8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

December 10, 2014

INVESTORS REAL ESTATE TRUST

(Exact name of registrant as specified in its charter)

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

1400 31^st Avenue SW, Suite 60

Post Office Box 1988

Minot, ND 58702-1988

(Address of principal executive offices, including zip code)

701-837-4738

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 2.02. Results of Operations and Financial Condition.

and

Item 7.01. Regulation FD Disclosure.

An earnings release issued by the Registrant on December 10, 2014, regarding financial and operational results for the three and six months ended October 31, 2014, is attached as Exhibit 99.1, and certain supplemental information regarding the Company's capital analysis, portfolio, tenant analysis and growth and strategy is attached as Exhibit 99.2. This information is being furnished pursuant to Item 7.01 and Item 2.02 of Form 8-K. This information is not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

ITEM 9.01Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number	Description
99.1	Earnings Release issued December 10, 2014, regarding financial and operational results for the three and six months ended October 31, 2014
99.2	Supplemental information

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INVESTORS REAL ESTATE TRUST
	By: /s/  Timothy P. Mihalick
	Timothy P. Mihalick
	President & Chief Executive Officer
Date: December 10, 2014

EX-99.1

Exhibit 99.1

Earnings Release

INVESTORS REAL ESTATE TRUST

ANNOUNCES

FINANCIAL AND OPERATING RESULTS

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

Minot, ND – December 10, 2014 – Investors Real Estate Trust (NYSE: IRET) reportedfinancial and operating results today for the quarter and year-to-date ended October 31, 2014.

During the three month period ended October 31, 2014, IRET's revenues increased from the year-earlier period. Funds From Operations (FFO)¹ overall and on a per share and unit basis increased for the three month period ended October 31, 2014 compared to the same period of the prior fiscal year. Net income available to common shareholders decreased from the year-earlier period.

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

· Revenues increased to $70.9 million from $65.8 million.

· Total expenses increased by approximately $5.6 million, or 12.1%, in the three months ended October 31, 2014 compared to the three months ended October 31, 2013, from $46.7 million to $52.3 million. This increase was primarily due to non-cash impairment expense of $3.2 million recognized during the second quarter of fiscal year 2015.

· FFO increased to $22.2 million on approximately 133,295,000 weighted average shares and units outstanding, from $20.0 million on approximately 126,713,000 weighted average shares and units outstanding ($.17 per share and unit compared to $.16 per share and unit).

· Net Income Available to Common Shareholders, as computed under generally accepted accounting principles, was $2.2 million compared to $5.9 million in the same period of the prior fiscal year.

During the six month period ended October 31, 2014, IRET's revenues increased from the year-earlier period. Funds From Operations (FFO)¹ overall increased and on a per share and unit basis decreased for the six month period ended October 31, 2014 compared to the same period of the prior fiscal year. We reported a net loss available to common shareholders for the six months ended October 31, 2014.

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

· Revenues increased to $139.5 million from $130.9 million.

· Total expenses increased by approximately $8.4 million, or 8.8%, in the six months ended October 31, 2014 compared to the six months ended October 31, 2013, from $95.8 million to $104.2 million. This increase was primarily due to non-cash impairment expense of $5.6 million recognized in the six months ended October 31, 2014.

· FFO increased to $41.2 million on approximately 132,598,000 weighted average shares and units outstanding, from $39.6 million on approximately 125,440,000 weighted average shares and units outstanding ($.31 per share and unit compared to $.32 per share and unit).

· Net Loss Available to Common Shareholders, as computed under generally accepted accounting principles, was approximately $794,000 compared to $6.1 million of Net Income Available to Common Shareholders in the same period of the prior fiscal year.

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

· An increase in the commitment amount under the Company's secured line of credit with First International Bank and Trust as lead bank and lender, from $75.0 million to $90.0 million.

· The acquisition of a 68-unit multi-family residential property in Bismarck, North Dakota for a purchase price of $8.5 million, and a parcel of vacant land in Monticello, Minnesota, for a purchase price of $1.7 million.

· The disposition of an office property in Golden Valley, Minnesota; a retail property in Kalispell, Montana; and an apartment property in St. Cloud, Minnesota, for sales prices totaling $10.9 million.

IRET's President and Chief Executive Officer, Timothy Mihalick, commented, "We are pleased to report a strong quarter, as we continue to execute on our growth strategy for our multi-family residential and healthcare segments, and on our disposition strategy in our commercial segments. Our strong results in the quarter are driven by the strength of our multi-family residential portfolio, in particular the new development projects that we have coming online in that segment, which are stabilizing with returns exceeding our projections. During the quarter we placed in service 121 units in our 233-unit Commons at Southgate property in Minot, North Dakota, 52 units in our 130-unit Red 20 property in Minneapolis, and 54 units in the approximately 288-unit Renaissance heights apartment property in Williston, North Dakota. These are joint venture projects in which IRET has ownership interests of approximately 53%, 59% and 70%, respectively. We continue to see attractive development opportunities in our multi-family and healthcare segments in particular. With the solid operating results that we achieved in the quarter, we are confident that we remain on the path to coverage of our distribution, in accordance with our announced timeline. We consider these quarterly results a good indicator that the plan we articulated previously is working, and that we will be able to maintain momentum in our portfolio repositioning. "

______________________________

¹The 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.

i

Operating Results

Net Operating Income (NOI)² from all properties increased by $3.4 million, or 8.5%, during the three-month period ended October 31, 2014, compared to the same period one year ago. Non-same-store properties, primarily our new multi-family residential developments, accounted for $2.9 million of the increase.  NOI from same-store properties³ increased by approximately $494,000, primarily driven by increases in rental revenue in our multi-family residential segment.

NOI from all properties increased by $4.3 million, or 5.4%, during the six month period ended October 31, 2014, compared to the same period one year ago.  Non-same-store properties, primarily our new multi-family residential developments, accounted for $3.8 million of the increase. Same-store NOI for the six months ended October 31, 2014 increased by $441,000 compared to the same period of the prior fiscal year.  This increase was primarily due to an increase in rental revenue of $1.7 million with the largest increase realized in the multi-family residential segment.  This increase in rental revenue was offset by a decrease in tenant reimbursements of $727,000 which occurred primarily in the commercial office segment and by increased real estate expenses of $559,000 in all segments combined.

Occupancy as of October 31, 2014 compared to October 31, 2013 increased in two of our five reportable segments (multi-family residential and industrial), decreasing in our office and retail segments and remaining stable in our healthcare segment on a same-store basis. On an all-property basis, occupancy increased in our multi-family residential, office and industrial segments, decreasing in our retail segment and remaining the same in our healthcare segment. The increased occupancy in the 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%. 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 October 31,		As of  October 31,
Segments	Fiscal 2015	Fiscal 2014	Fiscal 2015	Fiscal 2014
Multi-Family Residential	95.6%	94.4%	94.6%	93.7%
Office	83.3%	85.1%	81.6%	81.0%
Healthcare	96.0%	96.1%	96.1%	96.1%
Industrial	100.0%	95.4%	100.0%	70.2%
Retail	85.7%	87.5%	86.1%	86.6%

(a)	Non-same-store properties consist of the following properties (re-development and in-service development properties are listed in bold type):
	Multi-Family Residential -	Colonial Villa, Burnsville, MN; Commons at Southgate, Minot, ND; Cypress Court, St. Cloud, MN;  Dakota Commons, Williston, ND; Homestead Garden, Rapid City, SD; Landing at Southgate, Minot, ND; Northridge, Bismarck, ND; Pinecone Villas, Sartell, MN;  Red 20, Minneapolis, MN; Renaissance Heights I, Williston, ND;River Ridge, Bismarck, ND; Silver Springs, Rapid City, SD and Southpoint, Grand Forks, ND. Total number of units, 1,397.
	Healthcare -	Spring Creek Fruitland, Fruitland, ID. Total rentable square footage, 39,500.
	Industrial -	Roseville 3075 Long Lake Road, Roseville, MN. Total rentable square footage, 17,750.

Held for Sale -	Office -	Burnsville Bluffs II, Burnsville, MN; Northgate I, Maple Grove, MN; Plymouth I, Plymouth, MN; Plymouth II, Plymouth, MN; Plymouth III, Plymouth, MN; Plymouth IV-V, Plymouth, MN; Southeast Tech, Eagan, MN; Thresher Square, Minneapolis, MN and Whitewater Plaza, Minnetonka, MN. Total rentable square footage, 566,392.
	Retail -	Fargo Express Community, Fargo, ND. Total rentable square footage, 34,226.
	Total NOI for held for sale properties for the three months ended October 31, 2014 and 2013, respectively, $683 and $643. Total NOI for held for sale properties for the six months ended October 31, 2014 and 2013, respectively, $1,465 and $1,273.

Sold -	Multi-Family Residential -	Lancaster, St. Cloud, Minnesota.
	Office -	Dewey Hill Business Center, Edina, MN and Wirth Corporate Center, Golden Valley, Minnesota.
	Industrial -	Eagan 2785 & 2795 Hwy 55, Eagan, MN.
	Retail -	Kalispell Retail Center, Kalispell, MT and Weston Retail, Weston, WI..
	Total NOI for sold properties for the three months ended October 31, 2014 and 2013, respectively, $134 and $(37). Total NOI for sold properties for the six months ended October 31, 2014 and 2013, respectively, $217 and $(24).

______________________________

² 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.

³ Same-store properties are properties owned or in service for the entirety of the periods being compared (except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, and properties sold or classified as held for sale), 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 office, healthcare, industrial and retail properties.

ii

Acquisitions, Development Projects Placed in Service and Dispositions

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

· a 68-unit multi-family residential property in Bismarck, North Dakota, for a purchase price of $8.5 million and

· an approximately 12.7-acre parcel of vacant land in Monticello, Minnesota, for a purchase price of $1.7 million.

