ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Oct. 31, 2011

Notes To Financial Statements [Abstract]

ACQUISITIONS AND DISPOSITIONS

NOTE 8 . ACQUISITIONS AND DISPOSITIONS

PROPERTY ACQUISITIONS

During the second quarter of fiscal year 2012, the Company closed on or placed in-service the following acquisitions and development projects:

Minnesota Medical Office Property:  On October 13, 2011, the Company closed on its acquisition of an approximately 3,431 square foot medical office property located in Edina, Minnesota, for a purchase price of $505,000, of which $31,000 was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $474,000. This property adjoins an existing medical office property owned by the Company.

South Dakota Multi-Family Residential Properties:  On October 12, 2011, the Company closed on its acquisition of two multi-family residential properties in Sioux Falls, South Dakota, with 50 units and 24 units, respectively, for purchase prices of $4.7 million and $2.3 million, respectively, paid in cash.

Trinity at Plaza 16, Minot, North Dakota:  In September 2011, the Company completed construction of an approximately 24,795 square foot, one-story medical clinic for Trinity Health, a non-profit healthcare organization based in Minot, North Dakota, on land owned by the Company adjacent to the Company's former headquarters building in Minot.  Construction of this build-to-suit facility began in the second quarter of fiscal year 2011, with the project's certificate of occupancy issued on September 23, 2011. Total project costs (excluding the value of the land) were $8.9 million, of which, as of October 31, 2011, the Company had paid approximately $8.2 million. Estimated total costs disclosed in the Company's Quarterly Report on Form 10-Q for the quarter-ended July 31, 2011 were $7.4 million (excluding the value of the land). The cost increase of $1.5 million is due to tenant-requested changes to the project design; rising construction costs in Minot, North Dakota, due to flood-related and energy-related construction activity, and the allocation of overhead costs among adjacent properties.

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Industrial-Office Build-to-Suit, Minot, North Dakota:  On September 7, 2011, the Company closed on its acquisition of an approximately 9.6 acre parcel of vacant land located in Minot, North Dakota, zoned for commercial development, for a purchase price of  approximately $416,000, paid in cash.

Idaho Senior Housing Projects:  On September 1, 2011, the Company closed on its acquisition of seven senior housing projects located in Boise, Idaho and towns surrounding Boise, with a total of approximately 261 beds, for a total purchase price of approximately $33.8 million.  The Company placed mortgage debt of $9.5 million on these properties on September 1, 2011, and closed on an additional $6.6 million in mortgage loans on September 30, 2011. The remainder of the acquisition price was paid in cash. The estimated fair values of intangible assets acquired in the six months ended October 31, 2011 are provisional and are based on the information that was available as of the filing of the Company's Form 10-Q.   The Company  will continue to evaluate the purchase price allocation as better information becomes available. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable, but no later than one year from the respective acquisition dates

Meadow Wind Land, Casper, Wyoming:  On September 1, 2011, the Company closed on its acquisition of a small parcel of vacant land adjoining the Company's Meadow Wind assisted living facility in Casper, Wyoming.  The Company paid $50,000 for this parcel of approximately 0.39 acres.

Regency Park Estates, St. Cloud, Minnesota:  On August 1, 2011, the Company closed on its acquisition of the 147-unit Regency Park Estates multi-family residential property in St. Cloud, Minnesota, for a purchase price totaling $10.9 million, of which approximately $7.2 million consisted of the assumption of existing debt, with the remaining approximately $3.7 million paid in cash (approximately $2.2 million) and in limited partnership units of the Operating Partnership valued at approximately $1.5 million.

During the first quarter of fiscal year 2012, the Company substantially completed construction of a six-screen movie theater at its existing Buffalo Mall property in Jamestown, North Dakota, for a total cost of $2.2 million.  The Company had no acquisitions during the first quarter of fiscal year 2012.

During the second quarter of fiscal year 2011, the Company had no acquisitions or development projects placed in service.

During the first quarter of fiscal year 2011, IRET acquired, on July 15, 2010, two medical office buildings located in, respectively, Billings, Montana and Missoula, Montana, for a total purchase price of approximately $5.2 million, consisting of cash of approximately $957,000 and the assumption of existing debt with an interest rate of 7.06% and a maturity date of December 31, 2016 in the amount of approximately $4.3 million.  The two medical office buildings were each constructed in 2011, and contain approximately 14,705 square feet and 14,640 square feet of leasable space, respectively.  During the first quarter of fiscal year 2011, the Company completed construction of a single-tenant office/warehouse facility in Fargo, North Dakota.  The cost to construct the facility was approximately $3.9 million, including the cost of the land plus imputed construction interest.

