CENTERSPACE - FORM 8-K - EX-99.2 - FOURTH QUARTER FISCAL 2011 SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Attached files

file	filename
EX-99.1 - EARNINGS RELEASE - CENTERSPACE	iretexhibit991-06302011.htm
8-K - IRET FORM 8-K CURRENT REPORT - CENTERSPACE	iretform8kpressrel-06302011.htm

Exhibit 99.2

Fourth Quarter Fiscal 2011

Supplemental Operating and Financial Data

for the Quarter Ended April 30, 2011


CONTACT: Lindsey 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

Table of Contents

April 30, 2011

	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 April 30, 2011	24

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

Definitions	27

Table of Contents

Company Background and Highlights

Fourth 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 fourth quarter of fiscal year 2011, the Company acquired two multi-family residential properties. On February 3, 2011, the Company closed on its purchase of the 24-unit North Pointe II apartment property in Bismarck, North Dakota, for a purchase price of approximately $1.9 million, consisting of $372,000 in cash and limited partnership units of IRET Properties valued at approximately $1.5 million. The North Pointe II apartment complex adjoins the Company’s existing North Pointe I property in Bismarck, North Dakota. On February 28, 2011, the Company completed its acquisition of the 44-unit Sierra Vista Apartments in Sioux Falls, South Dakota, for a purchase price of approximately $2.3 million, consisting of $2.0 million in cash and limited partnership units of IRET Properties valued at approximately $299,000. The Company had no dispositions during the fourth quarter of fiscal year 2011.

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 fourth quarter of fiscal year 2011, IRET sold no common shares under this program.

During fiscal year 2011 we continued to experience a challenging market environment in our commercial office, industrial and retail segments in particular. While many of our markets appear to be emerging from recession, growth remains sluggish and unemployment high, and we continue to find it challenging to lease vacant space, as office, industrial and retail tenants are remaining cautious. We expect these leasing challenges to continue during fiscal year 2012, with flat or modest growth in rental revenues and net operating income.

Our multi-family residential properties, however, have shown steady improvement in occupancy and real estate revenue over the past several quarters. While we expect to see continued favorable results in our multi-family segment in fiscal year 2012, our ability to maintain occupancy levels and selectively raise rents is dependent on continued economic recovery and employment growth, and the strength and sustainability of a recovery is currently far from certain.

In the fourth quarter of fiscal year 2011, IRET paid its 160th consecutive quarterly distribution per common share/unit at equal or increasing rates. The $0.1715 per share/unit distribution was paid April 1, 2011. Subsequent to the end of the fourth quarter of fiscal year 2011, the Company declared a quarterly distribution of $0.1715 per share and unit payable on July 1, 2011 to shareholders of record on June 15, 2011. The Board of Trustees also declared a quarterly distribution of $0.5156 per share on the Company’s Series A preferred shares, payable June 30, 2011 to preferred shareholders of record on June 15, 2011. Additionally, subsequent to the end of fiscal year 2011, the Company announced that the Board of Trustees has approved a plan to reduce the Company’s quarterly distribution to $0.1300 from $0.1715 per common share and limited partnership unit, effective with the next quarterly distribution planned for October 3, 2011. The Board currently intends to maintain this level of cash distribution for at least the next four quarters. All future distributions remain subject to the discretion of the Company’s Board of Trustees.

As of April 30, 2011, IRET owns a diversified portfolio of 254 properties consisting of 78 multi-family residential properties, 68 commercial office properties, 56 commercial medical properties (including senior housing), 19 commercial industrial properties and 33 commercial retail properties. IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ: IRET).

Table of Contents

Company Snapshot

(as of April 30, 2011)

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)	12.2 million
Total Units
(multi-family residential properties)	8,661
Common Shares Outstanding (thousands)	80,523
Limited Partnership Units Outstanding (thousands)	20,068
Common Share Distribution - Quarter/Annualized	$0.1715/$0.686
Dividend Yield	7.3%
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
Jeffrey K. Woodbury	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
Michael A. Bosh	Senior Vice President, General Counsel and Assistant Secretary
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Ted E. Holmes	Senior Vice President, Finance
Andrew Martin	Senior Vice President, Residential Property Management
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 Anderson

landerson@iret.com

Table of Contents

Common Share Data (NASDAQ: IRET)

	4th Quarter Fiscal Year 2011			3rd Quarter Fiscal Year 2011			2nd Quarter Fiscal Year 2011			1st Quarter Fiscal Year 2011			4th Quarter Fiscal Year 2010
High Closing Price	$	9.54		$	9.26		$	8.90		$	9.20		$	9.37
Low Closing Price	$	8.92		$	8.74		$	7.97		$	8.25		$	8.31
Average Closing Price	$	9.24		$	8.99		$	8.43		$	8.71		$	8.89
Closing Price at end of quarter	$	9.41		$	8.94		$	8.80		$	8.47		$	8.73
Common Share Distributions—annualized	$	0.686		$	0.686		$	0.686		$	0.686		$	0.686
Closing Dividend Yield - annualized		7.3	%		7.7	%		7.8	%		8.1	%		7.9	%
Closing common shares outstanding (thousands)		80,523			79,846			79,092			78,158			75,805
Closing limited partnership units outstanding (thousands)		20,068			20,047			19,994			20,273			20,522
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	946,561		$	893,043		$	871,957		$	833,711		$	840,935

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: intentions and expectations regarding future distributions on our common shares and units, 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.

