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8-K - IRET FORM 8-K - INVESTORS REAL ESTATE TRUSTiretform8k-09092010.htm
EX-99.1 - EARNING RELEASE - INVESTORS REAL ESTATE TRUSTiretexhibit991-09092010.htm

 
 

 

Exhibit 99.2
 

IRET Logo


First Quarter Fiscal 2011
Supplemental Operating and Financial Data
for the Quarter Ended July 31, 2010
 

 
         
CONTACT:
Lindsey Knoop Anderson
Director of Investor Relations
Direct Dial: 701-837-4738
E-Mail: landerson@iret.com
     
3015 16th Street SW, Suite 100
Minot, ND 58701
Tel: 701.837.4738
Fax: 701.838.7785
www.iret.com

 
 

 


 

 

Supplemental Financial and Operating Data
July 31, 2010
 

 
 
Page
   
Company Background and Highlights
2
   
Investment Cost by Segment
5
   
Key Financial Data
 
Condensed Consolidated Balance Sheets
6
Condensed Consolidated Statements of Operations
7
Funds From Operations
8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
9
   
Capital Analysis
 
Long-Term Mortgage Debt Analysis
10
Long-Term Mortgage Debt Detail
11-12
Capital Analysis
13
   
Portfolio Analysis
 
Stabilized Properties Net Operating Income Summary
14
Net Operating Income Detail
15-16
Stabilized Properties and Overall Economic Occupancy Levels by Segment
17
   
Tenant Analysis
 
Commercial Leasing Summary
18-19
Multi-Family Residential Summary
20
10 Largest Commercial Tenants - Based on Annualized Base Rent
21
Lease Expirations as of July 31, 2010
22
   
Growth and Strategy
 
Fiscal 2011 Acquisition Summary
23
Fiscal 2011 Development Summary
24
   
Definitions                                                                                                                                                       
25




Company Background and Highlights
First Quarter Fiscal 2011
 
Investors Real Estate Trust is a self-administered, equity real estate investment trust (REIT) investing in a portfolio of income-producing properties located primarily in the upper Midwest.  IRET’s portfolio is diversified among multi-family residential, commercial office, commercial medical (including senior housing), commercial industrial and commercial retail segments.
 
During the first quarter of fiscal year 2011, on July 15, 2010, the Company acquired two medical office buildings located in, respectively, Billings, Montana and Missoula, Montana, for a total purchase price of approximately $5.2 million, consisting of cash in the amount of approximately $957,000 and the assumption of existing debt with an interest rate of 7.06% and a maturity date of December 31, 2016, in the amount of approximately $4.3 million.  The two medical office buildings were each constructed in 2001, and contain approximately 14,705 square feet and 14,640 square feet of leasable space, respectively.
 
During the first quarter of fiscal year 2011, the Company completed construction of a single-tenant office/warehouse facility in Fargo, North Dakota.  The cost to construct the facility was approximately $3.9 million, including the cost of the land plus imputed construction interest.  The lease of the facility commenced on July 1, 2010. The Company had no dispositions in the first quarter of fiscal year 2011.
 
IRET continues to pursue its announced goal of transferring the management of the majority of its commercial and multi-family residential properties from third-party property management companies to its own employees. As of July 31, 2010, the Company had under internal management a total of 146 properties in its commercial office, commercial medical, commercial industrial and commercial retail segments, totaling approximately 8.7 million square feet. Approximately 68.7% of the properties in the Company’s commercial office segment, 89.3% of the properties in its commercial medical segment, 90.0% of the properties in its commercial industrial segment, and 97.0% of the properties in its commercial retail segment, were internally managed by Company employees as of July 31, 2010.  IRET continues to evaluate its portfolio of commercial properties to determine additional suitable candidates for internal management, and to establish appropriate timelines to accomplish the transfers.
 
