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ACQUISITIONS AND DISPOSITIONS | 6 Months Ended
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Oct. 31, 2012
ACQUISITIONS AND DISPOSITIONS [Abstract] |
ACQUISITIONS AND DISPOSITIONS | NOTE 8 • ACQUISITIONS AND DISPOSITIONS PROPERTY ACQUISITIONS During the second quarter of fiscal year 2013, the Company closed on its acquisitions of:
· | a 58-unit multi-family residential property in Sartell, Minnesota (The Ponds at Heritage Place), on approximately 6.5 acres of land, for a purchase price of approximately $5.0 million, of which $3.3 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $1.7 million;
· | an approximately 2.6 acre parcel of vacant land in Williston, North Dakota, acquired for possible future development, for a purchase price of approximately $822,500, paid in cash; and
· | an approximately 3.8 acre parcel of vacant land in St. Cloud, Minnesota, acquired for possible future development for a purchase price of approximately $447,000, paid in cash.
During the first quarter of fiscal year 2013, the Company closed on its acquisitions of:
· | a 308-unit multi-family residential property in Topeka, Kansas, on approximately 18.3 acres of land, for a purchase price of approximately $17.7 million, of which $5.2 million was paid in cash with assumed debt of $12.5 million;
· | a 232-unit multi-family residential property in Lincoln, Nebraska, on approximately 14.7 acres of land, for a purchase price of approximately $17.5 million, of which $14.2 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.3 million; and
· | a 208-unit multi-family residential property in Lincoln, Nebraska, on approximately 11.5 acres of land, for a purchase price of approximately $17.3 million, of which $13.8 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.5 million.
The Company had no development projects placed in service during the second quarter of fiscal year 2013. During the first quarter of fiscal year 2013, the Company placed in service its 159-unit Quarry Ridge Apartment Homes development in Rochester, Minnesota, and placed in service buildings 3 and 4 (totaling 73 units) of its four-building, 145-unit Williston Gardens multi-family residential development in Williston, North Dakota. The Company is the majority member of the joint venture entity that owns the Williston Gardens development, with a 60% interest. During the second quarter of fiscal year 2012, the Company closed on the following acquisitions: a medical office property in Edina, Minnesota; two multi-family residential properties in Sioux Falls, South Dakota; seven senior housing projects in Boise, Idaho and towns surrounding Boise; a multi-family residential property in St. Cloud, Minnesota; and two parcels of vacant land, in Minot, North Dakota and Casper, Wyoming, respectively; the Company also placed in-service during the second quarter of fiscal year 2012 an approximately 25,000 square foot medical clinic in Minot, North Dakota. During the first quarter of fiscal year 2012, the Company substantially completed construction of a six-screen movie theater at its existing Buffalo Mall property in Jamestown, North Dakota, for a total cost of $2.2 million. The Company had no acquisitions during the first quarter of fiscal year 2012. The Company expensed approximately $97,000 and $426,000 of transaction costs related to acquisitions in the six months ended October 31, 2012 and 2011, respectively. The Company's acquisitions and development projects placed in service during the six months ended October 31, 2012 and 2011 are detailed below: Six Months Ended October 31, 2012
|  |  | (in thousands) |
Acquisitions | Date Acquired |  | Land |  |  | Building |  |  | Intangible Assets |  |  | Acquisition Cost |
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |
308 unit - Villa West - Topeka, KS | 5/8/12 |  | $ | 1,590 |  |  | $ | 15,760 |  |  | $ | 300 |  |  | $ | 17,650 |
232 unit - Colony - Lincoln, NE | 6/4/12 |  |  | 1,515 |  |  |  | 15,731 |  |  |  | 254 |  |  |  | 17,500 |
208 unit - Lakeside Village - Lincoln, NE | 6/4/12 |  |  | 1,215 |  |  |  | 15,837 |  |  |  | 198 |  |  |  | 17,250 |
58 unit - The Ponds at Heritage Place - Sartell, MN | 10/10/12 |  |  | 395 |  |  |  | 4,564 |  |  |  | 61 |  |  |  | 5,020 |
|  |  |  | 4,715 |  |  |  | 51,892 |  |  |  | 813 |  |  |  | 57,420 |
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
University Commons - Williston, ND | 8/1/12 |  |  | 823 |  |  |  | 0 |  |  |  | 0 |  |  |  | 823 |
Cypress Court - St. Cloud, MN | 8/10/12 |  |  | 447 |  |  |  | 0 |  |  |  | 0 |  |  |  | 447 |
|  |  |  | 1,270 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,270 |
Total Property Acquisitions |  |  | $ | 5,985 |  |  | $ | 51,892 |  |  | $ | 813 |  |  | $ | 58,690 |
|  |  | (in thousands) |
Development Projects Placed in Service | Date Placed in Service |  | Land |  |  | Building |  |  | Intangible Assets |  |  | Acquisition Cost |
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |
159 unit - Quarry Ridge II - Rochester, MN(1) | 6/29/12 |  | $ | 0 |  |  | $ | 4,591 |  |  | $ | 0 |  |  | $ | 4,591 |
73 unit - Williston Garden Buildings 3 and 4 - Williston, ND(2) | 7/31/12 |  |  | 0 |  |  |  | 6,886 |  |  |  | 0 |  |  |  | 6,886 |
Total Development Projects Placed in Service |  |  | $ | 0 |  |  | $ | 11,477 |  |  | $ | 0 |  |  | $ | 11,477 |
(1) | Development property placed in service June 29, 2012. Additional costs paid in fiscal years 2012 and 2011, and land acquired in fiscal year 2007, totaled $13.0 million, for a total project cost at October 31, 2012 of $17.6 million.
