Base Rent Per Square Foot
Lessee	(Sq. Ft.)	Lease Ends	Rent ($)	Per Annum ($)
APB Mortgage	2,530	09/06	45,540	18.00
Gamestop	1,371	03/07	29,400	21.44
Mattress Firm	4,000	04/07	96,000	24.00
All Battery Store	2,000	05/07	44,000	22.00
Sun Tailors	1,200	05/07	20,400	17.00
Dapper Dan   Cleaners	2,000	06/07	38,000	19.00
Lava Asian Grill	3,000	07/07	51,000	17.00
Salon G	2,800	08/07	50,400	18.00
Ultra Tan	1,600	08/07	24,000	15.00
Golf USA of Euless	3,437	12/07	69,459	20.21
Sara Donuts	1,400	04/08	23,800	17.00
Coppell   Spine/Sports Rehab	2,000	04/08	38,000	19.00
Plato's Closet	3,000	04/08	54,000	18.00

	Approximate GLA Leased		Current Annual	Base Rent Per Square Foot
Lessee	(Sq. Ft.)	Lease Ends	Rent ($)	Per Annum ($)
Village Barber	1,100	04/08	23,100	21.00
Town & Country   Tobacco	1,800	04/08	32,400	18.00
Parker Uniforms	3,000	05/08	42,000	14.00
The Cash Store	1,300	07/08	24,700	19.00
Art & Frame   Warehouse	2,546	07/08	39,463	15.50
Wings to Go	2,000	09/08	32,000	16.00
Ultima Fitness	2,266	10/08	37,389	16.50
Delicious Delights	1,500	11/08	27,000	18.00
Nails Spa	3,410	01/09	61,380	18.00
DoubleDave's Pizza   Works	3,308	03/09	54,582	16.50
Panda Express	2,250	04/12	47,250	21.00
Washington Mutual	4,000	10/12	84,000	21.00
Pearle Vision	1,990	12/12	35,820	18.00
The Soccer Corner	4,000	05/13	62,600	15.65
Whataburger	*	08/18	60,000	*
Taco Bell	*	10/18	51,000	*

* ground lease

In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.

Dorman Center, Spartanburg, South Carolina

On March 4, 2004, we purchased a newly constructed shopping center known as Dorman Center containing 350,994 gross leasable square feet (Phase I). We signed an agreement, subject to conditions, to purchase an additional 35,900 gross leasable square feet (Phase II) upon completion in 2004 for approximately $6,700,000. The center is located at Blackstock Road and W.L. Ezell Road, in Spartanburg, South Carolina.

We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $43,118,000 for Phase I. This amount may increase by additional costs which have not yet been finally determined. We expect any additional costs to be insignificant. Our acquisition cost was approximately $123 per square foot of leasable space for Phase I.

We purchased this property with our own funds. However, we expect to place financing on the property at a later date.

We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.

One tenant, Wal-Mart Super Center, leases more than 10% of the total gross leasable area of the Phase I property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:

			Base Rent
	Approximate		Per Square
	GLA Leased	% of Total	Foot Per	Lease	Term
Lessee	(Sq. Ft.)	GLA	Annum ($)	Beginning	To
Wal-Mart Super   Center	219,622	63	7.45	08/03	12/23

For federal income tax purposes, the total depreciable basis in this property will be approximately $25,800,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.

Dorman Center was built in 2003. As of March 1, 2004, this property was 98% occupied, with a total 345,700 square feet leased to 16 tenants. The following table sets forth certain information with respect to those leases:

	Approximate GLA Leased		Current Annual	Base Rent Per Square Foot
Lessee	(Sq. Ft.)	Lease Ends	Rent ($)	Per Annum ($)
Happy Nails	2,000	12/06	38,000	19.00
Pilgrim's Pathway	2,000	12/06	32,000	16.00
Alltell	2,500	12/06	45.000	18.00
Payless Shoesource	2,800	08/08	47,600	17.00
Your Dollar Store	5,000	08/08	77,500	15.50
JD's Fashion	3,500	12/08	63,000	18.00
Catherine's	4,000	12/08	69,000	17.25
China King	6,000	12/08	78,000	13.00
Supertans	2,500	12/08	42,500	17.00
Lee Jewelers	1,700	12/08	33,150	19.50
Linens 'n Things	25,206	12/13	252,060	10.00
Ross Dress for Less	30,187	12/13	332,057	11.00
Michaels	23,885	12/13	250,793	10.50
Pier One	10,800	12/13	199,800	18.50
McAllister's Deli	4,000	12/13	66,000	16.50
Wal-Mart Super   Center	219,622	12/23	1,636,184	7.45

* Lease term information is based on the date the tenant began occupancy and is not currently available.

In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.

Peoria Crossings, Peoria, Arizona

On March 4, 2004, we purchased a newly constructed shopping center known as Peoria Crossings, containing 213,733 gross leasable square feet. The center is located at 9350 West Northern Avenue, in Peoria, Arizona.

We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $37,328,000. This amount may increase by additional costs which have not yet been finally determined. We expect any additional costs to be insignificant. Our acquisition cost was approximately $175 per square foot of leasable space.

We originally purchased this property with our own funds. On March 5, 2004, we obtained financing in the amount of $20,497,000. The loan requires interest only payments at an annual rate of 4.09% and matures April 2009.

We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.

Three tenants, Ross Stores, Michael's and Petco, each lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenant to pay base annual rent on a monthly basis as follows:

			Base Rent
	Approximate		Per Square
	GLA Leased	% of Total	Foot Per	Lease	Term
Lessee	(Sq. Ft.)	GLA	Annum ($)	Beginning	To
Ross Stores	30,171	14	10.00	05/03	01/14
Michael's	24,063	11	11.00	03/03	02/12
Kohl's	88,408	41	8.79	02/03	01/24

For federal income tax purposes, the depreciable basis in this property will be approximately $26,200,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.