The transition to internal management in the Company’s multi-family residential segment also continued during the first quarter of fiscal year 2011. As of July 31, 2010, approximately 84.6% of the properties in the Company’s multi-family residential segment were internally managed by Company employees, or approximately 7,545 units in 66 properties. During fiscal year 2010 and continuing in the first quarter of fiscal year 2011, the Company added a significant number of new employees, many of whom were hired to work in multi-family residential property management.  As of July 31, 2010, the Company had 359 employees, of which 283 were full-time and 76 were part-time employees; of these 359 employees, 55 are corporate staff in our Minot, North Dakota and Eden Prairie, Minnesota offices, and 304 are property management employees based at our properties or in local property management offices. These additions to staff, and associated investments in equipment, accounting and other support systems, represent a significant expense to the Company, which is reflected in an increase in property management expense attributable to the Company’s internal property management initiative of approximately $362,000 for the three months ended July 31, 2010, primarily in the multi-family residential segment.
 
On April 7, 2009, IRET and IRET Properties entered into a continuous equity offering program sales agreement with Robert W. Baird & Co. Incorporated (Baird).  Pursuant to the Sales Agreement, IRET may offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $50 million, from time to time through Baird as IRET's sales agent. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET. IRET has no obligation to sell any common shares in the program, and may at any time suspend solicitation and offers under the program or terminate the program. During the first quarter of fiscal year 2011, IRET sold 1.8 million common shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $15.0 million.
 
IRET's first quarter fiscal year 2011 results reflect the continuing challenges the real estate industry faced during the three months ended July 31, 2010, and worsening conditions in IRET's multi-family residential segment in particular.  During this quarter, factors adversely affecting demand for IRET’s commercial and multi-family properties continued to be pervasive across the United States and in IRET’s markets, with commercial tenants continuing to focus on reducing costs through space reductions and lower rents. Additionally, continued job losses pressured occupancy and revenue in the Company’s multi-family residential segment. We expect current credit market conditions and the continued high level of unemployment to maintain or increase credit stresses on Company tenants, and continue to expect this tenant stress to lead to increases in past due accounts and vacancies.
 
In the first quarter of fiscal year 2011, IRET paid its 157th consecutive quarterly distribution per common share/unit at equal or increasing rates.  The $0.1715 per share/unit distribution was paid July 1, 2010.  Company management and the Board continue to review the Company’s common share distribution level in conjunction with closely monitoring the Company’s operating results during this prolonged economic downturn.
 
As of July 31, 2010, IRET owns a diversified portfolio of 254 properties consisting of 78 multi-family residential properties, 67 commercial office properties, 56 commercial medical properties (including senior housing), 20 commercial industrial properties and 33 commercial retail properties.  IRET’s distributions have been maintained or increased every year for 39 consecutive years.  IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).
 



 

 

Company Snapshot
(as of July 31, 2010)
 
Company Headquarters                                                                        
Minot, North Dakota
 
Fiscal Year-End                                                                        
April 30
 
Reportable Segments                                                                        
Multi-Family Residential, Commercial Office, Commercial Medical, Commercial Industrial, Commercial Retail
 
Total Properties                                                                        
254    
Total Square Feet
     
(commercial properties)                                                                      
12.1 million
 
Total Units
     
(multi-family residential properties)                                                                      
9,691    
Common Shares Outstanding (thousands)                                                                        
78,158    
Limited Partnership Units Outstanding (thousands)
20,273    
Common Share Distribution - Quarter/Annualized
$0.1715/$0.686    
Dividend Yield                                                                        
8.1%    
Total Capitalization (see p. 13 for detail)                                                                        
$1.9 billion
 

Investor Information
Board of Trustees
 
Jeffrey L. Miller                                               
Trustee and Chairman
Stephen L. Stenehjem                                               
Trustee and Vice Chairman, Chair of Compensation Committee
John D. Stewart                                               
Trustee, Chair of Audit Committee
Patrick G. Jones                                               
Trustee
C.W. “Chip” Morgan                                               
Trustee
John T. Reed                                               
Trustee, Chair of Nominating and Governance Committee
Edward T. Schafer                                               
Trustee
W. David Scott                                               
Trustee
Thomas A. Wentz, Jr.                                               
Trustee, Senior Vice President and Chief Operating Officer
Timothy P. Mihalick                                               
Trustee, President and Chief Executive Officer

