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

Attached files

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8-K - IRET FORM 8-K CURRENT REPORT - CENTERSPACE	iretform8k-03122012.htm
EX-99.1 - EARNINGS RELEASE - CENTERSPACE	iretexhibit991-03122012.htm

Exhibit 99.2

Third Quarter Fiscal 2012

Supplemental Operating and Financial Data

for the Quarter Ended January 31, 2012


CONTACT: Lindsey Knoop-Anderson Director of Investor Relations Direct Dial: 701-837-4738 E-Mail: landerson@iret.com				1400 31st Avenue SW, Suite 60 Minot, ND 58701 Tel: 701.837.4738 Fax: 701.838.7785 www.iret.com

Supplemental Financial and Operating Data

Table of Contents

January 31, 2012

	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 January 31, 2012	24

Growth and Strategy
Fiscal 2012 Acquisition Summary	25
Fiscal 2012 Development Summary	26

Definitions	27

Table of Contents

Company Background and Highlights

Third Quarter Fiscal 2012

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 third quarter of fiscal year 2012, the Company closed on its acquisition of a 36-unit multi-family residential property in Isanti, Minnesota, on approximately 1.7 acres of land, and an adjoining 4.9 acre parcel of vacant land, for a purchase price of approximately $3.5 million, of which $3.0 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $495,000. This property is located next to the Company’s existing 36-unit Evergreen Apartments in Isanti, Minnesota. Also during the third quarter of fiscal year 2012, the Company substantially completed construction of an additional approximately 28 assisted living units and 16 memory care units at its existing Meadow Wind senior housing facility in Casper, Wyoming. The Company estimates that construction costs for this expansion project will total approximately $4.7 million. As of January 31, 2012, the Company had incurred approximately $3.8 million of these project costs. The Company had no dispositions of real estate in the third quarter of fiscal year 2012.

The Company’s revenues in the third quarter of fiscal year 2012 continued to be affected by decreased occupancy levels in its commercial office segment, in comparison with the year-earlier period. Despite some signs of economic recovery and renewed commercial leasing interest, the Company believes the continued elevated vacancy in its commercial office segment reflects continuing challenging and uncertain economic conditions in certain of the Company’s markets. IRET’s multi-family residential portfolio continued to improve in occupancy and real estate revenue compared to the year-earlier period, although physical occupancy declined slightly in the third quarter of fiscal year 2012 compared to the immediately preceding quarter, due to lower leasing activity in the winter months

The Company has a currently-effective shelf registration statement under which it has registered common and preferred shares of beneficial interest with an aggregate public offering price of up to $150.0 million. On January 20, 2012, the Company entered into a continuous equity offering program under this shelf registration statement with BMO Capital Markets Corp. (“BMO”) as sales agent, pursuant to which the Company may from time to time offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $100 million. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET. During the third quarter of fiscal year 2012, IRET issued approximately 366,000 common shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $2.7 million. During the third quarter of fiscal year 2011, IRET sold no shares under its previous continuous equity offering program with Robert W. Baird & Co., Incorporated as sales agent. The shelf registration statement under which the Company had reserved shares for issuance under this previous continuous equity offering program expired at the end of its three-year life during the second quarter of fiscal year 2012.

As we have previously reported, Minot, North Dakota, where our corporate headquarters is located, experienced significant flooding in June 2011, resulting in extensive damage to our Arrowhead Shopping Center and Chateau Apartments. Costs related to clean-up, redevelopment and loss of rents are being reimbursed to the Company by its insurance carrier, less the Company’s deductible of $200,000 under the policy. As of January 31, 2012, the Company had received $5.3 million of insurance proceeds for clean-up costs and re-development and approximately $246,000 reimbursement for business interruption (loss of rents); additional reimbursement for business interruption in an amount totaling $328,000 is expected to be added back as income to the extent that insurance proceeds are received and gain contingencies are resolved, in accordance with U.S. GAAP. Arrowhead Shopping Center is currently in various stages of re-leasing. One of the two buildings of the Chateau Apartments property is expected to be available for leasing in the first quarter of fiscal year 2013. The other building, which had been undergoing restoration work following the flood, was destroyed by fire subsequent to the end of the third quarter of fiscal year 2012, on February 22, 2012. The Company expects to rebuild the destroyed building but has no firm estimates at this time for costs or expected completion date of such rebuilding. The property is insured and the Company expects its losses to be covered under the insurance policy, subject to a deductible of $200,000. The Company is currently unable to estimate whether and to what extent there may be a gain or loss on involuntary conversion due to this fire. In regard to the Arrowhead Shopping Center property, the Company currently estimates that a gain on involuntary conversion of approximately $1.7 million will be reported in a future quarter, once all flood-related costs have been reimbursed; however, this amount is an estimate only and is subject to revision as reimbursements are received and recognized.

In the third quarter of fiscal year 2012, IRET paid its 163rd consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on January 16, 2012. Subsequent to the end of the second quarter of fiscal year 2012, the Company declared a quarterly distribution of $0.1300 per share and unit payable on April 2, 2012 to shareholder and unitholders of record on March 19, 2012. The Board of Trustees also declared a quarterly distribution of $0.5156 per share on the Company’s Series A preferred shares, payable April 2, 2012 to preferred shareholders of record on March 19, 2012.

As of January 31, 2012, IRET owns a diversified portfolio of 265 properties consisting of 81 multi-family residential properties, 68 commercial office properties, 65 commercial medical properties (including senior housing), 19 commercial industrial properties and 32 commercial retail properties. IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ: IRET).

Table of Contents

Company Snapshot

(as of January 31, 2012)

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	265
Total Square Feet
(commercial properties)	12.3 million
Total Units
(multi-family residential properties)	8,921
Common Shares Outstanding (thousands)	85,744
Limited Partnership Units Outstanding (thousands)	19,596
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	7.0%
Total Capitalization (see p. 13 for detail)	$1.8 billion

Investor Information

Board of Trustees

Jeffrey L. Miller	Trustee and Chairman
Stephen L. Stenehjem	Trustee and Vice Chairman
John D. Stewart	Trustee, Chair of Audit Committee
John T. Reed	Trustee, Chair of Nominating and Governance Committee
W. David Scott	Trustee, Chair of Compensation Committee
Jeffrey K. Woodbury	Trustee
Linda Hall Keller	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

Corporate Headquarters:

1400 31st Avenue SW, Suite 60

Minot, North Dakota 58701

Trading Symbol: IRET

Stock Exchange Listing: NASDAQ

Investor Relations:

