EX-99.2 4 iret4302018exhibit992.htm EXHIBIT 99.2
Exhibit 99.2

Supplemental Financial and Operating Data
Table of Contents
April 30, 2018

| Page
Company Background | S-2
Key Financial Data |
Condensed Consolidated Balance Sheets | S-4
Condensed Consolidated Statements of Operations | S-5
Funds From Operations | S-6
Adjusted EBITDA | S-7
Debt and Capital Analysis |
Debt Analysis | S-8
Capital Analysis | S-9
Portfolio Analysis |
Net Operating Income Detail | S-10
Same-Store Comparison | S-11
Portfolio Summary | S-14
Same-Store Capital Expenditures | S-15
Growth Analysis |
Fiscal 2018 Acquisition Summary | S-16
Definitions | S-17

| S-1 |

Company Background
Fourth Quarter Fiscal 2018
IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of April 30, 2018, IRET owned interests in 90 communities consisting of 14,176 apartment homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET PRC, respectively).
Company Snapshot
(as of April 30, 2018)

Company Headquarters | Minot, North Dakota
Fiscal Year-End | April 30
Reportable Segment | Multifamily
Total Apartment Communities | 90
Total Apartment Homes | 14,176
Common Shares Outstanding (thousands) | 119,526
Limited Partnership Units Outstanding (thousands) | 14,099
Common Share Distribution – Quarter/Annualized | $0.07/$0.28
Annualized Dividend Yield | 5.3%
Total Capitalization | $1.5 billion

Common Shares and Limited Partnership Units outstanding as of June 20, 2018, were 119,406,963 and 14,098,506, respectively.
Investor Information
(as of June 27, 2018)
Board of Trustees

Jeffrey P. Caira | Trustee and Chair
Michael T. Dance | Trustee, Chair of Audit Committee
Mark O. Decker, Jr. | Trustee, President, Chief Executive Officer and Chief Investment Officer
Emily Nagle Green | Trustee
Linda J. Hall | Trustee, Chair of Compensation Committee
Terrance P. Maxwell | Trustee
Jeffrey L. Miller | Trustee, Chair of the Nominating and Governance Committee
John A. Schissel | Trustee, Chair of Capital Markets Committee
Mary J. Twinem | Trustee

Management

Mark O. Decker, Jr. | President, Chief Executive Officer, and Chief Investment Officer; Trustee
John A. Kirchmann | Executive Vice President and Chief Financial Officer
Anne Olson | Executive Vice President and Chief Operating Officer, General Counsel and Secretary
Nancy B. Andersen | Senior Vice President and Chief Accounting Officer
Grant Campbell | Senior Vice President - Investments
Sue Picotte | Senior Vice President - Asset Management & Operations Support
Shawnee Tharp | Senior Vice President - Property Operations

Executive Offices: | Investor Relations Contact:
800 LaSalle Avenue | Jon Bishop
Suite 1600 | 701-837-7104
Minneapolis, MN 55402 | IR@iret.com
Trading Symbol for Common Shares: IRET |
Trading Symbol for Series C Preferred Shares: IRET PRC |
Stock Exchange Listing: NYSE |

| S-2 |

Common Share Data (NYSE: IRET)

|  | 4th Quarter |  | 3rd Quarter |  | 2nd Quarter |  | 1st Quarter |  | 4th Quarter
|  | Fiscal Year 2018 |  | Fiscal Year 2018 |  | Fiscal Year 2018 |  | Fiscal Year 2018 |  | Fiscal Year 2017
High Closing Price |  | $ | 5.58 |  |  | $ | 6.06 |  |  | $ | 6.32 |  |  | $ | 6.72 |  |  | $ | 6.61 |
Low Closing Price |  | $ | 4.65 |  |  | $ | 5.52 |  |  | $ | 5.81 |  |  | $ | 5.64 |  |  | $ | 5.67 |
Average Closing Price |  | $ | 5.09 |  |  | $ | 5.80 |  |  | $ | 6.09 |  |  | $ | 6.07 |  |  | $ | 6.09 |
Closing Price at end of quarter |  | $ | 5.33 |  |  | $ | 5.67 |  |  | $ | 5.85 |  |  | $ | 6.22 |  |  | $ | 5.91 |
Common Share Distributions – annualized |  | $ | 0.28 |  |  | $ | 0.28 |  |  | $ | 0.28 |  |  | $ | 0.28 |  |  | $ | 0.28 |
Closing Dividend Yield – annualized |  | 5.3 | % |  | 4.9 | % |  | 4.8 | % |  | 4.5 | % |  | 4.7 | %
Closing common shares outstanding (thousands) |  | 119,526 |  |  | 120,035 |  |  | 120,188 |  |  | 120,587 |  |  | 121,199 |
Closing limited partnership units outstanding (thousands) |  | 14,099 |  |  | 14,168 |  |  | 14,618 |  |  | 14,657 |  |  | 15,617 |
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands) |  | $ | 712,221 |  |  | $ | 760,931 |  |  | $ | 788,615 |  |  | $ | 841,218 |  |  | $ | 808,583 |

This Supplemental Operating and Financial Data contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Froward-looking statements are typically identified by the use of terms such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of those words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be achieved.
Such risks, uncertainties and other factors that might cause such differences include, but are not limited to: economic conditions in the markets where we own properties or markets in which we may invest in the future; rental conditions in our markets, including occupancy levels and rental rates, our potential inability to renew tenants or obtain new tenants upon expiration of existing leases, changes in tax and housing laws, or other factors; adverse changes in real estate markets, including the extent of future demand for multifamily apartment homes in our significant markets, barriers of entry into new markets, limitations on our ability to increase rental rates, our ability to identify and consummate attractive acquisitions on favorable terms, our ability to consummate any planned dispositions in a timely manner, our ability to reinvest sales proceeds successfully, and our ability to accommodate any significant decline in the market value of real estate serving as collateral for our mortgage obligations; inability to succeed in any new markets we may enter; failure of new acquisitions to achieve anticipated results or be efficiently integrated; inability to complete lease-up of our projects on schedule and on budget; inability to sell our non-core properties on terms that are acceptable; failure to reinvest proceeds from sales of properties into tax-deferred exchanges, which could necessitate special dividend and tax protection payments; the need to fund capital expenditures out of cash flow; the need to reduce the dividends on our common shares; financing risks, including our potential inability to obtain debt or equity financing on favorable terms, or at all; level and volatility of interest or capitalization rates or capital market conditions; changes in operating costs, including real estate taxes, utilities, and insurance costs; the availability and cost of casualty insurance for losses; inability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, inability of the Operating Partnership to satisfy the rules to maintain its status as a partnership for federal income tax purposes, and the risk of changes in laws affecting REITs; inability to attract and retain qualified personnel; cyber liability or potential liability for breaches of our privacy or information security systems; inability to comply with environmental laws and regulations; 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 the fiscal year ended April 30, 2018 subsequent quarterly reports on Form 10-Q, and other public filings. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

| S-3 |

IRET
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)

