CENTERSPACE - FORM 8-K - EX-99.2 - SUPPLEMENTAL OPERATIONS AND FINANCIAL DATA

Attached files

file	filename
8-K - IRET FORM 8-K - CENTERSPACE	iretform8k-12102010.htm
EX-99.1 - EARNINGS RELEASE - CENTERSPACE	iretexhibit991-12102010.htm

Exhibit 99.2

Second Quarter Fiscal 2011

Supplemental Operating and Financial Data

for the Quarter Ended October 31, 2010


CONTACT: Michelle Saari VP - Marketing & Communications Direct Dial: 701-837-4738 E-Mail: msaari@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

Table of Contents

October 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	15-18
Stabilized Properties and Overall Physical Occupancy Levels by Segment	19

Tenant Analysis
Commercial Leasing Summary	20-21
Multi-Family Residential Summary	22
10 Largest Commercial Tenants - Based on Annualized Base Rent	23
Lease Expirations as of October 31, 2010	24

Growth and Strategy
Fiscal 2011 Acquisition Summary	25
Fiscal 2011 Development Summary	26

Definitions	27

Table of Contents

Company Background and Highlights

Second 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 second quarter of fiscal year 2011, IRET had no acquisitions or development projects placed in service. The Company sold a small retail property in Ladysmith, Wisconsin on September 2, 2010; a patio home property in Fargo, North Dakota on September 30, 2010; and the Company’s 504-unit Dakota Hill at Valley Ranch Apartments in Irving, Texas, on October 26, 2010, for sales prices totaling $36.8 million.

IRET has substantially completed its announced goal of transferring the management of the majority of our commercial and multi-family residential properties from third-party property management companies to our own employees. As of October 31, 2010, the Company has under internal management a total of 153 properties in our commercial office, commercial medical, commercial industrial and commercial retail segments, totaling approximately 9.3 million square feet. Approximately 82.1% of the properties in our commercial office segment, 89.1% of the properties in our commercial medical segment, 90.0% of the properties in our commercial industrial segment, and 96.9% of the properties in our commercial retail segment, were internally managed by Company employees as of October 31, 2010. IRET continues to evaluate existing and acquired 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 is also substantially complete. As of October 31, 2010, approximately 88.3% of the properties in the Company’s multi-family residential segment were internally managed by Company employees, or approximately 7,744 units in 68 properties. The Company has added a significant number of new employees, many of whom were hired to work in multi-family residential property management, and as of October 31, 2010, the Company had 375 employees, of which 292 were full-time and 83 part-time employees; of these 375 employees, 55 are corporate staff in our Minot, North Dakota and Eden Prairie, Minnesota offices, and 320 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, represented a significant expense to the Company, which was 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.

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. During the second quarter of fiscal year 2011, IRET sold no common shares under this program.

IRET’s second quarter fiscal year 2011 results reflect the continued slow recovery from the national economic recession. Factors adversely affecting demand for IRET’s commercial office properties in particular continued to be pervasive, with commercial tenants continuing to focus on reducing costs through space reductions and lower rents. Physical occupancy decreased in all of our reportable segments except for commercial medical during the three months ended October 31, 2010, on a stabilized and all-property basis, and our overall level of tenant concessions increased, compared to the year-earlier period.

We believe our decreased occupancy levels reflect the economic conditions in our markets, as recovery from the national economic recession has been slow. The recession, and illiquidity and uncertainty in the financial and capital markets during calendar years 2008, 2009 and continuing into 2010, negatively affected substantially all businesses, including ours. Although signs of an economic recovery have emerged during the first two quarters of our current fiscal year, we continue to expect recovery from the recession to be slow during the balance of the current fiscal year. It is not possible for us to predict or quantify the timing and impact of such a recovery, or lack thereof, during the remainder of fiscal year 2011.

In the second quarter of fiscal year 2011, IRET paid its 158th consecutive quarterly distribution per common share/unit at equal or increasing rates. The $0.1715 per share/unit distribution was paid October 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 October 31, 2010, IRET owns a diversified portfolio of 251 properties consisting of 77 multi-family residential properties, 67 commercial office properties, 55 commercial medical properties (including senior housing), 20 commercial industrial properties and 32 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).

Table of Contents

Company Snapshot

(as of October 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	251
Total Square Feet
(commercial properties)	12.0 million
Total Units
(multi-family residential properties)	9,187
Common Shares Outstanding (thousands)	79,092
Limited Partnership Units Outstanding (thousands)	19,994
Common Share Distribution - Quarter/Annualized	$0.1715/$0.686
Dividend Yield	7.8%
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:

Michelle Saari

msaari@iret.com

Table of Contents

Common Share Data (NASDAQ: IRET)

	2nd Quarter Fiscal Year 2011			1st Quarter Fiscal Year 2011			4th Quarter Fiscal Year 2010			3rd Quarter Fiscal Year 2010			2nd Quarter Fiscal Year 2010
High Closing Price	$	8.90		$	9.20		$	9.37		$	9.40		$	9.75
Low Closing Price	$	7.97		$	8.25		$	8.31		$	8.25		$	8.19
Average Closing Price	$	8.43		$	8.71		$	8.89		$	8.82		$	9.06
Closing Price at end of quarter	$	8.80		$	8.47		$	8.73		$	8.73		$	8.37
Common Share Distributions—annualized	$	0.686		$	0.686		$	0.686		$	0.686		$	0.684
Closing Dividend Yield - annualized		7.8	%		8.1	%		7.9	%		7.9	%		8.2	%
Closing common shares outstanding (thousands)		79,092			78,158			75,805			73,966			73,502
Closing limited partnership units outstanding (thousands)		19,994			20,273			20,522			20,853			20,962
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	871,957		$	833,711		$	840,935		$	827,770		$	790,664

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.

