8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 27, 2018 (June 25, 2018)

INVESTORS REAL ESTATE TRUST

(Exact name of Registrant as specified in its charter)

North Dakota	001-35624	45-0311232
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

1400 31st Avenue SW, Suite 60, Post Office Box 1988, Minot, ND 58702-1988

(Address of principal executive offices) (Zip code)

(701) 837-4738

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

Investors Real Estate Trust (the “Company”) issued an earnings release on June 27, 2018, announcing certain financial and operational results for the three and twelve months ended April 30, 2018. A copy of the press release is attached hereto as Exhibit 99.1.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished pursuant to Item 9.01, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On June 25, 2018, Andrew Martin, the Company’s Executive Vice President, Property Operations, notified the Board of Trustees (the “Board”) that he will be resigning as an officer of the Company, effective June 25, 2018.

In connection with his departure, the Company agreed to provide Mr. Martin with a Confidential Severance Agreement and Release, dated June 25, 2018, whereby:

• He will receive a lump sum severance payment of $318,750, equal to nine months of base salary and 75% of his target short-term incentive cash award for fiscal year 2019.

• As of his resignation date, vesting will accelerate on all 7,625 of his outstanding time-based restricted shares of common stock, which were awarded to him under the Company’s long-term incentive program. All outstanding performance shares awarded to him under the long-term incentive program will be forfeited.

• He will receive other employee benefits valued at $20,926.

The payments and benefits are conditioned on Mr. Martin’s release and waiver of claims arising out of his employment or the separation of his employment with the Company, and Mr. Martin’s agreement to maintain the confidentiality of information about the Company that he acquired during his employment.

The foregoing description is a summary only and does not purport to be a complete description of all of the terms, provisions, covenants, and agreements contained in Mr. Martin’s Confidential Severance Agreement and Release and is subject to and qualified in its entirety by reference to the full text of the Agreement, the form of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is hereby incorporated by reference.

On June 25, 2018, the Board appointed Anne Olson, the Company’s Executive Vice President, General Counsel and Secretary, to the additional position of Chief Operating Officer, effective as of June 25, 2018.

Ms. Olson, age 41, has served as Executive Vice President, General Counsel and Secretary of the Company since April 30, 2017. From 2011 to April 30, 2017, Ms. Olson was in the private practice of law, most recently as a partner with the law firm of Dorsey & Whitney LLP, in its Real Estate Practice Group. Prior to 2011, she served as Director of Investment Operations and in-house counsel for Welsh Companies, LLC and its affiliates, a provider of commercial real estate services, providing leadership in the growth of its asset portfolio and development of a successful capital markets strategy. Ms. Olson began her legal career practicing real estate law at Dorsey & Whitney LLP. She holds a B.A in English from Drake University and earned her J.D. with highest honors from Drake University Law School.

There were no arrangements or understandings between Ms. Olson and any other person pursuant to which Ms. Olson was selected as an officer. Ms. Olson does not have any family relationships subject to disclosure under Item 401(d) of Regulation S-K or any direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

In connection with her promotion, Ms. Olson’s annual base salary was increased from $325,000 to $360,000 effective June 25, 2018, and her target long-term incentive award for fiscal year 2019 was increased from 70% to 100% of her annual base salary.

The Company previously entered into an Indemnification Agreement with Ms. Olson in substantially the same form as previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 21, 2015, and a Change in Control Severance Agreement as previously described in, and in substantially the same form as previously filed as Exhibit 10.1 to, the Company’s Current Report on Form 8-K filed with the SEC on July 7, 2015.

Item 7.01. Regulation FD Disclosure.

Certain supplemental operating and financial data regarding the Company not included in the earnings release is attached as Exhibit 99.2. The foregoing information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in filings under the Securities Act of 1933.

ITEM 9.01    Financial Statements and Exhibits

Exhibits

Exhibit
Number	Description
10.1	Confidential Severance Agreement and Release, dated June 25, 2018, between Investors Real Estate Trust and Andrew Martin.
99.1	Earnings Release, dated June 27, 2018.
99.2	Supplemental Operating and Financial Data, dated June 27, 2018

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INVESTORS REAL ESTATE TRUST
	By	/s/ Mark O. Decker, Jr.
		Mark O. Decker, Jr.
Date: June 27, 2018		President and Chief Executive Officer

EX-10.1

CONFIDENTIAL SEVERANCE AGREEMENT AND RELEASE

This CONFIDENTIAL SEVERANCE AGREEMENT AND RELEASE (“Agreement”) is made and entered into by and between Andrew Martin (“Executive”) and Investors Real Estate Trust, Inc. (“Company”) on behalf of itself, its predecessors, parents, subsidiaries and affiliated entities (collectively, the “Company”).

1.Termination of Employment. Executive agrees and acknowledges that his employment with the Company terminated at the close of business on June 25, 2018 (the “Termination Date”). Executive will be paid his regular salary through the Termination Date. Except as provided in this Severance Agreement, all privileges of employment will end as of the Termination Date. Please note that Executive may not sign this Agreement until on or afterhis Termination Date.

Upon Executive’s receipt of his final paycheck, which includes payment for employment through the Termination Date, Executive will have received all wages owed to his by virtue of his employment with the Company or the termination thereof.

Executive specifically acknowledges and agrees that he is not eligible for any other payments or benefits by virtue of his employment with the Company or the termination thereof except for those expressly described in this Agreement.

2.Consideration. In consideration of Executive’s promises and obligations under this Severance Agreement—subject to the terms and conditions of this Severance Agreement, including the release of claims set forth in paragraph 3 below—the Company will provide Executive with the following compensation and benefits, provided that he does not revoke or rescind this Severance Agreement:

2.1Severance Payment. The Company agrees to pay Executive a severance payment within twenty (20) days of Executive’s execution of this Agreement, which execution may not take place before June 25, 2018. The severance payment will be the sum of $318,750, subject to applicable tax withholding and deductions as required by law. The severance calculation is based on .75x base salary, plus .75 target bonus ((.75 x $250,000) + (.75 x $175,000) = $318,750). In addition to this payment, the Company further agrees to pay Executive an additional lump sum dollar amount equivalent to .75x the current annual premium for Executive’s current health insurance coverage.

2.2Vesting of Time-Based Stock Grants. Executive’s 7,625 shares of time-based stock grants will fully vest on the Termination Date.

2.3Other Benefits. The Company agrees to provide outplacement services for Executive for up to six months from the Termination Date and completion of Executive’s personal executive coaching program for the remainder of 2018.

3.Release and Waiver of Claims. Executive, on behalf of himself, Executive’s agents, representatives, attorneys, assignees, heirs, executors, and administrators, hereby covenants that

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Executive will not sue and hereby releases and forever discharges the Company, and its past and present employees, agents, insurers, officials, officers, directors, divisions, parents, subsidiaries, predecessors and successors, and all affiliated entities and persons, and all of their respective past and present employees, agents, insurers, officials, officers, and directors from any and all claims and causes of action of any type arising, or which may have arisen, out of or in connection with his employment or the separation of his employment with the Company, including but not limited to claims, demands or actions arising under Federal, state or local employment discrimination laws, regulations or requirements, including but not limited to the Federal Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, etseq., the Americans with Disabilities Act, 29 U.S.C. § 2101, etseq., the Family and Medical Leave Act, 29 U.S.C. § 2611, etseq., the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 626, as amended by the Older Workers Benefit Protection Act (“ADEA”), the Executive Retirement Income Security Act, as amended, the National Labor Relations Act, the Minnesota Human Rights Act; the Women’s Economic Security Act; the Minnesota Equal Pay for Equal Work Law, Minn. Stat. §§ 181.66–181.71; Minn. § 181.81 (age discrimination); Minn. Stat. § 176.82 (retaliatory discharge); Minn. Stat. §§ 181.931, 181.932, 181.935 (whistleblower protection); Minn. Stat. §§ 181.940–181.944 (family leave); Minn. Stat. §§ 181.961–181.966 (personnel record access statutes), and any other federal, state or local statute, ordinance, regulation or order regarding employment, compensation for employment, termination of employment, or discrimination in employment, and the common law of any state.

Executive further understands that this discharge of claims extends to, but is not limited to, all claims which Executive may have as of the date of this Agreement based upon statutory or common law claims for defamation, libel, slander, assault, battery, negligent or intentional infliction of emotional distress, negligent hiring or retention, breach of contract, retaliation, state common law whistleblowing, promissory estoppel, fraud, wrongful discharge, or any other theory, whether legal or equitable, and any and all claims for wages, salary, bonuses, commissions, damages, attorneys’ fees or costs. Executive additionally represents, warrants and agrees that Executive has received full and timely payment of all wages, salary, bonuses, and other compensation, and benefits that may have been due and payable to Executive by the Company. Executive further represents, warrants and agrees that Executive has received all leave or other benefits that may have been available to Executive under the Family and Medical Leave Act of 1993 (“FMLA”) or any comparable state law and that Executive has not been denied any rights or benefits available to Executive under the FMLA or any comparable state law. Executive expressly acknowledges and agrees that the Company is entering into this Agreement in reliance upon these representations by Executive.

Executive acknowledges that this release includes all claims that Executive is legally permitted to release. As such, the Executive understands that nothing contained in this Severance Agreement, including, but not limited to, this section, will be interpreted to prevent the Executive from filing a charge with the Equal Employment Opportunity Commission (“EEOC”), or other local civil rights enforcement agency, or from participating in or cooperating with an EEOC or other such agency investigation or proceeding. However, the Executive acknowledges and agrees that he is waiving the right to monetary damages or other individual legal or equitable relief awarded as a result of any such proceeding.

