iretexhibit99-2.htm

EX-99.2 3 iretexhibit99-2.htm IRET SUPPLEMENTAL OPERATING AND FINANCIAL DATA iretexhibit99-2.htm

Exhibit 99.2

Second Quarter Fiscal 2009

Supplemental Operating and Financial Data

for the Quarter Ended October 31, 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: 701.838.7785 www.iret.com

Supplemental Financial and Operating Data

Table of Contents

October 31, 2008

	Page

Company Background and Highlights	2

Investment Cost by Segment	4

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

Capital Analysis
Long-Term Mortgage Debt Analysis	9
Long-Term Mortgage Debt Detail	10-11
Capital Analysis	12

Portfolio Analysis
Stabilized Properties Net Operating Income Summary	13
Net Operating Income Detail	14-17
Stabilized Properties and Overall Economic Occupancy Levels by Segment	18

Tenant Analysis
Commercial Leasing Summary	19-20
Multi-Family Residential Summary	21
10 Largest Commercial Tenants - Based on Annualized Base Rent	22
Lease Expirations as of October 31, 2008	23

Growth and Strategy
Fiscal 2009 Acquisition Summary	24
Fiscal 2009 Development Summary	25

Definitions	26

Table of Contents

Company Background and Highlights

Second Quarter Fiscal 2009

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 three months ended October 31, 2008, IRET acquired a 36-unit apartment building located in Isanti, Minnesota for a purchase price of $3.1 million, consisting of approximately $1.3 million in cash, and limited partnership units of IRET’s operating partnership valued at approximately $1.8 million. The apartment building is currently 100% occupied.

IRET also acquired during the second quarter of fiscal year 2009 an approximately 22,500 square foot one-story office property, on approximately 2.5 acres in Bismarck, North Dakota. The office building is connected to a vacant four-story office property which the Company is demolishing. The Company paid $2.2 million for this property, which is the former location of the Bank of North Dakota. The one-story office annex is currently leased through June 2009 to a single tenant.

During the second quarter of fiscal year 2009, IRET completed the remaining interior work and tenant improvements in its approximately 31,643 square foot addition to the Company’s Southdale Medical Building in Edina, Minnesota. The cost of the expansion project was approximately $6.5 million, excluding relocation, tenant improvement and leasing costs incurred to relocate tenants in the existing facility. The addition is currently approximately 84% leased. A lease has been signed for the remainder of the space in the addition, with tenant occupancy expected in the fourth quarter of fiscal year 2009.

Also during the second quarter of fiscal year 2009, IRET completed construction of an approximately 56,239 square foot medical office building and adjoining parking ramp next to the Company’s existing five-story medical office building located at 2828 Chicago Avenue in Minneapolis, Minnesota. The new medical office building and adjoining parking ramp cost approximately $11.3 million to construct. Currently, approximately 72% of this new medical office building is leased to two tenants.

The Company had no material dispositions during the three months ended October 31, 2008.

In the second quarter of fiscal year 2009, IRET paid its 150th consecutive quarterly distribution per common share/unit at equal or increasing rates. The $0.1690 per share/unit distribution was paid October 1, 2008.

As of October 31, 2008, IRET owns a diversified portfolio of 242 properties consisting of 77 multi-family residential properties, 66 office properties, 49 medical properties (including senior housing), 17 industrial properties and 33 retail properties. IRET’s distributions have increased every year for 38 consecutive years. IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ: IRET).

Company Snapshot

(as of October 31, 2008)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential, Office, Medical, Industrial, Retail
Total Properties	242
Total Square Feet
(commercial properties)	11.6 million
Total Units
(multi-family residential properties)	9,564
Common Shares Outstanding	58,713,015
Limited Partnership Units Outstanding	21,287,484
Common Share Distribution - Quarter/Annualized	$0.1690/$0.6760
Dividend Yield	6.8%
Total Capitalization (see p. 12 for detail)	$1.9 billion

Table of Contents

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, Chair of Nominating Committee
C.W. “Chip” Morgan	Trustee
John T. Reed	Trustee
W. David Scott	Trustee
Thomas A. Wentz, Jr.	Trustee, Senior Vice President - Asset Management and Finance
Timothy P. Mihalick	Trustee, Senior Vice President and Chief Operating Officer

Management

Thomas A. Wentz, Sr.	President and Chief Executive Officer
Diane K. Bryantt	Senior Vice President and Chief Financial Officer
Timothy P. Mihalick	Senior Vice President and Chief Operating Officer; Trustee
Thomas A. Wentz, Jr	Senior Vice President, Asset Management and Finance; Trustee
Kelly A. Walters	Senior Vice President, Capital Markets and New Business Development
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Michael A. Bosh	Senior Vice President, General Counsel and Secretary

Corporate Headquarters:

12 Main Street South

Minot, North Dakota 58701

Trading Symbol: IRET

Stock Exchange Listing: NASDAQ

Investor Relations:

Michelle Saari

msaari@iret.com

Common Share Data (NASDAQ: IRET)

	2nd Quarter Fiscal Year 2009			1st Quarter Fiscal Year 2009			4th Quarter Fiscal Year 2008			3rd Quarter Fiscal Year 2008			2nd Quarter Fiscal Year 2008
High Closing Price	$	11.19		$	10.68		$	10.47		$	10.55		$	11.59
Low Closing Price	$	7.66		$	9.54		$	8.95		$	8.84		$	9.35
Average Closing Price	$	10.01		$	10.10		$	9.82		$	9.67		$	10.62
Closing Price at end of quarter	$	9.88		$	10.50		$	10.20		$	9.80		$	10.85
Common Share Distributions—annualized	$	0.676		$	0.674		$	0.672		$	0.67		$	0.668
Closing Dividend Yield - annualized		6.8	%		6.4	%		6.6	%		6.8	%		6.2	%
Closing common shares outstanding (thousands)		58,713			58,202			57,732			56,977			56,419
Closing limited partnership units outstanding (thousands)		21,287			21,293			21,238			20,395			20,114
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	790,400		$	834,698		$	805,494		$	758,246		$	830,383

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 2008 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Table of Contents

Second Quarter Fiscal 2009 Development Project

IRET Corporate Plaza, Minot, ND


(architects’ rendering)

