North Dakota
|
45-0311232
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
1400 31st Avenue SW, Suite 60
|
|
Post Office Box 1988
|
|
Minot, ND 58702-1988
|
|
(Address of principal executive offices) (Zip code)
|
|
Yes R
|
No £
|
|
Yes R
|
No £
|
|
Large accelerated filer £
|
Accelerated filer R
|
|
Non-accelerated filer £
|
Smaller Reporting Company £
|
|
Yes £
|
No R
|
|
Page
|
Part I. Financial Information
|
|
Item 1. Financial Statements - Second Quarter - Fiscal 2013:
|
3
|
Condensed Consolidated Balance Sheets (unaudited)
|
3
|
October 31, 2012 and April 30, 2012
|
|
Condensed Consolidated Statements of Operations (unaudited)
|
4
|
For the Three and Six Months ended October 31, 2012 and 2011
|
|
Condensed Consolidated Statements of Equity (unaudited)
|
5
|
For the Six Months ended October 31, 2012 and 2011
|
|
Condensed Consolidated Statements of Cash Flows (unaudited)
|
6
|
For the Six Months ended October 31, 2012 and 2011
|
|
Notes to Condensed Consolidated Financial Statements (unaudited)
|
8
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
25
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
48
|
Item 4. Controls and Procedures
|
48
|
|
|
Part II. Other Information
|
|
Item 1. Legal Proceedings
|
49
|
Item 1A. Risk Factors
|
49
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
49
|
Item 3. Defaults Upon Senior Securities
|
49
|
Item 4. Mine Safety Disclosures
|
49
|
Item 5. Other Information
|
49
|
Item 6. Exhibits
|
49
|
Signatures
|
50
|
|
(in thousands, except share data)
|
|||||||
|
October 31, 2012
|
April 30, 2012
|
||||||
ASSETS
|
||||||||
Real estate investments
|
||||||||
Property owned
|
$
|
1,983,978
|
$
|
1,892,009
|
||||
Less accumulated depreciation
|
(394,256
|
)
|
(373,490
|
)
|
||||
|
1,589,722
|
1,518,519
|
||||||
Development in progress
|
23,218
|
27,599
|
||||||
Unimproved land
|
11,670
|
10,990
|
||||||
Total real estate investments
|
1,624,610
|
1,557,108
|
||||||
Real estate held for sale
|
1,844
|
2,067
|
||||||
Cash and cash equivalents
|
84,258
|
39,989
|
||||||
Other investments
|
637
|
634
|
||||||
Receivable arising from straight-lining of rents, net of allowance of $1,310 and $1,209, respectively
|
24,895
|
23,273
|
||||||
Accounts receivable, net of allowance of $410 and $154, respectively
|
2,854
|
7,052
|
||||||
Real estate deposits
|
55
|
263
|
||||||
Prepaid and other assets
|
2,101
|
3,703
|
||||||
Intangible assets, net of accumulated amortization of $25,579 and $47,813, respectively
|
42,281
|
44,588
|
||||||
Tax, insurance, and other escrow
|
12,177
|
11,669
|
||||||
Property and equipment, net of accumulated depreciation of $1,518 and $1,423, respectively
|
1,351
|
1,454
|
||||||
Goodwill
|
1,110
|
1,120
|
||||||
Deferred charges and leasing costs, net of accumulated amortization of $16,484 and $16,244, respectively
|
21,164
|
21,447
|
||||||
TOTAL ASSETS
|
$
|
1,819,337
|
$
|
1,714,367
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts payable and accrued expenses
|
$
|
38,762
|
$
|
47,403
|
||||
Revolving line of credit
|
10,000
|
39,000
|
||||||
Mortgages payable
|
1,045,197
|
1,048,689
|
||||||
Other
|
32,889
|
14,012
|
||||||
TOTAL LIABILITIES
|
1,126,848
|
1,149,104
|
||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6)
|
||||||||
EQUITY
|
||||||||
Investors Real Estate Trust shareholders' equity
|
||||||||
Series A Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at October 31, 2012 and April 30, 2012, aggregate liquidation preference of $28,750,000)
|
27,317
|
27,317
|
||||||
Series B Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 4,600,000 and 0 shares issued and outstanding at October 31, 2012 and April 30, 2012, respectively, aggregate liquidation preference of $115,000,000)
|
111,357
|
0
|
||||||
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 93,161,087 shares issued and outstanding at October 31, 2012, and 89,473,838 shares issued and outstanding at April 30, 2012)
|
711,880
|
684,049
|
||||||
Accumulated distributions in excess of net income
|
(295,396
|
)
|
(278,377
|
)
|
||||
Total Investors Real Estate Trust shareholders' equity
|
555,158
|
432,989
|
||||||
Noncontrolling interests – Operating Partnership (21,336,222 units at October 31, 2012 and 20,332,415 units at April 30, 2012)
|
122,357
|
118,710
|
||||||
Noncontrolling interests – consolidated real estate entities
|
14,974
|
13,564
|
||||||
Total equity
|
692,489
|
565,263
|
||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
1,819,337
|
$
|
1,714,367
|
|
(in thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended
October 31
|
Six Months Ended
October 31
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
REVENUE
|
||||||||||||||||
Real estate rentals
|
$
|
53,389
|
$
|
49,371
|
$
|
104,719
|
$
|
97,804
|
||||||||
Tenant reimbursement
|
11,554
|
10,829
|
22,210
|
21,560
|
||||||||||||
TOTAL REVENUE
|
64,943
|
60,200
|
126,929
|
119,364
|
||||||||||||
EXPENSES
|
||||||||||||||||
Depreciation/amortization related to real estate investments
|
15,707
|
14,116
|
31,096
|
28,190
|
||||||||||||
Utilities
|
4,859
|
4,848
|
9,057
|
8,792
|
||||||||||||
Maintenance
|
6,511
|
6,888
|
13,853
|
13,653
|
||||||||||||
Real estate taxes
|
8,281
|
7,624
|
16,628
|
15,381
|
||||||||||||
Insurance
|
954
|
773
|
1,862
|
1,638
|
||||||||||||
Property management expenses
|
4,199
|
5,394
|
8,245
|
10,705
|
||||||||||||
Administrative expenses
|
1,918
|
1,911
|
3,878
|
3,863
|
||||||||||||
Advisory and trustee services
|
143
|
193
|
279
|
422
|
||||||||||||
Other expenses
|
513
|
835
|
1,032
|
1,150
|
||||||||||||
Amortization related to non-real estate investments
|
799
|
758
|
1,632
|
1,492
|
||||||||||||
TOTAL EXPENSES
|
43,884
|
43,340
|
87,562
|
85,286
|
||||||||||||
Gain on involuntary conversion
|
2,263
|
0
|
2,263
|
0
|
||||||||||||
Interest expense
|
(16,300
|
)
|
(16,193
|
)
|
(32,723
|
)
|
(31,978
|
)
|
||||||||
Interest income
|
88
|
37
|
106
|
90
|
||||||||||||
Other income
|
115
|
176
|
239
|
276
|
||||||||||||
Income from continuing operations
|
7,225
|
880
|
9,252
|
2,466
|
||||||||||||
Income from discontinued operations
|
2,785
|
611
|
2,754
|
598
|
||||||||||||
NET INCOME
|
10,010
|
1,491
|
12,006
|
3,064
|
||||||||||||
Net income attributable to noncontrolling interests – Operating Partnership
|
(1,290
|
)
|
(194
|
)
|
(1,541
|
)
|
(372
|
)
|
||||||||
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities
|
(208
|
)
|
(12
|
)
|
(274
|
)
|
14
|
|||||||||
Net income attributable to Investors Real Estate Trust
|
8,512
|
1,285
|
10,191
|
2,706
|
||||||||||||
Dividends to preferred shareholders
|
(2,878
|
)
|
(593
|
)
|
(3,471
|
)
|
(1,186
|
)
|
||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
5,634
|
$
|
692
|
$
|
6,720
|
$
|
1,520
|
||||||||
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted
|
.04
|
.00
|
.05
|
.01
|
||||||||||||
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted
|
.02
|
.01
|
.02
|
.01
|
||||||||||||
NET INCOME PER COMMON SHARE – BASIC AND DILUTED
|
$
|
.06
|
$
|
.01
|
$
|
.07
|
$
|
.02
|
||||||||
DIVIDENDS PER COMMON SHARE
|
$
|
.1300
|
$
|
.1300
|
$
|
.2600
|
$
|
.3015
|
|
(in thousands)
|
|||||||||||||||||||||||||||
|
NUMBER
OF
PREFERRED
SHARES
|
PREFERRED
SHARES
|
NUMBER
OF COMMON
SHARES
|
COMMON
SHARES
|
ACCUMULATED
DISTRIBUTIONS
IN EXCESS OF
NET INCOME
|
NONCONTROLLING
INTERESTS
|
TOTAL
EQUITY
|
|||||||||||||||||||||
Balance April 30, 2011
|
1,150
|
$
|
27,317
|
80,523
|
$
|
621,936
|
$
|
(237,563
|
)
|
$
|
132,600
|
$
|
544,290
|
|||||||||||||||
Net income attributable to Investors Real Estate Trust and nonredeemable noncontrolling interests
|
2,706
|
348
|
3,054
|
|||||||||||||||||||||||||
Distributions – common shares and units
|
(24,492
|
)
|
(5,969
|
)
|
(30,461
|
)
|
||||||||||||||||||||||
Distributions – Series A preferred shares
|
(1,186
|
)
|
(1,186
|
)
|
||||||||||||||||||||||||
Distribution reinvestment and share purchase plan
|
2,302
|
16,902
|
16,902
|
|||||||||||||||||||||||||
Shares issued
|
99
|
773
|
773
|
|||||||||||||||||||||||||
Partnership units issued
|
1,974
|
1,974
|
||||||||||||||||||||||||||
Redemption of units for common shares
|
759
|
3,454
|
(3,454
|
)
|
0
|
|||||||||||||||||||||||