|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017
ASSETS |  |  |  |  |  |  |  |  |  |
Real estate investments |  |  |  |  |  |  |  |  |  |
Property owned |  | $ | 1,669,764 |  |  | $ | 1,568,725 |  |  | $ | 1,510,890 |  |  | $ | 1,424,251 |  |  | $ | 1,358,529 |
Less accumulated depreciation |  | (311,324 | ) |  | (304,149 | ) |  | (292,976 | ) |  | (280,563 | ) |  | (255,599 | )
|  | 1,358,440 |  |  | 1,264,576 |  |  | 1,217,914 |  |  | 1,143,688 |  |  | 1,102,930 |
Unimproved land |  | 11,476 |  |  | 15,123 |  |  | 15,216 |  |  | 15,195 |  |  | 18,455 |
Mortgage loans receivable |  | 10,329 |  |  | 10,329 |  |  | 10,329 |  |  | — |  |  | — |
Total real estate investments |  | 1,380,245 |  |  | 1,290,028 |  |  | 1,243,459 |  |  | 1,158,883 |  |  | 1,121,385 |
Assets held for sale and assets of discontinued operations |  | — |  |  | — |  |  | 239,688 |  |  | 280,083 |  |  | 283,023 |
Cash and cash equivalents |  | 11,891 |  |  | 22,666 |  |  | 42,464 |  |  | 23,801 |  |  | 28,819 |
Restricted cash |  | 4,225 |  |  | 121,337 |  |  | 3,782 |  |  | 3,713 |  |  | 27,981 |
Other assets |  | 30,297 |  |  | 21,664 |  |  | 21,634 |  |  | 15,870 |  |  | 13,306 |
TOTAL ASSETS |  | $ | 1,426,658 |  |  | $ | 1,455,695 |  |  | $ | 1,551,027 |  |  | $ | 1,482,350 |  |  | $ | 1,474,514 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY |  |  |  |  |  |  |  |  |  |
LIABILITIES |  |  |  |  |  |  |  |  |  |
Liabilities held for sale and liabilities of discontinued operations |  | $ | — |  |  | $ | 2,016 |  |  | $ | 95,193 |  |  | $ | 127,413 |  |  | $ | 130,904 |
Accounts payable and accrued expenses |  | 29,018 |  |  | 33,690 |  |  | 32,581 |  |  | 34,248 |  |  | 35,566 |
Revolving line of credit |  | 124,000 |  |  | 67,000 |  |  | 247,500 |  |  | 125,900 |  |  | 57,050 |
Term loan payable, net of loan costs |  | 69,514 |  |  | 69,483 |  |  | — |  |  | — |  |  | — |
Mortgages payable, net of loan costs |  | 509,919 |  |  | 553,388 |  |  | 561,798 |  |  | 565,705 |  |  | 565,978 |
Construction debt |  | — |  |  | 86 |  |  | 21,649 |  |  | 20,134 |  |  | 41,741 |
TOTAL LIABILITIES |  | 732,451 |  |  | 725,663 |  |  | 958,721 |  |  | 873,400 |  |  | 831,239 |
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES |  | 6,708 |  |  | 6,644 |  |  | 6,812 |  |  | 7,010 |  |  | 7,181 |
EQUITY |  |  |  |  |  |  |  |  |  |
Series B Preferred Shares of Beneficial Interest |  | — |  |  | — |  |  | — |  |  | 111,357 |  |  | 111,357 |
Series C Preferred Shares of Beneficial Interest |  | 99,456 |  |  | 99,456 |  |  | 99,467 |  |  | — |  |  | — |
Common Shares of Beneficial Interest |  | 907,843 |  |  | 910,173 |  |  | 910,683 |  |  | 912,625 |  |  | 916,121 |
Accumulated distributions in excess of net income |  | (395,669 | ) |  | (364,684 | ) |  | (490,612 | ) |  | (488,535 | ) |  | (466,541 | )
Accumulated other comprehensive income |  | 1,779 |  |  | 359 |  |  | — |  |  | — |  |  | — |
Total shareholders’ equity |  | 613,409 |  |  | 645,304 |  |  | 519,538 |  |  | 535,447 |  |  | 560,937 |
Noncontrolling interests – Operating Partnership |  | 73,012 |  |  | 76,915 |  |  | 64,291 |  |  | 64,789 |  |  | 73,233 |
Noncontrolling interests – consolidated real estate entities |  | 1,078 |  |  | 1,169 |  |  | 1,665 |  |  | 1,704 |  |  | 1,924 |
Total equity |  | 687,499 |  |  | 723,388 |  |  | 585,494 |  |  | 601,940 |  |  | 636,094 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY |  | $ | 1,426,658 |  |  | $ | 1,455,695 |  |  | $ | 1,551,027 |  |  | $ | 1,482,350 |  |  | $ | 1,474,514 |

| S-4 |

IRET
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share amounts)

|  | Three Months Ended |  |  | Twelve Months Ended
OPERATING RESULTS |  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017 |  |  | 4/30/2018 |  | 4/30/2017
Real estate revenue |  | $ | 44,185 |  |  | $ | 42,716 |  |  | $ | 41,866 |  |  | $ | 40,978 |  |  | $ | 42,811 |  |  |  | $ | 169,745 |  |  | $ | 160,104 |
Real estate expenses |  | 18,734 |  |  | 18,055 |  |  | 18,718 |  |  | 17,527 |  |  | 16,442 |  |  |  | 73,034 |  |  | 64,326 |
Net operating income |  | 25,451 |  |  | 24,661 |  |  | 23,148 |  |  | 23,451 |  |  | 26,369 |  |  |  | 96,711 |  |  | 95,778 |
Property management expenses |  | (1,411 | ) |  | (1,387 | ) |  | (1,372 | ) |  | (1,356 | ) |  | (1,239 | ) |  |  | (5,526 | ) |  | (5,046 | )
Casualty gain (loss) |  | 155 |  |  | (55 | ) |  | (115 | ) |  | (485 | ) |  | 51 |  |  |  | (500 | ) |  | (414 | )
Depreciation/amortization |  | (21,072 | ) |  | (18,390 | ) |  | (17,270 | ) |  | (25,338 | ) |  | (11,060 | ) |  |  | (82,070 | ) |  | (44,253 | )
Impairment of real estate investments |  | (17,809 | ) |  | — |  |  | — |  |  | (256 | ) |  | (2,875 | ) |  |  | (18,065 | ) |  | (57,028 | )
General and administrative expenses |  | (4,093 | ) |  | (3,011 | ) |  | (3,118 | ) |  | (4,002 | ) |  | (4,728 | ) |  |  | (14,203 | ) |  | (15,871 | )
Acquisition and investment related costs |  | (30 | ) |  | — |  |  | — |  |  | — |  |  | (3,224 | ) |  |  | (51 | ) |  | (3,276 | )
Interest expense |  | (8,302 | ) |  | (9,236 | ) |  | (8,509 | ) |  | (8,131 | ) |  | (8,281 | ) |  |  | (34,178 | ) |  | (34,314 | )
Loss on extinguishment of debt |  | (122 | ) |  | (285 | ) |  | (334 | ) |  | (199 | ) |  | (1,193 | ) |  |  | (940 | ) |  | (1,651 | )
Interest and other income |  | 592 |  |  | 433 |  |  | 255 |  |  | 228 |  |  | 461 |  |  |  | 1,508 |  |  | 1,146 |
Income (loss) before gain on sale of real estate and other investments and income from discontinued operations |  | (26,641 | ) |  | (7,270 | ) |  | (7,315 | ) |  | (16,088 | ) |  | (5,719 | ) |  |  | (57,314 | ) |  | (64,929 | )
Gain on sale of real estate and other investments |  | 2,285 |  |  | 12,387 |  |  | 5,324 |  |  | 124 |  |  | 7,409 |  |  |  | 20,120 |  |  | 18,701 |
Income (loss) from continuing operations |  | (24,356 | ) |  | 5,117 |  |  | (1,991 | ) |  | (15,964 | ) |  | 1,690 |  |  |  | (37,194 | ) |  | (46,228 | )
Income from discontinued operations |  | 197 |  |  | 146,811 |  |  | 15,130 |  |  | 2,685 |  |  | 31,950 |  |  |  | 164,823 |  |  | 76,753 |
Net income (loss) |  | (24,159 | ) |  | 151,928 |  |  | 13,139 |  |  | (13,279 | ) |  | 33,640 |  |  |  | 127,629 |  |  | 30,525 |
Net (income) loss attributable to noncontrolling interest – Operating Partnership |  | 2,663 |  |  | (16,236 | ) |  | (773 | ) |  | 1,644 |  |  | (3,656 | ) |  |  | (12,702 | ) |  | (4,059 | )
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities |  | 622 |  |  | 413 |  |  | 455 |  |  | 371 |  |  | 296 |  |  |  | 1,861 |  |  | 16,881 |
Net income (loss) attributable to controlling interests |  | (20,874 | ) |  | 136,105 |  |  | 12,821 |  |  | (11,264 | ) |  | 30,280 |  |  |  | 116,788 |  |  | 43,347 |
Dividends to preferred shareholders |  | (1,705 | ) |  | (1,766 | ) |  | (2,812 | ) |  | (2,286 | ) |  | (2,286 | ) |  |  | (8,569 | ) |  | (10,546 | )
Redemption of Preferred Shares |  | — |  |  | (8 | ) |  | (3,649 | ) |  | — |  |  | — |  |  |  | (3,657 | ) |  | (1,435 | )
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | (22,579 | ) |  | $ | 134,331 |  |  | $ | 6,360 |  |  | $ | (13,550 | ) |  | $ | 27,994 |  |  |  | $ | 104,562 |  |  | $ | 31,366 |
Per Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) earnings per common share from continuing operations – basic & diluted |  | $ | (0.19 | ) |  | $ | 0.03 |  |  | $ | (0.06 | ) |  | $ | (0.13 | ) |  | $ | — |  |  |  | $ | (0.36 | ) |  | $ | (0.30 | )
Earnings per common share from discontinued operations – basic & diluted |  | — |  |  | 1.09 |  |  | 0.11 |  |  | 0.02 |  |  | 0.23 |  |  |  | 1.23 |  |  | 0.56 |
Net (loss) income per common share – basic & diluted |  | $ | (0.19 | ) |  | $ | 1.12 |  |  | $ | 0.05 |  |  | $ | (0.11 | ) |  | $ | 0.23 |  |  |  | $ | 0.87 |  |  | $ | 0.26 |
Percentage of Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate expenses |  | 42.4 | % |  | 42.3 | % |  | 44.7 | % |  | 42.8 | % |  | 38.4 | % |  |  | 43.0 | % |  | 40.2 | %
Depreciation/amortization |  | 47.7 | % |  | 43.1 | % |  | 41.3 | % |  | 61.8 | % |  | 25.8 | % |  |  | 48.3 | % |  | 27.6 | %
General and administrative expenses |  | 9.3 | % |  | 7.0 | % |  | 7.4 | % |  | 9.8 | % |  | 11.0 | % |  |  | 8.4 | % |  | 9.9 | %
Interest |  | 18.8 | % |  | 21.6 | % |  | 20.3 | % |  | 19.8 | % |  | 19.3 | % |  |  | 20.1 | % |  | 21.4 | %
Income from discontinued operations |  | 0.4 | % |  | 343.7 | % |  | 36.1 | % |  | 6.6 | % |  | 74.6 | % |  |  | 97.1 | % |  | 47.9 | %
Net (loss) income |  | (54.7 | )% |  | 355.7 | % |  | 31.4 | % |  | (32.4 | )% |  | 78.6 | % |  |  | 75.2 | % |  | 19.1 | %

