8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

December 10, 2009

INVESTORS REAL ESTATE TRUST

(Exact name of registrant as specified in its charter)

North Dakota	0-14851	45-0311232
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3015 16th Street SW, Suite 100

Minot, ND 58701

(Address of principal executive offices, including zip code)

(701) 837-4738

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

ITEM 2.02.                      Results of Operations and Financial Condition

and

ITEM 7.01.                      Regulation FD Disclosure

An earnings release issued by the Registrant on December 10, 2009, regarding financial and operational results for the three and six months ended October 31, 2009, is attached as Exhibit 99.1.  Also, certain supplemental information not included in the earnings release is attached as Exhibit 99.2.  This information is being furnished pursuant to Item 7.01 and Item 2.02 of Form 8-K.  This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

ITEM 9.01                      Financial Statements and Exhibits

(d)   Exhibits

Exhibit
Number	Description
99.1	Earnings Release issued December 10, 2009, regarding financial and operational results for the three and six months ended October 31, 2009
99.2	Certain supplemental information not included in the earnings release

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

INVESTORS REAL ESTATE TRUST

By: /s/  Timothy P. Mihalick

Timothy P. Mihalick

President & Chief Executive Officer

Date: December 10, 2009

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER AND YEAR-TO-DATE ENDED OCTOBER 31, 2009

Minot, ND – December 10, 2009 – Investors Real Estate Trust (tickers: IRET and IRETP; exchange: NASDAQ Global Select Market) reportedfinancial and operating results today for the quarter and year-to-date ended October 31, 2009.

During the three and six month periods ended October 31, 2009, IRET’s revenues remained flat and increased slightly, respectively, from the year-earlier periods.  Funds From Operations (FFO)1 decreased from the year-earlier periods overall and on a per share and unit basis.  Net income declined from the year-earlier periods, primarily attributable to increased vacancy in all segments and in particular our multi-family residential segment, impairment of real estate investment and an increase in depreciation, interest expense and real estate expenses in the three and six month periods ended October 31, 2009 compared to the three and six month periods ended October 31, 2008.

For the three month period ended October 31, 2009, as compared to the same period of the prior fiscal year:

• Revenues were flat at $59.6 million.

• FFO decreased to $14.6 million on approximately 87,162,000 weighted average shares and units outstanding, from $16.4 million on approximately 79,668,000 weighted average shares and units outstanding ($.16 per share and unit compared to $.21 share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $(308,000), compared to $1.9 million.

For the six month period ended October 31, 2009, as compared to the same period of the prior fiscal year:

• Revenues increased to $120.4 million from $118.4 million.

• FFO decreased to $31.1 million on approximately 85,184,000 weighted average shares and units outstanding, from $32.5 million on approximately 79,441,000 weighted average shares and units outstanding ($.36 per share and unit compared to $.41 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $1.1 million, compared to $3.7 million.

Total expenses increased by $2.8 million, or 4.9%, in the three months ended October 31, 2009 compared to the three months ended October 31, 2008, from $56.7 million to $59.5 million. Total expenses increased by $5.0 million, or 4.4%, from $112.9 million to $117.9 million, for the six months period ended October 31, 2009 compared to the same period of the prior fiscal year.

______________________________

1 The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as net income (computed in accordance with generally accepted accounting principles), excluding gains/losses from sales of property plus real estate depreciation and amortization.  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. See table below for a reconciliation of Net Income to FFO.

i

Operating Results

Net Operating Income (NOI)2 from stabilized properties3 decreased approximately 3.1%, or $1.1 million, during the three month period ended October 31, 2009, compared to the same period one year ago, and NOI from all properties decreased 1.4%, or $509,000.  NOI from stabilized properties decreased in all of our segments except commercial medical, which increased 0.1%. NOI from all properties decreased in all of our segments except commercial medical, which increased 1.9%. During the six month period ended October 31, 2009 compared to the same period one year ago, NOI from stabilized properties decreased in all of our segments except commercial office and medical, which increased 1.2% and 3.9%, respectively. NOI from all properties increased in all of our segments except multi-family residential and commercial retail which decreased 1.9% and 2.9% respectively.

Economic occupancy4 levels on a stabilized property basis and all property basis decreased in all of our five reportable segments during the three and six months ended October 31, 2009, compared to the three and six months ended October 31, 2008.  Economic occupancy rates on a stabilized property and all-property basis for the three and six months ended October 31, 2009, as compared to the three and six months ended October 31, 2008, were as follows:

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

Segments	Stabilized Properties(a)						All Properties
	2nd Quarter			2nd Quarter			2nd Quarter			2nd Quarter
	Fiscal 2010			Fiscal 2009			Fiscal 2010			Fiscal 2009
Multi-Family Residential		91.7	%		95.0	%		91.5	%		94.9	%
Commercial Office		88.4	%		88.7	%		87.4	%		88.8	%
Commercial Medical		93.5	%		96.2	%		93.7	%		95.6	%
Commercial Industrial		87.4	%		97.3	%		88.1	%		97.3	%
Commercial Retail		87.1	%		88.8	%		87.1	%		88.8	%

Segments	Stabilized Properties(a)						All Properties
	1st Six Months of			1st Six Months of			1st Six Months of			1st Six Months of
	Fiscal 2010			Fiscal 2009			Fiscal 2010			Fiscal 2009
Multi-Family Residential		91.4	%		93.7	%		91.3	%		93.6	%
Commercial Office		88.4	%		88.9	%		87.6	%		88.9	%
Commercial Medical		93.8	%		96.3	%		93.6	%		96.1	%
Commercial Industrial		88.6	%		97.0	%		89.1	%		97.0	%
Commercial Retail		86.3	%		87.7	%		86.3	%		87.7	%

a. For Three and Six Months Ended October 31, 2009, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND and IRET Corporate Plaza, Minot, ND. Total number of units, 433. Occupancy % for the three and six months ended October 31, 2009, 88.7% and 89.9% , respectively.

Commercial Office - Bismarck 715 E Broadway, Bismarck, ND; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND. Total square footage, 97,986. Occupancy % for the three and six months ended October 31, 6.4% and 11.9% , respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2009, 100.0% and 85.9% , respectively.

Commercial Industrial - Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA. Total square footage, 112,494. Occupancy % for the three and six months ended October 31, 2009, 100% and 100.0% , respectively.

 For Three and Six Months ended October 31, 2008, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE and Evergreen Apartments, Isanti, MN. Total number of units, 328. Occupancy % for the three and six months ended October 31, 2008, 93.8% and 89.5%, respectively.

Commercial Office - 401 South Main, Minot, ND and Bismarck 715 E Broadway, Bismarck, ND. Total square footage, 30,943. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2008, 66.0% and 66.7%, respectively.

______________________________

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

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

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

ii

Acquisitions and Development Projects Placed in Service

During the second quarter of fiscal year 2010, IRET acquired two properties: an approximately 42,180 square foot showroom/warehouse property located in a western suburb of Des Moines, Iowa, triple-net leased to a single tenant, for which we paid a total of approximately $3.4 million, a portion of which was paid in UPREIT Units valued at a total of approximately $2.9 million, or $10.25 per Unit, with the remainder paid in cash; and an approximately 15,000 square foot, 2-story office building on 1.5 acres located near our corporate headquarters building in Minot, North Dakota, for a total of $2.4 million, a portion of which we paid in UPREIT Units valued at a total of approximately $90,000, with the remainder paid in cash. IRET had no development projects placed in service or dispositions during the second quarter of fiscal year 2010.

During the first quarter of fiscal year 2010, IRET had no acquisitions, development projects placed in service, or dispositions.

Shareholder Equity, Distributions and Capital Structure

In April 2009, IRET and IRET Properties entered into a continuous equity offering program sales agreement with Robert W. Baird & Co. Incorporated (Baird).  Pursuant to the Sales Agreement, IRET may offer and sell its common shares of beneficial interest, no par value, having an aggregate gross sales price of up to $50 million, from time to time through Baird as IRET's sales agent.  IRET has no obligation to sell any common shares under the program, and Baird is not required to sell any specific number or dollar amount of common shares, but has agreed to use its commercially reasonable efforts to sell the common shares as directed by IRET. IRET sold no shares under this program during the second quarter of fiscal year 2010.

During the second quarter of fiscal year 2010, IRET completed a public offering of 9,200,000 common shares of beneficial interest at $8.25 per share (before underwriting discounts and offering expenses). Proceeds to the Company were approximately $72 million, after deducting underwriting discounts but before deducting offering expenses.

