North Dakota
|
45-0311232
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
1400 31st Avenue SW, Suite 60
|
|
Post Office Box 1988
|
|
Minot, ND 58702-1988
|
|
(Address of principal executive offices) (Zip code)
|
Yes R
|
No £
|
Yes R
|
No £
|
Large accelerated filer R
|
Accelerated filer £
|
|
Non-accelerated filer £
|
Smaller Reporting Company £
|
Yes £
|
No R
|
·
|
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 $1.6 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.
|
·
|
The acquisition of a multi-family residential property in Sartell, Minnesota, for approximately $2.8 million, adding 24 units to the Company's multi-family residential portfolio.
|
·
|
The acquisition of a senior housing property with and associated parcel of unimproved land in Sartell, Minnesota, for approximately $12.4 million.
|
·
|
The acquisition of a multi-family residential property in Grand Forks, North Dakota, for approximately $10.6 million, adding 96 units to the Company's multi-family residential portfolio.
|
·
|
The disposition of three office properties and five industrial properties for a total sales price of approximately $47.4 million.
|
·
|
The commencement of construction of the Company's 165-unit Arcata Apartments project in Golden Valley, Minnesota.
|
·
|
The commencement of construction of the RED 20 project in northeast Minneapolis, Minnesota, with 130 apartment units and approximately 10,000 square feet of commercial space, of which project the Company owns approximately 58.6%, with the remainder owned by the Company's joint venture partner.
|
·
|
The commencement of construction of the Company's 251-unit Cardinal Point Apartments project in Grand Forks, North Dakota.
|
·
|
The execution of a Sales Agreement with Robert W. Baird & Co. Incorporated, under which the Company may from time to time offer and sell its common shares of beneficial interest having an aggregate gross sales price of up to $75.0 million, pursuant to an at-the-market (ATM) program.
|
(in thousands, except percentages)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
October 31
|
2014 vs 2013
|
October 31
|
2014 vs 2013
|
|||||||||||
2014
|
2013
|
$ Change
|
% Change
|
2014
|
2013
|
$ Change
|
% Change
|
|||||||
Real estate rentals
|
$
|
58,835
|
$
|
54,477
|
$
|
4,358
|
8.0%
|
$
|
115,961
|
$
|
108,100
|
$
|
7,861
|
7.3%
|
Tenant reimbursement
|
11,207
|
11,295
|
(88)
|
(0.8)%
|
21,918
|
22,770
|
(852)
|
(3.7)%
|
||||||
TRS senior housing revenue
|
843
|
0
|
843
|
n/a
|
1,636
|
0
|
1,636
|
n/a
|
||||||
TOTAL REVENUE
|
70,885
|
65,772
|
5,113
|
7.8%
|
139,515
|
130,870
|
8,645
|
6.6%
|
||||||
Depreciation/amortization related to real estate investments
|
16,828
|
16,367
|
461
|
2.8%
|
33,012
|
34,423
|
(1,411)
|
(4.1)%
|
||||||
Utilities
|
5,093
|
5,208
|
(115)
|
(2.2)%
|
9,774
|
10,131
|
(357)
|
(3.5)%
|
||||||
Maintenance
|
7,828
|
7,162
|
666
|
9.3%
|
15,592
|
14,891
|
701
|
4.7%
|
||||||
Real estate taxes
|
8,266
|
8,361
|
(95)
|
(1.1)%
|
16,767
|
16,736
|
31
|
0.2%
|
||||||
Insurance
|
1,345
|
1,413
|
(68)
|
(4.8)%
|
3,081
|
2,714
|
367
|
13.5%
|
||||||
Property management expenses
|
4,355
|
4,184
|
171
|
4.1%
|
8,985
|
8,319
|
666
|
8.0%
|
||||||
Other property expenses
|
350
|
3
|
347
|
11566.7%
|
556
|
180
|
376
|
208.9%
|
||||||
TRS senior housing expenses
|
725
|
0
|
725
|
n/a
|
1,418
|
0
|
1,418
|
n/a
|
||||||
General and administrative
|
3,468
|
3,205
|
263
|
8.2%
|
7,744
|
6,637
|
1,107
|
16.7%
|
||||||
