SOURCE: Investors Real Estate Trust

June 30, 2008 16:47 ET

Investors Real Estate Trust Announces Financial and Operating Results for the Year and Quarter Ended April 30, 2008

MINOT, ND--(Marketwire - June 30, 2008) - Investors Real Estate Trust (IRET) (NASDAQ: IRET) (NASDAQ: IRETP) reported financial and operating results today for the year and quarter ended April 30, 2008.

During the fourth quarter of fiscal year 2008, IRET's revenues increased from the year-earlier period, due primarily to property acquisitions and a decrease in the level of tenant concessions offered. Funds From Operations (FFO)(1) increased on an absolute basis from the year-earlier period, but declined slightly on a per share and unit basis, primarily due to dilution following the Company's October 2007 public offering of 6.9 million common shares. Net income declined from the year-earlier period, primarily due to the effect of a gain on sale included within discontinued operations in the three and twelve months ended April 30, 2007. For the three month period ended April 30, 2008, as compared to the same period of the prior fiscal year:

--  Revenues increased to $59.0 million from $53.7 million.
--  FFO increased to $17.1 million on approximately 78,195,000 weighted
    average shares and units outstanding, from $15.3 million on approximately
    67,284,000 weighted average shares and units outstanding ($.22 per share
    and unit compared to $.23 per share and unit).
--  Net Income Available to Common Shareholders, as computed under
    generally accepted accounting principles, was $2.7 million, compared to
    $3.4 million.
    

For the twelve month period ended April 30, 2008, as compared to the same period of the prior fiscal year:

--  Revenues increased to $221.2 million from $197.5 million.
--  FFO increased to $64.2 million on approximately 73,477,000 weighted
    average shares and units outstanding, from $57.0 million on approximately
    64,689,000 weighted average shares and units outstanding ($.87 per share
    and unit compared to $.88 per share and unit).
--  Net Income Available to Common Shareholders, as computed under
    generally accepted accounting principles, was $9.7 million, compared to
    $11.7 million.
    

Operating Results

Net Operating Income (NOI)(2) from stabilized properties(3) increased 1.2%, or $329,000, during the three months ended April 30, 2008, compared to the same period one year ago. NOI from stabilized properties increased in all of our segments except Commercial Office and Commercial Industrial. Multi-Family Residential increased 4.2%, Commercial Medical increased 4.3% and Commercial Retail increased 2.0%. Commercial Office and Commercial Industrial decreased 0.8% and 17.0%, respectively. NOI from stabilized properties increased 0.8%, or $876,000, for the twelve months ended April 30, 2008, compared to the twelve months ended April 30, 2007.

Economic occupancy(4) levels on a stabilized property basis declined in all but one of our reportable segments during the three months ended April 30, 2008, compared to the three months ended April 30, 2007. Economic occupancy levels on an all-property basis declined in all reportable segments during the three months ended April 30, 2008, compared to the three months ended April 30, 2007. Economic occupancy rates on a stabilized property and all-property basis for the three months ended April 30, 2008, as compared to the three months ended April 30, 2007, were as follows:

Economic Occupancy Levels on a Stabilized Property and All-Property Basis:

                                     Stabilized
Segments                             Properties           All Properties
                                --------------------  --------------------
                                 4th QTR    4th QTR    4th QTR    4th QTR
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Multi-Family Residential             92.8%      92.4%      92.1%      92.5%
Commercial Office                    89.6%      90.5%      90.8%      92.4%
Commercial Medical                   95.2%      96.3%      96.1%      96.3%
Commercial Industrial                94.7%      97.4%      95.9%      97.8%
Commercial Retail                    87.9%      89.3%      88.2%      89.6%


For 4th Quarter 2008 and 4th Quarter 2007, stabilized properties excluded:

Multi-Family Residential - 17 South Main Apartments, Minot, ND; Arbors
                           Apartments, S. Sioux City, NE; Indian Hills,
                           Sioux City, IA; Quarry Ridge Apartments,
                           Rochester, MN; Rum River Apartments, Isanti, MN;
                           St. Cloud Student Housing, St. Cloud, MN;
                           Cottonwood IV Apartments, Bismarck, ND and
                           Greenfield Apartments, Omaha, NE.
Commercial Office -        17 South Main, Minot, ND; Corporate Center West,
                           Omaha, NE; Farnam Executive Center, Omaha, NE;
                           Flagship, Eden Prairie, MN; Gateway Corporate,
                           Woodbury, MN; Highlands Ranch I, Highlands
                           Ranch, CO; Miracle Hills One, Omaha, NE; Pacific
                           Hills, Omaha, NE; Riverport, Maryland Heights,
                           MO; Timberlands, Leawood, KS; Woodlands Plaza,
                           Maryland Heights, MO; 610 Business Center,
                           Brooklyn Park, MN; Intertech, Fenton, MO and
                           Plymouth 5095, Plymouth, MN.
Commercial Medical -       2828 Chicago Avenue, Minneapolis, MN; Fox River
                           Cottages, Grand Chute, WI; St. Michaels, St.
                           Michael, MN; Barry Point, Kansas City, MO;
                           Edgewood Vista Billings, Billings, MT; Edgewood
                           Vista East Grand Forks, East Grand Forks, MN;
                           Edgewood Vista Sioux Falls, Sioux Falls, SD;
                           Edina 6405 France Medical, Edina, MN; Edina 6363
                           France Medical, Edina, MN; Minneapolis 701 25th
                           Ave Medical (Riverside), Minneapolis, MN;
                           Burnsville 303 Nicollet Medical (Ridgeview),
                           Burnsville, MN; Burnsville 305 Nicollet Medical
                           (Ridgeview South), Burnsville, MN; Eagan 1440
                           Duckwood Medical, Eagan, MN; Edgewood Vista
                           Belgrade, Belgrade, MT; Edgewood Vista Columbus,
                           Columbus, NE; Edgewood Vista Fargo, Fargo, ND;
                           Edgewood Vista Grand Island, Grand Island, NE
                           and Edgewood Vista Norfolk, Norfolk, NE.
Commercial Industrial -    Bloomington 2000, Bloomington, MN; Roseville
                           2929, Roseville, MN; Cedar Lake Business Center,
                           St. Louis Park, MN; Urbandale, Urbandale, IA;
                           Woodbury 1865, Woodbury, MN and Eagan 3785 &
                           2795 Highway 55, Eagan, MN.
Commercial Retail -        17 South Main, Minot, ND; Dakota West Plaza,
                           Minot, ND and Weston Walgreens, Weston, WI.

Also excluded from stabilized properties in Q4 2008 and Q4 2007 are sold
properties:

Multi-Family Residential - Park East Apartments, Fargo, ND; Clearwater
                           apartments, Boise, ID; 405 Grant Avenue
                           Apartments, Harvey, ND and Sweetwater - Green
                           Acres 1&2 Apartments, Devils Lake, ND.
Commercial Office -        Minnetonka Office Building, Minnetonka, MN.
Commercial Medical -       Wedgewood Sweetwater, Lithia Springs, GA.
Commercial Retail -        Glencoe C-Store, Glencoe, MN; Faribault Checker,
                           Faribault, MN; Long Prairie C-Store, Long
                           Prairie, MN; Paynesville C-Store, Paynesville,
                           MN and Prior Lake I & III Strip Center, Prior
                           Lake, MN.
Unimproved Land -          Long Prairie Unimproved Land, Long Prairie, MN.

Acquisition and Disposition Activity

During the fourth quarter of fiscal year 2008, IRET acquired eight senior housing facilities, six medical office properties and an office/warehouse facility for a total of approximately $103.1 million, excluding closing and other transaction costs. The Company had no material dispositions in the first three quarters of fiscal year 2008; in the fourth quarter of fiscal year 2008, the Company sold its Sweetwater Apartments in Devils Lake, North Dakota, for a sales price of $940,000, and recognized a gain on sale of approximately $510,000. The following table details the Company's acquisitions during the three months ended April 30, 2008:

                                                                    (in
                                                                 thousands)
                                                                -----------
                                                                Acquisition
Fourth Quarter Fiscal Year 2008 Acquisitions                       Cost
                                                                -----------

