Exhibit 99.1

Earnings Release

IRET Announces Financial and Operating Results for the Year Ended

December 31, 2019 and Provides 2020 Financial Outlook

MINNEAPOLIS, MN, February 19, 2020 – IRET (NYSE: IRET) announced today its financial and operating results for the year ended December 31, 2019. Net income and Funds from Operations (“FFO”) per share for the transition period ended December 31, 2019, are detailed below. Core FFO adjusts FFO for certain non-routine items, and both FFO and Core FFO are reconciled to net income in the tables accompanying this earnings release.

		Three Months Ended December 31,								Twelve Months Ended December 31,
Per Share		2019				2018				2019				2018
Earnings (loss) per share - diluted		$	3.89			$	(0.49	)		$	6.00			$	(1.83	)
FFO - diluted		0.90				0.92				4.05				3.29
Core FFO - diluted		0.96				0.92				3.72				3.41

		Year-Over-Year Comparison			Sequential Comparison			YTD Comparison
Same-Store Results		4Q19 vs 4Q18			4Q19 vs. 3Q19			CY19 vs. CY18
Revenues		2.8	%		0.4	%		3.7	%
Expenses		6.4	%		1.6	%		3.8	%
Net Operating Income (“NOI”)		0.2	%		(0.4	)%		3.6	%

		Three months ended									Twelve months ended
Same-Store Results		December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Weighted Average Occupancy		94.0	%		93.3	%		94.2	%		94.3	%		93.6	%

Net operating income ("NOI"), funds from operations ("FFO"), and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" below.

Financial Highlights for the Year Ended December 31, 2019

• Grew earnings per share to $6.00 per diluted share for the year ended December 31, 2019, compared to a net loss of $1.83 per diluted share for the year ended December 31, 2018.

• Increased FFO year-over-year from $3.29 per diluted share to $4.05 per diluted share and increased Core FFO from $3.41 per diluted share to $3.72 per diluted share.

• Increased same-store revenue year-over-year by 3.7% driven by 3.0% growth in rental revenue and 0.7% growth in occupancy, while same-store operating expenses grew 3.8% year-over-year, primarily due to real estate taxes and insurance. The combination of 3.7% same-store revenue growth and expense control initiatives that limited same-store controllable expenses growth to approximately 1.8% over the same period in 2018, led to same-store NOI growth of 3.6% for the year ended December 31, 2019.

• Acquired three new apartment communities in the key growth markets of Minneapolis, Minnesota and Denver, Colorado, consisting of 696 homes, for an aggregate purchase price of $169.3 million.

• Exited slower-growth, less efficient markets in Topeka, Kansas, Sioux City, Iowa, and Sioux Falls, South Dakota, and sold five apartment communities in Bismarck, North Dakota, consisting of a total of 21 apartment communities, two commercial properties, and three parcels of land for an aggregate sale price of $203.1 million.

1

• Originated a $29.9 million construction loan and a $15.3 million mezzanine loan, in December 2019, for the development of a multifamily community located in Minneapolis, Minnesota. The loans are secured by mortgages and mature on December 31, 2023. We have an option to purchase the development.

• Registered an ongoing at-the-market ("ATM") offering and sale of up to $150.0 million in common shares under our 2019 ATM program, from which we issued 308,444 common shares at an average price of $72.29 per share, net of commissions. Total consideration, net of commissions and issuance costs, were approximately $22.0 million in the year ended December 31, 2019.

• Repurchased and retired approximately 465,000 common shares and Units for an aggregate cost of $26.2 million, including commissions, at an average price per share of $56.24, in the year ended December 31, 2019.

• Entered into a $150.0 million private shelf agreement. Of the $150.0 million available under the private shelf agreement, we funded $75.0 million of Series A unsecured senior notes and $50.0 million of Series B unsecured senior notes. Proceeds from this private placement facility were used to repay outstanding amounts on IRET’s credit facility and retire mortgage debt. Following the funding of the Series B Notes, our average debt maturity duration increased to 6.0 years from 4.6 years while our weighted average interest rate of debt decreased from 4.3% at December 31, 2018 to 4.0% at December 31, 2019. The Company’s debt has decreased from 69% secured at December 31, 2018 to 51% secured at December 31, 2019.

Balance Sheet

At December 31, 2019, we had $226.5 million of total liquidity on our balance sheet, including $199.9 million available on our line of credit.