Amortization related to non-real estate investments
|
840
|
800
|
40
|
5.0%
|
1,712
|
1,744
|
(32)
|
(1.8)%
|
||||||
Impairment of real estate investments
|
3,245
|
0
|
3,245
|
n/a
|
5,565
|
0
|
5,565
|
n/a
|
||||||
TOTAL EXPENSES
|
52,343
|
46,703
|
5,640
|
12.1%
|
104,206
|
95,775
|
8,431
|
8.8%
|
||||||
Gain on involuntary conversion
|
0
|
0
|
0
|
n/a
|
0
|
966
|
(966)
|
(100.0)%
|
||||||
Operating income
|
18,542
|
19,069
|
(527)
|
(2.8)%
|
35,309
|
36,061
|
(752)
|
(2.1)%
|
||||||
Interest expense
|
(14,599)
|
(14,799)
|
200
|
(1.4)%
|
(29,263)
|
(29,395)
|
132
|
(0.4)%
|
||||||
Interest income
|
560
|
585
|
(25)
|
(4.3)%
|
1,120
|
773
|
347
|
44.9%
|
||||||
Other income
|
136
|
67
|
69
|
103.0%
|
267
|
89
|
178
|
200.0%
|
||||||
Income before gain (loss) on sale of real estate and other investments and income from discontinued operations
|
4,639
|
4,922
|
(283)
|
(5.7)%
|
7,433
|
7,528
|
(95)
|
(1.3)%
|
||||||
Gain (loss) on sale of real estate and other investments
|
1,231
|
0
|
1,231
|
n/a
|
(1,762)
|
0
|
(1,762)
|
n/a
|
||||||
Income from continuing operations
|
5,870
|
4,922
|
948
|
19.3%
|
5,671
|
7,528
|
(1,857)
|
(24.7)%
|
||||||
Income from discontinued operations
|
0
|
5,375
|
(5,375)
|
(100.0)%
|
0
|
5,985
|
(5,985)
|
(100.0)%
|
||||||
NET INCOME
|
5,870
|
10,297
|
(4,427)
|
(43.0)%
|
5,671
|
13,513
|
(7,842)
|
(58.0)%
|
||||||
Net (income) loss attributable to noncontrolling interests – Operating Partnership
|
(363)
|
(1,226)
|
863
|
(70.4)%
|
39
|
(1,276)
|
1,315
|
(103.1)%
|
||||||
Net income attributable to noncontrolling interests – consolidated real estate entities
|
(393)
|
(284)
|
(109)
|
38.4%
|
(747)
|
(372)
|
(375)
|
100.8%
|
||||||
Net income attributable to Investors Real Estate Trust
|
5,114
|
8,787
|
(3,673)
|
(41.8)%
|
4,963
|
11,865
|
(6,902)
|
(58.2)%
|
||||||
Dividends to preferred shareholders
|
(2,878)
|
(2,878)
|
0
|
0.0%
|
(5,757)
|
(5,757)
|
0
|
0.0%
|
||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
2,236
|
$
|
5,909
|
(3,673)
|
(62.2)%
|
$
|
(794)
|
$
|
6,108
|
(6,902)
|
(113.0)%
|
(in thousands)
|
||
Increase in Total
Revenue
Three Months
ended October 31, 2014
|
||
Rent in Fiscal 2015 primarily from properties acquired and development projects placed in service in Fiscal 2015
|
$
|
1,218
|
Rent in Fiscal 2015 primarily from properties acquired and development projects placed in service in Fiscal 2014 in excess of that received in Fiscal 2014 from the same properties
|
2,241
|
|
Increase in rent on same-store properties(1)
|
811
|
|
TRS senior housing revenue in excess of that received in Fiscal 2014(2)
|
843
|
|
Net increase in total revenue
|
$
|
5,113
|
(1)
|
See analysis of NOI by segment on pages 37-41 of the MD&A for additional information.
|
(2)
|
See discussion in TRS Senior Housing Expenses paragraph below.
|
(in thousands)
|
||
Increase in Total
Revenue
Six Months
ended October 31, 2014
|
||
Rent in Fiscal 2015 primarily from properties acquired and development projects placed in service in Fiscal 2015
|
$
|
1,726
|
Rent in Fiscal 2015 primarily from properties acquired and development projects placed in service in Fiscal 2014 in excess of that received in Fiscal 2014 from the same properties
|
4,330
|
|
Increase in rent on same-store properties(1)
|
953
|
|
TRS senior housing revenue in excess of that received in Fiscal 2014(2)
|
1,636
|
|
Net increase in total revenue
|
$
|
8,645
|
(1)
|
See analysis of NOI by segment on pages 37-41 of the MD&A for additional information.
