EX-99.2 3 iret-20161212ex992350cb1.htm EX-99.2

Exhibit 99.2

Supplemental Financial and Operating Data

Table of Contents

October 31, 2016

|  | 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
Capital Analysis |  | 12
Portfolio Analysis |  |
Net Operating Income Detail |  | 13-16
Tenant Analysis |  |
Multifamily Summary |  | 17
Healthcare Leasing Summary |  | 18-20
10 Largest Commercial Tenants - Based on Annualized Base Rent |  | 21
Growth Analysis |  |
Acquisitions and Development Summary |  | 22
Definitions |  | 23

1

Company Background

Second Quarter Fiscal 2017

We are a self-administered, equity real estate investment trust (REIT) focused on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets throughout the Midwest. Our portfolio consists of multifamily and healthcare segments.

As of October 31, 2016, we held for investment a portfolio of 130 properties consisting of 86 multifamily properties, 30 healthcare properties, and 14 other commercial properties. As of October 31, 2016, our common shares, Series A preferred shares and Series B preferred shares were publicly traded on the New York Stock Exchange (NYSE symbols: IRET, IRETPR and IRETPRB, respectively). On December 2, 2016, we fully redeemed our Series A preferred shares, and such shares are no longer deemed outstanding.

Company Snapshot

(as of October 31, 2016)

Company Headquarters | Minot, North Dakota
Fiscal Year-End | April 30
Reportable Segments | Multifamily and Healthcare
Total Properties Held for Investment | 130
Total Units Held for Investment |
(multifamily properties) | 12,751
Total Square Feet Held for Investment |
(healthcare and other commercial properties) | 2.7 million
Common Shares Outstanding (thousands) | 121,701
Limited Partnership Units Outstanding (thousands) | 16,229
Common Share Distribution - Quarter/Annualized | $0.13/$0.52
Dividend Yield | 8.6%
Total Capitalization (see p.12 for detail) | $2.0 billion

Investor Information

Board of Trustees

Jeffrey L. Miller | Trustee and Chair
John D. Stewart | Trustee, Vice Chair, and Interim Chair of the Audit Committee
Linda J. Hall | Trustee, Chair of Compensation Committee
Jeffrey P. Caira | Trustee, Interim Chair of the Nominating and Governance Committee
Michael T. Dance | Trustee
Terrance P. Maxwell | Trustee
John A. Schissel | Trustee
Timothy P. Mihalick | Trustee, Chief Executive Officer
Jeffrey K. Woodbury | Trustee

Management

Timothy P. Mihalick | Chief Executive Officer; Trustee
Mark O. Decker, Jr. | President and Chief Investment Officer
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
Andrew Martin | Executive Vice President – Asset Management
Nancy B. Andersen | Senior Vice President and Principal Accounting Officer
Joy S. Newborg | Senior Vice President, Chief Compliance Officer, Corporate Secretary and Associate General Counsel
Matthew M. Volpano | Senior Vice President – Investments

Corporate Headquarters: | Investor Relations Contact:
1400 31 st Avenue SW, Suite 60 | Stephen Swett
Post Office Box 1988 | 701-837-7104
Minot, North Dakota 58702-1988 | IR@iret.com
Trading Symbol for Common Shares: IRET |
Stock Exchange Listing: NYSE |

2

Common Share Data (NYSE: IRET)

|  | 2nd Quarter |  | 1st Quarter |  | 4th Quarter |  | 3rd Quarter |  | 2nd Quarter |
|  | Fiscal Year 2017 |  | Fiscal Year 2017 |  | Fiscal Year 2016 |  | Fiscal Year 2016 |  | Fiscal Year 2016 |
High Closing Price |  | $ | 6.67 |  | $ | 6.63 |  | $ | 7.48 |  | $ | 8.39 |  | $ | 8.16 |
Low Closing Price |  | $ | 5.67 |  | $ | 6.01 |  | $ | 5.97 |  | $ | 6.24 |  | $ | 6.51 |
Average Closing Price |  | $ | 6.21 |  | $ | 6.35 |  | $ | 6.71 |  | $ | 7.35 |  | $ | 7.39 |
Closing Price at end of quarter |  | $ | 6.07 |  | $ | 6.62 |  | $ | 6.02 |  | $ | 6.52 |  | $ | 8.12 |
Common Share Distributions—annualized |  | $ | 0.52 |  | $ | 0.52 |  | $ | 0.52 |  | $ | 0.52 |  | $ | 0.52 |
Closing Dividend Yield - annualized |  |  | 8.6 | % |  | 7.9 | % |  | 8.6 | % |  | 8.0 | % |  | 6.4 | %
Closing common shares outstanding (thousands) |  |  | 121,701 |  |  | 121,528 |  |  | 121,091 |  |  | 121,034 |  |  | 122,798 |
Closing limited partnership units outstanding (thousands) |  |  | 16,229 |  |  | 16,285 |  |  | 16,285 |  |  | 13,864 |  |  | 13,890 |
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands) |  | $ | 837,235 |  | $ | 912,322 |  | $ | 827,004 |  | $ | 879,535 |  | $ | 1,109,907 |

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 that might cause such differences include, but are not limited to: intentions and expectations regarding future distributions on common shares and units; changes in operating costs; fluctuations in interest rates; adverse capital and credit market conditions that might affect IRET’s access to various sources of capital and cost of capital; IRET’s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other payment dates; IRET’s ability to maintain financial covenant compliance under its debt agreements; adequate insurance coverage; the effect of government regulation; delays or inability to obtain necessary governmental permits and authorizations; changes in general and local economic and real estate market conditions; changes in demand for IRET properties that may result in lower than expected occupancy and/or rental rates; ability to acquire quality properties in IRET’s targeted markets; ability to successfully dispose of certain assets; competition for tenants from similar competing properties; IRET’s ability to attract and retain skilled personnel; cyber-intrusion; abandonment of development or redevelopment opportunities for which IRET has already incurred costs; delays in completing development, redevelopment and/or lease up of properties and increased costs; IRET’s ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; and those risks and uncertainties detailed from time to time in IRET’s filings with the Securities and Exchange Commission, including IRET’s Form 10-K for the fiscal year ended April 30, 2016 and subsequent quarterly reports on Form 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

3

Second Quarter Fiscal 2017

Property Cost by Segment for Properties Held for Invest ment

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)

|  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property owned |  | $ | 1,665,354 |  | $ | 1,667,442 |  | $ | 1,681,471 |  | $ | 1,589,921 |  | $ | 1,552,448 |
Less accumulated depreciation |  |  | (321,790) |  |  | (319,087) |  |  | (312,889) |  |  | (308,876) |  |  | (296,927) |
|  |  | 1,343,564 |  |  | 1,348,355 |  |  | 1,368,582 |  |  | 1,281,045 |  |  | 1,255,521 |
Development in progress |  |  | 20,921 |  |  | 27,454 |  |  | 51,681 |  |  | 78,341 |  |  | 89,843 |
Unimproved land |  |  | 19,069 |  |  | 18,933 |  |  | 20,939 |  |  | 22,304 |  |  | 22,485 |
Total real estate investments |  |  | 1,383,554 |  |  | 1,394,742 |  |  | 1,441,202 |  |  | 1,381,690 |  |  | 1,367,849 |
Assets held for sale and assets of discontinued operations |  |  | 191,233 |  |  | 215,817 |  |  | 220,537 |  |  | 231,212 |  |  | 324,278 |
Cash and cash equivalents |  |  | 68,729 |  |  | 54,438 |  |  | 66,698 |  |  | 47,117 |  |  | 55,133 |
Other investments |  |  | — |  |  | — |  |  | 50 |  |  | 50 |  |  | 329 |
Receivable arising from straight-lining of rents, net of allowance |  |  | 7,660 |  |  | 7,683 |  |  | 7,179 |  |  | 7,168 |  |  | 6,681 |
Accounts receivable, net of allowance |  |  | 9,815 |  |  | 3,018 |  |  | 1,524 |  |  | 2,180 |  |  | 3,015 |
Real estate deposits |  |  | 1,370 |  |  | — |  |  | — |  |  | 1,250 |  |  | 444 |
Prepaid and other assets |  |  | 3,496 |  |  | 2,265 |  |  | 2,937 |  |  | 3,868 |  |  | 3,243 |
Intangible assets, net of accumulated amortization |  |  | 842 |  |  | 1,172 |  |  | 1,858 |  |  | 1,590 |  |  | 2,132 |
Tax, insurance, and other escrow |  |  | 4,786 |  |  | 4,752 |  |  | 5,450 |  |  | 7,221 |  |  | 6,752 |
Property and equipment, net of accumulated depreciation |  |  | 928 |  |  | 977 |  |  | 1,011 |  |  | 948 |  |  | 897 |
Goodwill |  |  | 1,645 |  |  | 1,680 |  |  | 1,680 |  |  | 1,697 |  |  | 1,697 |
Deferred charges and leasing costs, net of accumulated amortization |  |  | 5,261 |  |  | 4,999 |  |  | 4,896 |  |  | 4,815 |  |  | 4,615 |
TOTAL ASSETS |  | $ | 1,679,319 |  | $ | 1,691,543 |  | $ | 1,755,022 |  | $ | 1,690,806 |  | $ | 1,777,065 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities held for sale and liabilities of discontinued operations |  | $ | 69,326 |  | $ | 76,195 |  | $ | 77,488 |  | $ | 89,110 |  | $ | 223,597 |
Accounts payable and accrued expenses |  |  | 40,382 |  |  | 41,797 |  |  | 39,727 |  |  | 47,636 |  |  | 54,631 |
Revolving line of credit |  |  | 47,500 |  |  | 17,500 |  |  | 17,500 |  |  | 17,500 |  |  | 17,500 |
Mortgages payable, net of loan costs |  |  | 779,568 |  |  | 812,082 |  |  | 812,393 |  |  | 688,023 |  |  | 654,781 |
Construction debt and other |  |  | 82,742 |  |  | 78,481 |  |  | 82,130 |  |  | 132,364 |  |  | 120,578 |
TOTAL LIABILITIES |  |  | 1,019,518 |  |  | 1,026,055 |  |  | 1,029,238 |  |  | 974,633 |  |  | 1,071,087 |
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES |  |  | 8,585 |  |  | 7,468 |  |  | 7,522 |  |  | 7,244 |  |  | 7,105 |
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 |  |  | 920,759 |  |  | 922,698 |  |  | 922,084 |  |  | 924,658 |  |  | 936,893 |
Accumulated distributions in excess of net income |  |  | (489,356) |  |  | (482,264) |  |  | (442,000) |  |  | (434,388) |  |  | (455,508) |
Total Investors Real Estate Trust shareholders’ equity |  |  | 570,077 |  |  | 579,108 |  |  | 618,758 |  |  | 628,944 |  |  | 620,059 |
Noncontrolling interests – Operating Partnership |  |  | 71,994 |  |  | 73,071 |  |  | 78,484 |  |  | 58,254 |  |  | 55,957 |
Noncontrolling interests – consolidated real estate entities |  |  | 9,145 |  |  | 5,841 |  |  | 21,020 |  |  | 21,731 |  |  | 22,857 |
Total equity |  |  | 651,216 |  |  | 658,020 |  |  | 718,262 |  |  | 708,929 |  |  | 698,873 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |  | $ | 1,679,319 |  | $ | 1,691,543 |  | $ | 1,755,022 |  | $ | 1,690,806 |  | $ | 1,777,065 |

