Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER AND YEAR-TO-DATE ENDED JANUARY 31, 2014

Minot, ND – March 12, 2014 – Investors Real Estate Trust (NYSE: IRET) reported financial and operating results today for the quarter and year-to-date ended January 31, 2014.

During the three month period ended January 31, 2014, 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 January 31, 2014 compared to the same period of the prior fiscal year. Net income available to common shareholders decreased from the year-earlier period.

For the three month period ended January 31, 2014, as compared to the same period of the prior fiscal year:

·	Revenues increased to $67.6 million from $63.1 million.

Total expenses increased by approximately $7.6 million, or 17.4%, in the three months ended January 31, 2014 compared to the three months ended January 31, 2013, from $43.6 million to $51.1 million. This increase was primarily due to impairment expense of $4.8 million recognized during the third quarter of fiscal year 2014.

·	FFO increased to $22.7 million on approximately 128,027,000 weighted average shares and units outstanding, from $18.5 million on approximately 115,207,000 weighted average shares and units outstanding ($.17 per share and unit compared to $.16 per share and unit).

·	Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $624,000 compared to $2.4 million in the same period of the prior fiscal year.

During the nine month period ended January 31, 2014, IRET's revenues increased from the year-earlier period. FFO overall increased and on a per share and unit basis decreased for the nine month period ended January 31, 2014 compared to the same period of the prior fiscal year. Net income available to common shareholders decreased from the year-earlier period.

For the nine month period ended January 31, 2014, as compared to the same period of the prior fiscal year:

·	Revenues increased to $198.5 million from $183.9 million.

·	Total expenses increased by approximately $19.4 million, or 15.2%, in the nine months ended January 31, 2014 compared to the nine months ended January 31, 2013, from $127.5 million to $146.9 million.

·	FFO increased to $62.4 million on approximately 126,302,000 weighted average shares and units outstanding, from $56.8 million on approximately 113,358,000 weighted average shares and units outstanding ($.49 per share and unit compared to $.50 per share and unit).

·	Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $6.7 million compared to $9.2 million in the same period of the prior fiscal year.

Significant Events and Transactions during the third quarter of fiscal year 2014:

·	The previously-announced resignations from the Company's Board of Trustees of W. David Scott and John Reed, and the election of Terrance P. Maxwell to the Board of Trustees.

The substantial completion of two development projects placed in service during the quarter: the 132-unit Cypress Court multi-family residential property in St. Cloud, Minnesota, owned by a joint venture entity in which the Company has an approximately 86% interest, and the 146-unit River Ridge multi-family residential property in Bismarck, North Dakota.

·	The sale of two multi-family residential properties, three commercial industrial properties and two commercial retail properties for a total sales price of $11.7 million.

The entrance into an Amended and Restated Loan Agreement with First International Bank & Trust, a North Dakota state bank, as lender, under which First International has agreed to provide a revolving credit facility with a commitment amount at the time of close of $72 million. At the discretion of First International, the total commitment available under the credit facility may be increased to $75 million. The Loan Agreement amends and restates IRET Properties' previous secured line of credit with First International and participant banks.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "IRET continued to make progress on its development projects during the third quarter of fiscal year 2014, with our 146-unit River Ridge apartment property in Bismarck, North Dakota and the 132-unit Cypress Court apartments in St. Cloud, Minnesota, placed in service. Both projects experienced strong leasing demand on opening. We also continued with our planned dispositions of non-core properties, closing in the third quarter on the sale of two multi-family residential properties, three industrial properties and two retail properties for a total sales price of $11.7 million. Subsequent to the end of the quarter, we completed a strategic planning process, presenting to our Board of Trustees a strategic plan which we expect to drive change over the next several years. Under this strategic plan, we intend to continue our focus on identifying for disposition properties whose location, age, or need for significant tenant improvements or capital expenditures suggest that our investment may be better deployed elsewhere. We also plan to direct new investments primarily toward our healthcare (in particular, senior housing) and multi-family residential segments. We believe this strategic plan will help us create a strong foundation for growth in the long term."

______________________________

1 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. See table below for a reconciliation of Net Income to FFO.

Operating Results

Net Operating Income (NOI)² from all properties increased by approximately $5.5 million or 14.5%, during the three month period ended January 31, 2014, compared to the same period one year ago. Non-stabilized properties accounted for $2.8 million of the increase while stabilized properties³ increased by $2.6 million.

Third quarter NOI stabilized results were positively impacted by sustained high occupancy in our multi-family residential segment, which allowed for selective increases in rental rates, and by a real estate tax credit in North Dakota. As compared to prior quarters, occupancy increased in the commercial office and commercial healthcare segments, and percentage rents increased in our commercial healthcare segment. Non-stabilized comparative NOI results were impacted in the third quarter by a gain on involuntary conversion from a fire loss of $1.5 million, with no gain on involuntary conversion in the same period of the prior fiscal year.

NOI from all properties increased by $9.0 million, or 8.0%, during the nine month period ended January 31, 2014, compared to the same period one year ago. Non-stabilized properties accounted for $5.0 million of the increase while stabilized properties added $4.1 million.

Even with the exclusion of the $2.5 million positive impact on NOI due to the gain on involuntary conversion recorded in the first and third quarters of fiscal year 2014, our non-stabilized portfolio is providing positive NOI growth, primarily driven by development projects being placed in service in the nine months ended January 31, 2014. These developments are continuing to achieve strong lease up on delivery to the market. Stabilized NOI increased as compared to the prior periods, primarily due to continued strength in occupancy in our multifamily segment, which allows for rental rate increases, and to increased occupancy and overall improved operating results in our commercial office and commercial healthcare segments. Higher occupancy in these segments provides for greater reimbursement of operating expenses. Detail on NOI by segment is provided in the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2014.

Physical occupancy as of January 31, 2014 compared to January 31, 2013 increased in two of our five reportable segments (commercial office and commercial healthcare), decreasing in our multi-family residential, commercial industrial and commercial retail segments, on a stabilized basis and an all-property basis. The decrease of 7.6% in physical occupancy in our commercial industrial segment was due to the expiration of a single lease for 147,600 square feet at our Eagan, Minnesota property in the fourth quarter of fiscal year 2013. At January 31, 2014 our stabilized industrial commercial segment was comprised of six properties, five of which were 100% occupied and the Eagan, Minnesota property which was approximately 15% occupied. Physical occupancy represents the actual number of units or square footage leased divided by the total number of units or square footage at the end of the period.

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

	Stabilized Properties^(a)		All Properties
	As of January 31,		As of January 31,
Segments	Fiscal 2014	Fiscal 2013	Fiscal 2014	Fiscal 2013
Multi-Family Residential	93.5%	94.5%	91.8%	93.5%
Commercial Office	80.4%	78.9%	80.4%	78.9%
Commercial Healthcare	96.4%	94.9%	96.5%	94.8%
Commercial Industrial	85.6%	93.2%	86.2%	94.4%
Commercial Retail	86.9%	88.3%	86.9%	88.3%

a.	Non-stabilized properties consist of the following properties (re-development and in-service development properties are listed in bold type):
FY2014 -	Multi-Family Residential -	Alps Park, Rapid City, SD; Chateau I, Minot, ND; Colonial Villa, Burnsville, MN; Colony, Lincoln, NE; Cypress Court, St. Cloud, MN; First Avenue, Minot, ND; Lakeside Village, Lincoln, NE; Landing at Southgate, Minot, ND; Pinecone Villas, Sartell, MN; Ponds at Heritage Place, Sartell, MN; Quarry Ridge II, Rochester, MN; River Ridge, Bismarck, ND; Southpoint, Grand Forks, ND; Villa West, Topeka, KS; Whispering Ridge, Omaha, NE and Williston Garden, Williston, ND. Total number of units, 2,315.
	Commercial Healthcare -	Jamestown Medical Office Building, Jamestown, ND and Legends at Heritage Place, Sartell, MN. Total rentable square footage, 143,396.
	Commercial Industrial -	Minot IPS, Minot, ND and Stone Container, Roseville, MN. Total rentable square footage, 45,448.
	Commercial Retail -	Arrowhead First International Bank, Minot, ND. Total rentable square footage, 3,702.

FY2013 -	Multi-Family Residential -	Chateau I, Minot, ND; Colonial Villa, Burnsville, MN; Colony, Lincoln, NE; Lakeside Village, Lincoln, NE; Ponds at Heritage, Sartell, MN; Quarry Ridge II, Rochester, MN; Villa West, Topeka, KS and Williston Garden, Williston, ND. Total number of units, 1,382.
	Commercial Healthcare -	Jamestown Medical Office Building, Jamestown, ND. Total rentable square footage, 45,222.
	Commercial Industrial -	Minot IPS, Minot, ND and Stone Container, Roseville, MN. Total rentable square footage, 256,639.

______________________________

We measure the performance of our segments based on NOI, which we define as total real estate revenues and gain on involuntary conversion less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property 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 does not represent cash generated by operating activities in accordance with GAAP and 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.

Stabilized properties are properties owned or in service for the entirety of the periods being compared, and, in the case of development or re-development properties, which have achieved a target level of occupancy of 90% for multi-family residential properties and 85% for commercial office, healthcare, industrial and retail properties.

Acquisitions, Development Projects Place in Service and Dispositions

During the third quarter of fiscal year 2014, the Company closed on its acquisition of:

·	an approximately 3.4-acre parcel of vacant land in Fruitland, Idaho, acquired for possible future development, for a purchase price of $335,000, paid in cash.

During the third quarter of fiscal year 2014, the Company placed in service the 132-unit Cypress Court multi-family residential property in St. Cloud, Minnesota, owned by a joint venture entity in which the Company has an approximately 86% interest and the 146-unit River Ridge multi-family residential property in Bismarck, North Dakota. During the third quarter of fiscal year 2014, the Company sold two multi-family residential properties, three commercial industrial properties and two commercial retail properties for a total sales price of $11.7 million.

Shareholder Equity, Distributions and Capital Structure

As of January 31, 2014, IRET had a total capitalization of $2.3 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 January 15, 2014, 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 171^st consecutive distribution. IRET also paid, on December 31, 2013, a quarterly distribution of $0.5156 per share on its Series A preferred shares and a quarterly distribution of $0.4968 per share on its Series B preferred shares.

Distribution Declared. Subsequent to the end of the third quarter of fiscal year 2014, on March 4, 2014, 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 April 1, 2014 to common shareholders and unitholders of record on March 17, 2014. Also on March 4, 2014, 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 March 31, 2014 to Series A preferred shareholders of record on March 17, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable March 31, 2014 to Series B preferred shareholders of record on March 17, 2014.