Table of Contents

Investment Cost by Segment – Second 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.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
ASSETS
Real estate investments
Property owned	$	1,773,924		$	1,813,427		$	1,800,519		$	1,793,995		$	1,749,489
Less accumulated depreciation		(322,379	)		(320,994	)		(308,626	)		(298,523	)		(286,555	)
		1,451,545			1,492,433			1,491,893			1,495,472			1,462,934
Development in progress		2,755			174			2,831			1,164			0
Unimproved land		7,876			6,020			6,007			5,987			5,966
Mortgage loans receivable, net of allowance		157			158			158			159			159
Total real estate investments		1,462,333			1,498,785			1,500,889			1,502,782			1,469,059
Other assets
Cash and cash equivalents		43,701			56,077			54,791			47,790			102,732
Restricted cash		0			0			0			36,500			0
Marketable securities – available-for-sale		420			420			420			420			420
Receivable arising from straight-lining of rents, net of allowance		18,125			17,751			17,320			17,102			16,588
Accounts receivable, net of allowance		5,179			5,911			4,916			5,259			4,830
Real estate deposits		2,089			302			516			978			635
Prepaid and other assets		3,375			3,032			1,189			1,903			2,750
Intangible assets, net of accumulated amortization		48,140			50,050			50,700			52,797			48,118
Tax, insurance, and other escrow		10,504			10,391			9,301			10,044			6,661
Property and equipment, net of accumulated depreciation		1,370			1,371			1,392			1,332			1,450
Goodwill		1,260			1,388			1,388			1,392			1,392
Deferred charges and leasing costs, net of accumulated amortization		18,606			18,449			18,108			17,637			17,273
TOTAL ASSETS	$	1,615,102		$	1,663,927		$	1,660,930		$	1,695,936		$	1,671,908

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	26,616		$	33,340		$	38,514		$	36,453		$	29,760
Revolving lines of credit		29,100			6,528			6,550			6,579			6,594
Mortgages payable		1,004,532			1,063,414			1,057,619			1,091,945			1,060,131
Other		1,227			1,272			1,320			1,368			1,421
TOTAL LIABILITIES		1,061,475			1,104,554			1,104,003			1,136,345			1,097,906

REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,357			1,427			1,812			1,765			1,943
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		610,580			603,344			583,618			569,439			566,395
Accumulated distributions in excess of net income		(221,304	)		(213,055	)		(201,412	)		(189,340	)		(176,580	)
Total Investors Real Estate Trust shareholders’ equity		416,593			417,606			409,523			407,416			417,132
Noncontrolling interests – Operating Partnership		126,113			130,050			134,970			139,448			143,260
Noncontrolling interests – consolidated real estate entities		9,564			10,290			10,622			10,962			11,667
Total equity		552,270			557,946			555,115			557,826			572,059
TOTAL LIABILITIES AND EQUITY	$	1,615,102		$	1,663,927		$	1,660,930		$	1,695,936		$	1,671,908

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Six Months Ended						Three Months Ended
OPERATING RESULTS	10/31/2010			10/31/2009			10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
Real estate revenue	$	121,254		$	117,661		$	60,537		$	60,717		$	60,916		$	58,815		$	58,220
Real estate expenses		49,881			47,463			24,950			24,931			25,929			25,246			23,768
Gain on involuntary conversion		0			0			0			0			0			1,660			0
Net operating income		71,373			70,198			35,587			35,786			34,987			35,229			34,452
Depreciation/amortization		(29,627	)		(29,101	)		(14,742	)		(14,885	)		(14,814	)		(14,816	)		(14,718	)
Administrative expenses, advisory and trustee services		(3,687	)		(2,985	)		(1,718	)		(1,969	)		(1,443	)		(1,790	)		(1,498	)
Other expenses		(916	)		(932	)		(563	)		(353	)		(1,045	)		(536	)		(498	)
Impairment of real estate investment		0			(708	)		0			0			0			0			(708	)
Interest		(33,395	)		(33,666	)		(16,880	)		(16,515	)		(16,806	)		(16,982	)		(16,734	)
Interest and other income		304			253			167			137			391			250			125
Income tax benefit (expense)		0			0			19			(19	)		0			0			0
Income from continuing operations		4,052			3,059			1,870			2,182			1,270			1,355			421
Income (loss) from discontinued operations		5,401			(290	)		5,251			150			182			(991	)		(221	)
Net income	$	9,453		$	2,769		$	7,121		$	2,332		$	1,452		$	364		$	200

Net (income) loss attributable to noncontrolling interest – Operating Partnership		(1,692	)		(420	)		(1,322	)		(370	)		(181	)		39			59
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		44			(47	)		20			24			(24	)		49			26
Net income attributable to Investors Real Estate Trust		7,805			2,302			5,819			1,986			1,247			452			285
Dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	6,619		$	1,116		$	5,226		$	1,393		$	654		$	(141	)	$	(308	)

Per Share Data
Earnings per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.03		$	.02		$	.01		$	.02		$	.01		$	.01		$	.00
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.06			.00			.06			.00			.00			(.01	)		.00
Net income per common share – basic & diluted	$	.09		$	.02		$	.07		$	.02		$	.01		$	.00		$	.00

Percentage of Revenues
Real estate expenses		41.1	%		40.3	%		41.2	%		41.1	%		42.6	%		42.9	%		40.8	%
Depreciation/amortization		24.4	%		24.7	%		24.4	%		24.5	%		24.3	%		25.2	%		25.3	%
General and administrative		3.0	%		2.5	%		2.8	%		3.2	%		2.4	%		3.0	%		2.6	%
Interest		27.5	%		28.6	%		27.9	%		27.2	%		27.6	%		28.9	%		28.7	%
Net income		7.8	%		2.4	%		11.8	%		3.8	%		2.4	%		0.6	%		0.3	%

Ratios
EBITDA(1)/Interest expense		2.00	x		1.93	x		1.96	x		2.04	x		1.95	x		1.88	x		1.88	x
EBITDA/Interest expense plus preferred distributions		1.93	x		1.87	x		1.89	x		1.97	x		1.88	x		1.82	x		1.82	x

(1)	See Definitions on page 27. EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income (loss).

