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):

September 9, 2010

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 September 9, 2010, regarding financial and operational results for the three months ended July 31, 2010, 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 September 9, 2010, regarding financial and operational results for the three months ended July 31, 2010
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: September 9, 2010

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER ENDED JULY 31, 2010

Minot, ND – September 9, 2010 – Investors Real Estate Trust (tickers: IRET and IRETP; exchange: NASDAQ Global Select Market) reportedfinancial and operating results today for the quarter ended July 31, 2010.

During the three month period ended July 31, 2010, IRET’s revenues increased from the year-earlier period. Funds From Operations (FFO)1 increased for the three month period ended July 31, 2010 compared to the same period of the prior fiscal year, while FFO on a per share and unit basis decreased.  Net income declined from the year-earlier period, primarily attributable to increased vacancy in four of our five segments and in particular our multi-family residential segment and an increase in depreciation expense and real estate expenses in the three month period ended July 31, 2010 compared to the three month period ended July 31, 2009.

For the three month period ended July 31, 2010, as compared to the same period of the prior fiscal year:

• Revenues increased to $62.0 million from $60.8 million.

• FFO increased to $16.8 million on approximately 96,777,000 weighted average shares and units outstanding, from $16.5 million on approximately 83,223,000 weighted average shares and units outstanding ($.17 per share and unit compared to $.20 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $1.4 million for both periods.

Total expenses increased by $2.1 million, or 5.0%, in the three months ended July 31, 2010 compared to the three months ended July 31, 2009, from $41.0 million to $43.1 million.

IRET’s President and Chief Executive Officer, Timothy Mihalick, commented: “Vacancy across all segments in our markets continues to affect our results, with occupancy levels below those in the same quarter in the prior fiscal year in all segments except commercial medical.  However, we have seen improvement in occupancy in the first quarter of fiscal year 2011 compared to the immediately preceding fourth quarter of fiscal year 2010.  Identifying appropriately-priced, accretive acquisitions is still a challenge in our markets, and we continue to expect limited portfolio growth in the current fiscal year.  We do have development and redevelopment projects planned in our core markets, however, that we expect will provide additional revenue potential.  Management also remains focused on expe nse management, operations and debt refinancing, which are providing favorable results to the bottom line.”

______________________________

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 (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.”  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.  Sinc e 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 July 31, 2010, compared to the same period one year ago. NOI from stabilized properties decreased in all of our segments except commercial medical, which increased 0.4%. NOI from all properties increased slightly, by $25,000, during the three month period ended July 31, 2010, compared to the same period one year ago.  NOI from all properties decreased in all of our segments except commercial medical and commercial industrial, which increased 9.8% and 0.7% respectively, due to acquisitions in Fiscal 2011 and 2010.

As of July 31, 2010 compared to July 31, 2009, physical occupancy levels on a stabilized property basis and all property basis decreased in all of our five reportable segments except for commercial medical.

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

	Stabilized Properties(a)		All Properties
	July 31,		July 31,
Segments	2010	2009	2010	2009
Multi-Family Residential	86.6%	89.3%	86.6%	89.2%
Commercial Office	82.2%	85.6%	81.9%	85.2%
Commercial Medical	94.5%	93.8%	95.1%	93.8%
Commercial Industrial	88.9%	91.4%	89.2%	91.4%
Commercial Retail	81.7%	84.8%	81.7%	84.8%

a. For Three Months Ended July 31, 2010, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for July 31, 2010 is 90.6%.

Commercial Office - IRET Corporate Plaza, Minot, ND and Minot 2505 16th St SW, Minot, ND.

Total square footage, 64,876. Occupancy % for July 31, 2010 is 56.3%.

Commercial Medical - Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY; Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY; Billings 2300 Grant Road, Billings, MT and Missoula 3050 Great Northern Avenue, Missoula, MT.

Total square footage, 267,344. Occupancy % for July 31, 2010 is 100.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for July 31, 2010 is 100.0%.

For Three Months ended July 31, 2009, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND.

Total number of units, 42. Occupancy % for July 31, 2009 is 66.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND.

Total square footage, 50,360. Occupancy % for July 31, 2009 is 43.2%.

______________________________

2 We measure the performance of our segments based on NOI, which we define as total real estate revenues less real estate expenses and real estate taxes (excluding depreciation and amortization related to real estate investment and impairment of real estate investments).  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 consolida ted financial statements.

3 Stabilized properties are those properties owned for the entirety of both periods being compared, and which, in the case of development or re-development properties, have achieved a target level of occupancy.

ii

Acquisitions

During the first quarter of fiscal year 2011, on July 15, 2010, the Company acquired two medical office buildings located in, respectively, Billings, Montana and Missoula, Montana, for a total purchase price of approximately $5.2 million, consisting of cash in the amount of approximately $957,000 and the assumption of existing debt with an interest rate of 7.06% and a maturity date of December 31, 2016, in the amount of approximately $4.3 million.  The two medical office buildings were each constructed in 2001, and contain approximately 14,705 square feet and 14,640 square feet of leasable space, respectively.

During the first quarter of fiscal year 2011, the Company completed construction of a single-tenant office/warehouse facility in Fargo, North Dakota.  The cost to construct the facility was approximately $3.9 million, including the cost of the land plus imputed construction interest.  The lease of the facility commenced on July 1, 2010.

During the first quarter of fiscal year 2011, IRET had no 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 $50.0 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. During the first quarter of fiscal year 2011, IRET sold 1.8 million shares under this program.

On July 1, 2010, IRET paid a quarterly distribution of $0.1715 per share and unit on its common shares and limited partnership units of IRET Properties.  This was IRET’s 157th consecutive distribution at equal or increasing rates.  IRET also paid, on June 30, 2010, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

As of July 31, 2010, 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 1st Quarter Earnings is scheduled for Friday, September 10, 2010 at 9:00 A.M. Central Daylight Time.  The call will be limited to one hour, including questions and answers.  Conference call access information is as follows:

USA Toll Free Number: 1-877-317-6789

International Toll Free Number: 1-412-317-6789

Canada Toll Free Number: 1-866-605-3852

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 landerson@iret.com.