Conference Call Information

The Conference Call for3rd Quarter Earnings is scheduled for Thursday, March 13, 2014 at 9:00 A.M. Central Time. The call will be limited to one hour, including questions and answers. Conference call access information is as follows:

USA Toll Free Number: 1-888-317-6016

International Toll Free Number: 1-412-317-6016

Canada Toll Free Number: 1-855-669-9657

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 92 multi-family residential properties with 10,725 apartment units; and 65 commercial office properties, 66 commercial healthcare properties (including senior housing), 8 commercial industrial properties and 26 commercial retail properties with a total of approximately 10.4 million square feet of leasable space. IRET common shares, Series A preferred shares and Series B preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET, IRETPR and IRETPRB, respectively). 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 2013 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)
	January 31, 2014		April 30, 2013
ASSETS
Real estate investments
Property owned	$	2,042,290	$	2,032,970
Less accumulated depreciation		(439,233)		(420,421)
		1,603,057		1,612,549
Development in progress		89,086		46,782
Unimproved land		21,498		21,503
Total real estate investments		1,713,641		1,680,834
Cash and cash equivalents		53,494		94,133
Other investments		643		639
Receivable arising from straight-lining of rents, net of allowance of $783 and $830, respectively		27,026		26,354
Accounts receivable, net of allowance of $260 and $563, respectively		15,540		4,534
Real estate deposits		3,502		196
Prepaid and other assets		8,197		5,124
Intangible assets, net of accumulated amortization of $22,703 and $27,708, respectively		34,008		40,457
Tax, insurance, and other escrow		24,550		12,569
Property and equipment, net of accumulated depreciation of $1,938 and $1,673, respectively		1,719		1,221
Goodwill		1,100		1,106
Deferred charges and leasing costs, net of accumulated amortization of $20,051 and $18,714, respectively		21,138		22,387
TOTAL ASSETS	$	1,904,558	$	1,889,554

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	54,337	$	50,797
Revolving line of credit		22,500		10,000
Mortgages payable		1,008,524		1,049,206
Other		47,767		18,170
TOTAL LIABILITIES		1,133,128		1,128,173
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 January 31, 2014 and April 30, 2013, 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 shares issued and outstanding at January 31, 2014 and April 30, 2013, aggregate liquidation preference of $115,000,000)		111,357		111,357
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 106,937,304 shares issued and outstanding at January 31, 2014, and 101,487,976 shares issued and outstanding at April 30, 2013)		829,816		784,454
Accumulated distributions in excess of net income		(344,294)		(310,341)
Total Investors Real Estate Trust shareholders' equity		624,196		612,787
Noncontrolling interests – Operating Partnership (21,799,285 units at January 31, 2014 and 21,635,127 units at April 30, 2013)		117,803		122,539
Noncontrolling interests – consolidated real estate entities		29,431		26,055
Total equity		771,430		761,381
TOTAL LIABILITIES AND EQUITY	$	1,904,558	$	1,889,554

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

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
REVENUE
Real estate rentals	$	56,156	$	51,973	$	164,256	$	152,042
Tenant reimbursement		11,473		11,107		34,243		31,832
TOTAL REVENUE		67,629		63,080		198,499		183,874
EXPENSES
Depreciation/amortization related to real estate investments		16,733		14,754		51,156		44,273
Utilities		5,042		4,655		15,173		13,568
Maintenance		7,828		7,454		22,719		20,895
Real estate taxes		7,679		8,190		24,415		23,782
Insurance		1,190		1,025		3,904		2,798
Property management expenses		4,064		3,824		12,383		11,293
Other property expenses		124		200		304		766
Administrative expenses		2,479		2,092		7,313		5,970
Advisory and trustee services		183		153		629		432
Other expenses		273		464		1,630		1,496
Amortization related to non-real estate investments		756		739		2,500		2,232
Impairment of real estate investments		4,798		0		4,798		0
TOTAL EXPENSES		51,149		43,550		146,924		127,505
Gain on involuntary conversion		1,514		0		2,480		2,263
Operating income		17,994		19,530		54,055		58,632
Interest expense		(15,130)		(15,197)		(44,525)		(46,554)
Interest income		573		70		1,346		176
Other income		167		185		256		424
Income from continuing operations		3,604		4,588		11,132		12,678
Income from discontinued operations		465		1,565		6,450		5,481
NET INCOME		4,069		6,153		17,582		18,159
Net income attributable to noncontrolling interests – Operating Partnership		(130)		(556)		(1,406)		(2,097)
Net income attributable to noncontrolling interests – consolidated real estate entities		(436)		(273)		(808)		(547)
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)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	624	$	2,445	$	6,732	$	9,165
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 AND DILUTED	$	.00	$	.03	$	.06	$	.10
DIVIDENDS PER COMMON SHARE	$	.1300	$	.1300	$	.3900	$	.3900

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three and nine months ended January 31, 2014 and 2013

Three Months Ended January 31,	(in thousands, except per share amounts)
Three Months Ended January 31,	2014					2013
	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	$	3,503				$	5,324
Less dividends to preferred shareholders		(2,879)					(2,879)
Net income available to common shareholders		624	106,208	$	0.00		2,445	93,794	$	0.03
Adjustments:
Noncontrolling interest – Operating Partnership		130	21,819				556	21,413
Depreciation and amortization⁽¹⁾		17,546					16,263
Impairment of real estate investments		4,798					0
Gain on depreciable property sales		(358)					(772)
Funds from operations applicable to common shares and Units	$	22,740	128,027	$	0.17	$	18,492	115,207	$	0.16

Nine Months Ended January 31,	(in thousands, except per share amounts)
Nine Months Ended January 31,	2014					2013
	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	$	15,368				$	15,515
Less dividends to preferred shareholders		(8,636)					(6,350)
Net income available to common shareholders		6,732	104,472	$	0.06		9,165	92,260	$	0.10
Adjustments:
Noncontrolling interest – Operating Partnership		1,406	21,830				2,097	21,098
Depreciation and amortization⁽⁴⁾		54,591					48,971
Impairment of real estate investments		6,658					0
Gain on depreciable property sales		(6,999)					(3,452)
Funds from operations applicable to common shares and Units	$	62,388	126,302	$	0.49	$	56,781	113,358	$	0.50

(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 $17,489 and $15,493, and depreciation/amortization from Discontinued Operations of $77 and $807, less corporate-related depreciation and amortization on office equipment and other assets of $20 and $37, for the three months ended January 31, 2014 and 2013, 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 $53,656 and $46,505, and depreciation/amortization from Discontinued Operations of $1,010 and $2,637, less corporate-related depreciation and amortization on office equipment and other assets of $75 and $171 for the nine months ended January 31, 2014 and 2013, respectively.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and nine months ended January 31, 2014 and 2013

Three Months Ended January 31, 2014	(in thousands)
Three Months Ended January 31, 2014	Multi-Family Residential		Commercial- Office		Commercial- Healthcare		Commercial- Industrial		Commercial- Retail		Total

Real estate revenue	$	25,848	$	19,394	$	17,242	$	1,664	$	3,481	$	67,629
Real estate expenses		10,998		9,037		4,120		493		1,279		25,927
Gain on involuntary conversion		1,514		0		0		0		0		1,514
Net operating income	$	16,364	$	10,357	$	13,122	$	1,171	$	2,202		43,216
Depreciation/amortization												(17,489)
Administrative, advisory and trustee services												(2,662)
Impairment of real estate investments												(4,798)
Other expenses												(273)
Interest expense												(15,130)
Interest and other income												740
Income from continuing operations												3,604
Income from discontinued operations												465
Net income											$	4,069

Three Months Ended January 31, 2013	(in thousands)
Three Months Ended January 31, 2013	Multi-Family Residential		Commercial- Office		Commercial- Healthcare		Commercial- Industrial		Commercial- Retail		Total

Real estate revenue	$	22,859	$	19,046	$	15,952	$	1,738	$	3,485	$	63,080
Real estate expenses		10,208		9,270		4,128		492		1,250		25,348
Net operating income	$	12,651	$	9,776	$	11,824	$	1,246	$	2,235		37,732
Depreciation/amortization												(15,493)
Administrative, advisory and trustee services												(2,245)
Other expenses												(464)
Interest expense												(15,197)
Interest and other income												255
Income from continuing operations												4,588
Income from discontinued operations												1,565
Net income											$	6,153

Nine Months Ended January 31, 2014	(in thousands)
Nine Months Ended January 31, 2014	Multi-Family Residential		Commercial- Office		Commercial- Healthcare		Commercial- Industrial		Commercial- Retail		Total

Real estate revenue	$	75,659	$	58,075	$	49,340	$	5,273	$	10,152	$	198,499
Real estate expenses		33,006		28,315		12,534		1,447		3,596		78,898
Gain on involuntary conversion		2,480		0		0		0		0		2,480
Net operating income	$	45,133	$	29,760	$	36,806	$	3,826	$	6,556		122,081
Depreciation/amortization												(53,656)
Administrative, advisory and trustee services												(7,942)
Impairment of real estate investments												(4,798)
Other expenses												(1,630)
Interest expense												(44,525)
Interest and other income												1,602
Income from continuing operations												11,132
Income from discontinued operations												6,450
Net income											$	17,582

Nine Months Ended January 31, 2013	(in thousands)
Nine Months Ended January 31, 2013	Multi-Family Residential		Commercial- Office		Commercial- Healthcare		Commercial- Industrial		Commercial- Retail		Total

Real estate revenue	$	66,758	$	56,214	$	46,286	$	4,704	$	9,912	$	183,874
Real estate expenses		28,284		27,591		12,387		1,350		3,490		73,102
Gain on involuntary conversion		2,263		0		0		0		0		2,263
Net operating income	$	40,737	$	28,623	$	33,899	$	3,354	$	6,422		113,035
Depreciation/amortization												(46,505)
Administrative, advisory and trustee services												(6,402)
Other expenses												(1,496)
Interest expense												(46,554)
Interest and other income												600
Income from continuing operations												12,678
Income from discontinued operations												5,481
Net income											$	18,159

Exhibit 99.2

Third Quarter Fiscal 2014

Supplemental Operating and Financial Data

for the Quarter Ended January 31, 2014


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

January 31, 2014

	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
Multi-Family Residential Summary	21
Commercial Leasing Summary	22-25
10 Largest Commercial Tenants - Based on Annualized Base Rent	26
Commercial Lease Expirations	27

Growth and Strategy
Acquisition Summary	28
Development Summary	29

Definitions	30

Table of Contents

Company Background and Highlights

Third Quarter Fiscal 2014

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 healthcare, including senior housing; commercial industrial and commercial retail segments.

