8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (date of earliest event reported):

December 10, 2012

INVESTORS REAL ESTATE TRUST

(Exact name of registrant as specified in its charter)

North Dakota	0-14851	45-0311232
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1400 31^st Avenue SW, Suite 60

Post Office Box 1988

Minot, ND 58702-1988

(Address of principal executive offices, including zip code)

701-837-4738

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

ITEM 2.02.Results of Operations and Financial Condition

and

ITEM 7.01.Regulation FD Disclosure

An earnings release issued by the Registrant on December 10, 2012, regarding financial and operational results for the three and six months ended October 31, 2012, is attached as Exhibit 99.1. Also, certain supplemental information not included in the earnings release is attached as Exhibit 99.2. This information is being furnished pursuant to Item 7.01 and Item 2.02 of Form 8-K. This information is not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

ITEM 9.01Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number	Description
99.1	Earnings Release issued December 10, 2012, regarding financial and operational results for the three and six months ended October 31, 2012
99.2	Certain supplemental information not included in the earnings release

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INVESTORS REAL ESTATE TRUST
	By: /s/  Timothy P. Mihalick
	Timothy P. Mihalick
	President & Chief Executive Officer
Date: December 10, 2012

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER AND YEAR-TO-DATE ENDED OCTOBER 31, 2012

Minot, ND – December 10, 2012 – Investors Real Estate Trust (NASDAQ: IRET) reportedfinancial and operating results today for the quarter and year-to-date ended October 31, 2012.

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

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

· Revenues increased to $64.9 million from $60.2 million.

· Total expenses increased by approximately $544,000, or 1.3%, in the three months ended October 31, 2012 compared to the three months ended October 31, 2011, from $43.3 million to $43.9 million.

· FFO increased to $20.7 million on approximately 113,690,000 weighted average shares and units outstanding, from $15.2 million on approximately 101,669,000 weighted average shares and units outstanding ($.18 per share and unit compared to $.15 per share and unit).

· Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $5.6 million compared to $692,000 in the same period of the prior fiscal year.

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

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

· Revenues increased to $126.9 million from $119.4 million.

· Total expenses increased by $2.3 million, or 2.7%, in the six months ended October 31, 2012 compared to the six months ended October 31, 2011, from $85.3 million to $87.6 million.

· FFO increased to $32.3 million on approximately 112,458,000 weighted average shares and units outstanding, from $31.0 million on approximately 101,286,000 weighted average shares and units outstanding ($.34 per share and unit compared to $.31 per share and unit).

· Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $6.7 million compared to $1.5 million in the same period of the prior fiscal year.

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

· the acquisition of a multi-family residential property in Sartell, Minnnesota, for approximately $5.0 million.

· the acquisition of two parcels of vacant land for possible future 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. As of October 31, 2012, approximately $79.0 million of the proceeds of the public offering had been applied to debt repayment. The remaining proceeds will be applied to debt repayment, acquisitions and construction costs at the Company's development projects.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "IRET continues to make progress in the execution of its previously-announced strategic plan by acquiring and developing properties in our core markets as well as disposing of non-core properties. We acquired the 58-unit Ponds Apartment complex in Sartell, MN; began a new 132-unit development in St. Cloud, MN, and exited the Fargo, ND multifamily market by disposing of all 267 apartment units IRET owned in that market.  In addition, the completion of a public offering of preferred shares in August of 2012, which provided net proceeds of approximately $111.2 million, has allowed IRET to meet its goal of reducing leverage by applying $79.0 million to immediate debt reduction, with the remaining proceeds to be applied for additional debt pay down, to fund acquisitions in our core markets, and to  focus IRET's efforts on development projects, particularly in our home market of North Dakota, where the Bakken energy field is still providing opportunity for solid returns for our shareholders."

______________________________

1The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as "net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis."  In addition, in October 2011 NAREIT clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure. We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time.  Since real estate values instead historically rise or fall with market conditions, we believe that FFO provides investors and management with a more accurate indication of our financial and operating results. See table below for a reconciliation of Net Income to FFO.

i

Operating Results

Net Operating Income (NOI)² from all properties increased by $7.7 million, or 22.3%, during the three month period ended October 31, 2012, compared to the same period one year ago. Non-stabilized properties accounted for $5.8 million of the increase, of which $3.5 million was due to acquisitions and developments and $2.3 million was gain on involuntary conversion resulting from a fire loss. Stabilized properties provided $1.9 million of the overall increase.

Of the total increase in NOI from stabilized properties, the multi-family residential segment accounted for $1.6 million. This segment continues to experience consistent, high occupancy rates which provides an opportunity to increase rents at certain properties.  NOI from stabilized combined commercial segments accounted for $300,000 of the NOI increase, primarily as a result of lower expenses, as there has been no significant change in occupancy in these segments as compared to the same period one year ago.

NOI from all properties increased by $10.3 million, or 15.0%, during the six month period ended October 31, 2012, compared to the same period one year ago. Non-stabilized properties accounted for $8.7 million of the increase, with $6.4 million of increased NOI due to acquisitions and developments, and $2.3 million due to gain on involuntary conversion resulting from a fire loss.  Stabilized properties provided $1.6 million of the increase. 

Of the total increase in NOI from stabilized properties in the six-month period ended October 31, 2012, the multi-family residential segment accounted for $2.5 million. As noted above, this segment continues to experience consistent, high occupancy rates, allowing the Company to increase rents at certain properties. Additionally, in-house management has resulted in some expense reduction. NOI from the stabilized commercial medical segment was $969,000 less than the same period in the previous year, primarily due to decreased occupancy.  All other commercial segments provided an NOI increase of approximately $68,000; there has been no significant change in occupancy in these segments in the six months ended October 31, 2012 compared to the six months ended October 31, 2011.  Detail on NOI by segment is provided in the Company's Quarterly Report on Form 10-Q for the quarter ended October 31, 2012.

Physical occupancy as of October 31, 2012 compared to October 31, 2011 increased in two of our five reportable segments, decreasing slightly in our multi-family residential, commercial medical and commercial industrial segments, on a stabilized basis and an all-property basis.

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

	Stabilized Properties(a)		All Properties
	As of October 31,		As of  October 31,
Segments	Fiscal 2013	Fiscal 2012	Fiscal 2013	Fiscal 2012
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%

a.	As of October 31, 2012, stabilized properties excluded:
	Multi-Family Residential -	Ashland, Grand Forks, ND; Chateau, Minot, ND; Colony, Lincoln, NE; Cottage West Twin Homes, Sioux Falls, SD; Evergreen II, Isanti, MN; Gables Townhomes, Sioux Falls, SD; Grand Gateway, St Cloud, MN; Lakeside Village, Lincoln, NE; Quarry Ridge II, Rochester, MN; Regency Park Estates, St Cloud, MN; 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.
	As of October 31, 2011, stabilized properties excluded:
	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 We measure the performance of our segments based on NOI, which we define as total real estate revenues less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance and property management expenses). We believe that NOI is an important supplemental measure of operating performance for a real estate investment trust's operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance. See tables below for a reconciliation of NOI to the condensed consolidated financial statements.

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

ii

Acquisitions and Dispositions

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 second quarter of fiscal year 2013, the Company sold two condominium units and two-multi-family residential properties for a total sales price of approximately $7.3 million.

Shareholder Equity, Distributions and Capital Structure

As of October 31, 2012, IRET had a total capitalization of $2.2 billion. Total capitalization is defined as the market value (closing price at end of period) of the Company's outstanding common shares and the imputed market value of the outstanding limited partnership units of IRET Properties (which are convertible, at the expiration of a specified holding period, into cash or, at the Company's sole discretion, into common shares of the Company on a one-to-one basis), plus the book value of the Company's preferred shares and the outstanding principal balance of the consolidated debt of the Company.

On October 1, 2012, IRET paid a quarterly distribution of $0.1300 per share and unit on its common shares and limited partnership units of IRET Properties. This was IRET's 166^th consecutive distribution. IRET also paid, on October 1, 2012, a quarterly distribution of $0.5156 per share on its Series A preferred shares and an initial prorated quarterly distribution of $0.3312 per share on its Series B preferred shares.

Distribution Declared.  Subsequent to the end of the second quarter of fiscal year 2013, on December 5, 2012, the Company's Board of Trustees declared a regular quarterly distribution of $0.1300 per share and unit on the Company's common shares of beneficial interest and the limited partnership units of IRET Properties, payable January 15, 2013 to common shareholders and unitholders of record on January 2, 2013. Also on December 5, 2012, the Company's Board of Trustees' declared a distribution of $0.5156 per share on the Company's Series A preferred shares of beneficial interest, payable December 31, 2012 to Series A preferred shareholders of record on December 17, 2012, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2012 to Series B preferred shareholders of record on December 17, 2012.

Conference Call Information

The Conference Call for 2nd Quarter Earnings is scheduled for Tuesday, December 11, 2012 at 9:00 A.M. Central Standard Time.  The call will be limited to one hour, including questions and answers.  Conference call access information is as follows:

USA Toll Free Number: 1-877-317-6789

International Toll Free Number: 1-412-317-6789

Canada Toll Free Number: 1-866-605-3852

A webcast and transcript of the call will be archived on the "Investors/ Presentations & Events/Presentations" page of IRET's website, http://www.iret.com, for one year.  Questions regarding the conference call should be directed to IRET Investor Relations at landerson@iret.com.

About IRET

IRET is a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest. IRET owns a diversified portfolio of properties consisting of 85 multi-family residential properties with 9,934 apartment units; and 68 commercial office properties, 65 commercial medical properties (including senior housing), 19 commercial industrial properties and 30 commercial retail properties with a total of approximately 12.3 million square feet of leasable space.  IRET common and Series A preferred shares are publicly traded on the NASDAQ Global Select Market (symbols: IRET and IRETP) and IRET Series B preferred shares are publicly traded on the New York Stock Exchange (symbol: IRET PRB). IRET's press releases and supplemental information are available on the Company website at www.iret.com or by contacting Investor Relations at 701-837-4738.

Certain statements in this earnings release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Such risks, uncertainties and other factors include, but are not limited to: intentions and expectations regarding future distributions on our common shares and units, fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2012 Form 10-K.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

iii

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	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
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

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

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
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

v

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three and six months ended October 31, 2012 and 2011

	(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			15,591
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(5)		Per Share And Unit(6)
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.

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and six months ended October 31, 2012 and 2011

	(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		8,251		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

vii

EX-99.2

Exhibit 99.2

Second Quarter Fiscal 2013

Supplemental Operating and Financial Data

for the Quarter Ended October 31, 2012

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

Supplemental Financial and Operating Data

Table of Contents

October 31, 2012

	Page
Company Background and Highlights	2
Property Cost by Segment	5
Key Financial Data
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Funds From Operations	8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)	9
Capital Analysis
Long-Term Mortgage Debt Analysis	10
Long-Term Mortgage Debt Detail	11-13
Capital Analysis	14
Portfolio Analysis
Stabilized Properties Net Operating Income Summary	15
Net Operating Income Detail	16-19
Stabilized Properties and Overall Physical Occupancy Levels by Segment	20
Tenant Analysis
Commercial Leasing Summary	21-22
Multi-Family Residential Summary	23
10 Largest Commercial Tenants - Based on Annualized Base Rent	24
Lease Expirations	25
Growth and Strategy
Acquisition Summary	26
Development Summary	27
Definitions	28

1

Company Background and Highlights

Second Quarter Fiscal 2013

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

During the 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 second quarter of fiscal year 2013, the Company sold two condominium units and two-multi-family residential properties, for a total sales price of approximately $7.3 million.

The Company's revenues in the second quarter of fiscal year 2013 continued to be affected by low occupancy levels in its commercial office segment. Despite the ongoing economic recovery and renewed commercial leasing interest, the Company believes the continued elevated vacancy in its commercial office segment reflects continuing challenging economic conditions in certain of the Company's markets. IRET's multi-family residential portfolio continued its strong performance, with real estate revenue increasing compared to the year-earlier periods, although occupancy levels decreased slightly.

In the second quarter of fiscal year 2013, IRET paid its 166^th consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on October 1, 2012. Subsequent to the end of the second quarter of fiscal year 2013, the Company declared a quarterly distribution of $0.1300 per share and unit payable on January 15, 2013 to shareholder and unitholders of record on January 2, 2013. The Board of Trustees also declared a quarterly distribution of $0.5156 per share on the Company's Series A preferred shares, payable December 31, 2012 to Series A preferred shareholders of record on December 17, 2012, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2012 to Series B preferred shareholders of record on December 17, 2012.

As of October 31, 2012, IRET owns a diversified portfolio of 267 properties consisting of 85 multi-family residential properties, 68 commercial office properties, 65 commercial medical properties (including senior housing), 19 commercial industrial properties and 30 commercial retail properties.  IRET's common shares are publicly traded on the NASDAQ Global Select Market (NASDAQ:  IRET).

2

Company Snapshot

(as of October 31, 2012)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential, Commercial Office, Commercial Medical, Commercial Industrial, Commercial Retail
Total Properties	267
Total Square Feet
(commercial properties)	12.3 million
Total Units
(multi-family residential properties)	9,934
Common Shares Outstanding (thousands)	93,161
Limited Partnership Units Outstanding (thousands)	21,336
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	6.2%
Total Capitalization (see p.14 for detail)	$2.2 billion

Investor Information

Board of Trustees

Jeffrey L. Miller	Trustee and Chairman
Stephen L. Stenehjem	Trustee
John D. Stewart	Trustee, Chair of Audit Committee, and Vice Chairman
John T. Reed	Trustee, Chair of Nominating and Governance Committee
W. David Scott	Trustee, Chair of Compensation Committee
Jeffrey K. Woodbury	Trustee
Linda J. Hall	Trustee
Thomas A. Wentz, Jr.	Trustee, Executive Vice President and Chief Operating Officer
Timothy P. Mihalick	Trustee, President and Chief Executive Officer

Management

Timothy P. Mihalick	President and Chief Executive Officer; Trustee
Thomas A. Wentz, Jr	Executive Vice President and Chief Operating Officer; Trustee
Diane K. Bryantt	Executive Vice President and Chief Financial Officer
Michael A. Bosh	Executive Vice President, General Counsel and Assistant Secretary
Mark Reiling	Executive Vice President of Asset Management
Charles A. Greenberg	Senior Vice President, Commercial Asset Management
Ted E. Holmes	Senior Vice President, Finance
Andrew Martin	Senior Vice President, Residential Property Management

Corporate Headquarters:

1400 31^st Avenue SW, Suite 60

Post Office Box 1988

Minot, North Dakota 58702-1988

Trading Symbol:  IRET

Stock Exchange Listing:  NASDAQ

Investor Relations:

Lindsey Knoop-Anderson

landerson@iret.com

3

Common Share Data (NASDAQ: IRET)

	2nd Quarter Fiscal Year 2013			1st Quarter Fiscal Year 2013			4th Quarter Fiscal Year 2012			3rd Quarter Fiscal Year 2012			2nd Quarter Fiscal Year 2012
High Closing Price	$	8.49		$	8.31		$	7.97		$	7.64		$	8.12
Low Closing Price	$	7.92		$	7.05		$	7.22		$	6.89		$	6.92
Average Closing Price	$	8.25		$	7.57		$	7.56		$	7.27		$	7.46
Closing Price at end of quarter	$	8.42		$	8.16		$	7.22		$	7.42		$	7.41
Common Share Distributions—annualized	$	0.520		$	0.520		$	0.520		$	0.520		$	0.520
Closing Dividend Yield - annualized		6.2	%		6.4	%		7.2	%		7.0	%		7.0	%
Closing common shares outstanding (thousands)		93,161			91,812			89,474			85,744			83,682
Closing limited partnership units outstanding (thousands)		21,336			21,171			20,332			19,596			19,534
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	964,065		$	921,941		$	792,799		$	781,623		$	764,831

Certain statements in these supplemental disclosures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Such risks, uncertainties and other factors include, but are not limited to: intentions and expectations regarding future distributions on our common shares and units, fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our 2012 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Second Quarter Fiscal 2013 Acquisition

The Ponds at Heritage Place1210 & 1211 7th Ave S Sartell, MN 56377

4

Property Cost by Segment – Second Quarter Fiscal 2013

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

5

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
ASSETS
Real estate investments
Property owned	$	1,983,978		$	1,979,099		$	1,892,009		$	1,861,321		$	1,844,654
Less accumulated depreciation		(394,256	)		(387,286	)		(373,490	)		(364,190	)		(351,174	)
		1,589,722			1,591,813			1,518,519			1,497,131			1,493,480
Development in progress		23,218			10,498			27,599			22,281			14,124
Unimproved land		11,670			10,990			10,990			6,390			6,558
Mortgage loans receivable, net of allowance		0			0			0			0			155
Total real estate investments		1,624,610			1,613,301			1,557,108			1,525,802			1,514,317
Real estate held for sale		1,844			1,131			2,067			0			0
Cash and cash equivalents		84,258			37,002			39,989			35,502			32,697
Other investments		637			635			634			633			628
Receivable arising from straight-lining of rents, net of allowance		24,895			24,127			23,273			21,965			20,905
Accounts receivable, net of allowance		2,854			6,448			7,052			3,977			8,243
Real estate deposits		55			4			263			578			451
Prepaid and other assets		2,101			3,070			3,703			4,107			1,718
Intangible assets, net of accumulated amortization		42,281			43,796			44,588			49,055			50,322
Tax, insurance, and other escrow		12,177			13,161			11,669			11,427			11,315
Property and equipment, net of accumulated depreciation		1,351			1,332			1,454			1,464			1,986
Goodwill		1,110			1,120			1,120			1,120			1,127
Deferred charges and leasing costs, net of accumulated amortization		21,164			21,932			21,447			22,014			21,255
TOTAL ASSETS	$	1,819,337		$	1,767,059		$	1,714,367		$	1,677,644		$	1,664,964
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	38,762		$	41,084		$	47,403		$	43,439		$	39,002
Revolving line of credit		10,000			44,500			39,000			49,000			47,000
Mortgages payable		1,045,197			1,080,655			1,048,689			1,038,717			1,039,625
Other		32,889			25,094			14,012			6,326			1,164
TOTAL LIABILITIES		1,126,848			1,191,333			1,149,104			1,137,482			1,126,791
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		0			0			0			0			1,005
EQUITY
Investors Real Estate Trust shareholders' equity
Series A Preferred Shares of Beneficial Interest		27,317			27,317			27,317			27,317			27,317
Series B Preferred Shares of Beneficial Interest		111,357			0			0			0			0
Common Shares of Beneficial Interest		711,880			701,431			684,049			657,304			643,022
Accumulated distributions in excess of net income		(295,396	)		(289,025	)		(278,377	)		(269,942	)		(260,535	)
Total Investors Real Estate Trust shareholders' equity		555,158			439,723			432,989			414,679			409,804
Noncontrolling interests – Operating Partnership		122,357			122,373			118,710			114,852			116,550
Noncontrolling interests – consolidated real estate entities		14,974			13,630			13,564			10,631			10,814
Total equity		692,489			575,726			565,263			540,162			537,168
TOTAL LIABILITIES AND EQUITY	$	1,819,337		$	1,767,059		$	1,714,367		$	1,677,644		$	1,664,964

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Six Months Ended						Three Months Ended
OPERATING RESULTS	10/31/2012			10/31/2011			10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
Real estate revenue	$	126,929		$	119,364		$	64,943		$	61,986		$	60,188		$	60,546		$	60,200
Real estate expenses		49,645			50,169			24,804			24,841			22,634			24,590			25,527
Gain on involuntary conversion		2,263			0			2,263			0			274			0			0
Net operating income		79,547			69,195			42,402			37,145			37,828			35,956			34,673
Depreciation/amortization		(32,728	)		(29,682	)		(16,506	)		(16,222	)		(15,146	)		(15,183	)		(14,874	)
Administrative expenses, advisory and trustee services		(4,157	)		(4,285	)		(2,061	)		(2,096	)		(1,437	)		(1,659	)		(2,104	)
Other expenses		(1,032	)		(1,150	)		(513	)		(519	)		(389	)		(359	)		(835	)
Interest expense		(32,723	)		(31,978	)		(16,300	)		(16,423	)		(16,333	)		(16,411	)		(16,193	)
Interest and other income		345			366			203			142			141			279			213
Income from continuing operations		9,252			2,466			7,225			2,027			4,664			2,623			880
Income (loss) from discontinued operations		2,754			598			2,785			(31	)		(543	)		(102	)		611
Net income	$	12,006		$	3,064		$	10,010		$	1,996		$	4,121		$	2,521		$	1,491
Net income attributable to noncontrolling interest – Operating Partnership		(1,541	)		(372	)		(1,290	)		(251	)		(636	)		(351	)		(194	)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		(274	)		14			(208	)		(66	)		(106	)		(43	)		(12	)
Net income attributable to Investors Real Estate Trust		10,191			2,706			8,512			1,679			3,379			2,127			1,285
Dividends to preferred shareholders		(3,471	)		(1,186	)		(2,878	)		(593	)		(593	)		(593	)		(593	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	6,720		$	1,520		$	5,634		$	1,086		$	2,786		$	1,534		$	692
Per Share Data
Earnings per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.05		$	.01		$	.04		$	.01		$	.04		$	.02		$	.00
Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.02			.01			.02			.00			(.01	)		.00			.01
Net income per common share – basic & diluted	$	.07		$	.02		$	.06		$	.01		$	.03		$	.02		$	.01
Percentage of Revenues
Real estate expenses		39.1	%		42.0	%		38.2	%		40.1	%		37.6	%		40.6	%		42.4	%
Depreciation/amortization		25.8	%		24.9	%		25.4	%		26.2	%		25.2	%		25.1	%		24.7	%
General and administrative		3.3	%		3.6	%		3.2	%		3.4	%		2.4	%		2.7	%		3.5	%
Interest		25.8	%		26.8	%		25.1	%		26.5	%		27.1	%		27.1	%		26.9	%
Income (loss) from discontinued operations		2.2	%		0.5	%		4.3	%		(0.1	)%		(0.9	)%		(0.2	)%		1.0	%
Net income		9.5	%		2.6	%		15.4	%		3.2	%		6.8	%		4.2	%		2.5	%
Ratios
EBITDA(1)/Interest expense		2.19	x		2.00	x		2.28	x		2.09	x		2.17	x		2.07	x		1.97	x
EBITDA(1)/Interest expense plus preferred distributions		1.98	x		1.93	x		1.95	x		2.02	x		2.09	x		2.00	x		1.90	x

(1) See Definitions on page 28.  EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income.

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS(unaudited)

(in thousands, except per share and unit data)

	Six Months Ended						Three Months Ended
	10/31/2012			10/31/2011			10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
Funds From Operations(1)
Net income attributable to Investors Real Estate Trust	$	10,191		$	2,706		$	8,512		$	1,679		$	3,379		$	2,127		$	1,285
Less dividends to preferred shareholders		(3,471	)		(1,186	)		(2,878	)		(593	)		(593	)		(593	)		(593	)
Net income available to common shareholders		6,720			1,520			5,634			1,086			2,786			1,534			692
Adjustments:
Noncontrolling interests – Operating Partnership		1,541			372			1,290			251			636			351			194
Depreciation and amortization		32,707			29,713			16,520			16,187			15,165			15,179			14,890
Real estate impairment		0			0			0			0			293			135			0
(Gain) loss on depreciable property sales	$	(2,680	)	$	(589	)		(2,753	)		73			240			0			(589	)
Funds from operations applicable to common shares and Units		38,288			31,016		$	20,691		$	17,597		$	19,120		$	17,199		$	15,187
FFO per share and unit - basic and diluted	$	0.34		$	0.31		$	0.18		$	0.16		$	0.18		$	0.16		$	0.15
Adjusted funds from operations(1)
Funds from operations applicable to common shares and Units	$	38,288		$	31,016		$	20,691		$	17,597		$	19,120		$	17,199		$	15,187
Adjustments:
Tenant improvements		(3,591	)		(3,456	)		(1,385	)		(2,206	)		(4,846	)		(2,007	)		(2,021	)
Leasing commissions		(768	)		(1,885	)		567			(1,335	)		701			(1,589	)		(1,182	)
Recurring capital expenditures(1)		(4,097	)		(3,841	)		(2,110	)		(1,987	)		(1,451	)		(1,411	)		(1,872	)
Straight-line rents		(1,632	)		(1,995	)		(768	)		(864	)		(1,330	)		(1,059	)		(1,597	)
Non-real estate depreciation		219			217			83			136			78			114			90
Gain on involuntary conversion		(2,263	)		0			(2,263	)		0			(274	)		0			0
Adjusted funds from operations applicable to common shares and Units	$	26,156		$	20,056		$	14,815		$	11,341		$	11,998		$	11,247		$	8,605
AFFO per share and unit - basic and diluted		0.23			0.20			0.13			0.10			0.11			0.11			0.09
Weighted average shares and units		112,458			101,286			113,690			111,292			107,316			103,935			101,669

(1) See Definitions on page 28.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Six Months Ended						Three Months Ended
	10/31/2012			10/31/2011			10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
EBITDA(1)
Net income attributable to Investors Real Estate Trust	$	10,191		$	2,706		$	8,512		$	1,679		$	3,379		$	2,127		$	1,285
Adjustments:
Noncontrolling interests – Operating Partnership		1,541			372			1,290			251			636			351			194
Income before noncontrolling interests – Operating Partnership		11,732			3,078			9,802			1,930			4,015			2,478			1,479
Add:
Interest		32,886			32,243			16,369			16,517			16,454			16,533			16,318
Depreciation/amortization related to real estate investments		31,210			28,359			15,757			15,453			14,390			14,359			14,193
Amortization related to non-real estate investments		1,632			1,492			799			833			821			903			758
Amortization related to real estate revenues(2)		83			80			46			37			30			31			29
Less:
Interest income		(106	)		(90	)		(88	)		(18	)		(33	)		(25	)		(37	)
Gain on sale of real estate, land and other investments		(2,680	)		(589	)		(2,753	)		73			240			0			(589	)
Gain on involuntary conversion		(2,263	)		0			(2,263	)		0			(274	)		0			0
EBITDA	$	72,494		$	64,573		$	37,669		$	34,825		$	35,643		$	34,279		$	32,151

(1) Definitions on page 28.

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

9

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt

	5.61% Future Maturities of Mortgage Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average(1)			% of Total Debt
2013	$	12,154	$	0	$	12,154		5.50	%		1.1	%
2014		37,791		647		38,438		5.61	%		3.7	%
2015		74,326		17,250		91,576		5.47	%		8.8	%
2016		77,379		0		77,379		5.56	%		7.4	%
2017		188,031		0		188,031		6.14	%		18.0	%
2018		67,859		0		67,859		5.61	%		6.4	%
2019		97,579		5,639		103,218		5.91	%		9.9	%
2020		124,070		0		124,070		5.90	%		11.9	%
2021		126,042		0		126,042		5.35	%		12.0	%
2022		136,754		0		136,754		5.62	%		13.1	%
Thereafter		79,676		0		79,676		4.76	%		7.7	%
Total maturities	$	1,021,661	$	23,536	$	1,045,197		5.66	%		100.0	%

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

	10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
Balances Outstanding
Mortgage
Fixed rate	$	1,021,661		$	1,064,564		$	1,032,543		$	1,028,198		$	1,033,550
Variable rate		23,536			16,091			16,146			10,519			6,075
Mortgage total	$	1,045,197		$	1,080,655		$	1,048,689		$	1,038,717		$	1,039,625
Weighted Average Interest Rates
Secured		5.66	%		5.72	%		5.78	%		5.84	%		5.86	%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Multi-Family Residential
Monticello Village - Monticello, MN	3/1/2013	$	2,924	$	0	$	0	$	0	$	0	$	2,924
Quarry Ridge - Rochester, MN	10/1/2013		0		11,740		0		0		0		11,740
East Park - Sioux Falls, SD	12/1/2013		0		1,479		0		0		0		1,479
Sycamore Village - Sioux Falls, SD	12/1/2013		0		832		0		0		0		832
Candlelight - Fargo, ND(2)	3/1/2014		0		1,252		0		0		0		1,252
Evergreen II - Isanti, MN	11/1/2014		0		0		2,166		0		0		2,166
Campus Center - St Cloud, MN	6/1/2015		0		0		0		1,316		0		1,316
Campus Knoll - St Cloud, MN	6/1/2015		0		0		0		877		0		877
Landmark - Grand Forks, ND	8/24/2015		0		0		0		1,730		0		1,730
Regency Park Estates - St Cloud, MN	1/1/2016		0		0		0		7,033		0		7,033
Summary of Debt due after Fiscal 2016			0		0		0		0		316,365		316,365
Sub-Total Multi-Family Residential		$	2,924	$	15,303	$	2,166	$	10,956	$	316,365	$	347,714
Commercial Office
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		2,546		0		0		0		2,546
Whitewater Plaza - Minnetonka, MN	3/1/2014		0		1,320		0		0		0		1,320
Viromed - Eden Prairie, MN	4/1/2014		0		478		0		0		0		478
Wirth Corporate Center - Golden Valley, MN	4/1/2014		0		3,538		0		0		0		3,538
TCA Building - Eagan, MN	5/1/2014		0		0		7,311		0		0		7,311
Brenwood - Hennepin County, MN	7/15/2014		0		0		5,250		0		0		5,250
Burnsville Bluffs II - Burnsville, MN	8/8/2014		0		0		1,738		0		0		1,738
Plymouth IV - Plymouth, MN	8/8/2014		0		0		3,206		0		0		3,206
Plymouth V - Plymouth, MN	8/8/2014		0		0		3,747		0		0		3,747
Plaza VII - Boise, ID	9/1/2014		0		0		1,023		0		0		1,023
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		3,363		0		0		3,363
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		0		10,089		0		0		10,089
Northgate I - Maple Grove, MN	12/10/2014		0		0		5,252		0		0		5,252
Plymouth I - Plymouth, MN	12/10/2014		0		0		1,177		0		0		1,177
Plymouth II - Plymouth, MN	12/10/2014		0		0		1,177		0		0		1,177
Plymouth III - Plymouth, MN	12/10/2014		0		0		1,449		0		0		1,449
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		0		593		0		0		593
West River Business Park - Waite Park, MN	1/1/2015		0		0		593		0		0		593
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		0		8,330		0		0		8,330
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		0		8,041		0		0		8,041
US Bank Financial Center - Bloomington, MN	7/1/2015		0		0		0		13,579		0		13,579
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		0		0		1,394		0		1,394
Westgate I - Boise, ID	8/1/2015		0		0		0		1,215		0		1,215
Westgate II - Boise, ID	8/1/2015		0		0		0		2,975		0		2,975
Brook Valley I - LaVista, NE	1/1/2016		0		0		0		1,323		0		1,323
Spring Valley IV - Omaha, NE	1/1/2016		0		0		0		788		0		788
Spring Valley V - Omaha, NE	1/1/2016		0		0		0		866		0		866
Spring Valley X - Omaha, NE	1/1/2016		0		0		0		803		0		803
Spring Valley XI - Omaha, NE	1/1/2016		0		0		0		788		0		788
Summary of Debt due after Fiscal 2016			0		0		0		0		253,147		253,147
Sub-Total Commercial Office		$	0	$	7,882	$	62,339	$	23,731	$	253,147	$	347,099

11

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Commercial Medical
High Pointe Health Campus - Lake Elmo, MN	4/1/2014	$	0	$	5,400	$	0	$	0	$	0	$	5,400
Edgewood Vista - Billings, MT	12/10/2014		0		0		1,937		0		0		1,937
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		0		2,950		0		0		2,950
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		0		1,110		0		0		1,110
Garden View Medical - St Paul, MN	8/1/2015		0		0		0		1,572		0		1,572
Edina 6363 France Medical - St Paul, MN	8/6/2015		0		0		0		10,000		0		10,000
2800 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		5,494		0		5,494
2828 Medical Building - Minneapolis, MN	9/1/2015		0		0		0		8,455		0		8,455
Edina 6405 France Medical - Edina, MN	9/1/2015		0		0		0		8,930		0		8,930
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		0		0		6,576		0		6,576
Summary of Debt due after Fiscal 2016			0		0		0		0		211,365		211,365
Sub-Total Commercial Medical		$	0	$	5,400	$	5,997	$	41,027	$	211,365	$	263,789
Commercial Industrial
Bloomington 2000 West 94th Street - Bloomington, MN(3)	3/1/2013		3,736		0		0		0		0		3,736
Roseville 2929 Long Lake Road - Roseville, MN(3)	3/1/2013		5,494		0		0		0		0		5,494
Bodycote Industrial Building - Eden Prairie, MN	9/1/2013		0		1,082		0		0		0		1,082
Cedar Lake Business Center - St. Louis Park, MN	11/1/2013		0		2,306		0		0		0		2,306
Woodbury 1865 Woodlane - Woodbury, MN	11/1/2013		0		2,713		0		0		0		2,713
Stone Container - Roseville, MN	7/14/2014		0		0		4,500		0		0		4,500
Brooklyn Park 7401 Boone Avenue - Brooklyn Park, MN	9/28/2014						7,500						7,500
Clive 2075 NW 94th St - Clive, IA	9/30/2014		0		0		2,195		0		0		2,195
Metal Improvement Company - New Brighton, MN	9/30/2014		0		0		1,461		0		0		1,461
Winsted Industrial Building	9/30/2014		0		0		386		0		0		386
Stone Container - Fargo, ND	12/1/2015		0		0		0		737		0		737
Stone Container - Fargo, ND	12/1/2015		0		0		0		928		0		928
Summary of Debt due after Fiscal 2016			0		0		0		0		17,311		17,311
Sub-Total Commercial Industrial		$	9,230	$	6,101	$	16,042	$	1,665	$	17,311	$	50,349

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2013		Fiscal 2014		Fiscal 2015		Fiscal 2016		Thereafter		Total(1)
Commercial Retail
Burnsville I Strip Center - Burnsville, MN	6/30/2013	$	0	$	363	$	0	$	0	$	0	$	363
Burnsville II Strip Center - Burnsville, MN	6/30/2013		0		285		0		0		0		285
St Cloud Westgate - St Cloud, MN	10/10/2013		0		3,104		0		0		0		3,104
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		0		2,490		0		0		2,490
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		0		618		0		0		618
Fargo Express Center - Fargo, ND	10/1/2014		0		0		965		0		0		965
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		0		959		0		0		959
Summary of Debt due after Fiscal 2016			0		0		0		0		27,462		27,462
Sub-Total Commercial Retail		$	0	$	3,752	$	5,032	$	0	$	27,462	$	36,246
Total		$	12,154	$	38,438	$	91,576	$	77,379	$	825,650	$	1,045,197

* Mortgage debt does not include the Company's multi-bank line of credit or construction loans.  The line of credit has a maturity date of August 12, 2014; as of October 31, 2012, the Company had borrowings of $10.0 million outstanding under this line. Construction loans and other debt totaled $32.8 million as of October 31, 2012.

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

(2) This loan was assumed by the buyer subsequent to the end of the second quarter of fiscal year 2013 as a result of the sale of the asset.

(3) These loans were paid off December 3, 2012, subsequent to the end of the second quarter of fiscal year 2013.

13

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	10/31/2012		07/31/2012		04/30/2012		01/31/2012		10/31/2011
Equity Capitalization
Common shares outstanding		93,161		91,812		89,474		85,744		83,682
Operating partnership (OP) units outstanding		21,336		21,171		20,332		19,596		19,534
Total common shares and OP units outstanding		114,497		112,983		109,806		105,340		103,216
Market price per common share (closing price at end of period)	$	8.42	$	8.16	$	7.22	$	7.42	$	7.41
Equity capitalization-common shares and OP units	$	964,065	$	921,941	$	792,799	$	781,623	$	764,831
Recorded book value of preferred shares	$	138,674	$	27,317	$	27,317	$	27,317	$	27,317
Total equity capitalization	$	1,102,739	$	949,258	$	820,116	$	808,940	$	792,148
Debt Capitalization
Total debt	$	1,087,972	$	1,150,123	$	1,101,564	$	1,095,416	$	1,087,625
Total capitalization	$	2,190,711	$	2,099,381	$	1,621,680	$	1,604,356	$	1,879,773
Total debt to total capitalization	0.50:1		0.55:1		0.57:1		0.58:1		0.58:1

	Six Months Ended						Three Months Ended
	10/31/2012			10/31/2011			10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
Earnings to fixed charges(1)		1.26	x		1.07	x		1.42	x		1.11	x		1.25	x		1.15	x		1.05	x
Earnings to combined fixed charges and preferred distributions(1)		1.14	x		1.04	x		1.21	x		1.07	x		1.21	x		1.11	x		1.01	x
Debt service coverage ratio(1)		1.52	x		1.39	x		1.60	x		1.45	x		1.49	x		1.43	x		1.37	x
Distribution Data
Common shares and units outstanding at record date		113,516			101,439			113,516			111,525			106,642			103,761			101,439
Total common distribution paid	$	29,170		$	30,461		$	14,757		$	14,413		$	13,809		$	13,486		$	13,186
Common distribution per share and unit	$	.2600		$	.3430		$	.1300		$	.1300		$	.1300		$	.1300		$	.1300
Payout ratio (FFO per share and unit basis)(1)		76.5	%		97.3	%		72.2	%		81.3	%		72.2	%		81.3	%		86.7	%
Payout ratio (AFFO per share and unit basis)(1)		113.0	%		150.8	%		100.0	%		130.0	%		118.2	%		118.2	%		144.4	%

(1) See Definitions on page 28.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties(1)							Stabilized Properties(1)
	Three Months Ended October 31,							Six Months Ended October 31,
Segment	2012		2011		% Change			2012		2011		% Change
Multi-Family Residential	$	10,806	$	9,238		17.0	%	$	20,647	$	18,133		13.9	%
Commercial Office		9,736		9,554		1.9	%		19,085		19,426		(1.8	)%
Commercial Medical		10,434		10,676		(2.3	)%		20,806		21,775		(4.5	)%
Commercial Industrial		2,642		2,431		8.7	%		5,082		4,900		3.7	%
Commercial Retail		2,330		2,155		8.1	%		4,526		4,299		5.3	%
	$	35,948	$	34,054		5.6	%	$	70,146	$	68,533		2.4	%

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

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	18,319		$	19,128		$	14,490		$	3,577		$	3,616		$	0		$	59,130
Non-Stabilized		4,786			0			1,027			0			0			0			5,813
Total		23,105			19,128			15,517			3,577			3,616			0			64,943
Real estate expenses
Stabilized(1)		7,513			9,392			4,056			935			1,286			0			23,182
Non-Stabilized		1,495			0			127			0			0			0			1,622
Total		9,008			9,392			4,183			935			1,286			0			24,804
Gain on involuntary conversion
Non-stabilized		2,263			0			0			0			0			0			2,263
Total		2,263			0			0			0			0			0			2,263
Stabilized(1)		10,806			9,736			10,434			2,642			2,330			0			35,948
Non-Stabilized		5,554			0			900			0			0			0			6,454
Net operating income	$	16,360		$	9,736		$	11,334		$	2,642		$	2,330		$	0		$	42,402
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(4,832	)	$	(5,210	)	$	(4,500	)	$	(909	)	$	(972	)	$	(83	)	$	(16,506	)
Administrative, advisory and trustee fees		0			0			0			0			0			(2,061	)		(2,061	)
Other expenses		0			0			0			0			0			(513	)		(513	)
Interest expense		(5,230	)		(5,305	)		(4,159	)		(853	)		(632	)		(121	)		(16,300	)
Interest and other income		0			0			0			0			0			203			203
Income (loss) from continuing operations		6,298			(779	)		2,675			880			726			(2,575	)		7,225
Income from discontinued operations		2,785			0			0			0			0			0			2,785
Net income (loss)		9,083			(779	)		2,675			880			726			(2,575	)		10,010
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,290	)		(1,290	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(208	)		(208	)
Net income (loss) attributable to Investors Real Estate Trust		9,083			(779	)		2,675			880			726			(4,073	)		8,512
Dividends to preferred shareholders		0			0			0			0			0			(2,878	)		(2,878	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	9,083			(779	)		2,675			880			726		$	(6,951	)	$	5,634

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

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	17,533		$	18,367		$	16,558		$	3,566		$	3,242		$	0		$	59,266
Non-Stabilized		419			0			515			0			0			0			934
Total		17,952			18,367			17,073			3,566			3,242			0			60,200
Real estate expenses
Stabilized(1)		8,295			8,813			5,882			1,135			1,087			0			25,212
Non-Stabilized		226			0			89			0			0			0			315
Total		8,521			8,813			5,971			1,135			1,087			0			25,527
Net Operating Income (NOI)
Stabilized(1)		9,238			9,554			10,676			2,431			2,155			0			34,054
Non-Stabilized		193			0			426			0			0			0			619
Net operating income	$	9,431		$	9,554		$	11,102		$	2,431		$	2,155		$	0		$	34,673
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(3,514	)	$	(5,151	)	$	(4,321	)	$	(925	)	$	(863	)	$	(100	)	$	(14,874	)
Administrative, advisory and trustee services		0			0			0			0			0			(2,104	)		(2,104	)
Other expenses		0			0			0			0			0			(835	)		(835	)
Interest expense		(4,391	)		(5,400	)		(4,091	)		(908	)		(802	)		(601	)		(16,193	)
Interest and other income		0			0			0			0			0			213			213
Income (loss) from continuing operations		1,526			(997	)		2,690			598			490			(3,427	)		880
Income from discontinued operations		21			0			0			0			590			0			611
Net income (loss)		1,547			(997	)		2,690			598			1,080			(3,427	)		1,491
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(194	)		(194	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(12	)		(12	)
Net income (loss) attributable to Investors Real Estate Trust		1,547			(997	)		2,690			598			1,080			(3,633	)		1,285
Dividends to preferred shareholders		0			0			0			0			0			(593	)		(593	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	1,547		$	(997	)	$	2,690		$	598		$	1,080		$	(4,226	)	$	692

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

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2012
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	36,226		$	37,767		$	28,821		$	7,037		$	6,967		$	0		$	116,818
Non-Stabilized		8,088			0			2,023			0			0			0			10,111
Total		44,314			37,767			30,844			7,037			6,967			0			126,929
Real estate expenses
Stabilized(1)		15,579			18,682			8,015			1,955			2,441			0			46,672
Non-Stabilized		2,722			0			251			0			0			0			2,973
Total		18,301			18,682			8,266			1,955			2,441			0			49,645
Gain on involuntary conversion
Non-stabilized		2,263			0			0			0			0			0			2,263
Total		2,263			0			0			0			0			0			2,263
Stabilized(1)		20,647			19,085			20,806			5,082			4,526			0			70,146
Non-Stabilized		7,629			0			1,772			0			0			0			9,401
Net operating income	$	28,276		$	19,085		$	22,578		$	5,082		$	4,526		$	0		$	79,547
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(9,357	)	$	(10,421	)	$	(8,977	)	$	(1,848	)	$	(1,906	)	$	(219	)	$	(32,728	)
Administrative, advisory and trustee fees		0			0			0			0			0			(4,157	)		(4,157	)
Other expenses		0			0			0			0			0			(1,032	)		(1,032	)
Interest expense		(10,044	)		(10,576	)		(8,258	)		(1,727	)		(1,339	)		(779	)		(32,723	)
Interest and other income		0			0			0			0			0			345			345
Income (loss) from continuing operations		8,875			(1,912	)		5,343			1,507			1,281			(5,842	)		9,252
Income from discontinued operations		2,754			0			0			0			0			0			2,754
Net income (loss)		11,629			(1,912	)		5,343			1,507			1,281			(5,842	)		12,006
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(1,541	)		(1,541	)
Net income attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			(274	)		(274	)
Net income (loss) attributable to Investors Real Estate Trust		11,629			(1,912	)		5,343			1,507			1,281			(7,657	)		10,191
Dividends to preferred shareholders		0			0			0			0			0			(3,471	)		(3,471	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	11,629		$	(1,912	)	$	5,343		$	1,507		$	1,281		$	(11,128	)	$	6,720

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

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2011
	Reporting Segments
	Multi-Family Residential			Commercial Office			Commercial Medical			Commercial Industrial			Commercial Retail			Corporate and Other			Total
Real estate rental revenue
Stabilized(1)	$	34,527		$	37,182		$	33,175		$	7,001		$	6,450		$	0		$	118,335
Non-Stabilized		514			0			515			0			0			0			1,029
Total		35,041			37,182			33,690			7,001			6,450			0			119,364
Real estate expenses
Stabilized(1)		16,394			17,756			11,400			2,101			2,151			0			49,802
Non-Stabilized		278			0			89			0			0			0			367
Total		16,672			17,756			11,489			2,101			2,151			0			50,169
Stabilized(1)		18,133			19,426			21,775			4,900			4,299			0			68,533
Non-Stabilized		236			0			426			0			0			0			662
Net operating income	$	18,369		$	19,426		$	22,201		$	4,900		$	4,299		$	0		$	69,195
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(6,968	)	$	(10,511	)	$	(8,514	)	$	(1,806	)	$	(1,684	)	$	(199	)	$	(29,682	)
Administrative, advisory and trustee fees		0			0			0			0			0			(4,285	)		(4,285	)
Other expenses		0			0			0			0			0			(1,150	)		(1,150	)
Interest expense		(8,816	)		(10,598	)		(8,030	)		(1,844	)		(1,570	)		(1,120	)		(31,978	)
Interest and other income		0			0			0			0			0			366			366
Income (loss) from continuing operations		2,585			(1,683	)		5,657			1,250			1,045			(6,388	)		2,466
(Loss) income from discontinued operations		(18	)		0			0			0			616			0			598
Net income (loss)		2,567			(1,683	)		5,657			1,250			1,661			(6,388	)		3,064
Net income attributable to noncontrolling interests – Operating Partnership		0			0			0			0			0			(372	)		(372	)
Net loss attributable to noncontrolling interests – consolidated real estate entities		0			0			0			0			0			14			14
Net income (loss) attributable to Investors Real Estate Trust		2,567			(1,683	)		5,657			1,250			1,661			(6,746	)		2,706
Dividends to preferred shareholders		0			0			0			0			0			(1,186	)		(1,186	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,567		$	(1,683	)	$	5,657		$	1,250		$	1,661		$	(7,932	)	$	1,520

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

19

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

2^nd Quarter Fiscal 2013 vs. 2^nd Quarter Fiscal 2012

Segments	Stabilized Properties		All Properties
	2ndQuarter	2ndQuarter	2ndQuarter	2ndQuarter
	Fiscal 2013	Fiscal 2012	Fiscal 2013	Fiscal 2012
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%

20

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY

for the three and six months ended October 31, 2012

	Three Months Ended October 31, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		75,225		30,798		106,023		50,543		55,480
Commercial Medical		3,725		9,988		13,713		9,568		4,145
Commercial Industrial		0		0		0		0		0
Commercial Retail		30,207		37,110		67,317		12,481		54,836
Total All Segments		109,157		77,896		187,053		72,592		114,461
Weighted Average Rental Rates(3)
Commercial Office	$	12.12	$	17.71	$	13.75	$	13.33	$	0.42			3.1	%
Commercial Medical		21.65		21.92		21.85		19.38		2.47			12.7	%
Commercial Industrial		0.00		0.00		0.00		0.00		0.00			0.00	%
Commercial Retail		5.43		3.19		4.20		13.80		(9.60	)		(69.6	)%
Total All Segments	$	10.60	$	11.33	$	10.90	$	14.21	$	(3.31	)		(23.3	)%

	Six Months Ended October 31, 2012
	New(1)		Renew(2)		Total		Expiring(3)		Net Change			Percentage Change
Gross Square Footage
Commercial Office		109,865		94,977		204,842		294,045		(89,203	)
Commercial Medical		10,612		11,456		22,068		19,371		2,697
Commercial Industrial		0		9,702		9,702		32,717		(23,015	)
Commercial Retail		39,277		39,530		78,807		35,773		43,034
Total All Segments		159,754		155,665		315,419		381,906		(66,487	)
Weighted Average Rental Rates(3)
Commercial Office	$	13.25	$	16.62	$	14.81	$	13.48	$	1.33			9.9	%
Commercial Medical		22.14		22.08		22.11		20.62		1.49			7.2	%
Commercial Industrial		0.00		5.84		5.84		3.88		1.96			50.5	%
Commercial Retail		7.04		4.02		5.52		10.92		(5.40	)		(49.5	)%
Total All Segments	$	12.32	$	13.15	$	12.73	$	12.78	$	(0.05	)		(0.4	)%

	Three Months Ended October 31, 2012						Six Months Ended October 31, 2012
	New(1)		Renew(2)		Total		New(1)		Renew(2)		Total
Weighted Average Term of New/Renewed Leased(4)
Commercial Office		4.9		5.3		5.1		4.4		3.9		4.1
Commercial Medical		6.2		5.3		6.0		6.2		5.3		5.7
Commercial Industrial		0.0		0.0		0.0		0.0		3.3		3.3
Commercial Retail		2.5		3.0		2.7		3.1		3.4		3.2
Total All Segments		4.8		4.9		4.9		4.5		4.1		4.3

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

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

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

(4) Term in years.

21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING COMMITMENTS

for the three and six months ended October 31, 2012

	2nd Quarter Fiscal 2013 Total						Year-To-Date Total
	New		Renew		Total Dollars		New		Renew		Total Dollars
Tenant Improvements
Commercial Office	$	437	$	471	$	908	$	926	$	592	$	1,518
Commercial Medical		66		99		165		439		135		574
Commercial Industrial		0		0		0		0		5		5
Commercial Retail		42		0		42		46		0		46
Subtotal	$	545	$	570	$	1,115	$	1,411	$	732	$	2,143
Tenant Improvements per square foot
Commercial Office	$	5.82	$	15.28	$	8.56	$	8.43	$	6.23	$	7.41
Commercial Medical		17.60		9.92		12.00		41.32		11.85		26.02
Commercial Industrial		0.00		0.00		0.00		0.00		0.52		0.52
Commercial Retail		1.41		0.00		0.63		1.16		0.00		0.58
All Segments	$	5.00	$	7.31	$	5.96	$	8.83	$	4.71	$	6.79
Leasing Costs
Commercial Office	$	306	$	392	$	698	$	570	$	500	$	1,070
Commercial Medical		54		41		95		102		45		147
Commercial Industrial		0		0		0		0		19		19
Commercial Retail		9		2		11		15		5		20
Subtotal	$	369	$	435	$	804	$	687	$	569	$	1,256
Leasing Costs per square foot
Commercial Office	$	4.06	$	12.74	$	6.58	$	5.18	$	5.26	$	5.22
Commercial Medical		14.49		4.07		6.90		9.66		3.91		6.68
Commercial Industrial		0.00		0.00		0.00		0.00		1.98		1.98
Commercial Retail		0.31		0.05		0.17		0.38		0.12		0.25
All Segments	$	3.38	$	5.58	$	4.30	$	4.30	$	3.65	$	3.98
Tenant Improvements and Leasing Costs
Commercial Office	$	743	$	863	$	1,606	$	1,496	$	1,092	$	2,588
Commercial Medical		119		140		259		541		180		721
Commercial Industrial		0		0		0		0		24		24
Commercial Retail		52		2		54		61		5		66
Total	$	914	$	1,005	$	1,919	$	2,098	$	1,301	$	3,399
Tenant Improvements and Leasing Costs per square foot
Commercial Office	$	9.88	$	28.02	$	15.15	$	13.62	$	11.49	$	12.63
Commercial Medical		32.10		13.98		18.90		50.98		15.76		32.70
Commercial Industrial		0.00		0.00		0.00		0.00		2.50		2.50
Commercial Retail		1.72		0.05		0.80		1.54		0.12		0.83
All Segments	$	8.38	$	12.90	$	10.26	$	13.13	$	8.36	$	10.78

22

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY

	Three Months Ended
	10/31/2012			07/31/2012			04/30/2012			01/31/2012			10/31/2011
Number of Units		9,934			9,876			8,894			8,654			8,618
Average Investment Per Unit
Stabilized	$	58,308		$	58,012		$	57,776		$	57,738		$	57,393
Non-Stabilized		85,580			83,113			83,758			78,203			66,638
	$	62,614		$	61,472		$	59,268		$	58,497		$	57,648
Average Scheduled Rent(1) per Unit
Stabilized	$	734		$	726		$	718		$	716		$	710
Non-Stabilized		967			889			908			866			1,014
	$	771		$	749		$	729		$	721		$	719
Total Receipts per Unit
Stabilized	$	733		$	716		$	709		$	705		$	701
Non-Stabilized		996			831			845			851			837
	$	774		$	732		$	717		$	710		$	705
Total Recurring Capital Expenditures per Unit(1)
Stabilized	$	193		$	209		$	157		$	155		$	215
Non-Stabilized		135			123			122			181			117
	$	184		$	196		$	155		$	156		$	211
Physical Occupancy%
Stabilized		94.8	%		93.7	%		94.2	%		93.9	%		95.2	%
Non-Stabilized		93.4	%		88.7	%		85.4	%		74.5	%		79.3	%
		94.6	%		93.0	%		93.7	%		93.2	%		94.7	%
Operating Expenses as a % of Scheduled Rent
Stabilized		41.3	%		44.8	%		46.4	%		45.8	%		47.0	%
Non-Stabilized		36.9	%		34.8	%		37.3	%		38.6	%		32.5	%
Total		40.4	%		43.1	%		45.8	%		45.5	%		46.5	%

(1) See Definitions on page 28.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of October 31, 2012

Tenant	Number of Properties	Average Remaining Lease Term in Months	% of Total Commercial Segments' Minimum Rents	Aggregate Rentable Square Feet	% of Aggregate Occupied Square Feet
Affiliates of Edgewood Vista	32	91	13.2%	1,450,585	13.6%
St. Luke's Hospital of Duluth, Inc.	6	39	3.5%	198,775	1.9%
Fairview Health Services	9	50	3.4%	238,703	2.2%
Applied Underwriters	3	52	2.2%	141,724	1.3%
HealthEast Care System	1	76	1.6%	114,316	1.1%
Nebraska Orthopedic Hospital	1	197	1.3%	61,758	0.6%
Affiliates of Siemens USA (NYSE: SI)	2	53	1.3%	112,848	1.1%
Arcadis Corporate Services, Inc.	1	45	1.2%	71,430	0.7%
Microsoft (NASDAQ: MSFT)	1	74	1.2%	122,040	1.1%
State of Idaho Department of Health and Welfare	2	64	1.1%	103,342	1.0%
Total/Weighted Average		68	30.0%	2,615,521	24.6%

(1) See Definitions on page 28.

24

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LEASE EXPIRATIONS

as of October 31, 2012

	(dollars in thousands except average rental rates)
Fiscal Year	Number of Leases		Rentable Square Feet(1)		% of Rentable Square Feet			Annualized Rent(2)		Average Rental Rate		% of Annualized Base Rent
Commercial Office
2013		35		247,413		6.3	%	$	3,257	$	13.16		5.7	%
2014		55		467,656		11.9	%		5,842		12.49		10.1	%
2015		74		515,135		13.1	%		7,535		14.63		13.1	%
2016		45		639,228		16.3	%		9,879		15.46		17.2	%
2017		44		827,259		21.0	%		14,008		16.93		24.3	%
2018 and thereafter		59		1,236,176		31.4	%		17,036		13.78		29.6	%
		312		3,932,867		100.0	%	$	57,557	$	14.63		100.0	%
Commercial Medical
2013		22		112,621		4.0	%	$	2,162	$	19.19		4.5	%
2014		24		395,597		14.2	%		6,841		17.29		14.3	%
2015		16		60,120		2.2	%		1,544		25.68		3.2	%
2016		24		175,113		6.3	%		3,596		20.54		7.5	%
2017		20		133,237		4.8	%		2,812		21.11		5.9	%
2018 and thereafter		91		1,907,925		68.5	%		30,878		16.18		64.6	%
		197		2,784,613		100.0	%	$	47,833	$	17.18		100.0	%
Commercial Industrial
2013		6		223,340		8.6	%	$	661	$	2.96		6.3	%
2014		10		321,629		12.3	%		1,179		3.67		11.3	%
2015		6		344,493		13.2	%		1,398		4.06		13.3	%
2016		9		689,564		26.5	%		2,986		4.33		28.5	%
2017		5		311,141		11.9	%		1,180		3.79		11.3	%
2018 and thereafter		7		716,095		27.5	%		3,071		4.29		29.3	%
		43		2,606,262		100.0	%	$	10,475	$	4.02		100.0	%
Commercial Retail
2013		22		146,930		12.4	%	$	871	$	5.93		8.7	%
2014		41		207,584		17.5	%		1,310		6.31		13.1	%
2015		38		291,463		24.5	%		2,241		7.69		22.3	%
2016		23		96,993		8.2	%		1,176		12.13		11.7	%
2017		23		103,114		8.7	%		1,105		10.72		11.0	%
2018 and thereafter		27		340,466		28.7	%		3,326		9.77		33.2	%
		174		1,186,550		100.0	%	$	10,029	$	8.45		100.0	%
Commercial Total
2013		85		730,304		6.9	%	$	6,951	$	9.52		5.5	%
2014		130		1,392,466		13.3	%		15,172		10.90		12.1	%
2015		134		1,211,211		11.5	%		12,718		10.50		10.1	%
2016		101		1,600,898		15.2	%		17,637		11.02		14.0	%
2017		92		1,374,751		13.1	%		19,105		13.90		15.2	%
2018 and thereafter		184		4,200,662		40.0	%		54,311		12.93		43.1	%
		726		10,510,292		100.0	%	$	125,894	$	11.98		100.0	%

(1) Rentable square footage does not include month-to-month leases.  As of October 31,2012 month-to-month leases accounted for 147,737 square feet.

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

25

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2013 ACQUISITION SUMMARY

as of October 31, 2012

(dollars in thousands)

Property	Location	Segment Type	Acquisition Date		Square Feet/Units			Leased Percentage At Acquisition			October 31, 2012 Leased Percentage			Acquisition Cost
Villa West	Topeka, KS	Multi-Family Residential	May 8, 2012			308			98.1	%		91.9	%	$	17,650
Colony	Lincoln, NE	Multi-Family Residential	June 4, 2012			232			98.3	%		97.4	%		17,500
Lakeside Village	Lincoln, NE	Multi-Family Residential	June 4, 2012			208			86.5	%		85.6	%		17,250
Quarry Ridge II(1)	Rochester, MN	Multi-Family Residential	June 29, 2012			159			33.3	%		98.7	%		4,591
Williston Garden Buildings 3 and 4(2)	Williston, ND	Multi-Family Residential	July 31, 2012			73			98.6	%		97.9	%		6.886
University Commons	Williston, ND	Unimproved Land	August 1, 2012			n/	a		n/	a		n/	a		823
Cypress Court	St. Cloud, MN	Unimproved Land	August 10, 2012			n/	a		n/	a		n/	a		447
The Ponds at Heritage Place	Sartell, MN	Multi-Family Residential	October 10, 2012			58			91.4	%		91.4	%		5,020
				Total Square Feet		0								$	70,167
				Total Units		1,038

(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.

26

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2013 DEVELOPMENT IN PROGESS SUMMARY

as of October 31, 2012

(dollars in thousands)

Property and Location	Total Rentable Square Feet or # of Units	Percentage Leased or Committed			Anticipated Total Cost		Cost to Date		Anticipated Construction Completion
Spring Wind - Laramie, WY	29 assisted living units and 16 memory care units		100	%		3,800		3,445	3rd Quarter Fiscal 2013
Industrial-Office Build-to-Suit - Minot, ND	28,000 sf. commercial industrial building		100	%		6,033		5,484	3rd Quarter Fiscal 2013
Jamestown Medical Office Building -Jamestown, ND(1)	45,000 square foot medical office building		99.5	%		9,200		5,418	3rd Quarter Fiscal 2013
Multi-Family Conversion - Minot, ND	Convert 15,000 sf. commercial office to 20 multi-family residential units		0	%		3,000		1,658	4th Quarter Fiscal 2013
Branch Bank Building - Minot, ND	3,700 square foot commercial office building		100	%		1,700		601	4th Quarter Fiscal 2013
River Ridge - Bismarck, ND	146 unit apartment building		0	%		24,200		3,387	2rd Quarter Fiscal 2014
Cypress Court - St. Cloud, MN(2)	132 unit apartment building		0	%		14,300		3,225	4th Quarter Fiscal 2014
					$	62,233	$	23,218

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

(2) The Company is a 79% partner in the joint venture entity constructing this property; the anticipated total cost amount given is the total cost to the joint venture entity

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Definitions

October 31, 2012

Adjusted funds from operations (AFFO) is calculated by subtracting from Funds from operations (FFO) (1) tenant improvements and leasing commissions and recurring capital expenditures that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization. We may also subtract from FFO certain unusual non-recurring items that do not produce cash available for distribution to shareholders. AFFO is included herein because we consider it to be a measure of a REIT's ability to incur and service debt and to pay distributions to its shareholders. AFFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.

Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.

Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.

EBITDAis earnings before interest, taxes, depreciation and amortization. We consider EBITDA to be an appropriate supplemental performance measure because it eliminates depreciation, interest and the gain/loss from property dispositions, which permits investors to view income from operations without the effect of non-cash depreciation or the cost of debt; however, EBIDTA as we calculate it has not been adjusted for the effect of nonrecurring events such as asset impairment and gain/loss on involuntary conversion.  EBITDA is a non-GAAP measure. EBITDA as calculated by us is not comparable to EBITDA reported by other REITs that do not define EBITDA exactly as we do.

Funds from operations (FFO) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as "net income (computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis." In addition, in October 2011 NAREIT clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure.  We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time.  Since real estate values instead historically rise or fall with market conditions, we believe that FFO provides investors and management with a more accurate indication of our financial and operating results.

Net Operating Income is total real estate revenues less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance and property management expenses).

Payout ratio (FFO per share and unit basis) - The ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual FFO per share and unit.

Ratio of earnings to fixed charges - The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Fixed charges consist of mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest.

Ratio of earnings to combined fixed charges and preferred distributions - The ratio of earnings to combined fixed charges and preferred distributions is computed by dividing earnings by combined fixed charges and preferred distributions. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Combined fixed charges and preferred distributions consist of fixed charges (mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest) and preferred distributions.

Recurring capital expenditures are expenditures (excluding capital expenditures recoverable from tenants) made on a regular or recurring basis to maintain a property's competitive position within its market, generally with a depreciable life of 5 to 12 years, but excluding (a) capital expenditures made in the year of acquisition and the following two years (i.e., excluding capital expenditures on non-stabilized properties), (b) improvements associated with the expansion or re-development of a building, (c) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class A office) or (d) capital improvements that represent the addition of something new to a property, rather than the replacement of an existing item.

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

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

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