Fourth Quarter Fiscal 2011 Acquisitions


North Pointe Apartments 1930 East Capitol Ave #100. Bismarck, ND 58501	Sierra Vista Apartments 4700 S. Baha Ave., Sioux Falls, SD 57106

Table of Contents

Investment Cost by Segment – Fourth 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.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
ASSETS
Real estate investments
Property owned	$	1,770,798		$	1,763,585		$	1,773,924		$	1,813,427		$	1,800,519
Less accumulated depreciation		(328,952	)		(319,235	)		(322,379	)		(320,994	)		(308,626	)
		1,441,846			1,444,350			1,451,545			1,492,433			1,491,893
Development in progress		9,693			4,231			2,755			174			2,831
Unimproved land		6,550			7,470			7,876			6,020			6,007
Mortgage loans receivable, net of allowance		156			157			157			158			158
Total real estate investments		1,458,245			1,456,208			1,462,333			1,498,785			1,500,889
Other assets
Cash and cash equivalents		41,191			30,907			43,701			56,077			54,791
Marketable securities – available-for-sale		625			325			420			420			420
Receivable arising from straight-lining of rents, net of allowance		18,933			18,656			18,125			17,751			17,320
Accounts receivable, net of allowance		5,646			8,864			5,179			5,911			4,916
Real estate deposits		329			254			2,089			302			516
Prepaid and other assets		2,351			2,852			3,375			3,032			1,189
Intangible assets, net of accumulated amortization		49,832			51,543			48,140			50,050			50,700
Tax, insurance, and other escrow		15,268			18,467			10,504			10,391			9,301
Property and equipment, net of accumulated depreciation		1,704			1,332			1,370			1,371			1,392
Goodwill		1,127			1,127			1,260			1,388			1,388
Deferred charges and leasing costs, net of accumulated amortization		20,112			19,737			18,606			18,449			18,108
TOTAL ASSETS	$	1,615,363		$	1,610,272		$	1,615,102		$	1,663,927		$	1,660,930

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	37,879		$	35,633		$	26,616		$	33,340		$	38,514
Revolving lines of credit		30,000			10,000			29,100			6,528			6,550
Mortgages payable		993,803			998,929			1,004,532			1,063,414			1,057,619
Other		8,404			8,423			1,227			1,272			1,320
TOTAL LIABILITIES		1,070,086			1,052,985			1,061,475			1,104,554			1,104,003

REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		987			1,237			1,357			1,427			1,812
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		621,936			616,701			610,580			603,344			583,618
Accumulated distributions in excess of net income		(237,563	)		(223,684	)		(221,304	)		(213,055	)		(201,412	)
Total Investors Real Estate Trust shareholders’ equity		411,690			420,334			416,593			417,606			409,523
Noncontrolling interests – Operating Partnership		123,627			126,335			126,113			130,050			134,970
Noncontrolling interests – consolidated real estate entities		8,973			9,381			9,564			10,290			10,622
Total equity		544,290			556,050			552,270			557,946			555,115
TOTAL LIABILITIES AND EQUITY	$	1,615,363		$	1,610,272		$	1,615,102		$	1,663,927		$	1,660,930

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Twelve Months Ended						Three Months Ended
OPERATING RESULTS	04/30/2011			04/30/2010			04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
Real estate revenue	$	237,407		$	231,511		$	59,124		$	60,203		$	58,904		$	59,176		$	59,410
Real estate expenses		101,923			96,291			26,269			27,037			24,304			24,313			25,382
Gain on involuntary conversion		0			1,660			0			0			0			0			0
Net operating income		135,484			136,880			32,855			33,166			34,600			34,863			34,028
Depreciation/amortization		(58,528	)		(57,455	)		(14,947	)		(14,591	)		(14,424	)		(14,566	)		(14,491	)
Administrative expenses, advisory and trustee services		(7,222	)		(6,218	)		(1,685	)		(1,850	)		(1,718	)		(1,969	)		(1,443	)
Other expenses		(1,774	)		(2,513	)		(417	)		(441	)		(563	)		(353	)		(1,045	)
Impairment of real estate investment		0			(708	)		0			0			0			0			0
Interest		(64,021	)		(65,665	)		(15,626	)		(15,888	)		(16,436	)		(16,071	)		(16,359	)
Interest and other income		541			894			130			107			167			137			391
Income tax benefit (expense)		0			0			0			0			19			(19	)		0
Income from continuing operations		4,480			5,215			310			503			1,645			2,022			1,081
Income (loss) from discontinued operations		19,871			(630	)		0			14,085			5,476			310			371
Net income	$	24,351		$	4,585		$	310		$	14,588		$	7,121		$	2,332		$	1,452

Net (income) loss attributable to noncontrolling interest – Operating Partnership		(4,449	)		(562	)		36			(2,793	)		(1,322	)		(370	)		(181	)
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		180			(22	)		98			38			20			24			(24	)
Net income attributable to Investors Real Estate Trust		20,082			4,001			444			11,833			5,819			1,986			1,247
Dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	17,710		$	1,629		$	(149	)	$	11,240		$	5,226		$	1,393		$	654

Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.02		$	.04		$	(.01	)	$	.00		$	.01		$	.02		$	.01
Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.20			(.01	)		.00			.14			.06			.00			.00
Net income (loss) per common share – basic & diluted	$	.22		$	.03		$	(.01	)	$	.14		$	.07		$	.02		$	.01

Percentage of Revenues
Real estate expenses		42.9	%		41.6	%		44.4	%		44.9	%		41.3	%		41.1	%		42.7	%
Depreciation/amortization		24.7	%		24.8	%		25.3	%		24.2	%		24.5	%		24.6	%		24.4	%
General and administrative		3.0	%		2.7	%		2.8	%		3.1	%		2.9	%		3.3	%		2.4	%
Interest		27.0	%		28.4	%		26.4	%		26.4	%		27.9	%		27.2	%		27.5	%
Net income		10.3	%		2.0	%		0.5	%		24.2	%		12.1	%		3.9	%		2.4	%

Ratios
EBITDA(1)/Interest expense		1.99	x		1.92	x		1.98	x		1.97	x		1.96	x		2.04	x		1.95	x
EBITDA/Interest expense plus preferred distributions		1.92	x		1.86	x		1.91	x		1.90	x		1.89	x		1.97	x		1.88	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).

