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):

June 29, 2012

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.)

1400 31st Avenue SW, Suite 60

Post Office Box 1988

Minot, ND 58702-1988

(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 June 29, 2012, regarding financial and operational results for the three and twelve months ended April 30, 2012, 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 June 29, 2012, regarding financial and operational results for the three and twelve months ended April 30, 2012
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: June 29, 2012

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER AND FISCAL YEAR ENDED APRIL 30, 2012

Minot, ND – June 29, 2012 – Investors Real Estate Trust (tickers: IRET and IRETP; exchange: NASDAQ Global Select Market) reportedfinancial and operating results today for the quarter and fiscal year ended April 30, 2012.

During the three month period ended April 30, 2012, IRET’s revenues increased from the year-earlier period. Funds From Operations (FFO)1 overall and on a per share and unit basis increased for the three month period ended April 30, 2012 compared to the same period of the prior fiscal year.  Net income increased from the year-earlier period.  Included in fourth quarter fiscal 2012 net income were proceeds from the settlement in the fourth quarter of a claim made in fiscal year 2009 against the bankruptcy estate of a former tenant; a gain on involuntary conversion from the receipt of insurance proceeds for the redevelopment of our Arrowhead Shopping Center property following the severe flood in Minot, North Dakota in June 2011;  and insurance proceeds for loss of rents at our Arrowhead and Chateau Apartments properties as a result of the June 2011 flood.

For the three month period ended April 30, 2012, as compared to the same period of the prior fiscal year:

• Revenues increased to $60.6 million from $59.0 million.

• FFO increased to $19.1 million on approximately 107,316,000 weighted average shares and units outstanding, from $14.7 million on approximately 100,239,000 weighted average shares and units outstanding ($.18 per share and unit compared to $.15 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $2.8 million compared to a net loss of $149,000 in the same period of the prior fiscal year.

• Total expenses decreased by $3.4 million, or 7.8%, in the three months ended April 30, 2012 compared to the three months ended April 30, 2011, from $43.3 million to $39.9 million.

During the twelve month period ended April 30, 2012, IRET’s revenues increased from the year-earlier period. FFO overall and on a per share and unit basis increased for the twelve month period ended April 30, 2012 compared to the same period of the prior fiscal year.  Net income decreased from the year-earlier period, primarily due to the decrease in gain on sale of discontinued operations in the twelve month period ended April 30, 2012, compared to the twelve month period ended April 30, 2011.

For the twelve month period ended April 30, 2012, as compared to the same period of the prior fiscal year:

• Revenues increased to $241.8 million from $237.0 million.

• FFO increased to $67.3 million on approximately 103,432,000 weighted average shares and units outstanding, from $62.2 million on approximately 98,782,000 weighted average shares and units outstanding ($.65 per share and unit compared to $.63 per share and unit).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $5.8 million compared to $17.7 million in the same period of the prior fiscal year.

• Total expenses decreased by $1.3 million, or 0.8%, in the twelve months ended April 30, 2012 compared to the twelve months ended April 30, 2011, from $169.2 million to $167.8 million.

IRET’s President and Chief Executive Officer, Timothy Mihalick, commented: “During fiscal year 2012 we continued to see in our operating results the effects of a slowly recovering economy, particularly in our commercial office segment. However, we consider our entire commercial portfolio well-placed to benefit as the economy does recover. Our multi-family residential segment continued its strong performance in the fourth quarter. As we have previously noted, acquisition and development opportunities remain numerous, particularly in our home market of North Dakota, where production from the Bakken energy field recently resulted in North Dakota becoming the nation’s second-leading oil producer, ahead of Alaska and behind only Texas. During fiscal year 2013, we will continue to focus on acquisitions and development projects in our targeted core markets, and on identifying properties for disposition in order to consolidate our geographic footprint.  Consistent with this focus, I would note our recent exit from the Michigan market with the sale, subsequent to the end of our fiscal 2012 fourth quarter, of our Kentwood Thomasville Furniture property in Kentwood, Michigan.”

______________________________

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.”  In addition, NAREIT recently clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure. We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes 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 increased approximately $3.5 million or 11.0% during the three month period ended April 30, 2012, compared to the same period one year ago. NOI from stabilized properties decreased in one of our five segments, with NOI decreasing by 2.3% in our commercial medical segment, and increasing in our multi-family residential, commercial office, commercial industrial and commercial retail segments by 15.6%, 3.2%, 65.5% and 50.1%, respectively, primarily due to increased occupancy in our multi-family residential, commercial industrial and commercial retail segments.  NOI from all properties increased by $5.3 million during the three month period ended April 30, 2012, compared to the same period one year ago. NOI from all properties increased in all of our five segments.   The increase is primarily due to increased occupancy in our multi-family residential, commercial industrial and commercial retail segments.

NOI from stabilized properties decreased approximately $3.4 million or 2.6% during the twelve month period ended April 30, 2012, compared to the same period one year ago. NOI from stabilized properties decreased by 6.4% and 4.1%, respectively, in our commercial office and commercial medical segments, with NOI increasing in our multi-family residential, commercial industrial and commercial retail segments by 16.5%, 22.0%  and 8.0%, respectively, primarily due to increased occupancy.  NOI from all properties increased by $8.6 million during the twelve month period ended April 30, 2012, compared to the same period one year ago. NOI from all properties increased in four of our five segments. NOI in our commercial office segment, however, decreased 5.2% due to increased vacancy, compared to the twelve month period ended April 30, 2011.

As of April 30, 2012, compared to April 30, 2011, physical occupancy levels on a stabilized property basis and on an 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 April 30,		As of  April 30,
Segments	Fiscal 2012	Fiscal 2011	Fiscal 2012	Fiscal 2011
Multi-Family Residential	94.2%	92.8%	93.7%	92.8%
Commercial Office	78.4%	79.5%	78.6%	79.7%
Commercial Medical	93.8%	95.8%	94.5%	96.0%
Commercial Industrial	95.4%	90.0%	95.5%	90.1%
Commercial Retail	86.6%	83.2%	87.1%	82.2%

a. As of April 30, 2012, stabilized properties excluded:

Multi-Family Residential - Ashland, Grand Forks, ND; Chateau, Minot, ND; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; North Pointe II, Bismarck, ND; Regency Park Estates, St Cloud, MN; Sierra Vista, Sioux Falls, SD and Williston Garden, Williston, ND.

Total number of units, 629 Occupancy % for April 30, 2012 is 86.8%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for April 30, 2012 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND; Edina 6525 Drew Avenue, Edina, MN; Missoula 3050 Great Northern Avenue, Missoula, MT; Spring Creek American Falls, American Falls, ID; Spring Creek Soda Springs, Soda Springs, ID; Spring Creek Eagle, Eagle, ID; Spring Creek Meridian, Meridian, ID; Spring Creek Overland, Boise, ID; Spring Creek Boise, Boise, ID; Spring Creek Ustick, Meridian, ID and Trinity at Plaza 16, Minot, ND.

Total square footage, 315,818. Occupancy % for April 30, 2012 is 99.9%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2012 is 100.0%.

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

Total square footage, 48,960 Occupancy % for April 30, 2012 is 100.0%.

As of April 30, 2011, stabilized properties excluded:

Multi-Family Residential - Chateau, Minot, ND; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132 Occupancy % for April 30, 2011 is 93.9%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for April 30, 2011 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND and Missoula 3050 Great Northern Avenue, Missoula, MT  .

Total square footage, 137,848. Occupancy % for April 30, 2011 is 100.0%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2011 is 100.0%.

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

Total square footage, 47,709 Occupancy % for April 30, 2011 is 53.6%.

______________________________

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 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 fourth quarter of fiscal year 2012, the Company acquired two multi-family residential properties and a parcel of vacant land, as follows: on February 16, 2012, the Company closed on its acquisition of the 116-unit Grand Gateway Apartments in St. Cloud, Minnesota, for a total purchase price of $7.9 million, of which approximately $3.4 million was paid in cash and the remainder in limited partnership units of the Company’s Operating Partnership valued at issuance at approximately $4.5 million; on March 16, 2012, the Company acquired the 84-unit Ashland Apartments in Grand Forks, North Dakota, for $8.3 million, of which approximately $7.2 million was paid in cash and the remainder in limited partnership units of the Operating Partnership, valued at issuance at approximately $1.1 million; and on April 11, 2012, a joint venture entity of which the Company owns 60% closed on the acquisition of a 40-acre parcel of vacant land in Williston, North Dakota, for a total purchase price of approximately $4.6 million, of which the Company paid approximately $3.2 million. This parcel of land has been approved for multi-family development with the potential to accommodate up to 850 units. Additionally, during the fourth quarter of fiscal year 2012, on April 27, 2012, the Company placed in service buildings 1 and 2 of its 4-building Williston Garden multi-family residential project in Williston, North Dakota. The Company is a 60% partner in the joint venture entity constructing this property.

During the fourth quarter of fiscal year 2012, on March 13, 2012, the Company sold a small retail property in East Grand Forks, Minnesota, for a sales price of approximately $1.1 million.

Shareholder Equity, Distributions and Capital Structure

As of April 30, 2012, 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.

On April 2, 2012, IRET paid a quarterly distribution of $0.1300 per share and unit on its common shares and limited partnership units of IRET Properties. This was IRET’s 164th consecutive distribution. IRET also paid, on April 2, 2012, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

Distribution Declared.  Subsequent to the end of the fourth quarter of fiscal year 2012, on June 1, 2012, the Company’s Board of Trustees declared a regular quarterly distribution of $0.1300 per share and unit on the Company’s common shares of beneficial interest and the limited partnership units of IRET Properties, payable July 2, 2012 to common shareholders and unitholders of record on June 15, 2012. Also on June 1, 2012, the Company’s Board of Trustees’ declared a distribution of $0.5156 per share on the Company’s preferred shares of beneficial interest, payable July 2, 2012 to preferred shareholders of record on June 15, 2012.