During the third quarter of fiscal year 2014, the Company closed on its acquisition of:

·	an approximately 3.4-acre parcel of vacant land in Fruitland, Idaho, acquired for possible future development, for a purchase price of $335,000, paid in cash.

During the third quarter of fiscal year 2014, the Company's commercial office segment, mostly concentrated in Minnesota, continued to be pressured by a number of adverse macro conditions, including weak job and wage growth. Although overall employment levels in the office sector remain slightly above pre-recession levels in most of the Company's markets, businesses appear to be maintaining their goal of increasing the density of their work spaces by placing more employees in less total square footage, and downsizing upon lease renewals. As a result, even though the Company has experienced some modest growth in occupancy levels during the third quarter of fiscal year 2014 compared to the third quarter of fiscal year 2013, the Company continues to expect a slow and uneven recovery in its office segment.

Continued high occupancy in the Company's multi-family residential portfolio provided the ability to raise rents during the third quarter of fiscal year 2014, and real estate revenue from stabilized properties in the multi-family residential segment increased in the three months ended January 31, 2014 compared to the same period in the prior fiscal year. Occupancy levels decreased slightly on a stabilized and an all-property basis compared to the same period of the prior fiscal year. The 132-unit Cypress Court apartments in St. Cloud, Minnesota (owned by a joint venture entity in which the Company has an approximately 86% interest) and the Company's 146-unit River Ridge apartment property in Bismarck, North Dakota, were placed in service during the quarter, with both projects experiencing strong demand; Cypress Court was 66.7% occupied and River Ridge was 81.5% occupied as of January 31, 2014. However, the Company continues to observe considerable multi-family residential development activity in its markets, and as this new construction is completed and leased, the Company will experience increased competition for tenants.

The Company's senior housing assets continue to benefit from a recovery in the housing market, as occupancy trends are closely aligned with the ability of seniors to sell their homes in anticipation of moving to a senior care facility. Results in the Company's healthcare segment remain stable with modest increases in both occupancy and rents.

Subsequent to the end of the third quarter of fiscal year 2014, Company management presented to the Company's Board of Trustees a strategic plan which the Company expects will drive changes in three main areas. First, the Company plans to continue its focus on identifying for disposition properties whose location, age, or need for significant tenant improvements or capital expenditures suggest that the Company's investment may be better deployed elsewhere. In particular, over the next twelve to eighteen months, the Company expects to identify properties in its commercial segments as candidates for disposition. The Company expects to focus any future commercial office property acquisitions in the Minneapolis/St. Paul market. Second, the Company plans to direct new investments primarily toward its healthcare (in particular, senior housing) and multi-family residential segments, which it believes will provide the best opportunities for growth. Within its healthcare segment, the Company also plans to target on-campus medical office properties in larger markets in the Great Plains region, and to pursue relationship-driven build-to-suit opportunities. Within the multi-family residential segment, the Company plans to target tertiary markets within the Great Plains region that offer the Company operating efficiencies and a critical mass for brand presence. Third, management plans to further de-emphasize its retail segment, with the goal of identifying for sale assets within this portfolio by fiscal year 2016. In addition to these three major areas of focus, the Company will continue to work to enhance portfolio operational efficiencies. The Company believes that this strategic plan will help it create a strong foundation for growth in the long term.

In the third quarter of fiscal year 2014, IRET paid its 171^st consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on January 15, 2014. Subsequent to the end of the third quarter of fiscal year 2014, on March 4, 2014, 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 April 1, 2014 to common shareholders and unitholders of record on March 17, 2014. Also on March 4, 2014, 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 March 31, 2014 to Series A preferred shareholders of record on March 17, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable March 31, 2014 to Series B preferred shareholders of record on March 17, 2014.

As of January 31, 2014, IRET owns a diversified portfolio of 257 properties consisting of 92 multi-family residential properties, 65 commercial office properties, 66 commercial healthcare properties (including senior housing), 8 commercial industrial properties and 26 commercial retail properties. IRET's common shares are publicly traded on the New York Stock Exchange (NYSE: IRET).

Table of Contents

Company Snapshot

(as of January 31, 2014)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential, Commercial Office, Commercial Healthcare, Commercial Industrial, Commercial Retail
Total Properties	257
Total Square Feet
(commercial properties)	10.4 million
Total Units
(multi-family residential properties)	10,725
Common Shares Outstanding (thousands)	106,937
Limited Partnership Units Outstanding (thousands)	21,799
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	6.0%
Total Capitalization (see p.14 for detail)	$2.3 billion

Investor Information

(as of January 31, 2014)

Board of Trustees

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

Investor Relations:

Lindsey Knoop-Anderson

landerson@iret.com

Table of Contents

Common Share Data (NYSE: IRET)*

	3^rd Quarter Fiscal Year 2014		2^nd Quarter Fiscal Year 2014		1^st Quarter Fiscal Year 2014		4^th Quarter Fiscal Year 2013		3^rd Quarter Fiscal Year 2013
High Closing Price	$	8.94	$	9.03	$	9.77	$	10.00	$	9.40
Low Closing Price	$	8.24	$	8.05	$	8.09	$	9.20	$	7.73
Average Closing Price	$	8.58	$	8.41	$	9.03	$	9.59	$	8.70
Closing Price at end of quarter	$	8.69	$	8.62	$	8.64	$	9.73	$	9.36
Common Share Distributions—annualized	$	0.520	$	0.520	$	0.520	$	0.520	$	0.520
Closing Dividend Yield - annualized		6.0%		6.0%		6.0%		5.3%		5.6%
Closing common shares outstanding (thousands)		106,937		105,554		104,226		101,488		94,386
Closing limited partnership units outstanding (thousands)		21,799		21,836		21,849		21,635		21,489
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	1,118,716	$	1,098,102	$	1,089,288	$	1,197,987	$	1,084,590

*	Effective December 18, 2012, IRET transferred the listing of its common shares and Series A preferred shares to the New York Stock Exchange from the NASDAQ Global Select Market.

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 2013 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Third Quarter Fiscal 2014 Developments Placed in Service




Cypress Court (interior) 906 Cypress Road St. Cloud, MN 56303	River Ridge Apartments (interior) 2130 S. 12th Street Bismarck, ND 58504

Table of Contents

Property Cost by Segment – Third Quarter Fiscal 2014

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
ASSETS
Real estate investments
Property owned	$	2,042,290	$	2,032,747	$	2,016,523	$	2,032,970	$	2,007,832
Less accumulated depreciation		(439,233)		(431,318)		(429,376)		(420,421)		(408,400)
		1,603,057		1,601,429		1,587,147		1,612,549		1,599,432
Development in progress		89,086		90,052		77,396		46,782		20,127
Unimproved land		21,498		21,619		20,774		21,503		18,879
Total real estate investments		1,713,641		1,713,100		1,685,317		1,680,834		1,638,438
Real estate held for sale		0		2,620		3,969		0		733
Cash and cash equivalents		53,494		68,727		93,193		94,133		62,302
Other investments		643		642		640		639		638
Receivable arising from straight-lining of rents, net of allowance		27,026		26,336		26,671		26,354		25,471
Accounts receivable, net of allowance		15,540		6,541		8,370		4,534		3,560
Real estate deposits		3,502		230		489		196		165
Prepaid and other assets		8,197		7,605		4,741		5,124		5,545
Intangible assets, net of accumulated amortization		34,008		35,625		36,989		40,457		41,009
Tax, insurance, and other escrow		24,550		11,864		12,344		12,569		13,306
Property and equipment, net of accumulated depreciation		1,719		1,191		1,217		1,221		1,288
Goodwill		1,100		1,100		1,100		1,106		1,106
Deferred charges and leasing costs, net of accumulated amortization		21,138		20,666		21,602		22,387		22,513
TOTAL ASSETS	$	1,904,558	$	1,896,247	$	1,896,642	$	1,889,554	$	1,816,074

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	54,337	$	57,453	$	52,563	$	50,797	$	44,540
Revolving line of credit		22,500		10,000		10,000		10,000		10,000
Mortgages payable		1,008,524		1,021,170		1,030,407		1,049,206		1,041,623
Other		47,767		31,689		32,366		18,170		21,632
TOTAL LIABILITIES		1,133,128		1,120,312		1,125,336		1,128,173		1,117,795

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		111,357		111,357		111,357		111,357
Common Shares of Beneficial Interest		829,816		818,516		807,928		784,454		721,742
Accumulated distributions in excess of net income		(344,294)		(331,116)		(323,406)		(310,341)		(305,145)
Total Investors Real Estate Trust shareholders' equity		624,196		626,074		623,196		612,787		555,271
Noncontrolling interests – Operating Partnership		117,803		120,678		122,334		122,539		121,940
Noncontrolling interests – consolidated real estate entities		29,431		29,183		25,776		26,055		21,068
Total equity		771,430		775,935		771,306		761,381		698,279
TOTAL LIABILITIES AND EQUITY	$	1,904,558	$	1,896,247	$	1,896,642	$	1,889,554	$	1,816,074

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Nine Months Ended				Three Months Ended
OPERATING RESULTS	1/31/2014		1/31/2013		1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
Real estate revenue	$	198,499	$	183,874	$	67,629	$	65,772	$	65,098	$	64,184	$	63,080
Real estate expenses		78,898		73,102		25,927		26,331		26,640		25,957		25,348
Gain on involuntary conversion		2,480		2,263		1,514		0		966		2,821		0
Net operating income		122,081		113,035		43,216		39,441		39,424		41,048		37,732
Depreciation/amortization		(53,656)		(46,505)		(17,489)		(17,167)		(19,000)		(15,828)		(15,493)
Administrative expenses, advisory and trustee services		(7,942)		(6,402)		(2,662)		(2,527)		(2,753)		(2,092)		(2,245)
Other expenses		(1,630)		(1,496)		(273)		(678)		(679)		(677)		(464)
Impairment of real estate investments		(4,798)		0		(4,798)		0		0		0		0
Interest expense		(44,525)		(46,554)		(15,130)		(14,799)		(14,596)		(14,600)		(15,197)
Interest and other income		1,602		600		740		652		210		148		255
Income from continuing operations		11,132		12,678		3,604		4,922		2,606		7,999		4,588
Income from discontinued operations		6,450		5,481		465		5,375		610		3,814		1,565
Net income	$	17,582	$	18,159	$	4,069	$	10,297	$	3,216	$	11,813	$	6,153