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 |  | 10/31/2016 |  | 10/31/2015 |  |  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Real estate revenue |  | $ | 100,220 |  | $ | 91,391 |  |  | $ | 50,609 |  | $ | 49,611 |  | $ | 48,523 |  | $ | 48,406 |  | $ | 46,346 |
Real estate expenses |  |  | 43,207 |  |  | 38,255 |  |  |  | 21,573 |  |  | 21,634 |  |  | 20,524 |  |  | 20,321 |  |  | 19,951 |
Net operating income |  |  | 57,013 |  |  | 53,136 |  |  |  | 29,036 |  |  | 27,977 |  |  | 27,999 |  |  | 28,085 |  |  | 26,395 |
Depreciation/amortization |  |  | (27,798) |  |  | (23,622) |  |  |  | (13,531) |  |  | (14,267) |  |  | (13,517) |  |  | (12,693) |  |  | (12,405) |
Impairment of real estate investments |  |  | (54,153) |  |  | (3,158) |  |  |  | — |  |  | (54,153) |  |  | (2,223) |  |  | (162) |  |  | (1,873) |
General and administrative expenses |  |  | (5,308) |  |  | (5,387) |  |  |  | (2,702) |  |  | (2,606) |  |  | (2,951) |  |  | (2,929) |  |  | (2,933) |
Acquisition and investment related costs |  |  | (47) |  |  | (398) |  |  |  | (4) |  |  | (43) |  |  | (397) |  |  | (35) |  |  | (391) |
Other expenses |  |  | (1,668) |  |  | (1,230) |  |  |  | (816) |  |  | (852) |  |  | (950) |  |  | (51) |  |  | (813) |
Interest expense |  |  | (20,990) |  |  | (16,555) |  |  |  | (10,626) |  |  | (10,364) |  |  | (10,062) |  |  | (9,151) |  |  | (8,741) |
Loss on extinguishment of debt |  |  | — |  |  | (106) |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (106) |
Interest and other income |  |  | 1,682 |  |  | 1,272 |  |  |  | 637 |  |  | 1,045 |  |  | 600 |  |  | 701 |  |  | 665 |
(Loss) income before income (loss) on sale of real estate and other investments and income (loss) from discontinued operations |  |  | (51,269) |  |  | 3,952 |  |  |  | 1,994 |  |  | (53,263) |  |  | (1,501) |  |  | 3,765 |  |  | (202) |
Income (loss) on sale of real estate and other investments |  |  | 8,855 |  |  | (175) |  |  |  | (103) |  |  | 8,958 |  |  | 8,369 |  |  | 1,446 |  |  | — |
Gain on bargain purchase |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | 3,424 |  |  | — |  |  | — |
(Loss) income from continuing operations |  |  | (42,414) |  |  | 3,777 |  |  |  | 1,891 |  |  | (44,305) |  |  | 10,292 |  |  | 5,211 |  |  | (202) |
Income from discontinued operations |  |  | 14,110 |  |  | 17,627 |  |  |  | 10,399 |  |  | 3,711 |  |  | 1,463 |  |  | 38,232 |  |  | 16,879 |
Net (loss) income |  | $ | (28,304) |  | $ | 21,404 |  |  | $ | 12,290 |  | $ | (40,594) |  | $ | 11,755 |  | $ | 43,443 |  | $ | 16,677 |
Net loss (income) attributable to noncontrolling interest – Operating Partnership |  |  | 2,122 |  |  | (1,713) |  |  |  | (1,174) |  |  | 3,296 |  |  | (1,092) |  |  | (4,227) |  |  | (1,527) |
Net loss attributable to noncontrolling interests – consolidated real estate entities |  |  | 16,139 |  |  | 1,515 |  |  |  | 484 |  |  | 15,655 |  |  | 340 |  |  | 581 |  |  | 1,516 |
Net (loss) income attributable to Investors Real Estate Trust |  |  | (10,043) |  |  | 21,206 |  |  |  | 11,600 |  |  | (21,643) |  |  | 11,003 |  |  | 39,797 |  |  | 16,666 |
Dividends to preferred shareholders |  |  | (5,757) |  |  | (5,757) |  |  |  | (2,878) |  |  | (2,879) |  |  | (2,878) |  |  | (2,879) |  |  | (2,878) |
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS |  | $ | (15,800) |  | $ | 15,449 |  |  | $ | 8,722 |  | $ | (24,522) |  | $ | 8,125 |  | $ | 36,918 |  | $ | 13,788 |
Per Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) earnings per common share from continuing operations – Investors Real Estate Trust – basic & diluted |  | $ | (0.23) |  | $ | — |  |  | $ | — |  | $ | (0.23) |  | $ | 0.06 |  | $ | 0.02 |  | $ | (0.01) |
Earnings per common share from discontinued operations – Investors Real Estate Trust – basic & diluted |  |  | 0.10 |  |  | 0.12 |  |  |  | 0.07 |  |  | 0.03 |  |  | 0.01 |  |  | 0.28 |  |  | 0.12 |
Net (loss) income per common share – basic & diluted |  | $ | (0.13) |  | $ | 0.12 |  |  | $ | 0.07 |  | $ | (0.20) |  | $ | 0.07 |  | $ | 0.30 |  | $ | 0.11 |
Percentage of Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate expenses |  |  | 43.1 | % |  | 41.9 | % |  |  | 42.6 | % |  | 43.6 | % |  | 42.3 | % |  | 42.0 | % |  | 43.0 | %
Depreciation/amortization |  |  | 27.7 | % |  | 25.8 | % |  |  | 26.7 | % |  | 28.8 | % |  | 27.9 | % |  | 26.2 | % |  | 26.8 | %
General and administrative expenses |  |  | 5.3 | % |  | 5.9 | % |  |  | 5.3 | % |  | 5.3 | % |  | 6.1 | % |  | 6.1 | % |  | 6.3 | %
Interest |  |  | 20.9 | % |  | 18.1 | % |  |  | 21.0 | % |  | 20.9 | % |  | 20.7 | % |  | 18.9 | % |  | 18.9 | %
Income from discontinued operations |  |  | 14.1 | % |  | 19.3 | % |  |  | 20.5 | % |  | 7.5 | % |  | 3.0 | % |  | 79.0 | % |  | 36.4 | %
Net income |  |  | (28.2) | % |  | 23.4 | % |  |  | 24.3 | % |  | (81.8) | % |  | 24.2 | % |  | 89.7 | % |  | 36.0 | %
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA(1)/Interest expense |  |  | 2.53 | x |  | 2.19 | x |  |  | 2.54 | x |  | 2.52 | x |  | 2.76 | x |  | 2.29 | x |  | 2.08 | x
Adjusted EBITDA(1)/Interest expense plus preferred distributions |  |  | 2.04 | x |  | 1.85 | x |  |  | 2.05 | x |  | 2.03 | x |  | 2.23 | x |  | 1.92 | x |  | 1.74 | x