Peoria Crossing was built in 2002 and 2003. As of March 1, 2004, this property was 98% occupied, with a total 210,623 square feet leased to 22 tenants. The following table sets forth certain information with respect to those leases:

	Approximate GLA Leased		Current Annual	Base Rent Per Square Foot
Lessee	(Sq. Ft.)	Lease Ends	Rent ($)	Per Annum ($)
Supercuts	1,202	12/07	33,656	28.00
Famous Footwear	10,030	01/08	162,988	16.25
EB Games	1,500	02/08	37,500	25.00
Sally Beauty Supply	1,200	02/08	26,400	22.00
Claire's Boutique	1,269	02/08	30,456	24.00
Voice Stream	1,200	02/08	32,400	27.00
Motherlode	1,412	05/08	36,712	26.00
Cold Stone   Creamery	1,400	07/08	36,400	26.00
Sarpino's Pizzeria	1,200	07/08	31,200	26.00
Sleep America	4,500	09/08	112,500	25.00
Julie Nails & Spa	1,300	12/08	33,800	26.00
Great Clips	1,405	08/09	35,125	25.00
Michael's	24,063	02/12	264,693	11.00
Petco	15,216	10/12	216,067	14.20
Payless Shoes	4,042	01/13	80,840	20.00
Kohl's	88,408	01/13	777,106	8.79
Quizno's	1,400	05/13	38,500	27.50
Panda Express	2,205	06/13	59,535	27.00
Dress Barn	8,000	06/13	140,000	17.50
Anna's Linens	8,000	09/13	112,000	14.00
It's the Bean	1,500	10/13	43,645	29.10
Ross Stores	30,171	01/14	301,710	10.00

In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.

Item 7. Financial Statements and Exhibits

1. Financial Statements

Index to Financial Statements

Inland Western Retail Real Estate Trust, Inc.:	Page
Independent Auditors' Report	F- 1
Consolidated Balance Sheet at December 31, 2003	F- 2
Consolidated Statement of Operations for the period from March 5, 2003 (inception) to     December 31, 2003	F- 3
Consolidated Statement of Stockholders' Equity for the period from March 5, 2003 (inception) to     December 31, 2003	F- 5
Consolidated Statement of Cash Flows for the period from March 5, 2003 (inception) to     December 31, 2003	F- 6
Notes to Consolidated Financial Statements	F- 8
Real Estate and Accumulated Depreciation (Schedule III)	F-21
Pro Forma Consolidated Balance Sheet (unaudited) at December 31, 2003	F-23
Notes to Pro Forma Consolidated Balance Sheet (unaudited) at December 31, 2003	F-25
Pro Forma Consolidated Statement of Operations (unaudited) for the year ended   December 31, 2003	F-27
Notes to Pro Forma Consolidated Statement of Operations (unaudited) for the year ended   December 31, 2003	F-29

Darien Towne Center:
Independent Auditors' Report	F-32
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2002	F-33
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the year   ended December 31, 2002	F-34
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003 (unaudited)	F-36
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the year   ended December 31, 2003 (unaudited)	F-37

Properties Acquired from Thomas Enterprises:
Independent Auditors' Report	F-38
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-39
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the year   ended December 31, 2003	F-40

Stony Creek Marketplace:
Historical Summary of Gross Income and Direct Operating Expenses for the year ended    December 31, 2003 (unaudited)	F-42
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003 (unaudited)	F-43

Shops at Park Place:
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003 (unaudited)	F-44
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003 (unaudited)	F-45

Shaw's Supermarket (New Britain):
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003 (unaudited)	F-46
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003 (unaudited)	F-47

Hickory Ridge:
Independent Auditors' Report	F-48
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-49
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-50

CorWest Plaza:
Independent Auditors' Report	F-52
Historical Summary of Gross Income and Direct Operating Expenses for the period from May 29,   2003 through December 31, 2003	F-53
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   period from May 29, 2003 through December 31, 2003	F-54
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003 (unaudited)	F-56
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003 (unaudited)	F-57

Metro Square Center (SuperValue) :
Independent Auditors' Report	F-58
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-59
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-60

Larkspur Landing:
Independent Auditors' Report	F-62
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-63
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-64

North Ranch Pavilion:
Independent Auditors' Report	F-66
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-67
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-68

La Plaza Del Norte:
Independent Auditors' Report	F-70
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-71
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-72

MacArthur Crossing:
Independent Auditors' Report	F-74
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-75
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-76

Promenade at Red Cliff:
Independent Auditors' Report	F-78
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-79
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-80

Peoria Crossings:
Independent Auditors' Report	F-82
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-83
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-84

Dorman Centre:
Independent Auditors' Report	F-86
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-87
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-88

Heritage Towne Crossing:
Independent Auditors' Report	F-90
Historical Summary of Gross Income and Direct Operating Expenses for the year ended   December 31, 2003	F-91
Notes to the Historical Summary of Gross Income and Direct Operating Expenses for the   year ended December 31, 2003	F-92

SIGNATURE

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 WESTERN RETAIL REAL ESTATE TRUST, INC.

By:/s/ Kelly Tucek
Name: Kelly Tucek

Title: Treasurer

Date: March 16, 2004

Inland Western Retail Real Estate Trust, Inc.
Pro Forma Consolidated Balance Sheet
December 31, 2003
(unaudited)

The following unaudited Pro Forma Consolidated Balance Sheet is presented as if the acquisitions of the properties indicated in Note B had occurred on December 31, 2003.

This unaudited Pro Forma Consolidated Balance Sheet is not necessarily indicative of what the actual financial position would have been at December 31, 2003, nor does it purport to represent our future financial position. No pro forma adjustments have been made for any potential property acquisitions identified as of March 12, 2004. The Company does not consider these properties as probable under Regulation 3-14 as the Company has not completed the due diligence process on these properties. Additionally, the Company has not received sufficient offering proceeds or obtained firm financing commitments to acquire all of these properties as of March 12, 2004. The Company believes it will have sufficient cash from offering proceeds raised and from additional financing proceeds to acquire these properties if and when the Company is prepared to acquire these properties.