(2) | Development property placed in service July 31, 2012. Buildings 1 and 2 were placed in service in fiscal year 2012. Additional costs paid in fiscal year 2012 totaled $12.0 million, for a total project cost at October 31, 2012 of $18.9 million.
Six Months Ended October 31, 2011
|  |  | (in thousands) |
Acquisitions | Date Acquired |  | Land |  |  | Building |  |  | Intangible Assets |  |  | Acquisition Cost |
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |
147 unit - Regency Park Estates - St. Cloud, MN | 8/1/11 |  | $ | 702 |  |  | $ | 10,198 |  |  | $ | 0 |  |  | $ | 10,900 |
50 unit - Cottage West Twin Homes - Sioux Falls, SD | 10/12/11 |  |  | 1,005 |  |  |  | 3,725 |  |  |  | 0 |  |  |  | 4,730 |
24 unit - Gables Townhomes - Sioux Falls, SD | 10/12/11 |  |  | 362 |  |  |  | 1,908 |  |  |  | 0 |  |  |  | 2,270 |
|  |  |  | 2,069 |  |  |  | 15,831 |  |  |  | 0 |  |  |  | 17,900 |
Commercial Medical |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
17,273 sq ft Spring Creek American Falls - American Falls, ID | 9/1/11 |  |  | 137 |  |  |  | 3,409 |  |  |  | 524 |  |  |  | 4,070 |
15,571 sq ft Spring Creek Soda Springs - Soda Springs, ID | 9/1/11 |  |  | 66 |  |  |  | 2,122 |  |  |  | 42 |  |  |  | 2,230 |
15,559 sq ft Spring Creek Eagle - Eagle, ID | 9/1/11 |  |  | 250 |  |  |  | 3,191 |  |  |  | 659 |  |  |  | 4,100 |
31,820 sq ft Spring Creek Meridian - Meridian, ID | 9/1/11 |  |  | 428 |  |  |  | 5,499 |  |  |  | 1,323 |  |  |  | 7,250 |
26,605 sq ft Spring Creek Overland - Boise, ID | 9/1/11 |  |  | 656 |  |  |  | 5,001 |  |  |  | 1,068 |  |  |  | 6,725 |
16,311 sq ft Spring Creek Boise - Boise, ID | 9/1/11 |  |  | 711 |  |  |  | 4,236 |  |  |  | 128 |  |  |  | 5,075 |
26,605 sq ft Spring Creek Ustick - Meridian, ID | 9/1/11 |  |  | 467 |  |  |  | 3,833 |  |  |  | 0 |  |  |  | 4,300 |
Meadow Wind Land - Casper, WY | 9/1/11 |  |  | 50 |  |  |  | 0 |  |  |  | 0 |  |  |  | 50 |
3,431 sq ft Edina 6525 Drew Ave S - Edina, MN | 10/13/11 |  |  | 416 |  |  |  | 89 |  |  |  | 0 |  |  |  | 505 |
|  |  |  | 3,181 |  |  |  | 27,380 |  |  |  | 3,744 |  |  |  | 34,305 |
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Industrial-Office Build-to-Suit - Minot, ND | 9/7/11 |  |  | 416 |  |  |  | 0 |  |  |  | 0 |  |  |  | 416 |
Total Property Acquisitions |  |  | $ | 5,666 |  |  | $ | 43,211 |  |  | $ | 3,744 |  |  | $ | 52,621 |
|  |  | (in thousands) |
Development Projects Placed in Service | Date Placed in Service |  | Land |  |  | Building |  |  | Intangible Assets |  |  | Acquisition Cost |
Commercial Medical |  |  |  |  |  |  |  |  |  |  |  |  |
24,795 sq ft Trinity at Plaza 16 - Minot, ND(1) | 9/23/11 |  |  | 0 |  |  |  | 4,879 |  |  |  | 0 |  |  |  | 4,879 |
Commercial Retail |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
19,037 sq ft Jamestown Buffalo Mall - Jamestown, ND(2) | 6/15/11 |  |  | 0 |  |  |  | 781 |  |  |  | 0 |  |  |  | 781 |
Total Development Projects Placed in Service |  |  | $ | 0 |  |  | $ | 5,660 |  |  | $ | 0 |  |  | $ | 5,660 |
(1) | Development property placed in service September 23, 2011. Additional costs paid in fiscal year 2011 totaled $3.3 million, for a total project cost at October 31, 2011 of $8.2 million.
