iretexhibit992-06302008.htm

EX-99.2 3 iretexhibit992-06302008.htm SUPPLEMENTAL OPERATING AND FINANCIAL DATA iretexhibit992-06302008.htm

Exhibit 99.2

IRET

Fourth Quarter Fiscal 2008

Supplemental Operating and Financial Data

for the Quarter Ended April 30, 2008


CONTACT: Michelle Saari VP - Investors Relations Direct Dial: 701-837-4738 E-Mail: msaari@iret.com				12 Main Street South Minot, ND 58701 Tel: 701-837-4738 Fax: 701-837-7117 www.iret.com

Supplemental Financial and Operating Data

Table of Contents

April 30, 2008

	Page

Company Background and Highlights	2

Investment Cost by Segment

Key Financial Data
Condensed Consolidated Statements of Operations	5
Condensed Consolidated Balance Sheets	6
Funds From Operations	7
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)	8

Capital Analysis
Long-Term Mortgage Debt Analysis	9
Capital Analysis	10

Portfolio Analysis
Stabilized Properties Net Operating Income Summary	11
Net Operating Income Detail	12-15
Stabilized Properties and Overall Economic Occupancy Levels by Segment	16

Tenant Analysis
Commercial Leasing Summary	17-18
Multi-Family Residential Summary	19
10 Largest Tenants - Based on Annualized Base Rent	20
Lease Expirations as of April 30, 2008	21

Growth and Strategy
Fiscal 2008 Acquisition Summary	22
Fiscal 2007 and 2008 Development Summary	23

Company Background and Highlights

Fourth Quarter Fiscal 2008

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, office, medical (including senior housing), industrial and retail segments.

Through the fourth quarter of fiscal year 2008, IRET has acquired $154.7 million in assets, consisting of four office/warehouse properties, fifteen medical office properties (including eight senior housing facilities), three office building and one multi-family residential property. During fiscal year 2008, the Company sold a small office property located in Minnetonka, Minnesota, and two small apartment properties located in Harvey, North Dakota and Devils Lake, North Dakota, respectively, for sales prices totaling approximately $1.4 million. IRET also completed the development of a 67-unit apartment building during the third quarter of fiscal year 2008.

In March 2008, IRET acquired five senior housing facilities with a total of 237 units/beds for an aggregate purchase price (excluding closing costs) of $32.1 million. IRET acquired the facilities from affiliates of Edgewood Vista Senior Living, Inc. ("Edgewood Vista"), a developer and operator of senior living communities with which IRET has had an existing long-term business relationship.

In February 2008, IRET acquired 100% of the member interests in limited liability companies owning three senior housing facilities with a total of 92 units/beds for an aggregate purchase price (excluding closing costs) of $12.6 million, also from affiliates of Edgewood Vista. The eight facilities that IRET acquired are located in Minnesota, Montana, Nebraska, North Dakota and South Dakota, and are leased to subsidiary companies of Sunwest Management, Inc. ("Sunwest"). Sunwest, one of the largest private senior housing operators and developers in the United States, currently owns and operates approximately 250 senior housing properties located in 39 states, and is acquiring the assets of Edgewood Vista.

As part of the acquisition transactions summarized above, during the fourth quarter IRET also bought out certain options held by its tenant, Edgewood Vista, to purchase eleven existing senior housing facilities owned by IRET and leased by Edgewood Vista. IRET paid approximately $14.8 million to Edgewood Vista to extinguish purchase options on these eleven senior housing facilities, which have a total of 741 units/beds and are located in Bismarck, North Dakota; Spearfish, South Dakota; Brainerd, Minnesota; Hermantown, Minnesota (two facilities); Omaha, Nebraska; Fremont, Nebraska; Hastings, Nebraska; Kalispell, Montana; Missoula, Montana, and Virginia, Minnesota. IRET has leased these locations to subsidiaries of Sunwest.

In March 2008, IRET closed on its acquisition of a portfolio of six medical office properties located in the greater Minneapolis, Minnesota metropolitan area. In regard to three of the six buildings, the Company acquired leasehold interests only. IRET paid $6.9 million in cash for the portfolio, assumed existing financing totaling approximately $17.8 million, placed new financing of $21.9 million, and caused the issuance of approximately 567,000 limited partnership units of its operating partnership, IRET Properties, valued at $9.45 per unit or approximately $5.4 million in total, for a total aggregate consideration for the portfolio of $52.0 million, excluding acquisition costs, and excluding costs totaling approximately $1.7 million associated with the early prepayment of the debt encumbering four of the six locations. The portfolio was purchased from a group of local private investors who developed the properties.

Also in March 2008, IRET acquired an approximately 198,708 sq. ft., one-story office/warehouse property located in Eagan, Minnesota, for a purchase price of $6.4 million, excluding closing costs but including the issuance of approximately 315,428 units of its operating partnership, IRET Properties, valued at $9.53 per unit or approximately $3 million in total.

IRET raised over $66 million of capital through its sale of 6.9 million common shares of beneficial interest in a public offering completed during the second quarter of fiscal year 2008. Additionally, IRET renewed its three unsecured lines of credit, totaling $32 million, and, in April 2008, paid its 148th consecutive quarterly distribution per common share/unit at equal or increasing rates. During the third quarter of fiscal year 2008, the Company’s Distribution Reinvestment Plan was revised to add a voluntary cash contribution feature, permitting shareholders participating in the plan to make optional cash payments of $250 to $3,000 per month to purchase IRET common shares at a discount (currently 5%) from the market price.

Subsequent Events: Closed and Pending Acquisitions. Subsequent to its April 30, 2008 fiscal year end, the Company closed on the acquisition of several small apartment buildings in Minot, North Dakota, with a total of 52 units, for a total purchase price of $2.5 million, including the issuance to the seller of 191,596 UPREIT units valued at $10.20 per unit. The Company also acquired, subsequent to its fiscal 2008 year end, a parcel of vacant land in Bismarck, North Dakota, for a purchase price of $575,763. This vacant parcel adjoins the Company’s existing Cottonwoods apartment complexes in Bismarck.

As of April 30, 2008, the Company had signed purchase agreements to acquire a 36-unit multi-family apartment complex in Isanti, Minnesota, for a purchase price of $3.1 million, and an office building in Bismarck, North Dakota, for a purchase price of $2.2 million. These pending acquisitions are subject to various closing conditions and contingencies, and no assurances can be given that these transactions will be completed.