| S-5 |

IRET
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO
IRET TO FFO AND CORE FFO (unaudited)
(in thousands, except per share and unit amounts)

|  | Three Months Ended |  |  | Twelve Months Ended
|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017 |  |  | 4/30/2018 |  | 4/30/2017
Funds From Operations(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to controlling interests |  | $ | (20,874 | ) |  | $ | 136,105 |  |  | $ | 12,821 |  |  | $ | (11,264 | ) |  | $ | 30,280 |  |  |  | $ | 116,788 |  |  | $ | 43,347 |
Less dividends to preferred shareholders |  | (1,705 | ) |  | (1,766 | ) |  | (2,812 | ) |  | (2,286 | ) |  | (2,286 | ) |  |  | (8,569 | ) |  | (10,546 | )
Less redemption of preferred shares |  | — |  |  | (8 | ) |  | (3,649 | ) |  | — |  |  | — |  |  |  | (3,657 | ) |  | (1,435 | )
Net income (loss) available to common shareholders |  | (22,579 | ) |  | 134,331 |  |  | 6,360 |  |  | (13,550 | ) |  | 27,994 |  |  |  | 104,562 |  |  | 31,366 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  | (2,663 | ) |  | 16,236 |  |  | 773 |  |  | (1,644 | ) |  | 3,656 |  |  |  | 12,702 |  |  | 4,059 |
Depreciation and amortization of real property |  | 20,269 |  |  | 19,017 |  |  | 19,894 |  |  | 28,119 |  |  | 13,222 |  |  |  | 87,299 |  |  | 52,564 |
Impairment of real estate investments attributable to controlling interests |  | 15,192 |  |  | — |  |  | — |  |  | 256 |  |  | 2,875 |  |  |  | 15,448 |  |  | 42,065 |
Gain on depreciable property sales |  | (2,210 | ) |  | (163,791 | ) |  | (17,562 | ) |  | (124 | ) |  | (37,517 | ) |  |  | (183,687 | ) |  | (74,847 | )
FFO applicable to common shares and Units |  | $ | 8,009 |  |  | $ | 5,793 |  |  | $ | 9,465 |  |  | $ | 13,057 |  |  | $ | 10,230 |  |  |  | $ | 36,324 |  |  | $ | 55,207 |
FFO per share and unit – basic and diluted |  | $ | 0.06 |  |  | $ | 0.04 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.07 |  |  |  | $ | 0.27 |  |  | $ | 0.40 |
Adjustments to Core FFO: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lease termination fees |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,244 | ) |  |  | — |  |  | (3,251 | )
Loss on extinguishment of debt |  | 122 |  |  | 6,787 |  |  | 340 |  |  | 199 |  |  | 2,910 |  |  |  | 7,448 |  |  | 4,889 |
Redemption of Preferred Shares |  | — |  |  | 8 |  |  | 3,649 |  |  | — |  |  | — |  |  |  | 3,657 |  |  | 1,435 |
Transition costs, including severance |  | 301 |  |  | — |  |  | 186 |  |  | 464 |  |  | 2,612 |  |  |  | 951 |  |  | 2,612 |
Impairment of nondepreciable assets |  | 2,617 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 2,617 |  |  | — |
Development pursuit and other write-offs |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,224 |  |  |  | — |  |  | 3,224 |
Core FFO applicable to common shares and Units |  | $ | 11,049 |  |  | $ | 12,588 |  |  | $ | 13,640 |  |  | $ | 13,720 |  |  | $ | 15,732 |  |  |  | $ | 50,997 |  |  | $ | 64,116 |
Core FFO per share and unit – basic and diluted |  | $ | 0.08 |  |  | $ | 0.09 |  |  | $ | 0.10 |  |  | $ | 0.10 |  |  | $ | 0.11 |  |  |  | $ | 0.38 |  |  | $ | 0.47 |
Weighted average shares and units |  | 133,703 |  |  | 134,175 |  |  | 134,767 |  |  | 135,549 |  |  | 136,952 |  |  |  | 134,594 |  |  | 137,299 |

(1) | See Definitions section.

| S-6 |

IRET
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO
IRET TO ADJUSTED EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION, AND AMORTIZATION (ADJUSTED EBITDA) (unaudited)
(in thousands)

|  | Three Months Ended |  |  | Twelve Months Ended
|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017 |  |  | 4/30/2018 |  | 4/30/2017
Adjusted EBITDA(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to controlling interests |  | $ | (20,874 | ) |  | $ | 136,105 |  |  | $ | 12,821 |  |  | $ | (11,264 | ) |  | $ | 30,280 |  |  |  | $ | 116,788 |  |  | $ | 43,347 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interests – Operating Partnership |  | (2,663 | ) |  | 16,236 |  |  | 773 |  |  | (1,644 | ) |  | 3,656 |  |  |  | 12,702 |  |  | 4,059 |
Income (loss) before noncontrolling interests – Operating Partnership |  | (23,537 | ) |  | 152,341 |  |  | 13,594 |  |  | (12,908 | ) |  | 33,936 |  |  |  | 129,490 |  |  | 47,406 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | 7,884 |  |  | 9,569 |  |  | 9,523 |  |  | 9,703 |  |  | 10,303 |  |  |  | 36,679 |  |  | 45,942 |
Loss on extinguishment of debt |  | 122 |  |  | 6,787 |  |  | 340 |  |  | 199 |  |  | 2,910 |  |  |  | 7,448 |  |  | 4,889 |
Depreciation/amortization related to real estate investments |  | 20,347 |  |  | 19,100 |  |  | 19,977 |  |  | 28,215 |  |  | 13,280 |  |  |  | 87,639 |  |  | 52,774 |
Amortization related to real estate revenues(2) |  | — |  |  | — |  |  | — |  |  | — |  |  | 20 |  |  |  | — |  |  | 95 |
Impairment of unimproved land |  | 2,617 |  |  | — |  |  | — |  |  | — |  |  | 3,508 |  |  |  | 2,617 |  |  | 3,508 |
Impairment of real estate investments attributable to controlling interests |  | 15,192 |  |  | — |  |  | — |  |  | 256 |  |  | 2,875 |  |  |  | 15,448 |  |  | 42,065 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | (569 | ) |  | (408 | ) |  | (316 | ) |  | (564 | ) |  | (557 | ) |  |  | (1,857 | ) |  | (2,545 | )
Gain on sale of real estate and other investments |  | (2,210 | ) |  | (163,791 | ) |  | (17,562 | ) |  | (124 | ) |  | (37,517 | ) |  |  | (183,687 | ) |  | (74,847 | )
Adjusted EBITDA |  | $ | 19,846 |  |  | $ | 23,598 |  |  | $ | 25,556 |  |  | $ | 24,777 |  |  | $ | 28,758 |  |  |  | $ | 93,777 |  |  | $ | 119,287 |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA(1)/Interest expense |  | 2.39 | x |  | 2.36 | x |  | 2.57 | x |  | 2.45 | x |  | 2.45 | x |  |  | 2.45 | x |  | 2.52 | x
Adjusted EBITDA(1)/Interest expense plus preferred distributions |  | 1.98 | x |  | 2.01 | x |  | 2.00 | x |  | 2.00 | x |  | 2.00 | x |  |  | 1.99 | x |  | 2.05 | x

(1) | See Definitions section.

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

| S-7 |

IRET
DEBT ANALYSIS
(in thousands)
Debt Maturity Schedule
Annual Expirations

|  | Future Maturities of Debt (1)
Fiscal Year |  | Fixed Debt |  | Variable Debt |  | Total Debt |  | Weighted Average (2) |  | % of Total Debt
2019 |  | $ | 14,393 |  |  | $ | — |  |  | $ | 14,393 |  |  | 5.42 | % |  | 2.00 | %
2020 |  | 85,930 |  |  | 22,739 |  |  | 108,669 |  |  | 5.76 | % |  | 15.40 | %
2021 |  | 55,173 |  |  | — |  |  | 55,173 |  |  | 5.05 | % |  | 7.80 | %
2022 |  | 102,066 |  |  | — |  |  | 102,066 |  |  | 5.23 | % |  | 14.40 | %
2023 |  | 28,055 |  |  | — |  |  | 28,055 |  |  | 4.13 | % |  | 4.00 | %
Thereafter |  | 203,784 |  |  | — |  |  | 203,784 |  |  | 3.79 | % |  | 28.90 | %
Total secured maturing debt |  | 489,401 |  |  | 22,739 |  |  | 512,140 |  |  | 4.69 | % |  | 72.50 | %
Unsecured line of credit |  | — |  |  | 124,000 |  |  | 124,000 |  |  | 3.63 | % |  | 17.6 | %
Unsecured term loan (3) |  | 70,000 |  |  | — |  |  | 70,000 |  |  | 3.86 | % |  | 9.9 | %
Total debt |  | $ | 559,401 |  |  | $ | 146,739 |  |  | $ | 706,140 |  |  | 4.42 | % |  | 100.0 | %

(1) | Includes line of credit and term loan.

