Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

FOR THE QUARTER ENDED JULY 31, 2014

Minot, ND – September 9, 2014 – Investors Real Estate Trust (NYSE: IRET) reported financial and operating results today for the quarter ended July 31, 2014.

During the three month period ended July 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 decreased for the three month period ended July 31, 2014 compared to the same period of the prior fiscal year. We reported a net loss available to common shareholders for the first quarter of fiscal year 2015.

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

·	Revenues increased to $68.6 million from $65.1 million.

Total expenses increased by approximately $2.8 million, or 5.7%, in the three months ended July 31, 2014 compared to the three months ended July 31, 2013, from $49.1 million to $51.9 million. This increase was primarily due to non-cash impairment expense of $2.3 million recognized during the first quarter of fiscal year 2015.

·	FFO decreased to $18.9 million on approximately 131,332,000 weighted average shares and units outstanding, from $19.7 million on approximately 124,179,000 weighted average shares and units outstanding ($.14 per share and unit compared to $.16 per share and unit).

·	Net Loss Available to Common Shareholders, as computed under generally accepted accounting principles, was $3.0 million compared to $199,000 of Net Income Available to Common Shareholders in the same period of the prior fiscal year.

Significant Events and Transactions during the first quarter of fiscal year 2015:

·	The acquisition of two parcels of vacant land for possible future development: an approximately 35-acre parcel in Bismarck, North Dakota, for a purchase price of $4.3 million, and an approximately 10.5-acre parcel in Brooklyn Park, Minnesota, for a purchase price of $2.6 million.

·	The acquisition of two multi-family residential properties in Rapid City, South Dakota for a purchase price totaling $18.3 million, adding approximately 204 units to the Company's multi-family residential portfolio.

·	The disposition of a commercial office property in Edina, Minnesota, and a commercial industrial property in Eagan, Minnesota, for a total sale price of $6.7 million.

The placement into service of the Company's 44-unit Dakota Commons multi-family residential property in Williston, North Dakota, and of 54 units of the approximately 288-unit Renaissance Heights multi-family residential property in Williston, North Dakota, in which the Company has an approximately 70% interest.

The commencement of construction on the following development or redevelopment projects: 71 France (Phase I), an approximately 109-unit multi-family residential development in Edina, Minnesota; Edina 6565 France SMC III, an approximately 72,012 square foot medical office building in Edina, Minnesota; PrairieCare Medical, an approximately 75,000 square foot healthcare property in Brooklyn Park, Minnesota; Deer Ridge, an approximately 163-unit multi-family residential property in Jamestown, North Dakota; Minot Wells Fargo Bank, an approximately 4,998 square foot office property in Minot, North Dakota; and Roseville 3075 Long Lake Rd, an approximately 202,807 square foot industrial property in Roseville, Minnesota.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "Our results for the quarter continued to be solid, led by revenue increases from properties acquired and development projects placed in service in fiscal years 2015 and 2014. Rental revenue from our same-store properties also increased during the quarter, compared to the same quarter of the prior fiscal year, as high occupancy, specifically in our multi-family segment, provided revenue growth. We also continued to execute on our strategic plan, identifying properties for sale and disposing of older assets and reallocating the capital into accretive developments and multi-family acquisitions. During the quarter, we disposed of an office property in Edina, Minnesota, and an industrial property in Eagan, Minnesota and we placed in service our 44-unit Dakota Commons multi-family residential property in Williston, North Dakota. We also have substantial additional development activity underway, with over 1,400 multi-family residential units under construction or recently completed at the end of the quarter, and two commercial medical properties totaling approximately 147,000 square feet, in Edina, Minnesota and Brooklyn Park Minnesota, targeted for completion in the second quarter of fiscal year 2016. I am pleased with our continued progress during the quarter toward achieving our goal of an improved portfolio emphasizing our multi-family and healthcare segments."

______________________________

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 $895,000, or 2.3%, during the three-month period ended July 31, 2014, compared to the same period one year ago. Non-same-store properties accounted for approximately $794,000 of the increase, while NOI from same-store properties³ increased by approximately $101,000.

First quarter same-store NOI compared to the same quarter of the prior fiscal year increased primarily due to an increase in rental revenue of $918,000. Increased rental revenue was realized in all segments across the portfolio due to increased or stabilized occupancy with the largest increase occurring in the multi-family residential segment. This increase in rental revenue was offset by a decrease in tenant reimbursements of $671,000 which occurred primarily in our commercial office segment and by increased real estate expenses of $146,000 in all segments combined.

Occupancy as of July 31, 2014 compared to July 31, 2013 increased in four of our five reportable segments (multi-family residential, commercial healthcare, commercial industrial and commercial retail), decreasing slightly in our commercial office segment, on a same-store basis. Occupancy increased in all segments on an all-property basis. The increased occupancy in the commercial industrial segment is due to the lease-up of 90,363 square feet at the Company's Urbandale, Iowa property, which raised occupancy in that segment to 100%. The increased occupancy in the commercial retail segment is primarily due to the lease-up of an anchor location for 84,338 square feet at the Company's Jamestown Buffalo Mall property in Jamestown, North Dakota. 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.

Occupancy Levels on a Same-Store Property and All Property Basis:

	Same-Store Properties^(a)		All Properties
	As of July 31,		As of July 31,
Segments	Fiscal 2015	Fiscal 2014	Fiscal 2015	Fiscal 2014
Multi-Family Residential	93.8%	93.4%	93.4%	92.8%
Commercial Office	81.3%	81.5%	81.3%	80.8%
Commercial Healthcare	96.3%	95.4%	96.5%	95.4%
Commercial Industrial	100.0%	91.0%	100.0%	79.8%
Commercial Retail	86.3%	81.9%	86.3%	80.3%

(a)	Non-same-store properties consist of the following properties (re-development and in-service development properties are listed in bold type):
FY2015 -	Multi-Family Residential -	Colonial Villa, Burnsville, MN; Cypress Court, St. Cloud, MN; Dakota Commons, Williston, ND; Homestead Garden, Rapid City, SD; Landing at Southgate, Minot, ND; Pinecone Villas, Sartell, MN; Renaissance Heights I, Williston, ND; River Ridge, Bismarck, ND; Silver Springs, Rapid City, SD and Southpoint, Grand Forks, ND. Total number of units, 1,102.
	Commercial Healthcare -	Spring Creek Fruitland, Fruitland, ID. Total rentable square footage, 39,500.
	Commercial Industrial -	Roseville 3075 Long Lake Road, Roseville, MN. Total rentable square footage, 17,750.

FY2014 -	Multi-Family Residential -	Colonial Villa, Burnsville, MN Total number of units, 240.
	Commercial Industrial -	Roseville 3075 Long Lake Road, Roseville, MN. Total rentable square footage, 17,750.

Sold -	Commercial Office -	Dewey Hill Business Center, Edina, MN. NOI for the three months ended July 31, 2014 and 2013, respectively, $2 and $(1).
	Commercial Industrial -	Eagan 2785 & 2795 Hwy 55, Eagan, MN. NOI for the three months ended July 31, 2014 and 2013, respectively, $5 and $(51).
	Commercial Retail -	Weston Retail, Weston, WI. NOI for the three months ended July 31, 2014 and 2013, respectively, $0 and $(10).

______________________________

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.

Same-store 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 Placed in Service and Dispositions

During the first quarter of fiscal year 2015, the Company closed on its acquisitions of:

·	a 152-unit multi-family residential property in Rapid City, South Dakota, on approximately 10.0 acres of land, for a purchase price of $15.0 million, of which $9.9 million consisted of the assumption of existing debt, with the remainder paid in cash;

·	a 52-unit multi-family residential property in Rapid City, South Dakota, on approximately 2.0 acres of land, for a purchase price of $3.3 million, of which $2.3 million consisted of the assumption of existing debt, with the remainder paid in cash;

·	an approximately 35-acre parcel of vacant land in Bismarck, North Dakota, acquired for possible future development, for a purchase price of $4.3 million, paid in cash;

·	an approximately 10.5-acre parcel of vacant land in Brooklyn Park, Minnesota, acquired for development as the PrairieCare Medical project, for a purchase price of $2.6 million, paid in cash; and

·	an approximately 55.3% interest in a joint venture entity currently constructing the 71 France Phase I project in Edina, Minnesota, a 109-unit multi-family residential property.

Also during the first quarter of fiscal year 2015, the Company placed in service the Company's 44-unit Dakota Commons multi-family residential property in Williston, North Dakota, and 54 units of the approximately 288-unit Renaissance Heights multi-family residential property in Williston, North Dakota, in which the Company has an approximately 70% interest.

During the first quarter of fiscal year 2015, the Company sold one commercial office property and one commercial industrial property for a total sales price of $6.7 million. The Company also demolished a building at a commercial retail property in Weston, Wisconsin.

