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ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS (Tables) | 6 Months Ended
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Oct. 31, 2014
ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS [Abstract] |
Acquisitions | The Company added approximately $36.7 million of real estate properties to its portfolio through property acquisitions during the six months ended October 31, 2014, compared to $34.8 million in the six months ended October 31, 2013. The Company expensed approximately $104,000 and $161,000 of transaction costs related to the acquisitions in the six months ended October 31, 2014 and 2013, respectively. The Company's acquisitions during the six months ended October 31, 2014 and 2013 are detailed below. Six Months Ended October 31, 2014
|  | (in thousands)
|  | Total Acquisition Cost | Form of Consideration | Investment Allocation
Acquisitions | Date Acquired | Cash | Units(1) | Other(2) | Land | Building | Intangible Assets
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
152 unit - Homestead Garden - Rapid City, SD(3) | 2014-06-02 | $ | 15,000 | $ | 5,092 | $ | 0 | $ | 9,908 | $ | 655 | $ | 14,139 | $ | 206
52 unit - Silver Springs - Rapid City, SD | 2014-06-02 |  | 3,280 |  | 1,019 |  | 0 |  | 2,261 |  | 215 |  | 3,006 |  | 59
68 unit - Northridge - Bismarck, ND | 2014-09-12 |  | 8,500 |  | 8,400 |  | 100 |  | 0 |  | 884 |  | 7,516 |  | 100
|  |  | 26,780 |  | 14,511 |  | 100 |  | 12,169 |  | 1,754 |  | 24,661 |  | 365
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Creekside Crossing - Bismarck, ND | 2014-05-22 |  | 4,269 |  | 4,269 |  | 0 |  | 0 |  | 4,269 |  | 0 |  | 0
PrairieCare Medical - Brooklyn Park, MN | 2014-06-05 |  | 2,616 |  | 2,616 |  | 0 |  | 0 |  | 2,616 |  | 0 |  | 0
71 France Phase I - Edina, MN(4) | 2014-06-12 |  | 1,413 |  | 0 |  | 0 |  | 1,413 |  | 1,413 |  | 0 |  | 0
Monticello 7th Addition - Monticello, MN | 2014-10-09 |  | 1,660 |  | 1,660 |  | 0 |  | 0 |  | 1,660 |  | 0 |  | 0
|  |  | 9,958 |  | 8,545 |  | 0 |  | 1,413 |  | 9,958 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 36,738 | $ | 23,056 | $ | 100 | $ | 13,582 | $ | 11,712 | $ | 24,661 | $ | 365
(1) | Value of limited partnership units of the Operating Partnership at the acquisition date.
(2) | 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).
(3) | At acquisition the Company adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.
(4) | Land is owned by a joint venture in which the Company will have an approximately 52.6% interest after the development project is completed. The joint venture is consolidated in IRET's financial statements.
Six Months Ended October 31, 2013
|  | (in thousands)
|  | Total Acquisition Cost | Form of Consideration | Investment Allocation
Acquisitions | Date Acquired | Cash | Units(1) | Other(2) | Land | Building | Intangible Assets
Multi-Family Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
71 unit - Alps Park - Rapid City, SD | 2013-05-01 | $ | 6,200 | $ | 2,920 | $ | 3,280 | $ | 0 | $ | 287 | $ | 5,551 | $ | 362
96 unit - Southpoint - Grand Forks, ND | 2013-09-05 |  | 10,600 |  | 10,400 |  | 200 |  | 0 |  | 576 |  | 9,893 |  | 131
24 unit - Pinecone Villas - Sartell, MN | 2013-10-31 |  | 2,800 |  | 2,800 |  | 0 |  | 0 |  | 629 |  | 2,139 |  | 32
|  |  | 19,600 |  | 16,120 |  | 3,480 |  | 0 |  | 1,492 |  | 17,583 |  | 525
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
98,174 sq ft Legends at Heritage Place - Sartell, MN | 2013-10-31 |  | 11,370 |  | 11,370 |  | 0 |  | 0 |  | 1,112 |  | 9,890 |  | 368
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chateau II - Minot, ND | 2013-05-21 |  | 179 |  | 179 |  | 0 |  | 0 |  | 179 |  | 0 |  | 0
Jamestown Unimproved - Jamestown, ND | 2013-08-09 |  | 700 |  | 700 |  | 0 |  | 0 |  | 700 |  | 0 |  | 0
Red 20 - Minneapolis, MN(3) | 2013-08-20 |  | 1,900 |  | 0 |  | 0 |  | 1,900 |  | 1,900 |  | 0 |  | 0
Legends at Heritage Place - Sartell, MN | 2013-10-31 |  | 1,030 |  | 1,030 |  | 0 |  | 0 |  | 1,030 |  | 0 |  | 0
|  |  | 3,809 |  | 1,909 |  | 0 |  | 1,900 |  | 3,809 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 34,779 | $ | 29,399 | $ | 3,480 | $ | 1,900 | $ | 6,413 | $ | 27,473 | $ | 893
(1) | Value of limited partnership units of the Operating Partnership at the acquisition date.
(2) | Value of land contributed by the joint venture partner.
(3) | Land is owned by a joint venture in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET's financial statements.
Results of operations from acquired properties | Acquisitions in the six months ended October 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 six months ended October 31, 2014 and 2013, respectively, (excluding development projects placed in service) are detailed below.
| (in thousands)
| Six Months Ended October 31
| 2014 | 2013
Total revenue | $ | 1,003 | $ | 573
Net (loss) income | $ | 38 | $ | (233)
Development projects placed in service | IRET Properties placed $10.3 million and $15.1 million of development projects in service during the six months ended October 31, 2014 and 2013, respectively. The development projects placed in service during the six months ended October 31, 2014 and 2013 are detailed below. Six Months Ended October 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 |  | 9,452 |  | 10,275
Total Development Projects Placed in Service |  | $ | 823 | $ | 9,452 | $ | 10,275
(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 six months ended October 31, 2014 and the Commons at Southgate and Red 20 projects, which were partially placed in service during the three months ended October 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 October 31, 2014 of $10.3 million.
Six Months Ended October 31, 2013
|  | (in thousands)
Development Projects Placed in Service (1) | Date Placed in Service | Land | Building | Development Cost
Multi-Family Residential |  |  |  |  |  |  |
108 unit - Landing at Southgate - Minot, ND(2) | 2013-09-04 |  | 2,262 |  | 12,864 |  | 15,126
Total Development Projects Placed in Service |  | $ | 2,262 | $ | 12,864 | $ | 15,126
(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 River Ridge and Cypress Court projects, which were partially placed in service during the three months ended October 31, 2013.
(2) | Development property placed in service September 4, 2013. Costs paid in fiscal year 2013 totaled $6.3 million. Costs paid in fiscal year 2014 totaled $8.8 million for a total project cost at October 31, 2013 of $15.1 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest.
Schedule of Dispositions | During the second quarter of fiscal year 2015, the Company sold one multi-family residential property, one office property and one retail property, along with the adjacent unimproved land for a total sales price of $10.9 million. During the first quarter of fiscal year 2015, the Company sold one office property and one industrial property for a total sales price of $6.7 million. The Company also demolished a building at a retail property in Weston, Wisconsin. During the second quarter of fiscal year 2014, the Company sold three commercial office properties and five commercial industrial properties for a total sales price of $47.4 million. During the first quarter of fiscal year 2014, the Company sold four industrial properties and one retail property for a total sales price of $21.8 million. The following table details the Company's dispositions during the six months ended October 31, 2014 and 2013: Six Months Ended October 31, 2014
|  | (in thousands)
Dispositions | Date Disposed | Sales Price | Book Value and Sales Cost | Gain/(Loss)
Multi-Family Residential |  |  |  |  |  |  |
83 unit - Lancaster - St. Cloud, MN | 2014-09-22 |  | 4,451 |  | 3,033 |  | 1,418
Office |  |  |  |  |  |  |
73,338 sq ft Dewey Hill - Edina, MN | 2014-05-19 |  | 3,100 |  | 3,124 |  | (24)
74,568 sq ft Wirth Corporate Center - Golden Valley, MN | 2014-08-29 |  | 4,525 |  | 4,695 |  | (170)
|  |  | 7,625 |  | 7,819 |  | (194)
Industrial |  |  |  |  |  |  |
198,600 sq ft Eagan 2785 & 2795 - Eagan, MN | 2014-07-15 |  | 3,600 |  | 5,393 |  | (1,793)
Retail |  |  |  |  |  |  |
25,644 sq ft Weston Retail - Weston, WI | 2014-07-28 |  | n/a |  | 1,176 |  | (1,176)
52,000 sq ft Kalispell Retail - Kalispell, MT | 2014-10-15 |  | 1,230 |  | 1,229 |  | 1
|  |  | 1,230 |  | 2,405 |  | (1,175)
Unimproved Land |  |  |  |  |  |  |
Kalispell Unimproved - Kalispell, MT | 2014-10-15 |  | 670 |  | 670 |  | 0
Total Property Dispositions |  | $ | 17,576 | $ | 19,320 | $ | (1,744)
Six Months Ended October 31, 2013
|  | (in thousands)
Dispositions | Date Disposed | Sales Price | Book Value and Sales Cost | Gain/(Loss)
Office |  |  |  |  |  |  |
121,669 sq ft Bloomington Business Plaza - Bloomington, MN | 2013-09-12 |  | 4,500 |  | 7,339 |  | (2,839)
118,125 sq ft Nicollet VII - Burnsville, MN | 2013-09-12 |  | 7,290 |  | 6,001 |  | 1,289
42,929 sq ft Pillsbury Business Center - Bloomington, MN | 2013-09-12 |  | 1,160 |  | 1,164 |  | (4)
|  |  | 12,950 |  | 14,504 |  | (1,554)
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)
322,751 sq ft Brooklyn Park 7401 Boone Ave - Brooklyn Park, MN | 2013-09-12 |  | 12,800 |  | 12,181 |  | 619
50,400 sq ft Cedar Lake Business Center - St. Louis Park, MN | 2013-09-12 |  | 2,550 |  | 2,607 |  | (57)
35,000 sq ft API Building - Duluth, MN | 2013-09-24 |  | 2,553 |  | 1,488 |  | 1,065
59,292 sq ft Lighthouse - Duluth, MN | 2013-10-08 |  | 1,825 |  | 1,547 |  | 278
606,006 sq ft Dixon Avenue Industrial Park - Des Moines, IA | 2013-10-31 |  | 14,675 |  | 10,328 |  | 4,347
|  |  | 53,878 |  | 45,573 |  | 8,305
Retail |  |  |  |  |  |  |
23,187 sq ft Eagan Community - Eagan, MN | 2013-05-14 |  | 2,310 |  | 2,420 |  | (110)
Total Property Dispositions |  | $ | 69,138 | $ | 62,497 | $ | 6,641

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