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):

March 14, 2011

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 March 14, 2011, regarding financial and operational results for the three and nine months ended January 31, 2011, 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 March 14, 2011, regarding financial and operational results for the three and nine months ended January 31, 2011
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: March 14, 2011

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 JANUARY 31, 2011

Minot, ND – March 14, 2011 – 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 January 31, 2011.

During the three month period ended January 31, 2011, IRET’s revenues increased from the year-earlier period. Funds From Operations (FFO)1 overall and on a per share and unit basis decreased for the three month period ended January 31, 2011 compared to the same period of the prior fiscal year.  Net income increased from the year-earlier period, primarily due to a gain on sale of discontinued operations in the three month period ended January 31, 2011 compared to the three month period ended January 31, 2010.

For the three month period ended January 31, 2011, as compared to the same period of the prior fiscal year:

• Revenues increased to $60.2 million from $57.3 million.

• FFO decreased to $14.6 million on approximately 99,355,000 weighted average shares and units outstanding, from $14.7 million on approximately 94,516,000 weighted average shares and units outstanding ($.14 per share and unit compared to $.16 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $11.2 million compared to a $141,000 net loss.

• Total expenses increased by $2.4 million, or 5.8%, in the three months ended January 31, 2011 compared to the three months ended January 31, 2010, from $41.5 million to $43.9million.

During the nine month period ended January 31, 2011, IRET’s revenues increased from the year-earlier period. Funds From Operations (FFO)1 increased for the nine month period ended January 31, 2011 compared to the same period of the prior fiscal year, while FFO on a per share and unit basis decreased.  Net income increased from the year-earlier period, primarily due to a gain on sale of discontinued operations in the nine month period ended January 31, 2011 compared to the nine month period ended January 31, 2010.

For the nine month period ended January 31, 2011, as compared to the same period of the prior fiscal year:

• Revenues increased to $178.3 million from $172.1 million.

• FFO increased to $47.5 million on approximately 98,311,000 weighted average shares and units outstanding, from $45.7 million on approximately 88,284,000 weighted average shares and units outstanding ($.48 per share and unit compared to $.52 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $17.9 million compared to $975,000.

• Total expenses increased by $5.3 million, or 4.4%, in the nine months ended January 31, 2011 compared to the nine months ended January 31, 2010, from $120.8 million to $126.1 million.

IRET’s President and Chief Executive Officer, Timothy Mihalick, commented: “Vacancy levels in our commercial office and industrial segments continue to reflect the economic conditions in our markets and affect our results, as recovery from the national recession remains slow and as we continue to see caution on the part of office and industrial tenants regarding expanding leased space or entering into new leases. However, we continued to see improvement in occupancy in our multi-family residential and medical segments in the third quarter of fiscal year 2011 compared to the immediately preceding quarter and compared also to the third quarter of the previous fiscal year.  Additionally, we completed several portfolio acquisitions and a development project in the third quarter of fiscal year 2011, and we have underway a number of development, expansion and renovation projects that we expect to provide additional revenue potential. We continue to remain focused on expense management, operations, and debt refinancing.”

______________________________

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.  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 7.2%, or $2.4 million, during the three month period ended January 31, 2011, compared to the same period one year ago. NOI from stabilized properties decreased in three of our five segments except commercial medical and commercial retail, which increased 4.1% and 2.1%, respectively. NOI from all properties decreased, by $1.1 million, during the three month period ended January 31, 2011, compared to the same period one year ago. NOI from all properties increased in all of our segments except commercial office, which decreased 11.2% due to increased vacancy and concessions in that segment, and multi-family residential, which decreased 14.8 % in comparison to multi-family residential NOI for the three months ended January 31, 2010, primarily due to the effect of a $1.7 million gain on sale of conversion included in NOI for the third quarter of fiscal year 2010 (insurance proceeds received as a result of a fire loss at one of our multi-family apartment properties).

NOI from stabilized properties decreased approximately 3.6% or $3.7 million during the nine month period ended January 31, 2011, compared to the same period one year ago. NOI from stabilized properties decreased in three of our five segments except commercial medical and commercial retail, which increased 4.1% and 3.5%, respectively. NOI from all properties decreased by $223,000 during the nine month period ended January 31, 2011, compared to the same period one year ago. NOI from all properties increased in all of our segments except commercial office, which decreased 7.1 % due to increased vacancy and concessions, and multi-family residential, which decreased 8.2% in comparison to multi-family residential NOI for the nine months ended January 31, 2010, primarily due to the effect of the $1.7 million gain on sale of conversion included in NOI for the third quarter of fiscal year 2010.

As of January 31, 2011 compared to January 31, 2010, physical occupancy levels on a stabilized property basis increased in two of our five reportable segments and on all property basis increased in three of our five reportable segments.

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

	Stabilized Properties(a)		All Properties
	As of January 31,		As of Ended January 31,
Segments	Fiscal 2011	Fiscal 2010	Fiscal 2011	Fiscal 2010
Multi-Family Residential	91.2%	89.6%	91.1%	89.6%
Commercial Office	79.6%	84.3%	80.1%	83.7%
Commercial Medical	95.4%	95.8%	96.0%	95.2%
Commercial Industrial	81.1%	86.1%	81.7%	86.3%
Commercial Retail	82.4%	81.9%	82.5%	81.9%

a. As of January 31, 2011, stabilized properties excluded:

Multi-Family Residential - Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for January 31, 2011 is 79.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for January 31, 2011 is 99.4%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND.

Total square footage, 375,847. Occupancy % for January 31, 2011 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 January 31, 2011 is 100.0%.

Commercial Retail - Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for January 31, 2010 is 84.0%.

As of January 31, 2010, stabilized properties excluded:

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,322. Occupancy % for January 31, 2010 is 50.7%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Fox River Cottages, Grand Chute, WI.

Total square footage, 264,335. Occupancy % for January 31, 2011 is 90.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for January 31, 2010 is 100.0%.

______________________________

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

3 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 and Dispositions

During the third quarter of fiscal year 2011, the Company acquired three properties: on November 10, 2010, the Company acquired the approximately 108,503 square foot Edgewood Vista assisted living facility in Minot, North Dakota, for approximately $15.2 million, consisting of cash of approximately $9.6 million ($7.4 million of which was paid to the current tenant in the property to acquire the option to purchase the property) and the assumption of existing debt of approximately $5.6 million; on December 10, 2010, the Company acquired an approximately 47,709 square foot retail/office property in Minot, North Dakota, for a purchase price, paid in cash, of $8.3 million; and on December 16, 2010, the Company acquired an approximately 58,574 square foot office property in Omaha, Nebraska, for a purchase price of approximately $8.3 million, of which approximately $5.3 million was paid in cash, with the remainder paid in limited partnership units of the Company’s Operating Partnership valued at a total of $3.0 million.  During the third quarter of fiscal year 2011, the Company substantially completed construction of an approximately 24,000 square foot expansion to its existing Edgewood Vista senior housing facility in Spearfish, South Dakota.  The cost to construct the addition was approximately $2.7 million, of which $2.3 million has been paid as of January 31, 2011.

During the third quarter of fiscal year 2011, the Company sold a small industrial property in Waconia, Minnesota, on November 1, 2010, and three multi-family residential properties in Colorado, the Pinecone and Miramont Apartments in Fort Collins, Colorado and the Neighborhood Apartments in Colorado Springs, Colorado, on November 15, 2010, for a total sales price of $46.6 million.

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. During the third quarter of fiscal year 2011, IRET sold no shares under this program.

On January 14, 2011, 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 159th consecutive distribution at equal or increasing rates.  IRET also paid, on December 30, 2010, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

As of January 31, 2011, 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 3rd Quarter Earnings is scheduled for Tuesday, March 15, 2011 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.