Conference Call Information

The Conference Call for4th Quarter Earnings is scheduled for Monday, July 2, 2012 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/Presentations” 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 84 multi-family residential properties with 9,161 apartment units; and 68 commercial office properties, 65 commercial medical properties (including senior housing), 19 commercial industrial properties and 30 commercial retail properties with a total of approximately 12.3 million square feet of leasable space.  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: intentions and expectations regarding future distributions on our common shares and units, 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 2011 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)
	April 30, 2012			April 30, 2011
ASSETS
Real estate investments
Property owned	$	1,892,009		$	1,770,798
Less accumulated depreciation		(373,490	)		(328,952	)
		1,518,519			1,441,846
Development in progress		27,599			9,693
Unimproved land		10,990			6,550
Mortgage loans receivable, net of allowance of $0 and $3, respectively		0			156
Total real estate investments		1,557,108			1,458,245
Real estate held for sale		2,067			0
Cash and cash equivalents		39,989			41,191
Other investments		634			625
Receivable arising from straight-lining of rents, net of allowance of $1,209 and $996, respectively		23,273			18,933
Accounts receivable, net of allowance of $154 and $317, respectively		7,052			5,646
Real estate deposits		263			329
Prepaid and other assets		3,703			2,351
Intangible assets, net of accumulated amortization of $47,813 and $42,154, respectively		44,588			49,832
Tax, insurance, and other escrow		11,669			15,268
Property and equipment, net of accumulated depreciation of $1,423 and $1,231, respectively		1,454			1,704
Goodwill		1,120			1,127
Deferred charges and leasing costs, net of accumulated amortization of $16,244 and $13,675, respectively		21,447			20,112
TOTAL ASSETS	$	1,714,367		$	1,615,363
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	47,403		$	37,879
Revolving line of credit		39,000			30,000
Mortgages payable		1,048,689			993,803
Other		14,012			8,404
TOTAL LIABILITIES		1,149,104			1,070,086
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		0			987
EQUITY
Investors Real Estate Trust shareholder’s equity
Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at April 30, 2012 and April 30, 2011, aggregate liquidation preference of $28,750,000)		27,317			27,317
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 89,473,838 shares issued and outstanding at April 30, 2012, and 80,523,265 shares issued and outstanding at April 30, 2011)		684,049			621,936
Accumulated distributions in excess of net income		(278,377	)		(237,563	)
Total Investors Real Estate Trust shareholders’ equity		432,989			411,690
Noncontrolling interests – Operating Partnership (20,332,415 units at April 30, 2012 and 20,067,350 units at April 30, 2011)		118,710			123,627
Noncontrolling interests – consolidated real estate entities		13,564			8,973
Total equity		565,263			544,290
TOTAL LIABILITIES AND EQUITY	$	1,714,367		$	1,615,363

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three and twelve months ended April 30, 2012 and 2011

	(in thousands, except per share data)
	Three Months Ended April 30						Twelve Months Ended April 30
	2012			2011			2012			2011
REVENUE
Real estate rentals	$	49,939		$	48,828		$	198,859		$	192,023
Tenant reimbursement		10,682			10,198			42,929			44,931
TOTAL REVENUE		60,621			59,026			241,788			236,954
EXPENSES
Depreciation/amortization related to real estate investments		14,389			14,219			57,048			55,706
Utilities		4,244			5,046			17,628			18,224
Maintenance		6,412			7,235			26,578			29,212
Real estate taxes		8,248			7,779			31,746			30,799
Insurance		1,001			437			3,550			2,299
Property management expenses		2,946			5,750			18,776			21,268
Administrative expenses		1,338			1,562			6,694			6,617
Advisory and trustee services		99			123			687			605
Other expenses		389			408			1,898			1,747
Amortization related to non-real estate investments		821			702			3,216			2,679
TOTAL EXPENSES		39,887			43,261			167,821			169,156
Gain on involuntary conversion		274			0			274			0
Interest expense		(16,430	)		(15,581	)		(65,113	)		(63,820	)
Interest income		33			65			148			259
Other income		108			65			638			282
Income from continuing operations		4,719			314			9,914			4,519
(Loss) income from discontinued operations		(598	)		(4	)		(208	)		19,832
NET INCOME		4,121			310			9,706			24,351
Net (income) loss attributable to noncontrolling interests – Operating Partnership		(636	)		36			(1,359	)		(4,449	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(106	)		98			(135	)		180
Net income attributable to Investors Real Estate Trust		3,379			444			8,212			20,082
Dividends to preferred shareholders		(593	)		(593	)		(2,372	)		(2,372	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,786		$	(149	)	$	5,840		$	17,710
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic and diluted		.04			(.01	)		.07			.02
(Loss) earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		(.01	)		.00			.00			.20
NET INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED	$	.03		$	(.01	)	$	.07		$	.22
DIVIDENDS PER COMMON SHARE	$	.1300		$	.1715		$	.5615		$	.6860

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 twelve months ended April 30, 2012 and 2011

	(in thousands, except per share amounts)
Three Months Ended April 30,	2012									2011
	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		$	3,379								$	444
Less dividends to preferred shareholders			(593	)								(593	)
Net income (loss) available to common shareholders			2,786			87,031		$	0.03			(149	)		80,143		$	(0.01	)
Adjustments:
Noncontrolling interest – Operating Partnership			636			20,285						(36	)		20,096
Depreciation and amortization(1)			15,165									14,877
Real estate impairment			293
Loss on depreciable property sales			240									0
Funds from operations applicable to common shares and Units		$	19,120			107,316		$	0.18			14,692			100,239		$	0.15

	(in thousands, except per share amounts)
Twelve Months Ended April 30,	2012									2011
	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		$	8,212								$	20,082
Less dividends to preferred shareholders			(2,372	)								(2,372	)
Net income available to common shareholders			5,840			83,557		$	0.07			17,710			78,628		$	0.22
Adjustments:
Noncontrolling interest – Operating Partnership			1,359			19,875						4,449			20,154
Depreciation and amortization(4)			60,057									59,402
Real estate impairment			428									0
Gain on depreciable property sales			(349	)								(19,365	)
Funds from operations applicable to common shares and Units		$	67,335			103,432		$	0.65			62,196			98,782		$	0.63

(1) Real estate depreciation and amortization consists of the sum of depreciation/amortization related to real estate investments and amortization related to non-real estate investments from the Condensed Consolidated Statements of Operations, totaling $15,210 and $14,921, and depreciation/amortization from Discontinued Operations of $2 and $26, less corporate-related depreciation and amortization on office equipment and other assets of $47 and $70, for the three months ended April 30, 2012 and 2011, respectively.

(2) UPREIT Units of the Operating Partnership are exchangeable for cash, or, at the Company’s discretion, 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 $60,264 and $58,385, and depreciation/amortization from Discontinued Operations of $60  and $1,289, less corporate-related depreciation and amortization on office equipment and other assets of $267 and $272, for the twelve months ended April 30, 2012 and 2011, respectively.

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and twelve months ended April 30, 2012 and 2011

	(in thousands)
Three Months Ended April 30, 2012	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	19,491	$	18,611	$	15,232	$	3,728	$	3,559	$	60,621
Real estate expenses			8,999		8,365		3,946		371		1,170		22,851
Gain on involuntary conversion			0		0		0		0		274		274
Net operating income		$	10,492	$	10,246	$	11,286	$	3,357	$	2,663		38,044
Depreciation/amortization													(15,210	)
Administrative, advisory and trustee services													(1,437	)
Other expenses													(389	)
Interest expense													(16,430	)
Interest and other income													141
Income from continuing operations													4,719
Loss from discontinued operations													(598	)
Net income												$	4,121

	(in thousands)
Three Months Ended April 30, 2011	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	17,242	$	18,908	$	16,501	$	3,275	$	3,100	$	59,026
Real estate expenses			8,882		8,973		5,904		1,205		1,283		26,247
Net operating income		$	8,360	$	9,935	$	10,597	$	2,070	$	1,817		32,779
Depreciation/amortization													(14,921	)
Administrative, advisory and trustee services													(1,685	)
Other expenses													(408	)
Interest expense													(15,581	)
Interest and other income													130
Income from continuing operations													314
Loss from discontinued operations													(4	)
Net income												$	310

	(in thousands)
Twelve Months Ended April 30, 2012	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	74,190	$	74,334	$	65,531	$	14,325	$	13,408	$	241,788
Real estate expenses			34,790		34,816		20,655		3,549		4,468		98,278
Gain on involuntary conversion			0		0		0		0		274		274
Net operating income		$	39,400	$	39,518	$	44,876	$	10,776	$	9,214		143,784
Depreciation/amortization													(60,264	)
Administrative, advisory and trustee services													(7,381	)
Other expenses													(1,898	)
Interest expense													(65,113	)
Interest and other income													786
Income from continuing operations													9,914
Loss from discontinued operations													(208	)
Net income												$	9,706

	(in thousands)
Twelve Months Ended April 30, 2011	Multi-Family Residential			Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue		$	66,838	$	77,747	$	66,048	$	13,165	$	13,156	$	236,954
Real estate expenses			34,129		36,055		22,451		4,328		4,839		101,802
Net operating income		$	32,709	$	41,692	$	43,597	$	8,837	$	8,317		135,152
Depreciation/amortization													(58,385	)
Administrative, advisory and trustee services													(7,222	)
Other expenses													(1,747	)
Interest expense													(63,820	)
Interest and other income													541
Income from continuing operations													4,519
Income from discontinued operations													19,832
Net income												$	24,351

vii

EX-99.2

Exhibit 99.2

Fourth Quarter Fiscal 2012

Supplemental Operating and Financial Data

for the Quarter Ended April 30, 2012

CONTACT: Lindsey Knoop-Anderson Director of Investor Relations Direct Dial: 701-837-4738 E-Mail: landerson@iret.com 1400 31st Avenue SW, Suite 60 Minot, ND 58701 Tel: 701.837.4738 Fax: 701.838.7785 www.iret.com