Inland Western Retail Real Estate Trust, Inc.
Pro Forma Consolidated Balance Sheet
December 31, 2003
(unaudited)

		Historical	Pro Forma
		(A)	Adjustments	Pro Forma
Assets
Net investment properties (B)	$	122,579,417	359,971,311	482,550,728
Acquired intangibles (B) (D)		10,344,354	32,286,926	42,631,280
Cash and cash equivalents		64,381,134	(4,200,000)	60,181,134
Accounts and rents receivable		1,147,551	-	1,147,551
Due from affiliates		918,750	-	918,750
Note receivable		7,552,155	(7,552,155)	-
Other assets		3,744,642	(800,000)	2,944,000
Loan fees		1,434,160	-	1,434,160
Total assets	$	212,102,163	379,706,082	591,808,245
Liabilities and Stockholders' Equity
Accounts payable		505,448	-	505,448
Accrued offering costs to affiliates		1,369,366	-	1,369,366
Due to affiliates		2,154,158	-	2,154,158
Accrued real estate taxes		1,392,069	-	1,392,069
Distributions payable		927,539	-	927,539
Mortgage payable (B) (E)		29,627,000	180,767,000	210,394,000
Line of credit		5,000,000	-	5,000,000
Acquired intangibles (B) (D)		5,910,413	5,735,237	11,645,650
Advances from advisor		1,202,519	-	1,202,519
Security deposits		108,189	-	108,189
Prepaid rental and recovery income		104,756	-	104,756
Other liabilities		71,927	-	71,927
Total liabilities		48,373,384	186,502,237	234,875,621
Common stock (C)		18,737	21,955	40,692
Additional paid-in capital (net of offering costs) (C)		165,168,650	193,181,890	358,350,540
Accumulated distributions in excess of net loss		(1,458,608)	-	(1,458,608)
Total stockholders' equity		163,728,779	193,203,845	356,932,624
Total liabilities and stockholders' equity	$	212,102,163	379,706,082	591,808,245

See accompanying notes to pro forma consolidated balance sheet.

Inland Western Retail Real Estate Trust, Inc.
Notes to Pro Forma Consolidated Balance Sheet
December 31, 2003
(unaudited)

1. The historical column represents our Consolidated Balance Sheet as of December 31, 2003 as filed with the Securities Exchange Commission on Form 10-K. As of December 31, 2003, the Company had sold 18,698,092 shares to the public and 19,049 shares were issued pursuant to the Company's distribution reinvestment program. As a result, the Company received $187,127,250 of gross offering proceeds. In addition, the Company received the Advisor's capital contribution of $200,000 for which the Advisor was issued 20,000 shares.
2. The pro forma adjustments reflect the acquisition of the following properties. The mortgages payable represent mortgages obtained from a third party subsequent to acquisition. No pro forma adjustment has been made for prorations or other closing costs as the amounts are not significant:

		Acquisition Price	Mortgage Payable
Hickory Ridge	$	41,900,000	23,650,000
CorWest Plaza		33,000,000	18,150,000
Metro Square Center		11,031,000	-
Larkspur Landing		61,147,000	33,630,000
North Ranch Pavilion		18,468,000	10,157,000
La Plaza del Norte		59,143,000	32,528,000
MacArthur Crossing		23,102,000	-
Newnan Crossing Phase II		22,362,000	-
Promenade at Red Cliff		19,636,000	-
Peoria Crossings		37,328,000	20,497,000
Dorman Centre		43,118,000	-
Heritage Towne Crossing		16,288,000	-
Total	$	386,523,000	138,612,000

Allocation of net investments in properties:

Land	$	105,523,512
Building and improvements		254,447,799
Acquired in-place lease intangibles		25,200,000
Acquired above market lease intangibles		7,086,926
Acquired below market lease intangibles		(5,735,237)
Total	$	386,523,000

3. Additional offering proceeds of $219,550,000, net of additional offering costs of $26,346,155 are reflected as received as of December 31, 2003, prior to the purchase of the properties and are limited to offering proceeds necessary to acquire the properties and offering proceeds actually received as of March 12, 2004. Offering costs consist principally of registration costs, printing and selling costs, including commissions.

Inland Western Retail Real Estate Trust, Inc.
Notes to Pro Forma Consolidated Balance Sheet
December 31, 2003
(unaudited)

4. Acquired intangibles represent above and below market leases and the difference between the property valued with the existing in-place leases and the property valued as if vacant. The value of the acquired leases will be amortized over the lease term.
5. Additional mortgages payable of $180,767,000, reflected as funded as of December 31, 2003, includes $138,612,000 of mortgages payable obtained subsequent to the acquisition of the properties described in (B) and $42,155,000 of new financing placed on previously acquired properties.
6. No pro forma assumptions have been made for the additional payment of distributions resulting from the additional proceeds raised.

Inland Western Retail Real Estate Trust, Inc.
Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2003
(unaudited)

The following unaudited Pro Forma Consolidated Statement of Operations is presented to give effect the acquisition of the properties indicated in Note B of the Notes to the Pro Forma Consolidated Statement of Operations as though they occurred on January 1, 2003 or the date significant operations commenced. No pro forma adjustments have been made for any potential property acquisitions identified as of March 12, 2004. The Company does not consider these properties as probable under Regulation 3-14 as the Company has not completed the due diligence process on these properties. Additionally, the Company has not received sufficient offering proceeds or obtained firm financing commitments to acquire all of these properties as of March 12, 2004. The Company believes it will have sufficient cash from offering proceeds raised and from additional financing proceeds to acquire these properties if and when the Company is prepared to acquire these properties. No pro forma adjustments were made for t he Eckerds-Edmond or the Eckerds-Norman, as the properties were completed in 2003 and there were no significant operations prior to our acquisition.

This unaudited Pro Forma Consolidated Statement of Operations is not necessarily indicative of what the actual results of operations would have been for the year ended December 31, 2003, nor does it purport to represent our future results of operations.