Investment Cost by Segment - Second Quarter Fiscal 2009

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.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
ASSETS
Real estate investments
Property owned	$	1,690,763		$	1,655,778		$	1,648,259		$	1,558,560		$	1,529,063
Less accumulated depreciation		(240,452	)		(229,691	)		(219,379	)		(209,400	)		(199,682	)
		1,450,311			1,426,087			1,428,880			1,349,160			1,329,381
Development in progress		17,603			35,231			22,856			14,734			10,553
Unimproved land		5,036			4,567			3,901			3,901			3,901
Mortgage loans receivable, net of allowance		528			534			541			548			391
Total real estate investments		1,473,478			1,466,419			1,456,178			1,368,343			1,344,226
Other assets
Cash and cash equivalents		40,855			42,351			53,481			76,392			89,302
Marketable securities – available-for-sale		420			420			420			2,160			2,090
Receivable arising from straight-lining of rents, net of allowance		14,962			14,383			14,113			13,753			13,430
Accounts receivable, net of allowance		3,676			4,395			4,163			3,842			2,279
Real estate deposits		86			1,048			1,379			1,103			1,601
Prepaid and other assets		1,813			2,324			349			821			1,445
Intangible assets, net of accumulated amortization		56,576			58,936			61,649			29,025			30,457
Tax, insurance, and other escrow		6,182			7,888			8,642			8,060			6,539
Property and equipment, net		1,432			1,450			1,467			1,487			1,486
Goodwill		1,392			1,392			1,392			1,396			1,397
Deferred charges and leasing costs, net		16,037			15,155			14,793			13,528			12,624
TOTAL ASSETS	$	1,616,909		$	1,616,161		$	1,618,026		$	1,519,910		$	1,506,876

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	26,645		$	32,917		$	33,757		$	29,573		$	22,974
Revolving lines of credit		15,000			0			0			0			0
Mortgages payable		1,066,113			1,068,267			1,063,858			975,785			967,612
Other		703			830			978			1,019			1,161
TOTAL LIABILITIES		1,108,461			1,102,014			1,098,593			1,006,377			991,747

COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST IN PARTNERSHIPS		13,098			13,186			12,609			12,768			12,781
MINORITY INTEREST OF UNITHOLDERS IN OPERATING PARTNERSHIP		157,622			159,984			161,818			155,301			154,274
SHAREHOLDERS’ EQUITY
Preferred Shares of Beneficial Interest		27,317			27,317			27,317			27,317			27,317
Common Shares of Beneficial Interest		448,803			444,134			440,187			433,645			429,236
Accumulated distributions in excess of net income		(138,392	)		(130,474	)		(122,498	)		(115,546	)		(108,474	)
Accumulated other comprehensive income (loss)		0			0			0			48			(5	)
Total shareholders’ equity		337,728			340,977			345,006			345,464			348,074
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,616,909		$	1,616,161		$	1,618,026		$	1,519,910		$	1,506,876

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Six Months Ended						Three Months Ended
OPERATING RESULTS	10/31/2008			10/31/2007			10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
Real estate revenue	$	118,419		$	107,784		$	59,573		$	58,846		$	58,962		$	54,424		$	54,211
Real estate expenses		47,757			41,927			23,953			23,804			23,911			21,567			21,053
Net operating income		70,662			65,857			35,620			35,042			35,051			32,857			33,158
Interest		(33,966	)		(31,129	)		(17,078	)		(16,888	)		(16,470	)		(15,840	)		(15,687	)
Depreciation/amortization		(27,726	)		(25,036	)		(13,959	)		(13,767	)		(13,974	)		(12,508	)		(12,504	)
Administrative, advisory and trustee fees		(2,570	)		(2,463	)		(1,239	)		(1,331	)		(1,392	)		(1,348	)		(1,267	)
Operating expenses		(844	)		(710	)		(482	)		(362	)		(291	)		(343	)		(457	)
Non-operating income		536			1,066			288			248			671			1,023			431
Income before minority interest and discontinued operations and (loss) gain on sale of other investments	$	6,092		$	7,585		$	3,150		$	2,942		$	3,595		$	3,841		$	3,674

Gain on sale of other investments		54			2			54			0			38			2			3
Minority interest portion of operating partnership income		(1,347	)		(1,835	)		(700	)		(647	)		(833	)		(855	)		(855	)
Minority interest portion of other partnerships’ (income) loss		82			36			19			63			111			(11	)		0
Income from continuing operations		4,881			5,788			2,523			2,358			2,911			2,977			2,822
Discontinued operations, net of minority interest		0			29			0			0			377			6			14
NET INCOME		4,881			5,817			2,523			2,358			3,288			2,983			2,836
Dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	3,695		$	4,631		$	1,930		$	1,765		$	2,695		$	2,390		$	2,243

Per Share Data
Earnings per common share from continuing operations	$	.06		$	.09		$	.03		$	.03		$	.04		$	.04		$	.04
Earnings per common share from discontinued operations		.00			.00			.00			.00			.01			.00			.00
Net income per common share – basic & diluted	$	.06		$	.09		$	.03		$	.03		$	.05		$	.04		$	.04

Percentage of Revenues
Real estate expenses		40.3	%		38.9	%		40.2	%		40.5	%		40.6	%		39.6	%		38.8	%
General and administrative		2.2	%		2.3	%		2.1	%		2.3	%		2.4	%		2.5	%		2.3	%
Income from continuing operations		4.1	%		5.4	%		4.2	%		4.0	%		4.9	%		5.5	%		5.2	%
Net income		4.1	%		5.4	%		4.2	%		4.0	%		5.6	%		5.5	%		5.2	%

Ratios
EBITDA/Interest expense		1.98	x		2.02	x		1.99	x		1.98	x		2.04	x		1.97	x		2.01	x
EBITDA/Interest expense plus preferred distributions		1.92	x		1.95	x		1.92	x		1.91	x		1.97	x		1.90	x		1.93	x

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Six Months Ended						Three Months Ended
	10/31/2008			10/31/2007			10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
Funds From Operations(1)
Net income	$	4,881		$	5,817		$	2,523		$	2,358		$	3,288		$	2,983		$	2,836
Less dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income available to common shareholders		3,695			4,631			1,930			1,765			2,695			2,390			2,243
Adjustments:
Minority interest in earnings of Unitholders		1,347			1,846			700			647			973			858			859
Depreciation and amortization		27,481			24,937			13,840			13,641			13,910			12,456			12,452
(Gains)/loss on depreciable property sales		(54	)		(2	)		(54	)		0			(510	)		(2	)		(3	)
Funds from operations applicable to common shares and Units	$	32,469		$	31,412		$	16,416		$	16,053		$	17,068		$	15,702		$	15,551

FFO per share and unit - basic and diluted	$	0.41		$	0.45		$	0.21		$	0.20		$	0.22		$	0.21		$	0.21
Weighted average shares and units		79,441			69,552			79,668			79,214			78,195			75,755			70,158

(1)	See Definitions on page 26.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Three Months Ended
	10/31/2008				07/312008		04/30/2008			01/31/2008			10/31/2007
EBITDA(1)
Net income	$	2,523		$	2,358		$	3,288		$	2,983		$	2,836
Adjustments:
Minority interest portion of operating partnership income		700			647			973			858			859
Income before minority interest		3,223			3,005			4,261			3,841			3,695
Add:
Interest		17,078			16,888			16,470			15,840			15,687
Depreciation/amortization related to real estate investments		13,480			13,318			13,542			12,165			12,177
Amortization related to non-real estate investments		479			449			437			356			340
Amortization related to real estate revenues(2)		(52	)		(57	)		(65	)		(79	)		(99	)
Less:
Interest income		(210	)		(223	)		(449	)		(953	)		(339	)
Gain on sale of real estate, land and other investments		(54	)		0			(552	)		(2	)		(3	)
EBITDA	$	33,944		$	33,380		$	33,644		$	31,168		$	31,458

(1)	See Definitions on page 26.

