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EX-99.1 - EARNINGS RELEASE - CENTERSPACEiretxhibit991-06302010.htm
8-K - IRET FORM 8-K CURRENT REPORT - CENTERSPACEiretform8k-06302010.htm

 
 

 

Exhibit 99.2
 

IRET Logo


Fourth Quarter Fiscal 2010
Supplemental Operating and Financial Data
for the Quarter Ended April 30, 2010
 

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

 
 

 


 

 

Supplemental Financial and Operating Data
April 30, 2010
 

 
 
Page
   
Company Background and Highlights
2
   
Investment Cost by Segment
5
   
Key Financial Data
 
Condensed Consolidated Balance Sheets
6
Condensed Consolidated Statements of Operations
7
Funds From Operations
8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
9
   
Capital Analysis
 
Long-Term Mortgage Debt Analysis
10
Long-Term Mortgage Debt Detail
11-12
Capital Analysis
13
   
Portfolio Analysis
 
Stabilized Properties Net Operating Income Summary
14
Net Operating Income Detail
15-18
Stabilized Properties and Overall Economic Occupancy Levels by Segment
19
   
Tenant Analysis
 
Commercial Leasing Summary
20-21
Multi-Family Residential Summary
22
10 Largest Commercial Tenants - Based on Annualized Base Rent
23
Lease Expirations as of April 30, 2010
24
   
Growth and Strategy
 
Fiscal 2010 Acquisition Summary
25
   
Definitions                                                                                                                                                       
26




Company Background and Highlights
Fourth Quarter Fiscal 2010
 
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, medical (including senior housing), industrial and retail segments.
 
During the fourth quarter of fiscal year 2010, on April 1, 2010, the Company acquired two multi-family residential properties in Rochester, Minnesota, with 48 units and 16 units, respectively.  The Company paid a total of approximately $3.6 million for the 48-unit apartment complex, a portion of which was paid in limited partnership units of the Company’s Operating Partnership (“Units”) valued at approximately $1.0 million, or $10.25 per unit, with the remainder consisting of the assumption of existing debt on the property.  The Company paid $720,000 in cash for the 16-unit apartment property.  The Company had no development projects placed in service or material dispositions in the fourth quarter of fiscal year 2010.
 
IRET continues to pursue its announced goal of transferring the management of the majority of its commercial and multi-family residential properties from third-party property management companies to its own employees. As of April 30, 2010, the Company has under internal management a total of 120 properties in its commercial industrial, medical, office and retail segments, totaling approximately 7.4 million square feet. Approximately 55.6% of the properties in the Company’s commercial industrial segment, 77.9% of the properties in its medical segment, 47.2% of the properties in its office segment, and 92.3% of the properties in its retail segment, were internally managed by Company employees as of April 30, 2010.  IRET continues to evaluate its portfolio of commercial properties to determine additional suitable candidates for internal management, and to establish appropriate timelines to accomplish the transfers.
 
The transition to internal management in the Company’s multi-family residential segment also continued during the fourth quarter of fiscal year 2010. As of April 30, 2010, approximately 39.7% of the properties in the Company’s multi-family residential segment were internally managed by Company employees, or approximately 3,963 units in 31 properties. During fiscal year 2010, the Company added a significant number of new employees, many of whom were hired to work in multi-family residential property management.  As of April 30, 2010, the Company had 218 employees, of which 191 were full-time and 27 part-time employees; of these 218 employees, 49 are corporate staff in our Minot, North Dakota and Eden Prairie, Minnesota offices, and 169 are property management employees based at our properties or in local property management offices. These additions to staff, and associated investments in equipment, accounting and other support systems, represent a significant expense to the Company, which is reflected in an increase in property management expense attributable to the Company’s internal property management initiative of approximately $1.4 million for the twelve months ended April 30, 2010, primarily in the multi-family residential segment.
 
On April 7, 2009, IRET and IRET Properties entered into a continuous equity offering program sales agreement with Robert W. Baird & Co. Incorporated (Baird).  Pursuant to the Sales Agreement, IRET may offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $50 million, from time to time through Baird as IRET's sales agent. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET. IRET has no obligation to sell any common shares in the program, and may at any time suspend solicitation and offers under the program or terminate the program. IRET sold no common shares under this program during the second and third quarters of fiscal year 2010. During the first quarter of fiscal year 2010, IRET sold 116,869 common shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $1.1 million. During the fourth quarter of fiscal year 2010, IRET sold 1.2 million shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $10.2 million.
 
IRET's fourth quarter fiscal year 2010 results reflect the continuing challenges the real estate industry faced during the three months ended April 30, 2010, and worsening conditions in IRET's multi-family residential segment in particular.  During this quarter, factors adversely affecting demand for IRET’s commercial and multi-family properties continued to be pervasive across the United States and in IRET’s markets, with commercial tenants continuing to focus on reducing costs through space reductions and lower rents. Additionally, continued job losses pressured occupancy and revenue in the Company’s multi-family residential segment. We expect current credit market conditions and the continued high level of unemployment to maintain or increase credit stresses on Company tenants, and continue to expect this tenant stress to lead to increases in past due accounts and vacancies.
 
In the fourth quarter of fiscal year 2010, IRET paid its 156th consecutive quarterly distribution per common share/unit at equal or increasing rates.  The $0.1715 per share/unit distribution was paid April 1, 2010.  At a regularly-scheduled meeting in the fourth quarter of fiscal year 2010, the Company’s Board of Trustees thought it prudent, given the current economic environment, the challenges facing the real estate industry, and a continuing deterioration in the Company’s occupancy rates and operating results, to maintain the Company’s common share/unit distribution at its current level ($0.1715 per share/unit), rather than continue the small quarterly increases in the distribution that had previously been the Company’s practice.  Company management and the Board continue to review the Company’s common share distribution level in conjunction with closely monitoring the Company’s operating results during this prolonged economic downturn.
 
As of April 30, 2010, IRET owns a diversified portfolio of 251 properties consisting of 78 multi-family residential properties, 67 office properties, 54 medical properties (including senior housing), 19 industrial properties and 33 retail properties.  IRET’s distributions have been maintained or increased every year for 39 consecutive years.  IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).
 



 

 

Company Snapshot
(as of April 30, 2010)
 
Company Headquarters                                                                        
Minot, North Dakota
Fiscal Year-End                                                                        
April 30
Reportable Segments                                                                        
Multi-Family Residential; Commercial Office, Medical, Industrial, Retail
Total Properties                                                                        
 251
Total Square Feet
 
(commercial properties)                                                                      
12.0 million
Total Units
 
(multi-family residential properties)                                                                      
9,691
Common Shares Outstanding (thousands)                                                                        
75,805
Limited Partnership Units Outstanding (thousands)
20,522
Common Share Distribution - Quarter/Annualized
$0.1715/$0.686
Dividend Yield                                                                        
7.9%
Total Capitalization (see p. 13 for detail)                                                                        
$1.9 billion

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

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

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



 

 

Common Share Data (NASDAQ: IRET)
 
   
4th Quarter
Fiscal Year 2010
   
3rd Quarter
Fiscal Year 2010
   
2nd Quarter
Fiscal Year 2010
   
1st Quarter
Fiscal Year 2010
   
4th Quarter
Fiscal Year 2009
 
High Closing Price
  $ 9.37     $ 9.40     $ 9.75     $ 9.47     $ 10.43  
Low Closing Price
  $ 8.31     $ 8.25     $ 8.19     $ 8.30     $ 8.60  
Average Closing Price
  $ 8.89     $ 8.82     $ 9.06     $ 8.73     $ 9.58  
Closing Price at end of quarter
  $ 8.73     $ 8.73     $ 8.37     $ 9.31     $ 9.25  
Common Share Distributions—annualized
  $ 0.686     $ 0.686     $ 0.684     $ 0.682     $ 0.680  
Closing Dividend Yield - annualized
    7.9 %     7.9 %     8.2 %     7.3 %     7.4 %
Closing common shares outstanding (thousands)
    75,805       73,966       73,502       63,788       60,304  
Closing limited partnership units outstanding (thousands)
    20,522       20,853       20,962       20,837       20,838  
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)
  $ 840,935     $ 827,770     $ 790,664     $ 787,859     $ 750,564  

 
Certain statements in these supplemental disclosures are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results.  Such risks, uncertainties and other factors include, but are not limited to:  fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2009 Form 10-K.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
 

 
Fourth Quarter Fiscal 2010 Acquisitions
 
 
Crown Apartments
2850 & 2852 59th Street NW, Rochester, MN 55901
Northern Valley Apartments
2826, 2834, 2840 & 2908, Northern Valley Drive
Rochester, MN 55906
crown apartments photo
northern valley apartments photo
   
   

 



 

 

Investment Cost by Segment – Fourth Quarter Fiscal 2010
 
With investments in the multi-family residential and commercial office, medical, industrial and retail segments, IRET’s diversified portfolio helps to provide stability during market fluctuations in returns from specific property types.
 