The Company also continues to work to close a previously-announced proposed acquisition of a two-building senior housing complex located in Minot, North Dakota, consisting of two single-story facilities containing approximately 93,708 square feet and 9,693 square feet, respectively, with a combined total of 184 units/beds, for a purchase price of $14.8 million. The Company had expected to close this acquisition prior to its April 30, 2008 fiscal year end; negotiations with the sellers and lenders to the project are continuing, but the Company currently has no firm estimate of when this proposed acquisition transaction may be completed, or negotiations terminated. This pending acquisition is subject to various closing conditions and contingencies, and no assurances can be given that this transaction will be completed.

As of April 30, 2008, IRET owns a diversified portfolio of 235 properties consisting of 72 multi-family residential properties, 65 office properties, 48 medical properties (including senior housing), 17 industrial properties and 33 retail properties. IRET’s distributions have increased every year for 37 consecutive years. IRET’s shares are publicly traded on the NASDAQ Global Select Market (symbols: IRET and IRETP)

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 2007 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Properties included in Fourth Quarter Fiscal 2008 Acquisitions

Fairview South Physicians Building		303 Ridgeview Medical Office Building
Edina, MN		Burnsville, MN


Riverside Park Plaza Building		Eagan Medical Building
Minneapolis, MN		Eagan, MN

Investment Cost by Segment as of April 30, 2008

With investments in the multi-family residential, commercial office, commercial medical, commercial industrial and commercial retail segments, IRET’s balanced portfolio helps to provide stability during market fluctuations in returns from specific property types.

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	04/30/2008			04/30/2007			04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
Real estate revenue	$	221,170		$	197,538		$	58,962		$	54,424		$	54,211		$	53,573		$	53,666
Real estate expenses		87,405			76,332			23,911			21,567			21,053			20,874			21,633
Net operating income		133,765			121,206			35,051			32,857			33,158			32,699			32,033
Interest		(63,439	)		(58,424	)		(16,470	)		(15,840	)		(15,687	)		(15,442	)		(15,323	)
Depreciation/amortization		(51,518	)		(45,501	)		(13,974	)		(12,508	)		(12,504	)		(12,532	)		(12,164	)
Administrative, advisory and trustee fees		(5,203	)		(4,451	)		(1,392	)		(1,348	)		(1,267	)		(1,196	)		(1,177	)
Operating expenses		(1,344	)		(1,240	)		(291	)		(343	)		(457	)		(253	)		(307	)
Non-operating income		2,760			2,665			671			1,023			431			635			695
Income before minority interest and discontinued operations and (loss) gain on sale of other investments	$	15,021		$	14,255		$	3,595		$	3,841		$	3,674		$	3,911		$	3,757

Gain (loss) on sale of other investments		42			(38	)		38			2			3			(1	)		(1	)
Minority interest portion of operating partnership income		(3,524	)		(3,217	)		(833	)		(855	)		(855	)		(981	)		(921	)
Minority interest portion of other partnerships’ (income) loss		136			26			111			(11	)		0			36			39
Income from continuing operations		11,675			11,026			2,911			2,977			2,822			2,965			2,874
Discontinued operations, net of minority interest		413			3,084			377			6			14			16			1,161
NET INCOME		12,088			14,110			3,288			2,983			2,836			2,981			4,035
Dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	9,716		$	11,738		$	2,695		$	2,390		$	2,243		$	2,388		$	3,442

Per Share Data
Earnings per common share from continuing operations	$	.17		$	.18		$	.04		$	.04		$	.04		$	.05		$	.05
Earnings per common share from discontinued operations		.01			.06			.01			.00			.00			.00			.02
Net income per common share – basic & diluted	$	.18		$	.24		$	.05		$	.04		$	.04		$	.05		$	.07

Percentage of Revenues
Real estate expenses		39.5	%		38.6	%		40.6	%		39.6	%		38.8	%		39.0	%		40.3	%
General and administrative		2.4	%		2.3	%		2.4	%		2.5	%		2.3	%		2.2	%		2.2	%

Ratios
EBITDA/Interest expense		2.02	x		1.99	x		2.04	x		1.97	x		2.01	x		2.04	x		2.01	x
EBITDA/Interest expense plus preferred distributions		1.94	x		1.91	x		1.97	x		1.90	x		1.93	x		1.97	x		1.93	x

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
ASSETS
Real estate investments
Property owned	$	1,648,259		$	1,558,560		$	1,529,063		$	1,520,975		$	1,489,287
Less accumulated depreciation		(219,379	)		(209,400	)		(199,682	)		(190,127	)		(180,544	)
		1,428,880			1,349,160			1,329,381			1,330,848			1,308,743
Development in progress		22,856			14,734			10,553			4,853			3,498
Unimproved land		3,901			3,901			3,901			4,165			3,894
Mortgage loan receivable, net of allowance		541			548			391			393			399
Total real estate investments		1,456,178			1,368,343			1,344,226			1,340,259			1,316,534
Other assets
Cash and cash equivalents		53,481			76,392			89,302			24,647			44,516
Marketable securities – available-for-sale		420			2,160			2,090			2,046			2,048
Receivable arising from straight-lining of rents, net of allowance		14,113			13,753			13,430			13,097			12,558
Accounts receivable, net of allowance		4,163			3,842			2,279			2,980			3,171
Real estate deposits		1,379			1,103			1,601			272			735
Prepaid and other assets		349			821			1,445			1,917			568
Intangible assets, net of accumulated amortization		61,649			29,025			30,457			32,999			33,240
Tax, insurance, and other escrow		8,642			8,060			6,539			7,529			7,222
Property and equipment, net		1,467			1,487			1,486			1,476			1,458
Goodwill		1,392			1,396			1,397			1,397			1,397
Deferred charges and leasing costs, net		14,793			13,528			12,624			12,447			11,942
TOTAL ASSETS	$	1,618,026		$	1,519,910		$	1,506,876		$	1,441,066		$	1,435,389

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	33,757		$	29,573		$	22,974		$	25,205		$	28,995
Mortgages payable		1,063,858			975,785			967,612			960,086			951,139
Other		978			1,019			1,161			1,103			896
TOTAL LIABILITIES		1,098,593			1,006,377			991,747			986,394			981,030

COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST IN PARTNERSHIPS		12,609			12,768			12,781			12,818			12,925
MINORITY INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP		161,818			155,301			154,274			159,477			156,465
SHAREHOLDERS’ EQUITY
Preferred Shares of Beneficial Interest		27,317			27,317			27,317			27,317			27,317
Common Shares of Beneficial Interest		440,187			433,645			429,236			357,614			354,495
Accumulated distributions in excess of net income		(122,498	)		(115,546	)		(108,474	)		(102,526	)		(96,827	)
Accumulated other comprehensive income (loss)		0			48			(5	)		(28	)		(16	)
Total shareholders’ equity		345,006			345,464			348,074			282,377			284,969
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,618,026		$	1,519,910		$	1,506,876		$	1,441,066		$	1,435,389

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Twelve Months Ended						Three Months Ended
	04/30/2008			04/30/2007			04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
Funds From Operations(1)
Net income	$	12,088		$	14,110		$	3,288		$	2,983		$	2,836		$	2,981		$	4,035
Less dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income available to common shareholders		9,716			11,738			2,695			2,390			2,243			2,388			3,442
Adjustments:
Minority interest in earnings of Unitholders		3,677			4,299			973			858			859			987			1,390
Depreciation and amortization		51,303			45,559			13,910			12,456			12,452			12,485			12,119
(Gains)/loss on depreciable property sales		(514	)		(4,602	)		(510	)		(2	)		(3	)		1			(1,616	)
Funds from operations applicable to common shares and Units	$	64,182		$	56,994		$	17,068		$	15,702		$	15,551		$	15,861		$	15,335

FFO per share and unit - basic and diluted	$	0.87		$	0.88		$	0.22		$	0.21		$	0.21		$	0.23		$	0.23
Weighted average shares and units		73,477			64,689			78,195			75,755			70,158			68,947			67,284

(1)

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. 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.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Three Months Ended
	04/30/2008			01/31/2007			10/31/2007			07/31/2007			04/30/2007
EBITDA(1)
Net income	$	3,288		$	2,983		$	2,836		$	2,981		$	4,035
Adjustments:
Minority interest portion of operating partnership income		973			858			859			987			1,390
Income before minority interest		4,261			3,841			3,695			3,968			5,425
Add:
Interest		16,470			15,840			15,687			15,442			15,366
Depreciation/amortization related to real estate investments		13,542			12,165			12,177			12,205			11,823
Amortization related to non-real estate investments		437			356			340			343			362
Amortization related to real estate revenues		(65	)		(79	)		(99	)		(40	)		(32	)
Less:
Interest income		(449	)		(953	)		(339	)		(354	)		(541	)
(Gain) loss on sale of real estate, land and other investments		(552	)		(2	)		(3	)		1			(1,616	)
EBITDA	$	33,644		$	31,168		$	31,458		$	31,565		$	30,787

(1)

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. 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.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

	Future Maturities of Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt
2009	$	15,144	$	2,627	$	17,771
2010		130,719		2,500		133,219
2011		83,133		0		83,133
2012		89,822		0		89,822
2013		26,371		5,389		31,760
2014		50,160		0		50,160
2015		73,244		0		73,244
2016		67,587		0		67,587
2017		163,012		0		163,012
Thereafter		352,970		1,180		354,150
Total maturities	$	1,052,162	$	11,696	$	1,063,858

	04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
Balances Outstanding
Mortgage
fixed rate	$	1,052,162		$	951,112		$	943,632		$	938,677		$	929,474
variable rate		11,696			24,673			23,980			21,409			21,665
Mortgage total		1,063,858			975,785			967,612			960,086			951,139

Weighted Average Interest Rates
Secured		6.37	%		6.44	%		6.36	%		6.37	%		6.43	%

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
Equity Capitalization
Common shares outstanding		57,732			56,977			56,419			48,893			48,570
Operating partnership (OP) units outstanding		21,238			20,395			20,114			20,494			19,981
Total common shares and OP units outstanding		78,970			77,372			76.533			69,387			68,551
Market price per common share (closing price at end of period)	$	10.20		$	9.80		$	10.85		$	9.62		$	10.55
Equity capitalization-common shares and OP units	$	805,494		$	758,246		$	830,383		$	667,503		$	723,213
Recorded book value of preferred shares	$	27,317		$	27,317		$	27,317		$	27,317		$	27,317
Total equity capitalization	$	832,811		$	785,563		$	857,700		$	694,820		$	750,530

Debt Capitalization
Total mortgage debt	$	1,063,858		$	975,785		$	967,612		$	960,086		$	951,139
Total capitalization	$	1,896,669		$	1,761,348		$	1,825,312		$	1,654,906		$	1,701,669

Total debt to total capitalization	0.56:1			0.55:1			0.53:1			0.58:1			0.56:1

Earnings to fixed charges(1)		1.16	x		1.17	x		1.17	x		1.18	x		1.17	x
Debt service coverage ratio(2)		1.48	x		1.42	x		1.46	x		1.48	x		1.46	x

Distribution Data
Common shares and units outstanding at record date		77,675			76,698			69,363			68,523			67,638
Total common distribution paid	$	13,049		$	12,847		$	11,584		$	11,409		$	11,228
Common distribution per share and unit	$	0.1680		$	0.1675		$	0.1670		$	0.1665		$	0.1660
Payout ratio (FFO per share and unit basis)(3)		76.4	%		79.8	%		79.5	%		72.4	%		72.2	%

(1)

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 before adjustments for minority interest in consolidated subsidiaries plus fixed charges, less capitalized interest. Fixed charges consist of mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest.

(2)	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.

(3)	The ratio of the current quarterly distribution rate per common share and unit divided by quarterly FFO per share and unit.

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	2008		2007		% Change			2008		2007		% Change
Multi-Family Residential	$	8,617	$	8,267		4.2	%	$	35,310	$	34,318		2.9	%
Commercial Office		8,747		8,818		(0.8	%)		33,916		34,675		(2.2	%)
Commercial Medical		6,751		6,470		4.3	%		26,260		25,823		1.7	%
Commercial Industrial		1,358		1,637		(17.0	%)		6,172		6,317		(2.3	%)
Commercial Retail		2,498		2,450		2.0	%		9,580		9,229		3.8	%
	$	27,971	$	27,642		1.2	%	$	111,238	$	110,362		0.8	%

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

Multi-Family Residential -

17 South Main Apartments, Minot, ND; Arbors Apartments, S. Sioux City, NE; Indian Hills, Sioux City, IA; Quarry Ridge Apartments, Rochester, MN; Rum River Apartments, Isanti, MN; St. Cloud Student Housing, St. Cloud, MN; Cottonwood IV Apartments, Bismarck, ND and Greenfield Apartments, Omaha, NE.