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Twelve Months Ended						Three Months Ended
	04/30/2011			04/30/2010			04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	20,082		$	4,001		$	444		$	11,833		$	5,819		$	1,986		$	1,247
Less dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		17,710			1,629			(149	)		11,240			5,226			1,393			654
Adjustments:
Noncontrolling interests – Operating Partnership		4,449			562			(36	)		2,793			1,322			370			181
Depreciation and amortization		59,402			59,383			14,877			14,577			14,888			15,060			14,993
Gain on depreciable property sales		(19,365	)		(68	)		0			(13,961	)		(5,404	)		0			(68	)
Funds from operations applicable to common shares and Units	$	62,196		$	61,506		$	14,692		$	14,649		$	16,032		$	16,823		$	15,760

FFO per share and unit - basic and diluted	$	0.63		$	0.69		$	0.15		$	0.14		$	0.17		$	0.17		$	0.17
Weighted average shares and units		98,782			89,918			100,239			99,355			98,737			96,777			94,979

(1)	See Definitions on page 27.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Twelve Months Ended						Three Months Ended
	04/30/2011			04/30/2010			04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	20,082		$	4,001		$	444		$	11,833		$	5,819		$	1,986		$	1,247
Adjustments:
Noncontrolling interests – Operating Partnership		4,449			562			(36	)		2,793			1,322			370			181
Income before noncontrolling interests – Operating Partnership		24,531			4,563			408			14,626			7,141			2,356			1,428
Add:
Interest		65,453			69,106			15,626			15,719			17,346			16,762			17,058
Depreciation/amortization related to real estate investments		56,991			57,393			14,246			13,943			14,320			14,482			14,407
Amortization related to non-real estate investments		2,683			2,370			701			689			639			654			654
Amortization related to real estate revenues(2)		153			118			56			44			28			25			26
Less:
Interest income		(264	)		(546	)		(65	)		(75	)		(66	)		(58	)		(278	)
Gain on sale of real estate, land and other investments		(19,365	)		(68	)		0			(13,961	)		(5,404	)		0			(68	)
EBITDA	$	130,182		$	132,936		$	30,972		$	30,985		$	34,004		$	34,221		$	33,227

(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
2012	$	31,283	$	0	$	31,283		6.27	%		3.2	%
2013		22,151		0		22,151		5.76	%		2.2	%
2014		45,138		827		45,965		6.15	%		4.6	%
2015		76,444		0		76,444		5.68	%		7.7	%
2016		67,772		110		67,882		5.98	%		6.8	%
2017		188,589		0		188,589		6.19	%		19.0	%
2018		86,889		0		86,889		5.80	%		8.7	%
2019		72,977		590		73,567		6.37	%		7.4	%
2020		119,335		0		119,335		5.85	%		12.0	%
2021		120,771		0		120,771		5.47	%		12.2	%
Thereafter		160,927		0		160,927		5.86	%		16.2	%
Total maturities	$	992,276	$	1,527	$	993,803		5.92	%		100.0	%

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

	04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
Balances Outstanding
Mortgage
Fixed rate	$	992,276		$	997,332		$	1,002,867		$	1,034,982		$	1,028,606
Variable rate		1,527			1,597			1,665			28,432			29,013
Mortgage total		993,803			998,929			1,004,532			1,063,414			1,057,619

Weighted Average Interest Rates
Secured		5.92	%		6.05	%		6.14	%		6.13	%		6.17	%

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2011

(in thousands)

Property	Maturity Date	Fiscal 2012		Fiscal 2013		Fiscal 2014		Fiscal 2015		Thereafter		Total(1)

Multi-Family Residential
Chateau - Minot, ND 2	7/1/2011	$	1,730	$	0	$	0	$	0	$	0	$	1,730
Oakmont Estates - Sioux Falls, SD	9/1/2011		3,605		0		0		0		0		3,605
Canyon Lake - Rapid City, SD	10/1/2011		2,593		0		0		0		0		2,593
Meadows III - Jamestown, ND	11/1/2011		943		0		0		0		0		943
Crown - Rochester, MN	1/1/2012		2,520		0		0		0		0		2,520
Monticello Village - Monticello, MN	3/1/2013		0		3,023		0		0		0		3,023
Quarry Ridge - Rochester, MN	10/1/2013		0		0		12,136		0		0		12,136
East Park - Sioux Falls, SD	12/1/2013		0		0		1,530		0		0		1,530
Sycamore Village - Sioux Falls, SD	12/1/2013		0		0		861		0		0		861
Candlelight - Fargo, ND	3/1/2014		0		0		1,315		0		0		1,315
Summary of Debt due after Fiscal 2015			0		0		0		0		242,338		242,338
Sub-Total Multi-Family Residential		$	11,391	$	3,023	$	15,842	$	0	$	242,338	$	272,594

Commercial Office
Wells Fargo Center - St Cloud, MN 3	7/1/2011	$	6,336	$	0	$	0	$	0	$	0	$	6,336
Wirth Corporate Center - Golden Valley, MN	2/1/2012		3,777		0		0		0		0		3,777
Great Plains - Fargo, ND	10/1/2013		0		0		3,140		0		0		3,140
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		0		2,611		0		0		2,611
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		0		1,354		0		0		1,354
Viromed - Eden Prairie, MN	4/1/2014		0		0		907		0		0		907
TCA Building – Eagan, MN	5/1/2014		0		0		0		7,968		0		7,968
Burnsville Bluffs II – Burnsville, MN	8/8/2014		0		0		0		1,792		0		1,792
Plymouth IV – Plymouth, MN	8/8/2014		0		0		0		3,305		0		3,305
Plymouth V – Plymouth, MN	8/8/2014		0		0		0		3,863		0		3,863
Plaza VII – Boise, ID	9/1/2014		0		0		0		1,107		0		1,107
Crosstown Centre – Eden Prairie, MN	12/1/2014		0		0		0		3,535		0		3,535
Crosstown Centre – Eden Prairie, MN	12/1/2014		0		0		0		10,604		0		10,604
Northgate I - Maple Grove, MN	12/10/2014		0		0		0		5,504		0		5,504
Plymouth I - Plymouth, MN	12/10/2014		0		0		0		1,234		0		1,234
Plymouth II - Plymouth, MN	12/10/2014		0		0		0		1,234		0		1,234
Plymouth III - Plymouth, MN	12/10/2014		0		0		0		1,518		0		1,518
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		0		0		687		0		687
West River Business Park - Waite Park, MN	1/1/2015		0		0		0		687		0		687
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		0		0		8,640		0		8,640
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		0		0		8,447		0		8,447
Summary of Debt due after Fiscal 2015			0		0		0		0		265,088		265,088
Sub-Total Commercial Office		$	10,113	$	0	$	8,012	$	60,125	$	265,088	$	343,338
Commercial Medical
Georgetown Square - Grand Chute, WI	5/1/2012	$	0	$	2,221	$	0	$	0	$	0	$	2,221
High Pointe Health Campus - Lake Elmo, MN	12/1/2013		0		0		2,243		0		0		2,243
Edgewood Vista - Billings, MT	12/10/2014		0		0		0		2,026		0		2,026
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		0		0		3,087		0		3,087
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		0		0		1,161		0		1,161
Summary of Debt due after Fiscal 2015			0		0		0		0		253,831		253,831
Sub-Total Commercial Medical		$	0	$	2,221	$	2,243	$	6,274	$	253,831	$	264,569