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 74 multi-family residential properties with 8,593 apartment units; and 68 commercial office properties, 56 commercial medical properties (including senior housing), 19 commercial industrial properties and 33 commercial retail properties with a total of approximately 12.2 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 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 2010 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)
	January 31, 2011			April 30, 2010
ASSETS
Real estate investments
Property owned	$	1,763,585		$	1,800,519
Less accumulated depreciation		(319,235	)		(308,626	)
		1,444,350			1,491,893
Development in progress		4,231			2,831
Unimproved land		7,470			6,007
Mortgage loans receivable, net of allowance of $3 and $3, respectively		157			158
Total real estate investments		1,456,208			1,500,889
Other assets
Cash and cash equivalents		30,907			54,791
Marketable securities – available-for-sale		325			420
Receivable arising from straight-lining of rents, net of allowance of $982 and $912, respectively		18,656			17,320
Accounts receivable, net of allowance of $272 and $257, respectively		8,864			4,916
Real estate deposits		254			516
Prepaid and other assets		2,852			1,189
Intangible assets, net of accumulated amortization of $45,218 and $39,571, respectively		51,543			50,700
Tax, insurance, and other escrow		18,467			9,301
Property and equipment, net of accumulated depreciation of $1,223 and $924, respectively		1,332			1,392
Goodwill		1,127			1,388
Deferred charges and leasing costs, net of accumulated amortization of $14,309 and $13,131, respectively		19,737			18,108
TOTAL ASSETS	$	1,610,272		$	1,660,930
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	35,633		$	38,514
Revolving lines of credit		10,000			6,550
Mortgages payable		998,929			1,057,619
Other		8,423			1,320
TOTAL LIABILITIES		1,052,985			1,104,003
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,237			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 January 31, 2011 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, 79,845,749 shares issued and outstanding at January 31, 2011, and 75,805,159 shares issued and outstanding at April 30, 2010)		616,701			583,618
Accumulated distributions in excess of net income		(223,684	)		(201,412	)
Total Investors Real Estate Trust shareholders’ equity		420,334			409,523
Noncontrolling interests – Operating Partnership (20,047,190 units at January 31, 2011 and 20,521,365 units at April 30, 2010)		126,335			134,970
Noncontrolling interests – consolidated real estate entities		9,381			10,622
Total equity		556,050			555,115
TOTAL LIABILITIES AND EQUITY	$	1,610,272		$	1,660,930

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three and nine months ended January 31, 2011 and 2010

	Three Months Ended January 31						Nine Months Ended January 31
	(in thousands, except per share data)
	2011			2010			2011			2010
REVENUE
Real estate rentals	$	47,849		$	46,374		$	143,498		$	138,389
Tenant reimbursement		12,354			10,960			34,785			33,712
TOTAL REVENUE		60,203			57,334			178,283			172,101
EXPENSES
Depreciation/amortization related to real estate investments		13,902			13,907			41,603			41,254
Utilities		4,775			4,370			13,184			12,388
Maintenance		8,358			7,282			22,001			20,464
Real estate taxes		7,780			7,504			23,068			22,759
Insurance		646			910			1,866			2,692
Property management expenses		5,478			4,619			15,535			12,606
Administrative expenses		1,716			1,683			5,055			4,404
Advisory and trustee services		134			107			482			371
Other expenses		441			536			1,357			1,468
Amortization related to non-real estate investments		689			590			1,978			1,710
Impairment of real estate investments		0			0			0			708
TOTAL EXPENSES		43,919			41,508			126,129			120,824
Gain on involuntary conversion		0			1,660			0			1,660
Interest expense		(15,888	)		(16,534	)		(48,395	)		(49,306	)
Interest income		75			138			194			264
Other income		32			112			217			239
Income from continuing operations		503			1,202			4,170			4,134
Income (loss) from discontinued operations		14,085			(838	)		19,871			(1,001	)
NET INCOME		14,588			364			24,041			3,133
Net (income) loss attributable to noncontrolling interests – Operating Partnership		(2,793	)		39			(4,485	)		(381	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		38			49			82			2
Net income attributable to Investors Real Estate Trust		11,833			452			19,638			2,754
Dividends to preferred shareholders		(593	)		(593	)		(1,779	)		(1,779	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	11,240		$	(141	)	$	17,859		$	975
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted		.00			.01			.03			.03
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.14			(.01	)		.20			(.01	)
NET INCOME PER COMMON SHARE – BASIC AND DILUTED	$	.14		$	.00		$	.23		$	.02
DIVIDENDS PER COMMON SHARE	$	.1715		$	.1715		$	.5145		$	.5130

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 nine months ended January 31, 2011 and 2010

	(in thousands, except per share amounts)
Three Months Ended January 31,	2011									2010
	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		$	11,833								$	452
Less dividends to preferred shareholders			(593	)								(593	)
Net income (loss) available to common shareholders			11,240			79,398		$	0.14			(141	)		73,607		$	0.00
Adjustments:
Noncontrolling interest – Operating Partnership			2,793			19,957						(39	)		20,909
Depreciation and amortization(1)			14,577									14,865
Gain on depreciable property sales			(13,961	)								0
Funds from operations applicable to common shares and Units		$	14,649			99,355		$	0.14			14,685			94,516		$	0.16

	(in thousands, except per share amounts)
Nine Months Ended January 31,	2011									2010
	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		$	19,638								$	2,754
Less dividends to preferred shareholders			(1,779	)								(1,779	)
Net income available to common shareholders			17,859			78,140		$	0.23			975			67,375		$	0.02
Adjustments:
Noncontrolling interest – Operating Partnership			4,485			20,171						381			20,909
Depreciation and amortization(4)			44,525									44,390
Gain on depreciable property sales			(19,365	)								0
Funds from operations applicable to common shares and Units		$	47,504			98,311		$	0.48		$	45,746			88,284		$	0.52

(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 $14,591 and $14,497, and depreciation/amortization from Discontinued Operations of $41 and $581, less corporate-related depreciation and amortization on office equipment and other assets of $55 and $213, for the three months ended January 31, 2011 and 2010, 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 $43,581 and $42,964, and depreciation/amortization from Discontinued Operations of $1,146 and $1,738, less corporate-related depreciation and amortization on office equipment and other assets of $202 and $312, for the nine months ended January 31, 2011 and 2010, respectively.

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and nine months ended January 31, 2011 and 2010

	(in thousands)
Three Months Ended January 31, 2011	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	16,884	$	19,343	$	16,993	$	3,349	$	3,634	$	60,203
Real estate expenses			8,903		9,507		5,894		1,203		1,530		27,037
Net operating income		$	7,981	$	9,836	$	11,099	$	2,146	$	2,104		33,166
Depreciation/amortization													(14,591	)
Administrative, advisory and trustee services													(1,850	)
Other expenses													(441	)
Interest expense													(15,888	)
Interest and other income													107
Income from continuing operations													503
Income from discontinued operations													14,085
Net income												$	14,588

	(in thousands)
Three Months Ended January 31, 2010	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	16,315	$	20,303	$	14,218	$	3,186	$	3,312	$	57,334
Real estate expenses			8,605		9,225		4,483		1,050		1,322		24,685
Gain on involuntary conversion			1,660		0		0		0		0		1,660
Net operating income		$	9,370	$	11,078	$	9,735	$	2,136	$	1,990		34,309
Depreciation/amortization													(14,497	)
Administrative, advisory and trustee services													(1,790	)
Other expenses													(536	)
Interest expense													(16,534	)
Interest and other income													250
Income from continuing operations													1,202
Loss from discontinued operations													(838	)
Net income												$	364

	(in thousands)
Nine Months Ended January 31, 2011	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	49,596	$	58,839	$	49,547	$	9,890	$	10,411	$	178,283
Real estate expenses			25,247		27,082		16,563		3,123		3,639		75,654
Net operating income		$	24,349	$	31,757	$	32,984	$	6,767	$	6,772		102,629
Depreciation/amortization													(43,581	)
Administrative, advisory and trustee services													(5,537	)
Other expenses													(1,357	)
Interest expense													(48,395	)
Interest and other income													411
Income from continuing operations													4,170
Income from discontinued operations													19,871
Net income												$	24,041

