8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (date of earliest event reported):

September 10, 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 31^st 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 September 10, 2012, regarding financial and operational results for the three months ended July 31, 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 9.01Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number	Description
99.1	Earnings Release issued September 10, 2012, regarding financial and operational results for the three months ended July 31, 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: September 10, 2012

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER ENDED JULY 31, 2012

Minot, ND – September 10, 2012 – Investors Real Estate Trust (NASDAQ: IRET) reportedfinancial and operating results today for the quarter ended July 31, 2012.

During the three month period ended July 31, 2012, IRET's revenues increased from the year-earlier period. Funds From Operations (FFO)¹ overall increased and on a per share and unit basis remained the same for the three month period ended July 31, 2012 compared to the same period of the prior fiscal year.  Net income increased from the year-earlier period.

For the three month period ended July 31, 2012, as compared to the same period of the prior fiscal year:

• Revenues increased to $62.4 million from $59.6 million.

• Total expenses increased by $1.7 million, or 4.1%, in the three months ended July 31, 2012 compared to the three months ended July 31, 2011, from $42.2 million to $44.0 million.

• FFO increased to $17.6 million on approximately 111,292,000 weighted average shares and units outstanding, from $15.8 million on approximately 100,844,000 weighted average shares and units outstanding ($.16 per share and unit for both periods).

• Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $1.1 million compared to $828,000 in the same period of the prior fiscal year.

Significant Events and Transactions during the first quarter of fiscal year 2013:

· the acquisition of three multi-family residential properties for $52.4 million, adding 748 units to the Company's multi-family residential portfolio.

· the completion of the Company's 159-unit Quarry Ridge apartment development in Rochester, Minnesota, and the completion of the final 73 units of the Company's 145-unit Williston Garden apartment development in Williston, North Dakota. As of July 31, 2012, Quarry Ridge is 50.0% leased, and Williston Garden is 98.6% leased.

· the execution of an amendment to the Company's multi-bank line of credit, to lower the floor on the interest rate to 5.15% per annum from 5.65% per annum, and to change the interest rate under the loan agreement to the prime rate plus 1.25%, from prime rate plus 1.0%.

· the addition of a new executive to the Company's senior management team, with the appointment of Mark W. Reiling as Executive Vice President of Asset Management.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "We are pleased to report solid results for the quarter, including continued increases in occupancy in our multi-family residential portfolio compared to the same quarter of the prior fiscal year; the acquisition of an additional 748 apartment units in our multi-family residential portfolio following our purchase of apartment properties in Topeka, Kansas and Lincoln, Nebraska; and the completion of two development projects, our Quarry Ridge Apartments in Rochester, Minnesota and the Williston Garden Apartments in Williston, North Dakota, which added an additional 232 apartment units to our multi-family residential portfolio. While vacancy in our commercial office segment remains elevated, reflecting the effects of a slowly-recovering economy, we continue to see a healthy level of leasing inquiries from prospective commercial tenants. We expect this positive momentum to continue in the current quarter. We have significant cash available for acquisitions and developments, following our public offering of preferred shares in the current quarter for net proceeds of approximately $111.2 million, after underwriting discounts and estimated offering expenses. With this additional financial strength to our balance sheet, we plan to remain focused on acquisitions and development projects in our targeted core markets, including our home market of North Dakota, where production from the Bakken energy field remains robust. To this end, subsequent to the end of the first quarter of fiscal year 2013, we acquired parcels of vacant land in Williston, North Dakota and in St. Cloud, Minnesota, for future development, and we have begun construction of the 146-unit River Ridge Apartments project in Bismarck, North Dakota."

______________________________

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, in October 2011 NAREIT 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 all properties increased by $2.6 million during the three month period ended July 31, 2012, compared to the same period one year ago. NOI from all properties increased in three of our five segments:  multi-family residential, commercial medical and commercial retail.   The increase is primarily due to acquisitions in these segments, and increased occupancy, primarily in our multi-family residential segment.

NOI from stabilized properties³ decreased approximately $261,000 or 0.8% during the three month period ended July 31, 2012, compared to the same period one year ago. NOI from stabilized properties decreased in three of our five segments.  NOI from stabilized properties decreased in our commercial office, commercial medical and commercial industrial segments by 5.3%, 6.5% and 1.2%, respectively, primarily due to continued vacancy in our commercial office segment. NOI from stabilized properties increased in our multi-family residential and commercial retail segments by 10.6% and 2.3%, respectively, primarily due to increased occupancy.  Detail on NOI by segment is provided in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2012.

Physical occupancy as of July 31, 2012 compared to July 31, 2011 increased in three of our five reportable segments, decreasing in our commercial medical and commercial industrial segments, on a stabilized basis and an all-property basis.

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

	Stabilized Properties(a)		All Properties
	As of July 31,		As of  July 31,
Segments	Fiscal 2013	Fiscal 2012	Fiscal 2013	Fiscal 2012
Multi-Family Residential	93.5%	91.5%	92.8%	91.5%
Commercial Office	78.8%	78.4%	78.8%	78.4%
Commercial Medical	95.0%	95.7%	95.3%	95.7%
Commercial Industrial	90.0%	94.7%	90.0%	94.7%
Commercial Retail	87.5%	86.0%	87.5%	86.0%

a.	As of July 31, 2012, stabilized properties excluded:
	Multi-Family Residential -	Ashland, Grand Forks, ND; Chateau, Minot, ND; Colony, Lincoln, NE; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; Lakeside Village, Lincoln, NE; Quarry Ridge II, Rochester, MN; Regency Park Estates, St Cloud, MN; Villa West, Topeka, KS and Williston Garden, Williston, ND.
	Commercial Medical -	Edina 6525 Drew Avenue, Edina, MN; 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.
	As of July 31, 2011, stabilized properties excluded:
	Multi-Family Residential -	Chateau, Minot, ND

______________________________

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 and in operation for the entirety of both periods being compared (including properties that were redeveloped or expanded during the periods being compared, with properties purchased or sold during the periods being compared excluded from the stabilized property category), and which, in the case of development or re-development properties, have achieved a target level of occupancy.

ii

Acquisitions and Dispositions

During the first quarter of fiscal year 2013, the Company closed on its acquisitions of:

· a 308-unit multi-family residential property in Topeka, Kansas, on approximately 18.3 acres of land, for a purchase price of approximately $17.7 million, of which $5.2 million was paid in cash with assumed debt of $12.5 million;

· a 232-unit multi-family residential property in Lincoln, Nebraska, on approximately 14.7 acres of land, for a purchase price of approximately $17.5 million, of which $14.2 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.3 million; and

· a 208-unit multi-family residential property in Lincoln, Nebraska, on approximately 11.5 acres of land, for a purchase price of approximately $17.3 million, of which $13.8 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.5 million.