On October 1, 2009, IRET paid a quarterly distribution of $0.1710 per share and unit on its common shares and limited partnership units of IRET Properties.  This was IRET’s 154th consecutive distribution at equal or increasing rates.  IRET also paid, on September 30, 2009, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

As of October 31, 2009, IRET had a total capitalization of $1.9 billion.  Total capitalization is defined as the market value (closing price at end of period) of the Company’s outstanding common shares and the imputed market value of the outstanding limited partnership units of IRET Properties (which are convertible, at the expiration of a specified holding period, into cash or, at the Company’s sole discretion, into common shares of the Company on a one-to-one basis), plus the book value of the Company’s preferred shares and the outstanding principal balance of the consolidated debt of the Company.

Conference Call Information

The Conference Call for 2nd Quarter Earnings is scheduled for Friday, December 11, 2009 at 9:00 A.M. Central Standard Time.  The call will be limited to one hour, including questions and answers.  Conference call access information is as follows:

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

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

A webcast and transcript of the call will be archived on the “Investors Presentations & Events” page of IRET’s website, http://www.iret.com, for one year.  Questions regarding the conference call should be directed to IRET Investor Relations at msaari@iret.com.

About IRET

IRET is a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest.  IRET owns a diversified portfolio of properties consisting of 77 multi-family residential properties with 9,669 apartment units; and 68 office properties, 49 medical properties (including senior housing), 19 industrial properties and 33 retail properties with a total of approximately 11.8 million square feet of leasable space.  IRET’s distributions have increased every year for 39 consecutive years.  IRET common and preferred shares are publicly traded on the NASDAQ Global Select Market (symbols:  IRET and IRETP).  IRET’s press releases and supplemental information are available on the Company website at www.iret.com or by contacting Investor Relations at 701-837-4738.

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

iii

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	October 31, 2009			April 30, 2009
ASSETS
Real estate investments
Property owned	$	1,749,489		$	1,729,585
Less accumulated depreciation		(286,555	)		(262,871	)
		1,462,934			1,466,714
Unimproved land		5,966			5,701
Mortgage loans receivable, net of allowance of $3 and $3, respectively		159			160
Total real estate investments		1,469,059			1,472,575
Other assets
Cash and cash equivalents		102,732			33,244
Marketable securities – available-for-sale		420			420
Receivable arising from straight-lining of rents, net of allowance of $873 and $842, respectively		16,588			16,012
Accounts receivable, net of allowance of $367 and $286, respectively		4,830			2,738
Real estate deposits		635			88
Prepaid and other assets		2,750			1,051
Intangible assets, net of accumulated amortization of $49,449 and $44,887, respectively		48,118			52,173
Tax, insurance, and other escrow		6,661			7,261
Property and equipment, net of accumulated depreciation of $1,109 and $957, respectively		1,450			1,015
Goodwill		1,392			1,392
Deferred charges and leasing costs, net of accumulated amortization of $12,243 and $11,010, respectively		17,273			17,122
TOTAL ASSETS	$	1,671,908		$	1,605,091
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	29,760		$	32,773
Revolving lines of credit		6,594			5,500
Mortgages payable		1,060,131			1,070,158
Other		1,421			1,516
TOTAL LIABILITIES		1,097,906			1,109,947
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,943			1,737
EQUITY
Investors Real Estate Trust shareholders’ equity
Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at October 31, 2009 and April 30, 2009, aggregate liquidation preference of $28,750,000)		27,317			27,317
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 73,502,152 shares issued and outstanding at October 31, 2009, and 60,304,154 shares issued and outstanding at April 30, 2009)		566,395			461,648
Accumulated distributions in excess of net income		(176,580	)		(155,956	)
Total Investors Real Estate Trust shareholders’ equity		417,132			333,009
Noncontrolling interests – Operating Partnership (20,962,061 units at October 31, 2009 and 20,838,197 units at April 30, 2009)		143,260			148,199
Noncontrolling interests – consolidated real estate entities		11,667			12,199
Total equity		572,059			493,407
TOTAL LIABILITIES AND EQUITY	$	1,671,908		$	1,605,091

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three and six months ended October 31, 2009 and 2008

	Three Months Ended October 31						Six Months Ended October 31
	(in thousands, except per share data)
	2009			2008			2009			2008
REVENUE
Real estate rentals	$	48,592		$	48,857		$	97,622		$	96,514
Tenant reimbursement		11,004			10,716			22,795			21,905
TOTAL REVENUE		59,596			59,573			120,417			118,419
EXPENSES
Interest		17,200			17,078			34,601			33,966
Depreciation/amortization related to real estate investments		14,432			13,480			28,500			26,798
Utilities		4,379			4,607			8,546			9,041
Maintenance		6,616			6,585			13,823			13,584
Real estate taxes		7,924			7,487			15,895			14,857
Insurance		955			754			1,928			1,504
Property management expenses		4,611			4,520			8,709			8,771
Administrative expenses		1,365			1,125			2,721			2,356
Advisory and trustee services		133			114			264			214
Other expenses		498			482			932			844
Amortization related to non-real estate investments		549			479			1,124			928
Impairment of real estate investments		860			0			860			0
TOTAL EXPENSES		59,522			56,711			117,903			112,863
Interest income		62			210			128			433
Other income		64			78			127			103
Income before gain on sale of other investments		200			3,150			2,769			6,092
Gain on sale of other investments		0			54			0			54
NET INCOME		200			3,204			2,769			6,146
Net loss (income) attributable to noncontrolling interests – Operating Partnership		59			(700	)		(420	)		(1,347	)
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		26			19			(47	)		82
Net income attributable to Investors Real Estate Trust		285			2,523			2,302			4,881
Dividends to preferred shareholders		(593	)		(593	)		(1,186	)		(1,186	)
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(308	)	$	1,930		$	1,116		$	3,695
NET INCOME PER COMMON SHARE – BASIC AND DILUTED	$	.00		$	.03		$	.02		$	.06

v

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three and six months ended October 31, 2009 and 2008

	(in thousands, except per share amounts)
Three Months Ended October 31,	2009									2008
	Amount				Weighted Avg Shares and Units(2)		Per Share and Unit(3)			Amount				Weighted Avg Shares and Units(2)		Per Share and Unit(3)
Net income attributable to Investors Real Estate Trust		$	285								$	2,523
Less dividends to preferred shareholders			(593	)								(593	)
Net income available to common shareholders			(308	)		66,160		$	.00			1,930			58,374		$	.03
Adjustments:
Noncontrolling interest – Operating Partnership			(59	)		21,002						700			21,294
Depreciation and amortization(1)			14,926									13,840
Gain on depreciable property			0									(54	)
Funds from operations applicable to common shares and Units		$	14,559			87,162		$	.16		$	16,416			79,668		$	.21

	(in thousands, except per share amounts)
Six Months Ended October 31,	2009									2008
	Amount				Weighted Avg Shares and Units(2)		Per Share and Unit(3)			Amount				Weighted Avg Shares and Units(2)		Per Share and Unit(3)
Net income attributable to Investors Real Estate Trust		$	2,302								$	4,881
Less dividends to preferred shareholders			(1,186	)								(1,186	)
Net income available to common shareholders			1,116			64,276		$	.02			3,695			58,145		$	.06
Adjustments:
Noncontrolling interest – Operating Partnership			420			20,908						1,347			21,296
Depreciation and amortization(4)			29,525									27,481
Gain on depreciable property sales			0									(54	)
Funds from operations applicable to common shares and Units(5)		$	31,061			85,184		$	.36		$	32,469			79,441		$	.41

(1) Real estate depreciation and amortization consists of the sum of depreciation/amortization related to real estate investments and amortization related to non-real estate investments from the Condensed Consolidated Statements of Operations, totaling $14,981 and $13,959, less corporate-related depreciation and amortization on office equipment and other assets of $55 and $119, for the three months ended October 31, 2009 and 2008, respectively.

(2) UPREIT Units of the Operating Partnership are exchangeable for common shares of beneficial interest on a one-for-one basis.

(3) Net income attributable to Investors Real Estate Trust is calculated on a per share basis. FFO is calculated on a per share and unit basis.

(4) Real estate depreciation and amortization consists of the sum of depreciation/amortization related to real estate investments and amortization related to non-real estate investments from the Condensed Consolidated Statements of Operations, totaling $29,624 and $27,726, less corporate-related depreciation and amortization on office equipment and other assets of $99 and $245, for the six months ended October 31, 2009 and 2008, respectively.

(5) In accordance with SEC and NAREIT guidance, IRET does not exclude impairment write-downs from FFO (that is, impairment charges are not added back to GAAP net income in calculating FFO).  IRET recorded impairment charges of $860 for the three and six month periods ended October 31, 2009.  If these impairment charges are excluded from the Company’s calculation of FFO, the Company’s FFO per share and unit would increase by $.02 and $.01 respectively for the three and six month periods ended October 31, 2009, to $.18 and $.37, respectively.

