Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. The Company has no outstanding options, warrants, convertible stock or other contractual obligations requiring issuance of additional shares that would result in dilution of earnings. Units can be exchanged for shares on a one-for-one basis after a minimum holding period of one year. The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three and nine months ended January 31, 2014 and 2013:

	(in thousands, except per share data)
	Three Months Ended January 31				Nine Months Ended January 31
	2014		2013		2014		2013
NUMERATOR
Income from continuing operations – Investors Real Estate Trust	$	3,117	$	4,050	$	10,034	$	11,055
Income from discontinued operations – Investors Real Estate Trust		386		1,274		5,334		4,460
Net income attributable to Investors Real Estate Trust		3,503		5,324		15,368		15,515
Dividends to preferred shareholders		(2,879)		(2,879)		(8,636)		(6,350)
Numerator for basic earnings per share – net income available to common shareholders		624		2,445		6,732		9,165
Noncontrolling interests – Operating Partnership		130		556		1,406		2,097
Numerator for diluted earnings per share	$	754	$	3,001	$	8,138	$	11,262
DENOMINATOR
Denominator for basic earnings per share weighted average shares		106,208		93,794		104,472		92,260
Effect of convertible operating partnership units		21,819		21,413		21,830		21,098
Denominator for diluted earnings per share		128,027		115,207		126,302		113,358
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted	$	.00	$	.01	$	.01	$	.05
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.00		.02		.05		.05
NET INCOME PER COMMON SHARE – BASIC & DILUTED	$	.00	$	.03	$	.06	$	.10