Apple Reit 9

Summary of Modified Funds from Operations and Net Income by Year

(January 1, 2008 – September 30, 2011)

Click for a reconciliation of MFFO to net income as reported in the Company's 10K and 10Q reports.

Summary of Distribution History (Annualized Percentages based on an $11 share price)

¹Modified Funds from operations (MFFO) is defined as net income (computed in accordance with generally accepted accounting principles — GAAP) excluding gains and losses from sales of depreciable property, rental revenue earned but not received and costs associated with the acquisition of real estate plus depreciation and amortization. The Company considers MFFO in evaluating operating performance and believes MFFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of the Company's activities in accordance with GAAP. MFFO is not necessarily indicative of cash available to fund cash needs.

²Per share distribution for initial shareholders

³Through September 30, 2011

⁴Distributions are paid on a monthly basis. The next payable date for common distributions is on or about the 15th day of the month

The information provided on this page contains information that is historical in nature. Investors are cautioned not to rely on the prior performance information set forth herein in making a decision whether or not to invest. The prior performance information contained herein is not necessarily representative of the returns that may be received by an investor in the Company. The information provided in these materials is illustrative and no assurance is given that any indicated returns, performance or results will be achieved.

The information set forth in these materials is provided for informational and discussion purposes only and is not intended to be, and shall not be regarded or construed as a recommendation for a transaction, investment, financial or other advice of any kind or constitutes or imply any commitment whatsoever, including without limitation an offer to purchase, sell or hold any security investment, loan or other financial product or to enter into or arrange any type of transaction. These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security.