Adjustments to redeemable noncontrolling interests
|
(35
|
)
|
(35
|
)
|
||||||||||||||||||||||||
Other
|
(1
|
)
|
(8
|
)
|
1,865
|
1,857
|
||||||||||||||||||||||
Balance October 31, 2011
|
1,150
|
$
|
27,317
|
83,682
|
$
|
643,022
|
$
|
(260,535
|
)
|
$
|
127,364
|
$
|
537,168
|
|||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance April 30, 2012
|
1,150
|
$
|
27,317
|
89,474
|
$
|
684,049
|
$
|
(278,377
|
)
|
$
|
132,274
|
$
|
565,263
|
|||||||||||||||
Net income attributable to Investors Real Estate Trust and nonredeemable noncontrolling interests
|
10,191
|
1,815
|
12,006
|
|||||||||||||||||||||||||
Distributions – common shares and units
|
(23,739
|
)
|
(5,431
|
)
|
(29,170
|
)
|
||||||||||||||||||||||
Distributions – Series A preferred shares
|
(1,186
|
)
|
(1,186
|
)
|
||||||||||||||||||||||||
Distributions – Series B preferred shares
|
(2,285
|
)
|
(2,285
|
)
|
||||||||||||||||||||||||
Distribution reinvestment and share purchase plan
|
3,165
|
24,421
|
24,421
|
|||||||||||||||||||||||||
Shares issued
|
396
|
2,846
|
2,846
|
|||||||||||||||||||||||||
Series B preferred shares issued
|
4,600
|
111,357
|
111,357
|
|||||||||||||||||||||||||
Partnership units issued
|
8,116
|
8,116
|
||||||||||||||||||||||||||
Redemption of units for common shares
|
128
|
579
|
(579
|
)
|
0
|
|||||||||||||||||||||||
Other
|
(2
|
)
|
(15
|
)
|
1,136
|
1,121
|
||||||||||||||||||||||
Balance October 31, 2012
|
5,750
|
$
|
138,674
|
93,161
|
$
|
711,880
|
$
|
(295,396
|
)
|
$
|
137,331
|
$
|
692,489
|
|
(in thousands)
|
|||||||
|
Six Months Ended
October 31
|
|||||||
|
2012
|
2011
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
12,006
|
$
|
3,064
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
33,730
|
30,662
|
||||||
Gain on sale of real estate, land, other investments and discontinued operations
|
(2,680
|
)
|
(589
|
)
|
||||
Gain on involuntary conversion
|
(2,263
|
)
|
0
|
|||||
Bad debt expense
|
694
|
413
|
||||||
Changes in other assets and liabilities:
|
||||||||
Increase in receivable arising from straight-lining of rents
|
(1,743
|
)
|
(2,105
|
)
|
||||
Decrease (increase) in accounts receivable
|
2,857
|
(2,785
|
)
|
|||||
Decrease in prepaid and other assets
|
1,598
|
633
|
||||||
Decrease (increase) in tax, insurance and other escrow
|
161
|
(427
|
)
|
|||||
Increase in deferred charges and leasing costs
|
(2,290
|
)
|
(3,422
|
)
|
||||
Decrease in accounts payable, accrued expenses, and other liabilities
|
(7,096
|
)
|
(1,234
|
)
|
||||
Net cash provided by operating activities
|
34,974
|
24,210
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Proceeds from real estate deposits
|
1,093
|
1,431
|
||||||
Payments for real estate deposits
|
(885
|
)
|
(1,553
|
)
|
||||
Principal proceeds on mortgage loans receivable
|
0
|
1
|
||||||
Increase in other investments
|
0
|
(3
|
)
|
|||||
Decrease in lender holdbacks for improvements
|
1,018
|
5,000
|
||||||
Increase in lender holdbacks for improvements
|
(1,687
|
)
|
(620
|
)
|
||||
Proceeds from sale of discontinued operations
|
3,267
|
2,088
|
||||||
Proceeds from sale of real estate and other investments
|
0
|
284
|
||||||
Insurance proceeds received
|
3,432
|
4,148
|
||||||
Payments for acquisitions and improvements of real estate assets
|
(81,820
|
)
|
(77,100
|
)
|
||||
Net cash used by investing activities
|
(75,582
|
)
|
(66,324
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from mortgages payable
|
57,030
|
70,745
|
||||||
Principal payments on mortgages payable
|
(68,384
|
)
|
(39,303
|
)
|
||||
Proceeds from revolving line of credit and other debt
|
24,400
|
17,000
|
||||||
Principal payments on revolving line of credit and other debt
|
(34,500
|
)
|
(10
|
)
|
||||
Proceeds from sale of common shares, net of issue costs
|
2,448
|
330
|
||||||
Proceeds from sale of common shares under distribution reinvestment and share purchase program
|
17,979
|
11,672
|
||||||
Proceeds from underwritten Public Offering of Preferred Shares – Series B, net of offering costs
|
111,357
|
0
|
||||||
Repurchase of fractional shares and partnership units
|
(15
|
)
|
(8
|
)
|
||||
Distributions paid to common shareholders, net of reinvestment of $6,129 and $4,870, respectively
|
(17,610
|
)
|
(19,622
|
)
|
||||
Distributions paid to preferred shareholders
|
(2,710
|
)
|
(1,186
|
)
|
||||
Distributions paid to noncontrolling interests – Unitholders of the Operating Partnership, net of reinvestment of $313 and $360, respectively
|
(5,118
|
)
|
(5,609
|
)
|
||||
Distributions paid to noncontrolling interests – consolidated real estate entities
|
0
|
(362
|
)
|
|||||
Distributions paid to redeemable noncontrolling interests – consolidated real estate entities
|
0
|
(27
|
)
|
|||||
Net cash provided by financing activities
|
84,877
|
33,620
|
||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
44,269
|
(8,494
|
)
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
39,989
|
41,191
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
84,258
|
$
|
32,697
|
|
(in thousands)
|
|||||||
|
Six Months Ended
October 31
|
|||||||
|
2012
|
2011
|
||||||
SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES FOR THE PERIOD
|
||||||||
Distribution reinvestment plan
|
$
|
6,129
|
$
|
4,870
|
||||
Operating partnership distribution reinvestment plan
|
313
|
360
|
||||||
Operating partnership units converted to shares
|
579
|
3,454
|
||||||
Shares issued under the Incentive Award Plan
|
398
|
443
|
||||||
Real estate assets acquired through the issuance of operating partnership units
|
8,116
|
1,974
|
||||||
Real estate assets acquired through assumption of indebtedness and accrued costs
|
12,500
|
7,190
|
||||||
Mortgages included in real estate dispositions
|
4,638
|
0
|
||||||
Decrease to accounts payable included within real estate investments
|
(1,974
|
)
|
(2,780
|
)
|
||||
Noncontrolling partnership interest
|
1,136
|
2,227
|
||||||
Fair value adjustments to redeemable noncontrolling interests
|
0
|
35
|
||||||
Involuntary conversion of assets due to flood and fire damage
|
107
|
2,638
|
||||||
Construction debt reclassified to mortgages payable
|
0
|
7,190
|
||||||
|
||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||||||
Cash paid during the period for:
|
||||||||
Interest on mortgages
|
30,980
|
29,894
|
||||||
Interest other
|
881
|
1,361
|
||||||
|
$
|
31,861
|
$
|
31,255
|
|
(in thousands)
|
|||||||
|
October 31, 2012
|
April 30, 2012
|
||||||
Identified intangible assets (included in intangible assets):
|
||||||||
Gross carrying amount
|
$
|
67,860
|
$
|
92,401
|
||||
Accumulated amortization
|
(25,579
|
)
|
(47,813
|
)
|
||||
Net carrying amount
|
$
|
42,281
|
$
|
44,588
|
||||
|
||||||||
Identified intangible liabilities (included in other liabilities):
|
||||||||
Gross carrying amount
|
$
|
408
|
$
|
1,104
|
||||
Accumulated amortization
|
(294
|
)
|
(967
|
)
|
||||
Net carrying amount
|
$
|
114
|
$
|
137
|
Year Ended April 30,
|
(in thousands)
|
|||
2014
|
$
|
35
|
||
2015
|
18
|
|||
2016
|
14
|
|||
2017
|
6
|
|||
2018
|
(5
|
)
|
Year Ended April 30,
|
(in thousands)
|
|||
2014
|
$
|
4,182
|
||
2015
|
3,825
|
|||
2016
|
3,608
|
|||
2017
|
3,139
|
|||
2018
|
2,652
|
|
(in thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended
October 31
|
Six Months Ended
October 31
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
NUMERATOR
|
||||||||||||||||
Income from continuing operations – Investors Real Estate Trust
|
$
|
6,245
|
$
|
793
|
$
|
7,951
|
$
|
2,224
|
||||||||
Income from discontinued operations – Investors Real Estate Trust
|
2,267
|
492
|
2,240
|
482
|
||||||||||||
Net income attributable to Investors Real Estate Trust
|
8,512
|
1,285
|
10,191
|
2,706
|
||||||||||||
Dividends to preferred shareholders
|
(2,878
|
)
|
(593
|
)
|
(3,471
|
)
|
(1,186
|
)
|
||||||||
Numerator for basic earnings per share – net income available to common shareholders
|
5,634
|
692
|
6,720
|
1,520
|
||||||||||||
Noncontrolling interests – Operating Partnership
|
1,290
|
194
|
1,541
|
372
|
||||||||||||
Numerator for diluted earnings per share
|
$
|
6,924
|
$
|
886
|
$
|
8,261
|
$
|
1,892
|
||||||||
DENOMINATOR
|
||||||||||||||||