Strategic Dispositions

The Company recognized a non-cash impairment loss of $2.3 million and a non-cash loss on sale of $3.0 million in the first quarter of fiscal year 2015. Under the Strategic Plan approved by the Company's Board of Trustees, 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, the Company expects to identify properties in its commercial office, industrial and retail segments as candidates for disposition as the Company continues to execute on the Strategic Plan. In the first quarter of fiscal year 2015, the Company's revision of its holding period assumptions for 3 properties identified for disposition resulted in the above-referenced $2.3 million impairment charge, and the Company's disposition of 3 properties pursuant to the Strategic Plan resulted in the recognition of the above-referenced $3.0 million loss on sale.

Mortgages Payable

The Company's mortgages payable include a non-recourse $122.6 million CMBS loan, for which nine of the Company's commercial office properties serve as collateral and under which a special-purpose subsidiary of the Company is the borrower. This loan matures in October 2016. Because the loan amount significantly exceeds the Company's current estimate of the fair value of this nine-property portfolio, the Company contacted the master servicer to initiate discussions on various alternatives with regard to the loan. During the first quarter of fiscal year 2015, the Company was notified that the loan has been transferred to the special servicer. The Company cannot predict the outcome of discussions with the special servicer regarding the loan. Cash flow from the portfolio currently covers debt service on the loan, and to date the borrower is current on all payments under the loan.

Shareholder Equity, Distributions and Capital Structure

As of July 31, 2014, IRET had a total capitalization of $2.4 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 July 1, 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 173^rd consecutive distribution. IRET also paid, on June 30, 2014, 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.

iii

Distribution Declared. Subsequent to the end of the first quarter of fiscal year 2015, on September 3, 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 October 1, 2014 to common shareholders and unitholders of record on September 15, 2014. Also on September 3, 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 September 30, 2014 to Series A preferred shareholders of record on September 15, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable September 30, 2014 to Series B preferred shareholders of record on September 15, 2014.

Conference Call Information

The Conference Call for1st Quarter Earnings is scheduled for Wednesday, September 10, 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: 1-877-509-9785

International Toll Free Number: 1-412-902-4132

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

A webcast and transcript of the call will be archived on the "Investor Info/ 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 96 multi-family residential properties with 11,080 apartment units; and 64 commercial office properties, 67 commercial healthcare properties (including senior housing), 7 commercial industrial properties and 25 commercial retail properties with a total of approximately 10.2 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 2014 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	July 31, 2014		April 30, 2014
ASSETS
Real estate investments
Property owned	$	2,025,327	$	1,996,031
Less accumulated depreciation		(435,317)		(424,288)
		1,590,010		1,571,743
Development in progress		131,862		104,609
Unimproved land		24,772		22,864
Total real estate investments		1,746,644		1,699,216
Real estate held for sale		6,508		2,951
Cash and cash equivalents		60,620		47,267
Other investments		329		329
Receivable arising from straight-lining of rents, net of allowance of $717 and $796, respectively		27,286		27,096
Accounts receivable, net of allowance of $306 and $248, respectively		7,013		10,206
Real estate deposits		3,741		145
Prepaid and other assets		3,428		4,639
Intangible assets, net of accumulated amortization of $25,497 and $24,071, respectively		31,478		32,639
Tax, insurance, and other escrow		20,451		20,880
Property and equipment, net of accumulated depreciation of $2,140 and $2,041, respectively		1,641		1,681
Goodwill		1,951		1,100
Deferred charges and leasing costs, net of accumulated amortization of $22,237 and $21,068, respectively		20,677		21,072
TOTAL ASSETS	$	1,931,767	$	1,869,221
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	62,517	$	59,105
Revolving line of credit		35,500		22,500
Mortgages payable		1,017,574		997,689
Other		83,666		63,178
TOTAL LIABILITIES		1,199,257		1,142,472
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		6,313		6,203
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 July 31, 2014 and April 30, 2014, 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 July 31, 2014 and April 30, 2014, aggregate liquidation preference of $115,000,000)		111,357		111,357
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 114,762,774 shares issued and outstanding at July 31, 2014, and 109,019,341 shares issued and outstanding at April 30, 2014)		884,415		843,268
Accumulated distributions in excess of net income		(407,052)		(389,758)
Total Investors Real Estate Trust shareholders' equity		616,037		592,184
Noncontrolling interests – Operating Partnership (17,975,440 units at July 31, 2014 and 21,093,445 units at April 30, 2014)		84,250		105,724
Noncontrolling interests – consolidated real estate entities		25,910		22,638
Total equity		726,197		720,546
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	1,931,767	$	1,869,221

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

for the three months ended July 31, 2014 and 2013

	(in thousands, except per share data)
	Three Months Ended July 31
		2014		2013
REVENUE
Real estate rentals	$	57,126	$	53,623
Tenant reimbursement		10,711		11,475
TRS senior housing revenue		793		0
TOTAL REVENUE		68,630		65,098
EXPENSES
Depreciation/amortization related to real estate investments		16,184		18,056
Utilities		4,681		4,923
Maintenance		7,764		7,729
Real estate taxes		8,501		8,375
Insurance		1,736		1,301
Property management expenses		4,630		4,135
Other property expenses		206		177
TRS senior housing expenses		693		0
Administrative expenses		3,485		2,524
Advisory and trustee services		179		229
Other expenses		612		679
Amortization related to non-real estate investments		872		944
Impairment of real estate investments		2,320		0
TOTAL EXPENSES		51,863		49,072
Gain on involuntary conversion		0		966
Operating income		16,767		16,992
Interest expense		(14,664)		(14,596)
Interest income		560		188
Other income		131		22
Income before loss on sale of real estate and other investments and income from discontinued operations		2,794		2,606
Loss on sale of real estate and other investments		(2,993)		0
(Loss) income from continuing operations		(199)		2,606
Income from discontinued operations		0		610
NET (LOSS) INCOME		(199)		3,216
Net loss (income) attributable to noncontrolling interests – Operating Partnership		402		(50)
Net income attributable to noncontrolling interests – consolidated real estate entities		(354)		(88)
Net (loss) income attributable to Investors Real Estate Trust		(151)		3,078
Dividends to preferred shareholders		(2,879)		(2,879)
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(3,030)	$	199
(Loss) earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted	$	(.03)	$	.00
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.00		.00
NET (LOSS) INCOME PER COMMON SHARE – BASIC AND DILUTED	$	(.03)	$	.00
DIVIDENDS PER COMMON SHARE	$	.1300	$	.1300

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three months ended July 31, 2014 and 2013

Three Months Ended July 31,	(in thousands, except per share amounts)
Three Months Ended July 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	$	(151)				$	3,078
Less dividends to preferred shareholders		(2,879)					(2,879)
Net income available to common shareholders		(3,030)	111,039	$	(0.03)		199	102,358	$	0.00
Adjustments:
Noncontrolling interest – Operating Partnership		(402)	20,293				50	21,821
Depreciation and amortization⁽¹⁾		17,037					19,555
Impairment of real estate investments		2,320					1,803
Gain on depreciable property sales		2,993					(1,943)
Funds from operations applicable to common shares and Units	$	18,918	131,332	$	0.14	$	19,664	124,179	$	0.16

(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 $17,056 and $19,000, and depreciation/amortization from Discontinued Operations of $0 and $586, less corporate-related depreciation and amortization on office equipment and other assets of $19 and $31, for the three months ended July 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.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three months ended July 31, 2014 and 2013

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

Real estate revenue	$	27,727	$	18,846	$	16,298	$	1,570	$	3,396	$	67,837
Real estate expenses		12,221		9,327		4,416		450		1,104		27,518
Net operating income	$	15,506	$	9,519	$	11,882	$	1,120	$	2,292		40,319
TRS senior housing revenue												793
TRS senior housing expenses												(693)
Depreciation/amortization												(17,056)
Administrative, advisory and trustee services												(3,664)
Impairment of real estate investments												(2,320)
Other expenses												(612)
Interest expense												(14,664)
Interest and other income												691
Income before loss on sale of real estate and other investments												2,794
Loss on sale of real estate and other investments												(2,993)
Net (loss)											$	(199)

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

Real estate revenue	$	24,373	$	19,315	$	16,073	$	2,038	$	3,299	$	65,098
Real estate expenses		10,846		9,753		4,284		454		1,303		26,640
Gain on involuntary conversion		966		0		0		0		0		966
Net operating income	$	14,493	$	9,562	$	11,789	$	1,584	$	1,996		39,424
Depreciation/amortization												(19,000)
Administrative, advisory and trustee services												(2,753)
Other expenses												(679)
Interest expense												(14,596)
Interest and other income												210
Income from continuing operations												2,606
Income from discontinued operations												610
Net income											$	3,216

Exhibit 99.2

First Quarter Fiscal 2015

Supplemental Operating and Financial Data

for the Quarter Ended July 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

July 31, 2014

	Page

Company Background and Highlights	2

Property Cost by Segment and by State	5

Key Financial Data
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Funds From Operations	8
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)	9

Capital Analysis
Long-Term Mortgage Debt Analysis	10
Long-Term Mortgage Debt Detail	11-13
Capital Analysis	14