Net income attributable to noncontrolling interest – Operating Partnership		(1,406)		(2,097)		(130)		(1,226)		(50)		(1,536)		(556)
Net income attributable to noncontrolling interests – consolidated real estate entities		(808)		(547)		(436)		(284)		(88)		(262)		(273)
Net income attributable to Investors Real Estate Trust		15,368		15,515		3,503		8,787		3,078		10,015		5,324
Dividends to preferred shareholders		(8,636)		(6,350)		(2,879)		(2,878)		(2,879)		(2,879)		(2,879)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	6,732	$	9,165	$	624	$	5,909	$	199	$	7,136	$	2,445

Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	.01	$	.05	$	.00	$	.01	$	.00	$	.04	$	.01
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.05		.05		.00		.05		.00		.03		.02
Net income per common share – basic & diluted	$	.06	$	.10	$	.00	$	.06	$	.00	$	.07	$	.03

Percentage of Revenues
Real estate expenses		39.7%		39.8%		38.3%		40.0%		40.9%		40.4%		40.2%
Depreciation/amortization		27.0%		25.3%		25.9%		26.1%		29.2%		24.7%		24.6%
General and administrative		4.0%		3.5%		3.9%		3.8%		4.2%		3.3%		3.6%
Interest		22.4%		25.3%		22.4%		22.5%		22.4%		22.7%		24.1%
Income from discontinued operations		3.2%		3.0%		0.7%		8.2%		0.9%		5.9%		2.5%
Net income		8.9%		9.9%		6.0%		15.7%		4.9%		18.4%		9.8%

Ratios
EBITDA⁽¹⁾/Interest expense		2.25x		2.23x		2.13x		2.37x		2.23x		2.41x		2.34x
EBITDA⁽¹⁾/Interest expense plus preferred distributions		1.90x		1.98x		1.81x		2.00x		1.88x		2.03x		1.98x

(1)	See Definitions on page 30. EBITDA is a non-GAAP measure; see page 9 for a reconciliation of EBITDA to net income.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Nine Months Ended				Three Months Ended
	1/31/2014		1/31/2013		1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
Funds From Operations⁽¹⁾
Net income attributable to Investors Real Estate Trust	$	15,368	$	15,515	$	3,503	$	8,787	$	3,078	$	10,015	$	5,324
Less dividends to preferred shareholders		(8,636)		(6,350)		(2,879)		(2,878)		(2,879)		(2,879)		(2,879)
Net income available to common shareholders		6,732		9,165		624		5,909		199		7,136		2,445
Adjustments:
Noncontrolling interests – Operating Partnership		1,406		2,097		130		1,226		50		1,536		556
Depreciation and amortization		54,591		48,971		17,546		17,490		19,555		16,572		16,263
Impairment of real estate investments		6,658		0		4,798		57		1,803		305		0
Gain on depreciable property sales	$	(6,999)	$	(3,452)		(358)		(4,698)		(1,943)		(3,433)		(772)
Funds from operations applicable to common shares and Units		62,388		56,781	$	22,740	$	19,984	$	19,664	$	22,116	$	18,492

FFO per share and unit - basic and diluted	$	0.49	$	0.50	$	0.17	$	0.16	$	0.16	$	0.19	$	0.16

Adjusted funds from operations⁽¹⁾
Funds from operations applicable to common shares and Units	$	62,388	$	56,781	$	22,740	$	19,984	$	19,664	$	22,116	$	18,492
Adjustments:
Tenant improvements at stabilized properties		(8,389)		(6,747)		(4,205)		(1,841)		(2,343)		(3,092)		(3,156)
Leasing costs at stabilized properties		(2,870)		(4,517)		(1,219)		(735)		(916)		(610)		(2,231)
Recurring capital expenditures⁽¹⁾		(3,858)		(5,303)		(1,093)		(1,364)		(1,401)		(687)		(1,614)
Straight-line rents		(2,136)		(2,208)		(818)		(666)		(652)		(883)		(576)
Non-real estate depreciation		266		299		99		82		85		82		80
Gain on involuntary conversion		(2,480)		(2,263)		(1,514)		0		(966)		(2,821)		0
Adjusted funds from operations applicable to common shares and Units	$	42,921	$	36,042	$	13,990	$	15,460	$	13,471	$	14,105	$	10,995

AFFO per share and unit - basic and diluted	$	0.34	$	0.32	$	0.11	$	0.12	$	0.11	$	0.12	$	0.10

Weighted average shares and units		126,302		113,358		128,027		126,713		124,179		118,192		115,207

(1)	See Definitions on page 30.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Nine Months Ended				Three Months Ended
	1/31/2014		1/31/2013		1/31/2014		10/31/2013		07/31/2013		04/30/2013		01/31/2013
EBITDA⁽¹⁾
Net income attributable to Investors Real Estate Trust	$	15,368	$	15,515	$	3,503	$	8,787	$	3,078	$	10,015	$	5,324
Adjustments:
Noncontrolling interests – Operating Partnership		1,406		2,097		130		1,226		50		1,536		556
Income before noncontrolling interests – Operating Partnership		16,774		17,612		3,633		10,013		3,128		11,551		5,880
Add:
Interest expense		44,946		48,617		15,159		14,904		14,883		15,069		15,731
Depreciation/amortization related to real estate investments		52,093		46,716		16,825		16,675		18,593		15,759		15,506
Amortization related to non-real estate investments		2,590		2,426		758		839		993		848		794
Amortization related to real estate revenues⁽²⁾		175		126		62		59		54		49		43
Less:
Interest income		(1,346)		(176)		(573)		(585)		(188)		(46)		(70)
Gain on sale of real estate, land and other investments		(6,999)		(3,452)		(358)		(4,698)		(1,943)		(3,433)		(772)
Gain on involuntary conversion		(2,480)		(2,263)		(1,514)		0		(966)		(2,821)		0
EBITDA	$	105,753	$	109,606	$	33,992	$	37,207	$	34,554	$	36,976	$	37,112

(1)	Definitions on page 30.

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

Total Mortgage Debt*

	Future Maturities of Mortgage Debt
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average⁽¹⁾	% of Total Debt
2014	$	12,798	$	2,807	$	15,605	4.64%	1.6%
2015		66,537		0		66,537	5.56%	6.6%
2016		73,185		0		73,185	5.50%	7.3%
2017		171,689		0		171,689	6.12%	17.0%
2018		76,265		0		76,265	5.03%	7.5%
2019		91,574		5,495		97,069	5.86%	9.6%
2020		111,908		0		111,908	5.87%	11.1%
2021		131,909		0		131,909	5.30%	13.1%
2022		130,959		0		130,959	5.61%	13.0%
2023		38,114		0		38,114	4.25%	3.8%
Thereafter		95,284		0		95,284	4.48%	9.4%
Total maturities	$	1,000,222	$	8,302	$	1,008,524	5.48%	100.0%

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

	1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
Balances Outstanding
Mortgage
Fixed rate	$	1,000,222	$	1,012,813	$	1,014,632	$	1,022,990	$	1,004,567
Variable rate		8,302		8,357		15,775		26,216		37,056
Mortgage total	$	1,008,524	$	1,021,170	$	1,030,407	$	1,049,206	$	1,041,623

Weighted Average Interest Rates
Secured		5.48%		5.50%		5.54%		5.55%		5.65%

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JANUARY 31, 2014
(in thousands)

Property	Maturity Date	Fiscal 2014		Fiscal 2015		Fiscal 2016		Fiscal 2017		Thereafter		Total⁽¹⁾

Multi-Family Residential
Monticello Village - Monticello, MN ⁽²⁾	3/1/2014	$	2,808	$	0	$	0	$	0	$	0	$	2,808
Evergreen II - Isanti, MN	11/1/2014		0		2,119		0		0		0		2,119
Campus Center - St Cloud, MN	6/1/2015		0		0		1,225		0		0		1,225
Campus Knoll - St Cloud, MN	6/1/2015		0		0		817		0		0		817
Landmark - Grand Forks, ND	8/24/2015		0		0		1,654		0		0		1,654
Regency Park Estates - St Cloud, MN	1/1/2016		0		0		6,864		0		0		6,864
Pebble Springs – Bismarck, ND	7/1/2016		0		0		0		779		0		779
Southview – Minot, ND	7/1/2016		0		0		0		1,065		0		1,065
Summary of Debt due after Fiscal 2017			0		0		0		0		372,319		372,319
Sub-Total Multi-Family Residential		$	2,808	$	2,119	$	10,560	$	1,844	$	372,319	$	389,650

Commercial Office
Whitewater Plaza - Minnetonka, MN ⁽³⁾	3/1/2014	$	2,487	$	0	$	0	$	0	$	0	$	2,487
Whitewater Plaza - Minnetonka, MN ⁽³⁾	3/1/2014		1,289		0		0		0		0		1,289
Viromed - Eden Prairie, MN ⁽²⁾	4/1/2014		83		0		0		0		0		83
Wirth Corporate Center - Golden Valley, MN ⁽⁴⁾	4/1/2014		3,538		0		0		0		0		3,538
TCA Building - Eagan, MN ⁽⁵⁾	5/1/2014		0		6,722		0		0		0		6,722
Burnsville Bluffs II - Burnsville, MN	8/8/2014		0		1,690		0		0		0		1,690
Plymouth IV - Plymouth, MN	8/8/2014		0		3,117		0		0		0		3,117
Plymouth V - Plymouth, MN	8/8/2014		0		3,642		0		0		0		3,642
Plaza VII - Boise, ID	9/1/2014		0		946		0		0		0		946
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		3,209		0		0		0		3,209
Crosstown Centre - Eden Prairie, MN	12/1/2014		0		9,627		0		0		0		9,627
Northgate I - Maple Grove, MN	12/10/2014		0		5,024		0		0		0		5,024
Plymouth I - Plymouth, MN	12/10/2014		0		1,126		0		0		0		1,126
Plymouth II - Plymouth, MN	12/10/2014		0		1,126		0		0		0		1,126
Plymouth III - Plymouth, MN	12/10/2014		0		1,386		0		0		0		1,386
Benton Business Park - Sauk Rapids, MN	1/1/2015		0		508		0		0		0		508
West River Business Park - Waite Park, MN	1/1/2015		0		508		0		0		0		508
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		0		8,050		0		0		0		8,050
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		0		7,677		0		0		0		7,677
US Bank Financial Center - Bloomington, MN	7/1/2015		0		0		13,186		0		0		13,186
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		0		818		0		0		818
Westgate I - Boise, ID	8/1/2015		0		0		1,167		0		0		1,167
Westgate II - Boise, ID	8/1/2015		0		0		2,857		0		0		2,857
Brook Valley I - LaVista, NE	1/1/2016		0		0		1,268		0		0		1,268
Spring Valley IV - Omaha, NE	1/1/2016		0		0		754		0		0		754
Spring Valley V - Omaha, NE	1/1/2016		0		0		830		0		0		830
Spring Valley X - Omaha, NE	1/1/2016		0		0		770		0		0		770
Spring Valley XI - Omaha, NE	1/1/2016		0		0		755		0		0		755
American Corporate Center – Mendota Heights, MN	9/1/2016		0		0		0		8,824		0		8,824
Mendota Office Center I – Mendota Heights, MN	9/1/2016		0		0		0		3,800		0		3,800
Mendota Office Center II - Mendota Heights, MN	9/1/2016		0		0		0		5,614		0		5,614
Mendota Office Center III - Mendota Heights, MN	9/1/2016		0		0		0		3,858		0		3,858

