☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
North Dakota
|
45-0311232
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Yes ☑ |
No ☐
|
Yes ☑ |
No ☐
|
Large accelerated filer ☑ |
Accelerated filer ☐
|
Non-accelerated filer ☐ |
Smaller Reporting Company ☐
|
Yes ☐ |
No ☑
|
Page
|
|
Part I. Financial Information
|
|
3 | |
3 | |
4 | |
5 | |
6 | |
8 | |
25 | |
42 | |
43 | |
Part II. Other Information
|
|
44 | |
44 | |
44 | |
44 | |
44 | |
44 | |
44 | |
45 |
(in thousands, except share data)
|
||||||||
July 31, 2015
|
April 30, 2015
|
|||||||
ASSETS
|
||||||||
Real estate investments
|
||||||||
Property owned
|
$
|
1,618,948
|
$
|
1,546,367
|
||||
Less accumulated depreciation
|
(325,536
|
)
|
(313,308
|
)
|
||||
1,293,412
|
1,233,059
|
|||||||
Development in progress
|
133,794
|
153,994
|
||||||
Unimproved land
|
24,542
|
25,827
|
||||||
Total real estate investments
|
1,451,748
|
1,412,880
|
||||||
Assets held for sale
|
453,217
|
463,103
|
||||||
Cash and cash equivalents
|
44,770
|
48,970
|
||||||
Other investments
|
329
|
329
|
||||||
Receivable arising from straight-lining of rents, net of allowance of $689 and $718, respectively
|
15,612
|
15,617
|
||||||
Accounts receivable, net of allowance of $135 and $438, respectively
|
3,650
|
2,865
|
||||||
Real estate deposits
|
6,614
|
2,489
|
||||||
Prepaid and other assets
|
2,224
|
3,174
|
||||||
Intangible assets, net of accumulated amortization of $20,643 and $19,610, respectively
|
25,179
|
26,213
|
||||||
Tax, insurance, and other escrow
|
8,858
|
10,073
|
||||||
Property and equipment, net of accumulated depreciation of $1,482 and $1,464, respectively
|
1,464
|
1,542
|
||||||
Goodwill
|
1,718
|
1,718
|
||||||
Deferred charges and leasing costs, net of accumulated amortization of $8,301 and $8,077, respectively
|
9,290
|
8,864
|
||||||
TOTAL ASSETS
|
$
|
2,024,673
|
$
|
1,997,837
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
||||||||
LIABILITIES
|
||||||||
Liabilities held for sale
|
$
|
308,812
|
$
|
321,393
|
||||
Accounts payable and accrued expenses
|
60,506
|
56,399
|
||||||
Revolving line of credit
|
83,500
|
60,500
|
||||||
Mortgages payable
|
669,734
|
668,112
|
||||||
Construction debt and other
|
165,873
|
144,111
|
||||||
TOTAL LIABILITIES
|
1,288,425
|
1,250,515
|
||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6)
|
||||||||
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES
|
6,361
|
6,368
|
||||||
EQUITY
|
||||||||
Investors Real Estate Trust shareholders’ equity
|
||||||||
Series A Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at July 31, 2015 and April 30, 2015, aggregate liquidation preference of $28,750,000)
|
27,317
|
27,317
|
||||||
Series B Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 4,600,000 shares issued and outstanding at July 31, 2015 and April 30, 2015, aggregate liquidation preference of $115,000,000)
|
111,357
|
111,357
|
||||||
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 125,519,557 shares issued and outstanding at July 31, 2015, and 124,455,624 shares issued and outstanding at April 30, 2015)
|
957,707
|
951,868
|
||||||
Accumulated distributions in excess of net income
|
(452,971
|
)
|
(438,432
|
)
|
||||
Total Investors Real Estate Trust shareholders’ equity
|
643,410
|
652,110
|
||||||
Noncontrolling interests – Operating Partnership (13,921,386 units at July 31, 2015 and 13,999,725 units at April 30, 2015)
|
56,120
|
58,325
|
||||||
Noncontrolling interests – consolidated real estate entities
|
30,357
|
30,519
|
||||||
Total equity
|
729,887
|
740,954
|
||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
$
|
2,024,673
|
$
|
1,997,837
|
(in thousands, except per share data)
|
||||||||
Three Months Ended
July 31
|
||||||||
2015
|
2014
|
|||||||
REVENUE
|
||||||||
Real estate rentals
|
$
|
45,522
|
$
|
43,564
|
||||
Tenant reimbursement
|
4,396
|
4,857
|
||||||
TRS senior housing revenue
|
1,038
|
793
|
||||||
TOTAL REVENUE
|
50,956
|
49,214
|
||||||
EXPENSES
|
||||||||
Depreciation/amortization related to real estate investments
|
13,272
|
12,214
|
||||||
Utilities
|
3,206
|
2,945
|
||||||
Maintenance
|
5,374
|
4,986
|
||||||
Real estate taxes
|
4,917
|
4,987
|
||||||
Insurance
|
1,100
|
1,462
|
||||||
Property management expenses
|
3,871
|
3,666
|
||||||
Other property expenses
|
(68
|
)
|
206
|
|||||
TRS senior housing expenses
|
769
|
693
|
||||||
Administrative expenses
|
2,454
|
3,664
|
||||||
Other expenses
|
424
|
612
|
||||||
Amortization related to non-real estate investments
|
171
|
221
|
||||||
Impairment of real estate investments
|
1,285
|
2,320
|
||||||
TOTAL EXPENSES
|
36,775
|
37,976
|
||||||
Operating income
|
14,181
|
11,238
|
||||||
Interest expense
|
(9,196
|
)
|
(9,747
|
)
|
||||
Interest income
|
556
|
560
|
||||||
Other income
|
51
|
126
|
||||||
Income before loss on sale of real estate and other investments and income from discontinued operations
|
5,592
|
2,177
|
||||||
Loss on sale of real estate and other investments
|
(175
|
)
|
(2,993
|
)
|
||||
Income (loss) from continuing operations
|
5,417
|
(816
|
)
|
|||||
(Loss) income from discontinued operations
|
(690
|
)
|
617
|
|||||
NET INCOME (LOSS)
|
4,727
|
(199
|
)
|
|||||
Net (income) loss attributable to noncontrolling interests – Operating Partnership
|
(186
|
)
|
402
|
|||||
Net income attributable to noncontrolling interests – consolidated real estate entities
|
(1
|
)
|
(354
|
)
|
||||
Net income (loss) attributable to Investors Real Estate Trust
|
4,540
|
(151
|
)
|
|||||
Dividends to preferred shareholders
|
(2,879
|
)
|
(2,879
|
)
|
||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
1,661
|
$
|
(3,030
|
)
|
|||
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic and diluted
|
$
|
.02
|
$
|
(.03
|
)
|
|||
Loss per common share from discontinued operations – Investors Real Estate Trust – basic and diluted
|
(.01
|
)
|
.00
|
|||||
NET INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED
|
$
|
.01
|
$
|
(.03
|
)
|
|||
DIVIDENDS PER COMMON SHARE
|
$
|
.1300
|
$
|
.1300
|
(in thousands)
|
||||||||||||||||||||||||||||
NUMBER
OF
PREFERRED
SHARES
|
PREFERRED
SHARES
|
NUMBER
OF COMMON
SHARES
|
COMMON
SHARES
|
ACCUMULATED
DISTRIBUTIONS
IN EXCESS OF
NET INCOME
|
NONREDEEMABLE
NONCONTROLLING
INTERESTS
|
TOTAL
EQUITY
|
||||||||||||||||||||||
Balance April 30, 2014
|
5,750
|
$
|
138,674
|
109,019
|
$
|
843,268
|
$
|
(389,758
|
)
|
$
|
128,362
|
$
|
720,546
|
|||||||||||||||
Net income attributable to Investors Real Estate Trust and noncontrolling interests
|
(151
|
)
|
(157
|
)
|
(308
|
)
|
||||||||||||||||||||||
Distributions – common shares and units
|
(14,264
|
)
|
(2,740
|
)
|
(17,004
|
)
|
||||||||||||||||||||||
Distributions – Series A preferred shares
|
(593
|
)
|
(593
|
)
|
||||||||||||||||||||||||
Distributions – Series B preferred shares
|
(2,286
|
)
|
(2,286
|
)
|
||||||||||||||||||||||||
Distribution reinvestment and share purchase plan
|
2,422
|
20,926
|
20,926
|
|||||||||||||||||||||||||
Share-based compensation
|
204
|
1,889
|
1,889
|
|||||||||||||||||||||||||
Redemption of units for common shares
|
3,118
|
18,332
|
(18,332
|
)
|
0
|
|||||||||||||||||||||||
Contributions from nonredeemable noncontrolling interests – consolidated real estate entities