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

(3) | Term loan has a variable interest rate that is hedged with an interest rate swap and matures January 31, 2023.

|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017
Debt Balances Outstanding (1) |  |  |  |  |  |  |  |  |  |
Secured fixed rate |  | $ | 489,401 |  |  | $ | 494,874 |  |  | $ | 593,854 |  |  | $ | 605,028 |  |  | $ | 629,535 |
Secured variable rate |  | 22,739 |  |  | 61,001 |  |  | 86,672 |  |  | 100,388 |  |  | 99,445 |
Unsecured line of credit |  | 124,000 |  |  | 67,000 |  |  | 247,500 |  |  | 125,900 |  |  | 57,050 |
Unsecured term loan |  | 70,000 |  |  | 70,000 |  |  | — |  |  | — |  |  | — |
Debt total |  | $ | 706,140 |  |  | $ | 692,875 |  |  | $ | 928,026 |  |  | $ | 831,316 |  |  | $ | 786,030 |
Weighted Average Interest Rate Secured |  | 4.69 | % |  | 4.63 | % |  | 4.63 | % |  | 4.62 | % |  | 4.63 | %
Line of Credit Rate |  | 3.63 | % |  | 3.45 | % |  | 3.08 | % |  | 2.98 | % |  | 2.74 | %
Term Loan Rate |  | 3.86 | % |  | 4.01 | % |  | — | % |  | — | % |  | — | %

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

Debt Maturity by Quarter for the Next Two Fiscal Years

Fiscal Year |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | Total
2019 |  | $ | 2,957 |  |  | $ | 11,436 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,393 |
2020 |  | — |  |  | 63,346 |  |  | 15,511 |  |  | 29,812 |  |  | 108,669 |
|  |  |  |  |  |  |  |  |  | $ | 123,062 |

| S-8 |

IRET
CAPITAL ANALYSIS
(in thousands, except per share and unit amounts)

|  | Three Months Ended
|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017
Equity Capitalization |  |  |  |  |  |  |  |  |  |
Common shares outstanding |  | 119,526 |  |  | 120,035 |  |  | 120,188 |  |  | 120,587 |  |  | 121,199 |
Operating partnership (OP) units outstanding |  | 14,099 |  |  | 14,168 |  |  | 14,618 |  |  | 14,657 |  |  | 15,617 |
Total common shares and OP units outstanding |  | 133,625 |  |  | 134,203 |  |  | 134,806 |  |  | 135,244 |  |  | 136,816 |
Market price per common share (closing price at end of period) |  | $ | 5.33 |  |  | $ | 5.67 |  |  | $ | 5.85 |  |  | $ | 6.22 |  |  | $ | 5.91 |
Equity capitalization-common shares and OP units |  | 712,221 |  |  | 760,931 |  |  | 788,615 |  |  | 841,218 |  |  | 808,583 |
Recorded book value of preferred shares |  | 99,456 |  |  | 99,456 |  |  | 99,467 |  |  | 111,357 |  |  | 111,357 |
Total equity capitalization |  | $ | 811,677 |  |  | $ | 860,387 |  |  | $ | 888,082 |  |  | $ | 952,575 |  |  | $ | 919,940 |
Debt Capitalization |  |  |  |  |  |  |  |  |  |
Total debt |  | 706,140 |  |  | 692,875 |  |  | 927,968 |  |  | 839,134 |  |  | 793,827 |
Total capitalization |  | $ | 1,517,817 |  |  | $ | 1,553,262 |  |  | $ | 1,816,050 |  |  | $ | 1,791,709 |  |  | $ | 1,713,767 |
Total debt to total capitalization |  | 0.47:1 |  |  | 0.45:1 |  |  | 0.51:1 |  |  | 0.47:1 |  |  | 0.46:1 |

|  | Twelve Months Ended |  |  | Three Months Ended
|  | 4/30/2018 |  | 4/30/2017 |  |  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017
Earnings to fixed charges |  | (2 | ) |  | (3 | ) |  |  | (4 | ) |  | 1.56 | x |  | (5 | ) |  | (6 | ) |  | 1.20 | x
Earnings to combined fixed charges and preferred distributions |  | (2 | ) |  | (3 | ) |  |  | (4 | ) |  | 1.33 | x |  | (5 | ) |  | (6 | ) |  | (7 | )
Debt service coverage ratio |  | 1.79 | x |  | 1.67 | x |  |  | 1.81 | x |  | 1.78 | x |  | 1.84 | x |  | 1.75 | x |  | 1.69 | x
Distribution Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares and units outstanding at record date |  | 133,625 |  |  | 137,723 |  |  |  | 133,625 |  |  | 134,203 |  |  | 134,806 |  |  | 135,830 |  |  | 137,723 |
Total common distribution paid |  | $ | 37,785 |  |  | $ | 63,360 |  |  |  | $ | 9,395 |  |  | $ | 9,420 |  |  | $ | 9,462 |  |  | $ | 9,509 |  |  | $ | 9,641 |
Common distribution per share and unit(8) |  | $ | 0.28 |  |  | $ | 0.40 |  |  |  | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.07 |
Payout ratio (FFO per share and unit basis)(1) |  | 101.4 | % |  | 100.0 | % |  |  | 104.9 | % |  | 175.0 | % |  | 100.0 | % |  | 70.0 | % |  | 100.0 | %

(1) | Payout ratio (FFO per share and unit basis) is 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.

(2) | Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $35.0 million and $43.6 million, respectively. Excluding non-cash depreciation charges related to a change in depreciable lives of $14.4 million and non-cash asset impairment charges of $18.1 million in the twelve months ended April 30, 2018, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been .93x and .76x, respectively, for the twelve months ended April 30, 2018.

(3) | Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $29.5 million and $40.1 million, respectively. Excluding non-cash asset impairment and loss on sale charges of $57.0 million in the twelve months ended April 30, 2017, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 1.59x and 1.30x, respectively, for the twelve months ended April 30, 2017.

(4) | Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $23.7 million and $25.4 million, respectively. Excluding non-cash asset impairment charges of $17.8 million in the three months ended April 30, 2018, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been .29x and .24x, respectively, for the three months ended April 30, 2018.

(5) | Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $1.5 million and $4.3 million, respectively. The ratio of earnings to fixed charges and earnings to combined fixed charges and preferred distributions was .85x and .67x, respectively, for the three months ended October 31, 2017.

(6) | Earnings were inadequate to cover (a) fixed charges and (b) combined fixed charges and preferred distributions by $15.5 million and $17.8 million, respectively. Excluding non-cash depreciation charges related to a change in depreciable lives of $14.4 million in the three months ended July 31, 2017, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 0.92x and 0.75x, respectively, for the three months ended July 31, 2017.

(7) | Earnings were inadequate to cover combined fixed charges and preferred distributions by $0.3 million. The ratio of earnings to combined fixed charges and preferred distributions was .98x for the three months ended April 30, 2017.

(8) | Common distribution per share and unit for the twelve months ended April 30, 2017 includes a special distribution of $0.06.