Portfolio Analysis
Same-Store Properties Net Operating Income Summary	15
Net Operating Income Detail	16-17
Same-Store Properties and Overall Occupancy Levels by Segment	18

Tenant Analysis
Multi-Family Residential Summary	19
Commercial Leasing Summary	20-22
10 Largest Commercial Tenants - Based on Annualized Base Rent	23
Commercial Lease Expirations	24

Growth and Strategy
Acquisition Summary	25
Development Placed in Service Summary	26
Development in Progress Summary	27

Definitions	28

Table of Contents

Company Background and Highlights

First Quarter Fiscal 2015

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 first quarter of fiscal year 2015, the Company closed on its acquisitions of:

·	a 152-unit multi-family residential property in Rapid City, South Dakota, on approximately 10.0 acres of land, for a purchase price of $15.0 million, of which $9.9 million consisted of the assumption of existing debt, with the remainder paid in cash;

·	a 52-unit multi-family residential property in Rapid City, South Dakota, on approximately 2.0 acres of land, for a purchase price of $3.3 million, of which $2.3 million consisted of the assumption of existing debt, with the remainder paid in cash;

·	an approximately 35-acre parcel of vacant land in Bismarck, North Dakota, acquired for possible future development, for a purchase price of $4.3 million, paid in cash;

·	an approximately 10.5-acre parcel of vacant land in Brooklyn Park, Minnesota, acquired for development as the PrairieCare Medical project, for a purchase price of $2.6 million, paid in cash; and

·	an approximately 55.3% interest in a joint venture entity currently constructing the 71 France Phase I project in Edina, Minnesota, a 109-unit multi-family residential property.

During the first quarter of fiscal year 2015, continued high occupancy levels in the Company's multi-family residential portfolio allowed the Company to implement selected rent increases, and the multi-family residential development projects placed in service (the Company's 44-unit Dakota Commons property in Williston, North Dakota, and 54 units in the approximately 288-unit Renaissance Heights property in Williston, North Dakota, in which the Company has an approximately 70% interest) experienced strong initial demand. Dakota Commons was 40.9% leased as of July 31, 2014, and 67 of the 108 completed Renaissance Heights units were leased as of July 31, 2014. The Company expects to see continued favorable results in this segment in the remainder of fiscal year 2015; however, the Company's ability to maintain occupancy levels and selectively raise rents remains dependent on continued healthy employment and wage growth. The Company also continues to observe considerable multi-family development activity in the Company's markets, and as this new construction is completed and leased, the Company will experience increased competition for tenants.

The Company's commercial office segment, mostly concentrated in Minnesota, continued to be affected by a number of adverse macro conditions, including real wage growth that remains mostly stagnant. Although overall employment levels in the office sector are 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. The Company expects this erosion in demand for office space to continue, which we expect will impede increases on rental rates in our commercial office portfolio. As a result, although the Company has experienced some modest growth in occupancy levels during the first quarter of fiscal year 2015 compared to the first quarter of fiscal year 2014, the Company continues to expect a slow and uneven recovery in its office segment.

The Company's healthcare segment consists of medical office properties and senior housing facilities. The medical office sector remains stable with modest increases in both occupancy and rents. The Company's senior housing assets continue to benefit from the strengthening 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.

Both the retail and industrial property markets continue to show signs of revival. In the industrial segment, a relative lack of new supply is leading to vacant industrial space being absorbed, with industrial rents in certain markets rising slightly to reflect this lack of new supply, and tenant concessions dissipating.

The Company plans to continue in the remainder of fiscal year 2015 its selective disposition of assets in non-core markets, particularly office and retail segment assets, and intends to use the proceeds from these dispositions to continue portfolio deleveraging and for developing and acquiring high-quality assets in the Company's multi-family and healthcare segments.

In the first quarter of fiscal year 2015, IRET paid its 173^rd consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on July 1, 2014. Subsequent to the end of the first quarter of fiscal year 2015, on September 3, 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 October 1, 2014 to common shareholders and unitholders of record on September 15, 2014. Also on September 3, 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 September 30, 2014 to Series A preferred shareholders of record on September 15, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable September 30, 2014 to Series B preferred shareholders of record on September 15, 2014.

As of July 31, 2014, IRET owns a diversified portfolio of 259 properties consisting of 96 multi-family residential properties, 64 commercial office properties, 67 commercial healthcare properties (including senior housing), 7 commercial industrial properties and 25 commercial retail properties. IRET's common shares are publicly traded on the New York Stock Exchange (NYSE: IRET).

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Company Snapshot

(as of July 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	259
Total Square Feet
(commercial properties)	10.2 million
Total Units
(multi-family residential properties)	11,080
Common Shares Outstanding (thousands)	114,763
Limited Partnership Units Outstanding (thousands)	17,975
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	6.1%
Total Capitalization (see p.14 for detail)	$2.4 billion

Investor Information

(as of July 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

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Common Share Data (NYSE: IRET)

	1^st Quarter Fiscal Year 2015		4^th Quarter Fiscal Year 2014		3^rd Quarter Fiscal Year 2014		2^nd Quarter Fiscal Year 2014		1^st Quarter Fiscal Year 2014
High Closing Price	$	9.21	$	9.06	$	8.94	$	9.03	$	9.77
Low Closing Price	$	8.52	$	8.34	$	8.24	$	8.05	$	8.09
Average Closing Price	$	8.82	$	8.71	$	8.58	$	8.41	$	9.03
Closing Price at end of quarter	$	8.52	$	8.72	$	8.69	$	8.62	$	8.64
Common Share Distributions—annualized	$	0.520	$	0.520	$	0.520	$	0.520	$	0.520
Closing Dividend Yield - annualized		6.1%		6.0%		6.0%		6.0%		6.0%
Closing common shares outstanding (thousands)		114,763		109,019		106,937		105,554		104,226
Closing limited partnership units outstanding (thousands)		17,975		21,094		21,799		21,836		21,849
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	1,130,928	$	1,134,585	$	1,118,716	$	1,098,102	$	1,089,288

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 2014 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

First Quarter Fiscal 2015 Developments in Progress




Commons At Southgate 1909 31th Ave. SW Minot, ND 58701	Cypress Court II 906 Cypress Road St. Cloud, MN 56303



Red 20 514 1^st Ave. NE Minneapolis, MN 55403	Renaissance Heights I 4615 11^th Ave. W Williston, ND 58801

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First Quarter Fiscal 2015

Percentage of Total Property Cost by State

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
ASSETS
Real estate investments
Property owned	$	2,025,327	$	1,996,031	$	2,042,290	$	2,032,747	$	2,016,523
Less accumulated depreciation		(435,317)		(424,288)		(439,233)		(431,318)		(429,376)
		1,590,010		1,571,743		1,603,057		1,601,429		1,587,147
Development in progress		131,862		104,609		89,086		90,052		77,396
Unimproved land		24,772		22,864		21,498		21,619		20,774
Total real estate investments		1,746,644		1,699,216		1,713,641		1,713,100		1,685,317
Real estate held for sale		6,508		2,951		0		2,620		3,969
Cash and cash equivalents		60,620		47,267		53,494		68,727		93,193
Other investments		329		329		643		642		640
Receivable arising from straight-lining of rents, net of allowance		27,286		27,096		27,026		26,336		26,671
Accounts receivable, net of allowance		7,013		10,206		15,540		6,541		8,370
Real estate deposits		3,741		145		3,502		230		489
Prepaid and other assets		3,428		4,639		8,197		7,605		4,741
Intangible assets, net of accumulated amortization		31,478		32,639		34,008		35,625		36,989
Tax, insurance, and other escrow		20,451		20,880		24,550		11,864		12,344
Property and equipment, net of accumulated depreciation		1,641		1,681		1,719		1,191		1,217
Goodwill		1,951		1,100		1,100		1,100		1,100
Deferred charges and leasing costs, net of accumulated amortization		20,677		21,072		21,138		20,666		21,602
TOTAL ASSETS	$	1,931,767	$	1,869,221	$	1,904,558	$	1,896,247	$	1,896,642

LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	62,517	$	59,105	$	54,337	$	57,453	$	52,563
Revolving line of credit		35,500		22,500		22,500		10,000		10,000
Mortgages payable		1,017,574		997,689		1,008,524		1,021,170		1,030,407
Other		83,666		63,178		47,767		31,689		32,366
TOTAL LIABILITIES		1,199,257		1,142,472		1,133,128		1,120,312		1,125,336

REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		6,313		6,203		6,113		6,044		5,949
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		884,415		843,268		829,816		818,516		807,928
Accumulated distributions in excess of net income		(407,052)		(389,758)		(344,294)		(331,116)		(323,406)
Total Investors Real Estate Trust shareholders' equity		616,037		592,184		624,196		626,074		623,196
Noncontrolling interests – Operating Partnership		84,250		105,724		117,803		120,678		122,334
Noncontrolling interests – consolidated real estate entities		25,910		22,638		23,318		23,139		19,827
Total equity		726,197		720,546		765,317		769,891		765,357
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	1,931,767	$	1,869,221	$	1,904,558	$	1,896,247	$	1,896,642