|
3,212
|
3,212
|
||||||||||||||||||||||||||
Other
|
(185
|
)
|
(185
|
)
|
||||||||||||||||||||||||
Balance July 31, 2014
|
5,750
|
$
|
138,674
|
114,763
|
$
|
884,415
|
$
|
(407,052
|
)
|
$
|
110,160
|
$
|
726,197
|
|||||||||||||||
Balance April 30, 2015
|
5,750
|
$
|
138,674
|
124,455
|
$
|
951,868
|
$
|
(438,432
|
)
|
$
|
88,844
|
$
|
740,954
|
|||||||||||||||
Net income attributable to Investors Real Estate Trust and noncontrolling interests
|
4,540
|
194
|
4,734
|
|||||||||||||||||||||||||
Distributions – common shares and units
|
(16,200
|
)
|
(1,815
|
)
|
(18,015
|
)
|
||||||||||||||||||||||
Distributions – Series A preferred shares
|
(593
|
)
|
(593
|
)
|
||||||||||||||||||||||||
Distributions – Series B preferred shares
|
(2,286
|
)
|
(2,286
|
)
|
||||||||||||||||||||||||
Distribution reinvestment and share purchase plan
|
766
|
5,241
|
5,241
|
|||||||||||||||||||||||||
Share-based compensation
|
220
|
22
|
22
|
|||||||||||||||||||||||||
Partnership units issued
|
0
|
0
|
||||||||||||||||||||||||||
Redemption of units for common shares
|
79
|
576
|
(576
|
)
|
0
|
|||||||||||||||||||||||
Other
|
(170
|
)
|
(170
|
)
|
||||||||||||||||||||||||
Balance July 31, 2015
|
5,750
|
$
|
138,674
|
125,520
|
$
|
957,707
|
$
|
(452,971
|
)
|
$
|
86,477
|
$
|
729,887
|
(in thousands)
|
||||||||
Three Months Ended
July 31
|
||||||||
2015
|
2014
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$
|
4,727
|
$
|
(199
|
)
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
13,713
|
12,730
|
||||||
Depreciation and amortization from discontinued operations
|
4,996
|
4,733
|
||||||
Loss on sale of real estate, land, other investments and discontinued operations
|
175
|
2,993
|
||||||
Share-based compensation expense
|
66
|
1,763
|
||||||
Impairment of real estate investments
|
1,725
|
2,320
|
||||||
Bad debt expense
|
(97
|
)
|
136
|
|||||
Changes in other assets and liabilities:
|
||||||||
Decrease (increase) in receivable arising from straight-lining of rents
|
269
|
(143
|
)
|
|||||
Decrease in accounts receivable
|
313
|
1,229
|
||||||
Decrease in prepaid and other assets
|
1,215
|
1,197
|
||||||
Decrease in tax, insurance and other escrow
|
41
|
146
|
||||||
Increase in deferred charges and leasing costs
|
(1,436
|
)
|
(926
|
)
|
||||
Decrease in accounts payable, accrued expenses, and other liabilities
|
(925
|
)
|
(2,594
|
)
|
||||
Net cash provided by operating activities
|
24,782
|
23,385
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Proceeds from real estate deposits
|
5
|
140
|
||||||
Payments for real estate deposits
|
(4,131
|
)
|
(3,736
|
)
|
||||
Decrease in lender holdbacks for improvements
|
1,354
|
609
|
||||||
Increase in lender holdbacks for improvements
|
(292
|
)
|
(326
|
)
|
||||
Proceeds from sale of real estate and other investments
|
6,783
|
6,416
|
||||||
Insurance proceeds received
|
20
|
2,054
|
||||||
Payments for acquisitions of real estate assets
|
0
|
(13,008
|
)
|
|||||
Payments for development and re-development of real estate assets
|
(40,678
|
)
|
(36,892
|
)
|
||||
Payments for improvements of real estate assets
|
(7,043
|
)
|
(5,849
|
)
|
||||
Payments for improvements of real estate assets from discontinued operations
|
(1,470
|
)
|
(1,707
|
)
|
||||
Net cash used by investing activities
|
(45,452
|
)
|
(52,299
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from mortgages payable
|
23,123
|
25,000
|
||||||
Principal payments on mortgages payable
|
(35,594
|
)
|
(18,090
|
)
|
||||
Proceeds from revolving line of credit and other debt
|
23,000
|
30,000
|
||||||
Principal payments on revolving line of credit and other debt
|
0
|
(17,000
|
)
|
|||||
Proceeds from construction debt
|
21,763
|
20,492
|
||||||
Proceeds from sale of common shares under distribution reinvestment and share purchase program
|
1,115
|
16,941
|
||||||
Proceeds from noncontrolling partner – consolidated real estate entities
|
0
|
1,006
|
||||||
Distributions paid to common shareholders, net of reinvestment of $3,997 and $3,801, respectively
|
(12,203
|
)
|
(10,463
|
)
|
||||
Distributions paid to preferred shareholders
|
(2,879
|
)
|
(2,879
|
)
|
||||
Distributions paid to noncontrolling interests – Unitholders of the Operating Partnership, net of reinvestment of $130 and $185, respectively
|
(1,685
|
)
|
(2,555
|
)
|
||||
Distributions paid to noncontrolling interests – consolidated real estate entities
|
(170
|
)
|
(185
|
)
|
||||
Net cash provided by financing activities
|
16,470
|
42,267
|
||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(4,200
|
)
|
13,353
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
48,970
|
47,267
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
44,770
|
$
|
60,620
|
(in thousands)
|
||||||||
Three Months Ended
July 31
|
||||||||
2015
|
2014
|
|||||||
SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES FOR THE PERIOD
|
||||||||
Distribution reinvestment plan
|
$
|
3,997
|
$
|
3,801
|
||||
Operating partnership distribution reinvestment plan
|
130
|
185
|
||||||
Operating partnership units converted to shares
|
576
|
18,332
|
||||||
Real estate assets acquired through assumption of indebtedness and accrued costs
|
0
|
12,169
|
||||||
Increase to accounts payable included within real estate investments
|
6,880
|
6,129
|
||||||
Real estate assets contributed by noncontrolling interests – consolidated real estate entities
|
0
|
2,206
|
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||||||
Cash paid for interest, net of amounts capitalized of $2,310 and $1,030, respectively
|
$
|
9,268
|
$
|
13,099
|
(in thousands)
|
||||||||
July 31, 2015
|
April 30, 2015
|
|||||||
Identified intangible assets (included in intangible assets):
|
||||||||
Gross carrying amount
|
$
|
45,822
|
$
|
45,823
|
||||
Accumulated amortization
|
(20,643
|
)
|
(19,610
|
)
|
||||
Net carrying amount
|
$
|
25,179
|
$
|
26,213
|
||||
Identified intangible liabilities (included in other liabilities):
|
||||||||
Gross carrying amount
|
$
|
82
|
$
|
82
|
||||
Accumulated amortization
|
(63
|
)
|
(61
|
)
|
||||
Net carrying amount
|
$
|
19
|
$
|
21
|
Year Ended April 30,
|
(in thousands)
|
|||
2017
|
$
|
11
|
||
2018
|
(3
|
)
|
||
2019
|
(3
|
)
|
||
2020
|
(1
|
)
|
||
2021
|
0
|
Year Ended April 30,
|
(in thousands)
|
|||
2017
|
$
|
3,698
|
||
2018
|
3,469
|
|||
2019
|
3,433
|
|||
2020
|
3,390
|
|||
2021
|
3,268
|
(in thousands, except per share data)
|
||||||||
Three Months Ended
July 31
|
||||||||
2015
|
2014
|
|||||||
NUMERATOR
|
||||||||
Income (loss) from continuing operations – Investors Real Estate Trust
|
$
|
5,161
|
$
|
(671
|
)
|
|||
(Loss) income from discontinued operations – Investors Real Estate Trust
|
(621
|
)
|
520
|
|||||
Net income (loss) attributable to Investors Real Estate Trust
|
4,540
|
(151
|
)
|
|||||
Dividends to preferred shareholders
|
(2,879
|
)
|
(2,879
|
)
|
||||
Numerator for basic earnings per share – net income (loss) available to common shareholders
|
1,661
|
(3,030
|
)
|
|||||
Noncontrolling interests – Operating Partnership
|
186
|
(402
|
)
|
|||||
Numerator for diluted earnings per share
|
$
|
1,847
|
$
|
(3,432
|
)
|
|||
DENOMINATOR
|
||||||||
Denominator for basic earnings per share weighted average shares
|