Lindsey Knoop-Anderson

landerson@iret.com

Table of Contents

Common Share Data (NASDAQ: IRET)

	3rd Quarter Fiscal Year 2012			2nd Quarter Fiscal Year 2012			1st Quarter Fiscal Year 2012			4th Quarter Fiscal Year 2011			3rd Quarter Fiscal Year 2011
High Closing Price	$	7.64		$	8.12		$	9.69		$	9.54		$	9.26
Low Closing Price	$	6.89		$	6.92		$	8.07		$	8.92		$	8.74
Average Closing Price	$	7.27		$	7.46		$	8.87		$	9.24		$	8.99
Closing Price at end of quarter	$	7.42		$	7.41		$	8.13		$	9.41		$	8.94
Common Share Distributions—annualized	$	0.520		$	0.520		$	0.686		$	0.686		$	0.686
Closing Dividend Yield - annualized		7.0	%		7.0	%		8.4	%		7.3	%		7.7	%
Closing common shares outstanding (thousands)		85,744			83,682			81,259			80,523			79,846
Closing limited partnership units outstanding (thousands)		19,596			19,534			19,958			20,068			20,047
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	781,623		$	764,831		$	822,894		$	946,561		$	893,043

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 2011Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Third Quarter Fiscal 2012 Acquisition


Evergreen II Apartments 403 - 8th Avenue NE Isanti, MN 55040

Table of Contents

Investment Cost by Segment – Third Quarter Fiscal 2012

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)

	01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
ASSETS
Real estate investments
Property owned	$	1,861,321		$	1,844,654		$	1,777,485		$	1,770,798		$	1,763,585
Less accumulated depreciation		(364,190	)		(351,174	)		(339,293	)		(328,952	)		(319,235	)
		1,497,131			1,493,480			1,438,192			1,441,846			1,444,350
Development in progress		22,281			14,124			12,697			9,693			4,231
Unimproved land		6,390			6,558			6,550			6,550			7,470
Mortgage loans receivable, net of allowance		0			155			156			156			157
Total real estate investments		1,525,802			1,514,317			1,457,595			1,458,245			1,456,208
Other assets
Cash and cash equivalents		35,502			32,697			37,307			41,191			30,907
Marketable securities – available-for-sale		633			628			627			625			325
Receivable arising from straight-lining of rents, net of allowance		21,965			20,905			19,331			18,933			18,656
Accounts receivable, net of allowance		3,977			8,243			7,935			5,646			8,864
Real estate deposits		578			451			458			329			254
Prepaid and other assets		4,107			1,718			1,997			2,351			2,852
Intangible assets, net of accumulated amortization		49,055			50,322			48,108			49,832			51,543
Tax, insurance, and other escrow		11,427			11,315			15,198			15,268			18,467
Property and equipment, net of accumulated depreciation		1,464			1,986			1,687			1,704			1,332
Goodwill		1,120			1,127			1,127			1,127			1,127
Deferred charges and leasing costs, net of accumulated amortization		22,014			21,255			20,304			20,112			19,737
TOTAL ASSETS	$	1,677,644		$	1,664,964		$	1,611,674		$	1,615,363		$	1,610,272

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	43,439		$	39,002		$	34,547		$	37,879		$	35,633
Revolving lines of credit		49,000			47,000			34,000			30,000			10,000
Mortgages payable		1,038,717			1,039,625			1,002,962			993,803			998,929
Other		6,326			1,164			6,369			8,404			8,423
TOTAL LIABILITIES		1,137,482			1,126,791			1,077,878			1,070,086			1,052,985

REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		0			1,005			1,263			987			1,237
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		657,304			643,022			627,722			621,936			616,701
Accumulated distributions in excess of net income		(269,942	)		(260,535	)		(250,585	)		(237,563	)		(223,684	)
Total Investors Real Estate Trust shareholders’ equity		414,679			409,804			404,454			411,690			420,334
Noncontrolling interests – Operating Partnership		114,852			116,550			119,382			123,627			126,335
Noncontrolling interests – consolidated real estate entities		10,631			10,814			8,697			8,973			9,381
Total equity		540,162			537,168			532,533			544,290			556,050
TOTAL LIABILITIES AND EQUITY	$	1,677,644		$	1,664,964		$	1,611,674		$	1,615,363		$	1,610,272

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Nine Months Ended						Three Months Ended
OPERATING RESULTS	1/31/2012			01/31/2011			01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
Real estate revenue	$	181,282		$	178,118		$	61,023		$	60,688		$	59,571		$	59,067		$	60,146
Real estate expenses		75,525			75,644			24,849			25,791			24,885			26,266			27,033
Net operating income		105,757			102,474			36,174			34,897			34,686			32,801			33,113
Depreciation/amortization		(45,105	)		(43,551	)		(15,262	)		(14,953	)		(14,890	)		(14,937	)		(14,581	)
Administrative expenses, advisory and trustee services		(5,944	)		(5,537	)		(1,659	)		(2,104	)		(2,181	)		(1,685	)		(1,850	)
Other expenses		(1,509	)		(1,357	)		(359	)		(835	)		(315	)		(417	)		(441	)
Impairment of real estate investments		(135	)		0			(135	)		0			0			0			0
Interest		(48,756	)		(48,335	)		(16,533	)		(16,317	)		(15,906	)		(15,606	)		(15,868	)
Interest and other income		661			411			295			213			153			130			107
Income from continuing operations		4,969			4,105			2,521			901			1,547			286			480
Income from discontinued operations		616			19,936			0			590			26			24			14,108
Net income	$	5,585		$	24,041		$	2,521		$	1,491		$	1,573		$	310		$	14,588

Net (income) loss attributable to noncontrolling interest – Operating Partnership		(723	)		(4,485	)		(351	)		(194	)		(178	)		36			(2,793	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(29	)		82			(43	)		(12	)		26			98			38
Net income attributable to Investors Real Estate Trust		4,833			19,638			2,127			1,285			1,421			444			11,833
Dividends to preferred shareholders		(1,779	)		(1,779	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	3,054		$	17,859		$	1,534		$	692		$	828		$	(149	)	$	11,240

Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.03		$	.03		$	.02		$	.00		$	.01		$	(.01	)	$	.00
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.01			.20			.00			.01			.00			.00			.14
Net income (loss) per common share – basic & diluted	$	.04		$	.23		$	.02		$	.01		$	.01		$	(.01	)	$	.14