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Three Months Ended
OPERATING RESULTS	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
Real estate revenue	$	67,837	$	66,983	$	67,629	$	65,772	$	65,098
Real estate expenses		27,518		29,589		25,927		26,331		26,640
Gain on involuntary conversion		0		0		1,514		0		966
Net operating income		40,319		37,394		43,216		39,441		39,424
TRS senior housing revenue		793		0		0		0		0
TRS senior housing expenses		(693)		0		0		0		0
Depreciation/amortization		(17,056)		(17,262)		(17,489)		(17,167)		(19,000)
Administrative expenses, advisory and trustee services		(3,664)		(2,801)		(2,662)		(2,527)		(2,753)
Other expenses		(612)		(502)		(273)		(678)		(679)
Impairment of real estate investments		(2,320)		(37,768)		(4,798)		0		0
Interest expense		(14,664)		(14,617)		(15,130)		(14,799)		(14,596)
Interest and other income		691		1,085		740		652		210
(Loss) income before loss on sale of real estate and other investments and income from discontinued operations		2,794		(34,471)		3,604		4,922		2,606
Loss on sale of real estate and other investments		(2,993)		(51)		0		0		0
(Loss) income from continuing operations		(199)		(34,522)		3,604		4,922		2,606
Income from discontinued operations		0		0		465		5,375		610
Net (loss) income	$	(199)	$	(34,522)	$	4,069	$	10,297	$	3,216

Net loss (income) attributable to noncontrolling interest – Operating Partnership		402		6,082		(130)		(1,226)		(50)
Net income attributable to noncontrolling interests – consolidated real estate entities		(354)		(102)		(436)		(284)		(88)
Net (loss) income attributable to Investors Real Estate Trust		(151)		(28,542)		3,503		8,787		3,078
Dividends to preferred shareholders		(2,879)		(2,878)		(2,879)		(2,878)		(2,879)
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(3,030)	$	(31,420)	$	624	$	5,909	$	199

Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	(.03)	$	(.29)	$	.00	$	.01	$	.00
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.00		.00		.00		.05		.00
Net income per common share – basic & diluted	$	(.03)	$	(.29)	$	.00	$	.06	$	.00

Percentage of Revenues
Real estate expenses		41.1%		44.2%		38.3%		40.0%		40.9%
Depreciation/amortization		24.9%		25.8%		25.9%		26.1%		29.2%
General and administrative		5.3%		4.2%		3.9%		3.8%		4.2%
Interest		21.4%		21.8%		22.4%		22.5%		22.4%
Income from discontinued operations		0.0%		0.0%		0.7%		8.2%		0.9%
Net (loss) income		(0.3)%		(51.5)%		6.0%		15.7%		4.9%

Ratios
Adjusted EBITDA⁽¹⁾/Interest expense		2.29x		2.26x		2.13x		2.37x		2.23x
Adjusted EBITDA⁽¹⁾/Interest expense plus preferred distributions		1.94x		1.90x		1.81x		2.00x		1.88x

(1)	See Definitions on page 28. Adjusted EBITDA is a non-GAAP measure; see page 9 for a reconciliation of Adjusted EBITDA to net income.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS (unaudited)

(in thousands, except per share and unit data)

	Three Months Ended
	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
Funds From Operations⁽¹⁾
Net (loss) income attributable to Investors Real Estate Trust	$	(151)	$	(28,542)	$	3,503	$	8,787	$	3,078
Less dividends to preferred shareholders		(2,879)		(2,878)		(2,879)		(2,878)		(2,879)
Net (loss) income available to common shareholders		(3,030)		(31,420)		624		5,909		199
Adjustments:
Noncontrolling interests – Operating Partnership		(402)		(6,082)		130		1,226		50
Depreciation and amortization		17,037		17,239		17,546		17,490		19,555
Impairment of real estate investments		2,320		37,768		4,798		57		1,803
(Loss) gain on depreciable property sales		2,993		51		(358)		(4,698)		(1,943)
Funds from operations applicable to common shares and Units	$	18,918	$	17,556	$	22,740	$	19,984	$	19,664

FFO per share and unit - basic and diluted	$	0.14	$	0.14	$	0.17	$	0.16	$	0.16

Adjusted funds from operations⁽¹⁾
Funds from operations applicable to common shares and Units	$	18,918	$	17,556	$	22,740	$	19,984	$	19,664
Adjustments:
Tenant improvements at same-store⁽²⁾ properties		(2,169)		(1,610)		(4,205)		(1,841)		(2,343)
Leasing costs at same-store properties⁽²⁾		(578)		(1,038)		(1,219)		(735)		(916)
Recurring capital expenditures⁽¹⁾⁽²⁾		(1,386)		(1,118)		(1,093)		(1,364)		(1,401)
Straight-line rents		(268)		(70)		(818)		(666)		(652)
Non-real estate depreciation		99		102		99		82		85
Share-based compensation expense		1,029		228		228		229		229
Gain on involuntary conversion		0		0		(1,514)		0		(966)
Adjusted funds from operations applicable to common shares and Units	$	15,645	$	14,050	$	14,218	$	15,689	$	13,700

AFFO per share and unit - basic and diluted	$	0.12	$	0.11	$	0.11	$	0.12	$	0.11

Weighted average shares and units		131,332		129,244		128,027		126,713		124,179

(1)	See Definitions on page 28.

(2)	Quarterly information is for properties in the same-store pool at that point in time; consequently, quarterly numbers may not total to year-to-date numbers.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Three Months Ended
	7/31/2014		4/30/2014		1/31/2014		10/31/2013		07/31/2013
Adjusted EBITDA⁽¹⁾
Net (loss) income attributable to Investors Real Estate Trust	$	(151)	$	(28,542)	$	3,503	$	8,787	$	3,078
Adjustments:
Noncontrolling interests – Operating Partnership		(402)		(6,082)		130		1,226		50
(Loss) income before noncontrolling interests – Operating Partnership		(553)		(34,624)		3,633		10,013		3,128
Add:
Interest expense		14,664		14,617		15,159		14,904		14,883
Depreciation/amortization related to real estate investments		16,198		16,449		16,825		16,675		18,593
Amortization related to non-real estate investments		872		826		758		839		993
Amortization related to real estate revenues⁽²⁾		65		66		62		59		54
Impairment of real estate investments		2,320		37,768		4,798		57		1,803
Less:
Interest income		(560)		(562)		(573)		(585)		(188)
(Gain) loss on sale of real estate and other investments		2,993		51		(358)		(4,698)		(1,943)
Gain on involuntary conversion		0		0		(1,514)		0		(966)
Adjusted EBITDA	$	35,999	$	34,591	$	38,790	$	37,264	$	36,357

(1)	Definitions on page 28.

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

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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
2015 (remainder)	$	50,617	$	0	$	50,617	5.47%	5.0%
2016		71,320		0		71,320	5.48%	7.0%
2017		183,126		15,000		198,126	5.68%	19.4%
2018		74,885		22,000		96,885	4.18%	9.5%
2019		88,058		5,435		93,493	5.80%	9.2%
2020		110,402		2,997		113,399	5.82%	11.1%
2021		130,649		0		130,649	5.30%	12.9%
2022		131,473		0		131,473	5.61%	12.9%
2023		37,736		0		37,736	4.25%	3.7%
2024		73,734		0		73,734	4.32%	7.3%
Thereafter		20,142		0		20,142	5.03%	2.0%
Total maturities	$	972,142	$	45,432	$	1,017,574	5.32%	100.0%

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

	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
Balances Outstanding
Mortgage
Fixed rate	$	972,142	$	977,224	$	1,000,222	$	1,012,813	$	1,014,632
Variable rate		45,432		20,465		8,302		8,357		15,775
Mortgage total	$	1,017,574	$	997,689	$	1,008,524	$	1,021,170	$	1,030,407

Weighted Average Interest Rates
Secured		5.32%		5.37%		5.48%		5.50%		5.54%

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total⁽¹⁾

Multi-Family Residential
Evergreen II - Isanti, MN	11/1/2014	$	2,098	$	0	$	0	$	0	$	0	$	2,098
Campus Center - St Cloud, MN	6/1/2015		0		1,186		0		0		0		1,186
Campus Knoll - St Cloud, MN	6/1/2015		0		791		0		0		0		791
Landmark - Grand Forks, ND	8/24/2015		0		1,622		0		0		0		1,622
Regency Park Estates - St Cloud, MN	1/1/2016		0		6,791		0		0		0		6,791
Pebble Springs – Bismarck, ND	7/1/2016		0		0		770		0		0		770
Southview – Minot, ND	7/1/2016		0		0		1,053		0		0		1,053
Homestead Gardens I – Rapid City, SD	7/11/16		0		0		7,147		0		0		7,147
River Ridge – Bismarck, ND	6/30/17		0		0		0		13,200		0		13,200
Williston Garden – Williston, ND	10/1/2017		0		0		0		11,823		0		11,823
Ponds – Sartell, MN	11/1/2017		0		0		0		3,926		0		3,926
Summary of Debt due after Fiscal 2018			0		0		0		0		361,291		361,291
Sub-Total Multi-Family Residential		$	2,098	$	10,390	$	8,970	$	28,949	$	361,291	$	411,698