Investment Cost by Segment Pie Chart
 

 



 

 

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

 
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
ASSETS
                             
Real estate investments
                             
Property owned
  $ 1,800,519     $ 1,793,995     $ 1,749,489     $ 1,737,466     $ 1,729,585  
Less accumulated depreciation
    (308,626 )     (298,523 )     (286,555 )     (274,497 )     (262,871 )
      1,491,893       1,495,472       1,462,934       1,462,969       1,466,714  
Development in progress
    2,831       1,164       0       0       0  
Unimproved land
    6,007       5,987       5,966       5,713       5,701  
Mortgage loans receivable, net of allowance
    158       159       159       160       160  
Total real estate investments
    1,500,889       1,502,782       1,469,059       1,468,842       1,472,575  
Other assets
                                       
Cash and cash equivalents
    54,791       47,790       102,732       43,935       33,244  
Restricted cash
    0       36,500       0       0       0  
Marketable securities – available-for-sale
    420       420       420       420       420  
Receivable arising from straight-lining of rents, net of allowance
    17,320       17,102       16,588       16,201       16,012  
Accounts receivable, net of allowance
    4,916       5,259       4,830       4,148       2,738  
Real estate deposits
    516       978       635       460       88  
Prepaid and other assets
    1,189       1,903       2,750       2,900       1,051  
Intangible assets, net of accumulated amortization
    50,700       52,797       48,118       49,820       52,173  
Tax, insurance, and other escrow
    9,301       10,044       6,661       7,984       7,261  
Property and equipment, net of accumulated depreciation
    1,392       1,332       1,450       1,293       1,015  
Goodwill
    1,388       1,392       1,392       1,392       1,392  
Deferred charges and leasing costs, net of accumulated amortization
    18,108       17,637       17,273       16,958       17,122  
TOTAL ASSETS
  $ 1,660,930     $ 1,695,936     $ 1,671,908     $ 1,614,353     $ 1,605,091  
                                         
LIABILITIES AND EQUITY
                                       
LIABILITIES
                                       
Accounts payable and accrued expenses
  $ 38,514     $ 36,453     $ 29,760     $ 32,508     $ 32,773  
Revolving lines of credit
    6,550       6,579       6,594       13,000       5,500  
Mortgages payable
    1,057,619       1,091,945       1,060,131       1,055,705       1,070,158  
Other
    1,320       1,368       1,421       1,455       1,516  
TOTAL LIABILITIES
    1,104,003       1,136,345       1,097,906       1,102,668       1,109,947  
                                         
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES
    1,812       1,765       1,943       1,908       1,737  
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
    583,618       569,439       566,395       490,441       461,648  
Accumulated distributions in excess of net income
    (201,412 )     (189,340 )     (176,580 )     (165,349 )     (155,956 )
Total Investors Real Estate Trust shareholders’ equity
    409,523       407,416       417,132       352,409       333,009  
Noncontrolling interests – Operating Partnership
    134,970       139,448       143,260       145,120       148,199  
Noncontrolling interests – consolidated real estate entities
    10,622       10,962       11,667       12,248       12,199  
Total equity
    555,115       557,826       572,059       509,777       493,407  
TOTAL LIABILITIES AND EQUITY
  $ 1,660,930     $ 1,695,936     $ 1,671,908     $ 1,614,353     $ 1,605,091  

 



 

 

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

 
   
Twelve Months Ended
   
Three Months Ended
 
OPERATING RESULTS
 
04/30/2010
   
04/30/2009
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
Real estate revenue
  $ 242,775     $ 240,005     $ 62,228     $ 60,130     $ 59,596     $ 60,821     $ 60,652  
Real estate expenses
    101,541       98,151       26,631       26,009       24,485       24,416       24,495  
Gain on involuntary conversion
    1,660       0       0       1,660       0       0       0  
Net operating income
    142,894       141,854       35,597       35,781       35,111       36,405       36,157  
Depreciation/amortization
    (59,763 )     (56,714 )     (15,061 )     (15,078 )     (14,981 )     (14,643 )     (14,438 )
Administrative expenses, advisory and trustee services
    (6,218 )     (4,882 )     (1,443 )     (1,790 )     (1,498 )     (1,487 )     (976 )
Other expenses
    (2,513 )     (1,440 )     (1,045 )     (536 )     (498 )     (434 )     (283 )
Impairment of real estate investment
    (1,678 )     (338 )     0       (818 )     (860 )     0       (338 )
Interest
    (69,106 )     (68,743 )     (17,058 )     (17,447 )     (17,200 )     (17,401 )     (17,436 )
Other income
    901       922       394       252       126       129       234  
Gain on sale of other investments
    68       54       68       0       0       0       0  
Net income
  $ 4,585     $ 10,713     $ 1,452     $ 364     $ 200     $ 2,569     $ 2,920  
                                                         
Net (income) loss attributable to noncontrolling interest – Operating Partnership
    (562 )     (2,227 )     (181 )     39       59       (479 )     (596 )
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities
    (22 )     40       (24 )     49       26       (73 )     (57 )
Net income attributable to Investors Real Estate Trust
    4,001       8,526       1,247       452       285       2,017       2,267  
Dividends to preferred shareholders
    (2,372 )     (2,372 )     (593 )     (593 )     (593 )     (593 )     (593 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 1,629     $ 6,154     $ 654     $ (141 )   $ (308 )   $ 1,424     $ 1,674  
                                                         
Per Share Data
                                                       
Net income per common share – basic & diluted
  $ .03     $ .11     $ .01     $ .00     $ .00     $ .02     $ .03  
                                                         
Percentage of Revenues
                                                       
Real estate expenses
    41.8 %     40.9 %     42.8 %     43.3 %     41.1 %     40.1 %     40.4 %
Interest
    28.5 %     28.6 %     27.4 %     29.0 %     28.9 %     28.6 %     28.7 %
Depreciation/amortization
    24.6 %     23.6 %     24.2 %     25.1 %     25.1 %     24.1 %     23.8 %
General and administrative
    2.6 %     2.0 %     2.3 %     3.0 %     2.5 %     2.4 %     1.6 %
Net income
    1.9 %     4.5 %     2.3 %     0.6 %     0.3 %     4.2 %     4.8 %
                                                         
Ratios
                                                       
EBITDA(1)/Interest expense
    1.92 x     1.97 x     1.95 x     1.88 x     1.88 x     1.98 x     1.99 x
EBITDA/Interest expense plus preferred distributions
    1.86 x     1.90 x     1.88 x     1.82 x     1.82 x     1.92 x     1.92 x
 
(1)
See Definitions on page 26.  EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income (loss).
 



 

 

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

 
   
Twelve Months Ended
   
Three Months Ended
 
   
04/30/2010
   
04/30/2009
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
Funds From Operations(1)
                                         
Net income attributable to Investors Real Estate Trust
  $ 4,001     $ 8,526     $ 1,247     $ 452     $ 285     $ 2,017     $ 2,267  
Less dividends to preferred shareholders
    (2,372 )     (2,372 )     (593 )     (593 )     (593 )     (593 )     (593 )
Net income (loss) available to common shareholders
    1,629       6,154       654       (141 )     (308 )     1,424       1,674  
Adjustments:
                                                       
Noncontrolling interests – Operating Partnership
    562       2,227       181       (39 )     (59 )     479       596  
Depreciation and amortization
    59,383       56,295       14,993       14,865       14,926       14,599       14,360  
Gain on depreciable property sales
    (68 )     (54 )     (68 )     0       0       0       0  
Funds from operations applicable to common shares and Units
  $ 61,506     $ 64,622     $ 15,760     $ 14,685     $ 14,559     $ 16,502     $ 16,630  
                                                         
FFO per share and unit - basic and diluted
  $ 0.69     $ 0.81     $ 0.17     $ 0.16     $ 0.16     $ 0.20     $ 0.21  
Weighted average shares and units
    89,918       79,820       94,979     $ 94,516     $ 87,162     $ 83,223     $ 80,361  
 
(1)
See Definitions on page 26.
 