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2011 (continued)

(in thousands)

Property	Maturity Date	Fiscal 2012		Fiscal 2013		Fiscal 2014		Fiscal 2015		Thereafter		Total(1)

Commercial Industrial
Eagan 2785 & 2795 Highway 55 - Eagan, MN 4	6/1/2011	$	3,624	$	0	$	0	$	0	$	0	$	3,624
Stone Container - Roseville, MN	2/1/2012		3,743		0		0		0		0		3,743
Minnetonka 13600 County Road 62 - Minnetonka, MN	2/27/2012		2,412		0		0		0		0		2,412
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013		0		7,296		0		0		0		7,296
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		0		3,890		0		0		0		3,890
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		0		5,721		0		0		0		5,721
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		0		1,186		0		0		1,186
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		0		2,389		0		0		2,389
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		0		2,810		0		0		2,810
Clive 2075 NW 94th St - Clive, IA	9/30/2014		0		0		0		2,250		0		2,250
Metal Improvement Company - New Brighton, MN	9/30/2014		0		0		0		1,557		0		1,557
Winsted Industrial Building	9/30/2014		0		0		0		411		0		411
Summary of Debt due after Fiscal 2015			0		0		0		0		24,067		24,067
Sub-Total Commercial Industrial		$	9,779	$	16,907	$	6,385	$	4,218	$	24,067	$	61,356

Commercial Retail
Burnsville I Strip Center - Burnsville, MN	6/30/2013	$	0	$	0	$	461	$	0	$	0	$	461
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		0		366		0		0		366
St Cloud Westgate - St Cloud, MN	10/10/2013		0		0		3,373		0		0		3,373
Livingston Pamida - Livingston, MT	12/19/2013		0		0		1,195		0		0		1,195
Eagan I Retail Center - Eagan, MN	12/22/2013		0		0		1,399		0		0		1,399
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		0		4,473		0		0		4,473
Pine City C-Store - Pine City, MN	4/20/2014		0		0		310		0		0		310
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		1,906		0		0		1,906
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		0		0		2,692		0		2,692
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		0		0		1,058		0		1,058
Fargo Express Center - Fargo, ND	10/1/2014		0		0		0		1,041		0		1,041
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		0		0		1,036		0		1,036
Summary of Debt due after Fiscal 2015			0		0		0		0		32,636		32,636
Sub-Total Commercial Retail		$	0	$	0	$	13,483	$	5,827	$	32,636	$	51,946

Total		$	31,283	$	22,151	$	45,965	$	76,444	$	817,960	$	993,803

Mortgage debt does not include the Company’s multi-bank line of credit and two loans financed with Recovery Zone Facility Bonds. The line of credit has a maturity date of August 11, 2013; as of April 30, 2011, the Company had borrowings of $30,000 outstanding under this line. The two loans financed with Recovery Zone Facility Bonds mature on June 1, 2031 and July 1, 2036; the principal amounts of these loans are $2.0 million and $5.2 million, respectively.

(1)	Totals are principal balances as of April 30, 2011.

(2)	Application issued for refinance; we now intend, however, to pay off this loan in full at maturity.

(3)	A loan extension agreement has been signed with the lender for 90 days, maturity now 10/1/2011. A new lending commitment has been issued by a new lender to pay off this loan in the 2nd quarter of Fiscal 2012.

(4)	Payoff statement issued as of April 30, 2011; loan was paid off on June 1, 2011.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	04/30/2011		01/31/2011		10/31/2010		07/31/2010		04/30/2010
Equity Capitalization
Common shares outstanding		80,523		79,846		79,092		78,158		75,805
Operating partnership (OP) units outstanding		20,068		20,047		19,994		20,273		20,522
Total common shares and OP units outstanding		100,591		99,893		99,086		98,431		96,327
Market price per common share (closing price at end of period)	$	9.41	$	8.94	$	8.80	$	8.47	$	8.73
Equity capitalization-common shares and OP units	$	946,561	$	893,043	$	871,957	$	833,711	$	840,935
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	973,878	$	920,360	$	899,274	$	861,028	$	868,252

Debt Capitalization
Total mortgage debt	$	993,803	$	998,929	$	1,004,532	$	1,063,414	$	1,057,619
Total capitalization	$	1,967,681	$	1,919,289	$	1,903,806	$	1,924,442	$	1,925,871

Total debt to total capitalization	0.51:1		0.52:1		0.53:1		0.55:1		0.55:1

	Twelve Months Ended						Three Months Ended
	04/30/2011			04/30/2010			04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
Earnings to fixed charges(1)		1.07	x		1.07	x		1.03	x		1.03	x		1.10	x		1.12	x		1.06	x
Earnings to combined fixed charges and preferred distributions(1)		1.03	x		1.04	x		0.99	x		1.00	x		1.06	x		1.08	x		1.03	x
Debt service coverage ratio(1)		1.40	x		1.37	x		1.37	x		1.37	x		1.40	x		1.44	x		1.39	x

Distribution Data
Common shares and units outstanding at record date		100,101			94,844			100,101			99,213			98,726			96,506			94,844
Total common distribution paid	$	67,664			61,346		$	17,167		$	17,015		$	16,931		$	16,551		$	16,267
Common distribution per share and unit	$	.6860			.6845		$	.1715		$	.1715		$	.1715		$	.1715		$	.1715
Payout ratio (FFO per share and unit basis)(1)		108.9	%		99.2	%		114.3	%		122.5	%		100.9	%		100.9	%		100.9	%

(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 April 30,							Twelve Months Ended April 30,
Segment	2011		2010		% Change			2011		2010		% Change
Multi-Family Residential	$	8,270	$	7,958		3.9	%	$	32,467	$	34,474		(5.8	%)
Commercial Office		9,585		11,119		(13.8	%)		41,187		45,304		(9.1	%)
Commercial Medical		9,462		9,655		(2.0	%)		39,518		38,524		2.6	%
Commercial Industrial		1,894		2,261		(16.2	%)		8,216		8,767		(6.3	%)
Commercial Retail		1,778		2,133		(16.6	%)		8,476		8,602		(1.5	%)
	$	30,989	$	33,126		(6.5	%)	$	129,864	$	135,671		(4.3	%)

(1)	For Three and Twelve Months Ended April 30, 2011, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN; Northern Valley Apartments, Rochester, MN; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132. Occupancy % for April 30, 2011 is 91.7%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for April 30, 2011 is 99.4%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND.