Also during the first quarter of fiscal year 2013, the Company placed in service its 159-unit Quarry Ridge Apartment Homes development in Rochester, Minnesota, and placed in service buildings 3 and 4 (totaling 73 units) of its four-building, 145-unit Williston Garden multi-family residential development in Williston, North Dakota. The Company is the majority member of the joint venture entity that owns the Williston Garden development, with a 60% interest. As of July 31, 2012, project costs incurred for the Quarry Ridge development totaled approximately $15.6 million; the total estimated construction costs (excluding the value of the land) for the project are $17.3 million. Estimated total project costs for the Williston Garden development are approximately $19.5 million, of which the joint venture entity had incurred approximately $17.8 million as of July 31, 2012.

The Company sold two small properties in the first quarter of fiscal year 2013, in Kentwood, Michigan and Fox River, Wisconsin, for sales prices of $625,000 and $330,000, respectively.

Shareholder Equity, Distributions and Capital Structure

As of July 31, 2012, IRET had a total capitalization of $2.1 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 July 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 165^th consecutive distribution. IRET also paid, on July 2, 2012, a quarterly distribution of $0.5156 per share on its Series A preferred shares.

Distribution Declared.  Subsequent to the end of the first quarter of fiscal year 2013, on September 4, 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 October 1, 2012 to common shareholders and unitholders of record on September 17, 2012. Also on September 4, 2012, the Company's Board of Trustees' declared a distribution of $0.5156 per share on the Company's Series A preferred shares of beneficial interest, payable October 1, 2012 to Series A preferred shareholders of record on September 17, 2012, and declared an initial, pro-rated distribution of $0.3312 per share on the Company's Series B preferred shares of beneficial interest, payable October 1, 2012 to Series B preferred shareholders of record on September 17, 2012. Subsequent distributions on the Series B preferred shares are payable quarterly in arrears in the amount of $0.4968 cents per share.

Conference Call Information

The Conference Call for 1st Quarter Earnings is scheduled for Tuesday, September 11, 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 87 multi-family residential properties with 10,143 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 Series A preferred shares are publicly traded on the NASDAQ Global Select Market (symbols: IRET and IRETP) and IRET Series B preferred shares are publicly traded on the New York Stock Exchange (symbol: IRET PRB). 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 2012 Form 10-K.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

iii

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	July 31, 2012			April 30, 2012
ASSETS
Real estate investments
Property owned	$	1,979,099		$	1,892,009
Less accumulated depreciation		(387,286	)		(373,490	)
		1,591,813			1,518,519
Development in progress		10,498			27,599
Unimproved land		10,990			10,990
Total real estate investments		1,613,301			1,557,108
Real estate held for sale		1,131			2,067
Cash and cash equivalents		37,002			39,989
Other investments		635			634
Receivable arising from straight-lining of rents, net of allowance of $1,270 and $1,209, respectively		24,127			23,273
Accounts receivable, net of allowance of $334 and $154, respectively		6,448			7,052
Real estate deposits		4			263
Prepaid and other assets		3,070			3,703
Intangible assets, net of accumulated amortization of $49,357 and $47,813, respectively		43,796			44,588
Tax, insurance, and other escrow		13,161			11,669
Property and equipment, net of accumulated depreciation of $1,554 and $1,423, respectively		1,332			1,454
Goodwill		1,120			1,120
Deferred charges and leasing costs, net of accumulated amortization of $17,509 and $16,244, respectively		21,932			21,447
TOTAL ASSETS	$	1,767,059		$	1,714,367
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	41,084		$	47,403
Revolving line of credit		44,500			39,000
Mortgages payable		1,080,655			1,048,689
Other		25,094			14,012
TOTAL LIABILITIES		1,191,333			1,149,104
COMMITMENTS AND CONTINGENCIES
EQUITY
Investors Real Estate Trust shareholders' equity
Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at July 31, 2012 and April 30, 2012, aggregate liquidation preference of $28,750,000)		27,317			27,317
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 91,811,928 shares issued and outstanding at July 31, 2012, and 89,473,838 shares issued and outstanding at April 30, 2012)		701,431			684,049
Accumulated distributions in excess of net income		(289,025	)		(278,377	)
Total Investors Real Estate Trust shareholders' equity		439,723			432,989
Noncontrolling interests – Operating Partnership (21,170,797 units at July 31, 2012 and 20,332,415 units at April 30, 2012)		122,373			118,710
Noncontrolling interests – consolidated real estate entities		13,630			13,564
Total equity		575,726			565,263
TOTAL LIABILITIES AND EQUITY	$	1,767,059		$	1,714,367

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three months ended July 31, 2012 and 2011

	(in thousands, except per share data)
	Three Months Ended July 31
	2012			2011
REVENUE
Real estate rentals	$	51,755		$	48,826
Tenant reimbursement		10,655			10,731
TOTAL REVENUE		62,410			59,557
EXPENSES
Depreciation/amortization related to real estate investments		15,453			14,139
Utilities		4,231			3,985
Maintenance		7,422			6,821
Real estate taxes		8,387			7,799
Insurance		921			876
Property management expenses		4,107			5,378
Administrative expenses		1,960			1,952
Advisory and trustee services		136			229
Other expenses		519			315
Amortization related to non-real estate investments		833			734
TOTAL EXPENSES		43,969			42,228
Interest expense		(16,517	)		(15,881	)
Interest income		18			53
Other income		124			100
Income from continuing operations		2,066			1,601
Loss from discontinued operations		(70	)		(28	)
NET INCOME		1,996			1,573
Net income attributable to noncontrolling interests – Operating Partnership		(251	)		(178	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(66	)		26
Net income attributable to Investors Real Estate Trust		1,679			1,421
Dividends to preferred shareholders		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	1,086		$	828
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted		.01			.01
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.00			.00
NET INCOME PER COMMON SHARE – BASIC AND DILUTED	$	.01		$	.01
DIVIDENDS PER COMMON SHARE	$	.1300		$	.1715

v

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three months ended July 31, 2012 and 2011

	(in thousands, except per share amounts)
Three Months Ended July 31,	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	$	1,679						$	1,421
Less dividends to preferred shareholders		(593	)						(593	)
Net income available to common shareholders		1,086			90,518	$	0.01		828			80,854	$	0.01
Adjustments:
Noncontrolling interest – Operating Partnership		251			20,774				178			19,990
Depreciation and amortization(1)		16,187							14,823
Gain on depreciable property sales		73							0
Funds from operations applicable to common shares and Units	$	17,597			111,292	$	0.16		15,829			100,844	$	0.16

(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 $16,286 and $14,900, less corporate-related depreciation and amortization on office equipment and other assets of $99 and $77, for the three months ended July 31, 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.

