ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS (Tables)

9 Months Ended

Jan. 31, 2015

ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS [Abstract]

The Company added approximately $41.3 million of real estate properties to its portfolio through property acquisitions during the nine months ended January 31, 2015, compared to $35.1 million in the nine months ended January 31, 2014. The Company expensed approximately $104,000 and $160,000 of transaction costs related to the acquisitions in the nine months ended January 31, 2015 and 2014, respectively. The Company's acquisitions during the nine months ended January 31, 2015 and 2014 are detailed below.

Nine Months Ended January 31, 2015

		(in thousands)
		Total Acquisition Cost		Form of Consideration						Investment Allocation
Acquisitions	Date Acquired	Total Acquisition Cost		Cash		Units⁽¹⁾		Other⁽²⁾		Land		Building		Intangible Assets

Multi-Family Residential
152 unit - Homestead Garden - Rapid City, SD⁽³⁾	2014-06-02	$	15,000	$	5,092	$	0	$	9,908	$	655	$	14,139	$	206
52 unit - Silver Springs - Rapid City, SD	2014-06-02		3,280		1,019		0		2,261		215		3,006		59
68 unit - Northridge - Bismarck, ND	2014-09-12		8,500		8,400		100		0		884		7,516		100
			26,780		14,511		100		12,169		1,754		24,661		365

Unimproved Land
Creekside Crossing - Bismarck, ND	2014-05-22		4,269		4,269		0		0		4,269		0		0
PrairieCare Medical - Brooklyn Park, MN	2014-06-05		2,616		2,616		0		0		2,616		0		0
71 France Phase I - Edina, MN⁽⁴⁾	2014-06-12		1,413		0		0		1,413		1,413		0		0
Monticello 7^th Addition - Monticello, MN	2014-10-09		1,660		1,660		0		0		1,660		0		0
71 France Phase II & III - Edina, MN⁽⁴⁾	2014-11-04		3,309		0		0		3,309		3,309		0		0
Minot 1525 24^th Ave SW - Minot, ND	2014-12-23		1,250		1,250		0		0		1,250		0		0
			14,517		9,795		0		4,722		14,517		0		0

Total Property Acquisitions		$	41,297	$	24,306	$	100	$	16,891	$	16,271	$	24,661	$	365

(1)	Value of limited partnership units of the Operating Partnership at the acquisition date.

(2)	Consists of assumed debt (Homestead Garden I: $9.9 million, Silver Springs: $2.3 million) and value of land contributed by the joint venture partner (71 France: $4.7 million).

(3)	At acquisition the Company adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.

(4)	Land was contributed to a joint venture in which the Company has an approximately 52.6% interest. The joint venture is consolidated in IRET's financial statements.

Nine Months Ended January 31, 2014

		(in thousands)
		Total Acquisition Cost		Form of Consideration						Investment Allocation
Acquisitions	Date Acquired	Total Acquisition Cost		Cash		Units⁽¹⁾		Other⁽²⁾		Land		Building		Intangible Assets

Multi-Family Residential
71 unit - Alps Park - Rapid City, SD	2013-05-01	$	6,200	$	2,920	$	3,280	$	0	$	287	$	5,551	$	362
96 unit - Southpoint - Grand Forks, ND	2013-09-05		10,600		10,400		200		0		576		9,893		131
24 unit - Pinecone Villas - Sartell, MN	2013-10-31		2,800		2,800		0		0		584		2,191		25
			19,600		16,120		3,480		0		1,447		17,635		518

Healthcare
98,174 sq ft Legends at Heritage Place - Sartell, MN	2013-10-31		11,863		11,863		0		0		970		10,511		382

Unimproved Land
Chateau II - Minot, ND	2013-05-21		179		179		0		0		179		0		0
Jamestown Unimproved - Jamestown, ND	2013-08-09		700		700		0		0		700		0		0
Red 20 - Minneapolis, MN⁽³⁾	2013-08-20		1,900		0		0		1,900		1,900		0		0
Legends at Heritage Place - Sartell, MN	2013-10-31		537		537		0		0		537		0		0
Spring Creek Fruitland - Fruitland, IA	2014-01-21		335		335		0		0		335		0		0
			3,651		1,751		0		1,900		3,651		0		0

Total Property Acquisitions		$	35,114	$	29,734	$	3,480	$	1,900	$	6,068	$	28,146	$	900

(1)	Value of limited partnership units of the Operating Partnership at the acquisition date.

(2)	Value of land contributed by the joint venture partner.

