SEGMENT REPORTING

6 Months Ended

Oct. 31, 2014

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING

IRET reports its results in five reportable segments: multi-family residential, office, healthcare (including senior housing), industrial and retail properties. The Company's reportable segments are aggregations of similar properties.

IRET measures the performance of its segments based on net operating income ("NOI"), which the Company defines 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). IRET believes that NOI is an important supplemental measure of operating performance for a REIT's operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

The revenues and net operating income for these reportable segments are summarized as follows for the three and six month periods ended October 31, 2014 and 2013, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements.

Three Months Ended October 31, 2014	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	29,594	$	18,984	$	16,436	$	1,593	$	3,435	$	70,042
Real estate expenses		12,164		9,496		4,173		272		1,132		27,237
Net operating income	$	17,430	$	9,488	$	12,263	$	1,321	$	2,303		42,805
TRS senior housing revenue												843
TRS senior housing expenses												(725)
Depreciation/amortization												(17,668)
General and administrative												(3,468)
Impairment of real estate investments												(3,245)
Interest expense												(14,599)
Interest and other income												696
Income before gain on sale of real estate and other investments												4,639
Gain on sale of real estate and other investments												1,231
Net income											$	5,870

Three Months Ended October 31, 2013	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	25,438	$	19,367	$	16,025	$	1,571	$	3,371	$	65,772
Real estate expenses		11,162		9,525		4,128		501		1,015		26,331
Net operating income	$	14,276	$	9,842	$	11,897	$	1,070	$	2,356		39,441
Depreciation/amortization												(17,167)
General and administrative												(3,205)
Interest expense												(14,799)
Interest and other income												652
Income from continuing operations												4,922
Income from discontinued operations												5,375
Net income											$	10,297

Six Months Ended October 31, 2014	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	57,321	$	37,831	$	32,734	$	3,163	$	6,830	$	137,879
Real estate expenses		24,382		18,824		8,590		721		2,238		54,755
Net operating income	$	32,939	$	19,007	$	24,144	$	2,442	$	4,592		83,124
TRS senior housing revenue												1,636
TRS senior housing expenses												(1,418)
Depreciation/amortization												(34,724)
General and administrative												(7,744)
Impairment of real estate investments												(5,565)
Interest expense												(29,263)
Interest and other income												1,387
Income before loss on sale of real estate and other investments												7,433
Loss on sale of real estate and other investments												(1,762)
Net income											$	5,671

Six Months Ended October 31, 2013	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	49,811	$	38,681	$	32,098	$	3,609	$	6,671	$	130,870
Real estate expenses		22,007		19,279		8,412		956		2,317		52,971
Gain on involuntary conversion		966		0		0		0		0		966
Net operating income	$	28,770	$	19,402	$	23,686	$	2,653	$	4,354		78,865
Depreciation/amortization												(36,167)
General and administrative												(6,637)
Interest expense												(29,395)
Interest and other income												862
Income from continuing operations												7,528
Income from discontinued operations												5,985
Net income											$	13,513

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of October 31, 2014, and April 30, 2014, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of October 31, 2014	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Segment Assets
Property owned	$	847,155	$	480,185	$	525,027	$	50,719	$	110,684	$	2,013,770
Less accumulated depreciation		(166,181)		(109,813)		(112,289)		(10,483)		(27,779)		(426,545)
Net property owned	$	680,974	$	370,372	$	412,738	$	40,236	$	82,905		1,587,225
Real estate held for sale												41,183
Cash and cash equivalents												52,999
Other investments												329
Receivables and other assets												108,397
Development in progress												146,390
Unimproved land												24,947
Total assets											$	1,961,470

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