 


 

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

 
   
Twelve Months Ended
   
Three Months Ended
 
   
04/30/2010
   
04/30/2009
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
EBITDA(1)
                                         
Net income attributable to Investors Real Estate Trust
  $ 4,001     $ 8,526     $ 1,247     $ 452     $ 285     $ 2,017     $ 2,267  
Adjustments:
                                                       
Noncontrolling interests – Operating Partnership
    562       2,227       181       (39 )     (59 )     479       596  
Income before noncontrolling interests – Operating Partnership
    4,563       10,753       1,428       413       226       2,496       2,863  
Add:
                                                       
Interest
    69,106       68,743       17,058       17,447       17,200       17,401       17,436  
Depreciation/amortization related to real estate investments
    57,393       54,646       14,407       14,486       14,432       14,068       13,825  
Amortization related to non-real estate investments
    2,370       2,068       654       592       549       575       613  
Amortization related to real estate revenues(2)
    118       (133 )     26       28       30       34       3  
Less:
                                                       
Interest income
    (546 )     (607 )     (278 )     (140 )     (62 )     (66 )     (51 )
Gain on sale of real estate, land and other investments
    (68 )     (54 )     (68 )     0       0       0       0  
EBITDA
  $ 132,936     $ 135,416     $ 33,227     $ 32,826     $ 32,375     $ 34,508     $ 34,689  
 
(1)  
See Definitions on page 26.
(2)  
Included in real estate revenue in the Statement of Operations.
 
 

 



 

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

Total Mortage Debt Bar Chart
 
 

     
 
Future Maturities of Debt
 
Fiscal Year
   
Fixed Debt
   
Variable Debt
   
Total Debt
   
Weighted
Average(1)
   
% of
Total Debt
 
2011     $ 77,406     $ 3,403     $ 80,809       7.50 %     7.7 %
2012       94,438       0       94,438       7.01 %     8.9 %
2013       22,747       0       22,747       5.75 %     2.2 %
2014       46,914       935       47,849       6.17 %     4.5 %
2015       80,700       0       80,700       5.73 %     7.6 %
2016       71,619       220       71,839       5.89 %     6.8 %
2017       187,352       23,400       210,752       6.07 %     19.9 %
2018       88,488       0       88,488       5.80 %     8.4 %
2019       66,198       646       66,844       6.44 %     6.3 %
2020       121,692       0       121,692       5.85 %     11.5 %
Thereafter
      171,052       409       171,461       5.88 %     16.2 %
Total maturities
    $ 1,028,606     $ 29,013     $ 1,057,619       6.17 %     100.0 %
(1)  
Weighted average interest rate of debt that matures in fiscal year.
 
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
Balances Outstanding
                             
Mortgage
                             
Fixed rate
  $ 1,028,606     $ 1,086,264     $ 1,054,363     $ 1,046,530     $ 1,060,581  
Variable rate
    29,013       5,681       5,768       9,175       9,577  
Mortgage total
    1,057,619       1,091,945       1,060,131       1,055,705       1,070,158  
                                         
Weighted Average Interest Rates
                                       
Secured
    6.17 %     6.21 %     6.27 %     6.31 %     6.30 %



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT DETAIL AS OF APRIL 30, 2010

Property
Maturity Date
 
Fiscal 2011
   
Fiscal 2012
   
Fiscal 2013
   
Fiscal 2014
   
Thereafter
   
Total(1)
 
Multi-Family Residential
                                     
 The Meadows I - Jamestown, ND
8/1/2010
  $ 891     $ 0     $ 0     $ 0     $ 0     $ 891  
 The Meadows II - Jamestown, ND
8/1/2010
    891       0       0       0       0       891  
 17 South Main Apartments - Minot, ND
11/1/2010
    194       0       0       0       0       194  
 401 South Main Apartments - Minot, ND
11/1/2010
    681       0       0       0       0       681  
 Minot 4th Street Apartments - Minot, ND
11/1/2010
    97       0       0       0       0       97  
 Minot 11th Street Apartments - Minot, ND
11/1/2010
    97       0       0       0       0       97  
 Minot Fairmont Apartments - Minot, ND
11/1/2010
    389       0       0       0       0       389  
 Minot Westridge Apartments - Minot, ND
11/1/2010
    1,944       0       0       0       0       1,944  
 Olympic Village - Billings, MT
11/1/2010
    7,530       0       0       0       0       7,530  
 Southview Apartments - Minot, ND
11/1/2010
    713       0       0       0       0       713  
 Valley Park Manor - Grand Forks, ND(2)
11/1/2010
    2,672       0       0       0       0       2,672  
 Valley Park Manor - Grand Forks, ND(2)
11/1/2010
    811       0       0       0       0       811  
 Ridge Oaks Apartments - Sioux City, IA
2/1/2011
    2,572       0       0       0       0       2,572  
 Sunset Trail I - Rochester, MN
3/1/2011
    3,870       0       0       0       0       3,870  
 Sunset Trail II - Rochester, MN
3/1/2011
    3,750       0       0       0       0       3,750  
 Oakwood - Sioux Falls, SD
6/1/2011
    0       3,410       0       0       0       3,410  
 Oxbow - Sioux Falls, SD
6/1/2011
    0       3,715       0       0       0       3,715  
 Chateau Apartments - Minot, ND
7/1/2011
    0       1,767       0       0       0       1,767  
 Oakmont Apartments - Sioux Falls, SD
9/1/2011
    0       3,673       0       0       0       3,673  
 Canyon Lake Apartments - Rapid City, SD
10/1/2011
    0       2,649       0       0       0       2,649  
 The Meadows III - Jamestown, ND
11/1/2011
    0       972       0       0       0       972  
 Crown Apartments - Rochester, MN
1/1/2012
    0       2,566       0       0       0       2,566  
 Monticello Apartments - Monticello, MN
3/1/2013
    0       0       3,086       0       0       3,086  
 Quarry Ridge Apartments - Rochester, MN
10/1/2013
    0       0       0       12,384       0       12,384  
 East Park Apartments - Sioux Falls, SD
12/1/2013
    0       0       0       1,562       0       1,562  
 Sycamore Village Apartments - Sioux Falls, SD
12/1/2013
    0       0       0       878       0       878  
 Landmark Estates Apartments - Grand Forks, ND(4)
12/19/2013
    0       0       0       1,583       0       1,583  
 Candlelight Apartments - Fargo, ND
3/1/2014
    0       0       0       1,354       0       1,354  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       264,044       264,044  
Sub-Total Multi-Family Residential
    $ 27,102     $ 18,752     $ 3,086     $ 17,761     $ 264,044     $ 330,745  
                                                   
