EX-99.2 3 ex99_2.htm EXHIBIT 99.2

Exhibit 99.2
Second Quarter Fiscal 2016
Supplemental Operating and Financial Data
for the Quarter Ended October 31, 2015

CONTACT: Cindy Bradehoft Director of Investor Relations Direct Dial: 952-401-4835 E-Mail: cbradehoft@iret.com |  | 1400 31st Avenue SW, Suite 60 Minot, ND 58701 Tel: 701.837.4738 Fax: 701.838.7785 www.iret.com

Supplemental Financial and Operating Data
Table of Contents
October 31, 2015

| Page
Company Background | 2
Property Cost by Segment and by State | 4
Key Financial Data |
Condensed Consolidated Balance Sheets | 5
Condensed Consolidated Statements of Operations | 6
Funds From Operations | 7
Adjusted EBITDA | 8
Capital Analysis |
Long-Term Mortgage Debt Analysis | 9
Long-Term Mortgage Debt Detail | 10-11
Capital Analysis | 12
Portfolio Analysis |
Same-Store Properties Net Operating Income Summary | 13
Net Operating Income Detail | 14-17
Same-Store Properties and All Properties Occupancy Levels by Segment | 18
Tenant Analysis |
Multifamily Summary | 19
Commercial Leasing Summary | 20-22
10 Largest Commercial Tenants - Based on Annualized Base Rent | 23
Commercial Lease Expirations | 24
Growth and Strategy |
Acquisitions and Development Summary | 25
Acquisitions and Development Liquidity Profile | 26
Definitions | 27

1

Company Background
Second Quarter Fiscal 2016
We are a self-administered, equity real estate investment trust (REIT) investing in a portfolio of income-producing properties located primarily in the upper Midwest. Our portfolio consists of multifamily; healthcare, including senior housing, and industrial segments.
As of October 31, 2015, we hold for investment a portfolio of 177 properties consisting of 94 multifamily properties, 66 healthcare properties (including senior housing), 7 industrial properties and 10 other commercial properties. Our common shares, Series A preferred shares and Series B preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET, IRETPR and IRETPRB, respectively).
Company Snapshot
(as of October 31, 2015)

Company Headquarters | Minot, North Dakota
Fiscal Year-End | April 30
Reportable Segments | Multifamily, Healthcare, Industrial
Total Properties Held for Investment | 177
Total Units Held for Investment (multifamily properties) | 12,269
Total Square Feet Held for Investment (commercial properties) | 4.5 million
Common Shares Outstanding (thousands) | 122,798
Limited Partnership Units Outstanding (thousands) | 13,890
Common Share Distribution - Quarter/Annualized | $0.13/$0.52
Dividend Yield | 6.4%
Total Capitalization (see p.12 for detail) | $2.3 billion

Investor Information
(as of October 31, 2015)
Board of Trustees

Jeffrey L. Miller | Trustee and Chairman
John D. Stewart | Trustee, Vice Chairman, and Chair of Nominating and Governance Committee
Jeffrey K. Woodbury | Trustee, Chair of Audit Committee
Linda J. Hall | Trustee, Chair of Compensation Committee
Jeffrey P. Caira | Trustee
Terrance P. Maxwell | Trustee
Pamela J. Moret | Trustee
Stephen L. Stenehjem | Trustee
Timothy P. Mihalick | Trustee, President and Chief Executive Officer

Management

Timothy P. Mihalick | President and Chief Executive Officer; Trustee
Diane K. Bryantt | Executive Vice President and Chief Operating Officer
Ted E. Holmes | Executive Vice President and Chief Financial Officer
Michael A. Bosh | Executive Vice President, General Counsel and Assistant Secretary
Mark Reiling | Executive Vice President and Chief Investment Officer
Andrew Martin | Senior Vice President, Residential Property Management
Charles A. Greenberg | Senior Vice President, Commercial and Senior Housing Asset Management

Corporate Headquarters:
1400 31st Avenue SW, Suite 60
Post Office Box 1988
Minot, North Dakota 58702-1988
Trading Symbol for Common Shares: IRET
Stock Exchange Listing: NYSE
Investor Relations Contact:
Cindy Bradehoft
cbradehoft@iret.com
2

Common Share Data (NYSE: IRET)

|  | 2nd Quarter Fiscal Year 2016 |  |  | 1st Quarter Fiscal Year 2016 |  |  | 4th Quarter Fiscal Year 2015 |  |  | 3rd Quarter Fiscal Year 2015 |  |  | 2nd Quarter Fiscal Year 2015 |
High Closing Price |  | $ | 8.16 |  |  | $ | 7.44 |  |  | $ | 8.31 |  |  | $ | 8.60 |  |  | $ | 8.59 |
Low Closing Price |  | $ | 6.51 |  |  | $ | 6.93 |  |  | $ | 7.09 |  |  | $ | 8.05 |  |  | $ | 7.49 |
Average Closing Price |  | $ | 7.39 |  |  | $ | 7.22 |  |  | $ | 7.52 |  |  | $ | 8.35 |  |  | $ | 8.11 |
Closing Price at end of quarter |  | $ | 8.12 |  |  | $ | 7.21 |  |  | $ | 7.17 |  |  | $ | 8.25 |  |  | $ | 8.40 |
Common Share Distributions—annualized |  | $ | 0.520 |  |  | $ | 0.520 |  |  | $ | 0.520 |  |  | $ | 0.520 |  |  | $ | 0.520 |
Closing Dividend Yield - annualized |  |  | 6.4 | % |  |  | 7.2 | % |  |  | 7.3 | % |  |  | 6.3 | % |  |  | 6.2 | %
Closing common shares outstanding (thousands) |  |  | 122,798 |  |  |  | 125,520 |  |  |  | 124,456 |  |  |  | 122,134 |  |  |  | 119,809 |
Closing limited partnership units outstanding (thousands) |  |  | 13,890 |  |  |  | 13,921 |  |  |  | 14,000 |  |  |  | 14,398 |  |  |  | 14,731 |
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands) |  | $ | 1,109,907 |  |  | $ | 1,005,370 |  |  | $ | 992,729 |  |  | $ | 1,126,389 |  |  | $ | 1,130,136 |

Certain statements in these supplemental disclosures are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Such risks, uncertainties and other factors include, but are not limited to: intentions and expectations regarding future distributions on our common shares and units, fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, 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 fiscal year 2015. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Second Quarter Fiscal 2016 Acquisition and Development

GrandeVille at Cascade Lake Rochester, MN | Deer Ridge Jamestown, ND

3

Second Quarter Fiscal 2016
Percentage of Total Property Cost by State for Properties Held for Investment
4

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)

|  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property owned |  | $ | 1,763,150 |  |  | $ | 1,618,948 |  |  | $ | 1,546,367 |  |  | $ | 2,093,148 |  |  | $ | 2,013,770 |
Less accumulated depreciation |  |  | (333,570 | ) |  |  | (325,536 | ) |  |  | (313,308 | ) |  |  | (439,153 | ) |  |  | (426,545 | )
|  |  | 1,429,580 |  |  |  | 1,293,412 |  |  |  | 1,233,059 |  |  |  | 1,653,995 |  |  |  | 1,587,225 |
Development in progress |  |  | 89,843 |  |  |  | 133,794 |  |  |  | 153,994 |  |  |  | 114,005 |  |  |  | 146,390 |
Unimproved land |  |  | 22,485 |  |  |  | 24,542 |  |  |  | 25,827 |  |  |  | 27,675 |  |  |  | 24,947 |
Total real estate investments |  |  | 1,541,908 |  |  |  | 1,451,748 |  |  |  | 1,412,880 |  |  |  | 1,795,675 |  |  |  | 1,758,562 |
Assets held for sale |  |  | 115,428 |  |  |  | 453,217 |  |  |  | 463,103 |  |  |  | 44,259 |  |  |  | 41,183 |
Cash and cash equivalents |  |  | 55,133 |  |  |  | 44,770 |  |  |  | 48,970 |  |  |  | 52,148 |  |  |  | 52,999 |
Other investments |  |  | 329 |  |  |  | 329 |  |  |  | 329 |  |  |  | 329 |  |  |  | 329 |
Receivable arising from straight-lining of rents, net of allowance |  |  | 16,097 |  |  |  | 15,612 |  |  |  | 15,617 |  |  |  | 27,169 |  |  |  | 27,425 |
Accounts receivable, net of allowance |  |  | 4,023 |  |  |  | 3,650 |  |  |  | 2,865 |  |  |  | 5,574 |  |  |  | 3,719 |
Real estate deposits |  |  | 444 |  |  |  | 6,614 |  |  |  | 2,489 |  |  |  | 7,494 |  |  |  | 4,924 |
Prepaid and other assets |  |  | 3,289 |  |  |  | 2,224 |  |  |  | 3,174 |  |  |  | 5,580 |  |  |  | 2,263 |
Intangible assets, net of accumulated amortization |  |  | 25,288 |  |  |  | 25,179 |  |  |  | 26,213 |  |  |  | 28,475 |  |  |  | 29,745 |
Tax, insurance, and other escrow |  |  | 7,440 |  |  |  | 8,858 |  |  |  | 10,073 |  |  |  | 11,277 |  |  |  | 16,338 |
Property and equipment, net of accumulated depreciation |  |  | 1,408 |  |  |  | 1,464 |  |  |  | 1,542 |  |  |  | 1,619 |  |  |  | 1,598 |
Goodwill |  |  | 1,715 |  |  |  | 1,718 |  |  |  | 1,718 |  |  |  | 1,940 |  |  |  | 1,940 |
Deferred charges and leasing costs, net of accumulated amortization |  |  | 9,451 |  |  |  | 9,290 |  |  |  | 8,864 |  |  |  | 19,803 |  |  |  | 20,445 |
TOTAL ASSETS |  | $ | 1,781,953 |  |  | $ | 2,024,673 |  |  | $ | 1,997,837 |  |  | $ | 2,001,342 |  |  | $ | 1,961,470 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities held for sale |  | $ | 145,565 |  |  | $ | 308,812 |  |  | $ | 321,393 |  |  | $ | 0 |  |  | $ | 0 |
Accounts payable and accrued expenses |  |  | 55,460 |  |  |  | 60,506 |  |  |  | 56,399 |  |  |  | 69,901 |  |  |  | 67,037 |
Revolving line of credit |  |  | 17,500 |  |  |  | 83,500 |  |  |  | 60,500 |  |  |  | 50,500 |  |  |  | 40,500 |
Mortgages payable |  |  | 728,973 |  |  |  | 669,734 |  |  |  | 668,112 |  |  |  | 1,006,179 |  |  |  | 1,013,161 |
Construction debt and other |  |  | 128,477 |  |  |  | 165,873 |  |  |  | 144,111 |  |  |  | 132,210 |  |  |  | 107,731 |
TOTAL LIABILITIES |  |  | 1,075,975 |  |  |  | 1,288,425 |  |  |  | 1,250,515 |  |  |  | 1,258,790 |  |  |  | 1,228,429 |
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES |  |  | 7,105 |  |  |  | 6,361 |  |  |  | 6,368 |  |  |  | 6,340 |  |  |  | 6,373 |
EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investors Real Estate Trust shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Series A Preferred Shares of Beneficial Interest |  |  | 27,317 |  |  |  | 27,317 |  |  |  | 27,317 |  |  |  | 27,317 |  |  |  | 27,317 |
Series B Preferred Shares of Beneficial Interest |  |  | 111,357 |  |  |  | 111,357 |  |  |  | 111,357 |  |  |  | 111,357 |  |  |  | 111,357 |
Common Shares of Beneficial Interest |  |  | 936,893 |  |  |  | 957,707 |  |  |  | 951,868 |  |  |  | 935,287 |  |  |  | 918,221 |
Accumulated distributions in excess of net income |  |  | (455,508 | ) |  |  | (452,971 | ) |  |  | (438,432 | ) |  |  | (430,282 | ) |  |  | (420,036 | )
Total Investors Real Estate Trust shareholders’ equity |  |  | 620,059 |  |  |  | 643,410 |  |  |  | 652,110 |  |  |  | 643,679 |  |  |  | 636,859 |
Noncontrolling interests – Operating Partnership |  |  | 55,957 |  |  |  | 56,120 |  |  |  | 58,325 |  |  |  | 61,177 |  |  |  | 63,207 |
Noncontrolling interests – consolidated real estate entities |  |  | 22,857 |  |  |  | 30,357 |  |  |  | 30,519 |  |  |  | 31,356 |  |  |  | 26,602 |
Total equity |  |  | 698,873 |  |  |  | 729,887 |  |  |  | 740,954 |  |  |  | 736,212 |  |  |  | 726,668 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |  | $ | 1,781,953 |  |  | $ | 2,024,673 |  |  | $ | 1,997,837 |  |  | $ | 2,001,342 |  |  | $ | 1,961,470 |