(3)	Land was contributed to a joint venture in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET's financial statements.

Results of operations from acquired properties

Acquisitions in the nine months ended January 31, 2015 and 2014 are immaterial to our real estate portfolio both individually and in the aggregate, and consequently no proforma information is presented. The results of operations from acquired properties are included in the Condensed Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our acquisitions in the nine months ended January 31, 2015 and 2014, respectively, (excluding development projects placed in service) are detailed below.

	(in thousands)
	Nine Months Ended January 31
	2015		2014
Total revenue	$	1,756	$	1,149
Net loss	$	(27)	$	(194)

Development projects placed in service

IRET Properties placed $113.6 million and $53.5 million of development projects in service during the nine months ended January 31, 2015 and 2014, respectively. The development projects placed in service during the nine months ended January 31, 2015 and 2014 are detailed below.

Nine Months Ended January 31, 2015

		(in thousands)
Development Projects Placed in Service⁽¹⁾	Date Placed in Service	Land		Building		Development Cost

Multi-Family Residential
44 unit - Dakota Commons - Williston, ND⁽²⁾	2014-07-15	$	823	$	9,596	$	10,419
130 unit - Red 20 - Minneapolis, MN⁽³⁾	2014-11-21		1,900		26,430		28,330
233 unit - Commons at Southgate - Minot, ND⁽⁴⁾	2014-12-09		3,691		30,921		34,612
64 unit - Cypress Court II - St. Cloud, MN⁽⁵⁾	2015-01-01		447		6,191		6,638
165 unit - Arcata - Golden Valley, MN⁽⁶⁾	2015-01-01		2,088		28,296		30,384
			8,949		101,434		110,383

Commercial Retail
4,998 sq ft Minot Wells Fargo Bank - Minot, ND⁽⁷⁾	2014-11-10		992		2,193		3,185

Total Development Projects Placed in Service		$	9,941	$	103,627	$	113,568

(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 Note 6 for additional information on the Renaissance Heights project, which was partially placed in service during the fiscal year 2014 and the nine months ended January 31, 2015.

(2)	Costs paid in prior fiscal years totaled $8.1 million. Additional costs paid in fiscal year 2015 totaled $2.3 million, for a total project cost at January 31, 2015 of $10.4 million.

(3)

Costs paid in prior fiscal years totaled $12.2 million. Additional costs paid in fiscal year 2015 totaled $16.1 million, for a total project cost at January 31, 2015 of $28.3 million. The project is owned by a joint venture entity in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET's financial statements.

(4)

Costs paid in prior fiscal years totaled $26.5 million, respectively. Additional costs paid in fiscal year 2015 totaled $8.1 million, for a total project cost at January 31, 2015 of $34.6 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest. The joint venture is consolidated in IRET's financial statements.

(5)

Costs paid in prior fiscal years totaled $1.2 million. Additional costs paid in fiscal year 2015 totaled $5.5 million, for a total project cost at January 31, 2015 of $6.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86.1% interest. The joint venture is consolidated in IRET's financial statements.

(6)	Costs paid in prior fiscal years totaled $11.3 million, respectively. Additional costs paid in fiscal year 2015 totaled $19.1 million, for a total project cost at January 31, 2015 of $30.4 million.

(7)	Costs paid in fiscal year 2015 totaled $3.2 million, including land acquired in fiscal year 2013.

Nine Months Ended January 31, 2014

		(in thousands)
Development Projects Placed in Service	Date Placed in Service	Land		Building		Development Cost

Multi-Family Residential
108 unit - Landing at Southgate - Minot, ND⁽¹⁾	2013-09-04	$	2,262	$	12,864	$	15,126
132 unit- Cypress Court - St. Cloud, MN⁽³⁾	2013-11-01		1,136		12,447		13,583
146 unit- River Ridge - Bismarck, ND⁽³⁾	2013-12-02		589		24,229		24,818

Total Development Projects Placed in Service		$	3,987	$	49,540	$	53,527

(1)	Costs paid in prior fiscal years totaled $6.3 million. Costs paid in fiscal year 2014 totaled $8.8 million for a total project cost at January 31, 2014 of $15.1 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest.

(2)	Costs paid in prior fiscal years totaled $5.8 million. Costs paid in fiscal year 2014 totaled $7.8 million for a total project cost at January 31, 2014 of $13.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86.1% interest.

(3)	Costs paid in prior fiscal years totaled $10.1 million. Costs paid in fiscal year 2014 totaled $14.7 million for a total project cost at January 31, 2014 of $24.8 million.