Also during the second quarter of fiscal year 2015, the Company placed in service 121 units of the 233-unit Commons at Southgate multi-family residential property in Minot, North Dakota, in which the Company has an approximately 52.9% interest; 52 units of the 130-unit Red 20 multi-family residential property in Minneapolis, Minnesota, in which the Company has an approximately 58.6% interest 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 second quarter of fiscal year 2015, the Company sold one multi-family residential property, one office property and one retail property, along with the adjacent unimproved land for a total sales price of $10.9 million.

Strategic Dispositions

At October 31, 2014, the Company had nine office properties and two retail properties classified as held for sale. 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 office, industrial and retail segments as candidates for disposition as the Company continues to execute on the Strategic Plan.

Mortgages Payable

The Company's mortgages payable include a non-recourse $122.6 million CMBS loan, for which nine of the Company's 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 October 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 October 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 174^th consecutive distribution. IRET also paid, on September 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.

Distribution Declared.  Subsequent to the end of the second quarter of fiscal year 2015, on December 4, 2014, the Company's Board of Trustees declared a regular quarterly distribution of $0.1300 per share and unit on the Company's common shares of beneficial interest and the limited partnership units of IRET Properties, payable January 16, 2015 to common shareholders and unitholders of record on January 2, 2015. Also on December 4, 2014, the Company's Board of Trustees' declared a distribution of $0.5156 per share on the Company's Series A preferred shares of beneficial interest, payable December 31, 2014 to Series A preferred shareholders of record on December 15, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2014 to Series B preferred shareholders of record on December 15, 2014.

iii

Conference Call Information

The Conference Call for 2nd Quarter Earnings is scheduled for Thursday, December 11, 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 kwentz@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 11,292 apartment units; and 63 office properties, 67 healthcare properties (including senior housing), 7 industrial properties and 24 retail properties with a total of approximately 9.9 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.

iv

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	(in thousands, except share data)
	October 31, 2014		April 30, 2014
ASSETS
Real estate investments
Property owned	$	2,013,770	$	1,996,031
Less accumulated depreciation		(426,545)		(424,288)
		1,587,225		1,571,743
Development in progress		146,390		104,609
Unimproved land		24,947		22,864
Total real estate investments		1,758,562		1,699,216
Real estate held for sale		41,183		2,951
Cash and cash equivalents		52,999		47,267
Other investments		329		329
Receivable arising from straight-lining of rents, net of allowance of $669 and $796, respectively		27,425		27,096
Accounts receivable, net of allowance of $425 and $248, respectively		3,719		10,206
Real estate deposits		4,924		145
Prepaid and other assets		2,263		4,639
Intangible assets, net of accumulated amortization of $24,153 and $24,071, respectively		29,745		32,639
Tax, insurance, and other escrow		16,338		20,880
Property and equipment, net of accumulated depreciation of $1,270 and $2,041, respectively		1,598		1,681
Goodwill		1,940		1,100
Deferred charges and leasing costs, net of accumulated amortization of $20,677 and $21,068, respectively		20,445		21,072
TOTAL ASSETS	$	1,961,470	$	1,869,221
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	67,037	$	59,105
Revolving line of credit		40,500		22,500
Mortgages payable		1,013,161		997,689
Other		107,731		63,178
TOTAL LIABILITIES		1,228,429		1,142,472
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		6,373		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 October 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 October 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, 119,808,974 shares issued and outstanding at October 31, 2014, and 109,019,341 shares issued and outstanding at April 30, 2014)		918,221		843,268
Accumulated distributions in excess of net income		(420,036)		(389,758)
Total Investors Real Estate Trust shareholders' equity		636,859		592,184
Noncontrolling interests – Operating Partnership (14,730,910 units at October 31, 2014 and 21,093,445 units at April 30, 2014)		63,207		105,724
Noncontrolling interests – consolidated real estate entities		26,602		22,638
Total equity		726,668		720,546
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	1,961,470	$	1,869,221

v

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)

for the three and six months ended October 31, 2014 and 2013

	(in thousands, except per share data)
	Three Months Ended October 31				Six Months Ended October 31
		2014		2013		2014		2013
REVENUE
Real estate rentals	$	58,835	$	54,477	$	115,961	$	108,100
Tenant reimbursement		11,207		11,295		21,918		22,770
TRS senior housing revenue		843		0		1,636		0
TOTAL REVENUE		70,885		65,772		139,515		130,870
EXPENSES
Depreciation/amortization related to real estate investments		16,828		16,367		33,012		34,423
Utilities		5,093		5,208		9,774		10,131
Maintenance		7,828		7,162		15,592		14,891
Real estate taxes		8,266		8,361		16,767		16,736
Insurance		1,345		1,413		3,081		2,714
Property management expenses		4,355		4,184		8,985		8,319
Other property expenses		350		3		556		180
TRS senior housing expenses		725		0		1,418		0
General and administrative		3,468		3,205		7,744		6,637
Amortization related to non-real estate investments		840		800		1,712		1,744
Impairment of real estate investments		3,245		0		5,565		0
TOTAL EXPENSES		52,343		46,703		104,206		95,775
Gain on involuntary conversion		0		0		0		966
Operating income		18,542		19,069		35,309		36,061
Interest expense		(14,599)		(14,799)		(29,263)		(29,395)
Interest income		560		585		1,120		773
Other income		136		67		267		89
Income before gain (loss) on sale of real estate and other investments and income from discontinued operations		4,639		4,922		7,433		7,528
Gain (loss) on sale of real estate and other investments		1,231		0		(1,762)		0
Income from continuing operations		5,870		4,922		5,671		7,528
Income from discontinued operations		0		5,375		0		5,985
NET INCOME		5,870		10,297		5,671		13,513
Net (income) loss attributable to noncontrolling interests – Operating Partnership		(363)		(1,226)		39		(1,276)
Net income attributable to noncontrolling interests – consolidated real estate entities		(393)		(284)		(747)		(372)
Net income attributable to Investors Real Estate Trust		5,114		8,787		4,963		11,865
Dividends to preferred shareholders		(2,878)		(2,878)		(5,757)		(5,757)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	2,236	$	5,909	$	(794)	$	6,108
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic and diluted	$	.02	$	.01	$	(.01)	$	.01
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.00		.05		.00		.05
NET INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED	$	.02	$	.06	$	(.01)	$	.06
DIVIDENDS PER COMMON SHARE	$	.1300	$	.1300	$	.2600	$	.2600

vi

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

INVESTORS REAL ESTATE TRUST TO FUNDS FROM OPERATIONS

for the three and six months ended October 31, 2014 and 2013

Three Months Ended October 31,	(in thousands, except per share amounts)
	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	$	5,114				$	8,787
Less dividends to preferred shareholders		(2,878)					(2,878)
Net income available to common shareholders		2,236	117,034	$	0.02		5,909	104,861	$	0.06
Adjustments:
Noncontrolling interest – Operating Partnership		363	16,261				1,226	21,852
Depreciation and amortization(1)		17,624					17,490
Impairment of real estate investments		3,245					57
Gain on depreciable property sales		(1,231)					(4,698)
Funds from operations applicable to common shares and Units	$	22,237	133,295	$	0.17	$	19,984	126,713	$	0.16

Six Months Ended October 31,	(in thousands, except per share amounts)
	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	$	4,963				$	11,865
Less dividends to preferred shareholders		(5,757)					(5,757)
Net income available to common shareholders		(794)	114,033	$	(0.01)		6,108	103,606	$	0.06
Adjustments:
Noncontrolling interest – Operating Partnership		(39)	18,565				1,276	21,834
Depreciation and amortization(4)		34,661					37,045
Impairment of real estate investments		5,565					1,860
Gain on depreciable property sales		1,762					(6,641)
Funds from operations applicable to common shares and Units	$	41,155	132,598	$	0.31	$	39,648	125,440	$	0.32

(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 $17,668 and $17,167, and depreciation/amortization from Discontinued Operations of $0 and $347, less corporate-related depreciation and amortization on office equipment and other assets of $44 and $24, for the three months ended October 31, 2014 and 2013, respectively.

(2) UPREIT Units of the Operating Partnership are exchangeable for cash, or, at the Company's discretion, for common shares of beneficial interest on a one-for-one basis.

(3) Net income attributable to Investors Real Estate Trust is calculated on a per share basis. FFO is calculated on a per share and unit basis.

(4) Real estate depreciation and amortization consists of the sum of depreciation/amortization related to real estate investments and amortization related to non-real estate investments from the Condensed Consolidated Statements of Operations, totaling $34,724 and $36,167, and depreciation/amortization from Discontinued Operations of $0 and $933, less corporate-related depreciation and amortization on office equipment and other assets of $63 and $55 for the six months ended October 31, 2014 and 2013, respectively.

vii

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

RECONCILATION OF NET OPERATING INCOME TO THE

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the three and six months ended October 31, 2014 and 2013

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

viii

EX-99.2

Exhibit 99.2

Second Quarter Fiscal 2015

Supplemental Operating and Financial Data

for the Quarter Ended October 31, 2014

CONTACT: Karin Wentz Associate General Counsel Direct Dial: 952-401-4802 E-Mail: kwentz@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

October 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	16-19
Same-Store Properties and All Properties Occupancy Levels by Segment	20
Tenant Analysis
Multi-Family Residential Summary	21
Commercial Leasing Summary	22-25
10 Largest Commercial Tenants - Based on Annualized Base Rent	26
Commercial Lease Expirations	27
Growth and Strategy
Acquisition Summary	28
Development Placed in Service Summary	29
Development in Progress Summary	30
Acquisitions and Development Liquidity Profile	31
Definitions	32

1

Company Background and Highlights

Second 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; office; healthcare, including senior housing; industrial and retail segments.

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

· a 68-unit multi-family residential property in Bismarck, North Dakota, for a purchase price of $8.5 million and

· an approximately 12.7-acre parcel of vacant land in Monticello, Minnesota, for a purchase price of $1.7 million.