2020 Financial Overview

We are providing the following guidance for our 2020 calendar year performance.

2020 Calendar Year Financial Outlook
					Range for 2020
	2019 Actual				Low				High
Earnings Per Share - diluted	$	6.00			$	(1.35	)		$	(1.07	)
FFO per Share - diluted	$	4.05			$	3.52			$	3.80
Core FFO per Share - diluted	$	3.72			$	3.52			$	3.80

Additional assumptions:

• Same-store capital expenditures of $825 per home to $900 per home

• Value-add expenditures of $10.0 million to $15.0 million

• Investments of $66.0 million to $72.0 million

FFO and Core FFO are non-GAAP measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, please refer to "2020 Financial Outlook" in the Supplemental Information below.

Quarterly Distributions

On December 5, 2019, our Board of Trustees declared a regular quarterly distribution of $0.70 per share/unit (NYSE: IRET), payable on January 15, 2020 to common shareholders and unitholders of record on January 2, 2020. IRET has paid cash dividends to common shareholders and unitholders every quarter since its initial dividend payment in 1971. It represents an annualized rate of $2.80 per share/unit.

On December 5, 2019, our Board of Trustees also declared a dividend of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE: IRET-PC), payable on December 31, 2019, to holders of record on December 16, 2019. Series C preferred share distributions are cumulative and payable quarterly in arrears at an annual rate of $1.65625 per share.

2

Earnings Call

Live webcast and replay:  http://ir.iretapartments.com
Live Conference Call			Conference Call Replay
Thursday, February 20, 2020 at 10:00 AM ET			Replay available until March 5, 2020
USA Toll Free Number	1-877-509-9785		USA Toll Free Number	1-877-344-7529
International Toll Free Number	1-412-902-4132		International Toll Free Number	1-412-317-0088
Canada Toll Free Number	1-855-669-9657		Canada Toll Free Number	1-855-669-9658
			Conference Number	10137963

Supplemental Information

Supplemental Operating and Financial Data for the year ended December 31, 2019 (“Supplemental Information”), is available in the Investors section on IRET’s website at www.iretapartments.com or by calling Investor Relations at 701-837-7104. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Information, which accompanies this earnings release.

About IRET

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of December 31, 2019, IRET owned interests in 69 apartment communities consisting of 11,953 homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET-PC, respectively).

Forward-Looking Statements

Certain statements in this press release are based on our current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-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. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond our control and could differ materially from our actual results and performance. Such risks and uncertainties are detailed from time to time in our filings with the SEC, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in our Annual Report on Form 10-K for the year ended December 31, 2019, in subsequent quarterly reports on Form 10-Q, and in other public reports. We assume no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

Investor Relations Contact Information

Jonathan Bishop

Vice President - Finance

Phone: 701-837-7104

E-mail: IR@iret.com

3

Supplemental Financial and Operating Data

Table of Contents

December 31, 2019

	Page
Common Share Data	S-1
Key Financial Data
Condensed Consolidated Statements of Operations	S-2
Condensed Consolidated Balance Sheets	S-3
Non-GAAP Financial Measures and Reconciliations
Net Operating Income Detail	S-4
Funds From Operations	S-5
Adjusted EBITDA	S-7
Debt and Capital Analysis
Debt Analysis	S-8
Capital Analysis	S-9
Portfolio Analysis
Same-Store Comparison	S-10
Portfolio Summary	S-13
Same-Store Capital Expenditures	S-14
2020 Financial Outlook	S-15

Common Share Data (NYSE: IRET)

		Three Months Ended																Two Months Ended
		December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
High Closing Price		$	78.91			$	74.67			$	61.28			$	61.50			$	54.70
Low Closing Price		$	71.74			$	59.22			$	57.19			$	49.92			$	47.00
Average Closing Price		$	74.67			$	66.83			$	59.54			$	58.11			$	52.45
Closing Price at end of quarter		$	72.50			$	74.67			$	58.67			$	59.91			$	49.07
Common Share Distributions—annualized		$	2.80			$	2.80			$	2.80			$	2.80			$	2.80
Closing Dividend Yield - annualized		3.9		%		3.8		%		4.8		%		4.7		%		5.7		%
Closing common shares outstanding (thousands)		12,099				11,625				11,656				11,768				11,942
Closing limited partnership units outstanding (thousands)		1,058				1,223				1,224				1,365				1,368
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)		$	953,883			$	959,360			$	755,670			$	786,798			$	653,122