Inland Western Retail Real Estate Trust, Inc.
Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2003 (unaudited)

			Pro Forma	Pro Forma
		Historical	Adjustments	Adjustments
		(A)	(B)	(C)	Pro Forma
Rental income	$	606,645	31,551,124	4,529,497	36,687,266
Additional rent		137,988	7,417,969	1,480,187	9,036,144
Interest income		37,648	-	-	37,648
Total income		782,281	38,969,093	6,009,684	45,761,058
General and administrative expenses		315,263	-	-	315,263
Advisor asset management fee (D)		-	-	-	-
Property operating expenses		126,617	8,548,616	1,665,613	10,340,846
Management fee (G)		16,627	1,762,894	290,562	2,070,083
Interest expense (I)		135,735	7,397,795	1,925,324	9,458,854
Depreciation (E)		140,497	11,211,549	1,814,712	13,166,758
Amortization (H)		81,558	3,462,543	739,290	4,283,391
Acquisition costs		139,263	-	-	139,263
Total expenses		955,560	32,383,397	6,435,501	39,774,458
Net income (loss)	$	(173,279)	6,585,696	(425,817)	5,986,600
Weighted average number of shares   of common stock outstanding,   basic and diluted (F)		2,520,986			40,692,000
Net income (loss) per share, basic and   diluted (F)		(.07)			.15

See accompanying notes to pro forma consolidated statement of operations.

Inland Western Retail Real Estate Trust, Inc.
Notes to Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2003
(unaudited)

1. The historical information represents the historical statement of operations of the Company for the period from March 5, 2003 (inception) to December 31, 2003 as filed with the Securities Exchange Commission on Form 10-K.

2. Total pro forma adjustments for acquisitions consummated as of March 12, 2004 are as though the properties were acquired January 1, 2003.

		Gross Income
		& Direct		Total
		Operating	Pro Forma	Pro Forma
		Expenses (1)	Adjustments	Adjustments
Rental income	$	31,623,809	(72,685)	31,551,124
Additional rental income		7,417,969	-	7,417,969
Total income		39,041,778	(72,685)	38,969,093
Advisor asset management fee		-	-	-
Property operating expenses		8,548,616	-	8,548,616
Management fees		-	1,762,894	1,762,894
Interest expense		-	7,397,795	7,397,795
Depreciation		-	11,211,549	11,211,549
Amortization		-	3,462,543	3,462,543
Total expenses		8,548,616	23,834,781	32,383,397
Net income (loss)	$	30,493,162	(23,907,466)	6,585,696

1. Audited combined gross income and direct operating expenses as prepared in accordance with Rule 3-14 of Regulation S-X for the following properties:

Newnan Crossing Phase I and II, Pavilion at Kings Grant, Hickory Ridge, CorWest Plaza, Metro Square (Super Value) Center, Larkspur Landing, North Ranch Pavilion, La Plaza Del Norte, MacArthur Crossing, Promenade at Red Cliff, Peoria Crossings, Dorman Center and Heritage Towne Crossing

Inland Western Retail Real Estate Trust, Inc.
Notes to Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2003
(unaudited)

2. Total pro forma adjustments for acquisitions consummated as of March 12, 2004 are as though the properties were acquired January 1, 2003. No adjustment was made for Eckerds-Edmond or Eckerds-Norman as the properties were completed in 2003 and there were no significant operations prior to our acquisition.

		Gross Income
		& Direct		Total
		Operating	Pro Forma	Pro Forma
		Expenses (1)	Adjustments	Adjustments
Rental income	$	4,967,738	(438,241)	4,529,497
Additional rental income		1,480,187	-	1,480,187
Total income		6,447,925	(438,241)	6,009,684
Advisor asset management fee		-	-	-
Property operating expenses		1,665,613	-	1,665,613
Management fees		-	290,562	290,562
Interest expense		-	1,925,324	1,925,324
Depreciation		-	1,814,712	1,814,712
Amortization		-	739,290	739,290
Total expenses		1,665,613	4,769,888	6,435,501
Net income (loss)	$	4,782,312	(5,208,129)	(425,817)

1. Unaudited combined gross income and direct operating expenses based on information provided by the Seller for the following properties:

Shops at Park Place, Stony Creek Marketplace, Darien Towne Center, Shaw's Supermarket (New Britain).

Inland Western Retail Real Estate Trust, Inc.
Notes to Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2003
(unaudited)

4. The advisor asset management fee is expected to be subordinated to the shareholders' receipt of a stated return thus no amount is reflected.
5. Buildings and improvements will be depreciated on a straight line basis based upon estimated useful lives of 30 years for building and improvements and 15 years for site improvements. That portion of the purchase price that is allocated to above or below lease intangibles will be amortized on a straight line basis over the life of the related leases as an adjustment to rental income. Other leasing costs, tenant improvements and in-place lease intangibles will be amortized on a straight line basis over the life of the related leases as a component of amortization expense.
6. The pro forma weighted average shares of common stock outstanding for the year ended December 31, 2003 was calculated using the additional shares sold to purchase each of the properties on a weighted average basis plus the 20,000 shares purchased by the Advisor in connection with our organization.
7. Management fees are calculated as 4.5% of gross revenues pursuant to the management agreement.
8. The value of the acquired leases will be amortized over the lease term.
9. The pro forma adjustments relating to interest expense were based on the following debt terms:

		Principal		Interest		Maturity
Property		Balance		Rate (%)		Date
Stony Creek	$		14,162,000	4.770	01/11
Shaw's Supermarket (New Britain)			6,450,000	4.684	11/28
CorWest Plaza			18,150,000	4.560	02/09
Hickory Ridge			23,650,000	4.531	02/09
Larkspur Landing			33,630,000	4.450	02/09
La Plaza del Norte			32,528,000	4.610	03/10
Darien Towne Center			16,500,000	4.650	06/10
Shops at Park Place			13,127,000	4.710	11/08
Newnan Crossing			21,543,000	4.380	03/09
Peoria Crossings			20,497,000	4.090	04/09
North Ranch Pavilion			10,157,000	4.120	04/09

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Darien Towne Center ("the Property") for the year ended December 31, 2002. This Historical Summary is the responsibility of management. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Form 8-K/A of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Darien Towne Center for the year ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Los Angeles, California

December 4, 2003

Darien Towne Center
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2002
(in thousands)

		For the year
		ended
		December 31, 2002
Gross income:
rental income	$	2,051
Tenant reimbursements		449
Total gross income		2,500
Direct operating expenses:
Utilities, maintenance, and repairs		201
Real estate taxes		344
Insurance		35
Total direct operating expenses		580
Excess of gross income over direct operating expenses	$	1,920

See accompanying notes to historical summary of gross income and direct operating expense.