Commercial Office
Burnsville Bluffs II - Burnsville, MN	8/8/2014	$	1,669	$	0	$	0	$	0	$	0	$	1,669
Plymouth IV - Plymouth, MN	8/8/2014		3,078		0		0		0		0		3,078
Plymouth V - Plymouth, MN	8/8/2014		3,597		0		0		0		0		3,597
Plaza VII - Boise, ID ⁽²⁾	9/1/2014		914		0		0		0		0		914
Crosstown Centre - Eden Prairie, MN	12/1/2014		3,144		0		0		0		0		3,144
Crosstown Centre - Eden Prairie, MN	12/1/2014		9,433		0		0		0		0		9,433
Northgate I - Maple Grove, MN	12/10/2014		4,928		0		0		0		0		4,928
Plymouth I - Plymouth, MN	12/10/2014		1,105		0		0		0		0		1,105
Plymouth II - Plymouth, MN	12/10/2014		1,105		0		0		0		0		1,105
Plymouth III - Plymouth, MN	12/10/2014		1,359		0		0		0		0		1,359
Benton Business Park - Sauk Rapids, MN	1/1/2015		473		0		0		0		0		473
West River Business Park - Waite Park, MN	1/1/2015		473		0		0		0		0		473
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		7,933		0		0		0		0		7,933
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		7,525		0		0		0		0		7,525
US Bank Financial Center - Bloomington, MN	7/1/2015		0		13,022		0		0		0		13,022
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		571		0		0		0		571
Westgate I - Boise, ID	8/1/2015		0		1,147		0		0		0		1,147
Westgate II - Boise, ID	8/1/2015		0		2,807		0		0		0		2,807
Brook Valley I - LaVista, NE	1/1/2016		0		1,245		0		0		0		1,245
Spring Valley IV - Omaha, NE	1/1/2016		0		741		0		0		0		741
Spring Valley V - Omaha, NE	1/1/2016		0		815		0		0		0		815
Spring Valley X - Omaha, NE	1/1/2016		0		756		0		0		0		756
Spring Valley XI - Omaha, NE	1/1/2016		0		741		0		0		0		741
American Corporate Center – Mendota Heights, MN	9/1/2016		0		0		8,764		0		0		8,764
Mendota Office Center I – Mendota Heights, MN	9/1/2016		0		0		3,774		0		0		3,774
Mendota Office Center II - Mendota Heights, MN	9/1/2016		0		0		5,576		0		0		5,576
Mendota Office Center III - Mendota Heights, MN	9/1/2016		0		0		3,832		0		0		3,832

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total⁽¹⁾

Commercial Office - continued
Mendota Office Center IV - Mendota Heights, MN	9/1/2016	$	0	$	0	$	4,556	$	0	$	0	$	4,556
Corporate Center West – Omaha, NE⁽³⁾	10/6/2016		0		0		17,315		0		0		17,315
Farnam Executive Center – Omaha, NE⁽³⁾	10/6/2016		0		0		12,160		0		0		12,160
Flagship – Eden Prairie, MN⁽³⁾	10/6/2016		0		0		21,565		0		0		21,565
Gateway Corporate Center – Woodbury, MN⁽³⁾	10/6/2016		0		0		8,700		0		0		8,700
Miracle Hills One – Omaha, NE⁽³⁾	10/6/2016		0		0		8,895		0		0		8,895
Pacific Hills – Omaha, NE⁽³⁾	10/6/2016		0		0		16,770		0		0		16,770
Riverport – Maryland Heights, MO⁽³⁾	10/6/2016		0		0		19,690		0		0		19,690
Timberlands – Leawood, KS⁽³⁾	10/6/2016		0		0		13,155		0		0		13,155
Woodlands Plaza IV – Maryland Heights, MO⁽³⁾	10/6/2016		0		0		4,360		0		0		4,360
2030 Cliff Road – Eagan, MN	1/11/2017		0		0		930		0		0		930
TCA Building – Eagan, MN	2/3/2017		0		0		7,500		0		0		7,500
Interlachen Corporate Center – Eagan, MN	6/30/17		0		0		0		8,800		0		8,800
Plymouth 5095 Nathan Lane – Plymouth, MN	11/1/2017		0		0		0		1,173		0		1,173
Prairie Oak Business Center – Eden Prairie, MN	11/1/2017		0		0		0		3,192		0		3,192
7800 West Brown Deer Road – Milwaukee, WI	4/1/2018		0		0		0		10,471		0		10,471
Summary of Debt due after Fiscal 2018			0		0		0		0		77,775		77,775
Sub-Total Commercial Office		$	46,736	$	21,845	$	157,542	$	23,636	$	77,775	$	327,534

Commercial Healthcare
Garden View Medical - St Paul, MN	8/1/2015	$	0	$	644	$	0	$	0	$	0	$	644
Edina 6363 France Medical - St Paul, MN	8/6/2015		0		9,765		0		0		0		9,765
2800 Medical Building - Minneapolis, MN	9/1/2015		0		5,152		0		0		0		5,152
2828 Medical Building - Minneapolis, MN	9/1/2015		0		8,174		0		0		0		8,174
Edina 6405 France Medical - Edina, MN	9/1/2015		0		8,393		0		0		0		8,393
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		6,167		0		0		0		6,167
Airport Medical – Bloomington, MN	6/1/2016		0		0		687		0		0		687
Park Dental – Brooklyn Center, MN	6/1/2016		0		0		394		0		0		394
Edgewood Vista – Fargo, ND	10/25/2016		0		0		12,276		0		0		12,276
Sartell 2000 23^rd St S – Sartell, MN	12/1/2016		0		0		2,247		0		0		2,247
Billings 2300 Grant Road – Billings, MT	12/31/2016		0		0		1,394		0		0		1,394
Missoula 3050 Great Northern Ave – Missoula, MT	12/31/2016		0		0		1,452		0		0		1,452
High Pointe Health Campus – Lake Elmo, MN	4/1/2017		0		0		7,500		0		0		7,500
Edgewood Vista – Billings, MT	4/10/2017		0		0		1,829		0		0		1,829
Edgewood Vista – East Grand Forks, MN	4/10/2017		0		0		2,787		0		0		2,787
Edgewood Vista – Sioux Falls, SD	4/10/2017		0		0		1,048		0		0		1,048
Edgewood Vista – Fremont, NE	3/1/2018		0		0		0		567		0		567
Edgewood Vista – Hastings, NE	3/1/2018		0		0		0		584		0		584
Edgewood Vista – Hermantown I, MN	3/1/2018		0		0		0		15,668		0		15,668
Edgewood Vista – Kalispell, MT	3/1/2018		0		0		0		586		0		586
Edgewood Vista – Missoula, MT	3/1/2018		0		0		0		832		0		832
Edgewood Vista – Omaha, NE	3/1/2018		0		0		0		370		0		370
Edgewood Vista – Virginia, MN	3/1/2018		0		0		0		13,328		0		13,328
St Michael Clinic – St. Michael, MN	4/1/2018		0		0		0		1,837		0		1,837
Summary of Debt due after Fiscal 2018			0		0		0		0		137,121		137,121
Sub-Total Commercial Healthcare		$	0	$	38,295	$	31,614	$	33,772	$	137,121	$	240,802

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total⁽¹⁾
Commercial Industrial
Stone Container - Fargo, ND	12/1/2015	$	0	$	353	$	0	$	0	$	0	$	353
Stone Container - Fargo, ND	12/1/2015		0		437		0		0		0		437
Urbandale 3900 106^th Street – Urbandale, IA	7/5/2017		0		0		0		10,528		0		10,528
Summary of Debt due after Fiscal 2018			0		0		0		0		2,280		2,280
Sub-Total Commercial Industrial		$	0	$	790	$	0	$	10,528	$	2,280	$	13,598

Commercial Retail
Jamestown Buffalo Mall - Jamestown, ND	9/1/2014		56		0		0		0		0		56
Fargo Express Center - Fargo, ND	10/1/2014		868		0		0		0		0		868
Lakeville Strip Center - Lakeville, MN	10/1/2014		859		0		0		0		0		859
Summary of Debt due after Fiscal 2018			0		0		0		0		22,159		22,159
Sub-Total Commercial Retail		$	1,783	$	0	$	0	$	0	$	22,159	$	23,942

Total		$	50,617	$	71,320	$	197,674	$	96,885	$	600,272	$	1,016,768

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 July 31, 2014, the Company had borrowings of $35.5 million outstanding under this line. Construction loans and other debt totaled $83.6 million as of July 31, 2014.