iii

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 78 multi-family residential properties with 9,691 apartment units; and 67 commercial office properties, 56 commercial medical properties (including senior housing), 20 commercial industrial properties and 33 commercial retail properties with a total of approximately 12.1 million square feet of leasable space.  IRET’s distributions have been maintained or 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 av ailable 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 2010 Form 10-K.   We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	July 31, 2010			April 30, 2010
ASSETS
Real estate investments
Property owned	$	1,813,427		$	1,800,519
Less accumulated depreciation		(320,994	)		(308,626	)
		1,492,433			1,491,893
Development in progress		174			2,831
Unimproved land		6,020			6,007
Mortgage loans receivable, net of allowance of $3 and $3, respectively		158			158
Total real estate investments		1,498,785			1,500,889
Other assets
Cash and cash equivalents		56,077			54,791
Marketable securities – available-for-sale		420			420
Receivable arising from straight-lining of rents, net of allowance of $934 and $912, respectively		17,751			17,320
Accounts receivable, net of allowance of $395 and $257, respectively		5,911			4,916
Real estate deposits		302			516
Prepaid and other assets		3,032			1,189
Intangible assets, net of accumulated amortization of $41,630 and $39,571, respectively		50,050			50,700
Tax, insurance, and other escrow		10,391			9,301
Property and equipment, net of accumulated depreciation of $1,025 and $924, respectively		1,371			1,392
Goodwill		1,388			1,388
Deferred charges and leasing costs, net of accumulated amortization of $13,305 and $13,131, respectively		18,449			18,108
TOTAL ASSETS	$	1,663,927		$	1,660,930
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	33,340		$	38,514
Revolving lines of credit		6,528			6,550
Mortgages payable		1,063,414			1,057,619
Other		1,272			1,320
TOTAL LIABILITIES		1,104,554			1,104,003
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,427			1,812
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 July 31, 2010 and April 30, 2010, aggregate liquidation preference of $28,750,000)		27,317			27,317
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 78,158,032 shares issued and outstanding at July 31, 2010, and 75,805,159 shares issued and outstanding at April 30, 2010)		603,344			583,618
Accumulated distributions in excess of net income		(213,055	)		(201,412	)
Total Investors Real Estate Trust shareholders’ equity		417,606			409,523
Noncontrolling interests – Operating Partnership (20,272,529 units at July 31, 2010 and 20,521,365 units at April 30, 2010)		130,050			134,970
Noncontrolling interests – consolidated real estate entities		10,290			10,622
Total equity		557,946			555,115
TOTAL LIABILITIES AND EQUITY	$	1,663,927		$	1,660,930

v

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three months ended July 31, 2010 and 2009

	Three Months Ended July 31
	(in thousands, except per share data)
	2010			2009
REVENUE
Real estate rentals	$	50,685		$	49,030
Tenant reimbursement		11,336			11,791
TOTAL REVENUE		62,021			60,821
EXPENSES
Depreciation/amortization related to real estate investments		14,482			14,068
Utilities		4,295			4,167
Maintenance		7,195			7,207
Real estate taxes		8,149			7,971
Insurance		505			973
Property management expenses		5,447			4,098
Administrative expenses		1,757			1,356
Advisory and trustee services		212			131
Other expenses		353			434
Amortization related to non-real estate investments		654			575
TOTAL EXPENSES		43,049			40,980
Interest expense		(16,762	)		(17,401	)
Interest income		58			66
Other income		83			63
Income before income taxes		2,351			2,569
Income tax expense		(19	)		0
NET INCOME		2,332			2,569
Net income attributable to noncontrolling interests – Operating Partnership		(370	)		(479	)
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		24			(73	)
Net income attributable to Investors Real Estate Trust		1,986			2,017
Dividends to preferred shareholders		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,393		$	1,424
NET INCOME PER COMMON SHARE – BASIC AND DILUTED	$	.02		$	.02
DIVIDENDS PER COMMON SHARE	$	.1715		$	.1705

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three months ended July 31, 2010 and 2009

	(in thousands, except per share amounts)
Three Months Ended July 31,	2010									2009
	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		$	1,986								$	2,017
Less dividends to preferred shareholders			(593	)								(593	)
Net (loss) income available to common shareholders			1,393			76,384		$	.02			1,424			62,386		$	.02
Adjustments:
Noncontrolling interest – Operating Partnership			370			20,393						479			20,837
Depreciation and amortization(1)			15,060									14,599
Funds from operations applicable to common shares and Units		$	16,823			96,777		$	.17			16,502			83,223		$	.20

(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 $15,136 and $14,643, less corporate-related depreciation and amortization on office equipment and other assets of $76 and $44, for the three months ended July 31, 2010 and 2009, 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.

vii

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three months ended July 31, 2010 and 2009

	(in thousands)
Three Months Ended July 31, 2010	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	18,953	$	19,893	$	16,315	$	3,443	$	3,417	$	62,021
Real estate expenses			9,304		8,943		5,308		983		1,053		25,591
Net operating income		$	9,649	$	10,950	$	11,007	$	2,460	$	2,364		36,430
Depreciation/amortization													(15,136	)
Administrative, advisory and trustee fees													(1,969	)
Other expenses													(353	)
Interest													(16,762	)
Other income													141
Income tax expense													(19	)
Net income												$	2,332

	(in thousands)
Three Months Ended July 31, 2009	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	19,083	$	21,166	$	13,718	$	3,395	$	3,459	$	60,821
Real estate expenses			9,234		9,447		3,693		951		1,091		24,416
Net operating income		$	9,849	$	11,719	$	10,025	$	2,444	$	2,368		36,405
Depreciation/amortization													(14,643	)
Administrative, advisory and trustee fees													(1,487	)
Other expenses													(434	)
Interest													(17,401	)
Other income													129
Net income												$	2,569

viii

EX-99.2

Exhibit 99.2

First Quarter Fiscal 2011

Supplemental Operating and Financial Data

for the Quarter Ended July 31, 2010

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

Supplemental Financial and Operating Data

Table of Contents

July 31, 2010

	Page
Company Background and Highlights	2
Investment Cost by Segment	5
Key Financial Data
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Funds From Operations	8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)	9
Capital Analysis
Long-Term Mortgage Debt Analysis	10
Long-Term Mortgage Debt Detail	11-12
Capital Analysis	13
Portfolio Analysis
Stabilized Properties Net Operating Income Summary	14
Net Operating Income Detail	15-16
Stabilized Properties and Overall Economic Occupancy Levels by Segment	17
Tenant Analysis
Commercial Leasing Summary	18-19
Multi-Family Residential Summary	20
10 Largest Commercial Tenants - Based on Annualized Base Rent	21
Lease Expirations as of July 31, 2010	22
Growth and Strategy
Fiscal 2011 Acquisition Summary	23
Fiscal 2011 Development Summary	24
Definitions                                                                                                                                             ;	25

1

Company Background and Highlights

First Quarter Fiscal 2011

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

During the first quarter of fiscal year 2011, on July 15, 2010, the Company acquired two medical office buildings located in, respectively, Billings, Montana and Missoula, Montana, for a total purchase price of approximately $5.2 million, consisting of cash in the amount of approximately $957,000 and the assumption of existing debt with an interest rate of 7.06% and a maturity date of December 31, 2016, in the amount of approximately $4.3 million.  The two medical office buildings were each constructed in 2001, and contain approximately 14,705 square feet and 14,640 square feet of leasable space, respectively.

During the first quarter of fiscal year 2011, the Company completed construction of a single-tenant office/warehouse facility in Fargo, North Dakota.  The cost to construct the facility was approximately $3.9 million, including the cost of the land plus imputed construction interest.  The lease of the facility commenced on July 1, 2010. The Company had no dispositions in the first quarter of fiscal year 2011.