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Notwithstanding any provision of this Severance Agreement to the contrary, by execution of this Severance Agreement, the Executive is not releasing (i) any claims or rights he may have to the Severance Payments; (ii) any rights he may have to vested retirement benefits; or (iii) any claims that cannot be waived by law.

4.Confidential Information Acquired During Employment. Executive agrees that Executive will continue to treat, as private and privileged, any information, data, documents, reports, interpretations, financial information, operating information, marketing information, business plans, forecasts, projections, strategies, analyses, records and other information that is non-public, confidential, or proprietary in nature (whether in written, electronic, or oral form) containing or otherwise reflecting information about the Company, together with all notes, analyses, compilations, studies, forecasts, memoranda or other documents in tangible form (whether in written form, electronically stored, or otherwise) that Executive acquired while working for the Company. Executive agrees that Executive will not release any such information to any person or entity at any time and will not utilize any such confidential information for Executive’s benefit or the benefit of others, including, without limitation, others in direct or indirect competition with the Company, except as may be required by law, or as agreed to in writing by the Company. Executive acknowledges that any violation of this non-disclosure provision shall entitle the Company to appropriate injunctive relief and to any damages which it may sustain due to the improper disclosure.

5.Confidentiality of Agreement. Executive represents and agrees that Executive will keep the terms and facts of this Agreement completely confidential, and that Executive will not disclose any information concerning this Agreement to anyone, except for Executive’s counsel, tax accountant, spouse, or representatives of the EEOC or a comparable state or other government agency, unless otherwise ordered to do so by a court or agency of competent jurisdiction. This Agreement does not prohibit Executive from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.

6.Opportunity to Review/Consult with Attorney. Executive agrees Executive has been given twenty-one (21) days to review and consider this Agreement. During this time, Executive agrees Executive has been advised to consult with an attorney before executing this Agreement. Any discussions about or changes to the Agreement, whether material or immaterial, do not restart the running of the 21 day period.

7.Notification of Release and Right to Rescind. Executive is hereby informed of his right to revoke this release of claims, insofar as it extends to potential claims under the Age Discrimination in Employment Act, by informing the Company of his intent to do so within seven (7) calendar days following his signing of this Severance Agreement. Executive is informed of his right to rescind his release of claims, insofar as it extends to potential claims under the Minnesota Human Rights Act, by informing the Company of his intent to do so within fifteen (15) calendar days following his signing of this Severance Agreement. The 7-day revocation period and the 15-day rescission period shall run concurrently. Executive understands that any such revocation or

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rescission must be made in writing and delivered by hand or by certified mail, return receipt requested, postmarked on or before the last day within the applicable revocation period to:

JoLynn Markison

Dorsey & Whitney LLP

50 South Sixth Street

Suite 1500

Minneapolis, MN 55402

Executive further understands that if Executive revokes or rescinds this Agreement, the Company will not be bound by the terms of this Agreement and, in such event, Executive will have no right to receive or right to retain the financial benefits conferred under this Agreement.

8.Minnesota Law, Forum and Merger. The terms of this Agreement shall be governed by the laws of the State of Minnesota, and shall be construed and enforced thereunder. Any dispute arising under this Agreement shall be determined exclusively by a Minnesota court of appropriate jurisdiction. This Agreement supersedes and replaces all prior oral and written agreements, understandings, and representations between Executive and the Company. Further, Executive understands and agrees that, except as provided in this Agreement, all claims which Executive has or may have against the Company and the other released parties are fully released and discharged by this Agreement. The only claim which Executive may hereafter assert against the Company or any of the other released parties is limited to an alleged breach of this Agreement.

9.Invalidity. If any one or more of the terms of this Agreement are deemed to be invalid or unenforceable by a court of law, the validity, enforceability, and legality of the remaining provisions of this Agreement will not in any way be affected or impaired thereby.

10.Remedies. Any material breach by Executive of the terms and conditions contained in this Agreement shall give the Company the right to discontinue the performance of any unperformed duties and obligations under this Agreement to the extent permitted by applicable law. If Executive breaches any term of the Agreement, any delay by the Company to enforce the Agreement shall not be deemed a waiver, acceptance, or acquiescence. No waiver shall bind the Company unless supported by consideration, executed in writing, and delivered to Executive by an authorized officer of the Company.

11.Executive Understands the Terms of this Agreement. Other than stated herein, Executive warrants that (a) no promise or inducement has been offered for this Agreement; (b) this Agreement is executed without reliance upon any statement or representation of the Company or its representatives concerning the nature and extent of any claims or liability therefor, if any; (c) Executive is legally competent to execute this Agreement and accepts full responsibility therefor; and (d) the Company has advised Executive to consult with an attorney, and Executive has had a sufficient opportunity to consult with an attorney.

PLEASE READ CAREFULLY BEFORE SIGNING. THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

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IN WITNESS WHEREOF, the parties have executed this Severance Agreement by their signatures below.

Dated: _____________________________	ANDREW MARTIN ________________________________
Dated: __________ ___________________	INVESTORS REAL ESTATE TRUST By ______________________________ Mark O. Decker, Jr., Chief Executive Officer

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EX-99.1

Exhibit 99.1

Earnings Release

IRET Announces Financial and Operating Results

for the Quarter and Fiscal Year Ended April 30, 2018

MINOT, ND, June 27, 2018 – IRET (NYSE: IRET) announced today its fiscal fourth quarter 2018 financial and operating results. Net income and Funds from Operations (“FFO”) per share for the three and twelve months ended April 30, 2018, are detailed below. Core FFO adjusts FFO for certain non-routine items, and both FFO and Core FFO are reconciled to net income in the tables accompanying this earnings release.

	Three Months Ended					Twelve Months Ended
	April 30,					April 30,
Per Share	2018			2017		2018		2017
Net Income (Loss)	$	(0.19	)	$	0.23	$	0.87	$	0.26
FFO	0.06			0.07		0.27		0.40
Core FFO	0.08			0.11		0.38		0.47

	Quarterly Comparison		Sequential Comparison		YTD Comparison
Multifamily Same-Store Results	4Q18 vs. 4Q17		4Q18 vs. 3Q18		4Q18 vs. 4Q17
Revenues	5.2	%	1.3	%	4.3	%
Expenses	5.8	%	(0.2	)%	9.5	%
Net Operating Income (“NOI”)	4.7	%	2.4	%	0.4	%

Multifamily Same-Store Results	4Q18		3Q18		4Q17
Physical Occupancy	96.5	%	95.2	%	93.8	%
Weighted Average Occupancy	95.1	%	93.9	%	91.6	%

“The last twelve months were pivotal in positioning ourselves as a multifamily company,” said Mark O. Decker, Jr., IRET’s President and CEO. “The next twelve months and beyond will be as pivotal in our quest to be the premier provider of apartment homes in our markets.”

IRET also announced that it has promoted Anne Olson to Chief Operating Officer and that Andrew Martin has resigned from his position as Executive Vice President, Property Operations, of the Company effective June 25, 2018. Mr. Martin will assist with his transition through July 31, 2018. Ms. Olson has served as Executive Vice President, General Counsel and Secretary since April 30, 2017, overseeing the Asset Management and Legal Departments, and will continue in her capacity as General Counsel and Secretary. “Anne has been an integral part of our leadership team over the last 14 months, and I am confident that she can assist us in leveraging the progress we have made and continue to demonstrate our commitment to improve our residents’ experience and our company’s financial results.”

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Fourth Quarter Fiscal Year 2018 Highlights

• Achieved quarterly same-store revenue growth of 5.2% over the same period in the prior year, driven by a 3.8% increase in occupancy and 1.4% growth in revenue per occupied home.

• Experienced elevated quarterly same-store expense growth of 5.8% over the same period in the prior year, driven by previously disclosed changes to capitalization policies, additional costs related to increasing occupancy, higher labor costs, and increased real estate taxes primarily attributable to higher levy rates in select markets.

• Grew quarterly same-store NOI growth by 4.7% over the same period in the prior year, driven by the aforementioned revenue growth of 5.2% offset by the 5.8% increase in expenses.

• Closed the acquisition of Westend, a 390-home apartment community in Denver, Colorado, completing our second investment in this top-25 MSA where we now have 664 apartment homes.

• Closed a $6.0 million operating line of credit to manage cash balances more effectively and enhance treasury management activities.

Fiscal Year 2018 Highlights

• Substantially completed our transformation into a focused multifamily company by selling 50 commercial and other non-core multifamily properties for an aggregate sales price of $515.1 million. We used a portion of the proceeds from these sales to purchase four apartment communities with 1,355 homes for $373.1 million.

• Achieved same-store revenue growth of 4.3% over the prior fiscal year, driven by a 2.4% increase in occupancy and 1.9% increase in revenue per occupied home. Realized these increases through a combination of initiatives, including better revenue management across the portfolio and the expansion of utility billings and ancillary revenue programs.

• Experienced elevated same-store expense growth of 9.5% over the prior fiscal year, driven by previously disclosed changes to capitalization policies, additional costs related to increasing occupancy, higher labor costs, and increased real estate taxes.

• Posted same-store NOI growth of 0.4% over the prior fiscal year, driven by the aforementioned revenue growth of 4.3% but offset by the 9.5% increase in expenses.