124,855
|
111,039
|
||||||
Effect of convertible operating partnership units
|
13,951
|
20,293
|
||||||
Denominator for diluted earnings per share
|
138,806
|
131,332
|
||||||
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic and diluted
|
$
|
.02
|
$
|
(.03
|
)
|
|||
Loss per common share from discontinued operations – Investors Real Estate Trust – basic and diluted
|
(.01
|
)
|
.00
|
|||||
NET INCOME (LOSS) PER COMMON SHARE – BASIC & DILUTED
|
$
|
.01
|
$
|
(.03
|
)
|
(in thousands)
|
||||||||||||||||||||
Three Months Ended July 31, 2015
|
Multi-Family
Residential
|
Healthcare
|
Industrial
|
All Other(1)
|
Total
|
|||||||||||||||
Real estate revenue
|
$
|
31,379
|
$
|
15,706
|
$
|
1,622
|
$
|
1,211
|
$
|
49,918
|
||||||||||
Real estate expenses
|
13,922
|
3,832
|
396
|
250
|
18,400
|
|||||||||||||||
Net operating income
|
$
|
17,457
|
$
|
11,874
|
$
|
1,226
|
$
|
961
|
31,518
|
|||||||||||
TRS senior housing revenue
|
1,038
|
|||||||||||||||||||
TRS senior housing expenses
|
(769
|
)
|
||||||||||||||||||
Depreciation/amortization
|
(13,443
|
)
|
||||||||||||||||||
Administrative expenses
|
(2,454
|
)
|
||||||||||||||||||
Other expenses
|
(424
|
)
|
||||||||||||||||||
Impairment of real estate investments
|
(1,285
|
)
|
||||||||||||||||||
Interest expense
|
(9,196
|
)
|
||||||||||||||||||
Interest and other income
|
607
|
|||||||||||||||||||
Income before loss on sale of real estate and other investments and income from discontinued operations
|
5,592
|
|||||||||||||||||||
Loss on sale of real estate and other investments
|
(175
|
)
|
||||||||||||||||||
Income from continuing operations
|
5,417
|
|||||||||||||||||||
Loss from discontinued operations
|
(690
|
)
|
||||||||||||||||||
Net income
|
$
|
4,727
|
(in thousands)
|
||||||||||||||||||||
Three Months Ended July 31, 2014
|
Multi-Family
Residential
|
Healthcare
|
Industrial
|
All Other(1)
|
Total
|
|||||||||||||||
Real estate revenue
|
$
|
27,727
|
$
|
16,202
|
$
|
1,570
|
$
|
2,922
|
$
|
48,421
|
||||||||||
Real estate expenses
|
12,221
|
4,356
|
450
|
1,225
|
18,252
|
|||||||||||||||
Net operating income
|
$
|
15,506
|
$
|
11,846
|
$
|
1,120
|
$
|
1,697
|
30,169
|
|||||||||||
TRS senior housing revenue
|
793
|
|||||||||||||||||||
TRS senior housing expenses
|
(693
|
)
|
||||||||||||||||||
Depreciation/amortization
|
(12,435
|
)
|
||||||||||||||||||
Administrative expenses
|
(3,664
|
)
|
||||||||||||||||||
Other expenses
|
(612
|
)
|
||||||||||||||||||
Impairment of real estate investments
|
(2,320
|
)
|
||||||||||||||||||
Interest expense
|
(9,747
|
)
|
||||||||||||||||||
Interest and other income
|
686
|
|||||||||||||||||||
Income before loss on sale of real estate and other investments and income from discontinued operations
|
2,177
|
|||||||||||||||||||
Loss on sale of real estate and other investments
|
(2,993
|
)
|
||||||||||||||||||
Loss from continuing operations
|
(816
|
)
|
||||||||||||||||||
Income from discontinued operations
|
617
|
|||||||||||||||||||
Net loss
|
$
|
(199
|
)
|
(1) | NOI from segments below the quantitative thresholds is attributable to the Company’s office and retail segments. Both of these segments met the quantitative threshold for determining reportable segments prior to the first quarter of fiscal year 2016, at which time the Company classified the majority of the properties in these segments as held for sale and discontinued operations. |
(in thousands)
|
||||||||||||||||||||
As of July 31, 2015
|
Multi-Family
Residential
|
Healthcare
|
Industrial
|
All Other(1)
|
Total
|
|||||||||||||||
Segment Assets
|
||||||||||||||||||||
Property owned
|
$
|
989,958
|
$
|
524,414
|
$
|
60,361
|
$
|
44,215
|
$
|
1,618,948
|
||||||||||
Less accumulated depreciation
|
(188,062
|
)
|
(116,254
|
)
|
(11,676
|
)
|
(9,544
|
)
|
(325,536
|
)
|
||||||||||
Net property owned
|
$
|
801,896
|
$
|
408,160
|
$
|
48,685
|
$
|
34,671
|
1,293,412
|
|||||||||||
Assets held for sale
|
453,217
|
|||||||||||||||||||
Cash and cash equivalents
|
44,770
|
|||||||||||||||||||
Other investments
|
329
|
|||||||||||||||||||
Receivables and other assets
|
74,609
|
|||||||||||||||||||
Development in progress
|
133,794
|
|||||||||||||||||||
Unimproved land
|
24,542
|
|||||||||||||||||||
Total assets
|
$
|
2,024,673
|
(in thousands)
|
||||||||||||||||||||
As of April 31, 2015
|
Multi-Family
Residential
|
Healthcare
|
Industrial
|
All Other(1)
|
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
|
(1) | Property owned from segments below the quantitative thresholds is attributable to the Company’s office and retail segments. Both of these segments met the quantitative threshold for determining reportable segments prior to the first quarter of fiscal year 2016, at which time the Company classified the majority of the properties in these segments as held for sale and discontinued operations. |
(in thousands)
|
(in fiscal years)
|
||||||||||
Project Name and Location
|
Planned Segment
|
Rentable
Square Feet
or Number of Units
|
Anticipated
Total Cost
|
Costs as of
July 31, 2015
|
Anticipated
Construction
Completion
|
||||||
Chateau II - Minot, ND
|
Multi-Family Residential
|
72 units
|
$
|
14,711
|
$
|
14,600
|
In Service
|
||||
Edina 6565 France SMC III - Edina, MN(1)
|
Healthcare
|
57,624 sq ft
|
36,752
|
28,816
|
In Service
|
||||||
Renaissance Heights - Williston, ND(2)
|
Multi-Family Residential
|
288 units
|
62,362
|
62,339
|
In Service
|
||||||
Minot Southgate Retail - Minot, ND
|
Other
|
7,963 sq ft
|
2,923
|
2,550
|
2Q 2016
|
||||||
PrairieCare Medical - Brooklyn Park, MN
|
Healthcare
|
70,756 sq ft
|
24,251
|
23,424
|
2Q 2016
|
||||||
Cardinal Point - Grand Forks, ND
|
Multi-Family Residential
|
251 units
|
40,042
|
33,704
|
3Q 2016
|
||||||
Deer Ridge – Jamestown, ND
|
Multi-Family Residential
|
163 units
|
24,519
|
20,627
|
3Q 2016
|
||||||
71 France Phase I, II & III - Edina, MN(3)
|
Multi-Family Residential
|
241 units
|
73,290
|
50,455
|
1Q 2017
|
||||||
Monticello Crossings Phase I – Monticello, MN(4)
|
Multi-Family Residential
|
136 units
|
19,097
|
1,978
|
2Q 2017
|
||||||
Other
|
n/a
|
n/a
|
n/
|
a
|
2,790
|
n/a
|
|||||
$
|
297,947
|
$
|
241,283
|
(1) | Anticipated total cost includes estimated tenant improvement costs that have not been incurred as of July 31, 2015. |
(2) | The Company is currently an approximately 70.0% 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 project will be constructed in three phases by a joint venture entity in which the Company has an approximately 52.6% interest. The anticipated total cost amount given in the table above is the total cost to the joint venture entity. The anticipated total cost includes approximately 21,772 square feet of retail space. |
(4) | This project will be constructed in two phases with approximately 202 units and an anticipated total cost of $31.5 million. |
· |
a 74-unit multi-family residential property in Grand Forks, North Dakota, for a purchase price of $9.3 million, of which approximately $8.9 million is to be paid in cash with the remainder in Units of the Operating Partnership valued at approximately $400,000; and
|
· |
a 276-unit multi-family residential property in Rochester, Minnesota, for a purchase price of $56.0 million, to be paid in cash.