Management
 
Timothy P. Mihalick                                               
President and Chief Executive Officer; Trustee
Thomas A. Wentz, Jr                                               
Senior Vice President and Chief Operating Officer; Trustee
Diane K. Bryantt                                               
Senior Vice President and Chief Financial Officer
Charles A. Greenberg                                               
Senior Vice President, Commercial Asset Management
Michael A. Bosh                                               
Senior Vice President, General Counsel and Assistant Secretary
Thomas A. Wentz, Sr.                                               
Senior Vice President and Chief Investment Officer

Corporate Headquarters:
3015 16th Street SW, Suite 100
Minot, North Dakota 58701
 
Trading Symbol:  IRET
Stock Exchange Listing:  NASDAQ
 
Investor Relations:
Lindsey Knoop Anderson
landerson@iret.com
 



 

 

Common Share Data (NASDAQ: IRET)
 
   
1st Quarter
Fiscal Year 2011
   
4th Quarter
Fiscal Year 2010
   
3rd Quarter
Fiscal Year 2010
   
2nd Quarter
Fiscal Year 2010
   
1st Quarter
Fiscal Year 2010
 
High Closing Price
  $ 9.20     $ 9.37     $ 9.40     $ 9.75     $ 9.47  
Low Closing Price
  $ 8.25     $ 8.31     $ 8.25     $ 8.19     $ 8.30  
Average Closing Price
  $ 8.71     $ 8.89     $ 8.82     $ 9.06     $ 8.73  
Closing Price at end of quarter
  $ 8.47     $ 8.73     $ 8.73     $ 8.37     $ 9.31  
Common Share Distributions—annualized
  $ 0.686     $ 0.686     $ 0.686     $ 0.684     $ 0.682  
Closing Dividend Yield - annualized
    8.1 %     7.9 %     7.9 %     8.2 %     7.3 %
Closing common shares outstanding (thousands)
    78,158       75,805       73,966       73,502       63,788  
Closing limited partnership units outstanding (thousands)
    20,273       20,522       20,853       20,962       20,837  
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)
  $ 833,711     $ 840,935     $ 827,770     $ 790,664     $ 787,859  

 
Certain statements in these supplemental disclosures are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results.  Such risks, uncertainties and other factors include, but are not limited to:  fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2010 Form 10-K.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
 

 
First Quarter Fiscal 2011 Acquisitions
 
 
Billings 2300 Grant Rd
2300 Grant RD, Billings, MT 59102
Missoula 3050 Great Northern Ave
3050 Great Northern Ave, Missoula, MT 59808
billings 2300 grant rd photo
missoula 3050 great northern ave
   
   

 



 

 

Investment Cost by Segment – First Quarter Fiscal 2011
 
With investments in the multi-family residential and commercial office, commercial medical, commercial industrial and commercial retail segments, IRET’s diversified portfolio helps to provide stability during market fluctuations in returns from specific property types.
 
Investment Cost by Segment Pie Chart
 



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
 

 
   
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
ASSETS
                             
Real estate investments
                             
Property owned
  $ 1,813,427     $ 1,800,519     $ 1,793,995     $ 1,749,489     $ 1,737,466  
Less accumulated depreciation
    (320,994 )     (308,626 )     (298,523 )     (286,555 )     (274,497 )
      1,492,433       1,491,893       1,495,472       1,462,934       1,462,969  
Development in progress
    174       2,831       1,164       0       0  
Unimproved land
    6,020       6,007       5,987       5,966       5,713  
Mortgage loans receivable, net of allowance
    158       158       159       159       160  
Total real estate investments
    1,498,785       1,500,889       1,502,782       1,469,059       1,468,842  
Other assets
                                       
Cash and cash equivalents
    56,077       54,791       47,790       102,732       43,935  
Restricted cash
    0       0       36,500       0       0  
Marketable securities – available-for-sale
    420       420       420       420       420  
Receivable arising from straight-lining of rents, net of allowance
    17,751       17,320       17,102       16,588       16,201  
Accounts receivable, net of allowance
    5,911       4,916       5,259       4,830       4,148  
Real estate deposits
    302       516       978       635       460  
Prepaid and other assets
    3,032       1,189       1,903       2,750       2,900  
Intangible assets, net of accumulated amortization
    50,050       50,700       52,797       48,118       49,820  
Tax, insurance, and other escrow
    10,391       9,301       10,044       6,661       7,984  
Property and equipment, net of accumulated depreciation
    1,371       1,392       1,332       1,450       1,293  
Goodwill
    1,388       1,388       1,392       1,392       1,392  
Deferred charges and leasing costs, net of accumulated amortization
    18,449       18,108       17,637       17,273       16,958  
TOTAL ASSETS
  $ 1,663,927     $ 1,660,930     $ 1,695,936     $ 1,671,908     $ 1,614,353  
                                         
