Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER AND YEAR-TO-DATE ENDED OCTOBER 31, 2014

Minot, ND – December 10, 2014 – Investors Real Estate Trust (NYSE: IRET) reported financial and operating results today for the quarter and year-to-date ended October 31, 2014.

During the three month period ended October 31, 2014, IRET's revenues increased from the year-earlier period. Funds From Operations (FFO)¹ overall and on a per share and unit basis increased for the three month period ended October 31, 2014 compared to the same period of the prior fiscal year. Net income available to common shareholders decreased from the year-earlier period.

For the three month period ended October 31, 2014, as compared to the same period of the prior fiscal year:

·	Revenues increased to $70.9 million from $65.8 million.

·

Total expenses increased by approximately $5.6 million, or 12.1%, in the three months ended October 31, 2014 compared to the three months ended October 31, 2013, from $46.7 million to $52.3 million. This increase was primarily due to non-cash impairment expense of $3.2 million recognized during the second quarter of fiscal year 2015.

·	FFO increased to $22.2 million on approximately 133,295,000 weighted average shares and units outstanding, from $20.0 million on approximately 126,713,000 weighted average shares and units outstanding ($.17 per share and unit compared to $.16 per share and unit).

·	Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was $2.2 million compared to $5.9 million in the same period of the prior fiscal year.

During the six month period ended October 31, 2014, IRET's revenues increased from the year-earlier period. Funds From Operations (FFO)¹ overall increased and on a per share and unit basis decreased for the six month period ended October 31, 2014 compared to the same period of the prior fiscal year. We reported a net loss available to common shareholders for the six months ended October 31, 2014.

For the six month period ended October 31, 2014, as compared to the same period of the prior fiscal year:

·	Revenues increased to $139.5 million from $130.9 million.

·

Total expenses increased by approximately $8.4 million, or 8.8%, in the six months ended October 31, 2014 compared to the six months ended October 31, 2013, from $95.8 million to $104.2 million. This increase was primarily due to non-cash impairment expense of $5.6 million recognized in the six months ended October 31, 2014.

·	FFO increased to $41.2 million on approximately 132,598,000 weighted average shares and units outstanding, from $39.6 million on approximately 125,440,000 weighted average shares and units outstanding ($.31 per share and unit compared to $.32 per share and unit).

·	Net Loss Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $794,000 compared to $6.1 million of Net Income Available to Common Shareholders in the same period of the prior fiscal year.

Significant Events and Transactions during the second quarter of fiscal year 2015:

·	An increase in the commitment amount under the Company's secured line of credit with First International Bank and Trust as lead bank and lender, from $75.0 million to $90.0 million.

·	The acquisition of a 68-unit multi-family residential property in Bismarck, North Dakota for a purchase price of $8.5 million, and a parcel of vacant land in Monticello, Minnesota, for a purchase price of $1.7 million.

·	The disposition of an office property in Golden Valley, Minnesota; a retail property in Kalispell, Montana; and an apartment property in St. Cloud, Minnesota, for sales prices totaling $10.9 million.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "We are pleased to report a strong quarter, as we continue to execute on our growth strategy for our multi-family residential and healthcare segments, and on our disposition strategy in our commercial segments. Our strong results in the quarter are driven by the strength of our multi-family residential portfolio, in particular the new development projects that we have coming online in that segment, which are stabilizing with returns exceeding our projections. During the quarter we placed in service 121 units in our 233-unit Commons at Southgate property in Minot, North Dakota, 52 units in our 130-unit Red 20 property in Minneapolis, and 54 units in the approximately 288-unit Renaissance heights apartment property in Williston, North Dakota. These are joint venture projects in which IRET has ownership interests of approximately 53%, 59% and 70%, respectively. We continue to see attractive development opportunities in our multi-family and healthcare segments in particular. With the solid operating results that we achieved in the quarter, we are confident that we remain on the path to coverage of our distribution, in accordance with our announced timeline. We consider these quarterly results a good indicator that the plan we articulated previously is working, and that we will be able to maintain momentum in our portfolio repositioning. "

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Operating Results

Net Operating Income (NOI)² from all properties increased by $3.4 million, or 8.5%, during the three-month period ended October 31, 2014, compared to the same period one year ago. Non-same-store properties, primarily our new multi-family residential developments, accounted for $2.9 million of the increase.  NOI from same-store properties³ increased by approximately $494,000, primarily driven by increases in rental revenue in our multi-family residential segment.

NOI from all properties increased by $4.3 million, or 5.4%, during the six month period ended October 31, 2014, compared to the same period one year ago.  Non-same-store properties, primarily our new multi-family residential developments, accounted for $3.8 million of the increase. Same-store NOI for the six months ended October 31, 2014 increased by $441,000 compared to the same period of the prior fiscal year.  This increase was primarily due to an increase in rental revenue of $1.7 million with the largest increase realized in the multi-family residential segment.  This increase in rental revenue was offset by a decrease in tenant reimbursements of $727,000 which occurred primarily in the commercial office segment and by increased real estate expenses of $559,000 in all segments combined.

Occupancy as of October 31, 2014 compared to October 31, 2013 increased in two of our five reportable segments (multi-family residential and industrial), decreasing in our office and retail segments and remaining stable in our healthcare segment on a same-store basis. On an all-property basis, occupancy increased in our multi-family residential, office and industrial segments, decreasing in our retail segment and remaining the same in our healthcare segment. The increased occupancy in the industrial segment is due to the lease-up of 90,363 square feet at the Company's Urbandale, Iowa property, which raised occupancy in that segment to 100%. Occupancy represents the actual number of units or square footage leased divided by the total number of units or square footage at the end of the period.

