XML 49 R15.htm IDEA: XBRL DOCUMENT
v2.4.1.9

ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS | 9 Months Ended
--- | ---
Jan. 31, 2015
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 $41.3 million of real estate properties to its portfolio through property acquisitions during the nine months ended January 31, 2015, compared to $35.1 million in the nine months ended January 31, 2014. The Company expensed approximately $104,000 and $160,000 of transaction costs related to the acquisitions in the nine months ended January 31, 2015 and 2014, respectively. The Company's acquisitions during the nine months ended January 31, 2015 and 2014 are detailed below. Nine Months Ended January 31, 2015
|  | (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
71 France Phase II & III - Edina, MN(4) | 2014-11-04 |  | 3,309 |  | 0 |  | 0 |  | 3,309 |  | 3,309 |  | 0 |  | 0
Minot 1525 24th Ave SW - Minot, ND | 2014-12-23 |  | 1,250 |  | 1,250 |  | 0 |  | 0 |  | 1,250 |  | 0 |  | 0
|  |  | 14,517 |  | 9,795 |  | 0 |  | 4,722 |  | 14,517 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 41,297 | $ | 24,306 | $ | 100 | $ | 16,891 | $ | 16,271 | $ | 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: $4.7 million).
(3) | At acquisition the Company adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.
(4) | Land was contributed to a joint venture in which the Company has an approximately 52.6% interest. The joint venture is consolidated in IRET's financial statements.
Nine Months Ended January 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |  | 584 |  | 2,191 |  | 25
|  |  | 19,600 |  | 16,120 |  | 3,480 |  | 0 |  | 1,447 |  | 17,635 |  | 518
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
98,174 sq ft Legends at Heritage Place - Sartell, MN | 2013-10-31 |  | 11,863 |  | 11,863 |  | 0 |  | 0 |  | 970 |  | 10,511 |  | 382
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 |  | 537 |  | 537 |  | 0 |  | 0 |  | 537 |  | 0 |  | 0
Spring Creek Fruitland - Fruitland, IA | 2014-01-21 |  | 335 |  | 335 |  | 0 |  | 0 |  | 335 |  | 0 |  | 0
|  |  | 3,651 |  | 1,751 |  | 0 |  | 1,900 |  | 3,651 |  | 0 |  | 0
Total Property Acquisitions |  | $ | 35,114 | $ | 29,734 | $ | 3,480 | $ | 1,900 | $ | 6,068 | $ | 28,146 | $ | 900
(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 was contributed to a joint venture in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET's financial statements.
Acquisitions in the nine months ended January 31, 2015 and 2014 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 nine months ended January 31, 2015 and 2014, respectively, (excluding development projects placed in service) are detailed below.
| (in thousands)
| Nine Months Ended January 31
| 2015 | 2014
Total revenue | $ | 1,756 | $ | 1,149
Net loss | $ | (27) | $ | (194)
DEVELOPMENT PROJECTS PLACED IN SERVICE IRET Properties placed $113.6 million and $53.5 million of development projects in service during the nine months ended January 31, 2015 and 2014, respectively. The development projects placed in service during the nine months ended January 31, 2015 and 2014 are detailed below. Nine Months Ended January 31, 2015
|  | (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 | $ | 9,596 | $ | 10,419
130 unit - Red 20 - Minneapolis, MN(3) | 2014-11-21 |  | 1,900 |  | 26,430 |  | 28,330
233 unit - Commons at Southgate - Minot, ND(4) | 2014-12-09 |  | 3,691 |  | 30,921 |  | 34,612
64 unit - Cypress Court II - St. Cloud, MN(5) | 2015-01-01 |  | 447 |  | 6,191 |  | 6,638
165 unit - Arcata - Golden Valley, MN(6) | 2015-01-01 |  | 2,088 |  | 28,296 |  | 30,384
|  |  | 8,949 |  | 101,434 |  | 110,383
Commercial Retail |  |  |  |  |  |  |
4,998 sq ft Minot Wells Fargo Bank - Minot, ND(7) | 2014-11-10 |  | 992 |  | 2,193 |  | 3,185
Total Development Projects Placed in Service |  | $ | 9,941 | $ | 103,627 | $ | 113,568
(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 project, which was partially placed in service during the fiscal year 2014 and the nine months ended January 31, 2015.
(2) | Costs paid in prior fiscal years totaled $8.1 million. Additional costs paid in fiscal year 2015 totaled $2.3 million, for a total project cost at January 31, 2015 of $10.4 million.
(3) | Costs paid in prior fiscal years totaled $12.2 million. Additional costs paid in fiscal year 2015 totaled $16.1 million, for a total project cost at January 31, 2015 of $28.3 million. The project is owned by a joint venture entity in which the Company has an approximately 58.6% interest. The joint venture is consolidated in IRET's financial statements.
(4) | Costs paid in prior fiscal years totaled $26.5 million, respectively. Additional costs paid in fiscal year 2015 totaled $8.1 million, for a total project cost at January 31, 2015 of $34.6 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest. The joint venture is consolidated in IRET's financial statements.
(5) | Costs paid in prior fiscal years totaled $1.2 million. Additional costs paid in fiscal year 2015 totaled $5.5 million, for a total project cost at January 31, 2015 of $6.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86.1% interest. The joint venture is consolidated in IRET's financial statements.