(2)	Included in real estate revenue in the Statement of Operations.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt

6.66% 7.21% 7.64% 7.02% 5.97% 6.24% 5.60% 5.77% 6.22% 5.80% 6.02%

	Future Maturities of Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2009	$	3,395	$	0	$	3,395		6.66	%		0.3	%
2010		126,273		3,630		129,903		7.21	%		12.2	%
2011		82,227		0		82,227		7.64	%		7.7	%
2012		92,662		0		92,662		7.02	%		8.7	%
2013		26,088		4,937		31,025		5.97	%		2.9	%
2014		48,812		1,082		49,894		6.24	%		4.7	%
2015		72,191		0		72,191		5.60	%		6.8	%
2016		66,452		375		66,827		5.77	%		6.3	%
2017		162,319		0		162,319		6.22	%		15.2	%
2018		94,372		0		94,372		5.80	%		8.8	%
Thereafter		280,147		1,151		281,298		6.02	%		26.4	%
Total maturities	$	1,054,938	$	11,175	$	1,066,113		6.36	%		100.0	%

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

	10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
Balances Outstanding
Mortgage
Fixed rate	$	1,054,938		$	1,057,009		$	1,052,162		$	951,112		$	943,632
Variable rate		11,175			11,258			11,696			24,673			23,980
Mortgage total		1,066,113			1,068,267			1,063,858			975,785			967,612

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL

Property	Maturity Date	Fiscal 2009		Fiscal 2010		Fiscal 2011		Fiscal 2012		Thereafter		Total(1)
Multi-Family Residential
Castle Rock - Billings, MT	3/1/2009	$	3,395	$	0	$	0	$	0	$	0	$	3,395
Forest Park Estates - Grand Forks, ND	8/1/2009		0		6,277		0		0		0		6,277
Rimrock Apts - Billings, MT	8/1/2009		0		2,209		0		0		0		2,209
Rocky Meadows Apts - Billings, MT	8/1/2009		0		3,139		0		0		0		3,139
Park Meadows I - Waite Park, MN	9/1/2009		0		2,657		0		0		0		2,657
Park Meadows II & III - Waite Park, MN	9/1/2009		0		7,053		0		0		0		7,053
Terrace on the Green - Moorhead, MN	9/01/2009		0		1,431		0		0		0		1,431
Thomasbrook - Lincoln, NE	10/1/2009		0		5,158		0		0		0		5,158
Crown Colony - Topeka, KS	11/1/2009		0		6,529		0		0		0		6,529
Sherwood Apts - Topeka, KS	11/1/2009		0		9,794		0		0		0		9,794
Westwood Park - Bismarck, ND	12/1/2009		0		1,021		0		0		0		1,021
Dakota Hill at Valley Ranch - Irving, TX	2/1/2010		0		22,941		0		0		0		22,941
Southbrook & Mariposa - Topeka, KS	2/1/2010		0		3,200		0		0		0		3,200
Kirkwood Apts - Bismarck, ND	5/1/2010		0		0		1,954		0		0		1,954
Meadows I - Jamestown, ND	8/1/2010		0		0		912		0		0		912
Meadows II - Jamestown, ND	8/1/2010		0		0		912		0		0		912
Olympic Village - Billings, MT	11/1/2010		0		0		7,716		0		0		7,716
Southview Apartments - Minot, ND	11/1/2010		0		0		749		0		0		749
Valley Park Manor - Grand Forks, ND	11/1/2010		0		0		2,742		0		0		2,742
Valley Park Manor - Grand Forks, ND	11/1/2010		0		0		835		0		0		835
Ridge Oaks Apts - Sioux City, IA	2/1/2011		0		0		2,642		0		0		2,642
Sunset Trail I - Rochester, MN	3/1/2011		0		0		3,974		0		0		3,974
Sunset Trail II - Rochester, MN	3/1/2011		0		0		3,864		0		0		3,864
Oakwood Estates - Sioux Falls, SD	6/1/2011		0		0		0		3,514		0		3,514
Oxbow - Sioux Falls, SD	6/1/2011		0		0		0		3,830		0		3,830
Chateau Apts - Minot, ND	7/1/2011		0		0		0		1,818		0		1,818
Oakmont Apts - Sioux Falls, SD	9/1/2011		0		0		0		3,768		0		3,768
Canyon Lake Apts - Rapid City, SD	10/1/2011		0		0		0		2,727		0		2,727
Meadows III - Jamestown, ND	11/1/2011		0		0		0		1,012		0		1,012
Summary of Debt due after 2012			0		0		0		0		187,734		187,734
Sub-Total Multi-Family Residential		$	3,395	$	71,409	$	26,300	$	16,669	$	187,734	$	305,507

Commercial Office
Three Paramount Plaza - Bloomington, MN	8/1/2009	$	0	$	4,083	$	0	$	0	$	0	$	4,083
American Corporate Center - Mendota Heights, MN(2)	11/1/2009		0		9,761		0		0		0		9,761	(3)
Mendota Center I - Mendota Heights, MN(2)	11/1/2009		0		3,870		0		0		0		3,870	(3)
Mendota Center II - Mendota Heights, MN(2)	11/1/2009		0		6,198		0		0		0		6,198	(3)
Mendota Center III - Mendota Heights, MN(2)	11/1/2009		0		3,600		0		0		0		3,600	(3)
Mendota Center IV - Mendota Heights, MN(2)	11/1/2009		0		4,674		0		0		0		4,674	(3)
Northgate II - Maple Grove, MN	2/1/2010		0		1,332		0		0		0		1,332
Southeast Tech Center - Eagan, MN	2/1/2010		0		3,603		0		0		0		3,603
Westgate I - Boise, ID	2/1/2010		0		1,948		0		0		0		1,948
Westgate II - Boise, ID	2/1/2010		0		4,769		0		0		0		4,769
Brenwood - Minnetonka, MN	10/1/2010		0		0		7,748		0		0		7,748
Nicollet VII - Burnsville, MN	12/1/2010		0		0		4,147		0		0		4,147
Dewey Hill Business Center - Edina, MN	1/1/2011		0		0		2,700		0		0		2,700
Plymouth IV - Plymouth, MN	1/1/2011		0		0		3,309		0		0		3,309
Plymouth V - Plymouth, MN	1/1/2011		0		0		4,762		0		0		4,762
Whitewater Plaza - Minnetonka, MN	3/1/2011		0		0		2,686		0		0		2,686
Whitewater Plaza - Minnetonka, MN	3/1/2011		0		0		1,392		0		0		1,392
2030 Cliff Road - Eagan, MN	4/1/2011		0		0		508		0		0		508
Cold Spring Center - St Cloud, MN	4/1/2011		0		0		4,296		0		0		4,296