|
(2)
|
See discussion in TRS Senior Housing Expenses paragraph below.
|
(in thousands, except percentages)
|
||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||
October 31
|
2014 vs 2013
|
October 31
|
2014 vs 2013
|
|||||||||||
2014
|
2013
|
$ Change
|
% Change
|
2014
|
2013
|
$ Change
|
% Change
|
|||||||
Mortgage debt
|
$
|
13,583
|
$
|
14,206
|
$
|
(623)
|
(4.4)%
|
$
|
26,992
|
$
|
28,376
|
$
|
(1,384)
|
(4.9)%
|
Line of credit
|
447
|
132
|
315
|
238.6%
|
868
|
263
|
605
|
230.0%
|
||||||
Other
|
569
|
461
|
108
|
23.4%
|
1,403
|
756
|
647
|
85.6%
|
||||||
Total interest expense
|
$
|
14,599
|
$
|
14,799
|
$
|
(200)
|
(1.4)%
|
$
|
29,263
|
$
|
29,395
|
$
|
(132)
|
(0.4)%
|
Same-Store Properties
|
All Properties
|
||||
As of October 31,
|
As of October 31,
|
||||
Segments
|
2014
|
2013
|
2014
|
2013
|
|
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%
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
All Segments
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
63,760
|
$
|
62,904
|
$
|
856
|
1.4%
|
$
|
126,452
|
$
|
125,453
|
$
|
999
|
0.8%
|
Non-same-store(1)
|
6,282
|
2,868
|
3,414
|
119.0%
|
11,427
|
5,417
|
6,010
|
110.9%
|
||||||
Total
|
$
|
70,042
|
$
|
65,772
|
$
|
4,270
|
6.5%
|
$
|
137,879
|
$
|
130,870
|
$
|
7,009
|
5.4%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
24,946
|
$
|
24,584
|
$
|
362
|
1.5%
|
$
|
50,373
|
$
|
49,815
|
$
|
558
|
1.1%
|
Non-same-store(1)
|
2,291
|
1,747
|
544
|
31.1%
|
4,382
|
3,156
|
1,226
|
38.8%
|
||||||
Total
|
$
|
27,237
|
$
|
26,331
|
$
|
906
|
3.4%
|
$
|
54,755
|
$
|
52,971
|
$
|
1,784
|
3.4%
|
Gain on involuntary conversion
|
||||||||||||||
Same-store
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
Non-same-store(1)
|
0
|
0
|
0
|
n/a
|
0
|
966
|
(966)
|
(100.0)%
|
||||||
Total
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
$
|
0
|
$
|
966
|
$
|
(966)
|
(100.0)%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
38,814
|
$
|
38,320
|
$
|
494
|
1.3%
|
$
|
76,079
|
$
|
75,638
|
$
|
441
|
0.6%
|
Non-same-store(1)
|
3,991
|
1,121
|
2,870
|
256.0%
|
7,045
|
3,227
|
3,818
|
118.3%
|
||||||
Total
|
$
|
42,805
|
$
|
39,441
|
$
|
3,364
|
8.5%
|
$
|
83,124
|
$
|
78,865
|
$
|
4,259
|
5.4%
|
TRS senior housing revenue
|
843
|
0
|
1,636
|
0
|
||||||||||
TRS senior housing expenses
|
(725)
|
0
|
(1,418)
|
0
|
||||||||||
Depreciation/amortization
|
(17,668)
|
(17,167)
|
(34,724)
|
(36,167)
|
||||||||||
General and administrative
|
(3,468)
|
(3,205)
|
(7,744)
|
(6,637)
|
||||||||||
Impairment of real estate investments
|
(3,245)
|
0
|
(5,565)
|
0
|
||||||||||
Interest expense
|
(14,599)
|
(14,799)
|
(29,263)
|
(29,395)
|
||||||||||
Interest and other income
|
696
|
652
|
1,387
|
862
|
||||||||||
Income before 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(2)
|
0
|
5,375
|
0
|
5,985
|
||||||||||
Net income
|
$
|
5,870
|
$
|
10,297
|
$
|
5,671
|
$
|
13,513
|
(1)
|
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)
|
Discontinued operations include gain on disposals and income from operations for:
|
2014 Dispositions – Anoka Strip Center, API Building, Bloomington Business Plaza, Bodycote Industrial Building, Brooklyn Park 7401 Boone Ave, Burnsville 2 Strip Center, Cedar Lake Business Center, Clive 2075 NW 94th Street, Dixon Avenue Industrial Park, Eagan Community, East Park, Fargo 1320 45th Street N, Lighthouse, Metal Improvement Company, Minnetonka 13600 County Road 62, Nicollet VII, Pillsbury Business Center, Roseville 2929 Long Lake Road, Sycamore Village and Winsted Industrial Building.