IRET continues to pursue its announced goal of transferring the management of the majority of its commercial and multi-family residential properties from third-party property management companies to its own employees. As of July 31, 2010, the Company had under internal management a total of 146 properties in its commercial office, commercial medical, commercial industrial and commercial retail segments, totaling approximately 8.7 million square feet. Approximately 68.7% of the properties in the Company’s commercial office segment, 89.3% of the properties in its commercial medical segment, 90.0% of the properties in its commercial industrial segment, and 97.0% of the properties in its commercial retail segment, were internally managed by Company employees as of July 31, 2010.  IRET continues to evaluate its portfolio of commerci al properties to determine additional suitable candidates for internal management, and to establish appropriate timelines to accomplish the transfers.

The transition to internal management in the Company’s multi-family residential segment also continued during the first quarter of fiscal year 2011. As of July 31, 2010, approximately 84.6% of the properties in the Company’s multi-family residential segment were internally managed by Company employees, or approximately 7,545 units in 66 properties. During fiscal year 2010 and continuing in the first quarter of fiscal year 2011, the Company added a significant number of new employees, many of whom were hired to work in multi-family residential property management.  As of July 31, 2010, the Company had 359 employees, of which 283 were full-time and 76 were part-time employees; of these 359 employees, 55 are corporate staff in our Minot, North Dakot a and Eden Prairie, Minnesota offices, and 304 are property management employees based at our properties or in local property management offices. These additions to staff, and associated investments in equipment, accounting and other support systems, represent a significant expense to the Company, which is reflected in an increase in property management expense attributable to the Company’s internal property management initiative of approximately $362,000 for the three months ended July 31, 2010, primarily in the multi-family residential segment.

On April 7, 2009, IRET and IRET Properties entered into a continuous equity offering program sales agreement with Robert W. Baird & Co. Incorporated (Baird).  Pursuant to the Sales Agreement, IRET may offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $50 million, from time to time through Baird as IRET's sales agent. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET. IRET has no obligation to sell any common shares in the program, and may at any time suspend solicitation and offers under the program or terminate the program. During the first quarter of fiscal year 2011, IRET sold 1.8 million common shares under this program for total proceeds (before offering expenses but after underwriting disco unts and commissions) of $15.0 million.

IRET's first quarter fiscal year 2011 results reflect the continuing challenges the real estate industry faced during the three months ended July 31, 2010, and worsening conditions in IRET's multi-family residential segment in particular.  During this quarter, factors adversely affecting demand for IRET’s commercial and multi-family properties continued to be pervasive across the United States and in IRET’s markets, with commercial tenants continuing to focus on reducing costs through space reductions and lower rents. Additionally, continued job losses pressured occupancy and revenue in the Company’s multi-family residential segment. We expect current credit market conditions and the continued high level of unemployment to maintain or increase credit stresses on Company tenants, and continue to expect this tena nt stress to lead to increases in past due accounts and vacancies.

In the first quarter of fiscal year 2011, IRET paid its 157th consecutive quarterly distribution per common share/unit at equal or increasing rates.  The $0.1715 per share/unit distribution was paid July 1, 2010.  Company management and the Board continue to review the Company’s common share distribution level in conjunction with closely monitoring the Company’s operating results during this prolonged economic downturn.

As of July 31, 2010, IRET owns a diversified portfolio of 254 properties consisting of 78 multi-family residential properties, 67 commercial office properties, 56 commercial medical properties (including senior housing), 20 commercial industrial properties and 33 commercial retail properties.  IRET’s distributions have been maintained or increased every year for 39 consecutive years.  IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).

2

Company Snapshot

(as of July 31, 2010)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential, Commercial Office, Commercial Medical, Commercial Industrial, Commercial Retail
Total Properties	254
Total Square Feet
(commercial properties)	12.1 million
Total Units
(multi-family residential properties)	9,691
Common Shares Outstanding (thousands)	78,158
Limited Partnership Units Outstanding (thousands)	20,273
Common Share Distribution - Quarter/Annualized	$0.1715/$0.686
Dividend Yield	8.1%
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
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Michael A. Bosh	Senior Vice President, General Counsel and Assistant Secretary
Thomas A. Wentz, Sr.	Senior Vice President and Chief Investment Officer

Corporate Headquarters:

3015 16th Street SW, Suite 100

Minot, North Dakota 58701

Trading Symbol:  IRET

Stock Exchange Listing:  NASDAQ

Investor Relations:

Lindsey Knoop Anderson

landerson@iret.com

3

Common Share Data (NASDAQ: IRET)

	1st Quarter Fiscal Year 2011			4th Quarter Fiscal Year 2010			3rd Quarter Fiscal Year 2010			2nd Quarter Fiscal Year 2010			1st Quarter Fiscal Year 2010
High Closing Price	$	9.20		$	9.37		$	9.40		$	9.75		$	9.47
Low Closing Price	$	8.25		$	8.31		$	8.25		$	8.19		$	8.30
Average Closing Price	$	8.71		$	8.89		$	8.82		$	9.06		$	8.73
Closing Price at end of quarter	$	8.47		$	8.73		$	8.73		$	8.37		$	9.31
Common Share Distributions—annualized	$	0.686		$	0.686		$	0.686		$	0.684		$	0.682
Closing Dividend Yield - annualized		8.1	%		7.9	%		7.9	%		8.2	%		7.3	%
Closing common shares outstanding (thousands)		78,158			75,805			73,966			73,502			63,788
Closing limited partnership units outstanding (thousands)		20,273			20,522			20,853			20,962			20,837
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	833,711		$	840,935		$	827,770		$	790,664		$	787,859

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 2010 Form 10-K.
60; We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

First Quarter Fiscal 2011 Acquisitions

Billings 2300 Grant Rd 2300 Grant RD, Billings, MT 59102	Missoula 3050 Great Northern Ave 3050 Great Northern Ave, Missoula, MT 59808

4

Investment Cost by Segment – First Quarter Fiscal 2011

With investments in the multi-family residential and commercial office, commercial medical, commercial industrial and commercial 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)