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JANUARY 31, 2014 (continued)
(in thousands)

Property	Maturity Date	Fiscal 2014		Fiscal 2015		Fiscal 2016		Fiscal 2017		Thereafter		Total⁽¹⁾

Commercial Office - continued
Mendota Office Center IV - Mendota Heights, MN	9/1/2016	$	0	$	0	$	0	$	4,587	$	0	$	4,587
Corporate Center West – Omaha, NE	10/6/2016		0		0		0		17,315		0		17,315
Farnam Executive Center – Omaha, NE	10/6/2016		0		0		0		12,160		0		12,160
Flagship – Eden Prarie, MN	10/6/2016		0		0		0		21,565		0		21,565
Gateway Corporate Center – Woodbury, MN	10/6/2016		0		0		0		8,700		0		8,700
Miracle Hills One – Omaha, NE	10/6/2016		0		0		0		8,895		0		8,895
Pacific Hills – Omaha, NE	10/6/2016		0		0		0		16,770		0		16,770
Riverport – Maryland Heights, MO	10/6/2016		0		0		0		19,690		0		19,690
Timberlands – Leawood, KS	10/6/2016		0		0		0		13,155		0		13,155
Woodlands Plaza IV – Maryland Heights, MO	10/6/2016		0		0		0		4,360		0		4,360
2030 Cliff Road – Eagan, MN	1/11/2017		0		0		0		945		0		945
Summary of Debt due after Fiscal 2017			0		0		0		0		98,908		98,908
Sub-Total Commercial Office		$	7,397	$	54,358	$	22,405	$	150,238	$	98,908	$	333,306

Commercial Healthcare
High Pointe Health Campus - Lake Elmo, MN ⁽⁶⁾	4/1/2014	$	5,400	$	0	$	0	$	0	$	0	$	5,400
Edgewood Vista - Billings, MT	12/10/2014		0		1,856		0		0		0		1,856
Edgewood Vista - East Grand Forks, MN	12/10/2014		0		2,827		0		0		0		2,827
Edgewood Vista - Sioux Falls, SD	12/10/2014		0		1,063		0		0		0		1,063
Garden View Medical - St Paul, MN	8/1/2015		0		0		923		0		0		923
Edina 6363 France Medical - St Paul, MN	8/6/2015		0		0		9,895		0		0		9,895
2800 Medical Building - Minneapolis, MN	9/1/2015		0		0		5,253		0		0		5,253
2828 Medical Building - Minneapolis, MN	9/1/2015		0		0		8,258		0		0		8,258
Edina 6405 France Medical - Edina, MN	9/1/2015		0		0		8,552		0		0		8,552
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		0		6,288		0		0		6,288
Airport Medical – Bloomington, MN	6/1/2016		0		0		0		850		0		850
Park Dental – Brooklyn Center, MN	6/1/2016		0		0		0		488		0		488
Edgewood Vista – Fargo, ND	10/25/2016		0		0		0		12,541		0		12,541
Sartell 2000 23^rd St S – Sartell, MN	12/1/2016		0		0		0		2,662		0		2,662
Billings 2300 Grant Road – Billings, MT	12/31/2016		0		0		0		1,499		0		1,499
Missoula 3050 Great Northern Ave – Missoula, MT	12/31/2016		0		0		0		1,567		0		1,567
Summary of Debt due after Fiscal 2017			0		0		0		0		174,513		174,513
Sub-Total Commercial Healthcare		$	5,400	$	5,746	$	39,169	$	19,607	$	174,513	$	244,435

Commercial Industrial
Stone Container - Fargo, ND	12/1/2015		0		0		469		0		0		469
Stone Container - Fargo, ND	12/1/2015		0		0		582		0		0		582
Summary of Debt due after Fiscal 2017			0		0		0		0		12,909		12,909
Sub-Total Commercial Industrial		$	0	$	0	$	1,051	$	0	$	12,909	$	13,960

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF JANUARY 31, 2014 (continued)
(in thousands)

Property	Maturity Date	Fiscal 2014		Fiscal 2015		Fiscal 2016		Fiscal 2017		Thereafter		Total⁽¹⁾
Commercial Retail
Omaha Barnes & Noble - Omaha, NE	6/1/2014		0		2,306		0		0		0		2,306
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		0		222		0		0		0		222
Fargo Express Center - Fargo, ND	10/1/2014		0		897		0		0		0		897
Lakeville Strip Center - Lakeville, MN	10/1/2014		0		889		0		0		0		889
Summary of Debt due after Fiscal 2017			0		0		0		0		22,859		22,859
Sub-Total Commercial Retail		$	0	$	4,314	$	0	$	0	$	22,859	$	27,173

Total		$	15,605	$	66,537	$	73,185	$	171,689	$	681,508	$	1,008,524

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 December 1, 2016; as of January 31, 2014, the Company had borrowings of $22.5 million outstanding under this line. Construction loans and other debt totaled $47.7 million as of January 31, 2014.

(1)	Totals are principal balances as of January 31, 2014.

(2)	Loan was paid off subsequent to January 31, 2014.

(3)	Loan was renewed subsequent to January 31, 2014.

(4)	Loan has anticipated payoff on April 1, 2014.

(5)	Loan was refinanced subsequent to January 31, 2014.

(6)	Loan is under application for renewal.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
Equity Capitalization
Common shares outstanding		106,937		105,554		104,226		101,488		94,386
Operating partnership (OP) units outstanding		21,799		21,836		21,849		21,635		21,489
Total common shares and OP units outstanding		128,736		127,390		126,075		123,123		115,875
Market price per common share (closing price at end of period)	$	8.69	$	8.62	$	8.64	$	9.73	$	9.36
Equity capitalization-common shares and OP units	$	1,118,716	$	1,098,102	$	1,089,288	$	1,197,987	$	1,084,590
Recorded book value of preferred shares	$	138,674	$	138,674	$	138,674	$	138,674	$	138,674
Total equity capitalization	$	1,257,390	$	1,236,776	$	1,227,962	$	1,336,661	$	1,223,264

Debt Capitalization
Total debt	$	1,078,741	$	1,062,788	$	1,072,696	$	1,077,282	$	1,073,152
Total capitalization	$	2,336,131	$	2,299,564	$	2,300,658	$	2,413,943	$	2,296,416

Total debt to total capitalization		0.46:1		0.46:1		0.47:1		0.45:1		0.47:1

	Nine Months Ended				Three Months Ended
	1/31/2014		1/31/2013		1/31/2014		10/31/2013		7/31/2013		4/30/2013		1/31/2013
Earnings to fixed charges⁽¹⁾		1.17x		1.24x		1.15x		1.25x		1.13x		1.48x		1.26x
Earnings to combined fixed charges and preferred distributions⁽¹⁾		0.99x		1.10x		0.97x		1.05x		0.95x		1.25x		1.07x
Debt service coverage ratio⁽¹⁾		1.54x		1.56x		1.46x		1.64x		1.54x		1.64x		1.63x

Distribution Data
Common shares and units outstanding at record date		128,004		115,284		128,004		126,629		123,976		116,338		115,284
Total common distribution paid	$	49,193	$	44,126	$	16,639	$	16,461	$	16,093	$	15,124	$	14,956
Common distribution per share and unit	$	.3900	$	.3900	$	.1300	$	.1300	$	.1300	$	.1300	$	.1300
Payout ratio (FFO per share and unit basis)⁽¹⁾		79.6%		78.0%		76.5%		81.3%		81.3%		68.4%		81.3%
Payout ratio (AFFO per share and unit basis)⁽¹⁾		114.7%		121.9%		118.2%		108.3%		118.2%		108.3%		130.0%

(1)	See Definitions on page 30.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Stabilized Properties⁽¹⁾					Stabilized Properties⁽¹⁾
	Three Months Ended January 31,					Nine Months Ended January 31,
Segment	2014		2013		% Change	2014		2013		% Change
Multi-Family Residential	$	10,918	$	10,048	8.7%	$	31,733	$	31,512	0.7%
Commercial Office		10,357		9,776	5.9%		29,760		28,623	4.0%
Commercial Healthcare		12,905		11,752	9.8%		36,157		33,828	6.9%
Commercial Industrial		1,067		978	9.1%		3,024		2,673	13.1%
Commercial Retail		2,180		2,235	(2.5%)		6,465		6,422	0.7%
	$	37,427	$	34,789	7.6%	$	107,139	$	103,058	4.0%

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 31, 2014
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Stabilized⁽¹⁾	$	19,352	$	19,394	$	16,969	$	1,466	$	3,448	$	0	$	60,629
Non-stabilized		6,496		0		273		198		33		0		7,000
Total		25,848		19,394		17,242		1,664		3,481		0		67,629

Real estate expenses
Stabilized⁽¹⁾		8,434		9,037		4,064		399		1,268		0		23,202
Non-stabilized		2,564		0		56		94		11		0		2,725
Total		10,998		9,037		4,120		493		1,279		0		25,927

Gain on involuntary conversion
Stabilized⁽¹⁾		0		0		0		0		0		0		0
Non-stabilized		1,514		0		0		0		0		0		1,514
Total		1,514		0		0		0		0		0		1,514