• Issued 4,118,460 shares of 6.625% Series C preferred shares for gross proceeds of $103.0 million and redeemed all 4,600,000 shares of 7.95% Series B preferred shares for an aggregate cost, including accrued dividends, of $115.8 million, which will result in a reduction of $2.3 million in annual preferred dividend payments.

• Increased the commitments to our unsecured line of credit by $50 million to a current total of $300 million. Closed a $70 million unsecured term loan and executed a swap agreement to synthetically fix the interest rate for the full duration of the loan.

• Established a new senior management team to complete the portfolio transition and continue the operational improvements while achieving a $1.6 million year-over-year reduction in general and administrative expenses.

• Strengthened our board with two new trustees who add expertise in customer-facing service operations and technology application as well as public company leadership experience in both board and management roles.

Acquisitions

We added one new community to our portfolio during the quarter:

			(in thousands)
Community Name	Location	Apartment Homes	Total Cost		% Occupied as of 4/30/2018
Westend	Denver, CO	390	$	128,700	93.8	%

Dispositions

During the quarter, we sold one commercial property and adjacent parcel of unimproved land in Bismarck, ND for an aggregate sales price of $5.5 million.

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Balance Sheet

At the end of the fourth quarter, we had $193.9 million of total liquidity on our balance sheet, including $176.0 million available on our corporate revolver and $6.0 million on our operating line of credit.

During the quarter, we repurchased and retired approximately 548,000 common shares and redeemed approximately 39,000 Units for an aggregate cost of approximately $3.0 million, representing an average price of approximately $5.09 per share.

During fiscal year 2018, we incurred a loss of $18.1 million due to impairment of one apartment community, three other commercial properties, and four parcels of land.

Quarterly Distributions

On June 5, 2018, IRET’s Board of Trustees declared a regular quarterly distribution of $0.07 per share/unit payable on July 2, 2018, to common shareholders and unitholders of record on June 15, 2018. This distribution will be the 189th consecutive quarterly distribution paid by IRET since its inception in 1970. It represents an annualized rate of $0.28 per share/unit with an annualized yield of 4.7% based on IRET’s closing share price as of June 26, 2018.

The Board of Trustees also declared a distribution of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE: IRET PRC) payable on July 2, 2018, to holders of record on June 15, 2018. Series C preferred share distributions are cumulative and payable quarterly in arrears at an annual rate of $1.65625 per share.

Earnings Call

Live webcast and replay:  http://ir.iretapartments.com
Live Conference Call		Conference Call Replay
Thursday, June 28, 2018, at 10:00 AM ET		Replay available until July 12, 2018
USA Toll Free Number	1-877-509-9785	USA Toll Free Number	1-877-344-7529
International Toll Free Number	1-412-902-4132	International Toll Free Number	1-412-317-0088
Canada Toll Free Number	1-855-669-9657	Canada Toll Free Number	1-855-669-9658
		Conference Number	10120792

Supplemental Information

Supplemental Operating and Financial Data for the Quarter Ended April 30, 2018 (“Supplemental Information”), is available in the Investors section on IRET’s website at www.iretapartments.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Information, which accompanies this earnings release.

About IRET

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of April 30, 2018, IRET owned interests in 90 apartment communities consisting of 14,176 apartment homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET PRC, respectively).

Forward Looking Statements

Certain statements in this press release are based on our current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Froward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of those words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond our control and could differ materially from our actual results and performance. Such risks and uncertainties are detailed from time to time in our filings with the SEC, 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, 2018, in subsequent quarterly reports on Form 10-Q and in other public reports. We assume no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

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IRET

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

IRET TO FFO AND CORE FFO

z

	(inthousands,exceptpershareamounts)
Three Months Ended April 30,	2018							2017
	Amount			Weighted Avg Shares and Units(1)	Per Share And Unit(2)			Amount			Weighted Avg Shares and Units(1)	Per Share And Unit(2)
Net income (loss) attributable to controlling interests	$	(20,874	)					$	30,280
Less dividends to preferred shareholders	1,705							2,286
Less redemption of preferred shares	—							—
Net income (loss) available to common shareholders	(22,579		)	119,588	$	(0.19	)	27,994			121,155	$	0.23
Adjustments:
Noncontrolling interest – Operating Partnership	(2,663		)	14,115				3,656			15,797
Depreciation and amortization	20,269							13,222
Impairment of real estate investments	15,192							2,875
Gains on depreciable property sales attributable to controlling interests	(2,210		)					(37,517		)
FFO applicable to common shares and Units(1)	$	8,009		133,703	$	0.06		$	10,230		136,952	$	0.07
Adjustments to Core FFO:
Lease termination fees	—							(3,244		)
Development pursuit and other write offs								3,224
Loss on extinguishment of debt	122							2,910
Severance related costs	301							2,612
Land impairment	2,617							—
Redemption of Preferred Shares	—							—
Core FFO applicable to common shares and Units(1)	$	11,049		133,703	$	0.08		$	15,732		136,952	$	0.11

(1) Units of the Operating Partnership are exchangeable for cash or, at our discretion, Common Shares on a one-for-one basis.

(2) Net income attributable to IRET is calculated on a per common share basis. FFO is calculated on a per common share and Unit basis.

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IRET

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

IRET TO FFO AND CORE FFO

	(in thousands, except per share amounts)
Twelve Months Ended April 30,	2018						2017
	Amount			Weighted Avg Shares and Units(1)	Per Share And Unit(2)		Amount			Weighted Avg Shares and Units(1)	Per Share And Unit(2)
Net income attributable to controlling interests	$	116,788					$	43,347
Less dividends to preferred shareholders	(8,569		)				(10,546		)
Less redemption of preferred shares	(3,657		)				(1,435		)
Net income available to common shareholders	104,562			119,977	$	0.87	31,366			121,169	$	0.26
Adjustments:
Noncontrolling interest – Operating Partnership	12,702			14,617			4,059			16,130
Depreciation and amortization	87,299						52,564
Impairment of real estate investments attributable to controlling interests	15,448						42,065
Gains on depreciable property sales attributable to controlling interests	(183,687		)				(74,847		)
FFO applicable to common shares and Units(1)	$	36,324		134,594	$	0.27	$	55,207		137,299	$	0.40
Adjustments to Core FFO:
Lease termination fees	—						(3,251		)
Development pursuit and other write offs	—						3,224
Loss on extinguishment of debt	7,448						4,889
Land impairment	2,617						—
Redemption of Preferred Shares	3,657						1,435
Severance and transition costs	951						2,612
Core FFO applicable to common shares and Units(1)	$	50,997		134,594	$	0.38	$	64,116		137,299	$	0.47

(1) Units of the Operating Partnership are exchangeable for cash or, at our discretion, common shares on a one-for-one basis.

(2) Net income attributable to IRET is calculated on a per common share basis. FFO is calculated on a per common share and Unit basis.

5

IRET

RECONCILIATION OF NET OPERATING INCOME TO THE

CONSOLIDATED STATEMENTS OF OPERATIONS

	(in thousands)
Three Months Ended April 30, 2018	Multifamily		All Other		Total
Real estate revenue	$	42,360	$	1,825	$	44,185
Real estate expenses	18,164		570		18,734
Net operating income	$	24,196	$	1,255	25,451
Property management					(1,411		)
Casualty gain					155
Depreciation and amortization					(21,072		)
Impairment of real estate investments					(17,809		)
General and administrative expenses					(4,093		)
Acquisition and investment related costs					(30		)
Interest expense					(8,302		)
Loss on debt extinguishment					(122		)
Interest and other income					592
Loss before gain on sale of real estate and other investments and income from discontinued operations					(26,641		)
Gain on sale of real estate and other investments					2,285
Loss from continuing operations					(24,356		)
Income from discontinued operations					197
Net income (loss)					$	(24,159	)

6

IRET

RECONCILIATION OF NET OPERATING INCOME TO THE

CONSOLIDATED STATEMENTS OF OPERATIONS

	(in thousands)
Three Months Ended April 30, 2017	Multifamily		All Other		Total
Real estate revenue	$	36,228	$	6,583	$	42,811
Real estate expenses	15,720		722		16,442
Net operating income	$	20,508	$	5,861	26,369
Property management					(1,239		)
Casualty gain					51
Depreciation and amortization					(11,060		)
Impairment of real estate investments					(2,875		)
General and administrative expenses					(4,728		)
Acquisition and investment related costs					(3,224		)
Interest expense					(8,281		)
Loss on debt extinguishment					(1,193		)
Interest and other income					461
Loss before gain on sale of real estate and other investments and income from discontinued operations					(5,719		)
Gain on sale of real estate and other investments					7,409
Income from continuing operations					1,690
Income from discontinued operations					31,950
Net income (loss)					$	33,640

7

	(in thousands)
Twelve Months Ended April 30, 2018	Multifamily		All Other		Total
Real estate revenue	$	159,983	$	9,762	$	169,745
Real estate expenses	70,460		2,574		73,034
Net operating income	$	89,523	$	7,188	96,711
Property management					(5,526		)
Casualty loss					(500		)
Depreciation and amortization					(82,070		)
Impairment of real estate investments					(18,065		)
General and administrative expenses					(14,203		)
Acquisition and investment related costs					(51		)
Interest expense					(34,178		)
Loss on debt extinguishment					(940		)
Interest and other income					1,508
Loss before gain on sale of real estate and other investments and income from discontinued operations					(57,314		)
Gain on sale of real estate and other investments					20,120
Loss from continuing operations					(37,194		)
Income from discontinued operations					164,823
Net income (loss)					$	127,629