|
· |
a portfolio of 17 retail properties in Minnesota, Nebraska and North Dakota for a sales price of $80.6 million; and
|
· | an office property in Eden Prairie, Minnesota, for a sales price of $2.9 million. |
(in thousands)
|
||||||||
Three Months Ended
July 31
|
||||||||
2015
|
2014
|
|||||||
REVENUE
|
||||||||
Real estate rentals
|
$
|
13,614
|
$
|
13,562
|
||||
Tenant reimbursement
|
6,164
|
5,854
|
||||||
TOTAL REVENUE
|
19,778
|
19,416
|
||||||
EXPENSES
|
||||||||
Depreciation/amortization related to real estate investments
|
4,239
|
3,970
|
||||||
Utilities
|
1,743
|
1,736
|
||||||
Maintenance
|
2,992
|
2,778
|
||||||
Real estate taxes
|
3,419
|
3,514
|
||||||
Insurance
|
265
|
274
|
||||||
Property management expenses
|
1,051
|
964
|
||||||
Amortization related to non-real estate investments
|
624
|
651
|
||||||
Impairment of real estate investments
|
440
|
0
|
||||||
TOTAL EXPENSES
|
14,773
|
13,887
|
||||||
Operating income
|
5,005
|
5,529
|
||||||
Interest expense(1)
|
(5,765
|
)
|
(4,917
|
)
|
||||
Other income
|
70
|
5
|
||||||
(LOSS) INCOME FROM DISCONTINUED OPERATIONS
|
$
|
(690
|
)
|
$
|
617
|
(1) | Includes $1.5 million and $0, respectively, of default interest related to a $122.6 million non-recourse loan by a Company subsidiary, for which we received a default notice from the special servicer on April 14, 2015 due to nonpayment on April 6, 2015. |
(in thousands)
|
||||||||
July 31, 2015
|
April 30, 2015
|
|||||||
Carrying amounts of major classes of assets included as part of discontinued operations
|
||||||||
Property owned and intangible assets, net of accumulated depreciation and amortization
|
$
|
414,380
|
$
|
417,045
|
||||
Receivable arising from straight-lining of rents
|
9,843
|
10,078
|
||||||
Accounts receivable
|
759
|
566
|
||||||
Prepaid and other assets
|
443
|
699
|
||||||
Tax, insurance and other escrow
|
1,017
|
1,176
|
||||||
Goodwill
|
193
|
193
|
||||||
Deferred charges and leasing costs
|
9,918
|
9,606
|
||||||
Total major classes of assets of the discontinued operations
|
436,553
|
439,363
|
||||||
Other assets included in the disposal group classified as held for sale
|
16,664
|
23,740
|
||||||
Total assets of the disposal group classified as held for sale on the balance sheet
|
$
|
453,217
|
$
|
463,103
|
||||
Carrying amounts of major classes of liabilities included as part of discontinued operations
|
||||||||
Accounts payable and accrued expenses
|
$
|
15,173
|
$
|
13,952
|
||||
Mortgages payable
|
282,106
|
295,677
|
||||||
Other
|
0
|
4
|
||||||
Total major classes of liabilities of the discontinued operations
|
297,279
|
309,633
|
||||||
Other liabilities included in the disposal group classified as held for sale
|
11,533
|
11,760
|
||||||
Total liabilities of the disposal group classified as held for sale on the balance sheet
|
$
|
308,812
|
$
|
321,393
|
(in thousands)
|
||||||||||||||||||||||||||||
Total
|
Form of Consideration
|
Investment Allocation
|
||||||||||||||||||||||||||
Acquisitions
|
Date Acquired
|
Acquisition
Cost
|
Cash
|
Other(1)
|
Land
|
Building
|
Intangible
Assets
|
|||||||||||||||||||||
Multi-Family Residential
|
||||||||||||||||||||||||||||
152 unit - Homestead Garden - Rapid City, SD(2)
|
2014-06-02
|
$
|
15,000
|
$
|
5,092
|
$
|
9,908
|
$
|
655
|
$
|
14,139
|
$
|
206
|
|||||||||||||||
52 unit - Silver Springs - Rapid City, SD
|
2014-06-02
|
3,280
|
1,019
|
2,261
|
215
|
3,006
|
59
|
|||||||||||||||||||||
18,280
|
6,111
|
12,169
|
870
|
17,145
|
265
|
|||||||||||||||||||||||
Unimproved Land
|
||||||||||||||||||||||||||||
Creekside Crossing - Bismarck, ND
|
2014-05-22
|
4,269
|
4,269
|
0
|
4,269
|
0
|
0
|
|||||||||||||||||||||
PrairieCare Medical - Brooklyn Park, MN
|
2014-06-05
|
2,616
|
2,616
|
0
|
2,616
|
0
|
0
|
|||||||||||||||||||||
71 France Phase I - Edina, MN(3)
|
2014-06-12
|
1,413
|
0
|
1,413
|
1,413
|
0
|
0
|
|||||||||||||||||||||
8,298
|
6,885
|
1,413
|
8,298
|
0
|
0
|
|||||||||||||||||||||||
Total Property Acquisitions
|
$
|
26,578
|
$
|
12,996
|
$
|
13,582
|
$
|
9,168
|
$
|
17,145
|
$
|
265
|
(1) | 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: $1.4 million). |
(2) | At acquisition, the Company adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill. |
(3) | 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. |
(in thousands)
|
||||
Three Months Ended July 31,
|
2014
|
|||
Total revenue
|
$
|
362
|
||
Net income
|
|
20
|
(in thousands)
|
||||||||||||||||
Development Projects Placed in Service
|
Date Placed in
Service
|
Land
|
Building
|
Development
Cost
|
||||||||||||
Multi-Family Residential
|
||||||||||||||||
72 unit – Chateau II - Minot, ND(1)
|
2015-06-01
|
$
|
240
|
$
|
14,360
|
$
|
14,600
|
|||||||||
288 unit – Renaissance Heights - Williston, ND(2)
|
2015-07-27
|
3,080
|
59,259
|
62,339
|
||||||||||||
3,320
|
73,619
|
76,939
|
||||||||||||||
Healthcare
|
||||||||||||||||
57,624 sq ft Edina 6565 France SMC III - Edina, MN(3)
|
2015-06-01
|
0
|
28,816
|
28,816
|
||||||||||||
Total Development Projects Placed in Service
|
$
|
3,320
|
$
|
102,435
|
$
|
105,755
|
(1) | Costs paid in prior fiscal years totaled $12.3 million. Additional costs paid in fiscal year 2016 totaled $2.3 million, for a total project cost at July 31, 2015 of $14.6 million. |
(2) | Costs paid in prior fiscal years totaled $57.7 million. Additional costs paid in fiscal year 2016 totaled $4.6 million, for a total project cost at July 31, 2015 of $62.3 million. The project is owned by a joint venture entity in which the Company has an approximately 70.0% interest. The joint venture is consolidated in IRET’s financial statements. |
(3) | Costs paid in prior fiscal years totaled $20.8 million. Additional costs paid in fiscal year 2016 totaled $8.0 million, for a total project cost at July 31, 2015 of $28.8 million. |
(in thousands)
|
||||||||||||||||
Development Projects Placed in Service
|
Date Placed in
Service
|
Land
|
Building
|
Development
Cost
|
||||||||||||
Multi-Family Residential
|
||||||||||||||||
44 unit - Dakota Commons - Williston, ND(1)
|
2014-07-15
|
$
|
823
|
$
|
9,442
|
$
|
10,265
|
|||||||||
Total Development Projects Placed in Service
|
$
|
823
|
$
|
9,442
|
$
|
10,265
|
(1) | Costs paid in prior fiscal years totaled $8.1 million. Additional costs paid in fiscal year 2015 totaled $2.2 million for a total project cost at July 31, 2014 of $10.3 million. |
(in thousands)
|
||||||||||||||||
Dispositions
|
Date
Disposed
|
Sales Price
|
Book Value
and Sales Cost
|
Gain/(Loss)
|
||||||||||||
Other
|
||||||||||||||||
117,144 sq ft Thresher Square - Minneapolis, MN
|
2015-05-18
|
$
|
7,000
|
$
|
7,175
|
$
|
(175
|
)
|
||||||||
Total Property Dispositions
|
$
|
7,000
|
$
|
7,175
|
$
|
(175
|
)
|
(in thousands)
|
||||||||||||||||
Dispositions
|
Date
Disposed
|
Sales Price
|
Book Value
and Sales Cost
|
Gain/(Loss)
|
||||||||||||
Industrial
|
||||||||||||||||
198,600 sq ft Eagan 2785 & 2795 – Eagan, MN
|
2014-07-15
|
$
|
3,600
|
$
|
5,393
|
$
|
(1,793
|
)
|
||||||||
Other
|
||||||||||||||||
73,338 sq ft Dewey Hill - Edina, MN
|
2014-05-19
|
3,100
|
3,124
|
(24
|
)
|
|||||||||||
25,644 sq ft Weston Retail – Weston, WI
|
2014-07-28
|
n/a
|
1,176
|
(1,176
|
)
|
|||||||||||
3,100
|
4,300
|
(1,200
|
)
|
|||||||||||||
Total Property Dispositions
|
$
|
6,700
|
$
|
9,693
|
$
|
(2,993
|
)
|
Fiscal year ended April 30,
|
(in thousands)
|
|||
2016 (remainder)
|
$
|
65,336
|
||
2017
|
41,973
|
|||
2018
|
39,278
|
|||
2019
|
116,848
|
|||
2020
|
72,598
|
|||
Thereafter
|
333,701
|
|||
Total payments
|
$
|
669,734
|
(in thousands)
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
July 31, 2015
|
||||||||||||||||
Real estate investments
|
$
|
575
|
$
|
0
|
$
|
0
|
$
|
575
|
||||||||
Real estate held for sale
|
2,900
|
0
|
0
|
2,900
|
||||||||||||
April 30, 2015
|
||||||||||||||||
Real estate held for sale
|
7,100
|
0
|
0
|
7,100
|
(in thousands)
|
||||||||||||||||
July 31, 2015
|
April 30, 2015
|
|||||||||||||||
Carrying Amount
|
Fair Value
|
Carrying Amount
|
Fair Value
|
|||||||||||||
FINANCIAL ASSETS
|
||||||||||||||||
Cash and cash equivalents
|
$
|
44,770
|
$
|
44,770
|
$
|
48,970
|
$
|
48,970
|
||||||||
Other investments
|
329
|
329
|
329
|
329
|
||||||||||||
FINANCIAL LIABILITIES
|
||||||||||||||||
Other debt
|
165,854
|
165,511
|
144,090
|
143,749
|
||||||||||||
Line of credit
|
83,500
|
83,500
|
60,500
|
60,500
|
||||||||||||
Mortgages payable
|
669,743
|
778,990
|
668,112
|
749,604
|
||||||||||||
Mortgages payable related to assets held for sale
|
293,021
|
409,931
|
306,716
|
374,818
|
(in thousands)
|
||||
Balance at April 30, 2015
|
$
|
6,368
|
||
Net loss
|
(7)
|
|||
Balance at July 31, 2015
|
$
|
6,361
|
(in thousands)
|
||||
Balance at April 30, 2014
|
$
|
6,203
|
||
Net income
|
110
|
|||
Balance at July 31, 2014
|
$
|
6,313
|
Class of shares/units
|
Quarterly Amount
per Share or Unit
|
Record Date
|
Payment Date
|
|||
Common shares and limited partnership units
|
$
|
0.1300
|
September 15, 2015
|
October 1, 2015
|
||
Preferred shares:
|
||||||
Series A
|
$
|
0.5156
|
September 15, 2015
|
September 30, 2015
|
||
Series B
|
$
|
0.4968
|
September 15, 2015
|
September 30, 2015
|
· |
The placement into service of the following: the 72-unit Chateau II multi-family residential property in Minot, North Dakota; the 57,624 square foot Edina 6565 France SMC III healthcare expansion project in Edina, Minnesota; and the final 72 units of the 288-unit Renaissance Heights multi-family residential property in Williston, North Dakota, in which we have an approximately 70% interest.