	(in thousands)
Nine Months Ended January 31, 2010	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	49,210	$	61,952	$	41,157	$	9,806	$	9,976	$	172,101
Real estate expenses			24,354		27,751		12,137		3,161		3,506		70,909
Gain on involuntary conversion			1,660		0		0		0		0		1,660
Net operating income		$	26,516	$	34,201	$	29,020	$	6,645	$	6,470		102,852
Depreciation/amortization													(42,964	)
Administrative, advisory and trustee services													(4,775	)
Other expenses													(1,468	)
Impairment of real estate investment													(708	)
Interest expense													(49,306	)
Interest and other income													503
Income from continuing operations													4,134
Loss from discontinued operations													(1,001	)
Net income												$	3,133

vii

EX-99.2

Exhibit 99.2

Third Quarter Fiscal 2011

Supplemental Operating and Financial Data

for the Quarter Ended January 31, 2011

CONTACT: Lindsey 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

January 31, 2011

	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 Physical 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 January 31, 2011	24
Growth and Strategy
Fiscal 2011 Acquisition Summary	25
Fiscal 2011 Development Summary	26
Definitions	27

1

Company Background and Highlights

Third 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 third quarter of fiscal year 2011, the Company acquired three properties: on November 10, 2010, the Company acquired the approximately 108,503 square foot Edgewood Vista assisted living facility in Minot, North Dakota, for approximately $15.2 million, consisting of cash of approximately $9.6 million ($7.4 million of which was paid to the current tenant in the property to acquire the option to purchase the property) and the assumption of existing debt of approximately $5.6 million; on December 10, 2010, the Company acquired an approximately 47,709 square foot retail/office property in Minot, North Dakota, for a purchase price, paid in cash, of $8.3 million; and on December 16, 2010, the Company acquired an approximately 58,574 square foot office property in Omaha, Nebraska, for a purchase price of approximately $8.3 million, of which approximately $5.3 million was paid in cash, with the remainder paid in limited partnership units of the Company’s Operating Partnership valued at a total of $3.0 million. During the third quarter of fiscal year 2011, the Company substantially completed construction of an approximately 24,000 square foot expansion to its existing Edgewood Vista senior housing facility in Spearfish, South Dakota.  The cost to construct the addition was approximately $2.7 million, of which $2.3 million has been paid as of January 31, 2011.

During the third quarter of fiscal year 2011, the Company sold a small industrial property in Waconia, Minnesota, on November 1, 2010, and three multi-family residential properties in Colorado, the Pinecone and Miramont Apartments in Fort Collins, Colorado and the Neighborhood Apartments in Colorado Springs, Colorado, on November 15, 2010, for a total sales price of $46.6 million.

IRET has substantially completed its announced goal of transferring the management of the majority of our commercial and multi-family residential properties from third-party property management companies to our own employees. As of January 31, 2011, the Company has under internal management a total of 155 properties in our commercial office, commercial medical, commercial industrial and commercial retail segments, totaling approximately 9.5 million square feet. Approximately 82.4% of the properties in our commercial office segment, 89.3% of the properties in our commercial medical segment, 89.5% of the properties in our commercial industrial segment, 97.0% of the properties in our commercial retail segment, and approximately 93.2% of the properties in our multi-family residential segment (approximately 7,793 units in 69 properties) were internally managed by Company employees as of January 31, 2011. IRET continues to evaluate existing and acquired commercial properties to determine additional suitable candidates for internal management, and to establish appropriate timelines to accomplish the transfers.

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. During the third quarter of fiscal year 2011, IRET sold no common shares under this program.

We believe the decreased occupancy levels in our commercial office and commercial industrial segments reflect the economic conditions in our markets, as recovery from the national economic recession has been slow. The recession, and illiquidity and uncertainty in the financial and capital markets during calendar years 2008, 2009, 2010 and continuing into 2011, negatively affected substantially all businesses, including ours. Although signs of an economic recovery have emerged during the first three quarters of our current fiscal year, we continue to expect recovery from the recession to be slow during the balance of the current fiscal year. It is not possible for us to predict or quantify the timing and impact of such a recovery, or lack thereof, during the remainder of fiscal year 2011.

In the third quarter of fiscal year 2011, IRET paid its 159th consecutive quarterly distribution per common share/unit at equal or increasing rates. The $0.1715 per share/unit distribution was paid January 14, 2011. 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 January 31, 2011, IRET owns a diversified portfolio of 250 properties consisting of 74 multi-family residential properties, 68 commercial office properties, 56 commercial medical properties (including senior housing), 19 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 January 31, 2011)

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	250
Total Square Feet
(commercial properties)	12.2 million
Total Units
(multi-family residential properties)	8,593
Common Shares Outstanding (thousands)	79,846
Limited Partnership Units Outstanding (thousands)	20,047
Common Share Distribution - Quarter/Annualized	$0.1715/$0.686
Dividend Yield	7.7%
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
Michael A. Bosh	Senior Vice President, General Counsel and Assistant Secretary
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Ted E. Holmes	Senior Vice President, Finance
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 Anderson

landerson@iret.com

3

Common Share Data (NASDAQ: IRET)

	3rd Quarter Fiscal Year 2011			2nd Quarter Fiscal Year 2011			1st Quarter Fiscal Year 2011			4th Quarter Fiscal Year 2010			3rd Quarter Fiscal Year 2010
High Closing Price	$	9.26		$	8.90		$	9.20		$	9.37		$	9.40
Low Closing Price	$	8.74		$	7.97		$	8.25		$	8.31		$	8.25
Average Closing Price	$	8.99		$	8.43		$	8.71		$	8.89		$	8.82
Closing Price at end of quarter	$	8.94		$	8.80		$	8.47		$	8.73		$	8.73
Common Share Distributions—annualized	$	0.686		$	0.686		$	0.686		$	0.686		$	0.686
Closing Dividend Yield - annualized		7.7	%		7.8	%		8.1	%		7.9	%		7.9	%
Closing common shares outstanding (thousands)		79,846			79,092			78,158			75,805			73,966
Closing limited partnership units outstanding (thousands)		20,047			19,994			20,273			20,522			20,853
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	893,043		$	871,957		$	833,711		$	840,935		$	827,770

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

Third Quarter Fiscal 2011 Acquisitions

Edgewood Vista - Minot 800 16th Ave SE, Minot, ND 58701	Omaha 10802 Farnam Drive 10802 Farnam Drive, Omaha, NE 68154

4

Investment Cost by Segment – Third 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)

	01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
ASSETS
Real estate investments
Property owned	$	1,763,585		$	1,773,924		$	1,813,427		$	1,800,519		$	1,793,995
Less accumulated depreciation		(319,235	)		(322,379	)		(320,994	)		(308,626	)		(298,523	)
		1,444,350			1,451,545			1,492,433			1,491,893			1,495,472
Development in progress		4,231			2,755			174			2,831			1,164
Unimproved land		7,470			7,876			6,020			6,007			5,987
Mortgage loans receivable, net of allowance		157			157			158			158			159
Total real estate investments		1,456,208			1,462,333			1,498,785			1,500,889			1,502,782
Other assets
Cash and cash equivalents		30,907			43,701			56,077			54,791			47,790
Restricted cash		0			0			0			0			36,500
Marketable securities – available-for-sale		325			420			420			420			420
Receivable arising from straight-lining of rents, net of allowance		18,656			18,125			17,751			17,320			17,102
Accounts receivable, net of allowance		8,864			5,179			5,911			4,916			5,259
Real estate deposits		254			2,089			302			516			978
Prepaid and other assets		2,852			3,375			3,032			1,189			1,903
Intangible assets, net of accumulated amortization		51,543			48,140			50,050			50,700			52,797
Tax, insurance, and other escrow		18,467			10,504			10,391			9,301			10,044
Property and equipment, net of accumulated depreciation		1,332			1,370			1,371			1,392			1,332
Goodwill		1,127			1,260			1,388			1,388			1,392
Deferred charges and leasing costs, net of accumulated amortization		19,737			18,606			18,449			18,108			17,637
TOTAL ASSETS	$	1,610,272		$	1,615,102		$	1,663,927		$	1,660,930		$	1,695,936
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	35,633		$	26,616		$	33,340		$	38,514		$	36,453
Revolving lines of credit		10,000			29,100			6,528			6,550			6,579
Mortgages payable		998,929			1,004,532			1,063,414			1,057,619			1,091,945
Other		8,423			1,227			1,272			1,320			1,368
TOTAL LIABILITIES		1,052,985			1,061,475			1,104,554			1,104,003			1,136,345
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		1,237			1,357			1,427			1,812			1,765
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		616,701			610,580			603,344			583,618			569,439
Accumulated distributions in excess of net income		(223,684	)		(221,304	)		(213,055	)		(201,412	)		(189,340	)
Total Investors Real Estate Trust shareholders’ equity		420,334			416,593			417,606			409,523			407,416
Noncontrolling interests – Operating Partnership		126,335			126,113			130,050			134,970			139,448
Noncontrolling interests – consolidated real estate entities		9,381			9,564			10,290			10,622			10,962
Total equity		556,050			552,270			557,946			555,115			557,826
TOTAL LIABILITIES AND EQUITY	$	1,610,272		$	1,615,102		$	1,663,927		$	1,660,930		$	1,695,936

