OPERATING SEGMENTS

12 Months Ended

Apr. 30, 2014

OPERATING SEGMENTS [Abstract]

OPERATING SEGMENTS

NOTE 11 • OPERATING SEGMENTS

IRET reports its results in five reportable segments: multi-family residential; commercial office; commercial healthcare, including senior housing (formerly referred to as the commercial medical segment; the composition of this segment has not changed from prior periods); commercial industrial and commercial retail properties.  The Company's reportable segments are aggregations of similar properties.

Segment information in this report is presented based on net operating income ("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 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. The following tables present real estate revenues and net operating income for the fiscal years ended April 30, 2014, 2013 and 2012 from our five reportable segments, and reconcile net operating income of reportable segments to net income as reported in the consolidated financial statements. Segment assets are also reconciled to Total Assets as reported in the consolidated financial statements.

	(in thousands)
Year Ended April 30, 2014	Multi-Family  Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Total
Real estate revenue	$	102,059	$	77,440	$	65,258	$	6,894	$	13,831	$	265,482
Real estate expenses		46,138		38,190		17,127		2,043		4,989		108,487
Gain on involuntary conversion		2,480		0		0		0		0		2,480
Net operating income	$	58,401	$	39,250	$	48,131	$	4,851	$	8,842		159,475
Depreciation/amortization												(70,918)
Administrative, advisory and trustee fees												(10,743)
Other expenses												(2,132)
Impairment of real estate investments												(42,566)
Interest expense												(59,142)
Interest and other income												2,687
Loss before loss on sale of real estate and other investments and income from discontinued operations												(23,339)
Loss on sale of real estate and other investments												(51)
Loss from continuing operations												(23,390)
Income from discontinued operations												6,450
Net loss											$	(16,940)

	(in thousands)
Year Ended April 30, 2013	Multi-Family  Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Total
Real estate revenue	$	89,923	$	75,962	$	61,975	$	6,700	$	13,498	$	248,058
Real estate expenses		38,223		37,267		16,779		1,871		4,919		99,059
Gain on involuntary conversion		3,852		0		0		0		1,232		5,084
Net operating income	$	55,552	$	38,695	$	45,196	$	4,829	$	9,811		154,083
Depreciation/amortization												(62,333)
Administrative, advisory and trustee fees												(8,494)
Other expenses												(2,173)
Impairment of real estate investments												0
Interest expense												(61,154)
Interest and other income												748
Income from continuing operations												20,677
Income from discontinued operations												9,295
Net income											$	29,972

NOTE 11 • continued

	(in thousands)
Year Ended April 30, 2012	Multi-Family  Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Total
Real estate revenue	$	71,728	$	73,493	$	64,511	$	6,613	$	12,326	$	228,671
Real estate expenses		33,386		34,126		20,650		1,142		4,046		93,350
Gain on involuntary conversion		0		0		0		0		274		274
Net operating income	$	38,342	$	39,367	$	43,861	$	5,471	$	8,554		135,595
Depreciation/amortization												(56,650)
Administrative, advisory and trustee fees												(7,381)
Other expenses												(1,898)
Interest expense												(61,801)
Interest and other income												779
Income from continuing operations												8,644
Income from discontinued operations												1,062
Net income											$	9,706
Total property owned as of April 30, 2012	$	410,949	$	494,881	$	421,524	$	98,309	$	92,856	$	1,518,519

Segment Assets and Accumulated Depreciation

	(in thousands)
As of April 30, 2014	Multi-Family  Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Total
Segment assets
Property owned	$	753,731	$	544,628	$	525,028	$	55,375	$	117,269	$	1,996,031
Less accumulated depreciation		(158,100)		(121,892)		(105,843)		(10,198)		(28,255)		(424,288)
Total property owned	$	595,631	$	422,736	$	419,185	$	45,177	$	89,014	$	1,571,743
Real estate held for sale												2,951
Cash and cash equivalents												47,267
Other investments												329
Receivables and other assets												119,458
Development in progress												104,609
Unimproved land												22,864
Total Assets											$	1,869,221

	(in thousands)
As of April 30, 2013	Multi-Family  Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Total
Segment assets
Property owned	$	659,696	$	613,775	$	501,191	$	125,772	$	132,536	$	2,032,970
Less accumulated depreciation		(140,354)		(138,270)		(90,891)		(23,688)		(27,218)		(420,421)
Total property owned	$	519,342	$	475,505	$	410,300	$	102,084	$	105,318	$	1,612,549
Cash and cash equivalents												94,133
Other investments												639
Receivables and other assets												113,948
Development in progress												46,782
Unimproved land												21,503
Total Assets											$	1,889,554