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

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

(3)

Amount is part of a non-recourse $122.6 million CMBS loan, for which nine of the Company's commercial office properties serve as collateral and under which a special-purpose subsidiary of the Company is the borrower. This loan matures in October 2016. Because the loan amount significantly exceeds the Company's current estimate of the fair value of this nine-property portfolio, the Company contacted the master servicer to initiate discussions on various alternatives with regard to the loan. During the first quarter of fiscal year 2015, the Company was notified that the loan has been transferred to the special servicer. The Company cannot predict the outcome of discussions with the special servicer regarding the loan. Cash flow from the portfolio currently covers debt service on the loan, and to date the borrower is current on all payments under the loan.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
Equity Capitalization
Common shares outstanding		114,763		109,019		106,937		105,554		104,226
Operating partnership (OP) units outstanding		17,975		21,094		21,799		21,836		21,849
Total common shares and OP units outstanding		132,738		130,113		128,736		127,390		126,075
Market price per common share (closing price at end of period)	$	8.52	$	8.72	$	8.69	$	8.62	$	8.64
Equity capitalization-common shares and OP units	$	1,130,928	$	1,134,585	$	1,118,716	$	1,098,102	$	1,089,288
Recorded book value of preferred shares	$	138,674	$	138,674	$	138,674	$	138,674	$	138,674
Total equity capitalization	$	1,269,602	$	1,273,259	$	1,257,390	$	1,236,776	$	1,227,962

Debt Capitalization
Total debt	$	1,135,892	$	1,083,321	$	1,078,741	$	1,062,788	$	1,072,696
Total capitalization	$	2,405,494	$	2,356,580	$	2,336,131	$	2,299,564	$	2,300,658

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

	Three Months Ended
	7/31/2014		4/30/2014		1/31/2014		10/31/2013		7/31/2013
Earnings to fixed charges⁽¹⁾		(2)		(3)		1.15x		1.25x		1.13x
Earnings to combined fixed charges and preferred distributions⁽¹⁾		(2)		(3)		0.97x		1.05x		0.95x
Debt service coverage ratio⁽¹⁾		1.57x		1.53x		1.46x		1.64x		1.54x

Distribution Data
Common shares and units outstanding at record date		130,795		129,372		128,004		126,629		123,976
Total common distribution paid	$	17,004	$	16,819	$	16,639	$	16,461	$	16,093
Common distribution per share and unit	$	.1300	$	.1300	$	.1300	$	.1300	$	.1300
Payout ratio (FFO per share and unit basis)⁽¹⁾		92.9%		92.9%		76.5%		81.3%		81.3%
Payout ratio (AFFO per share and unit basis)⁽¹⁾		108.3%		118.2%		118.2%		108.3%		118.2%

(1)	See Definitions on page 28.

(2)

Due to non-cash asset impairment and loss on sale charges of $5.3 million in the three months ended July 31, 2014, earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $1.6 million and $4.5 million, respectively. Excluding the asset impairment and loss on sale charges, the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred distributions would have been 1.24 and 1.05, respectively, for the three months ended July 31, 2014.

(3)

Due to non-cash asset impairment charges of $37.8 million in the three months ended April 30, 2014, earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $35.3 million and $38.2 million, respectively. Excluding the asset impairment charge, the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred distributions would have been 1.16 and 0.98, respectively, for the three months ended April 30, 2014.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

SAME-STORE PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Same-Store Properties⁽¹⁾
	Three Months Ended July 31,
Segment	2014		2013		% Change
Multi-Family Residential	$	13,396	$	13,468	(0.5)%
Commercial Office		9,517		9,563	(0.5)%
Commercial Healthcare		11,766		11,789	(0.2)%
Commercial Industrial		1,152		1,196	(3.7)%
Commercial Retail		2,292		2,006	14.3%
	$	38,123	$	38,022	0.3%

(1)	See list of properties excluded from same-store properties on page iii.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 31, 2014
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Same-store⁽¹⁾	$	24,547	$	18,837	$	16,130	$	1,497	$	3,396	$	0	$	64,407
Non-same-store		3,180		9		168		73		0		0		3,430
Total		27,727		18,846		16,298		1,570		3,396		0		67,837

Real estate expenses
Same-store⁽¹⁾		11,151		9,320		4,364		345		1,104		0		26,284
Non-same-store		1,070		7		52		105		0		0		1,234
Total		12,221		9,327		4,416		450		1,104		0		27,518

Net operating income (NOI)
Same-store⁽¹⁾		13,396		9,517		11,766		1,152		2,292		0		38,123
Non-same-store		2,110		2		116		(32)		0		0		2,196
Net operating income	$	15,506	$	9,519	$	11,882	$	1,120	$	2,292	$	0	$	40,319

Reconciliation of NOI to net income (loss) available to common shareholders
TRS senior housing revenue	$	0	$	0	$	0	$	0	$	0	$	793	$	793
TRS senior housing expenses		0		0		0		0		0		(693)		(693)
Depreciation/amortization		(5,925)		(4,816)		(5,040)		(391)		(800)		(84)		(17,056)
Administrative, advisory and trustee fees		0		0		0		0		0		(3,664)		(3,664)
Impairment of real estate investments		0		0		0		0		0		(2,320)		(2,320)
Other expenses		0		0		0		0		0		(612)		(612)
Interest expense		(5,445)		(5,078)		(3,692)		(202)		(349)		102		(14,664)
Interest and other income		0		0		0		0		0		691		691
Income (loss) before loss on sale of real estate and other investments		4,136		(375)		3,150		527		1,143		(5,787)		2,794
Loss on sale of real estate and other investments		0		0		0		0		0		(2,993)		(2,993)
Net income (loss)		4,136		(375)		3,150		527		1,143		(8,780)		(199)
Net loss attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		402		402
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(354)		(354)
Net income (loss) attributable to Investors Real Estate Trust		4,136		(375)		3,150		527		1,143		(8,732)		(151)
Dividends to preferred shareholders		0		0		0		0		0		(2,879)		(2,879)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	4,136	$	(375)	$	3,150	$	527	$	1,143	$	(11,611)	$	(3,030)

(1)	See list of properties excluded from same-store properties on page iii.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended July 31, 2013
	Reporting Segments
	Multi-Family Residential		Commercial Office		Commercial Healthcare		Commercial Industrial		Commercial Retail		Corporate and Other		Total
Real estate rental revenue
Same-store⁽¹⁾	$	24,007	$	19,262	$	16,073	$	1,518	$	3,299	$	0	$	64,159
Non-same-store		366		53		0		520		0		0		939
Total		24,373		19,315		16,073		2,038		3,299		0		65,098

Real estate expenses
Same-store⁽¹⁾		10,539		9,699		4,284		322		1,293		0		26,137
Non-same-store		307		54		0		132		10		0		503
Total		10,846		9,753		4,284		454		1,303		0		26,640

Gain on involuntary conversion
Same-store⁽¹⁾		0		0		0		0		0		0		0
Non-same-store		966		0		0		0		0		0		966
Total		966		0		0		0		0		0	9	966

Net operating income (NOI)
Same-store⁽¹⁾		13,468		9,563		11,789		1,196		2,006		0		38,022
Non-same-store		1,025		(1)		0		388		(10)		0		1,402
Net operating income	$	14,493	$	9,562	$	11,789	$	1,584	$	1,996	$	0	$	39,424

Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(5,471)	$	(5,396)	$	(6,712)	$	(523)	$	(813)	$	(85)	$	(19,000)
Administrative, advisory and trustee fees		0		0		0		0		0		(2,753)		(2,753)
Other expenses		0		0		0		0		0		(679)		(679)
Interest expense		(5,336)		(5,106)		(3,628)		(331)		(506)		311		(14,596)
Interest and other income		0		0		0		0		0		210		210
Income (loss) from continuing operations		3,686		(940)		1,449		730		677		(2,996)		2,606
Income (loss) from discontinued operations		51		(282)		0		1,233		(392)		0		610
Net income (loss)		3,737		(1,222)		1,449		1,963		285		(2,996)		3,216
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(50)		(50)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(88)		(88)
Net income (loss) attributable to Investors Real Estate Trust		3,737		(1,222)		1,449		1,963		285		(3,134)		3,078
Dividends to preferred shareholders		0		0		0		0		0		(2,879)		(2,879)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	3,737	$	(1,222)	$	1,449	$	1,963	$	285	$	(6,013)	$	199

(1)	See list of properties excluded from same-store properties on page iii.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

SAME-STORE PROPERTIES AND ALL PROPERTIES OCCUPANCY LEVELS BY SEGMENT

1st Quarter Fiscal 2015 vs. 1st Quarter Fiscal 2014

Segments	Same-Store Properties		All Properties
	1st Quarter	1st Quarter	1st Quarter	1st Quarter
	Fiscal 2015	Fiscal 2014	Fiscal 2015	Fiscal 2014
Multi-Family Residential	93.8%	93.4%	93.4%	92.8%
Commercial Office	81.3%	81.5%	81.3%	80.8%
Commercial Healthcare	96.3%	95.4%	96.5%	95.4%
Commercial Industrial	100.0%	91.0%	100.0%	79.8%
Commercial Retail	86.3%	81.9%	86.3%	80.3%