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Nine Months Ended						Three Months Ended
OPERATING RESULTS	01/31/2011			01/31/2010			01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
Real estate revenue	$	178,283		$	172,101		$	60,203		$	58,904		$	59,176		$	59,410		$	57,334
Real estate expenses		75,654			70,909			27,037			24,304			24,313			25,382			24,685
Gain on involuntary conversion		0			1,660			0			0			0			0			1,660
Net operating income		102,629			102,852			33,166			34,600			34,863			34,028			34,309
Depreciation/amortization		(43,581	)		(42,964	)		(14,591	)		(14,424	)		(14,566	)		(14,491	)		(14,497	)
Administrative expenses, advisory and trustee services		(5,537	)		(4,775	)		(1,850	)		(1,718	)		(1,969	)		(1,443	)		(1,790	)
Other expenses		(1,357	)		(1,468	)		(441	)		(563	)		(353	)		(1,045	)		(536	)
Impairment of real estate investment		0			(708	)		0			0			0			0			0
Interest		(48,395	)		(49,306	)		(15,888	)		(16,436	)		(16,071	)		(16,359	)		(16,534	)
Interest and other income		411			503			107			167			137			391			250
Income tax benefit (expense)		0			0			0			19			(19	)		0			0
Income from continuing operations		4,170			4,134			503			1,645			2,022			1,081			1,202
Income (loss) from discontinued operations		19,871			(1,001	)		14,085			5,476			310			371			(838	)
Net income	$	24,041		$	3,133		$	14,588		$	7,121		$	2,332		$	1,452		$	364
Net (income) loss attributable to noncontrolling interest – Operating Partnership		(4,485	)		(381	)		(2,793	)		(1,322	)		(370	)		(181	)		39
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities		82			2			38			20			24			(24	)		49
Net income attributable to Investors Real Estate Trust		19,638			2,754			11,833			5,819			1,986			1,247			452
Dividends to preferred shareholders		(1,779	)		(1,779	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	17,859		$	975		$	11,240		$	5,226		$	1,393		$	654		$	(141	)
Per Share Data
Earnings per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.03		$	.03		$	.00		$	.01		$	.02		$	.01		$	.01
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.20			(.01	)		.14			.06			.00			.00			(.01	)
Net income per common share – basic & diluted	$	.23		$	.02		$	.14		$	.07		$	.02		$	.01		$	.00
Percentage of Revenues
Real estate expenses		42.4	%		41.2	%		44.9	%		41.3	%		41.1	%		42.7	%		43.1	%
Depreciation/amortization		24.4	%		25.0	%		24.2	%		24.5	%		24.6	%		24.4	%		25.3	%
General and administrative		3.1	%		2.8	%		3.1	%		2.9	%		3.3	%		2.4	%		3.1	%
Interest		27.1	%		28.6	%		26.4	%		27.9	%		27.2	%		27.5	%		28.8	%
Net income		13.5	%		1.8	%		24.2	%		12.1	%		3.9	%		2.4	%		0.6	%
Ratios
EBITDA(1)/Interest expense		1.99	x		1.92	x		1.97	x		1.96	x		2.04	x		1.95	x		1.88	x
EBITDA/Interest expense plus preferred distributions		1.92	x		1.85	x		1.90	x		1.89	x		1.97	x		1.88	x		1.82	x

(1) See Definitions on page 27.  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)

	Nine Months Ended						Three Months Ended
	01/31/2011			01/31/2010			01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	19,638		$	2,754		$	11,833		$	5,819		$	1,986		$	1,247		$	452
Less dividends to preferred shareholders		(1,779	)		(1,779	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		17,859			975			11,240			5,226			1,393			654			(141	)
Adjustments:
Noncontrolling interests – Operating Partnership		4,485			381			2,793			1,322			370			181			(39	)
Depreciation and amortization		44,525			44,390			14,577			14,888			15,060			14,993			14,865
Gain on depreciable property sales		(19,365	)		0			(13,961	)		(5,404	)		0			(68	)		0
Funds from operations applicable to common shares and Units	$	47,504		$	45,746		$	14,649		$	16,032		$	16,823		$	15,760		$	14,685
FFO per share and unit - basic and diluted	$	0.48		$	0.52		$	0.14		$	0.17		$	0.17		$	0.17		$	0.16
Weighted average shares and units		98,311			88,284			99,355			98,737			96,777			94,979		$	94,516

(1) See Definitions on page 27.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Nine Months Ended						Three Months Ended
	01/31/2011			01/31/2010			01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	19,638		$	2,754		$	11,833		$	5,819		$	1,986		$	1,247		$	452
Adjustments:
Noncontrolling interests – Operating Partnership		4,485			381			2,793			1,322			370			181			(39	)
Income before noncontrolling interests – Operating Partnership		24,123			3,135			14,626			7,141			2,356			1,428			413
Add:
Interest		49,827			52,048			15,719			17,346			16,762			17,058			17,447
Depreciation/amortization related to real estate investments		42,745			42,986			13,943			14,320			14,482			14,407			14,486
Amortization related to non-real estate investments		1,982			1,716			689			639			654			654			592
Amortization related to real estate revenues(2)		97			92			44			28			25			26			28
Less:
Interest income		(199	)		(268	)		(75	)		(66	)		(58	)		(278	)		(140	)
Gain on sale of real estate, land and other investments		(19,365	)		0			(13,961	)		(5,404	)		0			(68	)		0
EBITDA	$	99,210		$	99,709		$	30,985		$	34,004		$	34,221		$	33,227		$	32,826

(1)   See Definitions on page 27.

(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	$	8,044	$	0	$	8,044		7.10	%		0.8	%
2012		83,076		0		83,076		6.75	%		8.3	%
2013		22,304		0		22,304		5.76	%		2.2	%
2014		41,977		855		42,832		6.13	%		4.3	%
2015		68,123		0		68,123		5.76	%		6.8	%
2016		68,471		138		68,609		5.99	%		6.9	%
2017		189,259		0		189,259		6.37	%		19.0	%
2018		87,309		0		87,309		5.80	%		8.7	%
2019		64,330		604		64,934		6.43	%		6.5	%
2020		119,976		0		119,976		5.85	%		12.0	%
Thereafter		244,463		0		244,463		5.71	%		24.5	%
Total maturities	$	997,332	$	1,597	$	998,929		6.05	%		100.0	%

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

	01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
Balances Outstanding
Mortgage
Fixed rate	$	997,332		$	1,002,867		$	1,034,982		$	1,028,606		$	1,086,264
Variable rate		1,597			1,665			28,432			29,013			5,681
Mortgage total		998,929			1,004,532			1,063,414			1,057,619			1,091,945
Weighted Average Interest Rates
Secured		6.05	%		6.14	%		6.13	%		6.17	%		6.21	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF JANUARY 31, 2011