Also during the second quarter of fiscal year 2015, the Company placed in service 121 units of the 233-unit Commons at Southgate multi-family residential property in Minot, North Dakota, in which the Company has an approximately 52.9% interest; 52 units of the 130-unit Red 20 multi-family residential property in Minneapolis, Minnesota, in which the Company has an approximately 58.6% interest 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 second quarter of fiscal year 2015, the Company sold one multi-family residential property, one office property and one retail property, along with the adjacent unimproved land for a total sales price of $10.9 million.

During the second 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 Company expects to see continued favorable results in this segment in the remainder of fiscal year 2015. Demand was strong for the approximately 227 apartment units the Company placed in service during the quarter, at three joint venture multi-family residential projects: the Commons at Southgate property in Minot, North Dakota, Red 20 in Minneapolis, Minnesota, and Renaissance Heights in Williston, North Dakota. 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 residents.

The Company's office segment, mostly concentrated in Minnesota, continued to be affected by a number of adverse macro conditions. Demand for office space continues to be limited, with space absorption in the Minneapolis market in particular concentrated in prime locations, and suburban office properties continuing to lag in terms of occupancy. 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 office portfolio. As a result, although the Company has experienced some modest growth in occupancy levels during the second quarter of fiscal year 2015 compared to the second quarter of fiscal year 2014, on an all-properties basis, 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 industrial and retail property markets continue to show signs of recovery. The Company's industrial properties are located primarily in the Minneapolis market, and all of these Minneapolis properties are 100% leased. The demand for bulk warehouse and manufacturing space in the Company's markets is strong, with rents generally rising. The retail recovery is evident in regard to the Company's Minneapolis-metro and grocery-anchored retail properties, which are performing well. Outstate locations, however, continue to experience less demand, with the recession-driven contraction not yet fully reversed.

The Company plans to continue in the remainder of fiscal year 2015 its disposition of assets in non-core markets, particularly office, industrial 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 second quarter of fiscal year 2015, IRET paid its 174th consecutive quarterly distribution. The $0.1300 per share/unit distribution was payable on October 1, 2014. Subsequent to the end of the second quarter of fiscal year 2015, on December 4, 2014, the Company's Board of Trustees declared a regular quarterly distribution of $0.1300 per share and unit on the Company's common shares of beneficial interest and the limited partnership units of IRET Properties, payable January 16, 2015 to common shareholders and unitholders of record on January 2, 2015. Also on December 4, 2014, the Company's Board of Trustees' declared a distribution of $0.5156 per share on the Company's Series A preferred shares of beneficial interest, payable December 31, 2014 to Series A preferred shareholders of record on December 15, 2014, and declared a distribution of $0.4968 per share on the Company's Series B preferred shares of beneficial interest, payable December 31, 2014 to Series B preferred shareholders of record on December 15, 2014.

As of October 31, 2014, IRET owns a diversified portfolio of 257 properties consisting of 96 multi-family residential properties, 63 office properties, 67 healthcare properties (including senior housing), 7 industrial properties and 24 retail properties.  IRET's common shares are publicly traded on the New York Stock Exchange (NYSE: IRET).

2

Company Snapshot

(as of October 31, 2014)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segments	Multi-Family Residential, Office, Healthcare, Industrial, Retail
Total Properties	257
Total Square Feet
(commercial properties)	9.9 million
Total Units
(multi-family residential properties)	11,292
Common Shares Outstanding (thousands)	119,809
Limited Partnership Units Outstanding (thousands)	14,731
Common Share Distribution - Quarter/Annualized	$0.13/$0.52
Dividend Yield	6.2%
Total Capitalization (see p.14 for detail)	$2.4 billion

Investor Information

(as of October 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 Contact:

Karin Wentz

kwentz@iret.com

3

Common Share Data (NYSE: IRET)

	2nd Quarter Fiscal Year 2015		1st Quarter Fiscal Year 2015		4th Quarter Fiscal Year 2014		3rd Quarter Fiscal Year 2014		2nd Quarter Fiscal Year 2014
High Closing Price	$	8.59	$	9.21	$	9.06	$	8.94	$	9.03
Low Closing Price	$	7.49	$	8.52	$	8.34	$	8.24	$	8.05
Average Closing Price	$	8.11	$	8.82	$	8.71	$	8.58	$	8.41
Closing Price at end of quarter	$	8.40	$	8.52	$	8.72	$	8.69	$	8.62
Common Share Distributions—annualized	$	0.520	$	0.520	$	0.520	$	0.520	$	0.520
Closing Dividend Yield - annualized		6.2%		6.1%		6.0%		6.0%		6.0%
Closing common shares outstanding (thousands)		119,809		114,763		109,019		106,937		105,554
Closing limited partnership units outstanding (thousands)		14,731		17,975		21,094		21,799		21,836
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	1,130,136	$	1,130,928	$	1,134,585	$	1,118,716	$	1,098,102

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.

Second Quarter Fiscal 2015 Developments in Progress and Acquisition

Arcata Apartments Golden Valley, MN	Chateau II Apartments Minot, ND
Northridge Apartments (interior) Bismarck, ND	Northridge Apartments (exterior) Bismarck, ND

4

Second Quarter Fiscal 2015

Percentage of Total Property Cost by State

5

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
ASSETS
Real estate investments
Property owned	$	2,013,770	$	2,025,327	$	1,996,031	$	2,042,290	$	2,032,747
Less accumulated depreciation		(426,545)		(435,317)		(424,288)		(439,233)		(431,318)
		1,587,225		1,590,010		1,571,743		1,603,057		1,601,429
Development in progress		146,390		131,862		104,609		89,086		90,052
Unimproved land		29,947		24,772		22,864		21,498		21,619
Total real estate investments		1,758,562		1,746,644		1,699,216		1,713,641		1,713,100
Real estate held for sale		41,183		6,508		2,951		0		2,620
Cash and cash equivalents		52,999		60,620		47,267		53,494		68,727
Other investments		329		329		329		643		642
Receivable arising from straight-lining of rents, net of allowance		27,425		27,286		27,096		27,026		26,336
Accounts receivable, net of allowance		3,719		7,013		10,206		15,540		6,541
Real estate deposits		4,924		3,741		145		3,502		230
Prepaid and other assets		2,263		3,428		4,639		8,197		7,605
Intangible assets, net of accumulated amortization		29,745		31,478		32,639		34,008		35,625
Tax, insurance, and other escrow		16,338		20,451		20,880		24,550		11,864
Property and equipment, net of accumulated depreciation		1,598		1,641		1,681		1,719		1,191
Goodwill		1,940		1,951		1,100		1,100		1,100
Deferred charges and leasing costs, net of accumulated amortization		20,445		20,677		21,072		21,138		20,666
TOTAL ASSETS	$	1,961,470	$	1,931,767	$	1,869,221	$	1,904,558	$	1,896,247
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable and accrued expenses	$	67,037	$	62,517	$	59,105	$	54,337	$	57,453
Revolving line of credit		40,500		35,500		22,500		22,500		10,000
Mortgages payable		1,013,161		1,017,574		997,689		1,008,524		1,021,170
Other		107,731		83,666		63,178		47,767		31,689
TOTAL LIABILITIES		1,228,429		1,199,257		1,142,472		1,133,128		1,120,312
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		6,373		6,313		6,203		6,113		6,044
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		918,221		884,415		843,268		829,816		818,516
Accumulated distributions in excess of net income		(420,036)		(407,052)		(389,758)		(344,294)		(331,116)
Total Investors Real Estate Trust shareholders' equity		636,859		616,037		592,184		624,196		626,074
Noncontrolling interests – Operating Partnership		63,207		84,250		105,724		117,803		120,678
Noncontrolling interests – consolidated real estate entities		26,602		25,910		22,638		23,318		23,139
Total equity		726,668		726,197		720,546		765,317		769,891
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	1,961,470	$	1,931,767	$	1,869,221	$	1,904,558	$	1,896,247

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Six Months Ended				Three Months Ended
OPERATING RESULTS	10/31/2014		10/31/2013		10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Real estate revenue	$	137,879	$	130,870	$	70,042	$	67,837	$	66,983	$	67,629	$	65,772
Real estate expenses		54,755		52,971		27,237		27,518		29,589		25,927		26,331
Gain on involuntary conversion		0		966		0		0		0		1,514		0
Net operating income		83,124		78,865		42,805		40,319		37,394		43,216		39,441
TRS senior housing revenue		1,636		0		843		793		0		0		0
TRS senior housing expenses		(1,418)		0		(725)		(693)		0		0		0
Depreciation/amortization		(34,724)		(36,167)		(17,668)		(17,056)		(17,262)		(17,489)		(17,167)
General and administrative		(7,744)		(6,637)		(3,468)		(4,276)		(3,303)		(2,935)		(3,205)
Impairment of real estate investments		(5,565)		0		(3,245)		(2,320)		(37,768)		(4,798)		0
Interest expense		(29,263)		(29,395)		(14,599)		(14,664)		(14,617)		(15,130)		(14,799)
Interest and other income		1,387		862		696		691		1,085		740		652
(Loss) income before loss on sale of real estate and other investments and income from discontinued operations		7,433		7,528		4,639		2,794		(34,471)		3,604		4,922
Loss on sale of real estate and other investments		(1,762)		0		1,231		(2,993)		(51)		0		0
(Loss) income from continuing operations		5,671		7,528		5,870		(199)		(34,522)		3,604		4,922
Income from discontinued operations		0		5,985		0		0		0		465		5,375
Net (loss) income	$	5,671	$	13,513	$	5,870	$	(199)	$	(34,522)	$	4,069	$	10,297
Net loss (income) attributable to noncontrolling interest – Operating Partnership		39		(1,276)		(363)		402		6,082		(130)		(1,226)
Net income attributable to noncontrolling interests – consolidated real estate entities		(747)		(372)		(393)		(354)		(102)		(436)		(284)
Net (loss) income attributable to Investors Real Estate Trust		4,963		11,865		5,114		(151)		(28,542)		3,503		8,787
Dividends to preferred shareholders		(5,757)		(5,757)		(2,878)		(2,879)		(2,878)		(2,879)		(2,878)
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(794)	$	6,108	$	2,236	$	(3,030)	$	(31,420)	$	624	$	5,909
Per Share Data
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted	$	(.01)	$	.01	$	.02	$	(.03)	$	(.29)	$	.00	$	.01
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted		.00		.05		.00		.00		.00		.00		.05
Net income per common share – basic & diluted	$	(.01)	$	.06	$	.02	$	(.03)	$	(.29)	$	.00	$	.06
Percentage of Revenues
Real estate expenses		39.7%		40.5%		38.9%		40.6%		44.2%		38.3%		40.0%
Depreciation/amortization		25.2%		27.6%		25.2%		25.1%		25.8%		25.9%		26.1%
General and administrative		5.6%		5.1%		5.0%		6.3%		4.9%		4.3%		4.9%
Interest		21.2%		22.5%		20.8%		21.6%		21.8%		22.4%		22.5%
Income from discontinued operations		0.0%		4.6%		0.0%		0.0%		0.0%		0.7%		8.2%
Net (loss) income		4.1%		10.3%		8.4%		(0.3)%		(51.5)%		6.0%		15.7%
Ratios
Adjusted EBITDA(1)/Interest expense		2.39x		2.30x		2.48x		2.29x		2.26x		2.13x		2.37x
Adjusted EBITDA(1)/Interest expense plus preferred distributions		2.02x		1.94x		2.10x		1.94x		1.90x		1.81x		2.00x