Supplemental Financial and Operating Data

Table of Contents

April 30, 2012

	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	11-13
Capital Analysis	14
Portfolio Analysis
Stabilized Properties Net Operating Income Summary	15
Net Operating Income Detail	16-19
Stabilized Properties and Overall Physical Occupancy Levels by Segment	20
Tenant Analysis
Commercial Leasing Summary	21-22
Multi-Family Residential Summary	23
10 Largest Commercial Tenants - Based on Annualized Base Rent	24
Lease Expirations as of April 30, 2012	25
Growth and Strategy
Fiscal 2012 Acquisition Summary	26
Fiscal 2012 Development Summary	27
Definitions	28

1

Company Background and Highlights

Fourth Quarter Fiscal 2012

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 fourth quarter of fiscal year 2012, the Company acquired two multi-family residential properties and a parcel of vacant land, as follows: on February 16, 2012, the Company closed on its acquisition of the 116-unit Grand Gateway Apartments in St. Cloud, Minnesota, for a total purchase price of $7.9 million, of which approximately $3.4 million was paid in cash and the remainder in limited partnership units of the Company’s Operating Partnership valued at issuance at approximately $4.5 million; on March 16, 2012, the Company acquired the 84-unit Ashland Apartments in Grand Forks, North Dakota, for $8.3 million, of which approximately $7.2 million was paid in cash and the remainder in limited partnership units of the Operating Partnership, valued at issuance at approximately $1.1 million; and on April 11, 2012, a joint venture entity of which the Company owns 60% closed on the acquisition of a 40-acre parcel of vacant land in Williston, North Dakota, for a total purchase price of approximately $4.6 million, of which the Company paid approximately $3.2 million. This parcel of land has been approved for multi-family development with the potential to accommodate up to 850 units. During the fourth quarter of fiscal year 2012, on March 13, 2012, the Company sold a small retail property in East Grand Forks, Minnesota, for a sales price of approximately $1.1 million.

The Company’s revenues in the fourth quarter of fiscal year 2012 continued to be affected by decreased occupancy levels in its commercial office segment, in comparison with the year-earlier period. Despite some signs of economic recovery and renewed commercial leasing interest, the Company believes the continued elevated vacancy in its commercial office segment reflects continuing challenging and uncertain economic conditions in certain of the Company’s markets. IRET’s multi-family residential portfolio continued to improve in occupancy and real estate revenue compared to the year-earlier period.

The Company has a currently-effective shelf registration statement under which it has registered common and preferred shares of beneficial interest with an aggregate public offering price of up to $150.0 million. On January 20, 2012, the Company entered into a continuous equity offering program under this shelf registration statement with BMO Capital Markets Corp. (“BMO”) as sales agent, pursuant to which the Company may from time to time offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $100 million. Sales of common shares, if any, under the program will depend upon market conditions and other factors to be determined by IRET.  During the fourth quarter of fiscal year 2012, IRET issued approximately 2.9 million common shares under this program for total proceeds (before offering expenses but after underwriting discounts and commissions) of $21.4 million.

As we have previously reported, Minot, North Dakota, where our corporate headquarters is located, experienced significant flooding in June 2011, resulting in extensive damage to our Arrowhead Shopping Center and Chateau Apartments. Costs related to clean-up, redevelopment and loss of rents are being reimbursed to the Company by its insurance carrier, less the Company’s deductible of $200,000 under the policy.  As of April 30, 2012, the Company had received or confirmed pending receipt of $5.7 million of insurance proceeds for clean-up costs and re-development and approximately $666,000 reimbursement for business interruption (loss of rents).

In the fourth quarter of fiscal year 2012, IRET paid its 164th consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on April 2, 2012. Subsequent to the end of the fourth quarter of fiscal year 2012, the Company declared a quarterly distribution of $0.1300 per share and unit payable on July 2, 2012 to shareholder and unitholders of record on June 15, 2012. The Board of Trustees also declared a quarterly distribution of $0.5156 per share on the Company’s Series A preferred shares, payable July 2, 2012 to preferred shareholders of record on June 15, 2012.

As of April 30, 2012, IRET owns a diversified portfolio of 266 properties consisting of 84 multi-family residential properties, 68 commercial office properties, 65 commercial medical properties (including senior housing), 19 commercial industrial properties and 30 commercial retail properties.  IRET’s shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).

2

Company Snapshot

(as of April 30, 2012)

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	266
Total Square Feet
(commercial properties)	12.3 million
Total Units
(multi-family residential properties)	9,161
Common Shares Outstanding (thousands)	89,474
Limited Partnership Units Outstanding (thousands)	20,332
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	7.2%
Total Capitalization (see p. 14 for detail)	$1.9 billion

Investor Information

Board of Trustees

Jeffrey L. Miller	Trustee and Chairman
Stephen L. Stenehjem	Trustee and Vice Chairman
John D. Stewart	Trustee, Chair of Audit Committee
John T. Reed	Trustee, Chair of Nominating and Governance Committee
W. David Scott	Trustee, Chair of Compensation Committee
Jeffrey K. Woodbury	Trustee
Linda Hall Keller	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	Executive Vice President and Chief Operating Officer; Trustee
Diane K. Bryantt	Executive Vice President and Chief Financial Officer
Michael A. Bosh	Executive Vice President, General Counsel and Assistant Secretary
Mark Reiling	Executive Vice President of Asset Management
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Ted E. Holmes	Senior Vice President, Finance
Andrew Martin	Senior Vice President, Residential Property Management

Corporate Headquarters:

1400 31st Avenue SW, Suite 60

Post Office Box 1988

Minot, North Dakota 58702-1988

Trading Symbol:  IRET

Stock Exchange Listing:  NASDAQ

Investor Relations:

Lindsey Knoop-Anderson

landerson@iret.com

3

Common Share Data (NASDAQ: IRET)

	4th Quarter Fiscal Year 2012			3rd Quarter Fiscal Year 2012			2nd Quarter Fiscal Year 2012			1st Quarter Fiscal Year 2012			4th Quarter Fiscal Year 2011
High Closing Price	$	7.97		$	7.64		$	8.12		$	9.69		$	9.54
Low Closing Price	$	7.22		$	6.89		$	6.92		$	8.07		$	8.92
Average Closing Price	$	7.56		$	7.27		$	7.46		$	8.87		$	9.24
Closing Price at end of quarter	$	7.22		$	7.42		$	7.41		$	8.13		$	9.41
Common Share Distributions—annualized	$	0.520		$	0.520		$	0.520		$	0.686		$	0.686
Closing Dividend Yield - annualized		7.2	%		7.0	%		7.0	%		8.4	%		7.3	%
Closing common shares outstanding (thousands)		89,474			85,744			83,682			81,259			80,523
Closing limited partnership units outstanding (thousands)		20,332			19,596			19,534			19,958			20,068
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	792,799		$	781,623		$	764,831		$	822,894		$	946,561

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: intentions and expectations regarding future distributions on our common shares and units, 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 2011Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Fourth Quarter Fiscal 2012 Acquisitions

Grand Gateway Apartment Homes 4005 24th Street South St. Cloud,MN56301	Ashland Apartment Homes 2151 36th Avenue S. Grand Forks,ND

4

Investment Cost by Segment – Fourth Quarter Fiscal 2012

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)

	04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
ASSETS
Real estate investments
Property owned	$	1,892,009		$	1,861,321		$	1,844,654		$	1,777,485		$	1,770,798
Less accumulated depreciation		(373,490	)		(364,190	)		(351,174	)		(339,293	)		(328,952	)
		1,518,519			1,497,131			1,493,480			1,438,192			1,441,846
Development in progress		27,599			22,281			14,124			12,697			9,693
Unimproved land		10,990			6,390			6,558			6,550			6,550
Mortgage loans receivable, net of allowance		0			0			155			156			156
Total real estate investments		1,557,108			1,525,802			1,514,317			1,457,595			1,458,245
Real estate held for sale		2,067			0			0			0			0
Cash and cash equivalents		39,989			35,502			32,697			37,307			41,191
Other investments		634			633			628			627			625
Receivable arising from straight-lining of rents, net of allowance		23,273			21,965			20,905			19,331			18,933
Accounts receivable, net of allowance		7,052			3,977			8,243			7,935			5,646
Real estate deposits		263			578			451			458			329
Prepaid and other assets		3,703			4,107			1,718			1,997			2,351
Intangible assets, net of accumulated amortization		44,588			49,055			50,322			48,108			49,832
Tax, insurance, and other escrow		11,669			11,427			11,315			15,198			15,268
Property and equipment, net of accumulated depreciation		1,454			1,464			1,986			1,687			1,704
Goodwill		1,120			1,120			1,127			1,127			1,127
Deferred charges and leasing costs, net of accumulated amortization		21,447			22,014			21,255			20,304			20,112
TOTAL ASSETS	$	1,714,367		$	1,677,644		$	1,664,964		$	1,611,674		$	1,615,363
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	47,403		$	43,439		$	39,002		$	34,547		$	37,879
Revolving line of credit		39,000			49,000			47,000			34,000			30,000
Mortgages payable		1,048,689			1,038,717			1,039,625			1,002,962			993,803
Other		14,012			6,326			1,164			6,369			8,404
TOTAL LIABILITIES		1,149,104			1,137,482			1,126,791			1,077,878			1,070,086
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		0			0			1,005			1,263			987
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		684,049			657,304			643,022			627,722			621,936
Accumulated distributions in excess of net income		(278,377	)		(269,942	)		(260,535	)		(250,585	)		(237,563	)
Total Investors Real Estate Trust shareholders’ equity		432,989			414,679			409,804			404,454			411,690
Noncontrolling interests – Operating Partnership		118,710			114,852			116,550			119,382			123,627
Noncontrolling interests – consolidated real estate entities		13,564			10,631			10,814			8,697			8,973
Total equity		565,263			540,162			537,168			532,533			544,290
TOTAL LIABILITIES AND EQUITY	$	1,714,367		$	1,677,644		$	1,664,964		$	1,611,674		$	1,615,363