(2) | Construction project placed in service June 15, 2011. Additional costs paid in fiscal year 2011 totaled $1.4 million, for a total project cost at October 31, 2011 of $2.2 million.
Acquisitions in the six months ended October 31, 2012 and 2011 are immaterial to our real estate portfolio both individually and in the aggregate, and consequently no proforma information is presented. The results of operations from acquired properties are included in the Condensed Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our acquisitions in the six months ended October 31, 2012 and 2011, respectively, (excluding development projects placed in service) are detailed below.
| (in thousands) |
| Six Months Ended October 31 |
| 2012 |  | 2011 |
Total revenue |  | $ | 2,929 |  |  | $ | 933 |
Net income |  | $ | (135 | ) |  | $ | 117 |
PROPERTY DISPOSITIONS During the second quarter of fiscal year 2013, the Company sold two condominium units and two-multi-family residential properties for a total sales price of $7.3 million. Mortgage debt in the amount of $4.6 million on the two multi-family residential properties was assumed by the buyer. During the first quarter of fiscal year 2013, IRET sold two condominium units and a commercial retail property. During the second quarter of fiscal year 2012, the Company sold a small retail property in Livingston, Montana, for a sale price of approximately $2.2 million, with approximately $1.2 million of the sale proceeds applied to pay off the outstanding mortgage loan balance on the property. The Company had no real estate dispositions in the first quarter of fiscal year 2012. The following table details the Company's dispositions during the six months ended October 31, 2012 and 2011: Six Months Ended October 31, 2012
|  | (in thousands) |
Dispositions |  | Sales Price |  |  | Book Value and Sales Cost |  |  | Gain/(Loss) |
Multi-Family Residential |  |  |  |  |  |  |  |  |
116 unit - Terrace on the Green - Fargo, ND |  | $ | 3,450 |  |  | $ | 1,248 |  |  | $ | 2,202 |
85 unit - Prairiewood Meadows - Fargo, ND |  |  | 3,450 |  |  |  | 2,846 |  |  |  | 604 |
|  |  | 6,900 |  |  |  | 4,094 |  |  |  | 2,806 |
Commercial Retail |  |  |  |  |  |  |  |  |  |  |  |
16,080 sq ft Kentwood Thomasville - Kentwood, MI |  |  | 625 |  |  |  | 692 |  |  |  | (67 | )
Other |  |  |  |  |  |  |  |  |  |  |  |
Georgetown Square Condominiums 5 and 6 |  |  | 330 |  |  |  | 336 |  |  |  | (6 | )
Georgetown Square Condominiums 3 and 4 |  |  | 368 |  |  |  | 421 |  |  |  | (53 | )
|  |  | 698 |  |  |  | 757 |  |  |  | (59 | )
Total Property Dispositions |  | $ | 8,223 |  |  | $ | 5,543 |  |  | $ | 2,680 |
Six Months Ended October 31, 2011
|  | (in thousands) |
Dispositions |  | Sales Price |  |  | Book Value and Sales Cost |  |  | Gain/(Loss) |
Commercial Retail |  |  |  |  |  |  |  |  |
41,200 sq ft Livingstone Pamida - Livingston, MT |  | $ | 2,175 |  |  | $ | 1,586 |  |  | $ | 589 |
Total Property Dispositions |  | $ | 2,175 |  |  | $ | 1,586 |  |  | $ | 589 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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