Commercial Office -

17 South Main, Minot, ND; Corporate Center West, Omaha, NE; Farnam Executive Center, Omaha, NE; Flagship, Eden Prairie, MN; Gateway Corporate, Woodbury, MN; Highlands Ranch I, Highlands Ranch, CO; Miracle Hills One, Omaha, NE; Pacific Hills, Omaha, NE; Riverport, Maryland Heights, MO; Timberlands, Leawood, KS; Woodlands Plaza, Maryland Heights, MO; 610 Business Center, Brooklyn Park, MN; Intertech, Fenton, MO and Plymouth 5095, Plymouth, MN.

Commercial Medical -

2828 Chicago Avenue, Minneapolis, MN; Fox River Cottages, Grand Chute, WI; St. Michaels, St. Michael, MN; Barry Point, Kansas City, MO; Edgewood Vista Billings, Billings, MT; Edgewood Vista East Grand Forks, East Grand Forks, MN; Edgewood Vista Sioux Falls, Sioux Falls, SD; Edina 6405 France Medical, Edina, MN; Edina 6363 France Medical, Edina, MN; Minneapolis 701 25th Ave Medical (Riverside), Minneapolis, MN; Burnsville 303 Nicollet Medical (Ridgeview), Burnsville, MN; Burnsville 305 Nicollet Medical (Ridgeview South), Burnsville, MN; Eagan 1440 Duckwood Medical, Eagan, MN; Edgewood Vista Belgrade, Belgrade, MT; Edgewood Vista Columbus, Columbus, NE; Edgewood Vista Fargo, Fargo, ND; Edgewood Vista Grand Island, Grand Island, NE and Edgewood Vista Norfolk, Norfolk, NE.

Commercial Industrial -

Bloomington 2000, Bloomington, MN; Roseville 2929, Roseville, MN; Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA; Woodbury 1865, Woodbury, MN and Eagan 3785 & 2795 Highway 55, Eagan, MN.

Commercial Retail -

17 South Main, Minot, ND; Dakota West Plaza, Minot, ND and Weston Walgreens, Weston, WI.

2.	Discontinued operations include:

Multi-Family Residential -

405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.

Commercial Office -

Minnetonka Office Building, Minnetonka, MN.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2008
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	16,801		$	15,932		$	9,154		$	1,706		$	3,524		$	0		$	47,117
Non-Stabilized		1,668			6,284			2,494			1,268			131			0			11,845
Total		18,469			22,216			11,648			2,974			3,655			0			58,962

Real estate expenses
Stabilized(1)		8,184			7,185			2,403			348			1,026			0			19,146
Non-Stabilized		879			2,731			777			346			32			0			4,765
Total		9,063			9,916			3,180			694			1,058			0			23,911

Net Operating Income (NOI)
Stabilized(1)		8,617			8,747			6,751			1,358			2,498			0			27,971
Non-Stabilized		789			3,553			1,717			922			99			0			7,080
Net operating income	$	9,406		$	12,300		$	8,468		$	2,280		$	2,597		$	0		$	35,051

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(5,024	)	$	(5,912	)	$	(3,913	)	$	(932	)	$	(1,051	)	$	362		$	(16,470	)
Depreciation/amortization		(3,417	)		(5,452	)		(3,158	)		(1,133	)		(753	)		(61	)		(13,974	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,392	)		(1,392	)
Operating expenses		0			0			0			0			0			(291	)		(291	)
Non-operating income		0			0			0			0			0			671			671
Income before minority interest and discontinued operations and (loss) gain on sale of other investments		965			936			1,397			215			793			(711	)		3,595
Gain on sale of other investments		0			0			0			0			0			38			38
Minority interest portion of operating partnership income		0			0			0			0			0			(833	)		(833	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			111			111
Income from continuing operations		965			936			1,397			215			793			(1,395	)		2,911
Discontinued operations, net of minority interest(2)		(136	)		(1	)		0			0			0			514			377
NET INCOME		829			935			1,397			215			793			(881	)		3,288
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	829		$	935		$	1,397		$	215		$	793		$	(1,474	)	$	2,695

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

Multi-Family Residential -

Commercial Office -

Commercial Medical -

2828 Chicago Avenue, Minneapolis, MN; Fox River Cottages, Grand Chute, WI; St. Michaels, St. Michael, MN; Barry Point, Kansas City, MO and Edgewood Vista Billings, Billings, MT; Edgewood Vista East Grand Forks, East Grand Forks, MN; Edgewood Vista Sioux Falls, Sioux Falls, SD; Edina 6405 France Medical, Edina, MN; Edina 6363 France Medical, Edina, MN; Minneapolis 701 25th Ave Medical (Riverside), Minneapolis, MN; Burnsville 303 Nicollet Medical (Ridgeview), Burnsville, MN; Burnsville 305 Nicollet Medical (Ridgeview South), Burnsville, MN; Eagan 1440 Duckwood Medical, Eagan, MN; Edgewood Vista Belgrade, Belgrade, MT; Edgewood Vista Columbus, Columbus, NE; Edgewood Vista Fargo, Fargo, ND; Edgewood Vista Grand Island, Grand Island, NE and Edgewood Vista Norfolk, Norfolk, NE.