| S-9 |

IRET
NET OPERATING INCOME DETAIL
(in thousands)

|  | Three Months Ended April 30, |  |  | Year Ended April 30,
|  | 2018 |  | 2017 |  | $ Change |  | % Change |  |  |  | 2018 |  | 2017 |  | $ Change |  | % Change |
Multifamily |  |  |  |  |  |  |  |  |  |  |
Real estate revenue |  |  |  |  |  |  |  |  |  |  |
Same-store |  | $ | 32,054 |  | $ | 30,479 |  | $ | 1,575 |  | 5.2 | % |  |  | $ | 126,415 |  | $ | 121,252 |  | $ | 5,163 |  | 4.3 | %
Non-same-store |  | 10,306 |  | 5,749 |  | 4,557 |  | 79.3 | % |  |  | 33,568 |  | 20,962 |  | 12,606 |  | 60.1 | %
Other properties and dispositions |  | 1,825 |  | 6,583 |  | (4,758 | ) | (72.3 | )% |  |  | 9,762 |  | 17,890 |  | (8,128 | ) | (45.4 | )%
Total |  | 44,185 |  | 42,811 |  | 1,374 |  | 3.2 | % |  |  | 169,745 |  | 160,104 |  | 9,641 |  | 6.0 | %
Real estate expenses |  |  |  |  |  |  |  |  |  |  |
Same-store |  | 13,939 |  | 13,173 |  | 766 |  | 5.8 | % |  |  | 56,773 |  | 51,862 |  | 4,911 |  | 9.5 | %
Non-same-store |  | 4,225 |  | 2,547 |  | 1,678 |  | 65.9 | % |  |  | 13,687 |  | 9,033 |  | 4,654 |  | 51.5 | %
Other properties and dispositions |  | 570 |  | 722 |  | (152 | ) | (21.1 | )% |  |  | 2,574 |  | 3,431 |  | (857 | ) | (25.0 | )%
Total |  | 18,734 |  | 16,442 |  | 2,292 |  | 13.9 | % |  |  | 73,034 |  | 64,326 |  | 8,708 |  | 13.5 | %
Net operating income |  |  |  |  |  |  |  |  |  |  |
Same-store |  | 18,115 |  | 17,306 |  | 809 |  | 4.7 | % |  |  | 69,642 |  | 69,390 |  | 252 |  | 0.4 | %
Non-same-store |  | 6,081 |  | 3,202 |  | 2,879 |  | 89.9 | % |  |  | 19,881 |  | 11,929 |  | 7,952 |  | 66.7 | %
Other properties and dispositions |  | 1,255 |  | 5,861 |  | (4,606 | ) |  |  |  | 7,188 |  | 14,459 |  | (7,271 | ) | (50.3 | )%
Total |  | 25,451 |  | 26,369 |  | (918 | ) | (3.5 | )% |  |  | 96,711 |  | 95,778 |  | 933 |  | 1.0 | %
Property management |  | (1,411 | ) | (1,239 | ) |  |  |  |  | (5,526 | ) | (5,046 | ) |  |
Casualty |  | 155 |  | 51 |  |  |  |  |  | (500 | ) | (414 | ) |  |
Depreciation/amortization |  | (21,072 | ) | (11,060 | ) |  |  |  |  | (82,070 | ) | (44,253 | ) |  |
Impairment of real estate investments |  | (17,809 | ) | (2,875 | ) |  |  |  |  | (18,065 | ) | (57,028 | ) |  |
General and administrative expenses |  | (4,093 | ) | (4,728 | ) |  |  |  |  | (14,203 | ) | (15,871 | ) |  |
Acquisition and investment related costs |  | (30 | ) | (3,224 | ) |  |  |  |  | (51 | ) | (3,276 | ) |  |
Interest expense |  | (8,302 | ) | (8,281 | ) |  |  |  |  | (34,178 | ) | (34,314 | ) |  |
Loss on debt extinguishment |  | (122 | ) | (1,193 | ) |  |  |  |  | (940 | ) | (1,651 | ) |  |
Interest and other income |  | 592 |  | 461 |  |  |  |  |  | 1,508 |  | 1,146 |  |  |
Income (loss) before gain on sale of real estate and other investments and income from discontinued operations |  | (26,641 | ) | (5,719 | ) |  |  |  |  | (57,314 | ) | (64,929 | ) |  |
Gain on sale of real estate and other investments |  | 2,285 |  | 7,409 |  |  |  |  |  | 20,120 |  | 18,701 |  |  |
Income (loss) from continuing operations |  | (24,356 | ) | 1,690 |  |  |  |  |  | (37,194 | ) | (46,228 | ) |  |
Income from discontinued operations |  | 197 |  | 31,950 |  |  |  |  |  | 164,823 |  | 76,753 |  |  |
Net income (loss) |  | $ | (24,159 | ) | $ | 33,640 |  |  |  |  |  | $ | 127,629 |  | $ | 30,525 |  |  |

| S-10 |

IRET
SAME-STORE FOURTH QUARTER COMPARISONS
(in thousands, except property data amounts)

|  | Apartment Homes Included |  | Revenues |  | Expenses |  | NOI
Regions |  |  | FY18Q4 |  | FY17Q4 |  | % Change |  | FY18Q4 |  | FY17Q4 |  | % Change |  | FY18Q4 |  | FY17Q4 |  | % Change
Rochester, MN |  | 1,711 |  |  | $ | 6,082 |  |  | $ | 5,748 |  |  | 5.8 | % |  | $ | 2,311 |  |  | $ | 2,386 |  |  | (3.1 | )% |  | $ | 3,771 |  |  | $ | 3,362 |  |  | 12.2 | %
Omaha, NE |  | 1,370 |  |  | 3,652 |  |  | 3,486 |  |  | 4.8 | % |  | 1,566 |  |  | 1,496 |  |  | 4.7 | % |  | 2,086 |  |  | 1,990 |  |  | 4.8 | %
Grand Forks, ND |  | 1,303 |  |  | 3,350 |  |  | 3,234 |  |  | 3.6 | % |  | 1,579 |  |  | 1,491 |  |  | 5.9 | % |  | 1,771 |  |  | 1,743 |  |  | 1.6 | %
St. Cloud, MN |  | 1,187 |  |  | 3,353 |  |  | 3,034 |  |  | 10.5 | % |  | 1,578 |  |  | 1,440 |  |  | 9.6 | % |  | 1,775 |  |  | 1,594 |  |  | 11.4 | %
Bismarck, ND |  | 977 |  |  | 2,672 |  |  | 2,699 |  |  | (1.0 | )% |  | 1,202 |  |  | 1,112 |  |  | 8.1 | % |  | 1,470 |  |  | 1,587 |  |  | (7.4 | )%
Topeka, KS |  | 1,042 |  |  | 2,453 |  |  | 2,380 |  |  | 3.1 | % |  | 1,016 |  |  | 871 |  |  | 16.6 | % |  | 1,437 |  |  | 1,509 |  |  | (4.8 | )%
Billings, MT |  | 770 |  |  | 2,011 |  |  | 2,003 |  |  | 0.4 | % |  | 576 |  |  | 824 |  |  | (30.1 | )% |  | 1,435 |  |  | 1,179 |  |  | 21.7 | %
Minneapolis, MN |  | 688 |  |  | 2,394 |  |  | 2,245 |  |  | 6.6 | % |  | 992 |  |  | 902 |  |  | 10.0 | % |  | 1,402 |  |  | 1,343 |  |  | 4.4 | %
Sioux Falls, SD |  | 969 |  |  | 2,470 |  |  | 2,288 |  |  | 8.0 | % |  | 1,098 |  |  | 1,085 |  |  | 1.2 | % |  | 1,372 |  |  | 1,203 |  |  | 14.0 | %
Rapid City, SD |  | 474 |  |  | 1,332 |  |  | 1,244 |  |  | 7.1 | % |  | 623 |  |  | 476 |  |  | 30.9 | % |  | 709 |  |  | 768 |  |  | (7.7 | )%
Minot, ND |  | 640 |  |  | 1,846 |  |  | 1,847 |  |  | (0.1 | )% |  | 1,134 |  |  | 894 |  |  | 26.8 | % |  | 712 |  |  | 953 |  |  | (25.3 | )%
Williston, ND |  | 189 |  |  | 439 |  |  | 271 |  |  | 62.0 | % |  | 264 |  |  | 196 |  |  | 34.7 | % |  | 175 |  |  | 75 |  |  | 133.3 | %
Same-Store Total |  | 11,320 |  |  | $ | 32,054 |  |  | $ | 30,479 |  |  | 5.2 | % |  | $ | 13,939 |  |  | $ | 13,173 |  |  | 5.8 | % |  | $ | 18,115 |  |  | $ | 17,306 |  |  | 4.7 | %