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and six months ended October 31, 2009 and 2008

	(in thousands)
Three Months Ended October 31, 2009	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	19,256	$	20,483	$	13,231	$	3,339	$	3,287	$	59,596
Real estate expenses			9,139		9,086		3,961		1,202		1,097		24,485
Net operating income		$	10,117	$	11,397	$	9,270	$	2,137	$	2,190		35,111
Interest													(17,200	)
Depreciation/amortization													(14,981	)
Administrative, advisory and trustee fees													(1,498	)
Other expenses													(498	)
Impairment of real estate investment													(860	)
Other income													126
Net income												$	200

	(in thousands)
Three Months Ended October 31, 2008	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	19,402	$	20,723	$	12,960	$	2,975	$	3,513	$	59,573
Real estate expenses			8,929		9,203		3,863		802		1,156		23,953
Net operating income		$	10,473	$	11,520	$	9,097	$	2,173	$	2,357		35,620
Interest													(17,078	)
Depreciation/amortization													(13,959	)
Administrative, advisory and trustee fees													(1,239	)
Other expenses													(482	)
Other income													288
Gain on sale of other investments													54
Net income												$	3,204

	(in thousands)
Six Months Ended October 31, 2009	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	38,339	$	41,649	$	26,949	$	6,734	$	6,746	$	120,417
Real estate expenses			18,373		18,533		7,654		2,153		2,188		48,901
Net operating income		$	19,966	$	23,116	$	19,295	$	4,581	$	4,558		71,516
Interest													(34,601	)
Depreciation/amortization													(29,624	)
Administrative, advisory and trustee fees													(2,985	)
Other expenses													(932	)
Impairment of real estate investment													(860	)
Other income													255
Net income												$	2,769

	(in thousands)
Six Months Ended October 31, 2008	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	38,003	$	41,529	$	25,825	$	6,071	$	6,991	$	118,419
Real estate expenses			17,654		18,647		7,625		1,535		2,296		47,757
Net operating income		$	20,349	$	22,882	$	18,200	$	4,536	$	4,695		70,662
Interest													(33,966	)
Depreciation/amortization													(27,726	)
Administrative, advisory and trustee fees													(2,570	)
Other expenses													(844	)
Other income													536
Gain on sale of other investments													54
Net income												$	6,146

vii

EX-99.2

Exhibit 99.2

Second Quarter Fiscal 2010

Supplemental Operating and Financial Data

for the Quarter Ended October 31, 2009

CONTACT: Michelle Saari VP - Investors Relations Direct Dial: 701-837-4738 E-Mail: msaari@iret.com 3015 16th Street SW, Suite 100 Minot, ND 58701 Tel: 701.837.4738 Fax: 701.838.7785 www.iret.com

Supplemental Financial and Operating Data

Table of Contents

October 31, 2009

	Page
Company Background and Highlights	2
Investment Cost by Segment	5
Key Financial Data
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Funds From Operations	8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)	9
Capital Analysis
Long-Term Mortgage Debt Analysis	10
Long-Term Mortgage Debt Detail	11-12
Capital Analysis	13
Portfolio Analysis
Stabilized Properties Net Operating Income Summary	14
Net Operating Income Detail	15-18
Stabilized Properties and Overall Economic Occupancy Levels by Segment	19
Tenant Analysis
Commercial Leasing Summary	20-21
Multi-Family Residential Summary	22
10 Largest Commercial Tenants - Based on Annualized Base Rent	23
Lease Expirations as of October 31, 2009	24
Growth and Strategy
Fiscal 2010 Acquisition Summary	25
Definitions                                                                                                                                          60;	26

1

Company Background and Highlights

Second Quarter Fiscal 2010

Investors Real Estate Trust is a self-administered, equity real estate investment trust (REIT) investing in a portfolio of income-producing properties located primarily in the upper Midwest.  IRET’s portfolio is diversified among multi-family residential, commercial office, medical (including senior housing), industrial and retail segments.

During the three months ended October 31, 2009, IRET acquired two properties: an approximately 42,180 square foot showroom/warehouse property located in a western suburb of Des Moines, Iowa, triple-net leased to a single tenant, for which the Company paid a total of approximately $3.4 million, a portion of which was paid in UPREIT Units valued at a total of approximately $2.9 million, or $10.25 per Unit, with the remainder paid in cash; and an approximately 15,000 square foot, 2-story office building on 1.5 acres located near the Company’s corporate headquarters building in Minot, North Dakota, for a total of $2.4 million, a portion of which the Company paid in UPREIT Units valued at a total of approximately $90,000, with the remainder paid in cash. IRET had no development projects placed in service or dispositions during the second quarter of fiscal year 2010.

On April 7, 2009, IRET and IRET Properties entered into a continuous equity offering program sales agreement with Robert W. Baird & Co. Incorporated (Baird).  Pursuant to the Sales Agreement, IRET may offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $50 million, from time to time through Baird as IRET's sales agent. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET. IRET has no obligation to sell any common shares in the program, and may at any time suspend solicitation and offers under the program or terminate the program. IRET sold no common shares under this program during the second quarter of fiscal year 2010. During the first quarter of fiscal year 2010, IRET sold 116,869 common shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $1.1 million.

During the second quarter of fiscal year 2010, IRET completed a public offering of 9,200,000 common shares of beneficial interest at $8.25 per share (before underwriting discounts and offering expenses). Proceeds to the Company were approximately $72 million, after deducting underwriting discounts but before deducting offering expenses.

IRET's second quarter fiscal year 2010 results reflect the continuing challenges the real estate industry faced during the three months ended October 31,2009, and worsening conditions in IRET's multi-family residential segment in particular.  During this quarter, factors adversely affecting demand for IRET’s commercial and multi-family properties continued to be pervasive across the United States and in IRET’s markets, with commercial tenants continuing to focus on reducing costs through space reductions and lower rents. Additionally, continued job losses pressured occupancy and revenue in the Company’s multi-family residential segment. We expect current credit market conditions and the continued high level of unemployment to maintain or increase credit stresses on Company tenants, and continue to expect this tenant stress to lead to increases in past due accounts and vacancies.

In the second quarter of fiscal year 2010, IRET paid its 154th consecutive quarterly distribution per common share/unit at equal or increasing rates.  The $0.1710 per share/unit distribution was paid October 1, 2009.

As of October 31, 2009, IRET owns a diversified portfolio of 246 properties consisting of 77 multi-family residential properties, 68 office properties, 49 medical properties (including senior housing), 19 industrial properties and 33 retail properties.  IRET’s distributions have increased every year for 39 consecutive years.  IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).

2

Company Snapshot

(as of October 31, 2009)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential; Commercial Office, Medical, Industrial, Retail
Total Properties	246
Total Square Feet
(commercial properties)	11.8 million
Total Units
(multi-family residential properties)	9,669
Common Shares Outstanding (thousands)	73,502
Limited Partnership Units Outstanding (thousands)	20,962
Common Share Distribution - Quarter/Annualized	$0.1710/$0.684
Dividend Yield	8.2%
Total Capitalization (see p. 13 for detail)	$1.9 billion

Investor Information

Board of Trustees

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

Management

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

Corporate Headquarters:

3015 16th Street SW, Suite 100

Minot, North Dakota 58701

Trading Symbol:  IRET

Stock Exchange Listing:  NASDAQ

Investor Relations:

Michelle R. Saari

msaari@iret.com

3

Common Share Data (NASDAQ: IRET)

	2nd Quarter Fiscal Year 2010			1st Quarter Fiscal Year 2010			4th Quarter Fiscal Year 2009			3rd Quarter Fiscal Year 2009			2nd Quarter Fiscal Year 2009
High Closing Price	$	9.75		$	9.47		$	10.43		$	10.71		$	11.19
Low Closing Price	$	8.19		$	8.30		$	8.60		$	7.43		$	7.66
Average Closing Price	$	9.06		$	8.73		$	9.58		$	9.71		$	10.01
Closing Price at end of quarter	$	8.37		$	9.31		$	9.25		$	9.95		$	9.88
Common Share Distributions—annualized	$	0.684		$	0.682		$	0.680		$	0.678		$	0.676
Closing Dividend Yield - annualized		8.2	%		7.3	%		7.4	%		6.8	%		6.8	%
Closing common shares outstanding (thousands)		73,502			63,788			60,304			59,127			58,713
Closing limited partnership units outstanding (thousands)		20,962			20,837			20,838			21,184			21,287
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	790,664		$	787,859		$	750,564		$	799,094		$	790,400