(1) See Definitions on page 32.  Adjusted EBITDA is a non-GAAP measure; see page 9 for a reconciliation of Adjusted EBITDA to net income.

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FUNDS FROM OPERATIONS(unaudited)

(in thousands, except per share and unit data)

	Six Months Ended				Three Months Ended
	10/31/2014		10/31/2013		10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Funds From Operations(1)
Net income (loss) attributable to Investors Real Estate Trust	$	4,963	$	11,865	$	5,114	$	(151)	$	(28,542)	$	3,503	$	8,787
Less dividends to preferred shareholders		(5,757)		(5,757)		(2,878)		(2,879)		(2,878)		(2,879)		(2,878)
Net (loss) income available to common shareholders		(794)		6,108		2,236		(3,030)		(31,420)		624		5,909
Adjustments:
Noncontrolling interests – Operating Partnership		(39)		1,276		363		(402)		(6,082)		130		1,226
Depreciation and amortization		34,661		37,045		17,624		17,037		17,239		17,546		17,490
Impairment of real estate investments		5,565		1,860		3,245		2,320		37,768		4,798		57
Loss (gain) on depreciable property sales	$	1,762	$	(6,641)		(1,231)		2,993		51		(358)		(4,698)
Funds from operations applicable to common shares and Units		41,155		39,648	$	22,237	$	18,918	$	17,556	$	22,740	$	19,984
FFO per share and unit - basic and diluted	$	0.31	$	0.32	$	0.17	$	0.14	$	0.14	$	0.17	$	0.16
Adjusted funds from operations(1)
Funds from operations applicable to common shares and Units	$	41,155	$	39,648	$	22,237	$	18,918	$	17,556	$	22,740	$	19,984
Adjustments:
Tenant improvements at same-store(2) properties		(2,665)		(4,184)		(542)		(2,169)		(1,610)		(4,205)		(1,841)
Leasing costs at same-store properties(2)		(1,247)		(1,651)		(699)		(578)		(1,038)		(1,219)		(735)
Recurring capital expenditures(1)(2)		(2,929)		(2,765)		(1,567)		(1,386)		(1,118)		(1,093)		(1,364)
Straight-line rents		(371)		(1,318)		(103)		(268)		(70)		(818)		(666)
Non-real estate depreciation		194		167		96		99		102		99		82
Share-based compensation expense(3)		1,675		617		601		1,073		272		272		302
Gain on involuntary conversion		0		(966)		0		0		0		(1,514)		0
Adjusted funds from operations applicable to common shares and Units	$	35,812	$	29,548	$	20,023	$	15,689	$	14,094	$	14,262	$	15,762
AFFO per share and unit - basic and diluted	$	0.27	$	0.24	$	0.15	$	0.12	$	0.11	$	0.11	$	0.12
Weighted average shares and units		132,598		125,440		133,295		131,332		129,244		128,027		126,713

(1) See Definitions on page 32.

(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.

(3) Three months ended 7/31/14, 4/30/14, 1/31/14 and 10/31/13 revised to include trustee share-based compensation expense.

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

(in thousands)

	Six Months Ended				Three Months Ended
	10/31/2014		10/31/2013		10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Adjusted EBITDA(1)
Net income (loss) attributable to Investors Real Estate Trust	$	4,963	$	11,865	$	5,114	$	(151)	$	(28,542)	$	3,503	$	8,787
Adjustments:
Noncontrolling interests – Operating Partnership		(39)		1,276		363		(402)		(6,082)		130		1,226
Income (loss) before noncontrolling interests – Operating Partnership		4,924		13,141		5,477		(553)		(34,624)		3,633		10,013
Add:
Interest expense		29,263		29,787		14,599		14,664		14,617		15,159		14,904
Depreciation/amortization related to real estate investments		33,012		35,268		16,814		16,198		16,449		16,825		16,675
Amortization related to non-real estate investments		1,712		1,832		840		872		826		758		839
Amortization related to real estate revenues(2)		131		113		66		65		66		62		59
Impairment of real estate investments		5,565		0		3,245		2,320		37,768		4,798		57
Less:
Interest income		(1,120)		(773)		(560)		(560)		(562)		(573)		(585)
Loss (gain) on sale of real estate and other investments		1,762		(6,641)		(1,231)		2,993		51		(358)		(4,698)
Gain on involuntary conversion		0		(966)		0		0		0		(1,514)		0
Adjusted EBITDA	$	75,249	$	71,761		39,250		35,999		34,591	$	38,790	$	37,264

(1) See Definitions on page 32.

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

9

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)	$	36,632	$	8,271	$	44,903	5.18%	4.4%
2016		70,368		0		70,368	5.47%	7.0%
2017		182,285		15,000		197,285	5.67%	19.4%
2018		64,681		22,000		86,681	3.99%	8.6%
2019		86,924		5,405		92,329	5.79%	9.1%
2020		117,655		13,483		131,138	5.48%	13.0%
2021		130,021		0		130,021	5.30%	12.8%
2022		130,595		0		130,595	5.61%	12.9%
2023		37,550		0		37,550	4.25%	3.7%
2024		73,251		0		73,251	4.31%	7.2%
Thereafter		19,040		0		19,040	4.98%	1.9%
Total maturities	$	949,002	$	64,159	$	1,013,161	5.26%	100.0%

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

	10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Balances Outstanding
Mortgage
Fixed rate	$	949,002	$	972,142	$	977,224	$	1,000,222	$	1,012,813
Variable rate		64,159		45,432		20,465		8,302		8,357
Mortgage total	$	1,013,161	$	1,017,574	$	997,689	$	1,008,524	$	1,021,170
Weighted Average Interest Rates
Secured		5.26%		5.32%		5.37%		5.48%		5.50%

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total(1)
Multi-Family Residential
Campus Center - St Cloud, MN	6/1/2015	$	0	$	1,167	$	0	$	0	$	0	$	1,167
Campus Knoll - St Cloud, MN	6/1/2015		0		778		0		0		0		778
Landmark - Grand Forks, ND	8/24/2015		0		1,606		0		0		0		1,606
Regency Park Estates - St Cloud, MN	1/1/2016		0		6,755		0		0		0		6,755
Pebble Springs – Bismarck, ND	7/1/2016		0		0		766		0		0		766
Southview – Minot, ND	7/1/2016		0		0		1,047		0		0		1,047
Homestead Gardens I – Rapid City, SD	7/11/16		0		0		7,063		0		0		7,063
River Ridge – Bismarck, ND	6/30/17		0		0		0		13,200		0		13,200
Evergreen II – Isanti, MN	11/1/2017		0		0		0		2,088		0		2,088
Ponds – Sartell, MN	11/1/2017		0		0		0		3,902		0		3,902
Summary of Debt due after Fiscal 2018			0		0		0		0		371,468		371,468
Sub-Total Multi-Family Residential		$	0	$	10,306	$	8,876	$	19,190	$	371,468	$	409,840
Office
Crosstown Centre - Eden Prairie, MN(2)	12/1/2014	$	9,334	$	0	$	0	$	0	$	0	$	9,334
Crosstown Centre - Eden Prairie, MN(2)	12/1/2014		3,111		0		0		0		0		3,111
Northgate I - Maple Grove, MN(3)	12/10/2014		4,879		0		0		0		0		4,879
Plymouth I - Plymouth, MN(4)	12/10/2014		1,094		0		0		0		0		1,094
Plymouth II - Plymouth, MN(4)	12/10/2014		1,094		0		0		0		0		1,094
Plymouth III - Plymouth, MN(4)	12/10/2014		1,346		0		0		0		0		1,346
West River Business Park - Waite Park, MN	1/1/2015		454		0		0		0		0		454
Burnsville Bluffs II – Burnsville, MN(5)	2/8/2015		1,654		0		0		0		0		1,654
Plymouth IV - Plymouth, MN(5)	2/8/2015		3,051		0		0		0		0		3,051
Plymouth V - Plymouth, MN(5)	2/8/2015		3,566		0		0		0		0		3,566
Highlands Ranch I - Highlands Ranch, CO	3/1/2015		7,873		0		0		0		0		7,873
Highlands Ranch II - Highlands Ranch, CO	3/1/2015		7,447		0		0		0		0		7,447
US Bank Financial Center - Bloomington, MN	7/1/2015		0		12,938		0		0		0		12,938
Rapid City 900 Concourse Drive - Rapid City, SD	8/1/2015		0		444		0		0		0		444
Westgate I - Boise, ID	8/1/2015		0		1,136		0		0		0		1,136
Westgate II - Boise, ID	8/1/2015		0		2,782		0		0		0		2,782
Brook Valley I - LaVista, NE	1/1/2016		0		1,233		0		0		0		1,233
Spring Valley IV - Omaha, NE	1/1/2016		0		734		0		0		0		734
Spring Valley V - Omaha, NE	1/1/2016		0		807		0		0		0		807
Spring Valley X - Omaha, NE	1/1/2016		0		749		0		0		0		749
Spring Valley XI - Omaha, NE	1/1/2016		0		734		0		0		0		734
American Corporate Center – Mendota Heights, MN	9/1/2016		0		0		8,733		0		0		8,733
Mendota Office Center I – Mendota Heights, MN	9/1/2016		0		0		3,761		0		0		3,761
Mendota Office Center II - Mendota Heights, MN	9/1/2016		0		0		5,556		0		0		5,556
Mendota Office Center III - Mendota Heights, MN	9/1/2016		0		0		3,819		0		0		3,819