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
Multi-Family Residential
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
25,051
|
$
|
24,137
|
$
|
914
|
3.8%
|
$
|
49,432
|
$
|
47,978
|
$
|
1,454
|
3.0%
|
Non-same-store
|
4,543
|
1,301
|
3,242
|
249.2%
|
7,889
|
1,833
|
6,056
|
330.4%
|
||||||
Total
|
$
|
29,594
|
$
|
25,438
|
$
|
4,156
|
16.3%
|
$
|
57,321
|
$
|
49,811
|
$
|
7,510
|
15.1%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
10,614
|
$
|
10,476
|
$
|
138
|
1.3%
|
$
|
21,671
|
$
|
20,924
|
$
|
747
|
3.6%
|
Non-same-store
|
1,550
|
686
|
864
|
125.9%
|
2,711
|
1,083
|
1,628
|
150.3%
|
||||||
Total
|
$
|
12,164
|
$
|
11,162
|
$
|
1,002
|
9.0%
|
$
|
24,382
|
$
|
22,007
|
$
|
2,375
|
10.8%
|
Gain on involuntary conversion
|
||||||||||||||
Same-store
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
Non-same-store
|
0
|
0
|
0
|
n/a
|
0
|
966
|
(966)
|
(100.0)%
|
||||||
Total
|
$
|
0
|
$
|
0
|
$
|
0
|
n/a
|
$
|
0
|
$
|
966
|
$
|
(966)
|
(100.0)%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
14,437
|
$
|
13,661
|
$
|
776
|
5.7%
|
$
|
27,761
|
$
|
27,054
|
$
|
707
|
2.6%
|
Non-same-store
|
2,993
|
615
|
2,378
|
386.7%
|
5,178
|
1,716
|
3,462
|
201.7%
|
||||||
Total
|
$
|
17,430
|
$
|
14,276
|
$
|
3,154
|
22.1%
|
$
|
32,939
|
$
|
28,770
|
$
|
4,169
|
14.5%
|
Occupancy
|
2015
|
2014
|
|
Same-store
|
95.6%
|
94.4%
|
|
Non-same-store
|
87.6%
|
83.8%
|
|
Total
|
94.6%
|
93.7%
|
Number of Units
|
2015
|
2014
|
|
Same-store
|
9,895
|
9,896
|
|
Non-same-store
|
1,397
|
677
|
|
Total
|
11,292
|
10,573
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
Office
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
17,658
|
$
|
17,993
|
$
|
(335)
|
(1.9)%
|
$
|
35,100
|
$
|
35,968
|
$
|
(868)
|
(2.4)%
|
Non-same-store
|
1,326
|
1,374
|
(48)
|
(3.5)%
|
2,731
|
2,713
|
18
|
0.7%
|
||||||
Total
|
$
|
18,984
|
$
|
19,367
|
$
|
(383)
|
(2.0)%
|
$
|
37,831
|
$
|
38,681
|
$
|
(850)
|
(2.2)%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
8,775
|
$
|
8,643
|
$
|
132
|
1.5%
|
$
|
17,363
|
$
|
17,565
|
$
|
(202)
|
(1.2)%
|
Non-same-store
|
721
|
882
|
(161)
|
(18.3)%
|
1,461
|
1,714
|
(253)
|
(14.8)%
|
||||||
Total
|
$
|
9,496
|
$
|
9,525
|
$
|
(29)
|
(0.3)%
|
$
|
18,824
|
$
|
19,279
|
$
|
(455)
|
(2.4)%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
8,883
|
$
|
9,350
|
$
|
(467)
|
(5.0)%
|
$
|
17,737
|
$
|
18,403
|
$
|
(666)
|
(3.6)%
|
Non-same-store
|
605
|
492
|
113
|
23.0%
|
1,270
|
999
|
271
|
27.1%
|
||||||
Total
|
$
|
9,488
|
$
|
9,842
|
$
|
(354)
|
(3.6)%
|
$
|
19,007
|
$
|
19,402
|
$
|
(395)
|
(2.0)%
|
Occupancy
|
2015
|
2014
|
|
Same-store
|
83.3%
|
