Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. The Company has no outstanding options, warrants, convertible stock or other contractual obligations requiring issuance of additional shares that would result in dilution of earnings. Units can be exchanged for shares on a one-for-one basis after a minimum holding period of one year. The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three and six months ended October 31, 2012 and 2011:

	(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