5

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)

|  | Six Months Ended |  |  | Three Months Ended |
OPERATING RESULTS |  | 10/31/2015 |  |  | 10/31/2014 |  |  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
Real estate revenue |  | $ | 101,223 |  |  | $ | 98,767 |  |  | $ | 51,305 |  |  | $ | 49,918 |  |  | $ | 50,252 |  |  | $ | 51,976 |  |  | $ | 50,346 |
Real estate expenses |  |  | 38,432 |  |  |  | 36,016 |  |  |  | 20,032 |  |  |  | 18,400 |  |  |  | 18,699 |  |  |  | 19,118 |  |  |  | 17,764 |
Net operating income |  |  | 62,791 |  |  |  | 62,751 |  |  |  | 31,273 |  |  |  | 31,518 |  |  |  | 31,553 |  |  |  | 32,858 |  |  |  | 32,582 |
TRS senior housing revenue |  |  | 2,003 |  |  |  | 1,636 |  |  |  | 965 |  |  |  | 1,038 |  |  |  | 921 |  |  |  | 963 |  |  |  | 843 |
TRS senior housing expenses |  |  | (1,581 | ) |  |  | (1,418 | ) |  |  | (812 | ) |  |  | (769 | ) |  |  | (754 | ) |  |  | (825 | ) |  |  | (725 | )
Depreciation/amortization |  |  | (28,073 | ) |  |  | (25,510 | ) |  |  | (14,630 | ) |  |  | (13,443 | ) |  |  | (13,428 | ) |  |  | (12,837 | ) |  |  | (13,075 | )
Administrative expenses |  |  | (5,387 | ) |  |  | (6,554 | ) |  |  | (2,933 | ) |  |  | (2,454 | ) |  |  | (2,516 | ) |  |  | (2,754 | ) |  |  | (2,890 | )
Other expenses |  |  | (1,628 | ) |  |  | (1,190 | ) |  |  | (1,204 | ) |  |  | (424 | ) |  |  | (332 | ) |  |  | (488 | ) |  |  | (578 | )
Impairment of real estate investments |  |  | (3,158 | ) |  |  | (4,123 | ) |  |  | (1,873 | ) |  |  | (1,285 | ) |  |  | 0 |  |  |  | (540 | ) |  |  | (1,803 | )
Interest expense |  |  | (19,327 | ) |  |  | (19,701 | ) |  |  | (10,131 | ) |  |  | (9,196 | ) |  |  | (10,361 | ) |  |  | (10,009 | ) |  |  | (9,954 | )
Loss on extinguishment of debt |  |  | (106 | ) |  |  | 0 |  |  |  | (106 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and other income |  |  | 1,272 |  |  |  | 1,382 |  |  |  | 665 |  |  |  | 607 |  |  |  | 904 |  |  |  | 670 |  |  |  | 696 |
Income before (loss) income on sale of real estate and other investments and income (loss) from discontinued operations |  |  | 6,806 |  |  |  | 7,273 |  |  |  | 1,214 |  |  |  | 5,592 |  |  |  | 5,987 |  |  |  | 7,038 |  |  |  | 5,096 |
(Loss) income on sale of real estate and other investments |  |  | (175 | ) |  |  | (1,762 | ) |  |  | 0 |  |  |  | (175 | ) |  |  | 6,904 |  |  |  | 951 |  |  |  | 1,231 |
Income from continuing operations |  |  | 6,631 |  |  |  | 5,511 |  |  |  | 1,214 |  |  |  | 5,417 |  |  |  | 12,891 |  |  |  | 7,989 |  |  |  | 6,327 |
Income (loss) from discontinued operations |  |  | 14,773 |  |  |  | 160 |  |  |  | 15,463 |  |  |  | (690 | ) |  |  | 971 |  |  |  | 1,162 |  |  |  | (457 | )
Net income |  | $ | 21,404 |  |  | $ | 5,671 |  |  | $ | 16,677 |  |  | $ | 4,727 |  |  | $ | 13,862 |  |  | $ | 9,151 |  |  | $ | 5,870 |
Net (income) loss attributable to noncontrolling interest – Operating Partnership |  |  | (1,713 | ) |  |  | 39 |  |  |  | (1,527 | ) |  |  | (186 | ) |  |  | (908 | ) |  |  | (657 | ) |  |  | (363 | )
Net loss (income) attributable to noncontrolling interests – consolidated real estate entities |  |  | 1,515 |  |  |  | (747 | ) |  |  | 1,516 |  |  |  | (1 | ) |  |  | (2,201 | ) |  |  | (123 | ) |  |  | (393 | )
Net income attributable to Investors Real Estate Trust |  |  | 21,206 |  |  |  | 4,963 |  |  |  | 16,666 |  |  |  | 4,540 |  |  |  | 10,753 |  |  |  | 8,371 |  |  |  | 5,114 |
Dividends to preferred shareholders |  |  | (5,757 | ) |  |  | (5,757 | ) |  |  | (2,878 | ) |  |  | (2,879 | ) |  |  | (2,878 | ) |  |  | (2,879 | ) |  |  | (2,878 | )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 15,449 |  |  | $ | (794 | ) |  | $ | 13,788 |  |  | $ | 1,661 |  |  | $ | 7,875 |  |  | $ | 5,492 |  |  | $ | 2,236 |
Per Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) per common share from continuing operations – Investors Real Estate Trust – basic & diluted |  | $ | .02 |  |  | $ | (.01 | ) |  | $ | .00 |  |  | $ | .02 |  |  | $ | .06 |  |  | $ | .04 |  |  | $ | .02 |
Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic & diluted |  |  | .10 |  |  |  | .00 |  |  |  | .11 |  |  |  | (.01 | ) |  |  | .01 |  |  |  | .01 |  |  |  | .00 |
Net income (loss) per common share – basic & diluted |  | $ | .12 |  |  | $ | (.01 | ) |  | $ | .11 |  |  | $ | .01 |  |  | $ | .07 |  |  | $ | .05 |  |  | $ | .02 |
Percentage of Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate expenses |  |  | 38.0 | % |  |  | 36.5 | % |  |  | 39.0 | % |  |  | 36.9 | % |  |  | 37.2 | % |  |  | 36.8 | % |  |  | 35.3 | %
Depreciation/amortization |  |  | 27.7 | % |  |  | 25.8 | % |  |  | 28.5 | % |  |  | 26.9 | % |  |  | 26.7 | % |  |  | 24.7 | % |  |  | 26.0 | %
Administrative expenses |  |  | 5.3 | % |  |  | 6.6 | % |  |  | 5.7 | % |  |  | 4.9 | % |  |  | 5.0 | % |  |  | 5.3 | % |  |  | 5.7 | %
Interest |  |  | 19.1 | % |  |  | 19.9 | % |  |  | 19.7 | % |  |  | 18.4 | % |  |  | 20.6 | % |  |  | 19.3 | % |  |  | 19.8 | %
Income (loss) from discontinued operations |  |  | 14.6 | % |  |  | 0.2 | % |  |  | 30.1 | % |  |  | (1.4 | %) |  |  | 1.9 | % |  |  | 2.2 | % |  |  | (0.9 | %)
Net income |  |  | 21.1 | % |  |  | 5.7 | % |  |  | 32.5 | % |  |  | 9.5 | % |  |  | 27.6 | % |  |  | 17.6 | % |  |  | 11.7 | %
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA(1)/Interest expense |  |  | 2.19 | x |  |  | 2.39 | x |  |  | 2.08 | x |  |  | 2.28 | x |  |  | 2.41 | x |  |  | 2.53 | x |  |  | 2.48 | x
Adjusted EBITDA(1)/Interest expense plus preferred distributions |  |  | 1.85 | x |  |  | 2.02 | x |  |  | 1.74 | x |  |  | 1.95 | x |  |  | 2.05 | x |  |  | 2.14 | x |  |  | 2.10 | x

(1) | See Definitions on page 27. Adjusted EBITDA is a non-GAAP measure; see page 8 for a reconciliation of Adjusted EBITDA to net income.

6

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
FUNDS FROM OPERATIONS (unaudited)
(in thousands, except per share and unit data)

|  | Six Months Ended |  |  | Three Months Ended |
|  | 10/31/2015 |  |  | 10/31/2014 |  |  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
Funds From Operations(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Investors Real Estate Trust |  | $ | 21,206 |  |  | $ | 4,963 |  |  | $ | 16,666 |  |  | $ | 4,540 |  |  | $ | 10,753 |  |  | $ | 8,371 |  |  | $ | 5,114 |
Less dividends to preferred shareholders |  |  | (5,757 | ) |  |  | (5,757 | ) |  |  | (2,878 | ) |  |  | (2,879 | ) |  |  | (2,878 | ) |  |  | (2,879 | ) |  |  | (2,878 | )
Net income (loss) available to common shareholders |  |  | 15,449 |  |  |  | (794 | ) |  |  | 13,788 |  |  |  | 1,661 |  |  |  | 7,875 |  |  |  | 5,492 |  |  |  | 2,236 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  |  | 1,713 |  |  |  | (39 | ) |  |  | 1,527 |  |  |  | 186 |  |  |  | 908 |  |  |  | 657 |  |  |  | 363 |
Depreciation and amortization of real properyty |  |  | 33,119 |  |  |  | 34,661 |  |  |  | 14,860 |  |  |  | 18,259 |  |  |  | 18,083 |  |  |  | 17,706 |  |  |  | 17,624 |
Impairment of real estate investments |  |  | 3,598 |  |  |  | 5,565 |  |  |  | 1,873 |  |  |  | 1,725 |  |  |  | 0 |  |  |  | 540 |  |  |  | 3,245 |
(Gain) loss on depreciable property sales |  | $ | (23,733 | ) |  | $ | 1,762 |  |  |  | (23,909 | ) |  |  | 175 |  |  |  | (4,890 | ) |  |  | (951 | ) |  |  | (1,231 | )
FFO applicable to common shares and Units(2) |  |  | 30,146 |  |  |  | 41,155 |  |  | $ | 8,139 |  |  | $ | 22,006 |  |  | $ | 21,976 |  |  | $ | 23,444 |  |  | $ | 22,237 |
FFO per share and unit - basic and diluted |  | $ | 0.22 |  |  | $ | 0.31 |  |  | $ | 0.06 |  |  | $ | 0.16 |  |  | $ | 0.16 |  |  | $ | 0.17 |  |  | $ | 0.17 |
Adjusted funds from operations(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFO applicable to common shares and Units |  | $ | 30,146 |  |  | $ | 41,155 |  |  | $ | 8,139 |  |  | $ | 22,006 |  |  | $ | 21,976 |  |  | $ | 23,444 |  |  | $ | 22,237 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tenant improvements at same-store(3) properties |  |  | (348 | ) |  |  | (2,665 | ) |  |  | (157 | ) |  |  | (191 | ) |  |  | (2,939 | ) |  |  | (1,984 | ) |  |  | (542 | )
Leasing costs at same-store properties(3) |  |  | (395 | ) |  |  | (1,247 | ) |  |  | (59 | ) |  |  | (336 | ) |  |  | (684 | ) |  |  | (358 | ) |  |  | (699 | )
Recurring capital expenditures(1)(3) |  |  | (3,330 | ) |  |  | (2,929 | ) |  |  | (1,713 | ) |  |  | (1,636 | ) |  |  | (1,342 | ) |  |  | (1,865 | ) |  |  | (1,567 | )
Straight-line rents |  |  | (66 | ) |  |  | (371 | ) |  |  | (309 | ) |  |  | 242 |  |  |  | 198 |  |  |  | 184 |  |  |  | (103 | )
Non-real estate depreciation |  |  | 180 |  |  |  | 194 |  |  |  | 80 |  |  |  | 101 |  |  |  | 100 |  |  |  | 94 |  |  |  | 96 |
Acquisition costs(4) |  |  | 153 |  |  |  | 104 |  |  |  | 153 |  |  |  | 0 |  |  |  | 112 |  |  |  | 0 |  |  |  | 30 |
Default interest |  |  | 3,116 |  |  |  | 0 |  |  |  | 1,567 |  |  |  | 1,550 |  |  |  | 528 |  |  |  | 0 |  |  |  | 0 |
Loss on extinguishment of debt |  |  | 7,226 |  |  |  | 0 |  |  |  | 7,226 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Share-based compensation expense |  |  | 605 |  |  |  | 1,675 |  |  |  | 539 |  |  |  | 66 |  |  |  | 280 |  |  |  | 260 |  |  |  | 601 |
AFFO applicable to common shares and Units |  | $ | 37,287 |  |  | $ | 35,916 |  |  | $ | 15,466 |  |  | $ | 21,802 |  |  | $ | 18,229 |  |  | $ | 19,775 |  |  | $ | 20,053 |
AFFO per share and unit - basic and diluted |  | $ | 0.27 |  |  | $ | 0.27 |  |  | $ | 0.11 |  |  | $ | 0.16 |  |  | $ | 0.13 |  |  | $ | 0.15 |  |  | $ | 0.15 |
Weighted average shares and units |  |  | 138,686 |  |  |  | 132,598 |  |  |  | 138,565 |  |  |  | 138,806 |  |  |  | 137,412 |  |  |  | 135,315 |  |  |  | 133,295 |

(1) | See Definitions on page 27.

