ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS

12 Months Ended

Apr. 30, 2015

ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS [Abstract]

ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS

NOTE 10 • ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS

PROPERTY ACQUISITIONS

IRET Properties added approximately $56.3 million of real estate properties to its portfolio through property acquisitions during fiscal year 2015, compared to $43.6 million in fiscal year 2014. The Company expensed approximately $216,000 and $176,000 of transaction costs related to the acquisitions in fiscal years 2015 and 2014, respectively. The fiscal year 2015 and 2014 acquisitions are detailed below.

Fiscal 2015 (May 1, 2014 to April 30, 2015)

			(in thousands)
			Total		Form of Consideration						Investment Allocation
Acquisitions	Date Acquired		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
119 unit – Legacy Heights - Bismarck, ND(4)		2015-03-19		15,000		14,300		700		0		1,207		13,742		51
				41,780		28,811		800		12,169		2,961		38,403		416
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(5)		2014-06-12		1,413		0		0		1,413		1,413		0		0
Monticello 7th Addition - Monticello, MN		2014-10-09		1,660		1,660		0		0		1,660		0		0
71 France Phase II & III - Edina, MN(5)		2014-11-04		3,309		0		0		3,309		3,309		0		0
Minot 1525 24th 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			$	56,297	$	38,606	$	800	$	16,891	$	17,478	$	38,403	$	416

(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) At acquisition, the purchase price included assets in development (land: $804,000, building: $7.8 million, escrow $1.3 million).

(5) 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.

Fiscal 2014 (May 1, 2013 to April 30, 2014)

			(in thousands)
			Total		Form of Consideration						Investment Allocation
Acquisitions	Date Acquired		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
39,500 sq ft Spring Creek Fruitland - Fruitland, ID		2014-02-05		7,050		7,050		0		0		550		6,500		0
				18,913		18,913		0		0		1,520		17,011		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, ID		2014-01-21		335		335		0		0		335		0		0
Isanti Unimproved - Isanti, MN		2014-02-04		50		50		0		0		50		0		0
Rapid City Unimproved - Rapid City, SD		2014-03-25		1,366		1,366		0		0		1,366		0		0
				5,067		3,167		0		1,900		5,067		0		0
Total Property Acquisitions			$	43,580	$	38,200	$	3,480	$	1,900	$	8,034	$	34,646	$	900

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

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

(3) Land is owned by a joint venture in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET’s financial statements.

Acquisitions in fiscal years 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 Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our fiscal year 2015 and 2014 acquisitions (excluding development projects placed in service) are detailed below.

	(in thousands)
Year Ended April 30,	2015			2014
Total revenue	$	2,565		$	1,897
Net income	$	(1	)	$	(82	)

DEVELOPMENT PROJECTS PLACED IN SERVICE

IRET Properties placed approximately $124.5 million of development projects in service during fiscal year 2015, compared to $53.5 million in fiscal year 2014. The fiscal year 2015 and 2014 development projects placed in service are detailed below.

Fiscal 2015 (May 1, 2014 to April 30, 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		26,412		28,312
233 unit - Commons at Southgate - Minot, ND(4)		2014-12-09		3,691		31,351		35,042
64 unit - Cypress Court II - St. Cloud, MN(5)		2015-01-01		447		6,320		6,767
165 unit - Arcata - Golden Valley, MN(6)		2015-01-01		2,088		29,640		31,728
				8,949		103,319		112,268
Industrial
202,807 sq ft Roseville 3075 Long Lake Road - Roseville, MN		2014-11-10		0		9,036		9,036
Retail
4,998 sq ft Minot Southgate Wells Fargo Bank - Minot, ND(7)		2014-11-10		992		2,193		3,185
Total Development Projects Placed in Service			$	9,941	$	114,548	$	124,489

(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 fiscal years 2014 and 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 April 30, 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 April 30, 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 $8.5 million, for a total project cost at April 30, 2015 of $35.0 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 $5.6 million, for a total project cost at April 30, 2015 of $6.8 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 $20.4 million, for a total project cost at April 30, 2015 of $31.7 million.

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

Fiscal 2014 (May 1, 2013 to April 30, 2014)

			(in thousands)
Development Projects Placed in Service (1)	Date Placed in Service		Land		Building		Development Cost
Multi-Family Residential
108 unit - Landing at Southgate - Minot, ND(2)		2013-09-04	$	2,262	$	12,864	$	15,126
132 unit - Cypress Court - St. Cloud, MN(3)		2013-11-01		1,136		12,428		13,564
146 unit - River Ridge - Bismarck, ND(4)		2013-12-02		589		24,268		24,857
Total Development Projects Placed in Service			$	3,987	$	49,560	$	53,547

(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 15 for additional information on the Renaissance Heights I project, which was partially placed in service during the three months ended April 30, 2014.

(2) 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 April 30, 2014 of $15.1 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest.

(3) 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 April 30, 2014 of $13.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86.1% interest.

(4) 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 April 30, 2014 of $24.9 million.

PROPERTY DISPOSITIONS

During fiscal year 2015, the Company disposed of one multi-family residential property, twelve office properties, one healthcare property, one industrial property, three retail properties, and two unimproved properties for an aggregate sales price of $76.0 million, compared to dispositions totaling $80.9 million in fiscal year 2014. The fiscal year 2015 and 2014 dispositions are detailed below.

Fiscal 2015 (May 1, 2014 to April 30, 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
26,000 sq ft  Northgate II -  Maple Grove, MN		2015-03-02		2,725		1,727		998
45,019 sq ft Burnsville Bluffs II -  Burnsville, MN		2015-03-25		1,245		2,245		(1,000	)
26,186 sq ft Plymouth I - Plymouth, MN		2015-03-25		1,985		1,492		493
26,186 sq ft Plymouth II - Plymouth, MN		2015-03-25		1,625		1,356		269
26,186 sq ft Plymouth III - Plymouth, MN		2015-03-25		2,500		1,977		523
126,936 sq ft Plymouth IV & V - Plymouth, MN		2015-03-25		12,910		11,706		1,204
58,300 sq ft Southeast Tech Center - Eagan, MN		2015-03-25		3,300		4,196		(896	)
61,138 sq ft Whitewater Plaza - Minnetonka, MN		2015-03-25		3,035		4,625		(1,590	)
13,374 sq ft 2030 Cliff Road - Eagan, MN		2015-04-21		950		834		116
				45,100		44,858		242
Healthcare
45,222 sq ft Jamestown Medical Office Building - Jamestown, MN		2015-02-05		12,819		8,710		4,109
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
14,820 sq ft Weston Walgreens – Weston, WI		2015-02-27		5,177		2,152		3,025
				9,250		6,768		2,482
Unimproved Land
Kalispell Unimproved - Kalispell, MT		2014-10-15		670		670		0
Weston – Weston, WI		2015-02-17		158		158		0
				828		828		0
Total Property Dispositions			$	76,048	$	69,590	$	6,458

Fiscal 2014 (May 1, 2013 to April 30, 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 45th 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 2075NW 94th 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