Net operating income (NOI)
Stabilized⁽¹⁾		10,918		10,357		12,905		1,067		2,180		0		37,427
Non-stabilized		5,446		0		217		104		22		0		5,789
Net operating income	$	16,364	$	10,357	$	13,122	$	1,171	$	2,202	$	0	$	43,216

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(5,444)	$	(5,776)	$	(4,938)	$	(457)	$	(792)	$	(82)	$	(17,489)
Administrative, advisory and trustee fees		0		0		0		0		0		(2,662)		(2,662)
Impairment of real estate investments		0		0		0		0		0		(4,798)		(4,798)
Other expenses		0		0		0		0		0		(273)		(273)
Interest expense		(5,491)		(5,083)		(4,053)		(213)		(421)		131		(15,130)
Interest and other income		0		0		0		0		0		740		740
Income (loss) from continuing operations		5,429		(502)		4,131		501		989		(6,944)		3,604
(Loss) income from discontinued operations		(205)		0		0		861		(191)		0		465
Net income (loss)		5,224		(502)		4,131		1,362		798		(6,944)		4,069
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(130)		(130)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(436)		(436)
Net income (loss) attributable to Investors Real Estate Trust		5,224		(502)		4,131		1,362		798		(7,510)		3,503
Dividends to preferred shareholders		0		0		0		0		0		(2,879)		(2,879)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	5,224		(502)		4,131		1,362		798	$	(10,389)	$	624

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended January 31, 2013
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Stabilized⁽¹⁾	$	18,901	$	19,046	$	15,869	$	1,404	$	3,485	$	0	$	58,705
Non-stabilized		3,958		0		83		334		0		0		4,375
Total		22,859		19,046		15,952		1,738		3,485		0		63,080

Real estate expenses
Stabilized⁽¹⁾		8,853		9,270		4,117		426		1,250		0		23,916
Non-stabilized		1,355		0		11		66		0		0		1,432
Total		10,208		9,270		4,128		492		1,250		0		25,348

Net operating income (NOI)
Stabilized⁽¹⁾		10,048		9,776		11,752		978		2,235		0		34,789
Non-stabilized		2,603		0		72		268		0		0		2,943
Net operating income	$	12,651	$	9,776	$	11,824	$	1,246	$	2,235	$	0	$	37,732

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(4,541)	$	(5,250)	$	(4,451)	$	(409)	$	(762)	$	(80)	$	(15,493)
Administrative, advisory and trustee fees		0		0		0		0		0		(2,245)		(2,245)
Other expenses		0		0		0		0		0		(464)		(464)
Interest expense		(5,306)		(5,269)		(3,634)		(359)		(522)		(107)		(15,197)
Interest and other income		0		0		0		0		0		255		255
Income (loss) from continuing operations		2,804		(743)		3,739		478		951		(2,641)		4,588
Income (loss) from discontinued operations		782		104		0		681		(2)		0		1,565
Net income (loss)		3,586		(639)		3,739		1,159		949		(2,641)		6,153
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(556)		(556)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(273)		(273)
Net income (loss) attributable to Investors Real Estate Trust		3,586		(639)		3,739		1,159		949		(3,470)		5,324
Dividends to preferred shareholders		0		0		0		0		0		(2,879)		(2,879)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	3,586		(639)		3,739		1,159		949	$	(6,349)	$	2,445

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 31, 2014
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Stabilized⁽¹⁾	$	57,945	$	58,075	$	48,470	$	4,218	$	10,048	$	0	$	178,756
Non-stabilized		17,714		0		870		1,055		104		0		19,743
Total		75,659		58,075		49,340		5,273		10,152		0		198,499

Real estate expenses
Stabilized⁽¹⁾		26,212		28,315		12,313		1,194		3,583		0		71,617
Non-stabilized		6,794		0		221		253		13		0		7,281
Total		33,006		28,315		12,534		1,447		3,596		0		78,898

Gain on involuntary conversion
Stabilized⁽¹⁾		0		0		0		0		0		0		0
Non-stabilized		2,480		0		0		0		0		0		2,480
Total		2,480		0		0		0		0		0		2,480

Net operating income (NOI)
Stabilized⁽¹⁾		31,733		29,760		36,157		3,024		6,465		0		107,139
Non-stabilized		13,400		0		649		802		91		0		14,942
Net operating income	$	45,133	$	29,760	$	36,806	$	3,826	$	6,556	$	0	$	122,081

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(16,527)	$	(16,564)	$	(16,510)	$	(1,410)	$	(2,396)	$	(249)	$	(53,656)
Administrative, advisory and trustee services		0		0		0		0		0		(7,942)		(7,942)
Impairment of real estate investments		0		0		0		0		0		(4,798)		(4,798)
Other expenses		0		0		0		0		0		(1,630)		(1,630)
Interest expense		(16,276)		(15,271)		(11,776)		(768)		(1,406)		972		(44,525)
Interest and other income		0		0		0		0		0		1,602		1,602
Income (loss) from continuing operations		12,330		(2,075)		8,520		1,648		2,754		(12,045)		11,132
(Loss) income from discontinued operations		(99)		6,014		0		1,115		(580)		0		6,450
Net income (loss)		12,231		3,939		8,520		2,763		2,174		(12,045)		17,582
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(1,406)		(1,406)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(808)		(808)
Net income (loss) attributable to Investors Real Estate Trust		12,231		3,939		8,520		2,763		2,174		(14,259)		15,368
Dividends to preferred shareholders		0		0		0		0		0		(8,636)		(8,636)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	12,231	$	3,939	$	8,520	$	2,763	$	2,174	$	(22,895)	$	6,732

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Nine Months Ended January 31, 2013
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Stabilized⁽¹⁾	$	56,285	$	56,214	$	46,203	$	3,815	$	9,912	$	0	$	172,429
Non-stabilized		10,473		0		83		889		0		0		11,445
Total		66,758		56,214		46,286		4,704		9,912		0		183,874

Real estate expenses
Stabilized⁽¹⁾		24,773		27,591		12,375		1,142		3,490		0		69,371
Non-stabilized		3,511		0		12		208		0		0		3,731
Total		28,284		27,591		12,387		1,350		3,490		0		73,102

Gain on involuntary conversion
Stabilized⁽¹⁾		0		0		0		0		0		0		0
Non-stabilized		2,263		0		0		0		0		0		2,263
Total		2,263		0		0		0		0		0		2,263

Net operating income (NOI)
Stabilized⁽¹⁾		31,512		28,623		33,828		2,673		6,422		0		103,058
Non-stabilized		9,225		0		71		681		0		0		9,977
Net operating income	$	40,737	$	28,623	$	33,899	$	3,354	$	6,422	$	0	$	113,035

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(13,810)	$	(15,746)	$	(13,243)	$	(1,168)	$	(2,239)	$	(299)	$	(46,505)
Administrative, advisory and trustee services		0		0		0		0		0		(6,402)		(6,402)
Other expenses		0		0		0		0		0		(1,496)		(1,496)
Interest expense		(15,280)		(15,845)		(11,575)		(1,143)		(1,825)		(886)		(46,554)
Interest and other income		0		0		0		0		0		600		600
Income (loss) from continuing operations		11,647		(2,968)		9,081		1,043		2,358		(8,483)		12,678
Income (loss) from discontinued operations		3,689		248		(59)		1,557		46		0		5,481
Net income (loss)		15,336		(2,720)		9,022		2,600		2,404		(8,483)		18,159
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(2,097)		(2,097)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(547)		(547)
Net income (loss) attributable to Investors Real Estate Trust		15,336		(2,720)		9,022		2,600		2,404		(11,127)		15,515
Dividends to preferred shareholders		0		0		0		0		0		(6,350)		(6,350)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	15,336	$	(2,720)	$	9,022	$	2,600	$	2,404	$	(17,477)	$	9,165

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

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

STABILIZED PROPERTIES AND ALL PROPERTIES PHYSICAL OCCUPANCY LEVELS BY SEGMENT

3rd Quarter Fiscal 2014 vs. 3rd Quarter Fiscal 2013

Segments	Stabilized Properties		All Properties
	3rd Quarter	3rd Quarter	3rd Quarter	3rd Quarter
	Fiscal 2014	Fiscal 2013	Fiscal 2014	Fiscal 2013
Multi-Family Residential	93.5%	94.5%	91.8%	93.5%
Commercial Office	80.4%	78.9%	80.4%	78.9%
Commercial Healthcare	96.4%	94.9%	96.5%	94.8%
Commercial Industrial	85.6%	93.2%	86.2%	94.4%
Commercial Retail	86.9%	88.3%	86.9%	88.3%

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY⁽²⁾

	Three Months Ended
	1/31/2014		10/31/2013		7/31/2013		4/31/2013		1/31/2013
Number of Units		10,725		10,705		10,351		10,280		9,924
Average Investment Per Unit
Stabilized	$	61,187	$	60,592	$	60,118	$	58,765	$	58,506
Non-Stabilized		96,467		93,353		86,581		87,408		87,083
All Properties	$	68,728	$	67,034	$	64,743	$	63,659	$	63,107

Average Scheduled Rent⁽¹⁾per Unit
Stabilized	$	781	$	771	$	764	$	748	$	742
Non-Stabilized		1,010		976		955		944		994
All Properties	$	830	$	811	$	797	$	781	$	782

Total Receipts per Unit
Stabilized	$	767	$	768	$	754	$	739	$	731
Non-Stabilized		947		951		968		954		1,004
All Properties	$	806	$	804	$	792	$	776	$	775

Total Recurring Capital Expenditures per Unit⁽¹⁾	$	130	$	160	$	164	$	176	$	134

Physical Occupancy%
Stabilized		93.5%		94.6%		93.3%		94.7%		94.0%
Non-Stabilized		85.3%		90.4%		90.7%		94.5%		91.4%
All Properties		91.8%		93.8%		92.9%		94.6%		93.6%

Operating Expenses as a % of Scheduled Rent
Stabilized		43.0%		45.6%		46.4%		44.0%		47.3%
Non-Stabilized		39.8%		41.0%		40.7%		43.0%		38.7%
All Properties		42.2%		44.5%		45.2%		43.8%		45.5%

(1)	See Definitions on page 30.