Commercial Office
                                                 
 Brenwood - Minnetonka, MN
10/1/2010
  $ 7,410     $ 0     $ 0     $ 0     $ 0       7,410  
 Nicollet VII - Burnsville, MN
12/1/2010
    3,968       0       0       0       0       3,968  
 Dewey Hill Business Center - Edina, MN
1/1/2011
    2,583       0       0       0       0       2,583  
 Plymouth IV - Plymouth, MN
1/1/2011
    3,169       0       0       0       0       3,169  
 Plymouth V - Plymouth, MN
1/1/2011
    4,561       0       0       0       0       4,561  
 Whitewater Plaza - Minnetonka, MN
3/1/2011
    2,643       0       0       0       0       2,643  
 Whitewater Plaza - Minnetonka, MN
3/1/2011
    1,370       0       0       0       0       1,370  
 2030 Cliff Road - Eagan, MN
4/1/2011
    468       0       0       0       0       468  
 Cold Spring Center - St. Cloud, MN
4/1/2011
    4,034       0       0       0       0       4,034  
 Pillsbury Business Center - Edina, MN
4/1/2011
    908       0       0       0       0       908  
 Golden Hills Office Center - Golden Valley, MN
7/1/2011
    0       14,345       0       0       0       14,345  
 Wells Fargo Center - St Cloud, MN
7/1/2011
    0       6,624       0       0       0       6,624  
 Interlachen Corporate Center - Eagan, MN
10/11/2011
    0       9,590       0       0       0       9,590  
 Bloomington Business Plaza - Bloomington, MN
12/1/2011
    0       4,170       0       0       0       4,170  
 Wirth Corporate Center - Golden Valley, MN
2/1/2012
    0       4,025       0       0       0       4,025  
 Great Plains - Fargo, ND
10/1/2013
    0       0       0       4,254       0       4,254  
 Viromed - Eden Prairie, MN
4/1/2014
    0       0       0       1,170       0       1,170  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       277,975       277,975  
Sub-Total Commercial Office
    $ 31,114     $ 38,754     $ 0     $ 5,424     $ 277,975     $ 353,267  

 




INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT DETAIL AS OF APRIL 30, 2010 (continued)

Property
Maturity Date
 
Fiscal 2011
   
Fiscal 2012
   
Fiscal 2013
   
Fiscal 2014
   
Thereafter
   
Total(1)
 
Commercial Medical
                                     
 Edina 6545 France SMC I - Edina, MN
1/1/2011
  $ 21,625     $ 0     $ 0     $ 0     $ 0     $ 21,625  
 Edina 6525 France SMC II - Edina, MN
6/1/2011
    0       9,719       0       0       0       9,719  
 Edina 6405 France Medical - Edina, MN(4)
1/1/2012
    0       9,120       0       0       0       9,120  
 Edina 6363 France Medical - Edina, MN
4/1/2012
    0       7,969       0       0       0       7,969  
 Fox River Cottages - Grand Chute, WI
5/1/2012
    0       0       2,266       0       0       2,266  
 High Pointe Health Campus - Lake Elmo, MN
12/1/2013
    0       0       0       2,951       0       2,951  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       203,156       203,156  
Sub-Total Commercial Medical
    $ 21,625     $ 26,808     $ 2,266     $ 2,951     $ 203,156     $ 256,806  
                                                   
Commercial Industrial
                                                 
 Eagan 2785 & 2795 Highway 55 - Eagan, MN
6/1/2011
  $ 0     $ 3,703     $ 0     $ 0     $ 0     $ 3,703  
 Stone Container - Roseville, MN
2/1/2012
    0       3,965       0       0       0       3,965  
 Minnetonka 13600 County Road 62 - Minnetonka, MN
2/27/2012
    0       2,456       0       0       0       2,456  
 Dixon Avenue Industrial Park - Des Moines, IA
1/1/2013
    0       0       7,548       0       0       7,548  
 Bloomington 2000 West 94th Street - Bloomington, MN
3/1/2013
    0       0       3,986       0       0       3,986  
 Roseville 2929 Long Lake Road - Roseville, MN
3/1/2013
    0       0       5,861       0       0       5,861  
 Bodycote Industrial Building - Eden Prairie, MN
9/1/2013
    0       0       0       1,251       0       1,251  
 Cedar Lake Business Center - St. Louis Park, MN
11/1/2013
    0       0       0       2,439       0       2,439  
 Woodbury 1865 Woodlane - Woodbury, MN
11/1/2013
    0       0       0       2,870       0       2,870  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       30,438       30,438  
Sub-Total Commercial Industrial
    $ 0     $ 10,124       17,395     $ 6,560     $ 30,438     $ 64,517  
                                                   
Commercial Retail
                                                 
 Minot Plaza - Minot, ND(3)
8/1/2010
  $ 612     $ 0     $ 0     $ 0     $ 0     $ 612  
 Kentwood Thomasville Furniture - Kentwood, MI
2/1/2011
    356       0       0       0       0       356  
 Burnsville I Strip Center - Burnsville, MN
6/30/2013
    0       0       0       521       0       521  
 Burnsville II Strip Center - Burnsville, MN
6/30/2013
    0       0       0       414       0       414  
 St Cloud Westgate - St Cloud, MN
10/10/2013
    0       0       0       3,537       0       3,537  
 Ladysmith Pamida - Ladysmith, WI
12/19/2013
    0       0       0       1,045       0       1,045  
 Livingston Pamida - Livingston, MT
12/19/2013
    0       0       0       1,241       0       1,241  
 Eagan I Retail Center - Eagan, MN
12/22/2013
    0       0       0       1,452       0       1,452  
 Forest Lake Westlake Center - Forest Lake, MN
12/22/2013
    0       0       0       4,644       0       4,644  
 Pine City C-Store  - Pine City, MN
4/20/2014
    0       0       0       322       0       322  
 Pine City Evergreen Square - Pine City, MN
4/20/2014
    0       0       0       1,977       0       1,977  
 Summary of Debt due after Fiscal 2014
      0       0       0       0       36,163       36,163  
Sub-Total Commercial Retail
    $ 968     $ 0     $ 0     $ 15,153     $ 36,163     $ 52,284  
                                                   
Total
    $ 80,809     $ 94,438     $ 22,747     $ 47,849     $ 811,776     $ 1,057,619  
 
(1)
Totals are principal balances as of April 30, 2010.
(2)
Refinanced on May 19, 2010.
(3)
Refinanced on June 8, 2010.
(4)
Currently in discussion with lenders for refinance.




 

 

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

 
     
Three Months Ended
 
         
04/30/2010
 
01/31/2010
 
10/31/2009
 
07/31/2009
 
04/30/2009
 
Equity Capitalization
                                         
Common shares outstanding
                75,805       73,966       73,502       63,788       60,304  
Operating partnership (OP) units outstanding
                20,522       20,853       20,962       20,837       20,838  
Total common shares and OP units outstanding
                96,327       94,819       94,464       84,625       81,142  
Market price per common share (closing price at end of period)
              $ 8.73     $ 8.73     $ 8.37     $ 9.31     $ 9.25  
Equity capitalization-common shares and OP units
              $ 840,935     $ 827,770     $ 790,664     $ 787,859     $ 750,564  
Recorded book value of preferred shares
              $ 27,317     $ 27,317     $ 27,317     $ 27,317     $ 27,317  
Total equity capitalization
              $ 868,252     $ 855,087     $ 817,981     $ 815,176     $ 777,881  
                                                     
Debt Capitalization
                                                   
Total mortgage debt
              $ 1,057,619     $ 1,091,945     $ 1,060,131     $ 1,055,705     $ 1,070,158  
Total capitalization
              $ 1,925,871     $ 1,947,032     $ 1,878,112     $ 1,870,881     $ 1,848,039  
                                                     
Total debt to total capitalization
             
0.55:1
   
0.56:1
   
0.56:1
   
0.56:1
   
0.58:1
 
                                                     
                                             
                                             
                                             
 
Twelve Months Ended
 
Three Months Ended
 
 
04/30/2010
 
04/30/2009
 
04/30/2010
 
01/31/2010
 
10/31/2009
 
07/31/2009
 
04/30/2009
 
Earnings to fixed charges(1)
    1.06 x     1.14 x     1.07 x     1.03 x     1.02 x     1.11 x     1.16 x
Earnings to combined fixed charges and preferred distributions(1)
    1.02 x     1.10 x     1.04 x     0.99 x     0.98 x     1.08 x     1.13 x
Debt service coverage ratio(1)
    1.37 x     1.42 x     1.39 x     1.36 x     1.36 x     1.39 x     1.42 x
                                                         
Distribution Data
                                                       
Common shares and units outstanding at record date
    94,844       80,323       94,844       94,497       84,818       84,280       80,323  
Total common distribution paid
  $ 61,346     $ 53,995     $ 16,267     $ 16,205     $ 14,504     $ 14,370     $ 13,656  
Common distribution per share and unit
  $ .6845     $ .6770     $ .1715     $ .1715     $ .1710     $ .1705     $ 0.1700  
Payout ratio (FFO per share and unit basis)(1)
    99.2 %     83.6 %     100.9 %     107.2 %     106.9 %     85.3 %     81.0 %
 
(1)  
See Definitions on page 26.
 