85.1%
|
|
Non-same-store
|
69.1%
|
57.0%
|
|
Total
|
81.6%
|
81.0%
|
Rentable Square Footage
|
2015
|
2014
|
|
Same-store
|
4,117,712
|
4,113,819
|
|
Non-same-store
|
566,392
|
714,292
|
|
Total
|
4,684,104
|
4,828,111
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
Healthcare
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
16,252
|
$
|
16,025
|
$
|
227
|
1.4%
|
$
|
32,382
|
$
|
32,098
|
$
|
284
|
0.9%
|
Non-same-store
|
184
|
0
|
184
|
n/a
|
352
|
0
|
352
|
n/a
|
||||||
Total
|
$
|
16,436
|
$
|
16,025
|
$
|
411
|
2.6%
|
$
|
32,734
|
$
|
32,098
|
$
|
636
|
2.0%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
4,149
|
$
|
4,128
|
$
|
21
|
0.5%
|
$
|
8,513
|
$
|
8,412
|
$
|
101
|
1.2%
|
Non-same-store
|
24
|
0
|
24
|
n/a
|
77
|
0
|
77
|
n/a
|
||||||
Total
|
$
|
4,173
|
$
|
4,128
|
$
|
45
|
1.1%
|
$
|
8,590
|
$
|
8,412
|
$
|
178
|
2.1%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
12,103
|
$
|
11,897
|
$
|
206
|
1.7%
|
$
|
23,869
|
$
|
23,686
|
$
|
183
|
0.8%
|
Non-same-store
|
160
|
0
|
160
|
n/a
|
275
|
0
|
275
|
n/a
|
||||||
Total
|
$
|
12,263
|
$
|
11,897
|
$
|
366
|
3.1%
|
$
|
24,144
|
$
|
23,686
|
$
|
458
|
1.9%
|
Occupancy
|
2015
|
2014
|
|
Same-store
|
96.0%
|
96.1%
|
|
Non-same-store
|
100.0%
|
n/a
|
|
Total
|
96.1%
|
96.1%
|
Rentable Square Footage
|
2015
|
2014
|
|
Same-store
|
2,956,216
|
2,956,022
|
|
Non-same-store
|
39,500
|
0
|
|
Total
|
2,995,716
|
2,956,022
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
Industrial
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
1,556
|
$
|
1,540
|
$
|
16
|
1.0%
|
$
|
3,053
|
$
|
3,059
|
$
|
(6)
|
(0.2)%
|
Non-same-store
|
37
|
31
|
6
|
19.4%
|
110
|
550
|
(440)
|
(80.0)%
|
||||||
Total
|
$
|
1,593
|
$
|
1,571
|
$
|
22
|
1.4%
|
$
|
3,163
|
$
|
3,609
|
$
|
(446)
|
(12.4)%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
303
|
$
|
364
|
$
|
(61)
|
(16.8)%
|
$
|
647
|
$
|
688
|
$
|
(41)
|
(6.0)%
|
Non-same-store
|
(31)
|
137
|
(168)
|
(122.6)%
|
74
|
268
|
(194)
|
(72.4)%
|
||||||
Total
|
$
|
272
|
$
|
501
|
$
|
(229)
|
(45.7)%
|
$
|
721
|
$
|
956
|
$
|
(235)
|
(24.6)%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
1,253
|
$
|
1,176
|
$
|
77
|
6.5%
|
$
|
2,406
|
$
|
2,371
|
$
|
35
|
1.5%
|
Non-same-store
|
68
|
(106)
|
174
|
164.2%
|
36
|
282
|
(246)
|
(87.2)%
|
||||||
Total
|
$
|
1,321
|
$
|
1,070
|
$
|
251
|
23.5%
|
$
|
2,442
|
$
|
2,653
|
$
|
(211)
|
(8.0)%
|
Occupancy
|
2015
|
2014
|
|
Same-store
|
100.0%
|
95.4%
|
|
Non-same-store
|
100.0%
|
11.2%
|
|
Total
|
100.0%
|
70.2%
|
Rentable Square Footage
|
2015
|
2014
|
|
Same-store
|
1,002,361
|
1,002,361
|
|
Non-same-store
|
17,750
|
427,672
