OPERATING SEGMENTS

12 Months Ended

Apr. 30, 2015

OPERATING SEGMENTS [Abstract]

OPERATING SEGMENTS

NOTE 11 · OPERATING SEGMENTS

IRET reports its results in three reportable segments: multifamily; healthcare, including senior housing; and industrial properties. During fiscal year 2016, the Company reduced its number of reportable segments from five to three when its office and retail segments fell below the quantitative thresholds for reporting as reportable segments.  Historical segment information has been reclassified in accordance with the Company’s current segment structure. The Company’s reportable segments are aggregations of similar properties.

Segment information in this report is presented based on net operating income (“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 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 following tables present real estate revenues and net operating income for the fiscal years ended April 30, 2015, 2014 and 2013 from our three reportable segments, and reconcile net operating income of reportable segments to net income as reported in the consolidated financial statements. Segment assets are also reconciled to Total Assets as reported in the consolidated financial statements.

	(in thousands)
Year Ended April 30, 2015	Multifamily		Healthcare		Industrial		All Other		Total
Real estate revenue	$	118,526	$	65,828	$	6,491	$	10,150	$	200,995
Real estate expenses	51,172		16,937		1,536		4,188		73,833
Net operating income	$	67,354	$	48,891	$	4,955	$	5,962	127,162
TRS senior housing revenue, net of expenses									523
Depreciation/amortization									(51,775		)
Administrative expenses									(11,824		)
Other expenses									(2,010		)
Impairment of real estate investments									(4,663		)
Interest expense									(40,071		)
Interest and other income									2,956
Income before gain on sale of real estate and other investments and income from discontinued operations									20,298
Gain on sale of real estate and other investments									6,093
Income from continuing operations									26,391
Income from discontinued operations									2,293
Net income									$	28,684
	(in thousands)
Year Ended April 30, 2014	Multifamily		Healthcare		Industrial		All Other		Total
Real estate revenue	$	102,059	$	64,887	$	6,894	$	11,539	$	185,379
Real estate expenses	46,138		16,899		2,043		4,725		69,805
Gain on involuntary conversion	2,480		0		0		0		2,480
Net operating income	$	58,401	$	47,988	$	4,851	$	6,814	118,054
TRS senior housing revenue, net of expenses									296
Depreciation/amortization									(50,069		)
Administrative expenses									(10,743		)
Other expenses									(2,129		)
Impairment of real estate investments									(7,700		)
Interest expense									(39,619		)
Interest and other income									2,148
Income before gain on sale of real estate and other investments and income from discontinued operations									10,238
Loss on sale of real estate and other investments									(51		)
Income from continuing operations									10,187
Loss from discontinued operations									(27,127		)
Net loss									$	(16,940	)

	(in thousands)
Year Ended April 30, 2013	Multifamily		Healthcare		Industrial		All Other		Total
Real estate revenue	$	89,923	$	61,625	$	6,700	$	11,485	$	169,733
Real estate expenses	38,223		16,529		1,871		5,547		62,170
Gain on involuntary conversion	3,852		0		0		1,232		5,084
Net operating income	$	55,552	$	45,096	$	4,829	$	7,170	112,647
Depreciation/amortization									(42,430		)
Administrative expenses									(8,494		)
Other expenses									(2,171		)
Interest expense									(40,441		)
Interest and other income									732
Income before gain on sale of real estate and other investments and income from discontinued operations									19,843
Gain on sale of real estate and other investments									0
Income from continuing operations									19,843
Income from discontinued operations									10,129
Net income									$	29,972

Segment Assets and Accumulated Depreciation

	(in thousands)
As of April 30, 2015	Multifamily			Healthcare			Industrial			All Other			Total
Segment Assets
Property owned	$	946,520		$	495,021		$	60,611		$	44,215		$	1,546,367
Less accumulated depreciation	(180,414		)	(112,515		)	(11,256		)	(9,123		)	(313,308		)
Net property owned	$	766,106		$	382,506		$	49,355		$	35,092		1,233,059
Assets held for sale													463,103
Cash and cash equivalents													48,970
Other investments													329
Receivables and other assets													72,555
Development in progress													153,994
Unimproved land													25,827
Total assets													$	1,997,837

	(in thousands)
As of April 30, 2014	Multifamily			Healthcare			Industrial			All Other			Total
Segment Assets
Property owned	$	753,731		$	522,135		$	55,375		$	118,975		$	1,450,216
Less accumulated depreciation	(158,100		)	(105,376		)	(10,198		)	(28,731		)	302,405
Net property owned	$	595,631		$	416,759		$	45,177		$	90,244		1,147,811
Assets held for sale													457,307
Cash and cash equivalents													47,267
Other investments													329
Receivables and other assets													89,034
Development in progress													104,609
Unimproved land													22,864
Total assets													$	1,869,221