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Six Months Ended						Three Months Ended
	10/31/2010			10/31/2009			10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	7,805		$	2,302		$	5,819		$	1,986		$	1,247		$	452		$	285
Less dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		6,619			1,116			5,226			1,393			654			(141	)		(308	)
Adjustments:
Noncontrolling interests – Operating Partnership		1,692			420			1,322			370			181			(39	)		(59	)
Depreciation and amortization		29,948			29,525			14,888			15,060			14,993			14,865			14,926
Gain on depreciable property sales		(5,404	)		0			(5,404	)		0			(68	)		0			0
Funds from operations applicable to common shares and Units	$	32,855		$	31,061		$	16,032		$	16,823		$	15,760		$	14,685		$	14,559

FFO per share and unit - basic and diluted	$	0.34		$	0.36		$	0.17		$	0.17		$	0.17		$	0.16		$	0.16
Weighted average shares and units		97,775			85,184			98,737			96,777			94,979		$	94,516		$	87,162

(1)	See Definitions on page 27.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) (unaudited)

(in thousands)

	Six Months Ended						Three Months Ended
	10/31/2010			10/31/2009			10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	7,805		$	2,302		$	5,819		$	1,986		$	1,247		$	452		$	285
Adjustments:
Noncontrolling interests – Operating Partnership		1,692			420			1,322			370			181			(39	)		(59	)
Income before noncontrolling interests – Operating Partnership		9,497			2,722			7,141			2,356			1,428			413			226
Add:
Interest		34,108			34,601			17,346			16,762			17,058			17,447			17,200
Depreciation/amortization related to real estate investments		28,802			28,500			14,320			14,482			14,407			14,486			14,432
Amortization related to non-real estate investments		1,293			1,124			639			654			654			592			549
Amortization related to real estate revenues(2)		53			64			28			25			26			28			30
Less:
Interest income		(124	)		(128	)		(66	)		(58	)		(278	)		(140	)		(62	)
Gain on sale of real estate, land and other investments		(5,404	)		0			(5,404	)		0			(68	)		0			0
EBITDA	$	68,225		$	66,883		$	34,004		$	34,221		$	33,227		$	32,826		$	32,375

(1)	See Definitions on page 27.

(2)	Included in real estate revenue in the Statement of Operations.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt

	Future Maturities of Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2011	$	48,526	$	0	$	48,526		8.64	%		4.9	%
2012		83,645		0		83,645		6.75	%		8.3	%
2013		22,454		0		22,454		5.75	%		2.2	%
2014		42,758		882		43,640		6.14	%		4.4	%
2015		79,398		0		79,398		5.73	%		7.9	%
2016		89,190		165		89,355		5.91	%		8.9	%
2017		189,925		0		189,925		6.37	%		18.9	%
2018		87,704		0		87,704		5.80	%		8.7	%
2019		64,963		618		65,581		6.43	%		6.5	%
2020		120,579		0		120,579		5.85	%		12.0	%
Thereafter		173,725		0		173,725		5.87	%		17.3	%
Total maturities	$	1,002,867	$	1,665	$	1,004,532		6.14	%		100.0	%

(1)	Weighted average interest rate of debt that matures in fiscal year.

	10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
Balances Outstanding
Mortgage
Fixed rate	$	1,002,867		$	1,034,982		$	1,028,606		$	1,086,264		$	1,054,363
Variable rate		1,665			28,432			29,013			5,681			5,768
Mortgage total		1,004,532			1,063,414			1,057,619			1,091,945			1,060,131

Weighted Average Interest Rates
Secured		6.14	%		6.13	%		6.17	%		6.21	%		6.27	%

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF OCTOBER 31, 2010

Property	Maturity Date	Fiscal 2011		Fiscal 2012		Fiscal 2013		Fiscal 2014		Thereafter		Total(1)
Multi-Family Residential
Olympic Village - Billings, MT3	11/1/2010	$	7,464	$	0	$	0	$	0	$	0	$	7,464
Ridge Oaks Apartments - Sioux City, IA8	2/1/2011		2,547		0		0		0		0		2,547
Sunset Trail I - Rochester, MN7	3/1/2011		3,833		0		0		0		0		3,833
Sunset Trail II - Rochester, MN7	3/1/2011		3,710		0		0		0		0		3,710
Oakwood - Sioux Falls, SD	6/1/2011		0		3,372		0		0		0		3,372
Oxbow - Sioux Falls, SD	6/1/2011		0		3,675		0		0		0		3,675
Chateau Apartments - Minot, ND	7/1/2011		0		1,749		0		0		0		1,749
Oakmont Apartments - Sioux Falls, SD	9/1/2011		0		3,640		0		0		0		3,640
Canyon Lake Apartments - Rapid City, SD	10/1/2011		0		2,621		0		0		0		2,621
The Meadows III - Jamestown, ND	11/1/2011		0		958		0		0		0		958
Crown Apartments - Rochester, MN	1/1/2012		0		2,544		0		0		0		2,544
Monticello Apartments - Monticello, MN	3/1/2013		0		0		3,055		0		0		3,055
Quarry Ridge Apartments - Rochester, MN	10/1/2013		0		0		0		12,263		0		12,263
East Park Apartments - Sioux Falls, SD	12/1/2013		0		0		0		1,546		0		1,546
Sycamore Village Apartments - Sioux Falls, SD	12/1/2013		0		0		0		870		0		870
Candlelight Apartments - Fargo, ND	3/1/2014		0		0		0		1,335		0		1,335
Summary of Debt due after Fiscal 2014			0		0		0		0		244,338		244,338
Sub-Total Multi-Family Residential		$	17,554	$	18,559	$	3,055	$	16,014	$	244,338	$	299,520

Commercial Office
Whitewater Plaza - Minnetonka, MN2	3/1/2011	$	2,628	$	0	$	0	$	0	$	0	$	2,628
Whitewater Plaza - Minnetonka, MN2	3/1/2011		1,362		0		0		0		0		1,362
2030 Cliff Road - Eagan, MN	4/1/2011		454		0		0		0		0		454
Cold Spring Center - St. Cloud, MN4	4/1/2011		3,940		0		0		0		0		3,940
Pillsbury Business Center - Edina, MN	4/1/2011		881		0		0		0		0		881
Golden Hills Office Center - Golden Valley, MN2	7/1/2011		0		14,245		0		0		0		14,245
Wells Fargo Center - St Cloud, MN	7/1/2011		0		6,482		0		0		0		6,482
Brenwood - Minnetonka, MN	10/1/2011		0		7,287		0		0		0		7,287
Interlachen Corporate Center - Eagan, MN9	10/11/2011		0		9,434		0		0		0		9,434
Bloomington Business Plaza - Bloomington, MN	12/1/2011		0		4,103		0		0		0		4,103
Wirth Corporate Center - Golden Valley, MN	2/1/2012		0		3,903		0		0		0		3,903
Great Plains - Fargo, ND	10/1/2013		0		0		0		3,706		0		3,706
Viromed - Eden Prairie, MN	4/1/2014		0		0		0		1,041		0		1,041
Summary of Debt due after Fiscal 2014			0		0		0		0		280,317		280,317
Sub-Total Commercial Office		$	9,265	$	45,454	$	0	$	4,747	$	280,317	$	339,783