Denominator for basic earnings per share weighted average shares
|
92,475
|
82,078
|
91,495
|
81,467
|
||||||||||||
Effect of convertible operating partnership units
|
21,215
|
19,591
|
20,963
|
19,819
|
||||||||||||
Denominator for diluted earnings per share
|
113,690
|
101,669
|
112,458
|
101,286
|
||||||||||||
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted
|
$
|
.04
|
$
|
.00
|
$
|
.05
|
$
|
.01
|
||||||||
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted
|
.02
|
.01
|
.02
|
.01
|
||||||||||||
NET INCOME PER COMMON SHARE – BASIC & DILUTED
|
$
|
.06
|
$
|
.01
|
$
|
.07
|
$
|
.02
|
(in thousands)
|
||||||||||||||||||||||||
Three Months Ended October 31, 2012
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Real estate revenue
|
$
|
23,105
|
$
|
19,128
|
$
|
15,517
|
$
|
3,577
|
$
|
3,616
|
$
|
64,943
|
||||||||||||
Real estate expenses
|
9,008
|
9,392
|
4,183
|
935
|
1,286
|
24,804
|
||||||||||||||||||
Gain on involuntary conversion
|
2,263
|
0
|
0
|
0
|
0
|
2,263
|
||||||||||||||||||
Net operating income
|
$
|
16,360
|
$
|
9,736
|
$
|
11,334
|
$
|
2,642
|
$
|
2,330
|
42,402
|
|||||||||||||
Depreciation/amortization
|
(16,506
|
)
|
||||||||||||||||||||||
Administrative, advisory and trustee services
|
(2,061
|
)
|
||||||||||||||||||||||
Other expenses
|
(513
|
)
|
||||||||||||||||||||||
Interest expense
|
(16,300
|
)
|
||||||||||||||||||||||
Interest and other income
|
203
|
|||||||||||||||||||||||
Income from continuing operations
|
7,225
|
|||||||||||||||||||||||
Income from discontinued operations
|
2,785
|
|||||||||||||||||||||||
Net income
|
$
|
10,010
|
(in thousands)
|
||||||||||||||||||||||||
Three Months Ended October 31, 2011
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Real estate revenue
|
$
|
17,952
|
$
|
18,367
|
$
|
17,073
|
$
|
3,566
|
$
|
3,242
|
$
|
60,200
|
||||||||||||
Real estate expenses
|
8,521
|
8,813
|
5,971
|
1,135
|
1,087
|
25,527
|
||||||||||||||||||
Net operating income
|
$
|
9,431
|
$
|
9,554
|
$
|
11,102
|
$
|
2,431
|
$
|
2,155
|
34,673
|
|||||||||||||
Depreciation/amortization
|
(14,874
|
)
|
||||||||||||||||||||||
Administrative, advisory and trustee services
|
(2,104
|
)
|
||||||||||||||||||||||
Other expenses
|
(835
|
)
|
||||||||||||||||||||||
Interest expense
|
(16,193
|
)
|
||||||||||||||||||||||
Interest and other income
|
213
|
|||||||||||||||||||||||
Income from continuing operations
|
880
|
|||||||||||||||||||||||
Income from discontinued operations
|
611
|
|||||||||||||||||||||||
Net income
|
$
|
1,491
|
(in thousands)
|
||||||||||||||||||||||||
Six Months Ended October 31, 2012
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Real estate revenue
|
$
|
44,314
|
$
|
37,767
|
$
|
30,844
|
$
|
7,037
|
$
|
6,967
|
$
|
126,929
|
||||||||||||
Real estate expenses
|
18,301
|
18,682
|
8,266
|
1,955
|
2,441
|
49,645
|
||||||||||||||||||
Gain on involuntary conversion
|
2,263
|
0
|
0
|
0
|
0
|
2,263
|
||||||||||||||||||
Net operating income
|
$
|
28,276
|
$
|
19,085
|
$
|
22,578
|
$
|
5,082
|
$
|
4,526
|
79,547
|
|||||||||||||
Depreciation/amortization
|
(32,728
|
)
|
||||||||||||||||||||||
Administrative, advisory and trustee services
|
(4,157
|
)
|
||||||||||||||||||||||
Other expenses
|
(1,032
|
)
|
||||||||||||||||||||||
Interest expense
|
(32,723
|
)
|
||||||||||||||||||||||
Interest and other income
|
345
|
|||||||||||||||||||||||
Income from continuing operations
|
9,252
|
|||||||||||||||||||||||
Income from discontinued operations
|
2,754
|
|||||||||||||||||||||||
Net income
|
$
|
12,006
|
|
(in thousands)
|
|||||||||||||||||||||||
Six Months Ended October 31, 2011
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Real estate revenue
|
$
|
35,041
|
$
|
37,182
|
$
|
33,690
|
$
|
7,001
|
$
|
6,450
|
$
|
119,364
|
||||||||||||
Real estate expenses
|
16,672
|
17,756
|
11,489
|
2,101
|
2,151
|
50,169
|
||||||||||||||||||
Net operating income
|
$
|
18,369
|
$
|
19,426
|
$
|
22,201
|
$
|
4,900
|
$
|
4,299
|
69,195
|
|||||||||||||
Depreciation/amortization
|
(29,682
|
)
|
||||||||||||||||||||||
Administrative, advisory and trustee services
|
(4,285
|
)
|
||||||||||||||||||||||
Other expenses
|
(1,150
|
)
|
||||||||||||||||||||||
Interest expense
|
(31,978
|
)
|
||||||||||||||||||||||
Interest and other income
|
366
|
|||||||||||||||||||||||
Income from continuing operations
|
2,466
|
|||||||||||||||||||||||
Income from discontinued operations
|
598
|
|||||||||||||||||||||||
Net income
|
$
|
3,064
|
|
(in thousands)
|
|||||||||||||||||||||||
As of October 31, 2012
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Segment Assets
|
||||||||||||||||||||||||
Property owned
|
$
|
624,159
|
$
|
608,125
|
$
|
502,222
|
$
|
119,511
|
$
|
129,961
|
$
|
1,983,978
|
||||||||||||
Less accumulated depreciation
|
(131,193
|
)
|
(129,495
|
)
|
(85,902
|
)
|
(22,133
|
)
|
(25,533
|
)
|
(394,256
|
)
|
||||||||||||
Total property owned
|
$
|
492,966
|
$
|
478,630
|
$
|
416,320
|
$
|
97,378
|
$
|
104,428
|
1,589,722
|
|||||||||||||
Real estate held for sale
|
1,844
|
|||||||||||||||||||||||
Cash and cash equivalents
|
84,258
|
|||||||||||||||||||||||
Other investments
|
637
|
|||||||||||||||||||||||
Receivables and other assets
|
107,988
|
|||||||||||||||||||||||
Development in progress
|
23,218
|
|||||||||||||||||||||||
Unimproved land
|
11,670
|
|||||||||||||||||||||||
Total assets
|
$
|
1,819,337
|
|
(in thousands)
|
|||||||||||||||||||||||
As of April 30, 2012
|
Multi-Family
Residential |
Commercial-
Office |
Commercial-
Medical |
Commercial-
Industrial |
Commercial-
Retail |
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Segment assets
|
||||||||||||||||||||||||
Property owned
|
$
|
539,783
|
$
|
605,318
|
$
|
500,268
|
$
|
119,002
|
$
|
127,638
|
$
|
1,892,009
|
||||||||||||
Less accumulated depreciation
|
(128,834
|
)
|
(121,422
|
)
|
(78,744
|
)
|
(20,693
|
)
|
(23,797
|
)
|
(373,490
|
)
|
||||||||||||
Total property owned
|
$
|
410,949
|
$
|
483,896
|
$
|
421,524
|
$
|
98,309
|
$
|
103,841
|
1,518,519
|
|||||||||||||
Real estate held for sale
|
2,067
|
|||||||||||||||||||||||
Cash and cash equivalents
|
39,989
|
|||||||||||||||||||||||
Other investments
|
634
|
|||||||||||||||||||||||
Receivables and other assets
|
114,569
|
|||||||||||||||||||||||
Development in progress
|
27,599
|
|||||||||||||||||||||||
Unimproved land
|
10,990
|
|||||||||||||||||||||||
Total assets
|
$
|
1,714,367
|
|
Three Months Ended
October 31
|
Six Months Ended
October 31
|
||||||||||||||
|
(in thousands)
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
REVENUE
|
||||||||||||||||
Real estate rentals
|
$
|
317
|
$
|
449
|
$
|
751
|
$
|
916
|
||||||||
Tenant reimbursement
|
0
|
39
|
0
|
36
|
||||||||||||
TOTAL REVENUE
|
317
|
488
|
751
|
952
|
||||||||||||
EXPENSES
|
||||||||||||||||
Depreciation/amortization related to real estate investments
|
50
|
77
|
114
|
169
|
||||||||||||
Utilities
|
30
|
52
|
63
|
106
|
||||||||||||
Maintenance
|
44
|
74
|
127
|
137
|
||||||||||||
Real estate taxes
|
32
|
52
|
75
|
98
|
||||||||||||
Insurance
|
9
|
12
|
23
|
24
|
||||||||||||
Property management expenses
|
51
|
74
|
112
|
144
|
||||||||||||
TOTAL EXPENSES
|
216
|
341
|
514
|
678
|
||||||||||||
Interest expense
|
(69
|
)
|
(125
|
)
|
(163
|
)
|
(265
|
)
|
||||||||
Income from discontinued operations before gain on sale
|
32
|
22
|
74
|
9
|
||||||||||||
Gain on sale of discontinued operations
|
2,753
|
589
|
2,680
|
589
|
||||||||||||
INCOME FROM DISCONTINUED OPERATIONS
|
$
|
2,785
|
$
|
611
|
$
|
2,754
|
$
|
598
|
·
|
a 58-unit multi-family residential property in Sartell, Minnesota (The Ponds at Heritage Place), on approximately 6.5 acres of land, for a purchase price of approximately $5.0 million, of which $3.3 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $1.7 million;
|
·
|
an approximately 2.6 acre parcel of vacant land in Williston, North Dakota, acquired for possible future development, for a purchase price of approximately $822,500, paid in cash; and
|
·
|
an approximately 3.8 acre parcel of vacant land in St. Cloud, Minnesota, acquired for possible future development for a purchase price of approximately $447,000, paid in cash.
|
·
|
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.