|
· | The disposition of an office property in Minneapolis, Minnesota, for a sale price of $7.0 million. |
· | On June 12, 2015, our Operating Partnership entered in an agreement to sell 33 office properties, one healthcare property and a parcel of unimproved land. |
· | On June 23, 2015, Jeff P. Caira was appointed as a Trustee of our Board of Trustees. |
· | On June 25, 2015, our Operating Partnership entered into an agreement to sell 17 retail properties and a parcel of unimproved land. |
(in thousands, except percentages)
|
||||||||||||||||
Three Months Ended July 31
|
2015 vs 2014
|
|||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Real estate rentals
|
$
|
45,522
|
$
|
43,564
|
$
|
1,958
|
4.5
|
%
|
||||||||
Tenant reimbursement
|
4,396
|
4,857
|
(461
|
)
|
(9.5
|
)%
|
||||||||||
TRS senior housing revenue
|
1,038
|
793
|
245
|
30.9
|
%
|
|||||||||||
TOTAL REVENUE
|
50,956
|
49,214
|
1,742
|
3.5
|
%
|
|||||||||||
Depreciation/amortization related to real estate investments
|
13,272
|
12,214
|
1,058
|
8.7
|
%
|
|||||||||||
Utilities
|
3,206
|
2,945
|
261
|
8.9
|
%
|
|||||||||||
Maintenance
|
5,374
|
4,986
|
388
|
7.8
|
%
|
|||||||||||
Real estate taxes
|
4,917
|
4,987
|
(70
|
)
|
(1.4
|
)%
|
||||||||||
Insurance
|
1,100
|
1,462
|
(362
|
)
|
(24.8
|
)%
|
||||||||||
Property management expenses
|
3,871
|
3,666
|
205
|
5.6
|
%
|
|||||||||||
Other property expenses
|
(68
|
)
|
206
|
(274
|
)
|
(133.0
|
)%
|
|||||||||
TRS senior housing expenses
|
769
|
693
|
76
|
11.0
|
%
|
|||||||||||
Administrative expenses
|
2,454
|
3,664
|
(1,210
|
)
|
(33.0
|
)%
|
||||||||||
Other expenses
|
424
|
612
|
(188
|
)
|
(30.7
|
)%
|
||||||||||
Amortization related to non-real estate investments
|
171
|
221
|
(50
|
)
|
(22.6
|
)%
|
||||||||||
Impairment of real estate investments
|
1,285
|
2,320
|
(1,035
|
)
|
(44.6
|
)%
|
||||||||||
TOTAL EXPENSES
|
36,775
|
37,976
|
(1,201
|
)
|
(3.2
|
)%
|
||||||||||
Operating income
|
14,181
|
11,238
|
2,943
|
26.2
|
%
|
|||||||||||
Interest expense
|
(9,196
|
)
|
(9,747
|
)
|
551
|
(5.7
|
)%
|
|||||||||
Interest income
|
556
|
560
|
(4
|
)
|
(0.7
|
)%
|
||||||||||
Other income
|
51
|
126
|
(75
|
)
|
(59.5
|
)%
|
||||||||||
Income before loss on sale of real estate and other investments and income from discontinued operations
|
5,592
|
2,177
|
3,415
|
156.9
|
%
|
|||||||||||
Loss on sale of real estate and other investments
|
(175
|
)
|
(2,993
|
)
|
2,818
|
(94.2
|
)%
|
|||||||||
Income (loss) from continuing operations
|
5,417
|
(816
|
)
|
6,233
|
(763.8
|
)%
|
||||||||||
(Loss) income from discontinued operations
|
(690
|
)
|
617
|
(1,307
|
)
|
(211.8
|
)%
|
|||||||||
NET INCOME (LOSS)
|
4,727
|
(199
|
)
|
4,926
|
(2,475.4
|
)%
|
||||||||||
Net (income) loss attributable to noncontrolling interests – Operating Partnership
|
(186
|
)
|
402
|
(588
|
)
|
(146.3
|
)%
|
|||||||||
Net income attributable to noncontrolling interests – consolidated real estate entities
|
(1
|
)
|
(354
|
)
|
353
|
(99.7
|
)%
|
|||||||||
Net income (loss) attributable to Investors Real Estate Trust
|
4,540
|
(151
|
)
|
4,691
|
(3,106.6
|
)%
|
||||||||||
Dividends to preferred shareholders
|
(2,879
|
)
|
(2,879
|
)
|
0
|
0.0
|
%
|
|||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
1,661
|
$
|
(3,030
|
)
|
$
|
4,691
|
(154.8
|
)%
|
(in thousands)
|
||||
Increase in Total
Revenue
Three Months
ended July 31, 2015
|
||||
Rent in Fiscal 2016 primarily from properties acquired and development projects placed in service in Fiscal 2016
|
$
|
121
|
||
Rent in Fiscal 2016 primarily from properties acquired and development projects placed in service in Fiscal 2015 in excess of that received in Fiscal 2015 from the same properties
|
3,367
|
|||
Increase in rent on same-store properties, excluding straight line rent(1)
|
404
|
|||
Net change in straight line rent on same-store properties(1)
|
(313
|
)
|
||
Decrease in rent from properties sold or classified as held for sale in Fiscal 2016 and 2015
|
(2,082
|
)
|
||
TRS senior housing revenue in excess of that received in Fiscal 2015(2)
|
245
|
|||
Net increase in total revenue
|
$
|
1,742
|
(1) | See analysis of NOI by segment below for additional information. |
(2) | See discussion in TRS Senior Housing Expenses paragraph below. |
(in thousands)
Three Months Ended July 31
|
2015 vs. 2014
|
|||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Mortgage debt
|
$
|
8,354
|
$
|
8,883
|
$
|
(529
|
)
|
(6.0
|
)%
|
|||||||
Line of credit
|
914
|
422
|
492
|
116.6
|
%
|
|||||||||||
Other
|
(72
|
)
|
442
|
(514
|
)
|
(116.3
|
)%
|
|||||||||
Total interest expense
|
$
|
9,196
|
$
|
9,747
|
$
|
(551
|
)
|
(5.7
|
)%
|
Same-Store Properties
|
All Properties
|
|||||||||||||||
As of July 31,
|
As of July 31,
|
|||||||||||||||
Segments
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Multi-Family Residential
|
93.5
|
%
|
94.0
|
%
|
91.2
|
%
|
93.4
|
%
|
||||||||
Healthcare
|
96.0
|
%
|
96.6
|
%
|
94.7
|
%
|
96.6
|
%
|
||||||||
Industrial
|
100.0
|
%
|
100.0
|
%
|
84.3
|
%
|
100.0
|
%
|
(in thousands, except percentages)
|
||||||||||||||||
Three Months Ended July 31
|
||||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
All Segments
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Same-store
|
$
|
43,931
|
$
|
43,840
|
$
|
91
|
0.2
|
%
|
||||||||
Non-same-store(1)
|
5,987
|
4,581
|
1,406
|
30.7
|
%
|
|||||||||||
Total
|
$
|
49,918
|
$
|
48,421
|
$
|
1,497
|
3.1
|
%
|
||||||||
Real estate expenses
|
||||||||||||||||
Same-store
|
$
|
15,995
|
$
|
16,394
|
$
|
(399
|
)
|
(2.4
|
)%
|
|||||||
Non-same-store(1)
|
2,405
|
1,858
|
547
|
29.4
|
%
|
|||||||||||
Total
|
$
|
18,400
|
$
|
18,252
|
$
|
148
|
0.8
|
%
|
||||||||
Net operating income
|
||||||||||||||||
Same-store
|
$
|
27,936
|
$
|
27,446
|
$
|
490
|
1.8
|
%
|
||||||||
Non-same-store(1)
|
3,582
|
2,723
|
859
|
31.5
|
%
|
|||||||||||
Total
|
$
|
31,518
|
$
|
30,169
|
$
|
1,349
|
4.5
|
%
|
||||||||
TRS senior housing revenue
|
1,038
|
793
|
||||||||||||||
TRS senior housing expenses
|
(769
|
)
|
(693
|
)
|
||||||||||||
Depreciation/amortization
|
(13,443
|
)
|
(12,435
|
)
|
||||||||||||
Administrative, advisory and trustee services
|
(2,454
|
)
|
(3,664
|
)
|
||||||||||||
Other expenses
|
(424
|
)
|
(612
|
)
|
||||||||||||
Impairment of real estate investments
|
(1,285
|
)
|
(2,320
|
)
|
||||||||||||
Interest expense
|
(9,196
|
)
|
(9,747
|
)
|
||||||||||||
Interest and other income
|
607
|
686
|
||||||||||||||
Income before loss on sale of real estate and other investments and income (loss) from discontinued operations
|
5,592
|
2,177
|
||||||||||||||
Loss on sale of real estate and other investments
|
(175
|
)
|
(2,993
|
)
|
||||||||||||
Income (loss) from continuing operations
|
5,417
|
(816
|
)
|
|||||||||||||
(Loss) income from discontinued operations(2)
|
(690
|
)
|
617
|
|||||||||||||
Net income (loss)
|
$
|
4,727
|
$
|
(199
|
)
|
(1)
|
Non-same-store properties consist of the following properties (re-development and in-service development properties are listed in bold type):
|
|
Held for
Investment -
|
Multi-Family
Residential -
|
Arcata, Golden Valley, MN; Chateau II, Minot, ND; Colonial Villa, Burnsville, MN; Commons at Southgate, Minot, ND; Cypress Court I and II, St. Cloud, MN; Dakota Commons, Williston, ND; Homestead Garden, Rapid City, SD; Legacy Heights, Bismarck, ND; Northridge, Bismarck, ND; Red 20, Minneapolis, MN; Renaissance Heights, Williston, ND and Silver Springs, Rapid City, SD.