S-1

IRET

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share amounts)

		Three Months Ended																					Twelve months ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018					12/31/2019				12/31/2018
REVENUE		$	45,777			$	47,436			$	46,934			$	45,608			$	45,730				$	185,755			$	180,368
EXPENSES
Property operating expenses, excluding real estate taxes		14,018				14,485				13,942				14,804				13,292					57,249				55,910
Real estate taxes		4,835				5,425				5,574				5,232				5,098					21,066				20,171
Property management expenses		1,634				1,553				1,445				1,554				1,447					6,186				5,537
Casualty loss		205				178				92				641				540					1,116				815
Depreciation/amortization		18,972				18,751				18,437				18,111				18,812					74,271				77,624
Impairment of real estate investments		—				—				—				—				1,221					—				19,030
General and administrative expenses		3,647				3,448				3,549				3,806				3,769					14,450				14,883
TOTAL EXPENSES		$	43,311			$	43,840			$	43,039			$	44,148			$	44,179				$	174,338			$	193,970
Operating income (loss)		2,466				3,596				3,895				1,460				1,551					11,417				(13,602		)
Interest expense		(7,357		)		(7,694		)		(7,590		)		(7,896		)		(7,682		)			(30,537		)		(32,733		)
Loss on extinguishment of debt		(864		)		(1,087		)		(407		)		(2		)		(5		)			(2,360		)		(678		)
Interest and other income		702				498				468				424				483					2,092				2,027
Income (loss) before gain (loss) on sale of real estate and other investments, gain (loss) on litigation settlement, and income (loss) from discontinued operations		(5,053		)		(4,687		)		(3,634		)		(6,014		)		(5,653		)			(19,388		)		(44,986		)
Gain (loss) on sale of real estate and other investments		57,850				39,105				615				54				612					97,624				12,011
Gain (loss) on litigation settlement		—				300				6,286				—				—					6,586				—
Income (loss) from continuing operations		52,797				34,718				3,267				(5,960		)		(5,041		)			84,822				(32,975		)
Income (loss) from discontinued operations		—				—				—				—				—					—				14,690
Net income (loss)		$	52,797			$	34,718			$	3,267			$	(5,960	)		$	(5,041	)			$	84,822			$	(18,285	)
Dividends to preferred unitholders		(160		)		(160		)		(160		)		(57		)		—					(537		)		—
Net (income) loss attributable to noncontrolling interest – Operating Partnership		(4,202		)		(3,145		)		(148		)		743				665					(6,752		)		2,553
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities		223				183				154				576				270					1,136				709
Net income (loss) attributable to controlling interests		48,658				31,596				3,113				(4,698		)		(4,106		)			78,669				(15,023		)
Dividends to preferred shareholders		(1,705		)		(1,705		)		(1,706		)		(1,705		)		(1,705		)			(6,821		)		(6,821		)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS		$	46,953			$	29,891			$	1,407			$	(6,403	)		$	(5,811	)			$	71,848			$	(21,844	)
Per Share Data - Basic
Earnings (loss) per common share from continuing operations – basic		$	3.95			$	2.57			$	0.11			$	(0.54	)		$	(0.49	)			$	6.06			$	(2.93	)
Earnings (loss) per common share from discontinued operations – basic		—				—				—				—				—					—				1.10
Net earnings (loss) per common share – basic		$	3.95			$	2.57			$	0.11			$	(0.54	)		$	(0.49	)			$	6.06			$	(1.83	)
Per Share Data - Diluted
Earnings (loss) per common share from continuing operations – diluted		$	3.89			$	2.54			$	0.11			$	(0.54	)		$	(0.49	)			$	6.00			$	(2.93	)
Earnings (loss) per common share from discontinued operations – diluted		—				—				—				—				—					—				$	1.10
Net earnings (loss) per common share – diluted		$	3.89			$	2.54			$	0.11			$	(0.54	)		$	(0.49	)			$	6.00			$	(1.83	)