|
|
(in thousands)
|
||||||||||||||||
Acquisitions
|
Date Acquired
|
Land
|
Building
|
Intangible Assets
|
Acquisition Cost
|
||||||||||||
|
|
||||||||||||||||
Multi-Family Residential
|
|
||||||||||||||||
308 unit - Villa West - Topeka, KS
|
5/8/12
|
$
|
1,590
|
$
|
15,760
|
$
|
300
|
$
|
17,650
|
||||||||
232 unit - Colony - Lincoln, NE
|
6/4/12
|
1,515
|
15,731
|
254
|
17,500
|
||||||||||||
208 unit - Lakeside Village - Lincoln, NE
|
6/4/12
|
1,215
|
15,837
|
198
|
17,250
|
||||||||||||
58 unit - The Ponds at Heritage Place - Sartell, MN
|
10/10/12
|
395
|
4,564
|
61
|
5,020
|
||||||||||||
|
|
4,715
|
51,892
|
813
|
57,420
|
||||||||||||
|
|
||||||||||||||||
Unimproved Land
|
|
||||||||||||||||
University Commons - Williston, ND
|
8/1/12
|
823
|
0
|
0
|
823
|
||||||||||||
Cypress Court - St. Cloud, MN
|
8/10/12
|
447
|
0
|
0
|
447
|
||||||||||||
|
|
1,270
|
0
|
0
|
1,270
|
||||||||||||
|
|
||||||||||||||||
Total Property Acquisitions
|
|
$
|
5,985
|
$
|
51,892
|
$
|
813
|
$
|
58,690
|
|
|
(in thousands)
|
|||||||||||||||
Development Projects Placed in Service
|
Date Placed in Service
|
Land
|
Building
|
Intangible Assets
|
Acquisition Cost
|
||||||||||||
|
|
||||||||||||||||
Multi-Family Residential
|
|
||||||||||||||||
159 unit - Quarry Ridge II - Rochester, MN(1)
|
6/29/12
|
$
|
0
|
$
|
4,591
|
$
|
0
|
$
|
4,591
|
||||||||
73 unit - Williston Garden Buildings 3 and 4 - Williston, ND(2)
|
7/31/12
|
0
|
6,886
|
0
|
6,886
|
||||||||||||
|
|
||||||||||||||||
Total Development Projects Placed in Service
|
|
$
|
0
|
$
|
11,477
|
$
|
0
|
$
|
11,477
|
(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 October 31, 2012 of $17.6 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 $12.0 million, for a total project cost at October 31, 2012 of $18.9 million.
|
|
(in thousands)
|
||||||||||||||||
Acquisitions
|
Date Acquired
|
Land
|
Building
|
Intangible Assets
|
Acquisition Cost
|
||||||||||||
|
|
||||||||||||||||
Multi-Family Residential
|
|
||||||||||||||||
147 unit - Regency Park Estates - St. Cloud, MN
|
8/1/11
|
$
|
702
|
$
|
10,198
|
$
|
0
|
$
|
10,900
|
||||||||
50 unit - Cottage West Twin Homes - Sioux Falls, SD
|
10/12/11
|
1,005
|
3,725
|
0
|
4,730
|
||||||||||||
24 unit - Gables Townhomes - Sioux Falls, SD
|
10/12/11
|
362
|
1,908
|
0
|
2,270
|
||||||||||||
|
|
2,069
|
15,831
|
0
|
17,900
|
||||||||||||
|
|
||||||||||||||||
Commercial Medical
|
|
||||||||||||||||
17,273 sq ft Spring Creek American Falls - American Falls, ID
|
9/1/11
|
137
|
3,409
|
524
|
4,070
|
||||||||||||
15,571 sq ft Spring Creek Soda Springs - Soda Springs, ID
|
9/1/11
|
66
|
2,122
|
42
|
2,230
|
||||||||||||
15,559 sq ft Spring Creek Eagle - Eagle, ID
|
9/1/11
|
250
|
3,191
|
659
|
4,100
|
||||||||||||
31,820 sq ft Spring Creek Meridian - Meridian, ID
|
9/1/11
|
428
|
5,499
|
1,323
|
7,250
|
||||||||||||
26,605 sq ft Spring Creek Overland - Boise, ID
|
9/1/11
|
656
|
5,001
|
1,068
|
6,725
|
||||||||||||
16,311 sq ft Spring Creek Boise - Boise, ID
|
9/1/11
|
711
|
4,236
|
128
|
5,075
|
||||||||||||
26,605 sq ft Spring Creek Ustick - Meridian, ID
|
9/1/11
|
467
|
3,833
|
0
|
4,300
|
||||||||||||
Meadow Wind Land - Casper, WY
|
9/1/11
|
50
|
0
|
0
|
50
|
||||||||||||
3,431 sq ft Edina 6525 Drew Ave S - Edina, MN
|
10/13/11
|
416
|
89
|
0
|
505
|
||||||||||||
|
|
3,181
|
27,380
|
3,744
|
34,305
|
||||||||||||
|
|
||||||||||||||||
Unimproved Land
|
|
||||||||||||||||
Industrial-Office Build-to-Suit - Minot, ND
|
9/7/11
|
416
|
0
|
0
|
416
|
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
Total Property Acquisitions
|
|
$
|
5,666
|
$
|
43,211
|
$
|
3,744
|
$
|
52,621
|
|
|
(in thousands)
|
|||||||||||||||
Development Projects Placed in Service
|
Date Placed in Service
|
Land
|
Building
|
Intangible Assets
|
Acquisition Cost
|
||||||||||||
|
|
||||||||||||||||
Commercial Medical
|
|
||||||||||||||||
24,795 sq ft Trinity at Plaza 16 - Minot, ND(1)
|
9/23/11
|
0
|
4,879
|
0
|
4,879
|
||||||||||||
|
|
||||||||||||||||
Commercial Retail
|
|
||||||||||||||||
19,037 sq ft Jamestown Buffalo Mall - Jamestown, ND(2)
|
6/15/11
|
0
|
781
|
0
|
781
|
||||||||||||
|
|
||||||||||||||||
Total Development Projects Placed in Service
|
|
$
|
0
|
$
|
5,660
|
$
|
0
|
$
|
5,660
|
(1)
|
Development property placed in service September 23, 2011. Additional costs paid in fiscal year 2011 totaled $3.3 million, for a total project cost at October 31, 2011 of $8.2 million.
|
(2)
|
Construction project placed in service June 15, 2011. Additional costs paid in fiscal year 2011 totaled $1.4 million, for a total project cost at October 31, 2011 of $2.2 million.
|
|
(in thousands)
|
|||||||
|
Six Months Ended
October 31
|
|||||||
|
2012
|
2011
|
||||||
Total revenue
|
$
|
2,929
|
$
|
933
|
||||
Net income
|
$
|
(135
|
)
|
$
|
117
|
|
(in thousands)
|
|||||||||||
Dispositions
|
Sales Price
|
Book Value
and Sales Cost
|
Gain/(Loss)
|
|||||||||
|
||||||||||||
Multi-Family Residential
|
||||||||||||
116 unit - Terrace on the Green - Fargo, ND
|
$
|
3,450
|
$
|
1,248
|
$
|
2,202
|
||||||
85 unit - Prairiewood Meadows - Fargo, ND
|
3,450
|
2,846
|
604
|
|||||||||
|
6,900
|
4,094
|
2,806
|
|||||||||
|
||||||||||||
Commercial Retail
|
||||||||||||
16,080 sq ft Kentwood Thomasville - Kentwood, MI
|
625
|
692
|
(67
|
)
|
||||||||
|
||||||||||||
Other
|
||||||||||||
Georgetown Square Condominiums 5 and 6
|
330
|
336
|
(6
|
)
|
||||||||
Georgetown Square Condominiums 3 and 4
|
368
|
421
|
(53
|
)
|
||||||||
|
698
|
757
|
(59
|
)
|
||||||||
|
||||||||||||
Total Property Dispositions
|
$
|
8,223
|
$
|
5,543
|
$
|
2,680
|
|
(in thousands)
|
|||||||||||
Dispositions
|
Sales Price
|
Book Value
and Sales Cost
|
Gain/(Loss)
|
|||||||||
|
||||||||||||
Commercial Retail
|
||||||||||||
41,200 sq ft Livingstone Pamida - Livingston, MT
|
$
|
2,175
|
$
|
1,586
|
$
|
589
|
||||||
|
||||||||||||
Total Property Dispositions
|
$
|
2,175
|
$
|
1,586
|
$
|
589
|
Year ended April 30,
|
(in thousands)
|
|||
2013 (remainder)
|
$
|
25,851
|
||
2014
|
65,375
|
|||
2015
|
112,475
|
|||
2016
|
91,788
|
|||
2017
|
197,488
|
|||
Thereafter
|
552,220
|
|||
Total payments
|
$
|
1,045,197
|
|
(in thousands)
|
|||||||||||||||
|
October 31, 2012
|
April 30, 2012
|
||||||||||||||
|
Carrying Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
||||||||||||
FINANCIAL ASSETS
|
||||||||||||||||
Cash and cash equivalents
|
$
|
84,258
|
$
|
84,258
|
$
|
39,989
|
$
|
39,989
|
||||||||
Other investments
|
637
|
637
|
634
|
634
|
||||||||||||
FINANCIAL LIABILITIES
|
||||||||||||||||
Other debt
|
32,775
|
32,840
|
13,875
|
13,973
|
||||||||||||
Line of credit
|
10,000
|
10,000
|
39,000
|
39,000
|
||||||||||||
Mortgages payable
|
1,045,197
|
1,145,970
|
1,048,689
|
1,087,082
|
|
(in thousands)
|
|||
Balance at April 30, 2011
|
$
|
987
|
||
Net income
|
10
|
|||
Distributions
|
(27
|
)
|
||
Mark-to-market adjustments
|
35
|
|||
Balance at October 31, 2011
|
$
|
1,005
|
·
|
a 12-building, 116-unit multi-family residential property in Topeka, Kansas on approximately 5.9 acres of land, for a purchase price totaling approximately $7.6 million, to be paid in cash;
|
·
|
a 9-building, 336-unit multi-family residential property in Omaha, Nebraska on approximately 18.5 acres of land, for a purchase price of approximately $28.6 million, to be paid in cash;
|
·
|
two adjoining parcels of vacant land in Rochester, Minnesota, totaling approximately 24 acres, for a purchase price of approximately $1.1 million, to be paid in cash;
|
·
|
an approximately 10 acre parcel of vacant land in Grand Forks, North Dakota, for a total purchase price of approximately $1.6 million, to be paid in cash; and
|
·
|
two adjoining parcels of vacant land in Rapid City, South Dakota, totaling approximately 9 acres, for a purchase price of approximately $879,000, to be paid in cash.