LIABILITIES AND EQUITY
                                       
LIABILITIES
                                       
Accounts payable and accrued expenses
  $ 33,340     $ 38,514     $ 36,453     $ 29,760     $ 32,508  
Revolving lines of credit
    6,528       6,550       6,579       6,594       13,000  
Mortgages payable
    1,063,414       1,057,619       1,091,945       1,060,131       1,055,705  
Other
    1,272       1,320       1,368       1,421       1,455  
TOTAL LIABILITIES
    1,104,554       1,104,003       1,136,345       1,097,906       1,102,668  
                                         
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES
    1,427       1,812       1,765       1,943       1,908  
EQUITY
                                       
Investors Real Estate Trust shareholders’ equity
                                       
Preferred Shares of Beneficial Interest
    27,317       27,317       27,317       27,317       27,317  
Common Shares of Beneficial Interest
    603,344       583,618       569,439       566,395       490,441  
Accumulated distributions in excess of net income
    (213,055 )     (201,412 )     (189,340 )     (176,580 )     (165,349 )
Total Investors Real Estate Trust shareholders’ equity
    417,606       409,523       407,416       417,132       352,409  
Noncontrolling interests – Operating Partnership
    130,050       134,970       139,448       143,260       145,120  
Noncontrolling interests – consolidated real estate entities
    10,290       10,622       10,962       11,667       12,248  
Total equity
    557,946       555,115       557,826       572,059       509,777  
TOTAL LIABILITIES AND EQUITY
  $ 1,663,927     $ 1,660,930     $ 1,695,936     $ 1,671,908     $ 1,614,353  

 



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 

 
   
Three Months Ended
 
OPERATING RESULTS
 
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
Real estate revenue
  $ 62,021     $ 62,228     $ 60,130     $ 59,596     $ 60,821  
Real estate expenses
    25,591       26,631       26,009       24,485       24,416  
Gain on involuntary conversion
    0       0       1,660       0       0  
Net operating income
    36,430       35,597       35,781       35,111       36,405  
Depreciation/amortization
    (15,136 )     (15,061 )     (15,078 )     (14,981 )     (14,643 )
Administrative expenses, advisory and trustee services
    (1,969 )     (1,443 )     (1,790 )     (1,498 )     (1,487 )
Other expenses
    (353 )     (1,045 )     (536 )     (498 )     (434 )
Impairment of real estate investment
    0       0       (818 )     (860 )     0  
Interest
    (16,762 )     (17,058 )     (17,447 )     (17,200 )     (17,401 )
Other income
    141       394       252       126       129  
Gain on sale of other investments
    0       68       0       0       0  
Income tax expense
    (19 )     0       0       0       0  
Net income
  $ 2,332     $ 1,452     $ 364     $ 200     $ 2,569  
                                         
Net (income) loss attributable to noncontrolling interest – Operating Partnership
    (370 )     (181 )     39       59       (479 )
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities
    24       (24 )     49       26       (73 )
Net income attributable to Investors Real Estate Trust
    1,986       1,247       452       285       2,017  
Dividends to preferred shareholders
    (593 )     (593 )     (593 )     (593 )     (593 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 1,393     $ 654     $ (141 )   $ (308 )   $ 1,424  
                                         
Per Share Data
                                       
Net income per common share – basic & diluted
  $ .02     $ .01     $ .00     $ .00     $ .02  
                                         
Percentage of Revenues
                                       
Real estate expenses
    41.3 %     42.8 %     43.3 %     41.1 %     40.1 %
Depreciation/amortization
    24.4 %     24.2 %     25.1 %     25.1 %     24.1 %
General and administrative
    3.2 %     2.3 %     3.0 %     2.5 %     2.4 %
Interest
    27.0 %     27.4 %     29.0 %     28.9 %     28.6 %
Net income
    3.8 %     2.3 %     0.6 %     0.3 %     4.2 %
                                         
Ratios
                                       
EBITDA(1)/Interest expense
    2.04 x     1.95 x     1.88 x     1.88 x     1.98 x
EBITDA/Interest expense plus preferred distributions
    1.97 x     1.88 x     1.82 x     1.82 x     1.92 x
 
(1)
See Definitions on page 25.  EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income (loss).
 