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY⁽²⁾

	Three Months Ended
	7/31/2014		4/30/2014			1/31/2014		10/31/2013		7/31/2013
Number of Units		11,080		10,779			10,725		10,705		10,351
Average Investment Per Unit
Same-Store	$	65,956	$	61,323	$		61,187	$	60,592	$	60,118
Non-Same-Store		125,239		100,374			96,467		93,353		86,581
All Properties	$	71,326	$	69,905	$		68,728	$	67,034	$	64,743

Average Scheduled Rent⁽¹⁾per Unit
Same-Store	$	825	$	785	$		781	$	771	$	764
Non-Same-Store		1,220		1,051			1,010		976		955
All Properties	$	861	$	843	$		830	$	811	$	797

Total Receipts per Unit
Same-Store	$	820	$	773	$		767	$	768	$	754
Non-Same-Store		1,067		971			947		951		968
All Properties	$	842	$	816	$		806	$	804	$	792

Total Recurring Capital Expenditures per Unit⁽¹⁾	$	139	$	133	$		130	$	160	$	164

Occupancy%
Same-Store		93.8%		94.5%			93.5%		94.6%		93.3%
Non-Same-Store		89.5%		87.6%			85.3%		90.4%		90.7%
All Properties		93.4%		93.0%			91.8%		93.8%		92.9%

Operating Expenses as a % of Scheduled Rent
Same-Store		46.0%		50.2%			43.0%		45.6%		46.4%
Non-Same-Store		29.5%		45.9%			39.8%		41.0%		40.7%
All Properties		43.9%		49.0%			42.2%		44.5%		45.2%

(1)	See Definitions on page 28.

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

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Same-Store Properties)

Commercial Leasing Activity

During fiscal year 2015, we have executed new and renewal commercial leases for our same-store rental properties on 289,981 square feet for the three months ended July 31, 2014. As a result of our leasing efforts, occupancy in our same-store commercial portfolio increased to 88.3% as of July 31, 2014, up from 86.6% as of July 31, 2013.

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

Three Months Ended July 31, 2014

	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed⁽¹⁾		Total Square Feet of Leases Executed⁽¹⁾		Occupancy
	Square Feet of New Leases⁽¹⁾		Square Feet of Leases Renewed⁽¹⁾		Total Square Feet of Leases Executed⁽¹⁾		Occupancy
Segments	2014	2013	2014	2013	2014	2013	2014	2013
Office	39,120	126,992	126,732	57,545	165,852	184,537	81.3%	81.5%
Healthcare	8,947	21,503	39,016	13,528	47,963	35,031	96.3%	95.4%
Industrial	0	50,040	0	222,077	0	272,117	100.0%	91.0%
Retail	24,222	91,957	51,944	12,565	76,166	104,522	86.3%	81.9%
Total	72,289	290,492	217,692	305,715	289,981	596,207	88.3%	86.6%

(1)

The leasing activity presented is based on leases signed or executed for our same-store 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.

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 same-store commercial rental properties:

Three Months Ended July 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		39,120		126,992		4.9		4.9	$	12.90	$	13.01	$	10.98	$	15.17	$	4.18	$	4.32
Healthcare		8,947		21,503		8.6		5.6		21.10		21.94		29.69		49.69		9.10		5.30
Industrial		0		50,040		0		4.3		0		4.10		0		0.00		0		0.34
Retail		24,222		91,957		4.5		4.3		9.00		3.62		14.96		0.57		5.47		4.20
Total		72,289		290,492		5.3		4.9	$	12.61	$	9.17	$	14.63	$	10.49	$	5.22	$	3.67

(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.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Same-Store Properties)

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 increase in the average effective rental rates of new leases executed in the three months ended July 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 the prior period. 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 three months ended July 31, 2013 would have been $11.83 per square foot. The increase in the average effective rental rate of new leases executed in the total commercial portfolio for the three months ended July 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 three months ended July 31, 2014.

Lease Renewals

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

Three Months Ended July 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		126,732		57,545		52.1%		90.5%		3.3		3.5		23.6%		1.7%	$	6.04	$	2.20	$	1.93	$	1.79
Healthcare		39,016		13,528		90.7%		100.0%		5.6		7.5		4.5%		7.3%		5.03		25.76		2.01		2.82
Industrial		0		222,077		0%		47.9%		0		3.3		0%		5.7%		0		0.00		0.00		0.30
Retail		51,944		12,565		25.6%		5.8%		4.3		4.2		27.0%		3.1%		4.78		0.00		0.13		0.00
Total		217,692		305,715		48.9%		56.8%		4.1		4.0		18.0%		4.5%	$	5.56	$	1.55	$	1.51	$	0.68

(1)

(2)	Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases 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.

The increase in the weighted average growth in effective rents for the three months ended July 31, 2014 in our commercial office and commercial retail segments when compared to the same period in the prior year was due to executed lease renewals in each segment that contained significant tenant improvement allowances. These significant tenant improvement allowances negotiated by the tenants required increased rental rates to be negotiated by IRET as well. Absent these leases, the weighted average growth rate in effective rents for the commercial office and commercial retail segments for the three months ended July 31, 2014 would have been 8.9% and 4.8% respectively and the weighted average growth in effective rents for the entire commercial portfolio would have been 6.2%.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Same-Store 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 July 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
2015(remainder)⁽¹⁾	140	947,360	10.5%	$	13,122,352	10.7%
2016	125	1,253,811	14.0%		17,005,039	13.8%
2017	132	1,199,203	13.4%		19,622,750	16.0%
2018	90	721,809	8.0%		11,956,009	9.7%
2019	86	1,321,573	14.7%		16,344,306	13.3%
2020	43	652,264	7.2%		7,267,734	5.9%
2021	43	359,401	4.0%		5,436,404	4.4%
2022	42	1,352,847	15.1%		16,735,550	13.6%
2023	11	468,709	5.2%		2,021,818	1.6%
2024	46	428,590	4.8%		7,045,221	5.7%
Thereafter	16	276,677	3.1%		6,479,584	5.3%
Totals	774	8,982,244	100.0%	$	123,036,767	100.0%

(1)	Includes month-to-month leases. As of July 31, 2014 month-to-month leases accounted for 455,380 square feet.

(2)	Annualized Base Rent is monthly scheduled rent as of July 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 TRS.

Because of the diverse property types in the Company's commercial portfolio and the dispersed locations of a substantial portion of the portfolio's properties in secondary and tertiary markets, information on current market rents is difficult to obtain, is highly subjective, and is often not directly comparable between properties. As a result, the Company believes that the increase or decrease in effective rent on its recent leases is the most objective and meaningful information available regarding rent trends and the relationship between rents on leases expiring in the near-term and current market rents across the Company's markets. The Company believes that rents on its new and renewed leases generally approximate market rents.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of July 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	33	71	14.4%	1,521,147	16.9%
St. Luke's Hospital of Duluth, Inc.	6	20	3.7%	198,775	2.2%
Fairview Health Services	9	43	3.7%	250,711	2.8%
Applied Underwriters	3	31	2.4%	141,724	1.6%
HealthEast Care System	1	55	1.8%	114,316	1.3%
Affiliates of Siemens USA (NYSE: SI)	2	32	1.4%	112,848	1.3%
Nebraska Orthopaedic Hospital⁽²⁾	1	176	1.4%	61,758	0.7%
Microsoft (NASDAQ: MSFT)	1	53	1.3%	122,040	1.4%
Arcadis Corporate Services, Inc.	1	24	1.3%	34,502	0.4%
State of Idaho Department of Health and Welfare	2	43	1.2%	103,342	1.2%
Total/Weighted Average		53	32.6%	2,661,163	29.8%

(1)	See Definitions on page 28.