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three months ended July 31, 2012 and 2011

	(in thousands)
Three Months Ended July 31, 2012	Multi-Family Residential		Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue	$	21,635	$	18,638	$	15,327	$	3,459	$	3,351	$	62,410
Real estate expenses		9,522		9,289		4,082		1,019		1,156		25,068
Net operating income	$	12,113	$	9,349	$	11,245	$	2,440	$	2,195		37,342
Depreciation/amortization												(16,286	)
Administrative, advisory and trustee services												(2,096	)
Other expenses												(519	)
Interest expense												(16,517	)
Interest and other income												142
Income from continuing operations												2,066
Loss from discontinued operations												(70	)
Net income											$	1,996

	(in thousands)
Three Months Ended July 31, 2011	Multi-Family Residential		Commercial- Office		Commercial- Medical		Commercial- Industrial		Commercial- Retail		Total
Real estate revenue	$	17,482	$	18,815	$	16,617	$	3,435	$	3,208	$	59,557
Real estate expenses		8,366		8,944		5,520		966		1,063		24,859
Net operating income	$	9,116	$	9,871	$	11,097	$	2,469	$	2,145		34,698
Depreciation/amortization												(14,873	)
Administrative, advisory and trustee services												(2,181	)
Other expenses												(315	)
Interest expense												(15,881	)
Interest and other income												153
Income from continuing operations												1,601
Loss from discontinued operations												(28	)
Net income											$	1,573

vii

EX-99.2

Exhibit 99.2

First Quarter Fiscal 2013

Supplemental Operating and Financial Data

for the Quarter Ended July 31, 2012

CONTACT: Lindsey Knoop-Anderson Director of Investor Relations Direct Dial: 701-837-4738 E-Mail: landerson@iret.com 1400 31^st 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

July 31, 2012

	Page
Company Background and Highlights	2
Property 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	16-17
Stabilized Properties and Overall Physical Occupancy Levels by Segment	18
Tenant Analysis
Commercial Leasing Summary	19-20
Multi-Family Residential Summary	21
10 Largest Commercial Tenants - Based on Annualized Base Rent	22
Lease Expirations	23
Growth and Strategy
Acquisition Summary	24
Development Summary	25
Definitions	26

1

Company Background and Highlights

First Quarter Fiscal 2013

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

During the first quarter of fiscal year 2013, the Company closed on its acquisitions of:

· a 308-unit multi-family residential property in Topeka, Kansas, on approximately 18.3 acres of land, for a purchase price of approximately $17.7 million, of which $5.2 million was paid in cash with assumed debt of $12.5 million;

· a 232-unit multi-family residential property in Lincoln, Nebraska, on approximately 14.7 acres of land, for a purchase price of approximately $17.5 million, of which $14.2 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.3 million; and

· a 208-unit multi-family residential property in Lincoln, Nebraska, on approximately 11.5 acres of land, for a purchase price of approximately $17.3 million, of which $13.8 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.5 million.

Also during the first quarter of fiscal year 2013, the Company placed in service its 159-unit Quarry Ridge Apartment Homes development in Rochester, Minnesota, and placed in service buildings 3 and 4 (totaling 73 units) of its four-building, 145-unit Williston Garden multi-family residential development in Williston, North Dakota. The Company is the majority member of the joint venture entity that owns the Williston Garden development, with a 60% interest. As of July 31, 2012, project costs incurred for the Quarry Ridge development totaled approximately $15.6 million; the total estimated construction costs (excluding the value of the land) for the project are $17.3 million. Estimated total project costs for the Williston Garden development are approximately $19.5 million, of which the joint venture entity had incurred approximately $17.8 million as of July 31, 2012.

The Company sold two small properties in the first quarter of fiscal year 2013, in Kentwood, Michigan and Fox River, Wisconsin, for sales prices of $625,000 and $330,000, respectively.

The Company's revenues in the first quarter of fiscal year 2013 continued to be affected by low occupancy levels in its commercial office segment. Despite signs of economic recovery and renewed commercial leasing interest, the Company believes the continued elevated vacancy in its commercial office segment reflects continuing challenging 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.

In the first quarter of fiscal year 2013, IRET paid its 165^th consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on July 2, 2012. Subsequent to the end of the first quarter of fiscal year 2013, the Company declared a quarterly distribution of $0.1300 per share and unit payable on October 1, 2012 to shareholder and unitholders of record on September 17, 2012. The Board of Trustees also declared a quarterly distribution of $0.5156 per share on the Company's Series A preferred shares, payable October 1, 2012 to Series A preferred shareholders of record on September 17, 2012, and declared an initial, pro-rated distribution of $0.3312 per share on the Company's Series B preferred shares of beneficial interest, payable October 1, 2012 to Series B preferred shareholders of record on September 17, 2012. Subsequent distributions on the Series B preferred shares are payable quarterly in arrears in the amount of $0.4968 per share.

As of July 31, 2012, IRET owns a diversified portfolio of 269 properties consisting of 87 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 common shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).

2

Company Snapshot

(as of July 31, 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	269
Total Square Feet
(commercial properties)	12.3 million
Total Units
(multi-family residential properties)	10,143
Common Shares Outstanding (thousands)	91,812
Limited Partnership Units Outstanding (thousands)	21,171
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	6.4%
Total Capitalization (see p.14 for detail)	$2.1 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, Executive 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 31^st 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)

	1st Quarter Fiscal Year 2013			4th Quarter Fiscal Year 2012			3rd Quarter Fiscal Year 2012			2nd Quarter Fiscal Year 2012			1st Quarter Fiscal Year 2012
High Closing Price	$	8.31		$	7.97		$	7.64		$	8.12		$	9.69
Low Closing Price	$	7.05		$	7.22		$	6.89		$	6.92		$	8.07
Average Closing Price	$	7.57		$	7.56		$	7.27		$	7.46		$	8.87
Closing Price at end of quarter	$	8.16		$	7.22		$	7.42		$	7.41		$	8.13
Common Share Distributions—annualized	$	0.520		$	0.520		$	0.520		$	0.520		$	0.686
Closing Dividend Yield - annualized		6.4	%		7.2	%		7.0	%		7.0	%		8.4	%
Closing common shares outstanding (thousands)		91,812			89,474			85,744			83,682			81,259
Closing limited partnership units outstanding (thousands)		21,171			20,332			19,596			19,534			19,958
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	921,941		$	792,799		$	781,623		$	764,831		$	822,894

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 2012 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

First Quarter Fiscal 2013 Acquisitions and Development Projects Placed in Service

Lakeside Village Apartment Homes701 Lakeside Dr. Lincoln, NE  68528	Quarry Ridge Apartments1823 Quarry Ridge Place NW Rochester, MN  55901
Villa West Apartment Homes2744 SW Villa West Drive Topeka, KS  66614	The Colony Apartment Homes3751 Faulkner Dr. Lincoln, NE  68516