|  | FY18Q4 % of NOI |  | Weighted Average Occupancy (1) |  | Average Monthly Rental Rate (2) |  | Weighted Average Monthly Revenue per Occupied Home (3)
Regions |  |  | FY18Q4 |  | FY17Q4 |  | % Change |  | FY18Q4 |  | FY17Q4 |  | % Change |  | FY18Q4 |  | FY17Q4 |  | % Change
Rochester, MN |  | 20.9 | % |  | 95.1 | % |  | 88.7 | % |  | 7.2 | % |  | $ | 1,207 |  |  | $ | 1,236 |  |  | (2.3 | )% |  | $ | 1,246 |  |  | $ | 1,261 |  |  | (1.2 | )%
Omaha, NE |  | 11.5 | % |  | 95.9 | % |  | 94.9 | % |  | 1.1 | % |  | 858 |  |  | 830 |  |  | 3.4 | % |  | 927 |  |  | 893 |  |  | 3.8 | %
Grand Forks, ND |  | 9.8 | % |  | 95.1 | % |  | 90.6 | % |  | 5.0 | % |  | 856 |  |  | 865 |  |  | (1.0 | )% |  | 901 |  |  | 913 |  |  | (1.3 | )%
St. Cloud, MN |  | 9.8 | % |  | 95.4 | % |  | 90.4 | % |  | 5.5 | % |  | 908 |  |  | 878 |  |  | 3.4 | % |  | 987 |  |  | 942 |  |  | 4.8 | %
Bismarck, ND |  | 8.1 | % |  | 94.2 | % |  | 90.6 | % |  | 4.0 | % |  | 932 |  |  | 963 |  |  | (3.2 | )% |  | 967 |  |  | 1,016 |  |  | (4.8 | )%
Topeka, KS |  | 7.9 | % |  | 95.1 | % |  | 94.5 | % |  | 0.6 | % |  | 798 |  |  | 780 |  |  | 2.3 | % |  | 825 |  |  | 806 |  |  | 2.4 | %
Billings, MT |  | 7.9 | % |  | 91.6 | % |  | 89.5 | % |  | 2.3 | % |  | 905 |  |  | 907 |  |  | (0.2 | )% |  | 951 |  |  | 969 |  |  | (1.9 | )%
Minneapolis, MN |  | 7.7 | % |  | 95.8 | % |  | 95.5 | % |  | 0.3 | % |  | 1,131 |  |  | 1,059 |  |  | 6.8 | % |  | 1,210 |  |  | 1,140 |  |  | 6.1 | %
Sioux Falls, SD |  | 7.6 | % |  | 95.7 | % |  | 93.9 | % |  | 1.9 | % |  | 820 |  |  | 791 |  |  | 3.7 | % |  | 888 |  |  | 838 |  |  | 6.0 | %
Rapid City, SD |  | 3.9 | % |  | 96.6 | % |  | 94.4 | % |  | 2.3 | % |  | 904 |  |  | 880 |  |  | 2.7 | % |  | 969 |  |  | 927 |  |  | 4.5 | %
Minot, ND |  | 3.9 | % |  | 95.8 | % |  | 93.1 | % |  | 2.9 | % |  | 981 |  |  | 1,033 |  |  | (5.0 | )% |  | 1,004 |  |  | 1,034 |  |  | (2.9 | )%
Williston, ND |  | 1.0 | % |  | 97.2 | % |  | 82.5 | % |  | 17.8 | % |  | 837 |  |  | 928 |  |  | (9.8 | )% |  | 797 |  |  | 581 |  |  | 37.2 | %
Same-Store Total |  | 100.0 | % |  | 95.1 | % |  | 91.6 | % |  | 3.8 | % |  | $ | 942 |  |  | $ | 938 |  |  | 0.4 | % |  | $ | 992 |  |  | $ | 979 |  |  | 1.4 | %

(1) | Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) | Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

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

| S-11 |

IRET
SAME-STORE SEQUENTIAL QUARTER COMPARISONS
(in thousands, except property data amounts)

|  | Apartment Homes Included |  | Revenues |  | Expenses |  | NOI
Regions |  |  | FY18Q4 |  | FY18Q3 |  | % Change |  | FY18Q4 |  | FY18Q3 |  | % Change |  | FY18Q4 |  | FY18Q3 |  | % Change
Rochester, MN |  | 1,711 |  |  | $ | 6,082 |  |  | $ | 6,025 |  |  | 0.9 | % |  | $ | 2,311 |  |  | $ | 2,446 |  |  | (5.5 | )% |  | $ | 3,771 |  |  | $ | 3,579 |  |  | 5.4 | %
Omaha, NE |  | 1,370 |  |  | 3,652 |  |  | 3,591 |  |  | 1.7 | % |  | 1,566 |  |  | 1,551 |  |  | 1.0 | % |  | 2,086 |  |  | 2,040 |  |  | 2.3 | %
Grand Forks, ND |  | 1,303 |  |  | 3,350 |  |  | 3,308 |  |  | 1.3 | % |  | 1,579 |  |  | 1,645 |  |  | (4.0 | )% |  | 1,771 |  |  | 1,663 |  |  | 6.5 | %
St. Cloud, MN |  | 1,187 |  |  | 3,353 |  |  | 3,311 |  |  | 1.3 | % |  | 1,578 |  |  | 1,590 |  |  | (0.8 | )% |  | 1,775 |  |  | 1,721 |  |  | 3.1 | %
Bismarck, ND |  | 977 |  |  | 2,672 |  |  | 2,606 |  |  | 2.5 | % |  | 1,202 |  |  | 1,200 |  |  | 0.2 | % |  | 1,470 |  |  | 1,406 |  |  | 4.6 | %
Topeka, KS |  | 1,042 |  |  | 2,453 |  |  | 2,435 |  |  | 0.7 | % |  | 1,016 |  |  | 1,073 |  |  | (5.3 | )% |  | 1,437 |  |  | 1,362 |  |  | 5.5 | %
Billings, MT |  | 770 |  |  | 2,011 |  |  | 2,022 |  |  | (0.5 | )% |  | 576 |  |  | 741 |  |  | (22.3 | )% |  | 1,435 |  |  | 1,281 |  |  | 12.0 | %
Minneapolis, MN |  | 688 |  |  | 2,394 |  |  | 2,355 |  |  | 1.7 | % |  | 992 |  |  | 971 |  |  | 2.2 | % |  | 1,402 |  |  | 1,384 |  |  | 1.3 | %
Sioux Falls, SD |  | 969 |  |  | 2,470 |  |  | 2,386 |  |  | 3.5 | % |  | 1,098 |  |  | 1,143 |  |  | (3.9 | )% |  | 1,372 |  |  | 1,243 |  |  | 10.4 | %
Rapid City, SD |  | 474 |  |  | 1,332 |  |  | 1,289 |  |  | 3.3 | % |  | 623 |  |  | 515 |  |  | 21.0 | % |  | 709 |  |  | 774 |  |  | (8.4 | )%
Minot, ND |  | 640 |  |  | 1,846 |  |  | 1,837 |  |  | 0.5 | % |  | 1,134 |  |  | 875 |  |  | 29.6 | % |  | 712 |  |  | 962 |  |  | (26.0 | )%
Williston, ND |  | 189 |  |  | 439 |  |  | 479 |  |  | (8.4 | )% |  | 264 |  |  | 212 |  |  | 24.5 | % |  | 175 |  |  | 267 |  |  | (34.5 | )%
Same-Store Total |  | 11,320 |  |  | $ | 32,054 |  |  | $ | 31,644 |  |  | 1.3 | % |  | $ | 13,939 |  |  | $ | 13,962 |  |  | (0.2 | )% |  | $ | 18,115 |  |  | $ | 17,682 |  |  | 2.4 | %

|  | FY18Q4 % of NOI |  | Weighted Average Occupancy (1) |  | Average Monthly Rental Rate (2) |  | Weighted Average Monthly Revenue per Occupied Home (3)
Regions |  |  | FY18Q4 |  | FY18Q3 |  | % Change |  | FY18Q4 |  | FY18Q3 |  | % Change |  | FY18Q4 |  | FY18Q3 |  | % Change
Rochester, MN |  | 20.9 | % |  | 95.1 | % |  | 93.9 | % |  | 1.3 | % |  | $ | 1,207 |  |  | $ | 1,226 |  |  | (1.5 | )% |  | $ | 1,246 |  |  | $ | 1,249 |  |  | (0.2 | )%
Omaha, NE |  | 11.5 | % |  | 95.9 | % |  | 94.8 | % |  | 1.2 | % |  | 858 |  |  | 858 |  |  | — | % |  | 927 |  |  | 922 |  |  | 0.5 | %
Grand Forks, ND |  | 9.8 | % |  | 95.1 | % |  | 94.2 | % |  | 1.0 | % |  | 856 |  |  | 859 |  |  | (0.3 | )% |  | 901 |  |  | 898 |  |  | 0.3 | %
St. Cloud, MN |  | 9.8 | % |  | 95.4 | % |  | 94.3 | % |  | 1.2 | % |  | 908 |  |  | 910 |  |  | (0.2 | )% |  | 987 |  |  | 986 |  |  | 0.1 | %
Bismarck, ND |  | 8.1 | % |  | 94.2 | % |  | 91.2 | % |  | 3.3 | % |  | 932 |  |  | 944 |  |  | (1.3 | )% |  | 967 |  |  | 975 |  |  | (0.8 | )%
Topeka, KS |  | 7.9 | % |  | 95.1 | % |  | 94.5 | % |  | 0.6 | % |  | 798 |  |  | 798 |  |  | — | % |  | 825 |  |  | 824 |  |  | 0.1 | %
Billings, MT |  | 7.9 | % |  | 91.6 | % |  | 90.0 | % |  | 1.8 | % |  | 905 |  |  | 909 |  |  | (0.4 | )% |  | 951 |  |  | 972 |  |  | (2.2 | )%
Minneapolis, MN |  | 7.7 | % |  | 95.8 | % |  | 93.3 | % |  | 2.7 | % |  | 1,131 |  |  | 1,125 |  |  | 0.5 | % |  | 1,210 |  |  | 1,222 |  |  | (1.0 | )%
Sioux Falls, SD |  | 7.6 | % |  | 95.7 | % |  | 94.7 | % |  | 1.1 | % |  | 820 |  |  | 814 |  |  | 0.7 | % |  | 888 |  |  | 867 |  |  | 2.4 | %
Rapid City, SD |  | 3.9 | % |  | 96.6 | % |  | 96.0 | % |  | 0.6 | % |  | 904 |  |  | 900 |  |  | 0.4 | % |  | 969 |  |  | 944 |  |  | 2.6 | %
Minot, ND |  | 3.9 | % |  | 95.8 | % |  | 96.1 | % |  | (0.3 | )% |  | 981 |  |  | 983 |  |  | (0.2 | )% |  | 1,004 |  |  | 996 |  |  | 0.8 | %
Williston, ND |  | 1.0 | % |  | 97.2 | % |  | 95.4 | % |  | 1.9 | % |  | 837 |  |  | 826 |  |  | 1.3 | % |  | 797 |  |  | 885 |  |  | (9.9 | )%
Same-Store Total |  | 100.0 | % |  | 95.1 | % |  | 93.9 | % |  | 1.3 | % |  | $ | 942 |  |  | $ | 945 |  |  | (0.3 | )% |  | $ | 992 |  |  | $ | 992 |  |  | — | %