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF OCTOBER 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, MN5	1/1/2011	$	21,443	$	0	$	0	$	0	$	0	$	21,443
Edina 6525 France SMC II - Edina, MN6	6/1/2011		0		9,678		0		0		0		9,678
Georgetown Square - Grand Chute, WI	5/1/2012		0		0		2,244		0		0		2,244
High Pointe Health Campus - Lake Elmo, MN	12/1/2013		0		0		0		2,604		0		2,604
Summary of Debt due after Fiscal 2014			0		0		0		0		212,342		212,342
Sub-Total Commercial Medical		$	21,443	$	9,678	$	2,244	$	2,604	$	212,342	$	248,311

Commercial Industrial
Eagan 2785 & 2795 Highway 55 - Eagan, MN	6/1/2011	$	0	$	3,664	$	0	$	0	$	0	$	3,664
Stone Container - Roseville, MN	2/1/2012		0		3,856		0		0		0		3,856
Minnetonka 13600 County Road 62 - Minnetonka, MN	2/27/2012		0		2,434		0		0		0		2,434
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013		0		0		7,424		0		0		7,424
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		0		0		3,939		0		0		3,939
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		0		0		5,792		0		0		5,792
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		0		0		1,219		0		1,219
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		0		0		2,414		0		2,414
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		0		0		2,841		0		2,841
Summary of Debt due after Fiscal 2014			0		0		0		0		29,926		29,926
Sub-Total Commercial Industrial		$	0	$	9,954	$	17,155	$	6,474	$	29,926	$	63,509

Commercial Retail
Kentwood Thomasville Furniture - Kentwood, MI	2/1/2011	$	264	$	0	$	0	$	0	$	0	$	264
Burnsville I Strip Center - Burnsville, MN	6/30/2013		0		0		0		491		0		491
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		0		0		391		0		391
St Cloud Westgate - St Cloud, MN	10/10/2013		0		0		0		3,456		0		3,456
Livingston Pamida - Livingston, MT	12/19/2013		0		0		0		1,219		0		1,219
Eagan I Retail Center - Eagan, MN	12/22/2013		0		0		0		1,426		0		1,426
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		0		0		4,560		0		4,560
Pine City C-Store - Pine City, MN	4/20/2014		0		0		0		316		0		316
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		0		1,942		0		1,942
Summary of Debt due after Fiscal 2014			0		0		0		0		39,344		39,344
Sub-Total Commercial Retail		$	264	$	0	$	0	$	13,801	$	39,344	$	53,409

Total		$	48,526	$	83,645	$	22,454	$	43,640	$	806,267	$	1,004,532

(1)	Totals are principal balances as of October 31, 2010.

(2)	Currently in discussion with lenders for refinance.

(3)	Loan was refinanced and closed on November 1, 2010.

(4)	Application signed on August 31, 2010 to refinance in January 2011.

(5)	Application signed on September 10, 2010 to refinance in December 2010.

(6)	Application signed on September 10, 2010 to refinance on March 1, 2011.

(7)	Application signed on October 18, 2010 to refinance in December 2010.

(8)	Application signed on November 18, 2010 to refinance on February 1, 2011.

(9)	Application signed on December 3, 2010 to refinance on February 1, 2011.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	10/31/2010		07/31/2010		04/30/2010		01/31/2010		10/31/2009
Equity Capitalization
Common shares outstanding		79,092		78,158		75,805		73,966		73,502
Operating partnership (OP) units outstanding		19,994		20,273		20,522		20,853		20,962
Total common shares and OP units outstanding		99,086		98,431		96,327		94,819		94,464
Market price per common share (closing price at end of period)	$	8.80	$	8.47	$	8.73	$	8.73	$	8.37
Equity capitalization-common shares and OP units	$	871,957	$	833,711	$	840,935	$	827,770	$	790,664
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	899,274	$	861,028	$	868,252	$	855,087	$	817,981

Debt Capitalization
Total mortgage debt	$	1,004,532	$	1,063,414	$	1,057,619	$	1,091,945	$	1,060,131
Total capitalization	$	1,903,806	$	1,924,442	$	1,925,871	$	1,947,032	$	1,878,112

Total debt to total capitalization	0.53:1		0.55:1		0.55:1		0.56:1		0.56:1

	Six Months Ended						Three Months Ended
	10/31/2010			10/31/2009			10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
Earnings to fixed charges(1)		1.12	x		1.09	x		1.11	x		1.13	x		1.07	x		1.08	x		1.03	x
Earnings to combined fixed charges and preferred distributions(1)		1.08	x		1.05	x		1.07	x		1.09	x		1.04	x		1.04	x		0.99	x
Debt service coverage ratio(1)		1.42	x		1.38	x		1.40	x		1.44	x		1.39	x		1.36	x		1.36	x

Distribution Data
Common shares and units outstanding at record date		98,726			84,818			98,726			96,506			94,844			94,497			84,818
Total common distribution paid	$	33,482		$	28,874		$	16,931		$	16,551		$	16,267		$	16,205		$	14,504
Common distribution per share and unit	$	.3430		$	.3415		$	.1715		$	.1715		$	.1715		$	.1715		$	.1710
Payout ratio (FFO per share and unit basis)(1)		100.9	%		94.9	%		100.9	%		100.9	%		100.9	%		107.2	%		106.9	%

(1)	See Definitions on page 27.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties(1)
	Three Months Ended October 31,							Six Months Ended October 31,
Segment	2010		2009		% Change			2010		2009		% Change
Multi-Family Residential	$	9,155	$	9,499		(3.6	%)	$	18,096	$	18,729		(3.4	%)
Commercial Office		10,952		11,361		(3.6	%)		21,899		23,132		(5.3	%)
Commercial Medical		10,055		9,290		8.2	%		20,138		19,342		4.1	%
Commercial Industrial		2,067		2,073		(0.3	%)		4,426		4,517		(2.0	%)
Commercial Retail		2,290		2,151		6.5	%		4,668		4,480		4.2	%
	$	34,519	$	34,374		0.4	%	$	69,227	$	70,200		(1.4	%)

(1)	For Three and Six Months Ended October 31, 2010, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for October 31, 2010 is 89.1%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage 69,804. Occupancy % for October 31, 2010 is 61.5%.