The Company expensed approximately $426,000 and $57,000 of transaction costs related to acquisitions in the six months ended October 31, 2011 and 2010, respectively.  The Company's acquisitions and development projects placed in service during the six months ended October 31, 2011 and 2010 are detailed below:

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Six Months Ended October 31, 2011

	(in thousands)
Acquisitions and Development Projects Placed in Service	Land		Building		Intangible Assets		Acquisition Cost
Multi-Family Residential
147 unit - Regency Park Estates - St. Cloud, MN	$	702	$	10,198	$	0	$	10,900
50 unit - Cottage West Twin Homes - Sioux Falls, SD		1,005		3,725		0		4,730
24 unit - Gables Townhomes - Sioux Falls, SD		362		1,908		0		2,270
		2,069		15,831		0		17,900
Commercial Medical
17,273 sq. ft Spring Creek American Falls - American Falls, ID		137		3,409		524		4,070
15,571 sq. ft Spring Creek Soda Springs - Soda Springs, ID		66		2,122		42		2,230
15,559 sq. ft Spring Creek Eagle - Eagle, ID		250		3,191		659		4,100
31,820 sq. ft Spring Creek Meridian - Meridian, ID		428		5,499		1,323		7,250
26,605 sq. ft Spring Creek Overland - Boise, ID		656		5,001		1,068		6,725
16,311 sq. ft Spring Creek Boise - Boise, ID		711		4,236		128		5,075
26,605 sq. ft Spring Creek Ustick - Meridian, ID		467		3,833		0		4,300
Meadow Wind Land - Casper, WY		50		0		0		50
24,795 sq. ft Trinity at Plaza 16 - Minot, ND1		0		4,879		0		4,879
3,431 sq. ft Edina 6525 Drew Ave S - Edina, MN		416		89		0		505
		3,181		32,259		3,744		39,184
Commercial Retail
19,037 sq. ft. Jamestown Buffalo Mall - Jamestown, ND2		0		781		0		781
Unimproved Land
Industrial-Office Build-to-Suit - Minot, ND		416		0		0		416
Total Property Acquisitions	$	5,666	$	48,871	$	3,744	$	58,281

(1)   Development property placed in service September 23, 2011. Additional costs paid in fiscal year 2011 totaled $3.3 million, for a total project cost at October 31, 2011 of $8.2 million.

(2)   Construction project placed in service June 15, 2011. Approximately $17,000 of this cost was paid in the three months ended October 31, 2011. Additional costs paid in fiscal year 2011 totaled $1.4 million, for a total project cost at October 31, 2011 of $2.2 million.

Six Months Ended October 31, 2010

	(in thousands)
Acquisitions and Development Projects Placed in Service	Land		Building		Intangible Assets		Acquisition Cost
Commercial Medical
14,705 sq. ft. Billings 2300 Grant Road - Billings, MT	$	649	$	1,216	$	657	$	2,522
14,640 sq. ft. Missoula 3050 Great Northern - Missoula, MT		640		1,331		752		2,723
		1,289		2,547		1,409		5,245
Commercial Industrial
42,244 sq. ft. Fargo 1320 45th St N - Fargo, ND1		0		1,634		0		1,634
Total Property Acquisitions	$	1,289	$	4,181	$	1,409	$	6,879

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

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PROPERTY DISPOSITIONS

During the second quarter of fiscal year 2012, on August 1, 2011, the Company sold a small retail property in Livingston, Montana, for a sale price of approximately $2.2 million, with approximately $1.2 million of the sale proceeds applied to pay off the outstanding mortgage loan balance on the property.  During the second quarter of fiscal year 2011, the Company sold a small retail property in Ladysmith, Wisconsin, on September 2, 2010; a patio home property in Fargo, North Dakota on September 30, 2010; and the Company's 504-unit Dakota Hill at Valley Ranch Apartments in Irving, Texas on October 26, 2010, for a total sales price of $36.8 million. There were no dispositions in the first quarter of fiscal years 2012 and 2011.  The following table details the Company's dispositions during the six months ended October 31, 2011 and 2010:

Six Months Ended October 31, 2011

	(in thousands)
Dispositions	Sales Price		Book Value and Sales Cost		Gain/(Loss)
Commercial Retail
41,200 sq ft. Livingstone Pamida - Livingston, MT	$	2,175	$	1,586	$	589
Total Property Dispositions	$	2,175	$	1,586	$	589

Six Months Ended October 31, 2010

	(in thousands)
Dispositions	Sales Price		Book Value and Sales Cost		Gain/(Loss)
Multi-Family Residential
504 unit - Dakota Hill at Valley Ranch - Irving, TX	$	36,100	$	30,674	$	5,426
Commercial Medical
1,410 sq ft. Edgewood Vista Patio Home 4330 - Fargo, ND		205		220		(15	)
Commercial Retail
41,000 sq ft. Ladysmith Pamida - Ladysmith, WI		450		457		(7	)
Total Property Dispositions	$	36,755	$	31,351	$	5,404