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL (continued)

Property	Maturity Date	Fiscal 2009		Fiscal 2010		Fiscal 2011		Fiscal 2012		Thereafter		Total
Commercial Office - Continued
Pillsbury Business Center - Edina, MN	4/1/2011	$	0	$	0	$	984	$	0	$	0	$	984
Golden Hills Office Center - Golden Valley, MN	7/1/2011		0		0		0		14,628		0		14,628
Wells Fargo Center - St Cloud, MN	7/1/2011		0		0		0		7,028		0		7,028
Interlachen Corp Center - Eagan, MN	10/11/2011		0		0		0		10,027		0		10,027
Bloomington Business Plaza - Bloomington, MN	12/1/2011		0		0		0		4,357		0		4,357
Wirth Corporate Center - Golden Valley, MN	2/1/2012		0		0		0		4,369		0		4,369
Summary of Debt due after 2012			0		0		0		0		260,101		260,101
Sub-Total Commercial Office		$	0	$	43,838	$	32,532	$	40,409	$	260,101	$	376,880

Commercial Medical
Edina 6545 France SMC I - Edina, MN	1/1/2011	$	0	$	0	$	22,139	$	0	$	0	$	22,139
Edina 6525 France SMC II - Edina, MN	6/1/2011		0		0		0		9,835		0		9,835
Edina 6405 France Medical - Edina, MN	1/1/2012		0		0		0		9,419		0		9,419
Edina 6363 France Medical - Edina, MN	4/1/2012		0		0		0		8,247		0		8,247
Summary of Debt due after 2012			0		0		0		0		206,881		206,881
Sub-Total Commercial Medical		$	0	$	0	$	22,139	$	27,501	$	206,881	$	256,521

Commercial Industrial
Waconia Industrial Bldg - Waconia, MN	8/2/2009	$	0	$	1,129	$	0	$	0	$	0	$	1,129
Metal Improvement Co - New Brighton, MN	10/1/2009		0		1,243		0		0		0		1,243
Lexington Commerce Center - Eagan, MN	2/1/2010		0		2,898		0		0		0		2,898
Eagan 2785 & 2795 Highway 55 - Eagan, MN	6/1/2011		0		0		0		3,812		0		3,812
Stone Container - Roseville, MN	2/1/2012		0		0		0		4,271		0		4,271
Summary of Debt due after 2012			0		0		0		0		48,679		48,679
Sub-Total Commercial Industrial		$	0	$	5,270	$	0	$	8,083	$	48,679	$	62,032

Commercial Retail
Rochester Maplewood Square - Rochester, MN	8/1/2009	$	0	$	3,939	$	0	$	0	$	0	$	3,939
Minot Arrowhead Shopping Center - Minot, ND	8/23/2009		0		2,500		0		0		0		2,500
Grand Forks MedPark Mall - Grand Forks, ND	3/1/2010		0		2,947		0		0		0		2,947
Minot Plaza - Minot, ND	8/1/2010		0		0		644		0		0		644
Kentwood Thomasville Furniture - Kentwood, MI	2/1/2011		0		0		612		0		0		612
Summary of Debt due after 2012			0		0		0		0		54,531		54,531
Sub-Total Commercial Retail		$	0	$	9,386	$	1,256	$	0	$	54,531	$	65,173

Total		$	3,395	$	129,903	$	82,227	$	92,662	$	757,926	$	1,066,113

(1)	Totals given are principal balances as of October 31, 2008.

(2)	IRET’s ownership interest in these properties is 51%. IRET’s 49% joint venture partner is obligated on the mortgage debt in proportion to its ownership interest.

(3)	Includes the 49% share of IRET’s joint venture partner.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
Equity Capitalization
Common shares outstanding		58,713			58,202			57,732			56,977			56,419
Operating partnership (OP) units outstanding		21,287			21,293			21,238			20,395			20,114
Total common shares and OP units outstanding		80,000			79,495			78,970			77,372			76.533
Market price per common share (closing price at end of period)	$	9.88		$	10.50		$	10.20		$	9.80		$	10.85
Equity capitalization-common shares and OP units	$	790,400		$	834,698		$	805,494		$	758,246		$	830,383
Recorded book value of preferred shares	$	27,317		$	27,317		$	27,317		$	27,317		$	27,317
Total equity capitalization	$	817,717		$	862,015		$	832,811		$	785,563		$	857,700

Debt Capitalization
Total mortgage debt	$	1,066,113		$	1,068,267		$	1,063,858		$	975,785		$	967,612
Total capitalization	$	1,883,830		$	1,930,282		$	1,896,669		$	1,761,348		$	1,825,312

Total debt to total capitalization	0.57:1			0.55:1			0.56:1			0.55:1			0.53:1

Earnings to fixed charges(1)		1.16	x		1.15	x		1.20	x		1.23	x		1.23	x
Earnings to combined fixed charges and preferred distributions(1)		1.13	x		1.12	x		1.16	x		1.19	x		1.19	x
Debt service coverage ratio(1)		1.41	x		1.40	x		1.46	x		1.42	x		1.45	x

Distribution Data
Common shares and units outstanding at record date		79,566			79,116			77,675			76,698			69,363
Total common distribution paid	$	13,445		$	13,332		$	13,050		$	12,847		$	11,584
Common distribution per share and unit	$	0.1690		$	0.1685		$	0.1680		$	0.1675		$	0.1670
Payout ratio (FFO per share and unit basis)(1)		80.5	%		84.3	%		76.4	%		79.8	%		79.5	%

(1)	See Definitions on page 26.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties
	Three Months Ended October 30,							Six months Ended October 30,
Segment	2008		2007		% Change			2008		2007		% Change
Multi-Family Residential	$	9,955	$	9,468		5.1	%	$	19,425	$	18,724		3.7	%
Commercial Office		11,031		11,857		(7.0	%)		21,963		23,729		(7.4	%)
Commercial Medical		6,648		6,819		(2.5	%)		13,333		13,445		(0.8	%)
Commercial Industrial		1,661		1,979		(16.1	%)		3,323		3,955		(16.0	%)
Commercial Retail		2,357		2,398		(1.7	%)		4,695		4,928		(4.7	%)
	$	31,652	$	32,521		(2.7	%)	$	62,739	$	64,781		(3.2	%)

1.	For 2nd Quarter Fiscal 2009 and 2nd Quarter Fiscal 2008, stabilized properties excluded:

Multi-Family Residential -	Indian Hills, Sioux City, IA; Cottonwood IV Apartments, Bismarck, ND; Greenfield Apartments, Omaha, NE; 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 and Evergreen Apartments, Isanti, MN.
	Total number of units, 611. Occupancy % for the three and six months ended October 31, 2008, 92.6% and 88.4%, respectively.