Darien Towne Center
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2002

1. Business

Darien Towne Center (the Property) is a shopping center located in Darien, Illinois. The Property consists of 217,505 square feet of gross leasable area and was 95% occupied at December 31, 2002. Approximately 77% of the property's leasable area is leased to three tenants, Home Depot, Circuit City, and PetSmart. Inland Western Retail Real Estate Trust, Inc. (IWRRETI) has signed a purchase and sale agreement for the purchase of the Property from an unaffiliated third-party seller.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Form 8-K/A of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Certain leases contain renewal to options at various periods at various rental rates.

Rental income is recognized using the accrual method based on contractual amounts provided for in the lease agreements. Rental revenue is recognized on a straight-line basis over the term of the respective leases.

The following is a schedule of minimum future rental to be received on noncancelable operating leases as of December 31, 2002 (in thousands):

Year		Total
2003	$	2,089
2004		1,938
2005		1,452
2006		1,440
2007		1,390
Thereafter		9,148
Total	$	17,457

Darien Towne Center
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2002


4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Darien Towne Center
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

		For the
		year ended
		December 31, 2003
		(unaudited)
Gross income:
Base rental income	$	2,123,487
Operating expense and real estate tax recoveries		514,801
Total gross income		2,638,288
Direct operating expenses:
Property operating expenses		628,144
Total direct operating expenses		628,144
Excess of gross income over direct operating expenses	$	2,010,144

See accompanying notes to historical summary of gross income and direct operating expense.

Darien Towne Center
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

1. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2003 has been prepared from the operating statements provided by the owners of the property during that period and requires management of Darien Towne Center to make estimates and assumptions that affect the amounts of the revenues and expense during that period. Actual results may differ from those estimates.

All adjustments necessary for a fair presentation have been made to the accompanying unaudited amounts for the year ended December 31, 2003.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Combined Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of the Properties Acquired from Thomas Enterprises ("the Properties") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Form 8-K/A of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Properties' revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of the Properties Acquired from Thomas Enterprises for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 24, 2004

The Properties Acquired from Thomas Enterprises
Combined Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	2,968,855
Operating expense and real estate tax recoveries		529,344
Total gross income		3,498,199
Direct operating expenses:
Operating expenses		372,962
Real estate taxes		217,447
Insurance		35,600
Total direct operating expenses		626,009
Excess of gross income over direct operating expenses	$	2,872,190

See accompanying notes to historical summary of gross income and direct operating expense.

Properties Acquired from Thomas Enterprises
Notes to Combined Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

The Properties Acquired from Thomas Enterprises ("the Properties") consists of the following:

	Gross Leasable Area		Occupancy at December 31, 2003
Name	(unaudited)	Location	(unaudited)
Pavilion at King's Grant	79,909	Concord, North Carolina	100%
Newnan Crossing I and II	288,284	Newnan, Georgia	100%

Two tenants account for 41% of the Properties' base rental income.

Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Pavilion at King's Grant on December 30, 2003, Newnan Crossing on December 23, 2003 and Newnan Crossing Phase II on February 13, 2004, from Thomas Enterprises, an unaffiliated party. The Historical Summary represents the combination of the Properties described above since the Properties are all owned by Thomas Enterprises.

A portion of Pavilion at King's Grant and Newnan Crossing (representing approximately 71,000 square feet and 275,800 square feet, respectively,) of the Properties' gross leasable area was completed as of December 31, 2002. The remaining portion of the Properties' gross leasable area (representing the remaining approximately 8,000 square feet and 12,400 square feet, respectively,) was under construction and completed during 2003.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Form 8-K/A of IWRRETI and is not intended to be a complete presentation of the Properties' revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Properties to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Properties lease retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Properties are reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal options at various periods at various rental rates. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned during the year ended December 31, 2003.

The Properties have five ground leases which are classified as operating leases with terms ranging through February 2014. Total ground lease income was $363,323 and is included in base rental income in the accompanying Historical Summary for the year ended December 31, 2003.

Properties Acquired from Thomas Enterprises
Notes to Combined Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $294,000for the year ended December 31, 2003.

Minimum rents to be received from tenants under operating leases, which terms range from five to twenty years in effect at December 31, 2003, are as follows:

Year		Total
2004	$	3,537,586
2005		3,396,343
2006		3,351,239
2007		3,155,649
2008		3,124,333
Thereafter		22,863,275
Total	$	39,428,425

 

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Stony Creek Marketplace
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

		For the
		year ended
		December 31, 2003
		(unaudited)
Gross income:
Base rental income	$	393,702
Operating expense and real estate tax recoveries		130,140
Total gross income		523,842
Direct operating expenses:
Property operating expenses		98,974
Total direct operating expenses		98,974
Excess of gross income over direct operating expenses	$	424,868

See accompanying notes to historical summary of gross income and direct operating expense.

Stony Creek Marketplace
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

1. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2003 has been prepared from the operating statements provided by the owners of the property during that period and requires management of Stony Creek Marketplace to make estimates and assumptions that affect the amounts of the revenues and expense during that period. Actual results may differ from those estimates.

All adjustments necessary for a fair presentation have been made to the accompanying unaudited amounts for the year ended December 31, 2003.

Shops atPark Place

Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

		For the
		year ended
		December 31, 2003
		(unaudited)
Gross income:
Base rental income	$	1,911,675
Operating expense and real estate tax recoveries		522,437
Total gross income		2,434,112
Direct operating expenses:
Property operating expenses		614,295
Total direct operating expenses		614,295
Excess of gross income over direct operating expenses	$	1,819,817

See accompanying notes to historical summary of gross income and direct operating expense.

Shops atPark Place
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

1. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2003 has been prepared from the operating statements provided by the owners of the property during that period and requires management of the Shops at Park Place to make estimates and assumptions that affect the amounts of the revenues and expense during that period. Actual results may differ from those estimates.

All adjustments necessary for a fair presentation have been made to the accompanying unaudited amounts for the year ended December 31, 2003.