	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
ASSETS
Real estate investments
Property owned	$	1,813,427		$	1,800,519		$	1,793,995		$	1,749,489		$	1,737,466
Less accumulated depreciation		(320,994	)		(308,626	)		(298,523	)		(286,555	)		(274,497	)
		1,492,433			1,491,893			1,495,472			1,462,934			1,462,969
Development in progress		174			2,831			1,164			0			0
Unimproved land		6,020			6,007			5,987			5,966			5,713
Mortgage loans receivable, net of allowance		158			158			159			159			160
Total real estate investments		1,498,785			1,500,889			1,502,782			1,469,059			1,468,842
Other assets
Cash and cash equivalents		56,077			54,791			47,790			102,732			43,935
Restricted cash		0			0			36,500			0			0
Marketable securities – available-for-sale		420			420			420			420			420
Receivable arising from straight-lining of rents, net of allowance		17,751			17,320			17,102			16,588			16,201
Accounts receivable, net of allowance		5,911			4,916			5,259			4,830			4,148
Real estate deposits		302			516			978			635			460
Prepaid and other assets		3,032			1,189			1,903			2,750			2,900
Intangible assets, net of accumulated amortization		50,050			50,700			52,797			48,118			49,820
Tax, insurance, and other escrow		10,391			9,301			10,044			6,661			7,984
Property and equipment, net of accumulated depreciation		1,371			1,392			1,332			1,450			1,293
Goodwill		1,388			1,388			1,392			1,392			1,392
Deferred charges and leasing costs, net of accumulated amortization		18,449			18,108			17,637			17,273			16,958
TOTAL ASSETS	$	1,663,927		$	1,660,930		$	1,695,936		$	1,671,908		$	1,614,353
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	33,340		$	38,514		$	36,453		$	29,760		$	32,508
Revolving lines of credit		6,528			6,550			6,579			6,594			13,000
Mortgages payable		1,063,414			1,057,619			1,091,945			1,060,131			1,055,705
Other		1,272			1,320			1,368			1,421			1,455
TOTAL LIABILITIES		1,104,554			1,104,003			1,136,345			1,097,906			1,102,668
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,427			1,812			1,765			1,943			1,908
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		603,344			583,618			569,439			566,395			490,441
Accumulated distributions in excess of net income		(213,055	)		(201,412	)		(189,340	)		(176,580	)		(165,349	)
Total Investors Real Estate Trust shareholders’ equity		417,606			409,523			407,416			417,132			352,409
Noncontrolling interests – Operating Partnership		130,050			134,970			139,448			143,260			145,120
Noncontrolling interests – consolidated real estate entities		10,290			10,622			10,962			11,667			12,248
Total equity		557,946			555,115			557,826			572,059			509,777
TOTAL LIABILITIES AND EQUITY	$	1,663,927		$	1,660,930		$	1,695,936		$	1,671,908		$	1,614,353

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Three Months Ended
OPERATING RESULTS	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
Real estate revenue	$	62,021		$	62,228		$	60,130		$	59,596		$	60,821
Real estate expenses		25,591			26,631			26,009			24,485			24,416
Gain on involuntary conversion		0			0			1,660			0			0
Net operating income		36,430			35,597			35,781			35,111			36,405
Depreciation/amortization		(15,136	)		(15,061	)		(15,078	)		(14,981	)		(14,643	)
Administrative expenses, advisory and trustee services		(1,969	)		(1,443	)		(1,790	)		(1,498	)		(1,487	)
Other expenses		(353	)		(1,045	)		(536	)		(498	)		(434	)
Impairment of real estate investment		0			0			(818	)		(860	)		0
Interest		(16,762	)		(17,058	)		(17,447	)		(17,200	)		(17,401	)
Other income		141			394			252			126			129
Gain on sale of other investments		0			68			0			0			0
Income tax expense		(19	)		0			0			0			0
Net income	$	2,332		$	1,452		$	364		$	200		$	2,569
Net (income) loss attributable to noncontrolling interest – Operating Partnership		(370	)		(181	)		39			59			(479	)
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		24			(24	)		49			26			(73	)
Net income attributable to Investors Real Estate Trust		1,986			1,247			452			285			2,017
Dividends to preferred shareholders		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,393		$	654		$	(141	)	$	(308	)	$	1,424
Per Share Data
Net income per common share – basic & diluted	$	.02		$	.01		$	.00		$	.00		$	.02
Percentage of Revenues
Real estate expenses		41.3	%		42.8	%		43.3	%		41.1	%		40.1	%
Depreciation/amortization		24.4	%		24.2	%		25.1	%		25.1	%		24.1	%
General and administrative		3.2	%		2.3	%		3.0	%		2.5	%		2.4	%
Interest		27.0	%		27.4	%		29.0	%		28.9	%		28.6	%
Net income		3.8	%		2.3	%		0.6	%		0.3	%		4.2	%
Ratios
EBITDA(1)/Interest expense		2.04	x		1.95	x		1.88	x		1.88	x		1.98	x
EBITDA/Interest expense plus preferred distributions		1.97	x		1.88	x		1.82	x		1.82	x		1.92	x

(1) See Definitions on page 25.  EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income (loss).

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS(unaudited)

(in thousands, except per share and unit data)

	Three Months Ended
	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	1,986		$	1,247		$	452		$	285		$	2,017
Less dividends to preferred shareholders		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		1,393			654			(141	)		(308	)		1,424
Adjustments:
Noncontrolling interests – Operating Partnership		370			181			(39	)		(59	)		479
Depreciation and amortization		15,060			14,993			14,865			14,926			14,599
Gain on depreciable property sales		0			(68	)		0			0			0
Funds from operations applicable to common shares and Units	$	16,823		$	15,760		$	14,685		$	14,559		$	16,502
FFO per share and unit - basic and diluted	$	0.17		$	0.17		$	0.16		$	0.16		$	0.20
Weighted average shares and units		96,777			94,979		$	94,516		$	87,162		$	83,223

(1) See Definitions on page 25.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Three Months Ended
	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	1,986		$	1,247		$	452		$	285		$	2,017
Adjustments:
Noncontrolling interests – Operating Partnership		370			181			(39	)		(59	)		479
Income before noncontrolling interests – Operating Partnership		2,356			1,428			413			226			2,496
Add:
Interest		16,762			17,058			17,447			17,200			17,401
Depreciation/amortization related to real estate investments		14,482			14,407			14,486			14,432			14,068
Amortization related to non-real estate investments		654			654			592			549			575
Amortization related to real estate revenues(2)		25			26			28			30			34
Less:
Interest income		(58	)		(278	)		(140	)		(62	)		(66	)
Gain on sale of real estate, land and other investments		0			(68	)		0			0			0
EBITDA	$	34,221		$	33,227		$	32,826		$	32,375		$	34,508

(1)   See Definitions on page 25.

(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

	Future Maturities of Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2011	$	72,822	$	3,403	$	76,225		7.50	%		7.2	%
2012		93,841		0		93,841		7.01	%		8.8	%
2013		22,601		0		22,601		5.75	%		2.1	%
2014		46,135		908		47,043		6.16	%		4.4	%
2015		80,052		0		80,052		5.73	%		7.5	%
2016		78,589		193		78,782		5.92	%		7.4	%
2017		191,071		23,296		214,367		6.09	%		20.2	%
2018		88,094		0		88,094		5.80	%		8.3	%
2019		65,586		632		66,218		6.44	%		6.2	%
2020		121,133		0		121,133		5.85	%		11.4	%
Thereafter		175,058		0		175,058		5.87	%		16.5	%
Total maturities	$	1,034,982	$	28,432	$	1,063,414		6.13	%		100.0	%

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

	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
Balances Outstanding
Mortgage
Fixed rate	$	1,034,982		$	1,028,606		$	1,086,264		$	1,054,363		$	1,046,530
Variable rate		28,432			29,013			5,681			5,768			9,175
Mortgage total		1,063,414			1,057,619			1,091,945			1,060,131			1,055,705
Weighted Average Interest Rates
Secured		6.13	%		6.17	%		6.21	%		6.27	%		6.31	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF JULY 31, 2010