Total square footage, 375,847. Occupancy % for April 30, 2011 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 April 30, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for April 30, 2011 is 53.6%.

For Three and Twelve Months Ended April 30, 2010, stabilized properties excluded:

Multi-Family Residential -

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

Total number of units, 64. Occupancy % for April 30, 2010 is 95.3%.

Commercial Office -

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

Total square footage, 80,322. Occupancy % for April 30, 2010 is 51.0%.

Commercial Medical -

Total square footage, 264,335. Occupancy % for April 30, 2010 is 90.4%.

Commercial Industrial -

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

Total square footage, 42,510. Occupancy % for April 30, 2010 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,007			18,359			13,314			3,072			3,058		$	0		$	54,810
Non-Stabilized		235			549			3,187			203			140			0			4,314
Total		17,242			18,908			16,501			3,275			3,198			0			59,124

Real estate expenses
Stabilized(1)		8,737			8,774			3,852			1,178			1,280			0			23,821
Non-Stabilized		145			199			2,051			27			26			0			2,448
Total		8,882			8,973			5,903			1,205			1,306			0			26,269

Stabilized(1)		8,270			9,585			9,462			1,894			1,778			0			30,989
Non-Stabilized		90			350			1,136			176			114			0			1,866
Net operating income	$	8,360			9,935			10,598			2,070			1,892		$	0		$	32,855

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,493	)		(5,560	)		(4,158	)		(832	)		(810	)	$	(94	)	$	(14,947	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,685	)		(1,685	)
Other expenses		0			0			0			0			0			(417	)		(417	)
Interest expense		(4,118	)		(5,222	)		(4,051	)		(974	)		(793	)		(468	)		(15,626	)
Interest and other income		0			0			0			0			0			130			130
Net income (loss)		749			(847	)		2,389			264			289			(2,534	)		310
Net loss attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			36			36
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			98			98
Net income (loss) attributable to Investors Real Estate Trust		749			(847	)		2,389			264			289			(2,400	)		444
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	749			(847	)		2,389			264			289		$	(2,993	)	$	(149	)

(1)	For Three Months Ended April 30, 2011, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN; Northern Valley Apartments, Rochester, MN; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132. Occupancy % for April 30, 2011 is 91.7%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for April 30, 2011 is 99.4%.

Commercial Medical -

Total square footage, 375,847. Occupancy % for April 30, 2011 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 April 30, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for April 30, 2011 is 53.6%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2010
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	16,207			20,125			13,507			3,197			3,444		$	0		$	56,480
Non-Stabilized		61			2			2,775			92			0			0			2,930
Total		16,268			20,127			16,282			3,289			3,444			0			59,410

Real estate expenses
Stabilized(1)		8,249			9,006			3,852			936			1,311			0			23,354
Non-Stabilized		12			76			1,915			24			1			0			2,028
Total		8,261			9,082			5,767			960			1,312			0			25,382

Net Operating Income (NOI)
Stabilized(1)		7,958			11,119			9,655			2,261			2,133			0			33,126
Non-Stabilized		49			(74	)		860			68			(1	)		0			902
Net operating income	$	8,007			11,045			10,515			2,329			2,132		$	0		$	34,028

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,336	)		(5,542	)		(3,878	)		(918	)		(729	)	$	(88	)	$	(14,491	)
Administrative, advisory and trustee services		0			0			0			0			0			(1,443	)		(1,443	)
Other expenses		0			0			0			0			0			(1,045	)		(1,045	)
Interest expense		(4,296	)		(5,601	)		(4,600	)		(1,004	)		(797	)		(61	)		(16,359	)
Interest and other income		0			0			0			0			0			391			391
Income (loss) from continuing operations		375			(98	)		2,037			407			606			(2,246	)		1,081
Income (loss) from discontinued operations		407			0			3			(8	)		(31	)		0			371
Net income (loss)		782			(98	)		2,040			399			575			(2,246	)		1,452
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(181	)		(181	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(24	)		(24	)
Net income (loss) attributable to Investors Real Estate Trust		782			(98	)		2,040			399			575			(2,451	)		1,247
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	782			(98	)		2,040			399			575		$	(3,044	)	$	654

(1)	For Three Months ended April 30, 2010, stabilized properties excluded:

Multi-Family Residential -

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

Total number of units, 64. Occupancy % for April 30, 2010 is 95.3%.

Commercial Office -

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

Total square footage, 80,322. Occupancy % for April 30, 2010 is 51.0%.

Commercial Medical -

Total square footage, 264,335. Occupancy % for April 30, 2010 is 90.4%.