	(in thousands)
Twelve Months Ended April 30, 2017	Multifamily		All Other		Total
Real estate revenue	$	142,214	$	17,890	$	160,104
Real estate expenses	60,895		3,431		64,326
Net operating income	$	81,319	$	14,459	95,778
Property management					(5,046		)
Casualty loss					(414		)
Depreciation and amortization					(44,253		)
Impairment of real estate investments					(57,028		)
General and administrative expenses					(15,871		)
Acquisition and investment related costs					(3,276		)
Interest expense					(34,314		)
Loss on debt extinguishment					(1,651		)
Interest and other income					1,146,000
Loss before gain on sale of real estate and other investments and income from discontinued operations					(64,929		)
Gain on sale of real estate and other investments					18,701
Loss from continuing operations					(46,228		)
Income from discontinued operations					76,753
Net income (loss)					$	30,525

8

EX-99.2

Exhibit 99.2

Supplemental Financial and Operating Data

Table of Contents

April 30, 2018

	Page
Company Background	S-2
Key Financial Data
Condensed Consolidated Balance Sheets	S-4
Condensed Consolidated Statements of Operations	S-5
Funds From Operations	S-6
Adjusted EBITDA	S-7
Debt and Capital Analysis
Debt Analysis	S-8
Capital Analysis	S-9
Portfolio Analysis
Net Operating Income Detail	S-10
Same-Store Comparison	S-11
Portfolio Summary	S-14
Same-Store Capital Expenditures	S-15
Growth Analysis
Fiscal 2018 Acquisition Summary	S-16
Definitions	S-17

S-1

Company Background

Fourth Quarter Fiscal 2018

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of April 30, 2018, IRET owned interests in 90 communities consisting of 14,176 apartment homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET PRC, respectively).

Company Snapshot

(as of April 30, 2018)

Company Headquarters	Minot, North Dakota
Fiscal Year-End	April 30
Reportable Segment	Multifamily
Total Apartment Communities	90
Total Apartment Homes	14,176
Common Shares Outstanding (thousands)	119,526
Limited Partnership Units Outstanding (thousands)	14,099
Common Share Distribution – Quarter/Annualized	$0.07/$0.28
Annualized Dividend Yield	5.3%
Total Capitalization	$1.5 billion

Common Shares and Limited Partnership Units outstanding as of June 20, 2018, were 119,406,963 and 14,098,506, respectively.

Investor Information

(as of June 27, 2018)

Board of Trustees

Jeffrey P. Caira	Trustee and Chair
Michael T. Dance	Trustee, Chair of Audit Committee
Mark O. Decker, Jr.	Trustee, President, Chief Executive Officer and Chief Investment Officer
Emily Nagle Green	Trustee
Linda J. Hall	Trustee, Chair of Compensation Committee
Terrance P. Maxwell	Trustee
Jeffrey L. Miller	Trustee, Chair of the Nominating and Governance Committee
John A. Schissel	Trustee, Chair of Capital Markets Committee
Mary J. Twinem	Trustee

Management

Mark O. Decker, Jr.	President, Chief Executive Officer, and Chief Investment Officer; Trustee
John A. Kirchmann	Executive Vice President and Chief Financial Officer
Anne Olson	Executive Vice President and Chief Operating Officer, General Counsel and Secretary
Nancy B. Andersen	Senior Vice President and Chief Accounting Officer
Grant Campbell	Senior Vice President - Investments
Sue Picotte	Senior Vice President - Asset Management & Operations Support
Shawnee Tharp	Senior Vice President - Property Operations

Executive Offices:	Investor Relations Contact:
800 LaSalle Avenue	Jon Bishop
Suite 1600	701-837-7104
Minneapolis, MN 55402	IR@iret.com
Trading Symbol for Common Shares:  IRET
Trading Symbol for Series C Preferred Shares:  IRET PRC
Stock Exchange Listing:  NYSE

S-2

Common Share Data (NYSE: IRET)

	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	Fiscal Year 2018			Fiscal Year 2018			Fiscal Year 2018			Fiscal Year 2018			Fiscal Year 2017
High Closing Price	$	5.58		$	6.06		$	6.32		$	6.72		$	6.61
Low Closing Price	$	4.65		$	5.52		$	5.81		$	5.64		$	5.67
Average Closing Price	$	5.09		$	5.80		$	6.09		$	6.07		$	6.09
Closing Price at end of quarter	$	5.33		$	5.67		$	5.85		$	6.22		$	5.91
Common Share Distributions – annualized	$	0.28		$	0.28		$	0.28		$	0.28		$	0.28
Closing Dividend Yield – annualized	5.3		%	4.9		%	4.8		%	4.5		%	4.7		%
Closing common shares outstanding (thousands)	119,526			120,035			120,188			120,587			121,199
Closing limited partnership units outstanding (thousands)	14,099			14,168			14,618			14,657			15,617
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)	$	712,221		$	760,931		$	788,615		$	841,218		$	808,583

This Supplemental Operating and Financial Data contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Froward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of those words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be achieved.

Such risks, uncertainties and other factors that might cause such differences include, but are not limited to: economic conditions in the markets where we own properties or markets in which we may invest in the future; rental conditions in our markets, including occupancy levels and rental rates, our potential inability to renew tenants or obtain new tenants upon expiration of existing leases, changes in tax and housing laws, or other factors; adverse changes in real estate markets, including the extent of future demand for multifamily apartment homes in our significant markets, barriers of entry into new markets, limitations on our ability to increase rental rates, our ability to identify and consummate attractive acquisitions on favorable terms, our ability to consummate any planned dispositions in a timely manner, our ability to reinvest sales proceeds successfully, and our ability to accommodate any significant decline in the market value of real estate serving as collateral for our mortgage obligations; inability to succeed in any new markets we may enter; failure of new acquisitions to achieve anticipated results or be efficiently integrated; inability to complete lease-up of our projects on schedule and on budget; inability to sell our non-core properties on terms that are acceptable; failure to reinvest proceeds from sales of properties into tax-deferred exchanges, which could necessitate special dividend and tax protection payments; the need to fund capital expenditures out of cash flow; the need to reduce the dividends on our common shares; financing risks, including our potential inability to obtain debt or equity financing on favorable terms, or at all; level and volatility of interest or capitalization rates or capital market conditions; changes in operating costs, including real estate taxes, utilities, and insurance costs; the availability and cost of casualty insurance for losses; inability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, inability of the Operating Partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, and the risk of changes in laws affecting REITs; inability to attract and retain qualified personnel; cyber liability or potential liability for breaches of our privacy or information security systems; inability to comply with environmental laws and regulations; and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended April 30, 2018 subsequent quarterly reports on Form 10-Q, and other public filings.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

S-3

IRET

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017
ASSETS
Real estate investments
Property owned	$	1,669,764		$	1,568,725		$	1,510,890		$	1,424,251		$	1,358,529
Less accumulated depreciation	(311,324		)	(304,149		)	(292,976		)	(280,563		)	(255,599		)
	1,358,440			1,264,576			1,217,914			1,143,688			1,102,930
Unimproved land	11,476			15,123			15,216			15,195			18,455
Mortgage loans receivable	10,329			10,329			10,329			—			—
Total real estate investments	1,380,245			1,290,028			1,243,459			1,158,883			1,121,385
Assets held for sale and assets of discontinued operations	—			—			239,688			280,083			283,023
Cash and cash equivalents	11,891			22,666			42,464			23,801			28,819
Restricted cash	4,225			121,337			3,782			3,713			27,981
Other assets	30,297			21,664			21,634			15,870			13,306
TOTAL ASSETS	$	1,426,658		$	1,455,695		$	1,551,027		$	1,482,350		$	1,474,514
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY
LIABILITIES
Liabilities held for sale and liabilities of discontinued operations	$	—		$	2,016		$	95,193		$	127,413		$	130,904
Accounts payable and accrued expenses	29,018			33,690			32,581			34,248			35,566
Revolving line of credit	124,000			67,000			247,500			125,900			57,050
Term loan payable, net of loan costs	69,514			69,483			—			—			—
Mortgages payable, net of loan costs	509,919			553,388			561,798			565,705			565,978
Construction debt	—			86			21,649			20,134			41,741
TOTAL LIABILITIES	732,451			725,663			958,721			873,400			831,239
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES	6,708			6,644			6,812			7,010			7,181
EQUITY
Series B Preferred Shares of Beneficial Interest	—			—			—			111,357			111,357
Series C Preferred Shares of Beneficial Interest	99,456			99,456			99,467			—			—
Common Shares of Beneficial Interest	907,843			910,173			910,683			912,625			916,121
Accumulated distributions in excess of net income	(395,669		)	(364,684		)	(490,612		)	(488,535		)	(466,541		)
Accumulated other comprehensive income	1,779			359			—			—			—
Total shareholders’ equity	613,409			645,304			519,538			535,447			560,937
Noncontrolling interests – Operating Partnership	73,012			76,915			64,291			64,789			73,233
Noncontrolling interests – consolidated real estate entities	1,078			1,169			1,665			1,704			1,924
Total equity	687,499			723,388			585,494			601,940			636,094
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY	$	1,426,658		$	1,455,695		$	1,551,027		$	1,482,350		$	1,474,514

S-4

IRET

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share amounts)