(2)	Previously-reported amounts are not revised for discontinued operations or changes in the composition of the stabilized properties pool.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Stabilized Properties)

Commercial Leasing Activity

During fiscal year 2014, we have executed new and renewal commercial leases for our stabilized rental properties on 282,292 square feet for the three months ended January 31, 2014 and 1.3 million square feet for the nine months ended January 31, 2014. As a result of our leasing efforts, occupancy in our stabilized commercial portfolio increased to 86.4% as of January 31, 2014, up from 86.3% as of January 31, 2013.

The total leasing activity for our stabilized commercial rental properties, expressed in square feet of leases signed during the period, and the resulting physical occupancy levels are as follows:

Three Months Ended January 31, 2014

	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed^{(1) (2)}		Total Square Feet of Leases Executed⁽¹⁾		Physical Occupancy
	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed^{(1) (2)}		Total Square Feet of Leases Executed⁽¹⁾		Physical Occupancy
Segments	2014	2013	2014	2013	2014	2013	2014	2013
Office	64,288	34,280	80,424	32,055	144,712	66,335	80.4%	78.9%
Healthcare	175	11,656	17,734	0	17,909	11,656	96.4%	94.9%
Industrial	64,000	0	0	0	64,000	0	85.6%	93.2%
Retail	27,107	24,925	28,564	16,457	55,671	41,382	86.9%	88.3%
Total	155,570	70,861	126,722	48,512	282,292	119,373	86.4%	86.3%

(1)

The leasing activity presented is based on leases signed or executed for our stabilized rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with GAAP. Results include properties classified in discontinued operations; prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations in the current period.

(2)	Leases renewed include the retained occupancy of tenants on a month-to-month basis past their original lease expiration date.

Nine Months Ended January 31, 2014

	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed^{(1) (2)}		Total Square Feet of Leases Executed⁽¹⁾		Physical Occupancy
	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed^{(1) (2)}		Total Square Feet of Leases Executed⁽¹⁾		Physical Occupancy
Segments	2014	2013	2014	2013	2014	2013	2014	2013
Office	278,143	144,145	222,798	127,032	500,941	271,177	80.4%	78.9%
Healthcare	31,268	21,882	34,996	11,456	66,264	33,338	96.4%	94.9%
Industrial	234,403	0	251,831	9,702	486,234	9,702	85.6%	93.2%
Retail	124,966	64,202	78,257	55,987	203,223	120,189	86.9%	88.3%
Total	668,780	230,229	587,882	204,177	1,256,662	434,406	86.4%	86.3%

(1)

(2)	Leases renewed include the retained occupancy of tenants on a month-to-month basis past their original lease expiration date.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Stabilized Properties)

New Leases

The following table sets forth the average effective rents and the estimated costs of tenant improvements and leasing commissions, on a per square foot basis, that we are obligated to fulfill under the new leases signed for our stabilized commercial rental properties:

Three Months Ended January 31, 2014

	Square Feet of New Leases⁽¹⁾				Average Term in Years				Average Effective Rent⁽²⁾				Estimated Tenant Improvement Cost per Square Foot⁽¹⁾				Leasing Commissions per Square Foot⁽¹⁾
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Office		64,288		34,280		3.6		5.4	$	13.85	$	12.40	$	6.76	$	8.76	$	3.20	$	4.93
Healthcare		175		11,656		0.8		5.1		13.71		14.24		0		0		0		0
Industrial		64,000		0		2.8		0		3.03		0		0		0		0.03		0
Retail		27,107		24,925		5.4		5.9		10.94		13.14		2.89		23.64		5.61		1.46
Total		155,570		70,861		3.9		5.6	$	8.89	$	12.96	$	3.30	$	12.55	$	2.31	$	2.90

(1)

(2)	Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Nine Months Ended January 31, 2014

	Square Feet of New Leases⁽¹⁾				Average Term in Years				Average Effective Rent⁽²⁾				Estimated Tenant Improvement Cost per Square Foot⁽¹⁾				Leasing Commissions per Square Foot⁽¹⁾
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Office		278,143		144,145		4.3		4.6	$	14.26	$	13.05	$	13.10	$	8.51	$	4.33	$	3.72
Healthcare		31,268		21,882		4.8		6.6		21.38		18.15		49.66		20.04		6.75		2.61
Industrial		234,403		0		3.1		0		3.55		0		0.13		0		0.50		0
Retail		124,966		64,202		5.4		4.9		5.70		9.41		1.84		9.89		4.47		0.84
Total		668,780		230,229		4.4		4.9	$	9.24	$	12.52	$	8.16	$	9.99	$	3.13	$	2.81

(1)

(2)	Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Our ability to maintain or increase occupancy rates is a principal driver of maintaining and increasing the average effective rents in our commercial segments. The decrease in the average effective rental rates of new leases executed in the nine months ended January 31, 2014 in our commercial retail segment when compared to new leases executed for the same period in the prior year is due to the signing of a new anchor tenant lease at our Jamestown Buffalo Mall property. In June of 2013, we executed a ten year lease with an effective date of August 1, 2013 for 84,338 square feet with a new anchor tenant at an average effective rent of $2.75 per square foot. This space was vacated by the former anchor tenant, which was paying $1.70 per square foot at the time their lease expired on May 31, 2013. Absent this transaction, the average effective rental rate for leases executed in our commercial retail segment in the nine months ended January 31, 2014 would have been $11.83 per square foot. The decrease in the average effective rental rate of new leases executed in the total commercial portfolio for the nine months ended January 31, 2014 when compared to the same period in the prior year is due primarily to the lease transaction mentioned above and the fact that there were no new commercial industrial leases executed in the nine months ended January 31, 2013. The decrease in the average effective rental rate of new leases executed in the total commercial portfolio for the three months ended January 31, 2014 when compared to the same period in the prior year is due solely to the fact that there were no new commercial industrial leases executed in the three months ended January 31, 2013.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Stabilized Properties)

Lease Renewals

The following table summarizes our lease renewal activity within our stabilized commercial segments (square feet data in thousands):

Three Months Ended January 31, 2014

	Square Feet of Leases Renewed⁽¹⁾				Percent of Expiring Leases Renewed⁽²⁾				Average Term in Years				Weighted Average Growth (Decline) in Effective Rents⁽³⁾				Estimated Tenant Improvement Cost per Square Foot⁽¹⁾				Leasing Commissions per Square Foot⁽¹⁾
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Office		80,424		32,055		44.4%		49.1%		3.2		1.8		(1.0%)		13.0%	$	4.54	$	0	$	1.87	$	0.54
Healthcare		17,734		0		100.0%		82.0%		2.3		0		9.6%		0%		0		0		0.02		0
Industrial		0		0		0%		53.6%		0		0		0%		0%		0		0		0		0
Retail		28,564		16,457		100.0%		60.9%		4.0		3.2		13.3%		0.8%		4.63		0.85		0.06		0.57
Total		126,722		48,512		55.4%		62.5%		3.3		2.3		3.6%		9.4%	$	3.93	$	0.29	$	1.20	$	0.55

(1)

(2)	Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases renewed. Expiring leases where the tenant retained occupancy on a month-to-month basis past the lease expiration date were considered to have been renewed.

(3)

Represents the percentage change in effective rent between the original leases and the renewal leases. Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Nine Months Ended January 31, 2014

	Square Feet of Leases Renewed⁽¹⁾				Percent of Expiring Leases Renewed⁽²⁾				Average Term in Years				Weighted Average Growth (Decline) in Effective Rents⁽³⁾				Estimated Tenant Improvement Cost per Square Foot⁽¹⁾				Leasing Commissions per Square Foot⁽¹⁾
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Office		222,798		127,032		55.5%		88.9%		3.6		3.2		(2.4%)		1.9%	$	4.69	$	4.66	$	3.31	$	2.48
Healthcare		34,996		11,456		100.0%		89.9%		3.6		5.3		8.8%		9.7%		9.96		11.85		1.10		2.48
Industrial		251,831		9,702		42.3%		69.4%		3.2		3.3		7.5%		(6.1%)		0.32		0.52		0.48		0.52
Retail		78,257		55,987		46.0%		68.4%		3.7		3.3		10.0%		0.4%		1.88		0.25		0.05		0.26
Total		587,882		204,177		53.7%		82.8%		3.6		3.5		2.7%		2.3%	$	2.76	$	3.66	$	1.53	$	1.78

(1)

(2)	Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases renewed. Expiring leases where the tenant retained occupancy on a month-to-month basis past the lease expiration date were considered to have been renewed.

(3)

The decrease in the percent of expiring leases renewed in the nine months ended January 31, 2014 in our commercial retail segment when compared to the percent of expiring leases renewed for the same period in the prior year was due to the lease expiration of an anchor tenant at our Jamestown Buffalo Mall property which occupied 84,338 square feet. Although this lease expired on May 31, 2013, we were able to execute a lease with a new tenant for the entire 84,338 square feet with an effective date of August 1, 2013 that resulted in an increase in effective rent of 61.8% when compared to the rent paid by the prior tenant. Not taking into account the previously mentioned vacated space, the percent of expiring leases renewed for our retail segment for the nine months ended January 31, 2014 would have been 87.7%.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Stabilized Properties)

Lease Expirations

Our ability to maintain and improve occupancy rates, and base rents, primarily depends upon our continuing ability to re-lease expiring space. The following table reflects the in-service portfolio lease expiration schedule of our consolidated commercial segments properties, including square footage and annualized base rent for expiring leases, as of January 31, 2014.

Fiscal Year of Lease Expiration	# of Leases	Square Footage of Expiring Leases⁽³⁾	Percentage of Total Commercial Segments Leased Square Footage	Annualized Base Rent of Expiring Leases at Expiration⁽²⁾		Percentage of Total Commercial Segments Annualized Base Rent
2014⁽¹⁾	86	558,714	6.2%	$	6,658,548	5.4%
2015	128	865,562	9.6%		12,539,223	10.2%
2016	120	1,218,840	13.5%		17,053,103	13.8%
2017	116	1,183,764	13.1%		19,328,509	15.7%
2018	81	680,492	7.6%		11,732,667	9.5%
2019	77	1,285,678	14.3%		15,633,526	12.7%
2020	22	461,874	5.1%		4,779,779	3.9%
2021	33	317,115	3.5%		4,775,559	3.9%
2022	41	1,313,347	14.6%		16,106,939	13.0%
2023	12	471,436	5.2%		2,098,988	1.7%
Thereafter	56	662,280	7.3%		12,582,661	10.2%
Totals	772	9,019,102	100.0%	$	123,289,502	100.0%

(1)	Includes month-to-month leases. As of January 31, 2014 month-to-month leases accounted for 416,107 square feet.