Total number of units, 1,759.
|
Healthcare -
|
Edina 6565 France SMC III, Edina, MN.
Total rentable square footage, 57,624.
|
|
Industrial -
|
Roseville 3075 Long Lake Road, Roseville, MN.
Total rentable square footage, 220,557.
|
|
Other -
|
Minot Southgate Wells Fargo Bank, Minot, ND.
Total rentable square footage, 4,998.
|
Held for Sale -
|
Healthcare -
|
Nebraska Orthopaedic Hospital, Omaha, NE.
Total rentable square footage, 61,758.
|
Total NOI for held for sale properties for the three months ended July 31, 2015 and 2014, respectively, $478 and $471.
|
Sold -
|
Multi-Family
Residential -
|
Lancaster, St. Cloud, MN.
|
Healthcare -
|
Jamestown Medical Office Building, Jamestown, ND.
|
|
Industrial -
|
Eagan 2785 & 2795 Hwy 55, Eagan, MN.
|
|
Other -
|
2030 Cliff Road, Eagan, MN; Burnsville Bluffs II, Burnsville, MN; Dewey Hill Business Center, Edina, MN; Fargo Express Community, Fargo, ND; Kalispell Retail Center, Kalispell, MT; Northgate I, Maple Grove, MN; Northgate II, 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; Weston Retail, Weston, WI; Whitewater Plaza, Minnetonka, MN and Wirth Corporate Center, Golden Valley, MN.
|
|
Total NOI for sold properties for the three months ended July 31, 2015 and 2014, respectively, $8 and $1,242.
|
(2)
|
Discontinued operations include gain on disposals and income from operations for:
|
2016 Held for Sale – 610 Business Center, 7800 West Brown Deer Road, American Corporate Center, Ameritrade, Barry Pointe Office Park, Benton Business Park, Brenwood, Brook Valley I, Burnsville Strip Center, Champlin South Pond, Chan West Village, Corporate Center West, Crosstown Centre, Duluth 4615 Grand, Duluth Denfeld Retail, Eden Prairie 6101 Blue Circle Drive, Farnam Executive Center, Flagship Corporate Center, Forest Lake Auto, Forest Lake Westlake Center, Gateway Corporate Center, Golden Hills Office Center, Grand Forks Medpark Mall, Granite Corporate Center, Great Plains, Highlands Ranch I and II, Interlachen Corporate Center, Intertech Building, Jamestown Buffalo Mall, Jamestown Business Center, Lakeville Strip Center, Mendota Office Center I-IV, Minnesota National Bank, Miracle Hills One, Monticello C-Store, Northpark Corporate Center, Omaha 10802 Farnam Dr, Omaha Barnes & Noble, Pacific Hills, Pine City C-Store, Pine City Evergreen Square, Plaza VII, Plymouth 5095 Nathan Lane, Prairie Oak Business Center, Rapid City 900 Concourse Drive, Riverport, Rochester Maplewood Square, Spring Valley IV, V, X and XI, St.Cloud Westgate, Superior Office Building, TCA Building, Three Paramount Plaza, Timberlands, UHC Office, US Bank Financial Center, Wells Fargo Center, West River Business Park, Westgate and Woodlands Plaza IV.
|
(in thousands, except percentages)
|
||||||||||||||||
Three Months Ended July 31,
|
||||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Multi-Family Residential
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Same-store
|
$
|
26,129
|
$
|
25,824
|
$
|
305
|
1.2
|
%
|
||||||||
Non-same-store
|
5,250
|
1,903
|
3,347
|
175.9
|
%
|
|||||||||||
Total
|
$
|
31,379
|
$
|
27,727
|
$
|
3,652
|
13.2
|
%
|
||||||||
Real estate expenses
|
||||||||||||||||
Same-store
|
$
|
11,726
|
$
|
11,436
|
$
|
290
|
2.5
|
%
|
||||||||
Non-same-store
|
2,196
|
785
|
1,411
|
179.7
|
%
|
|||||||||||
Total
|
$
|
13,922
|
$
|
12,221
|
$
|
1,701
|
13.9
|
%
|
||||||||
Net operating income
|
||||||||||||||||
Same-store
|
$
|
14,403
|
$
|
14,388
|
$
|
15
|
0.1
|
%
|
||||||||
Non-same-store
|
3,054
|
1,118
|
1,936
|
173.2
|
%
|
|||||||||||
Total
|
$
|
17,457
|
$
|
15,506
|
$
|
1,951
|
12.6
|
%
|
Occupancy
|
2015
|
2014
|
||||||
Same-store
|
93.5
|
%
|
94.0
|
%
|
||||
Non-same-store
|
77.7
|
%
|
85.9
|
%
|
||||
Total
|
91.2
|
%
|
93.4
|
%
|
Number of Units
|
2015
|
2014
|
||||||
Same-store
|
10,268
|
10,269
|
||||||
Non-same-store
|
1,759
|
811
|
||||||
Total
|
12,027
|
11,080
|
(in thousands, except percentages)
|
||||||||||||||||
Three Months Ended July 31,
|
||||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Healthcare
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Same-store
|
$
|
15,107
|
$
|
15,374
|
$
|
(267
|
)
|
(1.7
|
)%
|
|||||||
Non-same-store
|
599
|
828
|
(229
|
)
|
(27.7
|
)%
|
||||||||||
Total
|
$
|
15,706
|
$
|
16,202
|
$
|
(496
|
)
|
(3.1
|
)%
|
|||||||
Real estate expenses
|
||||||||||||||||
Same-store
|
$
|
3,729
|
$
|
4,214
|
$
|
(485
|
)
|
(11.5
|
)%
|
|||||||
Non-same-store
|
103
|
142
|
(39
|
)
|
(27.5
|
)%
|
||||||||||
Total
|
$
|
3,832
|
$
|
4,356
|
$
|
(524
|
)
|
(12.0
|
)%
|
|||||||
Net operating income
|
||||||||||||||||
Same-store
|
$
|
11,378
|
$
|
11,160
|
$
|
218
|
2.0
|
%
|
||||||||
Non-same-store
|
496
|
686
|
(190
|
)
|
(27.7
|
)%
|
||||||||||
Total
|
$
|
11,874
|
$
|
11,846
|
$
|
28
|
0.2
|
%
|
Occupancy
|
2015
|
2014
|
||||||
Same-store
|
96.0
|
%
|
96.6
|
%
|
||||
Non-same-store
|
63.6
|
%
|
96.5
|
%
|
||||
Total
|
94.7
|
%
|
96.6
|
%
|
Rentable Square Footage
|
2015
|
2014
|
||||||
Same-store
|
2,870,116
|
2,968,408
|
||||||
Non-same-store
|
119,382
|
106,980
|
||||||
Total
|
2,989,498
|
3,075,388
|
(in thousands, except percentages)
|
||||||||||||||||
Three Months Ended July 31,
|
||||||||||||||||
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Industrial
|
||||||||||||||||
Real estate revenue
|
||||||||||||||||
Same-store
|
$
|
1,572
|
$
|
1,497
|
$
|
75
|
5.0
|
%
|
||||||||
Non-same-store
|
50
|
73
|
(23
|
)
|
(31.5
|
)%
|
||||||||||
Total
|
$
|
1,622
|
$
|
1,570
|
$
|
52
|
3.3
|
%
|
||||||||
Real estate expenses
|
||||||||||||||||
Same-store
|
$
|
313
|
$
|
345
|
$
|
(32
|
)
|
(9.3
|
)%
|
|||||||
Non-same-store
|
83
|
105
|
(22
|
)
|
(21.0
|
)%
|
||||||||||
Total
|
$
|
396
|
$
|
450
|
$
|
(54
|
)
|
(12.0
|
)%
|
|||||||
Net operating income
|
||||||||||||||||
Same-store
|
$
|
1,259
|
$
|
1,152
|
$
|
107
|
9.3
|
%
|
||||||||
Non-same-store
|
(33
|
)
|
(32
|
)
|
(1
|
)
|
(3.1
|
)%
|
||||||||
Total
|
$
|
1,226
|
$
|
1,120
|
$
|
106
|
9.5
|
%
|
Occupancy
|
2015
|
2014
|
||||||
Same-store
|
100.0
|
%
|
100.0
|
%
|
||||
Non-same-store
|
12.9
|
%
|
100.0
|
%
|
||||
Total
|
84.3
|
%
|
100.0
|
%
|
Rentable Square Footage
|
2015
|
2014
|
||||||
Same-store
|
1,002,361
|
1,002,361
|
||||||
Non-same-store
|
220,557
|
17,750
|
||||||
Total
|
1,222,918
|
1,020,111
|
Lessee
|
% of Total Commercial
Segments’ Minimum Rents
as of July 1, 2015
|
|||
Affiliates of Edgewood Vista(1)
|
15.1%
|
|
||
Fairview Health Services
|
4.0%
|
|
||
St. Luke’s Hospital of Duluth, Inc.