Percentage of Revenues
Real estate expenses		41.7	%		42.5	%		40.7	%		42.5	%		41.8	%		44.5	%		44.9	%
Depreciation/amortization		24.9	%		24.5	%		25.0	%		24.6	%		25.0	%		25.3	%		24.2	%
General and administrative		3.3	%		3.1	%		2.7	%		3.5	%		3.7	%		2.9	%		3.1	%
Interest		26.9	%		27.1	%		27.1	%		26.9	%		26.7	%		26.4	%		26.4	%
Net income		3.1	%		13.5	%		4.1	%		2.5	%		2.6	%		0.5	%		24.3	%

Ratios
EBITDA(1)/Interest expense		2.03	x		1.99	x		2.07	x		1.97	x		2.03	x		1.98	x		1.97	x
EBITDA/Interest expense plus preferred distributions		1.96	x		1.92	x		2.00	x		1.90	x		1.96	x		1.91	x		1.90	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)

	Nine Months Ended						Three Months Ended
	01/31/2012			01/31/2011			01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	4,833		$	19,638		$	2,127		$	1,285		$	1,421		$	444		$	11,833
Less dividends to preferred shareholders		(1,779	)		(1,779	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		3,054			17,859			1,534			692			828			(149	)		11,240
Adjustments:
Noncontrolling interests – Operating Partnership		723			4,485			351			194			178			(36	)		2,793
Depreciation and amortization		44,892			44,525			15,179			14,890			14,823			14,877			14,577
Impairment of real estate investments		135			0			135			0			0			0			0
Gain on depreciable property sales		(589	)		(19,365	)		0			(589	)		0			0			(13,961	)
Funds from operations applicable to common shares and Units	$	48,215		$	47,504		$	17,199		$	15,187		$	15,829		$	14,692		$	14,649

FFO per share and unit - basic and diluted	$	0.47		$	0.48		$	0.16		$	0.15		$	0.16		$	0.15		$	0.14
Weighted average shares and units		102,176			98,311			103,935			101,669			100,844			100,239			99,355

(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)

	Nine Months Ended						Three Months Ended
	01/31/2012			01/31/2011			01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	4,833		$	19,638		$	2,127		$	1,285		$	1,421		$	444		$	11,833
Adjustments:
Noncontrolling interests – Operating Partnership		723			4,485			351			194			178			(36	)		2,793
Income before noncontrolling interests – Operating Partnership		5,556			24,123			2,478			1,479			1,599			408			14,626
Add:
Interest		48,776			49,827			16,533			16,318			15,925			15,626			15,719
Depreciation/amortization related to real estate investments		42,718			42,745			14,359			14,193			14,166			14,246			13,943
Amortization related to non-real estate investments		2,395			1,982			903			758			734			701			689
Amortization related to real estate revenues(2)		111			97			31			29			51			56			44
Less:
Interest income		(115	)		(199	)		(25	)		(37	)		(53	)		(65	)		(75	)
Gain on sale of real estate, land and other investments		(589	)		(19,365	)		0			(589	)		0			0			(13,961	)
EBITDA	$	98,852		$	99,210		$	34,279		$	32,151		$	32,422		$	30,972		$	30,985

(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	$	5,961	$	0	$	5,961		5.80	%		0.6	%
2013		21,682		0		21,682		5.76	%		2.1	%
2014		41,459		744		42,203		6.12	%		4.1	%
2015		76,543		9,750		86,293		5.62	%		8.3	%
2016		72,745		25		72,770		5.91	%		7.0	%
2017		187,621		0		187,621		6.15	%		18.0	%
2018		83,344		0		83,344		5.79	%		8.0	%
2019		100,551		0		100,551		6.08	%		9.7	%
2020		117,432		0		117,432		5.86	%		11.3	%
2021		125,966		0		125,966		5.44	%		12.1	%
Thereafter		194,894		0		194,894		5.70	%		18.8	%
Total maturities	$	1,028,198	$	10,519	$	1,038,717		5.84	%		100.0	%

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

	01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
Balances Outstanding
Mortgage
Fixed rate	$	1,028,198		$	1,033,550		$	996,256		$	992,276		$	997,332
Variable rate		10,519			6,075			6,706			1,527			1,597
Mortgage total		1,038,717			1,039,625			1,002,962			993,803			998,929

Weighted Average Interest Rates
Secured		5.84	%		5.86	%		5.90	%		5.92	%		6.05	%

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JANUARY 31, 2012

(in thousands)

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

Multi-Family Residential
Monticello Village - Monticello, MN	3/1/2013	$	0	$	2,975	$	0	$	0	$	0	$	2,975
Quarry Ridge - Rochester, MN	10/1/2013		0		0		11,943		0		0		11,943
East Park - Sioux Falls, SD	12/1/2013		0		0		1,505		0		0		1,505
Sycamore Village - Sioux Falls, SD	12/1/2013		0		0		847		0		0		847
Candlelight - Fargo, ND	3/1/2014		0		0		1,284		0		0		1,284
Evergreen II - Isanti, MN	11/1/2014		0		0		0		2,194		0		2,194
Summary of Debt due after Fiscal 2015			0		0		0		0		280,383		280,383
Sub-Total Multi-Family Residential		$	0	$	2,975	$	15,579	$	2,194	$	280,383	$	301,131

Commercial Office
Wirth Corporate Center - Golden Valley, MN (2)	4/1/2012	$	3,584	$	0	$	0	$	0	$	0	$	3,584
Great Plains - Fargo, ND	10/1/2013		0		0		2,253		0		0		2,253
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		0		2,579		0		0		2,579
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		0		1,338		0		0		1,338
Viromed - Eden Prairie, MN	4/1/2014		0		0		698		0		0		698
TCA Building - Eagan, MN	5/1/2014		0		0		0		7,646		0		7,646
Brenwood - Hennepin County, MN	7/15/2014		0		0		0		5,250		0		5,250
Burnsville Bluffs II - Burnsville, MN	8/8/2014		0		0		0		1,766		0		1,766
Plymouth IV - Plymouth, MN	8/8/2014		0		0		0		3,257		0		3,257
Plymouth V - Plymouth, MN	8/8/2014		0		0		0		3,806		0		3,806
Plaza VII - Boise, ID	9/1/2014		0		0		0		1,066		0		1,066
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		0		3,451		0		3,451
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		0		10,352		0		10,352
Northgate I - Maple Grove, MN	12/10/2014		0		0		0		5,381		0		5,381
Plymouth I - Plymouth, MN	12/10/2014		0		0		0		1,206		0		1,206
Plymouth II - Plymouth, MN	12/10/2014		0		0		0		1,206		0		1,206
Plymouth III - Plymouth, MN	12/10/2014		0		0		0		1,484		0		1,484
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		0		0		641		0		641
West River Business Park - Waite Park, MN	1/1/2015		0		0		0		641		0		641
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		0		0		8,488		0		8,488
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		0		0		8,248		0		8,248
Summary of Debt due after Fiscal 2015			0		0		0		0		280,006		280,006
Sub-Total Commercial Office		$	3,584	$	0	$	6,868	$	63,889	$	280,006	$	354,347
Commercial Medical
Georgetown Square - Grand Chute, WI	5/1/2012	$	0	$	2,186	$	0	$	0	$	0	$	2,186
High Pointe Health Campus - Lake Elmo, MN (2)	12/1/2013		0		0		1,677		0		0		1,677
Edgewood Vista - Billings, MT	12/10/2014		0		0		0		1,983		0		1,983
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		0		0		3,020		0		3,020
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		0		0		1,136		0		1,136
Summary of Debt due after Fiscal 2015			0		0		0		0		267,472		267,472
Sub-Total Commercial Medical		$	0	$	2,186	$	1,677	$	6,139	$	267,472	$	277,474