Commercial Property - Medical (including senior housing)
   11,800 sq. ft./28 beds Edgewood Vista Billings - Billings, MT $    4,250
   18,488 sq. ft./36 beds Edgewood Vista East Grand Forks - East
    Grand Forks, MN                                                   4,990
   11,800 sq. ft./28 beds Edgewood Vista Sioux Falls - Sioux
    Falls, SD                                                         3,350
   55,478 sq. ft. Edina 6405 France Medical - Edina, MN*             13,615
   70,934 sq. ft. Edina 6363 France Medical - Edina, MN*             13,360
   57,212 sq. ft. Minneapolis 701 25th Ave Medical (Riverside) -
    Minneapolis, MN*                                                  8,000
   53,466 sq. ft. Burnsville 303 Nicollet Medical (Ridgeview) -
    Burnsville, MN                                                    8,800
   36,199 sq. ft. Burnsville 305 Nicollet Medical (Ridgeview
    South) - Burnsville, MN                                           5,900
   17,640 sq. ft. Eagan 1440 Duckwood Medical - Eagan, MN             2,325
   5,192 sq. ft./13 beds Edgewood Vista Belgrade - Belgrade, MT       2,100
   5,194 sq. ft./13 beds Edgewood Vista Columbus - Columbus, NE       1,450
   168,801 sq. ft./185 beds Edgewood Vista Fargo - Fargo, ND         25,850
   5,185 sq. ft./13 beds Edgewood Vista Grand Island - Grand
    Island, NE                                                        1,400
   5,135 sq. ft./13 beds Edgewood Vista Norfolk - Norfolk, NE         1,300
                                                                -----------

Commercial Property - Industrial
   198,600 sq. ft. Eagan 2785 & 2795 Highway 55 - Eagan, MN           6,400
                                                                -----------

Total Property Acquisitions                                     $   103,090
                                                                ===========

* Acquisition of leasehold interests only (air rights lease and ground
  leases)

Development Activity

The Company has several ongoing development projects. As of April 30, 2008, IRET is engaged in the following development activity:

Southdale Medical Building Expansion Project: In July 2007, the Company signed a lease with an anchor tenant committing the Company to construct an approximately 27,750 square foot addition to the Company's existing Southdale Medical Building located in Edina, Minnesota. The estimated cost of this expansion project is approximately $10.9 million, including relocation, tenant improvement and leasing costs expected to be incurred to relocate tenants in the existing facility. Construction began in September 2007, and the expansion project is scheduled for completion in July 2008. As of April 30, 2008, the Company has incurred approximately $5.5 million in construction costs for this expansion project.

IRET Corporate Plaza: During fiscal year 2007, the Company purchased an unimproved parcel of land in Minot, North Dakota, for approximately $1.8 million. The Company is constructing a mixed-use project on this site, to consist of approximately 67 apartments and 60,100 rentable square feet of office and retail space. The Company plans to move its Minot, North Dakota offices to this location, occupying approximately one-third of the proposed office/retail space. Current estimates are that the project will be completed in the second quarter of the Company's fiscal year 2009, at a total cost of approximately $20.7 million. As of April 30, 2008, the Company has incurred approximately $9.2 million of the estimated construction cost of this project.

2828 Chicago Avenue Medical Building: In fiscal year 2006, IRET purchased an approximately 55,000 square foot, five-story medical office building located in Minneapolis, Minnesota. During fiscal year 2007, IRET committed to construct an approximately 56,000 square foot medical office building adjacent to the existing structure, and an adjoining parking ramp, with a planned project completion date of August 2008 and an estimated total project cost of $15.7 million. As of April 30, 2008, approximately 73% of this new medical office building was pre-leased to two tenants. Construction on the project began in August 2007, and as of April 30, 2008, the Company has incurred approximately $8.2 million in construction costs.

Shareholder Equity, Distributions and Capital Structure

On April 1, 2008, IRET paid a quarterly distribution of $0.1680 per share and unit on its common shares and limited partnership units of IRET Properties. This was IRET's 148th consecutive distribution at equal or increasing rates. IRET also paid, on March 31, 2008, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

As of April 30, 2008, IRET had a total capitalization of $1.9 billion. Total capitalization is defined as the market value (closing price at end of period) of the Company's outstanding common shares and the imputed market value of the outstanding limited partnership units of IRET Properties, plus the book value of the Company's preferred shares and the outstanding principal balance of the consolidated debt of the Company.