Occupancy Levels on a Same-Store Property and All Property Basis:

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2

We measure the performance of our segments based on NOI, which we define as total real estate revenues and gain on involuntary conversion less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property expenses). 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

Same-store properties are properties owned or in service for the entirety of the periods being compared (except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, and properties sold or classified as held for sale), and, in the case of development or re-development properties, which have achieved a target level of occupancy of 90% for multi-family residential properties and 85% for office, healthcare, industrial and retail properties.

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Acquisitions, Development Projects Placed in Service and Dispositions

During the second quarter of fiscal year 2015, the Company closed on its acquisitions of:

·	a 68-unit multi-family residential property in Bismarck, North Dakota, for a purchase price of $8.5 million and

·	an approximately 12.7-acre parcel of vacant land in Monticello, Minnesota, for a purchase price of $1.7 million.

Also during the second quarter of fiscal year 2015, the Company placed in service 121 units of the 233-unit Commons at Southgate multi-family residential property in Minot, North Dakota, in which the Company has an approximately 52.9% interest; 52 units of the 130-unit Red 20 multi-family residential property in Minneapolis, Minnesota, in which the Company has an approximately 58.6% interest and 54 units of the approximately 288-unit Renaissance Heights multi-family residential property in Williston, North Dakota, in which the Company has an approximately 70% interest.

During the second quarter of fiscal year 2015, the Company sold one multi-family residential property, one office property and one retail property, along with the adjacent unimproved land for a total sales price of $10.9 million.

Strategic Dispositions

At October 31, 2014, the Company had nine office properties and two retail properties classified as held for sale. Under the Strategic Plan approved by the Company's Board of Trustees, the Company plans to continue its focus on identifying for disposition properties whose location, age, or need for significant tenant improvements or capital expenditures suggest that the Company's investment may be better deployed elsewhere. In particular, the Company expects to identify properties in its office, industrial and retail segments as candidates for disposition as the Company continues to execute on the Strategic Plan.

Mortgages Payable

The Company's mortgages payable include a non-recourse $122.6 million CMBS loan, for which nine of the Company's office properties serve as collateral and under which a special-purpose subsidiary of the Company is the borrower. This loan matures in October 2016. Because the loan amount significantly exceeds the Company's current estimate of the fair value of this nine-property portfolio, the Company contacted the master servicer to initiate discussions on various alternatives with regard to the loan. During the first quarter of fiscal year 2015, the Company was notified that the loan has been transferred to the special servicer. The Company cannot predict the outcome of discussions with the special servicer regarding the loan. Cash flow from the portfolio currently covers debt service on the loan, and to date the borrower is current on all payments under the loan.

Shareholder Equity, Distributions and Capital Structure

As of October 31, 2014, IRET had a total capitalization of $2.4 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 (which are convertible, at the expiration of a specified holding period, into cash or, at the Company's sole discretion, into common shares of the Company on a one-to-one basis), plus the book value of the Company's preferred shares and the outstanding principal balance of the consolidated debt of the Company.

On October 1, 2014, IRET paid a quarterly distribution of $0.1300 per share and unit on its common shares and limited partnership units of IRET Properties. This was IRET's 174^th consecutive distribution. IRET also paid, on September 30, 2014, a quarterly distribution of $0.5156 per share on its Series A preferred shares and a quarterly distribution of $0.4968 per share on its Series B preferred shares.

Distribution Declared.  Subsequent to the end of the second quarter of fiscal year 2015, on December 4, 2014, the Company's Board of Trustees declared a regular quarterly distribution of $0.1300 per share and unit on the Company's common shares of beneficial interest and the limited partnership units of IRET Properties, payable January 16, 2015 to common shareholders and unitholders of record on January 2, 2015. Also on December 4, 2014, the Company's Board of Trustees' declared a distribution of $0.5156 per share on the Company's Series A preferred shares of beneficial interest, payable December 31, 2014 to Series A preferred shareholders of record on December 15, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2014 to Series B preferred shareholders of record on December 15, 2014.

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Conference Call Information

The Conference Call for 2nd Quarter Earnings is scheduled for Thursday, December 11, 2014 at 9:00 A.M. Central Time.  The call will be limited to one hour, including questions and answers.  Conference call access information is as follows:

USA Toll Free Number: 1-877-509-9785

International Toll Free Number: 1-412-902-4132

Canada Toll Free Number: 1-855-669-9657

A webcast and transcript of the call will be archived on the "Investor Info/ Presentations & Events/Presentations" page of IRET's website, http://www.iret.com, for one year.  Questions regarding the conference call should be directed to kwentz@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 96 multi-family residential properties with 11,292 apartment units; and 63 office properties, 67 healthcare properties (including senior housing), 7 industrial properties and 24 retail properties with a total of approximately 9.9 million square feet of leasable space.  IRET common shares, Series A preferred shares and Series B preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET, IRETPR and IRETPRB, respectively). 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 earnings 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: intentions and expectations regarding future distributions on our common shares and units, fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2014 Form 10-K.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

for the three and six months ended October 31, 2014 and 2013

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three and six months ended October 31, 2014 and 2013

(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 $17,668 and $17,167, and depreciation/amortization from Discontinued Operations of $0 and $347, less corporate-related depreciation and amortization on office equipment and other assets of $44 and $24, for the three months ended October 31, 2014 and 2013, respectively.

(2)	UPREIT Units of the Operating Partnership are exchangeable for cash, or, at the Company's discretion, for common shares of beneficial interest on a one-for-one basis.

(3)	Net income attributable to Investors Real Estate Trust 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 $34,724 and $36,167, and depreciation/amortization from Discontinued Operations of $0 and $933, less corporate-related depreciation and amortization on office equipment and other assets of $63 and $55 for the six months ended October 31, 2014 and 2013, respectively.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

for the three and six months ended October 31, 2014 and 2013