Property	Maturity Date	Fiscal 2011		Fiscal 2012		Fiscal 2013		Fiscal 2014		Thereafter		Total(1)
Multi-Family Residential
Ridge Oaks Apartments - Sioux City, IA2	2/1/2011	$	2,535	$	0	$	0	$	0	$	0	$	2,535
Oakwood - Sioux Falls, SD9	6/1/2011		0		3,353		0		0		0		3,353
Oxbow - Sioux Falls, SD9	6/1/2011		0		3,654		0		0		0		3,654
Chateau Apartments - Minot, ND8	7/1/2011		0		1,740		0		0		0		1,740
Oakmont Apartments - Sioux Falls, SD8	9/1/2011		0		3,623		0		0		0		3,623
Canyon Lake Apartments - Rapid City, SD	10/1/2011		0		2,607		0		0		0		2,607
The Meadows III - Jamestown, ND	11/1/2011		0		951		0		0		0		951
Crown Apartments - Rochester, MN	1/1/2012		0		2,532		0		0		0		2,532
Monticello Apartments - Monticello, MN	3/1/2013		0		0		3,040		0		0		3,040
Quarry Ridge Apartments - Rochester, MN	10/1/2013		0		0		0		12,202		0		12,202
East Park Apartments - Sioux Falls, SD	12/1/2013		0		0		0		1,538		0		1,538
Sycamore Village Apartments - Sioux Falls, SD	12/1/2013		0		0		0		865		0		865
Candlelight Apartments - Fargo, ND	3/1/2014		0		0		0		1,325		0		1,325
Summary of Debt due after Fiscal 2014			0		0		0		0		233,584		233,584
Sub-Total Multi-Family Residential		$	2,535	$	18,460	$	3,040	$	15,930	$	233,584	$	273,549
Commercial Office
Whitewater Plaza - Minnetonka, MN3	3/1/2011	$	2,620	$	0	$	0	$	0	$	0	$	2,620
Whitewater Plaza - Minnetonka, MN3	3/1/2011		1,359		0		0		0		0		1,359
2030 Cliff Road - Eagan, MN	4/1/2011		447		0		0		0		0		447
Pillsbury Business Center - Edina, MN	4/1/2011		867		0		0		0		0		867
Golden Hills Office Center - Golden Valley, MN4	7/1/2011		0		14,193		0		0		0		14,193
Wells Fargo Center - St Cloud, MN8	7/1/2011		0		6,409		0		0		0		6,409
Brenwood - Minnetonka, MN5	10/1/2011		0		7,224		0		0		0		7,224
Interlachen Corporate Center - Eagan, MN6	10/11/2011		0		9,354		0		0		0		9,354
Bloomington Business Plaza - Bloomington, MN5	12/1/2011		0		4,069		0		0		0		4,069
Wirth Corporate Center - Golden Valley, MN	2/1/2012		0		3,841		0		0		0		3,841
Great Plains - Fargo, ND	10/1/2013		0		0		0		3,426		0		3,426
Viromed - Eden Prairie, MN	4/1/2014		0		0		0		975		0		975
Summary of Debt due after Fiscal 2014			0		0		0		0		289,599		289,599
Sub-Total Commercial Office		$	5,293	$	45,090	$	0	$	4,401	$	289,599	$	344,383

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT DETAIL AS OF JANUARY 31, 2011 (continued)

Property	Maturity Date	Fiscal 2011		Fiscal 2012		Fiscal 2013		Fiscal 2014		Thereafter		Total(1)
Commercial Medical
Edina 6525 France SMC II - Edina, MN7	6/1/2011	$	0	$	9,657	$	0	$	0	$	0	$	9,657
Georgetown Square - Grand Chute, WI	5/1/2012		0		0		2,233		0		0		2,233
High Pointe Health Campus - Lake Elmo, MN	12/1/2013		0		0		0		2,425		0		2,425
Summary of Debt due after Fiscal 2014			0		0		0		0		252,022		252,022
Sub-Total Commercial Medical		$	0	$	9,657	$	2,233	$	2,425	$	252,022	$	266,337
Commercial Industrial
Eagan 2785 & 2795 Highway 55 - Eagan, MN8	6/1/2011	$	0	$	3,645	$	0	$	0	$	0	$	3,645
Stone Container - Roseville, MN	2/1/2012		0		3,800		0		0		0		3,800
Minnetonka 13600 County Road 62 - Minnetonka, MN	2/27/2012		0		2,424		0		0		0		2,424
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013		0		0		7,360		0		0		7,360
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		0		0		3,914		0		0		3,914
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		0		0		5,757		0		0		5,757
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		0		0		1,203		0		1,203
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		0		0		2,402		0		2,402
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		0		0		2,825		0		2,825
Summary of Debt due after Fiscal 2014			0		0		0				28,560		28,560
Sub-Total Commercial Industrial		$	0	$	9,869	$	17,031	$	6,430	$	28,560	$	61,890
Commercial Retail
Kentwood Thomasville Furniture - Kentwood, MI5	2/1/2011	$	216	$	0	$	0	$	0	$	0	$	216
Burnsville I Strip Center - Burnsville, MN	6/30/2013		0		0		0		476		0		476
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		0		0		379		0		379
St Cloud Westgate - St Cloud, MN	10/10/2013		0		0		0		3,415		0		3,415
Livingston Pamida - Livingston, MT	12/19/2013		0		0		0		1,207		0		1,207
Eagan I Retail Center - Eagan, MN	12/22/2013		0		0		0		1,413		0		1,413
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		0		0		4,518		0		4,518
Pine City C-Store  - Pine City, MN	4/20/2014		0		0		0		313		0		313
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		0		1,925		0		1,925
Summary of Debt due after Fiscal 2014			0		0		0		0		38,908		38,908
Sub-Total Commercial Retail		$	216	$	0	$	0	$	13,646	$	38,908	$	52,770
Total		$	8,044	$	83,076	$	22,304	$	42,832	$	842,673	$	998,929

(1) Totals are principal balances as of January 31, 2011.

(2) Application signed on November 18, 2010 to refinance; loan was paid off February 1, 2011 and refinance is pending.

(3) Lender has agreed to refinance on March 10, 2011.

(4) Application signed on January 20, 2011 to refinance in April 2010.

(5) Loan was paid off on February 1, 2011.

(6) Loan was refinanced February 11, 2011.

(7) Loan was refinanced March 3, 2011.

(8) Currently in discussion for refinance.

(9)    Application signed March 3, 2011 for refinance on April 29, 2011.

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	01/31/2011		10/31/2010		07/31/2010		04/30/2010		01/31/2010
Equity Capitalization
Common shares outstanding		79,846		79,092		78,158		75,805		73,966
Operating partnership (OP) units outstanding		20,047		19,994		20,273		20,522		20,853
Total common shares and OP units outstanding		99,893		99,086		98,431		96,327		94,819
Market price per common share (closing price at end of period)	$	8.94	$	8.80	$	8.47	$	8.73	$	8.73
Equity capitalization-common shares and OP units	$	893,043	$	871,957	$	833,711	$	840,935	$	827,770
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	920,360	$	899,274	$	861,028	$	868,252	$	855,087
Debt Capitalization
Total mortgage debt	$	998,929	$	1,004,532	$	1,063,414	$	1,057,619	$	1,091,945
Total capitalization	$	1,919,289	$	1,903,806	$	1,924,442	$	1,925,871	$	1,947,032
Total debt to total capitalization	0.52:1		0.53:1		0.55:1		0.55:1		0.56:1

	Nine Months Ended						Three Months Ended
	01/31/2011			01/31/2010			01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
Earnings to fixed charges(1)		1.08	x		1.08	x		1.03	x		1.10	x		1.12	x		1.06	x		1.07	x
Earnings to combined fixed charges and preferred distributions(1)		1.05	x		1.04	x		1.00	x		1.06	x		1.08	x		1.03	x		1.04	x
Debt service coverage ratio(1)		1.40	x		1.37	x		1.37	x		1.40	x		1.44	x		1.39	x		1.36	x
Distribution Data
Common shares and units outstanding at record date		99,213			94,497			99,213			98,726			96,506			94,844			94,497
Total common distribution paid	$	50,497		$	45,079		$	17,015		$	16,931		$	16,551		$	16,267		$	16,205
Common distribution per share and unit	$	.5145		$	.5130		$	.1715		$	.1715		$	.1715		$	.1715		$	.1715
Payout ratio (FFO per share and unit basis)(1)		107.2	%		98.7	%		122.5	%		100.9	%		100.9	%		100.9	%		107.2	%

(1)   See Definitions on page 27.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties(1)
	Three Months Ended January 31,							Nine Months Ended January 31,
Segment	2011		2010		% Change			2011		2010		% Change
Multi-Family Residential	$	7,936	$	9,370		(15.3	%)	$	24,197	$	26,516		(8.7	%)
Commercial Office		9,703		11,053		(12.2	%)		31,602		34,185		(7.6	%)
Commercial Medical		9,918		9,527		4.1	%		30,056		28,869		4.1	%
Commercial Industrial		1,971		2,061		(4.4	%)		6,322		6,506		(2.8	%)
Commercial Retail		2,030		1,989		2.1	%		6,698		6,469		3.5	%
	$	31,558	$	34,000		(7.2	%)	$	98,875	$	102,545		(3.6	%)

(1) For Three and Nine Months Ended January 31, 2011, stabilized properties excluded:

Multi-Family Residential - Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for January 31, 2011 is 79.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for January 31, 2011 is 99.4%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND.