Commercial Office -	610 Business Center, Brooklyn Park, MN; Intertech, Fenton, MO; Plymouth 5095, Plymouth, MN and Bismarck 715 E Broadway, Bismarck, ND.
	Total square footage, 185,825. Occupancy % for the three and six months ended October 31, 2008, 95.4% and 95.1%, respectively.

Commercial Medical -

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; Edgewood Vista Norfolk, Norfolk, NE and 2828 Chicago Avenue, Minneapolis, MN.

Total square footage, 597,265. Occupancy % for the three and six months ended October 31, 2008, 95.2% and 97.0%, respectively.

Commercial Industrial -	Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA; Woodbury 1865, Woodbury, MN and Eagan 2785 & 2795 Highway 55, Eagan, MN.
	Total square footage, 846,953. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Discontinued operations from fiscal 2008 include:

Multi-Family Residential -	405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.
	Total number of units, 60.

Commercial Office -	Minnetonka Office Building, Minnetonka, MN.
	Total square footage, 1,142.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2008
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	18,326		$	20,029		$	9,280		$	2,139		$	3,513		$	0		$	53,287
Non-Stabilized		1,076			694			3,680			836			0			0			6,286
Total		19,402			20,723			12,960			2,975			3,513			0			59,573

Real estate expenses
Stabilized(1)		8,371			8,998			2,632			478			1,156			0			21,635
Non-Stabilized		558			205			1,231			324			0			0			2,318
Total		8,929			9,203			3,863			802			1,156			0			23,953

Net Operating Income (NOI)
Stabilized(1)		9,955			11,031			6,648			1,661			2,357			0			31,652
Non-Stabilized		518			489			2,449			512			0			0			3,968
Net operating income	$	10,473		$	11,520		$	9,097		$	2,173		$	2,357		$	0		$	35,620

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(4,916	)	$	(5,945	)	$	(4,246	)	$	(952	)	$	(992	)	$	(27	)	$	(17,078	)
Depreciation/amortization		(3,499	)		(5,118	)		(3,194	)		(903	)		(698	)		(547	)		(13,959	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,239	)		(1,239	)
Other expenses		0			0			0			0			0			(482	)		(482	)
Other income		0			0			0			0			0			288			288
Income before gain on sale of other investments and minority interest and discontinued operations		2,058			457			1,657			318			667			(2,007	)		3,150
Gain on sale of the other investments		0			0			0			0			0			54			54
Minority interest portion of operating partnership income		0			0			0			0			0			(700	)		(700	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			19			19
Income from continuing operations		2,058			457			1,657			318			667			(2,634	)		2,523
NET INCOME		2,058			457			1,657			318			667			(2,634	)		2,523
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	2,058		$	457		$	1,657		$	318		$	667		$	(3,227	)	$	1,930

1.	For 2nd Quarter Fiscal 2009, non-stabilized properties included:

Multi-Family Residential -	Indian Hills, Sioux City, IA; Cottonwood IV Apartments, Bismarck, ND; Greenfield Apartments, Omaha, NE; 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 and Evergreen Apartments, Isanti, MN.
	Total number of units, 611. Occupancy % for the three and six months ended October 31, 2008, 92.6% and 88.4%, respectively.

Commercial Office -	610 Business Center, Brooklyn Park, MN; Intertech, Fenton, MO; Plymouth 5095, Plymouth, MN and Bismarck 715 E Broadway, Bismarck, ND.
	Total square footage, 185,825. Occupancy % for the three and six months ended October 31, 2008, 95.4% and 95.1%, respectively.

Commercial Medical -

Total square footage, 597,265 Occupancy % for the three and six months ended October 31, 2008, 95.2% and 97.0%, respectively.

Commercial Industrial -	Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA; Woodbury 1865, Woodbury, MN and Eagan 2785 & 2795 Highway 55, Eagan, MN.
	Total square footage, 846,953. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2007
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,699		$	20,561		$	8,799		$	2,431		$	3,385		$	0		$	52,875
Non-Stabilized		569			50			121			596			0			0			1,336
Total		18,268			20,611			8,920			3,027			3,385			0			54,211

Real estate expenses
Stabilized(1)		8,231			8,704			1,980			452			987			0			20,354
Non-Stabilized		445			17			63			174			0			0			699
Total		8,676			8,721			2,043			626			987			0			21,053

Net Operating Income (NOI)
Stabilized(1)		9,468			11,857			6,819			1,979			2,398			0			32,521
Non-Stabilized		124			33			58			422			0			0			637
Net operating income	$	9,592		$	11,890		$	6,877		$	2,401		$	2,398		$	0		$	33,158

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(4,920	)	$	(5,777	)	$	(2,822	)	$	(872	)	$	(1,050	)	$	(246	)	$	(15,687	)
Depreciation/amortization		(3,261	)		(5,234	)		(2,122	)		(821	)		(662	)		(404	)		(12,504	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,267	)		(1,267	)
Other expenses		0			0			0			0			0			(457	)		(457	)
Other income		0			0			0			0			0			431			431
Income before gain on sale of other investments and minority interest and discontinued operations		1,411			879			1,933			708			686			(1,943	)		3,674
Gain on sale of other investments		0			0			0			0			0			3			3
Minority interest portion of operating partnership income		0			0			0			0			0			(855	)		(855	)
Income from continuing operations		1,411			879			1,933			708			686			(2,795	)		2,822
Discontinued operations, net of minority interest(2)		16			(2	)		0			0			0			0			14
NET INCOME		1,427			877			1,933			708			686			(2,795	)		2,836
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,427		$	877		$	1,933		$	708		$	686		$	(3,388	)	$	2,243

1.	For 2nd Quarter Fiscal 2008, non-stabilized properties included:

Multi-Family Residential -	Indian Hills, Sioux City, IA; and Thomasbrook Apartments, Lincoln, NE.
	Total number of units, 69. Occupancy for the three and six month ended, 81.7% and 81.6%, respectively.

Commercial Office -	Plymouth 5095, Plymouth, MN.
	Total square footage, 20,528. Occupancy for the three and six month ended, 100.0% and 100.0%, respectively.

Commercial Medical -	Barry Point, Kansas City, MO.
	Total sq. ft., 18,502. Occupancy for the three and six month ended, 100.0% and 100.0%, respectively.

Commercial Industrial -	Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA and Woodbury 1865, Woodbury, MN.
	Total square footage, 648,353. Occupancy for the three and six month ended, 91.8% and 92.3%, respectively.

Discontinued operations from fiscal 2008 include:

Multi-Family Residential -	405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.
	Total number of units, 60.