|
• | 68 commercial office properties containing approximately 5.1 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $478.6 million; |
• | 65 commercial medical properties (including senior housing) containing approximately 2.9 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $416.3 million; |
• | 19 commercial industrial properties containing approximately 2.9 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $97.4 million; and |
• | 30 commercial retail properties containing approximately 1.4 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $104.4 million. |
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Real estate revenue
|
$
|
64,943
|
$
|
60,200
|
$
|
4,743
|
7.9
|
%
|
||||||||
NOI(1)
|
42,402
|
34,673
|
7,729
|
22.3
|
%
|
|||||||||||
Net income attributable to Investors Real Estate Trust
|
8,512
|
1,285
|
7,227
|
562.4
|
%
|
|||||||||||
FFO(2)
|
20,691
|
15,187
|
5,504
|
36.2
|
%
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Real estate revenue
|
$
|
126,929
|
$
|
119,364
|
$
|
7,565
|
6.3
|
%
|
||||||||
NOI(1)
|
79,547
|
69,195
|
10,352
|
15.0
|
%
|
|||||||||||
Net income attributable to Investors Real Estate Trust
|
10,191
|
2,706
|
7,485
|
276.6
|
%
|
|||||||||||
FFO(2)
|
38,288
|
31,016
|
7,272
|
23.4
|
%
|
(1) | See Note 5 of the Notes to the Condensed Consolidated Financial Statements for reconciliations of NOI to net income. |
(2) | See pages 43-44 of the MD&A for the definition of FFO and reconciliations of FFO to net income. |
|
Stabilized Properties
|
|
All Properties
|
||
|
As of October 31,
|
|
As of October 31,
|
||
Segments
|
2012
|
2011
|
|
2012
|
2011
|
Multi-Family Residential
|
94.8%
|
95.2%
|
|
94.6%
|
94.7%
|
Commercial Office
|
78.4%
|
78.0%
|
|
78.4%
|
78.0%
|
Commercial Medical
|
94.9%
|
96.0%
|
|
95.2%
|
96.2%
|
Commercial Industrial
|
90.7%
|
92.3%
|
|
90.7%
|
92.3%
|
Commercial Retail
|
88.3%
|
87.0%
|
|
88.3%
|
87.0%
|
(1)
|
See page 29 of the MD&A for the definition of Stabilized Property.
|
·
|
the acquisition of a multi-family residential property in Sartell, Minnesota, for approximately $5.0 million, adding 58 units to the Company's multi-family residential portfolio.
|
·
|
the acquisition of two parcels of vacant land for development, in Williston, North Dakota and St. Cloud, Minnesota, respectively.
|
·
|
the commencement of construction of the Company's 146-unit River Ridge Apartments project in Bismarck, North Dakota.
|
·
|
the commencement of construction of the 132-unit Cypress Court Apartment Homes project in St. Cloud, Minnesota, of which the Company owns approximately 79%, with the remaining 21% owned by the Company's joint venture partner.
|
·
|
the sale of two condominium units in Grand Chute, Wisconsin, and the sale of two multi-family residential properties in Fargo, North Dakota and Moorhead, Minnesota, respectively, for a total sales price of $7.3 million.
|
·
|
the completion of a public offering of 4.6 million Series B preferred shares, for net proceeds of approximately $111.2 million, after underwriting discounts and estimated offering expenses.
|
·
|
the acquisition of two multi-family residential properties in Sioux Falls, South Dakota, for approximately $7.0 million, and a multi-family residential property in St. Cloud, Minnesota, for approximately $10.9 million, adding a total of 221 units to the Company's multi-family residential portfolio.
|
·
|
the acquisition of a medical office property in Edina, Minnesota, for a purchase price of approximately $505,000.
|
·
|
the acquisition of seven senior housing projects in Boise, Idaho and towns surrounding Boise, for a total purchase price of approximately $33.8 million.
|
·
|
the completion of construction of an approximately 25,000 square foot, build-to-suit medical clinic in Minot, North Dakota.
|
·
|
the acquisition of two parcels of vacant land in, respectively, Minot, North Dakota (approximately 9.6 acres) and Casper, Wyoming (approximately 0.39 acres, adjoining the Company's Meadow Wind senior housing facility).
|
·
|
the sale of a small retail property in Livingston, Montana, for a sale price of approximately $2.2 million.
|
|
(in thousands)
|
|||||||
|
Increase in Total
Revenue
Three Months
ended October 31, 2012
|
Increase in Total
Revenue
Six Months
ended October 31, 2012
|
||||||
Rent in Fiscal 2013 primarily from 16 properties acquired or placed in service in Fiscal 2012 in excess of that received in Fiscal 2012 from the same 16 properties
|
$
|
2,292
|
$
|
5,006
|
||||
Rent in Fiscal 2013 primarily from 4 properties acquired in Fiscal 2013
|
2,262
|
3,665
|
||||||
Increase in rent on stabilized properties due primarily to increased occupancy in the multi-family residential segment and increased tenant reimbursements in the commercial office segment(1)
|
1,213
|
1,939
|
||||||
Decrease in rent on stabilized properties due primarily to changes within the assisted living portfolio in the commercial medical segment(2)
|
(1,652
|
)
|
(4,518
|
)
|
||||
Decrease in straight line rent
|
(827
|
)
|
(357
|
)
|
||||
Decrease in tenant concessions
|
1,455
|
1,830
|
||||||
Net increase in total revenue
|
$
|
4,743
|
$
|
7,565
|
(1)
|
See analysis of multi-family residential and commercial office NOI on pages 31,32, 37 and 38 of the MD&A for additional information.
|
(2) | Decrease in rent was offset by $1.8 million and $3.6 million decrease in expense in the three and six months ended October 31, 2012, respectively. See analysis of commercial medical NOI on pages 33 and 39 of the MD&A for additional information. |
|
Increase in Net Income
|
|||||||
|
(in thousands)
|
|||||||
|
Three Months
ended October 31, 2012
|
Six Months
ended October 31, 2012
|
||||||
Net income available to common shareholders for Fiscal 2012
|
$
|
692
|
$
|
1,520
|
||||
Increase in NOI due primarily to acquisitions and gain on involuntary conversion
|
7,729
|
10,352
|
||||||
Increase in depreciation/amortization due to depreciation of tenant and capital improvements
|
(1,632
|
)
|
(3,046
|
)
|
||||
Decrease in administrative, advisory and trustee fees
|
43
|
128
|
||||||
Decrease in other expenses
|
322
|
118
|
||||||
Increase in interest expense
|
(107
|
)
|
(745
|
)
|
||||
Decrease in interest and other income
|
(10
|
)
|
(21
|
)
|
||||
Increase in income from discontinued operations
|
2,174
|
2,156
|
||||||
Increase in net income attributable to noncontrolling interests – Operating Partnership
|
(1,096
|
)
|
(1,169
|
)
|
||||
Increase in net income attributable to noncontrolling interests – consolidated real estate entities
|
(196
|
)
|
(288
|
)
|
||||
Increase in dividends to preferred shareholders
|
(2,285
|
)
|
(2,285
|
)
|
||||
Net income available to common shareholders for Fiscal 2013
|
$
|
5,634
|
$
|
6,720
|
• | Interest Expense. Our mortgage interest expense increased approximately $236,000, or 1.6%, to $15.4 million during the second quarter of fiscal year 2013, compared to $15.2 million in the second quarter of fiscal year 2012. Mortgage interest expense increased approximately $980,000, or 3.3%, to $30.8 million during the six months ended October 31, 2012, compared to $29.8 million in same period of the prior fiscal year. Mortgage interest expense for properties newly acquired in fiscal years 2013 and 2012 added $1.0 million and $1.9 million to our total mortgage interest expense in the three and |
(in thousands, except percentages)
|
||||||||||||||||
|
Three Months Ended October 31
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
All Segments
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
59,130
|
$
|
59,266
|
$
|
(136
|
)
|
(0.2
|
)%
|
|||||||
Non-stabilized(1)
|
5,813
|
934
|
4,879
|
522.4
|
%
|
|||||||||||
Total
|
$
|
64,943
|
$
|
60,200
|
$
|
4,743
|
7.9
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
23,182
|
$
|
25,212
|
$
|
(2,030
|
)
|
(8.1
|
)%
|
|||||||
Non-stabilized(1)
|
1,622
|
315
|
1,307
|
414.9
|
%
|
|||||||||||
Total
|
$
|
24,804
|
$
|
25,527
|
$
|
(723
|
)
|
(2.8
|
)%
|
|||||||
|
||||||||||||||||
Gain on involuntary conversion
|
||||||||||||||||
Stabilized
|
$
|
0
|
$
|
0
|
$
|
0
|
0.0
|
%
|
||||||||
Non-stabilized(1)
|
2,263
|
0
|
2,263
|
n/
|
a
|
|||||||||||
Total
|
$
|
2,263
|
$
|
0
|
$
|
2,263
|
n/
|
a
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
35,948
|
$
|
34,054
|
$
|
1,894
|
5.6
|
%
|
||||||||
Non-stabilized(1)
|
6,454
|
619
|
5,835
|
942.6
|
%
|
|||||||||||
Total
|
$
|
42,402
|
$
|
34,673
|
$
|
7,729
|
22.3
|
%
|
||||||||
Depreciation/amortization
|
(16,506
|
)
|
(14,874
|
)
|
||||||||||||
Administrative, advisory and trustee services
|
(2,061
|
)
|
(2,104
|
)
|
||||||||||||
Other expenses
|
(513
|
)
|
(835
|
)
|
||||||||||||
Interest expense
|
(16,300
|
)
|
(16,193
|
)
|
||||||||||||
Interest and other income
|
203
|
213
|
||||||||||||||
Income from continuing operations
|
7,225
|
880
|
||||||||||||||
Income from discontinued operations(2)
|
2,785
|
611
|
||||||||||||||
Net income
|
$
|
10,010
|
$
|
1,491
|
(1)
|
Non-stabilized properties include:
|
|
FY2013 -
|
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; The Ponds at Heritage Place, Sartell, MN; Villa West, Topeka, KS and Williston Garden, Williston, ND.