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
FUNDS FROM OPERATIONS (unaudited)
(in thousands, except per share and unit data)
 

 
   
Three Months Ended
 
   
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
Funds From Operations(1)
                             
Net income attributable to Investors Real Estate Trust
  $ 1,986     $ 1,247     $ 452     $ 285     $ 2,017  
Less dividends to preferred shareholders
    (593 )     (593 )     (593 )     (593 )     (593 )
Net income (loss) available to common shareholders
    1,393       654       (141 )     (308 )     1,424  
Adjustments:
                                       
Noncontrolling interests – Operating Partnership
    370       181       (39 )     (59 )     479  
Depreciation and amortization
    15,060       14,993       14,865       14,926       14,599  
Gain on depreciable property sales
    0       (68 )     0       0       0  
Funds from operations applicable to common shares and Units
  $ 16,823     $ 15,760     $ 14,685     $ 14,559     $ 16,502  
                                         
FFO per share and unit - basic and diluted
  $ 0.17     $ 0.17     $ 0.16     $ 0.16     $ 0.20  
Weighted average shares and units
    96,777       94,979     $ 94,516     $ 87,162     $ 83,223  
 
(1)
See Definitions on page 25.
 

 
8

 

 


 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) (unaudited)
(in thousands)
 
 

 
   
Three Months Ended
 
   
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
EBITDA(1)
                             
Net income attributable to Investors Real Estate Trust
  $ 1,986     $ 1,247     $ 452     $ 285     $ 2,017  
Adjustments:
                                       
Noncontrolling interests – Operating Partnership
    370       181       (39 )     (59 )     479  
Income before noncontrolling interests – Operating Partnership
    2,356       1,428       413       226       2,496  
Add:
                                       
Interest
    16,762       17,058       17,447       17,200       17,401  
Depreciation/amortization related to real estate investments
    14,482       14,407       14,486       14,432       14,068  
Amortization related to non-real estate investments
    654       654       592       549       575  
Amortization related to real estate revenues(2)
    25       26       28       30       34  
Less:
                                       
Interest income
    (58 )     (278 )     (140 )     (62 )     (66 )
Gain on sale of real estate, land and other investments
    0       (68 )     0       0       0  
EBITDA
  $ 34,221     $ 33,227     $ 32,826     $ 32,375     $ 34,508  
 
(1)  
See Definitions on page 25.
(2)  
Included in real estate revenue in the Statement of Operations.
 
 

 



 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT ANALYSIS
(in thousands)
 
Debt Maturity Schedule
Annual Expirations
 
 
Total Mortgage Debt
 
Total Mortgage Debt Bar Chart
 

 

   
Future Maturities of Debt
 
Fiscal Year
 
Fixed Debt
   
Variable Debt
   
Total Debt
   
Weighted
Average(1)
   
% of
Total Debt
 
2011
  $ 72,822     $ 3,403     $ 76,225       7.50 %     7.2 %
2012
    93,841       0       93,841       7.01 %     8.8 %
2013
    22,601       0       22,601       5.75 %     2.1 %
2014
    46,135       908       47,043       6.16 %     4.4 %
2015
    80,052       0       80,052       5.73 %     7.5 %
2016
    78,589       193       78,782       5.92 %     7.4 %
2017
    191,071       23,296       214,367       6.09 %     20.2 %
2018
    88,094       0       88,094       5.80 %     8.3 %
2019
    65,586       632       66,218       6.44 %     6.2 %
2020
    121,133       0       121,133       5.85 %     11.4 %
Thereafter
    175,058       0       175,058       5.87 %     16.5 %
Total maturities
  $ 1,034,982     $ 28,432     $ 1,063,414       6.13 %     100.0 %
(1)  
Weighted average interest rate of debt that matures in fiscal year.
 