Commercial Industrial -

Commercial Retail -

17 South Main, Minot, ND; Dakota West Plaza, Minot, ND and Weston Walgreens, Weston, WI.

2.	Discontinued operations include:

Multi-Family Residential -

405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND

Commercial Office -

Minnetonka Office Building, Minnetonka, MN.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2007
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	16,213		$	15,750		$	8,829		$	1,956		$	3,694		$	0		$	46,442
Non-Stabilized		1,117			5,304			137			497			169			0			7,224
Total		17,330			21,054			8,966			2,453			3,863			0			53,666

Real estate expenses
Stabilized(1)		7,946			6,932			2,359			319			1,244			0			18,800
Non-Stabilized		541			2,115			20			135			22			0			2,833
Total		8,487			9,047			2,379			454			1,266			0			21,633

Net Operating Income (NOI)
Stabilized(1)		8,267			8,818			6,470			1,637			2,450			0			27,642
Non-Stabilized		576			3,189			117			362			147			0			4,391
Net operating income	$	8,843		$	12,007		$	6,587		$	1,999		$	2,597		$	0		$	32,033

Reconciliation of NOI to net income available to common shareholders
Interest	$	(4,855	)	$	(5,718	)	$	(2,817	)	$	(648	)	$	(1,016	)	$	(269	)	$	(15,323	)
Depreciation/amortization		(3,167	)		(5,301	)		(2,060	)		(531	)		(677	)		(428	)		(12,164	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,177	)		(1,177	)
Operating expenses		0			0			0			0			0			(307	)		(307	)
Non-operating income		0			0			0			0			0			695			695
Income before minority interest and discontinued operations and (loss) gain on sale of other investments		821			988			1,710			820			904			(1,486	)		3,757
Loss on sale of other investments		0			0			0			0			0			(1	)		(1	)
Minority interest portion of operating partnership income		0			0			0			0			0			(921	)		(921	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			39			39
Income from continuing operations		821			988			1,710			820			904			(2,369	)		2,874
Discontinued operations, net of minority interest(2)		(490	)		1			0			0			3			1,647			1,161
NET INCOME		331			989			1,710			820			907			(722	)		4,035
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	331		$	989		$	1,710		$	820		$	907		$	(1,315	)	$	3,442

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

Multi-Family Residential -

Commercial Office -

Commercial Medical -

2828 Chicago Avenue, Minneapolis, MN; Fox River Cottages, Grand Chute, WI and St. Michaels, St. Michael, MN.

Commercial Industrial -

Bloomington 2000, Bloomington, MN and Roseville 2929, Roseville, MN.

Commercial Retail -

17 South Main, Minot, ND; Dakota West Plaza, Minot, ND and Weston Walgreens, Weston, WI.

2.	Discontinued operations include:

Multi-Family Residential -

Park East Apartments, Fargo, ND; Clearwater apartments, Boise, ID; 405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.

Commercial Office -

Minnetonka Office Building, Minnetonka, MN.

Commercial Medical -

Wedgewood Sweetwater, Lithia Springs, GA.

Commercial Retail -

Glencoe C-Store, Glencoe, MN; Faribault Checker, Faribault, MN; Long Prairie C-Store, Long Prairie, MN; Paynesville C-Store, Paynesville, MN and Prior Lake I & III Strip Center, Prior Lake, MN.

Unimproved Land -

Long Prairie Unimproved Land, Long Prairie, MN.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2008
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	66,900		$	60,972		$	34,990		$	7,507		$	13,720		$	0		$	184,089
Non-Stabilized		5,927			23,070			3,422			4,184			478			0			37,081
Total		72,827			84,042			38,412			11,691			14,198			0			221,170

Real estate expenses
Stabilized(1)		31,590			27,056			8,730			1,335			4,140			0			72,851
Non-Stabilized		3,047			9,150			1,026			1,194			137			0			14,554
Total		34,637			36,206			9,756			2,529			4,277			0			87,405

Net Operating Income (NOI)
Stabilized(1)		35,310			33,916			26,260			6,172			9,580			0			111,238
Non-Stabilized		2,880			13,920			2,396			2,990			341			0			22,527
Net operating income	$	38,190		$	47,836		$	28,656		$	9,162		$	9,921		$	0		$	133,765

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(20,004	)	$	(23,459	)	$	(12,651	)	$	(3,543	)	$	(4,260	)	$	478		$	(63,439	)
Depreciation/amortization		(13,231	)		(21,003	)		(9,416	)		(3,405	)		(2,725	)		(1,738	)		(51,518	)
Administrative, advisory and trustee fees		0			0			0			0			0			(5,203	)		(5,203	)
Operating expenses		0			0			0			0			0			(1,344	)		(1,344	)
Non-operating income		0			0			0			0			0			2,760			2,760
Income before minority interest and discontinued operations and (loss) gain on sale of other investments		4,955			3,374			6,589			2,214			2,936			(5,047	)		15,021
Gain on sale of other investments		0			0			0			0			0			42			42
Minority interest portion of operating partnership income		0			0			0			0			0			(3,524	)		(3,524	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			136			136
Income from continuing operations		4,955			3,374			6,589			2,214			2,936			(8,393	)		11,675
Discontinued operations, net of minority interest(2)		(97	)		(4	)		0			0			0			514			413
NET INCOME		4,858			3,370			6,589			2,214			2,936			(7,879	)		12,088
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	4,858		$	3,370		$	6,589		$	2,214		$	2,936		$	(10,251	)	$	9,716

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

Multi-Family Residential -

Commercial Office -

Commercial Medical -

2828 Chicago Avenue, Minneapolis, MN; Fox River Cottages, Grand Chute, WI; St. Michaels, St. Michael, MN; Barry Point, Kansas City, MO; Edgewood Vista East Grand Forks, East Grand Forks, MN; Edgewood Vista Sioux Falls, Sioux Falls, SD; Edina 6405 France Medical, Edina, MN; Edina 6363 France Medical, Edina, MN; Minneapolis 701 25th Ave Medical (Riverside), Minneapolis, MN; Burnsville 303 Nicollet Medical (Ridgeview), Burnsville, MN; Burnsville 305 Nicollet Medical (Ridgeview South), Burnsville, MN; Eagan 1440 Duckwood Medical, Eagan, MN; Edgewood Vista Belgrade, Belgrade, MT; Edgewood Vista Columbus, Columbus, NE; Edgewood Vista Fargo, Fargo, ND; Edgewood Vista Grand Island, Grand Island, NE and Edgewood Vista Norfolk, Norfolk, NE.

Commercial Industrial -

Commercial Retail -

17 South Main, Minot, ND; Dakota West Plaza, Minot, ND and Weston Walgreens, Weston, WI.

2.	Discontinued operations include:

Multi-Family Residential -

405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.