	Three Months Ended															Twelve Months Ended
OPERATING RESULTS	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017			4/30/2018			4/30/2017
Real estate revenue	$	44,185		$	42,716		$	41,866		$	40,978		$	42,811		$	169,745		$	160,104
Real estate expenses	18,734			18,055			18,718			17,527			16,442			73,034			64,326
Net operating income	25,451			24,661			23,148			23,451			26,369			96,711			95,778
Property management expenses	(1,411		)	(1,387		)	(1,372		)	(1,356		)	(1,239		)	(5,526		)	(5,046		)
Casualty gain (loss)	155			(55		)	(115		)	(485		)	51			(500		)	(414		)
Depreciation/amortization	(21,072		)	(18,390		)	(17,270		)	(25,338		)	(11,060		)	(82,070		)	(44,253		)
Impairment of real estate investments	(17,809		)	—			—			(256		)	(2,875		)	(18,065		)	(57,028		)
General and administrative expenses	(4,093		)	(3,011		)	(3,118		)	(4,002		)	(4,728		)	(14,203		)	(15,871		)
Acquisition and investment related costs	(30		)	—			—			—			(3,224		)	(51		)	(3,276		)
Interest expense	(8,302		)	(9,236		)	(8,509		)	(8,131		)	(8,281		)	(34,178		)	(34,314		)
Loss on extinguishment of debt	(122		)	(285		)	(334		)	(199		)	(1,193		)	(940		)	(1,651		)
Interest and other income	592			433			255			228			461			1,508			1,146
Income (loss) before gain on sale of real estate and other investments and income from discontinued operations	(26,641		)	(7,270		)	(7,315		)	(16,088		)	(5,719		)	(57,314		)	(64,929		)
Gain on sale of real estate and other investments	2,285			12,387			5,324			124			7,409			20,120			18,701
Income (loss) from continuing operations	(24,356		)	5,117			(1,991		)	(15,964		)	1,690			(37,194		)	(46,228		)
Income from discontinued operations	197			146,811			15,130			2,685			31,950			164,823			76,753
Net income (loss)	(24,159		)	151,928			13,139			(13,279		)	33,640			127,629			30,525
Net (income) loss attributable to noncontrolling interest – Operating Partnership	2,663			(16,236		)	(773		)	1,644			(3,656		)	(12,702		)	(4,059		)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities	622			413			455			371			296			1,861			16,881
Net income (loss) attributable to controlling interests	(20,874		)	136,105			12,821			(11,264		)	30,280			116,788			43,347
Dividends to preferred shareholders	(1,705		)	(1,766		)	(2,812		)	(2,286		)	(2,286		)	(8,569		)	(10,546		)
Redemption of Preferred Shares	—			(8		)	(3,649		)	—			—			(3,657		)	(1,435		)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(22,579	)	$	134,331		$	6,360		$	(13,550	)	$	27,994		$	104,562		$	31,366
Per Share Data
(Loss) earnings per common share from continuing operations – basic & diluted	$	(0.19	)	$	0.03		$	(0.06	)	$	(0.13	)	$	—		$	(0.36	)	$	(0.30	)
Earnings per common share from discontinued operations – basic & diluted	—			1.09			0.11			0.02			0.23			1.23			0.56
Net (loss) income per common share – basic & diluted	$	(0.19	)	$	1.12		$	0.05		$	(0.11	)	$	0.23		$	0.87		$	0.26
Percentage of Revenues
Real estate expenses	42.4		%	42.3		%	44.7		%	42.8		%	38.4		%	43.0		%	40.2		%
Depreciation/amortization	47.7		%	43.1		%	41.3		%	61.8		%	25.8		%	48.3		%	27.6		%
General and administrative expenses	9.3		%	7.0		%	7.4		%	9.8		%	11.0		%	8.4		%	9.9		%
Interest	18.8		%	21.6		%	20.3		%	19.8		%	19.3		%	20.1		%	21.4		%
Income from discontinued operations	0.4		%	343.7		%	36.1		%	6.6		%	74.6		%	97.1		%	47.9		%
Net (loss) income	(54.7		)%	355.7		%	31.4		%	(32.4		)%	78.6		%	75.2		%	19.1		%

S-5

IRET

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

IRET TO FFO AND CORE FFO(unaudited)

(in thousands, except per share and unit amounts)

	Three Months Ended															Twelve Months Ended
	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017			4/30/2018			4/30/2017
Funds From Operations(1)
Net income (loss) attributable to controlling interests	$	(20,874	)	$	136,105		$	12,821		$	(11,264	)	$	30,280		$	116,788		$	43,347
Less dividends to preferred shareholders	(1,705		)	(1,766		)	(2,812		)	(2,286		)	(2,286		)	(8,569		)	(10,546		)
Less redemption of preferred shares	—			(8		)	(3,649		)	—			—			(3,657		)	(1,435		)
Net income (loss) available to common shareholders	(22,579		)	134,331			6,360			(13,550		)	27,994			104,562			31,366
Adjustments:
Noncontrolling interests – Operating Partnership	(2,663		)	16,236			773			(1,644		)	3,656			12,702			4,059
Depreciation and amortization of real property	20,269			19,017			19,894			28,119			13,222			87,299			52,564
Impairment of real estate investments attributable to controlling interests	15,192			—			—			256			2,875			15,448			42,065
Gain on depreciable property sales	(2,210		)	(163,791		)	(17,562		)	(124		)	(37,517		)	(183,687		)	(74,847		)
FFO applicable to common shares and Units	$	8,009		$	5,793		$	9,465		$	13,057		$	10,230		$	36,324		$	55,207
FFO per share and unit – basic and diluted	$	0.06		$	0.04		$	0.07		$	0.10		$	0.07		$	0.27		$	0.40
Adjustments to Core FFO:
Lease termination fees	—			—			—			—			(3,244		)	—			(3,251		)
Loss on extinguishment of debt	122			6,787			340			199			2,910			7,448			4,889
Redemption of Preferred Shares	—			8			3,649			—			—			3,657			1,435
Transition costs, including severance	301			—			186			464			2,612			951			2,612
Impairment of nondepreciable assets	2,617			—			—			—			—			2,617			—
Development pursuit and other write-offs	—			—			—			—			3,224			—			3,224
Core FFO applicable to common shares and Units	$	11,049		$	12,588		$	13,640		$	13,720		$	15,732		$	50,997		$	64,116
Core FFO per share and unit – basic and diluted	$	0.08		$	0.09		$	0.10		$	0.10		$	0.11		$	0.38		$	0.47
Weighted average shares and units	133,703			134,175			134,767			135,549			136,952			134,594			137,299

(1) See Definitions section.

S-6

IRET

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO

IRET TO ADJUSTED EARNINGS BEFORE INTEREST,

TAXES, DEPRECIATION, AND AMORTIZATION (ADJUSTED EBITDA) (unaudited)

(in thousands)

	Three Months Ended															Twelve Months Ended
	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017			4/30/2018			4/30/2017
Adjusted EBITDA(1)
Net income (loss) attributable to controlling interests	$	(20,874	)	$	136,105		$	12,821		$	(11,264	)	$	30,280		$	116,788		$	43,347
Adjustments:
Noncontrolling interests – Operating Partnership	(2,663		)	16,236			773			(1,644		)	3,656			12,702			4,059
Income (loss) before noncontrolling interests – Operating Partnership	(23,537		)	152,341			13,594			(12,908		)	33,936			129,490			47,406
Add:
Interest expense	7,884			9,569			9,523			9,703			10,303			36,679			45,942
Loss on extinguishment of debt	122			6,787			340			199			2,910			7,448			4,889
Depreciation/amortization related to real estate investments	20,347			19,100			19,977			28,215			13,280			87,639			52,774
Amortization related to real estate revenues(2)	—			—			—			—			20			—			95
Impairment of unimproved land	2,617			—			—			—			3,508			2,617			3,508
Impairment of real estate investments attributable to controlling interests	15,192			—			—			256			2,875			15,448			42,065
Less:
Interest income	(569		)	(408		)	(316		)	(564		)	(557		)	(1,857		)	(2,545		)
Gain on sale of real estate and other investments	(2,210		)	(163,791		)	(17,562		)	(124		)	(37,517		)	(183,687		)	(74,847		)
Adjusted EBITDA	$	19,846		$	23,598		$	25,556		$	24,777		$	28,758		$	93,777		$	119,287
Ratios
Adjusted EBITDA(1)/Interest expense	2.39		x	2.36		x	2.57		x	2.45		x	2.45		x	2.45		x	2.52		x
Adjusted EBITDA(1)/Interest expense plus preferred distributions	1.98		x	2.01		x	2.00		x	2.00		x	2.00		x	1.99		x	2.05		x

(1) See Definitions section.

(2) Included in real estate revenue in the Statement of Operations.

S-7

IRET

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

	Future Maturities of Debt (1)
Fiscal Year	Fixed Debt		Variable Debt		Total Debt		Weighted Average (2)		% of Total Debt
2019	$	14,393	$	—	$	14,393	5.42	%	2.00	%
2020	85,930		22,739		108,669		5.76	%	15.40	%
2021	55,173		—		55,173		5.05	%	7.80	%
2022	102,066		—		102,066		5.23	%	14.40	%
2023	28,055		—		28,055		4.13	%	4.00	%
Thereafter	203,784		—		203,784		3.79	%	28.90	%
Total secured maturing debt	489,401		22,739		512,140		4.69	%	72.50	%
Unsecured line of credit	—		124,000		124,000		3.63	%	17.6	%
Unsecured term loan (3)	70,000		—		70,000		3.86	%	9.9	%
Total debt	$	559,401	$	146,739	$	706,140	4.42	%	100.0	%

(1) Includes line of credit and term loan.