S-2

IRET

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
ASSETS
Real estate investments
Property owned		$	1,643,078			$	1,720,352			$	1,663,539			$	1,673,158			$	1,627,636
Less accumulated depreciation		(349,122		)		(370,492		)		(380,321		)		(371,672		)		(353,871		)
		1,293,956				1,349,860				1,283,218				1,301,486				1,273,765
Unimproved land		1,376				1,376				1,746				2,252				5,301
Mortgage loans receivable		16,140				10,140				10,140				10,260				10,410
Total real estate investments		1,311,472				1,361,376				1,295,104				1,313,998				1,289,476
Cash and cash equivalents		26,579				8,500				17,406				23,329				13,792
Restricted cash		19,538				3,339				4,672				4,819				5,464
Other assets		34,829				30,589				30,626				29,166				27,265
TOTAL ASSETS		$	1,392,418			$	1,403,804			$	1,347,808			$	1,371,312			$	1,335,997
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses		$	47,155			$	40,546			$	44,766			$	40,697			$	40,892
Revolving line of credit		50,079				103,143				177,939				118,677				57,500
Notes payable, net of loan costs		269,058				269,006				144,082				144,036				143,991
Mortgages payable, net of loan costs		329,664				360,886				370,461				430,950				444,197
TOTAL LIABILITIES		$	695,956			$	773,581			$	737,248			$	734,360			$	686,580
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES		$	—			$	—			$	—			$	—			$	5,968
SERIES D PREFERRED UNITS		16,560				16,560				16,560				16,560				—
EQUITY
Series C Preferred Shares of Beneficial Interest		99,456				99,456				99,456				99,456				99,456
Common Shares of Beneficial Interest		917,400				886,598				888,541				895,381				899,234
Accumulated distributions in excess of net income		(390,196		)		(428,680		)		(450,433		)		(443,661		)		(429,048		)
Accumulated other comprehensive income (loss)		(7,607		)		(9,793		)		(7,598		)		(3,139		)		(856		)
Total shareholders’ equity		$	619,053			$	547,581			$	529,966			$	548,037			$	568,786
Noncontrolling interests – Operating Partnership		55,284				60,169				57,902				66,060				67,916
Noncontrolling interests – consolidated real estate entities		5,565				5,913				6,132				6,295				6,747
Total equity		$	679,902			$	613,663			$	594,000			$	620,392			$	643,449
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY		$	1,392,418			$	1,403,804			$	1,347,808			$	1,371,312			$	1,335,997

S-3

IRET

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (unaudited)

This release contains certain non-GAAP financial measures. The non-GAAP measures should not be considered a substitute for operating results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The definitions and calculations of these non-GAAP measures, as calculated by us, may not be comparable to non-GAAP measures reported by other REITs that do not define each of the non-GAAP measures exactly as we do.

We provide certain information on a same-store and non-same-store basis. Same-store apartment communities are owned or in service for the entirety of the periods being compared, and, in the case of development properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, we determine the composition of our same-store pool for that year as well as adjust the previous year, which allows us to evaluate full period-over-period operating comparisons for existing apartment communities and their contribution to net income. We believe that measuring performance on a same-store basis is useful to investors because it enables evaluation of how a fixed pool of our communities are performing year-over-year. We use this measure to assess whether or not we have been successful in increasing NOI, renewing the leases on existing residents, controlling operating costs, and making prudent capital improvements.

Reconciliation of Operating Income (Loss) to Net Operating Income

Net operating income, or NOI, is a non-GAAP measure which we define as total real estate revenues less property operating expenses, including real estate taxes. We believe that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by depreciation, amortization, financing, property management overhead, casualty losses, and general and administrative expenses. 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.