Commercial Office -

Minnetonka Office Building, Minnetonka, MN.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2007
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	64,633		$	60,402		$	34,480		$	7,394		$	13,650		$	0		$	180,559
Non-Stabilized		2,339			13,201			303			697			439			0			16,979
Total		66,972			73,603			34,783			8,091			14,089			0			197,538

Real estate expenses
Stabilized(1)		30,315			25,727			8,657			1,077			4,421			0			70,197
Non-Stabilized		1,139			4,748			18			176			54			0			6,135
Total		31,454			30,475			8,675			1,253			4,475			0			76,332

Net Operating Income (NOI)
Stabilized(1)		34,318			34,675			25,823			6,317			9,229			0			110,362
Non-Stabilized		1,200			8,453			285			521			385			0			10,844
Net operating income	$	35,518		$	43,128		$	26,108		$	6,838		$	9,614		$	0		$	121,206

Reconciliation of NOI to net income available to common shareholders
Interest	$	(18,723	)	$	(20,157	)	$	(11,291	)	$	(2,325	)	$	(4,070	)	$	(1,858	)	$	(58,424	)
Depreciation/amortization		(12,108	)		(19,408	)		(8,216	)		(1,802	)		(2,644	)		(1,323	)		(45,501	)
Administrative, advisory and trustee fees		0			0			0			0			0			(4,451	)		(4,451	)
Operating expenses		0			0			0			0			0			(1,240	)		(1,240	)
Non-operating income		0			0			0			0			0			2,665			2,665
Income before minority interest and discontinued operations and (loss) gain on sale of other investments		4,687			3,563			6,601			2,711			2,900			(6,207	)		14,255
Loss on sale of other investments		0			0			0			0			0			(38	)		(38	)
Minority interest portion of operating partnership income		0			0			0			0			0			(3,217	)		(3,217	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			26			26
Income from continuing operations		4,687			3,563			6,601			2,711			2,900			(9,436	)		11,026
Discontinued operations, net of minority interest(2)		(516	)		(147	)		(108	)		0			(661	)		4,516			3,084
NET INCOME		4,171			3,416			6,493			2,711			2,239			(4,920	)		14,110
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	4,171		$	3,416		$	6,493		$	2,711		$	2,239		$	(7,292	)	$	11,738

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

Multi-Family Residential -

Commercial Office -

Commercial Medical -

2828 Chicago Avenue, Minneapolis, MN; Fox River Cottages, Grand Chute, WI and St. Michaels, St. Michael, MN.

Commercial Industrial -

Bloomington 2000, Bloomington, MN and Roseville 2929, Roseville, MN.

Commercial Retail -

17 South Main, Minot, ND; Dakota West Plaza, Minot, ND and Weston Walgreens, Weston, WI.

2.	Discontinued operations include:

Multi-Family Residential -

Park East Apartments, Fargo, ND; Clearwater apartments, Boise, ID; 405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.

Commercial Office -

Minnetonka Office Building, Minnetonka, MN.

Commercial Medical -

Wedgewood Sweetwater, Lithia Springs, GA.

Commercial Retail -

Glencoe C-Store, Glencoe, MN; Faribault Checker, Faribault, MN; Long Prairie C-Store, Long Prairie, MN; Paynesville C-Store, Paynesville, MN and Prior Lake I & III Strip Center, Prior Lake, MN.

Unimproved Land -

Long Prairie Unimproved Land, Long Prairie, MN.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND OVERALL ECONOMIC OCCUPANCY LEVELS BY SEGMENT

Q4 2008 vs. Q4 2007

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

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and twelve months ended April 30, 2008

	Three Months Ended April 30, 2008							Twelve Months Ended April 30, 2008
	New(1)		Renew(2)		4th Quarter 2008 Total			New(1)		Renew(2)		Year-To-Date Total
Gross Leasing Square Footage
Commercial Office		44,331		25,268		69,599			141,565		612,608		754,173
Commercial Medical		677,996		17,991		695,987			717,496		50,741		768,237
Commercial Industrial		6,864		42,006		48,870			76,685		43,206		119,891
Commercial Retail		10,315		34,861		45,176			40,624		121,265		161,889
Total		739,506		120,126		859,632			976,370		827,820		1,804,190

Weighted Average Term (yrs)
Commercial Office		5.0		2.5		4.0			4.6		3.9		4.2
Commercial Medical		21.0		6.0		6.0			17.6		4.8		6.4
Commercial Industrial		3.0		5.5		4.7			3.0		4.7		3.8
Commercial Retail		5.2		2.7		3.0			4.0		2.9		3.2
Total		12.0		3.3		7.8			7.2		3.6		5.2

Rental Rate Increases
Rate on Expiring Leases
Commercial Office					$	13.05						$	12.13
Commercial Medical						10.76							11.24
Commercial Industrial						5.38							4.23
Commercial Retail						7.52							8.91
Total					$	10.73						$	10.78

Rate on New and Renewal Leases
Commercial Office	$	12.07	$	5.06	$	9.53		$	13.89	$	11.06	$	11.59
Commercial Medical		13.30		18.49		13.43			13.89		19.38		14.25
Commercial Industrial		2.79		5.90		5.46			2.92		6.06		4.05
Commercial Retail		9.94		4.31		5.60			9.40		6.09		6.92
Total	$	13.08	$	7.15	$	12.25		$	12.84	$	10.58	$	11.80

Percentage Increase (Decrease)
Commercial Office						(27.0	%)						(4.5	%)
Commercial Medical						24.8	%						26.8	%
Commercial Industrial						1.5	%						(4.3	%)
Commercial Retail						(25.5	%)						(22.3	%)
Total						14.2	%						9.5	%

(1)	Excluding leases in place on date of acquisition.

(2)	Renewing leases are not necessarily leases expiring in that period. Expansion footage for renewing tenants is included in this column.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and twelve months ended April 30, 2008

	4th Quarter 2008 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	739,445	$	37,241	$	776,686	$	2,307,298	$	2,258,612	$	4,565,910
Commercial Medical		0		440,000		440,000		1,065,573		768,816		1,834,389
Commercial Industrial		1,000		3,000		4,000		24,630		3,000		27,630
Commercial Retail		8,003		41,530		49,533		242,689		161,022		403,711
Subtotal	$	748,448	$	521,771	$	1,270,219	$	3,640,190	$	3,191,450	$	6,831,640

Tenant Improvements per square foot
Commercial Office	$	16.68	$	1.47	$	11.16	$	16.30	$	3.69	$	6.05
Commercial Medical		0.00		24.46		0.47		1.12		15.15		1.83
Commercial Industrial		0.15		0.07		0.08		0.32		0.07		0.23
Commercial Retail		0.78		1.19		1.10		5.97		1.33		2.49
Subtotal	$	0.77	$	4.34	$	1.16	$	3.01	$	3.86	$	3.36