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

Second Quarter Fiscal 2010 Acquisitions

Clive 2075 NW 94th Street - Clive, IA	Minot 2505 16th Street SW - Minot, ND

4

Investment Cost by Segment – Second Quarter Fiscal 2010

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

5

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
ASSETS
Real estate investments
Property owned	$	1,749,489		$	1,737,466		$	1,729,585		$	1,719,690		$	1,690,763
Less accumulated depreciation		(286,555	)		(274,497	)		(262,871	)		(251,493	)		(240,452	)
		1,462,934			1,462,969			1,466,714			1,468,197			1,450,311
Development in progress		0			0			0			0			17,603
Unimproved land		5,966			5,713			5,701			5,695			5,036
Mortgage loans receivable, net of allowance		159			160			160			161			528
Total real estate investments		1,469,059			1,468,842			1,472,575			1,474,053			1,473,478
Other assets
Cash and cash equivalents		102,732			43,935			33,244			31,022			40,855
Marketable securities – available-for-sale		420			420			420			420			420
Receivable arising from straight-lining of rents, net of allowance		16,588			16,201			16,012			15,558			14,962
Accounts receivable, net of allowance		4,830			4,148			2,738			3,678			3,676
Real estate deposits		635			460			88			242			86
Prepaid and other assets		2,750			2,900			1,051			1,514			1,813
Intangible assets, net of accumulated amortization		48,118			49,820			52,173			55,663			56,576
Tax, insurance, and other escrow		6,661			7,984			7,261			8,271			6,182
Property and equipment, net of accumulated depreciation		1,450			1,293			1,015			1,436			1,432
Goodwill		1,392			1,392			1,392			1,392			1,392
Deferred charges and leasing costs, net of accumulated amortization		17,273			16,958			17,122			16,039			16,037
TOTAL ASSETS	$	1,671,908		$	1,614,353		$	1,605,091		$	1,609,288		$	1,616,909
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	29,760		$	32,508		$	32,773		$	32,275		$	26,645
Revolving lines of credit		6,594			13,000			5,500			8,500			15,000
Mortgages payable		1,060,131			1,055,705			1,070,158			1,068,127			1,066,113
Other		1,421			1,455			1,516			1,636			703
TOTAL LIABILITIES		1,097,906			1,102,668			1,109,947			1,110,538			1,108,461
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,943			1,908			1,737			1,939			1,961
EQUITY
Investors Real Estate Trust shareholders’ equity
Preferred Shares of Beneficial Interest		27,317			27,317			27,317			27,317			27,317
Common Shares of Beneficial Interest		566,395			490,441			461,648			451,296			447,711
Accumulated distributions in excess of net income		(176,580	)		(165,349	)		(155,956	)		(147,573	)		(138,392	)
Total Investors Real Estate Trust shareholders’ equity		417,132			352,409			333,009			331,040			336,636
Noncontrolling interests – Operating Partnership		143,260			145,120			148,199			153,566			157,622
Noncontrolling interests – consolidated real estate entities		11,667			12,248			12,199			12,205			12,229
Total equity		572,059			509,777			493,407			496,811			506,487
TOTAL LIABILITIES AND EQUITY	$	1,671,908		$	1,614,353		$	1,605,091		$	1,609,288		$	1,616,909

6

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	10/31/2009			10/31/2008			10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
Real estate revenue	$	120,417		$	118,419		$	59,596		$	60,821		$	60,652		$	60,934		$	59,573
Real estate expenses		48,901			47,757			24,485			24,416			24,495			25,899			23,953
Net operating income		71,516			70,662			35,111			36,405			36,157			35,035			35,620
Interest		(34,601	)		(33,966	)		(17,200	)		(17,401	)		(17,436	)		(17,341	)		(17,078	)
Depreciation/amortization		(29,624	)		(27,726	)		(14,981	)		(14,643	)		(14,438	)		(14,550	)		(13,959	)
Administrative expenses, advisory and trustee services		(2,985	)		(2,570	)		(1,498	)		(1,487	)		(976	)		(1,336	)		(1,239	)
Other expenses		(932	)		(844	)		(498	)		(434	)		(283	)		(313	)		(482	)
Impairment of real estate investment		(860	)		0			(860	)		0			(338	)		0			0
Other income		255			536			126			129			234			152			288
Gain on sale of other investments		0			54			0			0			0			0			54
Net income	$	2,769		$	6,146		$	200		$	2,569		$	2,920		$	1,647		$	3,204
Net income attributable to noncontrolling interest – Operating Partnership		(420	)		(1,347	)		59			(479	)		(596	)		(284	)		(700	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(47	)		82			26			(73	)		(57	)		15			19
Net income attributable to Investors Real Estate Trust		2,302			4,881			285			2,017			2,267			1,378			2,523
Dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,116		$	3,695		$	(308	)	$	1,424		$	1,674		$	785		$	1,930
Per Share Data
Net income per common share – basic & diluted	$	.02		$	.06		$	.00		$	.02		$	.03		$	.02		$	.03
Percentage of Revenues
Real estate expenses		40.6	%		40.3	%		41.1	%		40.1	%		40.4	%		42.5	%		40.2	%
Interest		28.7	%		28.7	%		28.9	%		28.6	%		28.7	%		28.5	%		28.7	%
Depreciation/amortization		24.6	%		23.4	%		25.1	%		24.1	%		23.8	%		23.9	%		23.4	%
General and administrative		2.5	%		2.2	%		2.5	%		2.4	%		1.6	%		2.2	%		2.1	%
Net income		2.3	%		5.2	%		0.3	%		4.2	%		4.8	%		2.7	%		5.4	%
Ratios
EBITDA(1)/Interest expense		1.93	x		1.98	x		1.88	x		1.98	x		1.99	x		1.93	x		1.99	x
EBITDA/Interest expense plus preferred distributions		1.87	x		1.92	x		1.82	x		1.92	x		1.92	x		1.86	x		1.92	x

(1) See Definitions on page 26.  EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income.

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS(unaudited)

(in thousands, except per share and unit data)

	Six Months Ended						Three Months Ended
	10/31/2009			10/31/2008			10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	2,302		$	4,881		$	285		$	2,017		$	2,267		$	1,378		$	2,523
Less dividends to preferred shareholders		(1,186	)		(1,186	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income available to common shareholders		1,116			3,695			(308	)		1,424			1,674			785			1,930
Adjustments:
Noncontrolling interests – Operating Partnership		420			1,347			(59	)		479			596			284			700
Depreciation and amortization		29,525			27,481			14,926			14,599			14,360			14,454			13,840
Gain on depreciable property sales		0			(54	)		0			0			0			0			(54	)
Funds from operations applicable to common shares and Units	$	31,061		$	32,469		$	14,559		$	16,502		$	16,630		$	15,523		$	16,416
FFO per share and unit - basic and diluted	$	.36		$	.41		$	0.16		$	0.20		$	0.21		$	0.19		$	0.21
Weighted average shares and units		85,184			79,441			87,162			83,223			80,361			80,038			79,668

(1) See Definitions on page 26.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Six Months Ended						Three Months Ended
	10/31/2009			10/31/2008			10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	2,302		$	4,881		$	285		$	2,017		$	2,267		$	1,378		$	2,523
Adjustments:
Noncontrolling interests – Operating Partnership		420			1,347			(59	)		479			596			284			700
Income before noncontrolling interests – Operating Partnership		2,722			6,228			226			2,496			2,863			1,662			3,223
Add:
Interest		34,601			33,966			17,200			17,401			17,436			17,341			17,078
Depreciation/amortization related to real estate investments		28,500			26,798			14,432			14,068			13,825			14,023			13,480
Amortization related to non-real estate investments		1,124			928			549			575			613			527			479
Amortization related to real estate revenues(2)		64			(109	)		30			34			3			(27	)		(52	)
Less:
Interest income		(128	)		(433	)		(62	)		(66	)		(51	)		(123	)		(210	)
Gain on sale of real estate, land and other investments		0			(54	)		0			0			0			0			(54	)
EBITDA	$	66,883		$	67,324		$	32,375		$	34,508		$	34,689		$	33,403		$	33,944

(1)   See Definitions on page 26.

