Investor Presentation NAREIT REITweek | New York, NY | June 2018 NYSE: IRET

SAFE HARBOR STATEMENT AND LEGAL DISCLOSURE Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from expected results. These statements may be identified by our use of words such as “expects,” “plans,” “estimates,” “anticipates,” “projects,” “intends,” “believes,” and similar expressions that do not relate to historical matters. Such risks, uncertainties, and other factors include, but are not limited to, changes in general and local economic and real estate market conditions, fluctuations in interest rates, the effect of government regulations, the availability and cost of capital, risks associated with our value add and redevelopment opportunities, property acquisition and disposition activities, the financial condition of our tenants, competition from other developers, our ability to attract and retain skilled personnel, our ability to maintain our tax status as a real estate investment trust (REIT), and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017, and in subsequent quarterly reports on Form 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue due to subsequent events. www.iretapartments.com NAREIT REITweek | June 2018 2

COMPANY SNAPSHOT Now Dedicated Multifamily Company Focused Management Team Drives Operating Efficiencies Single Segment Property Specialist Engaged to Effect Improvement G&A and Operating Expenses Strong Markets and Distinct Geography Improved Capital Structure Positions for Future Growth Combination of Core and Value-Add Properties Flexible Balance Sheet and Capital Allocation Focus Same-Store NOI www.iretapartments.com NAREIT REITweek | June 2018 3

REPOSITIONING COMING TO FRUITION Delivering on stated goals and renewed business strategy Evolution of Business Strategy – Focus and Flexibility PAST PRESENT FUTURE Multifamily Multifamily 94% Multifamily Focus 31% Multifamily (% of NOI) 100% Leverage Leverage Leverage Leverage 45% 40% (% of Book Value) 56% Unsecured 20% Secured Secured 40% Leverage Type 100% Unsecured Secured 60% 80% Multifamily Acquisition Criteria – Quality and Efficiency Twin Cities / Denver Twin Cities / Denver Primary Market Focus Small Market Bias Strong Secondary Strong Secondary >$1,200 >$1,000 <$800 Revenue / Home Homes / Community <150 >150 >200 Note: “Past” as of 4/30/12 and “Present” as of 1/31/18 www.iretapartments.com NAREIT REITweek | June 2018 4

CAPITAL STRUCTURE OVERVIEW AS OF 1/31/18 $ in thousands, except where noted $1.6B Total Capitalization % of Weighted Weighted Debt Summary Amount Total Avg. Rate Avg. Maturity Total Secured Debt $555,875 80.2% 4.63% 4.5 Years $99M $693M Preferred Total Debt (1) Secured Unsecured LOC Balance $67,000 9.7% 3.45% 3.0 Years Equity Debt Pref. Equity 36% Unsecured Term Loan $70,000 10.1% 4.01% 5.0 Years 6% Unsecured Total Unsecured Debt $137,000 19.8% 3.74% 4.0 Years Debt 9% Total Debt $692,875 100.0% 4.45% 4.4 Years Common Equity Fixed Rate $564,874 81.5% 4.59% 4.9 Years 49% $761M Variable Rate $128,001 18.5% 3.83% 2.1 Years Common Equity (1) LOC commitments total $300 million $119,070 $122,479 $105,364 $98,228 $92,000 LOC Term Loan $50,401 $54,523 $43,043 $7,767 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Thereafter % of Total Maturing 6.21% 17.19% 17.68% 15.21% 14.18% 7.27% 7.87% 13.28% 1.12% Weighted Average Interest Rate 4.07% 5.65% 4.18% 5.23% 4.04% 4.02% 3.74% 3.56% 5.38% www.iretapartments.com NAREIT REITweek | June 2018 5

TODAY We are a premier multifamily company delivering exposure to strong Midwest markets Minot Williston MT ND Grand Forks Billings Bismarck MN St. Cloud WI Rapid City SD Minneapolis Sioux Falls Rochester IA NE Omaha Denver CO Topeka KS Highlights Portfolio Evolution • 90 communities with 14,176 apartment homes % of Multifamily NOI 26% • Proforma NOI for FY19 estimated to be 30% in 36% 34% 33% 32% 29% Minneapolis and Denver; over 50% in 22% 27% Minnesota and Colorado 30% 36% 10% 42% 42% 1% • Diversified price points within the portfolio 43% 42% 31% 38% • Significant opportunity for value add and 22% 24% (1) operational efficiencies FY14 FY15 FY16 FY17 YTD FY18 PF FY19 MN CO ND Other (1) Nine months ended 1/31/18 www.iretapartments.com NAREIT REITweek | June 2018 6