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY
(in thousands)
 

 
   
Stabilized Properties(1)
   
Stabilized Properties
 
   
Three Months Ended
April 30,
   
Twelve Months Ended
April 30,
 
Segment
 
2010
   
2009
   
%
Change
   
2010
   
2009
   
%
Change
 
Multi-Family Residential
  $ 8,966     $ 9,970       (10.1 %)   $ 36,829     $ 39,593       (7.0 %)
Commercial Office
    11,136       11,690       (4.7 %)     45,301       45,713       (0.9 %)
Commercial Medical
    9,289       9,150       1.5 %     37,216       35,946       3.5 %
Commercial Industrial
    2,195       2,305       (4.8 %)     8,486       9,371       (9.4 %)
Commercial Retail
    2,114       2,449       (13.7 %)     8,624       9,491       (9.1 %)
    $ 33,700     $ 35,564       (5.2 %)   $ 136,456     $ 140,114       (2.6 %)
 
(1)
For Three and Twelve Months Ended April 30, 2010, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND; Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.
 
Total number of units, 497. Occupancy % for April 30, 2010 is 90.7%.
 
Commercial Office -
Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND.
 
Total square footage, 87,810. Occupancy % for April 30, 2010 is 41.6%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN; Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY and Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY.
 
Total square footage, 294,238. Occupancy % for April 30, 2010 is 100.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA.
 
Total square footage, 112,494. Occupancy % for April 30, 2010 is 100.0%.
 
For Three and Twelve Months ended April 30, 2009, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN and 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND and Sweetwater Community, Grafton, ND.
 
Total number of units, 451. Occupancy % for April 30, 2009 is 85.8%.
 
Commercial Office -
401 South Main, Minot, ND; Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND and 12 South Main, Minot ND.
 
Total square footage, 82,986. Occupancy % for April 30, 2009 is 87.8%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN.
 
Total square footage, 56,239. Occupancy % for April 30, 2009 is 72.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN
 
Total square footage, 69,984. Occupancy % for April 30, 2009 is 100.0%.
 
 

 


 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)
 
   
Three Months Ended April 30, 2010
 
   
Reporting Segments
             
   
Multi-Family
Residential
   
Commercial
Office
   
Commercial
Medical
   
Commercial
Industrial
   
Commercial
Retail
   
Corporate and
 Other
   
Total
 
Real estate rental revenue
                                         
Stabilized(1)
  $ 17,979     $ 20,127     $ 12,950     $ 3,107     $ 3,443     $ 0     $ 57,606  
Non-Stabilized
    1,052       0       3,337       233       0       0       4,622  
Total
    19,031       20,127       16,287       3,340       3,443       0       62,228  
                                                         
Real estate expenses
                                                       
Stabilized(1)
    9,013       8,991       3,661       912       1,329       0       23,906  
Non-Stabilized
    466       90       2,108       61       0       0       2,725  
Total
    9,479       9,081       5,769       973       1,329       0       26,631  
                                                         
Stabilized(1)
    8,966       11,136       9,289       2,195       2,114       0       33,700  
Non-Stabilized
    586       (90 )     1,229       172       0       0       1,897  
Net operating income
  $ 9,552     $ 11,046     $ 10,518     $ 2,367     $ 2,114     $ 0     $ 35,597  
                                                         
Reconciliation of NOI to net income (loss) available to common shareholders
                                                       
Depreciation/amortization
  $ (3,881 )   $ (5,542 )   $ (3,880 )   $ (943 )   $ (726 )   $ (89 )   $ (15,061 )
Administrative, advisory and trustee fees
    0       0       0       0       0       (1,443 )     (1,443 )
Other expenses
    0       0       0       0       0       (1,045 )     (1,045 )
Interest expense
    (4,959 )     (5,601 )     (4,600 )     (1,023 )     (814 )     (61 )     (17,058 )
Other income
    0       0       0       0       0       394       394  
Gain on sale of other investments
    0       0       0       0       0       68       68  
Net income (loss)
    712       (97 )     2,038       401       574       (2,176 )     1,452  
Net income attributable to noncontrolling interests – Operating Partnership
    0       0       0       0       0       (181 )     (181 )
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities
    0       0       0       0       0       (24 )     (24 )
Net income (loss) attributable to Investors Real Estate Trust
    712       (97 )     2,038       401       574       (2,381 )     1,247  
Dividends to preferred shareholders
    0       0       0       0       0       (593 )     (593 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 712     $ (97 )   $ 2,038     $ 401     $ 574     $ (2,974 )   $ 654  
 
(1)
For Three Months Ended April 30, 2010, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND; Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.
 
Total number of units, 497. Occupancy % for April 30, 2010 is 90.7%.
 
Commercial Office -
Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND.
 
Total square footage, 87,810. Occupancy % for April 30, 2010 is 41.6%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN; Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY and Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY.
 
Total square footage, 294,238. Occupancy % for April 30, 2010 is 100.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA.
 
Total square footage, 112,494. Occupancy % for April 30, 2010 is 100.0%.


 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

   
Three Months Ended April 30, 2009
 
   
Reporting Segments
             
   
Multi-Family
Residential
   
Commercial
Office
   
Commercial
Medical
   
Commercial
Industrial
   
Commercial
Retail
   
Corporate and
Other
   
Total
 
Real estate rental revenue
                                         
Stabilized(1)
  $ 18,458     $ 21,058     $ 13,014     $ 3,068     $ 3,605     $ 0     $ 59,203  
Non-Stabilized
    861       67       379       142       0       0       1,449  
Total
    19,319       21,125       13,393       3,210       3,605       0       60,652  
                                                         
Real estate expenses
                                                       
Stabilized(1)
    8,488       9,368       3,864       763       1,156       0       23,639  
Non-Stabilized
    613       82       122       39       0       0       856  
Total
    9,101       9,450       3,986       802       1,156       0       24,495  
                                                         
Net Operating Income (NOI)
                                                       
Stabilized(1)
    9,970       11,690       9,150       2,305       2,449       0       35,564  
Non-Stabilized
    248       (15 )     257       103       0       0       593  
Net operating income
  $ 10,218     $ 11,675     $ 9,407     $ 2,408     $ 2,449     $ 0     $ 36,157  
                                                         
Reconciliation of NOI to net income (loss) available to common shareholders
                                                       
Depreciation/amortization
  $ (3,690 )   $ (5,744 )   $ (3,667 )   $ (532 )   $ (732 )   $ (73 )   $ (14,438 )
Administrative, advisory and trustee fees
    0       0       0       0       0       (976 )     (976 )
Other expenses
    0       0       0       0       0       (283 )     (283 )
Impairment of real estate investment
    0       (338 )     0       0       0       0       (338 )
Interest (expense) income
    (5,190 )     (5,933 )     (4,232 )     (1,004 )     (977 )     (100 )     (17,436 )
Other income
    0       0       0       0       0       234       234  
Net income (loss)
    1,338       (340 )     1,508       872       740       (1,198 )     2,920  
Net income attributable to noncontrolling interests – Operating Partnership
    0       0       0       0       0       (596 )     (596 )
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities
    0       0       0       0       0       (57 )     (57 )
Net income (loss) attributable to Investors Real Estate Trust
    1,338     $ (340 )   $ 1,508     $ 872     $ 740     $ (1,851 )   $ 2,267  
Dividends to preferred shareholders
    0       0       0       0       0       (593 )     (593 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 1,338     $ (340 )   $ 1,508     $ 872     $ 740     $ (2,444 )   $ 1,674  
 
(1)
For Three Months ended April 30, 2009, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN and 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND and Sweetwater Community, Grafton, ND.
 
Total number of units, 451. Occupancy % for April 30, 2009 is 85.8%.
 
Commercial Office -
401 South Main, Minot, ND; Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND and 12 South Main, Minot ND.
 
Total square footage, 82,986. Occupancy % for April 30, 2009 is 87.8%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN.
 
Total square footage, 56,239. Occupancy % for April 30, 2009 is 72.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN
 
Total square footage, 69,984. Occupancy % for April 30, 2009 is 100.0%.
 