Commercial Industrial -

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

Total square footage, 42,510. Occupancy % for April 30, 2010 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	66,235			76,820			54,128			12,432			13,375		$	0		$	222,990
Non-Stabilized		603			927			11,920			733			234			0			14,417
Total		66,838			77,747			66,048			13,165			13,609			0			237,407

Real estate expenses
Stabilized(1)		33,768			35,633			14,610			4,216			4,899			0			93,126
Non-Stabilized		361			422			7,856			112			46			0			8,797
Total		34,129			36,055			22,466			4,328			4,945			0			101,923

Stabilized(1)		32,467			41,187			39,518			8,216			8,476			0			129,864
Non-Stabilized		242			505			4,064			621			188			0			5,620
Net operating income	$	32,709			41,692			43,582			8,837			8,664		$	0		$	135,484

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(13,609	)		(21,878	)		(16,016	)		(3,512	)		(3,137	)	$	(376	)	$	(58,528	)
Administrative, advisory and trustee fees		0			0			0			0			0			(7,222	)		(7,222	)
Other expenses		0			0			0			0			0			(1,774	)		(1,774	)
Interest expense		(16,942	)		(21,732	)		(17,089	)		(3,968	)		(3,246	)		(1,044	)		(64,021	)
Interest and other income		0			0			0			0			0			541			541
Income (loss) from continuing operations		2,158			(1,918	)		10,477			1,357			2,281			(9,875	)		4,480
Income (loss) from discontinued operations		19,224			0			(8	)		726			(71	)		0			19,871
Net income (loss)		21,382			(1,918	)		10,469			2,083			2,210			(9,875	)		24,351
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(4,449	)		(4,449	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			180			180
Net income (loss) attributable to Investors Real Estate Trust		21,382			(1,918	)		10,469			2,083			2,210			(14,144	)		20,082
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	21,382			(1,918	)		10,469			2,083			2,210		$	(16,516	)	$	17,710

(1)	For Twelve Months Ended April 30, 2011, stabilized properties excluded:

Multi-Family Residential -

Crown Apartments, Rochester, MN; Northern Valley Apartments, Rochester, MN; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132. Occupancy % for April 30, 2011 is 91.7%.

Commercial Office -

IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for April 30, 2011 is 99.4%.

Commercial Medical -

Total square footage, 375,847. Occupancy % for April 30, 2011 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 April 30, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for April 30, 2011 is 53.6%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2010
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	65,417			81,942			53,653			12,817			13,420		$	0		$	227,249
Non-Stabilized		61			137			3,786			278			0			0			4,262
Total		65,478			82,079			57,439			13,095			13,420			0			231,511

Real estate expenses
Stabilized(1)		32,603			36,638			15,129			4,050			4,818			0			93,238
Non-Stabilized		12			195			2,775			71			0			0			3,053
Total		32,615			36,833			17,904			4,121			4,818			0			96,291

Gain on involuntary conversion
Stabilized		1,660			0			0			0			0			0			1,660
Total		1,660			0			0			0			0			0			1,660

Net Operating Income (NOI)
Stabilized(1)		34,474			45,304			38,524			8,767			8,602			0			135,671
Non-Stabilized		49			(58	)		1,011			207			0			0			1,209
Net operating income	$	34,523			45,246			39,535			8,974			8,602		$	0		$	136,880

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(13,110	)		(22,319	)		(14,721	)		(3,667	)		(3,156	)	$	(482	)	$	(57,455	)
Administrative, advisory and trustee services		0			0			0			0			0			(6,218	)		(6,218	)
Other expenses		0			0			0			0			0			(2,513	)		(2,513	)
Impairment of real estate investment		0			0			0			0			(708	)		0			(708	)
Interest expense		(16,944	)		(23,181	)		(17,542	)		(4,057	)		(3,480	)		(461	)		(65,665	)
Interest and other income		0			0			0			0			0			894			894
Income (loss) from continuing operations		4,469			(254	)		7,272			1,250			1,258			(8,780	)		5,215
Income (loss) from discontinued operations		437			(169	)		14			(24	)		(888	)		0			(630	)
Net income (loss)		4,906			(423	)		7,286			1,226			370			(8,780	)		4,585
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(562	)		(562	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(22	)		(22	)
Net income (loss) attributable to Investors Real Estate Trust		4,906			(423	)		7,286			1,226			370			(9,364	)		4,001
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	4,906			(423	)		7,286			1,226			370		$	(11,736	)	$	1,629

(1)	For Twelve Months ended April 30, 2010, stabilized properties excluded:

Multi-Family Residential -

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

Total number of units, 64. Occupancy % for April 30, 2010 is 95.3%.

Commercial Office -

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

Total square footage, 80,322. Occupancy % for April 30, 2010 is 51.0%.

Commercial Medical -

Total square footage, 264,335. Occupancy % for April 30, 2010 is 90.4%.

Commercial Industrial -

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

Total square footage, 42,510. Occupancy % for April 30, 2010 is 100.0%.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

4th Quarter Fiscal 2011 vs. 4th Quarter Fiscal 2010

Segments	Stabilized Properties		All Properties
	4th Quarter	4th Quarter	4th Quarter	4th Quarter
	Fiscal 2011	Fiscal 2010	Fiscal 2011	Fiscal 2010
Multi-Family Residential	92.8%	89.7%	92.8%	89.7%
Commercial Office	79.2%	83.9%	79.7%	83.4%
Commercial Medical	95.3%	95.7%	96.0%	95.1%
Commercial Industrial	89.8%	90.6%	90.1%	90.7%
Commercial Retail	82.6%	82.8%	81.6%	82.8%

Stabilized Properties and All Properties Physical Occupancy Bar Chart

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and twelve months ended April 30, 2011

	Three Months Ended April 30, 2011
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			26,841			79,898			106,739			92,119			14,620
Commercial Medical			0			17,016			17,016			9,544			7,472
Commercial Industrial			268,921			6,864			275,785			23,248			252,537
Commercial Retail			8,669			65,181			73,850			19,591			54,259
Total All Segments			304,431			168,959			473,390			144,502			328,888

Weighted Average Rental Rates(3)
Commercial Office		$	8.49		$	12.71		$	11.65		$	13.03		$	(1.38	)		(10.6	%)
Commercial Medical			0.00			21.83			21.83			17.83			4.00			22.4	%
Commercial Industrial			3.17			3.00			3.17			3.65			(0.48	)		(13.2	%)
Commercial Retail			7.96			7.64			7.68			10.15			(2.47	)		(24.3	%)
Total All Segments		$	3.78		$	11.28		$	6.46		$	11.45		$	(4.99	)		(43.6	%)

	Twelve Months Ended April 30, 2011
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			260,331			344,679			605,010			517,365			87,645
Commercial Medical			61,721			55,252			116,973			44,463			72,510
Commercial Industrial			385,040			434,803			819,843			362,652			457,191
Commercial Retail			33,662			227,149			260,811			202,389			58,422
Total All Segments			740,754			1,061,883			1,802,637			1,126,869			675,768