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JANUARY 31, 2012 (continued)

(in thousands)

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

Commercial Industrial
Minnetonka 13600 County Road 62 - Minnetonka, MN (3)	2/27/2012	$	2,377	$	0	$	0	$	0	$	0	$	2,377
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013		0		7,097		0		0		0		7,097
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		0		3,814		0		0		0		3,814
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		0		5,610		0		0		0		5,610
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		0		1,135		0		0		1,135
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		0		2,349		0		0		2,349
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		0		2,763		0		0		2,763
Stone Container - Roseville, MN	7/14/2014		0		0		0		4,500		0		4,500
Clive 2075 NW 94th St - Clive, IA	9/30/2014		0		0		0		2,224		0		2,224
Metal Improvement Company - New Brighton, MN	9/30/2014		0		0		0		1,510		0		1,510
Winsted Industrial Building	9/30/2014		0		0		0		398		0		398
Summary of Debt due after Fiscal 2015			0		0		0				23,308		23,308
Sub-Total Commercial Industrial		$	2,377	$	16,521	$	6,247	$	8,632	$	23,308	$	57,085

Commercial Retail
Burnsville I Strip Center - Burnsville, MN	6/30/2013	$	0	$	0	$	414	$	0	$	0	$	414
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		0		330		0		0		330
St Cloud Westgate - St Cloud, MN	10/10/2013		0		0		3,242		0		0		3,242
Eagan I Retail Center - Eagan, MN	12/22/2013		0		0		1,357		0		0		1,357
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		0		4,338		0		0		4,338
Pine City C-Store - Pine City, MN	4/20/2014		0		0		301		0		0		301
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		1,851		0		0		1,851
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		0		0		2,593		0		2,593
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		0		0		842		0		842
Fargo Express Center - Fargo, ND	10/1/2014		0		0		0		1,004		0		1,004
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		0		0		999		0		999
Summary of Debt due after Fiscal 2015			0		0		0				31,409		31,409
Sub-Total Commercial Retail		$	0	$	0	$	11,833	$	5,438	$	31,409	$	48,680

Total		$	5,961	$	21,682	$	42,204	$	86,292	$	882,578	$	1,038,717

*	Mortgage debt does not include the Company’s multi-bank line of credit. The line of credit has a maturity date of August 11, 2013; as of January 31, 2012, the Company had borrowings of $49,000,000 outstanding under this line.

(1)	Totals are principal balances as of January 31, 2012.

(2)	A loan commitment has been approved for the refinance of this loan in the fourth quarter.

(3)	This loan was renewed on February 27, 2012.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	01/31/2012		10/31/2011		07/31/2011		04/30/2011		01/31/2011
Equity Capitalization
Common shares outstanding		85,744		83,682		81,259		80,523		79,846
Operating partnership (OP) units outstanding		19,596		19,534		19,958		20,068		20,047
Total common shares and OP units outstanding		105,340		103,216		101,217		100,591		99,893
Market price per common share (closing price at end of period)	$	7.42	$	7.41	$	8.13	$	9.41	$	8.94
Equity capitalization-common shares and OP units	$	781,623	$	764,831	$	822,894	$	946,561	$	893,043
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	808,940	$	792,148	$	850,211	$	973,878	$	920,360

Debt Capitalization
Total mortgage debt	$	1,038,717	$	1,039,625	$	1,002,962	$	993,803	$	998,929
Total capitalization	$	1,847,657	$	1,831,773	$	1,853,173	$	1,967,681	$	1,919,289

Total debt to total capitalization	0.56:1		0.57:1		0.54:1		0.51:1		0.52:1

	Six Months Ended						Three Months Ended
	01/31/2012			01/31/2011			01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
Earnings to fixed charges(1)		1.10	x		1.08	x		1.14	x		1.05	x		1.09	x		1.02	x		1.03	x
Earnings to combined fixed charges and preferred distributions(1)		1.06	x		1.05	x		1.10	x		1.02	x		1.05	x		0.99	x		0.99	x
Debt service coverage ratio(1)		1.41	x		1.40	x		1.43	x		1.37	x		1.41	x		1.37	x		1.37	x

Distribution Data
Common shares and units outstanding at record date		103,761			99,213			103,761			101,439			100,725			100,101			99,213
Total common distribution paid	$	43,947		$	50,497		$	13,486		$	13,186		$	17,275		$	17,167		$	17,015
Common distribution per share and unit	$	.4315		$	.5145		$	.1300		$	.1300		$	.1715		$	.1715		$	.1715
Payout ratio (FFO per share and unit basis)(1)		91.8	%		107.2	%		81.3	%		86.7	%		107.2	%		114.3	%		122.5	%

(1)	See Definitions on page 27.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties(1)
	Three Months Ended January 31,							Nine Months Ended January 31,
Segment	2012		2011		% Change			2012		2011		% Change
Multi-Family Residential	$	9,772	$	7,981		22.4	%	$	28,127	$	24,349		15.5	%
Commercial Office		9,670		9,719		(0.5	%)		28,673		31,648		(9.4	%)
Commercial Medical		10,037		10,621		(5.5	%)		30,834		32,358		(4.7	%)
Commercial Industrial		2,409		2,033		18.5	%		7,093		6,514		8.9	%
Commercial Retail		2,149		1,973		8.9	%		6,227		6,539		(4.8	%)
	$	34,037	$	32,327		5.3	%	$	100,954	$	101,408		(0.4	%)

(1)	As of January 31, 2012, stabilized properties excluded:

Multi-Family Residential -

North Pointe II, Bismarck, ND, Sierra Vista, Sioux Falls, SD, Cottage West Twin Homes, Sioux Falls, SD, Gables Townhomes, Sioux Falls, SD, Regency Park Estates, St Cloud, MN and Evergreen II, Isanti, MN.

