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ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS | 3 Months Ended
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Jul. 31, 2014
ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS [Abstract] |
ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS | NOTE 8 • ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS PROPERTY ACQUISITIONS The Company added approximately $26.6 million of real estate properties to its portfolio through property acquisitions during the three months ended July 31, 2014, compared to $6.4 million in the three months ended July 31, 2013. The Company expensed approximately $75,000 and $101,000 of transaction costs related to the acquisitions in three months ended July 31, 2014 and 2013, respectively. The Company's acquisitions during the three months ended July 31, 2014 and 2013 are detailed below. Three Months Ended July 31, 2014
|  | (in thousands)
|  | Total Acquisition Cost | Form of Consideration | Investment Allocation
Acquisitions | Date Acquired | Cash | Other(1) | Land | Building | Intangible Assets
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |
152 unit – Homestead Garden - Rapid City, SD(2) | 2014-06-02 | $ | 15,000 | $ | 5,092 | $ | 9,908 | $ | 655 | $ | 14,139 | $ | 206
52 unit – Silver Springs - Rapid City, SD | 2014-06-02 |  | 3,280 |  | 1,019 |  | 2,261 |  | 215 |  | 3,006 |  | 59
|  |  | 18,280 |  | 6,111 |  | 12,169 |  | 870 |  | 17,145 |  | 265
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |
Creekside Crossing – Bismarck, ND | 2014-05-22 |  | 4,269 |  | 4,269 |  | 0 |  | 4,269 |  | 0 |  | 0
PrairieCare Medical – Brooklyn Park, MN | 2014-06-05 |  | 2,616 |  | 2,616 |  | 0 |  | 2,616 |  | 0 |  | 0
71 France Phase I – Edina, MN(3) | 2014-06-12 |  | 1,413 |  | 0 |  | 1,413 |  | 1,413 |  | 0 |  | 0
|  |  | 8,298 |  | 6,885 |  | 1,413 |  | 8,298 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 26,578 | $ | 12,996 | $ | 13,582 | $ | 9,168 | $ | 17,145 | $ | 265
(1) | Consists of assumed debt (Homestead Garden I - $9.9 million, Silver Springs - $2.3 million) and value of land contributed by the joint venture partner (71 France - $1.4 million).
(2) | At acquisition the Company adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.
(3) | Land is owned by a joint venture in which the Company currently has an approximately 55.3% interest. The joint venture is consolidated in IRET's financial statements.
Three Months Ended July 31, 2013
|  | (in thousands)
|  | Total Acquisition Cost | Form of Consideration | Investment Allocation
Acquisitions | Date Acquired | Cash | Units(1) | Land | Building | Intangible Assets
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |
71 unit - Alps Park - Rapid City, SD | 2013-05-01 | $ | 6,200 | $ | 2,920 | $ | 3,280 | $ | 287 | $ | 5,551 | $ | 362
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |
Chateau II - Minot, ND | 2013-05-21 |  | 179 |  | 179 |  | 0 |  | 179 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 6,379 | $ | 3,099 | $ | 3,280 | $ | 466 | $ | 5,551 | $ | 362
(1) | Value of limited partnership units of the Operating Partnership at the acquisition date.
Acquisitions in the three months ended July 31, 2014 and 2013 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 three months ended July 31, 2014 and 2013, respectively, (excluding development projects placed in service) are detailed below.
| (in thousands)
| Three Months Ended July 31
| 2014 | 2013
Total revenue | $ | 362 | $ | 186
Net (loss) income | $ | 20 | $ | (108)
DEVELOPMENT PROJECTS PLACED IN SERVICE IRET Properties placed approximately $10.3 million of development projects in service during the three months ended July 31, 2014. There were no development projects placed in service in the three months ended July 31, 2013. The development projects placed in service during the three months ended July 31, 2014 are detailed below. Three Months Ended July 31, 2014
|  | (in thousands)
Development Projects Placed in Service (1) | Date Placed in Service | Land | Building | Development Cost
Multi-Family Residential |  |  |  |  |  |  |
44 unit – Dakota Commons - Williston, ND(2) | 2014-07-15 |  | 823 |  | 9,442 |  | 10,265
Total Development Projects Placed in Service |  | $ | 823 | $ | 9,442 | $ | 10,265
(1) | Development projects that are placed in service in phases are excluded from this table until the entire project has been placed in service. See Note 6 for additional information on the Renaissance Heights I project, which was partially placed in service during the fiscal year 2014 and the three months ended July 31, 2014.
(2) | Development property placed in service July 15, 2014. Costs paid in fiscal year 2014 totaled $8.1 million, including the land acquired in fiscal year 2013. Additional costs paid in fiscal year 2015 totaled $2.2 million, for a total project cost at July 31, 2014 of $10.3 million.
PROPERTY DISPOSITIONS During the first quarter of fiscal year 2015, the Company sold one commercial office property and one commercial industrial property for a total sales price of $6.7 million. The Company also demolished a building at a commercial retail property in Weston, Wisconsin. During the first quarter of fiscal year 2014, the Company sold four commercial industrial properties and one commercial retail property for a total sales price of $21.8 million. The following table details the Company's dispositions during the three months ended July 31, 2014 and 2013: Three Months Ended July 31, 2014
|  | (in thousands)
Dispositions | Date Disposed | Sales Price | Book Value and Sales Cost | Gain/(Loss)
Commercial Office |  |  |  |  |  |  |
73,338 sq ft Dewey Hill - Edina, MN | 2014-05-19 |  | 3,100 |  | 3,124 |  | (24)
Commercial Industrial |  |  |  |  |  |  |
198,600 sq ft Eagan 2785 & 2795 – Eagan, MN | 2014-07-15 |  | 3,600 |  | 5,393 |  | (1,793)
Commercial Retail |  |  |  |  |  |  |
25,644 sq ft Weston Retail – Weston, WI | 2014-07-28 |  | n/a |  | 1,176 |  | (1,176)
Total Property Dispositions |  | $ | 6,700 | $ | 9,693 | $ | (2,993)
Three Months Ended July 31, 2013
|  | (in thousands)
Dispositions | Date Disposed | Sales Price | Book Value and Sales Cost | Gain/(Loss)
Commercial Industrial |  |  |  |  |  |  |
41,880 sq ft Bodycote Industrial Building- Eden Prairie, MN | 2013-05-13 |  | 3,150 |  | 1,375 |  | 1,775
42,244 sq ft Fargo 1320 45th Street N - Fargo, ND | 2013-05-13 |  | 4,700 |  | 4,100 |  | 600
49,620 sq ft Metal Improvement Company - New Brighton, MN | 2013-05-13 |  | 2,350 |  | 1,949 |  | 401
172,057 sq ft Roseville 2929 Long Lake Road - Roseville, MN | 2013-05-13 |  | 9,275 |  | 9,998 |  | (723)
|  |  | 19,475 |  | 17,422 |  | 2,053
Commercial Retail |  |  |  |  |  |  |
23,187 sq ft Eagan Community - Eagan, MN | 2013-05-14 |  | 2,310 |  | 2,420 |  | (110)
Total Property Dispositions |  | $ | 21,785 | $ | 19,842 | $ | 1,943

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