GROWTH IN MIDWEST MARKETS Newer communities in the Midwest have shown strong performance since 2010 Rent Growth CAGR Revenue Growth CAGR For communities built since 2010 For communities built since 2010 4.1% 3.5% 3.9% 2.8% 3.1% 2.4% 2.2% 2.3% 1.6% 1.9% Midwest South West Northeast National Avg Midwest South West Northeast National Avg 38% of IRET’s FY19 NOI expected from communities built since 2010(1) Source: Axiometrics (1) Proforma FY19 NOI www.iretapartments.com NAREIT REITweek | June 2018 7

MINNEAPOLIS–ST. PAUL IS STRONG Economic Drivers 19 Fortune 500 Companies • The Minneapolis–St. Paul economy is supported by large Rank Company Rank Company corporations in diverse industries that generate stable job 5 United Health Group 216 Land O' Lakes growth. Nineteen Fortune 500 companies and eight companies on Forbes’ list of America’s 225 largest private 39 Target 252 Ameriprise Financial companies, including Cargill at #1, are headquartered in 72 Best Buy 266 Xcel Energy Minnesota. 96 CHS 323 Hormel Foods • Minneapolis–St. Paul’s skilled labor force powers companies 97 3M 343 Thrivent Financial in a mix of industries including agriculture, manufacturing, 122 U.S. Bancorp 382 Mosaic retail, medical devices, biosciences, healthcare, IT, and clean energy. 180 Supervalu 462 Securian Financial 182 General Mills 490 Patterson • Axiometrics forecasts rental growth of 3.6% and vacancy of 3.4% in 2018, which ranks 7 and 2, respectively, among the 193 C.H. Robinson 496 Polaris top 50 multifamily markets. 215 Ecolab Effective Apartment Rent Growth Apartment Vacancy 6% 8% 5.3% 4.9% 7% 5% 4.7% 6% 3.8% 3.9% 4% 3.8% 5.4% 3.3% 3.3% 3.3% 5% 3.1% 3.1% 3.2% 3% 2.6% 2.5% 4% 2.2% 2.3% 3% 3.2% 2% 2% 1% 1% 0% 0% 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2011 2012 2013 2014 2015 2016 2017 2018 YTD Twin Cities National Twin Cities National Sources: Bureau of Labor Statistics, US Census Bureau, Fortune, and Axiometrics Note: 2018 YTD through 3/31/18 www.iretapartments.com NAREIT REITweek | June 2018 8

DENVER’S ECONOMY IS THRIVING Economic Drivers 130 Total Nonfarm Payrolls (SA 2010-present) Indexed to Jan 2010 = 100 26% • Denver’s advantageous location, livability, skilled workforce, 125 and attractiveness for doing business have prompted job creation throughout the metro area as employers relocate 120 and entrepreneurs create new ventures. The metro has added 305,000 jobs since the beginning of 2010. 115 14% • The region’s economy is deeply rooted in high-quality industries such as aerospace, technology, healthcare, energy, 110 transportation, finance, and tourism. • Relative to incomes, single family home prices in Denver are 105 high at $441,500 as of 1Q18, driving approximately 50% of the population to rent (national average = 36%). 100 2010 2011 2012 2013 2014 2015 2016 2017 2018 Denver National Effective Apartment Rent Growth Apartment Vacancy 12% 8% 7% 10% 9.7% 8.8% 6% 5.8% 8% 5.4% 6.9% 6.5% 6.7% 5% 6% 4% 4.7% 4.9% 3.8% 3.8% 3% 4% 3.2% 3.2% 3.3% 3.0% 2.7% 2.3% 2.5% 2% 2% 1% 0% 0% 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2011 2012 2013 2014 2015 2016 2017 2018 YTD Denver National Denver National Sources: Bureau of Labor Statistics, US Census Bureau, Fortune, National Association of Realtors, and Axiometrics Note: 2018 YTD through 3/31/18 www.iretapartments.com NAREIT REITweek | June 2018 9