Total number of units, 325 Occupancy % for January 31, 2012 is 86.2%.

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for January 31, 2012 is 98.7%.

Commercial Medical -

Billings 2300 Grant Road, Billings, MT; Missoula 3050 Great Northern Avenue, Missoula, MT; Edgewood Vista-Minot, Minot, ND; Edina 6525 Drew Avenue, Edina, MN; Spring Creek American Falls, American Falls, ID; Spring Creek Soda Springs, Soda Springs, ID; Spring Creek Eagle, Eagle, ID; Spring Creek Meridian, Meridian, ID; Spring Creek Overland, Boise, ID; Spring Creek Boise, Boise, ID; Spring Creek Ustick, Meridian, ID and Trinity at Plaza 16, Minot, ND.

Total square footage, 315,818. Occupancy % for January31, 2012 is 99.6%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2012 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 48,960 Occupancy % for January 31, 2012 is 100.0%.

As of January 31, 2011, stabilized properties excluded:

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for January 31, 2011 is 98.7%.

Commercial Medical -

Billings 2300 Grant Road, Billings, MT; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND .

Total square footage, 137,848. Occupancy % for January 31, 2011 is 100.0%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709 Occupancy % for January 31, 2011 is 84.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 31, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	18,047		$	18,237		$	15,172		$	3,486		$	3,296		$	0		$	58,238
Non-Stabilized		789			304			1,437			110			145			0			2,785
Total		18,836			18,541			16,609			3,596			3,441			0			61,023

Real estate expenses
Stabilized(1)		8,275			8,567			5,135			1,077			1,147			0			24,201
Non-Stabilized		393			128			85			1			41			0			648
Total		8,668			8,695			5,220			1,078			1,188			0			24,849

Stabilized(1)		9,772			9,670			10,037			2,409			2,149			0			34,037
Non-Stabilized		396			176			1,352			109			104			0			2,137
Net operating income	$	10,168		$	9,846		$	11,389		$	2,518		$	2,253		$	0		$	36,174

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,649	)	$	(5,242	)	$	(4,351	)	$	(1,016	)	$	(898	)	$	(106	)	$	(15,262	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,659	)		(1,659	)
Other expenses		0			0			0			0			0			(359	)		(359	)
Impairment of real estate investments														(135	)		0			(135	)
Interest expense		(4,544	)		(5,388	)		(4,211	)		(910	)		(737	)		(743	)		(16,533	)
Interest and other income		0			0			0			0			0			295			295
Net income (loss)		1,975			(784	)		2,827			592			483			(2,572	)		2,521
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(351	)		(351	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(43	)		(43	)
Net income (loss) attributable to Investors Real Estate Trust		1,975			(784	)		2,827			592			483			(2,966	)		2,127
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,975		$	(784	)	$	2,827		$	592		$	483		$	(3,559	)	$	1,534

(1)	As of January 31, 2012, stabilized properties excluded:

Multi-Family Residential -

Total number of units, 325 Occupancy % for January 31, 2012 is 86.2%.

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for January 31, 2012 is 98.7%.

Commercial Medical -

Total square footage, 315,818. Occupancy % for January31, 2012 is 99.6%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2012 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 48,960 Occupancy % for January 31, 2012 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	16,884		$	19,181		$	16,524		$	3,239		$	3,484		$	0		$	59,312
Non-Stabilized		0			162			469			110			93			0			834
Total		16,884			19,343			16,993			3,349			3,577			0			60,146

Real estate expenses
Stabilized(1)		8,903			9,462			5,903			1,206			1,511			0			26,985
Non-Stabilized		0			45			(9	)		(3	)		15			0			48
Total		8,903			9,507			5,894			1,203			1,526			0			27,033

Net Operating Income (NOI)
Stabilized(1)		7,981			9,719			10,621			2,033			1,973			0			32,327
Non-Stabilized		0			117			478			113			78			0			786
Net operating income	$	7,981		$	9,836		$	11,099		$	2,146		$	2,051		$	0		$	33,113

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,390	)	$	(5,323	)	$	(4,025	)	$	(914	)	$	(836	)	$	(93	)	$	(14,581	)
Administrative, advisory and trustee services		0			0			0			0			0			(1,850	)		(1,850	)
Other expenses		0			0			0			0			0			(441	)		(441	)
Interest expense		(4,265	)		(5,379	)		(4,218	)		(993	)		(794	)		(219	)		(15,868	)
Interest and other income		0			0			0			0			0			107			107
Income (loss) from continuing operations		326			(866	)		2,856			239			421			(2,496	)		480
Income from discontinued operations		13,348			0			0			737			23			0			14,108
Net income (loss)		13,674			(866	)		2,856			976			444			(2,496	)		14,588
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(2,793	)		(2,793	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			38			38
Net income (loss) attributable to Investors Real Estate Trust		13,674			(866	)		2,856			976			444			(5,251	)		11,833
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	13,674		$	(866	)	$	2,856		$	976		$	444		$	(5,844	)	$	11,240

(1)	As of January 31, 2011, stabilized properties excluded:

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for January 31, 2011 is 98.7%.

Commercial Medical -

Billings 2300 Grant Road, Billings, MT; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND .

Total square footage, 137,848. Occupancy % for January 31, 2011 is 100.0%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709 Occupancy % for January 31, 2011 is 84.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 31, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	53,194		$	54,731		$	47,361		$	10,266		$	9,513		$	0		$	175,065
Non-Stabilized		1,505			992			2,938			331			451			0			6,217
Total		54,699			55,723			50,299			10,597			9,964			0			181,282

Real estate expenses
Stabilized(1)		25,067			26,058			16,527			3,173			3,286			0			74,111
Non-Stabilized		724			393			182			5			110			0			1,414
Total		25,791			26,451			16,709			3,178			3,396			0			75,525

Net Operating Income (NOI)
Stabilized(1)		28,127			28,673			30,834			7,093			6,227			0			100,954
Non-Stabilized		781			599			2,756			326			341			0			4,803
Net operating income	$	28,908		$	29,272		$	33,590		$	7,419		$	6,568		$	0		$	105,757