(2) | Excluding loss on extinguishment of debt and default interest, FFO would have been $16.9 million and $0.12 per share and unit for the three months ended October 31, 2015 and $40.5 million and $0.29 per share and unit for the six months ended October 31, 2015.

(3) | Quarterly information is for properties in the same-store pool at that point in time; consequently, quarterly numbers may not total to year-to-date numbers

(4) | Six months ended 10/31/14 and three months ended 7/31/15, 4/30/15, 1/31/15 and 10/31/14 revised to include acquisition costs.

7

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (ADJUSTED EBITDA) (unaudited)
(in thousands)

|  | Six Months Ended |  |  | Three Months Ended |
|  | 10/31/2015 |  |  | 10/31/2014 |  |  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
Adjusted EBITDA(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Investors Real Estate Trust |  | $ | 21,206 |  |  | $ | 4,963 |  |  | $ | 16,666 |  |  | $ | 4,540 |  |  | $ | 10,753 |  |  | $ | 8,371 |  |  | $ | 5,114 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  |  | 1,713 |  |  |  | (39 | ) |  |  | 1,527 |  |  |  | 186 |  |  |  | 908 |  |  |  | 657 |  |  |  | 363 |
Income before noncontrolling interests – Operating Partnership |  |  | 22,919 |  |  |  | 4,924 |  |  |  | 18,193 |  |  |  | 4,726 |  |  |  | 11,661 |  |  |  | 9,028 |  |  |  | 5,477 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 28,723 |  |  |  | 29,263 |  |  |  | 13,762 |  |  |  | 14,961 |  |  |  | 15,162 |  |  |  | 14,595 |  |  |  | 14,599 |
Loss on extinguishment of debt |  |  | 7,226 |  |  |  | 0 |  |  |  | 7,226 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Depreciation/amortization related to real estate investments |  |  | 31,972 |  |  |  | 33,012 |  |  |  | 14,461 |  |  |  | 17,511 |  |  |  | 17,266 |  |  |  | 16,834 |  |  |  | 16,814 |
Amortization related to non-real estate investments |  |  | 1,237 |  |  |  | 1,712 |  |  |  | 442 |  |  |  | 795 |  |  |  | 867 |  |  |  | 916 |  |  |  | 840 |
Amortization related to real estate revenues(2) |  |  | 92 |  |  |  | 131 |  |  |  | 38 |  |  |  | 54 |  |  |  | 50 |  |  |  | 50 |  |  |  | 66 |
Impairment of real estate investments |  |  | 3,598 |  |  |  | 5,565 |  |  |  | 1,873 |  |  |  | 1,725 |  |  |  | 0 |  |  |  | 540 |  |  |  | 3,245 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (1,121 | ) |  |  | (1,120 | ) |  |  | (565 | ) |  |  | (556 | ) |  |  | (557 | ) |  |  | (561 | ) |  |  | (560 | )
(Gain) loss on sale of real estate and other investments |  |  | (24,505 | ) |  |  | 1,762 |  |  |  | (24,680 | ) |  |  | 175 |  |  |  | (4,890 | ) |  |  | (951 | ) |  |  | (1,231 | )
Adjusted EBITDA |  | $ | 70,141 |  |  | $ | 75,249 |  |  |  | 30,750 |  |  |  | 39,391 |  |  |  | 39,559 |  |  |  | 40,451 |  |  |  | 39,250 |

(1) | See Definitions on page 27.

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

8

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT* ANALYSIS
(in thousands)
Debt Maturity Schedule
Annual Expirations
Total Mortgage Debt*

|  |  | Future Maturities of Mortgage Debt |
Fiscal Year |  |  | Fixed Debt |  |  | Variable Debt |  |  | Total Debt |  |  | Weighted Average(1) |  |  | % of Total Debt |
2016 (remainder) |  |  | $ | 48,580 |  |  | $ | 0 |  |  | $ | 48,580 |  |  |  | 3.32 | % |  |  | 6.7 | %
2017 |  |  |  | 17,699 |  |  |  | 7,500 |  |  |  | 25,199 |  |  |  | 4.92 | % |  |  | 3.5 | %
2018 |  |  |  | 17,954 |  |  |  | 13,000 |  |  |  | 30,954 |  |  |  | 4.32 | % |  |  | 4.2 | %
2019 |  |  |  | 35,607 |  |  |  | 15,210 |  |  |  | 50,817 |  |  |  | 5.14 | % |  |  | 7.0 | %
2020 |  |  |  | 111,090 |  |  |  | 54,116 |  |  |  | 165,206 |  |  |  | 5.44 | % |  |  | 22.7 | %
2021 |  |  |  | 119,936 |  |  |  | 0 |  |  |  | 119,936 |  |  |  | 5.08 | % |  |  | 16.4 | %
2022 |  |  |  | 110,098 |  |  |  | 0 |  |  |  | 110,098 |  |  |  | 5.59 | % |  |  | 15.1 | %
2023 |  |  |  | 41,116 |  |  |  | 0 |  |  |  | 41,116 |  |  |  | 4.25 | % |  |  | 5.6 | %
2024 |  |  |  | 65,232 |  |  |  | 0 |  |  |  | 65,232 |  |  |  | 4.28 | % |  |  | 9.0 | %
2025 |  |  |  | 19,607 |  |  |  | 0 |  |  |  | 19,607 |  |  |  | 4.04 | % |  |  | 2.7 | %
Thereafter |  |  |  | 52,228 |  |  |  | 0 |  |  |  | 52,228 |  |  |  | 4.13 | % |  |  | 7.1 | %
Total maturities |  |  | $ | 639,147 |  |  | $ | 89,826 |  |  | $ | 728,973 |  |  |  | 4.87 | % |  |  | 100.0 | %

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

|  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015(1) |  |  | 10/31/2014(1) |
Balances Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate |  | $ | 639,147 |  |  | $ | 619,166 |  |  | $ | 629,770 |  |  | $ | 927,724 |  |  | $ | 949,002 |
Variable rate |  |  | 89,826 |  |  |  | 50,568 |  |  |  | 38,342 |  |  |  | 78,455 |  |  |  | 64,159 |
Mortgage total |  | $ | 728,973 |  |  | $ | 669,734 |  |  | $ | 668,112 |  |  | $ | 1,006,179 |  |  | $ | 1,013,161 |
Weighted Average Interest Rates Secured |  |  | 4.87 | % |  |  | 4.89 | % |  |  | 4.95 | % |  |  | 5.17 | % |  |  | 5.26 | %

(1) | Periods have not been restated to exclude mortgages held for sale.

9

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT* DETAIL AS OF OCTOBER 31, 2015
(in thousands)

Property | Maturity Date |  | Fiscal 2016 |  |  | Fiscal 2017 |  |  | Fiscal 2018 |  |  | Fiscal 2019 |  |  | Thereafter |  |  | Total(1) |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Regency Park Estates - St Cloud, MN | 1/1/2016 |  |  | 6,604 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,604 |
Pebble Springs – Bismarck, ND | 7/1/2016 |  |  | 0 |  |  |  | 748 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 748 |
Southview – Minot, ND | 7/1/2016 |  |  | 0 |  |  |  | 1,023 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,023 |
Homestead Gardens I – Rapid City, SD | 7/11/2016 |  |  | 0 |  |  |  | 6,556 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,556 |
River Ridge – Bismarck, ND | 6/30/2017 |  |  | 0 |  |  |  | 0 |  |  |  | 13,000 |  |  |  | 0 |  |  |  | 0 |  |  |  | 13,000 |
Evergreen II – Isanti, MN | 11/1/2017 |  |  | 0 |  |  |  | 0 |  |  |  | 2,044 |  |  |  | 0 |  |  |  | 0 |  |  |  | 2,044 |
Ponds – Sartell, MN | 11/1/2017 |  |  | 0 |  |  |  | 0 |  |  |  | 3,801 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,801 |
Homestead Gardens II - Rapid City, SD | 6/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,118 |  |  |  | 0 |  |  |  | 3,118 |
Plaza - Minot, ND | 8/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 5,281 |  |  |  | 0 |  |  |  | 5,281 |
Greenfield - Omaha, NE | 2/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,528 |  |  |  | 0 |  |  |  | 3,528 |
Brooklyn Heights - Minot, ND | 4/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 665 |  |  |  | 0 |  |  |  | 665 |
Colton Heights - Minot, ND | 4/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 374 |  |  |  | 0 |  |  |  | 374 |
Pines - Minot, ND | 4/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 107 |  |  |  | 0 |  |  |  | 107 |
Summit Park - Minot, ND | 4/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 923 |  |  |  | 0 |  |  |  | 923 |
Terrace Heights - Minot, ND | 4/1/2019 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 154 |  |  |  | 0 |  |  |  | 154 |
Summary of Debt due after Fiscal 2019 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 427,121 |  |  |  | 427,121 |
Sub-Total Multifamily |  |  | $ | 6,604 |  |  | $ | 8,327 |  |  | $ | 18,845 |  |  | $ | 14,150 |  |  | $ | 427,121 |  |  | $ | 475,047 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Edgewood Vista – Fargo, ND | 2/25/2016 |  |  | 11,555 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 11,555 |
Edgewood Vista – Fremont, NE | 2/25/2016 |  |  | 539 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 539 |
Edgewood Vista – Hastings, NE | 2/25/2016 |  |  | 555 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 555 |
Edgewood Vista – Hermantown I, MN | 2/25/2016 |  |  | 14,877 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 14,877 |
Edgewood Vista – Kalispell, MT | 2/25/2016 |  |  | 556 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 556 |
Edgewood Vista – Missoula, MT | 2/25/2016 |  |  | 790 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 790 |
Edgewood Vista – Omaha, NE | 2/25/2016 |  |  | 352 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 352 |
Edgewood Vista – Virginia, MN | 2/25/2016 |  |  | 12,655 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,655 |
Airport Medical – Bloomington, MN | 6/1/2016 |  |  | 0 |  |  |  | 251 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 251 |
Park Dental – Brooklyn Center, MN | 6/1/2016 |  |  | 0 |  |  |  | 144 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 144 |
Sartell 2000 23rd St S – Sartell, MN | 12/1/2016 |  |  | 0 |  |  |  | 1,136 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,136 |
Billings 2300 Grant Road – Billings, MT | 12/31/2016 |  |  | 0 |  |  |  | 1,106 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,106 |
Missoula 3050 Great Northern Ave – Missoula, MT | 12/31/2016 |  |  | 0 |  |  |  | 1,136 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,136 |
High Pointe Health Campus – Lake Elmo, MN | 4/1/2017 |  |  | 0 |  |  |  | 7,500 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 7,500 |
Edgewood Vista – Billings, MT | 4/10/2017 |  |  | 0 |  |  |  | 1,754 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,754 |
Edgewood Vista – East Grand Forks, MN | 4/10/2017 |  |  | 0 |  |  |  | 2,671 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 2,671 |
Edgewood Vista – Sioux Falls, SD | 4/10/2017 |  |  | 0 |  |  |  | 1,005 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,005 |
St Michael Clinic – St. Michael, MN | 4/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 1,766 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,766 |
Garden View Medical – St. Paul, MN | 6/30/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,890 |  |  |  | 0 |  |  |  | 6,890 |
Ritchie Medical Plaza – St. Paul, MN | 6/30/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 8,320 |  |  |  | 0 |  |  |  | 8,320 |
Spring Creek - American Falls - American Falls, ID | 9/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 2,022 |  |  |  | 0 |  |  |  | 2,022 |
Spring Creek - Eagle - Eagle, ID | 9/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,860 |  |  |  | 0 |  |  |  | 1,860 |
Spring Creek - Meridian - Meridian, ID | 9/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,073 |  |  |  | 0 |  |  |  | 3,073 |
Spring Creek - Soda Springs - Soda Springs, ID | 9/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 728 |  |  |  | 0 |  |  |  | 728 |