Commercial Medical -

Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY; Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY; Billings 2300 Grant Road, Billings, MT and Missoula 3050 Great Northern Avenue, Missoula, MT.

Total square footage, 267,344. Occupancy % for October 31, 2010 is 100.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for October 31, 2010 is 100.0%.

For Three and Six Months ended October 31, 2009, stabilized properties excluded:

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,806. Occupancy % for October 31, 2009 is 51.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for October 31, 2009 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2010
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,995		$	19,526		$	13,449		$	3,003		$	3,360		$	0		$	57,333
Non-Stabilized		130			77			2,795			202			0			0			3,204
Total		18,125			19,603			16,244			3,205			3,360			0			60,537

Real estate expenses
Stabilized(1)		8,840			8,574			3,394			936			1,070			0			22,814
Non-Stabilized		78			58			1,967			33			0			0			2,136
Total		8,918			8,632			5,361			969			1,070			0			24,950

Stabilized(1)		9,155			10,952			10,055			2,067			2,290			0			34,519
Non-Stabilized		52			19			828			169			0			0			1,068
Net operating income	$	9,207		$	10,971		$	10,883		$	2,236		$	2,290		$	0		$	35,587

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,656	)	$	(4,950	)	$	(3,846	)	$	(847	)	$	(706	)	$	(737	)	$	(14,742	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,718	)		(1,718	)
Other expenses		0			0			0			0			0			(563	)		(563	)
Interest expense		(4,691	)		(5,561	)		(4,506	)		(1,018	)		(822	)		(282	)		(16,880	)
Interest and other income		0			0			0			0			0			167			167
Income tax benefit		0			0			0			0			0			19			19
Income (loss) from continuing operations		860			460			2,531			371			762			(3,114	)		1,870
Income (loss) from discontinued operations		5,300			0			(12	)		0			(37	)		0			5,251
Net income (loss)		6,160			460			2,519			371			725			(3,114	)		7,121
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,322	)		(1,322	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			20			20
Net income (loss) attributable to Investors Real Estate Trust		6,160			460			2,519			371			725			(4,416	)		5,819
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	6,160		$	460		$	2,519		$	371		$	725		$	(5,009	)	$	5,226

(1)	For Three Months Ended October 31, 2010, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for October 31, 2010 is 89.1%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage 69,804. Occupancy % for October 31, 2010 is 61.5%.

Commercial Medical -

Total square footage, 267,344. Occupancy % for October 31, 2010 is 100.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for October 31, 2010 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2009
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,926		$	20,435		$	13,226		$	3,251		$	3,246		$	0		$	58,084
Non-Stabilized		0			48			0			88			0			0			136
Total		17,926			20,483			13,226			3,339			3,246			0			58,220

Real estate expenses
Stabilized(1)		8,427			9,074			3,936			1,178			1,095			0			23,710
Non-Stabilized		0			9			25			24			0			0			58
Total		8,427			9,083			3,961			1,202			1,095			0			23,768

Net Operating Income (NOI)
Stabilized(1)		9,499			11,361			9,290			2,073			2,151			0			34,374
Non-Stabilized		0			39			(25	)		64			0			0			78
Net operating income	$	9,499		$	11,400		$	9,265		$	2,137		$	2,151		$	0		$	34,452

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,495	)	$	(5,544	)	$	(3,939	)	$	(961	)	$	(697	)	$	(82	)	$	(14,718	)
Administrative, advisory and trustee services		0			0			0			0			0			(1,498	)		(1,498	)
Other expenses		0			0			0			0			0			(498	)		(498	)
Impairment of real estate investment		0			0			0			0			(708	)		0			(708	)
Interest expense		(4,644	)		(5,868	)		(4,152	)		(1,020	)		(874	)		(176	)		(16,734	)
Interest and other income		0			0			0			0			0			125			125
Income (loss) from continuing operations		1,360			(12	)		1,174			156			(128	)		(2,129	)		421
(Loss) income from discontinued operations		(81	)		(157	)		3			0			13			1			(221	)
Net income (loss)		1,279			(169	)		1,177			156			(115	)		(2,128	)		200
Net loss attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			59			59
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			26			26
Net income (loss) attributable to Investors Real Estate Trust		1,279			(169	)		1,177			156			(115	)		(2,043	)		285
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,279		$	(169	)	$	1,177		$	156		$	(115	)	$	(2,636	)	$	(308	)

(1)	For Three Months ended October 31, 2009, stabilized properties excluded:

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,806. Occupancy % for October 31, 2009 is 51.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for October 31, 2009 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2010
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	35,531		$	39,364		$	27,027		$	6,319		$	6,777		$	0		$	115,018
Non-Stabilized		248			132			5,527			329			0			0			6,236
Total		35,779			39,496			32,554			6,648			6,777			0			121,254

Real estate expenses
Stabilized(1)		17,435			17,465			6,889			1,893			2,109			0			45,791
Non-Stabilized		141			110			3,780			59			0			0			4,090
Total		17,576			17,575			10,669			1,952			2,109			0			49,881

Stabilized(1)		18,096			21,899			20,138			4,426			4,668			0			69,227
Non-Stabilized		107			22			1,747			270			0			0			2,146
Net operating income	$	18,203		$	21,921		$	21,885		$	4,696		$	4,668		$	0		$	71,373

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(7,311	)	$	(10,028	)	$	(7,659	)	$	(1,728	)	$	(1,409	)	$	(1,492	)	$	(29,627	)
Administrative, advisory and trustee fees		0			0			0			0			0			(3,687	)		(3,687	)
Other expenses		0			0			0			0			0			(916	)		(916	)
Interest expense		(9,410	)		(11,132	)		(8,820	)		(2,037	)		(1,639	)		(1,357	)		(33,395	)
Interest and other income		0			0			0			0			0			304			304
Income (loss) from continuing operations		1,482			761			5,406			931			1,620			(6,148	)		4,052
Income (loss) from discontinued operations		5,481			0			(9	)		0			(71	)		0			5,401
Net income (loss)		6,963			761			5,397			931			1,549			(6,148	)		9,453
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,692	)		(1,692	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			44			44
Net income (loss) attributable to Investors Real Estate Trust		6,963			761			5,397			931			1,549			(7,796	)		7,805
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	6,963		$	761		$	5,397		$	931		$	1,549		$	(8,982	)	$	6,619

(1)	For Six Months Ended October 31, 2010, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for October 31, 2010 is 89.1%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage 69,804. Occupancy % for October 31, 2010 is 61.5%.