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(10,744	)	$	(15,753	)	$	(12,865	)	$	(2,822	)	$	(2,616	)	$	(305	)	$	(45,105	)
Administrative, advisory and trustee services		0			0			0			0			0			(5,944	)		(5,944	)
Other expenses		0			0			0			0			0			(1,509	)		(1,509	)
Impairment of real estate investments														(135	)		0			(135	)
Interest expense		(13,554	)		(15,986	)		(12,289	)		(2,754	)		(2,310	)		(1,863	)		(48,756	)
Interest and other income		0			0			0			0			0			661			661
Income (loss) from continuing operations		4,610			(2,467	)		8,436			1,843			1,507			(8,960	)		4,969
Income from discontinued operations		0			0			0			0			616			0			616
Net income (loss)		4,610			(2,467	)		8,436			1,843			2,123			(8,960	)		5,585
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(723	)		(723	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(29	)		(29	)
Net income (loss) attributable to Investors Real Estate Trust		4,610			(2,467	)		8,436			1,843			2,123			(9,712	)		4,833
Dividends to preferred shareholders		0			0			0			0			0			(1,779	)		(1,779	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	4,610		$	(2,467	)	$	8,436		$	1,843		$	2,123		$	(11,491	)	$	3,054

(1)	As of January 31, 2012, stabilized properties excluded:

Multi-Family Residential -

Total number of units, 325 Occupancy % for January 31, 2012 is 86.2%.

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for January 31, 2012 is 98.7%.

Commercial Medical -

Total square footage, 315,818. Occupancy % for January31, 2012 is 99.6%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2012 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 48,960 Occupancy % for January 31, 2012 is 100.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	49,596		$	58,673		$	48,888		$	9,633		$	10,153		$	0		$	176,943
Non-Stabilized		0			166			659			257			93			0			1,175
Total		49,596			58,839			49,547			9,890			10,246			0			178,118

Real estate expenses
Stabilized(1)		25,247			27,025			16,530			3,119			3,614			0			75,535
Non-Stabilized		0			57			33			4			15			0			109
Total		25,247			27,082			16,563			3,123			3,629			0			75,644

Net Operating Income (NOI)
Stabilized(1)		24,349			31,648			32,358			6,514			6,539			0			101,408
Non-Stabilized		0			109			626			253			78			0			1,066
Net operating income	$	24,349		$	31,757		$	32,984		$	6,767		$	6,617		$	0		$	102,474

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(10,116	)	$	(16,317	)	$	(11,857	)	$	(2,680	)	$	(2,298	)	$	(283	)	$	(43,551	)
Administrative, advisory and trustee services		0			0			0			0			0			(5,537	)		(5,537	)
Other expenses		0			0			0			0			0			(1,357	)		(1,357	)
Interest expense		(12,824	)		(16,511	)		(13,038	)		(2,994	)		(2,392	)		(576	)		(48,335	)
Interest and other income		0			0			0			0			0			411			411
Income (loss) from continuing operations		1,409			(1,071	)		8,089			1,093			1,927			(7,342	)		4,105
Income (loss) from discontinued operations		19,224			0			(8	)		726			(6	)		0			19,936
Net income (loss)		20,633			(1,071	)		8,081			1,819			1,921			(7,342	)		24,041
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(4,485	)		(4,485	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			82			82
Net income (loss) attributable to Investors Real Estate Trust		20,633			(1,071	)		8,081			1,819			1,921			(11,745	)		19,638
Dividends to preferred shareholders		0			0			0			0			0			(1,779	)		(1,779	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	20,633		$	(1,071	)	$	8,081		$	1,819		$	1,921		$	(13,524	)	$	17,859

(1)	As of January 31, 2011, stabilized properties excluded:

Commercial Office -

1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for January 31, 2011 is 98.7%.

Commercial Medical -

Billings 2300 Grant Road, Billings, MT; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND .

Total square footage, 137,848. Occupancy % for January 31, 2011 is 100.0%.

Commercial Industrial -

Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for January 31, 2011 is 100.0%.

Commercial Retail -

Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709 Occupancy % for January 31, 2011 is 84.0%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

3rd Quarter Fiscal 2012 vs. 3rd Quarter Fiscal 2011

Segments	Stabilized Properties		All Properties
	3rd Quarter	3rd Quarter	3rd Quarter	3rd Quarter
	Fiscal 2012	Fiscal 2011	Fiscal 2012	Fiscal 2011
Multi-Family Residential	93.5%	91.1%	93.2%	91.1%
Commercial Office	77.6%	79.8%	77.9%	80.1%
Commercial Medical	93.8%	95.8%	94.5%	96.1%
Commercial Industrial	94.4%	81.4%	94.5%	81.7%
Commercial Retail	87.0%	81.9%	87.5%	82.0%

Stabilized Physical Occupancy Levels by Segment - Bar Chart

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and nine months ended January 31, 2012

	Three Months Ended January 31, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		41,381		24,775		66,156		193,272		(127,116	)
Commercial Medical		30,174		19,371		49,545		58,651		(9,106	)
Commercial Industrial		103,148		132,806		235,954		326,914		(90,960	)
Commercial Retail		47,910		24,485		72,395		35,363		37,032
Total All Segments		222,613		201,437		424,050		614,200		(190,150	)

Weighted Average Rental Rates(3)
Commercial Office	$	11.78	$	13.86	$	12.56	$	12.90	$	(0.34	)		(2.6	%)
Commercial Medical		16.52		19.66		17.75		21.66		(3.91	)		(18.1	%)
Commercial Industrial		3.15		2.72		2.91		2.63		0.28			10.6	%
Commercial Retail		6.76		8.95		7.50		7.69		(0.19	)		(2.5	%)
Total All Segments	$	7.34	$	6.47	$	6.93	$	7.97	$	(1.04	)		(13.0	%)

	Nine Months Ended January 31, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		189,739		302,938		492,677		675,327		(182,650	)
Commercial Medical		235,092		40,867		275,959		98,442		177,517
Commercial Industrial		103,148		526,576		629,724		340,784		288,940
Commercial Retail		83,020		68,616		151,636		202,667		(51,031	)
Total All Segments		610,999		938,997		1,549,996		1,317,220		232,776

Weighted Average Rental Rates(3)
Commercial Office	$	10.73	$	14.89	$	13.29	$	12.69	$	0.60			4.7	%
Commercial Medical		19.17		18.26		19.04		20.49		(1.45	)		(7.1	%)
Commercial Industrial		3.15		3.51		3.45		2.64		0.81			30.7	%
Commercial Retail		7.87		12.25		9.85		5.84		4.01			68.7	%
Total All Segments	$	12.31	$	8.46	$	9.98	$	9.62	$	0.36			3.7	%