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
LONG-TERM MORTGAGE DEBT* DETAIL AS OF APRIL 30, 2015 (continued)
(in thousands)

Property | Maturity Date |  | Fiscal 2016 |  |  | Fiscal 2017 |  |  | Fiscal 2018 |  |  | Fiscal 2019 |  |  | Thereafter |  |  | Total(1) |
Healthcare - continued |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Health East St John & Woodwinds - Maplewood & Woodbury, MN | 2/1/2019 |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 6,527 |  |  | $ | 0 |  |  | $ | 6,527 |
Summary of Debt due after Fiscal 2019 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 141,017 |  |  |  | 141,017 |
Sub-Total Healthcare |  |  | $ | 41,879 |  |  | $ | 16,703 |  |  | $ | 1,766 |  |  | $ | 29,420 |  |  | $ | 141,017 |  |  | $ | 230,785 |

Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stone Container - Fargo, ND | 12/1/2015 |  |  | 44 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 44 |
Stone Container - Fargo, ND | 12/1/2015 |  |  | 53 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 53 |
Urbandale 3900 106th Street – Urbandale, IA | 7/5/2017 |  |  | 0 |  |  |  | 0 |  |  |  | 10,343 |  |  |  | 0 |  |  |  | 0 |  |  |  | 10,343 |
Summary of Debt due after Fiscal 2019 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,555 |  |  |  | 1,555 |
Sub-Total Industrial |  |  | $ | 97 |  |  | $ | 0 |  |  | $ | 10,343 |  |  | $ | 0 |  |  | $ | 1,555 |  |  | $ | 11,995 |
All Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plaza 16 - Minot, ND | 8/1/2018 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 7,008 |  |  |  | 0 |  |  |  | 7,008 |
Summary of Debt due after Fiscal 2019 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,730 |  |  |  | 3,730 |
Sub-Total All Other |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 7,008 |  |  | $ | 3,730 |  |  | $ | 10,738 |
Total |  |  | $ | 48,580 |  |  | $ | 25,030 |  |  | $ | 30,954 |  |  | $ | 50,578 |  |  | $ | 573,423 |  |  | $ | 728,565 |

* | Mortgage debt does not include our multi-bank line of credit or construction loans. The line of credit has a maturity date of September 1, 2017. As of October 31, 2015, we had borrowings of $17.5 million outstanding under this line. Construction loans and other debt totaled $128.4 million as of October 31, 2015.

(1) | Totals are principal balances as of October 31, 2015.

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CAPITAL ANALYSIS
(in thousands, except per share and unit amounts)

|  | Three Months Ended |
|  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
Equity Capitalization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares outstanding |  |  | 122,798 |  |  |  | 125,520 |  |  |  | 124,456 |  |  |  | 122,134 |  |  |  | 119,809 |
Operating partnership (OP) units outstanding |  |  | 13,890 |  |  |  | 13,921 |  |  |  | 14,000 |  |  |  | 14,398 |  |  |  | 14,731 |
Total common shares and OP units outstanding |  |  | 136,688 |  |  |  | 139,441 |  |  |  | 138,456 |  |  |  | 136,532 |  |  |  | 134,540 |
Market price per common share (closing price at end of period) |  | $ | 8.12 |  |  | $ | 7.21 |  |  | $ | 7.17 |  |  | $ | 8.25 |  |  | $ | 8.40 |
Equity capitalization-common shares and OP units |  | $ | 1,109,907 |  |  | $ | 1,005,370 |  |  | $ | 992,730 |  |  | $ | 1,126,389 |  |  | $ | 1,130,136 |
Recorded book value of preferred shares |  | $ | 138,674 |  |  | $ | 138,674 |  |  | $ | 138,674 |  |  | $ | 138,674 |  |  | $ | 138,674 |
Total equity capitalization |  | $ | 1,248,581 |  |  | $ | 1,144,044 |  |  | $ | 1,131,404 |  |  | $ | 1,265,063 |  |  | $ | 1,268,810 |
Debt Capitalization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total debt |  | $ | 1,007,825 |  |  | $ | 1,211,621 |  |  | $ | 1,178,851 |  |  | $ | 1,188,218 |  |  | $ | 1,160,628 |
Total capitalization |  | $ | 2,256,406 |  |  | $ | 2,355,665 |  |  | $ | 2,310,255 |  |  | $ | 2,453,281 |  |  | $ | 2,429,438 |
Total debt to total capitalization |  | 0.45:1 |  |  | 0.51:1 |  |  | 0.51:1 |  |  | 0.48:1 |  |  | 0.48:1 |

|  | Six Months Ended |  |  | Three Months Ended |
|  | 10/31/2015 |  |  | 10/31/2014 |  |  | 10/31/2015 |  |  | 7/31/2015 |  |  | 4/30/2015 |  |  | 1/31/2015 |  |  | 10/31/2014 |
Earnings to fixed charges(1) |  |  | 1.15 | x |  |  | 1.09 | x |  |  | 1.12 | x |  |  | 1.18 | x |  |  | 1.57 | x |  |  | 1.41 | x |  |  | 1.30 | x
Earnings to combined fixed charges and preferred distributions(1) |  |  | (2 | ) |  |  | (3 | ) |  |  | (4 | ) |  |  | 1.01 | x |  |  | 1.34 | x |  |  | 1.19 | x |  |  | 1.10 | x
Debt service coverage ratio(1) |  |  | 1.56 | x |  |  | 1.64 | x |  |  | 1.49 | x |  |  | 1.63 | x |  |  | 1.64 | x |  |  | 1.70 | x |  |  | 1.71 | x
Distribution Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares and units outstanding at record date |  |  | 139,540 |  |  |  | 133,527 |  |  |  | 139,540 |  |  |  | 138,576 |  |  |  | 137,596 |  |  |  | 135,490 |  |  |  | 133,527 |
Total common distribution paid |  | $ | 36,151 |  |  | $ | 34,362 |  |  | $ | 18,136 |  |  | $ | 18,015 |  |  | $ | 17,879 |  |  | $ | 17,613 |  |  | $ | 17,358 |
Common distribution per share and unit |  | $ | .2600 |  |  | $ | .2600 |  |  | $ | .1300 |  |  | $ | .1300 |  |  | $ | .1300 |  |  | $ | .1300 |  |  | $ | .1300 |
Payout ratio (FFO per share and unit basis)(1) |  |  | 118.2 | % |  |  | 83.9 | % |  |  | 216.7 | % |  |  | 81.3 | % |  |  | 81.3 | % |  |  | 76.5 | % |  |  | 76.5 | %
Payout ratio (AFFO per share and unit basis)(1) |  |  | 96.3 | % |  |  | 96.3 | % |  |  | 118.2 | % |  |  | 81.3 | % |  |  | 100.0 | % |  |  | 86.7 | % |  |  | 86.7 | %

(1) | See Definitions on page 27.

(2) | Due to non-cash asset impairment and loss on sale charges of $3.3 million in the six months ended October 31, 2015, earnings were inadequate to cover combined fixed charges and preferred distributions by approximately $865,000. Excluding the asset impairment and loss on sale charges, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.07 for the six months ended October 31, 2015.

(3) | Due to non-cash asset impairment and loss on sale charges of $7.3 million in the six months ended October 31, 2014, earnings were inadequate to cover combined fixed charges and preferred distributions by $3.0 million. Excluding the asset impairment and loss on sale charges, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.12 for the six months ended October 31, 2014.

(4) | Due to non-cash asset impairment and loss on sale charges of $1.9 million in the three months ended October 31, 2015, earnings were inadequate to cover combined fixed charges and preferred distributions by $1.1 million. Excluding the asset impairment and loss on sale charges, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.04 for the three months ended October 31, 2015.

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
SAME-STORE PROPERTIES NET OPERATING INCOME SUMMARY
(in thousands)

|  | Same-Store Properties(1) |  |  | Same-Store Properties(1) |
|  | Three Months Ended October 31 |  |  | Six Months Ended October 31 |
Segment |  | 2015 |  |  | 2014 |  |  | % Change |  |  | 2015 |  |  | 2014 |  |  | % Change |
Multi-Family Residential |  | $ | 13,676 |  |  | $ | 15,324 |  |  |  | (10.8 | )% |  | $ | 28,091 |  |  | $ | 29,775 |  |  |  | (5.7 | )%
Healthcare |  |  | 11,423 |  |  |  | 11,538 |  |  |  | (1.0 | )% |  |  | 22,801 |  |  |  | 22,698 |  |  |  | 0.5 | %
Industrial |  |  | 1,293 |  |  |  | 1,253 |  |  |  | 3.2 | % |  |  | 2,552 |  |  |  | 2,406 |  |  |  | 6.1 | %
All Other |  |  | 722 |  |  |  | 626 |  |  |  | 15.3 | % |  |  | 1,574 |  |  |  | 1,327 |  |  |  | 18.6 | %
|  | $ | 27,114 |  |  | $ | 28,741 |  |  |  | (5.7 | )% |  | $ | 55,018 |  |  | $ | 56,206 |  |  |  | (2.1 | )%