Leasing Costs
Commercial Office	$	347,307	$	34,380	$	381,687	$	986,295	$	1,892,413	$	2,878,708
Commercial Medical		0		47,802		47,802		303,094		130,126		433,220
Commercial Industrial		5,313		25,216		30,529		37,974		25,216		63,190
Commercial Retail		34,075		28,854		62,929		75,974		54,916		130,890
Subtotal	$	386,695	$	136,252	$	522,947	$	1,403,337	$	2,102,671	$	3,506,008

Leasing Costs per square foot
Commercial Office	$	7.83	$	1.36	$	5.48	$	6.97	$	3.09	$	3.82
Commercial Medical		0.00		2.66		0.05		0.32		2.56		0.43
Commercial Industrial		0.77		0.60		0.62		0.50		0.58		0.53
Commercial Retail		3.30		0.83		1.39		1.87		0.45		0.81
Subtotal	$	0.40	$	1.13	$	0.48	$	1.16	$	2.54	$	1.72

Tenant Improvements and Leasing Costs
Commercial Office	$	1,086,752	$	71,621	$	1,158,373	$	3,293,593	$	4,151,025	$	7,444,618
Commercial Medical		0		487,802		487,802		1,368,667		898,942		2,267,609
Commercial Industrial		6,313		28,216		34,529		62,604		28,216		90,820
Commercial Retail		42,078		70,384		112,462		318,663		215,938		534,601
Total	$	1,135,143	$	658,023	$	1,793,166	$	5,043,527	$	5,294,121	$	10,337,648

Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	24.51	$	2.83	$	16.64	$	23.27	$	6.78	$	9.87
Commercial Medical		0.00		27.11		0.53		1.44		17.72		2.27
Commercial Industrial		0.92		0.67		0.71		0.82		0.65		0.76
Commercial Retail		4.08		2.02		2.49		7.84		1.78		3.30
Total	$	1.17	$	5.48	$	1.64	$	4.18	$	6.40	$	5.08

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Months Ended
	04/30/2008			01/31/2008			10/31/2007			07/31/2007			04/30/2007
Number of Units		9,500			9,500			9,337			9,337			9,337
Average Investment Per Unit	$	53,672		$	53,313		$	52,898		$	52,524		$	52,206

Average Scheduled Rent per Unit
Stabilized		707.93			703.00			698.58			696.63			695.71
Non-Stabilized		577.00			549.10			542.48			535.95			467.72
		692.85			686.38			683.01			680.59			674.93

Total Receipts per Unit
Stabilized		666.23			668.10			668.32			650.20			642.93
Non-Stabilized		508.24			499.01			506.14			473.57			441.54
		648.03			649.84			652.15			632.59			624.57
Occupancy %
Stabilized		92.8	%		93.7	%		94.1	%		92.6	%		92.4	%
Non-Stabilized		84.6	%		87.3	%		89.9	%		82.3	%		93.2	%
		92.1	%		93.1	%		93.8	%		91.8	%		92.5	%

Operating Expenses as a % of Scheduled Rent
Stabilized		45.8	%		44.3	%		45.3	%		43.1	%		45.3	%
Non-Stabilized		46.4	%		44.9	%		46.4	%		47.5	%		45.7	%
Total		45.9	%		44.4	%		45.4	%		43.5	%		45.3	%

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

10 LARGEST TENANTS – BASED ON ANNUALIZED BASE RENT

as of April 30, 2008

Tenant	Number of Buildings		Weighted Average Remaining Lease Term in Months		% of Total Commercial Segments’ Minimum Rents			Aggregate Rentable Square Feet		Percentage of Aggregate Occupied Square Feet
Edgewood Vista/Sunwest Management, Inc.		19		250		9.4	%		909,591		8.6	%
St. Lukes Hospital of Duluth, Inc.		6		87		3.5	%		198,775		1.9	%
Fairview Health		8		51		2.3	%		167,115		1.6	%
Applied Underwriters		3		106		2.2	%		141,724		1.3	%
Best Buy Co., Inc. (NYSE: BBY)		2		31		2.0	%		224,650		2.1	%
UGS Corp.		1		40		1.7	%		122,567		1.2	%
HealthEast Care System		1		130		1.6	%		114,316		1.1	%
Microsoft (NASDAQ: MSFT)		1		64		1.5	%		122,040		1.1	%
Smurfit - Stone Container (NASDAQ: SSCC)		2		92		1.5	%		424,147		4.0	%
Allina Health System		5		36		1.4	%		87,589		0.8	%
Total/Weighted Average				84		27.1	%		2,512,514		23.7	%

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of April 30, 2008

Fiscal Year	Number of Leases		Rentable Square Feet		Percent of Rentable Square Feet			Annualized Rent *		Average Rental Rate		Percent of Annualized Rent
Commercial Office
2009		63		450,143		10.8	%	$	4,568,661	$	10.15		8.8	%
2010		74		739,701		17.8	%		9,024,375		12.20		17.4	%
2011		59		589,818		14.2	%		7,618,245		12.92		14.7	%
2012		41		743,200		17.9	%		9,916,850		13.34		19.2	%
2013		33		575,359		13.8	%		6,343,937		11.03		12.3	%
2014 and thereafter		46		1,063,024		25.5	%		14,293,735		13.45		27.6	%
		316		4,161,245		100.0	%	$	51,765,803	$	12.44		100.0	%

Commercial Medical
2009		20		52,779		2.8	%	$	758,537	$	14.37		2.6	%
2010		19		51,017		2.7	%		765,140		15.00		2.7	%
2011		11		43,290		2.3	%		703,958		16.26		2.5	%
2012		24		91,864		4.9	%		1,669,611		18.17		5.8	%
2013		10		46,922		2.5	%		846,313		18.04		2.9	%
2014 and thereafter		71		1,590,338		84.8	%		24,036,878		15.11		83.5	%
		155		1,876,210		100.0	%	$	28,780,437	$	15.34		100.0	%