 

 


INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)
 
   
Twelve Months Ended April 30, 2010
 
   
Reporting Segments
             
   
Multi-Family
Residential
   
Commercial
Office
   
Commercial
Medical
   
Commercial
Industrial
   
Commercial
Retail
   
Corporate and
 Other
   
Total
 
Real estate rental revenue
                                         
Stabilized(1)
  $ 72,867     $ 81,904     $ 51,710     $ 12,462     $ 13,503     $ 0     $ 232,446  
Non-Stabilized
    3,563       175       5,749       842       0       0       10,329  
Total
    76,430       82,079       57,459       13,304       13,503       0       242,775  
                                                         
Real estate expenses
                                                       
Stabilized(1)
    36,038       36,603       14,494       3,976       4,879       0       95,990  
Non-Stabilized
    1,674       244       3,410       223       0       0       5,551  
Total
    37,712       36,847       17,904       4,199       4,879       0       101,541  
                                                         
Gain on involuntary conversion
                                                       
Non-Stabilized
    1,660       0       0       0       0       0       1,660  
Total
    1,660       0       0       0       0       0       1,660  
                                                         
Net Operating Income (NOI)
                                                       
Stabilized(1)
    36,829       45,301       37,216       8,486       8,624       0       136,456  
Non-Stabilized
    3,549       (69 )     2,339       619       0       0       6,438  
Net operating income
  $ 40,378     $ 45,232     $ 39,555     $ 9,105     $ 8,624     $ 0     $ 142,894  
                                                         
Reconciliation of NOI to net income (loss) available to common shareholders
                                                       
Depreciation/amortization
  $ (15,288 )   $ (22,322 )   $ (14,727 )   $ (3,766 )   $ (3,178 )   $ (482 )   $ (59,763 )
Administrative, advisory and trustee fees
    0       0       0       0       0       (6,218 )     (6,218 )
Other expenses
    0       0       0       0       0       (2,513 )     (2,513 )
Impairment of real estate investments
    0               0       0       (1,678 )     0       (1,678 )
Interest expense
    (20,259 )     (23,180 )     (17,542 )     (4,113 )     (3,551 )     (461 )     (69,106 )
Other income
    0       0       0       0       0       901       901  
Gain on sale of other investments
    0       0       0       0       0       68       68  
Net income (loss)
    4,831       (270 )     7,286       1,226       217       (8,705 )     4,585  
Net income attributable to noncontrolling interests – Operating Partnership
    0       0       0       0       0       (562 )     (562 )
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities
    0       0       0       0       0       (22 )     (22 )
Net income (loss) attributable to Investors Real Estate Trust
    4,831       (270 )     7,286       1,226       217       (9,289 )     4,001  
Dividends to preferred shareholders
    0       0       0       0       0       (2,372 )     (2,372 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 4,831     $ (270 )   $ 7,286     $ 1,226     $ 217     $ (11,661 )   $ 1,629  
 
(1)
For Twelve Months Ended April 30, 2010, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND; Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.
 
Total number of units, 497. Occupancy % for April 30, 2010 is 90.7%.
 
Commercial Office -
Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND.
 
Total square footage, 87,810. Occupancy % for April 30, 2010 is 41.6%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN; Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY and Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY.
 
Total square footage, 294,238. Occupancy % for April 30, 2010 is 100.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA.
 
Total square footage, 112,494. Occupancy % for April 30, 2010 is 100.0%.


 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

   
Twelve Months Ended April 30, 2009
 
   
Reporting Segments
             
   
Multi-Family
Residential
   
Commercial
Office
   
Commercial
Medical
   
Commercial
Industrial
   
Commercial
Retail
   
Corporate and
Other
   
Total
 
Real estate rental revenue
                                         
Stabilized(1)
  $ 74,243     $ 83,246     $ 51,546     $ 12,550     $ 14,568     $ 0     $ 236,153  
Non-Stabilized
    2,473       200       1,018       161       0       0       3,852  
Total
    76,716       83,446       52,564       12,711       14,568       0       240,005  
                                                         
Real estate expenses
                                                       
Stabilized(1)
    34,650       37,533       15,600       3,179       5,077       0       96,039  
Non-Stabilized
    1,512       111       446       43       0       0       2,112  
Total
    36,162       37,644       16,046       3,222       5,077       0       98,151  
                                                         
Net Operating Income (NOI)
                                                       
Stabilized(1)
    39,593       45,713       35,946       9,371       9,491       0       140,114  
Non-Stabilized
    961       89       572       118       0       0       1,740  
Net operating income
  $ 40,554     $ 45,802     $ 36,518     $ 9,489     $ 9,491     $ 0     $ 141,854  
                                                         
Reconciliation of NOI to net income (loss) available to common shareholders
                                                       
Depreciation/amortization
  $ (14,225 )   $ (22,371 )   $ (13,363 )   $ (3,600 )   $ (2,902 )   $ (253 )   $ (56,714 )
Administrative, advisory and trustee fees
    0       0       0       0       0       (4,882 )     (4,882 )
Other expenses
    0       0       0       0       0       (1,440 )     (1,440 )
Impairment of real estate
    0       (338 )     0       0       0       0       (338 )
Interest (expense) income
    (20,304 )     (23,970 )     (17,186 )     (3,909 )     (4,038 )     664       (68,743 )
Other income
    0       0       0       0       0       922       922  
Gain on sale of other investments
    0       0       0       0       0       54       54  
Net income (loss)
    6,025       (877 )     5,969       1,980       2,551       (4,935 )     10,713  
Net income attributable to noncontrolling interests – Operating Partnership
    0       0       0       0       0       (2,227 )     (2,227 )
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities
    0       0       0       0       0       40       40  
Net income (loss) attributable to Investors Real Estate Trust
    6,025       (877 )     5,969       1,980       2,551       (7,122 )     8,526  
Dividends to preferred shareholders
    0       0       0       0       0       (2,372 )     (2,372 )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
  $ 6,025     $ (877 )   $ 5,969     $ 1,980     $ 2,551     $ (9,494 )   $ 6,154  
 
(1)
For Twelve Months ended April 30, 2009, stabilized properties excluded:
 
Multi-Family Residential -
Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN and 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND and Sweetwater Community, Grafton, ND.
 
Total number of units, 451. Occupancy % for April 30, 2009 is 85.8%.
 
Commercial Office -
401 South Main, Minot, ND; Bismarck 715 E Broadway, Bismarck, ND; IRET Corporate Plaza, Minot, ND and 12 South Main, Minot ND.
 
Total square footage, 82,986. Occupancy % for April 30, 2009 is 87.8%.
 
Commercial Medical -
2828 Chicago Avenue, Minneapolis, MN.
 
Total square footage, 56,239. Occupancy % for April 30, 2009 is 72.0%.
 
Commercial Industrial -
Minnetonka 13600 County Road 62, Minnetonka, MN
 
Total square footage, 69,984. Occupancy % for April 30, 2009 is 100.0%.
 