(1) | Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) | Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

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

| S-12 |

IRET
SAME-STORE YEAR-TO-DATE COMPARISONS
(in thousands, except property data amounts)

|  | Apartment Homes Included |  | Revenues |  | Expenses |  | NOI
Regions |  |  | FY18 |  | FY17 |  | % Change |  | FY18 |  | FY17 |  | % Change |  | FY18 |  | FY17 |  | % Change
Rochester, MN |  | 1,711 |  |  | $ | 24,011 |  |  | $ | 22,872 |  |  | 5.0 | % |  | $ | 9,707 |  |  | $ | 8,835 |  |  | 9.9 | % |  | $ | 14,304 |  |  | $ | 14,037 |  |  | 1.9 | %
Omaha, NE |  | 1,370 |  |  | 14,340 |  |  | 13,725 |  |  | 4.5 | % |  | 6,449 |  |  | 5,915 |  |  | 9.0 | % |  | 7,891 |  |  | 7,810 |  |  | 1.0 | %
Grand Forks, ND |  | 1,303 |  |  | 13,315 |  |  | 12,978 |  |  | 2.6 | % |  | 6,247 |  |  | 5,614 |  |  | 11.3 | % |  | 7,068 |  |  | 7,364 |  |  | (4.0 | )%
St. Cloud, MN |  | 1,187 |  |  | 13,093 |  |  | 11,769 |  |  | 11.2 | % |  | 6,508 |  |  | 5,881 |  |  | 10.7 | % |  | 6,585 |  |  | 5,888 |  |  | 11.8 | %
Bismarck, ND |  | 977 |  |  | 10,664 |  |  | 10,663 |  |  | — | % |  | 4,838 |  |  | 4,377 |  |  | 10.5 | % |  | 5,826 |  |  | 6,286 |  |  | (7.3 | )%
Topeka, KS |  | 1,042 |  |  | 9,722 |  |  | 9,242 |  |  | 5.2 | % |  | 4,189 |  |  | 3,738 |  |  | 12.1 | % |  | 5,533 |  |  | 5,504 |  |  | 0.5 | %
Billings, MT |  | 770 |  |  | 8,057 |  |  | 7,884 |  |  | 2.2 | % |  | 3,116 |  |  | 3,083 |  |  | 1.1 | % |  | 4,941 |  |  | 4,801 |  |  | 2.9 | %
Minneapolis, MN |  | 688 |  |  | 9,337 |  |  | 8,665 |  |  | 7.8 | % |  | 3,928 |  |  | 3,687 |  |  | 6.5 | % |  | 5,409 |  |  | 4,978 |  |  | 8.7 | %
Sioux Falls, SD |  | 969 |  |  | 9,546 |  |  | 9,193 |  |  | 3.8 | % |  | 4,656 |  |  | 4,355 |  |  | 6.9 | % |  | 4,890 |  |  | 4,838 |  |  | 1.1 | %
Rapid City, SD |  | 474 |  |  | 5,140 |  |  | 4,891 |  |  | 5.1 | % |  | 2,253 |  |  | 1,975 |  |  | 14.1 | % |  | 2,887 |  |  | 2,916 |  |  | (1.0 | )%
Minot, ND |  | 640 |  |  | 7,343 |  |  | 7,545 |  |  | (2.7 | )% |  | 3,887 |  |  | 3,482 |  |  | 11.6 | % |  | 3,456 |  |  | 4,063 |  |  | (14.9 | )%
Williston, ND |  | 189 |  |  | 1,847 |  |  | 1,825 |  |  | 1.2 | % |  | 995 |  |  | 920 |  |  | 8.2 | % |  | 852 |  |  | 905 |  |  | (5.9 | )%
Same-Store Total |  | 11,320 |  |  | $ | 126,415 |  |  | $ | 121,252 |  |  | 4.3 | % |  | $ | 56,773 |  |  | $ | 51,862 |  |  | 9.5 | % |  | $ | 69,642 |  |  | $ | 69,390 |  |  | 0.4 | %

|  | FY18 % of NOI |  | Weighted Average Occupancy (1) |  | Average Monthly Rental Rate (2) |  | Weighted Average Monthly Revenue per Occupied Home (3)
Regions |  |  | FY18 |  | FY17 |  | % Change |  | FY18 |  | FY17 |  | % Change |  | FY18 |  | FY17 |  | % Change
Rochester, MN |  | 20.6 | % |  | 92.8 | % |  | 88.1 | % |  | 5.3 | % |  | $ | 1,231 |  |  | $ | 1,223 |  |  | 0.7 | % |  | $ | 1,260 |  |  | $ | 1,264 |  |  | (0.3 | )%
Omaha, NE |  | 11.3 | % |  | 95.0 | % |  | 95.3 | % |  | (0.3 | )% |  | 853 |  |  | 820 |  |  | 4.0 | % |  | 919 |  |  | 876 |  |  | 4.9 | %
Grand Forks, ND |  | 10.1 | % |  | 94.4 | % |  | 91.1 | % |  | 3.6 | % |  | 860 |  |  | 869 |  |  | (1.0 | )% |  | 902 |  |  | 911 |  |  | (1.0 | )%
St. Cloud, MN |  | 9.5 | % |  | 94.0 | % |  | 90.7 | % |  | 3.6 | % |  | 905 |  |  | 858 |  |  | 5.5 | % |  | 978 |  |  | 911 |  |  | 7.4 | %
Bismarck, ND |  | 8.4 | % |  | 92.3 | % |  | 89.3 | % |  | 3.4 | % |  | 949 |  |  | 977 |  |  | (2.9 | )% |  | 985 |  |  | 1,019 |  |  | (3.3 | )%
Topeka, KS |  | 7.9 | % |  | 94.9 | % |  | 93.9 | % |  | 1.1 | % |  | 795 |  |  | 765 |  |  | 3.9 | % |  | 820 |  |  | 787 |  |  | 4.2 | %
Billings, MT |  | 7.1 | % |  | 89.6 | % |  | 90.5 | % |  | (1.0 | )% |  | 912 |  |  | 884 |  |  | 3.2 | % |  | 973 |  |  | 943 |  |  | 3.2 | %
Minneapolis, MN |  | 7.8 | % |  | 94.3 | % |  | 94.5 | % |  | (0.2 | )% |  | 1,114 |  |  | 1,036 |  |  | 7.5 | % |  | 1,200 |  |  | 1,111 |  |  | 8.0 | %
Sioux Falls, SD |  | 7.0 | % |  | 94.4 | % |  | 94.8 | % |  | (0.4 | )% |  | 811 |  |  | 780 |  |  | 4.0 | % |  | 869 |  |  | 834 |  |  | 4.2 | %
Rapid City, SD |  | 4.1 | % |  | 94.8 | % |  | 95.0 | % |  | (0.2 | )% |  | 900 |  |  | 866 |  |  | 3.9 | % |  | 953 |  |  | 905 |  |  | 5.3 | %
Minot, ND |  | 5.0 | % |  | 95.1 | % |  | 92.9 | % |  | 2.4 | % |  | 994 |  |  | 1,064 |  |  | (6.6 | )% |  | 1,006 |  |  | 1,057 |  |  | (4.8 | )%
Williston, ND |  | 1.2 | % |  | 93.9 | % |  | 81.1 | % |  | 15.8 | % |  | 833 |  |  | 1,075 |  |  | (22.5 | )% |  | 867 |  |  | 992 |  |  | (12.6 | )%
Same-Store Total |  | 100.0 | % |  | 93.7 | % |  | 91.5 | % |  | 2.4 | % |  | $ | 945 |  |  | $ | 933 |  |  | 1.3 | % |  | $ | 993 |  |  | $ | 975 |  |  | 1.9 | %

(1) | Weighted average occupancy is defined as scheduled rent less vacancy losses divided by scheduled rent for the period.