11

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total(1)
Office - continued
Mendota Office Center IV - Mendota Heights, MN	9/1/2016	$	0	$	0	$	4,540	$	0	$	0	$	4,540
Corporate Center West – Omaha, NE(6)	10/6/2016		0		0		17,315		0		0		17,315
Farnam Executive Center – Omaha, NE(6)	10/6/2016		0		0		12,160		0		0		12,160
Flagship – Eden Prairie, MN(6)	10/6/2016		0		0		21,565		0		0		21,565
Gateway Corporate Center – Woodbury, MN(6)	10/6/2016		0		0		8,700		0		0		8,700
Miracle Hills One – Omaha, NE(6)	10/6/2016		0		0		8,895		0		0		8,895
Pacific Hills – Omaha, NE(6)	10/6/2016		0		0		16,770		0		0		16,770
Riverport – Maryland Heights, MO(6)	10/6/2016		0		0		19,690		0		0		19,690
Timberlands – Leawood, KS(6)	10/6/2016		0		0		13,155		0		0		13,155
Woodlands Plaza IV – Maryland Heights, MO(6)	10/6/2016		0		0		4,360		0		0		4,360
2030 Cliff Road – Eagan, MN	1/11/2017		0		0		922		0		0		922
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		1,165		0		1,165
Prairie Oak Business Center – Eden Prairie, MN	11/1/2017		0		0		0		3,168		0		3,168
7800 West Brown Deer Road – Milwaukee, WI	4/1/2018		0		0		0		10,421		0		10,421
Summary of Debt due after Fiscal 2018			0		0		0		0		77,159		77,159
Sub-Total Office		$	44,903	$	21,557	$	157,441	$	23,554	$	77,159	$	324,614
Healthcare
Garden View Medical - St Paul, MN	8/1/2015	$	0	$	500	$	0	$	0	$	0	$	500
Edina 6363 France Medical - St Paul, MN	8/6/2015		0		9,700		0		0		0		9,700
2800 Medical Building - Minneapolis, MN(2)	9/1/2015		0		5,101		0		0		0		5,101
2828 Medical Building - Minneapolis, MN(2)	9/1/2015		0		8,131		0		0		0		8,131
Edina 6405 France Medical - Edina, MN	9/1/2015		0		8,311		0		0		0		8,311
Ritchie Medical Plaza - St Paul, MN	9/1/2015		0		6,106		0		0		0		6,106
Airport Medical – Bloomington, MN	6/1/2016		0		0		603		0		0		603
Park Dental – Brooklyn Center, MN	6/1/2016		0		0		346		0		0		346
Edgewood Vista – Fargo, ND	10/25/2016		0		0		12,135		0		0		12,135
Sartell 2000 23rd St S – Sartell, MN	12/1/2016		0		0		2,033		0		0		2,033
Billings 2300 Grant Road – Billings, MT	12/31/2016		0		0		1,340		0		0		1,340
Missoula 3050 Great Northern Ave – Missoula, MT	12/31/2016		0		0		1,392		0		0		1,392
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		1,815		0		0		1,815
Edgewood Vista – East Grand Forks, MN	4/10/2017		0		0		2,764		0		0		2,764
Edgewood Vista – Sioux Falls, SD	4/10/2017		0		0		1,040		0		0		1,040
Edgewood Vista – Fremont, NE	3/1/2018		0		0		0		562		0		562
Edgewood Vista – Hastings, NE	3/1/2018		0		0		0		578		0		578
Edgewood Vista – Hermantown I, MN	3/1/2018		0		0		0		15,513		0		15,513
Edgewood Vista – Kalispell, MT	3/1/2018		0		0		0		580		0		580
Edgewood Vista – Missoula, MT	3/1/2018		0		0		0		824		0		824
Edgewood Vista – Omaha, NE	3/1/2018		0		0		0		367		0		367
Edgewood Vista – Virginia, MN	3/1/2018		0		0		0		13,196		0		13,196
St Michael Clinic – St. Michael, MN	4/1/2018		0		0		0		1,824		0		1,824
Summary of Debt due after Fiscal 2018			0		0		0		0		135,599		135,599
Sub-Total Healthcare		$	0	$	37,849	$	30,968	$	33,444	$	135,599	$	237,860

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

Property	Maturity Date	Fiscal 2015		Fiscal 2016		Fiscal 2017		Fiscal 2018		Thereafter		Total(1)
Industrial
Stone Container - Fargo, ND	12/1/2015	$	0	$	294	$	0	$	0	$	0	$	294
Stone Container - Fargo, ND	12/1/2015		0		362		0		0		0		362
Urbandale 3900 106th Street – Urbandale, IA	7/5/2017		0		0		0		10,493		0		10,493
Summary of Debt due after Fiscal 2018			0		0		0		0		2,266		2,266
Sub-Total Industrial		$	0	$	656	$	0	$	10,493	$	2,266	$	13,415
Retail
Summary of Debt due after Fiscal 2018		$	0	$	0	$	0	$	0	$	27,432		27,432
Sub-Total Retail		$	0	$	0	$	0	$	0	$	27,432	$	27,432
Total		$	44,903	$	70,368	$	197,285	$	86,681	$	613,924	$	1,013,161

* 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 October 31, 2014, the Company had borrowings of $40.5 million outstanding under this line. Construction loans and other debt totaled $107.7 million as of October 31, 2014.

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

(2) Loan was refinanced subsequent to October 31, 2014.

(3) Loan was paid off and the property sold subsequent to October 31, 2014.

(4) Loan was paid off subsequent to October 31, 2014.

(5) Anticipated pay off at maturity.

(6) Amount is part of a non-recourse $122.6 million CMBS loan, for which nine of the Company's 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.

13

 INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

	Three Months Ended
	10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Equity Capitalization
Common shares outstanding		119,809		114,763		109,019		106,937		105,554
Operating partnership (OP) units outstanding		14,731		17,975		21,094		21,799		21,836
Total common shares and OP units outstanding		134,540		132,738		130,113		128,736		127,390
Market price per common share (closing price at end of period)	$	8.40	$	8.52	$	8.72	$	8.69	$	8.62
Equity capitalization-common shares and OP units	$	1,130,136	$	1,130,928	$	1,134,585	$	1,118,716	$	1,098,102
Recorded book value of preferred shares	$	138,674	$	138,674	$	138,674	$	138,674	$	138,674
Total equity capitalization	$	1,268,810	$	1,269,602	$	1,273,259	$	1,257,390	$	1,236,776
Debt Capitalization
Total debt	$	1,160,628	$	1,135,892	$	1,083,321	$	1,078,741	$	1,062,788
Total capitalization	$	2,429,438	$	2,405,494	$	2,356,580	$	2,336,131	$	2,299,564
Total debt to total capitalization		0.48:1		0.47:1		0.46:1		0.46:1		0.46:1

	Six Months Ended				Three Months Ended
	10/31/2014		10/31/2013		10/31/2014		7/31/2014		4/30/2014		1/31/2014		10/31/2013
Earnings to fixed charges(1)		1.09		1.18		1.27x		(3)		(4)		1.15x		1.25x
Earnings to combined fixed charges and preferred distributions(1)		(2)		1.00		1.08x		(3)		(4)		0.97x		1.05x
Debt service coverage ratio(1)		1.64x		1.59x		1.71x		1.57x		1.53x		1.46x		1.64x
Distribution Data
Common shares and units outstanding at record date		133,527		126,629		133,527		130,795		129,372		128,004		126,629
Total common distribution paid	$	34,362	$	32,554	$	17,358	$	17,004	$	16,819	$	16,639	$	16,461
Common distribution per share and unit	$	.2600	$	.2600	$	.1300	$	.1300	$	.1300	$	.1300	$	.1300
Payout ratio (FFO per share and unit basis)(1)		83.9%		81.3%		76.5%		92.9%		92.9%		76.5%		81.3%
Payout ratio (AFFO per share and unit basis)(1)		96.3%		113.0%		86.7%		108.3%		118.2%		118.2%		108.3%

(1) See Definitions on page 32.

(2) Due to non-cash asset impairment and loss on sale charges of $7.3 million in the six months ended October 31, 2014, earnings were inadequate to cover combined fixed charges and preferred distributions by $3.0 million. Excluding the asset impairment and loss on sale charges, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.12 for the six months ended October 31, 2014.

(3) 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.