 

 


 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT
4th Quarter Fiscal 2010 vs. 4th Quarter Fiscal 2009
 

 
Segments
Stabilized Properties
All Properties
 
4th Quarter
4th Quarter
4th Quarter
4th Quarter
 
Fiscal 2010
Fiscal 2009
Fiscal 2010
Fiscal 2009
Multi-Family Residential
90.2%
93.2%
90.2%
92.9%
Commercial Office
84.2%
87.4%
83.4%
87.4%
Commercial Medical
94.5%
95.6%
95.1%
95.0%
Commercial Industrial
90.4%
96.9%
90.8%
97.0%
Commercial Retail
80.5%
85.1%
80.5%
85.1%
 
 

 
Stabilized Physical Occupancy Levels by Segment Bar Chart

 



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASING SUMMARY
for the three and twelve months ended April 30, 2010
 

 
 
Three Months Ended April 30, 2010
 
 
New(1)
 
Renew(2)
 
Total
 
Expiring(3)
 
Net Change
 
Percentage
Change
 
Gross Square Footage
                                   
Commercial Office
    8,001       37,391       45,392       60,500       (15,108 )      
Commercial Medical
    10,292       13,230       23,522       14,450       9,072        
Commercial Industrial
    142,256       72,150       214,406       142,256       72,150        
Commercial Retail
    4,407       60,606       65,013       27,606       37,407        
Total All Segments
    164,956       183,377       348,333       244,812       103,521        
                                               
Weighted Average Rental Rates(3)
                                             
Commercial Office
  $ 6.93     $ 14.31     $ 13.00     $ 12.69     $ 0.31       2.4 %
Commercial Medical
    21.00       18.89       19.81       24.96       (5.15 )     (20.6 %)
Commercial Industrial
    6.00       5.63       5.88       6.00       (0.12 )     (2.0 %)
Commercial Retail
    9.64       6.53       6.74       17.20       (10.46 )     (60.8 %)
Total All Segments
  $ 7.08     $ 8.65     $ 7.91     $ 10.04     $ (2.13 )     (21.2 %)
                                                 
 
Twelve Months Ended April 30, 2010
 
 
New(1)
 
Renew(2)
 
Total
 
Expiring(3)
 
Net Change
 
Percentage
Change
 
Gross Square Footage
                                               
Commercial Office
    72,638       528,110       600,748       402,098       198,650          
Commercial Medical
    25,322       67,824       93,146       63,677       29,469          
Commercial Industrial
    147,256       211,345       358,601       413,318       (54,717 )        
Commercial Retail
    80,076       260,025       340,101       187,561       152,540          
Total All Segments
    325,292       1,067,304       1,392,596       1,066,654       325,942          
                                                 
Weighted Average Rental Rates
                                               
Commercial Office
  $ 10.00     $ 13.07     $ 12.70     $ 12.13     $ 0.57       4.7 %
Commercial Medical
    20.02       20.73       20.54       21.27       (0.73 )     (3.4 %)
Commercial Industrial
    6.16       4.91       5.43       4.31       1.12       26.0 %
Commercial Retail
    12.55       6.44       7.88       7.73       0.15       1.9 %
Total All Segments
  $ 9.67     $ 10.33     $ 10.17     $ 8.87     $ 1.30       14.7 %

 
 
Three Months Ended April 30, 2010
Twelve Months Ended April 30, 2010
 
New(1)
Renew(2)
Total
New(1)
Renew(2)
Total
Weighted Average Term of New/Renewed Leased
                       
Commercial Office
 
6.2
 
2.8
 
3.6
 
4.8
 
3.3
 
3.6
Commercial Medical
 
5.0
 
4.5
 
4.6
 
5.5
 
4.5
 
4.7
Commercial Industrial
 
0.1
 
7.4
 
1.6
 
0.1
 
5.0
 
2.9
Commercial Retail
 
3.6
 
2.7
 
3.0
 
3.2
 
2.9
 
3.0
Total All Segments
 
3.2
 
3.4
 
3.3
 
3.8
 
3.5
 
3.5
 
(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.

 
 

 


 

 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASING SUMMARY
for the three and twelve months ended April 30, 2010
 

 
   
4th Quarter Fiscal 2010 Total
   
Fiscal 2010 Total
 
   
New
   
Renew
   
Total Dollars
   
New
   
Renew
   
Total Dollars
 
Tenant Improvements
                                   
Commercial Office
  $ 0     $ 75,013     $ 75,013     $ 292,011     $ 2,278,560     $ 2,570,571  
Commercial Medical
    391,484       91,142       482,626       489,648       1,161,313       1,650,961  
Commercial Industrial
    1,000       0       1,000       1,000       161,385       162,385  
Commercial Retail
    26,143       0       26,143       385,671       15,102       400,773  
Subtotal
  $ 418,627     $ 166,155     $ 584,782     $ 1,168,330     $ 3,616,360     $ 4,784,690  
                                                 
Tenant Improvements per square foot
                                               
Commercial Office
  $ 0.00     $ 2.01     $ 1.65     $ 4.02     $ 4.31     $ 4.28  
Commercial Medical
    38.04       6.89       20.52       19.34       17.12       17.72  
Commercial Industrial
    0.01       0.00       0.00       0.01       0.76       0.45  
Commercial Retail
    5.93       0.00       0.40       4.82       0.06       1.18  
All Segments
  $ 2.54     $ 0.91     $ 1.68     $ 3.59     $ 3.39     $ 3.44  
                                                 
Leasing Costs
                                               
Commercial Office
  $ 33,032     $ 59,279     $ 92,311     $ 369,979     $ 2,817,767     $ 3,187,746  
Commercial Medical
    93,657       61,423       155,080       152,628       344,573       497,201  
Commercial Industrial
    13,910       356,647       370,557       16,160       554,188       570,348  
Commercial Retail
    10,286       2,376       12,662       219,801       104,348       324,149  
Subtotal
  $ 150,885     $ 479,725     $ 630,610     $ 758,568     $ 3,820,876     $ 4,579,444  
                                                 
Leasing Costs per square foot
                                               
Commercial Office
  $ 4.13     $ 1.59     $ 2.03     $ 5.09     $ 5.34     $ 5.31  
Commercial Medical
    9.10       4.64       6.59       6.03       5.08       5.34  
Commercial Industrial
    0.10       4.94       1.73       0.11       2.62       1.59  
Commercial Retail
    2.33       0.04       0.19       2.74       0.40       0.95  
All Segments
  $ 0.91     $ 2.62     $ 1.81     $ 2.33     $ 3.58     $ 3.29  
                                                 
Tenant Improvements and Leasing Costs
                                               
Commercial Office
  $ 33,032       134,292       167,324     $ 661,990     $ 5,096,327     $ 5,758,317  
Commercial Medical
    485,141       152,565       637,706       642,276       1,505,886       2,148,162  
Commercial Industrial
    14,910       356,647       371,557       17,160       715,573       732,733  
Commercial Retail
    36,429       2,376       38,805       605,472       119,450       724,922  
Total
  $ 569,512     $ 645,880     $ 1,215,392     $ 1,926,898     $ 7,437,236     $ 9,364,134  
                                                 
Tenant Improvements and Leasing Costs per square foot
                                               
Commercial Office
  $ 4.13     $ 3.59     $ 3.69     $ 9.11     $ 9.65     $ 9.59  
Commercial Medical
    47.14       11.53       27.11       25.36       22.20       23.06  
Commercial Industrial
    0.10       4.94       1.73       0.12       3.39       2.04  
Commercial Retail
    8.27       0.04       0.60       7.56       0.46       2.13  
All Segments
  $ 3.45     $ 3.52     $ 3.49     $ 5.92     $ 6.97     $ 6.72  


 
 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
MULTI-FAMILY RESIDENTIAL SUMMARY
 

 
   
Three Months Ended
 
   
04/30/2010
   
01/31/2010
   
10/31/2009
   
07/31/2009
   
04/30/2009
 
Number of Units
    9,691       9,669       9,669       9,645       9,645  
Average Investment Per Unit
                                       
Stabilized
  $ 56,138     $ 55,739     $ 55,479     $ 55,179     $ 54,960  
Non-Stabilized
    80,581       79,217       77,214       81,566       82,555  
    $ 57,323     $ 56,790     $ 56,452     $ 56,298     $ 56,130  
                                         
Average Scheduled Rent per Unit
                                       
Stabilized
  $ 720     $ 716     $ 713     $ 711     $ 711  
Non-Stabilized
    735       721       723       714       712  
    $ 721     $ 717     $ 714     $ 711     $ 711  
                                         
Total Receipts per Unit
                                       
Stabilized
  $ 655     $ 657     $ 664     $ 660     $ 671  
Non-Stabilized
    679       657       654       659       603  
    $ 657     $ 657     $ 664     $ 660     $ 668  
Physical Occupancy%
                                       
Stabilized
    90.2 %     89.9 %     91.3 %     89.4 %     93.0 %
Non-Stabilized
    90.7 %     88.2 %     88.2 %     85.6 %     89.7 %
      90.2 %     89.8 %     91.2 %     89.2 %     92.8 %
                                         
Operating Expenses as a % of Scheduled Rent
                                       
Stabilized
    45.8 %     47.4 %     44.7 %     44.6 %     43.8 %
Non-Stabilized
    36.8 %     49.4 %     32.3 %     50.6 %     55.1 %
Total
    45.4 %     47.4 %     44.1 %     44.9 %     44.3 %