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

9

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt

7.08%      7.64%      7.01%      5.75%      6.18%      5.73%      5.72%      6.37%      5.80%      6.45%      5.87%

	Future Maturities of Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2010	$	42,526	$	3,418	$	45,944		7.08	%		4.3	%
2011		80,297		0		80,297		7.64	%		7.6	%
2012		93,014		0		93,014		7.01	%		8.8	%
2013		23,033		0		23,033		5.75	%		2.2	%
2014		48,434		988		49,422		6.18	%		4.6	%
2015		81,941		0		81,941		5.73	%		7.7	%
2016		64,069		274		64,343		5.72	%		6.1	%
2017		188,458		0		188,458		6.37	%		17.8	%
2018		89,257		0		89,257		5.80	%		8.4	%
2019		67,390		673		68,063		6.45	%		6.4	%
Thereafter		275,944		415		276,359		5.87	%		26.1	%
Total maturities	$	1,054,363	$	5,768	$	1,060,131		6.27	%		100.0	%

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

	10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
Balances Outstanding
Mortgage
Fixed rate	$	1,054,363		$	1,046,530		$	1,060,581		$	1,053,527		$	1,054,938
Variable rate		5,768			9,175			9,577			14,600			11,175
Mortgage total		1,060,131			1,055,705			1,070,158			1,068,127			1,066,113
Weighted Average Interest Rates
Secured		6.27	%		6.31	%		6.30	%		6.34	%		6.36	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF OCTOBER 31, 2009

Property	Maturity Date		Fiscal 2010		Fiscal 2011		Fiscal 2012		Fiscal 2013		Thereafter		Total(1)
Multi-Family Residential
17 South Main Apartments - Minot, ND	11/4/2009	(2)	$	195	$	0	$	0	$	0	$	0	$	195
401 South Main Apartments - Minot, ND	11/4/2009	(2)		683		0		0		0		0		683
Minot 4th Street Apartments - Minot, ND	11/4/2009	(2)		98		0		0		0		0		98
Minot 11th Street Apartments - Minot, ND	11/4/2009	(2)		98		0		0		0		0		98
Minot Fairmont Apartments - Minot, ND	11/4/2009	(2)		391		0		0		0		0		391
Minot Westridge Apartments - Minot, ND	11/4/2009	(2)		1,953		0		0		0		0		1,953
Dakota Hill at Valley Ranch - Irving, TX	2/1/2010	(3)		22,509		0		0		0		0		22,509
Southbrook & Mariposa - Topeka, KS	2/1/2010			3,140		0		0		0		0		3,140
Kirkwood Manor - Bismarck, ND	5/1/2010	(4)		0		1,896		0		0		0		1,896
The Meadows I - Jamestown, ND	8/1/2010			0		898		0		0		0		898
The Meadows II - Jamestown, ND	8/1/2010			0		898		0		0		0		898
Olympic Village - Billings, MT	11/1/2010			0		7,595		0		0		0		7,595
Southview Apartments - Minot, ND	11/1/2010			0		725		0		0		0		725
Valley Park Manor - Grand Forks, ND	11/1/2010			0		2,696		0		0		0		2,696
Valley Park Manor - Grand Forks, ND	11/1/2010			0		819		0		0		0		819
Ridge Oaks Apartments - Sioux City, IA	2/1/2011			0		2,596		0		0		0		2,596
Sunset Trail I - Rochester, MN	3/1/2011			0		3,906		0		0		0		3,906
Sunset Trail II - Rochester, MN	3/1/2011			0		3,789		0		0		0		3,789
Oakwood - Sioux Falls, SD	6/1/2011			0		0		3,445		0		0		3,445
Oxbow - Sioux Falls, SD	6/1/2011			0		0		3,755		0		0		3,755
Chateau Apartments - Minot, ND	7/1/2011			0		0		1,785		0		0		1,785
Oakmont Apartments - Sioux Falls, SD	9/1/2011			0		0		3,706		0		0		3,706
Canyon Lake Apartments - Rapid City, SD	10/1/2011			0		0		2,676		0		0		2,676
The Meadows III - Jamestown, ND	11/1/2011			0		0		986		0		0		986
Monticello Apartments - Monticello, MN	3/1/2013			0		0		0		3,116		0		3,116
Summary of Debt due after 2013				0		0		0		0		245,642		245,642
Sub-Total Multi-Family Residential			$	29,067	$	25,818	$	16,353	$	3,116	$	245,642	$	319,996
Commercial Office
Westgate I - Boise, ID	1/1/2010		$	1,861	$	0	$	0	$	0	$	0	$	1,861
Westgate II - Boise, ID	1/1/2010			4,557		0		0		0		0		4,557
Northgate II - Maple Grove, MN	2/1/2010	(4)		1,291		0		0		0		0		1,291
Southeast Tech Center - Eagan, MN	2/1/2010	(4)		3,493		0		0		0		0		3,493
Brenwood - Minnetonka, MN	10/1/2010			0		7,527		0		0		0		7,527
Nicollet VII - Burnsville, MN	12/1/2010			0		4,030		0		0		0		4,030
Dewey Hill Business Center - Edina, MN	1/1/2011			0		2,624		0		0		0		2,624
Plymouth IV - Plymouth, MN	1/1/2011			0		3,218		0		0		0		3,218
Plymouth V - Plymouth, MN	1/1/2011			0		4,631		0		0		0		4,631
Whitewater Plaza - Minnetonka, MN	3/1/2011			0		2,658		0		0		0		2,658
Whitewater Plaza - Minnetonka, MN	3/1/2011			0		1,378		0		0		0		1,378
2030 Cliff Road - Eagan, MN	4/1/2011			0		482		0		0		0		482
Cold Spring Center - St. Cloud, MN	4/1/2011			0		4,124		0		0		0		4,124
Pillsbury Business Center - Edina, MN	4/1/2011			0		934		0		0		0		934
Golden Hills Office Center - Golden Valley, MN	7/1/2011			0		0		14,443		0		0		14,443
Wells Fargo Center - St Cloud, MN	7/1/2011			0		0		6,762		0		0		6,762
Interlachen Corporate Center - Eagan, MN	10/11/2011			0		0		9,741		0		0		9,741
Bloomington Business Plaza - Bloomington, MN	12/1/2011			0		0		4,234		0		0		4,234
Wirth Corporate Center - Golden Valley, MN	2/1/2012			0		0		4,143		0		0		4,143
Summary of Debt due after 2013				0		0		0		0		283,263		283,263
Sub-Total Commercial Office			$	11,202	$	31,606	$	39,323	$	0	$	283,263	$	365,394

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF OCTOBER 31, 2009 (continued)

Property	Maturity Date		Fiscal 2010		Fiscal 2011		Fiscal 2012		Fiscal 2013		Thereafter		Total(1)
Commercial Medical
Edina 6545 France SMC I - Edina, MN	1/1/2011		$	0	$	21,805	$	0	$	0	$	0	$	21,805
Edina 6525 France SMC II - Edina, MN	6/1/2011			0		0		9,759		0		0		9,759
Edina 6405 France Medical - Edina, MN	1/1/2012			0		0		9,223		0		0		9,223
Edina 6363 France Medical - Edina, MN	4/1/2012			0		0		8,067		0		0		8,067
Fox River Cottages - Grand Chute, WI	5/1/2012			0		0		0		2,287		0		2,287
Summary of Debt due after 2013				0		0		0		0		201,453		201,453
Sub-Total Commercial Medical			$	0	$	21,805	$	27,049	$	2,287	$	201,453	$	252,594
Commercial Industrial
Lexington Commerce Center - Eagan, MN	2/1/2010	(4)	$	2,809	$	0	$	0	$	0	$	0	$	2,809
Eagan 2785 & 2795 Highway 55 - Eagan, MN	6/1/2011			0		0		3,740		0		0		3,740
Stone Container - Roseville, MN	2/1/2012			0		0		4,071		0		0		4,071
Minnetonka 13600 County Road 62 - Minnetonka, MN	2/27/2012			0		0		2,478		0		0		2,478
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013			0		0		0		7,669		0		7,669
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013			0		0		0		4,032		0		4,032
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013			0		0		0		5,929		0		5,929
Summary of Debt due after 2013				0		0		0		0		35,062		35,062
Sub-Total Commercial Industrial			$	2,809	$	0	$	10,289	$	17,630	$	35,062	$	65,790
Commercial Retail
Grand Forks MedPark Mall - Grand Forks, ND	3/1/2010		$	2,866	$	0	$	0	$	0	$	0	$	2,866
Minot Plaza - Minot, ND	8/1/2010			0		624		0		0		0		624
Kentwood Thomasville Furniture - Kentwood, MI	2/1/2011			0		444		0		0		0		444
Summary of Debt due after 2013				0		0		0		0		52,423		52,423
Sub-Total Commercial Retail			$	2,866	$	1,068	$	0	$	0	$	52,423	$	56,357
Total			$	45,944	$	80,297	$	93,014	$	23,033	$	817,843	$	1,060,131

(1) Totals are principal balances as of October 31, 2009.