Commercial Medical -

Total square footage, 267,344. Occupancy % for October 31, 2010 is 100.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for October 31, 2010 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2009
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	35,675		$	41,597		$	26,939		$	6,646		$	6,664		$	0		$	117,521
Non-Stabilized		0			52			0			88			0			0			140
Total		35,675			41,649			26,939			6,734			6,664			0			117,661

Real estate expenses
Stabilized(1)		16,946			18,465			7,597			2,129			2,184			0			47,321
Non-Stabilized		0			61			57			24			0			0			142
Total		16,946			18,526			7,654			2,153			2,184			0			47,463

Net Operating Income (NOI)
Stabilized(1)		18,729			23,132			19,342			4,517			4,480			0			70,200
Non-Stabilized		0			(9	)		(57	)		64			0			0			(2	)
Net operating income	$	18,729		$	23,123		$	19,285		$	4,581		$	4,480		$	0		$	70,198

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(6,957	)	$	(11,228	)	$	(7,484	)	$	(1,883	)	$	(1,393	)	$	(156	)	$	(29,101	)
Administrative, advisory and trustee services		0			0			0			0			0			(2,985	)		(2,985	)
Other expenses		0			0			0			0			0			(932	)		(932	)
Impairment of real estate investment		0			0			0			0			(708	)		0			(708	)
Interest expense		(9,236	)		(11,763	)		(8,532	)		(2,024	)		(1,823	)		(288	)		(33,666	)
Interest and other income		0			0			0			0			0			253			253
Income (loss) from continuing operations		2,536			132			3,269			674			556			(4,108	)		3,059
(Loss) income from discontinuing operations		(162	)		(161	)		6			0			25			2			(290	)
Net income (loss)		2,374			(29	)		3,275			674			581			(4,106	)		2,769
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(420	)		(420	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(47	)		(47	)
Net income (loss) attributable to Investors Real Estate Trust		2,374			(29	)		3,275			674			581			(4,573	)		2,302
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,374		$	(29	)	$	3,275		$	674		$	581		$	(5,759	)	$	1,116

(1)	For Six Months ended October 31, 2009, stabilized properties excluded:

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,806. Occupancy % for October 31, 2009 is 51.0%.

Commercial Industrial -

Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for October 31, 2009 is 100.0%.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

2nd Quarter Fiscal 2011 vs. 2nd Quarter Fiscal 2010

Segments	Stabilized Properties		All Properties
	2nd Quarter	2nd Quarter	2nd Quarter	2nd Quarter
	Fiscal 2011	Fiscal 2010	Fiscal 2011	Fiscal 2010
Multi-Family Residential	91.0%	91.2%	90.9%	91.2%
Commercial Office	80.8%	85.7%	80.5%	85.1%
Commercial Medical	95.3%	94.3%	95.8%	94.3%
Commercial Industrial	80.0%	89.4%	80.5%	89.5%
Commercial Retail	84.1%	87.6%	84.1%	87.6%

Stabilized Physical Occupancy Levels by Segment Bar Chart

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and six months ended October 31, 2010

	Three Months Ended October 31, 2010
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			84,748			31,052			115,800			299,917			(184,117	)
Commercial Medical			50,035			23,142			73,177			27,707			45,470
Commercial Industrial			17,750			53,870			71,620			194,930			(123,310	)
Commercial Retail			4,629			31,125			35,754			82,829			(47,075	)
Total All Segments			157,162			139,189			296,351			605,383			(309,032	)

Weighted Average Rental Rates(3)
Commercial Office		$	12.86		$	11.15		$	12.40		$	11.51		$	0.89			7.7	%
Commercial Medical			21.17			20.20			20.86			19.85			1.01			5.1	%
Commercial Industrial			4.37			2.97			3.32			3.40			(0.08	)		(2.4	%)
Commercial Retail			2.10			4.20			3.93			6.64			(2.71	)		(40.8	%)
Total All Segments		$	14.23		$	7.94		$	11.27		$	8.61		$	2.66			30.9	%

	Six Months Ended October 31, 2010
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			165,209			159,785			324,994			408,451			(83,457	)
Commercial Medical			50,035			24,451			74,486			36,859			37,627
Commercial Industrial			116,119			216,617			332,736			306,530			26,206
Commercial Retail			20,327			39,089			59,416			167,202			(107,786	)
Total All Segments			351,690			439,942			791,632			919,042			(127,410	)

Weighted Average Rental Rates(3)
Commercial Office		$	11.21		$	10.43		$	10.83		$	12.26		$	(1.43	)		(11.7	%)
Commercial Medical			21.17			20.27			20.87			19.67			1.20			6.1	%
Commercial Industrial			6.75			2.64			4.07			3.34			0.73			21.9	%
Commercial Retail			11.39			5.19			7.31			8.44			(1.13	)		(13.4	%)
Total All Segments		$	11.17		$	6.67		$	8.67		$	8.89		$	(0.22	)		(2.5	%)

	Three Months Ended October 31, 2010						Six Months Ended October 31, 2010
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased
Commercial Office		6.8		3.8		5.6		6.6		3.6		4.9
Commercial Medical		3.4		6.0		4.9		3.4		5.8		4.9
Commercial Industrial		5.3		3.5		4.1		3.6		2.9		3.2
Commercial Retail		1.5		1.9		1.8		3.0		2.1		2.4
Total All Segments		5.2		3.4		4.2		4.8		3.3		3.9

(1)	Does not include leases in place on acquired properties.

(2)	Renewals may include leases that have renewed prior to expiration date. Square footage or rental rate changes on renewals are included in calculation.