Weighted Average Rental Rates(3)
Commercial Office		$	12.81		$	10.91		$	11.73		$	12.33		$	(0.60	)		(4.9	%)
Commercial Medical			20.83			20.83			20.83			19.13			1.70			8.9	%
Commercial Industrial			4.25			3.06			3.62			3.38			0.24			7.1	%
Commercial Retail			9.71			4.89			5.51			8.65			(3.14	)		(36.3	%)
Total All Segments		$	8.89		$	6.93		$	7.73		$	9.06		$	(1.33	)		(14.7	%)

	Three Months Ended April 30, 2011						Twelve Months Ended April 30, 2011
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased(4)
Commercial Office		3.6		3.5		3.5		6.3		3.9		5.0
Commercial Medical		0.0		5.3		5.3		7.0		6.7		6.3
Commercial Industrial		6.0		3.0		5.3		4.8		3.3		4.0
Commercial Retail		2.8		2.6		2.7		2.9		2.7		2.7
Total All Segments		3.9		3.4		3.5		5.5		3.8		4.4

(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.

(4) Term in years.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING COMMITTMENTS

for the three and twelve months ended April 30, 2011

	4th Quarter Fiscal 2011 Total						Fiscal Year 2011 Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	101,952	$	158,288	$	260,240	$	2,007,620	$	826,922	$	2,834,542
Commercial Medical		0		250,350		250,350		446,508		542,460		988,968
Commercial Industrial		1,127,356		0		1,127,356		1,190,756		72,000		1,262,756
Commercial Retail		38,202		0		38,202		58,865		10,000		68,865
Subtotal	$	1,267,510	$	408,638	$	1,676,148	$	3,703,749	$	1,451,382	$	5,155,131

Tenant Improvements per square foot
Commercial Office	$	3.80	$	1.98	$	2.44	$	7.71	$	2.40	$	4.69
Commercial Medical		0.00		14.71		14.71		7.23		9.82		8.45
Commercial Industrial		4.19		0.00		4.09		3.09		0.17		1.54
Commercial Retail		4.41		0.00		0.52		1.75		0.04		0.26
All Segments	$	4.16	$	2.42	$	3.54	$	5.00	$	1.37	$	2.86

Leasing Costs
Commercial Office	$	100,501	$	209,101	$	309,602	$	2,671,753	$	1,380,957	$	4,052,710
Commercial Medical		0		63,105		63,105		113,494		222,648		336,142
Commercial Industrial		631,555		1,853		633,408		700,076		157,667		857,743
Commercial Retail		12,288		28,783		41,071		95,780		107,945		203,725
Subtotal	$	744,344	$	302,842	$	1,047,186	$	3,581,103	$	1,869,217	$	5,450,320

Leasing Costs per square foot
Commercial Office	$	3.74	$	2.62	$	2.90	$	10.26	$	4.01	$	6.70
Commercial Medical		0.00		3.71		3.71		1.84		4.03		2.87
Commercial Industrial		2.35		0.27		2.30		1.82		0.36		1.05
Commercial Retail		1.42		0.44		0.56		2.85		0.48		0.78
All Segments	$	2.45	$	1.79	$	2.21	$	4.83	$	1.76	$	3.02

Tenant Improvements and Leasing Costs
Commercial Office	$	202,453	$	367,389	$	569,842	$	4,679,373	$	2,207,879	$	6,887,252
Commercial Medical		0		313,455		313,455		560,002		765,108		1,325,110
Commercial Industrial		1,758,911		1,853		1,760,764		1,890,832		229,667		2,120,499
Commercial Retail		50,490		28,783		79,273		154,645		117,945		272,590
Total	$	2,011,854	$	711,480	$	2,723,334	$	7,284,852	$	3,320,599	$	10,605,451

Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	7.54	$	4.60	$	5.34	$	17.97	$	6.41	$	11.38
Commercial Medical		0.00		18.42		18.42		9.07		13.85		11.33
Commercial Industrial		6.54		0.27		6.38		4.91		0.53		2.59
Commercial Retail		5.82		0.44		1.07		4.59		0.52		1.05
All Segments	$	6.61	$	4.21	$	5.75	$	9.83	$	3.13	$	5.88

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	04/30/2011			01/31/2011			10/31/2010			07/31/2010			04/30/2010
Number of Units		8,661			8,593			8,590			8,590			8,590
Average Investment Per Unit
Stabilized	$	55,835		$	55,783		$	55,477		$	55,197		$	54,934
Non-Stabilized		64,636			66,955			66,818			66,736			66,719
	$	55,969		$	55,866		$	55,561		$	55,283		$	54,963

Average Scheduled Rent(1) per Unit
Stabilized	$	697		$	697		$	698		$	696		$	694
Non-Stabilized		660			764			772			758			1,017
	$	697		$	697		$	699		$	696		$	695

Total Receipts per Unit
Stabilized	$	665		$	655		$	642		$	627		$	634
Non-Stabilized		592			626			673			618			961
	$	664		$	655		$	642		$	627		$	634

Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	144		$	145		$	166		$	132		$	124
Non-Stabilized		149			278			25			0			0
	$	144		$	146		$	165		$	131		$	123

Physical Occupancy%
Stabilized		92.8	%		91.2	%		90.6	%		85.7	%		89.7	%
Non-Stabilized		91.7	%		79.7	%		89.1	%		90.6	%		95.3	%
		92.8	%		91.1	%		90.6	%		85.8	%		89.7	%

Operating Expenses as a % of Scheduled Rent
Stabilized		49.3	%		49.7	%		46.0	%		44.9	%		46.4	%
Non-Stabilized		55.0	%		50.8	%		52.3	%		43.8	%		18.9	%
Total		49.4	%		49.7	%		46.1	%		44.9	%		46.3	%