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Twelve Months Ended						Three Months Ended
OPERATING RESULTS	04/30/2012			04/30/2011			04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
Real estate revenue	$	241,788		$	236,954		$	60,621		$	60,981		$	60,629		$	59,557		$	59,026
Real estate expenses		98,278			101,802			22,851			24,807			25,761			24,859			26,247
Gain on involuntary conversion		274			0			274			0			0			0			0
Net operating income		143,784			135,152			38,044			36,174			34,868			34,698			32,779
Depreciation/amortization		(60,264	)		(58,385	)		(15,210	)		(15,245	)		(14,936	)		(14,873	)		(14,921	)
Administrative expenses, advisory and trustee services		(7,381	)		(7,222	)		(1,437	)		(1,659	)		(2,104	)		(2,181	)		(1,685	)
Other expenses		(1,898	)		(1,747	)		(389	)		(359	)		(835	)		(315	)		(408	)
Interest		(65,113	)		(63,820	)		(16,430	)		(16,511	)		(16,291	)		(15,881	)		(15,581	)
Interest and other income		786			541			141			279			213			153			130
Income from continuing operations		9,914			4,519			4,719			2,679			915			1,601			314
(Loss) income from discontinued operations		(208	)		19,832			(598	)		(158	)		576			(28	)		(4	)
Net income	$	9,706		$	24,351		$	4,121		$	2,521		$	1,491		$	1,573		$	310
Net (income) loss attributable to noncontrolling interest – Operating Partnership		(1,359	)		(4,449	)		(636	)		(351	)		(194	)		(178	)		36
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(135	)		180			(106	)		(43	)		(12	)		26			98
Net income attributable to Investors Real Estate Trust		8,212			20,082			3,379			2,127			1,285			1,421			444
Dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	5,840		$	17,710		$	2,786		$	1,534		$	692		$	828		$	(149	)
Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.07		$	.02		$	.04		$	.02		$	.00		$	.01		$	(.01	)
Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.00			.20			(.01	)		.00			.01			.00			.00
Net income (loss) per common share – basic & diluted	$	.07		$	.22		$	.03		$	.02		$	.01		$	.01		$	(.01	)
Percentage of Revenues
Real estate expenses		40.6	%		43.0	%		37.7	%		40.7	%		42.5	%		41.7	%		44.5	%
Depreciation/amortization		24.9	%		24.6	%		25.1	%		25.0	%		24.6	%		25.0	%		25.3	%
General and administrative		3.1	%		3.0	%		2.4	%		2.7	%		3.5	%		3.7	%		2.9	%
Interest		26.9	%		26.9	%		27.1	%		27.1	%		26.9	%		26.7	%		26.4	%
Net income		4.0	%		10.3	%		6.8	%		4.1	%		2.5	%		2.6	%		0.5	%
Ratios
EBITDA(1)/Interest expense		2.06	x		1.99	x		2.17	x		2.07	x		1.97	x		2.03	x		1.98	x
EBITDA/Interest expense plus preferred distributions		1.99	x		1.92	x		2.09	x		2.00	x		1.90	x		1.95	x		1.91	x

(1) See Definitions on page 28.  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)

	Twelve Months Ended						Three Months Ended
	04/30/2012			04/30/2011			04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	8,212		$	20,082		$	3,379		$	2,127		$	1,285		$	1,421		$	444
Less dividends to preferred shareholders		(2,372	)		(2,372	)		(593	)		(593	)		(593	)		(593	)		(593	)
Net income (loss) available to common shareholders		5,840			17,710			2,786			1,534			692			828			(149	)
Adjustments:
Noncontrolling interests – Operating Partnership		1,359			4,449			636			351			194			178			(36	)
Depreciation and amortization		60,057			59,402			15,165			15,179			14,890			14,823			14,877
Real estate impairment		428			0			293			135			0			0			0
(Gain) loss on depreciable property sales		(349	)		(19,365	)		240			0			(589	)		0			0
Funds from operations applicable to common shares and Units	$	67,335		$	62,196		$	19,120		$	17,199		$	15,187		$	15,829		$	14,692
FFO per share and unit - basic and diluted	$	0.65		$	0.63		$	0.18		$	0.16		$	0.15		$	0.16		$	0.15
Adjusted funds from operations(1)
Funds from operations applicable to common shares and Units	$	67,335		$	62,196		$	19,120		$	17,199		$	15,187		$	15,829		$	14,692
Adjustments:
Tenant improvements		(10,309	)		(9,435	)		(4,846	)		(2,007	)		(2,021	)		(1,435	)		(2,013	)
Leasing commissions		(2,773	)		(3,075	)		701			(1,589	)		(1,182	)		(703	)		(29	)
Recurring capital expenditures(1)		(6,703	)		(5,481	)		(1,451	)		(1,411	)		(1,872	)		(1,969	)		(1,291	)
Straight-line rents		(4,384	)		(1,648	)		(1,330	)		(1,059	)		(1,597	)		(398	)		(276	)
Non-real estate depreciation		409			426			78			114			90			127			126
Adjusted funds from operations applicable to common shares and Units	$	43,575		$	42,982		$	12,272		$	11,247		$	8,605		$	11,451		$	11,209
AFFO per share and unit - basic and diluted		0.42			0.44			0.11			0.11			0.09			0.11			0.11
Weighted average shares and units		103,432			98,782			107,316			103,935			101,669			100,844			100,239

(1) See Definitions on page 28.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Twelve Months Ended						Three Months Ended
	04/30/2012			04/30/2011			04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	8,212		$	20,082		$	3,379		$	2,127		$	1,285		$	1,421		$	444
Adjustments:
Noncontrolling interests – Operating Partnership		1,359			4,449			636			351			194			178			(36	)
Income before noncontrolling interests – Operating Partnership		9,571			24,351			4,015			2,478			1,479			1,599			408
Add:
Interest		65,230			65,453			16,454			16,533			16,318			15,925			15,626
Depreciation/amortization related to real estate investments		57,108			56,991			14,390			14,359			14,193			14,166			14,246
Amortization related to non-real estate investments		3,216			2,683			821			903			758			734			701
Amortization related to real estate revenues(2)		141			153			30			31			29			51			56
Less:
Interest income		(148	)		(264	)		(33	)		(25	)		(37	)		(53	)		(65	)
Gain on sale of real estate, land and other investments		(349	)		(19,365	)		240			0			(589	)		0			0
Gain on involuntary conversion		(274	)		0			(274	)		0			0			0			0
EBITDA	$	134,495		$	130,182		$	35,643		$	34,279		$	32,151		$	32,422		$	30,972

(1)   See Definitions on page 28.

(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
2013	$	21,521	$	0	$	21,521		5.76	%		2.0	%
2014		48,058		705		48,763		5.77	%		4.6	%
2015		75,813		9,750		85,563		5.62	%		8.2	%
2016		71,967		0		71,967		5.91	%		6.9	%
2017		189,447		0		189,447		6.15	%		18.1	%
2018		70,882		0		70,882		5.73	%		6.8	%
2019		99,578		5,691		105,269		5.92	%		10.0	%
2020		116,770		0		116,770		5.86	%		11.1	%
2021		125,441		0		125,441		5.44	%		12.0	%
2022		91,631		0		91,631		5.66	%		8.7	%
Thereafter		121,435		0		121,435		5.55	%		11.6	%
Total maturities	$	1,032,543	$	16,146	$	1,048,689		5.78	%		100.0	%

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

	04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
Balances Outstanding
Mortgage
Fixed rate	$	1,032,543		$	1,028,198		$	1,033,550		$	996,256		$	992,276
Variable rate		16,146			10,519			6,075			6,706			1,527
Mortgage total		1,048,689			1,038,717			1,039,625			1,002,962			993,803
Weighted Average Interest Rates
Secured		5.78	%		5.84	%		5.86	%		5.90	%		5.92	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2012

(in thousands)