Total square footage, 375,847. Occupancy % for January 31, 2011 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 January 31, 2011 is 100.0%.

Commercial Retail - Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for January 31, 2010 is 84.0%.

For Three and Nine Months ended January 31, 2010, stabilized properties excluded:

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,322. Occupancy % for January 31, 2010 is 50.7%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Fox River Cottages, Grand Chute, WI.

Total square footage, 264,335. Occupancy % for January 31, 2011 is 90.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for January 31, 2010 is 100.0%.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	16,764		$	19,097		$	13,787		$	3,148		$	3,540		$	0		$	56,336
Non-Stabilized		120			246			3,206			201			94			0			3,867
Total		16,884			19,343			16,993			3,349			3,634			0			60,203
Real estate expenses
Stabilized(1)		8,828			9,394			3,869			1,177			1,510			0			24,778
Non-Stabilized		75			113			2,025			26			20			0			2,259
Total		8,903			9,507			5,894			1,203			1,530			0			27,037
Stabilized(1)		7,936			9,703			9,918			1,971			2,030			0			31,558
Non-Stabilized		45			133			1,181			175			74			0			1,608
Net operating income	$	7,981		$	9,836		$	11,099		$	2,146		$	2,104		$	0		$	33,166
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,390	)	$	(5,323	)	$	(4,025	)	$	(914	)	$	(846	)	$	(93	)	$	(14,591	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,850	)		(1,850	)
Other expenses		0			0			0			0			0			(441	)		(441	)
Interest expense		(4,265	)		(5,379	)		(4,218	)		(993	)		(814	)		(219	)		(15,888	)
Interest and other income		0			0			0			0			0			107			107
Income (loss) from continuing operations		326			(866	)		2,856			239			444			(2,496	)		503
Income from discontinued operations		13,348			0			0			737			0			0			14,085
Net income (loss)		13,674			(866	)		2,856			976			444			(2,496	)		14,588
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(2,793	)		(2,793	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			38			38
Net income (loss) attributable to Investors Real Estate Trust		13,674			(866	)		2,856			976			444			(5,251	)		11,833
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	13,674		$	(866	)	$	2,856		$	976		$	444		$	(5,844	)	$	11,240

(1) For Three Months Ended January 31, 2011, stabilized properties excluded:

Multi-Family Residential - Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for January 31, 2011 is 79.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for January 31, 2011 is 99.4%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND.

Total square footage, 375,847. Occupancy % for January 31, 2011 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 January 31, 2011 is 100.0%.

Commercial Retail - Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for January 31, 2010 is 84.0%.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 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)	$	16,315		$	20,220		$	13,207		$	3,088		$	3,312		$	0		$	56,142
Non-Stabilized		0			83			1,011			98			0			0			1,192
Total		16,315			20,303			14,218			3,186			3,312			0			57,334
Real estate expenses
Stabilized(1)		8,605			9,167			3,680			1,027			1,323			0			23,802
Non-Stabilized		0			58			803			23			(1	)		0			883
Total		8,605			9,225			4,483			1,050			1,322			0			24,685
Gain on involuntary conversion
Non-Stabilized		1,660			0			0			0			0			0			1,660
Total		1,660			0			0			0			0			0			1,660
Net Operating Income (NOI)
Stabilized(1)		9,370			11,053			9,527			2,061			1,989			0			34,000
Non-Stabilized		0			25			208			75			1			0			309
Net operating income	$	9,370		$	11,078		$	9,735		$	2,136		$	1,990		$	0		$	34,309
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,404	)	$	(5,550	)	$	(3,358	)	$	(915	)	$	(1,033	)	$	(237	)	$	(14,497	)
Administrative, advisory and trustee services		0			0			0			0			0			(1,790	)		(1,790	)
Other expenses		0			0			0			0			0			(536	)		(536	)
Interest expense		(4,282	)		(5,817	)		(4,410	)		(1,052	)		(861	)		(112	)		(16,534	)
Interest and other income		0			0			0			0			0			250			250
Income (loss) from continuing operations		1,684			(289	)		1,967			169			96			(2,425	)		1,202
Income (loss) from discontinued operations		63			(6	)		4			(16	)		(883	)		0			(838	)
Net income (loss)		1,747			(295	)		1,971			153			(787	)		(2,425	)		364
Net loss attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			39			39
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			49			49
Net income (loss) attributable to Investors Real Estate Trust		1,747			(295	)		1,971			153			(787	)		(2,337	)		452
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,747		$	(295	)	$	1,971		$	153		$	(787	)	$	(2,930	)	$	(141	)

(1) For Three Months ended January 31, 2010, stabilized properties excluded:

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,322. Occupancy % for January 31, 2010 is 50.7%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Fox River Cottages, Grand Chute, WI.

Total square footage, 264,335. Occupancy % for January 31, 2011 is 90.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for January 31, 2010 is 100.0%.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	49,228		$	58,461		$	40,814		$	9,360		$	10,317		$	0		$	168,180
Non-Stabilized		368			378			8,733			530			94			0			10,103
Total		49,596			58,839			49,547			9,890			10,411			0			178,283
Real estate expenses
Stabilized(1)		25,031			26,859			10,758			3,038			3,619			0			69,305
Non-Stabilized		216			223			5,805			85			20			0			6,349
Total		25,247			27,082			16,563			3,123			3,639			0			75,654
Stabilized(1)		24,197			31,602			30,056			6,322			6,698			0			98,875
Non-Stabilized		152			155			2,928			445			74			0			3,754
Net operating income	$	24,349		$	31,757		$	32,984		$	6,767		$	6,772		$	0		$	102,629
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(10,116	)	$	(16,317	)	$	(11,858	)	$	(2,680	)	$	(2,327	)	$	(283	)	$	(43,581	)
Administrative, advisory and trustee fees		0			0			0			0			0			(5,537	)		(5,537	)
Other expenses		0			0			0			0			0			(1,357	)		(1,357	)
Interest expense		(12,824	)		(16,511	)		(13,038	)		(2,994	)		(2,452	)		(576	)		(48,395	)
Interest and other income		0			0			0			0			0			411			411
Income (loss) from continuing operations		1,409			(1,071	)		8,088			1,093			1,993			(7,342	)		4,170
Income (loss) from discontinued operations		19,224			0			(8	)		726			(71	)		0			19,871
Net income (loss)		20,633			(1,071	)		8,080			1,819			1,922			(7,342	)		24,041
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(4,485	)		(4,485	)
Net 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		20,633			(1,071	)		8,080			1,819			1,922			(11,745	)		19,638
Dividends to preferred shareholders		0			0			0			0			0			(1,779	)		(1,779	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	20,633		$	(1,071	)	$	8,080		$	1,819		$	1,922		$	(13,524	)	$	17,859

(1) For Nine Months Ended January 31, 2011, stabilized properties excluded:

Multi-Family Residential - Crown Apartments, Rochester, MN and Northern Valley Apartments, Rochester, MN.

Total number of units, 64. Occupancy % for January 31, 2011 is 79.7%.

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND; 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 128,611. Occupancy % for January 31, 2011 is 99.4%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Edgewood Vista-Minot, Minot, ND.

Total square footage, 375,847. Occupancy % for January 31, 2011 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 January 31, 2011 is 100.0%.

Commercial Retail - Minot 1400 31st Ave, Minot, ND.

Total square footage, 47,709. Occupancy % for January 31, 2010 is 84.0%.