Total number of units, 1,601.
|
|
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.
Total rentable square footage, 177,970.
|
FY2012 -
|
Multi-Family Residential -
|
Chateau, Minot, ND; Cottage West Twin Homes, Sioux Falls, SD; Gables Townhomes, Sioux Falls, SD; Regency Park Estates, St Cloud, MN.
Total number of units, 285.
|
|
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.
Total rentable square footage, 177,719.
|
(2)
|
Discontinued operations include gain on disposals and income from operations for:
|
|
|
2013 Dispositions and Properties Held for Sale – Candlelight, Georgetown Square Condominiums, Kentwood Thomasville Furniture, Prairiewood Meadows and Terrace on the Green.
|
|
|
2012 Dispositions and Properties Held for Sale – Livingston Pamida, East Grand Station, Georgetown Square Condominiums and Kentwood Thomasville Furniture.
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Multi-Family Residential
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
18,319
|
$
|
17,533
|
$
|
786
|
4.5
|
%
|
||||||||
Non-stabilized
|
4,786
|
419
|
4,367
|
1042.2
|
%
|
|||||||||||
Total
|
$
|
23,105
|
$
|
17,952
|
$
|
5,153
|
28.7
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
7,513
|
$
|
8,295
|
$
|
(782
|
)
|
(9.4
|
)%
|
|||||||
Non-stabilized
|
1,495
|
226
|
1,269
|
561.5
|
%
|
|||||||||||
Total
|
$
|
9,008
|
$
|
8,521
|
$
|
487
|
5.7
|
%
|
||||||||
|
||||||||||||||||
Gain on involuntary conversion
|
||||||||||||||||
Stabilized
|
$
|
0
|
$
|
0
|
$
|
0
|
0.0
|
%
|
||||||||
Non-stabilized
|
2,263
|
0
|
2,263
|
n/
|
a
|
|||||||||||
Total
|
$
|
2,263
|
$
|
0
|
$
|
2,263
|
n/
|
a
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
10,806
|
$
|
9,238
|
$
|
1,568
|
17.0
|
%
|
||||||||
Non-stabilized
|
5,554
|
193
|
5,361
|
2777.7
|
%
|
|||||||||||
Total
|
$
|
16,360
|
$
|
9,431
|
$
|
6,929
|
73.5
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
94.8%
|
95.2%
|
|
Non-stabilized
|
93.4%
|
79.3%
|
|
Total
|
94.6%
|
94.7%
|
|
Number of Units
|
2012
|
2011
|
|
Stabilized
|
8,333
|
8,333
|
|
Non-stabilized
|
1,601
|
285
|
|
Total
|
9,934
|
8,618
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Office
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
19,128
|
$
|
18,367
|
$
|
761
|
4.1
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
19,128
|
$
|
18,367
|
$
|
761
|
4.1
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
9,392
|
$
|
8,813
|
$
|
579
|
6.6
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
9,392
|
$
|
8,813
|
$
|
579
|
6.6
|
%
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
9,736
|
$
|
9,554
|
$
|
182
|
1.9
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
9,736
|
$
|
9,554
|
$
|
182
|
1.9
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
78.4%
|
78.0%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
78.4%
|
78.0%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
5,062,048
|
5,061,212
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
5,062,048
|
5,061,212
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Medical
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
14,490
|
$
|
16,558
|
$
|
(2,068
|
)
|
(12.5
|
)%
|
|||||||
Non-stabilized
|
1,027
|
515
|
512
|
99.4
|
%
|
|||||||||||
Total
|
$
|
15,517
|
$
|
17,073
|
$
|
(1,556
|
)
|
(9.1
|
)%
|
|||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
4,056
|
$
|
5,882
|
$
|
(1,826
|
)
|
(31.0
|
)%
|
|||||||
Non-stabilized
|
127
|
89
|
38
|
42.7
|
%
|
|||||||||||
Total
|
$
|
4,183
|
$
|
5,971
|
$
|
(1,788
|
)
|
(29.9
|
)%
|
|||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
10,434
|
$
|
10,676
|
$
|
(242
|
)
|
(2.3
|
)%
|
|||||||
Non-stabilized
|
900
|
426
|
474
|
111.3
|
%
|
|||||||||||
Total
|
$
|
11,334
|
$
|
11,102
|
$
|
232
|
2.1
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
94.9%
|
96.0%
|
|
Non-stabilized
|
99.8%
|
99.5%
|
|
Total
|
95.2%
|
96.2%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
2,749,718
|
2,727,205
|
|
Non-stabilized
|
177,970
|
177,719
|
|
Total
|
2,927,688
|
2,904,924
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Industrial
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
3,577
|
$
|
3,566
|
$
|
11
|
0.3
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
3,577
|
$
|
3,566
|
$
|
11
|
0.3
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
935
|
$
|
1,135
|
$
|
(200
|
)
|
(17.6
|
)%
|
|||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
935
|
$
|
1,135
|
$
|
(200
|
)
|
(17.6
|
)%
|
|||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
2,642
|
$
|
2,431
|
$
|
211
|
8.7
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
2,642
|
$
|
2,431
|
$
|
211
|
8.7
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
90.7%
|
92.3%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
90.7%
|
92.3%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
2,945,239
|
2,943,968
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
2,945,239
|
2,943,968
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Three Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Retail
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
3,616
|
$
|
3,242
|
$
|
374
|
11.5
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
3,616
|
$
|
3,242
|
$
|
374
|
11.5
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
1,286
|
$
|
1,087
|
$
|
199
|
18.3
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
1,286
|
$
|
1,087
|
$
|
199
|
18.3
|
%
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
2,330
|
$
|
2,155
|
$
|
175
|
8.1
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
2,330
|
$
|
2,155
|
$
|
175
|
8.1
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
88.3%
|
87.0%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
88.3%
|
87.0%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
1,395,632
|
1,392,133
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
1,395,632
|
1,392,133
|
|
(in thousands, except percentages)
|
||||||||||||||||
|
Six Months Ended October 31
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
All Segments
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
116,818
|
$
|
118,335
|
$
|
(1,517
|
)
|
(1.3
|
)%
|
|||||||
Non-stabilized(1)
|
10,111
|
1,029
|
9,082
|
882.6
|
%
|
|||||||||||
Total
|
$
|
126,929
|
$
|
119,364
|
$
|
7,565
|
6.3
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
46,672
|
$
|
49,802
|
$
|
(3,130
|
)
|
(6.3
|
)%
|
|||||||
Non-stabilized(1)
|
2,973
|
367
|
2,606
|
710.1
|
%
|
|||||||||||
Total
|
$
|
49,645
|
$
|
50,169
|
$
|
(524
|
)
|
(1.0
|
)%
|
|||||||
|
||||||||||||||||
Gain on involuntary conversion
|
||||||||||||||||
Stabilized
|
$
|
0
|
$
|
0
|
$
|
0
|
0.0
|
%
|
||||||||
Non-stabilized(1)
|
2,263
|
0
|
2,263
|
n/
|
a
|
|||||||||||
Total
|
$
|
2,263
|
$
|
0
|
$
|
2,263
|
n/
|
a
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
70,146
|
$
|
68,533
|
$
|
1,613
|
2.4
|
%
|
||||||||
Non-stabilized(1)
|
9,401
|
662
|
8,739
|
1320.1
|
%
|
|||||||||||
Total
|
$
|
79,547
|
$
|
69,195
|
$
|
10,352
|
15.0
|
%
|
||||||||
Depreciation/amortization
|
(32,728
|
)
|
(29,682
|
)
|
||||||||||||
Administrative, advisory and trustee services
|
(4,157
|
)
|
(4,285
|
)
|
||||||||||||
Other expenses
|
(1,032
|
)
|
(1,150
|
)
|
||||||||||||
Interest expense
|
(32,723
|
)
|
(31,978
|
)
|
||||||||||||
Interest and other income
|
345
|
366
|
||||||||||||||
Income from continuing operations
|
9,252
|
2,466
|
||||||||||||||
Income from discontinued operations(2)
|
2,754
|
598
|
||||||||||||||
Net income
|
$
|
12,006
|
$
|
3,064
|
(1)
|
See list of non-stabilized properties on page 30 of the MD&A.
|
(2)
|
See list of discontinued operations on page 30 of the MD&A.