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Multi-Family Residential
Monticello Village - Monticello, MN	3/1/2013	$	2,958	$	0	$	0	$	0	$	0	$	2,958
Quarry Ridge - Rochester, MN	10/1/2013		0		11,876		0		0		0		11,876
East Park - Sioux Falls, SD	12/1/2013		0		1,497		0		0		0		1,497
Sycamore Village - Sioux Falls, SD	12/1/2013		0		842		0		0		0		842
Candlelight - Fargo, ND	3/1/2014		0		1,274		0		0		0		1,274
Evergreen II - Isanti, MN	11/1/2014		0		0		2,185		0		0		2,185
Campus Center - St Cloud, MN	6/1/2015		0		0		0		1,350		0		1,350
Campus Knoll - St Cloud, MN	6/1/2015		0		0		0		900		0		900
Landmark - Grand Forks, ND	8/24/2015		0		0		0		1,759		0		1,759
Regency Park Estates - St Cloud, MN	1/1/2016		0		0		0		7,097		0		7,097
Summary of Debt due after Fiscal 2016			0		0		0		11,106		279,415		279,415
Sub-Total Multi-Family Residential		$	2,958	$	15,489	$	2,185	$	11,106	$	279,415	$	311,153
Commercial Office
Great Plains - Fargo, ND	10/1/2013	$	0	$	1,947	$	0	$	0	$	0	$	1,947
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		2,568		0		0		0		2,568
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		1,332		0		0		0		1,332
Viromed - Eden Prairie, MN	4/1/2014		0		626		0		0		0		626
Wirth Corporate Center - Golden Valley, MN	4/1/2014		0		3,539		0		0		0		3,539
TCA Building - Eagan, MN	5/1/2014		0		0		7,536		0		0		7,536
Brenwood - Hennepin County, MN	7/15/2014		0		0		5,250		0		0		5,250
Burnsville Bluffs II - Burnsville, MN	8/8/2014		0		0		1,756		0		0		1,756
Plymouth IV - Plymouth, MN	8/8/2014		0		0		3,240		0		0		3,240
Plymouth V - Plymouth, MN	8/8/2014		0		0		3,786		0		0		3,786
Plaza VII - Boise, ID	9/1/2014		0		0		1,052		0		0		1,052
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		3,422		0		0		3,422
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		10,265		0		0		10,265
Northgate I - Maple Grove, MN	12/10/2014		0		0		5,339		0		0		5,339
Plymouth I - Plymouth, MN	12/10/2014		0		0		1,197		0		0		1,197
Plymouth II - Plymouth, MN	12/10/2014		0		0		1,197		0		0		1,197
Plymouth III - Plymouth, MN	12/10/2014		0		0		1,473		0		0		1,473
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		0		626		0		0		626
West River Business Park - Waite Park, MN	1/1/2015		0		0		626		0		0		626
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		0		8,436		0		0		8,436
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		0		8,180		0		0		8,180
US Bank Financial Center - Bloomington, MN	7/1/2015		0		0		0		13,728		0		13,728
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		0		0		1,609		0		1,609
Westgate I - Boise, ID	8/1/2015		0		0		0		1,234		0		1,234
Westgate II - Boise, ID	8/1/2015		0		0		0		3,020		0		3,020
Brook Valley I - LaVista, NE	1/1/2016		0		0		0		1,344		0		1,344
Spring Valley IV - Omaha, NE	1/1/2016		0		0		0		800		0		800
Spring Valley V - Omaha, NE	1/1/2016		0		0		0		880		0		880
Spring Valley X - Omaha, NE	1/1/2016		0		0		0		816		0		816
Spring Valley XI - Omaha, NE	1/1/2016		0		0		0		800		0		800
Summary of Debt due after Fiscal 2016			0		0		0		24,231		254,791		254,791
Sub-Total Commercial Office		$	0	$	10,012	$	63,381	$	24,231	$	254,791	$	352,415

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2012 (continued)

(in thousands)

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Commercial Medical
Fox River - Grand Chute, WI (2)	5/1/2012	$	2,174	$	0	$	0	$	0	$	0	$	2,174
High Pointe Health Campus - Lake Elmo, MN	4/1/2014		0		5,400		0		0		0		5,400
Edgewood Vista - Billings, MT	12/10/2014		0		0		1,967		0		0		1,967
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		0		2,997		0		0		2,997
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		0		1,127		0		0		1,127
Garden View Medical - St Paul, MN	8/1/2015		0		0		0		1,815		0		1,815
2800 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		5,586		0		5,586
2828 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		8,529		0		8,529
Edina 6405 France Medical - Edina, MN	9/1/2015		0		0		0		9,073		0		9,073
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		0		0		6,686		0		6,686
Summary of Debt due after Fiscal 2016			0		0		0		31,689		234,986		234,986
Sub-Total Commercial Medical		$	2,174	$	5,400		6,091	$	31,689	$	234,986	$	280,340
Commercial Industrial
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013	$	7,028	$	0	$	0	$	0	$	0	$	7,028
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		3,789		0		0		0		0		3,789
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		5,572		0		0		0		0		5,572
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		1,118		0		0		0		1,118
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		2,334		0		0		0		2,334
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		2,746		0		0		0		2,746
Stone Container - Roseville, MN	7/14/2014		0		0		4,500		0		0		4,500
Clive 2075 NW 94th St - Clive, IA	9/30/2014		0		0		2,214		0		0		2,214
Metal Improvement Company - New Brighton, MN	9/30/2014		0		0		1,494		0		0		1,494
Winsted Industrial Building	9/30/2014		0		0		394		0		0		394
Stone Container - Fargo, ND	12/1/2015		0		0		0		837		0		837
Stone Container - Fargo, ND	12/1/2015		0		0		0		1,059		0		1,059
Summary of Debt due after Fiscal 2016			0		0		0		1,896		23,646		23,646
Sub-Total Commercial Industrial		$	16,389	$	6,198	$	8,602	$	1,896	$	23,646	$	56,731

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2012 (continued)

(in thousands)

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Commercial Retail
Burnsville I Strip Center - Burnsville, MN	6/30/2013	$	0	$	393	$	0	$	0	$	0	$	393
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		312		0		0		0		312
St Cloud Westgate - St Cloud, MN	10/10/2013		0		3,197		0		0		0		3,197
Eagan I Retail Center - Eagan, MN	12/22/2013		0		1,342		0		0		0		1,342
Forest Lake Westlake Center - Forest Lake, MN	12/22/2013		0		4,291		0		0		0		4,291
Pine City C-Store  - Pine City, MN	4/20/2014		0		298		0		0		0		298
Pine City Evergreen Square - Pine City, MN	4/20/2014		0		0		0		0		0		1,831
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		0		2,559		0		0		2,559
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		0		768		0		0		768
Fargo Express Center - Fargo, ND	10/1/2014		0		0		991		0		0		991
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		0		986		0		0		986
Grand Forks MedPark Mall - Grand Forks, ND	5/21/2015		0		0		0		3,045		0		3,045
Summary of Debt due after Fiscal 2016			0		0		0		3,045		28,037		28,037
Sub-Total Commercial Retail		$	0	$	11,664	$	5,304	$	3,045	$	28,037	$	48,050
Total		$	21,521	$	48,763	$	85,563	$	71,967	$	820,875	$	1,048,689

* Mortgage debt does not include the Company’s multi-bank line of credit.  The line of credit has a maturity date of August 12, 2013; as of April 30, 2012, the Company had borrowings of $39,000,000 outstanding under this line.

(1) Totals are principal balances as of April 30, 2012.

(2) Loan was paid off at maturity in cash.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	04/30/2012		01/31/2012		10/31/2011		07/31/2011		04/30/2011
Equity Capitalization
Common shares outstanding		89,474		85,744		83,682		81,259		80,523
Operating partnership (OP) units outstanding		20,332		19,596		19,534		19,958		20,068
Total common shares and OP units outstanding		109,806		105,340		103,216		101,217		100,591
Market price per common share (closing price at end of period)	$	7.22	$	7.42	$	7.41	$	8.13	$	9.41
Equity capitalization-common shares and OP units	$	792,799	$	781,623	$	764,831	$	822,894	$	946,561
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	820,116	$	808,940	$	792,148	$	850,211	$	973,878
Debt Capitalization
Total mortgage debt	$	1,048,689	$	1,038,717	$	1,039,625	$	1,002,962	$	993,803
Total capitalization	$	1,868,805	$	1,847,657	$	1,831,773	$	1,853,173	$	1,967,681
Total debt to total capitalization	0.56:1		0.56:1		0.57:1		0.54:1		0.51:1

	Twelve Months Ended						Three Months Ended
	04/30/2012			04/30/2011			04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
Earnings to fixed charges(1)		1.14	x		1.07	x		1.25	x		1.15	x		1.05	x		1.10	x		1.03	x
Earnings to combined fixed charges and preferred distributions(1)		1.10	x		1.03	x		1.21	x		1.11	x		1.02	x		1.06	x		0.99	x
Debt service coverage ratio(1)		1.43	x		1.40	x		1.49	x		1.43	x		1.37	x		1.41	x		1.37	x
Distribution Data
Common shares and units outstanding at record date		106,642			100,101			106,642			103,761			101,439			100,725			100,101
Total common distribution paid	$	57,756		$	67,664		$	13,809		$	13,486		$	13,186		$	17,275		$	17,167
Common distribution per share and unit	$	.5615		$	.6860		$	.1300		$	.1300		$	.1300		$	.1715		$	.1715
Payout ratio (FFO per share and unit basis)(1)		86.4	%		108.9	%		72.2	%		81.3	%		86.7	%		107.2	%		114.3	%
Payout ratio (AFFO per share and unit basis)(1)		133.7	%		155.9	%		118.2	%		118.2	%		144.4	%		155.9	%		155.9	%

(1)   See Definitions on page 28.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties(1)
	Three Months Ended April 30,							Twelve Months Ended April 30,
Segment	2012		2011		% Change			2012		2011		% Change
Multi-Family Residential	$	9,484	$	8,201		15.6	%	$	37,611	$	32,287		16.5	%
Commercial Office		10,066		9,754		3.2	%		38,739		41,402		(6.4	)%
Commercial Medical		9,870		10,100		(2.3	)%		40,704		42,458		(4.1	)%
Commercial Industrial		3,248		1,962		65.5	%		10,341		8,476		22.0	%
Commercial Retail		2,555		1,702		50.1	%		8,782		8,128		8.0	%
	$	35,223	$	31,719		11.0	%	$	136,177	$	132,751		2.6	%

(1)   As of April 30, 2012, stabilized properties excluded:

Multi-Family Residential - Ashland, Grand Forks, ND; Chateau, Minot, ND; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; North Pointe II, Bismarck, ND; Regency Park Estates, St Cloud, MN; Sierra Vista, Sioux Falls, SD and Williston Garden, Williston, ND.

Total number of units, 629 Occupancy % for April 30, 2012 is 86.8%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for April 30, 2012 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND; Edina 6525 Drew Avenue, Edina, MN; Missoula 3050 Great Northern Avenue, Missoula, MT; Spring Creek American Falls, American Falls, ID; Spring Creek Soda Springs, Soda Springs, ID; Spring Creek Eagle, Eagle, ID; Spring Creek Meridian, Meridian, ID; Spring Creek Overland, Boise, ID; Spring Creek Boise, Boise, ID; Spring Creek Ustick, Meridian, ID and Trinity at Plaza 16, Minot, ND.

Total square footage, 315,818. Occupancy % for April 30, 2012 is 99.9%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2012 is 100.0%.

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

Total square footage, 48,960 Occupancy % for April 30, 2012 is 100.0%.