COMPETITIVE WITH COASTAL MARKETS The Twin Cities and Denver boast extremely tight job markets, characterized by a highly educated workforce % of Adult Population with Bachelor's Degree or Higher Unemployment Rate(1) Washington-Arlington-Alexandria, DC-VA-MD-WV MSA 50.2% San Francisco-Oakland-Hayward, CA MSA 48.5% 3.3% 3.3% 3.2% Boston-Cambridge-Newton, MA-NH MSA 46.9% Denver-Aurora-Lakewood, CO MSA 42.5% Seattle-Tacoma-Bellevue, WA MSA 42.0% 2.8% 2.7% Minneapolis-St. Paul-Bloomington, MN-WI MSA 40.5% Baltimore-Columbia-Towson, MD MSA 39.5% New York-Newark-Jersey City, NY-NJ-PA MSA 39.0% Portland-Vancouver-Hillsboro, OR-WA MSA 38.9% Atlanta-Sandy Springs-Roswell, GA MSA 37.7% San Francisco,CA MSA Denver, CO MSA MSA CA San Diego, Twin Cities, MN MSA Orlando, FL MSA Both of these characteristics support strong incomes Rank Metropolitan Area Median Household Income 1 San Francisco-Oakland-Hayward, CA MSA $96,677 2 Washington-Arlington-Alexandria, DC-VA-MD-WV MSA $95,843 3 Boston-Cambridge-Newton, MA-NH MSA $82,380 4 Seattle-Tacoma-Bellevue, WA MSA $78,612 5 Baltimore-Columbia-Towson, MD MSA $76,788 6 Minneapolis-St. Paul-Bloomington, MN-WI MSA $73,231 7 Denver-Aurora-Lakewood, CO MSA $71,926 8 New York-Newark-Jersey City, NY-NJ-PA MSA $71,897 9 San Diego-Carlsbad, CA MSA $70,824 10 Portland-Vancouver-Hillsboro, OR-WA MSA $68,676 Sources: US Census Bureau and Bureau of Labor Statistics (1) March 2018 Unemployment Rate www.iretapartments.com NAREIT REITweek | June 2018 10

MINNEAPOLIS & DENVER VS. OTHER TOP 25 MSAs Targeted Geography Has Strong Market Fundamentals DENVER 2010-2017 Population CAGR 1.77% Unemployment Rate 2.80% Median Household Income $71,926 Median Home Price $441,500 TWIN CITIES Multifamily % of Housing Stock(1) 26.8% 2010-2017 Population CAGR 1.01% 2014-2017 Rent CAGR 5.38% Unemployment Rate 3.30% 2014-2017 Average Vacancy 4.82% Median Household Income $73,231 Median Home Price $260,400 Multifamily % of Housing Stock(1) 22.9% 2014-2017 Rent CAGR 3.01% 2014-2017 Average Vacancy 3.32% TOP 25 MSAs(2) 2010-2017 Population CAGR 1.16% Unemployment Rate 3.89% Median Household Income $66,564 Median Home Price $344,800 Multifamily % of Housing Stock(1) 24.5% 2014-2017 Rent CAGR 3.76% 2014-2017 Average Vacancy 4.77% Sources: US Census Bureau, Bureau of Labor Statistics, National Association of Realtors, and Axiometrics (1) 5+ units; mobile homes and RVs excluded from total stock (2) Top 25 MSAs defined as 25 highest populated metro areas as of most recent US Census Bureau data Top 25 MSA statistics are averages excluding Denver and Twin Cities www.iretapartments.com NAREIT REITweek | June 2018 11

FY18 INVESTMENTS Westend Dylan Location: Denver, CO Location: Denver, CO Profile: Urban Core Profile: Urban Core Constructed: 2015 Constructed: 2016 Homes: 390 Homes: 274 Purchase Price: $128.7M Purchase Price: $90.6M Park Place Oxbo Location: Plymouth, MN Location: St. Paul, MN Profile: Suburban Value-Add Profile: Urban Core Constructed: 1985 Constructed: 2017 Homes: 500 Homes: 191 Purchase Price: $92.3M Retail: 11,500 sf Purchase Price: $61.5M www.iretapartments.com NAREIT REITweek | June 2018 12

UNDERSTANDING SECONDARY MARKETS These five markets plus Minneapolis and Denver are expected to make up 76% of proforma FY19 NOI Rochester, MN Omaha, NE Grand Forks, ND St. Cloud, MN Bismarck, ND Population 218,280 933,316 102,414 197,759 132,142 Median Household Income $70,078 $62,247 $48,671 $56,620 $65,527 Unemployment Rate(1) 3.40% 3.00% 3.30% 4.10% 3.50% Mayo Clinic Offutt Air Force Base University of ND CentraCare Health State of ND Major Employers IBM Union Pacific Altru Health State of Minnesota Sanford Health Number of IRET Homes 1,711 1,370 1,554 1,187 1,259 Total Multifamily Supply 11,534 74,004 14,548 16,438 11,516 Same-Store Average Revenue per Unit(2) $1,262 $931 $912 $995 $996 Same-Store Physical Occupancy(3) 95.6% 96.1% 94.6% 96.4% 92.5% Sources: US Census Bureau, Bureau of Labor Statistics, IRET, Axiometrics, Company Filings and Disclosures, and IRET Research (1) March 2018 Unemployment Rate (2) Q3FY18 Average Revenue per Unit per Month (3) As of 1/31/18 www.iretapartments.com NAREIT REITweek | June 2018 13