 (4) 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.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

SAME-STORE PROPERTIES NET OPERATING INCOME SUMMARY

(in thousands)

	Same-Store Properties(1)					Same-Store Properties(1)
	Three Months Ended October 31					Six Months Ended October 31
Segment	2014		2013		% Change	2014		2013		% Change
Multi-Family Residential	$	14,437	$	13,661	5.7%	$	27,761	$	27,054	2.6%
Office		8,883		9,350	(5.0)%		17,737		18,403	(3.6)%
Healthcare		12,103		11,897	1.7%		23,869		23,686	0.8%
Industrial		1,253		1,176	6.5%		2,406		2,371	1.5%
Retail		2,138		2,236	(4.4)%		4,306		4,124	4.4%
	$	38,814	$	38,320	1.3%	$	76,079	$	75,638	0.6%

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

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2014
	Reporting Segments
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Corporate and Other		Total
Real estate rental revenue
Same-store(1)	$	25,051	$	17,658	$	16,252	$	1,556	$	3,243	$	0	$	63,760
Non-same-store		4,543		1,326		184		37		192		0		6,282
Total		29,594		18,984		16,436		1,593		3,435		0		70,042
Real estate expenses
Same-store(1)		10,614		8,775		4,149		303		1,105		0		24,946
Non-same-store		1,550		721		24		(31)		27		0		2,291
Total		12,164		9,496		4,173		272		1,132		0		27,237
Net operating income (NOI)
Same-store(1)		14,437		8,883		12,103		1,253		2,138		0		38,814
Non-same-store		2,993		605		160		68		165		0		3,991
Net operating income	$	17,430	$	9,488	$	12,263	$	1,321	$	2,303	$	0	$	42,805
Reconciliation of NOI to net income (loss) available to common shareholders
TRS senior housing revenue	$	0	$	0	$	0	$	0	$	0	$	843	$	843
TRS senior housing expenses		0		0		0		0		0		(725)		(725)
Depreciation/amortization		(6,293)		(5,101)		(4,998)		(390)		(776)		(110)		(17,668)
General and administrative		0		0		0		0		0		(3,468)		(3,468)
Impairment of real estate investments		0		(3,245)		0		0		0		0		(3,245)
Interest expense		(5,621)		(4,788)		(3,715)		(202)		(354)		81		(14,599)
Interest and other income		0		0		0		0		0		696		696
Income (loss) before loss on sale of real estate and other investments		5,516		(3,646)		3,550		729		1,173		(2,683)		4,639
Gain on sale of real estate and other investments		1,418		(170)		0		0		1		(18)		1,231
Net income (loss)		6,934		(3,816)		3,550		729		1,174		(2,701)		5,870
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(363)		(363)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(393)		(393)
Net income (loss) attributable to Investors Real Estate Trust		6,934		(3,816)		3,550		729		1,174		(3,457)		5,114
Dividends to preferred shareholders		0		0		0		0		0		(2,878)		(2,878)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	6,934	$	(3,816)	$	3,550	$	729	$	1,174	$	(6,335)	$	2,236

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

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended October 31, 2013
	Reporting Segments
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Corporate and Other		Total
Real estate rental revenue
Same-store(1)	$	24,137	$	17,993	$	16,025	$	1,540	$	3,209	$	0	$	62,904
Non-same-store		1,301		1,374		0		31		162		0		2,868
Total		25,438		19,367		16,025		1,571		3,371		0		65,772
Real estate expenses
Same-store(1)		10,476		8,643		4,128		364		973		0		24,584
Non-same-store		686		882		0		137		42		0		1,747
Total		11,162		9,525		4,128		501		1,015		0		26,331
Net operating income (NOI)
Same-store(1)		13,661		9,350		11,897		1,176		2,236		0		38,320
Non-same-store		615		492		0		(106)		120		0		1,121
Net operating income	$	14,276	$	9,842	$	11,897	$	1,070	$	2,356	$	0	$	39,441
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization	$	(5,612)	$	(5,392)	$	(4,860)	$	(430)	$	(791)	$	(82)	$	(17,167)
General and administrative		0		0		0		0		0		(3,205)		(3,205)
Interest expense		(5,449)		(5,083)		(4,095)		(223)		(479)		530		(14,799)
Interest and other income		0		0		0		0		0		652		652
Income (loss) from continuing operations		3,215		(633)		2,942		417		1,086		(2,105)		4,922
Income (loss) from discontinued operations		55		(1,512)		0		6,829		3		0		5,375
Net income (loss)		3,270		(2,145)		2,942		7,246		1,089		(2,105)		10,297
Net income attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(1,226)		(1,226)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(284)		(284)
Net income (loss) attributable to Investors Real Estate Trust		3,270		(2,145)		2,942		7,246		1,089		(3,615)		8,787
Dividends to preferred shareholders		0		0		0		0		0		(2,878)		(2,878)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	3,270	$	(2,145)	$	2,942	$	7,246	$	1,089	$	(6,493)	$	5,909

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

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2014
	Reporting Segments
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Corporate and Other		Total
Real estate rental revenue
Same-store(1)	$	49,432	$	35,100	$	32,382	$	3,053	$	6,485	$	0	$	126,452
Non-same-store		7,889		2,731		352		110		345		0		11,427
Total		57,321		37,831		32,734		3,163		6,830		0		137,879
Real estate expenses
Same-store(1)		21,671		17,363		8,513		647		2,179		0		50,373
Non-same-store		2,711		1,461		77		74		59		0		4,382
Total		24,382		18,824		8,590		721		2,238		0		54,755
Net operating income (NOI)
Same-store(1)		27,761		17,737		23,869		2,406		4,306		0		76,079
Non-same-store		5,178		1,270		275		36		286		0		7,045
Net operating income	$	32,939	$	19,007	$	24,144	$	2,442	$	4,592	$	0	$	83,124
Reconciliation of NOI to net income (loss) available to common shareholders
TRS senior housing revenue	$	0	$	0	$	0	$	0	$	0	$	1,636	$	1,636
TRS senior housing expenses		0		0		0		0		0		(1,418)		(1,418)
Depreciation/amortization		(12,218)		(9,917)		(10,038)		(781)		(1,575)		(195)		(34,724)
General and administrative		0		0		0		0		0		(7,744)		(7,744)
Impairment of real estate investments		0		(3,428)		0		0		(1,384)		(753)		(5,565)
Interest expense		(11,066)		(9,866)		(7,407)		(405)		(703)		184		(29,263)
Interest and other income		0		0		0		0		0		1,387		1,387
Income (loss) before loss on sale of real estate and other investments		9,655		(4,204)		6,699		1,256		930		(6,903)		7,433
Loss on sale of real estate and other investments		1,418		(194)		0		(1,793)		(1,175)		(18)		(1,762)
Net income (loss)		11,073		(4,398)		6,699		(537)		(245)		(6,921)		5,671
Net loss attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		39		39
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(747)		(747)
Net income (loss) attributable to Investors Real Estate Trust		11,073		(4,398)		6,699		(537)		(245)		(7,629)		4,963
Dividends to preferred shareholders		0		0		0		0		0		(5,757)		(5,757)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	11,073	$	(4,398)	$	6,699	$	(537)	$	(245)	$	(13,386)	$	(794)

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

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

	Six Months Ended October 31, 2013
	Reporting Segments
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Corporate and Other		Total
Real estate rental revenue
Same-store(1)	$	47,978	$	35,968	$	32,098	$	3,059	$	6,350	$	0	$	125,453
Non-same-store		1,833		2,713		0		550		321		0		5,417
Total		49,811		38,681		32,098		3,609		6,671		0		130,870
Real estate expenses
Same-store(1)		20,924		17,565		8,412		688		2,226		0		49,815
Non-same-store		1,083		1,714		0		268		91		0		3,156
Total		22,007		19,279		8,412		956		2,317		0		52,971
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		966
Net operating income (NOI)
Same-store(1)		27,054		18,403		23,686		2,371		4,124		0		75,638
Non-same-store		1,716		999		0		282		230		0		3,227
Net operating income	$	28,770	$	19,402	$	23,686	$	2,653	$	4,354	$	0	$	78,865
Reconciliation of NOI to net income (loss) available to common shareholders
Depreciation/amortization		(11,082)		(10,789)		(11,572)		(953)		(1,604)		(167)		(36,167)
General and administrative		0		0		0		0		0		(6,637)		(6,637)
Interest expense		(10,786)		(10,188)		(7,723)		(555)		(984)		841		(29,395)
Interest and other income		0		0		0		0		0		862		862
Income (loss) from continuing operations		6,902		(1,575)		4,391		1,145		1,766		(5,101)		7,528
Income (loss) from discontinued operations		106		(1,794)		0		8,062		(389)		0		5,985
Net income (loss)		7,008		(3,369)		4,391		9,207		1,377		(5,101)		13,513
Net loss attributable to noncontrolling interests – Operating Partnership		0		0		0		0		0		(1,276)		(1,276)
Net income attributable to noncontrolling interests – consolidated real estate entities		0		0		0		0		0		(372)		(372)
Net income (loss) attributable to Investors Real Estate Trust		7,008		(3,369)		4,391		9,207		1,377		(6,749)		11,865
Dividends to preferred shareholders		0		0		0		0		0		(5,757)		(5,757)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	7,008	$	(3,369)	$	4,391	$	9,207	$	1,377	$	(12,506)	$	6,108

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

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

SAME-STORE PROPERTIES AND ALL PROPERTIES OCCUPANCY LEVELS BY SEGMENT

2nd Quarter Fiscal 2015 vs. 2nd Quarter Fiscal 2014

Segments	Same-Store Properties		All Properties
	2nd Quarter	2nd Quarter	2nd Quarter	2nd Quarter
	Fiscal 2015	Fiscal 2014	Fiscal 2015	Fiscal 2014
Multi-Family Residential	95.6%	94.4%	94.6%	93.7%
Office	83.3%	85.1%	81.6%	81.0%
Healthcare	96.0%	96.1%	96.1%	96.1%
Industrial	100.0%	95.4%	100.0%	70.2%
Retail	85.7%	87.5%	86.1%	86.6%

20

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTI-FAMILY RESIDENTIAL SUMMARY⁽²⁾