(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 April 30, 2011

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	20	209	10.8%	1,040,649	9.9%
St. Lukes Hospital of Duluth, Inc.	6	57	3.5%	198,775	1.9%
Fairview Health Services	9	61	3.1%	225,142	2.1%
Applied Underwriters	3	70	2.3%	141,724	1.3%
Affiliates of Siemens USA	2	10	2.1%	186,224	1.8%
HealthEast Care System	1	94	1.7%	114,316	1.1%
Microsoft (NASDAQ: MSFT)	1	28	1.4%	122,040	1.1%
Smurfit - Stone Container (NASDAQ: SSCC)	2	55	1.4%	406,397	3.9%
Nebraska Orthopedic Hospital	1	215	1.3%	61,758	0.6%
Arcadis Corporate Services, Inc.	1	63	1.2%	71,430	0.7%
Total/Weighted Average		98	28.8%	2,568,455	24.4%

(1)	See Definitions on page 27.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of April 30, 2011

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Rent
Commercial Office
2012		65		746,038		18.7	%	$	10,185,042	$	13.65		18.3	%
2013		44		514,058		12.9	%		6,869,073		13.36		12.3	%
2014		49		615,221		15.5	%		8,054,199		13.09		14.4	%
2015		51		407,274		10.2	%		5,965,225		14.65		10.7	%
2016		35		427,007		10.7	%		6,325,005		14.81		11.4	%
2017 and thereafter		43		1,275,326		32.0	%		18,301,072		14.35		32.9	%
		287		3,984,924		100.0	%	$	55,699,616	$	13.98		100.0	%

Commercial Medical
2012		31		108,989		4.2	%	$	2,255,996	$	20.70		4.8	%
2013		20		109,006		4.2	%		2,413,567		22.14		5.1	%
2014		28		393,484		15.2	%		7,166,881		18.21		15.2	%
2015		11		54,310		2.1	%		1,313,691		24.19		2.8	%
2016		24		176,299		6.8	%		3,560,309		20.19		7.6	%
2017 and thereafter		75		1,753,204		67.5	%		30,390,243		17.33		64.5	%
		189		2,595,292		100.0	%	$	47,100,687	$	18.15		100.0	%

Commercial Industrial
2012		10		860,779		32.1	%	$	2,322,048	$	2.70		22.6	%
2013		3		154,685		5.8	%		720,993		4.66		7.0	%
2014		8		234,078		8.7	%		939,610		4.01		9.2	%
2015		3		116,685		4.4	%		541,457		4.64		5.3	%
2016		7		663,238		24.8	%		2,834,134		4.27		27.6	%
2017 and thereafter		9		648,015		24.2	%		2,909,144		4.49		28.3	%
		40		2,677,480		100.0	%	$	10,267,386	$	3.83		100.0	%

Commercial Retail
2012		48		275,631		24.1	%	$	1,471,496	$	5.34		16.2	%
2013		30		93,938		8.2	%		731,206		7.78		8.0	%
2014		30		112,418		9.8	%		1,058,979		9.42		11.6	%
2015		25		267,601		23.4	%		2,010,873		7.51		22.1	%
2016		19		87,535		7.7	%		1,034,619		11.82		11.4	%
2017 and thereafter		19		306,528		26.8	%		2,796,466		9.12		30.7	%
		171		1,143,651		100.0	%	$	9,103,639	$	7.96		100.0	%

Commercial Total
2012		154		1,991,437		19.2	%	$	16,234,582	$	8.15		13.3	%
2013		97		871,687		8.4	%		10,734,839		12.32		8.8	%
2014		115		1,355,201		13.0	%		17,219,669		12.71		14.1	%
2015		90		845,870		8.1	%		9,831,246		11.62		8.0	%
2016		85		1,354,079		13.0	%		13,754,067		10.16		11.3	%
2017 and thereafter		146		3,983,073		38.3	%		54,396,952		13.66		44.5	%
		687		10,401,347		100.0	%	$	122,171,328	$	11.75		100.0	%

* Annualized Rent is monthly scheduled rent as of April 30, 2011 (cash basis), multiplied by 12.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 ACQUISITION SUMMARY

as of April 30, 2011

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			April 30, 2011 Leased Percentage			Acquisition Cost

Fargo 1320 45th Street N(1)	Fargo, ND	Commercial Industrial	June 22, 2010		42,244		100.0	%		100.0	%	$	1,634
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
Edgewood Vista-Minot	Minot, ND	Commercial Medical	November 10, 2010		108,503		100.0	%		100.0	%		15,181
Minot 1400 31st Avenue	Minot, ND	Commercial Retail	December 10, 2010		47,709		100.0	%		53.6	%		8,250
Omaha 10802 Farnum Drive	Omaha, NE	Commercial Office	December 16, 2010		58,574		100.0	%		98.6	%		8,295
Edgewood Vista-Spearfish(2)	Spearfish, SD	Commercial Medical	January 10, 2011		23,965		100.0	%		100.0	%		2,777
North Point 2	Bismarck, ND	Multi-Family Residential	February 3, 2011		24		95.8	%		91.7	%		1,872
Sierra Vista	Sioux Falls, SD	Multi-Family Residential	February 28, 2011		44		86.4	%		88.6	%		2,338
			Total Square Feet		310,340							$	45,592
			Total Units		68

(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 April 30, 2011 of $3.9 million.

(2)	Expansion project placed in service January 10, 2011. Approximately $497,000 of this cost was incurred in the three months ended April 30, 2011.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 DEVELOPMENT SUMMARY

as of April 30, 2011

($’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
Multi-Family Conversion - Minot, ND	Convert 15,446 sf. commercial office to 24 multi-family residential units		0	%		2,200		280	4th Quarter Fiscal 2012
Buffalo Mall Theaters - Jamestown, ND	19,037 sf.		100	%		2,100		1,533	1st Quarter Fiscal 2012
Georgetown Square Condos - Grand Chute, WI	8 condo units		0	%	NA			1,776	2nd Quarter Fiscal 2012
Trinity Hospital Build-to-Suit, Minot, ND	24,544 sf. one story medical clinic		100	%		7,380		4,750	2nd Quarter Fiscal 2012
Quarry Ridge II Apartments, Rochester, MN	159 unit apartment building		0	%		19,400		1,354	2nd Quarter Fiscal 2013
		Total			$	31,080	$	9,693

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Definitions

April 30, 2011

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 expenditures typically include appliances, carpeting and flooring, and kitchen/bath cabinets.

Scheduled rent revenue is the total possible revenue from all leasable units and square footage, with occupied space valued at contract rates pursuant to leases and vacant units or square footage at market rates.

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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