Conference Call Information

The Conference Call for 4th Quarter Earnings is scheduled for Wednesday, July 2, 2008, at 9:00 A.M. Central Daylight Time. In order to use the limited time available more efficiently, the Company requests that questions be submitted in advance, via e-mail to the attention of IRET's Investor Relations Director at msaari@iret.com, by 5:00 p.m. Central Daylight Time on Tuesday, July 1, 2008. During the question and answer period, priority will be given to addressing questions submitted in advance. The call will be limited to one hour, including questions and answers. Conference call access information is as follows:

USA Toll Free Number: 1-800-860-2442

International Toll Free Number: 1-412-858-4600

A replay of the call will be archived on the "Investor Relations/Upcoming Events and Presentations" page of IRET's website, http://www.iret.com, through Friday, July 18, 2008. Questions regarding the conference call should be directed to IRET Investor Relations at msaari@iret.com.

About IRET

IRET is a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest. IRET owns a diversified portfolio of properties consisting of 72 multi-family residential properties with 9,500 apartment units; and 65 office properties, 48 medical properties (including senior housing), 17 industrial properties and 33 retail properties with a total of approximately 11.5 million square feet of leasable space. IRET's distributions have increased every year for 37 consecutive years. IRET common and preferred shares are publicly traded on the NASDAQ Global Select Market (symbols: IRET and IRETP). IRET's press releases and supplemental information are available on the Company website at www.iret.com or by contacting Investor Relations at 701-837-4738.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Such risks, uncertainties and other factors include, but are not limited to: fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2007 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

(1) 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/losses from sales of property plus real estate depreciation and amortization. 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.

(2) We measure the performance of our segments based on NOI, which we define as total revenues less property operating expenses and real estate taxes. We believe that NOI is an important supplemental measure of operating performance for a real estate investment trust's operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with GAAP, and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance. See tables below for a reconciliation of NOI to the condensed consolidated financial statements.

(3) Stabilized properties are those properties owned for the entirety of both periods being compared. While results presented on a stabilized property basis are not determined in accordance with GAAP, management believes that measuring performance on a stabilized property basis is useful to investors and to management because it enables evaluation of how the Company's properties are performing year over year.

(4) Economic occupancy represents actual rental revenues recognized for the period indicated as a percentage of scheduled rental revenues for the period. Percentage rents, tenant concessions, straightline adjustments and expense reimbursements are not considered in computing either actual revenues or scheduled rent revenues.

               INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
   for the three months and twelve months ended April 30, 2008 and 2007


                                 Three Months Ended   Twelve Months Ended
                                      April 30              April 30
                                ------------------------------------------
                                  (in thousands, except per share data)
                                ------------------------------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
REVENUE
   Real estate rentals          $  46,674  $  43,792  $ 179,965  $ 162,410
   Tenant reimbursement            12,288      9,874     41,205     35,128
                                ---------  ---------  ---------  ---------
TOTAL REVENUE                      58,962     53,666    221,170    197,538
                                ---------  ---------  ---------  ---------
OPERATING EXPENSE
   Interest                        16,470     15,323     63,439     58,424
   Depreciation/amortization
    related to real estate
    investments                    13,537     11,802     50,042     44,419
   Utilities                        5,365      4,559     17,793     15,157
   Maintenance                      6,373      6,284     24,582     21,691
   Real estate taxes                7,498      6,353     27,133     23,281
   Insurance                          700        619      2,624      2,377
   Property management expenses     3,975      3,818     15,273     13,826
   Administrative expenses          1,288      1,096      4,745      4,162
   Advisory and trustee
    services                          104         81        458        289
   Other operating expenses           291        307      1,344      1,240
   Amortization related to
    non-real estate investments       437        362      1,476      1,082
                                ---------  ---------  ---------  ---------
TOTAL OPERATING EXPENSE            56,038     50,604    208,909    185,948
                                ---------  ---------  ---------  ---------
Operating income                    2,924      3,062     12,261     11,590
Interest income                       449        541      2,095      1,944
Other non-operating income            222        154        665        721
                                ---------  ---------  ---------  ---------
Income before minority interest
 and discontinued operations
 and gain (loss) on sale of
 other investments                  3,595      3,757     15,021     14,255
Gain (loss) on sale of other
 investments                           38         (1)        42        (38)
Minority interest portion of
 operating partnership income        (833)      (921)    (3,524)    (3,217)
Minority interest portion of
 other partnerships' loss             111         39        136         26
                                ---------  ---------  ---------  ---------
Income from continuing
 operations                         2,911      2,874     11,675     11,026
Discontinued operations, net of
 minority interest                    377      1,161        413      3,084
                                ---------  ---------  ---------  ---------
NET INCOME                          3,288      4,035     12,088     14,110
   Dividends to preferred
    shareholders                     (593)      (593)    (2,372)    (2,372)
                                ---------  ---------  ---------  ---------
NET INCOME AVAILABLE TO COMMON
 SHAREHOLDERS                   $   2,695  $   3,442  $   9,716  $  11,738
                                =========  =========  =========  =========
Earnings per common share from
 continuing operations          $     .04  $     .05  $     .17  $     .18
Earnings per common share from
 discontinued operations              .01        .02        .01        .06
                                ---------  ---------  ---------  ---------
NET INCOME PER COMMON SHARE -
 BASIC AND DILUTED              $     .05  $     .07  $     .18  $     .24
                                =========  =========  =========  =========




               INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
          RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
   for the three months and twelve months ended April 30, 2008 and 2007

                         (in thousands, except per share amounts)
                -----------------------------------------------------------
Three Months Ended
 April 30,                  2008                           2007
                ----------------------------  -----------------------------
                          Weighted                       Weighted
                            Avg                            Avg
                           Shares    Per Share            Shares  Per Share
                            and        and                 and       and
                 Amount   Units(2)    Unit(3)  Amount    Units(2)  Unit(3)
                --------  --------- --------- --------  --------- ---------
Net income      $  3,288                      $  4,035
Less dividends
 to preferred
 shareholders       (593)                         (593)
                --------                      --------
Net income
 available to
 common
 shareholders      2,695     57,382 $     .05    3,442     48,313 $     .07
Adjustments:
Minority
 interest in
 earnings of
 unitholders         973     20,813              1,390     18,971
Depreciation and
 amortization(1)  13,910                        12,119
Gain on
 depreciable
 property sales     (510)                       (1,616)
                --------  --------- --------- --------  --------- ---------
Funds from
 operations
 applicable
 to common
 shares and
 units          $ 17,068     78,195 $     .22 $ 15,335     67,284 $     .23
                ========  ========= ========= ========  ========= =========


                         (in thousands, except per share amounts)
                -----------------------------------------------------------
Twelve Months Ended
 April 30,                  2008                           2007
                ----------------------------  -----------------------------
                          Weighted                       Weighted
                            Avg                            Avg
                           Shares    Per Share            Shares  Per Share
                            and        and                 and       and
                 Amount   Units(2)    Unit(3)  Amount    Units(2)  Unit(3)
                --------  --------- --------- --------  --------- ---------
Net income      $ 12,088                      $ 14,110
Less dividends
 to preferred
 shareholders     (2,372)                       (2,372)
                --------                      --------
Net income
 available to
 common
 shareholders      9,716     53,060 $     .18   11,738     47,672 $     .25
Adjustments:
Minority
 interest in
 earnings of
 unitholders       3,677     20,417              4,299     17,017
Depreciation and
 amortization(4)  51,303                        45,559
Gain on
 depreciable
 property sales     (514)                       (4,602)
                --------  --------- --------- --------  --------- ---------
Funds from
 operations
 applicable
 tocommon
 shares and
 units          $ 64,182     73,477 $     .87 $ 56,994     64,689 $     .88
                ========  ========= ========= ========  ========= =========

(1) Real estate depreciation and amortization consists of the sum of
    depreciation/amortization related to real estate investments and
    amortization related to non-real estate investments from the Condensed
    Consolidated Statements of Operations, totaling $13,974 and $12,164,
    and depreciation/amortization from Discontinued Operations of $5 and
    $21, less corporate-related depreciation and amortization on office
    equipment and other assets of $69 and $66, for the three months ended
    April 30, 2008 and 2007, respectively.
(2) UPREIT Units of the Operating Partnership are exchangeable for common
    shares of beneficial interest on a one-for-one basis.
(3) Net income is calculated on a per share basis. FFO is calculated on a
    per share and unit basis.
(4) Real estate depreciation and amortization consists of the sum of
    depreciation/amortization related to real estate investments  and
    amortization related to non-real estate investments from the Condensed
    Consolidated Statements of Operations, totaling $51,518 and $45,501,
    and depreciation/amortization from Discontinued Operations of $47 and
    $299, less corporate-related depreciation and amortization on office
    equipment and other assets of $262 and $241, for the twelve months
    ended April 30, 2008 and 2007, respectively.





               INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
               RECONCILATION OF NET OPERATING INCOME TO THE
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
   for the three months and twelve months ended April 30, 2008 and 2007


                                        (in thousands)
                    -------------------------------------------------------
                     Multi-
                     Family  Commerc- Commerc- Commerc- Commerc-
Three Months Ended  Residen-   ial-     ial-     ial-     ial-
 April 30, 2008       tial    Office  Medical Industrial Retail     Total
                    -------- -------- -------- -------- -------- ---------

Real estate revenue $ 18,469 $ 22,216 $ 11,648 $  2,974 $  3,655 $  58,962
Real estate expenses   9,063    9,916    3,180      694    1,058    23,911
                    -------- -------- -------- -------- -------- ---------
Net operating
 income             $  9,406 $ 12,300 $  8,468 $  2,280 $  2,597    35,051
                    ======== ======== ======== ======== ======== ---------
  Interest                                                         (16,470)
  Depreciation/
   amortization                                                    (13,974)
  Administrative,
   advisory and
   trustee fees                                                     (1,392)
  Operating expenses                                                  (291)
  Non-operating
   income                                                              671
                    -------- -------- -------- -------- -------- ---------
Income before
 minority interest
 and discontinued
 operations and
 (loss) gain on sale
 of other investments                                            $   3,595
                    ======== ======== ======== ======== ======== =========


                                        (in thousands)
                    -------------------------------------------------------
                     Multi-
                     Family  Commerc- Commerc- Commerc- Commerc-
Three Months Ended  Residen-   ial-     ial-     ial-     ial-
 April 30, 2007       tial    Office  Medical Industrial Retail     Total
                    -------- -------- -------- -------- -------- ---------
Real estate revenue $ 17,330 $ 21,054 $  8,966 $  2,453 $  3,863 $  53,666
Real estate expenses   8,487    9,047    2,379      454    1,266    21,633
                    -------- -------- -------- -------- -------- ---------
Net operating
 income             $  8,843 $ 12,007 $  6,587 $  1,999 $  2,597    32,033
                    ======== ======== ======== ======== ======== ---------
  Interest                                                         (15,323)
  Depreciation/
   amortization                                                    (12,164)
  Administrative,
   advisory and
   trustee fees                                                     (1,177)
  Operating expenses                                                  (307)
  Non-operating
   income                                                              695
                    -------- -------- -------- -------- -------- ---------
Income before
 minority interest
 and discontinued
 operations and
 (loss) gain on sale
 of other investments                                            $   3,757
                    ======== ======== ======== ======== ======== =========


                                        (in thousands)
                    -------------------------------------------------------
                     Multi-
                     Family  Commerc- Commerc- Commerc- Commerc-
Twelve Months Ended  Residen-  ial-     ial-     ial-     ial-
 April 30, 2008       tial    Office  Medical Industrial Retail     Total
                    -------- -------- -------- -------- -------- ---------
Real estate revenue $ 72,827 $ 84,042 $ 38,412 $ 11,691 $ 14,198 $ 221,170
Real estate expenses  34,637   36,206    9,756    2,529    4,277    87,405
                    -------- -------- -------- -------- -------- ---------
Net operating
 income             $ 38,190 $ 47,836 $ 28,656 $  9,162 $  9,921   133,765
                    ======== ======== ======== ======== ======== ---------
  Interest                                                         (63,439)
  Depreciation/
   amortization                                                    (51,518)
  Administrative,
   advisory and
   trustee fees                                                     (5,203)
  Operating expenses                                                (1,344)
  Non-operating
   income                                                            2,760
                    -------- -------- -------- -------- -------- ---------
Income before
 minority interest
 and discontinued
 operations and
 (loss) gain on sale
 of other investments                                            $  15,021
                    ======== ======== ======== ======== ======== =========