Property	Maturity Date	Fiscal 2011		Fiscal 2012		Fiscal 2013		Fiscal 2014		Thereafter		Total(1)
Multi-Family Residential
The Meadows I - Jamestown, ND(6)	8/1/2010	$	887		0	$	0	$	0	$	0	$	887
The Meadows II - Jamestown, ND(6)	8/1/2010		887		0		0		0		0		887
17 South Main Apartments - Minot, ND(2)	11/1/2010		194		0		0		0		0		194
401 South Main Apartments - Minot, ND(2)	11/1/2010		681		0		0		0		0		681
Minot 4th Street Apartments - Minot, ND(2)	11/1/2010		97		0		0		0		0		97
Minot 11th Street Apartments - Minot, ND(2)	11/1/2010		97		0		0		0		0		97
Minot Fairmont Apartments - Minot, ND (2)	11/1/2010		389		0		0		0		0		389
Minot Westridge Apartments - Minot, ND(2)	11/1/2010		1,944		0		0		0		0		1,944
Olympic Village - Billings, MT(4)	11/1/2010		7,496		0		0		0		0		7,496
Southview Apartments - Minot, ND(6)	11/1/2010		707		0		0		0		0		707
Ridge Oaks Apartments - Sioux City, IA	2/1/2011		2,560		0		0		0		0		2,560
Sunset Trail I - Rochester, MN	3/1/2011		3,852		0		0		0		0		3,852
Sunset Trail II - Rochester, MN	3/1/2011		3,730		0		0		0		0		3,730
Oakwood - Sioux Falls, SD	6/1/2011		0		3,391		0		0		0		3,391
Oxbow - Sioux Falls, SD	6/1/2011		0		3,695		0		0		0		3,695
Chateau Apartments - Minot, ND	7/1/2011		0		1,758		0		0		0		1,758
Oakmont Apartments - Sioux Falls, SD	9/1/2011		0		3,656		0		0		0		3,656
Canyon Lake Apartments - Rapid City, SD	10/1/2011		0		2,635		0		0		0		2,635
The Meadows III - Jamestown, ND	11/1/2011		0		965		0		0		0		965
Crown Apartments - Rochester, MN	1/1/2012		0		2,555		0		0		0		2,555
Monticello Apartments - Monticello, MN	3/1/2013		0		0		3,070		0		0		3,070
Quarry Ridge Apartments - Rochester, MN	10/1/2013		0		0		0		12,323		0		12,323
East Park Apartments - Sioux Falls, SD	12/1/2013		0		0		0		1,554		0		1,554
Sycamore Village Apartments - Sioux Falls, SD	12/1/2013		0		0		0		874		0		874
Landmark Estates Apartments - Grand Forks, ND(7)	12/19/2013		0		0		0		1,572		0		1,572
Candlelight Apartments - Fargo, ND	3/1/2014		0		0		0		1,345		0		1,345
Summary of Debt due after Fiscal 2014			0		0		0		0		266,916		266,916
Sub-Total Multi-Family Residential		$	23,521	$	18,655	$	3,070	$	17,668	$	266,916	$	329,830
Commercial Office
Brenwood - Minnetonka, MN(3)	10/1/2010	$	7,349	$	0	$	0	$	0	$	0	$	7,349
Nicollet VII - Burnsville, MN(3)	12/1/2010		3,936		0		0		0		0		3,936
Dewey Hill Business Center - Edina, MN(3)	1/1/2011		2,562		0		0		0		0		2,562
Plymouth IV - Plymouth, MN(3)	1/1/2011		3,144		0		0		0		0		3,144
Plymouth V - Plymouth, MN(3)	1/1/2011		4,525		0		0		0		0		4,525
Whitewater Plaza - Minnetonka, MN	3/1/2011		2,635		0		0		0		0		2,635
Whitewater Plaza - Minnetonka, MN	3/1/2011		1,366		0		0		0		0		1,366
2030 Cliff Road - Eagan, MN	4/1/2011		462		0		0		0		0		462
Cold Spring Center - St. Cloud, MN(8)	4/1/2011		3,987		0		0		0		0		3,987
Pillsbury Business Center - Edina, MN	4/1/2011		895		0		0		0		0		895
Golden Hills Office Center - Golden Valley, MN	7/1/2011		0		14,296		0		0		0		14,296
Wells Fargo Center - St Cloud, MN	7/1/2011		0		6,553		0		0		0		6,553
Interlachen Corporate Center - Eagan, MN	10/11/2011		0		9,513		0		0		0		9,513
Bloomington Business Plaza - Bloomington, MN	12/1/2011		0		4,137		0		0		0		4,137
Wirth Corporate Center - Golden Valley, MN	2/1/2012		0		3,964		0		0		0		3,964
Great Plains - Fargo, ND	10/1/2013		0		0		0		3,982		0		3,982
Viromed - Eden Prairie, MN	4/1/2014		0		0		0		1,106		0		1,106
Summary of Debt due after Fiscal 2014			0		0		0		0		281,388		281,388
Sub-Total Commercial Office		$	30,861	$	38,463	$	0	$	5,088	$	281,388	$	355,800

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF JULY 31, 2010 (continued)

Property	Maturity Date	Fiscal 2011		Fiscal 2012		Fiscal 2013		Fiscal 2014		Thereafter		Total(1)
Commercial Medical
Edina 6545 France SMC I - Edina, MN(3)	1/1/2011	$	21,533	$	0	$	0	$	0	$	0	$	21,533
Edina 6525 France SMC II - Edina, MN(3)	6/1/2011		0		9,699		0		0		0		9,699
Edina 6405 France Medical - Edina, MN(5)	1/1/2012		0		9,066		0		0		0		9,066
Edina 6363 France Medical - Edina, MN(6)	4/1/2012		0		7,919		0		0		0		7,919
Fox River Cottages - Grand Chute, WI	5/1/2012		0		0		2,255		0		0		2,255
High Pointe Health Campus - Lake Elmo, MN	12/1/2013		0		0		0		2,779		0		2,779
Summary of Debt due after Fiscal 2014			0		0		0		0		205,445		205,445
Sub-Total Commercial Medical		$	21,533	$	26,684	$	2,255	$	2,779	$	205,445	$	258,696
Commercial Industrial
Eagan 2785 & 2795 Highway 55 - Eagan, MN	6/1/2011	$	0	$	3,683	$	0	$	0	$	0	$	3,683
Stone Container - Roseville, MN	2/1/2012		0		3,911		0		0		0		3,911
Minnetonka 13600 County Road 62 - Minnetonka, MN	2/27/2012		0		2,445		0		0		0		2,445
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013		0		0		7,486		0		0		7,486
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		0		0		3,963		0		0		3,963
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		0		0		5,827		0		0		5,827
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		0		0		1,235		0		1,235
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		0		0		2,427		0		2,427
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		0		0		2,855		0		2,855
Summary of Debt due after Fiscal 2014			0		0		0		0		30,184		30,184
Sub-Total Commercial Industrial		$	0	$	10,039	$	17,276	$	6,517	$	30,184	$	64,016
Commercial Retail
Kentwood Thomasville Furniture - Kentwood, MI	2/1/2011	$	310	$	0	$	0	$	0	$	0	$	310
Burnsville I Strip Center - Burnsville, MN	6/30/2013		0		0		0		506		0		506
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		0		0		403		0		403
St Cloud Westgate - St Cloud, MN	10/10/2013		0		0		0		3,497		0		3,497
Ladysmith Pamida - Ladysmith, WI(9)	12/19/2013		0		0		0		1,035		0		1,035
Livingston Pamida - Livingston, MT	12/19/2013		0		0		0		1,230		0		1,230
Eagan I Retail Center - Eagan, MN	12/22/2013		0		0		0		1,439		0		1,439
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		0		0		4,602		0		4,602
Pine City C-Store  - Pine City, MN	4/20/2014		0		0		0		319		0		319
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		0		1,960		0		1,960
Summary of Debt due after Fiscal 2014			0		0		0		0		39,771		39,771
Sub-Total Commercial Retail		$	310	$	0	$	0	$	14,991	$	39,771	$	55,072
Total		$	76,225	$	93,841	$	22,601	$	47,043	$	823,704	$	1,063,414

(1) Totals are principal balances as of July 31, 2010.