|
3.7%
|
|
||
Applied Underwriters
|
2.6%
|
|
||
HealthEast Care System
|
1.8%
|
|
||
Microsoft (NASDAQ: MSFT)
|
1.5%
|
|
||
Arcadis Corporate Services, Inc.
|
1.4%
|
|
||
Nebraska Orthopaedic Hospital(2)
|
1.4%
|
|
||
State of Idaho Department of Health and Welfare
|
1.2%
|
|
||
Affiliates of Siemens USA (NYSE: SI)
|
1.2%
|
|
||
All Others
|
66.1%
|
|
||
Total Monthly Commercial Rent as of July 1, 2015
|
100.0%
|
|
(1) | If held for sale properties were excluded, Affiliates of Edgewood Vista percentage of total commercial segments’ minimum rents as of July 1, 2015 would be 31.6%. |
(2) | The tenant in the Nebraska Orthopaedic Hospital property has exercised its option to purchase the property. We are currently engaged in an arbitration proceeding pursuant to the lease agreement to determine the purchase price. We 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
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||||||||||
Healthcare
|
1,624
|
8,947
|
46,422
|
39,016
|
48,046
|
47,963
|
96.0
|
%
|
96.6
|
%
|
||||||||||||||||||||||
Industrial
|
0
|
0
|
13,326
|
0
|
13,326
|
0
|
100.0
|
%
|
100.0
|
%
|
||||||||||||||||||||||
Total
|
1,624
|
8,947
|
59,748
|
39,016
|
61,372
|
47,963
|
97.0
|
%
|
97.4
|
%
|
(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)
|
|||||||||||||||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||||||||||||||
Healthcare
|
1,624
|
8,947
|
16.5
|
8.6
|
23.64
|
21.10
|
35.00
|
29.69
|
10.00
|
9.10
|
||||||||||||||||||||||||||||||
Industrial
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||||||||
Total
|
1,624
|
8,947
|
16.5
|
8.6
|
$
|
23.64
|
$
|
21.10
|
$
|
35.00
|
$
|
29.69
|
$
|
10.00
|
$
|
9.10
|
(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)
|
|||||||||||||||||||||||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||||||||||||||||||||
Healthcare
|
46,422
|
39,016
|
86.5
|
%
|
90.7
|
%
|
8.4
|
5.6
|
15.3
|
%
|
4.5
|
%
|
15.23
|
5.03
|
6.30
|
2.01
|
||||||||||||||||||||||||||||||||
Industrial
|
13,326
|
0
|
0
|
%
|
0
|
%
|
5.1
|
0
|
3.7
|
%
|
0
|
%
|
1.00
|
0
|
1.11
|
0
|
||||||||||||||||||||||||||||||||
Total
|
59,748
|
39,016
|
86.5
|
%
|
90.7
|
%
|
7.9
|
5.6
|
14.4
|
%
|
4.5
|
%
|
$
|
12.06
|
$
|
5.03
|
$
|
5.14
|
$
|
2.01
|
(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. The category of renewed leases does not include leases that have become month-to-month leases, as the month-to-month leases are considered lease amendments.
|
(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(2)
|
Percentage of Total
Commercial
Segments
Leased Square
Footage
|
Annualized Base
Rent of Expiring
Leases at Expiration(3)
|
Percentage of Total
Commercial
Segments
Annualized Base Rent
|
|||||||||||||||
2016 (remainder)(1)
|
44
|
644,628
|
16.6
|
%
|
$
|
7,253,739
|
13.8
|
%
|
||||||||||||
2017
|
28
|
194,940
|
5.0
|
%
|
2,967,374
|
5.6
|
%
|
|||||||||||||
2018
|
20
|
177,701
|
4.6
|
%
|
4,208,723
|
8.0
|
%
|
|||||||||||||
2019
|
21
|
350,052
|
9.0
|
%
|
4,802,740
|
9.1
|
%
|
|||||||||||||
2020
|
13
|
166,159
|
4.3
|
%
|
1,931,422
|
3.7
|
%
|
|||||||||||||
2021
|
17
|
98,512
|
2.5
|
%
|
1,931,600
|
3.7
|
%
|
|||||||||||||
2022
|
38
|
1,286,404
|
33.2
|
%
|
16,542,928
|
31.4
|
%
|
|||||||||||||
2023
|
12
|
480,309
|
12.4
|
%
|
2,295,072
|
4.4
|
%
|
|||||||||||||
2024
|
26
|
201,244
|
5.2
|
%
|
4,101,477
|
7.8
|
%
|
|||||||||||||
2025
|
5
|
76,691
|
2.0
|
%
|
1,634,465
|
3.1
|
%
|
|||||||||||||
Thereafter
|
14
|
200,747
|
5.2
|
%
|
4,953,209
|
9.4
|
%
|
|||||||||||||
Totals
|
238
|
3,877,387
|
100.0
|
%
|
$
|
52,622,749
|
100.0
|
%
|
(1) | Includes month-to-month leases. As of July 31, 2015, month-to-month leases accounted for 308,027 square feet of which 286,854 square feet were located in five senior housing facilities in Wyoming. |
(2) |
Assuming that none of the tenants exercise renewal or termination options, and including leases renewed prior to expiration. Also excludes 99,535 square feet of space occupied by us.
|
(3) |
Annualized Base Rent is monthly scheduled rent as of January 1, 2015, multiplied by 12.