(2) Weighted average interest rate of debt that matures in fiscal year.

(3) Term loan has a variable interest rate that is hedged with an interest rate swap and matures January 31, 2023.

	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017
Debt Balances Outstanding (1)
Secured fixed rate	$	489,401		$	494,874		$	593,854		$	605,028		$	629,535
Secured variable rate	22,739			61,001			86,672			100,388			99,445
Unsecured line of credit	124,000			67,000			247,500			125,900			57,050
Unsecured term loan	70,000			70,000			—			—			—
Debt total	$	706,140		$	692,875		$	928,026		$	831,316		$	786,030
Weighted Average Interest Rate Secured	4.69		%	4.63		%	4.63		%	4.62		%	4.63		%
Line of Credit Rate	3.63		%	3.45		%	3.08		%	2.98		%	2.74		%
Term Loan Rate	3.86		%	4.01		%	—		%	—		%	—		%

(1) Includes mortgages on properties held for sale.

Debt Maturity by Quarter for the Next Two Fiscal Years

Fiscal Year	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
2019	$	2,957	$	11,436	$	—	$	—	$	14,393
2020	—		63,346		15,511		29,812		108,669
									$	123,062

S-8

IRET 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

	Three Months Ended
	4/30/2018		1/31/2018		10/31/2017		7/31/2017		4/30/2017
Equity Capitalization
Common shares outstanding	119,526		120,035		120,188		120,587		121,199
Operating partnership (OP) units outstanding	14,099		14,168		14,618		14,657		15,617
Total common shares and OP units outstanding	133,625		134,203		134,806		135,244		136,816
Market price per common share (closing price at end of period)	$	5.33	$	5.67	$	5.85	$	6.22	$	5.91
Equity capitalization-common shares and OP units	712,221		760,931		788,615		841,218		808,583
Recorded book value of preferred shares	99,456		99,456		99,467		111,357		111,357
Total equity capitalization	$	811,677	$	860,387	$	888,082	$	952,575	$	919,940
Debt Capitalization
Total debt	706,140		692,875		927,968		839,134		793,827
Total capitalization	$	1,517,817	$	1,553,262	$	1,816,050	$	1,791,709	$	1,713,767
Total debt to total capitalization	0.47:1		0.45:1		0.51:1		0.47:1		0.46:1

	Twelve Months Ended						Three Months Ended
	4/30/2018			4/30/2017			4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017
Earnings to fixed charges	(2		)	(3		)	(4		)	1.56		x	(5		)	(6		)	1.20		x
Earnings to combined fixed charges and preferred distributions	(2		)	(3		)	(4		)	1.33		x	(5		)	(6		)	(7		)
Debt service coverage ratio	1.79		x	1.67		x	1.81		x	1.78		x	1.84		x	1.75		x	1.69		x
Distribution Data
Common shares and units outstanding at record date	133,625			137,723			133,625			134,203			134,806			135,830			137,723
Total common distribution paid	$	37,785		$	63,360		$	9,395		$	9,420		$	9,462		$	9,509		$	9,641
Common distribution per share and unit(8)	$	0.28		$	0.40		$	0.07		$	0.07		$	0.07		$	0.07		$	0.07
Payout ratio (FFO per share and unit basis)(1)	101.4		%	100.0		%	104.9		%	175.0		%	100.0		%	70.0		%	100.0		%

(1) Payout ratio (FFO per share and unit basis) is the ratio of the current quarterly or annual distribution rate per common share and unit divided by quarterly or annual FFO per share and unit.

(2) Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $35.0 million and $43.6 million, respectively. Excluding non-cash depreciation charges related to a change in depreciable lives of $14.4 million and non-cash asset impairment charges of $18.1 million in the twelve months ended April 30, 2018, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been .93x and .76x, respectively, for the twelve months ended April 30, 2018.

(3) Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $29.5 million and $40.1 million, respectively. Excluding non-cash asset impairment and loss on sale charges of $57.0 million in the twelve months ended April 30, 2017, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 1.59x and 1.30x, respectively, for the twelve months ended April 30, 2017.

(4) Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $23.7 million and $25.4 million, respectively. Excluding non-cash asset impairment charges of $17.8 million in the three months ended April 30, 2018, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been .29x and .24x, respectively, for the three months ended April 30, 2018.

(5) Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $1.5 million and $4.3 million, respectively. The ratio of earnings to fixed charges and earnings to combined fixed charges and preferred distributions was .85x and .67x, respectively, for the three months ended October 31, 2017.

(6) Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $15.5 million and $17.8 million, respectively. Excluding non-cash depreciation charges related to a change in depreciable lives of $14.4 million in the three months ended July 31, 2017, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 0.92x and 0.75x, respectively, for the three months ended July 31, 2017.

(7) Earnings were inadequate to cover combined fixed charges and preferred distributions by $0.3 million. The ratio of earnings to combined fixed charges and preferred distributions was .98x for the three months ended April 30, 2017.

(8) Common distribution per share and unit for the twelve months ended April 30, 2017 includes a special distribution of $0.06.

S-9

IRET

NET OPERATING INCOME DETAIL

(in thousands)

	Three Months Ended April 30,											Year Ended April 30,
	2018			2017			$ Change			% Change		2018			2017			$ Change			% Change
Multifamily
Real estate revenue
Same-store	$	32,054		$	30,479		$	1,575		5.2	%	$	126,415		$	121,252		$	5,163		4.3	%
Non-same-store	10,306			5,749			4,557			79.3	%	33,568			20,962			12,606			60.1	%
Other properties and dispositions	1,825			6,583			(4,758		)	(72.3	)%	9,762			17,890			(8,128		)	(45.4	)%
Total	44,185			42,811			1,374			3.2	%	169,745			160,104			9,641			6.0	%
Real estate expenses
Same-store	13,939			13,173			766			5.8	%	56,773			51,862			4,911			9.5	%
Non-same-store	4,225			2,547			1,678			65.9	%	13,687			9,033			4,654			51.5	%
Other properties and dispositions	570			722			(152		)	(21.1	)%	2,574			3,431			(857		)	(25.0	)%
Total	18,734			16,442			2,292			13.9	%	73,034			64,326			8,708			13.5	%
Net operating income
Same-store	18,115			17,306			809			4.7	%	69,642			69,390			252			0.4	%
Non-same-store	6,081			3,202			2,879			89.9	%	19,881			11,929			7,952			66.7	%
Other properties and dispositions	1,255			5,861			(4,606		)			7,188			14,459			(7,271		)	(50.3	)%
Total	25,451			26,369			(918		)	(3.5	)%	96,711			95,778			933			1.0	%
Property management	(1,411		)	(1,239		)						(5,526		)	(5,046		)
Casualty	155			51								(500		)	(414		)
Depreciation/amortization	(21,072		)	(11,060		)						(82,070		)	(44,253		)
Impairment of real estate investments	(17,809		)	(2,875		)						(18,065		)	(57,028		)
General and administrative expenses	(4,093		)	(4,728		)						(14,203		)	(15,871		)
Acquisition and investment related costs	(30		)	(3,224		)						(51		)	(3,276		)
Interest expense	(8,302		)	(8,281		)						(34,178		)	(34,314		)
Loss on debt extinguishment	(122		)	(1,193		)						(940		)	(1,651		)
Interest and other income	592			461								1,508			1,146
Income (loss) before gain on sale of real estate and other investments and income from discontinued operations	(26,641		)	(5,719		)						(57,314		)	(64,929		)
Gain on sale of real estate and other investments	2,285			7,409								20,120			18,701
Income (loss) from continuing operations	(24,356		)	1,690								(37,194		)	(46,228		)
Income from discontinued operations	197			31,950								164,823			76,753
Net income (loss)	$	(24,159	)	$	33,640							$	127,629		$	30,525

S-10

IRET

SAME-STORE FOURTH QUARTER COMPARISONS

(in thousands, except property data amounts)

	Apartment Homes Included	Revenues						Expenses						NOI
Regions		FY18Q4		FY17Q4		% Change		FY18Q4		FY17Q4		% Change		FY18Q4		FY17Q4		% Change
Rochester, MN	1,711	$	6,082	$	5,748	5.8	%	$	2,311	$	2,386	(3.1	)%	$	3,771	$	3,362	12.2	%
Omaha, NE	1,370	3,652		3,486		4.8	%	1,566		1,496		4.7	%	2,086		1,990		4.8	%
Grand Forks, ND	1,303	3,350		3,234		3.6	%	1,579		1,491		5.9	%	1,771		1,743		1.6	%
St. Cloud, MN	1,187	3,353		3,034		10.5	%	1,578		1,440		9.6	%	1,775		1,594		11.4	%
Bismarck, ND	977	2,672		2,699		(1.0	)%	1,202		1,112		8.1	%	1,470		1,587		(7.4	)%
Topeka, KS	1,042	2,453		2,380		3.1	%	1,016		871		16.6	%	1,437		1,509		(4.8	)%
Billings, MT	770	2,011		2,003		0.4	%	576		824		(30.1	)%	1,435		1,179		21.7	%
Minneapolis, MN	688	2,394		2,245		6.6	%	992		902		10.0	%	1,402		1,343		4.4	%
Sioux Falls, SD	969	2,470		2,288		8.0	%	1,098		1,085		1.2	%	1,372		1,203		14.0	%
Rapid City, SD	474	1,332		1,244		7.1	%	623		476		30.9	%	709		768		(7.7	)%
Minot, ND	640	1,846		1,847		(0.1	)%	1,134		894		26.8	%	712		953		(25.3	)%
Williston, ND	189	439		271		62.0	%	264		196		34.7	%	175		75		133.3	%
Same-Store Total	11,320	$	32,054	$	30,479	5.2	%	$	13,939	$	13,173	5.8	%	$	18,115	$	17,306	4.7	%