Commercial Industrial
2009		5		149,473		5.6	%	$	557,923	$	3.73		5.5	%
2010		6		256,657		9.5	%		775,783		3.02		7.6	%
2011		15		1,196,556		44.5	%		4,170,693		3.49		40.8	%
2012		2		237,066		8.8	%		640,078		2.70		6.2	%
2013		4		263,834		9.8	%		1,276,142		4.84		12.5	%
2014 and thereafter		8		587,235		21.8	%		2,797,077		4.76		27.4	%
		40		2,690,821		100.0	%	$	10,217,696	$	3.80		100.0	%

Commercial Retail
2009		30		173,981		14.7	%	$	1,263,146	$	7.26		13.9	%
2010		48		212,180		17.8	%		1,378,833		6.50		15.2	%
2011		38		252,675		21.3	%		2,438,412		9.65		26.8	%
2012		21		197,145		16.6	%		1,026,229		5.21		11.3	%
2013		12		63,700		5.4	%		378,514		5.94		4.2	%
2014 and thereafter		22		287,588		24.2	%		2,605,780		9.06		28.6	%
		171		1,187,269		100.0	%	$	9,090,914	$	7.66		100.0	%

Commercial Total
2009		118		826,376		8.3	%	$	7,148,267	$	8.65		7.2	%
2010		147		1,259,555		12.7	%		11,944,131		9.48		12.0	%
2011		123		2,082,339		21.0	%		14,931,308		7.17		14.9	%
2012		88		1,269,275		12.8	%		13,252,768		10.44		13.3	%
2013		59		949,815		9.6	%		8,844,906		9.31		8.9	%
2014 and thereafter		147		3,528,185		35.6	%		43,733,470		12.40		43.7	%
		682		9,915,545		100.0	%	$	99,854,852	$	10.07		100.0	%

* Annualized Rent is monthly scheduled rent as of April 30, 2008 (cash basis), multiplied by 12.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2008 ACQUISITION SUMMARY

as of April 30, 2008

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage at Acquisition			April 30, 2008 Leased Percentage			Investment

Barry Pointe	Kansas City, MO	Commercial Medical	May 2, 2007		18,502		77.9	%		100.0	%	$	3,200
Cedar Lake Business Center	St Louise Park, MN	Commercial Industrial	June 12, 2007		50,400		100.0	%		100.0	%		4,040
Urbandale 3900 106th Street	Urbandale, IA	Commercial Industrial	June 20, 2007		528,353		86.3	%		100.0	%		14,000
Plymouth 5095 Nathan Lane	Plymouth, MN	Commercial Office	July 17, 2007		20,528		100.0	%		100.0	%		2,000
Woodbury 1865 Woodlane	Woodbury, MN	Commercial Industrial	July 17, 2007		69,600		100.0	%		100.0	%		4,000
610 Business Center	Brooklyn Park, MN	Commercial Office	November 9, 2007		78,560		100.0	%		100.0	%		6,500
Greenfield Apartments	Omaha, NE	Multi-Family Residential	December 12, 2007		96		96.4	%		93.8	%		4,700
Intertech Office Building	Fenton, MO	Commercial Office	December 28, 2007		64,607		90.6	%		90.6	%		7,000
Cottonwood IV Apartments*	Bismarck, ND	Multi-Family Residential	January 2, 2008		67		7.9	%		47.8	%		6,191
Edgewood Vista – Billings	Billings, MT	Commercial Medical	February 29, 2008		11,800		100.0	%		100.0	%		4,250
Edgewood Vista – East Grand Forks	East Grand Forks	Commercial Medical	February 29, 2008		18,488		100.0	%		100.0	%		4,990
Edgewood Vista – Sioux Falls	Sioux Falls, SD	Commercial Medical	February 29, 2008		11,800		100.0	%		100.0	%		3,350
Edina 6405 France Medical	Edina, MN**	Commercial Medical	March 3, 2008		55,478		100.0	%		100.0	%		13,615
Edina 6363 France Medical	Edina, MN**	Commercial Medical	March 3, 2008		70,934		98.3	%		98.3	%		13,360
Minneapolis 701 25th Ave Medical (Riverside)	Minneapolis, MN	Commercial Medical	March 3, 2008		57,212		100.0	%		100.0	%		8,000
Burnsville 303 Nicollet Medical (Ridgeview)	Burnsville, MN	Commercial Medical	Mach 3, 2008		53,466		100.0	%		100.0	%		8,800
Burnsville 305 Nicollet Medical (Ridgeview South)	Burnsville, MN	Commercial Medical	March 3, 2008		36,199		100.0	%		100.0	%		5,900
Eagan 1440 Duckwood Medical	Eagan, MN	Commercial Medical	March 3, 2008		17,640		100.0	%		100.0	%		2,325
Edgewood Vista – Belgrade	Belgrade, MT	Commercial Medical	March 6, 2008		5,192		100.0	%		100.0	%		2,100
Edgewood Vista – Columbus	Columbus, NE	Commercial Medical	March 6, 2008		5,194		100.0	%		100.0	%		1,450
Edgewood Vista – Fargo	Fargo, ND	Commercial Medical	March 6, 2008		168,811		100.0	%		100.0	%		25,850
Edgewood Vista – Grand Island	Grand Island, NE	Commercial Medical	March 6, 2008		5,185		100.0	%		100.0	%		1,400
Edgewood Vista – Norfolk	Norfolk, NE	Commercial Medical	March 6, 2008		5,135		100.0	%		100.0	%		1,300
Eagan 2785 & 2795 Hwy, 55	Eagan, MN	Commercial Industrial	March 31, 2008		198,600		100.0	%		100.0	%		6,400
			Total Square Feet		1,551,684							$	154,721
			Total Units		163

* Development property placed in service January 2, 2008

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

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2007 AND 2008 DEVELOPMENT SUMMARY

as of April 30, 2008

($’s in thousands)

Property and Location	Total Rentable Square Feet or # of Units	Percentage Leased or Committed			Anticipated Total Cash Cost		Cash Cost to Date		Anticipated Construction Completion Date
401 South Main, Minot, ND	10 Units		0	%	$	793	$	46	September 2008
2828 Chicago Avenue Medical Building, Minneapolis, MN	56,000 s.f.		73	%		15,700		8,163	August 2008
Southdale Medical Building Expansion, Edina, MN	27,750 s.f.		75	%		10,988		5,459	July 2008
IRET Corporate Plaza, Minot, ND	67 units & 60,100 s.f.		33	%		20,739		9,188	October 2008
		Total			$	48,220	$	22,856