ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Oct. 31, 2012

ACQUISITIONS AND DISPOSITIONS [Abstract]

ACQUISITIONS AND DISPOSITIONS

NOTE 8 • ACQUISITIONS AND DISPOSITIONS

PROPERTY ACQUISITIONS

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

· 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.

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.

The Company had no development projects placed in service during the second quarter of fiscal year 2013. 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 Gardens multi-family residential development in Williston, North Dakota. The Company is the majority member of the joint venture entity that owns the Williston Gardens development, with a 60% interest.

During the second quarter of fiscal year 2012, the Company closed on the following acquisitions: a medical office property in Edina, Minnesota; two multi-family residential properties in Sioux Falls, South Dakota; seven senior housing projects in Boise, Idaho and towns surrounding Boise; a multi-family residential property in St. Cloud, Minnesota; and two parcels of vacant land, in Minot, North Dakota and Casper, Wyoming, respectively; the Company also placed in-service during the second quarter of fiscal year 2012 an approximately 25,000 square foot medical clinic in Minot, North Dakota. During the first quarter of fiscal year 2012, the Company substantially completed construction of a six-screen movie theater at its existing Buffalo Mall property in Jamestown, North Dakota, for a total cost of $2.2 million. The Company had no acquisitions during the first quarter of fiscal year 2012.

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

		(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.

Six Months Ended October 31, 2011

		(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.

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.

	(in thousands)
	Six Months Ended October 31
	2012				2011
Total revenue		$	2,929			$	933
Net income		$	(135	)		$	117

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

	(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 SquareCondominiums 5 and 6		330		336		(6	)
Georgetown SquareCondominiums 3 and 4		368		421		(53	)
		698		757		(59	)
Total Property Dispositions	$	8,223	$	5,543	$	2,680

Six Months Ended October 31, 2011

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