   
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
Balances Outstanding
                             
Mortgage
                             
Fixed rate
  $ 1,034,982     $ 1,028,606     $ 1,086,264     $ 1,054,363     $ 1,046,530  
Variable rate
    28,432       29,013       5,681       5,768       9,175  
Mortgage total
    1,063,414       1,057,619       1,091,945       1,060,131       1,055,705  
                                         
Weighted Average Interest Rates
                                       
Secured
    6.13 %     6.17 %     6.21 %     6.27 %     6.31 %



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT DETAIL AS OF JULY 31, 2010

Property
Maturity Date
 
Fiscal 2011
   
Fiscal 2012
   
Fiscal 2013
   
Fiscal 2014
   
Thereafter
   
Total(1)
 
Multi-Family Residential
                                     
 The Meadows I - Jamestown, ND(6)
8/1/2010
  $ 887       0     $ 0     $ 0     $ 0     $ 887  
 The Meadows II - Jamestown, ND(6)
8/1/2010
    887       0       0       0       0       887  
 17 South Main Apartments - Minot, ND(2)
11/1/2010
    194       0       0       0       0       194  
 401 South Main Apartments - Minot, ND(2)
11/1/2010
    681       0       0       0       0       681  
 Minot 4th Street Apartments - Minot, ND(2)
11/1/2010
    97       0       0       0       0       97  
 Minot 11th Street Apartments - Minot, ND(2)
11/1/2010
    97       0       0       0       0       97  
 Minot Fairmont Apartments - Minot, ND (2)
11/1/2010
    389       0       0       0       0       389  
 Minot Westridge Apartments - Minot, ND(2)
11/1/2010
    1,944       0       0       0       0       1,944  
 Olympic Village - Billings, MT(4)
11/1/2010
    7,496       0       0       0       0       7,496  
 Southview Apartments - Minot, ND(6)
11/1/2010
    707       0       0       0       0       707  
 Ridge Oaks Apartments - Sioux City, IA
2/1/2011
    2,560       0       0       0       0       2,560  
 Sunset Trail I - Rochester, MN
3/1/2011
    3,852       0       0       0       0       3,852  
 Sunset Trail II - Rochester, MN
3/1/2011
    3,730       0       0       0       0       3,730  
 Oakwood - Sioux Falls, SD
6/1/2011
    0       3,391       0       0       0       3,391  
 Oxbow - Sioux Falls, SD
6/1/2011
    0       3,695       0       0       0       3,695  
 Chateau Apartments - Minot, ND
7/1/2011
    0       1,758       0       0       0       1,758  
 Oakmont Apartments - Sioux Falls, SD
9/1/2011
    0       3,656       0       0       0       3,656  
 Canyon Lake Apartments - Rapid City, SD
10/1/2011
    0       2,635       0       0       0       2,635  
 The Meadows III - Jamestown, ND
11/1/2011
    0       965       0       0       0       965  
 Crown Apartments - Rochester, MN
1/1/2012
    0       2,555       0       0       0       2,555  
 Monticello Apartments - Monticello, MN
3/1/2013
    0       0       3,070       0       0       3,070  
 Quarry Ridge Apartments - Rochester, MN
10/1/2013
    0       0       0       12,323       0       12,323  
 East Park Apartments - Sioux Falls, SD
12/1/2013
    0       0       0       1,554       0       1,554  
 Sycamore Village Apartments - Sioux Falls, SD
12/1/2013
    0       0       0       874       0       874  
 Landmark Estates Apartments - Grand Forks, ND(7)
12/19/2013
    0       0       0       1,572       0       1,572  
 Candlelight Apartments - Fargo, ND
3/1/2014
    0       0       0       1,345       0       1,345  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       266,916       266,916  
Sub-Total Multi-Family Residential
    $ 23,521     $ 18,655     $ 3,070     $ 17,668     $ 266,916     $ 329,830  
                                                   