|
(in thousands)
|
(in fiscal years)
|
||||||||||||||||||||||||||
Project Name and Location
|
Segment
|
Rentable
Square Feet
or Number of
Units
|
Percentage
Leased or Committed
|
Anticipated
Total
Cost(1)
|
Costs as of
July 31,
2015(1)
|
Cost per
Square Foot
or Unit(1)
|
Date Placed
in Service
|
Anticipated
Same-Store
Date
|
|||||||||||||||||||
Chateau II - Minot, ND
|
Multi-Family Residential
|
72 units
|
41.7
|
%
|
$
|
14,711
|
$
|
14,600
|
$
|
204,319
|
Q1 2016
|
Q1 2018
|
|||||||||||||||
Edina 6565 France SMC III - Edina, MN
|
Healthcare
|
57,624 sq ft
|
24.5
|
%
|
36,752
|
28,816
|
638
|
Q1 2016
|
Q1 2018
|
||||||||||||||||||
Renaissance Heights - Williston, ND(2)
|
Multi-Family Residential
|
288 units
|
42.4
|
%
|
62,362
|
62,339
|
216,535
|
Q1 2016
|
Q1 2018
|
||||||||||||||||||
$
|
113,825
|
$
|
105,755
|
(1) | Excludes tenant improvements and leasing commissions. |
(2) | We are currently an approximately 70.0% partner in the joint venture entity constructing this project. The anticipated total cost amount given is the total cost to the joint venture entity. |
(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
July 31, 2015
|
Anticipated
Construction
Completion
|
||||||||||||||||||
Minot Southgate Retail - Minot, ND
|
Other
|
7,963 sq ft
|
0
|
%
|
$ |
2,923
|
$
|
2,550
|
2Q 2016
|
|||||||||||||||
PrairieCare Medical - Brooklyn Park, MN
|
Healthcare
|
70,756 sq ft
|
100
|
%
|
24,251
|
23,424
|
2Q 2016
|
|||||||||||||||||
Cardinal Point - Grand Forks, ND
|
Multi-Family Residential
|
251 units
|
10.4
|
%
|
40,042
|
33,704
|
3Q 2016
|
|||||||||||||||||
Deer Ridge – Jamestown, ND
|
Multi-Family Residential
|
163 units
|
11.7
|
%
|
24,519
|
20,627
|
3Q 2016
|
|||||||||||||||||
71 France Phases I, II & III- Edina, MN(1)
|
Multi-Family Residential
|
241 units
|
27.0
|
%
|
73,290
|
50,455
|
1Q 2017
|
|||||||||||||||||
Monticello Crossings Phase I(2)
|
Multi-Family Residential
|
136 units
|
0
|
%
|
19,097
|
1,978
|
2Q 2017
|
|||||||||||||||||
Other
|
n/
|
a
|
n/
|
a
|
n/
|
a
|
n/
|
a
|
2,790
|
n/
|
a
|
|||||||||||||
$
|
184,122
|
$
|
135,528
|
(1) | The project will be constructed in three phases by a joint venture entity in which we have an approximately 52.6% interest. The anticipated total cost amount given is the total cost to the joint venture entity. The anticipated total cost includes approximately 21,772 square feet of retail space. |
(2) | This project will be constructed in two phases with approximately 202 units and an anticipated total cost of $31.5 million. |
(in thousands, except per share amounts)
|
||||||||||||||||||||||||
Three Months Ended July 31,
|
2015
|
2014
|
||||||||||||||||||||||
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 (loss) attributable to Investors Real Estate Trust
|
$
|
4,540
|
$
|
(151
|
)
|
|||||||||||||||||||
Less dividends to preferred shareholders
|
(2,879
|
)
|
(2,879
|
)
|
||||||||||||||||||||
Net income (loss) available to common shareholders
|
1,661
|
124,855
|
$
|
0.02
|
(3,030
|
)
|
111,039
|
$
|
(0.03
|
)
|
||||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Noncontrolling interest – Operating Partnership
|
186
|
13,951
|
(402
|
)
|
20,293
|
|||||||||||||||||||
Depreciation and amortization(1)
|
18,259
|
17,037
|
||||||||||||||||||||||
Impairment of real estate investments
|
1,725
|
2,320
|
||||||||||||||||||||||
Loss on depreciable property sales
|
175
|
2,993
|
||||||||||||||||||||||
FFO applicable to common shares and Units
|
$
|
22,006
|
138,806
|
$
|
0.16
|
$
|
18,918
|
131,332
|
$
|
0.14
|
(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 $13,443 and $12,435, and depreciation/amortization from Discontinued Operations of $4,863 and $4,621, less corporate-related depreciation and amortization on office equipment and other assets of $31 and $19, for the three months ended July 31, 2015 and 2014, respectively. |
(2) | Units of the Operating Partnership are exchangeable for cash, or, at our 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. |
Month
|
Fiscal Year 2016
|
Fiscal Year 2015
|
||||||
July
|
$
|
.1300
|
$
|
.1300
|
(in thousands)
|
||||||||||||||||||||||||||||||||
Future Principal Payments
|
||||||||||||||||||||||||||||||||
Mortgages
|
Remaining
Fiscal 2016
|
Fiscal 2017
|
Fiscal 2018
|
Fiscal 2019
|
Fiscal 2020
|
Thereafter
|
Total
|
Fair Value
|
||||||||||||||||||||||||
Fixed Rate
|
$
|
64,690
|
$
|
33,601
|
$
|
38,394
|
$
|
85,487
|
$
|
63,293
|
$
|
333,701
|
$
|
619,166
|
$
|
728,422
|
||||||||||||||||
Avg Fixed Interest Rate(1)
|
3.73
|
%
|
5.06
|
%
|
5.01
|
%
|
4.79
|
%
|
4.63
|
%
|
||||||||||||||||||||||
Variable Rate
|
$
|
646
|
$
|
8,372
|
$
|
884
|
$
|
31,361
|
$
|
9,305
|
$
|
0
|
$
|
50,568
|
$
|
50,568
|
||||||||||||||||
Avg Variable Interest Rate(1)
|
2.26
|
%
|
2.99
|
%
|
3.06
|
%
|
3.25
|
%
|
2.97
|
%
|
||||||||||||||||||||||
Held for Sale
|
$
|
11,807
|
$
|
161,063
|
$
|
27,287
|
$
|
49,519
|
$
|
7,237
|
$
|
36,108
|
293,021
|
409,931
|
||||||||||||||||||
Avg Fixed Interest Rate(1)
|
4.16
|
%
|
3.92
|
%
|
4.97
|
%
|
4.15
|
%
|
5.04
|
%
|
||||||||||||||||||||||
$
|
962,755
|
$
|
1,188,921
|
(in thousands)
|
||||||||||||||||||||||||||||
Future Interest Payments
|
||||||||||||||||||||||||||||
Mortgages
|
Remaining
Fiscal 2016
|
Fiscal 2017
|
Fiscal 2018
|
Fiscal 2019
|
Fiscal 2020
|
Thereafter
|
Total
|
|||||||||||||||||||||
Fixed Rate
|
$
|
23,058
|
$
|
28,054
|
$
|
26,067
|
$
|
23,122
|
$
|
18,378
|
$
|
30,012
|
$
|
148,691
|
||||||||||||||
Variable Rate
|
1,145
|
1,495
|
1,271
|
640
|
134
|
0
|
4,685
|
|||||||||||||||||||||
Held for Sale
|
12,200
|
11,009
|
5,899
|
3,495
|
2,109
|
2,168
|
36,880
|
|||||||||||||||||||||
$
|
190,256
|
(1) | Interest rate given is for the entire year. |
Exhibit No.
|
Description
|
10.1
|
Agreement for Sale and Purchase of Property dated June 12, 2015 by and between IRET Properties, as seller, and LSREF4 Bison Acquisitions, LLC, as buyer (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Commission on June 18, 2015).
|
10.2
|
Agreement for Sale and Purchase of Property dated June 25, 2015 by and between IRET Properties, as seller, and Glenborough, LLC, as agent on behalf of a joint venture between Glenborough and Oaktree Capital Management, L.P., as buyer (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Commission on June 26, 2015).
|
Section 302 Certification of President and Chief Executive Officer
|
|
Section 302 Certification of Executive Vice President and Chief Financial Officer
|
|
Section 906 Certifications of President and Chief Executive Officer
|
|
Section 906 Certifications of Executive Vice President and Chief Financial Officer
|
|
101*
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended July 31, 2015 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.
|
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick
|
|
President and Chief Executive Officer
|
|
/s/ Ted E. Holmes
|
|
Ted E. Holmes
|
|
Executive Vice President and Chief Financial Officer
|
|
Date: September 9, 2015
|
1. | I have reviewed this quarterly report on Form 10-Q 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; |
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; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By:
|
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick, President and Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q 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; |
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; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By:
|
/s/ Ted E. Holmes
|
|
Ted E. Holmes, Executive Vice President and Chief
Financial Officer
|
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Timothy P. Mihalick
|
|
Timothy P. Mihalick
|
|
President and Chief Executive Officer
|
|
September 9, 2015
|
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Ted E. Holmes
|
|
Ted E. Holmes
|
|
Executive Vice President and Chief Financial Officer
|
|
September 9, 2015
|
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Aug. 20, 2015
USD ($)
ft²
|
Aug. 12, 2015
USD ($)
Property
|
Aug. 03, 2015
USD ($)
Property
Parcel
|
Jul. 31, 2015 |
Jul. 31, 2014
USD ($)
|
Sep. 02, 2015
$ / shares
|
|
Subsequent Event [Line Items] | ||||||
Purchase price of acquired property | $ 26,578 | |||||
Cash paid for acquisition of property | $ 12,996 | |||||
Common Shares and Limited Partnership Units [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Record date | Sep. 15, 2015 | |||||
Payment date | Oct. 01, 2015 | |||||
Series A Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Record date | Sep. 15, 2015 | |||||
Payment date | Sep. 30, 2015 | |||||
Series B Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Record date | Sep. 15, 2015 | |||||
Payment date | Sep. 30, 2015 | |||||
Subsequent Event [Member] | Common Shares and Limited Partnership Units [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly amount per share or unit (in dollars per share) | $ / shares | $ 0.1300 | |||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly amount per share or unit (in dollars per share) | $ / shares | 0.5156 | |||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly amount per share or unit (in dollars per share) | $ / shares | $ 0.4968 | |||||
Subsequent Event [Member] | Healthcare [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of units | Property | 1 | |||||
Subsequent Event [Member] | Healthcare [Member] | Omaha, Nebraska [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Square footage acquired | ft² | 28,000 | |||||
Purchase price of acquired property | $ 6,500 | |||||
Cash paid for acquisition of property | $ 6,500 | |||||
Subsequent Event [Member] | Office Portfolio [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of units | Property | 33 | |||||
Number of parcels of land sold | Parcel | 1 | |||||
Sales price of properties | $ 250,000 | |||||
Gain on sale of properties | 18,100 | |||||
Gain (loss) on debt extinguishment | $ (4,800) | |||||
Subsequent Event [Member] | Office Portfolio [Member] | Mendota Heights, Minnesota [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of units | Property | 5 | |||||
Sales price of properties | $ 40,000 | |||||
Percentage of ownership in joint venture (in hundredths) | 51.00% |
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