As of April 30, 2011, stabilized properties excluded:

Multi-Family Residential - Chateau, Minot, ND; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132 Occupancy % for April 30, 2011 is 93.9%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for April 30, 2011 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND and Missoula 3050 Great Northern Avenue, Missoula, MT  .

Total square footage, 137,848. Occupancy % for April 30, 2011 is 100.0%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2011 is 100.0%.

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

Total square footage, 47,709 Occupancy % for April 30, 2011 is 53.6%.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	17,788		$	18,264		$	13,685		$	3,618		$	3,315		$	0		$	56,670
Non-Stabilized		1,703			347			1,547			110			244			0			3,951
Total		19,491			18,611			15,232			3,728			3,559			0			60,621
Real estate expenses
Stabilized(1)		8,304			8,198			3,815			370			1,034			0			21,721
Non-Stabilized		695			167			131			1			136			0			1,130
Total		8,999			8,365			3,946			371			1,170			0			22,851
Gain on involuntary conversion
Stabilized(1)		0			0			0			0			274			0			274
Total		0			0			0			0			274			0			274
Stabilized(1)		9,484			10,066			9,870			3,248			2,555			0			35,223
Non-Stabilized		1,008			180			1,416			109			108			0			2,821
Net operating income	$	10,492		$	10,246		$	11,286		$	3,357		$	2,663		$	0		$	38,044
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,883	)	$	(5,191	)	$	(4,296	)	$	(864	)	$	(900	)	$	(76	)	$	(15,210	)
Administrative, advisory and trustee fees		0			0			0			0			0			(1,437	)		(1,437	)
Other expenses		0			0			0			0			0			(389	)		(389	)
Interest expense		(4,552	)		(5,364	)		(4,426	)		(914	)		(710	)		(464	)		(16,430	)
Interest and other income		0			0			0			0			0			141			141
Income(loss)from continuing operations		2,057			(309	)		2,564			1,579			1,053			(2,225	)		4,719
Income(loss) from discontinued operations		0			0			(383	)		0			(215	)		0			(598	)
Net income (loss)		2,057			(309	)		2,181			1,579			838			(2,225	)		4,121
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(636	)		(636	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(106	)		(106	)
Net income (loss) attributable to Investors Real Estate Trust		2,057			(309	)		2,181			1,579			838			(2,967	)		3,379
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,057			(309	)		2,181			1,579			838		$	(3,560	)	$	2,786

(1)   As of April 30, 2012, stabilized properties excluded:

Multi-Family Residential - Ashland, Grand Forks, ND; Chateau, Minot, ND; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; North Pointe II, Bismarck, ND; Regency Park Estates, St Cloud, MN; Sierra Vista, Sioux Falls, SD and Williston Garden, Williston, ND.

Total number of units, 629 Occupancy % for April 30, 2012 is 86.8%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for April 30, 2012 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND; Edina 6525 Drew Avenue, Edina, MN; Missoula 3050 Great Northern Avenue, Missoula, MT; Spring Creek American Falls, American Falls, ID; Spring Creek Soda Springs, Soda Springs, ID; Spring Creek Eagle, Eagle, ID; Spring Creek Meridian, Meridian, ID; Spring Creek Overland, Boise, ID; Spring Creek Boise, Boise, ID; Spring Creek Ustick, Meridian, ID and Trinity at Plaza 16, Minot, ND.

Total square footage, 315,818. Occupancy % for April 30, 2012 is 99.9%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2012 is 100.0%.

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

Total square footage, 48,960 Occupancy % for April 30, 2012 is 100.0%.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	16,965		$	18,584		$	15,998		$	3,164		$	2,960		$	0		$	57,671
Non-Stabilized		277			324			503			111			140			0			1,355
Total		17,242			18,908			16,501			3,275			3,100			0			59,026
Real estate expenses
Stabilized(1)		8,764			8,830			5,898			1,202			1,258			0			25,952
Non-Stabilized		118			143			6			3			25			0			295
Total		8,882			8,973			5,904			1,205			1,283			0			26,247
Net Operating Income (NOI)
Stabilized(1)		8,201			9,754			10,100			1,962			1,702			0			31,719
Non-Stabilized		159			181			497			108			115			0			1,060
Net operating income	$	8,360		$	9,935		$	10,597		$	2,070		$	1,817		$	0		$	32,779
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,493	)	$	(5,561	)	$	(4,158	)	$	(832	)	$	(784	)	$	(93	)	$	(14,921	)
Administrative, advisory and trustee services		0			0			0			0			0			(1,685	)		(1,685	)
Other expenses		0			0			0			0			0			(408	)		(408	)
Interest expense		(4,118	)		(5,221	)		(4,027	)		(974	)		(773	)		(468	)		(15,581	)
Interest and other income		0			0			0			0			0			130			130
Income (loss) from continuing operations		749			(847	)		2,412			264			260			(2,524	)		314
Income from discontinued operations		0			0			(33	)		0			29			0			(4	)
Net income (loss)		749			(847	)		2,379			264			289			(2,524	)		310
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			36			36
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			98			98
Net income (loss) attributable to Investors Real Estate Trust		749			(847	)		2,379			264			289			(2,390	)		444
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	749		$	(847	)	$	2,379		$	264		$	289		$	(2,983	)	$	(149	)

(1)   As of April 30, 2011, stabilized properties excluded:

Multi-Family Residential - Chateau, Minot, ND; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132 Occupancy % for April 30, 2011 is 93.9%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for April 30, 2011 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND and Missoula 3050 Great Northern Avenue, Missoula, MT  .

Total square footage, 137,848. Occupancy % for April 30, 2011 is 100.0%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2011 is 100.0%.

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

Total square footage, 47,709 Occupancy % for April 30, 2011 is 53.6%.

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	70,982		$	72,995		$	61,046		$	13,884		$	12,828		$	0		$	231,735
Non-Stabilized		3,208			1,339			4,485			441			580			0			10,053
Total		74,190			74,334			65,531			14,325			13,408			0			241,788
Real estate expenses
Stabilized(1)		33,371			34,256			20,342			3,543			4,320			0			95,832
Non-Stabilized		1,419			560			313			6			148			0			2,446
Total		34,790			34,816			20,655			3,549			4,468			0			98,278
Gain on involuntary conversion
Stabilized(1)		0			0			0			0			274			0			274
Total		0			0			0			0			274			0			274
Net Operating Income (NOI)
Stabilized(1)		37,611			38,739			40,704			10,341			8,782			0			136,177
Non-Stabilized		1,789			779			4,172			435			432			0			7,607
Net operating income	$	39,400		$	39,518		$	44,876		$	10,776		$	9,214		$	0		$	143,784
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(14,627	)	$	(20,944	)	$	(17,161	)	$	(3,686	)	$	(3,465	)	$	(381	)	$	(60,264	)
Administrative, advisory and trustee services		0			0			0			0			0			(7,381	)		(7,381	)
Other expenses		0			0			0			0			0			(1,898	)		(1,898	)
Interest expense		(18,106	)		(21,350	)		(16,644	)		(3,668	)		(3,018	)		(2,327	)		(65,113	)
Interest and other income		0			0			0			0			0			786			786
Income (loss) from continuing operations		6,667			(2,776	)		11,071			3,422			2,731			(11,201	)		9,914
Income from discontinued operations		0			0			(455	)		0			247			0			(208	)
Net income (loss)		6,667			(2,776	)		10,616			3,422			2,978			(11,201	)		9,706
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,359	)		(1,359	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(135	)		(135	)
Net income (loss) attributable to Investors Real Estate Trust		6,667			(2,776	)		10,616			3,422			2,978			(12,695	)		8,212
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	6,667		$	(2,776	)	$	10,616		$	3,422		$	2,978		$	(15,067	)	$	5,840

(1)   As of April 30, 2012, stabilized properties excluded:

Multi-Family Residential - Ashland, Grand Forks, ND; Chateau, Minot, ND; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; North Pointe II, Bismarck, ND; Regency Park Estates, St Cloud, MN; Sierra Vista, Sioux Falls, SD and Williston Garden, Williston, ND.

Total number of units, 629 Occupancy % for April 30, 2012 is 86.8%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE.

Total square footage 63,001. Occupancy % for April 30, 2012 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND; Edina 6525 Drew Avenue, Edina, MN; Missoula 3050 Great Northern Avenue, Missoula, MT; Spring Creek American Falls, American Falls, ID; Spring Creek Soda Springs, Soda Springs, ID; Spring Creek Eagle, Eagle, ID; Spring Creek Meridian, Meridian, ID; Spring Creek Overland, Boise, ID; Spring Creek Boise, Boise, ID; Spring Creek Ustick, Meridian, ID and Trinity at Plaza 16, Minot, ND.

Total square footage, 315,818. Occupancy % for April 30, 2012 is 99.9%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2012 is 100.0%.

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

Total square footage, 48,960 Occupancy % for April 30, 2012 is 100.0%.