|
|
Total
|
1,020,111
|
1,430,033
|
(in thousands, except percentages)
|
||||||||||||||
Qtr Ended
|
YTD Ended
|
|||||||||||||
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
Oct FY2015
|
Oct FY2014
|
$ Change
|
% Change
|
|||||||
Retail
|
||||||||||||||
Real estate revenue
|
||||||||||||||
Same-store
|
$
|
3,243
|
$
|
3,209
|
$
|
34
|
1.1%
|
$
|
6,485
|
$
|
6,350
|
$
|
135
|
2.1%
|
Non-same-store
|
192
|
162
|
30
|
18.5%
|
345
|
321
|
24
|
7.5%
|
||||||
Total
|
$
|
3,435
|
$
|
3,371
|
$
|
64
|
1.9%
|
$
|
6,830
|
$
|
6,671
|
$
|
159
|
2.4%
|
Real estate expenses
|
||||||||||||||
Same-store
|
$
|
1,105
|
$
|
973
|
$
|
132
|
13.6%
|
$
|
2,179
|
$
|
2,226
|
$
|
(47)
|
(2.1)%
|
Non-same-store
|
27
|
42
|
(15)
|
(35.7)%
|
59
|
91
|
(32)
|
(35.2)%
|
||||||
Total
|
$
|
1,132
|
$
|
1,015
|
$
|
117
|
11.5%
|
$
|
2,238
|
$
|
2,317
|
$
|
(79)
|
(3.4)%
|
Net operating income
|
||||||||||||||
Same-store
|
$
|
2,138
|
$
|
2,236
|
$
|
(98)
|
(4.4)%
|
$
|
4,306
|
$
|
4,124
|
$
|
182
|
4.4%
|
Non-same-store
|
165
|
120
|
45
|
37.5%
|
286
|
230
|
56
|
24.3%
|
||||||
Total
|
$
|
2,303
|
$
|
2,356
|
$
|
(53)
|
(2.2)%
|
$
|
4,592
|
$
|
4,354
|
$
|
238
|
5.5%
|
Occupancy
|
2015
|
2014
|
|
Same-store
|
85.7%
|
87.5%
|
|
Non-same-store
|
100.0%
|
77.1%
|
|
Total
|
86.1%
|
86.6%
|
Rentable Square Footage
|
2015
|
2014
|
|
Same-store
|
1,196,452
|
1,196,452
|
|
Non-same-store
|
34,226
|
111,870
|
|
Total
|
1,230,678
|
1,308,322
|
Lessee
|
% of Total Commercial
Segments' Minimum Rents
as of October 1, 2014
|
Affiliates of Edgewood Vista
|
14.6%
|
Fairview Health Services
|
3.7%
|
St. Luke's Hospital of Duluth, Inc.
|
3.7%
|
Applied Underwriters
|
2.4%
|
HealthEast Care System
|
1.8%
|
Microsoft (NASDAQ: MSFT)
|
1.4%
|
Arcadis Corporate Services, Inc.
|
1.4%
|
Affiliates of Siemens USA (NYSE: SI)
|
1.4%
|
Nebraska Orthopaedic Hospital(1)
|
1.3%
|
State of Idaho Department of Health and Welfare
|
1.2%
|
All Others
|
67.1%
|
Total Monthly Commercial Rent as of October 1, 2014
|
100.0%
|
(1)
|
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.
|
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.
|
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. |
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.
|
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.
|
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
|
0.0%
|
100.0%
|
0
|
3.0
|
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
|
(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.
|
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
|
0.0%
|
52.7%
|
0
|
3.2
|
0.0%
|
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.