Commercial Office -	Minnetonka Office Building, Minnetonka, MN.
	Total square footage, 1,142.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2008
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	35,973		$	40,216		$	18,780		$	4,341		$	6,991		$	0		$	106,301
Non-Stabilized		2,030			1,313			7,045			1,730			0			0			12,118
Total		38,003			41,529			25,825			6,071			6,991			0			118,419

Real estate expenses
Stabilized(1)		16,548			18,253			5,447			1,018			2,296			0			43,562
Non-Stabilized		1,106			394			2,178			517			0			0			4,195
Total		17,654			18,647			7,625			1,535			2,296			0			47,757

Net Operating Income (NOI)
Stabilized(1)		19,425			21,963			13,333			3,323			4,695			0			62,739
Non-Stabilized		924			919			4,867			1,213			0			0			7,923
Net operating income	$	20,349		$	22,882		$	18,200		$	4,536		$	4,695		$	0		$	70,662

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(9,767	)	$	(11,847	)	$	(8,470	)	$	(1,890	)	$	(2,002	)	$	10		$	(33,966	)
Depreciation/amortization		(6,971	)		(10,251	)		(6,287	)		(1,732	)		(1,420	)		(1,065	)		(27,726	)
Administrative, advisory and trustee fees		0			0			0			0			0			(2,570	)		(2,570	)
Other expenses		0			0			0			0			0			(844	)		(844	)
Other income		0			0			0			0			0			536			536
Income before gain on sale of other investments and minority interest and discontinued operations		3,611			784			3,443			914			1,273			(3,933	)		6,092
Gain on sale of other investments		0			0			0			0			0			54			54
Minority interest portion of operating partnership income		0			0			0			0			0			(1,347	)		(1,347	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			82			82
Income from continuing operations		3,611			784			3,443			914			1,273			(5,144	)		4,881
NET INCOME		3,611			784			3,443			914			1,273			(5,144	)		4,881
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	3,611		$	784		$	3,443		$	914		$	1,273		$	(6,330	)	$	3,695

1.	For 2nd Quarter Fiscal 2009, non-stabilized properties included:

Multi-Family Residential -	Indian Hills, Sioux City, IA; Cottonwood IV Apartments, Bismarck, ND; Greenfield Apartments, Omaha, NE; 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 and Evergreen Apartments, Isanti, MN.
	Total number of units, 611. Occupancy % for the three and six months ended October 31, 2008, 92.6% and 88.4%, respectively.

Commercial Office -	610 Business Center, Brooklyn Park, MN; Intertech, Fenton, MO; Plymouth 5095, Plymouth, MN and Bismarck 715 E Broadway, Bismarck, ND.
	Total square footage, 185,825. Occupancy % for the three and six months ended October 31, 2008, 95.4% and 95.1%, respectively.

Commercial Medical -

Total square footage, 597,265. Occupancy % for the three and six months ended October 31, 2008, 95.2% and 97.0%, respectively.

Commercial Industrial -	Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA; Woodbury 1865, Woodbury, MN and Eagan 2785 & 2795 Highway 55, Eagan, MN.
	Total square footage, 846,953. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2007
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	34,840		$	41,148		$	17,655		$	4,850		$	7,017		$	0		$	105,510
Non-Stabilized		1,147			58			230			839			0			0			2,274
Total		35,987			41,206			17,885			5,689			7,017			0			107,784

Real estate expenses
Stabilized(1)		16,116			17,419			4,210			895			2,089			0			40,729
Non-Stabilized		844			18			106			230			0			0			1,198
Total		16,960			17,437			4,316			1,125			2,089			0			41,927

Net Operating Income (NOI)
Stabilized(1)		18,724			23,729			13,445			3,955			4,928			0			64,781
Non-Stabilized		303			40			124			609			0			0			1,076
Net operating income	$	19,027		$	23,769		$	13,569		$	4,564		$	4,928		$	0		$	65,857

Reconciliation of NOI to net income available to common shareholders
Interest (expense) income	$	(9,779	)	$	(11,507	)	$	(5,646	)	$	(1,641	)	$	(2,056	)	$	(500	)	$	(31,129	)
Depreciation/amortization		(6,488	)		(10,664	)		(4,237	)		(1,505	)		(1,331	)		(811	)		(25,036	)
Administrative, advisory and trustee fees		0			0			0			0			0			(2,463	)		(2,463	)
Other expenses		0			0			0			0			0			(710	)		(710	)
Other income		0			0			0			0			0			1,066			1,066
Income before gain on sale of other investments and minority interest and discontinued operations		2,760			1,598			3,686			1,418			1,541			(3,418	)		7,585
Gain on sale of other investments		0			0			0			0			0			2			2
Minority interest portion of operating partnership income		0			0			0			0			0			(1,835	)		(1,835	)
Minority interest portion of other partnerships’ loss		0			0			0			0			0			36			36
Income from continuing operations		2,760			1,598			3,686			1,418			1,541			(5,215	)		5,788
Discontinued operations, net of minority interest(2)		32			(3	)		0			0			0			0			29
NET INCOME		2,792			1,595			3,686			1,418			1,541			(5,215	)		5,817
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	2,792		$	1,595		$	3,686		$	1,418		$	1,541		$	(6,401	)	$	4,631

1.	For 2nd Quarter Fiscal 2008, non-stabilized properties included:

Multi-Family Residential -	Indian Hills, Sioux City, IA; and Thomasbrook Apartments, Lincoln, NE.
	Total number of units, 69. Occupancy for the three and six month ended, 81.7% and 81.6%, respectively.

Commercial Office -	Plymouth 5095, Plymouth, MN.
	Total square footage, 20,528. Occupancy for the three and six month ended, 100.0% and 100.0%, respectively.

Commercial Medical -	Barry Point, Kansas City, MO.
	Total sq. ft., 18,502. Occupancy for the three and six month ended, 100.0% and 100.0%, respectively.

Commercial Industrial -	Cedar Lake Business Center, St. Louis Park, MN; Urbandale, Urbandale, IA and Woodbury 1865, Woodbury, MN.
	Total square footage, 648,353. Occupancy for the three and six month ended, 91.8% and 92.3%, respectively.

Discontinued operations from fiscal 2008 include:

Multi-Family Residential -	405 Grant Avenue Apartments, Harvey, ND and Sweetwater – Green Acres 1&2 Apartments, Devils Lake, ND.
	Total number of units, 60.