4

Property Cost by Segment – First Quarter Fiscal 2013

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

5

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
ASSETS
Real estate investments
Property owned	$	1,979,099		$	1,892,009		$	1,861,321		$	1,844,654		$	1,777,485
Less accumulated depreciation		(387,286	)		(373,490	)		(364,190	)		(351,174	)		(339,293	)
		1,591,813			1,518,519			1,497,131			1,493,480			1,438,192
Development in progress		10,498			27,599			22,281			14,124			12,697
Unimproved land		10,990			10,990			6,390			6,558			6,550
Mortgage loans receivable, net of allowance		0			0			0			155			156
Total real estate investments		1,613,301			1,557,108			1,525,802			1,514,317			1,457,595
Real estate held for sale		1,131			2,067			0			0			0
Cash and cash equivalents		37,002			39,989			35,502			32,697			37,307
Other investments		635			634			633			628			627
Receivable arising from straight-lining of rents, net of allowance		24,127			23,273			21,965			20,905			19,331
Accounts receivable, net of allowance		6,448			7,052			3,977			8,243			7,935
Real estate deposits		4			263			578			451			458
Prepaid and other assets		3,070			3,703			4,107			1,718			1,997
Intangible assets, net of accumulated amortization		43,796			44,588			49,055			50,322			48,108
Tax, insurance, and other escrow		13,161			11,669			11,427			11,315			15,198
Property and equipment, net of accumulated depreciation		1,332			1,454			1,464			1,986			1,687
Goodwill		1,120			1,120			1,120			1,127			1,127
Deferred charges and leasing costs, net of accumulated amortization		21,932			21,447			22,014			21,255			20,304
TOTAL ASSETS	$	1,767,059		$	1,714,367		$	1,677,644		$	1,664,964		$	1,611,674
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	41,084		$	47,403		$	43,439		$	39,002		$	34,547
Revolving line of credit		44,500			39,000			49,000			47,000			34,000
Mortgages payable		1,080,655			1,048,689			1,038,717			1,039,625			1,002,962
Other		25,094			14,012			6,326			1,164			6,369
TOTAL LIABILITIES		1,191,333			1,149,104			1,137,482			1,126,791			1,077,878
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		0			0			0			1,005			1,263
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		701,431			684,049			657,304			643,022			627,722
Accumulated distributions in excess of net income		(289,025	)		(278,377	)		(269,942	)		(260,535	)		(250,585	)
Total Investors Real Estate Trust shareholders' equity		439,723			432,989			414,679			409,804			404,454
Noncontrolling interests – Operating Partnership		122,373			118,710			114,852			116,550			119,382
Noncontrolling interests – consolidated real estate entities		13,630			13,564			10,631			10,814			8,697
Total equity		575,726			565,263			540,162			537,168			532,533
TOTAL LIABILITIES AND EQUITY	$	1,767,059		$	1,714,367		$	1,677,644		$	1,664,964		$	1,611,674

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Three Months Ended
OPERATING RESULTS	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
Real estate revenue	$	62,410		$	60,621		$	60,981		$	60,629		$	59,557
Real estate expenses		25,068			22,851			24,807			25,761			24,859
Gain on involuntary conversion		0			274			0			0			0
Net operating income		37,342			38,044			36,174			34,868			34,698
Depreciation/amortization		(16,286	)		(15,210	)		(15,245	)		(14,936	)		(14,873	)
Administrative expenses, advisory and trustee services		(2,096	)		(1,437	)		(1,659	)		(2,104	)		(2,181	)
Other expenses		(519	)		(389	)		(359	)		(835	)		(315	)
Interest		(16,517	)		(16,430	)		(16,511	)		(16,291	)		(15,881	)
Interest and other income		142			141			279			213			153
Income from continuing operations		2,066			4,719			2,679			915			1,601
(Loss) income from discontinued operations		(70	)		(598	)		(158	)		576			(28	)
Net income	$	1,996		$	4,121		$	2,521		$	1,491		$	1,573
Net (income) loss attributable to noncontrolling interest – Operating Partnership		(251	)		(636	)		(351	)		(194	)		(178	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(66	)		(106	)		(43	)		(12	)		26
Net income attributable to Investors Real Estate Trust		1,679			3,379			2,127			1,285			1,421
Dividends to preferred shareholders		(593	)		(593	)		(593	)		(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,086		$	2,786		$	1,534		$	692		$	828
Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.01		$	.04		$	.02		$	.00		$	.01
Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.00			(.01	)		.00			.01			.00
Net income (loss) per common share – basic & diluted	$	.01		$	.03		$	.02		$	.01		$	.01
Percentage of Revenues
Real estate expenses		40.2	%		37.7	%		40.7	%		42.5	%		41.7	%
Depreciation/amortization		26.1	%		25.1	%		25.0	%		24.6	%		25.0	%
General and administrative		3.4	%		2.4	%		2.7	%		3.5	%		3.7	%
Interest		26.5	%		27.1	%		27.1	%		26.9	%		26.7	%
(Loss) income from discontinued operations		0.1	%		1.0	%		0.3	%		1.0	%		0.0	%
Net income		3.2	%		6.8	%		4.1	%		2.5	%		2.6	%
Ratios
EBITDA(1)/Interest expense		2.09	x		2.17	x		2.07	x		1.97	x		2.03	x
EBITDA(1)/Interest expense plus preferred distributions		2.02	x		2.09	x		2.00	x		1.90	x		1.95	x

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

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS(unaudited)

(in thousands, except per share and unit data)

	Three Months Ended
	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	1,679		$	3,379		$	2,127		$	1,285		$	1,421
Less dividends to preferred shareholders		(593	)		(593	)		(593	)		(593	)		(593	)
Net income available to common shareholders		1,086			2,786			1,534			692			828
Adjustments:
Noncontrolling interests – Operating Partnership		251			636			351			194			178
Depreciation and amortization		16,187			15,165			15,179			14,890			14,823
Real estate impairment		0			293			135			0			0
Loss (gain) on depreciable property sales		73			240			0			(589	)		0
Funds from operations applicable to common shares and Units	$	17,597		$	19,120		$	17,199		$	15,187		$	15,829
FFO per share and unit - basic and diluted	$	0.16		$	0.18		$	0.16		$	0.15		$	0.16
Adjusted funds from operations(1)
Funds from operations applicable to common shares and Units	$	17,597		$	19,120		$	17,199		$	15,187		$	15,829
Adjustments:
Tenant improvements		(2,206	)		(4,846	)		(2,007	)		(2,021	)		(1,435	)
Leasing commissions		(1,335	)		701			(1,589	)		(1,182	)		(703	)
Recurring capital expenditures(1)		(1,987	)		(1,451	)		(1,411	)		(1,872	)		(1,969	)
Straight-line rents		(864	)		(1,330	)		(1,059	)		(1,597	)		(398	)
Non-real estate depreciation		136			78			114			90			127
Adjusted funds from operations applicable to common shares and Units	$	11,341		$	12,272		$	11,247		$	8,605		$	11,451
AFFO per share and unit - basic and diluted		0.10			0.11			0.11			0.09			0.11
Weighted average shares and units		111,292			107,316			103,935			101,669			100,844

(1) See Definitions on page 26.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Three Months Ended
	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	1,679		$	3,379		$	2,127		$	1,285		$	1,421
Adjustments:
Noncontrolling interests – Operating Partnership		251			636			351			194			178
Income before noncontrolling interests – Operating Partnership		1,930			4,015			2,478			1,479			1,599
Add:
Interest		16,517			16,454			16,533			16,318			15,925
Depreciation/amortization related to real estate investments		15,453			14,390			14,359			14,193			14,166
Amortization related to non-real estate investments		833			821			903			758			734
Amortization related to real estate revenues(2)		37			30			31			29			51
Less:
Interest income		(18	)		(33	)		(25	)		(37	)		(53	)
Gain on sale of real estate, land and other investments		73			240			0			(589	)		0
Gain on involuntary conversion		0			(274	)		0			0			0
EBITDA	$	34,825		$	35,643		$	34,279		$	32,151		$	32,422

(1) See Definitions on page 26.