(1) | See list of properties excluded from same-store properties on page ii.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

|  | Three Months Ended October 31, 2015 |
|  | Reporting Segments |  |  |  |
|  | Multifamily |  |  | Healthcare |  |  | Industrial |  |  | All Other |  |  | Corporate and Other |  |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  | $ | 25,973 |  |  | $ | 15,323 |  |  | $ | 1,580 |  |  | $ | 1,065 |  |  | $ | 0 |  |  | $ | 43,941 |
Non-same-store |  |  | 6,134 |  |  |  | 1,056 |  |  |  | 60 |  |  |  | 114 |  |  |  | 0 |  |  |  | 7,364 |
Total |  |  | 32,107 |  |  |  | 16,379 |  |  |  | 1,640 |  |  |  | 1,179 |  |  |  | 0 |  |  |  | 51,305 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 12,297 |  |  |  | 3,900 |  |  |  | 287 |  |  |  | 343 |  |  |  | 0 |  |  |  | 16,827 |
Non-same-store |  |  | 2,921 |  |  |  | 263 |  |  |  | 2 |  |  |  | 19 |  |  |  | 0 |  |  |  | 3,205 |
Total |  |  | 15,218 |  |  |  | 4,163 |  |  |  | 289 |  |  |  | 362 |  |  |  | 0 |  |  |  | 20,032 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 13,676 |  |  |  | 11,423 |  |  |  | 1,293 |  |  |  | 722 |  |  |  | 0 |  |  |  | 27,114 |
Non-same-store |  |  | 3,213 |  |  |  | 793 |  |  |  | 58 |  |  |  | 95 |  |  |  | 0 |  |  |  | 4,159 |
Net operating income |  | $ | 16,889 |  |  | $ | 12,216 |  |  | $ | 1,351 |  |  | $ | 817 |  |  | $ | 0 |  |  | $ | 31,273 |
Reconciliation of NOI to net (loss) income available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TRS senior housing revenue, net of expenses |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 153 |  |  | $ | 153 |
Depreciation/amortization |  |  | (8,568 | ) |  |  | (5,074 | ) |  |  | (447 | ) |  |  | (461 | ) |  |  | (80 | ) |  |  | (14,630 | )
Administrative expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (2,933 | ) |  |  | (2,933 | )
Other expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,204 | ) |  |  | (1,204 | )
Impairment of real estate investments |  |  | (1,873 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,873 | )
Interest expense |  |  | (6,594 | ) |  |  | (3,540 | ) |  |  | (233 | ) |  |  | (163 | ) |  |  | 399 |  |  |  | (10,131 | )
Loss on extinguishment of debt |  |  | (93 | ) |  |  | 0 |  |  |  | 0 |  |  |  | (13 | ) |  |  | 0 |  |  |  | (106 | )
Interest and other income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 665 |  |  |  | 665 |
(Loss) income from continuing operations |  |  | (239 | ) |  |  | 3,602 |  |  |  | 671 |  |  |  | 180 |  |  |  | (3,000 | ) |  |  | 1,214 |
(Loss) income from discontinued operations |  |  | 0 |  |  |  | (1,060 | ) |  |  | 0 |  |  |  | 16,523 |  |  |  | 0 |  |  |  | 15,463 |
Net (loss) income |  |  | (239 | ) |  |  | 2,542 |  |  |  | 671 |  |  |  | 16,703 |  |  |  | (3,000 | ) |  |  | 16,677 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,527 | ) |  |  | (1,527 | )
Net loss attributable to noncontrolling interests – consolidated real estate entities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,516 |  |  |  | 1,516 |
Net (loss) income attributable to Investors Real Estate Trust |  |  | (239 | ) |  |  | 2,542 |  |  |  | 671 |  |  |  | 16,703 |  |  |  | (3,011 | ) |  |  | 16,666 |
Dividends to preferred shareholders |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (2,878 | ) |  |  | (2,878 | )
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS |  | $ | (239 | ) |  | $ | 2,542 |  |  | $ | 671 |  |  | $ | 16,703 |  |  | $ | (5,889 | ) |  | $ | 13,788 |

(1) | See list of properties excluded from same-store properties on page ii.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

|  | Three Months Ended October 31, 2014 |
|  | Reporting Segments |  |  |  |
|  | Multifamily |  |  | Healthcare |  |  | Industrial |  |  | All Other |  |  | Corporate and Other |  |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  | $ | 26,161 |  |  | $ | 15,507 |  |  | $ | 1,556 |  |  | $ | 1,030 |  |  | $ | 0 |  |  | $ | 44,254 |
Non-same-store |  |  | 3,433 |  |  |  | 824 |  |  |  | 37 |  |  |  | 1,798 |  |  |  | 0 |  |  |  | 6,092 |
Total |  |  | 29,594 |  |  |  | 16,331 |  |  |  | 1,593 |  |  |  | 2,828 |  |  |  | 0 |  |  |  | 50,346 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 10,837 |  |  |  | 3,969 |  |  |  | 303 |  |  |  | 404 |  |  |  | 0 |  |  |  | 15,513 |
Non-same-store |  |  | 1,327 |  |  |  | 142 |  |  |  | (31 | ) |  |  | 813 |  |  |  | 0 |  |  |  | 2,251 |
Total |  |  | 12,164 |  |  |  | 4,111 |  |  |  | 272 |  |  |  | 1,217 |  |  |  | 0 |  |  |  | 17,764 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 15,324 |  |  |  | 11,538 |  |  |  | 1,253 |  |  |  | 626 |  |  |  | 0 |  |  |  | 28,741 |
Non-same-store |  |  | 2,106 |  |  |  | 682 |  |  |  | 68 |  |  |  | 985 |  |  |  | 0 |  |  |  | 3,841 |
Net operating income |  | $ | 17,430 |  |  | $ | 12,220 |  |  | $ | 1,321 |  |  | $ | 1,611 |  |  | $ | 0 |  |  | $ | 32,582 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TRS senior housing revenue, net of expenses |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 118 |  |  | $ | 118 |
Depreciation/amortization |  |  | (6,293 | ) |  |  | (4,968 | ) |  |  | (390 | ) |  |  | (1,314 | ) |  |  | (110 | ) |  |  | (13,075 | )
Administrative expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (2,890 | ) |  |  | (2,890 | )
Other expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (578 | ) |  |  | (578 | )
Impairment of real estate investments |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,803 | ) |  |  | 0 |  |  |  | (1,803 | )
Interest expense |  |  | (5,621 | ) |  |  | (3,691 | ) |  |  | (202 | ) |  |  | (521 | ) |  |  | 81 |  |  |  | (9,954 | )
Interest and other income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 696 |  |  |  | 696 |
Income (loss) before gain (loss) on sale of real estate and other investments and loss from discontinued operations |  |  | 5,516 |  |  |  | 3,561 |  |  |  | 729 |  |  |  | (2,027 | ) |  |  | (2,683 | ) |  |  | 5,096 |
Gain (loss) on sale of real estate and other investments |  |  | 1,418 |  |  |  | 0 |  |  |  | 0 |  |  |  | (169 | ) |  |  | (18 | ) |  |  | 1,231 |
Income (loss) from continuing operations |  |  | 6,934 |  |  |  | 3,561 |  |  |  | 729 |  |  |  | (2,196 | ) |  |  | (2,701 | ) |  |  | 6,327 |
Loss from discontinued operations |  |  | 0 |  |  |  | (10 | ) |  |  | 0 |  |  |  | (447 | ) |  |  | 0 |  |  |  | (457 | )
Net income (loss) |  |  | 6,934 |  |  |  | 3,551 |  |  |  | 729 |  |  |  | (2,643 | ) |  |  | (2,701 | ) |  |  | 5,870 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (363 | ) |  |  | (363 | )
Net income attributable to noncontrolling interests – consolidated real estate entities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (393 | ) |  |  | (393 | )
Net income (loss) attributable to Investors Real Estate Trust |  |  | 6,934 |  |  |  | 3,551 |  |  |  | 729 |  |  |  | (2,643 | ) |  |  | (3,457 | ) |  |  | 5,114 |
Dividends to preferred shareholders |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (2,878 | ) |  |  | (2,878 | )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 6,934 |  |  | $ | 3,551 |  |  | $ | 729 |  |  | $ | (2,643 | ) |  | $ | (6,335 | ) |  | $ | 2,236 |

(1) | See list of properties excluded from same-store properties on page ii.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

|  | Six Months Ended October 31, 2015 |
|  | Reporting Segments |  |  |  |
|  | Multifamily |  |  | Healthcare |  |  | Industrial |  |  | All Other |  |  | Corporate and Other |  |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  | $ | 51,889 |  |  | $ | 30,430 |  |  | $ | 3,152 |  |  | $ | 2,136 |  |  | $ | 0 |  |  | $ | 87,607 |
Non-same-store |  |  | 11,598 |  |  |  | 1,655 |  |  |  | 110 |  |  |  | 253 |  |  |  | 0 |  |  |  | 13,616 |
Total |  |  | 63,487 |  |  |  | 32,085 |  |  |  | 3,262 |  |  |  | 2,389 |  |  |  | 0 |  |  |  | 101,223 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 23,798 |  |  |  | 7,629 |  |  |  | 600 |  |  |  | 562 |  |  |  | 0 |  |  |  | 32,589 |
Non-same-store |  |  | 5,344 |  |  |  | 366 |  |  |  | 83 |  |  |  | 50 |  |  |  | 0 |  |  |  | 5,843 |
Total |  |  | 29,142 |  |  |  | 7,995 |  |  |  | 683 |  |  |  | 612 |  |  |  | 0 |  |  |  | 38,432 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 28,091 |  |  |  | 22,801 |  |  |  | 2,552 |  |  |  | 1,574 |  |  |  | 0 |  |  |  | 55,018 |
Non-same-store |  |  | 6,254 |  |  |  | 1,289 |  |  |  | 27 |  |  |  | 203 |  |  |  | 0 |  |  |  | 7,773 |
Net operating income |  | $ | 34,345 |  |  | $ | 24,090 |  |  | $ | 2,579 |  |  | $ | 1,777 |  |  | $ | 0 |  |  | $ | 62,791 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TRS senior housing revenue, net of expenses |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 422 |  |  | $ | 422 |
Depreciation/amortization |  |  | (16,161 | ) |  |  | (9,903 | ) |  |  | (907 | ) |  |  | (921 | ) |  |  | (181 | ) |  |  | (28,073 | )
Administrative expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (5,387 | ) |  |  | (5,387 | )
Other expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,628 | ) |  |  | (1,628 | )
Impairment of real estate investments |  |  | (1,873 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,285 | ) |  |  | (3,158 | )
Interest expense |  |  | (12,517 | ) |  |  | (7,049 | ) |  |  | (466 | ) |  |  | (324 | ) |  |  | 1,029 |  |  |  | (19,327 | )
Loss on extinguishment of debt |  |  | (93 | ) |  |  | 0 |  |  |  | 0 |  |  |  | (13 | ) |  |  | 0 |  |  |  | (106 | )
Interest and other income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,272 |  |  |  | 1,272 |
Income (loss) before loss on sale of real estate and other investments and (loss) income from discontinued operations |  |  | 3,701 |  |  |  | 7,138 |  |  |  | 1,206 |  |  |  | 519 |  |  |  | (5,758 | ) |  |  | 6,806 |
Loss on sale of real estate and other investments |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (175 | ) |  |  | 0 |  |  |  | (175 | )
Income (loss) from continuing operations |  |  | 3,701 |  |  |  | 7,138 |  |  |  | 1,206 |  |  |  | 344 |  |  |  | (5,758 | ) |  |  | 6,631 |
(Loss) income from discontinued operations |  |  | 0 |  |  |  | (1,072 | ) |  |  | 0 |  |  |  | 15,845 |  |  |  | 0 |  |  |  | 14,773 |
Net income (loss) |  |  | 3,701 |  |  |  | 6,066 |  |  |  | 1,206 |  |  |  | 16,189 |  |  |  | (5,758 | ) |  |  | 21,404 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,713 | ) |  |  | (1,713 | )
Net loss attributable to noncontrolling interests – consolidated real estate entities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,515 |  |  |  | 1,515 |
Net income (loss) attributable to Investors Real Estate Trust |  |  | 3,701 |  |  |  | 6,066 |  |  |  | 1,206 |  |  |  | 16,189 |  |  |  | (5,956 | ) |  |  | 21,206 |
Dividends to preferred shareholders |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (5,757 | ) |  |  | (5,757 | )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 3,701 |  |  | $ | 6,066 |  |  | $ | 1,206 |  |  | $ | 16,189 |  |  | $ | (11,713 | ) |  | $ | 15,449 |