Commercial Office -	Minnetonka Office Building, Minnetonka, MN.
	Total square footage, 1,142.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND OVERALL ECONOMIC OCCUPANCY LEVELS BY SEGMENT

2nd Quarter Fiscal 2009 vs. 2nd Quarter Fiscal 2008

Segments	Stabilized Properties						All Properties
	2nd Quarter			2nd Quarter			2nd Quarter			2nd Quarter
	Fiscal 2009			Fiscal 2008			Fiscal 2009			Fiscal 2008
Multi-Family Residential		95.1	%		94.2	%		94.9	%		93.8	%
Commercial Office		88.5	%		92.9	%		88.8	%		92.9	%
Commercial Medical		95.8	%		95.6	%		95.6	%		95.6	%
Commercial Industrial		96.5	%		98.4	%		97.3	%		97.2	%
Commercial Retail		88.8	%		86.9	%		88.8	%		86.9	%

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three months and six months ended October 31, 2008

	Three Months Ended October 30, 2008							Six Months Ended October 30, 2008
	New(1)		Renew(2)		2nd Quarter 2008 Total			New(1)		Renew(2)		Year-To-Date Total
Gross Leasing Square Footage
Commercial Office		108,239		41,844		150,083			156,610		155,982		312,592
Commercial Medical		623		16,075		16,698			8,196		23,322		31,518
Commercial Industrial		0		71,627		71,627			12,500		71,627		84,127
Commercial Retail		55,770		11,844		67,614			63,376		50,430		113,806
Total		164,632		141,390		306,022			240,682		301,361		542,043

Weighted Average Term (yrs)
Commercial Office		4.9		2.6		3.0			4.9		3.0		3.8
Commercial Medical		3.0		5.7		5.0			6.0		5.4		5.5
Commercial Industrial		0.0		5.8		5.8			0.1		5.8		3.9
Commercial Retail		9.2		3.2		6.6			5.8		3.2		4.2
Total		6.5		3.9		4.6			5.2		3.6		4.2

Rental Rate Increases
Rate on Expiring Leases
Commercial Office					$	12.41						$	11.46
Commercial Medical						19.20							18.89
Commercial Industrial						2.88							2.88
Commercial Retail						3.53							6.67
Total					$	12.33						$	11.49

Rate on New and Renewal Leases
Commercial Office	$	11.46	$	9.64	$	10.96		$	10.16	$	9.78	$	9.97
Commercial Medical		23.04		16.24		16.51			22.68		16.32		17.98
Commercial Industrial		0.0		4.64		4.64			5.50		4.64		4.77
Commercial Retail		15.19		10.80		14.41			14.39		8.62		11.83
Total	$	12.77	$	7.95	$	10.54		$	11.46	$	8.87	$	10.02

Percentage Increase (Decrease)
Commercial Office						(11.7	%)						(13.0	%)
Commercial Medical						(14.0	%)						(4.8	%)
Commercial Industrial						61.1	%						65.6	%
Commercial Retail						308.2	%						77.4	%
Total						(14.5	%)						(12.8	%)

(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.

(3)	Net of estimated operating expenses, other than tenant improvements.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three months and six months ended October 31, 2008

	2nd Quarter 2008 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	890,000	$	106,772	$	996,772	$	1,372,779	$	601,733	$	1,974,512
Commercial Medical		6,230		250,846		257,076		271,285		255,071		526,356
Commercial Industrial		0		169,083		169,083		0		169,083		169,083
Commercial Retail		425,154		18,369		443,523		439,702		18,369		458,071
Subtotal	$	1,321,384	$	545,070	$	1,866,454	$	2,083,766	$	1,044,256	$	3,128,022

Tenant Improvements per square foot
Commercial Office	$	8.22	$	2.55	$	6.64	$	8.77	$	3.86	$	6.32
Commercial Medical		10.00		15.60		15.40		33.10		10.94		16.70
Commercial Industrial		0.00		2.36		2.36		0.00		2.36		2.01
Commercial Retail		7.62		1.55		6.56		6.94		0.36		4.03
Subtotal	$	8.03	$	3.86	$	6.10	$	8.66	$	3.47	$	5.77

Leasing Costs
Commercial Office	$	229,160	$	27,001	$	256,161	$	487,669	$	439,453	$	927,122
Commercial Medical		1,870		63,534		65,404		51,963		77,455		129,418
Commercial Industrial		0		38,960		38,960		343		38,960		39,303
Commercial Retail		24,738		28,792		53,530		37,670		31,739		69,409
Subtotal	$	255,768	$	158,287	$	414,055	$	577,645	$	587,607	$	1,165,252

Leasing Costs per square foot
Commercial Office	$	2.12	$	0.65	$	1.71	$	3.11	$	2.82	$	2.97
Commercial Medical		3.00		3.95		3.92		6.34		3.32		4.11
Commercial Industrial		0.00		0.54		0.54		0.03		0.54		0.47
Commercial Retail		0.44		2.43		0.79		0.59		0.63		0.61
Subtotal	$	1.55	$	1.12	$	1.35	$	2.40	$	1.95	$	2.15

Tenant Improvements and Leasing Costs
Commercial Office	$	1,119,160	$	133,773	$	1,252,933	$	1,860,448	$	1,041,186	$	2,901,634
Commercial Medical		8,100		314,380		322,480		323,248		332,526		655,774
Commercial Industrial		0.00		208,043		208,043		343		208,043		208,386
Commercial Retail		449,892		47,161		497,053		477,372		50,108		527,480
Total	$	1,577,152	$	703,357	$	2,280,509	$	2,661,411	$	1,631,863	$	4,293,274

Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	10.34	$	3.20	$	8.35	$	11.88	$	6.68	$	9.28
Commercial Medical		13.00		19.56		19.31		39.44		14.26		20.81
Commercial Industrial		0.00		2.90		2.90		0.03		2.90		2.48
Commercial Retail		8.07		3.98		7.35		7.53		0.99		4.63
Total	$	9.58	$	4.97	$	7.45	$	11.06	$	5.41	$	7.92

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	10/31/2008			07/31/2008			04/30/2008			01/31/2008			10/31/2007
Number of Units		9,564			9,528			9,500			9,500			9,337
Average Investment Per Unit	$	54,303		$	53,919		$	53,677		$	53,313		$	52,898

Average Scheduled Rent per Unit
Stabilized	$	705.53		$	700.43		$	695.01		$	690.31		$	686.99
Non-Stabilized		648.90			647.89			657.55			611.55			590.24
	$	701.98		$	697.18		$	692.85		$	686.38		$	683.01

Total Receipts per Unit
Stabilized	$	682.32		$	657.09		$	658.05		$	659.05		$	659.02
Non-Stabilized		598.48			536.68			484.14			474.53			491.86
	$	677.06		$	649.63		$	648.03		$	649.84		$	652.15
Occupancy %
Stabilized		95.1	%		92.8	%		93.2	%		93.9	%		94.2	%
Non-Stabilized		92.6	%		84.1	%		72.4	%		76.1	%		81.6	%
		94.9	%		92.3	%		92.1	%		93.1	%		93.8	%

Operating Expenses as a % of Scheduled Rent
Stabilized		44.2	%		43.5	%		45.9	%		44.3	%		44.6	%
Non-Stabilized		47.9	%		47.5	%		46.7	%		47.2	%		65.4	%
Total		44.4	%		43.7	%		45.9	%		44.4	%		45.4	%