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

9

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt

	Future Maturities of Mortgage Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2013	$	19,196	$	0	$	19,196		5.59	%		1.8	%
2014		47,383		677		48,060		5.76	%		4.4	%
2015		75,072		9,750		84,822		5.62	%		7.9	%
2016		71,178		0		71,178		5.90	%		6.6	%
2017		188,742		0		188,742		6.14	%		17.5	%
2018		64,125		0		64,125		5.70	%		5.9	%
2019		98,586		5,664		104,250		5.92	%		9.6	%
2020		116,098		0		116,098		5.86	%		10.7	%
2021		137,409		0		137,409		5.44	%		12.7	%
2022		140,138		0		140,138		5.63	%		13.0	%
Thereafter		106,637		0		106,637		5.05	%		9.9	%
Total maturities	$	1,064,564	$	16,091	$	1,080,655		5.72	%		100.0	%

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

	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
Balances Outstanding
Mortgage
Fixed rate	$	1,064,564		$	1,032,543		$	1,028,198		$	1,033,550		$	996,256
Variable rate		16,091			16,146			10,519			6,075			6,706
Mortgage total	$	1,080,655		$	1,048,689		$	1,038,717		$	1,039,625		$	1,002,962
Weighted Average Interest Rates
Secured		5.72	%		5.78	%		5.84	%		5.86	%		5.90	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JULY 31, 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	$	2,941	$	0	$	0	$	0	$	0	$	2,941
Quarry Ridge - Rochester, MN	10/1/2013		0		11,808		0		0		0		11,808
East Park - Sioux Falls, SD	12/1/2013		0		1,488		0		0		0		1,488
Sycamore Village - Sioux Falls, SD	12/1/2013		0		837		0		0		0		837
Candlelight - Fargo, ND	3/1/2014		0		1,263		0		0		0		1,263
Evergreen II - Isanti, MN	11/1/2014		0		0		2,176		0		0		2,176
Campus Center - St Cloud, MN	6/1/2015		0		0		0		1,333		0		1,333
Campus Knoll - St Cloud, MN	6/1/2015		0		0		0		889		0		889
Landmark - Grand Forks, ND	8/24/2015		0		0		0		1,744		0		1,744
Regency Park Estates - St Cloud, MN	1/1/2016		0		0		0		7,065		0		7,065
Summary of Debt due after Fiscal 2016			0		0		0		0		318,364		318,364
Sub-Total Multi-Family Residential		$	2,941	$	15,396	$	2,176	$	11,031	$	318,364	$	349,908
Commercial Office
Great Plains - Fargo, ND	10/1/2013	$	0	$	1,636	$	0	$	0	$	0	$	1,636
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		2,557		0		0		0		2,557
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		1,326		0		0		0		1,326
Viromed - Eden Prairie, MN	4/1/2014		0		552		0		0		0		552
Wirth Corporate Center - Golden Valley, MN	4/1/2014		0		3,538		0		0		0		3,538
TCA Building - Eagan, MN	5/1/2014		0		0		7,424		0		0		7,424
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		1,747		0		0		1,747
Plymouth IV - Plymouth, MN	8/8/2014		0		0		3,222		0		0		3,222
Plymouth V - Plymouth, MN	8/8/2014		0		0		3,766		0		0		3,766
Plaza VII - Boise, ID	9/1/2014		0		0		1,037		0		0		1,037
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		3,393		0		0		3,393
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		10,178		0		0		10,178
Northgate I - Maple Grove, MN	12/10/2014		0		0		5,296		0		0		5,296
Plymouth I - Plymouth, MN	12/10/2014		0		0		1,187		0		0		1,187
Plymouth II - Plymouth, MN	12/10/2014		0		0		1,187		0		0		1,187
Plymouth III - Plymouth, MN	12/10/2014		0		0		1,461		0		0		1,461
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		0		610		0		0		610
West River Business Park - Waite Park, MN	1/1/2015		0		0		610		0		0		610
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		0		8,383		0		0		8,383
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		0		8,111		0		0		8,111
US Bank Financial Center - Bloomington, MN	7/1/2015		0		0		0		13,654		0		13,654
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		0		0		1,503		0		1,503
Westgate I - Boise, ID	8/1/2015		0		0		0		1,224		0		1,224
Westgate II - Boise, ID	8/1/2015		0		0		0		2,998		0		2,998
Brook Valley I - LaVista, NE	1/1/2016		0		0		0		1,334		0		1,334
Spring Valley IV - Omaha, NE	1/1/2016		0		0		0		794		0		794
Spring Valley V - Omaha, NE	1/1/2016		0		0		0		873		0		873
Spring Valley X - Omaha, NE	1/1/2016		0		0		0		810		0		810
Spring Valley XI - Omaha, NE	1/1/2016		0		0		0		794		0		794
Summary of Debt due after Fiscal 2016			0		0		0		0		254,040		254,040
Sub-Total Commercial Office		$	0	$	9,609	$	62,862	$	23,984	$	254,040	$	350,495

11

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JULY 31, 2012 (continued)(in thousands)

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Commercial Medical
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		1,952		0		0		1,952
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		0		2,974		0		0		2,974
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		0		1,118		0		0		1,118
Garden View Medical - St Paul, MN	8/1/2015		0		0		0		1,695		0		1,695
2800 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		5,540		0		5,540
2828 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		8,492		0		8,492
Edina 6405 France Medical - Edina, MN	9/1/2015		0		0		0		9,002		0		9,002
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		0		0		6,631		0		6,631
Summary of Debt due after Fiscal 2016(2)			0		0		0		0		233,768		233,768
Sub-Total Commercial Medical		$	0	$	5,400	$	6,044	$	31,360	$	233,768	$	276,572
Commercial Industrial
Dixon Avenue Industrial Park - Des Moines, IA	1/1/2013	$	6,959	$	0	$	0	$	0	$	0	$	6,959
Bloomington 2000 West 94th Street - Bloomington, MN	3/1/2013		3,763		0		0		0		0		3,763
Roseville 2929 Long Lake Road - Roseville, MN	3/1/2013		5,533		0		0		0		0		5,533
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		1,100		0		0		0		1,100
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		2,320		0		0		0		2,320
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		2,730		0		0		0		2,730
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		2,204		0		0		2,204
Metal Improvement Company - New Brighton, MN	9/30/2014		0		0		1,477		0		0		1,477
Winsted Industrial Building	9/30/2014		0		0		390		0		0		390
Stone Container - Fargo, ND	12/1/2015		0		0		0		787		0		787
Stone Container - Fargo, ND	12/1/2015		0		0		0		994		0		994
Summary of Debt due after Fiscal 2016			0		0		0		0		23,477		23,477
Sub-Total Commercial Industrial		$	16,255	$	6,150	$	8,571	$	1,781	$	23,477	$	56,234