	(in thousands, except percentages)
	Three Months Ended December 31,																Twelve Months Ended December 31,
	2019				2018				$ Change				% Change				2019				2018				$ Change				% Change
Operating income (loss)	$	2,466			$	1,551			$	915			59.0	%			$	11,417			$	(13,602	)		$	25,019			(183.9	)%
Adjustments:
Property management expenses	1,634				1,447				187				12.9	%			6,186				5,537				649				11.7	%
Casualty loss	205				540				(335		)		(62.0	)%			1,116				815				301				36.9	%
Depreciation and amortization	18,972				18,812				160				0.9	%			74,271				77,624				(3,353		)		(4.3	)%
Impairment	—				1,221				(1,221		)		(100.0	)%			—				19,030				(19,030		)		(100.0	)%
General and administrative expenses	3,647				3,769				(122		)		(3.2	)%			14,450				14,883				(433		)		(2.9	)%
Net operating income	$	26,924			$	27,340			$	(416	)		(1.5	)%			$	107,440			$	104,287			$	3,153			3.0	%
Revenue
Same-store	$	34,303			$	33,374			$	929			2.8	%			$	135,939			$	131,149			$	4,790			3.7	%
Non-same-store	8,089				4,608				3,481				75.5	%			25,495				15,646				9,849				62.9	%
Other properties and dispositions	3,385				7,748				(4,363		)		(56.3	)%			24,321				33,573				(9,252		)		(27.6	)%
Total	45,777				45,730				47				0.1	%			185,755				180,368				5,387				3.0	%
Property operating expenses, including real estate taxes
Same-store	14,715				13,832				883				6.4	%			58,155				56,047				2,108				3.8	%
Non-same-store	2,704				1,404				1,300				92.6	%			9,031				5,518				3,513				63.7	%
Other properties and dispositions	1,434				3,154				(1,720		)		(54.5	)%			11,129				14,516				(3,387		)		(23.3	)%
Total	18,853				18,390				463				2.5	%			78,315				76,081				2,234				2.9	%
Net operating income
Same-store	19,588				19,542				46				0.2	%			77,784				75,102				2,682				3.6	%
Non-same-store	5,385				3,204				2,181				68.1	%			16,464				10,128				6,336				62.6	%
Other properties and dispositions	1,951				4,594				(2,643		)		(57.5	)%			13,192				19,057				(5,865		)		(30.8	)%
Total	$	26,924			$	27,340			$	(416	)		(1.5	)%			$	107,440			$	104,287			$	3,153			3.0	%

S-4

Same-Store Expense Comparison

	(in thousands, except percentages)
	Three Months Ended December 31,																Twelve Months Ended December 31,
	2019				2018				$ Change				% Change				2019				2018				$ Change				% Change
Controllable expenses
Compensation	$	3,921			$	3,731			$	190			5.1	%			$	15,267			$	15,555			$	(288	)		(1.9	)%
Repairs and maintenance	2,904				2,429				475				19.6	%			11,137				10,452				685				6.6	%
Utilities	2,411				2,364				47				2.0	%			9,923				9,756				167				1.7	%
Administrative and marketing	771				743				28				3.8	%			3,024				2,891				133				4.6	%
Total	$	10,007			$	9,267			$	740			8.0	%			$	39,351			$	38,654			$	697			1.8	%
Non-controllable expenses
Real estate taxes	$	3,639			$	3,766			$	(127	)		(3.4	)%			$	15,116			$	14,853			$	263			1.8	%
Insurance	1,069				799				270				33.8	%			3,688				2,540				1,148				45.2	%
Total	4,708				4,565				143				3.1	%			18,804				17,393				1,411				8.1	%
Total	$	14,715			$	13,832			$	883			6.4	%			$	58,155			$	56,047			$	2,108			3.8	%

Reconciliation of Net Income (Loss) Available to Common Shareholders to Funds From Operations, Core Funds From Operations, and Adjusted Funds From Operations

We use the definition of FFO adopted by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit defines FFO as net income or loss calculated in accordance with GAAP, excluding:

• depreciation and amortization related to real estate;

• gains and losses from the sale of certain real estate assets; and

• impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Due to the limitations of the FFO definition adopted by Nareit, we have made certain interpretations in applying the definition. We believe that all such interpretations not specifically provided for in the Nareit definition are consistent with the definition. Nareit's FFO White Paper 2018 Restatement clarified that impairment write-downs of land related to a REIT's main business are excluded from FFO, and a REIT has the option to exclude impairment write-downs of assets that are incidental to the main business.

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 is not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. The exclusion in Nareit’s definition of FFO of impairment write-downs and gains and losses from the sale of 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.

While FFO is widely used by us as a primary performance metric, not all real estate companies use the same definition of FFO or calculate FFO in the same way. Accordingly, FFO presented here is not necessarily comparable to FFO presented by other real estate companies. FFO should not be considered as an alternative to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, and is not necessarily indicative of sufficient cash flow to fund all of our needs or our ability to service indebtedness or make distributions.

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 that 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 that may

S-5

be calculated differently by other REITs and that should not be considered a substitute for operating results determined in accordance with GAAP.