(2) | See list of properties excluded from same-store properties on page ii.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
NET OPERATING INCOME DETAIL
(in thousands)

|  | Six Months Ended October 31, 2014 |
|  | Reporting Segments |  |  |  |
|  | Multifamily |  |  | Healthcare |  |  | Industrial |  |  | All Other |  |  | Corporate and Other |  |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  | $ | 51,811 |  |  | $ | 30,880 |  |  | $ | 3,053 |  |  | $ | 2,124 |  |  | $ | 0 |  |  | $ | 87,868 |
Non-same-store |  |  | 5,510 |  |  |  | 1,653 |  |  |  | 110 |  |  |  | 3,626 |  |  |  | 0 |  |  |  | 10,899 |
Total |  |  | 57,321 |  |  |  | 32,533 |  |  |  | 3,163 |  |  |  | 5,750 |  |  |  | 0 |  |  |  | 98,767 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 22,036 |  |  |  | 8,182 |  |  |  | 647 |  |  |  | 797 |  |  |  | 0 |  |  |  | 31,662 |
Non-same-store |  |  | 2,346 |  |  |  | 287 |  |  |  | 74 |  |  |  | 1,647 |  |  |  | 0 |  |  |  | 4,354 |
Total |  |  | 24,382 |  |  |  | 8,469 |  |  |  | 721 |  |  |  | 2,444 |  |  |  | 0 |  |  |  | 36,016 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store(1) |  |  | 29,775 |  |  |  | 22,698 |  |  |  | 2,406 |  |  |  | 1,327 |  |  |  | 0 |  |  |  | 56,206 |
Non-same-store |  |  | 3,164 |  |  |  | 1,366 |  |  |  | 36 |  |  |  | 1,979 |  |  |  | 0 |  |  |  | 6,545 |
Net operating income |  | $ | 32,939 |  |  | $ | 24,064 |  |  | $ | 2,442 |  |  | $ | 3,306 |  |  | $ | 0 |  |  | $ | 62,751 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TRS senior housing revenue, net of expenses |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 218 |  |  | $ | 218 |
Depreciation/amortization |  |  | (12,218 | ) |  |  | (9,978 | ) |  |  | (781 | ) |  |  | (2,338 | ) |  |  | (195 | ) |  |  | (25,510 | )
Administrative expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (6,554 | ) |  |  | (6,554 | )
Other expenses |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (1,190 | ) |  |  | (1,190 | )
Impairment of real estate investments |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (3,369 | ) |  |  | (754 | ) |  |  | (4,123 | )
Interest expense |  |  | (11,066 | ) |  |  | (7,359 | ) |  |  | (405 | ) |  |  | (1,055 | ) |  |  | 184 |  |  |  | (19,701 | )
Interest and other income |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,382 |  |  |  | 1,382 |
Income (loss) before gain (loss) on sale of real estate and other investments and (loss) income from discontinued operations |  |  | 9,655 |  |  |  | 6,727 |  |  |  | 1,256 |  |  |  | (3,456 | ) |  |  | (6,909 | ) |  |  | 7,273 |
Gain (loss) on sale of real estate and other investments |  |  | 1,418 |  |  |  | 0 |  |  |  | (1,793 | ) |  |  | (1,369 | ) |  |  | (18 | ) |  |  | (1,762 | )
Income (loss) from continuing operations |  |  | 11,073 |  |  |  | 6,727 |  |  |  | (537 | ) |  |  | (4,825 | ) |  |  | (6,927 | ) |  |  | 5,511 |
(Loss) income from discontinued operations |  |  | 0 |  |  |  | (29 | ) |  |  | 0 |  |  |  | 189 |  |  |  | 0 |  |  |  | 160 |
Net income (loss) |  |  | 11,073 |  |  |  | 6,698 |  |  |  | (537 | ) |  |  | (4,636 | ) |  |  | (6,927 | ) |  |  | 5,671 |
Net loss attributable to noncontrolling interests – Operating Partnership |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 39 |  |  |  | 39 |
Net income attributable to noncontrolling interests – consolidated real estate entities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (747 | ) |  |  | (747 | )
Net income (loss) attributable to Investors Real Estate Trust |  |  | 11,073 |  |  |  | 6,698 |  |  |  | (537 | ) |  |  | (4,636 | ) |  |  | (7,635 | ) |  |  | 4,963 |
Dividends to preferred shareholders |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (5,757 | ) |  |  | (5,757 | )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 11,073 |  |  | $ | 6,698 |  |  | $ | (537 | ) |  | $ | (4,636 | ) |  | $ | (13,392 | ) |  | $ | (794 | )

(1) | See list of properties excluded from same-store properties on page ii.

17

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
SAME-STORE PROPERTIES AND ALL PROPERTIES OCCUPANCY LEVELS BY SEGMENT
October 31, 2015 vs. October 31, 2014

Segments |  | Same-Store Properties |  |  | All Properties |
|  | October 31, 2015 |  |  | October 31, 2014 |  |  | October 31, 2015 |  |  | October 31, 2014 |
Multifamily |  |  | 95.4 | % |  |  | 96.0 | % |  |  | 91.9 | % |  |  | 94.6 | %
Healthcare |  |  | 96.0 | % |  |  | 96.1 | % |  |  | 94.9 | % |  |  | 96.1 | %
Industrial |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 84.3 | % |  |  | 100.0 | %

18

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
MULTIFAMILY SUMMARY(1)

|  | Three Months Ended |
|  | 10/31/15 |  |  | 07/31/15 |  |  | 04/30/15 |  |  | 01/31/15 |  |  | 10/31/14 |
Number of Units |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 9,877 |  |  |  | 10,268 |  |  |  | 9,895 |  |  |  | 9,895 |  |  |  | 9,895 |
Non-Same-Store |  |  | 2,783 |  |  |  | 1,759 |  |  |  | 1,949 |  |  |  | 1,870 |  |  |  | 1,397 |
All Properties |  |  | 12,660 |  |  |  | 12,027 |  |  |  | 11,844 |  |  |  | 11,765 |  |  |  | 11,292 |
Average Investment Per Unit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 72,308 |  |  | $ | 69,992 |  |  | $ | 66,741 |  |  | $ | 66,466 |  |  | $ | 66,233 |
Non-Same-Store |  |  | 134,136 |  |  |  | 149,281 |  |  |  | 146,337 |  |  |  | 143,999 |  |  |  | 133,763 |
All Properties |  | $ | 84,701 |  |  | $ | 81,180 |  |  | $ | 79,617 |  |  | $ | 77,723 |  |  | $ | 74,190 |
Average Scheduled Rent(2) per Unit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 885 |  |  | $ | 861 |  |  | $ | 843 |  |  | $ | 841 |  |  | $ | 835 |
Non-Same-Store |  |  | 1,218 |  |  |  | 1,445 |  |  |  | 1,452 |  |  |  | 1,390 |  |  |  | 1,320 |
All Properties |  | $ | 952 |  |  | $ | 944 |  |  | $ | 942 |  |  | $ | 920 |  |  | $ | 892 |
Total Receipts per Unit(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 877 |  |  | $ | 848 |  |  | $ | 838 |  |  | $ | 835 |  |  | $ | 844 |
Non-Same-Store |  |  | 826 |  |  |  | 1,037 |  |  |  | 1,062 |  |  |  | 1,087 |  |  |  | 1,121 |
All Properties |  | $ | 866 |  |  | $ | 875 |  |  | $ | 874 |  |  | $ | 871 |  |  | $ | 877 |
Total Recurring Capital Expenditures(2) per Unit |  | $ | 173 |  |  | $ | 159 |  |  | $ | 136 |  |  | $ | 119 |  |  | $ | 158 |
Occupancy |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 95.4 | % |  |  | 93.5 | % |  |  | 94.7 | % |  |  | 94.0 | % |  |  | 95.6 | %
Non-Same-Store |  |  | 79.5 | % |  |  | 77.7 | % |  |  | 78.6 | % |  |  | 77.1 | % |  |  | 87.6 | %
All Properties |  |  | 91.9 | % |  |  | 91.2 | % |  |  | 92.0 | % |  |  | 91.3 | % |  |  | 94.6 | %
Operating Expenses as a % of Scheduled Rent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 47.1 | % |  |  | 44.4 | % |  |  | 44.2 | % |  |  | 46.0 | % |  |  | 43.7 | %
Non-Same-Store |  |  | 39.9 | % |  |  | 31.9 | % |  |  | 30.0 | % |  |  | 27.0 | % |  |  | 28.8 | %
All Properties |  |  | 45.2 | % |  |  | 41.7 | % |  |  | 40.7 | % |  |  | 41.8 | % |  |  | 41.1 | %

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

(2) | See Definitions on page 27.

(3) | Includes vacant units.

19

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASING SUMMARY (Same-Store Properties)
Commercial Leasing Activity
During fiscal year 2016, we have executed new and renewal commercial leases for our same-store rental properties on 258,027 square feet for the three months ended October 31, 2015 and 319,399 square feet for the six months ended October 31, 2015. Due to our leasing efforts, occupancy in our same-store healthcare and industrial portfolios has remained strong at 97.1% as of October 31, 2015, compared to 97.1% as of October 31, 2014.
The total leasing activity for our same-store healthcare and industrial properties, expressed in square feet of leases signed during the period, and the resulting occupancy levels, are as follows:
Three Months Ended October 31, 2015 and 2014

|  | Square Feet of New Leases(1) |  |  | Square Feet of Leases Renewed(1) |  |  | Total Square Feet of Leases Executed(1) |  |  | Occupancy |
Segments |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Healthcare |  |  | 2,831 |  |  |  | 2,632 |  |  |  | 60,121 |  |  |  | 61,672 |  |  |  | 62,952 |  |  |  | 64,304 |  |  |  | 96.0 | % |  |  | 96.1 | %
Industrial |  |  | 0 |  |  |  | 0 |  |  |  | 195,075 |  |  |  | 0 |  |  |  | 195,075 |  |  |  | 0 |  |  |  | 100.0 | % |  |  | 100.0 | %
Total |  |  | 2,831 |  |  |  | 2,632 |  |  |  | 255,196 |  |  |  | 61,672 |  |  |  | 258,027 |  |  |  | 64,304 |  |  |  | 97.1 | % |  |  | 97.1 | %

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period.

Six Months Ended October 31, 2015 and 2014

|  | Square Feet of New Leases(1) |  |  | Square Feet of Leases Renewed(1) |  |  | Total Square Feet of Leases Executed(1) |  |  | Occupancy |
Segments |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Healthcare |  |  | 4,455 |  |  |  | 11,579 |  |  |  | 106,543 |  |  |  | 100,688 |  |  |  | 110,998 |  |  |  | 112,267 |  |  |  | 96.0 | % |  |  | 96.1 | %
Industrial |  |  | 0 |  |  |  | 0 |  |  |  | 208,401 |  |  |  | 0 |  |  |  | 208,401 |  |  |  | 0 |  |  |  | 100.0 | % |  |  | 100.0 | %
Total |  |  | 4,455 |  |  |  | 11,579 |  |  |  | 314,944 |  |  |  | 100,688 |  |  |  | 319,399 |  |  |  | 112,267 |  |  |  | 97.1 | % |  |  | 97.1 | %

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period.

New Leases
The following table sets forth the average effective rents and the estimated costs of tenant improvements and leasing commissions, on a per square foot basis, that we are obligated to fulfill under the new leases signed for our same-store healthcare and industrial properties:
Three Months Ended October 31, 2015 and 2014

|  | Square Feet of New Leases(1) |  |  | Average Term in Years |  |  | Average Effective Rent(2) |  |  | Estimated Tenant Improvement Cost per Square Foot(1) |  |  | Leasing Commissions per Square Foot(1) |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Healthcare |  |  | 2,831 |  |  |  | 2,632 |  |  |  | 2.5 |  |  |  | 3.4 |  |  |  | 19.52 |  |  |  | 19.89 |  |  |  | 24.15 |  |  |  | 9.25 |  |  |  | 2.01 |  |  |  | 0 |
Industrial |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  |  | 2,831 |  |  |  | 2,632 |  |  |  | 2.5 |  |  |  | 3.4 |  |  | $ | 19.52 |  |  | $ | 19.89 |  |  | $ | 24.15 |  |  | $ | 9.25 |  |  | $ | 2.01 |  |  | $ | 0 |

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions presented are based on square feet leased during the period.

(2) | Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

20

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASING SUMMARY (Same-Store Properties)
Six Months Ended October 31, 2015 and 2014

|  | Square Feet of New Leases(1) |  |  | Average Term in Years |  |  | Average Effective Rent(2) |  |  | Estimated Tenant Improvement Cost per Square Foot(1) |  |  | Leasing Commissions per Square Foot(1) |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Healthcare |  |  | 4,455 |  |  |  | 11,579 |  |  |  | 7.2 |  |  |  | 5.5 |  |  |  | 21.02 |  |  |  | 20.82 |  |  |  | 28.11 |  |  |  | 25.05 |  |  |  | 4.92 |  |  |  | 7.03 |
Industrial |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  |  | 4,455 |  |  |  | 11,579 |  |  |  | 7.2 |  |  |  | 5.5 |  |  | $ | 21.02 |  |  | $ | 20.82 |  |  | $ | 28.11 |  |  | $ | 25.05 |  |  | $ | 4.92 |  |  | $ | 7.03 |

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions presented are based on square feet leased during the period.

(2) | Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Lease Renewals
The following table summarizes our lease renewal activity within our same-store healthcare and industrial segments (square feet data in thousands):
Three Months Ended October 31, 2015 and 2014

|  |  | Square Feet of Leases Renewe(1) |  |  |  | Percent of Expiring Leases Renewed(2) |  |  |  | Average Term in Years |  |  |  | Weighted Average Growth (Decline) in Effective Rents(3) |  |  |  | Estimated Tenant Improvement Cost per Square Foot(1) |  |  |  | Leasing Commissions per Square Foot(1) |
|  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |
Healthcare |  |  | 60,121 |  |  |  | 61,672 |  |  |  | 86.3 | % |  |  | 38.0 | % |  |  | 3.7 |  |  |  | 5.6 |  |  |  | (2.1 | %) |  |  | (8.5 | %) |  |  | 7.05 |  |  |  | 11.77 |  |  |  | 0.95 |  |  |  | 0.46 |
Industrial |  |  | 195,075 |  |  |  | 0 |  |  |  | 100.0 | % |  |  | 0 | % |  |  | 5.0 |  |  |  | 0 |  |  |  | 19.2 | % |  |  | 0 | % |  |  | 0.56 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  |  | 255,196 |  |  |  | 61,672 |  |  |  | 94.6 | % |  |  | 38.0 | % |  |  | 3.9 |  |  |  | 5.6 |  |  |  | 8.1 | % |  |  | (8.5 | %) |  | $ | 2.09 |  |  | $ | 11.77 |  |  | $ | 0.22 |  |  | $ | 0.46 |

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions are based on square feet leased during the period.

(2) | Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases renewed. The category of renewed leases does not include leases that have become month-to-month leases, as the month-to-month leases are considered lease amendments.

(3) | Represents the percentage change in effective rent between the original leases and the renewal leases. Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Six Months Ended October 31, 2015 and 2014

|  |  | Square Feet of Leases Renewed(1) |  |  |  | Percent of Expiring Leases Renewed(2) |  |  |  | Average Term in Years |  |  |  | Weighted Average Growth (Decline) in Effective Rents(3) |  |  |  | Estimated Tenant Improvement Cost per Square Foot(1) |  |  |  | Leasing Commissions per Square Foot(1) |
|  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |
Healthcare |  |  | 106,543 |  |  |  | 100,688 |  |  |  | 86.4 | % |  |  | 61.3 | % |  |  | 5.4 |  |  |  | 5.6 |  |  |  | 6.0 | % |  |  | (3.9 | %) |  |  | 10.62 |  |  |  | 9.16 |  |  |  | 3.28 |  |  |  | 1.06 |
Industrial |  |  | 208,401 |  |  |  | 0 |  |  |  | 100.0 | % |  |  | 0 | % |  |  | 5.0 |  |  |  | 0 |  |  |  | 18.1 | % |  |  | 0 | % |  |  | 0.59 |  |  |  | 0 |  |  |  | 0.07 |  |  |  | 0 |
Total |  |  | 314,399 |  |  |  | 100,688 |  |  |  | 93.3 | % |  |  | 61.3 | % |  |  | 5.3 |  |  |  | 5.6 |  |  |  | 10.2 | % |  |  | (3.9 | %) |  | $ | 3.98 |  |  | $ | 9.16 |  |  | $ | 1.21 |  |  | $ | 1.06 |

(1) | The leasing activity presented is based on leases signed or executed for our same-store rental properties during the period and is not intended to coincide with the commencement of rental revenue in accordance with US GAAP. Prior periods reflect amounts previously reported and exclude retroactive adjustments for properties reclassified to discontinued operations or non-same-store in the current period. Tenant improvements and leasing commissions are based on square feet leased during the period.

(2) | Renewal percentage of expiring leases is based on square footage of renewed leases and not the number of leases renewed. The category of renewed leases does not include leases that have become month-to-month leases, as the month-to-month leases are considered lease amendments.

(3) | Represents the percentage change in effective rent between the original leases and the renewal leases. Effective rents represent average annual base rental payments, on a straight-line basis for the term of each lease, excluding operating expense reimbursements. The underlying leases contain various expense structures including gross, modified gross, net and triple net.

Our ability to maintain or increase occupancy rates is a principal driver of maintaining and increasing the average effective rents in our commercial segments. The increase in the average growth in effective rents for the industrial segment for the three months ended October 31, 2015 and the six months ended October 31, 2015 when compared to the same periods in the prior fiscal year is due to a 195,075 square foot lease renewal executed at our Stone Container property in Fargo, North Dakota. This lease was renewed at a 19.2% increase in effective rent primarily due to improved market conditions in the property location.
21

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASING SUMMARY (Same-Store Properties)
Lease Expirations
Our ability to maintain and improve occupancy rates, and base rents, primarily depends upon our continuing ability to re-lease expiring space. The following table reflects the in-service portfolio lease expiration schedule of our consolidated healthcare and industrial properties, including square footage and annualized base rent for expiring leases, as of October 31, 2015.

Fiscal Year of Lease Expiration |  | # of Leases |  |  | Square Footage of Expiring Leases(2) |  |  | Percentage of Total Commercial Segments Leased Square Footage |  |  | Annualized Base Rent of Expiring Leases at Expiration(3) |  |  | Percentage of Total Commercial Segments Annualized Base Rent |
2016 (remainder)(1) |  |  | 37 |  |  |  | 593,167 |  |  |  | 15.0 | % |  | $ | 6,295,188 |  |  |  | 11.3 | %
2017 |  |  | 30 |  |  |  | 201,842 |  |  |  | 5.1 | % |  |  | 3,069,721 |  |  |  | 5.5 | %
2018 |  |  | 20 |  |  |  | 177,701 |  |  |  | 4.5 | % |  |  | 4,207,706 |  |  |  | 7.6 | %
2019 |  |  | 23 |  |  |  | 363,803 |  |  |  | 9.2 | % |  |  | 5,004,303 |  |  |  | 9.0 | %
2020 |  |  | 13 |  |  |  | 166,159 |  |  |  | 4.2 | % |  |  | 1,933,197 |  |  |  | 3.5 | %
2021 |  |  | 19 |  |  |  | 104,879 |  |  |  | 2.7 | % |  |  | 2,023,510 |  |  |  | 3.6 | %
2022 |  |  | 39 |  |  |  | 1,296,621 |  |  |  | 32.7 | % |  |  | 17,010,303 |  |  |  | 30.7 | %
2023 |  |  | 12 |  |  |  | 480,309 |  |  |  | 12.1 | % |  |  | 2,312,762 |  |  |  | 4.2 | %
2024 |  |  | 25 |  |  |  | 194,209 |  |  |  | 4.9 | % |  |  | 3,982,194 |  |  |  | 7.2 | %
2025 |  |  | 5 |  |  |  | 76,691 |  |  |  | 1.9 | % |  |  | 1,636,358 |  |  |  | 3.0 | %
Thereafter |  |  | 18 |  |  |  | 304,965 |  |  |  | 7.7 | % |  |  | 7,994,627 |  |  |  | 14.4 | %
Totals |  |  | 241 |  |  |  | 3,960,346 |  |  |  | 100.0 | % |  | $ | 55,469,869 |  |  |  | 100.0 | %

(1) | Includes month-to-month leases. As of October 31, 2015, month-to-month leases accounted for 309,255 square feet of which 286,854 square feet were located in five senior housing facilities in Wyoming.

(2) | Assuming that none of the tenants exercise renewal or termination options, and including leases renewed prior to expiration. Also excludes 99,535 square feet of space occupied by us.

(3) | Annualized Base Rent is monthly scheduled rent as of October 1, 2015, multiplied by 12.

22

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
10 LARGEST COMMERCIAL TENANTS – BASED ON ANNUALIZED BASE RENT(1)
as of October 31, 2015

Tenant |  | Number of Properties |  |  | Average Remaining Lease Term in Months |  |  | % of Total Commercial Segments’ Minimum Rents |  |  | Aggregate Rentable Square Feet |  |  | % of Aggregate Occupied Square Feet |
Affiliates of Edgewood Vista |  |  | 33 |  |  |  | 59 |  |  |  | 23.5 | %(2) |  |  | 1,521,147 |  |  |  | 38.4 | %
Fairview Health Services |  |  | 9 |  |  |  | 33 |  |  |  | 6.4 | % |  |  | 261,411 |  |  |  | 6.6 | %
St. Luke’s Hospital of Duluth, Inc. |  |  | 6 |  |  |  | 45 |  |  |  | 5.6 | % |  |  | 198,775 |  |  |  | 5.0 | %
Applied Underwriters |  |  | 3 |  |  |  | 16 |  |  |  | 4.0 | % |  |  | 141,724 |  |  |  | 3.6 | %
PrairieCare Medical LLC |  |  | 2 |  |  |  | 156 |  |  |  | 3.6 | % |  |  | 100,292 |  |  |  | 2.5 | %
HealthEast Care System |  |  | 1 |  |  |  | 40 |  |  |  | 2.8 | % |  |  | 114,316 |  |  |  | 2.9 | %
Nebraska Orthopaedic Hospital(3) |  |  | 1 |  |  |  | 161 |  |  |  | 2.2 | % |  |  | 61,758 |  |  |  | 1.6 | %
Affiliates of Siemens USA (NYSE: SI) |  |  | 1 |  |  |  | 12 |  |  |  | 1.8 | % |  |  | 78,360 |  |  |  | 2.0 | %
Quality Manufacturing Corp |  |  | 1 |  |  |  | 87 |  |  |  | 1.6 | % |  |  | 427,798 |  |  |  | 10.8 | %
Ascension Healt |  |  | 1 |  |  |  | 92 |  |  |  | 1.4 | % |  |  | 61,820 |  |  |  | 1.6 | %
Total/Weighted Average |  |  |  |  |  |  | 50 |  |  |  | 52.9 | % |  |  | 2,967,401 |  |  |  | 75.0 | %

(1) | See Definitions on page 32.

(2) | If held for sale properties were excluded, Affiliates of Edgewood Vista percentage of total commercial segments’ minimum rents as of October 1, 2015 would be 29.0%.

(3) | The tenant in the Nebraska Orthopaedic Hospital property has exercised its option to purchase the property. However, we can give no assurance if or when the sale of the property will be completed.