Shaw's Supermarket (New Britain)
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

		For the
		year ended
		December 31, 2003
		(unaudited)
Gross income:
Base rental income	$	1,083,357
Operating expense and real estate tax recoveries		460,797
Total gross income		1,544,154
Direct operating expenses:
Property operating expenses		460,797
Total direct operating expenses		460,797
Excess of gross income over direct operating expenses	$	1,083,357

See accompanying notes to historical summary of gross income and direct operating expense.

Shaw's Supermarket (New Britain)
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

1. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2003 has been prepared from the operating statements provided by the owners of the property during that period and requires management of Shaw's Supermarket (New Britain) to make estimates and assumptions that affect the amounts of the revenues and expense during that period. Actual results may differ from those estimates.

All adjustments necessary for a fair presentation have been made to the accompanying unaudited amounts for the year ended December 31, 2003.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Hickory Ridge ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Hickory Ridge for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 2, 2004

Hickory Ridge
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	3,633,058
Operating expense and real estate tax recoveries		447,314
Total gross income		4,080,372
Direct operating expenses:
Operating expenses		156,997
Real estate taxes		244,786
Insurance		59,317
Total direct operating expenses		461,100
Excess of gross income over direct operating expenses	$	3,619,272

See accompanying notes to historical summary of gross income and direct operating expense.

Hickory Ridge
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Hickory Ridge (the Property) is located in Hickory, North Carolina. The Property consists of 375,587 square feet of gross leasable area and was 100% occupied at December 31, 2003. The Property is leased to twenty-one tenants of which four tenants account for approximately 51% of base rental revenue for the year ended December 31, 2003. On January 9, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. Contingent rent of $25,762 was earned during the year ended December 31, 2003.

In addition, rental income includes $95,959 of rent from one tenant that pays monthly rent based upon a percentage of monthly sales in lieu of minimum rents provided in the lease. The minimum rents schedule below excludes such tenant.

The Property has two ground leases that are classified as operating leases with terms extending through January 2013 and January 2021, respectively. Total ground lease income was $311,590 and is included in base rental income in the accompanying Historical Summary for the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exist in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increase base rental income by $132,919 for the year ended December 31, 2003.

Hickory Ridge
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from one to seventeen years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	3,393,768
2005		3,053,077
2006		3,065,441
2007		3,016,833
2008		3,019,568
Thereafter		18,476,329
Total	$	34,025,016

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of CorWest Plaza ("the Property") for the period from May 29, 2003 through December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of CorWest Plaza for the period from May 29, 2003 through December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 3, 2004

CorWest Plaza
Historical Summary of Gross Income and Direct Operating Expenses
For the period from May 29, 2003 through December 31, 2003

		For the period from
		May 29, 2003 through
		December 31, 2003
Gross income:
Base rental income	$	1,425,025
Operating expense and real estate tax recoveries		424,278
Total gross income		1,849,303
Direct operating expenses:
Operating expenses		54,893
Real estate taxes		347,412
Insurance		16,407
Total direct operating expenses		418,712
Excess of gross income over direct operating expenses	$	1,430,591

See accompanying notes to historical summary of gross income and direct operating expense.

CorWest Plaza
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the period from May 29, 2003 through December 31, 2003

1. Business

CorWest Plaza (the Property) is located in New Britain, Connecticut. The Property consists of approximately 115,011 square feet of gross leasable area and was 100% occupied at December 31, 2003. The Property is leased to ten tenants of which four tenants account for approximately 90% of base rental revenue for the period from May 29, 2003 through December 31, 2003. On January 6, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates As the Property was acquired by the seller on May 29, 2003, financial statements were not available prior to such date. As such, the Historical Summary includes only operations for the period from May 29, 2003 through December 31, 2003.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned from the period from May 29, 2003 through December 31, 2003.

The Property has 3 ground leases that are classified as operating leases with terms extending through May 2028. Total ground lease income was $1,225,693 and is included in base rental income in the accompanying Historical Summary for the period from May 29, 2003 through December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $44,806 for the period from May 29, 2003 through December 31, 2003.

CorWest Plaza
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the period from May 29, 2003 through December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from 48 months to 25 years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	2,612,698
2005		2,594,038
2006		2,464,015
2007		2,416,598
2008		2,433,616
Thereafter		40,960,776
Total	$	53,481,742

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

CorWest Plaza
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

		For the
		year ended
		December 31, 2003
		(unaudited)
Gross income:
Base rental income	$	1,925,491
Operating expense and real estate tax recoveries		535,269
Total gross income		2,460,760
Direct operating expenses:
Property operating expenses		690,670
Total direct operating expenses		690,670
Excess of gross income over direct operating expenses	$	1,770,090

See accompanying notes to historical summary of gross income and direct operating expense.

CorWest Plaza
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003 (unaudited)

1. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2003 has been prepared from the audited financial statements for the period from May 29, 2003 to December 31, 2003 and estimates for the period from January 1, 2003 to May 28, 2003. Estimates for the period from January 1, 2003 to May 28, 2003 were prepared based on information provided by the owner of the property. Actual results may differ from those estimates.

All adjustments necessary for a fair presentation have been made to the accompanying unaudited amounts for the year ended December 31, 2003.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Metro Square Center (SuperValue) ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Metro Square Center (SuperValue) for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 3, 2004

Metro Square Center (SuperValue)
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	949,573
Operating expense and real estate tax recoveries		125,792
Total gross income		1,075,365
Direct operating expenses:
Operating expenses		59,440
Real estate taxes		47,018
Insurance		18,815
Total direct operating expenses		125,273
Excess of gross income over direct operating expenses	$	950,092

See accompanying notes to historical summary of gross income and direct operating expense.

Metro Square Center (SuperValue)
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Metro Square Center (SuperValue) (the Property) is located in Severn, Maryland. The Property consists of approximately 62,000 square feet of gross leasable area and was 100% occupied at December 31, 2003. The Property is leased to three tenants of which one tenant accounts for approximately 91% of base rental revenue for the year ended December 31, 2003. On January 22, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provisions for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $54,197 for the year ended December 31, 2003.