(2) Refinanced with Dacotah Bank Line of Credit renewal in November 2009.

(3) In discussions with lenders to refinance property, also pursuing a sale of the property.

(4) Loan commitment received, refinancing pending.

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
Equity Capitalization
Common shares outstanding		73,502			63,788			60,304			59,127			58,713
Operating partnership (OP) units outstanding		20,962			20,837			20,838			21,184			21,287
Total common shares and OP units outstanding		94,464			84,625			81,142			80,311			80,000
Market price per common share (closing price at end of period)	$	8.37		$	9.31		$	9.25		$	9.95		$	9.88
Equity capitalization-common shares and OP units	$	790,664		$	787,859		$	750,564		$	799,094		$	790,400
Recorded book value of preferred shares	$	27,317		$	27,317		$	27,317		$	27,317		$	27,317
Total equity capitalization	$	817,981		$	815,176		$	777,881		$	826,411		$	817,717
Debt Capitalization
Total mortgage debt	$	1,060,131		$	1,055,705		$	1,070,158		$	1,068,127		$	1,066,113
Total capitalization	$	1,878,112		$	1,870,881		$	1,848,039		$	1,894,538		$	1,883,830
Total debt to total capitalization	0.56:1			0.56:1			0.58:1			0.56:1			0.57:1
Earnings to fixed charges(1)		1.01	x		1.14	x		1.16	x		1.08	x		1.16	x
Earnings to combined fixed charges and preferred distributions(1)		0.98	x		1.11	x		1.13	x		1.05	x		1.13	x
Debt service coverage ratio(1)		1.36	x		1.39	x		1.42	x		1.39	x		1.41	x
Distribution Data
Common shares and units outstanding at record date		84,818			84,280			80,323			80,018			79,566
Total common distribution paid	$	14,504		$	14,370		$	13,656		$	13,562		$	13,445
Common distribution per share and unit	$	.1710		$	.1705		$	0.1700		$	0.1695		$	0.1690
Payout ratio (FFO per share and unit basis)(1)		106.9	%		85.3	%		81.0	%		89.2	%		80.5	%

(1)   See Definitions on page 26.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties
	Three Months Ended October 31,							Six Months Ended October 31,
Segment	2009		2008		% Change			2009		2008		% Change
Multi-Family Residential	$	9,571	$	10,214		(6.3	%)	$	19,054	$	19,871		(4.1	%)
Commercial Office		11,373		11,475		(0.9	%)		23,106		22,840		1.2	%
Commercial Medical		8,980		8,969		0.1	%		18,769		18,060		3.9	%
Commercial Industrial		1,970		2,173		(9.3	%)		4,310		4,536		(5.0	%)
Commercial Retail		2,190		2,357		(7.1	%)		4,558		4,695		(2.9	%)
	$	34,084	$	35,188		(3.1	%)	$	69,797	$	70,002		(0.3	%)

(1) For Three and Six Months Ended October 31, 2009, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND and IRET Corporate Plaza, Minot, ND. Total number of units, 433. Occupancy % for the three and six months ended October 31, 2009, 88.7% and 89.9% , respectively.

Commercial Office - Bismarck 715 E Broadway, Bismarck, ND; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND. Total square footage, 97,986. Occupancy % for the three and six months ended October 31, 6.4% and 11.9% , respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2009, 100.0% and 85.9% , respectively.

Commercial Industrial - Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA. Total square footage, 112,494. Occupancy % for the three and six months ended October 31, 2009, 100% and 100.0% , respectively.

For Three and Six Months ended October 31, 2008, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE and Evergreen Apartments, Isanti, MN. Total number of units, 328. Occupancy % for the three and six months ended October 31, 2008, 93.8% and 89.5%, respectively.

Commercial Office - 401 South Main, Minot, ND and Bismarck 715 E Broadway, Bismarck, ND. Total square footage, 30,943. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2008, 66.0% and 66.7%, respectively.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2009
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	18,406		$	20,436		$	12,759		$	3,110		$	3,287		$	0		$	57,998
Non-Stabilized		850			47			472			229			0			0			1,598
Total		19,256			20,483			13,231			3,339			3,287			0			59,596
Real estate expenses
Stabilized(1)		8,835			9,075			3,779			1,140			1,097			0			23,926
Non-Stabilized		304			11			182			62			0			0			559
Total		9,139			9,086			3,961			1,202			1,097			0			24,485
Net Operating Income (NOI)
Stabilized(1)		9,571			11,373			8,980			1,970			2,190			0			34,084
Non-Stabilized		546			24			290			167			0			0			1,027
Net operating income	$	10,117		$	11,397		$	9,270		$	2,137		$	2,190		$	0		$	35,111
Reconciliation of NOI to net income (loss) available to common shareholders
Interest expense	$	(5,093	)	$	(5,868	)	$	(4,152	)	$	(1,020	)	$	(891	)	$	(176	)	$	(17,200	)
Depreciation/amortization		(3,745	)		(5,546	)		(3,941	)		(961	)		(706	)		(82	)		(14,981	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,498	)		(1,498	)
Other expenses		0			0			0			0			0			(498	)		(498	)
Impairment of real estate investments		0			(152	)		0			0			(708	)		0			(860	)
Other income		0			0			0			0			0			126			126
Net income (loss)		1,279			(169	)		1,177			156			(115	)		(2,128	)		200
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			59			59
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			26			26
Net income (loss) attributable to Investors Real Estate Trust		1,279			(169	)		1,177			156			(115	)		(2,043	)		285
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,279		$	(169	)	$	1,177		$	156		$	(115	)	$	(2,636	)	$	(308	)

(1) For Three and Six Months ended October 31, 2009, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND and IRET Corporate Plaza, Minot, ND. Total number of units, 433. Occupancy % for the three and six months ended October 31, 2009, 88.7% and 89.9% , respectively.

Commercial Office - Bismarck 715 E Broadway, Bismarck, ND; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND. Total square footage, 97,986. Occupancy % for the three and six months ended October 31, 6.4% and 11.9% , respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2009, 100.0% and 85.9% , respectively.

Commercial Industrial - Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA. Total square footage, 112,494. Occupancy % for the three and six months ended October 31, 2009, 100% and 100.0% , respectively.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2008
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	18,865		$	20,658		$	12,763		$	2,975		$	3,513		$	0		$	58,774
Non-Stabilized		537			65			197			0			0			0			799
Total		19,402			20,723			12,960			2,975			3,513			0			59,573
Real estate expenses
Stabilized(1)		8,651			9,183			3,794			802			1,156			0			23,586
Non-Stabilized		278			20			69			0			0			0			367
Total		8,929			9,203			3,863			802			1,156			0			23,953
Net Operating Income (NOI)
Stabilized(1)		10,214			11,475			8,969			2,173			2,357			0			35,188
Non-Stabilized		259			45			128			0			0			0			432
Net operating income	$	10,473		$	11,520		$	9,097		$	2,173		$	2,357		$	0		$	35,620
Reconciliation of NOI to net income (loss) 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
Gain on sale of other investments		0			0			0			0			0			54			54
Net income (loss)		2,058			457			1,657			318			667			(1,953	)		3,204
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(700	)		(700	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			19			19
Net income (loss) attributable to Investors Real Estate Trust		2,058			457			1,657			318			667			(2,634	)		2,523
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,058		$	457		$	1,657		$	318		$	667		$	(3,227	)	$	1,930

(1) For Three and Six Months ended October 31, 2008, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE and Evergreen Apartments, Isanti, MN. Total number of units, 328. Occupancy % for the three and six months ended October 31, 2008, 93.8% and 89.5%, respectively.