(3)	Expired leases include leases with tenants who have vacated or renewed. Excluded from expired leases are leases that have been amended to extend the term, including leases on a month-to-month basis.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and six months ended October 31, 2010

	2nd Quarter Fiscal 2011 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	1,267,993	$	73,874	$	1,341,867	$	1,310,167	$	83,473	$	1,393,640
Commercial Medical		36,000		8,840		44,840		36,000		8,840		44,840
Commercial Industrial		0		48,000		48,000		63,400		48,000		111,400
Commercial Retail		0		0		0		15,000		0		15,000
Subtotal	$	1,303,993	$	130,714	$	1,434,707	$	1,424,567	$	140,313	$	1,564,880

Tenant Improvements per square foot
Commercial Office	$	14.96	$	2.38	$	11.59	$	7.93	$	0.52	$	4.29
Commercial Medical		0.72		0.38		0.89		0.72		0.36		0.60
Commercial Industrial		0.00		0.89		0.67		0.55		0.22		0.33
Commercial Retail		0.00		0.00		0.00		0.74		0.00		0.25
All Segments	$	8.30	$	0.94	$	4.84	$	4.05	$	0.32	$	1.98

Leasing Costs
Commercial Office	$	942,018	$	107,072	$	1,049,090	$	1,989,155	$	545,327	$	2,534,482
Commercial Medical		11,575		62,766		74,341		11,575		66,038		77,613
Commercial Industrial		15,531		35,522		51,053		68,521		44,870		113,391
Commercial Retail		22,907		13,712		36,619		74,829		25,497		100,326
Subtotal	$	992,031	$	219,072	$	1,211,103	$	2,144,080	$	681,732	$	2,825,812

Leasing Costs per square foot
Commercial Office	$	11.12	$	3.45	$	9.06	$	12.04	$	3.41	$	7.80
Commercial Medical		0.23		2.71		1.02		0.23		2.70		1.04
Commercial Industrial		0.87		0.66		0.71		0.59		0.21		0.34
Commercial Retail		4.95		0.44		1.02		3.68		0.65		1.69
All Segments	$	6.31	$	1.57	$	4.09	$	6.10	$	1.55	$	3.57

Tenant Improvements and Leasing Costs
Commercial Office	$	2,210,011	$	180,946	$	2,390,957	$	3,299,322	$	628,800	$	3,928,122
Commercial Medical		47,575		71,606		119,181		47,575		74,878		122,453
Commercial Industrial		15,531		83,522		99,053		131,921		92,870		224,791
Commercial Retail		22,907		13,712		36,619		89,829		25,497		115,326
Total	$	2,296,024	$	349,786	$	2,645,810	$	3,568,647	$	822,045	$	4,390,692

Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	26.08	$	5.83	$	20.65	$	19.97	$	3.94	$	12.09
Commercial Medical		0.95		3.09		1.63		0.95		3.06		1.64
Commercial Industrial		0.87		1.55		1.38		1.14		0.43		0.68
Commercial Retail		4.95		0.44		1.02		4.42		0.65		1.94
All Segments	$	14.61	$	2.51	$	8.93	$	10.15	$	1.87	$	5.55

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	10/31/2010			07/31/2010			04/30/2010			01/31/2010			10/31/2009
Number of Units		9,187			9,187			9,187			9,123			9,123
Average Investment Per Unit
Stabilized	$	56,674		$	56,401		$	56,150		$	55,717		$	55,363
Non-Stabilized		66,818			66,736			66,719			0			0
	$	56,745		$	56,473		$	56,175		$	55,717		$	55,363

Average Scheduled Rent per Unit
Stabilized	$	712		$	709		$	709		$	706		$	703
Non-Stabilized		772			758			1,017			0			0
	$	712		$	709		$	709		$	706		$	703

Total Receipts per Unit
Stabilized	$	657		$	641		$	645		$	649		$	655
Non-Stabilized		673			618			961			0			0
	$	658		$	641		$	646		$	649		$	655

Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	162		$	128		$	119		$	100		$	184
Non-Stabilized		25			0			0			0			0
	$	161		$	128		$	119		$	100		$	184

Physical Occupancy%
Stabilized		91.0	%		86.2	%		90.0	%		89.9	%		91.2	%
Non-Stabilized		89.1	%		90.6	%		95.3	%		0.0	%		0.0	%
		90.9	%		86.2	%		90.0	%		89.9	%		91.2	%

Operating Expenses as a % of Scheduled Rent
Stabilized		45.4	%		44.3	%		45.3	%		47.3	%		43.8	%
Non-Stabilized		52.3	%		43.8	%		18.9	%		0.0	%		0.0	%
Total		45.5	%		44.3	%		45.2	%		47.3	%		43.8	%

(1)	See Definitions on page 27.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

10 LARGEST COMMERCIAL TENANTS – BASED ON ANNUALIZED BASE RENT(1)

as of October 31, 2010

Tenant	Number of Properties	Average Remaining Lease Term in Months	% of Total Commercial Segments’ Minimum Rents	Aggregate Rentable Square Feet	% of Aggregate Occupied Square Feet
Affiliates of Edgewood Vista	19	220	10.0%	908,181	9.0%
St. Lukes Hospital of Duluth, Inc.	6	63	3.6%	198,775	2.0%
Fairview Health Services	9	60	2.4%	173,998	1.7%
Applied Underwriters	3	76	2.2%	141,724	1.4%
Affiliates of Siemens USA	2	16	2.2%	186,224	1.8%
HealthEast Care System	1	100	1.7%	114,316	1.1%
Smurfit - Stone Container (NASDAQ: SSCC)	2	42	1.5%	424,147	4.2%
Microsoft (NASDAQ: MSFT)	1	34	1.5%	122,040	1.2%
Nebraska Orthopedic Hospital	1	221	1.4%	61,758	0.6%
Arcadis Corporate Services, Inc.	1	207	1.2%	71,430	0.7%
Total/Weighted Average		103	27.7%	2,402,593	23.7%

(1)	See Definitions on page 27.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of October 31, 2010

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Rent
Commercial Office
2011		38		201,055		5.2	%	$	2,803,422	$	13.94		5.2	%
2012		59		764,561		19.6	%		10,608,261		13.87		19.7	%
2013		44		544,142		14.0	%		7,392,616		13.59		13.7	%
2014		43		601,517		15.5	%		7,935,440		13.19		14.7	%
2015		43		387,169		9.9	%		4,949,781		12.78		9.2	%
2016 and thereafter		53		1,393,889		35.8	%		20,203,311		14.49		37.5	%
		280		3,892,333		100.0	%	$	53,892,831	$	13.85		100.0	%