	FY18Q4 % of NOI		Weighted Average Occupancy (1)						Average Monthly Rental Rate (2)						Weighted Average Monthly Revenue per Occupied Home (3)
Regions			FY18Q4		FY17Q4		% Change		FY18Q4		FY17Q4		% Change		FY18Q4		FY17Q4		% Change
Rochester, MN	20.9	%	95.1	%	88.7	%	7.2	%	$	1,207	$	1,236	(2.3	)%	$	1,246	$	1,261	(1.2	)%
Omaha, NE	11.5	%	95.9	%	94.9	%	1.1	%	858		830		3.4	%	927		893		3.8	%
Grand Forks, ND	9.8	%	95.1	%	90.6	%	5.0	%	856		865		(1.0	)%	901		913		(1.3	)%
St. Cloud, MN	9.8	%	95.4	%	90.4	%	5.5	%	908		878		3.4	%	987		942		4.8	%
Bismarck, ND	8.1	%	94.2	%	90.6	%	4.0	%	932		963		(3.2	)%	967		1,016		(4.8	)%
Topeka, KS	7.9	%	95.1	%	94.5	%	0.6	%	798		780		2.3	%	825		806		2.4	%
Billings, MT	7.9	%	91.6	%	89.5	%	2.3	%	905		907		(0.2	)%	951		969		(1.9	)%
Minneapolis, MN	7.7	%	95.8	%	95.5	%	0.3	%	1,131		1,059		6.8	%	1,210		1,140		6.1	%
Sioux Falls, SD	7.6	%	95.7	%	93.9	%	1.9	%	820		791		3.7	%	888		838		6.0	%
Rapid City, SD	3.9	%	96.6	%	94.4	%	2.3	%	904		880		2.7	%	969		927		4.5	%
Minot, ND	3.9	%	95.8	%	93.1	%	2.9	%	981		1,033		(5.0	)%	1,004		1,034		(2.9	)%
Williston, ND	1.0	%	97.2	%	82.5	%	17.8	%	837		928		(9.8	)%	797		581		37.2	%
Same-Store Total	100.0	%	95.1	%	91.6	%	3.8	%	$	942	$	938	0.4	%	$	992	$	979	1.4	%

(1) Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

(3) Average revenue is defined as total rental revenues divided by the weighted average occupied apartment units for the period.

S-11

IRET

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts)

	Apartment Homes Included	Revenues						Expenses						NOI
Regions		FY18Q4		FY18Q3		% Change		FY18Q4		FY18Q3		% Change		FY18Q4		FY18Q3		% Change
Rochester, MN	1,711	$	6,082	$	6,025	0.9	%	$	2,311	$	2,446	(5.5	)%	$	3,771	$	3,579	5.4	%
Omaha, NE	1,370	3,652		3,591		1.7	%	1,566		1,551		1.0	%	2,086		2,040		2.3	%
Grand Forks, ND	1,303	3,350		3,308		1.3	%	1,579		1,645		(4.0	)%	1,771		1,663		6.5	%
St. Cloud, MN	1,187	3,353		3,311		1.3	%	1,578		1,590		(0.8	)%	1,775		1,721		3.1	%
Bismarck, ND	977	2,672		2,606		2.5	%	1,202		1,200		0.2	%	1,470		1,406		4.6	%
Topeka, KS	1,042	2,453		2,435		0.7	%	1,016		1,073		(5.3	)%	1,437		1,362		5.5	%
Billings, MT	770	2,011		2,022		(0.5	)%	576		741		(22.3	)%	1,435		1,281		12.0	%
Minneapolis, MN	688	2,394		2,355		1.7	%	992		971		2.2	%	1,402		1,384		1.3	%
Sioux Falls, SD	969	2,470		2,386		3.5	%	1,098		1,143		(3.9	)%	1,372		1,243		10.4	%
Rapid City, SD	474	1,332		1,289		3.3	%	623		515		21.0	%	709		774		(8.4	)%
Minot, ND	640	1,846		1,837		0.5	%	1,134		875		29.6	%	712		962		(26.0	)%
Williston, ND	189	439		479		(8.4	)%	264		212		24.5	%	175		267		(34.5	)%
Same-Store Total	11,320	$	32,054	$	31,644	1.3	%	$	13,939	$	13,962	(0.2	)%	$	18,115	$	17,682	2.4	%

	FY18Q4 % of NOI		Weighted Average Occupancy (1)						Average Monthly Rental Rate (2)						Weighted Average Monthly Revenue per Occupied Home (3)
Regions			FY18Q4		FY18Q3		% Change		FY18Q4		FY18Q3		% Change		FY18Q4		FY18Q3		% Change
Rochester, MN	20.9	%	95.1	%	93.9	%	1.3	%	$	1,207	$	1,226	(1.5	)%	$	1,246	$	1,249	(0.2	)%
Omaha, NE	11.5	%	95.9	%	94.8	%	1.2	%	858		858		—	%	927		922		0.5	%
Grand Forks, ND	9.8	%	95.1	%	94.2	%	1.0	%	856		859		(0.3	)%	901		898		0.3	%
St. Cloud, MN	9.8	%	95.4	%	94.3	%	1.2	%	908		910		(0.2	)%	987		986		0.1	%
Bismarck, ND	8.1	%	94.2	%	91.2	%	3.3	%	932		944		(1.3	)%	967		975		(0.8	)%
Topeka, KS	7.9	%	95.1	%	94.5	%	0.6	%	798		798		—	%	825		824		0.1	%
Billings, MT	7.9	%	91.6	%	90.0	%	1.8	%	905		909		(0.4	)%	951		972		(2.2	)%
Minneapolis, MN	7.7	%	95.8	%	93.3	%	2.7	%	1,131		1,125		0.5	%	1,210		1,222		(1.0	)%
Sioux Falls, SD	7.6	%	95.7	%	94.7	%	1.1	%	820		814		0.7	%	888		867		2.4	%
Rapid City, SD	3.9	%	96.6	%	96.0	%	0.6	%	904		900		0.4	%	969		944		2.6	%
Minot, ND	3.9	%	95.8	%	96.1	%	(0.3	)%	981		983		(0.2	)%	1,004		996		0.8	%
Williston, ND	1.0	%	97.2	%	95.4	%	1.9	%	837		826		1.3	%	797		885		(9.9	)%
Same-Store Total	100.0	%	95.1	%	93.9	%	1.3	%	$	942	$	945	(0.3	)%	$	992	$	992	—	%

(1) Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

(3) Average revenue is defined as total rental revenues divided by the weighted average occupied apartment units for the period.

S-12

IRET

SAME-STORE YEAR-TO-DATE COMPARISONS

(in thousands, except property data amounts)

	Apartment Homes Included	Revenues						Expenses						NOI
Regions		FY18		FY17		% Change		FY18		FY17		% Change		FY18		FY17		% Change
Rochester, MN	1,711	$	24,011	$	22,872	5.0	%	$	9,707	$	8,835	9.9	%	$	14,304	$	14,037	1.9	%
Omaha, NE	1,370	14,340		13,725		4.5	%	6,449		5,915		9.0	%	7,891		7,810		1.0	%
Grand Forks, ND	1,303	13,315		12,978		2.6	%	6,247		5,614		11.3	%	7,068		7,364		(4.0	)%
St. Cloud, MN	1,187	13,093		11,769		11.2	%	6,508		5,881		10.7	%	6,585		5,888		11.8	%
Bismarck, ND	977	10,664		10,663		—	%	4,838		4,377		10.5	%	5,826		6,286		(7.3	)%
Topeka, KS	1,042	9,722		9,242		5.2	%	4,189		3,738		12.1	%	5,533		5,504		0.5	%
Billings, MT	770	8,057		7,884		2.2	%	3,116		3,083		1.1	%	4,941		4,801		2.9	%
Minneapolis, MN	688	9,337		8,665		7.8	%	3,928		3,687		6.5	%	5,409		4,978		8.7	%
Sioux Falls, SD	969	9,546		9,193		3.8	%	4,656		4,355		6.9	%	4,890		4,838		1.1	%
Rapid City, SD	474	5,140		4,891		5.1	%	2,253		1,975		14.1	%	2,887		2,916		(1.0	)%
Minot, ND	640	7,343		7,545		(2.7	)%	3,887		3,482		11.6	%	3,456		4,063		(14.9	)%
Williston, ND	189	1,847		1,825		1.2	%	995		920		8.2	%	852		905		(5.9	)%
Same-Store Total	11,320	$	126,415	$	121,252	4.3	%	$	56,773	$	51,862	9.5	%	$	69,642	$	69,390	0.4	%