CAPITAL ALLOCATION PRIORITIES Prudent capital allocation provides greater opportunities to reinvest in and grow our business Continue Disciplined Investment Strategy • Improve portfolio efficiency and quality through targeted redevelopment of existing assets and new acquisitions • Continue active portfolio management • Increase economies of scale Maintain Stronger, More Flexible Balance Sheet • Redeemed Series A ($29M, 8.25%) and Series B ($115M, 7.95%) preferred stock; issued Series C ($103M, 6.625%) preferred stock • Replaced $100M secured credit facility with $300M unsecured revolving credit facility – ability to increase facility to $500M with increase in unencumbered asset pool • Targeting debt metrics in-line with investment grade benchmarks Enhance Per-Share Metrics • Increase cash flow per share • Generate durable cash flow through higher-quality apartment portfolio • Improve dividend payout ratio www.iretapartments.com NAREIT REITweek | June 2018 14

CATALYSTS FOR UPSIDE Portfolio and operational improvements can expand margins and create value Multifamily IRET Upside Potential REIT Peers • Operational efficiencies associated with economies of scale Homes / Community 155 303 • Favorable comparison to institutional quality portfolios • Improvements in occupancy, utility bill-backs, and energy saving measures SS Operating Margins 54% 65% • Ability to introduce fee income and profit leaders including renters insurance • Successful execution of asset management and portfolio investment 2018E Price / FFO(1)(2) 14x 16x criteria to support multiple expansion • Solid cash flow growth and sound balance sheet management to Dividend Yield(1) 5.5% 4.7% drive common dividend growth and returns on capital Source: Public Company Filings and Disclosures, SNL Financial Note: As of 1/31/2018 for IRET and 3/31/2018 for peers. Peers include AIV, APTS, AVB, BRG, CPT, EQR, ESS, IRT, MAA, NXRT, and UDR (1) Price as of 5/15/2018 (2) Next Twelve Months Consensus FFO Estimates Arcata – Golden Valley, MN 71 France – Edina, MN Monticello Crossings – Monticello, MN www.iretapartments.com NAREIT REITweek | June 2018 15

PORTFOLIO SCALE AND QUALITY IMPROVING Total Multifamily NOI Average Revenue / Home $1,407 $85M $1,079 $41M $724 FY 2012 TTM as of 1/31/18 FY 2012 Current (1) Current Non Same- Store(1) Multifamily Homes Operational Enhancements • Placing full focus on our residents and our communities 14,176 • Growing our team of operational specialists 9,161 • Shifting to dedicated multifamily IT solutions • Revenue management • Leasing optimization • Reputation management • Lead management (2) (3) FY 2012 Current • Strengthening asset management with additional resources (1) Quarter Ended 1/31/18 (2) As of 4/30/12 (3) As of 4/30/18 www.iretapartments.com NAREIT REITweek | June 2018 16

SIGNIFICANT VALUE ADD OPPORTUNITY OPPORTUNITY • Approximately 5,600 apartment homes haven’t been renovated since before 2008 • Inventoried entire portfolio for value add opportunities • Identified communities in good locations garnering rents significantly lower than newer assets in the market • Opportunities include defensive upgrades to ensure competitiveness with newer product and to enhance our market position • Launching in strategic markets first FY19 PROGRAM • 1,000 units and various amenity projects identified for first phase of value add program • Estimated investment of $14 million • Targeted return on investment of 15% • Unit renovations vary in scope from light renovations at ~$2,000 per unit to full renovations at ~$15,000 per unit and include: • Kitchen remodels • Flooring • Bathroom renovations • Plumbing and lighting fixtures • Adding in-unit washers and dryers • Upgrading amenities to drive additional revenue, decrease operating expenses, reduce turnover, and appeal to more prospective residents. These include adding or upgrading: • Clubhouse • Package room/lockers • Dog park • Firepit, grill, and gazebo • Amenity upgrades include sustainability upgrades such as LED retrofits and more eco-friendly appliances www.iretapartments.com NAREIT REITweek | June 2018 17

VALUE ADD CASE STUDY – PARK PLACE Opportunity • Redevelop up to 488 homes at Park Place Apartments, a Class B BEFORE multifamily community located in a highly desirable suburb of Minneapolis • Take advantage of significant disparity between rents on newer, Class A product in the submarket and current rents Scope • Upgrades include: • New cabinets • New flooring • Quartz countertop • Kitchen tile backsplash AFTER • New bathroom vanities and countertops • Stainless steel appliances Expected Results • Average investment of $14,000-$16,000 per home • Average rent increases over 15% www.iretapartments.com NAREIT REITweek | June 2018 18

Investment Highlights Strong Balance Sheet Strong Markets Operational Enhancements Value Add Opportunities Best in Class Governance www.iretapartments.com NAREIT REITweek | June 2018 19

Investor Relations Contact: Matthew Volpano SVP – Capital Markets ir@iret.com 701.837.7104