Metro Square Center (SuperValue)
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from five to 20 years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	897,786
2005		922,082
2006		902,574
2007		904,327
2008		844,146
Thereafter		10,010,898
Total	$	14,481,813

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Larkspur Landing, ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Larkspur Landing, for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 26, 2004

Larkspur Landing
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	4,735,363
Operating expense and real estate tax recoveries		1,055,794
Total gross income		5,791,157
Direct operating expenses:
Operating expenses		707,903
Real estate taxes		336,380
Insurance		236,462
Total direct operating expenses		1,280,745
Excess of gross income over direct operating expenses	$	4,510,412

See accompanying notes to historical summary of gross income and direct operating expense.

Larkspur Landing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Larkspur Landing, (the Property) is located in Larkspur, California. The Property consists of approximately 173,800 square feet of gross leasable area and was approximately 91% occupied at December 31, 2003. The Property is leased to thirty-seven tenants of which four tenants account for approximately 62% of base rental revenue for the year ended December 31, 2003. On January 14, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provisions for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. Contingent rent of $339,129 was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $171,513 for the year ended December 31, 2003.

Larkspur Landing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from 1 to 15 years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	4,305,051
2005		3,779,574
2006		3,409,006
2007		2,769,297
2008		2,410,278
Thereafter		13,617,128
Total	$	30,290,334

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of North Ranch Pavilion ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of North Ranch Pavilion for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 25, 2004

North Ranch Pavilion
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	1,100,047
Operating expense and real estate tax recoveries		322,680
Total gross income		1,422,727
Direct operating expenses:
Operating expenses		210,864
Real estate taxes		129,164
Insurance		33,635
Total direct operating expenses		373,663
Excess of gross income over direct operating expenses	$	1,049,064

See accompanying notes to historical summary of gross income and direct operating expense.

North Ranch Pavilion
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

North Ranch Pavilion (the Property) is located in Thousand Oaks, California. The Property consists of approximately 63,000 square feet of gross leasable area and was approximately 91% occupied at December 31, 2003. The Property is leased to twenty-seven tenants of which three tenants account for approximately 34% of base rental revenue for the year ended December 31, 2003. On January 15, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $39,515 for the year ended December 31, 2003.

North Ranch Pavilion
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from three to 14 years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	1,308,503
2005		1,187,162
2006		1,196,362
2007		768,560
2008		665,216
Thereafter		2,245,095
Total	$	7,370,898

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of La Plaza Del Norte ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of La Plaza Del Norte for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 26, 2004

La Plaza Del Norte
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	4,003,605
Operating expense and real estate tax recoveries		1,421,860
Total gross income		5,425,465
Direct operating expenses:
Operating expenses		240,045
Real estate taxes		1,199,850
Insurance		84,577
Total direct operating expenses		1,524,472
Excess of gross income over direct operating expenses	$	3,900,993

See accompanying notes to historical summary of gross income and direct operating expense.

La Plaza Del Norte
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

La Plaza Del Norte (the Property) is located in San Antonio, Texas. The Property consists of approximately 320,000 square feet of gross leasable area and was approximately 96% occupied at December 31, 2003. The Property is leased to eighteen tenants of which two tenants account for approximately 41% of base rental revenue for the year ended December 31, 2003. On January 21, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. Contingent rent of $827 was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $72,859 for the year ended December 31, 2003.

La Plaza Del Norte
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from five to twenty years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	4,113,332
2005		4,070,499
2006		3,942,489
2007		3,358,048
2008		3,258,479
Thereafter		14,294,929
Total	$	33,037,776

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of MacArthur Crossing ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of MacArthur Crossing for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 1, 2004

MacArthur Crossing
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	1,760,907
Operating expense and real estate tax recoveries		608,826
Total gross income		2,369,733
Direct operating expenses:
Operating expenses		249,689
Real estate taxes		400,391
Insurance		48,208
Total direct operating expenses		698,288
Excess of gross income over direct operating expenses	$	1,671,445

See accompanying notes to historical summary of gross income and direct operating expense.

MacArthur Crossing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

MacArthur Crossing (the Property) is located in Las Colinas, Texas. The Property consists of 111,035 square feet of gross leasable area and was approximately 98% occupied at December 31, 2003. The Property is leased to twenty-nine tenants of which seven tenants account for approximately 54% of base rental revenue for the year ended December 31, 2003. On February 5, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. Contingent rent of $14,807 was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $4,655 for the year ended December 31, 2003.

MacArthur Crossing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from five to twenty years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	1,771,533
2005		1,713,801
2006		1,290,824
2007		809,370
2008		678,292
Thereafter		2,761,095
Total	$	9,024,915

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Promenade at Red Cliff ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Promenade at Red Cliff for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 5, 2004

Promenade at Red Cliff
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	1,250,480
Operating expense and real estate tax recoveries		237,743
Total gross income		1,488,223
Direct operating expenses:
Operating expenses		136,724
Real estate taxes		113,395
Insurance		38,288
Total direct operating expenses		288,407
Excess of gross income over direct operating expenses	$	1,199,816

See accompanying notes to historical summary of gross income and direct operating expense.

Promenade at Red Cliff
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Promenade at Red Cliff (the Property) is located in St. George, Utah. The Property consists of 94,947 square feet of gross leasable area and was approximately 97% occupied at December 31, 2003. The Property is leased to twenty-tenants of which four tenants account for approximately 61% of base rental revenue for the year ended December 31, 2003. On February 13, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. Contingent rent of $21,297 was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $1,622 for the year ended December 31, 2003.

Promenade at Red Cliff
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from 10 months to fifteen years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	1,468,781
2005		1,513,674
2006		1,526,952
2007		1,149,127
2008		852,421
Thereafter		921,631
Total	$	7,432,586

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Peoria Crossings ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Peoria Crossing for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 25, 2004

Peoria Crossings
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	2,247,654
Operating expense and real estate tax recoveries		367,902
Total gross income		2,615,556
Direct operating expenses:
Operating expenses		158,120
Real estate taxes		212,946
Insurance		-
Total direct operating expenses		371,066
Excess of gross income over direct operating expenses	$	2,244,490

See accompanying notes to historical summary of gross income and direct operating expense.