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Multi-Family Residential
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
36,226
|
$
|
34,527
|
$
|
1,699
|
4.9
|
%
|
||||||||
Non-stabilized
|
8,088
|
514
|
7,574
|
1473.5
|
%
|
|||||||||||
Total
|
$
|
44,314
|
$
|
35,041
|
$
|
9,273
|
26.5
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
15,579
|
$
|
16,394
|
$
|
(815
|
)
|
(5.0
|
)%
|
|||||||
Non-stabilized
|
2,722
|
278
|
2,444
|
879.1
|
%
|
|||||||||||
Total
|
$
|
18,301
|
$
|
16,672
|
$
|
1,629
|
9.8
|
%
|
||||||||
|
||||||||||||||||
Gain on involuntary conversion
|
||||||||||||||||
Stabilized
|
$
|
0
|
$
|
0
|
$
|
0
|
0.0
|
%
|
||||||||
Non-stabilized
|
2,263
|
0
|
2,263
|
n/
|
a
|
|||||||||||
Total
|
$
|
2,263
|
$
|
0
|
$
|
2,263
|
n/
|
a
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
20,647
|
$
|
18,133
|
$
|
2,514
|
13.9
|
%
|
||||||||
Non-stabilized
|
7,629
|
236
|
7,393
|
3132.6
|
%
|
|||||||||||
Total
|
$
|
28,276
|
$
|
18,369
|
$
|
9,907
|
53.9
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
94.8%
|
95.2%
|
|
Non-stabilized
|
93.4%
|
79.3%
|
|
Total
|
94.6%
|
94.7%
|
|
Number of Units
|
2012
|
2011
|
|
Stabilized
|
8,333
|
8,333
|
|
Non-stabilized
|
1,601
|
285
|
|
Total
|
9,934
|
8,618
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Office
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
37,767
|
$
|
37,182
|
$
|
585
|
1.6
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
37,767
|
$
|
37,182
|
$
|
585
|
1.6
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
18,682
|
$
|
17,756
|
$
|
926
|
5.2
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
18,682
|
$
|
17,756
|
$
|
926
|
5.2
|
%
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
19,085
|
$
|
19,426
|
$
|
(341
|
)
|
(1.8
|
)%
|
|||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
19,085
|
$
|
19,426
|
$
|
(341
|
)
|
(1.8
|
)%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
78.4%
|
78.0%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
78.4%
|
78.0%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
5,062,048
|
5,061,212
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
5,062,048
|
5,061,212
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Medical
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
28,821
|
$
|
33,175
|
$
|
(4,354
|
)
|
(13.1
|
)%
|
|||||||
Non-stabilized
|
2,023
|
515
|
1,508
|
292.8
|
%
|
|||||||||||
Total
|
$
|
30,844
|
$
|
33,690
|
$
|
(2,846
|
)
|
(8.4
|
)%
|
|||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
8,015
|
$
|
11,400
|
$
|
(3,385
|
)
|
(29.7
|
)%
|
|||||||
Non-stabilized
|
251
|
89
|
162
|
182.0
|
%
|
|||||||||||
Total
|
$
|
8,266
|
$
|
11,489
|
$
|
(3,223
|
)
|
(28.1
|
)%
|
|||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
20,806
|
$
|
21,775
|
$
|
(969
|
)
|
(4.5
|
)%
|
|||||||
Non-stabilized
|
1,772
|
426
|
1,346
|
316.0
|
%
|
|||||||||||
Total
|
$
|
22,578
|
$
|
22,201
|
$
|
377
|
1.7
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
94.9%
|
96.0%
|
|
Non-stabilized
|
99.8%
|
99.5%
|
|
Total
|
95.2%
|
96.2%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
2,749,718
|
2,727,205
|
|
Non-stabilized
|
177,970
|
177,719
|
|
Total
|
2,927,688
|
2,904,924
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Industrial
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
7,037
|
$
|
7,001
|
$
|
36
|
0.5
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
7,037
|
$
|
7,001
|
$
|
36
|
0.5
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
1,955
|
$
|
2,101
|
$
|
(146
|
)
|
(6.9
|
)%
|
|||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
1,955
|
$
|
2,101
|
$
|
(146
|
)
|
(6.9
|
)%
|
|||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
5,082
|
$
|
4,900
|
$
|
182
|
3.7
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
5,082
|
$
|
4,900
|
$
|
182
|
3.7
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
90.7%
|
92.3%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
90.7%
|
92.3%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
2,945,239
|
2,943,968
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
2,945,239
|
2,943,968
|
|
|
(in thousands, except percentages)
|
|||||||||||||||
|
Six Months Ended October 31,
|
|||||||||||||||
|
2012
|
2011
|
$ Change
|
% Change
|
||||||||||||
Commercial Retail
|
||||||||||||||||
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Stabilized
|
$
|
6,967
|
$
|
6,450
|
$
|
517
|
8.0
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
6,967
|
$
|
6,450
|
$
|
517
|
8.0
|
%
|
||||||||
|
||||||||||||||||
Real estate expenses
|
||||||||||||||||
Stabilized
|
$
|
2,441
|
$
|
2,151
|
$
|
290
|
13.5
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
2,441
|
$
|
2,151
|
$
|
290
|
13.5
|
%
|
||||||||
|
||||||||||||||||
Net operating income
|
||||||||||||||||
Stabilized
|
$
|
4,526
|
$
|
4,299
|
$
|
227
|
5.3
|
%
|
||||||||
Non-stabilized
|
0
|
0
|
0
|
0.0
|
%
|
|||||||||||
Total
|
$
|
4,526
|
$
|
4,299
|
$
|
227
|
5.3
|
%
|
Occupancy
|
2012
|
2011
|
|
Stabilized
|
88.3%
|
87.0%
|
|
Non-stabilized
|
n/a
|
n/a
|
|
Total
|
88.3%
|
87.0%
|
|
Rentable Square Footage
|
2012
|
2011
|
|
Stabilized
|
1,395,632
|
1,392,133
|
|
Non-stabilized
|
0
|
0
|
|
Total
|
1,395,632
|
1,392,133
|
|
Lessee
|
% of Total Commercial
Segments' Minimum Rents
as of October 1, 2012
|
Affiliates of Edgewood Vista
|
13.2%
|
St. Luke's Hospital of Duluth, Inc.
|
3.5%
|
Fairview Health Services
|
3.4%
|
Applied Underwriters
|
2.2%
|
HealthEast Care System
|
1.6%
|
Nebraska Orthopedic Hospital
|
1.3%
|
Affiliates of Siemens USA (NYSE: SI)
|
1.3%
|
Arcadis Corporate Services, Inc.
|
1.2%
|
Microsoft (NASDAQ: MSFT)
|
1.2%
|
State of Idaho Department of Health and Welfare
|
1.1%
|
All Others
|
70.0%
|
Total Monthly Commercial Rent as of October 1, 2012
|
100.0%
|
·
|
a 58-unit multi-family residential property in Sartell, Minnesota (The Ponds at Heritage Place), on approximately 6.5 acres of land, for a purchase price of approximately $5.0 million, of which $3.3 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $1.7 million;
|
·
|
an approximately 2.6 acre parcel of vacant land in Williston, North Dakota, acquired for possible future development, for a purchase price of approximately $822,500, paid in cash; and
|
·
|
an approximately 3.8 acre parcel of vacant land in St. Cloud, Minnesota, acquired for possible future development for a purchase price of approximately $447,000, paid in cash.
|
·
|
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.
|
(in thousands, except per share amounts)
|
||||||||||||||||||||||||
Three Months Ended October 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
|
$
|
8,512
|
$
|
1,285
|
||||||||||||||||||||
Less dividends to preferred shareholders
|
(2,878
|
)
|
(593
|
)
|
||||||||||||||||||||
Net income available to common shareholders
|
5,634
|
92,475
|
$
|
0.06
|
692
|
82,078
|
$
|
0.01
|
||||||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Noncontrolling interest – Operating Partnership
|
1,290
|
21,215
|
194
|
19,591
|
||||||||||||||||||||
Depreciation and amortization(1)
|
16,520
|
14,890
|
||||||||||||||||||||||
Gain on depreciable property sales
|
(2,753
|
)
|
(589
|
)
|
||||||||||||||||||||
Funds from operations applicable to common shares
and Units |
$
|
20,691
|
113,690
|
$
|
0.18
|
$
|
15,187
|
101,669
|
$
|
0.15
|
(in thousands, except per share amounts)
|
||||||||||||||||||||||||
Six Months Ended October 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
|
$
|
10,191
|
$
|
2,706
|
||||||||||||||||||||
Less dividends to preferred shareholders
|
(3,471
|
)
|
(1,186
|
)
|
||||||||||||||||||||
Net income available to common shareholders
|
6,720
|
91,495
|
$
|
0.07
|
1,520
|
81,467
|
$
|
0.02
|
||||||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Noncontrolling interest – Operating Partnership
|
1,541
|
20,963
|
372
|
19,819
|
||||||||||||||||||||
Depreciation and amortization(4)
|
32,707
|
29,713
|
||||||||||||||||||||||
Gain on depreciable property sales
|
(2,680
|
)
|
(589
|
)
|
||||||||||||||||||||
Funds from operations applicable to common shares
and Units |
$
|
38,288
|
112,458
|
$
|
0.34
|
$
|
31,016
|
101,286
|
$
|
0.31
|
(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 $16,506 and $14,874, and depreciation/amortization from Discontinued Operations of $50 and $77, less corporate-related depreciation and amortization on office equipment and other assets of $36 and $61, for the three months ended October 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. |
(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 $32,728 and $29,682, and depreciation/amortization from Discontinued Operations of $114 and $169, less corporate-related depreciation and amortization on office equipment and other assets of $135 and $138, for the six months ended October 31, 2012 and 2011, respectively. |
Month
|
Fiscal Year 2013
|
Fiscal Year 2012
|
||||||
July
|
$
|
.1300
|
$
|
.1715
|
||||
October
|
.1300
|
.1300
|
|
(in thousands)
|
|||||||||||||||||||||||||||||||
|
Future Principal Payments
|
|||||||||||||||||||||||||||||||
Mortgages
|
Remaining
Fiscal 2013
|
Fiscal 2014
|
Fiscal 2015
|
Fiscal 2016
|
Fiscal 2017
|
Thereafter
|
Total
|
Fair Value
|
||||||||||||||||||||||||
Fixed Rate
|
$
|
25,645
|
$
|
64,483
|
$
|
95,381
|
$
|
91,664
|
$
|
197,359
|
$
|
547,129
|
$
|
1,021,661
|
$
|
1,122,434
|
||||||||||||||||
Average Fixed Interest Rate(1)
|
5.67
|
%
|
5.59
|
%
|
5.47
|
%
|
5.39
|
%
|
4.90
|
%
|
||||||||||||||||||||||
Variable Rate
|
$
|
206
|
$
|
892
|
$
|
17,094
|
$
|
124
|
$
|
129
|
$
|
5,091
|
$
|
23,536
|
$
|
23,536
|
||||||||||||||||
Average Variable Interest Rate(1)
|
4.44
|
%
|
4.34
|
%
|
5.03
|
%
|
3.34
|
%
|
3.33
|
%
|
||||||||||||||||||||||
|
$
|
1,045,197
|
$
|
1,145,970
|
|
(in thousands)
|
|||||||||||||||||||||||||||
|
Future Interest Payments
|
|||||||||||||||||||||||||||
Mortgages
|
Remaining
Fiscal 2013
|
Fiscal 2014
|
Fiscal 2015
|
Fiscal 2016
|
Fiscal 2017
|
Thereafter
|
Total
|
|||||||||||||||||||||
Fixed Rate
|
$
|
28,986
|
$
|
55,642
|
$
|
50,984
|
$
|
45,075
|
$
|
36,447
|
$
|
89,879
|
$
|
307,013
|
||||||||||||||
Variable Rate
|
522
|
1,013
|
452
|
178
|
174
|
320
|
2,659
|
|||||||||||||||||||||
|
$
|
309,672
|
(1)
|
Interest rate given is for the entire year.