Commercial Office
                                                 
 Brenwood - Minnetonka, MN(3)
10/1/2010
  $ 7,349     $ 0     $ 0     $ 0     $ 0     $ 7,349  
 Nicollet VII - Burnsville, MN(3)
12/1/2010
    3,936       0       0       0       0       3,936  
 Dewey Hill Business Center - Edina, MN(3)
1/1/2011
    2,562       0       0       0       0       2,562  
 Plymouth IV - Plymouth, MN(3)
1/1/2011
    3,144       0       0       0       0       3,144  
 Plymouth V - Plymouth, MN(3)
1/1/2011
    4,525       0       0       0       0       4,525  
 Whitewater Plaza - Minnetonka, MN
3/1/2011
    2,635       0       0       0       0       2,635  
 Whitewater Plaza - Minnetonka, MN
3/1/2011
    1,366       0       0       0       0       1,366  
 2030 Cliff Road - Eagan, MN
4/1/2011
    462       0       0       0       0       462  
 Cold Spring Center - St. Cloud, MN(8)
4/1/2011
    3,987       0       0       0       0       3,987  
 Pillsbury Business Center - Edina, MN
4/1/2011
    895       0       0       0       0       895  
 Golden Hills Office Center - Golden Valley, MN
7/1/2011
    0       14,296       0       0       0       14,296  
 Wells Fargo Center - St Cloud, MN
7/1/2011
    0       6,553       0       0       0       6,553  
 Interlachen Corporate Center - Eagan, MN
10/11/2011
    0       9,513       0       0       0       9,513  
 Bloomington Business Plaza - Bloomington, MN
12/1/2011
    0       4,137       0       0       0       4,137  
 Wirth Corporate Center - Golden Valley, MN
2/1/2012
    0       3,964       0       0       0       3,964  
 Great Plains - Fargo, ND
10/1/2013
    0       0       0       3,982       0       3,982  
 Viromed - Eden Prairie, MN
4/1/2014
    0       0       0       1,106       0       1,106  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       281,388       281,388  
Sub-Total Commercial Office
    $ 30,861     $ 38,463     $ 0     $ 5,088     $ 281,388     $ 355,800  

 




INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT DETAIL AS OF JULY 31, 2010 (continued)

Property
Maturity Date
 
Fiscal 2011
   
Fiscal 2012
   
Fiscal 2013
   
Fiscal 2014
   
Thereafter
   
Total(1)
 
Commercial Medical
                                     
 Edina 6545 France SMC I - Edina, MN(3)
1/1/2011
  $ 21,533     $ 0     $ 0     $ 0     $ 0     $ 21,533  
 Edina 6525 France SMC II - Edina, MN(3)
6/1/2011
    0       9,699       0       0       0       9,699  
 Edina 6405 France Medical - Edina, MN(5)
1/1/2012
    0       9,066       0       0       0       9,066  
 Edina 6363 France Medical - Edina, MN(6)
4/1/2012
    0       7,919       0       0       0       7,919  
 Fox River Cottages - Grand Chute, WI
5/1/2012
    0       0       2,255       0       0       2,255  
 High Pointe Health Campus - Lake Elmo, MN
12/1/2013
    0       0       0       2,779       0       2,779  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       205,445       205,445  
Sub-Total Commercial Medical
    $ 21,533     $ 26,684     $ 2,255     $ 2,779     $ 205,445     $ 258,696  
                                                   
Commercial Industrial
                                                 
 Eagan 2785 & 2795 Highway 55 - Eagan, MN
6/1/2011
  $ 0     $ 3,683     $ 0     $ 0     $ 0     $ 3,683  
 Stone Container - Roseville, MN
2/1/2012
    0       3,911       0       0       0       3,911  
 Minnetonka 13600 County Road 62 - Minnetonka, MN
2/27/2012
    0       2,445       0       0       0       2,445  
 Dixon Avenue Industrial Park - Des Moines, IA
1/1/2013
    0       0       7,486       0       0       7,486  
 Bloomington 2000 West 94th Street - Bloomington, MN
3/1/2013
    0       0       3,963       0       0       3,963  
 Roseville 2929 Long Lake Road - Roseville, MN
3/1/2013
    0       0       5,827       0       0       5,827  
 Bodycote Industrial Building - Eden Prairie, MN
9/1/2013
    0       0       0       1,235       0       1,235  
 Cedar Lake Business Center - St. Louis Park, MN
11/1/2013
    0       0       0       2,427       0       2,427  
 Woodbury 1865 Woodlane - Woodbury, MN
11/1/2013
    0       0       0       2,855       0       2,855  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       30,184       30,184  
Sub-Total Commercial Industrial
    $ 0     $ 10,039     $ 17,276     $ 6,517     $ 30,184     $ 64,016  
                                                   