(6) | Costs paid in prior fiscal years totaled $11.3 million, respectively. Additional costs paid in fiscal year 2015 totaled $19.1 million, for a total project cost at January 31, 2015 of $30.4 million.
(7) | Costs paid in fiscal year 2015 totaled $3.2 million, including land acquired in fiscal year 2013.
Nine Months Ended January 31, 2014
|  | (in thousands)
Development Projects Placed in Service | Date Placed in Service | Land | Building | Development Cost
Multi-Family Residential |  |  |  |  |  |  |
108 unit - Landing at Southgate - Minot, ND(1) | 2013-09-04 | $ | 2,262 | $ | 12,864 | $ | 15,126
132 unit- Cypress Court - St. Cloud, MN(3) | 2013-11-01 |  | 1,136 |  | 12,447 |  | 13,583
146 unit- River Ridge - Bismarck, ND(3) | 2013-12-02 |  | 589 |  | 24,229 |  | 24,818
Total Development Projects Placed in Service |  | $ | 3,987 | $ | 49,540 | $ | 53,527
(1) | Costs paid in prior fiscal years totaled $6.3 million. Costs paid in fiscal year 2014 totaled $8.8 million for a total project cost at January 31, 2014 of $15.1 million. The project is owned by a joint venture entity in which the Company has an approximately 52.9% interest.
(2) | Costs paid in prior fiscal years totaled $5.8 million. Costs paid in fiscal year 2014 totaled $7.8 million for a total project cost at January 31, 2014 of $13.6 million. The project is owned by a joint venture entity in which the Company has an approximately 86.1% interest.
(3) | Costs paid in prior fiscal years totaled $10.1 million. Costs paid in fiscal year 2014 totaled $14.7 million for a total project cost at January 31, 2014 of $24.8 million.
PROPERTY DISPOSITIONS During the third quarter of fiscal year 2015, the Company sold one office property and one retail property for a total sales price of $10.0 million. During the third quarter of fiscal year 2014, the Company sold two multi-family residential properties, three industrial properties and two retail properties for a total sales price of $11.7 million. The following table details the Company's dispositions during the nine months ended January 31, 2015 and 2014: Nine Months Ended January 31, 2015
|  | (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)
79,297 sq ft Northgate I – Maple Grove, MN | 2014-12-01 |  | 7,200 |  | 6,881 |  | 319
|  |  | 14,825 |  | 14,700 |  | 125
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
34,226 sq ft Fargo Express Center & SC Pad - Fargo, ND | 2014-11-18 |  | 2,843 |  | 2,211 |  | 632
|  |  | 4,073 |  | 4,616 |  | (543)
Unimproved Land |  |  |  |  |  |  |
Kalispell Unimproved - Kalispell, MT | 2014-10-15 |  | 670 |  | 670 |  | 0
Total Property Dispositions |  | $ | 27,619 | $ | 28,412 | $ | (793)
Nine Months Ended January 31, 2014
|  | (in thousands)
Dispositions | Date Disposed | Sales Price | Book Value and Sales Cost | Gain/(Loss)
Multi-Family Residential |  |  |  |  |  |  |
84 unit - East Park - Sioux Falls, SD | 2013-12-18 | $ | 2,214 | $ | 2,358 | $ | (144)
48 unit - Sycamore Village - Sioux Falls, SD | 2013-12-18 |  | 1,296 |  | 1,380 |  | (84)
|  |  | 3,510 |  | 3,738 |  | (228)
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
41,685 sq ft Winsted Industrial Building - Winsted, MN | 2014-01-17 |  | 725 |  | 747 |  | (22)
69,984 sq ft Minnetonka 13600 County Road 62 - Minnetonka, MN | 2014-01-30 |  | 3,800 |  | 3,084 |  | 716
42,510 sq ft Clive 2075 NW 94th Street - Clive, IA | 2014-01-30 |  | 2,735 |  | 2,675 |  | 60
|  |  | 61,138 |  | 52,079 |  | 9,059
Retail |  |  |  |  |  |  |
23,187 sq ft Eagan Community - Eagan, MN | 2013-05-14 |  | 2,310 |  | 2,420 |  | (110)
10,625 sq ft Anoka Strip Center- Anoka, MN | 2013-12-23 |  | 325 |  | 347 |  | (22)
8,400 sq ft Burnsville 2 Strip Center - Burnsville, MN | 2014-01-08 |  | 650 |  | 796 |  | (146)
|  |  | 3,285 |  | 3,563 |  | (278)
Total Property Dispositions |  | $ | 80,883 | $ | 73,884 | $ | 6,999

X
- 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 1 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 Reference 3: 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=39739317&loc=d3e4922-128472 Reference 4: 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=39739317&loc=d3e4934-128472 Reference 5: 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=39739317&loc=d3e4926-128472 Reference 6: 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=35744584&loc=d3e7000-128479 Reference 7: 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=25497992&loc=d3e1392-128463 Reference 8: 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=25497992&loc=d3e1486-128463 Reference 9: 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=35744584&loc=d3e6927-128479 Reference 10: 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=25497992&loc=d3e1497-128463 Reference 11: 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=25497992&loc=d3e1490-128463 Reference 12: 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=35744584&loc=d3e7008-128479 Reference 13: 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=39739317&loc=d3e4845-128472 Reference 14: 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=25497992&loc=d3e1500-128463 Reference 15: 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=25497992&loc=d3e1524-128463 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration