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 common shares that would result in a 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 consolidated financial statements for the fiscal years ended April 30, 2013, 2012 and 2011:

	For Years Ended April 30,
	(in thousands, except per share data)
	2013		2012		2011
NUMERATOR
Income from continuing operations – Investors Real Estate Trust	$	19,790	$	8,263	$	4,101
Income (loss) from discontinued operations – Investors Real Estate Trust		5,740		(51)		15,981
Net income attributable to Investors Real Estate Trust		25,530		8,212		20,082
Dividends to preferred shareholders		(9,229)		(2,372)		(2,372)
Numerator for basic earnings per share – net income available to common shareholders		16,301		5,840		17,710
Noncontrolling interests – Operating Partnership		3,633		1,359		4,449
Numerator for diluted earnings per share	$	19,934	$	7,199	$	22,159
DENOMINATOR
Denominator for basic earnings per share weighted average shares		93,344		83,557		78,628
Effect of convertible operating partnership units		21,191		19,875		20,154
Denominator for diluted earnings per share		114,535		103,432		98,782
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted	$	.11	$	.07	$	.02
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.06		.00		.20
NET INCOME PER COMMON SHARE – BASIC & DILUTED	$	.17	$	.07	$	.22