	Three Months Ended
	10/31/2014		7/31/2014			4/30/2014		1/31/2014		10/31/2013
Number of Units		11,292		11,080			10,779		10,725		10,705
Average Investment Per Unit
Same-Store	$	66,233	$	65,956	$		61,323	$	61,187	$	60,592
Non-Same-Store		133,763		125,239			100,374		96,467		93,353
All Properties	$	74,190	$	71,326	$		69,905	$	68,728	$	67,034
Average Scheduled Rent(1) per Unit
Same-Store	$	835	$	825	$		785	$	781	$	771
Non-Same-Store		1,320		1,220			1,051		1,010		976
All Properties	$	892	$	861	$		843	$	830	$	811
Total Receipts per Unit
Same-Store	$	844	$	820	$		773	$	767	$	768
Non-Same-Store		1,121		1,067			971		947		951
All Properties	$	877	$	842	$		816	$	806	$	804
Total Recurring Capital Expenditures per Unit(1)	$	158	$	139	$		133	$	130	$	160
Occupancy%
Same-Store		95.6%		93.8%			94.5%		93.5%		94.6%
Non-Same-Store		87.6%		89.5%			87.6%		85.3%		90.4%
All Properties		94.6%		93.4%			93.0%		91.8%		93.8%
Operating Expenses as a % of Scheduled Rent
Same-Store		43.7%		46.0%			50.2%		43.0%		45.6%
Non-Same-Store		28.8%		29.5%			45.9%		39.8%		41.0%
All Properties		41.1%		43.9%			49.0%		42.2%		44.5%

(1) See Definitions on page 32.

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

21

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 363,924 square feet for the three months ended October 31, 2014 and 653,905 square feet for the six months ended October 31, 2014. Despite our leasing efforts, occupancy in our same-store commercial portfolio decreased to 89.5% as of October 31, 2014, down from 90.0% as of October 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 October 31, 2014 and 2013

	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	43,428	86,863	140,417	84,829	183,845	171,692	83.3%	85.1%
Healthcare	2,632	9,590	61,672	3,734	64,304	13,324	96.0%	96.1%
Industrial	0	120,363	0	29,754	0	150,117	100.0%	95.4%
Retail	23,746	5,902	92,029	37,128	115,775	43,030	85.7%	87.5%
Total	69,806	222,718	294,118	155,445	363,924	378,163	89.5%	90.0%

(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. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period.

Six Months Ended October 31, 2014 and 2013

	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	82,548	213,855	267,149	142,374	349,697	356,229	83.3%	85.1%
Healthcare	11,579	31,093	100,688	17,262	112,267	48,355	96.0%	96.1%
Industrial	0	170,403	0	251,831	0	422,234	100.0%	95.4%
Retail	47,968	97,859	143,973	49,693	191,941	147,552	85.7%	87.5%
Total	142,095	513,210	511,810	461,160	653,905	974,370	89.5%	90.0%

(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.  Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period.

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Same-Store Properties)

New Leases

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

Three Months Ended October 31, 2014 and 2013

	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		43,428		86,863		4.6		3.9	$	14.73	$	16.38	$	19.92	$	14.77	$	5.91	$	5.17
Healthcare		2,632		9,590		3.4		4.6		19.89		20.28		9.25		50.48		0		10.12
Industrial		0		120,363		0		2.1		0		3.59		0		0.25		0		0.82
Retail		23,746		5,902		3.7		7.3		7.69		14.03		19.52		16.87		1.64		3.47
Total		69,806		222,718		4.1		4.3	$	12.53	$	9.57	$	19.38	$	8.51	$	4.23	$	2.99

(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.  Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions presented are based on square feet leased during the period. 

(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.

Six Months Ended October 31, 2014 and 2013

	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		82,548		213,855		4.7		4.6	$	13.86	$	14.38	$	15.69	$	15.01	$	5.09	$	4.67
Healthcare		11,579		31,093		5.5		5.3		20.82		21.43		25.05		49.94		7.03		6.79
Industrial		0		170,403		0		3.2		0		3.74		0		0.18		0		0.68
Retail		47,968		97,859		4.0		5.4		8.35		4.25		17.22		1.55		3.57		4.15
Total		142,095		513,210		4.6		4.7	$	12.57	$	9.34	$	16.97	$	9.63	$	4.74	$	3.37

(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.  Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions presented are based on square feet leased during the period. 

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

Our ability to maintain or increase occupancy rates is a principal driver of maintaining and increasing the average effective rents in our commercial segments. The increase in the average effective rental rate, estimated tenant improvements per square foot and leasing costs per square foot of new leases executed in the total commercial portfolio for the three months ended October 31, 2014 and the six months ended October 31, 2014 when compared to the same periods in the prior year is due primarily to the fact that there were no new industrial leases executed in the six months ended October 31, 2014, since industrial segment rents are typically lower on a per-square foot basis than rents charged for higher-finish office, retail and healthcare space.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASING SUMMARY (Same-Store Properties)

Lease Renewals

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

Three Months Ended October 31, 2014 and 2013

	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		140,417		84,829		70.0%		12.3%		2.2		4.3		2.4%		(5.0%)	$	0	$	6.52	$	1.23	$	5.70
Healthcare		61,672		3,734		38.0%		100.0%		5.6		3.0		(8.5%)		11.4%		11.77		0		0.46		0
Industrial		0		29,754		0%		100.0%		0		3.0		0%		16.1%		0		2.71		0		1.78
Retail		92,029		37,128		58.4%		77.2%		3.8		3.0		38.4%		11.2%		0.20		0.40		0		0.06
Total		294,118		155,445		63.0%		31.2%		3.4		3.6		3.5%		0.2%	$	2.53	$	4.17	$	0.68	$	3.47

Six Months Ended October 31, 2014 and 2013

	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		267,149		142,374		64.4%		55.8%		2.8		3.9		11.4%		(3.1%)	$	2.87	$	4.78	$	1.56	$	4.12
Healthcare		100,688		17,262		61.3%		100.0%		5.6		6.0		(3.9%)		8.2%		9.16		20.19		1.06		2.21
Industrial		0		251,831		0%		52.7%		0		3.2		0%		7.5%		0		0.32		0		0.48
Retail		143,973		49,693		46.7%		14.8%		4.0		3.5		33.7%		8.3%		1.85		0.30		0.05		0.05
Total		511,810		461,160		58.1%		49.4%		3.8		3.8		9.2%		2.3%	$	3.82	$	2.44	$	1.04	$	1.62

(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.  Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions are based on square feet leased during the period.

(2) Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases renewed. Beginning in the first quarter of fiscal year 2015, the category of renewed leases does not include leases that have become month-to-month leases; these month-to-month leases are considered lease amendments. Previous-period data has been revised to reflect this change.

(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 decline in the average growth in effective rents for the healthcare segment for the three months ended October 31, 2014 and the six months ended October 31, 2014 when compared to the same periods in the prior fiscal year is due to a 45,081 square foot lease renewal executed with the existing single tenant at our Pavilion I property in Duluth, Minnesota.  This lease was renewed at a lower rate than the previous expiring lease due to very low leasing transaction costs associated with the lease renewal.  Absent this lease transaction, the weighted average growth rate in effective rents for the three months ended October 31, 2014 would have been 3.7% and for the six months ended October 31, 2014 would have been 4.2%.

The increase in the weighted average growth in effective rents for the retail segment for the three months ended October 31, 2014 when compared to the same period in the prior fiscal year is due to a 47,150 square foot lease renewal executed at our Rochester, Minnesota Maplewood Square property.  Absent this lease transaction, the weighted average growth rate in effective rents for the three months ended October 31, 2014 would have been 5.3%.

In the three months ended July 31, 2014, IRET executed a 36,752 square foot lease renewal at our St. Cloud, Minnesota Westgate property that contained a significant tenant improvement allowance.  This significant tenant improvement allowance negotiated by the tenant required an increased rental rate to be negotiated by IRET as well.  Absent this lease, and the lease renewal at our Rochester, Minnesota Maplewood Square property mentioned above, the weighted average growth rate in effective rents for the commercial retail segment for the six months ended October 31, 2014 would have been 5.1% and the estimated tenant improvements cost per square foot would have been $0.98.

24

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 October 31, 2014.

Fiscal Year of Lease Expiration	# of Leases	Square Footage of  Expiring Leases(3)	Percentage of Total  Commercial Segments Leased Square Footage	Annualized BaseRent of ExpiringLeases at Expiration(2)		Percentage of Total  Commercial Segments Annualized Base Rent
2015(remainder)(1)	101	646,815	7.3%	$	10,538,030	8.6%
2016	129	1,180,099	13.3%		14,877,838	12.1%
2017	140	1,200,701	13.5%		19,351,009	15.7%
2018	96	735,386	8.3%		12,360,234	10.0%
2019	90	1,397,269	15.7%		18,325,130	14.9%
2020	48	675,769	7.6%		7,509,897	6.1%
2021	44	396,498	4.5%		5,633,415	4.6%
2022	46	1,400,202	15.8%		18,123,772	14.7%
2023	10	466,870	5.3%		2,002,925	1.6%
2024	46	428,590	4.8%		7,083,543	5.7%
Thereafter	21	349,594	3.9%		7,365,107	6.0%
Totals	771	8,877,793	100.0%	$	123,170,900	100.0%

(1) Includes month-to-month leases. As of October 31, 2014 month-to-month leases accounted for 415,222 square feet.

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

25

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

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

as of October 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	68	14.6%	1,521,147	17.3%
Fairview Health Services	9	39	3.7%	248,117	2.8%
St. Luke's Hospital of Duluth, Inc.	6	17	3.7%	198,775	2.3%
Applied Underwriters	3	28	2.4%	141,724	1.6%
HealthEast Care System	1	52	1.8%	114,316	1.3%
Microsoft (NASDAQ: MSFT)	1	50	1.4%	122,040	1.4%
Arcadis Corporate Services, Inc.	1	21	1.4%	71,430	0.8%
Affiliates of Siemens USA (NYSE: SI)	2	29	1.4%	112,848	1.3%
Nebraska Orthopaedic Hospital(2)	1	173	1.3%	61,758	0.7%
State of Idaho Department of Health and Welfare	2	40	1.2%	103,342	1.2%
Total/Weighted Average		49	32.9%	2,695,497	30.7%

(1) See Definitions on page 32.