(2) These properties currently secure the mortgage portion of the Company’s Dacotah Bank line of credit, which the Company plans to pay off in its entirety on September 14, 2010.

(3) Currently in discussion with lenders for refinance.

(4) Application signed on July 1, 2010 to refinance on November 1, 2010.

(5) Refinanced on August 2, 2010; new loan has a maturity date of September 1, 2015.

(6) Mortgage loan paid in full on August 2, 2010. Property is now part of collateral securing the Company’s multi-property line of credit with First International Bank & Trust.

(7) Refinanced on August 24, 2010.

(8) Application signed on August 31, 2010 to refinance on January 1, 2011.

(9) Mortgage loan paid in full on September 1, 2010.

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	07/31/2010		04/30/2010		01/31/2010		10/31/2009		07/31/2009
Equity Capitalization
Common shares outstanding		78,158		75,805		73,966		73,502		63,788
Operating partnership (OP) units outstanding		20,273		20,522		20,853		20,962		20,837
Total common shares and OP units outstanding		98,431		96,327		94,819		94,464		84,625
Market price per common share (closing price at end of period)	$	8.47	$	8.73	$	8.73	$	8.37	$	9.31
Equity capitalization-common shares and OP units	$	833,711	$	840,935	$	827,770	$	790,664	$	787,859
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	861,028	$	868,252	$	855,087	$	817,981	$	815,176
Debt Capitalization
Total mortgage debt	$	1,063,414	$	1,057,619	$	1,091,945	$	1,060,131	$	1,055,705
Total capitalization	$	1,924,442	$	1,925,871	$	1,947,032	$	1,878,112	$	1,870,881
Total debt to total capitalization	0.55:1		0.55:1		0.56:1		0.56:1		0.56:1

	Three Months Ended
	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
Earnings to fixed charges(1)		1.12	x		1.07	x		1.03	x		1.02	x		1.11	x
Earnings to combined fixed charges and preferred distributions(1)		1.08	x		1.04	x		0.99	x		0.98	x		1.08	x
Debt service coverage ratio(1)		1.44	x		1.39	x		1.36	x		1.36	x		1.39	x
Distribution Data
Common shares and units outstanding at record date		96,506			94,844			94,497			84,818			84,280
Total common distribution paid	$	16,551		$	16,267		$	16,205		$	14,504		$	14,370
Common distribution per share and unit	$	.1715		$	.1715		$	.1715		$	.1710		$	.1705
Payout ratio (FFO per share and unit basis)(1)		100.9	%		100.9	%		107.2	%		106.9	%		85.3	%

(1)   See Definitions on page 25.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)
	Three Months Ended July 31,
Segment	2010		2009		% Change
Multi-Family Residential	$	9,594	$	9,844		(2.5	%)
Commercial Office		10,944		11,763		(7.0	%)
Commercial Medical		10,065		10,025		0.4	%
Commercial Industrial		2,359		2,444		(3.5	%)
Commercial Retail		2,364		2,368		(0.2	%)
	$	35,326	$	36,444		(3.1	%)

(1) For Three Months Ended July 31, 2010, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for July 31, 2010 is 90.6%.

Commercial Office - IRET Corporate Plaza, Minot, ND and Minot 2505 16th St SW, Minot, ND.

Total square footage, 64,876. Occupancy % for July 31, 2010 is 56.3%.

Commercial Medical - Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY; Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY; Billings 2300 Grant Road, Billings, MT and Missoula 3050 Great Northern Avenue, Missoula, MT.

Total square footage, 267,344. Occupancy % for July 31, 2010 is 100.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for July 31, 2010 is 100.0%.

For Three Months ended July 31, 2009, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND.

Total number of units, 42. Occupancy % for July 31, 2009 is 66.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND.

Total square footage, 50,360. Occupancy % for July 31, 2009 is 43.2%.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 31, 2010
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	18,835		$	19,838		$	13,583		$	3,316		$	3,417		$	0		$	58,989
Non-Stabilized		118			55			2,732			127			0			0			3,032
Total		18,953			19,893			16,315			3,443			3,417			0			62,021
Real estate expenses
Stabilized(1)		9,241			8,894			3,518			957			1,053			0			23,663
Non-Stabilized		63			49			1,790			26			0			0			1,928
Total		9,304			8,943			5,308			983			1,053			0			25,591
Stabilized(1)		9,594			10,944			10,065			2,359			2,364			0			35,326
Non-Stabilized		55			6			942			101			0			0			1,104
Net operating income	$	9,649		$	10,950		$	11,007		$	2,460		$	2,364		$	0		$	36,430
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,903	)	$	(5,572	)	$	(3,900	)	$	(922	)	$	(743	)	$	(96	)	$	(15,136	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,969	)		(1,969	)
Other expenses		0			0			0			0			0			(353	)		(353	)
Interest expense		(4,950	)		(5,571	)		(4,314	)		(1,019	)		(833	)		(75	)		(16,762	)
Other income		0			0			0			0			0			141			141
Income tax expense		0			0			(19	)		0			0			0			(19	)
Net income (loss)		796			(193	)		2,774			519			788			(2,352	)		2,332
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(370	)		(370	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			24			24
Net income (loss) attributable to Investors Real Estate Trust		796			(193	)		2,774			519			788			(2,698	)		1,986
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	796			(193	)		2,774			519			788			(3,291	)		1,393

(1) For Three Months Ended July 31, 2010, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND; Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for July 31, 2010 is 90.6%.

Commercial Office - IRET Corporate Plaza, Minot, ND and Minot 2505 16th St SW, Minot, ND.

Total square footage, 64,876. Occupancy % for July 31, 2010 is 56.3%.

Commercial Medical - Casper 1930 E 12th Street (Park Place), Casper, WY; Casper 3955 E 12th Street (Meadow Wind), Casper, WY; Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne, WY; Cheyenne 4060 N College Drive (Sierra Hills), Cheyenne, WY; Laramie 1072 N 22nd Street (Spring Wind), Laramie, WY; Billings 2300 Grant Road, Billings, MT and Missoula 3050 Great Northern Avenue, Missoula, MT.