Commercial Retail
                                                 
 Kentwood Thomasville Furniture - Kentwood, MI
2/1/2011
  $ 310     $ 0     $ 0     $ 0     $ 0     $ 310  
 Burnsville I Strip Center - Burnsville, MN
6/30/2013
    0       0       0       506       0       506  
 Burnsville II Strip Center - Burnsville, MN
6/30/2013
    0       0       0       403       0       403  
 St Cloud Westgate - St Cloud, MN
10/10/2013
    0       0       0       3,497       0       3,497  
 Ladysmith Pamida - Ladysmith, WI(9)
12/19/2013
    0       0       0       1,035       0       1,035  
 Livingston Pamida - Livingston, MT
12/19/2013
    0       0       0       1,230       0       1,230  
 Eagan I Retail Center - Eagan, MN
12/22/2013
    0       0       0       1,439       0       1,439  
 Forest Lake Westlake Center - Forest Lake, MN
12/22/2013
    0       0       0       4,602       0       4,602  
 Pine City C-Store  - Pine City, MN
4/20/2014
    0       0       0       319       0       319  
 Pine City Evergreen Square - Pine City, MN
4/20/2014
    0       0       0       1,960       0       1,960  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       39,771       39,771  
Sub-Total Commercial Retail
    $ 310     $ 0     $ 0     $ 14,991     $ 39,771     $ 55,072  
                                                   
Total
    $ 76,225     $ 93,841     $ 22,601     $ 47,043     $ 823,704     $ 1,063,414  
 
(1)
Totals are principal balances as of July 31, 2010.
(2)
These properties currently secure the mortgage portion of the Company’s Dacotah Bank line of credit, which the Company plans to pay off in its entirety on September 14, 2010.
(3)
Currently in discussion with lenders for refinance.
(4)
Application signed on July 1, 2010 to refinance on November 1, 2010.
(5)
Refinanced on August 2, 2010; new loan has a maturity date of September 1, 2015.
(6)
Mortgage loan paid in full on August 2, 2010. Property is now part of collateral securing the Company’s multi-property line of credit with First International Bank & Trust.
(7)
Refinanced on August 24, 2010.
(8)
Application signed on August 31, 2010 to refinance on January 1, 2011.
(9)
Mortgage loan paid in full on September 1, 2010.




 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CAPITAL ANALYSIS
(in thousands, except per share and unit amounts)
 

 
   
Three Months Ended
 
   
07/31/2010
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
 
Equity Capitalization
                             
Common shares outstanding
    78,158       75,805       73,966       73,502       63,788  
Operating partnership (OP) units outstanding
    20,273       20,522       20,853       20,962       20,837  
Total common shares and OP units outstanding
    98,431       96,327       94,819       94,464       84,625  
Market price per common share (closing price at end of period)
  $ 8.47     $ 8.73     $ 8.73     $ 8.37     $ 9.31  
Equity capitalization-common shares and OP units
  $ 833,711     $ 840,935     $ 827,770     $ 790,664     $ 787,859  
Recorded book value of preferred shares
  $ 27,317     $ 27,317     $ 27,317     $ 27,317     $ 27,317  
Total equity capitalization
  $ 861,028     $ 868,252     $ 855,087     $ 817,981     $ 815,176  
                                         
Debt Capitalization
                                       
Total mortgage debt
  $ 1,063,414     $ 1,057,619     $ 1,091,945     $ 1,060,131     $ 1,055,705  
Total capitalization
  $ 1,924,442     $ 1,925,871     $ 1,947,032     $ 1,878,112     $ 1,870,881  
                                         
Total debt to total capitalization
 
0.55:1
   
0.55:1
   
0.56:1
   
0.56:1
   
0.56:1
 
                                         

   
Three Months Ended
 
   
07/31/2010
   
04/30/2010