(2)

The tenant in the Company's Nebraska Orthopaedic Hospital property has exercised its option to purchase the property. The Company and its tenant are currently engaged in an arbitration proceeding pursuant to the lease agreement to determine the purchase price. The Company currently can give no assurance that the sale of the property pursuant to the purchase option will be completed.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASE EXPIRATIONS

as of July 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
2015(remainder)⁽³⁾	63	286,428	7.4%	$	5,444	$	19.01	9.3%
2016	59	716,733	18.5%		10,587		14.77	18.2%
2017	66	822,999	21.3%		14,420		17.52	24.7%
2018	48	470,042	12.1%		7,060		15.02	12.1%
2019	48	855,581	22.1%		11,106		12.98	19.1%
2020 and thereafter	60	719,049	18.6%		9,647		13.42	16.6%
	344	3,870,832	100.0%	$	58,264	$	15.05	100.0%

Commercial Healthcare
2015(remainder)⁽⁴⁾	34	389,427	13.0%	$	5,574	$	14.31	11.2%
2016	24	160,918	5.4%		3,379		20.99	6.8%
2017	31	163,793	5.5%		3,477		21.23	7.0%
2018	21	174,514	5.9%		4,246		24.33	8.5%
2019	15	290,137	9.7%		4,168		14.37	8.4%
2020 and thereafter	102	1,806,049	60.5%		28,986		16.05	58.1%
	227	2,984,838	100.0%	$	49,830	$	16.77	100.0%

Commercial Industrial
2015(remainder)⁽⁵⁾	0	0	0.0%	$	0	$	0.00	0.0%
2016	4	248,098	24.3%		1,542		6.22	30.6%
2017	1	69,600	6.8%		356		5.12	7.1%
2018	0	0	0.0%		0		0.00	0.0%
2019	5	127,600	12.5%		515		4.03	10.2%
2020 and thereafter	5	574,813	56.4%		2,634		4.58	52.1%
	15	1,020,111	100.0%	$	5,047	$	4.95	100.0%

Commercial Retail
2015(remainder)⁽⁶⁾	43	271,505	24.5%	$	2,104	$	7.75	21.3%
2016	38	128,062	11.6%		1,497		11.69	15.1%
2017	34	142,811	12.9%		1,370		9.59	13.8%
2018	21	77,253	7.0%		650		8.41	6.6%
2019	18	48,255	4.4%		556		11.52	5.6%
2020 and thereafter	34	438,577	39.6%		3,719		8.48	37.6%
	188	1,106,463	100.0%	$	9,896	$	8.94	100.0%

Commercial Total
2015(remainder)⁽⁷⁾	140	947,360	10.5%	$	13,122	$	13.85	10.7%
2016	125	1,253,811	14.0%		17,005		13.56	13.8%
2017	132	1,199,203	13.4%		19,623		16.36	15.9%
2018	90	721,809	8.0%		11,956		16.56	9.7%
2019	86	1,321,573	14.7%		16,345		12.37	13.3%
2020 and thereafter	201	3,538,488	39.4%		44,986		12.71	36.6%
	774	8,982,244	100.0%	$	123,037	$	13.70	100.0%

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

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

(3)	Includes month-to-month leases. As of July 31, 2014 month-to-month leases accounted for 76,167 square feet.

(4)	Includes month-to-month leases. As of July 31, 2014 month-to-month leases accounted for 321,134 square feet.

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

(6)	Includes month-to-month leases. As of July 31, 2014 month-to-month leases accounted for 58,079 square feet.

(7)	Includes month-to-month leases. As of July 31, 2014 month-to-month leases accounted for 455,380 square feet.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 ACQUISITION SUMMARY

as of July 31, 2014

(dollars in thousands)

Property	Location	Property Type	Acquisition Date	Square Feet/Units	Occupancy At Acquisition	July 31, 2014 Occupancy	Acquisition Cost

Creekside Crossing	Bismarck, ND	Unimproved Land	May 22, 2014	n/a	n/a	n/a	$	4,269
Homestead Garden	Rapid City, SD	Multi-Family Residential	June 2, 2014	152	96.7%	95.4%		15,000
Silver Springs	Rapid City, SD	Multi-Family Residential	June 2, 2014	52	98.0%	94.2%		3,280
PrairieCare Medical	Brooklyn Park, MN	Unimproved Land	June 5, 2014	n/a	n/a	n/a		2,616
71 France Phase I⁽¹⁾	Edina, MN	Unimproved Land	June 12, 2014	n/a	n/a	n/a		1,413
			Total Square Feet	0			$	26,578
			Total Units	204

(1)	Land is owned by a joint venture in which the Company currently has an approximately 55.3% interest. The joint venture is consolidated in IRET's financial statements

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 DEVELOPMENT PLACED IN SERVICE SUMMARY

as of July 31, 2014

(dollars in thousands)

Property⁽¹⁾	Location	Segment Type	Date Placed in Service	Square Feet/Units	Occupancy At Date Placed in Service	July 31, 2014 Occupancy	Development Cost

Dakota Commons⁽²⁾	Williston, ND	Multi-Family Residential	July 15, 2014	44	40.9%	40.9%	$	10,265

(1)

Development projects that are placed in service in phases are excluded from this table until the entire project has been placed in service. See Development in Progress Summary for additional information on the Renaissance Heights I project, which was partially placed in service during fiscal year 2014 and the three months ended July 31, 2014.

(2)	Development property placed in service July 15, 2014. Costs paid in fiscal year 2014 totaled $8.1 million, including the land acquired in fiscal year 2013. Additional costs paid in fiscal year 2015 totaled $2.2 million, for a total project cost at July 31, 2014 of $10.3 million.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 DEVELOPMENT IN PROGESS SUMMARY

as of July 31, 2014

(dollars in thousands)

				(in thousands)
Project Name and Location	Planned Segment	Square Feet or Number of Units	Percentage Leased or Committed	Anticipated Total Cost		Costs as of July 31, 2014⁽¹⁾		Anticipated Construction Completion
Commons at Southgate - Minot, ND⁽²⁾	Multi-Family Residential	233 units	43.0%	$	37,201	$	33,218	FY2015 Q2
Minot Wells Fargo Bank - Minot, ND	Commercial Office	4,998 sq ft	100%		3,288		1,550	FY2015 Q2
Cypress Court II – St. Cloud, MN⁽³⁾	Multi-Family Residential	66 units	0%		7,028		3,168	FY2015 Q3
Arcata - Golden Valley, MN	Multi-Family Residential	165 units	0%		33,448		19,048	FY2015 Q3
Red 20 - Minneapolis, MN⁽⁴⁾	Multi-Family Residential and Commercial	130 units and 10,625 sq ft	21.0%		29,462		20,399	FY2015 Q3
Renaissance Heights I - Williston, ND⁽⁵⁾	Multi-Family Residential	288 units	42.8%		62,362		44,251	FY2015 Q4
Roseville 3075 Long Lake Rd - Roseville, MN	Commercial Industrial	202,807 sq ft	5.38%		13,915		2,578	FY2015 Q4
Chateau II - Minot, ND⁽⁶⁾	Multi-Family Residential	72 units	0%		14,711		5,681	FY2016 Q1
Cardinal Point - Grand Forks, ND	Multi-Family Residential	251 units	0%		40,042		9,333	FY2016 Q1
71 France Phase I - Edina, MN⁽⁷⁾	Multi-Family Residential	109 units	0%		29,660		4,255	FY2016 Q1
Edina 6565 France SMC III - Edina, MN	Commercial Medical	72,012 sq ft	0%		34,665		4,204	FY2016 Q2
PrairieCare Medical - Brooklyn Park, MN	Commercial Medical	75,000 sq ft	100%		24,251		4,486	FY2016 Q2
Deer Ridge – Jamestown, ND	Multi-Family Residential	163 units	0%		24,519		1,793	FY2016 Q2
Other	n/a	n/a	n/a		n/a		874	n/a
				$	354,552	$	154,838

(1)	Includes costs related to development projects that are placed in service in phases (Renaissance Heights I - $23.0 million).

(2)	The Company is an approximately 52.9% partner in the joint venture entity constructing this project; the anticipated total cost amount given is the total cost to the joint venture entity.

(3)	The Company is an approximately 86.1% partner in the joint venture entity constructing this project; the anticipated total cost amount given is the total cost to the joint venture entity.

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

(5)	The Company is an approximately 70% partner in the joint venture entity constructing this project; the anticipated total cost amount given is the total cost to the joint venture entity.

(6)	On December 5, 2013, this development project was destroyed by fire. As of July 31, 2014, $4.0 million of expected insurance proceeds were included in accounts receivable on the Company's consolidated balance sheet. See Note 2 for additional information.

(7)

The Company is currently an approximately 55.3% partner in the joint venture entity constructing this project. The project will be constructed in three phases, and at the conclusion of construction of the third phase, the Company will have an approximately 50.5% interest in the project. The anticipated total cost amount given in the table above is the total cost to the joint venture entity of the project's first phase. The expected total project cost for all three phases is approximately $69.9 million for a total of approximately 241 residential units and approximately 21,772 square feet of commercial retail space.

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Definitions

July 31, 2014

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt and gain/loss from involuntary conversion. We consider Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, the cost of debt, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure. Adjusted EBITDA as calculated by us is not comparable to Adjusted EBITDA reported by other REITs that do not define Adjusted EBITDA exactly as we do.

Adjusted funds from operations (AFFO) is calculated by subtracting from Funds from operations (FFO) (1) tenant improvements and leasing costs at same-store 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 and (4) share-based compensation expense. 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 same-store properties only, since we consider tenant improvement and leasing cost levels at non-same-store properties unrepresentative of expected levels at same-store properties. Previously-reported AFFO amounts are not revised for changes in the composition of the same-store 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 Adjusted EBITDA by interest expense and principal amortization.

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 classified as same-store (i.e., excluding capital expenditures on non-same-store 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: September 9, 2014

Exhibit
Number	Description

99.1	Earnings Release issued September 9, 2014, regarding financial and operational results for the three months ended July 31, 2014

99.2	Certain supplemental information not included in the earnings release