	Three Months Ended January 31, 2012						Nine Months Ended January 31, 2012
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased(4)
Commercial Office		3.4		4.4		3.8		4.3		3.6		3.9
Commercial Medical		5.9		3.4		4.5		7.7		4.3		6.3
Commercial Industrial		0.9		1.8		1.4		0.9		3.8		3.0
Commercial Retail		4.2		3.4		3.7		5.0		4.1		4.5
Total All Segments		3.8		3.4		3.6		5.4		3.9		4.6

(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 nine months ended January 31, 2012

	3rd Quarter Fiscal 2012 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	131,861	$	341,060	$	472,921	$	2,106,069	$	1,526,518	$	3,632,587
Commercial Medical		1,203,315		171,109		1,374,424		1,961,705		353,754		2,315,459
Commercial Industrial		50,000		0		50,000		50,000		349,071		399,071
Commercial Retail		216,440		0		216,440		505,653		18,846		524,499
Subtotal	$	1,601,616	$	512,169	$	2,113,785	$	4,623,427	$	2,248,189	$	6,871,616

Tenant Improvements per square foot
Commercial Office	$	3.19	$	13.77	$	7.15	$	11.10	$	5.04	$	7.37
Commercial Medical		39.88		8.83		27.74		8.34		8.66		8.39
Commercial Industrial		0.48		0.00		0.21		0.48		0.66		0.63
Commercial Retail		4.52		0.00		2.99		6.09		0.27		3.46
All Segments	$	7.19	$	2.54	$	4.98	$	7.57	$	2.39	$	4.43

Leasing Costs
Commercial Office	$	176,476	$	194,059	$	370,535	$	1,788,303	$	1,676,058	$	3,464,361
Commercial Medical		338,636		36,802		375,438		616,317		139,984		756,301
Commercial Industrial		25,973		15,667		41,640		25,973		430,772		456,745
Commercial Retail		177,484		13,555		191,039		256,323		46,419		302,742
Subtotal	$	718,569	$	260,083	$	978,652	$	2,686,916	$	2,293,233	$	4,980,149

Leasing Costs per square foot
Commercial Office	$	4.26	$	7.83	$	5.60	$	9.43	$	5.53	$	7.03
Commercial Medical		11.22		1.90		7.58		2.62		3.43		2.74
Commercial Industrial		0.25		0.12		0.18		0.25		0.82		0.73
Commercial Retail		3.70		0.55		2.64		3.09		0.68		2.00
All Segments	$	3.23	$	1.29	$	2.31	$	4.40	$	2.44	$	3.21

Tenant Improvements and Leasing Costs
Commercial Office	$	308,337	$	535,119	$	843,456	$	3,894,372	$	3,202,576	$	7,096,948
Commercial Medical		1,541,951		207,911		1,749,862		2,578,022		493,738		3,071,760
Commercial Industrial		75,973		15,667		91,640		75,973		779,843		855,816
Commercial Retail		393,924		13,555		407,479		761,976		65,265		827,241
Total	$	2,320,185	$	772,252	$	3,092,437	$	7,310,343	$	4,541,422	$	11,851,765

Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	7.45	$	21.60	$	12.75	$	20.52	$	10.57	$	14.40
Commercial Medical		51.10		10.73		35.32		10.97		12.08		11.13
Commercial Industrial		0.74		0.12		0.39		0.74		1.48		1.36
Commercial Retail		8.22		0.55		5.63		9.18		0.95		5.46
All Segments	$	10.42	$	3.83	$	7.29	$	11.96	$	4.84	$	7.65

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	01/31/2012			10/31/2011			07/31/2011			04/30/2011			01/31/2011
Number of Units		8,921			8,885			8,664			8,661			8,593
Average Investment Per Unit
Stabilized	$	56,955		$	56,479		$	56,093		$	55,922		$	55,866
Non-Stabilized		79,111			72,974			62,078			61,947			0
	$	57,762		$	56,926		$	56,140		$	55,969		$	55,866

Average Scheduled Rent(1) per Unit
Stabilized	$	712		$	707		$	701		$	698		$	697
Non-Stabilized		827			962			715			567			0
	$	716		$	714		$	701		$	697		$	697

Total Receipts per Unit
Stabilized	$	701		$	697		$	675		$	665		$	655
Non-Stabilized		809			790			726			538			0
	$	705		$	696		$	675		$	664		$	655

Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	153		$	212		$	230		$	144		$	146
Non-Stabilized		215			123			113			105			0
	$	156		$	209		$	229		$	144		$	146

Physical Occupancy%
Stabilized		93.5	%		94.8	%		91.5	%		92.8	%		91.1	%
Non-Stabilized		86.2	%		89.6	%		94.1	%		89.7	%		0.0	%
		93.2	%		94.6	%		91.5	%		92.8	%		91.1	%

Operating Expenses as a % of Scheduled Rent
Stabilized		45.4	%		47.0	%		46.3	%		49.4	%		49.7	%
Non-Stabilized		48.9	%		36.7	%		52.4	%		47.4	%		0.0	%
Total		45.6	%		46.6	%		46.3	%		49.4	%		49.7	%

(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 January 31, 2012

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	32	100	12.4%	1,450,585	13.5%
St. Lukes Hospital of Duluth, Inc.	6	48	3.5%	198,775	1.9%
Fairview Health Services	9	76	3.4%	239,806	2.2%
Applied Underwriters	3	61	2.2%	141,724	1.3%
Affiliates of Siemens USA	2	32	1.6%	142,017	1.3%
HealthEast Care System	1	85	1.6%	114,316	1.1%
Affiliates of Hewlett Packard (NASDAQ: HPQ)	2	5	1.4%	376,480	3.5%
Microsoft (NASDAQ: MSFT)	1	19	1.4%	122,040	1.1%
Smurfit - Stone Container (NASDAQ: SSCC)	2	46	1.3%	406,397	3.8%
Nebraska Orthopedic Hospital	1	206	1.3%	61,758	0.6%
Total/Weighted Average		80	30.2%	3,253,898	30.3%

(1)	See Definitions on page 27.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of January 31, 2012

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Base Rent
Commercial Office
2012		13		86,797		2.3	%	$	1,740,728	$	20.06		3.2	%
2013		49		543,220		14.2	%		7,407,262		13.64		13.7	%
2014		52		613,019		16.0	%		8,021,050		13.08		14.9	%
2015		66		476,444		12.4	%		6,503,392		13.65		12.0	%
2016		38		558,651		14.6	%		8,776,424		15.71		16.2	%
2017 and thereafter		69		1,550,753		40.5	%		21,646,438		13.96		40.0	%
		287		3,828,884		100.0	%	$	54,095,294	$	14.13		100.0	%

