SEGMENT REPORTING

9 Months Ended

Jan. 31, 2015

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING

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

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

The revenues and net operating income for these reportable segments are summarized as follows for the three and nine month periods ended January 31, 2015 and 2014, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements.

Three Months Ended January 31, 2015	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	30,256	$	19,086	$	17,587	$	1,741	$	3,283	$	71,953
Real estate expenses		13,318		9,050		4,315		501		1,250		28,434
Net operating income	$	16,938	$	10,036	$	13,272	$	1,240	$	2,033		43,519
TRS senior housing revenue												963
TRS senior housing expenses												(825)
Depreciation/amortization												(17,750)
General and administrative												(3,242)
Impairment of real estate investments												(540)
Interest expense												(14,595)
Interest and other income												670
Income before gain on sale of real estate and other investments												8,200
Gain on sale of real estate and other investments												951
Net income											$	9,151

Three Months Ended January 31, 2014	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	25,848	$	19,394	$	17,242	$	1,664	$	3,481	$	67,629
Real estate expenses		10,998		9,037		4,120		493		1,279		25,927
Gain on involuntary conversion		1,514		0		0		0		0		1,514
Net operating income	$	16,364	$	10,357	$	13,122	$	1,171	$	2,202		43,216
TRS senior housing revenue												804
TRS senior housing expenses												(671)
Depreciation/amortization												(17,489)
General and administrative												(2,935)
Impairment of real estate investments												(4,798)
Interest expense												(15,130)
Interest and other income												607
Income from continuing operations												3,604
Income from discontinued operations												465
Net income											$	4,069

Nine Months Ended January 31, 2015	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	87,576	$	56,917	$	50,322	$	4,904	$	10,113	$	209,832
Real estate expenses		37,700		27,873		12,905		1,223		3,488		83,189
Net operating income	$	49,876	$	29,044	$	37,417	$	3,681	$	6,625		126,643
TRS senior housing revenue												2,599
TRS senior housing expenses												(2,243)
Depreciation/amortization												(52,474)
General and administrative												(10,986)
Impairment of real estate investments												(6,105)
Interest expense												(43,858)
Interest and other income												2,057
Income before loss on sale of real estate and other investments												15,633
Loss on sale of real estate and other investments												(811)
Net income											$	14,822

Nine Months Ended January 31, 2014	(in thousands)
	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Real estate revenue	$	75,659	$	58,075	$	49,340	$	5,273	$	10,152	$	198,499
Real estate expenses		33,006		28,315		12,534		1,447		3,596		78,898
Gain on involuntary conversion		2,480		0		0		0		0		2,480
Net operating income	$	45,133	$	29,760	$	36,806	$	3,826	$	6,556		122,081
TRS senior housing revenue												804
TRS senior housing expenses												(671)
Depreciation/amortization												(53,656)
General and administrative												(9,572)
Impairment of real estate investments												(4,798)
Interest expense												(44,525)
Interest and other income												1,469
Income from continuing operations												11,132
Income from discontinued operations												6,450
Net income											$	17,582

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of January 31, 2015, and April 30, 2014, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of January 31, 2015	Multi-Family Residential		Office		Healthcare		Industrial		Retail		Total
Segment Assets
Property owned	$	932,718	$	478,590	$	519,588	$	50,900	$	111,352	$	2,093,148
Less accumulated depreciation		(172,987)		(112,093)		(115,395)		(10,836)		(27,842)		(439,153)
Net property owned	$	759,731	$	366,497	$	404,193	$	40,064	$	83,510		1,653,995
Real estate held for sale												44,259
Cash and cash equivalents												52,148
Other investments												329
Receivables and other assets												108,931
Development in progress												114,005
Unimproved land												27,675
Total assets											$	2,001,342

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