                                        (in thousands)
                    -------------------------------------------------------
                     Multi-
                     Family  Commerc- Commerc- Commerc- Commerc-
Twelve Months Ended  Residen-  ial-     ial-     ial-     ial-
 April 30, 2007       tial    Office  Medical Industrial Retail     Total
                    -------- -------- -------- -------- -------- ---------
Real estate revenue $ 66,972 $ 73,603 $ 34,783 $  8,091 $ 14,089 $ 197,538
Real estate expenses  31,454   30,475    8,675    1,253    4,475    76,332
                    -------- -------- -------- -------- -------- ---------
Net operating
 Income             $ 35,518 $ 43,128 $ 26,108 $  6,838 $  9,614   121,206
                    ======== ======== ======== ======== ======== ---------
  Interest                                                         (58,424)
  Depreciation/
   amortization                                                    (45,501)
  Administrative,
   advisory and
   trustee fees                                                     (4,451)
  Operating expenses                                                (1,240)
  Non-operating
   income                                                            2,665
                    -------- -------- -------- -------- -------- ---------
Income before
 minority interest
 and discontinued
 operations and
 (loss) gain on sale
 of other investments                                            $  14,255
                    ======== ======== ======== ======== ======== =========




               INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
            CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
                          April 30, 2008 and 2007

                                                       (in thousands)
                                                  ------------------------
                                                   April 30,    April 30,
                                                      2008         2007
                                                  -----------  -----------
ASSETS
Real estate investments
   Property owned                                 $ 1,648,259  $ 1,489,287
   Less accumulated depreciation                     (219,379)    (180,544)
                                                  -----------  -----------
                                                    1,428,880    1,308,743
   Development in progress                             22,856        3,498
   Unimproved land                                      3,901        3,894
   Mortgage loans receivable, net of allowance            541          399
                                                  -----------  -----------
Total real estate investments                       1,456,178    1,316,534
                                                  -----------  -----------
Other assets
   Cash and cash equivalents                           53,481       44,516
   Marketable securities - available-for-sale             420        2,048
   Receivable arising from straight-lining of
    rents, net of allowance                            14,113       12,558
   Accounts receivable, net of allowance                4,163        3,171
   Real estate deposits                                 1,379          735
   Prepaid and other assets                               349          568
   Intangible assets, net of accumulated
    amortization                                       61,649       33,240
   Tax, insurance, and other escrow                     8,642        7,222
   Property and equipment, net                          1,467        1,458
   Goodwill                                             1,392        1,397
   Deferred charges and leasing costs, net             14,793       11,942
                                                  -----------  -----------
TOTAL ASSETS                                      $ 1,618,026  $ 1,435,389
                                                  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
   Accounts payable and accrued expenses          $    33,757  $    28,995
   Mortgages payable                                1,063,858      951,139
   Other                                                  978          896
                                                  -----------  -----------
TOTAL LIABILITIES                                   1,098,593      981,030
                                                  -----------  -----------

COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST IN PARTNERSHIPS                      12,609       12,925
MINORITY INTEREST OF UNITHOLDERS IN OPERATING
 PARTNERSHIP                                          161,818      156,465
   (21,238,342 units at April 30, 2008 and
    19,981,259 units at April 30, 2007)
SHAREHOLDERS' EQUITY
   Preferred Shares of Beneficial Interest
    (Cumulative redeemable preferred shares, no
    par value, 1,150,000 shares issued and
    outstanding at April 30, 2008 and April 30,
    2007, aggregate liquidation preference of
    $28,750,000)                                       27,317       27,317
   Common Shares of Beneficial Interest
    (Unlimited authorization, no par value,
    57,731,863 shares issued and outstanding at
    April 30, 2008, and 48,570,461 shares issued
    and outstanding at April 30, 2007)                440,187      354,495
   Accumulated distributions in excess of net
    income                                           (122,498)     (96,827)
   Accumulated other comprehensive loss                     0          (16)
                                                  -----------  -----------
Total shareholders' equity                            345,006      284,969
                                                  -----------  -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY        $ 1,618,026  $ 1,435,389
                                                  ===========  ===========

Contact Information

  • CONTACT INFO

    Michelle R. Saari
    Investors Real Estate Trust
    PO Box 1988
    12 Main Street S
    Minot, North Dakota 58701
    phone: 701.837.4738
    fax: 701.838.7785
    email: msaari@iret.com