|
Exhibit No.
|
Description
|
Calculation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Distributions
|
|
Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended October 31, 2012 formatted in eXtensible Business Reporting Language ("XBRL"): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) notes to these condensed consolidated financial statements.
|
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick
|
|
President and Chief Executive Officer
|
|
|
|
/s/ Diane K. Bryantt
|
|
Diane K. Bryantt
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
Date: December 10, 2012
|
|
Exhibit No.
|
Description
|
Calculation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Distributions
|
|
Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended October 31, 2012 formatted in eXtensible Business Reporting Language ("XBRL"): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) notes to these condensed consolidated financial statements.
|
|
Six Months
Ended
|
Fiscal Year Ended
April 30,
|
||||||||||||||||||||||
|
October 31, 2012
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||
Earnings
|
||||||||||||||||||||||||
Income from continuing operations
|
$
|
9,252
|
$
|
9,783
|
$
|
4,475
|
$
|
5,996
|
$
|
9,858
|
$
|
13,945
|
||||||||||||
Add:
|
||||||||||||||||||||||||
Combined fixed charges and preferred distributions (see below)
|
36,638
|
68,172
|
64,954
|
71,497
|
72,027
|
66,317
|
||||||||||||||||||
Less:
|
||||||||||||||||||||||||
(Income) loss noncontrolling interests – consolidated real estate entities
|
(274
|
)
|
(135
|
)
|
180
|
(22
|
)
|
40
|
136
|
|||||||||||||||
Interest capitalized
|
(281
|
)
|
(571
|
)
|
(57
|
)
|
(19
|
)
|
(912
|
)
|
(506
|
)
|
||||||||||||
Preferred distributions
|
(3,471
|
)
|
(2,372
|
)
|
(2,372
|
)
|
(2,372
|
)
|
(2,372
|
)
|
(2,372
|
)
|
||||||||||||
Total earnings
|
$
|
41,864
|
$
|
74,877
|
$
|
67,180
|
$
|
75,080
|
$
|
78,641
|
$
|
77,520
|
||||||||||||
|
||||||||||||||||||||||||
Fixed charges
|
||||||||||||||||||||||||
Interest expensed
|
$
|
32,886
|
$
|
65,229
|
$
|
62,525
|
$
|
69,106
|
$
|
68,743
|
$
|
63,439
|
||||||||||||
Interest capitalized
|
281
|
571
|
57
|
19
|
912
|
506
|
||||||||||||||||||
Total fixed charges
|
$
|
33,167
|
$
|
65,800
|
$
|
62,582
|
$
|
69,125
|
$
|
69,655
|
$
|
63,945
|
||||||||||||
Preferred distributions
|
3,471
|
2,372
|
2,372
|
2,372
|
2,372
|
2,372
|
||||||||||||||||||
Total combined fixed charges and preferred distributions
|
$
|
36,638
|
$
|
68,172
|
$
|
64,954
|
$
|
71,497
|
$
|
72,027
|
$
|
66,317
|
||||||||||||
|
||||||||||||||||||||||||
Ratio of earnings to fixed charges
|
1.26
|
1.14
|
1.07
|
1.09
|
1.13
|
1.21
|
||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred distributions
|
1.14
|
1.10
|
1.03
|
1.05
|
1.09
|
1.17
|
1. | I have reviewed this quarterly report on Form 10-Q of Investors Real Estate Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By:
|
/s/ Timothy, P. Mihalick
|
|
|
Timothy, P. Mihalick , President & CEO
|
|
1. | I have reviewed this quarterly report on Form 10-Q of Investors Real Estate Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By:
|
/s/ Diane K. Bryantt
|
|
|
Diane K. Bryantt, Executive Vice President & CFO
|
|
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick
|
|
President and Chief Executive Officer
|
|
Date: December 10, 2012
|
|
|
|
|
|
/s/ Diane K. Bryantt
|
|
Diane K. Bryantt
|
|
Executive Vice President and Chief Financial Officer
|
|
Date: December 10, 2012
|
|
SUBSEQUENT EVENTS (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 31, 2012
|
Oct. 31, 2011
|
Oct. 31, 2012
|
Oct. 31, 2011
|
|
Subsequent Event [Line Items] | ||||
Shares issued | $ 2,846,000 | $ 773,000 | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.1300 | $ 0.1300 | $ 0.2600 | $ 0.3015 |
Sales price | 8,223,000 | |||
Proceeds from sale of property | 3,267,000 | 2,088,000 | ||
Subsequent Event [Member] | Multi-family residential property in Topeka, Kansas [Member]
|
||||
Subsequent Event [Line Items] | ||||
Sales price | 2,000,000 | |||
Buyer's assumption of the existing mortgage debt | 1,200,000 | 1,200,000 | ||
Proceeds from sale of property | 701,000 | |||
Number of buildings | 12 | 12 | ||
Area of land (in acres) | 5.9 | 5.9 | ||
Number of property unit | 116 | 116 | ||
Cash paid for acquisition of property | 7,600,000 | 7,600,000 | ||
Subsequent Event [Member] | Multi-family residential property in Omaha, Nebraska [Member]
|
||||
Subsequent Event [Line Items] | ||||
Number of buildings | 9 | 9 | ||
Purchase price of acquired property | 28,600,000 | 28,600,000 | ||
Area of land (in acres) | 18.5 | 18.5 | ||
Number of property unit | 336 | 336 | ||
Subsequent Event [Member] | Adjoining parcels of vacant land in Rochester, Minnesota [Member]
|
||||
Subsequent Event [Line Items] | ||||
Purchase price of acquired property | 1,100,000 | 1,100,000 | ||
Area of land (in acres) | 24 | 24 | ||
Number of property unit | 2 | 2 | ||
Subsequent Event [Member] | Vacant land in Grand Forks, North Dakota [Member]
|
||||
Subsequent Event [Line Items] | ||||
Purchase price of acquired property | 1,600,000 | 1,600,000 | ||
Area of land (in acres) | 10 | 10 | ||
Number of property unit | 2 | 2 | ||
Subsequent Event [Member] | Vacant land in Rapid City, South Dakota [Member]
|
||||
Subsequent Event [Line Items] | ||||
Purchase price of acquired property | $ 879,000 | $ 879,000 | ||
Area of land (in acres) | 9 | 9 |
ACQUISITIONS AND DISPOSITIONS (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and development projects placed in service | The Company expensed approximately $97,000 and $426,000 of transaction costs related to acquisitions in the six months ended October 31, 2012 and 2011, respectively. The Company's acquisitions and development projects placed in service during the six months ended October 31, 2012 and 2011 are detailed below: Six Months Ended October 31, 2012
Six Months Ended October 31, 2011
Acquisitions in the six months ended October 31, 2012 and 2011 are immaterial to our real estate portfolio both individually and in the aggregate, and consequently no proforma information is presented. The results of operations from acquired properties are included in the Condensed Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our acquisitions in the six months ended October 31, 2012 and 2011, respectively, (excluding development projects placed in service) are detailed below.
PROPERTY DISPOSITIONS During the second quarter of fiscal year 2013, the Company sold two condominium units and two-multi-family residential properties for a total sales price of $7.3 million. Mortgage debt in the amount of $4.6 million on the two multi-family residential properties was assumed by the buyer. During the first quarter of fiscal year 2013, IRET sold two condominium units and a commercial retail property. During the second quarter of fiscal year 2012, the Company sold a small retail property in Livingston, Montana, for a sale price of approximately $2.2 million, with approximately $1.2 million of the sale proceeds applied to pay off the outstanding mortgage loan balance on the property. The Company had no real estate dispositions in the first quarter of fiscal year 2012. The following table details the Company's dispositions during the six months ended October 31, 2012 and 2011: Six Months Ended October 31, 2012
Six Months Ended October 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of operations from acquired properties | Acquisitions in the six months ended October 31, 2012 and 2011 are immaterial to our real estate portfolio both individually and in the aggregate, and consequently no proforma information is presented. The results of operations from acquired properties are included in the Condensed Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our acquisitions in the six months ended October 31, 2012 and 2011, respectively, (excluding development projects placed in service) are detailed below.
|
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)
In Thousands, unless otherwise specified |
Oct. 31, 2012
|
Apr. 30, 2012
|
Oct. 31, 2011
|
Apr. 30, 2011
|
---|---|---|---|---|
Carrying Amount [Member]
|
||||
FINANCIAL ASSETS [Abstract] | ||||
Cash and cash equivalents | $ 84,258 | $ 39,989 | $ 84,258 | $ 39,989 |
Other investments | 637 | 634 | 637 | 634 |
Fair Value [Member]
|
||||
FINANCIAL LIABILITIES [Abstract] | ||||
Other debt | 32,775 | 13,875 | 32,840 | 13,973 |
Line of credit | 10,000 | 39,000 | 10,000 | 39,000 |
Mortgages payable | $ 1,045,197 | $ 1,048,689 | $ 1,145,970 | $ 1,087,082 |
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