23

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
COMMERCIAL LEASE EXPIRATIONS
as of October 31, 2015

|  | (dollars in thousands except average rental rates) |
Fiscal Year |  | Number of Leases |  |  | Rentable Square Feet(1) |  |  | % of Rentable Square Feet |  |  | Annualized Rent(2) |  |  | Average Rental Rate |  |  | % of Annualized Base Rent |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016(remainder)(3) |  |  | 36 |  |  |  | 398,092 |  |  |  | 13.6 | % |  | $ | 5,244 |  |  | $ | 13.17 |  |  |  | 10.4 | %
2017 |  |  | 29 |  |  |  | 132,242 |  |  |  | 4.5 | % |  |  | 2,696 |  |  |  | 20.39 |  |  |  | 5.4 | %
2018 |  |  | 19 |  |  |  | 167,999 |  |  |  | 5.7 | % |  |  | 4,152 |  |  |  | 24.71 |  |  |  | 8.2 | %
2019 |  |  | 17 |  |  |  | 206,208 |  |  |  | 7.0 | % |  |  | 4,212 |  |  |  | 20.43 |  |  |  | 8.4 | %
2020 |  |  | 12 |  |  |  | 64,592 |  |  |  | 2.3 | % |  |  | 1,336 |  |  |  | 20.68 |  |  |  | 2.7 | %
2021 and thereafter |  |  | 112 |  |  |  | 1,960,375 |  |  |  | 66.9 | % |  |  | 32,739 |  |  |  | 16.70 |  |  |  | 64.9 | %
|  |  | 225 |  |  |  | 2,929,508 |  |  |  | 100.0 | % |  | $ | 50,379 |  |  | $ | 17.20 |  |  |  | 100.0 | %
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016(remainder)(4) |  |  | 1 |  |  |  | 195,075 |  |  |  | 18.9 | % |  | $ | 1,051 |  |  | $ | 5.39 |  |  |  | 20.6 | %
2017 |  |  | 1 |  |  |  | 69,600 |  |  |  | 6.8 | % |  |  | 374 |  |  |  | 5.37 |  |  |  | 7.4 | %
2018 |  |  | 1 |  |  |  | 9,702 |  |  |  | 0.9 | % |  |  | 56 |  |  |  | 5.77 |  |  |  | 1.1 | %
2019 |  |  | 6 |  |  |  | 157,595 |  |  |  | 15.3 | % |  |  | 792 |  |  |  | 5.03 |  |  |  | 15.6 | %
2020 |  |  | 1 |  |  |  | 101,567 |  |  |  | 9.9 | % |  |  | 597 |  |  |  | 5.88 |  |  |  | 11.7 | %
2021 and thereafter |  |  | 6 |  |  |  | 497,299 |  |  |  | 48.2 | % |  |  | 2,221 |  |  |  | 4.47 |  |  |  | 43.6 | %
|  |  | 16 |  |  |  | 1,030,838 |  |  |  | 100.0 | % |  | $ | 5,091 |  |  | $ | 4.94 |  |  |  | 100.0 | %
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016(remainder)(5) |  |  | 37 |  |  |  | 593,167 |  |  |  | 15.0 | % |  | $ | 6,295 |  |  | $ | 10.61 |  |  |  | 11.3 | %
2017 |  |  | 30 |  |  |  | 201,842 |  |  |  | 5.0 | % |  |  | 3,070 |  |  |  | 15.21 |  |  |  | 5.5 | %
2018 |  |  | 20 |  |  |  | 177,701 |  |  |  | 4.5 | % |  |  | 4,208 |  |  |  | 23.68 |  |  |  | 7.7 | %
2019 |  |  | 23 |  |  |  | 363,803 |  |  |  | 9.2 | % |  |  | 5,004 |  |  |  | 13.75 |  |  |  | 9.0 | %
20120 |  |  | 13 |  |  |  | 166,159 |  |  |  | 4.2 | % |  |  | 1,933 |  |  |  | 11.63 |  |  |  | 3.5 | %
2021 and thereafter |  |  | 118 |  |  |  | 2,457,674 |  |  |  | 62.1 | % |  |  | 34,960 |  |  |  | 14.22 |  |  |  | 63.0 | %
|  |  | 241 |  |  |  | 3,960,346 |  |  |  | 100.0 | % |  | $ | 55,470 |  |  | $ | 14.01 |  |  |  | 100.0 | %

(1) | Excludes 99,535 square feet of space occupied by us, of which 98,174 square feet is income producing real estate operated within a Taxable REIT Subsidiary.

(2) | Annualized Base Rent is monthly scheduled rent as of October 1, 2015 (cash basis), multiplied by 12.

(3) | Includes month-to-month leases. As of October 31, 2015 month-to-month leases accounted for 309,255 square feet.

(4) | The industrial segment has no month-to-month leases in place as of October 31, 2015.

(5) | Includes month-to-month leases. As of October 31, 2015 month-to-month leases accounted for 309,255 square feet.

24

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
FISCAL 2015 ACQUISITIONS AND DEVELOPMENT SUMMARY
as of October 31, 2015
(dollars in thousands)
Acquisitions

Property | Location | Segment | Acquisition Date |  | Square Feet/Units |  |  | Occupancy At Acquisition |  |  | October 31, 2015 Occupancy |  |  | Acquisition Cost |
Lakeside Medical Plaza | Omaha, NE | Healthcare | August 20, 2015 |  |  | 27,819 |  |  |  | 100 | % |  |  | 100 | % |  | $ | 6,500 |
Gardens | Grand Forks, ND | Multifamily | September 10, 2015 |  |  | 74 |  |  |  | 36.5 | % |  |  | 58.1 | % |  |  | 9,250 |
GrandeVille at Cascade Lake | Rochester, MN | Multifamily | October 29, 2015 |  |  | 276 |  |  |  | 100 | % |  |  | 100 | % |  |  | 56,000 |
|  |  | Total Square Feet |  |  | 27,819 |  |  |  |  |  |  |  |  |  |  | $ | 71,750 |
|  |  | Total Units |  |  | 350 |  |  |  |  |  |  |  |  |  |  |  |  |

Developments Placed in Service

Property(1) | Location | Segment | Date Placed in Service |  | Rentable Square Feet/Units |  |  | Occupancy At Date Placed in Service |  |  | October 31, 2015 Occupancy |  |  | Development Cost |
Chateau II | Minot, ND | Multifamily | June 1, 2015 |  |  | 72 |  |  |  | 27.8 | % |  |  | 77.8 | % |  | $ | 14,641 |
Edina 6565 France SMC III(2) | Edina, MN | Healthcare | June 1, 2015 |  |  | 57,624 |  |  |  | 24.5 | % |  |  | 24.5 | % |  |  | 32,495 |
Renaissance Heights(3) | Williston, ND | Multifamily | July 27, 2015 |  |  | 288 |  |  |  | 42.4 | % |  |  | 40.3 | % |  |  | 62,520 |
PrairieCare Medical | Brooklyn Park, MN | Healthcare | September 8, 2015 |  |  | 70,756 |  |  |  | 100 | % |  |  | 100 | % |  |  | 24,709 |
Minot Southgate Retail | Minot, ND | Other | October 1, 2015 |  |  | 7,963 |  |  |  | 0 | % |  |  | 0 | % |  |  | 2,622 |
|  |  | Total Square Feet |  |  | 136,343 |  |  |  |  |  |  |  |  |  |  | $ | 136,987 |
|  |  | Total Units |  |  | 360 |  |  |  |  |  |  |  |  |  |  |  |  |

(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 Development In Progress Summary for additional information on the Deer Ridge, 71 France and Cardinal Point projects, which were partially placed in service during the three months ended October 31, 2015.

(2) | Anticipated total cost includes estimated tenant improvement costs that have not been incurred as of October 31, 2015.

(3) | We are currently an approximately 70.0% partner in the joint venture entity constructing this project; the anticipated total cost amount given is the total cost to the joint venture entity.

Developments in Progress

|  |  |  |  |  |  |  |  |  |  |  | (in thousands) |  |  | (in fiscal years) |
Project Name and Location | Location |  | Planned Segment |  |  | Rentable Square Feet or Number of Units |  |  | Percentage Leased or Committed |  |  | Anticipated Total Cost(3) |  |  | Costs as of October 31, 2015 |  |  | Anticipated Construction Completion |
Deer Ridge | Jamestown, ND |  | Multifamily |  |  | 163 units |  |  |  | 17.8 | % |  | $ | 24,519 |  |  | $ | 23,830 |  |  | 3Q 2016 |
Cardinal Point(4) | Grand Forks, ND |  | Multifamily |  |  | 251 units |  |  |  | 19.1 | % |  |  | 44,402 |  |  |  | 40,361 |  |  | 4Q 2016 |
71 France(5) | Edina, MN |  | Multifamily |  |  | 241 units |  |  |  | 20.8 | % |  |  | 73,290 |  |  |  | 64,006 |  |  | 1Q 2017 |
Monticello Crossings | Monticello, MN |  | Multifamily |  |  | 202 units |  |  |  | 0 | % |  |  | 31,784 |  |  |  | 5,305 |  |  | 2Q 2017 |
Other |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |  |  |  | 3,095 |  |  |  | n/a |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 173,995 |  |  | $ | 136,597 |  |  |  |  |

(4) | Includes costs related to development projects that are placed in service in phases (Deer Ridge - $14.3 million, 71 France - $21.3 million, Cardinal Point - $11.1 million).

(5) | Anticipated total cost as of October 31, 2015 includes incremental cost increase due to the replacement of the project’s original general contractor.

(6) | The project will be constructed in three phases by a joint venture entity in which we have an approximately 52.6% interest. The anticipated total cost amount given is the total cost to the joint venture entity. The anticipated total cost includes approximately 21,772 square feet of retail space.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
ACQUISITIONS AND DEVELOPMENT LIQUIDITY PROFILE
as of October 31, 2015
(in millions)

Sources of Liquidity |  | Liquidity Needs |
Liquidity Source |  | Amount |  | Liquidity Need |  | Amount |
Cash on balance sheet as of 10/31/15(1) |  | $ | 55 |  | Development |  | $ | 54 |
Line of credit availability(2) |  | $ | 82 |  |  |  |  |  |
Disposition proceeds(3) |  | $ | 3 |  |  |  |  |  |
Construction loan proceeds |  | $ | 70 |  |  |  |  |  |
Total Potential Liquidity |  | $ | 210 |  | Total Liquidity Needs |  | $ | 54 |
Excess Liquidity / (Need) |  | $ | 156 |  |  |  |  |  |
Capital Sources |
Six Months Ended 10/31/15 |  | FY2015 |
Capital Source |  | Proceeds Generated |  | Capital Source |  | Proceeds Generated |
Sale of common shares under dividend reinvestment and share purchase plan |  | $ | 1 |  | Sale of common shares under dividend reinvestment and share purchase plan |  | $ | 49 |
Proceeds from sales of real estate and discontinued operations |  | $ | 371 |  | Proceeds from sales of real estate and discontinued operations |  | $ | 74 |
Total Capital Generated |  | $ | 372 |  | Total Capital Generated |  | $ | 123 |

(1) | Includes compensating balances of $14 million.

(2) | Line of credit of $100 million less $18 million drawn as of 10/31/15.

(3) | Disposition proceeds consists of $3 million of estimated gross proceeds, less estimated outstanding debt and estimated closing costs of $0 from closed and pending sales for the period from 10/31/15 through 12/10/15. No assurances can be given that pending transactions will be completed on terms currently proposed, or at all.

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Definitions
October 31, 2015
Adjusted EBITDA is 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.
Adjusted funds from operations (AFFO) is calculated by subtracting from Funds from operations (FFO) (1) tenant improvements and leasing costs at same-store properties, and recurring capital expenditures that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization and (4) share-based compensation expense. We may also adjust FFO for certain unusual non-recurring items that do not produce cash available for distribution to shareholders or are otherwise not representative of our ongoing operating performance. Our calculation subtracts from FFO leasing commissions and tenant improvements at same-store properties only, since we consider tenant improvement and leasing cost levels at non-same-store properties unrepresentative of expected levels at same-store properties. Previously-reported AFFO amounts are not revised for changes in the composition of the same-store properties pool. AFFO is included herein because we consider it to be a measure of a REIT's ability to incur and service debt and to pay distributions to its shareholders. AFFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.
Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.
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) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO as “net income (computed in accordance with generally accepted accounting principles, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization, and adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.” In addition, in October 2011 NAREIT clarified its computation of FFO to exclude impairment charges for all periods presented. FFO is a non-GAAP measure. We consider FFO, which is a standard supplemental measure for equity real estate investment trusts, helpful to investors because it facilitates an understanding of the operating performance of properties without giving effect to impairment write-downs and to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead historically rise or fall with market conditions, we believe that FFO provides investors and management with a more accurate indication of our financial and operating results.
Net Operating Income (NOI) is total real estate revenues and gain on involuntary conversion less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance and property management expenses). 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 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.
Payout ratio (FFO per share and unit basis) - 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.
Ratio of earnings to fixed charges - The 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 - The 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.
Recurring capital expenditures are expenditures (excluding capital expenditures recoverable from tenants and capital expenditures at properties sold during the period) made on a regular or recurring basis to maintain a property’s competitive position within its market, generally with a depreciable life of 5 to 12 years, but excluding (a) capital expenditures made in the year of acquisition and in subsequent periods until the property is classified as same-store (i.e., excluding capital expenditures on non-same-store properties), (b) improvements associated with the expansion or re-development of a building, (c) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class A office) or (d) capital improvements that represent the addition of something new to a property, rather than the replacement of an existing item.
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, and properties sold or classified as held for sale), and, in the case of development or re-development properties, which have achieved a target level of occupancy of 90% for multifamily properties and 85% for office, healthcare, industrial and retail properties.
US GAAP – Accounting principles generally accepted in the United States of America.
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