Schedule of Dispositions

During the third quarter of fiscal year 2014, the Company sold two multi-family residential properties, three industrial properties and two retail properties for a total sales price of $11.7 million. The following table details the Company's dispositions during the nine months ended January 31, 2015 and 2014:

Nine Months Ended January 31, 2015

		(in thousands)
Dispositions	Date Disposed	Sales Price		Book Value and Sales Cost		Gain/(Loss)

Multi-Family Residential
83 unit - Lancaster - St. Cloud, MN	2014-09-22	$	4,451	$	3,033	$	1,418

Office
73,338 sq ft Dewey Hill - Edina, MN	2014-05-19		3,100		3,124		(24)
74,568 sq ft Wirth Corporate Center - Golden Valley, MN	2014-08-29		4,525		4,695		(170)
79,297 sq ft Northgate I – Maple Grove, MN	2014-12-01		7,200		6,881		319
			14,825		14,700		125

Industrial
198,600 sq ft Eagan 2785 & 2795 - Eagan, MN	2014-07-15		3,600		5,393		(1,793)

Retail
25,644 sq ft Weston Retail - Weston, WI	2014-07-28		n/a		1,176		(1,176)
52,000 sq ft Kalispell Retail - Kalispell, MT	2014-10-15		1,230		1,229		1
34,226 sq ft Fargo Express Center & SC Pad - Fargo, ND	2014-11-18		2,843		2,211		632
			4,073		4,616		(543)

Unimproved Land
Kalispell Unimproved - Kalispell, MT	2014-10-15		670		670		0

Total Property Dispositions		$	27,619	$	28,412	$	(793)

Nine Months Ended January 31, 2014

		(in thousands)
Dispositions	Date Disposed	Sales Price		Book Value and Sales Cost		Gain/(Loss)

Multi-Family Residential
84 unit - East Park - Sioux Falls, SD	2013-12-18	$	2,214	$	2,358	$	(144)
48 unit - Sycamore Village - Sioux Falls, SD	2013-12-18		1,296		1,380		(84)
			3,510		3,738		(228)

Office
121,669 sq ft Bloomington Business Plaza - Bloomington, MN	2013-09-12		4,500		7,339		(2,839)
118,125 sq ft Nicollet VII - Burnsville, MN	2013-09-12		7,290		6,001		1,289
42,929 sq ft Pillsbury Business Center - Bloomington, MN	2013-09-12		1,160		1,164		(4)
			12,950		14,504		(1,554)

Industrial
41,880 sq ft Bodycote Industrial Building- Eden Prairie, MN	2013-05-13		3,150		1,375		1,775
42,244 sq ft Fargo 1320 45^th Street N - Fargo, ND	2013-05-13		4,700		4,100		600
49,620 sq ft Metal Improvement Company - New Brighton, MN	2013-05-13		2,350		1,949		401
172,057 sq ft Roseville 2929 Long Lake Road - Roseville, MN	2013-05-13		9,275		9,998		(723)
322,751 sq ft Brooklyn Park 7401 Boone Ave - Brooklyn Park, MN	2013-09-12		12,800		12,181		619
50,400 sq ft Cedar Lake Business Center - St. Louis Park, MN	2013-09-12		2,550		2,607		(57)
35,000 sq ft API Building - Duluth, MN	2013-09-24		2,553		1,488		1,065
59,292 sq ft Lighthouse - Duluth, MN	2013-10-08		1,825		1,547		278
606,006 sq ft Dixon Avenue Industrial Park - Des Moines, IA	2013-10-31		14,675		10,328		4,347
41,685 sq ft Winsted Industrial Building - Winsted, MN	2014-01-17		725		747		(22)
69,984 sq ft Minnetonka 13600 County Road 62 - Minnetonka, MN	2014-01-30		3,800		3,084		716
42,510 sq ft Clive 2075 NW 94^th Street - Clive, IA	2014-01-30		2,735		2,675		60
			61,138		52,079		9,059

Retail
23,187 sq ft Eagan Community - Eagan, MN	2013-05-14		2,310		2,420		(110)
10,625 sq ft Anoka Strip Center- Anoka, MN	2013-12-23		325		347		(22)
8,400 sq ft Burnsville 2 Strip Center - Burnsville, MN	2014-01-08		650		796		(146)
			3,285		3,563		(278)

Total Property Dispositions		$	80,883	$	73,884	$	6,999