Commercial Medical
2011		12		39,598		1.6	%	$	724,526	$	18.30		1.6	%
2012		30		107,226		4.4	%		2,222,452		20.73		4.9	%
2013		20		109,006		4.4	%		2,395,492		21.98		5.3	%
2014		33		395,072		16.2	%		7,163,979		18.13		15.8	%
2015		11		54,310		2.2	%		1,307,740		24.08		2.9	%
2016 and thereafter		85		1,738,864		71.2	%		31,423,761		18.07		69.5	%
		191		2,444,076		100.0	%	$	45,237,950	$	18.51		100.0	%

Commercial Industrial
2011		8		786,733		33.4	%	$	2,739,559	$	3.48		29.5	%
2012		6		528,757		22.4	%		487,758		2.81		16.0	%
2013		2		142,185		6.0	%		685,357		4.82		7.4	%
2014		7		239,155		10.1	%		999,571		4.18		10.8	%
2015		2		76,685		3.3	%		312,907		4.08		3.4	%
2016 and thereafter		10		585,879		24.8	%		3,050,436		5.21		32.9	%
		35		2,359,394		100.0	%	$	9,275,588	$	3.93		100.0	%

Commercial Retail
2011		20		93,303		8.4	%	$	745,093	$	7.99		7.9	%
2012		43		305,187		27.4	%		1,775,718		5.82		18.9	%
2013		22		48,443		4.3	%		529,946		10.94		5.6	%
2014		26		101,907		9.2	%		1,024,840		10.06		10.9	%
2015		26		237,758		21.4	%		2,069,113		8.70		22.0	%
2016 and thereafter		27		326,676		29.3	%		3,271,084		10.01		34.7	%
		164		1,113,274		100.0	%	$	9,415,794	$	8.46		100.0	%

Commercial Total
2011		78		1,120,689		11.4	%	$	7,012,600	$	6.26		6.0	%
2012		138		1,705,731		17.4	%		16,094,189		9.44		13.7	%
2013		88		843,776		8.6	%		11,003,411		13.04		9.3	%
2014		109		1,337,651		13.7	%		17,123,830		12.80		14.5	%
2015		82		755,922		7.7	%		8,639,541		11.43		7.3	%
2016 and thereafter		175		4,045,308		41.2	%		57,948,592		14.32		49.2	%
		670		9,809,077		100.0	%	$	117,822,163	$	12.01		100.0	%

* Annualized Rent is monthly scheduled rent as of October 31, 2010 (cash basis), multiplied by 12.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 ACQUISITION SUMMARY

as of October 31, 2010

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			July 31, 2010 Leased Percentage			Acquisition Cost

Fargo 1320 45th Street N(1)	Fargo, ND	Commercial Industrial	June 22, 2010		42,244		100.0	%		100.0	%	$	1,616
Billings 2300 Grant Road	Billings, MT	Commercial Medical	July 15, 2010		14,705		100.0	%		100.0	%		2,522
Missoula 3050 Great Northern Ave	Missoula, MT	Commercial Medical	July 15, 2010		14,640		100.0	%		100.0	%		2,723
			Total Square Feet		71,589							$	6,861
			Total Units		0

(1)	Development property placed in service June 22, 2010. Additional costs incurred in fiscal year 2010 totaled $2.3 million for a total project cost at July 31, 2010 of $3.9 million.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 DEVELOPMENT SUMMARY

as of October 31, 2010

($’s in thousands)

Property and Location	Total Rentable Square Feet or # of Units	Percentage Leased or Committed			Anticipated Total Cost		Cost to Date		Anticipated Construction Completion
Edgewood Vista - Spearfish, SD	23,965 sf. expansion		100	%	$	2,600	$	969	3rd Quarter Fiscal 2011
1st Avenue Building - Minot, ND	Convert 15,446 sf. commercial office to 24 multi-family residential units		0	%		2,000		1	1st Quarter Fiscal 2012
Buffalo Threater - Jamestown, ND	19,037 sf.		100	%		2,100		154	1st Quarter Fiscal 2012
Georgetown Square Condos - Grand Chute, WI	8 condo units		0	%		1,631		1,631	2nd Quarter Fiscal 2012
		Total			$	8,331	$	2,755

Table of Contents

Definitions

October 31, 2010

Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.

Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.

Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.

EBITDA is earnings before interest, taxes, depreciation and amortization. We consider EBITDA to be an appropriate supplemental performance measure because it eliminates depreciation, interest and the gain/loss from property dispositions, which permits investors to view income from operations without the effect of non-cash depreciation or the cost of debt; however, EBIDTA as we calculate it has not been adjusted for the effect of nonrecurring events such as asset impairment and gain/loss on involuntary conversion. EBITDA is a non-GAAP measure. EBITDA as calculated by us is not comparable to EBITDA reported by other REITs that do not define EBITDA exactly as we do.

Funds from operations (FFO) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as “net income (computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.” FFO is a non-GAAP measure. We consider FFO to be a standard supplemental measure for equity real estate investment trusts because it facilitates an understanding of the operating performance of properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values instead historically rise or fall with market conditions, we believe that FFO provides investors and management with a more accurate indication of our financial and operating results.

Net Operating Income is total real estate revenues less real estate expenses and real estate taxes (which consist of utilities, maintenance, real estate taxes, insurance and property management expenses).

Payout ratio (FFO per share and unit basis) - The ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual FFO per share and unit.

Ratio of earnings to fixed charges - The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Fixed charges consist of mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest.

Ratio of earnings to combined fixed charges and preferred distributions - The ratio of earnings to combined fixed charges and preferred distributions is computed by dividing earnings by combined fixed charges and preferred distributions. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Combined fixed charges and preferred distributions consist of fixed charges (mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest) and preferred distributions.

Recurring capital expenditures are costs that increase the value and extend the useful life of a property. Ordinary repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Costs incurred on a lease turnover due to normal wear and tear by the resident are expensed on the turn. Recurring capital improvements typically include appliances, carpeting and flooring, and kitchen/bath cabinets.

Stabilized properties are those properties owned for the entirety of both periods being compared, and, in the case of development or re-development properties, which have achieved a target level of occupancy.

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