	FY18 % of NOI		Weighted Average Occupancy (1)						Average Monthly Rental Rate (2)						Weighted Average Monthly Revenue per Occupied Home (3)
Regions			FY18		FY17		% Change		FY18		FY17		% Change		FY18		FY17		% Change
Rochester, MN	20.6	%	92.8	%	88.1	%	5.3	%	$	1,231	$	1,223	0.7	%	$	1,260	$	1,264	(0.3	)%
Omaha, NE	11.3	%	95.0	%	95.3	%	(0.3	)%	853		820		4.0	%	919		876		4.9	%
Grand Forks, ND	10.1	%	94.4	%	91.1	%	3.6	%	860		869		(1.0	)%	902		911		(1.0	)%
St. Cloud, MN	9.5	%	94.0	%	90.7	%	3.6	%	905		858		5.5	%	978		911		7.4	%
Bismarck, ND	8.4	%	92.3	%	89.3	%	3.4	%	949		977		(2.9	)%	985		1,019		(3.3	)%
Topeka, KS	7.9	%	94.9	%	93.9	%	1.1	%	795		765		3.9	%	820		787		4.2	%
Billings, MT	7.1	%	89.6	%	90.5	%	(1.0	)%	912		884		3.2	%	973		943		3.2	%
Minneapolis, MN	7.8	%	94.3	%	94.5	%	(0.2	)%	1,114		1,036		7.5	%	1,200		1,111		8.0	%
Sioux Falls, SD	7.0	%	94.4	%	94.8	%	(0.4	)%	811		780		4.0	%	869		834		4.2	%
Rapid City, SD	4.1	%	94.8	%	95.0	%	(0.2	)%	900		866		3.9	%	953		905		5.3	%
Minot, ND	5.0	%	95.1	%	92.9	%	2.4	%	994		1,064		(6.6	)%	1,006		1,057		(4.8	)%
Williston, ND	1.2	%	93.9	%	81.1	%	15.8	%	833		1,075		(22.5	)%	867		992		(12.6	)%
Same-Store Total	100.0	%	93.7	%	91.5	%	2.4	%	$	945	$	933	1.3	%	$	993	$	975	1.9	%

(1) Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

(3) Average revenue is defined as total rental revenues divided by the weighted average occupied apartment units for the period.

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IRET

PORTFOLIO SUMMARY ⁽¹⁾ 

	Three Months Ended
	4/30/2018			1/31/2018			10/31/2017			7/31/2017			4/30/2017
Number of Apartment Homes
Same-Store	11,320			11,320			11,384			11,384			10,512
Non-Same-Store	2,856			2,466			2,192			2,019			2,693
All Communities	14,176			13,786			13,576			13,403			13,205
Average Investment Per Apartment Home
Same-Store	$	88,219		$	88,329		$	88,047		$	87,876		$	78,996
Non-Same-Store	212,818			202,277			185,150			166,261			164,715
All Communities	$	112,401		$	108,681		$	102,760		$	99,684		$	96,485
Average Scheduled Rentper Apartment Home (2)
Same-Store	$	942		$	945		$	951		$	943		$	906
Non-Same-Store	1,358			1,332			1,309			1,165			1,267
All Communities	$	1,023		$	1,014		$	1,006		$	976		$	980
Average Revenue per Apartment Home (3)
Same-Store	$	992		$	994		$	998		$	991		$	955
Non-Same-Store	1,349			1,397			1,266			1,222			1,334
All Communities	$	1,064		$	1,066		$	1,041		$	1,026		$	1,032
Occupancy
Same-Store	96.5		%	95.3		%	95.2		%	94.5		%	94.2		%
Non-Same-Store	92.1		%	90.1		%	92.4		%	89.3		%	88.8		%
All Communities	95.6		%	94.3		%	94.8		%	93.7		%	93.1		%
Operating Expenses as a % of Scheduled Rent
Same-Store	46.6		%	47.0		%	49.5		%	48.7		%	46.6		%
Non-Same-Store	40.1		%	38.7		%	42.7		%	40.3		%	42.1		%
All Communities	44.9		%	45.1		%	48.1		%	47.2		%	45.4		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store	$	153		$	240		$	396		$	240		$	281

(1) Previously reported amounts are not revised for discontinued operations or changes in the composition of the same-store properties pool.

(2) Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

(3) Average revenue per apartment home is total revenues divided by the weighted average occupied homes for the period.

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IRET

SAME-STORE CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

	Three Months Ended
	4/30/2018		4/30/2017
Total Multifamily Same-Store Apartment Homes	11,320		11,320
Turnover	$	927	$	1,282
Furniture & Equipment	39		74
Building – Interior	120		490
Building – Exterior	546		799
Landscaping & Grounds	99		294
Capital Expenditures	$	1,731	$	2,939
CapEx per Apartment Home	153		260
Value Add	15		2,428
Unallocated Accruals (1)	—		21
Total Capital Spend	$	1,746	$	5,388
Total Capital Spend per Apartment Home	154		476

	Twelve Months Ended
	4/30/2018			4/30/2017
Total Multifamily Same-Store Apartment Homes	11,320			11,320
Turnover	$	5,066		$	4,671
Furniture & Equipment	306			450
Building – Interior	957			1,084
Building – Exterior	3,319			3,980
Landscaping & Grounds	2,136			1,891
Capital Expenditures	$	11,784		$	12,076
CapEx per Apartment Home	1,041			1,067
Value Add	383			16,510
Unallocated Accruals (1)	(1,651		)	171
Total Capital Spend	$	10,516		$	28,757
Total Capital Spend per Apartment Home	929			2,540

(1) Amounts represent the change in the balance of unallocated capital accruals. During the quarter ended January 31, 2018, we fully allocated all remaining accruals to their respective capital expenditure categories and, as of January 31, 2018, no capital expenditures remained unallocated.

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IRET

FISCAL 2018 ACQUISITIONS SUMMARY

as of April 30, 2018

($ in thousands)

Property	Location	Segment	Acquisition Date	Apartment Homes	Occupancy At Acquisition		4/30/2018 Occupancy		Acquisition Cost
Oxbo(1)	St. Paul, MN	Multifamily	May 26, 2017	191	29.3	%	73.3	%	$	61,500
Park Place	Plymouth, MN	Multifamily	September 13, 2017	500	94.0	%	91.4	%	92,250
Dylan	Denver, CO	Multifamily	November 28, 2017	274	79.9	%	83.9	%	90,600
Westend	Denver, CO	Multifamily	March 28, 2018	390	93.9	%	93.8	%	128,700
			Total	1,355					$	373,050

(1) Property includes 11,477 sq ft of retail space. Retail is 100% leased.

S-16

Definitions

April 30, 2018

Adjusted EBITDAis earnings before interest, taxes, depreciation, amortization, gain/loss on sale of real estate and other investments, impairment of real estate investments, gain/loss on extinguishment of debt and gain/loss from involuntary conversion. We consider Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, the cost of debt, or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure. Adjusted EBITDA as calculated by us is not comparable to Adjusted EBITDA reported by other REITs that do not define Adjusted EBITDA exactly as we do.

Core funds from operations (Core FFO) is FFO as adjusted for non-routine items or items not considered core to our business operations. By further adjusting for items that are not considered part of our core business operations, we believe Core FFO provides investors with additional information to compare our core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income as an indication of financial performance, or as an alternative to cash flows from operations as a measure of liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions to shareholders. Core FFO is a non-GAAP and non-standardized measure and may be calculated differently by other REITs.

Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.

Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization.

Funds from operations (FFO) is defined by the National Association of Real Estate Investment Trusts, Inc. (NAREIT) as net income (computed in accordance with GAAP), excluding gains (or losses) associated with the sale of previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. We believe that FFO, which is a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding our operating performance, primarily because its calculation excludes depreciation and amortization expense on real estate assets, thereby providing an additional perspective on our operating results. We believe that GAAP historical cost depreciation of real estate assets generally is not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. In addition, the exclusion in NAREIT’s definition of FFO of impairment write-downs and gains and losses from the sale of previously depreciated operating real estate assets helps to identify the operating results of the long-term assets that form the base of our investments, and assists management and investors in comparing those operating results between periods.

Net Debt to Annualized Adjusted EBITDA is total debt less cash and cash equivalents and real estate deposits as reported for the end of the quarter divided by Adjusted EBITDA as reported for the end of the quarter multiplied by 4.

Net Operating Income (NOI) is a non-U.S. GAAP measure which we define as total real estate revenues less property operating expenses and real estate tax expense combined (referred to as "Real estate expense").  We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with U.S. GAAP and should not be considered an alternative to net income, net income available for common shareholders, or cash flow from operating activities as a measure of financial performance.

Ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests - consolidated real estate entities, capitalized interest and preferred distributions. Fixed charges consist of mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest.

Ratio of earnings to combined fixed charges and preferred distributions is computed by dividing earnings by combined fixed charges and preferred distributions. For this purpose, earnings consist of income from continuing operations plus fixed charges and preferred distributions, less adjustments for noncontrolling interests – consolidated real estate entities, capitalized interest and preferred distributions. Combined fixed charges and preferred distributions consist of fixed charges (mortgage and loan interest expense, whether expensed or capitalized, the amortization of debt expense and capitalized interest) and preferred distributions.

S-17

Scheduled rent revenue is the total possible revenue from all leasable units and square footage, with occupied space valued at contract rates pursuant to leases and vacant units or square footage at market rates.

Same-store properties are properties owned or in service for the entirety of the periods being compared (except for properties for which significant redevelopment or expansion occurred during either of the periods being compared, an properties sold or classified as held for sale), and, in the case of development or redevelopment properties, which have achieved a target level of occupancy of 90%.

U.S. GAAP is defined as accounting principles generally accepted in the United States of America.

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