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Twelve Months Ended April 30, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and  Other			Total
Real estate rental revenue
Stabilized(1)	$	66,080		$	77,257		$	64,886		$	12,797		$	12,922		$	0		$	233,942
Non-Stabilized		758			490			1,162			368			234			0			3,012
Total		66,838			77,747			66,048			13,165			13,156			0			236,954
Real estate expenses
Stabilized(1)		33,793			35,855			22,428			4,321			4,794			0			101,191
Non-Stabilized		336			200			23			7			45			0			611
Total		34,129			36,055			22,451			4,328			4,839			0			101,802
Net Operating Income (NOI)
Stabilized(1)		32,287			41,402			42,458			8,476			8,128			0			132,751
Non-Stabilized		422			290			1,139			361			189			0			2,401
Net operating income	$	32,709		$	41,692		$	43,597		$	8,837		$	8,317		$	0		$	135,152
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(13,609	)	$	(21,878	)	$	(15,979	)	$	(3,512	)	$	(3,031	)	$	(376	)	$	(58,385	)
Administrative, advisory and trustee services		0			0			0			0			0			(7,222	)		(7,222	)
Other expenses		0			0			0			0			0			(1,747	)		(1,747	)
Interest expense		(16,942	)		(21,732	)		(16,990	)		(3,968	)		(3,144	)		(1,044	)		(63,820	)
Interest and other income		0			0			0			0			0			541			541
Income (loss) from continuing operations		2,158			(1,918	)		10,628			1,357			2,142			(9,848	)		4,519
Income (loss) from discontinued operations		19,224			0			(186	)		726			68			0			19,832
Net income (loss)		21,382			(1,918	)		10,442			2,083			2,210			(9,848	)		24,351
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(4,449	)		(4,449	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			180			180
Net income (loss) attributable to Investors Real Estate Trust		21,382			(1,918	)		10,442			2,083			2,210			(14,117	)		20,082
Dividends to preferred shareholders		0			0			0			0			0			(2,372	)		(2,372	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	21,382		$	(1,918	)	$	10,442		$	2,083		$	2,210		$	(16,489	)	$	17,710

(1)   As of April 30, 2011, stabilized properties excluded:

Multi-Family Residential - Chateau, Minot, ND; North Pointe II, Bismarck, ND and Sierra Vista, Sioux Falls, SD.

Total number of units, 132 Occupancy % for April 30, 2011 is 93.9%.

Commercial Office - 1st Avenue Building, Minot, ND and Omaha 10802 Farnum Drive, Omaha, NE..

Total square footage, 63,001. Occupancy % for April 30, 2011 is 98.7%.

Commercial Medical - Billings 2300 Grant Road, Billings, MT; Edgewood Vista-Minot, Minot, ND and Missoula 3050 Great Northern Avenue, Missoula, MT  .

Total square footage, 137,848. Occupancy % for April 30, 2011 is 100.0%.

Commercial Industrial - Fargo 1320 45th Street North, Fargo, ND.

Total square footage, 42,244. Occupancy % for April 30, 2011 is 100.0%.

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

Total square footage, 47,709 Occupancy % for April 30, 2011 is 53.6%.

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

4th Quarter Fiscal 2012 vs. 4th Quarter Fiscal 2011

Segments	Stabilized Properties		All Properties
	4th Quarter	4thQuarter	4th Quarter	4th Quarter
	Fiscal 2012	Fiscal 2011	Fiscal 2012	Fiscal 2011
Multi-Family Residential	94.2%	92.8%	93.7%	92.8%
Commercial Office	78.4%	79.5%	78.6%	79.7%
Commercial Medical	93.8%	95.8%	94.5%	96.0%
Commercial Industrial	95.4%	90.0%	95.5%	90.1%
Commercial Retail	86.6%	83.2%	87.1%	82.2%

20

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and twelve months ended April 30, 2012

	Three Months Ended April 30, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		124,523		174,760		299,283		62,226		237,057
Commercial Medical		14,640		596		15,236		3,893		11,343
Commercial Industrial		41,685		0		41,685		20,169		21,516
Commercial Retail		1,614		43,227		44,841		1,057		43,784
Total All Segments		182,462		218,583		401,045		87,345		313,700
Weighted Average Rental Rates(3)
Commercial Office	$	12.79	$	13.38	$	13.14	$	15.53	$	(2.39	)		(15.4	%)
Commercial Medical		20.64		10.58		20.24		21.31		(1.07	)		(5.0	%)
Commercial Industrial		1.93		0.00		1.93		3.60		(1.67	)		(46.4	%)
Commercial Retail		7.45		6.29		6.33		9.05		(2.72	)		(30.1	%)
Total All Segments	$	10.89	$	11.97	$	11.48	$	12.95	$	(1.47	)		(11.4	%)

	Twelve Months Ended April 30, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		314,262		477,698		791,960		737,553		54,407
Commercial Medical		249,732		41,463		291,195		102,335		188,860
Commercial Industrial		144,833		526,576		671,409		360,953		310,456
Commercial Retail		84,634		111,843		196,477		203,724		(7,247	)
Total All Segments		793,461		1,157,580		1,951,041		1,404,565		546,476
Weighted Average Rental Rates(3)
Commercial Office	$	11.55	$	14.34	$	13.23	$	12.93	$	0.30			2.3	%
Commercial Medical		19.26		18.15		19.10		20.52		(1.42	)		(6.9	%)
Commercial Industrial		2.80		3.51		3.36		2.69		0.67			24.9	%
Commercial Retail		7.86		9.94		9.05		5.86		3.19			54.4	%
Total All Segments	$	11.99	$	9.12	$	10.29	$	9.82	$	0.47			4.8	%

	Three Months Ended April 30, 2012						Twelve Months Ended April 30, 2012
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased(4)
Commercial Office		5.0		3.5		4.5		4.5		3.6		4.0
Commercial Medical		5.3		5.0		5.3		7.7		4.3		6.4
Commercial Industrial		4.2		0.0		4.2		1.7		3.8		3.1
Commercial Retail		1.6		2.9		2.4		4.5		3.9		4.1
Total All Segments		4.5		3.4		4.0		5.3		3.8		4.5

(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.

(4) Term in years.

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING COMMITTMENTS

for the three and twelve months ended April 30, 2012

	4th Quarter Fiscal 2012 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	1,568,480	$	638,014	$	2,206,494	$	3,674,549	$	2,164,532	$	5,839,081
Commercial Medical		303,030		0		303,030		2,264,735		353,754		2,618,489
Commercial Industrial		6,000		0		6,000		56,000		349,071		405,071
Commercial Retail		0		0		0		505,653		18,846		524,499
Subtotal	$	1,877,510	$	638,014	$	2,515,524	$	6,500,937	$	2,886,203	$	9,387,140
Tenant Improvements per square foot
Commercial Office	$	12.60	$	3.65	$	7.37	$	11.69	$	4.53	$	7.37
Commercial Medical		20.70		0.00		19.89		9.07		8.53		8.99
Commercial Industrial		0.14		0.00		0.14		0.39		0.66		0.60
Commercial Retail		0.00		0.00		0.00		5.97		0.17		2.67
All Segments	$	10.29	$	2.92	$	6.27	$	8.19	$	2.49	$	4.81
Leasing Costs
Commercial Office	$	984,198	$	904,126	$	1,888,324	$	2,772,501	$	2,580,185	$	5,352,686
Commercial Medical		67,175		1,788		68,963		683,492		141,772		825,264
Commercial Industrial		45,588		0		45,588		71,560		430,772		502,332
Commercial Retail		0		19,620		19,620		256,323		66,039		322,362
Subtotal	$	1,096,961	$	925,534	$	2,022,495	$	3,783,876	$	3,218,768	$	7,002,644
Leasing Costs per square foot
Commercial Office	$	7.90	$	5.17	$	6.31	$	8.82	$	5.40	$	6.76
Commercial Medical		4.59		3.00		4.53		2.74		3.42		2.83
Commercial Industrial		1.09		0.00		1.09		0.49		0.82		0.75
Commercial Retail		0.00		0.45		0.44		3.03		0.59		1.64
All Segments	$	6.01	$	4.23	$	5.04	$	4.77	$	2.78	$	3.59
Tenant Improvements and Leasing Costs
Commercial Office	$	2,552,678	$	1,542,140	$	4,094,818	$	6,447,050	$	4,744,717	$	11,191,767
Commercial Medical		370,205		1,788		371,993		2,948,227		495,526		3,443,753
Commercial Industrial		51,588		0		51,588		127,560		779,843		907,403
Commercial Retail		0		19,620		19,620		761,976		84,885		846,861
Total	$	2,974,471	$	1,563,548	$	4,538,019	$	10,284,813	$	6,104,971	$	16,389,784
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	20.50	$	8.82	$	13.68	$	20.51	$	9.93	$	14.13
Commercial Medical		25.29		3.00		24.42		11.81		11.95		11.83
Commercial Industrial		1.24		0.00		1.24		0.88		1.48		1.35
Commercial Retail		0.00		0.45		0.44		9.00		0.76		4.31
All Segments	$	16.30	$	7.15	$	11.32	$	12.96	$	5.27	$	8.40

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	04/30/2012			01/31/2012			10/31/2011			07/31/2011			04/30/2011
Number of Units		9,161			8,921			8,885			8,664			8,661
Average Investment Per Unit
Stabilized	$	56,983		$	56,955		$	56,615		$	56,151		$	55,916
Non-Stabilized		81,277			75,465			65,675			55,365			59,375
	$	58,518		$	57,762		$	56,926		$	56,140		$	55,969
Average Scheduled Rent(1) per Unit
Stabilized	$	713		$	711		$	705		$	700		$	696
Non-Stabilized		887			841			949			785			704
	$	724		$	716		$	714		$	701		$	697
Total Receipts per Unit
Stabilized	$	704		$	700		$	696		$	674		$	663
Non-Stabilized		831			826			814			793			698
	$	712		$	705		$	700		$	675		$	664
Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	156		$	155		$	213		$	228		$	141
Non-Stabilized		119			179			110			320			352
	$	154		$	156		$	209		$	229		$	144
Physical Occupancy%
Stabilized		94.2	%		93.9	%		95.2	%		91.4	%		92.8	%
Non-Stabilized		86.8	%		77.4	%		82.2	%		97.0	%		93.9	%
		93.7	%		93.2	%		94.6	%		91.5	%		92.8	%
Operating Expenses as a % of Scheduled Rent
Stabilized		46.4	%		45.9	%		47.1	%		46.3	%		49.5	%
Non-Stabilized		39.0	%		40.5	%		36.5	%		43.1	%		43.9	%
Total		45.8	%		45.6	%		46.6	%		46.2	%		49.4	%

(1) See Definitions on page 28.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of April 30, 2012