(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.

26

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

COMMERCIAL LEASE EXPIRATIONS

 as of October 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
Office
2015(remainder)(3)	42	193,746	5.1%	$	4,734	$	24.43	8.0%
2016	59	641,415	16.8%		8,797		13.72	15.0%
2017	70	820,507	21.5%		14,084		17.16	24.0%
2018	53	482,630	12.6%		7,438		15.41	12.6%
2019	52	931,277	24.4%		13,080		14.05	22.2%
2020 and thereafter	62	752,390	19.6%		10,695		14.22	18.2%
	338	3,821,965	100.0%	$	58,828	$	15.39	100.0%
Healthcare
2015(remainder)(4)	28	364,726	12.3%	$	5,047	$	13.84	10.2%
2016	27	157,311	5.3%		3,021		19.20	6.1%
2017	32	165,091	5.5%		3,507		21.24	7.0%
2018	21	174,514	5.9%		4,249		24.35	8.6%
2019	15	290,137	9.7%		4,172		14.38	8.4%
2020 and thereafter	105	1,824,438	61.3%		29,622		16.24	59.7%
	228	2,976,217	100.0%	$	49,618	$	16.67	100.0%
Industrial
2015(remainder)(5)	0	0	0.0%	$	0	$	0.00	0.0%
2016	4	248,098	24.3%		1,555		6.27	30.7%
2017	1	69,600	6.8%		356		5.12	7.0%
2018	0	0	0.0%		0		0.00	0.0%
2019	5	127,600	12.5%		515		4.03	10.1%
2020 and thereafter	5	574,813	56.4%		2,649		4.61	52.2%
	15	1,020,111	100.0%	$	5,075	$	4.98	100.0%
Retail
2015(remainder)(6)	31	88,343	8.3%	$	758	$	8.58	7.9%
2016	39	133,275	12.6%		1,505		11.29	15.6%
2017	37	145,503	13.7%		1,404		9.65	14.5%
2018	22	78,242	7.4%		674		8.61	7.0%
2019	18	48,255	4.6%		557		11.55	5.8%
2020 and thereafter	43	565,882	53.4%		4,752		8.40	49.2%
	190	1,059,500	100.0%	$	9,650	$	9.11	100.0%
Commercial Total
2015(remainder)(7)	101	646,815	7.3%	$	10,539	$	16.29	8.6%
2016	129	1,180,099	13.3%		14,878		12.61	12.1%
2017	140	1,200,701	13.5%		19,351		16.12	15.7%
2018	96	735,386	8.3%		12,361		16.81	10.0%
2019	90	1,397,269	15.7%		18,324		13.11	14.9%
2020 and thereafter	215	3,717,523	41.9%		47,718		12.84	38.7%
	771	8,877,793	100.0%	$	123,171	$	13.87	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 October 1, 2014 (cash basis), multiplied by 12.

(3) Includes month-to-month leases.  As of October 31, 2014 month-to-month leases accounted for 66,168 square feet.

(4) Includes month-to-month leases.  As of October 31, 2014 month-to-month leases accounted for 315,773 square feet.

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

(6) Includes month-to-month leases.  As of October 31, 2014 month-to-month leases accounted for 33,281 square feet.

(7) Includes month-to-month leases.  As of October 31, 2014 month-to-month leases accounted for 415,222 square feet.

27

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 ACQUISITION SUMMARY

as of October 31, 2014

(dollars in thousands)

Property	Location	Property Type	Acquisition Date	Square Feet/Units	Occupancy At Acquisition	October 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%	98.7%		15,000
Silver Springs	Rapid City, SD	Multi-Family Residential	June 2, 2014	52	98.0%	90.4%		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
Northridge(2)	Bismarck, ND	Multi-Family Residential	September 12, 2014	68	55.9%	55.9%		8,500
Monticello 7th Addition	Monticello, MN	Unimproved Land	October 9, 2014	n/a	n/a	n/a		1,660
			Total Square Feet	0			$	36,738
			Total Units	272

(1) Land is owned by a joint venture in which the Company will have an approximately 52.6% interest after the development project is completed. The joint venture is consolidated in IRET's financial statements.

(2) Newly constructed project was purchased from developer and is still in lease-up.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 DEVELOPMENT PLACED IN SERVICE SUMMARY

as of October 31, 2014

(dollars in thousands)

Property(1)	Location	Segment Type	Date Placed in Service	Square Feet/Units	Occupancy At Date Placed in Service	October 31, 2014 Occupancy	Development Cost
Dakota Commons(2)	Williston, ND	Multi-Family Residential	July 15, 2014	44	40.9%	100%	$	10,275

(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 the fiscal year 2014 and the six months ended October 31, 2014 and the Commons at Southgate and Red 20 projects, which were partially placed in service during the three months ended October 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 October 31, 2014 of $10.3 million.

29

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2015 DEVELOPMENT IN PROGESS SUMMARY

as of October 31, 2014

(dollars in thousands)

								(in fiscal years)
Project Name and Location	Planned Segment	Rentable Square Feet or Number of Units	Percentage Leased or Committed	Anticipated Total Cost		Costs as of October 31, 2014(1)		Anticipated Construction Completion
Commons at Southgate - Minot, ND(2)	Multi-Family Residential	233 units	70.1%	$	37,201	$	34,787	3Q 2015
Minot Wells Fargo Bank - Minot, ND	Retail	4,998 sq ft	100%		3,288		2,781	3Q 2015
Cypress Court II – St. Cloud, MN(3)	Multi-Family Residential	66 units	34.4%		7,028		5,777	3Q 2015
Arcata - Golden Valley, MN	Multi-Family Residential	165 units	3.0%		33,448		24,689	3Q 2015
Red 20 - Minneapolis, MN(4)	Multi-Family Residential and Commercial	130 units and 10,625 sq ft	30.0%		29,462		27,424	3Q 2015
Minot Office Center - Minot, ND	Retail	7,963 sq ft	0%		2,923		1,300	1Q 2016
Roseville 3075 Long Lake Rd - Roseville, MN	Industrial	202,807 sq ft	5.4%		13,915		7,347	1Q 2016
Renaissance Heights I - Williston, ND(5)	Multi-Family Residential	288 units	37.2%		62,362		50,607	1Q 2016
Chateau II - Minot, ND	Multi-Family Residential	72 units	0%		14,711		8,500	1Q 2016
71 France Phase I - Edina, MN(6)	Multi-Family Residential	109 units	0%		27,458		9,649	1Q 2016
Cardinal Point - Grand Forks, ND	Multi-Family Residential	251 units	0%		40,042		13,565	2Q 2016
Deer Ridge – Jamestown, ND	Multi-Family Residential	163 units	0%		24,519		5,646	2Q 2016
Edina 6565 France SMC III - Edina, MN	Medical	67,890 sq ft	21.0%		34,665		10,840	2Q 2016
PrairieCare Medical - Brooklyn Park, MN	Medical	72,588 sq ft	100%		24,251		7,458	2Q 2016
Other	n/a	n/a	n/a		n/a		1,390	n/a
				$	355,273	$	211,760

(1) Includes costs related to development projects that are placed in service in phases (Commons at Southgate - $19.3 million, Red 20 - $11.6 million, Renaissance Heights I - $34.5 million).

(2) The Company is currently 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) The project will be constructed in three phases, and at the conclusion of construction of the third phase, the Company will have an approximately 52.6% interest in the joint venture entity constructing 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 retail space.

30

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

ACQUISITIONS AND DEVELOPMENT LIQUIDITY PROFILE

as of October 31, 2014

(in millions)

Sources of Liquidity		Liquidity Needs
Liquidity Source	Amount	Liquidity Need	Amount
Cash on balance sheet as of 10/31/14(1)	$ 53	Acquisitions	$ 28
Line of credit availability(2)	$ 50	Development	$ 65
Disposition proceeds(3)	$ 17
Estimated new debt on acquisitions	$ 17
Total Potential Liquidity	$ 137	Total Liquidity Needs	$ 93
Excess Liquidity / (Need)	$ 44
Capital Sources
Six Months Ended 10/31/14		FY2014
Capital Source	Proceeds Generated	Capital Source	Proceeds Generated
Sale of common shares under dividend  reinvestment and share purchase plan	$ 27	Sale of common shares under dividend  reinvestment and share purchase plan	$ 41
Proceeds from sales of real estate and  discontinued operations	$ 17	Proceeds from sales of real estate and  discontinued operations	$ 80
Total Capital Generated	$ 44	Total Capital Generated	$ 121

(1) Includes compensating balances of $11 million

(2) Line of credit of $90 million less $40 million drawn as of 10/31/14

(3) Disposition proceeds consists of $22 million of estimated gross proceeds, less estimated outstanding debt and estimated closing costs of $5 million from closed and pending sales for the period from 10/31/14 through 12/10/14. No assurances can be given that pending transactions will be completed on terms currently proposed, or at all.

(4) Acquisitions amount consists of estimated gross costs for closed and pending acquisitions for the period from 10/31/14 through 12/10/14. No assurances can be given that pending transactions will be completed on terms currently proposed, or at all.

(5) Development in progress of $364 million less construction loans closed or committed of $201 million = IRET equity required of $163 million. IRET equity required of $163 million less $98 million invested as of 10/31/14 = amount remaining to be invested of $65 million.

31

Definitions

October 31, 2014

Adjusted EBITDAis 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.

Same-store properties are properties owned or in service for the entirety of the periods being compared (except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, and properties sold or classified as held for sale), 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 office, healthcare, industrial and retail properties.

32