Peoria Crossings
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Peoria Crossings (the Property) is located in Peoria, Arizona. The Property consists of approximately 213,500 square feet of gross leasable area and was approximately 97% occupied at December 31, 2003. The Property is leased to twenty-one tenants of which five tenants account for approximately 59% of base rental revenue for the year ended December 31, 2003. Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") has signed a sale and purchase agreement for the purchase of the Property from an unaffiliated third-party ("Seller").

The Property commenced operations in 2002 with a portion of Peoria Crossings (representing approximately 207,500 square feet) of the Properties' gross leasable area complete as of December 31, 2003. The remaining portion of the Properties' gross leasable area (representing the remaining approximately 6, 000 square feet) is under construction and scheduled to be completed during 2004.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $780,986 for the year ended December 31, 2003.

Peoria Crossings
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from five to twenty-one years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	2,584,513
2005		2,606,123
2006		2,613,453
2007		2,623,407
2008		2,245,206
Thereafter		17,152,265
Total	$	29,824,967

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Dorman Centre ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Dorman Centre for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

February 25, 2004

Dorman Centre
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	1,195,938
Operating expense and real estate tax recoveries		83,579
Total gross income		1,279,517
Direct operating expenses:
Operating expenses		37,886
Real estate taxes		51,474
Insurance		9,656
Total direct operating expenses		99,016
Excess of gross income over direct operating expenses	$	1,180,501

See accompanying notes to historical summary of gross income and direct operating expense.

Dorman Centre
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Dorman Centre (the Property) is located in Spartanburg, South Carolina. The Property consists of approximately 388,000 square feet of gross leasable area and was approximately 90% occupied at December 31, 2003. The Property is leased to twenty-one tenants of which four tenants account for approximately 77% of base rental revenue for the year ended December 31, 2003. On March 4, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

The Property commenced operations on July 1, 2003 with a portion of Dorman Center (representing approximately 348,000 square feet) complete as of December 31, 2003. The remaining portion (representing the remaining approximately 40,000 square feet) is under construction and scheduled to be completed during the first quarter of 2004.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates. Certain of the leases contain provision for contingent rentals. Recognition of contingent rental income is deferred until the target that triggers the contingent rental income is achieved. No contingent rent was earned during the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $4,778 for the year ended December 31, 2003.

Dorman Centre
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from three to twenty years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	3,504,788
2005		3,540,088
2006		3,513,673
2007		3,430,584
2008		3,313,461
Thereafter		30,804,111
Total	$	48,106,705

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.

Independent Auditors' Report

The Board of Directors
Inland Western Retail Real Estate Trust, Inc.

We have audited the accompanying Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") of Heritage Towne Crossing ("the Property") for the year ended December 31, 2003. This Historical Summary is the responsibility of management of Inland Western Retail Real Estate Trust, Inc. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Historical Summary. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of Inland Western Retail Real Estate Trust, Inc., as described in note 2. The presentation is not intended to be a complete presentation of the Property's revenues and expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses described in note 2 of Heritage Towne Crossing for the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America.

KPMG LLP

Chicago, Illinois

March 3, 2004

Heritage Towne Crossing
Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

		For the year
		ended
		December 31, 2003
Gross income:
Base rental income	$	876,078
Operating expense and real estate tax recoveries		198,515
Total gross income		1,074,593
Direct operating expenses:
Operating expenses		106,131
Real estate taxes		211,070
Insurance		21,825
Total direct operating expenses		339,026
Excess of gross income over direct operating expenses	$	735,567

See accompanying notes to historical summary of gross income and direct operating expense.

Heritage Town Crossing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003

1. Business

Heritage Towne Crossing (the Property) is located in Euless, Texas. The Property consists of 80,730 square feet of gross leasable area and was approximately 81% occupied at December 31, 2003. The Property is leased to twenty-five tenants of which five tenants account for approximately 40% of base rental revenue for the year ended December 31, 2003. On March 5, 2004, Inland Western Retail Real Estate Trust, Inc. ("IWRRETI") acquired the Property from an unaffiliated third party.

2. Basis of Presentation

The Historical Summary of Gross Income and Direct Operating Expenses ("Historical Summary") has been prepared for the purpose of complying with Rule 3-14 of the Securities and Exchange Commission Regulation S-X and for inclusion in Post-Effective Amendment No. 3 to the Registration Statement on Form S-11 of IWRRETI and is not intended to be a complete presentation of the Property's revenues and expenses. The Historical Summary has been prepared on the accrual basis of accounting and requires management of the Property to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the reporting period. Actual results may differ from those estimates.

3. Gross Income

The Property leases retail space under various lease agreements with its tenants. All leases are accounted for as operating leases. The leases include provisions under which the Property is reimbursed for common area, real estate, and insurance costs. Revenue related to these reimbursed costs is recognized in the period the applicable costs are incurred and billed to tenants pursuant to the lease agreements. Certain leases contain renewal to options at various periods at various rental rates.

The Property has two ground leases that are classified as operating leases with terms extending through September, 2023. Total ground lease income was $44,417 and is included in base rental income int he accompanying Historical Summary for the year ended December 31, 2003.

Although certain leases may provide for tenant occupancy during periods for which no rent is due and/or increases exists in minimum lease payments over the term of the lease, rental income accrues for the full period of occupancy on a straight-line basis. Related adjustments increased base rental income by $15,184 for the year ended December 31, 2003.

Heritage Towne Crossing
Notes to Historical Summary of Gross Income and Direct Operating Expenses
For the year ended December 31, 2003


Minimum rents to be received from tenants under operating leases, which terms range from three to twenty years, in effect at December 31, 2003, are as follows:

Year		Total
2004	$	1,289,587
2005		1,300,384
2006		1,292,499
2007		1,069,311
2008		653,115
Thereafter		2,698,001
Total	$	8,302,897

4. Direct Operating Expenses

Direct operating expenses include only those costs expected to be comparable to the proposed future operations of the Property. Repairs and maintenance expenses are charged to operations as incurred. Costs such as depreciation, amortization, management fees, interest expense related to mortgage debt not assumed, and professional fees are excluded from the Historical Summary.