Commercial Office - 401 South Main, Minot, ND and Bismarck 715 E Broadway, Bismarck, ND. Total square footage, 30,943. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2008, 66.0% and 66.7%, respectively.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2009
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	36,680		$	41,555		$	26,074		$	6,363		$	6,746		$	0		$	117,418
Non-Stabilized		1,659			94			875			371			0			0			2,999
Total		38,339			41,649			26,949			6,734			6,746			0			120,417
Real estate expenses
Stabilized(1)		17,626			18,449			7,305			2,053			2,188			0			47,621
Non-Stabilized		747			84			349			100			0			0			1,280
Total		18,373			18,533			7,654			2,153			2,188			0			48,901
Net Operating Income (NOI)
Stabilized(1)		19,054			23,106			18,769			4,310			4,558			0			69,797
Non-Stabilized		912			10			526			271			0			0			1,719
Net operating income	$	19,966		$	23,116		$	19,295		$	4,581		$	4,558		$	0		$	71,516
Reconciliation of NOI to net income (loss) available to common shareholders
Interest expense	$	(10,136	)	$	(11,763	)	$	(8,532	)	$	(2,024	)	$	(1,858	)	$	(288	)	$	(34,601	)
Depreciation/amortization		(7,456	)		(11,230	)		(7,488	)		(1,883	)		(1,411	)		(156	)		(29,624	)
Administrative, advisory and trustee fees		0			0			0			0			0			(2,985	)		(2,985	)
Other expenses		0			0			0			0			0			(932	)		(932	)
Impairment of real estate investments		0			(152	)		0			0			(708	)		0			(860	)
Other income		0			0			0			0			0			255			255
Net income (loss)		2,374			(29	)		3,275			674			581			(4,106	)		2,769
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(420	)		(420	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(47	)		(47	)
Net income (loss) attributable to Investors Real Estate Trust		2,374			(29	)		3,275			674			581			(4,573	)		2,302
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,374		$	(29	)	$	3,275		$	674		$	581		$	(5,759	)	$	1,116

(1) For Three and Six Months ended October 31, 2009, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND; Thomasbrook Apartments, Lincoln, NE; Evergreen Apartments, Isanti, MN; 401 South Main, Minot, ND and IRET Corporate Plaza, Minot, ND. Total number of units, 433. Occupancy % for the three and six months ended October 31, 2009, 88.7% and 89.9% , respectively.

Commercial Office - Bismarck 715 E Broadway, Bismarck, ND; 401 South Main, Minot, ND; IRET Corporate Plaza, Minot, ND, 12 South Main Street, Minot, ND and Minot 2505 16th St SW, Minot, ND. Total square footage, 97,986. Occupancy % for the three and six months ended October 31, 6.4% and 11.9% , respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2009, 100.0% and 85.9% , respectively.

Commercial Industrial - Minnetonka 13600 County Road 62, Minnetonka, MN and Clive 2075 NW 94th St., Clive, IA. Total square footage, 112,494. Occupancy % for the three and six months ended October 31, 2009, 100% and 100.0% , respectively.

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2008
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	36,997		$	41,463		$	25,616		$	6,071		$	6,991		$	0		$	117,138
Non-Stabilized		1,006			66			209			0			0			0			1,281
Total		38,003			41,529			25,825			6,071			6,991			0			118,419
Real estate expenses
Stabilized(1)		17,126			18,623			7,556			1,535			2,296			0			47,136
Non-Stabilized		528			24			69			0			0			0			621
Total		17,654			18,647			7,625			1,535			2,296			0			47,757
Net Operating Income (NOI)
Stabilized(1)		19,871			22,840			18,060			4,536			4,695			0			70,002
Non-Stabilized		478			42			140			0			0			0			660
Net operating income	$	20,349		$	22,882		$	18,200		$	4,536		$	4,695		$	0		$	70,662
Reconciliation of NOI to net income (loss) 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
Gain on sale of other investments		0			0			0			0			0			54			54
Net income (loss)		3,611			784			3,443			914			1,273			(3,879	)		6,146
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,347	)		(1,347	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			82			82
Net income (loss) attributable to Investors Real Estate Trust		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 (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	3,611		$	784		$	3,443		$	914		$	1,273		$	(6,330	)	$	3,695

(1) For Three and Six Months ended October 31, 2008, stabilized properties excluded:

Multi-Family Residential - Minot 4th Street Apartments, Minot, ND; Minot 11th Street Apartments, Minot, ND; Minot Fairmont Apartments, Minot, ND; Minot Westridge Apartments, Minot, ND, Thomasbrook Apartments, Lincoln, NE and Evergreen Apartments, Isanti, MN. Total number of units, 328. Occupancy % for the three and six months ended October 31, 2008, 93.8% and 89.5%, respectively.

Commercial Office - 401 South Main, Minot, ND and Bismarck 715 E Broadway, Bismarck, ND. Total square footage, 30,943. Occupancy % for the three and six months ended October 31, 2008, 100.0% and 100.0%, respectively.

Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN. Total square footage, 56,239. Occupancy % for the three and six months ended October 31, 2008, 66.0% and 66.7%, respectively.

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND OVERALL ECONOMIC OCCUPANCY LEVELS BY SEGMENT

2nd Quarter Fiscal 2010 vs. 2nd Quarter Fiscal 2009

Segments	Stabilized Properties		All Properties
	2nd Quarter	2nd Quarter	2nd Quarter	2nd Quarter
	Fiscal 2010	Fiscal 2009	Fiscal 2010	Fiscal 2009
Multi-Family Residential	91.7%	95.0%	91.5%	94.9%
Commercial Office	88.4%	88.7%	87.4%	88.8%
Commercial Medical	93.5%	96.2%	93.7%	95.6%
Commercial Industrial	87.4%	97.3%	88.1%	97.3%
Commercial Retail	87.1%	88.8%	87.1%	88.8%

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and six months ended October 31, 2009

	Three Months Ended October 31, 2009
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			0			160,949			160,949			218,340			(57,391	)
Commercial Medical			1,300			37,194			38,494			5,631			32,863
Commercial Industrial			0			0			0			131,675			(131,675	)
Commercial Retail			45,198			88,110			133,308			74,051			59,257
Total All Segments			46,498			286,253			332,751			429,697			(96,946	)
Weighted Average Rental Rates(3)
Commercial Office		$	0.00		$	11.53		$	11.53		$	11.14		$	0.39			3.5	%
Commercial Medical			19.25			21.55			21.47			19.57			1.90			9.7	%
Commercial Industrial			0.00			0.00			0.00			3.30			(3.30	)		0.0	%
Commercial Retail			16.03			8.11			10.79			6.33			4.46			70.5	%
Total All Segments		$	16.12		$	11.78		$	12.38		$	8.02		$	4.36			54.4	%
	Six Months Ended October 31, 2009
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			17,540			329,550			347,090			321,908			25,182
Commercial Medical			15,030			45,259			60,289			31,085			29,204
Commercial Industrial			0			92,901			92,901			266,062			(173,161	)
Commercial Retail			70,747			132,038			202,785			98,802			103,983
Total All Segments			103,317			599,748			703,065			717,857			(14,792	)
Weighted Average Rental Rates
Commercial Office		$	7.17		$	11.54		$	11.32		$	12.11		$	(0.79	)		(6.5	%)
Commercial Medical			19.34			21.55			21.00			20.88			0.12			0.6	%
Commercial Industrial			0.00			3.21			3.21			3.18			0.03			0.9	%
Commercial Retail			12.95			6.80			8.95			7.66			1.29			16.8	%
Total All Segments		$	12.90		$	9.97		$	10.40		$	8.57		$	1.83			21.4	%

	Three Months Ended October 31, 2009						Six Months Ended October 31, 2009
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased
Commercial Office		0.0		3.3		3.3		2.9		3.4		3.3
Commercial Medical		6.0		6.0		6.0		5.7		4.9		5.1
Commercial Industrial		0.0		0.0		0.0		0.0		5.8		5.8
Commercial Retail		0.4		3.2		2.8		3.4		3.0		3.1
Total All Segments		2.3		3.8		3.7		3.7		3.6		3.6

(1)   Does not include leases in place on acquired properties.

(2)   Renewals may include leases that have renewed prior to expiration date.  Square footage or rental rate changes on renewals are included in calculation.

(3)   Expired leases include leases with tenants who have vacated or renewed. Excluded from expired leases are leases that have been amended to extend the term, including leases on a month-to-month basis.