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 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)	$	49,210		$	61,817		$	40,146		$	9,620		$	9,976		$	0		$	170,769
Non-Stabilized		0			135			1,011			186			0			0			1,332
Total		49,210			61,952			41,157			9,806			9,976			0			172,101
Real estate expenses
Stabilized(1)		24,354			27,632			11,277			3,114			3,507			0			69,884
Non-Stabilized		0			119			860			47			(1	)		0			1,025
Total		24,354			27,751			12,137			3,161			3,506			0			70,909
Gain on involuntary conversion
Non-Stabilized		1,660			0			0			0			0			0			1,660
Total		1,660			0			0			0			0			0			1,660
Net Operating Income (NOI)
Stabilized(1)		26,516			34,185			28,869			6,506			6,469			0			102,545
Non-Stabilized		0			16			151			139			1			0			307
Net operating income	$	26,516		$	34,201		$	29,020		$	6,645		$	6,470		$	0		$	102,852
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(9,774	)	$	(16,778	)	$	(10,843	)	$	(2,749	)	$	(2,426	)	$	(394	)	$	(42,964	)
Administrative, advisory and trustee services		0			0			0			0			0			(4,775	)		(4,775	)
Other expenses		0			0			0			0			0			(1,468	)		(1,468	)
Impairment of real estate investment		0			0			0			0			(708	)		0			(708	)
Interest expense		(12,648	)		(17,579	)		(12,942	)		(3,053	)		(2,684	)		(400	)		(49,306	)
Interest and other income		0			0			0			0			0			503			503
Income (loss) from continuing operations		4,094			(156	)		5,235			843			652			(6,534	)		4,134
Income (loss) from discontinued operations		30			(169	)		10			(16	)		(857	)		1			(1,001	)
Net income (loss)		4,124			(325	)		5,245			827			(205	)		(6,533	)		3,133
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(381	)		(381	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			2			2
Net income (loss) attributable to Investors Real Estate Trust		4,124			(325	)		5,245			827			(205	)		(6,912	)		2,754
Dividends to preferred shareholders		0			0			0			0			0			(1,779	)		(1,779	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	4,124		$	(325	)	$	5,245		$	827		$	(205	)	$	(8,691	)	$	975

(1) For Nine Months ended January 31, 2010, stabilized properties excluded:

Commercial Office - IRET Corporate Plaza, Minot, ND; Minot 2505 16th St SW, Minot, ND and 1st Avenue Building, Minot, ND.

Total square footage, 80,322. Occupancy % for January 31, 2010 is 50.7%.

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; Missoula 3050 Great Northern Avenue, Missoula, MT and Fox River Cottages, Grand Chute, WI.

Total square footage, 264,335. Occupancy % for January 31, 2011 is 90.0%.

Commercial Industrial - Clive 2075 NW 94th St., Clive, IA.

Total square footage, 42,510. Occupancy % for January 31, 2010 is 100.0%.

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

3rd Quarter Fiscal 2011 vs. 3rd Quarter Fiscal 2010

Segments	Stabilized Properties		All Properties
	3rd Quarter	3rd Quarter	3rd Quarter	3rd Quarter
	Fiscal 2011	Fiscal 2010	Fiscal 2011	Fiscal 2010
Multi-Family Residential	91.2%	89.6%	91.1%	89.6%
Commercial Office	79.6%	84.3%	80.1%	83.7%
Commercial Medical	95.4%	95.8%	96.0%	95.2%
Commercial Industrial	81.1%	86.1%	81.7%	86.3%
Commercial Retail	82.4%	81.9%	82.5%	81.9%

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and nine months ended January 31, 2011

	Three Months Ended January 31, 2011
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			68,281			104,996			173,277			16,795			156,482
Commercial Medical			11,686			13,785			25,471			7,604			17,867
Commercial Industrial			0			211,322			211,322			32,874			178,448
Commercial Retail			4,666			122,879			127,545			15,596			111,949
Total All Segments			84,633			452,982			537,615			72,869			464,746
Weighted Average Rental Rates(3)
Commercial Office		$	18.36		$	10.29		$	13.47		$	10.11		$	3.36			33.2	%
Commercial Medical			19.37			20.57			20.02			16.51			3.51			21.3	%
Commercial Industrial			0.00			3.50			3.50			3.50			0.00			0.0	%
Commercial Retail			5.66			3.28			3.36			8.99			(5.63	)		(62.6	%)
Total All Segments		$	17.80		$	5.53		$	7.46		$	7.55		$	(0.09	)		(1.2	%)
	Nine Months Ended January 31, 2011
	New(1)			Renew(2)			Total			Expiring(3)			Net Change				Percentage Change
Gross Square Footage
Commercial Office			233,490			264,781			498,271			425,246			73,025
Commercial Medical			61,721			38,236			99,957			44,463			55,494
Commercial Industrial			116,119			427,939			544,058			339,404			204,654
Commercial Retail			24,993			161,968			186,961			182,798			4,163
Total All Segments			436,323			892,924			1,329,247			991,911			337,336
Weighted Average Rental Rates(3)
Commercial Office		$	13.30		$	10.37		$	11.74		$	12.18		$	(0.44	)		(3.6	%)
Commercial Medical			20.83			20.38			20.66			19.13			1.53			8.0	%
Commercial Industrial			6.75			3.06			3.85			3.36			0.49			14.6	%
Commercial Retail			10.32			3.78			4.65			8.49			(3.84	)		(45.2	%)
Total All Segments		$	12.45		$	6.10		$	8.19		$	8.79		$	(0.60	)		(6.8	%)

	Three Months Ended January 31, 2011						Nine Months Ended January 31, 2011
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased
Commercial Office		7.9		5.6		7.1		7.2		4.1		5.7
Commercial Medical		9.2		9.0		9.1		7.0		7.4		7.2
Commercial Industrial		0.0		5.2		5.2		3.6		3.3		3.4
Commercial Retail		2.5		3.7		3.5		2.9		2.7		2.7
Total All Segments		7.7		5.6		6.6		6.0		4.0		4.9

(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 nine months ended January 31, 2011

	3rd Quarter Fiscal 2011 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	595,501	$	585,161	$	1,180,662	$	1,905,668	$	668,634	$	2,574,302
Commercial Medical		410,508		283,270		693,778		446,508		292,110		738,618
Commercial Industrial		0		24,000		24,000		63,400		72,000		135,400
Commercial Retail		5,663		10,000		15,663		20,663		10,000		30,663
Subtotal	$	1,011,672	$	902,431	$	1,914,103	$	2,436,239	$	1,042,744	$	3,478,983
Tenant Improvements per square foot
Commercial Office	$	8.72	$	5.57	$	6.81	$	8.16	$	2.53	$	5.17
Commercial Medical		35.13		20.55		27.24		7.23		7.64		7.39
Commercial Industrial		0.00		0.11		0.11		0.55		0.17		0.25
Commercial Retail		1.21		0.08		0.12		0.83		0.06		0.16
All Segments	$	11.95	$	1.99	$	3.56	$	5.58	$	1.17	$	2.62
Leasing Costs
Commercial Office	$	582,096	$	626,528	$	1,208,624	$	2,571,252	$	1,171,855	$	3,743,107
Commercial Medical		101,919		93,505		195,424		113,494		159,543		273,037
Commercial Industrial		0		110,944		110,944		68,521		155,814		224,335
Commercial Retail		8,664		53,665		62,329		83,493		79,162		162,655
Subtotal	$	692,679	$	884,642	$	1,577,321	$	2,836,760	$	1,566,374	$	4,403,134
Leasing Costs per square foot
Commercial Office	$	8.53	$	5.97	$	6.98	$	11.01	$	4.43	$	7.51
Commercial Medical		8.72		6.78		7.67		1.84		4.17		2.73
Commercial Industrial		0.00		0.52		0.52		0.59		0.36		0.41
Commercial Retail		1.86		0.44		0.49		3.34		0.49		0.87
All Segments	$	8.18	$	1.95	$	2.93	$	6.50	$	1.75	$	3.31
Tenant Improvements and Leasing Costs
Commercial Office	$	1,177,597	$	1,211,689	$	2,389,286	$	4,476,920	$	1,840,489	$	6,317,409
Commercial Medical		512,427		376,775		889,202		560,002		451,653		1,011,655
Commercial Industrial		0		134,944		134,944		131,921		227,814		359,735
Commercial Retail		14,327		63,665		77,992		104,156		89,162		193,318
Total	$	1,704,351	$	1,787,073	$	3,491,424	$	5,272,999	$	2,609.118	$	7,882,117
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	17.25	$	11.54	$	13.79	$	19.17	$	6.95	$	12.68
Commercial Medical		43.85		27.33		34.91		9.07		11.81		10.12
Commercial Industrial		0.00		0.64		0.64		1.14		0.53		0.66
Commercial Retail		3.07		0.52		0.61		4.17		0.55		1.03
All Segments	$	20.14	$	3.95	$	6.49	$	12.09	$	2.92	$	5.93