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	32	97	12.4%	1,450,585	13.5%
St. Lukes Hospital of Duluth, Inc.	6	45	3.5%	198,775	1.9%
Fairview Health Services	9	74	3.4%	239,806	2.2%
Applied Underwriters	3	58	2.2%	141,724	1.3%
Affiliates of Siemens USA	2	29	1.6%	142,017	1.3%
HealthEast Care System	1	82	1.6%	114,316	1.1%
Affiliates of Hewlett Packard (NASDAQ: HPQ)	1	3	1.4%	94,832	0.8%
Nebraska Orthopedic Hospital	1	203	1.3%	61,758	0.6%
Microsoft (NASDAQ: MSFT)	1	80	1.3%	122,040	1.1%
Arcadis Corporate Services, Inc.	1	51	1.2%	71,430	0.7%
Total/Weighted Average		80	29.9%	2,637,283	24.5%

(1) See Definitions on page 28.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of April 30, 2012

Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized  Base Rent
Commercial Office
2013		46		492,529		12.7	%	$	6,683,492	$	13.57		12.1	%
2014		58		520,685		13.4	%		6,427,317		12.34		11.6	%
2015		68		490,996		12.6	%		7,083,375		14.43		12.8	%
2016		39		549,450		14.2	%		8,660,215		15.76		15.6	%
2017		43		819,628		21.1	%		13,499,688		16.47		24.4	%
2018 and thereafter		38		1,010,816		26.0	%		13,035,514		12.90		23.5	%
		292		3,884,104		100.0	%	$	55,389,601	$	14.26		100.0	%
Commercial Medical
2013		26		122,653		4.5	%	$	2,694,894	$	21.97		5.9	%
2014		23		395,211		14.4	%		6,847,714		17.33		14.9	%
2015		16		61,201		2.2	%		1,457,010		23.81		3.2	%
2016		24		175,113		6.4	%		3,585,946		20.48		7.8	%
2017		18		130,814		4.8	%		2,756,816		21.07		6.0	%
2018 and thereafter		79		1,859,191		67.7	%		28,591,093		15.38		62.2	%
		186		2,744,183		100.0	%	$	45,933,473	$	16.74		100.0	%
Commercial Industrial
2013		6		206,017		8.4	%	$	475,803	$	2.31		4.9	%
2014		9		307,759		12.5	%		1,134,640		3.69		11.6	%
2015		6		344,493		14.0	%		1,389,978		4.03		14.3	%
2016		9		826,012		33.5	%		3,236,348		3.92		33.2	%
2017		5		311,141		12.6	%		1,174,608		3.78		12.0	%
2018 and thereafter		6		469,357		19.0	%		2,342,247		4.99		24.0	%
		41		2,464,779		100.0	%	$	9,753,624	$	3.96		100.0	%
Commercial Retail
2013		33		150,312		12.7	%	$	1,031,420	$	6.86		10.5	%
2014		43		225,472		19.0	%		1,405,610		6.23		14.3	%
2015		34		294,258		24.8	%		2,228,891		7.57		22.6	%
2016		22		95,159		8.0	%		1,140,773		11.99		11.6	%
2017		21		99,156		8.3	%		1,067,039		10.76		10.8	%
2018 and thereafter		22		323,786		27.2	%		2,975,601		9.19		30.2	%
		175		1,188,143		100.0	%	$	9,849,334	$	8.29		100.0	%
Commercial Total
2013		111		971,511		9.5	%	$	10,885,609	$	11.20		9.0	%
2014		133		1,449,127		14.1	%		15,815,281		10.91		13.1	%
2015		124		1,190,948		11.6	%		12,159,254		10.21		10.1	%
2016		94		1,645,734		16.0	%		16,623,282		10.10		13.7	%
2017		87		1,360,739		13.2	%		18,498,151		13.59		15.3	%
2018 and thereafter		145		3,663,150		35.6	%		46,944,455		12.82		38.8	%
		694		10,281,209		100.0	%	$	120,926,032	$	11.76		100.0	%

* Annualized Base Rent is monthly scheduled rent as of April 1, 2012 (cash basis), multiplied by 12.

25

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2012 ACQUISITION SUMMARY

as of April 30, 2012

($’s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			April 30, 2012 Leased Percentage			Acquisition Cost
Buffalo Mall Theater(1)	Jamestown, ND	Commercial Retail	June 15, 2011		19,037		100.0	%		100.0	%	$	879
Regency Park Estates	St Cloud, MN	Multi-Family Residential	August 1, 2011		147		85.0	%		83.0	%		10,900
Spring Creek American Falls	American Falls, ID	Commercial Medical	September 1, 2011		17,273		100.0	%		100.0	%		4,070
Spring Creek Soda Springs	Soda Springs, ID	Commercial Medical	September 1, 2011		15,571		100.0	%		100.0	%		2,230
Spring Creek Eagle	Eagle, ID	Commercial Medical	September 1, 2011		15,559		100.0	%		100.0	%		4,100
Spring Creek Meridian	Meridian, ID	Commercial Medical	September 1, 2011		31,820		100.0	%		100.0	%		7,250
Spring Creek Overland	Boise, ID	Commercial Medical	September 1, 2011		26,605		100.0	%		100.0	%		6,725
Spring Creek Boise	Boise, ID	Commercial Medical	September 1, 2011		16,311		100.0	%		100.0	%		5,075
Spring Creek Ustick	Meridian, ID	Commercial Medical	September 1, 2011		26,605		100.0	%		100.0	%		4,300
Meadow Wind Land	Casper, WY	Unimproved Land	September 1, 2011	na		na			na				50
Industrial-Office Build-to-Suit	Minot, ND	Unimproved Land	September 7, 2011	na		na			na				416
Trinity at Plaza 16(2)	Minot, ND	Commercial Medical	September 23, 2011		24,795		100.0	%		100.0	%		5,685
Cottage West Twin Homes	Sioux Falls, SD	Multi-Family Residential	October 12, 2011		50		98.0	%		100.0	%		4,730
Gables Townhomes	Sioux Falls, SD	Multi-Family Residential	October 12, 2011		24		87.5	%		91.7	%		2,270
Edina 6525 Drew Avenue S	Edina, MN	Commercial Medical	October 13, 2011		3,431		76.4	%		88.8	%		505
Evergreen II	Isanti, MN	Multi-Family Residential	November 1, 2011		36		94.4	%		80.6	%		3,475
Meadow Winds Addition(3)	Casper, WY	Commercial Medical	December 30, 2011		22,193		100.0	%		100.0	%		3,952
Grand Gateway	St Cloud, MN	Multi-Family Residential	February 16, 2012		116		96	%		87.1	%		7,900
Ashland	Grand Forks, ND	Multi-Family Residential	March 16, 2012		84		100	%		100.0	%		8,310
Renaissance Heights	Williston, ND	Unimproved Land	April 11, 2012	na		na			na				4,600
Williston Garden Buildings 1 and 2(4)	Williston, ND	Multi-Family Residential	April 27, 2012		72		98.6	%		98.6	%		9,678
			Total Square Feet		219,200							$	97,100
			Total Units		529

(1)   Construction project placed in service June 15, 2011. Additional costs paid in fiscal year 2011 totaled $1.4 million, for a total project cost at April 30, 2012 of $2.3 million.

(2)   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 April 30, 2012 of $9.0 million.

(3)   Expansion project placed in service December 30, 2011.

(4)   Development property placed in service April 27, 2012. Buildings 3 and 4 of this project are expected to be placed in service during the first quarter of fiscal year 2013.

26

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2012 DEVELOPMENT IN PROGESS SUMMARY

as of April 30, 2012

($’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
Williston Garden Apartments Buildings 3 and 4 - Williston, ND(1)	72 unit apartment complex		100	%		9,750		4,688	1st Quarter Fiscal 2013
Spring Wind - Laramie, WY	29 assisted living units and 16 memory care units		100	%		3,800		1,811	1st Quarter Fiscal 2013
Quarry Ridge II Apartments - Rochester, MN	159 unit apartment building		42	%		18,275		15,436	1st Quarter Fiscal 2013
Industrial-Office Build-to-Suit - Minot, ND	28,000 sf. commercial industrial building		100	%		5,799		2,250	2nd Quarter Fiscal 2013
Multi-Family Conversion - Minot, ND	Convert 15,000 sf. commercial office to 20 multi-family residential units		0	%		3,000		321	4th Quarter Fiscal 2013
Jamestown Medical Office Building – Jamestown, ND(2)	45,000 square foot medical office building		89	%		9,200		1,611	3rd  Quarter Fiscal 2013
Other		na			na			1,482	na
					$	49,824	$	27,599

(1)   The Company is a 60% partner in the joint venture entity constructing this property; the anticipated total cost amount given is the total cost to the joint venture entity of buildings 3 and 4 of this four-building, 144 unit project.  Buildings 1 and 2, with 72 units, were placed in service April 27, 2012.

(2)   The Company is a 51% partner in the joint venture entity constructing this property;  the anticipated total cost amount given is the total cost to the joint venture entity.

27

Definitions

April 30, 2012

Adjusted funds from operations (AFFO) is calculated by subtracting from Funds from operations (FFO) (1) tenant improvements and leasing commissions and recurring capital expenditures that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization.  AFFO is included herein because we consider it to be a measure of a REIT’s ability to incur and service debt and to pay distributions to its shareholders. AFFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

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.” In addition, NAREIT recently clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure.  We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes 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 (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 expenditures (excluding capital expenditures recoverable from tenants) made on a regular or recurring basis to maintain a property’s competitive position within its market, generally with a depreciable life of 5 to 12 years, but excluding (a) capital expenditures made in the year of acquisition and the following two years (i.e., excluding capital expenditures on non-stabilized properties), (b) improvements associated with the expansion or re-development of a building, (c) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class A office) or (d) capital improvements that represent the addition of something new to a property, rather than the replacement of an existing item.

Scheduled rent revenue is the total possible revenue from all leasable units and square footage, with occupied space valued at contract rates pursuant to leases and vacant units or square footage at market rates.

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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