(2) | Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

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

| S-13 |

IRET
PORTFOLIO SUMMARY (1)

|  | Three Months Ended
|  | 4/30/2018 |  | 1/31/2018 |  | 10/31/2017 |  | 7/31/2017 |  | 4/30/2017
Number of Apartment Homes |  |  |  |  |  |  |  |  |  |
Same-Store |  | 11,320 |  |  | 11,320 |  |  | 11,384 |  |  | 11,384 |  |  | 10,512 |
Non-Same-Store |  | 2,856 |  |  | 2,466 |  |  | 2,192 |  |  | 2,019 |  |  | 2,693 |
All Communities |  | 14,176 |  |  | 13,786 |  |  | 13,576 |  |  | 13,403 |  |  | 13,205 |
Average Investment Per Apartment Home |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 88,219 |  |  | $ | 88,329 |  |  | $ | 88,047 |  |  | $ | 87,876 |  |  | $ | 78,996 |
Non-Same-Store |  | 212,818 |  |  | 202,277 |  |  | 185,150 |  |  | 166,261 |  |  | 164,715 |
All Communities |  | $ | 112,401 |  |  | $ | 108,681 |  |  | $ | 102,760 |  |  | $ | 99,684 |  |  | $ | 96,485 |
Average Scheduled Rent per Apartment Home (2) |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 942 |  |  | $ | 945 |  |  | $ | 951 |  |  | $ | 943 |  |  | $ | 906 |
Non-Same-Store |  | 1,358 |  |  | 1,332 |  |  | 1,309 |  |  | 1,165 |  |  | 1,267 |
All Communities |  | $ | 1,023 |  |  | $ | 1,014 |  |  | $ | 1,006 |  |  | $ | 976 |  |  | $ | 980 |
Average Revenue per Apartment Home (3) |  |  |  |  |  |  |  |  |  |
Same-Store |  | $ | 992 |  |  | $ | 994 |  |  | $ | 998 |  |  | $ | 991 |  |  | $ | 955 |
Non-Same-Store |  | 1,349 |  |  | 1,397 |  |  | 1,266 |  |  | 1,222 |  |  | 1,334 |
All Communities |  | $ | 1,064 |  |  | $ | 1,066 |  |  | $ | 1,041 |  |  | $ | 1,026 |  |  | $ | 1,032 |
Occupancy |  |  |  |  |  |  |  |  |  |
Same-Store |  | 96.5 | % |  | 95.3 | % |  | 95.2 | % |  | 94.5 | % |  | 94.2 | %
Non-Same-Store |  | 92.1 | % |  | 90.1 | % |  | 92.4 | % |  | 89.3 | % |  | 88.8 | %
All Communities |  | 95.6 | % |  | 94.3 | % |  | 94.8 | % |  | 93.7 | % |  | 93.1 | %
Operating Expenses as a % of Scheduled Rent |  |  |  |  |  |  |  |  |  |
Same-Store |  | 46.6 | % |  | 47.0 | % |  | 49.5 | % |  | 48.7 | % |  | 46.6 | %
Non-Same-Store |  | 40.1 | % |  | 38.7 | % |  | 42.7 | % |  | 40.3 | % |  | 42.1 | %
All Communities |  | 44.9 | % |  | 45.1 | % |  | 48.1 | % |  | 47.2 | % |  | 45.4 | %
Capital Expenditures |  |  |  |  |  |  |  |  |  |
Total Capital Expenditures per Apartment Home – Same-Store |  | $ | 153 |  |  | $ | 240 |  |  | $ | 396 |  |  | $ | 240 |  |  | $ | 281 |

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

(2) | Average scheduled rent per apartment home is scheduled rent divided by the total number of apartment homes. See definition of scheduled rent in the Definitions section.

(3) | Average revenue per apartment home is total revenues divided by the weighted average occupied homes for the period.

| S-14 |

IRET
SAME-STORE CAPITAL EXPENDITURES
($ in thousands, except per home amounts)

|  | Three Months Ended
|  | 4/30/2018 |  | 4/30/2017
Total Multifamily Same-Store Apartment Homes |  | 11,320 |  |  | 11,320 |
Turnover |  | $ | 927 |  |  | $ | 1,282 |
Furniture & Equipment |  | 39 |  |  | 74 |
Building – Interior |  | 120 |  |  | 490 |
Building – Exterior |  | 546 |  |  | 799 |
Landscaping & Grounds |  | 99 |  |  | 294 |
Capital Expenditures |  | $ | 1,731 |  |  | $ | 2,939 |
CapEx per Apartment Home |  | 153 |  |  | 260 |
Value Add |  | 15 |  |  | 2,428 |
Unallocated Accruals (1) |  | — |  |  | 21 |
Total Capital Spend |  | $ | 1,746 |  |  | $ | 5,388 |
Total Capital Spend per Apartment Home |  | 154 |  |  | 476 |

|  | Twelve Months Ended
|  | 4/30/2018 |  | 4/30/2017
Total Multifamily Same-Store Apartment Homes |  | 11,320 |  |  | 11,320 |
Turnover |  | $ | 5,066 |  |  | $ | 4,671 |
Furniture & Equipment |  | 306 |  |  | 450 |
Building – Interior |  | 957 |  |  | 1,084 |
Building – Exterior |  | 3,319 |  |  | 3,980 |
Landscaping & Grounds |  | 2,136 |  |  | 1,891 |
Capital Expenditures |  | $ | 11,784 |  |  | $ | 12,076 |
CapEx per Apartment Home |  | 1,041 |  |  | 1,067 |
Value Add |  | 383 |  |  | 16,510 |
Unallocated Accruals (1) |  | (1,651 | ) |  | 171 |
Total Capital Spend |  | $ | 10,516 |  |  | $ | 28,757 |
Total Capital Spend per Apartment Home |  | 929 |  |  | 2,540 |

(1) | Amounts represent the change in the balance of unallocated capital accruals. During the quarter ended January 31, 2018, we fully allocated all remaining accruals to their respective capital expenditure categories and, as of January 31, 2018, no capital expenditures remained unallocated.

| S-15 |

IRET
FISCAL 2018 ACQUISITIONS SUMMARY
as of April 30, 2018
($ in thousands)

Property |  | Location |  | Segment |  | Acquisition Date |  | Apartment Homes |  | Occupancy At Acquisition |  | 4/30/2018 Occupancy |  | Acquisition Cost
Oxbo(1) |  | St. Paul, MN |  | Multifamily |  | May 26, 2017 |  | 191 |  |  | 29.3 | % |  | 73.3 | % |  | $ | 61,500 |
Park Place |  | Plymouth, MN |  | Multifamily |  | September 13, 2017 |  | 500 |  |  | 94.0 | % |  | 91.4 | % |  | 92,250 |
Dylan |  | Denver, CO |  | Multifamily |  | November 28, 2017 |  | 274 |  |  | 79.9 | % |  | 83.9 | % |  | 90,600 |
Westend |  | Denver, CO |  | Multifamily |  | March 28, 2018 |  | 390 |  |  | 93.9 | % |  | 93.8 | % |  | 128,700 |
|  |  |  |  |  | Total |  | 1,355 |  |  |  |  |  |  |  |  | $ | 373,050 |

(1) | Property includes 11,477 sq ft of retail space. Retail is 100% leased.

| S-16 |

Definitions
April 30, 2018
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.
Core funds from operations (Core FFO) is FFO as adjusted for non-routine items or items not considered core to our business operations. By further adjusting for items that are not considered part of our core business operations, we believe Core FFO provides investors with additional information to compare our core operating and financial performance between periods. Core FFO should not be considered as an alternative to net income as an indication of financial performance, or as an alternative to cash flows from operations as a measure of liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions to shareholders. Core FFO is a non-GAAP and non-standardized measure and may be calculated differently by other REITs.
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) is defined by the National Association of Real Estate Investment Trusts, Inc. (NAREIT) as net income (computed in accordance with GAAP), excluding gains (or losses) associated with the sale of previously depreciated operating properties, real estate depreciation and amortization, impairments of depreciable assets, and adjustments for unconsolidated joint ventures to reflect FFO on the same basis. We believe that FFO, which is a standard supplemental measure for equity real estate investment trusts, is helpful to investors in understanding our operating performance, primarily because its calculation excludes depreciation and amortization expense on real estate assets, thereby providing an additional perspective on our operating results. We believe that GAAP historical cost depreciation of real estate assets generally is not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. In addition, the exclusion in NAREIT’s definition of FFO of impairment write-downs and gains and losses from the sale of previously depreciated operating real estate assets helps to identify the operating results of the long-term assets that form the base of our investments, and assists management and investors in comparing those operating results between periods.
Net Debt to Annualized Adjusted EBITDA is total debt less cash and cash equivalents and real estate deposits as reported for the end of the quarter divided by Adjusted EBITDA as reported for the end of the quarter multiplied by 4.
Net Operating Income (NOI) is a non-U.S. GAAP measure which we define as total real estate revenues less property operating expenses and real estate tax expense combined (referred to as "Real estate expense"). 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 U.S. 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.
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 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.

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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, an properties sold or classified as held for sale), and, in the case of development or redevelopment properties, which have achieved a target level of occupancy of 90%.
U.S. GAAP is defined as accounting principles generally accepted in the United States of America.

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