20

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and six months ended October 31, 2009

	2nd Quarter Fiscal 2010 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	0	$	583,909	$	583,909	$	198,061	$	782,224	$	980,285
Commercial Medical		19,500		940,045		959,545		98,164		1,070,171		1,168,335
Commercial Industrial		0		0		0		0		71,400		71,400
Commercial Retail		0		5,389		5,389		348,988		11,684		360,672
Subtotal	$	19,500	$	1,529,343	$	1,548,843	$	645,213	$	1,935,479	$	2,580,692
Tenant Improvements per square foot
Commercial Office	$	0.00	$	3.63	$	3.63	$	0.00	$	2.37	$	2.82
Commercial Medical		15.00		25.27		24.93		6.53		23.65		19.38
Commercial Industrial		0.00		0.00		0.00		0.00		0.77		0.77
Commercial Retail		0.00		0.06		0.04		4.93		0.09		1.78
All Segments	$	0.42	$	5.34	$	4.65	$	6.24	$	3.23	$	3.67
Leasing Costs
Commercial Office	$	0	$	524,578	$	524,578	$	43,960	$	816,218	$	860,178
Commercial Medical		17,781		243,335		261,116		58,971		264,221		323,192
Commercial Industrial		0		0		0		0		81,789		81,789
Commercial Retail		3,560		23,136		26,696		209,515		95,573		305,088
Subtotal	$	21,341	$	791,049	$	812,390	$	312,446	$	1,257,801	$	1,570,247
Leasing Costs per square foot
Commercial Office	$	0.00	$	3.26	$	3.26	$	0.00	$	2.48	$	2.48
Commercial Medical		13.68		6.54		6.78		3.92		5.84		5.36
Commercial Industrial		0.00		0.00		0.00		0.00		0.88		0.88
Commercial Retail		0.08		0.26		0.20		2.96		0.72		1.50
All Segments	$	0.46	$	2.76	$	2.44	$	3.02	$	2.10	$	2.23
Tenant Improvements and Leasing Costs
Commercial Office	$	0		1,108,487		1,108,487	$	242,021	$	1,598,442	$	1,840,463
Commercial Medical		37,281		1,183,380		1,220,661		157,135		1,334,392		1,491,527
Commercial Industrial		0		0		0		0		153,189		153,189
Commercial Retail		3,560		28,525		32,085		558,503		107,257		665,760
Total	$	40,841	$	2,320,392	$	2,361,233	$	957,659	$	3,193,280	$	4,150,939
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	0.00	$	6.89	$	6.89	$	0.00	$	4.85	$	5.30
Commercial Medical		28.68		31.82		31.71		10.45		29.48		24.74
Commercial Industrial		0.00		0.00		0.00		0.00		0.00		0.00
Commercial Retail		0.08		0.32		0.24		7.89		0.81		3.28
All Segments	$	0.88	$	8.11	$	7.10	$	9.27	$	5.32	$	5.90

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	10/31/2009			07/31/2009			04/30/2009			01/31/2009			10/31/2008
Number of Units		9,669			9,645			9,645			9,645			9,564
Average Investment Per Unit
Stabilized	$	55,479		$	55,179		$	54,960		$	54,790		$	54,523
Non-Stabilized		77,214			81,566			82,555			62,537			47,883
	$	56,452		$	56,298		$	56,130		$	55,082		$	54,303
Average Scheduled Rent per Unit
Stabilized	$	713		$	711		$	711		$	708		$	705
Non-Stabilized		723			714			712			631			617
	$	714		$	711		$	711		$	705		$	702
Total Receipts per Unit
Stabilized	$	664		$	660		$	671		$	678		$	681
Non-Stabilized		654			659			603			558			567
	$	664		$	660		$	668		$	674		$	677
Occupancy %
Stabilized		91.7	%		91.1	%		93.1	%		94.4	%		95.0	%
Non-Stabilized		88.7	%		91.2	%		83.4	%		86.8	%		93.8	%
		91.5	%		91.1	%		92.7	%		94.2	%		94.9	%
Operating Expenses as a % of Scheduled Rent
Stabilized		44.7	%		44.6	%		43.8	%		46.1	%		44.3	%
Non-Stabilized		32.3	%		50.6	%		55.1	%		54.1	%		47.3	%
Total		44.1	%		44.9	%		44.3	%		46.4	%		44.4	%

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of October 31, 2009

Tenant	Number of Properties	Average  Remaining  Lease Term  in Months	% of Total Commercial Segments’ Minimum  Rents	Aggregate  Rentable  Square Feet	% of Aggregate  Occupied  Square  Feet
Affiliates of Edgewood Vista	19	232	10.0%	909,591	8.7%
St. Lukes Hospital of Duluth, Inc.	6	69	3.5%	198,775	1.9%
Fairview Health	8	53	2.6%	179,831	1.7%
Applied Underwriters	3	88	2.2%	141,724	1.4%
Best Buy Co., Inc. (NYSE: BBY)	2	13	2.0%	224,650	2.1%
HealthEast Care System	1	112	1.7%	114,316	1.1%
UGS Corp.	1	22	1.6%	122,567	1.2%
Microsoft (NASDAQ: MSFT)	1	46	1.5%	122,040	1.2%
Smurfit - Stone Container (NASDAQ: SSCC)(2)	2	44	1.5%	424,147	4.1%
Arcadis Corporate Services (NASDAQ: ARCAF)	2	21	1.4%	82,725	0.8%
Total/Weighted Average		104	28.0%	2,520,366	24.2%

(1) See Definitions on page 26.

(2) Smurfit-Stone Container has filed bankruptcy under Chapter 11 of the Bankruptcy Code.  Smurfit–Stone Container has assumed both of its leases with us and is current on all rent payments under its leases with us.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of October 31, 2009

Fiscal Year	Number of  Leases		Rentable  Square Feet		% of Rentable  Square Feet			Annualized  Rent *		Average  Rental  Rate		% of Annualized Rent
Commercial Office
2010		27		194,566		4.5	%	$	2,050,708	$	10.54		3.8	%
2011		77		727,303		17.0	%		8,764,144		12.05		16.4	%
2012		61		834,321		19.5	%		11,305,453		13.55		21.2	%
2013		34		513,456		12.0	%		6,559,195		12.77		12.3	%
2014		36		535,088		12.5	%		6,974,751		13.03		13.0	%
2015 and thereafter		72		1,475,535		34.5	%		17,824,887		12.08		33.3	%
		307		4,280,269		100.0	%	$	53,479,138	$	12.49		100.0	%
Commercial Medical
2010		10		31,579		1.4	%	$	640,173	$	20.27		1.6	%
2011		15		64,387		2.9	%		1,152,622		17.90		2.9	%
2012		30		102,335		4.6	%		2,091,674		20.44		5.3	%
2013		19		71,371		3.2	%		1,214,062		17.01		3.1	%
2014		24		146,515		6.7	%		3,061,754		20.90		7.8	%
2015 and thereafter		97		1,793,505		81.2	%		31,152,171		17.37		79.3	%
		195		2,209,692		100.0	%	$	39,312,456	$	17.79		100.0	%
Commercial Industrial
2010		1		23,782		0.9	%	$	141,406	$	5.95		1.4	%
2011		15		1,072,579		42.4	%		3,607,688		3.36		36.9	%
2012		5		381,157		15.0	%		1,213,844		3.18		12.4	%
2013		3		214,335		8.5	%		1,073,159		5.01		11.0	%
2014		5		169,396		6.7	%		786,164		4.64		8.0	%
2015 and thereafter		9		671,224		26.5	%		2,968,514		4.42		30.3	%
		38		2,532,473		100.0	%	$	9,790,775	$	3.87		100.0	%
Commercial Retail
2010		27		141,478		12.0	%	$	683,269	$	4.83		7.2	%
2011		51		213,526		18.1	%		2,049,158		9.60		21.5	%
2012		32		235,034		20.0	%		1,344,348		5.72		14.1	%
2013		16		72,561		6.2	%		498,583		6.87		5.2	%
2014		19		64,677		5.5	%		761,785		11.78		8.0	%
2015 and thereafter		35		449,510		38.2	%		4,195,815		9.33		44.0	%
		180		1,176,786		100.0	%	$	9,532,958	$	8.10		100.0	%
Commercial Total
2010		65		391,405		3.8	%	$	3,515,556	$	8.98		3.2	%
2011		158		2,077,795		20.4	%		15,573,612		7.50		13.9	%
2012		128		1,552,847		15.2	%		15,955,319		10.27		14.2	%
2013		72		871,723		8.6	%		9,344,999		10.72		8.3	%
2014		84		915,676		9.0	%		11,584,454		12.65		10.3	%
2015 and thereafter		213		4,389,774		43.0	%		56,141,387		12.79		50.1	%
		720		10,199,220		100.0	%	$	112,115,327	$	10.99		100.0	%

* Annualized Rent is monthly scheduled rent as of October 31, 2009 (cash basis), multiplied by 12.

24

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2010 ACQUISITION SUMMARY

as of October 31, 2009

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			October 31, 2009 Leased Percentage			Acquisition Cost
Clive 2075 NW 94th Street	Clive, IA	Commercial Industrial	August 5, 2009		42,510		100	%		100	%	$	3,350
Minot 2505 16th Street SW	Minot, ND	Commercial Office	October 1, 2009		15,000		93.8	%		93.8	%		2,400
			Total Square Feet		57,510							$	5,750
			Total Units		0

25

Definitions

October 31, 2009

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.

EBITDAis 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 plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Fixed charges consist of mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest.

Ratio of earnings to combined fixed charges and preferred distributions - The ratio of earnings to combined fixed charges and preferred distributions is computed by dividing earnings by combined fixed charges and preferred distributions. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Combined fixed charges and preferred distributions consist of fixed charges (mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest) and preferred distributions.

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

26