Commercial Medical
2012		3		5,656		0.2	%	$	116,028	$	20.51		0.2	%
2013		24		120,643		4.4	%		2,740,060		22.71		6.0	%
2014		23		395,211		14.4	%		6,846,330		17.32		14.9	%
2015		16		61,201		2.2	%		1,456,358		23.80		3.2	%
2016		24		175,113		6.4	%		3,569,252		20.38		7.8	%
2017 and thereafter		96		1,989,242		72.4	%		31,210,389		15.69		67.9	%
		186		2,747,066		100.0	%	$	45,938,417	$	16.72		100.0	%

Commercial Industrial
2012		1		281,648		11.1	%	$	718,202	$	2.55		7.5	%
2013		4		45,217		1.8	%		161,463		3.57		1.7	%
2014		9		307,759		12.1	%		1,130,738		3.67		11.7	%
2015		6		344,493		13.5	%		1,365,251		3.96		14.2	%
2016		8		784,327		30.8	%		3,156,903		4.02		32.8	%
2017 and thereafter		11		780,498		30.7	%		3,085,121		3.95		32.1	%
		39		2,543,942		100.0	%	$	9,617,678	$	3.78		100.0	%

Commercial Retail
2012		10		84,814		7.2	%	$	405,504	$	4.78		4.5	%
2013		35		107,014		9.0	%		877,269		8.20		9.8	%
2014		39		222,988		18.9	%		1,322,161		5.93		14.8	%
2015		32		288,499		24.4	%		1,840,251		6.38		20.5	%
2016		20		91,511		7.7	%		1,079,537		11.80		12.0	%
2017 and thereafter		40		387,664		32.8	%		3,438,540		8.87		38.4	%
		176		1,182,490		100.0	%	$	8,963,262	$	7.58		100.0	%

Commercial Total
2012		27		458,915		4.5	%	$	2,980,462	$	6.49		2.5	%
2013		112		816,094		7.9	%		11,186,054		13.71		9.4	%
2014		123		1,538,977		14.9	%		17,320,279		11.25		14.6	%
2015		120		1,170,637		11.4	%		11,165,252		9.54		9.4	%
2016		90		1,609,602		15.6	%		16,582,116		10.30		14.0	%
2017 and thereafter		216		4,708,157		45.7	%		59,380,488		12.61		50.1	%
		688		10,302,382		100.0	%	$	118,614,651	$	11.51		100.0	%

*	Annualized Base Rent is monthly scheduled rent as of January 31, 2012 (cash basis), multiplied by 12.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2012 ACQUISITION SUMMARY

as of January 31, 2012

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			January 31, 2012 Leased Percentage			Acquisition Cost

Buffalo Mall Theater(1)	Jamestown, ND	Commercial Retail	June 15, 2011		19,037		100.0	%		100.0	%	$	822
Regency Park Estates	St Cloud, MN	Multi-Family Residential	August 1, 2011		147		85.0	%		78.9	%		10,900
Spring Creek American Falls	American Falls, ID	Commercial Medical	September 1, 2011		17,273		100.0	%		100.0	%		4,070
Spring Creek Soda Springs	Soda Springs, ID	Commercial Medical	September 1, 2011		15,571		100.0	%		100.0	%		2,230
Spring Creek Eagle	Eagle, ID	Commercial Medical	September 1, 2011		15,559		100.0	%		100.0	%		4,100
Spring Creek Meridian	Meridian, ID	Commercial Medical	September 1, 2011		31,820		100.0	%		100.0	%		7,250
Spring Creek Overland	Boise, ID	Commercial Medical	September 1, 2011		26,605		100.0	%		100.0	%		6,725
Spring Creek Boise	Boise, ID	Commercial Medical	September 1, 2011		16,311		100.0	%		100.0	%		5,075
Spring Creek Ustick	Meridian, ID	Commercial Medical	September 1, 2011		26,605		100.0	%		100.0	%		4,300
Meadow Wind Land	Casper, WY	Unimproved Land	September 1, 2011	na		na			na				50
Minot IPS	Minot, ND	Unimproved Land	September 7, 2011	na		na			na				416
Trinity at Plaza 16(2)	Minot, ND	Commercial Medical	September 23, 2011		24,795		100.0	%		100.0	%		5,562
Cottage West Twin Homes	Sioux Falls, SD	Multi-Family Residential	October 12, 2011		50		98.0	%		94.0	%		4,730
Gables Townhomes	Sioux Falls, SD	Multi-Family Residential	October 12, 2011		24		87.5	%		87.5	%		2,270
Edina 6525 Drew Avenue S	Edina, MN	Commercial Medical	October 13, 2011		3,431		76.4	%		60.3	%		505
Evergreen II	Isanti, MN	Multi-Family Residential	November 1, 2011		36					94.4	%		3,475
Meadow Winds Addition(3)	Casper, WY	Commercial Medical	December 30, 2011		22,193		100.0	%		100.0	%		3,840
			Total Square Feet		219,200							$	66,320
			Total Units		257

(1)	Construction project placed in service June 15, 2011. Additional costs paid in fiscal year 2011 totaled $1.4 million, for a total project cost at January 31, 2012 of $2.3 million.

(2)	Development property placed in service September 23, 2011. Additional costs paid in fiscal year 2011 totaled $3.3 million, for a total project cost at January 31, 2012 of $8.8 million.

(3)	Expansion project placed in service December 30, 2011

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2012 DEVELOPMENT SUMMARY

as of January 31, 2012

($’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 15,000 sf. commercial office to 20 multi-family residential units		0	%		2,900		330	2nd Quarter Fiscal 2013
Spring Wind - Laramie, WY	29 assisted living units and 16 memory care units		0	%		3,800		1,445	1st Quarter Fiscal 2013
Industrial-Office Build-to-Suit - Minot, ND	28,000 sf. commercial industrial building		100	%		5,799		1,024	2nd Quarter Fiscal 2013
Quarry Ridge II Apartments - Rochester, MN	159 unit apartment building		0	%		18,275		9,087	2nd Quarter Fiscal 2013
Williston Garden Apartments - Williston, ND(1)	144unit apartment building		0	%		19,500		8,561	1st Quarter Fiscal 2013
Other		na			na			1,834	na
		Total			$	50,274	$	22,281

(1)	The Company is a 60% partner in the joint venture entity constructing this property; the anticipated total cost amount given is the total cost to the joint venture entity.

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Definitions

January 31, 2012

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.” In addition, NAREIT recently clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure. We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes 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 (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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