| (1) |  | See Definitions on page 23. 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 |
|  | 10/31/2016 |  | 10/31/2015 |  |  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Funds From Operations(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income attributable to Investors Real Estate Trust |  | $ | (10,043) |  | $ | 21,206 |  |  | $ | 11,600 |  | $ | (21,643) |  | $ | 11,003 |  | $ | 39,797 |  | $ | 16,666 |
Less dividends to preferred shareholders |  |  | (5,757) |  |  | (5,757) |  |  |  | (2,878) |  |  | (2,879) |  |  | (2,878) |  |  | (2,879) |  |  | (2,878) |
Net (loss) income available to common shareholders |  |  | (15,800) |  |  | 15,449 |  |  |  | 8,722 |  |  | (24,522) |  |  | 8,125 |  |  | 36,918 |  |  | 13,788 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  |  | (2,122) |  |  | 1,713 |  |  |  | 1,174 |  |  | (3,296) |  |  | 1,092 |  |  | 4,227 |  |  | 1,527 |
Depreciation and amortization of real property |  |  | 26,408 |  |  | 33,119 |  |  |  | 12,971 |  |  | 13,437 |  |  | 15,694 |  |  | 14,975 |  |  | 14,860 |
Impairment of real estate investments attributable to Investors Real Estate Trust |  |  | 39,190 |  |  | 3,598 |  |  |  | — |  |  | 39,189 |  |  | 2,223 |  |  | 162 |  |  | 1,873 |
(Gain) loss on depreciable property sales |  | $ | (15,358) |  | $ | (23,733) |  |  |  | (6,400) |  |  | (8,958) |  |  | (7,910) |  |  | (1,778) |  |  | (23,909) |
FFO applicable to common shares and Units |  |  | 32,318 |  |  | 30,146 |  |  | $ | 16,467 |  | $ | 15,850 |  | $ | 19,224 |  | $ | 54,504 |  | $ | 8,139 |
FFO per share and unit - basic and diluted(2) |  | $ | 0.24 |  | $ | 0.22 |  |  | $ | 0.12 |  | $ | 0.12 |  | $ | 0.14 |  | $ | 0.40 |  | $ | 0.06 |
Adjusted funds from operations(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFO applicable to common shares and Units |  | $ | 32,318 |  | $ | 30,146 |  |  | $ | 16,467 |  | $ | 15,850 |  | $ | 19,224 |  | $ | 54,504 |  | $ | 8,139 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tenant improvements at same-store(3) properties |  |  | (862) |  |  | (348) |  |  |  | (362) |  |  | (500) |  |  | (778) |  |  | (383) |  |  | (157) |
Leasing costs at same-store properties(3) |  |  | (634) |  |  | (395) |  |  |  | (464) |  |  | (170) |  |  | (89) |  |  | (102) |  |  | (59) |
Recurring capital expenditures(1)(3) |  |  | (2,224) |  |  | (3,330) |  |  |  | (1,140) |  |  | (1,141) |  |  | (825) |  |  | (1,406) |  |  | (1,713) |
Straight-line rents |  |  | (535) |  |  | (66) |  |  |  | 162 |  |  | (697) |  |  | (238) |  |  | (554) |  |  | (309) |
Non-real estate depreciation |  |  | 157 |  |  | 180 |  |  |  | 69 |  |  | 88 |  |  | 93 |  |  | 80 |  |  | 80 |
Acquisition costs(4) |  |  | — |  |  | 153 |  |  |  | — |  |  | — |  |  | 91 |  |  | 9 |  |  | 153 |
Default interest |  |  | — |  |  | 3,116 |  |  |  | — |  |  | — |  |  | — |  |  | 1,566 |  |  | 1,567 |
(Gain) loss on extinguishment of debt |  |  | 72 |  |  | 7,226 |  |  |  | 72 |  |  | — |  |  | — |  |  | (36,456) |  |  | 7,226 |
Gain on bargain purchase |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | (3,424) |  |  | — |  |  | — |
Share-based compensation expense |  |  | 865 |  |  | 605 |  |  |  | 603 |  |  | 262 |  |  | 864 |  |  | 787 |  |  | 539 |
AFFO applicable to common shares and Units |  | $ | 29,157 |  | $ | 37,287 |  |  | $ | 15,407 |  | $ | 13,692 |  | $ | 14,918 |  | $ | 18,045 |  | $ | 15,466 |
AFFO per share and unit - basic and diluted |  | $ | 0.21 |  | $ | 0.27 |  |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.11 |  | $ | 0.13 |  | $ | 0.11 |
Weighted average shares and units |  |  | 137,411 |  |  | 138,686 |  |  |  | 137,418 |  |  | 137,402 |  |  | 136,438 |  |  | 135,741 |  |  | 138,565 |

| (1) |  | See Definitions on page 23.

| (2) |  | Excluding gain or loss on extinguishment of debt and default interest, FFO would have been $19.6 million and $0.14 per share and unit for the three months ended January 31, 2016, $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) |  | Three months ended July 31, 2015 was 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 |
|  | 10/31/2016 |  | 10/31/2015 |  |  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Adjusted EBITDA(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income attributable to Investors Real Estate Trust |  | $ | (10,043) |  | $ | 21,206 |  |  | $ | 11,600 |  | $ | (21,643) |  | $ | 11,003 |  | $ | 39,797 |  | $ | 16,666 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  |  | (2,122) |  |  | 1,713 |  |  |  | 1,174 |  |  | (3,296) |  |  | 1,092 |  |  | 4,227 |  |  | 1,527 |
Income before noncontrolling interests – Operating Partnership |  |  | (12,165) |  |  | 22,919 |  |  |  | 12,774 |  |  | (24,939) |  |  | 12,095 |  |  | 44,024 |  |  | 18,193 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | 23,759 |  |  | 28,723 |  |  |  | 12,021 |  |  | 11,738 |  |  | 11,475 |  |  | 13,976 |  |  | 13,762 |
Loss (gain) loss on extinguishment of debt |  |  | 72 |  |  | 7,226 |  |  |  | 72 |  |  | — |  |  | — |  |  | (36,456) |  |  | 7,226 |
Depreciation/amortization related to real estate investments |  |  | 26,511 |  |  | 33,209 |  |  |  | 13,014 |  |  | 13,497 |  |  | 15,765 |  |  | 15,024 |  |  | 14,903 |
Amortization related to real estate revenues(2) |  |  | 54 |  |  | 92 |  |  |  | 27 |  |  | 27 |  |  | 23 |  |  | 31 |  |  | 38 |
Impairment of real estate investments attributable to Investors Real Estate Trust |  |  | 39,189 |  |  | 3,598 |  |  |  | — |  |  | 39,189 |  |  | 2,223 |  |  | 162 |  |  | 1,873 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (1,172) |  |  | (1,121) |  |  |  | (600) |  |  | (572) |  |  | (570) |  |  | (566) |  |  | (565) |
Gain on sale of real estate and other investments |  |  | (15,358) |  |  | (24,505) |  |  |  | (6,400) |  |  | (8,958) |  |  | (7,911) |  |  | (1,777) |  |  | (24,680) |
Adjusted EBITDA |  | $ | 60,890 |  | $ | 70,141 |  |  |  | 30,908 |  |  | 29,982 |  |  | 33,100 |  |  | 34,418 |  |  | 30,750 |

| (1) |  | See Definitions on page 23.

| (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(1) |
Fiscal Year |  | Fixed Debt |  | Variable Debt |  | Total Debt |  | Weighted Average(2) |  | % of Total Debt |
2017 (remainder) |  | $ | 6,931 |  | $ | 101,921 |  | $ | 108,852 |  |  | 3.32 | % |  | 12.9 | %
2018 |  |  | 17,584 |  |  | 25,538 |  |  | 43,122 |  |  | 3.99 | % |  | 5.1 | %
2019 |  |  | 25,416 |  |  | 64,785 |  |  | 90,201 |  |  | 3.77 | % |  | 10.7 | %
2020 |  |  | 107,510 |  |  | 32,926 |  |  | 140,436 |  |  | 5.53 | % |  | 16.6 | %
2021 |  |  | 123,500 |  |  | — |  |  | 123,500 |  |  | 5.04 | % |  | 14.6 | %
2022 |  |  | 107,474 |  |  | 1,721 |  |  | 109,195 |  |  | 5.56 | % |  | 12.9 | %
2023 |  |  | 40,213 |  |  | — |  |  | 40,213 |  |  | 4.25 | % |  | 4.7 | %
2024 |  |  | 62,899 |  |  | — |  |  | 62,899 |  |  | 4.26 | % |  | 7.5 | %
2025 |  |  | 19,118 |  |  | — |  |  | 19,118 |  |  | 4.04 | % |  | 2.3 | %
2026 |  |  | 55,634 |  |  | — |  |  | 55,634 |  |  | 3.74 | % |  | 6.6 | %
Thereafter |  |  | 51,415 |  |  | — |  |  | 51,415 |  |  | 4.07 | % |  | 6.1 | %
Total maturities |  | $ | 617,694 |  | $ | 226,891 |  | $ | 844,585 |  |  | 4.52 | % |  | 100.0 | %

| (1) |  | Includes mortgages on properties held for sale.

| (2) |  | Weighted average interest rate of debt that matures in fiscal year.

|  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Balances Outstanding(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate |  | $ | 617,694 |  | $ | 635,251 |  | $ | 689,346 |  | $ | 682,312 |  | $ | 920,234 |
Variable rate |  |  | 226,891 |  |  | 249,169 |  |  | 196,801 |  |  | 89,994 |  |  | 89,826 |
Mortgage total |  | $ | 844,585 |  | $ | 884,420 |  | $ | 886,147 |  | $ | 772,306 |  | $ | 1,010,060 |
Weighted Average Interest Rates Secured |  |  | 4.52 | % |  | 4.54 | % |  | 4.54 | % |  | 4.83 | % |  | 5.04 | %

| (1) |  | Includes mortgages on properties held for sale.

9

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF OCTOBER 31, 2016

(in thousands)

Property |  | Maturity Date |  | Fiscal 2017 |  | Fiscal 2018 |  | Fiscal 2019 |  | Fiscal 2020 |  | Thereafter |  | Total(1) |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Southgate Apartments-Minot, ND(2) |  | 11/1/2016 |  | $ | 31,400 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 31,400 |
Arcata Apartments-Golden Valley, MN |  | 2/15/2017 |  |  | 23,072 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,072 |
Evergreen II – Isanti, MN |  | 11/1/2017 |  |  | — |  |  | 1,997 |  |  | — |  |  | — |  |  | — |  |  | 1,997 |
Ponds – Sartell, MN |  | 11/1/2017 |  |  | — |  |  | 3,696 |  |  | — |  |  | — |  |  | — |  |  | 3,696 |
Homestead Gardens II - Rapid City, SD |  | 6/1/2018 |  |  | — |  |  | — |  |  | 3,205 |  |  | — |  |  | — |  |  | 3,205 |
River Ridge – Bismarck, ND |  | 6/30/2018 |  |  | — |  |  | — |  |  | 13,000 |  |  | — |  |  | — |  |  | 13,000 |
Plaza - Minot, ND |  | 8/1/2018 |  |  | — |  |  | — |  |  | 5,142 |  |  | — |  |  | — |  |  | 5,142 |
Greenfield - Omaha, NE |  | 2/1/2019 |  |  | — |  |  | — |  |  | 3,478 |  |  | — |  |  | — |  |  | 3,478 |
Brooklyn Heights - Minot, ND(3) |  | 4/1/2019 |  |  | — |  |  | — |  |  | 605 |  |  | — |  |  | — |  |  | 605 |
Colton Heights - Minot, ND(3) |  | 4/1/2019 |  |  | — |  |  | — |  |  | 340 |  |  | — |  |  | — |  |  | 340 |
Pines - Minot, ND(3) |  | 4/1/2019 |  |  | — |  |  | — |  |  | 97 |  |  | — |  |  | — |  |  | 97 |
Summit Park - Minot, ND(3) |  | 4/1/2019 |  |  | — |  |  | — |  |  | 839 |  |  | — |  |  | — |  |  | 839 |
Terrace Heights - Minot, ND(3) |  | 4/1/2019 |  |  | — |  |  | — |  |  | 140 |  |  | — |  |  | — |  |  | 140 |
Avalon Cove-Rochester, MN |  | 4/5/2019 |  |  | — |  |  | — |  |  | 25,603 |  |  | — |  |  | — |  |  | 25,603 |
Crystal Bay-Rochester, MN |  | 4/5/2019 |  |  | — |  |  | — |  |  | 7,908 |  |  | — |  |  | — |  |  | 7,908 |
French Creek-Rochester, MN |  | 4/5/2019 |  |  | — |  |  | — |  |  | 3,064 |  |  | — |  |  | — |  |  | 3,064 |
Monticello Village - Monticello, MN |  | 5/28/2019 |  |  | — |  |  | — |  |  | — |  |  | 2,877 |  |  | — |  |  | 2,877 |
Rimrock West - Billings, MT |  | 9/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 3,192 |  |  | — |  |  | 3,192 |
Rocky Meadows - Billings, MT |  | 9/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 4,949 |  |  | — |  |  | 4,949 |
Cimarron Hills - Omaha, NE |  | 10/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 4,606 |  |  | — |  |  | 4,606 |
Cottonwood - Bismarck, ND |  | 10/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 15,238 |  |  | — |  |  | 15,238 |
Forest Park - Grand Forks, ND |  | 10/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 7,350 |  |  | — |  |  | 7,350 |
Renaissance Heights I - Williston, ND |  | 10/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 23,715 |  |  | — |  |  | 23,715 |
Williston Garden - Williston, ND |  | 10/30/2019 |  |  | — |  |  | — |  |  | — |  |  | 7,400 |  |  | — |  |  | 7,400 |
Williston Garden - Williston, ND |  | 10/30/2019 |  |  | — |  |  | — |  |  | — |  |  | 270 |  |  | — |  |  | 270 |
Evergreen - Isanti, MN |  | 11/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 1,932 |  |  | — |  |  | 1,932 |
Pinehurst - Billings, MT |  | 11/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 142 |  |  | — |  |  | 142 |
Northridge - Bismarck, ND |  | 12/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 6,064 |  |  | — |  |  | 6,064 |
Castlerock - Billings, MT |  | 1/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 6,407 |  |  | — |  |  | 6,407 |
Thomasbrook - Lincoln, NE |  | 1/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 5,742 |  |  | — |  |  | 5,742 |
Westwood Park - Bismarck, ND |  | 1/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 1,898 |  |  | — |  |  | 1,898 |
Kirkwood Manor - Bismarck, ND |  | 2/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 3,175 |  |  | — |  |  | 3,175 |
Brookfield Village - Topeka, KS |  | 3/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 5,076 |  |  | — |  |  | 5,076 |
Crown Colony - Topeka, KS |  | 4/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 7,860 |  |  | — |  |  | 7,860 |
Mariposa - Topeka, KS |  | 4/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 2,844 |  |  | — |  |  | 2,844 |
Sherwood - Topeka, KS |  | 4/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 11,804 |  |  | — |  |  | 11,804 |
Summary of Debt due after Fiscal 2020 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 344,148 |  |  | 344,148 |
Sub-Total Multifamily |  |  |  | $ | 54,472 |  | $ | 5,693 |  | $ | 63,421 |  | $ | 122,541 |  | $ | 344,148 |  | $ | 590,275 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Billings 2300 Grant Road – Billings, MT |  | 12/31/2016 |  |  | 846 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 846 |
Missoula 3050 Great Northern Ave – Missoula, MT |  | 12/31/2016 |  |  | 851 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 851 |
Edgewood Vista – Fargo, ND(3) |  | 2/25/2017 |  |  | 11,002 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,002 |
Edgewood Vista – Fremont, NE(3) |  | 2/25/2017 |  |  | 516 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 516 |
Edgewood Vista – Hastings, NE(3) |  | 2/25/2017 |  |  | 532 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 532 |
Edgewood Vista – Hermantown I, MN(3) |  | 2/25/2017 |  |  | 14,257 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,257 |
Edgewood Vista – Kalispell, MT(3) |  | 2/25/2017 |  |  | 533 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 533 |
Edgewood Vista – Missoula, MT(3) |  | 2/25/2017 |  |  | 757 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 757 |

10

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

LONG-TERM MORTGAGE DEBT* DETAIL AS OF OCTOBER 31, 2016

(in thousands)

Property |  | Maturity Date |  | Fiscal 2017 |  | Fiscal 2018 |  | Fiscal 2019 |  | Fiscal 2020 |  | Thereafter |  | Total(1) |
Healthcare continued |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Edgewood Vista – Omaha, NE(3) |  | 2/25/2017 |  |  | 337 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 337 |
Edgewood Vista – Virginia, MN(3) |  | 2/25/2017 |  |  | 12,127 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,127 |
High Pointe Health Campus – Lake Elmo, MN |  | 4/1/2017 |  |  | 7,389 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,389 |
Edgewood Vista – Billings, MT(3) |  | 4/10/2017 |  |  | 1,690 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,690 |
Edgewood Vista – East Grand Forks, MN(3) |  | 4/10/2017 |  |  | 2,575 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,575 |
Edgewood Vista – Sioux Falls, SD(3) |  | 4/10/2017 |  |  | 968 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 968 |
St Michael Clinic – St. Michael, MN |  | 4/1/2018 |  |  | — |  |  | 1,705 |  |  | — |  |  | — |  |  | — |  |  | 1,705 |
PrairieCare Medical - Brooklyn Park, MN |  | 4/10/2018 |  |  | — |  |  | 14,718 |  |  | — |  |  | — |  |  | — |  |  | 14,718 |
Garden View Medical – St. Paul, MN |  | 6/30/2018 |  |  | — |  |  | — |  |  | 6,890 |  |  | — |  |  | — |  |  | 6,890 |
Ritchie Medical Plaza – St. Paul, MN |  | 6/30/2018 |  |  | — |  |  | — |  |  | 8,320 |  |  | — |  |  | — |  |  | 8,320 |
Health East St John & Woodwinds - Maplewood & Woodbury, MN |  | 2/1/2019 |  |  | — |  |  | — |  |  | 4,746 |  |  | — |  |  | — |  |  | 4,746 |
Denfeld Clinic - Duluth, MN |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 1,245 |  |  | — |  |  | 1,245 |
Gateway Clinic - Sandstone, MN |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 721 |  |  | — |  |  | 721 |
Mariner Clinic - Superior, WI |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 1,577 |  |  | — |  |  | 1,577 |
Pavilion I - Duluth, MN |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 4,154 |  |  | — |  |  | 4,154 |
Pavilion II - Duluth, MN |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 7,645 |  |  | — |  |  | 7,645 |
Wells Clinic - Hibbing, MN |  | 8/1/2019 |  |  | — |  |  | — |  |  | — |  |  | 1,100 |  |  | — |  |  | 1,100 |
Summary of Debt due after Fiscal 2020 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 114,306 |  |  | 114,306 |
Sub-Total Healthcare |  |  |  | $ | 54,380 |  | $ | 16,423 |  | $ | 19,956 |  | $ | 16,442 |  | $ | 114,306 |  | $ | 221,507 |
All Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Roseville 3075 Long Lake Road - Roseville, MN |  | 5/1/2017 |  |  | — |  |  | 10,820 |  |  | — |  |  | — |  |  | — |  |  | 10,820 |
Urbandale 3900 106 th Street – Urbandale, IA |  | 7/5/2017 |  |  | — |  |  | 10,186 |  |  | — |  |  | — |  |  | — |  |  | 10,186 |
Plaza 16 – Minot, ND |  | 8/1/2018 |  |  | — |  |  | — |  |  | 6,824 |  |  | — |  |  | — |  |  | 6,824 |
Lexington Commerce Center - Eagan, MN |  | 2/1/2020 |  |  | — |  |  | — |  |  | — |  |  | 1,453 |  |  | — |  |  | 1,453 |
Summary of Debt due after Fiscal 2020 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,520 |  |  | 3,520 |
Sub-Total All Other |  |  |  | $ | — |  | $ | 21,006 |  | $ | 6,824 |  | $ | 1,453 |  | $ | 3,520 |  | $ | 32,803 |
Total |  |  |  | $ | 108,852 |  | $ | 43,122 |  | $ | 90,201 |  | $ | 140,436 |  | $ | 461,974 |  | $ | 844,585 |

* 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, 2016, we had borrowings of $47.5 million outstanding under this line. Construction loans and other debt totaled $82.7 million as of October 31, 2016.

(1)Totals are principal balances as of October 31, 2016.

(2)Loan was refinanced subsequent to October 31, 2016.

(3)Property is classified as held for sale at October 31, 2016

11

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

CAPITAL ANALYSIS

(in thousands, except per share and unit amounts)

|  | Three Months Ended |
|  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Equity Capitalization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares outstanding |  |  | 121,701 |  |  | 121,528 |  |  | 121,091 |  |  | 121,034 |  |  | 122,798 |
Operating partnership (OP) units outstanding |  |  | 16,229 |  |  | 16,285 |  |  | 16,285 |  |  | 13,864 |  |  | 13,890 |
Total common shares and OP units outstanding |  |  | 137,930 |  |  | 137,813 |  |  | 137,376 |  |  | 134,898 |  |  | 136,688 |
Market price per common share (closing price at end of period) |  | $ | 6.07 |  | $ | 6.62 |  | $ | 6.02 |  | $ | 6.52 |  | $ | 8.12 |
Equity capitalization-common shares and OP units |  | $ | 837,235 |  | $ | 912,322 |  | $ | 827,004 |  | $ | 879,535 |  | $ | 1,109,907 |
Recorded book value of preferred shares |  | $ | 138,674 |  | $ | 138,674 |  | $ | 138,674 |  | $ | 138,674 |  | $ | 138,674 |
Total equity capitalization |  | $ | 975,909 |  | $ | 1,050,996 |  | $ | 965,678 |  | $ | 1,018,209 |  | $ | 1,248,581 |
Debt Capitalization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total debt |  | $ | 982,486 |  | $ | 988,031 |  | $ | 993,323 |  | $ | 940,294 |  | $ | 1,007,825 |
Total capitalization |  | $ | 1,958,395 |  | $ | 2,039,027 |  | $ | 1,959,001 |  | $ | 1,958,503 |  | $ | 2,256,406 |
Total debt to total capitalization |  |  | 0.50:1 |  |  | 0.48:1 |  |  | 0.51:1 |  |  | 0.48:1 |  |  | 0.45:1 |

|  | Six Months Ended |  |  | Three Months Ended |
|  | 10/31/2016 |  | 10/31/2015 |  |  | 10/31/2016 |  | 7/31/2016 |  | 4/30/2016 |  | 1/31/2016 |  | 10/31/2015 |
Earnings to fixed charges(1) |  |  | (2) | x |  | 1.06 | x |  |  | 1.19 |  |  | (5) | x |  | 1.85 | x |  | 1.32 | x |  | 1.02 | x
Earnings to combined fixed charges and preferred distributions(1) |  |  | (2) | x |  | (3) | x |  |  | (4) |  |  | (5) | x |  | 1.49 | x |  | 1.11 |  |  | (6) |
Debt service coverage ratio(1) |  |  | 1.64 | x |  | 1.56 | x |  |  | 1.66 | x |  | 1.62 | x |  | 1.86 | x |  | 1.65 | x |  | 1.49 | x
Distribution Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares and units outstanding at record date |  |  | 137,934 |  |  | 139,540 |  |  |  | 137,934 |  |  | 137,376 |  |  | 134,897 |  |  | 135,408 |  |  | 139,540 |
Total common distribution paid |  | $ | 35,790 |  | $ | 36,151 |  |  | $ | 17,931 |  | $ | 17,859 |  | $ | 17,536 |  | $ | 17,603 |  | $ | 18,136 |
Common distribution per share and unit |  | $ | 0.26 |  | $ | 0.26 |  |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.13 |
Payout ratio (FFO per share and unit basis)(1) |  |  | 108.3 | % |  | 118.2 | % |  |  | 108.3 | % |  | 108.3 | % |  | 92.9 | % |  | 32.5 | % |  | 216.7 | %
Payout ratio (AFFO per share and unit basis)(1) |  |  | 123.8 | % |  | 96.3 | % |  |  | 118.2 | % |  | 130.0 | % |  | 118.2 | % |  | 100 | % |  | 118.2 | %

| (1) |  | See Definitions on page 23.

| (2) |  | Earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $26.5 million and $32.2 million, respectively. Excluding non-cash asset impairment and gain on sale charges of $45.1 million in the six months ended October 31, 2016, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 1.77x and 1.43x, respectively, for the six months ended October 31, 2016.

| (3) |  | Earnings were inadequate to cover combined fixed charges and preferred distributions by $3.7 million. Excluding non-cash asset impairment and gain on sale charges of $3.3 million in the six months ended October 31, 2015, the ratio of earnings to combined fixed charges and preferred distributions would have been .99x for the six months ended October 31, 2015.

| (4) |  | Earnings were inadequate to cover combined fixed charges and preferred distributions by $590,000. Excluding non-cash gain on sale charges of $103,000 in the three months ended October 31, 2016, the ratio of earnings to combined fixed charges and preferred distributions would have been .95x for the three months ended October 31, 2016.

| (5) |  | Earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $28.7 million and $31.6 million, respectively. Excluding non-cash asset impairment and gain on sale charges of $45.2 million in the three months ended July 31, 2016, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 2.38x and 1.92x, respectively, for the three months ended July 31, 2016.

| (6) |  | Earnings were inadequate to cover combined fixed charges and preferred distributions by $2.6 million. Excluding non-cash asset impairment and loss on sale charges of $1.9 million in the three months ended October 31, 2015, the ratio of earnings to combined fixed charges and preferred distributions would have been .96x for the three months ended October 31, 2015.

12

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

|  | Three Months Ended October 31, 2016 |
|  | Reporting Segments |
|  |  |  |  |  |  |  |  |  |  | Corporate and |  |  |  |
|  | Multifamily |  | Healthcare |  | All Other |  | Other |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  | $ | 27,613 |  | $ | 10,205 |  | $ | 2,260 |  | $ | — |  | $ | 40,078 |
Non-same-store |  |  | 8,637 |  |  | 1,456 |  |  | 438 |  |  | — |  |  | 10,531 |
Total |  |  | 36,250 |  |  | 11,661 |  |  | 2,698 |  |  | — |  |  | 50,609 |
Real estate expenses(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 12,033 |  |  | 3,730 |  |  | 635 |  |  | 872 |  |  | 17,270 |
Non-same-store |  |  | 3,533 |  |  | 421 |  |  | 95 |  |  | 254 |  |  | 4,303 |
Total |  |  | 15,566 |  |  | 4,151 |  |  | 730 |  |  | 1,126 |  |  | 21,573 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 15,580 |  |  | 6,475 |  |  | 1,625 |  |  | (872) |  |  | 22,808 |
Non-same-store |  |  | 5,104 |  |  | 1,035 |  |  | 343 |  |  | (254) |  |  | 6,228 |
Net operating income (loss) |  | $ | 20,684 |  | $ | 7,510 |  | $ | 1,968 |  | $ | (1,126) |  | $ | 29,036 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation/amortization |  | $ | (9,677) |  | $ | (2,874) |  | $ | (912) |  | $ | (68) |  | $ | (13,531) |
General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | (2,702) |  |  | (2,702) |
Acquisition and investment related costs |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | (4) |
Other expenses |  |  | — |  |  | — |  |  | — |  |  | (816) |  |  | (816) |
Interest expense |  |  | (7,863) |  |  | (2,002) |  |  | (425) |  |  | (336) |  |  | (10,626) |
Interest and other income |  |  | — |  |  | — |  |  | — |  |  | 637 |  |  | 637 |
Income before gain (loss) on sale of real estate and other investments, gain on bargain purchase and income from discontinued operations |  |  | 3,144 |  |  | 2,634 |  |  | 631 |  |  | (4,415) |  |  | 1,994 |
Gain (loss) on sale of real estate and other investments |  |  | — |  |  | (102) |  |  | — |  |  | (1) |  |  | (103) |
Income (loss) from continuing operations |  |  | 3,144 |  |  | 2,532 |  |  | 631 |  |  | (4,416) |  |  | 1,891 |
Income from discontinued operations |  |  | — |  |  | 10,399 |  |  | — |  |  | — |  |  | 10,399 |
Net income (loss) |  |  | 3,144 |  |  | 12,931 |  |  | 631 |  |  | (4,416) |  |  | 12,290 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | — |  |  | — |  |  | — |  |  | (1,174) |  |  | (1,174) |
Net loss attributable to noncontrolling interests – consolidated real estate entities |  |  | — |  |  | — |  |  | — |  |  | 484 |  |  | 484 |
Net income (loss) attributable to Investors Real Estate Trust |  |  | 3,144 |  |  | 12,931 |  |  | 631 |  |  | (5,106) |  |  | 11,600 |
Dividends to preferred shareholders |  |  | — |  |  | — |  |  | — |  |  | (2,878) |  |  | (2,878) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 3,144 |  | $ | 12,931 |  | $ | 631 |  | $ | (7,984) |  | $ | 8,722 |

| (1) |  | Offsite costs associated with property management and casualty-related amounts are included in the Corporate and Other column.

13

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

|  | Three Months Ended October 31, 2015 |
|  | Reporting Segments |
|  |  |  |  |  |  |  |  |  |  | Corporate and |  |  |  |
|  | Multifamily |  | Healthcare |  | All Other |  | Other |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  | $ | 28,099 |  | $ | 10,280 |  | $ | 2,330 |  | $ | — |  | $ | 40,709 |
Non-same-store |  |  | 4,077 |  |  | 1,071 |  |  | 489 |  |  | — |  |  | 5,637 |
Total |  |  | 32,176 |  |  | 11,351 |  |  | 2,819 |  |  | — |  |  | 46,346 |
Real estate expenses(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 12,148 |  |  | 3,432 |  |  | 598 |  |  | 1,237 |  |  | 17,415 |
Non-same-store |  |  | 2,043 |  |  | 402 |  |  | 22 |  |  | 69 |  |  | 2,536 |
Total |  |  | 14,191 |  |  | 3,834 |  |  | 620 |  |  | 1,306 |  |  | 19,951 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 15,951 |  |  | 6,848 |  |  | 1,732 |  |  | (1,237) |  |  | 23,294 |
Non-same-store |  |  | 2,034 |  |  | 669 |  |  | 467 |  |  | (69) |  |  | 3,101 |
Net operating income (loss) |  | $ | 17,985 |  | $ | 7,517 |  | $ | 2,199 |  | $ | (1,306) |  | $ | 26,395 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation/amortization |  | $ | (8,568) |  | $ | (2,864) |  | $ | (908) |  | $ | (65) |  | $ | (12,405) |
Impairment of real estate investments |  |  | (1,873) |  |  | — |  |  | — |  |  | — |  |  | (1,873) |
General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | (2,933) |  |  | (2,933) |
Acquisition and investment related costs |  |  | — |  |  | — |  |  | — |  |  | (391) |  |  | (391) |
Other expenses |  |  | — |  |  | — |  |  | — |  |  | (813) |  |  | (813) |
Interest expense |  |  | (6,594) |  |  | (2,150) |  |  | (396) |  |  | 399 |  |  | (8,741) |
Loss on debt extinguishment |  |  | (93) |  |  | — |  |  | (13) |  |  | — |  |  | (106) |
Interest and other income |  |  | — |  |  | — |  |  | — |  |  | 665 |  |  | 665 |
Income (loss) from continuing operations |  |  | 857 |  |  | 2,503 |  |  | 882 |  |  | (4,444) |  |  | (202) |
Income (loss) from discontinued operations |  |  | — |  |  | 358 |  |  | 16,521 |  |  | — |  |  | 16,879 |
Net income (loss) |  |  | 857 |  |  | 2,861 |  |  | 17,403 |  |  | (4,444) |  |  | 16,677 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | — |  |  | — |  |  | — |  |  | (1,527) |  |  | (1,527) |
Net income attributable to noncontrolling interests – consolidated real estate entities |  |  | — |  |  | — |  |  | — |  |  | 1,516 |  |  | 1,516 |
Net income (loss) attributable to Investors Real Estate Trust |  |  | 857 |  |  | 2,861 |  |  | 17,403 |  |  | (4,455) |  |  | 16,666 |
Dividends to preferred shareholders |  |  | — |  |  | — |  |  | — |  |  | (2,878) |  |  | (2,878) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 857 |  | $ | 2,861 |  | $ | 17,403 |  | $ | (7,333) |  | $ | 13,788 |

| (1) |  | Offsite costs associated with property management and casualty-related amounts are included in the Corporate and Other column.

14

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

|  | Six Months Ended October 31, 2016 |
|  | Reporting Segments |
|  |  |  |  |  |  |  |  |  |  | Corporate and |  |  |  |
|  | Multifamily |  | Healthcare |  | All Other |  | Other |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  | $ | 54,999 |  | $ | 20,322 |  | $ | 4,571 |  | $ | — |  | $ | 79,892 |
Non-same-store |  |  | 16,291 |  |  | 2,880 |  |  | 1,157 |  |  | — |  |  | 20,328 |
Total |  |  | 71,290 |  |  | 23,202 |  |  | 5,728 |  |  | — |  |  | 100,220 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 23,813 |  |  | 7,502 |  |  | 1,230 |  |  | 2,489 |  |  | 35,034 |
Non-same-store |  |  | 6,632 |  |  | 841 |  |  | 226 |  |  | 474 |  |  | 8,173 |
Total |  |  | 30,445 |  |  | 8,343 |  |  | 1,456 |  |  | 2,963 |  |  | 43,207 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 31,186 |  |  | 12,820 |  |  | 3,341 |  |  | (2,489) |  |  | 44,858 |
Non-same-store |  |  | 9,659 |  |  | 2,039 |  |  | 931 |  |  | (474) |  |  | 12,155 |
Net operating income |  | $ | 40,845 |  | $ | 14,859 |  | $ | 4,272 |  | $ | (2,963) |  | $ | 57,013 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation/amortization |  | $ | (20,121) |  | $ | (5,702) |  | $ | (1,834) |  | $ | (141) |  | $ | (27,798) |
Impairment of real estate investments |  |  | (51,401) |  |  | — |  |  | — |  |  | (2,752) |  |  | (54,153) |
General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | (5,308) |  |  | (5,308) |
Acquisition and investment related costs |  |  | — |  |  | — |  |  | — |  |  | (47) |  |  | (47) |
Other expenses |  |  | — |  |  | — |  |  | — |  |  | (1,668) |  |  | (1,668) |
Interest expense |  |  | (15,505) |  |  | (4,021) |  |  | (801) |  |  | (663) |  |  | (20,990) |
Interest and other income |  |  | — |  |  | — |  |  | — |  |  | 1,682 |  |  | 1,682 |
Income (loss) before gain (loss) on sale of real estate, gain on bargain purchase and other investments and (loss) income from discontinued operations |  |  | (46,182) |  |  | 5,136 |  |  | 1,637 |  |  | (11,860) |  |  | (51,269) |
Gain (loss) on sale of real estate and other investments |  |  | — |  |  | (102) |  |  | 8,982 |  |  | (25) |  |  | 8,855 |
Income (loss) from continuing operations |  |  | (46,182) |  |  | 5,034 |  |  | 10,619 |  |  | (11,885) |  |  | (42,414) |
(Loss) income from discontinued operations |  |  | — |  |  | 14,110 |  |  |  |  |  | — |  |  | 14,110 |
Net income (loss) |  |  | (46,182) |  |  | 19,144 |  |  | 10,619 |  |  | (11,885) |  |  | (28,304) |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | — |  |  | — |  |  | — |  |  | 2,122 |  |  | 2,122 |
Net loss attributable to noncontrolling interests – consolidated real estate entities |  |  | — |  |  | — |  |  | — |  |  | 16,139 |  |  | 16,139 |
Net income (loss) attributable to Investors Real Estate Trust |  |  | (46,182) |  |  | 19,144 |  |  | 10,619 |  |  | 6,376 |  |  | (10,043) |
Dividends to preferred shareholders |  |  | — |  |  | — |  |  | — |  |  | (5,757) |  |  | (5,757) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | (46,182) |  | $ | 19,144 |  | $ | 10,619 |  | $ | 619 |  | $ | (15,800) |

| (1) |  | Offsite costs associated with property management and casualty-related amounts are included in the Corporate and Other column.

15

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

NET OPERATING INCOME DETAIL

(in thousands)

|  | Six Months Ended October 31, 2015 |
|  | Reporting Segments |
|  |  |  |  |  |  |  |  |  |  | Corporate and |  |  |  |
|  | Multifamily |  | Healthcare |  | All Other |  | Other |  | Total |
Real estate rental revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  | $ | 56,269 |  | $ | 20,448 |  | $ | 4,658 |  | $ | — |  | $ | 81,375 |
Non-same-store |  |  | 7,340 |  |  | 1,682 |  |  | 994 |  |  | — |  |  | 10,016 |
Total |  |  | 63,609 |  |  | 22,130 |  |  | 5,652 |  |  | — |  |  | 91,391 |
Real estate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 24,002 |  |  | 6,670 |  |  | 1,093 |  |  | 1,976 |  |  | 33,741 |
Non-same-store |  |  | 3,629 |  |  | 646 |  |  | 135 |  |  | 104 |  |  | 4,514 |
Total |  |  | 27,631 |  |  | 7,316 |  |  | 1,228 |  |  | 2,080 |  |  | 38,255 |
Net operating income (NOI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store |  |  | 32,267 |  |  | 13,778 |  |  | 3,565 |  |  | (1,976) |  |  | 47,634 |
Non-same-store |  |  | 3,711 |  |  | 1,036 |  |  | 859 |  |  | (104) |  |  | 5,502 |
Net operating income |  | $ | 35,978 |  | $ | 14,814 |  | $ | 4,424 |  | $ | (2,080) |  | $ | 53,136 |
Reconciliation of NOI to net income (loss) available to common shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation/amortization |  | $ | (16,161) |  | $ | (5,483) |  | $ | (1,828) |  | $ | (150) |  | $ | (23,622) |
Impairment of real estate investments |  |  | (1,873) |  |  | — |  |  | — |  |  | (1,285) |  |  | (3,158) |
General and administrative expenses |  |  | — |  |  | — |  |  | — |  |  | (5,387) |  |  | (5,387) |
Acquisition and investment related costs |  |  | — |  |  | — |  |  | — |  |  | (398) |  |  | (398) |
Other expenses |  |  | — |  |  | — |  |  | — |  |  | (1,230) |  |  | (1,230) |
Interest expense |  |  | (12,517) |  |  | (4,277) |  |  | (791) |  |  | 1,030 |  |  | (16,555) |
Loss on debt extinguishment |  |  | (93) |  |  | — |  |  | — |  |  | (13) |  |  | (106) |
Interest and other income |  |  | — |  |  | — |  |  | — |  |  | 1,272 |  |  | 1,272 |
Income (loss) before gain (loss) on sale of real estate and other investments and (loss) income from discontinued operations |  |  | 5,334 |  |  | 5,054 |  |  | 1,805 |  |  | (8,241) |  |  | 3,952 |
Gain (loss) on sale of real estate and other investments |  |  | — |  |  | — |  |  | (175) |  |  | — |  |  | (175) |
Income (loss) from continuing operations |  |  | 5,334 |  |  | 5,054 |  |  | 1,630 |  |  | (8,241) |  |  | 3,777 |
(Loss) income from discontinued operations |  |  | — |  |  | 1,784 |  |  | 15,843 |  |  | — |  |  | 17,627 |
Net income (loss) |  |  | 5,334 |  |  | 6,838 |  |  | 17,473 |  |  | (8,241) |  |  | 21,404 |
Net income attributable to noncontrolling interests – Operating Partnership |  |  | — |  |  | — |  |  | — |  |  | (1,713) |  |  | (1,713) |
Net income attributable to noncontrolling interests – consolidated real estate entities |  |  | — |  |  | — |  |  | — |  |  | 1,515 |  |  | 1,515 |
Net income (loss) attributable to Investors Real Estate Trust |  |  | 5,334 |  |  | 6,838 |  |  | 17,473 |  |  | (8,439) |  |  | 21,206 |
Dividends to preferred shareholders |  |  | — |  |  | — |  |  | — |  |  | (5,757) |  |  | (5,757) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 5,334 |  | $ | 6,838 |  | $ | 17,473 |  | $ | (14,196) |  | $ | 15,449 |

| (1) |  | Offsite costs associated with property management and casualty-related amounts are included in the Corporate and Other column.

16

INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

MULTIFAMILY SUMMARY(1)

|  | Three Months Ended |
|  | 10/31/16 |  |  | 07/31/16 |  |  | 04/30/16 |  |  | 01/31/16 |  |  | 10/31/15 |
Number of Units |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 10,513 |  |  | 10,840 |  |  | 9,853 |  |  | 9,877 |  |  | 9,877 |
Non-Same-Store |  |  | 2,589 |  |  | 2,196 |  |  | 3,121 |  |  | 2,915 |  |  | 2,783 |
All Properties |  |  | 13,102 |  |  | 13,036 |  |  | 12,974 |  |  | 12,792 |  |  | 12,660 |
Average Investment Per Unit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 77,814 |  | $ | 77,371 |  | $ | 72,986 |  | $ | 72,696 |  | $ | 72,308 |
Non-Same-Store |  |  | 164,515 |  |  | 196,164 |  |  | 161,851 |  |  | 142,111 |  |  | 134,136 |
All Properties |  | $ | 94,946 |  | $ | 97,382 |  | $ | 94,092 |  | $ | 88,228 |  | $ | 84,701 |
Average Scheduled Rent(2) per Unit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 902 |  | $ | 888 |  | $ | 871 |  | $ | 877 |  | $ | 885 |
Non-Same-Store |  |  | 1,336 |  |  | 1,458 |  |  | 1,244 |  |  | 1,229 |  |  | 1,218 |
All Properties |  | $ | 988 |  | $ | 984 |  | $ | 960 |  | $ | 956 |  | $ | 952 |
Average Rental Rate per Unit(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 950 |  | $ | 928 |  | $ | 912 |  | $ | 916 |  | $ | 927 |
Non-Same-Store |  |  | 1,376 |  |  | 1,462 |  |  | 1,276 |  |  | 1,255 |  |  | 1,240 |
All Properties |  | $ | 1,035 |  | $ | 1,020 |  | $ | 1,000 |  | $ | 993 |  | $ | 992 |
Occupancy |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 92.9 | % |  | 93.0 | % |  | 94.8 | % |  | 94.9 | % |  | 95.4 | %
Non-Same-Store |  |  | 84.4 | % |  | 77.5 | % |  | 78.4 | % |  | 78.1 | % |  | 79.5 | %
All Properties |  |  | 91.2 | % |  | 90.4 | % |  | 90.8 | % |  | 91.1 | % |  | 91.9 | %
Operating Expenses as a % of Scheduled Rent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-Store |  |  | 44.9 | % |  | 47.0 | % |  | 44.4 | % |  | 45.9 | % |  | 47.1 | %
Non-Same-Store |  |  | 36.4 | % |  | 31.2 | % |  | 36.6 | % |  | 34.0 | % |  | 39.9 | %
All Properties |  |  | 42.7 | % |  | 43.0 | % |  | 42.0 | % |  | 42.4 | % |  | 45.2 | %
Capital Expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Recurring Capital Expenditures(2) per Unit |  | $ | 108 |  | $ | 105 |  | $ | 84 |  | $ | 142 |  | $ | 173 |
Total Non-Recurring Capital Expenditures per Unit - Same-Store |  | $ | 188 |  | $ | 200 |  | $ | 85 |  | $ | 77 |  | $ | 291 |
Value-Add Expenditures per Unit(4) |  | $ | 13,998 |  | $ | 8,102 |  | $ | 7,632 |  |  | n/a |  |  | n/a |

| (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 23.

| (3) |  | Average rental rate is defined as total revenues divided by the weighted average occupied units for the period.

| (4) |  | Cost per unit represents the average amount spent on completed and in-progress units during the period and also includes common area redevelopment costs at properties in the value add program.

During the three months ended October 31, 2016, thirteen multifamily properties were classified as held for sale and moved to non-same-store. Excluding these properties, the average investment per unit, average scheduled rent per unit and average rental rate per unit for non-same-store properties would have been $180,466, $1,437 and $1,475, respectively.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

HEALTHCARE LEASING SUMMARY (Same-Store Properties)

Healthcare Leasing Activity

During fiscal year 2017, we have executed new and renewal healthcare leases for our same-store properties on 21,843 square feet for the three months ended October 31, 2016 and 54,067 square feet for the six months ended October 31, 2016. Due to our leasing efforts, occupancy in our same-store healthcare portfolio has remained strong at 92.8% as of October 31, 2016.

The total leasing activity for our same-store healthcare properties, expressed in square feet of leases signed during the period, and the resulting occupancy levels, are as follows:

Three Months Ended October 31, 2016 and 2015

|  |  |  |  |  |  |  |  |  | Total |  |  |  |  |
|  | Square Feet of |  | Square Feet of |  | Square Feet of |  |  |  |  |
|  | New Leases(1) |  | Leases Renewed(1) |  | Leases Executed(1) |  | Occupancy |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Healthcare |  | 4,891 |  | 2,831 |  | 16,952 |  | 60,121 |  | 21,843 |  | 62,952 |  | 92.8 | % | 95.8 | %

| (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, 2016 and 2015

|  |  |  |  |  |  |  |  |  | Total |  |  |  |  |
|  | Square Feet of |  | Square Feet of |  | Square Feet of |  |  |  |  |
|  | New Leases(1) |  | Leases Renewed(1) |  | Leases Executed(1) |  | Occupancy |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Healthcare |  | 17,031 |  | 4,455 |  | 37,036 |  | 106,543 |  | 54,067 |  | 110,998 |  | 92.8 | % | 95.8 | %

| (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.

Healthcare 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 properties:

Three Months Ended October 31, 2016 and 2015

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated Tenant |  | Leasing |
|  | Square Feet of |  | Average Term |  | Average |  | Improvement Cost per |  | Commissions per |
|  | New Leases(1) |  | in Years |  | Effective Rent(2) |  | Square Foot(1) |  | Square Foot(1) |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Healthcare |  | 4,891 |  | 2,831 |  | 2.0 |  | 2.5 |  | $ | 22.66 |  | $ | 19.52 |  | $ | — |  | $ | 24.15 |  | $ | — |  | $ | 2.01 |

| (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.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

HEALTHCARE LEASING SUMMARY (Same-Store Properties)

Six Months Ended October 31, 2016 and 2015

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated Tenant | Leasing |
|  | Square Feet of | Average Term | Average | Improvement Cost per | Commissions per |
|  | New Leases(1) | in Years | Effective Rent(2) | Square Foot(1) | Square Foot(1) |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Healthcare |  | 17,031 |  | 4,455 |  | 8.5 |  | 7.2 |  | $ | 20.98 |  | $ | 21.02 |  | $ | 39.31 |  | $ | 28.11 |  | $ | 6.24 |  | $ | 4.92 |

| (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.

Healthcare Lease Renewals

The following table summarizes our lease renewal activity within our same-store healthcare segment (square feet data in thousands):

Three Months Ended October 31, 2016 and 2015

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Weighted Average |  | Tenant Improvement |  | Leasing |
|  | Square Feet of Leases |  | Percent of Expiring |  | Average Term |  | Growth (Decline) |  | Cost per Square |  | Commissions per |
|  | Renewed(1) |  | Leases Renewed(2) |  | in Years |  | in Effective Rents(3) |  | Foot(1) |  | Square Foot(1) |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Healthcare |  | 16,952 |  | 60,121 |  | 69.9 | % | 86.3 | % | 2.4 |  | 3.7 |  | 5.9 | % | (2.1) | % | $ | — |  | $ | 7.05 |  | $ | 0.54 |  | $ | 0.95 |

| (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, 2016 and 2015

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Weighted Average |  | Tenant Improvement |  | Leasing |
|  | Square Feet of Leases |  | Percent of Expiring |  | Average Term |  | Growth (Decline) |  | Cost per Square |  | Commissions per |
|  | Renewed(1) |  | Leases Renewed(2) |  | in Years |  | in Effective Rents(3) |  | Foot(1) |  | Square Foot(1) |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Healthcare |  | 37,036 |  | 106,543 |  | 94.5 | % | 86.4 | % | 3.0 |  | 5.4 |  | 5.2 | % | 6.0 | % | $ | 2.23 |  | $ | 10.62 |  | $ | 1.61 |  | $ | 3.28 |

| (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.

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Healthcare 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 healthcare properties, including square footage and annualized base rent for expiring leases, as of October 31, 2016.

|  |  |  |  |  | Percentage of Total |  | Annualized Base |  |  |  |  | Percentage of Total |
|  |  |  | Square Footage of |  | Healthcare |  | Rent of Expiring |  |  | Average |  | Healthcare |
Fiscal Year of Lease Expiration |  | # of Leases |  | Expiring Leases(2) |  | Leased Square Footage |  | Leases at Expiration(3) |  |  | Rental Rate |  | Annualized Base Rent |
2017(1) |  | 28 |  | 92,158 |  | 6.9 | % | $ | 1,769,381 |  | $ | 19.20 |  | 6.1 | %
2018 |  | 18 |  | 101,971 |  | 7.7 | % |  | 2,071,054 |  |  | 20.31 |  | 7.2 | %
2019 |  | 16 |  | 183,880 |  | 13.8 | % |  | 3,795,918 |  |  | 20.64 |  | 13.2 | %
2020 |  | 15 |  | 83,762 |  | 6.3 | % |  | 1,733,420 |  |  | 20.69 |  | 6.0 | %
2021 |  | 20 |  | 95,575 |  | 7.2 | % |  | 2,029,038 |  |  | 21.23 |  | 7.0 | %
2022 |  | 14 |  | 71,610 |  | 5.4 | % |  | 1,314,549 |  |  | 18.36 |  | 4.5 | %
2023 |  | 11 |  | 52,511 |  | 3.9 | % |  | 988,425 |  |  | 18.82 |  | 3.4 | %
2024 |  | 26 |  | 165,687 |  | 12.4 | % |  | 3,883,048 |  |  | 23.44 |  | 13.5 | %
2025 |  | 5 |  | 76,691 |  | 5.7 | % |  | 1,663,237 |  |  | 21.69 |  | 5.8 | %
2026 |  | 9 |  | 103,178 |  | 7.7 | % |  | 1,780,197 |  |  | 17.25 |  | 6.2 | %
Thereafter |  | 20 |  | 307,142 |  | 23.0 | % |  | 7,827,010 |  |  | 25.48 |  | 27.1 | %
Totals |  | 182 |  | 1,334,165 |  | 100.0 | % | $ | 28,855,277 |  | $ | 21.63 |  | 100.0 | %

| (1) |  | Includes month-to-month leases. As of October 31, 2016, month-to-month leases accounted for 50,078 square feet.

| (2) |  | Assuming that none of the tenants exercise renewal or termination options, and including leases renewed prior to expiration. Also excludes 1,361 square feet of space occupied by us.

| (3) |  | Annualized Base Rent is monthly scheduled rent as of October 1, 2016, multiplied by 12.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

10 LARGEST COMMERCIAL TENANTS – BASED ON ANNUALIZED BASE RENT(1)

as of October 31, 2016

|  |  |  | Average |  | % of Total |  |  |  | % of Aggregate |
|  |  |  | Remaining |  | Commercial |  | Aggregate |  | Occupied |
|  | Number of |  | Lease Term |  | Minimum |  | Rentable |  | Square |
Tenant |  | Properties |  | in Months |  | Rents |  | Square Feet |  | Feet |
Affiliates of Edgewood Vista |  | 25 |  | 43 |  | 30.1 | % | 1,331,903 |  | 34.0 | %
Fairview Health Services |  | 8 |  | 37 |  | 8.7 | % | 245,134 |  | 6.3 | %
St. Luke’s Hospital of Duluth, Inc. |  | 5 |  | 112 |  | 6.1 | % | 186,331 |  | 4.8 | %
PrairieCare Medical LLC |  | 1 |  | 144 |  | 5.2 | % | 100,292 |  | 2.6 | %
HealthEast Care System |  | 1 |  | 28 |  | 3.9 | % | 114,316 |  | 2.9 | %
Quality Manufacturing Corp |  | 1 |  | 75 |  | 2.3 | % | 427,798 |  | 10.9 | %
Allina Health |  | 4 |  | 45 |  | 1.9 | % | 53,132 |  | 1.4 | %
Children’s Hospitals & Clinics |  | 3 |  | 37 |  | 1.8 | % | 51,088 |  | 1.3 | %
Noran Neurological Clinic |  | 1 |  | 82 |  | 1.7 | % | 38,506 |  | 1.0 | %
Amerada Hess |  | 1 |  | 117 |  | 1.6 | % | 50,610 |  | 1.3 | %
Total/Weighted Average |  | 50 |  | 50 |  | 63.3 | % | 2,599,110 |  | 66.5 | %

(1)See Definitions on page 23.

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INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES

FISCAL 2017 ACQUISITIONS AND DEVELOPMENT SUMMARY

as of October 31, 2016

(dollars in thousands)

Development Placed in Service

|  |  |  |  |  |  |  |  |  | Occupancy at |  | Occupancy |  | Development |
|  |  |  |  |  | Date Placed in |  |  |  | Date Placed in |  | as of |  | Cost as of |
Property |  | Location |  | Segment |  | Service |  | Number of Units |  | Service |  | October 31, 2016 |  | October 31, 2016 |
71 France(1) |  | Edina, MN |  | Multifamily |  | 5/1/16 |  | 241 |  | 45.1 | % | 89.2 | % | $ | 72,276 |

| (1) |  | We are currently an approximately 52.6% partner in the joint venture entity constructing this project. The anticipated total cost amount given is the total cost to the joint venture entity.

Development in Progress

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (in fiscal years) |
|  |  |  |  |  |  |  | Percentage |  | (in thousands) |  | Anticipated |
|  |  |  |  |  | Number |  | Leased or |  | Anticipated |  | Costs as of |  | Construction |
Project Name and Location |  | Location |  | Planned Segment |  | of Units |  | Committed |  | Total Cost |  | October 31, 2016 |  | Completion |
Monticello Crossings |  | Monticello, MN |  | Multifamily |  | 202 units |  | 65.9 | % |  | 31,784 |  |  | 28,068 |  | 4Q 2017 |
Other |  |  |  | n/a |  | n/a |  | n/a |  |  | n/a |  |  | 3,283 |  | n/a |
|  |  |  |  |  |  |  |  |  | $ | 31,784 |  | $ | 31,351 |  |  |

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Definitions

October 31, 2016

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

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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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