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JULY 31, 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	$	377	$	0	$	0	$	0	$	377
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		300		0		0		0		300
St Cloud Westgate - St Cloud, MN	10/10/2013		0		3,151		0		0		0		3,151
Eagan I Retail Center - Eagan, MN(3)	12/22/2013		0		1,327		0		0		0		1,327
Forest Lake Westlake Center - Forest Lake, MN(3)	12/22/2013		0		4,243		0		0		0		4,243
Pine City C-Store  - Pine City, MN(3)	4/20/2014		0		295		0		0		0		295
Pine City Evergreen Square - Pine City, MN(3)	4/20/2014		0		1,812		0		0		0		1,812
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		0		2,525		0		0		2,525
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		0		693		0		0		693
Fargo Express Center - Fargo, ND	10/1/2014		0		0		978		0		0		978
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		0		973		0		0		973
Grand Forks MedPark Mall - Grand Forks, ND(3)	5/21/2015		0		0		0		3,022		0		3,022
Summary of Debt due after Fiscal 2016			0		0		0		0		27,750		27,750
Sub-Total Commercial Retail		$	0	$	11,505	$	5,169	$	3,022	$	27,750	$	47,446
Total		$	19,196	$	48,060	$	84,822	$	71,178	$	857,399	$	1,080,655

* Mortgage debt does not include the Company's multi-bank line of credit or construction loans.  The line of credit has a maturity date of August 12, 2013; as of July 31, 2012, the Company had borrowings of $44.5 million outstanding under this line. Construction loans totaled $25.0 million as of July 31, 2012.

(1) Totals are principal balances as of July 31, 2012.

(2) Subsequent to the end of the first quarter of fiscal year 2013, the Company paid off, without penalty, $20.1 million of commercial mortgage debt with an original maturity date in fiscal year 2023.

(3) Mortgage loan was paid off without penalty subsequent to the end of the first quarter of fiscal year 2013.

13

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	07/31/2012		04/30/2012		01/31/2012		10/31/2011		07/31/2011
Equity Capitalization
Common shares outstanding		91,812		89,474		85,744		83,682		81,259
Operating partnership (OP) units outstanding		21,171		20,332		19,596		19,534		19,958
Total common shares and OP units outstanding		112,983		109,806		105,340		103,216		101,217
Market price per common share (closing price at end of period)	$	8.16	$	7.22	$	7.42	$	7.41	$	8.13
Equity capitalization-common shares and OP units	$	921,941	$	792,799	$	781,623	$	764,831	$	822,894
Recorded book value of preferred shares	$	27,317	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	949,258	$	820,116	$	808,940	$	792,148	$	850,211
Debt Capitalization
Total debt	$	1,150,123	$	1,101,564	$	1,095,416	$	1,087,625	$	1,043,152
Total capitalization	$	2,099,381	$	1,621,680	$	1,604,356	$	1,879,773	$	1,893,363
Total debt to total capitalization	0.55:1		0.57:1		0.58:1		0.58:1		0.55:1

	Three Months Ended
	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
Earnings to fixed charges(1)		1.11	x		1.25	x		1.15	x		1.05	x		1.10	x
Earnings to combined fixed charges and preferred distributions(1)		1.07	x		1.21	x		1.11	x		1.02	x		1.06	x
Debt service coverage ratio(1)		1.45	x		1.49	x		1.43	x		1.37	x		1.41	x
Distribution Data
Common shares and units outstanding at record date		111,525			106,642			103,761			101,439			100,725
Total common distribution paid	$	14,413		$	13,809		$	13,486		$	13,186		$	17,275
Common distribution per share and unit	$	.1300		$	.1300		$	.1300		$	.1300		$	.1715
Payout ratio (FFO per share and unit basis)(1)		81.3	%		72.2	%		81.3	%		86.7	%		107.2	%
Payout ratio (AFFO per share and unit basis)(1)		130.0	%		118.2	%		118.2	%		144.4	%		155.9	%

(1) See Definitions on page 26.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)
	Three Months Ended July 31,
Segment	2012		2011		% Change
Multi-Family Residential	$	10,038	$	9,072		10.6	%
Commercial Office		9,349		9,871		(5.3	)%
Commercial Medical		10,371		11,097		(6.5	)%
Commercial Industrial		2,440		2,469		(1.2	)%
Commercial Retail		2,195		2,145		2.3	%
	$	34,393	$	34,654		(0.8	)%

(1) See list of properties excluded from stabilized properties on page ii.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 31, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	18,331		$	18,638		$	14,331		$	3,459		$	3,351		$	0		$	58,110
Non-Stabilized		3,304			0			996			0			0			0			4,300
Total		21,635			18,638			15,327			3,459			3,351			0			62,410
Real estate expenses
Stabilized(1)		8,293			9,289			3,960			1,019			1,156			0			23,717
Non-Stabilized		1,229			0			122			0			0			0			1,351
Total		9,522			9,289			4,082			1,019			1,156			0			25,068
Gain on involuntary conversion
Stabilized(1)		0			0			0			0			0			0			0
Total		0			0			0			0			0			0			0
Stabilized(1)		10,038			9,349			10,371			2,440			2,195			0			34,393
Non-Stabilized		2,075			0			874			0			0			0			2,949
Net operating income	$	12,113		$	9,349		$	11,245		$	2,440		$	2,195		$	0		$	37,342
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(4,588	)	$	(5,211	)	$	(4,477	)	$	(940	)	$	(934	)	$	(136	)	$	(16,286	)
Administrative, advisory and trustee fees		0			0			0			0			0			(2,096	)		(2,096	)
Other expenses		0			0			0			0			0			(519	)		(519	)
Interest expense		(4,909	)		(5,270	)		(4,099	)		(874	)		(707	)		(658	)		(16,517	)
Interest and other income		0			0			0			0			0			142			142
Income(loss)from continuing operations		2,616			(1,132	)		2,669			626			554			(3,267	)		2,066
Income(loss) from discontinued operations		0			0			0			0			(64	)		(6	)		(70	)
Net income (loss)		2,616			(1,132	)		2,669			626			490			(3,273	)		1,996
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(251	)		(251	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(66	)		(66	)
Net income (loss) attributable to Investors Real Estate Trust		2,616			(1,132	)		2,669			626			490			(3,590	)		1,679
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,616			(1,132	)		2,669			626			490		$	(4,183	)	$	1,086

(1) See list of properties excluded from stabilized properties on page ii.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,387		$	18,815		$	16,617		$	3,435		$	3,208		$	0		$	59,462
Non-Stabilized		95			0			0			0			0			0			95
Total		17,482			18,815			16,617			3,435			3,208			0			59,557
Real estate expenses
Stabilized(1)		8,315			8,944			5,520			966			1,063			0			24,808
Non-Stabilized		51			0			0			0			0			0			51
Total		8,366			8,944			5,520			966			1,063			0			24,859
Net Operating Income (NOI)
Stabilized(1)		9,072			9,871			11,097			2,469			2,145			0			34,654
Non-Stabilized		44			0			0			0			0			0			44
Net operating income	$	9,116		$	9,871		$	11,097		$	2,469		$	2,145		$	0		$	34,698
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,519	)	$	(5,361	)	$	(4,193	)	$	(880	)	$	(821	)	$	(99	)	$	(14,873	)
Administrative, advisory and trustee services		0			0			0			0			0			(2,181	)		(2,181	)
Other expenses		0			0			0			0			0			(315	)		(315	)
Interest expense		(4,521	)		(5,198	)		(3,940	)		(936	)		(768	)		(518	)		(15,881	)
Interest and other income		0			0			0			0			0			153			153
Income (loss) from continuing operations		1,076			(688	)		2,964			653			556			(2,960	)		1,601
Income from discontinued operations		0			0			(24	)		0			(4	)		0			(28	)
Net income (loss)		1,076			(688	)		2,940			653			552			(2,960	)		1,573
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(178	)		(178	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			26			26
Net income (loss) attributable to Investors Real Estate Trust		1,076			(688	)		2,940			653			552			(3,112	)		1,421
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,076		$	(688	)	$	2,940		$	653		$	552		$	(3,705	)	$	828

(1) See list of properties excluded from stabilized properties on page ii.

17

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

1^st Quarter Fiscal 2013 vs. 1^st Quarter Fiscal 2012

Segments	Stabilized Properties		All Properties
	1st Quarter	1st Quarter	1st Quarter	1st Quarter
	Fiscal 2013	Fiscal 2012	Fiscal 2013	Fiscal 2012
Multi-Family Residential	93.5%	91.5%	92.8%	91.5%
Commercial Office	78.8%	78.4%	78.8%	78.4%
Commercial Medical	95.0%	95.7%	95.3%	95.7%
Commercial Industrial	90.0%	94.7%	90.0%	94.7%
Commercial Retail	87.5%	86.0%	87.5%	86.0%

18

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three months ended July 31, 2012

	Three Months Ended July 31, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		34,640		64,179		98,819		243,502		(144,683	)
Commercial Medical		6,887		1,468		8,355		9,803		(1,448	)
Commercial Industrial		0		9,702		9,702		32,717		(23,015	)
Commercial Retail		9,070		2,420		11,490		23,292		(11,802	)
Total All Segments		50,597		77,769		128,366		309,314		(180,948	)
Weighted Average Rental Rates(3)
Commercial Office	$	15.71	$	16.10	$	15.96	$	13.51	$	2.45			18.2	%
Commercial Medical		22.41		23.16		22.54		21.83		0.71			3.3	%
Commercial Industrial		0.00		5.84		5.84		3.88		1.96			50.5	%
Commercial Retail		12.40		16.62		13.29		9.37		3.92			41.8	%
Total All Segments	$	16.03	$	14.97	$	15.39	$	12.44	$	2.95			23.7	%

	Three Months Ended July 31, 2012
	New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased(4)
Commercial Office		3.5		2.9		3.1
Commercial Medical		5.4		5.0		5.3
Commercial Industrial		0.0		3.3		3.3
Commercial Retail		3.7		4.0		3.8
Total All Segments		4.1		3.2		3.6

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

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

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

(4) Term in years.

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING COMMITMENTS

for the three months ended July 31, 2012

	1st Quarter Fiscal 2013 Total
	(dollars in thousands)
	New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	489	$	121	$	610
Commercial Medical		373		37		410
Commercial Industrial		0		5		5
Commercial Retail		3		0		3
Subtotal	$	865	$	163	$	1,028
Tenant Improvements per square foot
Commercial Office	$	14.12	$	1.89	$	6.18
Commercial Medical		54.15		25.00		49.03
Commercial Industrial		0.00		0.52		0.52
Commercial Retail		0.33		0.00		0.26
All Segments	$	17.10	$	2.09	$	8.01
Leasing Costs
Commercial Office	$	264	$	108	$	372
Commercial Medical		48		4		52
Commercial Industrial		0		19		19
Commercial Retail		6		3		9
Subtotal	$	318	$	134	$	452
Leasing Costs per square foot
Commercial Office	$	7.62	$	1.68	$	3.76
Commercial Medical		7.05		2.85		6.31
Commercial Industrial		0.00		1.98		1.98
Commercial Retail		0.62		1.21		0.74
All Segments	$	6.29	$	1.72	$	3.52
Tenant Improvements and Leasing Costs
Commercial Office	$	753	$	229	$	982
Commercial Medical		421		41		462
Commercial Industrial		0		24		24
Commercial Retail		9		3		12
Total	$	1,183	$	297	$	1,480
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	21.74	$	3.57	$	9.94
Commercial Medical		61.20		27.85		55.34
Commercial Industrial		0.00		2.50		2.50
Commercial Retail		0.95		1.21		1.00
All Segments	$	23.38	$	3.82	$	11.53

20

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	07/31/2012			04/30/2012			01/31/2012			10/31/2011			07/31/2011
Number of Units		10,143			9,161			8,921			8,885			8,664
Average Investment Per Unit
Stabilized	$	57,255		$	56,983		$	56,955		$	56,615		$	56,151
Non-Stabilized		83,113			81,277			75,465			65,675			55,365
	$	60,724		$	58,518		$	57,762		$	56,926		$	56,140
Average Scheduled Rent(1) per Unit
Stabilized	$	721		$	713		$	711		$	705		$	700
Non-Stabilized		889			887			841			949			785
	$	743		$	724		$	716		$	714		$	701
Total Receipts per Unit
Stabilized	$	711		$	704		$	700		$	696		$	674
Non-Stabilized		831			831			826			814			793
	$	727		$	712		$	705		$	700		$	675
Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	207		$	156		$	155		$	213		$	228
Non-Stabilized		123			119			179			110			320
	$	194		$	154		$	156		$	209		$	229
Physical Occupancy%
Stabilized		93.5	%		94.2	%		93.9	%		95.2	%		91.4	%
Non-Stabilized		88.7	%		86.8	%		77.4	%		82.2	%		97.0	%
		92.8	%		93.7	%		93.2	%		94.6	%		91.5	%
Operating Expenses as a % of Scheduled Rent
Stabilized		44.9	%		46.4	%		45.9	%		47.1	%		46.3	%
Non-Stabilized		34.8	%		39.0	%		40.5	%		36.5	%		43.1	%
Total		43.3	%		45.8	%		45.6	%		46.6	%		46.2	%

(1) See Definitions on page 26.