(2)	Annualized Base Rent is monthly scheduled rent as of January 1, 2014, multiplied by 12.

(3)	Assuming that none of the tenants exercise renewal or termination options, and including leases renewed prior to expiration. Also excludes 98,174 square feet of income producing real estate operated within a Taxable REIT Subsidiary.

Information on current market rents can be difficult to obtain, is highly subjective, and is often not directly comparable between properties. Accordingly, we believe the average effective rent realized on new leases and the increase or decrease in effective rent of lease renewals, as previously defined, are the most objective and meaningful performance measurements of our leasing activity.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of January 31, 2014

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	76	13.9%	1,481,647	16.3%
St. Luke's Hospital of Duluth, Inc.	6	26	3.7%	198,775	2.2%
Fairview Health Services	9	42	3.6%	247,019	2.7%
Applied Underwriters	3	37	2.4%	141,724	1.6%
HealthEast Care System	1	61	1.6%	114,316	1.3%
Affiliates of Siemens USA (NYSE: SI)	2	38	1.4%	112,848	1.2%
Microsoft (NASDAQ: MSFT)	1	59	1.3%	122,040	1.3%
Arcadis Corporate Services, Inc.	1	30	1.3%	71,430	0.8%
Nebraska Orthopaedic Hospital	1	182	1.3%	61,758	0.7%
State of Idaho Department of Health and Welfare	2	49	1.2%	103,342	1.1%
Total/Weighted Average		56	31.7%	2,654,899	29.2%

(1)	See Definitions on page 30.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASE EXPIRATIONS

as of January 31, 2014

	(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
2014⁽³⁾	38	141,817	4.0%	$	1,782	$	12.56	3.3%
2015	67	400,294	11.3%		7,299		18.23	13.5%
2016	53	553,632	15.7%		8,674		15.67	16.0%
2017	56	814,561	23.1%		14,228		17.47	26.3%
2018	39	454,638	12.9%		6,857		15.08	12.7%
2019 and thereafter	84	1,165,857	33.0%		15,258		13.09	28.2%
	337	3,530,799	100.0%	$	54,098	$	15.32	100.0%

Commercial Healthcare
2014⁽⁴⁾	27	376,645	11.4%	$	4,557	$	12.10	8.4%
2015	19	106,178	3.2%		2,829		26.64	5.2%
2016	27	272,348	8.3%		5,272		19.36	9.7%
2017	31	164,655	5.0%		3,411		20.72	6.3%
2018	23	185,262	5.6%		4,357		23.52	8.0%
2019 and thereafter	107	2,195,880	66.5%		33,760		15.37	62.4%
	234	3,300,968	100.0%	$	54,186	$	16.42	100.0%

Commercial Industrial
2014⁽⁵⁾	0	0	0.0%	$	0	$	0.00	0.0%
2015	1	30,000	2.8%		105		3.50	2.1%
2016	5	265,848	25.3%		1,608		6.05	31.5%
2017	1	69,600	6.7%		357		5.12	7.0%
2018	0	0	0.0%		0		0.00	0.0%
2019 and thereafter	9	684,663	65.2%		3,027		4.42	59.4%
	16	1,050,111	100.0%	$	5,097	$	4.85	100.0%

Commercial Retail
2014⁽⁶⁾	21	40,252	3.5%	$	319	$	7.93	3.2%
2015	41	329,090	28.9%		2,306		7.01	23.3%
2016	35	127,012	11.2%		1,499		11.80	15.1%
2017	28	134,948	11.9%		1,333		9.88	13.5%
2018	19	40,592	3.6%		519		12.77	5.2%
2019 and thereafter	41	465,330	40.9%		3,932		8.45	39.7%
	185	1,137,224	100.0%	$	9,908	$	8.71	100.0%

Commercial Total
2014⁽⁷⁾	86	558,714	6.2%	$	6,658	$	11.92	5.4%
2015	128	865,562	9.6%		12,539		14.49	10.2%
2016	120	1,218,840	13.5%		17,053		13.99	13.8%
2017	116	1,183,764	13.1%		19,329		16.33	15.7%
2018	81	680,492	7.6%		11,733		17.24	9.5%
2019 and thereafter	241	4,511,730	50.0%		55,977		12.41	45.4%
	772	9,019,102	100.0%	$	123,289	$	13.67	100.0%

(1)	Excludes 98,174 square feet of income producing real estate operated within a Taxable REIT Subsidiary.

(2)	Annualized Base Rent is monthly scheduled rent as of January 1, 2014 (cash basis), multiplied by 12.

(3)	Includes month-to-month leases. As of January 31, 2014 month-to-month leases accounted for 73,796 square feet.

(4)	Includes month-to-month leases. As of January 31, 2014 month-to-month leases accounted for 319,380 square feet.

(5)	The Commercial Industrial segment has no month-to-month leases in place as of January 31, 2014.

(6)	Includes month-to-month leases. As of January 31, 2014 month-to-month leases accounted for 22,931 square feet.

(7)	Includes month-to-month leases. As of January 31, 2014 month-to-month leases accounted for 416,107 square feet.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2014 ACQUISITION SUMMARY

as of January 31, 2014

(dollars in thousands)

Property	Location	Segment Type	Acquisition Date	Square Feet/Units	Leased Percentage At Acquisition	January 31, 2014 Leased Percentage	Acquisition Cost

Alps Park	Rapid City, SD	Multi-Family Residential	May 1, 2013	71	97.2%	100.0%	$	6,200
Chateau II	Minot, ND	Unimproved Land	May 21, 2013	n/a	n/a	n/a		179
Jamestown Unimproved	Jamestown, ND	Unimproved Land	August 9, 2013	n/a	n/a	n/a		700
RED 20⁽¹⁾	Minneapolis, MN	Unimproved Land	August 20, 2013	n/a	n/a	n/a		1,900
Landing at Southgate⁽²⁾	Minot, ND	Multi-Family Residential	September 4, 2013	108	77.8%	92.6%		8,809
Southpoint	Grand Forks, ND	Multi-Family Residential	September 5, 2013	96	100.0%	96.9%		10,600
Pinecone Villas	Sartell, MN	Multi-Family Residential	October 31, 2013	24	83.3%	87.5%		2,800
Legends at Heritage Place	Sartell, MN	Commercial Healthcare and Unimproved Land	October 31, 2013	98,174	100.0%	100.0%		12,400
Cypress Court⁽³⁾	St. Cloud, MN	Multi-Family Residential	November 1, 2013	132	59.1%	66.7%		7,836
River Ridge⁽⁴⁾	Bismarck, ND	Multi-Family Residential	December 2, 2103	146	81.5%	81.5%		14,703
Spring Creek Fruitland	Fruitland, ID	Unimproved Land	January 21, 2014	n/a	n/a	n/a		335
			Total Square Feet	98,174			$	66,462
			Total Units	577

(1)	The Company is an approximately 58.6% 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)	Development property placed in service September 4, 2013. Additional costs paid in fiscal year 2013 totaled $6.3 million, for a total project cost at January 31, 2014 of $15.1 million. The project is owned by a joint venture entity in which the Company has an approximately 51% interest.

(3)	Development property placed in service November 1, 2013. Additional costs paid in fiscal year 2013 totaled $5.8 million, for a total project cost at January 31, 2014 of $13.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86% interest.

(4)	Development property placed in service December 2, 2013. Additional costs paid in fiscal year 2013 totaled $10.1 million, including land acquired in fiscal year 2009, for a total project cost at January 31, 2014 of $24.8 million.

Table of Contents

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2014 DEVELOPMENT IN PROGESS SUMMARY

as of January 31, 2014

(dollars in thousands)

Property and Location	Planned Segment	Total Rentable Square Feet or # of Units	Percentage Leased or Committed	Anticipated Total Cost		Cost to Date		Anticipated Construction Completion
Dakota Commons - Williston, ND	Multi-Family Residential	44 units	0%	$	10,736	$	6,139	1^st Quarter Fiscal 2015
Commons at Southgate - Minot, ND⁽¹⁾	Multi-Family Residential	233 units	0%		37,201		23,492	2^nd Quarter Fiscal 2015
Renaissance Heights I - Williston, ND⁽²⁾	Multi-Family Residential	288 units	8.6%		62,362		33,934	2^nd Quarter Fiscal 2015
Arcata - Golden Valley, MN	Multi-Family Residential	165 units	0%		33,151		9,250	2^nd Quarter Fiscal 2015
RED 20 - Minneapolis, MN⁽³⁾	Multi-Family Residential and Commercial	130 units and 10,625 sq ft	0%		29,462		9,333	2^nd Quarter Fiscal 2015
Chateau II - Minot, ND⁽⁴⁾	Multi-Family Residential	72 units	0%		14,711		1,741	4^th Quarter Fiscal 2015
Cardinal Point - Grand Forks, ND	Multi-Family Residential	251 units	0%		40,042		4,986	4^th Quarter Fiscal 2015
Other	n/a	n/a	n/a		n/a		211	n/a
				$	227,665	$	89,086

(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 70% partner in the joint venture entity constructing this property; the anticipated total cost amount given is the total cost to the joint venture entity.

(3)	The Company is an approximately 58.6% partner in the joint venture entity constructing this property; the anticipated total cost amount given is the total cost to the joint venture entity.

(4)	On December 5, 2013, this development project was destroyed by fire.

Table of Contents

Definitions

January 31, 2014

Adjusted funds from operations (AFFO) is calculated by subtracting from Funds from operations (FFO) (1) tenant improvements and leasing costs at stabilized properties, 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. Our calculation subtracts from FFO leasing commissions and tenant improvements at stabilized properties only, since we consider tenant improvement and leasing cost levels at non-stabilized properties unrepresentative of expected levels at stabilized properties. Previously-reported AFFO amounts are not revised for changes in the composition of the stabilized properties pool. 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.

EBITDA is 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 (NOI) is total real estate revenues and gain on involuntary conversion 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 REIT'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 does not represent cash generated by operating activities in accordance with GAAP and 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.

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 and capital expenditures at properties sold during the period) 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 in subsequent periods until the property is stabilized (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.

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

	INVESTORS REAL ESTATE TRUST

	By: /s/ Timothy P. Mihalick
	Timothy P. Mihalick
	President & Chief Executive Officer

Date: March 12, 2014

Exhibit
Number	Description

99.1	Earnings Release issued March 12, 2014, regarding financial and operational results for the three and nine months ended January 31, 2014

99.2	Certain supplemental information not included in the earnings release