Total square footage, 267,344. Occupancy % for July 31, 2010 is 100.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA and Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 84,754. Occupancy % for July 31, 2010 is 100.0%.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 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)	$	19,054		$	21,165		$	13,718		$	3,395		$	3,459		$	0		$	60,791
Non-Stabilized		29			1			0			0			0			0			30
Total		19,083			21,166			13,718			3,395			3,459			0			60,821
Real estate expenses
Stabilized(1)		9,210			9,402			3,693			951			1,091			0			24,347
Non-Stabilized		24			45			0			0			0			0			69
Total		9,234			9,447			3,693			951			1,091			0			24,416
Net Operating Income (NOI)
Stabilized(1)		9,844			11,763			10,025			2,444			2,368			0			36,444
Non-Stabilized		5			(44	)		0			0			0			0			(39	)
Net operating income	$	9,849		$	11,719		$	10,025		$	2,444		$	2,368		$	0		$	36,405
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,711	)	$	(5,684	)	$	(3,547	)	$	(922	)	$	(705	)	$	(74	)	$	(14,643	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,487	)		(1,487	)
Other expenses		0			0			0			0			0			(434	)		(434	)
Interest expense		(5,043	)		(5,895	)		(4,380	)		(1,004	)		(967	)		(112	)		(17,401	)
Other income		0			0			0			0			0			129			129
Net income (loss)		1,095			140			2,098			518			696			(1,978	)		2,569
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(479	)		(479	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(73	)		(73	)
Net income (loss) attributable to Investors Real Estate Trust		1,095		$	140		$	2,098		$	518		$	696		$	(2,530	)	$	2,017
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,095		$	140		$	2,098		$	518		$	696		$	(3,123	)	$	1,424

(1) For Three Months ended July 31, 2009, stabilized properties excluded:

Multi-Family Residential - Sweetwater Community, Grafton, ND.

Total number of units, 42. Occupancy % for July 31, 2009 is 66.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND.

Total square footage, 50,360. Occupancy % for July 31, 2009 is 43.2%.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

1st Quarter Fiscal 2011 vs. 1st Quarter Fiscal 2010

Segments	Stabilized Properties		All Properties
	1st Quarter	1st Quarter	1st Quarter	1st Quarter
	Fiscal 2011	Fiscal 2010	Fiscal 2011	Fiscal 2010
Multi-Family Residential	86.6%	89.3%	86.6%	89.2%
Commercial Office	82.2%	85.6%	81.9%	85.2%
Commercial Medical	94.5%	93.8%	95.1%	93.8%
Commercial Industrial	88.9%	91.4%	89.2%	91.4%
Commercial Retail	81.7%	84.8%	81.7%	84.8%

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three months ended July 31, 2010

	Three Months Ended July 31, 2010
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		80,461		128,733		209,194		108,534		100,660
Commercial Medical		0		1,309		1,309		9,152		(7,843	)
Commercial Industrial		98,369		162,747		261,116		111,600		149,516
Commercial Retail		15,698		7,964		23,662		84,373		(60,711	)
Total All Segments		194,528		300,753		495,281		313,659		181,622
Weighted Average Rental Rates(3)
Commercial Office	$	9.48	$	10.25	$	9.95	$	14.35	$	(4.40	)		(30.7	%)
Commercial Medical		0.00		21.50		21.50		19.14		2.36			12.3	%
Commercial Industrial		7.18		2.53		4.28		3.25		1.03			31.7	%
Commercial Retail		14.12		8.61		12.27		10.21		2.06			20.2	%
Total All Segments	$	8.69	$	6.08	$	7.10	$	9.43	$	(2.33	)		(24.7	%)

	Three Months Ended July 31, 2010
	New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased
Commercial Office		6.3		3.6		4.3
Commercial Medical		0.0		5.0		5.0
Commercial Industrial		2.7		2.3		2.5
Commercial Retail		3.4		2.3		2.8
Total All Segments		4.1		3.1		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.

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three months ended July 31, 2010

	1st Quarter Fiscal 2011 Total
	New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	42,174	$	9,599	$	51,773
Commercial Medical		0		0		0
Commercial Industrial		63,400		0		63,400
Commercial Retail		15,000		0		15,000
Subtotal	$	120,574	$	9,599	$	130,173
Tenant Improvements per square foot
Commercial Office	$	0.52	$	0.07	$	0.25
Commercial Medical		0.00		0.00		0.00
Commercial Industrial		0.64		0.00		0.24
Commercial Retail		0.96		0.00		0.63
All Segments	$	0.62	$	0.03	$	0.26
Leasing Costs
Commercial Office	$	1,047,137	$	438,255	$	1,485,392
Commercial Medical		0		3,272		3,272
Commercial Industrial		52,989		9,347		62,336
Commercial Retail		51,922		11,785		63,707
Subtotal	$	1,152,048	$	462,659	$	1,614,707
Leasing Costs per square foot
Commercial Office	$	13.01	$	3.40	$	7.10
Commercial Medical		0.00		2.50		2.50
Commercial Industrial		0.54		0.06		0.24
Commercial Retail		3.31		1.48		2.69
All Segments	$	5.92	$	1.54	$	3.26
Tenant Improvements and Leasing Costs
Commercial Office	$	1,089,311		447,854		1,537,165
Commercial Medical		0		3,272		3,272
Commercial Industrial		116,389		9,347		125,736
Commercial Retail		66,922		11,785		78,707
Total	$	1,272,622	$	472,258	$	1,744,880
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	13.54	$	3.48	$	7.35
Commercial Medical		0.00		2.50		2.50
Commercial Industrial		1.18		0.06		0.48
Commercial Retail		4.26		1.48		3.33
All Segments	$	6.54	$	1.57	$	3.52

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	07/31/2010			04/30/2010			01/31/2010			10/31/2009			07/31/2009
Number of Units		9,691			9,669			9,669			9,645			9,645
Average Investment Per Unit
Stabilized	$	57,594		$	57,352		$	56,938		$	56,599		$	56,445
Non-Stabilized		66,736			49,402			23,002			22,789			22,709
	$	57,655		$	57,323		$	56,790		$	56,452		$	56,298
Average Scheduled Rent per Unit
Stabilized	$	721		$	720		$	718		$	715		$	713
Non-Stabilized		758			854			324			323			322
	$	721		$	721		$	717		$	714		$	711
Total Receipts per Unit
Stabilized	$	652		$	656		$	659		$	666		$	661
Non-Stabilized		618			706			279			268			231
	$	652		$	657		$	657		$	664		$	660
Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	124		$	115		$	97		$	178		$	117
Non-Stabilized		0			8			148			133			37
	$	123		$	114		$	97		$	178		$	117
Physical Occupancy%
Stabilized		86.6	%		90.1	%		90.0	%		91.2	%		89.3	%
Non-Stabilized		90.6	%		95.3	%		61.9	%		81.0	%		66.7	%
		86.6	%		90.2	%		89.8	%		91.2	%		89.2	%
Operating Expenses as a % of Scheduled Rent
Stabilized		44.4	%		45.5	%		47.4	%		44.1	%		44.8	%
Non-Stabilized		43.8	%		26.7	%		74.3	%		73.9	%		61.3	%
Total		44.4	%		45.4	%		47.4	%		44.1	%		44.9	%

(1) See Definitions on page 25.

