EARNINGS PER SHARE

9 Months Ended

Jan. 31, 2016

NOTE 3 • EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of Common Shares outstanding during the period. We have no outstanding options, warrants, convertible stock or other contractual obligations requiring issuance of additional shares that would result in dilution of earnings. Units can be exchanged for shares on a one-for-one basis after a minimum holding period of one year. The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three and nine months ended January 31, 2016 and 2015:

	(in thousands, except per share data)
	Three Months Ended January 31						Nine Months Ended January 31
	2016			2015			2016			2015
NUMERATOR
Income from continuing operations – Investors Real Estate Trust	$	8,028		$	7,334		$	15,938		$	12,195
Income from discontinued operations – Investors Real Estate Trust		31,769			1,037			45,065			1,139
Net income attributable to Investors Real Estate Trust		39,797			8,371			61,003			13,334
Dividends to preferred shareholders		(2,879	)		(2,879	)		(8,636	)		(8,636	)
Numerator for basic earnings per share – net income available to common shareholders		36,918			5,492			52,367			4,698
Noncontrolling interests – Operating Partnership		4,227			657			5,940			618
Numerator for diluted earnings per share	$	41,145		$	6,149		$	58,307		$	5,316
DENOMINATOR
Denominator for basic earnings per share weighted average shares		121,864			120,855			123,793			116,303
Effect of convertible operating partnership units		13,877			14,461			13,913			17,334
Denominator for diluted earnings per share		135,741			135,316			137,706			133,637
Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted	$	.04		$	.04		$	.06		$	.03
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic and diluted		.26			.01			.36			.01
NET INCOME PER COMMON SHARE – BASIC & DILUTED	$	.30		$	.05		$	.42		$	.04