 



 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
10 LARGEST COMMERCIAL TENANTS – BASED ON ANNUALIZED BASE RENT(1)
as of April 30, 2010
 

 
Tenant
Number of
Properties
Average
Remaining
Lease Term
in Months
% of Total
Commercial
Segments’
Minimum
Rents
Aggregate
Rentable
Square Feet
% of Aggregate
Occupied
Square
Feet
Affiliates of Edgewood Vista
19
226
9.9%
909,591
8.7%
St. Lukes Hospital of Duluth, Inc.
6
63
3.5%
198,775
1.9%
Fairview Health
8
59
2.5%
179,831
1.7%
Applied Underwriters
3
82
2.2%
141,724
1.3%
Best Buy Co., Inc. (NYSE: BBY)
2
7
1.9%
224,650
2.1%
HealthEast Care System
1
106
1.7%
114,316
1.1%
USG Corp.
1
16
1.6%
122,567
1.2%
Smurfit - Stone Container (NASDAQ: SSCC)
2
48
1.5%
424,147
4.0%
Microsoft (NASDAQ: MSFT)
1
40
1.4%
122,040
1.2%
Nebraska Orthopedic Hospital
1
227
1.3%
61,758
0.6%
Total/Weighted Average
 
102
27.5%
2,499,399
23.8%
 
(1)
See Definitions on page 26.



 

 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LEASE EXPIRATIONS
as of April 30, 2010
 

 
Fiscal Year
 
Number of
Leases
   
Rentable
Square Feet
   
% of Rentable
Square Feet
   
Annualized
Rent*
   
Average
Rental
Rate
   
% of
Annualized Rent
 
Commercial Office
                                   
2011
    68       585,753       14.4 %   $ 7,352,701     $ 12.55       13.9 %
2012
    58       732,002       18.0 %     9,570,060       13.07       18.1 %
2013
    42       573,559       14.1 %     7,514,765       13.10       14.3 %
2014
    39       584,518       14.4 %     7,581,572       12.97       14.4 %
2015
    36       349,884       8.6 %     4,485,676       12.82       8.5 %
2016 and thereafter
    41       1,235,846       30.5 %     16,237,506       13.14       30.8 %
      284       4,061,562       100.0 %   $ 52,742,280     $ 12.99       100.0 %
                                                 
Commercial Medical
                                               
2011
    15       61,941       2.8 %   $ 1,129,521     $ 18.24       2.8 %
2012
    30       102,335       4.6 %     2,093,461       20.46       5.3 %
2013
    20       78,943       3.6 %     1,485,367       18.82       3.8 %
2014
    24       146,515       6.7 %     3,085,325       21.06       7.8 %
2015
    11       54,075       2.5 %     809,635       14.97       2.0 %
2016 and thereafter
    87       1,750,755       79.8 %     30,967,711       17.69       78.3 %
      187       2,194,564       100.0 %   $ 39,571,020     $ 18.03       100.0 %
                                                 
Commercial Industrial
                                               
2011
    15       1,075,552       42.3 %   $ 3,626,002     $ 3.37       39.1 %
2012
    5       381,157       15.0 %     1,217,581       3.19       13.2 %
2013
    2       142,185       5.6 %     685,357       4.82       7.4 %
2014
    5       169,396       6.7 %     789,797       4.66       8.5 %
2015
    2       76,685       3.0 %     304,570       3.97       3.3 %
2016 and thereafter
    8       695,389       27.4 %     2,640,471       3.80       28.5 %
      37       2,540,364       100.0 %   $ 9,263,778     $ 3.65       100.0 %
                                                 
Commercial Retail
                                               
2011
    53       211,783       18.5 %   $ 2,032,987     $ 9.60       22.0 %
2012
    36       295,569       25.7 %     1,583,484       5.36       17.1 %
2013
    20       80,641       7.0 %     548,986       6.81       5.9 %
2014
    20       67,698       5.9 %     794,675       11.74       8.6 %
2015
    20       173,433       15.1 %     777,216       4.48       8.4 %
2016 and thereafter
    24       319,061       27.8 %     3,509,254       11.00       38.0 %
      173       1,148,185       100.0 %   $ 9,246,602     $ 8.05       100.0 %
                                                 
Commercial Total
                                               
2011
    151       1,935,029       19.5 %   $ 14,141,211     $ 7.31       12.8 %
2012
    129       1,511,063       15.2 %     14,464,586       9,57       13.0 %
2013
    84       875,328       8.8 %     10,234,475       11.69       9.2 %
2014
    88       968,127       9.7 %     12,251,369       12.65       11.1 %
2015
    69       654,077       6.6 %     6,377,097       9.75       5.8 %
2016 and thereafter
    160       4,001,051       40.2 %     53,354,942       13.34       48.1 %
      681       9,944,675       100.0 %   $ 110,823,680     $ 11.05       100.0 %
 
* Annualized Rent is monthly scheduled rent as of April 30, 2010 (cash basis), multiplied by 12.
 



 

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
FISCAL 2010 ACQUISITION SUMMARY
as of April 30, 2010
($’s in thousands)
 

 
Property
Location
Segment Type
Acquisition
Date
 
Square
Feet/Units
   
Leased
Percentage
At
Acquisition
   
April 30,
2010 Leased
Percentage
   
Acquisition
Cost
 
                               
Clive 2075 NW 94th Street
Clive, IA
Commercial Industrial
August 5, 2009
    42,510       100 %     100.0 %   $ 3,350  
Minot 2505 16th Street SW
Minot, ND
Commercial Office
October 1, 2009
    15,000       93.8 %     100.0 %     2,400  
Fargo 1320 4th Street N
Fargo, ND
Unimproved Land
November 13, 2009
 
NA
   
NA
   
NA
      395  
Casper 1930 E 12th Street (Park Place)
Casper, WY
Commercial Medical
December 30, 2009
    65,160       94.6 %     96.6 %     7,339  
Casper 3955 E 12th Street (Meadow Wind)
Casper, WY
Commercial Medical
December 30, 2009
    35,629       100.0 %     80.1 %     7,339  
Cheyenne 4010 N College Drive (Aspen Wind)
Cheyenne, WY
Commercial Medical
December 30, 2009
    47,509       94.5 %     81.4 %     12,457  
Cheyenne 4060 N College Drive (Sierra Hills)
Cheyenne, WY
Commercial Medical
December 30, 2009
    54,072       75.6 %     49.3 %     9,560  
Laramie 1072 N 22nd Street (Spring Wind)
Laramie, WY
Commercial Medical
December 30, 2009
    35,629       100.0 %     97.2 %     8,305  
Crown Apartments
Rochester, MN
Multi-Family Residential
April 1, 2010
    48       93.1 %     93.1 %     3,550  
Northern Valley Apartments
Rochester, MN
Multi-Family Residential
April 1, 2010
    16       100.0 %     100.0 %     720  
     
Total Square Feet
    295,509                     $ 55,415  
     
Total Units
    64                          

 



 

 

Definitions
April 30, 2010
 
Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.
 
Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.
 
Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.
 
EBITDA is earnings before interest, taxes, depreciation and amortization. We consider EBITDA to be an appropriate supplemental performance measure because it eliminates depreciation, interest and the gain/loss from property dispositions, which permits investors to view income from operations without the effect of non-cash depreciation or the cost of debt; however, EBIDTA as we calculate it has not been adjusted for the effect of nonrecurring events such as asset impairment and gain/loss on involuntary conversion.  EBITDA is a non-GAAP measure. EBITDA as calculated by us is not comparable to EBITDA reported by other REITs that do not define EBITDA exactly as we do.
 
Funds from operations (FFO) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as net income (computed in accordance with generally accepted accounting principles, excluding gains/losses from sales of property plus real estate depreciation and amortization. FFO is a non-GAAP measure.  We consider FFO to be a standard supplemental measure for equity real estate investment trusts because it facilitates an understanding of the operating performance of properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time.  Since real estate values instead historically rise or fall with market conditions, we believe that FFO provides investors and management with a more accurate indication of our financial and operating results.
 
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.
 
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.