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of July 1, 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	94	12.4%	1,450,585	13.6%
St. Luke's Hospital of Duluth, Inc.	6	42	3.5%	198,775	1.9%
Fairview Health Services	9	75	3.4%	243,581	2.3%
Applied Underwriters	3	55	2.2%	141,724	1.3%
Affiliates of Siemens USA (NYSE: SI)	2	56	1.6%	112,848	1.1%
HealthEast Care System	1	79	1.6%	114,316	1.1%
Nebraska Orthopedic Hospital	1	200	1.3%	61,758	0.6%
Microsoft (NASDAQ: MSFT)	1	77	1.3%	122,040	1.1%
Arcadis Corporate Services, Inc.	1	48	1.2%	71,430	0.7%
State of Idaho Department of Health and Welfare	2	67	1.1%	103,342	1.0%
Total/Weighted Average		80	29.6%	2,620,399	24.7%

(1) See Definitions on page 26.

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of July 31, 2012

	(dollars in thousands except average rental rates)
Fiscal Year	Number of Leases		Rentable Square Feet		% of Rentable Square Feet			Annualized Rent*		Average Rental Rate		% of Annualized Base Rent
Commercial Office
2013		35		255,473		6.7	%	$	3,474	$	13.60		6.3	%
2014		57		547,111		14.4	%		6,919		12.65		12.6	%
2015		74		506,293		13.4	%		7,333		14.48		13.3	%
2016		42		559,085		14.8	%		8,854		15.84		16.1	%
2017		44		827,259		21.8	%		13,828		16.72		25.2	%
2018 and thereafter		47		1,093,541		28.9	%		14,565		13.32		26.5	%
		299		3,788,762		100.0	%	$	54,973	$	14.51		100.0	%
Commercial Medical
2013		19		111,711		4.0	%	$	2,335	$	20.90		4.9	%
2014		24		395,597		14.3	%		6,856		17.33		14.4	%
2015		15		59,362		2.2	%		1,428		24.06		3.0	%
2016		24		175,113		6.3	%		3,590		20.50		7.6	%
2017		20		133,237		4.8	%		2,812		21.11		5.9	%
2018 and thereafter		85		1,893,228		68.4	%		30,475		16.10		64.2	%
		187		2,768,248		100.0	%	$	47,496	$	17.16		100.0	%
Commercial Industrial
2013		4		193,988		7.5	%	$	505	$	2.60		4.9	%
2014		10		321,629		12.5	%		1,217		3.78		11.8	%
2015		6		344,493		13.4	%		1,398		4.06		13.5	%
2016		9		689,564		26.7	%		2,976		4.32		28.8	%
2017		5		311,141		12.1	%		1,175		3.78		11.4	%
2018 and thereafter		7		716,095		27.8	%		3,060		4.27		29.6	%
		41		2,576,910		100.0	%	$	10,331	$	4.01		100.0	%
Commercial Retail
2013		23		125,275		10.8	%	$	801	$	6.39		8.2	%
2014		41		209,011		18.0	%		1,320		6.32		13.6	%
2015		34		296,123		25.5	%		2,269		7.66		23.4	%
2016		23		97,266		8.4	%		1,160		11.93		11.9	%
2017		22		102,084		8.8	%		1,094		10.72		11.3	%
2018 and thereafter		24		331,120		28.5	%		3,070		9.27		31.6	%
		167		1,160,879		100.0	%	$	9,714	$	8.37		100.0	%
Commercial Total
2013		81		686,447		6.7	%	$	7,115	$	10.36		5.8	%
2014		132		1,473,348		14.3	%		16,312		11.07		13.3	%
2015		129		1,206,271		11.7	%		12,428		10.30		10.2	%
2016		98		1,521,028		14.8	%		16,580		10.90		13.5	%
2017		91		1,373,721		13.3	%		18,909		13.76		15.4	%
2018 and thereafter		163		4,033,984		39.2	%		51,170		12.68		41.8	%
		694		10,294,799		100.0	%	$	122,514	$	11.90		100.0	%

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

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2013 ACQUISITION SUMMARY

as of July 31, 2012

($'s in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units		Leased Percentage At Acquisition			July 31, 2012 Leased Percentage			Acquisition Cost
Villa West	Topeka, KS	Multi-Family Residential	May 8, 2012		308		98.1	%		94.8	%	$	17,650
Colony	Lincoln, NE	Multi-Family Residential	June 4, 2012		232		98.3	%		99.1	%		17,500
Lakeside Village	Lincoln, NE	Multi-Family Residential	June 4, 2012		208		86.5	%		83.7	%		17,250
Quarry Ridge II(1)	Rochester, MN	Multi-Family Residential	June 29, 2012		161		33.3	%		50.0	%		3,543
Williston Garden Buildings 3 and 4(2)	Williston, ND	Multi-Family Residential	July 31, 2012		72		98.6	%		98.6	%		4,158
			Total Square Feet		0							$	60,101
			Total Units		981

(1) Development property placed in service June 29, 2012. Additional costs paid in fiscal years 2012 and 2011, and land acquired in fiscal year 2007, totaled $13.0 million, for a total project cost at July 31, 2012 of $16.5 million.

(2) Development property placed in service July 31, 2012. Buildings 1 and 2 were placed in service in fiscal year 2012. Additional costs paid in fiscal year 2012 totaled $12.1 million, for a total project cost at July 31, 2012 of $16.2 million.

24

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2013 DEVELOPMENT IN PROGESS SUMMARY

as of July 31, 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
Spring Wind - Laramie, WY	29 assisted living units and 16 memory care units		100	%		3,800		3,107	2nd Quarter Fiscal 2013
Industrial-Office Build-to-Suit - Minot, ND	28,000 sf. commercial industrial building		100	%		5,799		3,647	2nd Quarter Fiscal 2013
Jamestown Medical Office Building – Jamestown, ND(1)	45,000 square foot medical office building		88	%		9,200		3,022	3rd Quarter Fiscal 2013
Multi-Family Conversion - Minot, ND	Convert 15,000 sf. commercial office to 20 multi-family residential units		0	%		3,000		647	4th Quarter Fiscal 2013
Branch Bank Building – Minot, ND	3,700 square foot commercial office building		100	%		1,700		75	4th Quarter Fiscal 2013
					$	23,499	$	10,498

(1) 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.

25

Definitions

July 31, 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 measure1.  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.

26