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

10 LARGEST COMMERCIAL TENANTS – BASED ON ANNUALIZED BASE RENT(1)

as of October 31, 2008

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/Sunwest Management, Inc.		21		242		10.6	%		983,877		9.2	%
St. Lukes Hospital of Duluth, Inc.		6		81		3.5	%		198,775		1.9	%
Fairview Health		8		53		2.3	%		166,402		1.6	%
Applied Underwriters		3		100		2.3	%		141,724		1.3	%
Best Buy Co., Inc. (NYSE: BBY)		2		25		2.0	%		224,650		2.1	%
UGS Corp.		1		34		1.6	%		122,567		1.1	%
HealthEast Care System		1		124		1.6	%		114,316		1.1	%
Microsoft (NASDAQ: MSFT)		1		58		1.5	%		122,040		1.1	%
Smurfit - Stone Container (NASDAQ: SSCC)		2		66		1.5	%		424,147		4.0	%
Arcadis Corporate Services (NASDAQ: ARCAF)		2		33		1.4	%		82,725		0.8	%
Total/Weighted Average				106		28.3	%		2,581,223		24.2	%

(3)	See Definitions on page 26.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of October 31, 2008

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent *		Average Rental Rate		% of Annualized Rent
Commercial Office
2009		26		196,621		4.6	%	$	1,889,845	$	9.61		3.5	%
2010		77		675,855		16.0	%		8,077,629		11.95		14.9	%
2011		66		654,056		15.5	%		8,612,658		13.17		15.9	%
2012		48		777,880		18.4	%		10,762,422		13.84		19.9	%
2013		35		577,082		13.6	%		7,314,709		12.68		13.5	%
2014 and thereafter		63		1,352,680		31.9	%		17,451,185		12.90		32.3	%
		315		4,234,174		100.0	%	$	54,108,448	$	12.78		100.0	%

Commercial Medical
2009		13		42,261		1.9	%	$	754,060	$	17.84		2.0	%
2010		23		58,634		2.7	%		1,094,781		18.67		2.9	%
2011		17		67,247		3.0	%		1,247,652		18.55		3.4	%
2012		29		111,537		5.0	%		2,248,245		20.16		6.1	%
2013		18		68,342		3.1	%		1,242,913		18.19		3.3	%
2014 and thereafter		103		1,869,474		84.3	%		30,567,273		16.35		82.3	%
		203		2,217,495		100.0	%	$	37,154,924	$	16.76		100.0	%

Commercial Industrial
2009		4		107,788		3.9	%	$	497,923	$	4.62		4.7	%
2010		7		289,844		10.4	%		985,673		3.40		9.3	%
2011		15		1,072,579		38.5	%		3,549,017		3.31		33.4	%
2012		2		237,066		8.5	%		640,078		2.70		6.0	%
2013		2		204,633		7.3	%		1,003,250		4.90		9.5	%
2014 and thereafter		10		876,989		31.4	%		3,943,857		4.50		37.1	%
		40		2,788,899		100.0	%	$	10,619,798	$	3.81		100.0	%

Commercial Retail
2009		25		182,068		14.5	%	$	1,118,472	$	6.14		11.0	%
2010		50		216,010		17.2	%		1,485,635		6.88		14.7	%
2011		43		259,548		20.6	%		2,550,078		9.83		25.2	%
2012		25		221,785		17.6	%		1,221,409		5.51		12.0	%
2013		14		68,720		5.4	%		444,275		6.47		4.4	%
2014 and thereafter		33		311,328		24.7	%		3,308,787		10.63		32.7	%
		190		1,259,459		100.0	%	$	10,128,656	$	8.04		100.0	%

Commercial Total
2009		68		528,738		5.0	%	$	4,260,300	$	8.06		3.8	%
2010		157		1,240,343		11.8	%		11,643,718		9.39		10.4	%
2011		141		2,053,430		19.6	%		15,959,405		7.77		14.3	%
2012		104		1,348,268		12.8	%		14,872,154		11.03		13.3	%
2013		69		918,777		8.8	%		10,005,147		10.89		8.9	%
2014 and thereafter		209		4,410,471		42.0	%		55,271,102		12.53		49.3	%
		748		10,500,027		100.0	%	$	112,011,826	$	10.67		100.0	%

* Annualized Rent is monthly scheduled rent as of October 31, 2008 (cash basis), multiplied by 12.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2009 ACQUISITION SUMMARY

as of October 31, 2008

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage at Acquisition			October 31, 2008 Leased Percentage			Investment

33-unit Minot Westridge Apartments	Minot, ND	Multi-Family Residential	May 1, 2008		33		100.0	%		100.0	%	$	1,954
12-unit Minot Fairmont Apartments	Minot, ND	Multi-Family Residential	May 1, 2008		12		100.0	%		100.0	%		365
4-unit Minot 4th Street Apartments	Minot, ND	Multi-Family Residential	May 1, 2008		4		100.0	%		100.0	%		89
3-unit Minot 11th Street Apartments	Minot, ND	Multi-Family Residential	May 1, 2008		3		100.0	%		100.0	%		64
Bismarck 2130 S. 12th Street	Bismarck, ND	Unimproved Land	May 23, 2008		N/A		N/A			N/A			576
22,500 sq. ft. Bismarck 715 E. Broadway	Bismarck, ND	Commercial Office	August 1, 2008		22,500		100.0	%		100.0	%		1,911
Bismarck 700 E. Main	Bismarck, ND	Unimproved Land	August 1, 2008		N/A		N/A			N/A			314
36-unit Evergreen Apartments	Isanti, MN	Multi-Family Residential	September 2, 2008		36		100.0	%		100.0	%		3,100
56,239 sq. ft.- 2828 Chicago Avenue	Minneapolis, MN	Commercial Medical	September 16, 2008		56,239		68	%		72	%		12,046
31,643 sq. ft.- Southdale Medical Expansion (6545 France Avenue)	Edina, MN	Commercial Medical	September 17, 2008		31,643		75	%		82	%		6,473
			Total Square Feet		87,882							$	26,892
			Total Units		88

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2009 DEVELOPMENT SUMMARY

as of October 31, 2008

($’s in thousands)

Property and Location	Total Rentable Square Feet or # of Units	Percentage Leased or Committed			Anticipated Total Cost		Cost to Date		Anticipated Construction Completion
IRET Corporate Plaza, Minot, ND	approximately 71 units & 60,100 sq. ft.		33	%*	$	20,739	$	16,875	3rd Quarter Fiscal 2009

401 South Main, Minot, ND	10 Units		0	%		793		728	3rd Quarter Fiscal 2009
		Total			$	42,332	$	17,603

* IRET - occupied portion.

Table of Contents

Definitions

October 31, 2008

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. 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 distribution rate per common share and unit divided by quarterly 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 before adjustments for minority interest in consolidated subsidiaries, plus fixed charges and preferred distributions, less 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 before adjustments for minority interest in consolidated subsidiaries, plus fixed charges and preferred distributions, less 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.

Table of Contents