NOTE 11 • SUBSEQUENT EVENTS

Common and Preferred Share Distributions. On December 5, 2013, the Company's Board of Trustees declared a regular quarterly distribution of 13.00 cents per share and unit on the Company's common shares of beneficial interest and the limited partnership units of IRET Properties, payable January 15, 2014, to shareholders and unitholders of record on January 2, 2014. Also on December 5, 2013, the Company's Board of Trustees declared a distribution of 51.56 cents per share on the Company's Series A preferred shares of beneficial interest, payable December 31, 2013 to Series A preferred shareholders of record on December 16, 2013, and declared a distribution of 49.68 cents per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2013 to Series B preferred shareholders of record on December 16, 2013.

Pending Acquisitions. Subsequent to the end of the second quarter of fiscal year 2014, the Company signed purchase agreements to acquire the following properties:

·	a 39,222-square foot commercial healthcare property in Fruitland, Idaho for a purchase price of $7.1 million, to be paid in cash;

·	a parcel of vacant land in Fruitland, Idaho for a purchase price of $335,000, to be paid in cash;

·	an approximately 35.0 acre parcel of vacant land in Bismarck, North Dakota for a purchase price of $4.3 million, to be paid in cash;

·	an approximately 10-12 acre parcel of vacant land in Brooklyn Park, Minnesota for a purchase price of $5.28 per square foot, to be paid in cash;

·	an 11-building, 152-unit multi-family residential property in Rapid City, South Dakota on approximately 10.0 acres of land, for a purchase price of $15.0 million, of which $5.0 million is to be paid in cash with assumed debt of $10.0 million;

·	a 4-building, 52-unit multi-family residential property in Rapid City, South Dakota on approximately 2.0 acres of land, for a purchase price of $3.3 million, of which approximately $997,000 is to be paid in cash with assumed debt of $2.3 million; and

·	an approximately 4.7 acre parcel of vacant land in Isanti, Minnesota for a purchase price of approximately $50,000, to be paid in cash.

These pending acquisitions are subject to various closing conditions and contingencies, and no assurances can be given that any of these transactions will be completed on the terms currently proposed, or at all.

Pending Dispositions. Subsequent to the end of the second quarter of fiscal year 2014, the Company signed an agreement to sell a commercial industrial property in Minnetonka, Minnesota for a sale price of $3.8 million. This pending disposition is subject to various closing conditions and contingencies, and no assurances can be given that this transaction will be completed on the terms currently expected, or at all.

Line of Credit Renewal. Subsequent to the end of the second quarter of fiscal year 2014, on November 20, 2013, the Company's Operating Partnership entered into an Amended and Restated Loan Agreement (the "Loan Agreement") with First International Bank & Trust as Lender, pursuant to which Lender has agreed to provide a revolving credit facility with a commitment amount at the time of close of $72.0 million. At the discretion of the Lender, the total commitment available under the credit facility may be increased to $75.0 million. First International Bank & Trust is owned by Stephen L. Stenehjem, a Trustee of the Company, and by members of his family. The Loan Agreement amends and restates the Borrower's previous secured line of credit with the Lender and participant banks, provided pursuant to a Loan Agreement dated August 12, 2010 between Borrower and Lender. The facility is secured by mortgages on fourteen properties owned by the Operating Partnership and its subsidiaries. The initial term of the facility is three years, with a maturity of December 1, 2016, with interest-only payments due monthly based on the total amount of advances outstanding. The facility may be prepaid at par at any time. The Operating Partnership may add additional eligible real estate properties as collateral for the facility if it chooses to remove an existing property from the mortgage collateral, and may also remove property as collateral for the facility without substituting additional collateral if the remaining property in the collateral pool satisfies the minimum collateral requirements in the loan documents. Advances under the facility may not exceed 60% of the value of the properties provided as security. The interest rate on borrowings under the facility is the Wall Street Journal Prime Rate plus 1.25%, with a floor of 4.75% and a cap of 8.65% during the initial term of the facility. The facility includes covenants and restrictions regarding minimum debt-service ratios to be maintained in the aggregate and individually on properties in the collateral pool, and the Operating Partnership is also required to maintain minimum depository account(s) totaling $6.0 million with the Lender, of which $1.5 million is to be held in a non-interest bearing account.

Chateau Apartments Fire. On December 5, 2013, 15-unit and 57-unit buildings at IRET's Chateau Apartments property were destroyed by fire. Both buildings were under construction and were unoccupied. The 15-unit building had been anticipated to open in February of 2014, and the 57-unit building was anticipated to open in the summer of 2014. A third, occupied 32-unit building on the west side of the Chateau Apartments complex did not suffer any fire damage. No decisions have been made at this time concerning the reconstruction of these two buildings.