20

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of July 31, 2010

Tenant	Number of Properties	Average Remaining Lease Term in Months	% of Total Commercial Segments’ Minimum Rents	Aggregate Rentable Square Feet	% of Aggregate Occupied Square Feet
Affiliates of Edgewood Vista	19	223	10.0%	909,591	8.7%
St. Lukes Hospital of Duluth, Inc.	6	66	3.5%	198,775	1.9%
Fairview Health	9	56	2.6%	184,040	1.8%
Applied Underwriters	3	79	2.2%	141,724	1.3%
Best Buy Co., Inc. (NYSE: BBY)	2	28	1.9%	224,650	2.1%
HealthEast Care System	1	103	1.7%	114,316	1.1%
USG Corp.	1	13	1.6%	122,567	1.2%
Smurfit - Stone Container (NASDAQ: SSCC)	2	45	1.5%	424,147	4.0%
Microsoft (NASDAQ: MSFT)	1	37	1.5%	122,040	1.2%
Nebraska Orthopedic Hospital	1	224	1.3%	61,758	0.6%
Total/Weighted Average		199	27.8%	2,503,608	23.9%

(1) See Definitions on page 25.

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of July 31, 2010

Fiscal Year	Number of Leases		Rentable Square Feet			% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Rent
Commercial Office
2011		48		455,649	(1)		11.3	%	$	5,631,520	$	12.36		10.1	%
2012		57		737,121			18.3	%		9,654,329		13.10		17.3	%
2013		43		576,655			14.4	%		7,846,623		13.61		14.1	%
2014		43		612,454			15.2	%		8,284,525		13.53		14.9	%
2015		40		363,862			9.1	%		4,977,988		13.68		8.9	%
2016 and thereafter		46		1,272,732			31.7	%		19,379,102		15.23		34.7	%
		277		4,018,473			100.0	%	$	55,774,087	$	13.88		100.0	%
Commercial Medical
2011		12		53,751			2.2	%	$	968,168	$	18.01		2.1	%
2012		30		102,335			4.2	%		2,099,800		20.52		4.6	%
2013		20		109,006			4.4	%		2,271,673		20.84		5.0	%
2014		29		384,514			15.7	%		6,537,905		17.00		14.3	%
2015		12		55,384			2.3	%		1,193,590		21.55		2.6	%
2016 and thereafter		84		1,741,924			71.2	%		32,607,910		18.72		71.4	%
		187		2,446,914			100.0	%	$	45,679,046	$	18.67		100.0	%
Commercial Industrial
2011		10		786,588			31.4	%	$	2,486,988	$	3.16		23.7	%
2012		6		493,757			19.7	%		1,528,764		3.10		14.6	%
2013		2		142,185			5.7	%		686,618		4.83		6.5	%
2014		7		239,155			9.5	%		1,043,545		4.36		10.0	%
2015		2		76,685			3.1	%		347,781		4.54		3.3	%
2016 and thereafter		10		767,628			30.6	%		4,401,102		5.73		41.9	%
		37		2,505,998			100.0	%	$	10,494,798	$	4.19		100.0	%
Commercial Retail
2011		29		122,757			10.8	%	$	956,567	$	7.79		10.1	%
2012		37		295,887			25.9	%		1,592,339		5.38		16.7	%
2013		26		85,503			7.5	%		671,715		7.86		7.1	%
2014		23		73,938			6.5	%		917,359		12.41		9.6	%
2015		26		237,758			20.9	%		1,861,524		7.83		19.6	%
2016 and thereafter		26		324,388			28.4	%		3,512,480		10.83		36.9	%
		167		1,140,231			100.0	%	$	9,511,984	$	8.34		100.0	%
Commercial Total
2011		99		1,418,745			14.0	%	$	10,043,243	$	7.08		8.3	%
2012		130		1,629,100			16.1	%		14,875,232		9.13		12.2	%
2013		91		913,349			9.0	%		11,476,629		12.57		9.5	%
2014		102		1,310,061			13.0	%		16,783,334		12.81		13.8	%
2015		80		733,689			7.3	%		8,380,883		11.42		6.9	%
2016 and thereafter		166		4,106,672			40.6	%		59,900,594		14.59		49.3	%
		668		10,111,616			100.0	%	$	121,459,915	$	12.01		100.0	%

* Annualized Rent is monthly scheduled rent as of July 31, 2010 (cash basis), multiplied by 12.

(1) Includes the expiration of the Best Buy master lease at IRET’s Crosstown Centre office building.

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 ACQUISITION SUMMARY

as of July 31, 2010

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			July 31, 2010 Leased Percentage			Acquisition Cost
Fargo 1320 45th Street N(1)	Fargo, ND	Commercial Industrial	June 22, 2010		42,244		100.0	%		100.0	%	$	1,616
Billings 2300 Grant Road	Billings, MT	Commercial Medical	July 15, 2010		14,705		100.0	%		100.0	%		2,522
Missoula 3050 Great Northern Ave	Missoula, MT	Commercial Medical	July 15, 2010		14,640		100.0	%		100.0	%		2,723
			Total Square Feet		71,589							$	6,861
			Total Units		0

(1)   Development property placed in service June 22, 2010.  Additional costs incurred in fiscal year 2010 totaled $2.3 million for a total project cost at July 31, 2010 of $3.9 million.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 DEVELOPMENT SUMMARY

as of July 31, 2010

($’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
Edgewood Vista - Spearfish, SD	23,965 sf. expansion		100	%	$	2,600	$	173	3rd Quarter Fiscal 2011
1st Avenue Building - Minot, ND	Convert 15,446 sf. commercial office to 24 multi-family residential units		0	%		2,000		0	1st Quarter Fiscal 2012
		Total			$	4,600	$	173

24

Definitions

July 31, 2010

Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.

Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.

Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.

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; however, EBIDTA as we calculate it has not been adjusted for the effect of nonrecurring events such as asset impairment and gain/loss on involuntary conversion.  EBITDA is a non-GAAP measure. EBITDA as calculated by us is not comparable to EBITDA reported by other REITs that do not define EBITDA exactly as we do.

Funds from operations (FFO) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as “net income (computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.” 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 amortiza tion, 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.

Net Operating Income is total real estate revenues less real estate expenses and real estate taxes (excluding depreciation and amortization related to real estate investment and impairment of real estate investments).

Payout ratio (FFO per share and unit basis) - The ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual FFO per share and unit.

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

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

Recurring capital expenditures are costs that increase the value and extend the useful life of a property.  Ordinary repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred.  Costs incurred on a lease turnover due to normal wear and tear by the resident are expensed on the turn.  Recurring capital improvements typically include appliances, carpeting and flooring, and kitchen/bath cabinets.

Stabilized properties are those properties owned for the entirety of both periods being compared, and, in the case of development or re-development properties, which have achieved a target level of occupancy.

25