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	01/31/2011			10/31/2010			07/31/2010			04/30/2010			01/31/2010
Number of Units		8,593			8,590			8,590			8,590			8,526
Average Investment Per Unit
Stabilized	$	55,783		$	55,477		$	55,197		$	54,934		$	54,476
Non-Stabilized		66,955			66,818			66,736			66,719			0
	$	55,866		$	55,561		$	55,283		$	54,963		$	54,476
Average Scheduled Rent per Unit
Stabilized	$	697		$	698		$	696		$	694		$	693
Non-Stabilized		764			772			758			1,017			0
	$	697		$	699		$	696		$	695		$	693
Total Receipts per Unit
Stabilized	$	655		$	642		$	627		$	634		$	638
Non-Stabilized		626			673			618			961			0
	$	655		$	642		$	627		$	634		$	638
Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	145		$	166		$	132		$	124		$	104
Non-Stabilized		278			25			0			0			0
	$	146		$	165		$	131		$	123		$	104
Physical Occupancy%
Stabilized		91.2	%		90.6	%		85.7	%		89.7	%		89.6	%
Non-Stabilized		79.7	%		89.1	%		90.6	%		95.3	%		0.0	%
		91.1	%		90.6	%		85.8	%		89.7	%		89.6	%
Operating Expenses as a % of Scheduled Rent
Stabilized		49.7	%		46.0	%		44.9	%		46.4	%		48.6	%
Non-Stabilized		50.8	%		52.3	%		43.8	%		18.9	%		0.0	%
Total		49.7	%		46.1	%		44.9	%		46.3	%		48.6	%

(1) See Definitions on page 27.

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of January 31, 2011

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	20	212	10.7%	1,029,967	10.0%
St. Lukes Hospital of Duluth, Inc.	6	60	3.4%	198,775	1.9%
Fairview Health Services	9	65	2.6%	198,233	1.9%
Applied Underwriters	3	73	2.2%	141,724	1.4%
Affiliates of Siemens USA	2	13	2.1%	186,224	1.8%
HealthEast Care System	1	97	1.6%	114,316	1.1%
Microsoft (NASDAQ: MSFT)	1	31	1.4%	122,040	1.2%
Smurfit - Stone Container (NASDAQ: SSCC)	2	58	1.4%	406,397	4.0%
Nebraska Orthopedic Hospital	1	218	1.3%	61,758	0.6%
Arcadis Corporate Services, Inc.	1	198	1.2%	71,430	0.7%
Total/Weighted Average		103	27.9%	2,530,864	24.6%

(1) See Definitions on page 27.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of January 31, 2011

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Rent
Commercial Office
2011		19		103,979		2.6	%	$	1,359,499	$	13.07		2.4	%
2012		63		760,075		19.1	%		10,511,796		13.83		18.9	%
2013		43		508,210		12.7	%		6,911,502		13.60		12.4	%
2014		44		600,166		15.0	%		7,897,347		13.16		14.2	%
2015		48		400,810		10.1	%		5,766,277		14.39		10.4	%
2016 and thereafter		65		1,617,657		40.5	%		23,179,260		14.33		41.7	%
		282		3,990,897		100.0	%	$	55,625,681	$	13.94		100.0	%
Commercial Medical
2011		4		9,544		0.4	%	$	170,207	$	17.83		0.4	%
2012		30		107,226		4.1	%		2,222,813		20.73		4.7	%
2013		20		109,006		4.2	%		2,405,253		22.07		5.1	%
2014		28		393,484		15.2	%		7,162,578		18.20		15.2	%
2015		11		54,310		2.1	%		1,313,691		24.19		2.8	%
2016 and thereafter		96		1,921,488		74.0	%		33,835,023		17.61		71.8	%
		189		2,595,058		100.0	%	$	47,109,565	$	18.15		100.0	%
Commercial Industrial
2011		2		8,064		0.3	%	$	32,292	$	4.00		0.4	%
2012		7		810,405		35.0	%		2,205,960		2.72		23.7	%
2013		2		142,185		6.2	%		685,357		4.82		7.4	%
2014		7		227,214		9.8	%		915,251		4.03		9.8	%
2015		3		116,685		5.1	%		536,907		4.60		5.8	%
2016 and thereafter		13		1,010,026		43.6	%		4,911,455		4.86		52.9	%
		34		2,314,579		100.0	%	$	9,287,222	$	4.01		100.0	%
Commercial Retail
2011		9		19,591		1.7	%	$	174,901	$	8.93		1.9	%
2012		45		309,900		27.4	%		1,684,466		5.44		18.1	%
2013		27		87,533		7.7	%		640,090		7.31		6.9	%
2014		28		102,678		9.1	%		998,612		9.73		10.7	%
2015		24		230,849		20.4	%		1,970,962		8.54		21.1	%
2016 and thereafter		33		381,928		33.7	%		3,845,481		10.07		41.3	%
		166		1,132,479		100.0	%	$	9,314,512	$	8.22		100.0	%
Commercial Total
2011		34		141,178		1.4	%	$	1,736,899	$	12.30		1.4	%
2012		145		1,987,606		19.8	%		16,625,035		8.36		13.7	%
2013		92		846,934		8.4	%		10,642,202		12.57		8.8	%
2014		107		1,323,542		13.2	%		16,973,788		12.82		14.0	%
2015		86		802,654		8.0	%		9,587,837		11.95		7.9	%
2016 and thereafter		207		4,931,099		49.2	%		65,771,219		13.34		54.2	%
		671		10,033,013		100.0	%	$	121,336,980	$	12.09		100.0	%

* Annualized Rent is monthly scheduled rent as of January 31, 2011 (cash basis), multiplied by 12.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 ACQUISITION SUMMARY

as of January 31, 2011

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			January 31, 2011 Leased Percentage			Acquisition Cost
Fargo 1320 45th Street N(1)	Fargo, ND	Commercial Industrial	June 22, 2010		42,244		100.0	%		100.0	%	$	1,634
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
Edgewood Vista-Minot	Minot, ND	Commercial Medical	November 10, 2010		108,503		100.0	%		100.0	%		15,181
Minot 1400 31st Avenue	Minot, ND	Commercial Retail	December 10, 2010		47,709		100.0	%		84.0	%		8,250
Omaha 10802 Farnum Drive	Omaha, NE	Commercial Office	December 16, 2010		58,574		100.0	%		98.6	%		8,295
Edgewood Vista-Spearfish(2)	Spearfish, SD	Commercial Medical	January 10, 2011		23,965		100.0	%		100.0	%		2,280
			Total Square Feet		310,340							$	40,885
			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.

(2)   Expansion project placed in service January10, 2011.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2011 DEVELOPMENT SUMMARY

as of January 31, 2011

($’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
Multi-Family Conversion - Minot, ND	Convert 15,446 sf. commercial office to 24 multi-family residential units		0	%		2,200		185	1st Quarter Fiscal 2012
Buffalo Mall Theaters - Jamestown, ND	19,037 sf.		100	%		2,100		746	1st Quarter Fiscal 2012
Georgetown Square Condos - Grand Chute, WI	8 condo units		0	%	NA			1,697	2nd Quarter Fiscal 2012
Trinity Hospital Build-to-Suit, Minot, ND	22,000 sf. one story medical clinic		100	%		6,200		1,294	1st Quarter Fiscal 2012
Senior Housing Memory Care Conversion, Cheyenne, WY	Convert portion of the building for a specialized memory care unit		100	%		309		309	4th Quarter Fiscal 2011
		Total			$	10,809	$	4,231

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Definitions

January 31, 2011

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 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.

Net Operating Income is total real estate revenues less real estate expenses and real estate taxes (which consist of utilities, maintenance, real estate taxes, insurance and property management expenses).

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.

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