|
Fiscal Year of Lease Expiration
|
# of Leases
|
Square Footage of
Expiring Leases(3)
|
Percentage of Total
Commercial Segments
Leased Square Footage
|
Annualized Base
Rent of Expiring Leases at Expiration(2) |
Percentage of Total
Commercial Segments
Annualized Base Rent
|
|||
2015(remainder)(1)
|
101
|
646,815
|
7.3%
|
$
|
8,617,535
|
7.3%
|
||
2016
|
129
|
1,180,099
|
13.3%
|
14,665,993
|
12.5%
|
|||
2017
|
140
|
1,200,701
|
13.5%
|
18,684,714
|
16.0%
|
|||
2018
|
96
|
735,386
|
8.3%
|
11,086,154
|
9.5%
|
|||
2019
|
90
|
1,397,269
|
15.7%
|
18,064,803
|
15.4%
|
|||
2020
|
48
|
675,769
|
7.6%
|
7,705,957
|
6.6%
|
|||
2021
|
44
|
396,498
|
4.5%
|
5,460,643
|
4.7%
|
|||
2022
|
46
|
1,400,202
|
15.8%
|
17,576,148
|
15.0%
|
|||
2023
|
10
|
466,870
|
5.3%
|
2,002,925
|
1.7%
|
|||
2024
|
46
|
428,590
|
4.8%
|
6,658,385
|
5.7%
|
|||
Thereafter
|
21
|
349,594
|
3.9%
|
6,569,672
|
5.6%
|
|||
Totals
|
771
|
8,877,793
|
100.0%
|
$
|
117,092,929
|
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.
|
·
|
a 68-unit multi-family residential property in Bismarck, North Dakota, on approximately 5.8 acres of land, for a purchase price of $8.5 million, of which $8.4 million was paid in cash, and the remainder in limited partnership units of the Operating partnership valued at $100,000; and
|
·
|
an approximately 12.7-acre parcel of vacant land in Monticello, Minnesota, acquired for possible future development, for a purchase price of $1.6 million, paid in cash.
|
(in thousands)
|
(in fiscal years)
|
||||||||||
Project Name and Location
|
Segment
|
Total Rentable
Square Feet
or Number of Units
|
Percentage
Leased
or Committed
|
Anticipated
Total
Cost(1)
|
Costs as of October 31, 2014(1)
|
Cost per
Square Foot
or Unit(1)
|
Date Placed
in Service
|
Anticipated
Same-Store
Date
|
|||
Dakota Commons - Williston, ND
|
Multi-Family Residential
|
44 units
|
100%
|
$
|
10,736
|
$
|
10,275
|
$
|
244,000
|
Q1 2015
|
Q1 2017
|
(1)
|
Excludes tenant improvements and leasing commissions.
|
(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.
|
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. |
Month
|
Fiscal Year 2015
|
Fiscal Year 2014
|
||
July
|
$
|
.1300
|
$
|
.1300
|
October
|
$
|
.1300
|
$
|
.1300
|
Exhibit No.
|
Description
|
Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick
|
|
President and Chief Executive Officer
|
|
/s/ Diane K. Bryantt
|
|
Diane K. Bryantt
|
|
Executive Vice President and Chief Financial Officer
|
|
Date: December 23, 2014
|
Exhibit No.
|
Description
|
12
|
Calculation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Distributions (filed as Exhibit 12 to the Company's Quarterly Report on Form 10-Q filed December 10, 2014, and incorporated herein by reference).
|
Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed as Exhibit 32 to the Company's Quarterly Report on Form 10-Q filed December 10, 2014 and incorporated herein by reference).
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended October 31, 2014 formatted in eXtensible Business Reporting Language ("XBRL"): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) notes to these condensed consolidated financial statements (submitted electronically as Exhibit 101 to the Company's Quarterly Report on Form 10-Q filed December 10, 2014).
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1. | I have reviewed this Amendment No. 1 to quarterly report on Form 10-Q/A of Investors Real Estate Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
By:
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/s/ Timothy, P. Mihalick
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Timothy, P. Mihalick, President & CEO
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1. | I have reviewed this Amendment No. 1 to quarterly report on Form 10-Q/A of Investors Real Estate Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
By:
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/s/ Diane K. Bryantt
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Diane K. Bryantt, Executive Vice President & CFO
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