		(in thousands, except per share amounts)
		Three Months Ended																					Twelve Months Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/19				12/31/2018					12/31/2019				12/31/2018
Net (loss) income available to common shareholders		$	46,953			$	29,891			$	1,407			$	(6,403	)		$	(5,811	)			$	71,848			$	(21,844	)
Adjustments:
Noncontrolling interests - Operating Partnership		4,202				3,145				148				(743		)		(665		)			6,752				(2,553		)
Depreciation and amortization		18,972				18,751				18,437				18,111				18,812					74,271				77,624
Less depreciation - non real estate		(88		)		(71		)		(79		)		(85		)		(76		)			(322		)		(305		)
Less depreciation - partially owned entities		(454		)		(452		)		(474		)		(678		)		(680		)			(2,059		)		(2,795		)
Impairment of real estate		—				—				—				—				1,221					—				19,030
Gain on sale of real estate		(57,850		)		(39,105		)		(615		)		(54		)		(612		)			(97,624		)		(25,245		)
FFO applicable to common shares and Units		$	11,735			$	12,159			$	18,824			$	10,148			$	12,189				$	52,866			$	43,912
Adjustments to Core FFO:
Casualty loss write off		—				—				—				—				43					—				43
Loss on extinguishment of debt		864				1,087				407				2				5					2,360				678
Gain on litigation settlement		—				(300		)		(6,286		)		—				—					(6,586		)		—
Severance and transitions costs		—				—				—				—				—					—				811
Other miscellaneous items		(113		)		—				—				—				—					(113		)		—
Core FFO applicable to common shares and Units		$	12,486			$	12,946			$	12,945			$	10,150			$	12,237				$	48,527			$	45,444
FFO applicable to common shares and Units		$	11,735			$	12,159			$	18,824			$	10,148			$	12,189				$	52,866			$	43,912
Dividends to preferred unitholders		160				160				160				57				—					537				—
FFO applicable to common shares and Units - diluted		$	11,895			$	12,319			$	18,984			$	10,205			$	12,189				$	53,403			$	43,912
Core FFO applicable to common shares and Units		$	12,486			$	12,946			$	12,945			$	10,150			$	12,237				$	48,527			$	45,444
Dividends to preferred unitholders		160				160				160				57				—					537				—
Core FFO applicable to common shares and Units - diluted		$	12,646			$	13,106			$	13,105			$	10,207			$	12,237				$	49,064			$	45,444
Per Share Data
Earnings (loss) per share and unit - diluted		$	3.89			$	2.54			$	0.12			$	(0.54	)		$	(0.49	)			$	6.00			$	(1.83	)
FFO per share and unit - diluted		$	0.90			$	0.93			$	1.45			$	0.77			$	0.92				$	4.05			$	3.29
Core FFO per share and unit - diluted		$	0.96			$	0.99			$	1.00			$	0.77			$	0.92				$	3.72			$	3.41
Weighted average shares and units - diluted		13,188				13,087				13,197				13,230				13,317					13,182				13,344

S-6

Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted EBITDA

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, gain on litigation settlement, 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.

		(in thousands)
		Three Months Ended																					Twelve Months Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018					12/31/2019				12/31/2018
Net income (loss) attributable to controlling interests		$	48,658			$	31,596			$	3,113			$	(4,698	)		$	(4,106	)			$	78,669			$	(15,023	)
Adjustments:
Dividends to preferred unitholders		160				160				160				57				—					537				—
Noncontrolling interests – Operating Partnership		4,202				3,145				148				(743		)		(665		)			6,752				(2,553		)
Income (loss) before noncontrolling interests – Operating Partnership		53,020				34,901				3,421				(5,384		)		(4,771		)			85,958				(17,576		)
Adjustments:
Interest expense		7,112				7,448				7,343				7,558				7,336					29,461				31,193
Loss on extinguishment of debt		864				1,087				407				2				4					2,360				677
Depreciation/amortization related to real estate investments		18,518				18,299				17,963				17,433				18,133					72,213				74,832
Impairment of real estate investments		—				—				—				—				1,221					—				19,030
Interest income		(415		)		(402		)		(402		)		(407		)		(465		)			(1,626		)		(1,933		)
Gain (loss) on sale of real estate and other investments		(57,850		)		(39,105		)		(615		)		(54		)		(611		)			(97,624		)		(25,244		)
Gain on litigation settlement		—				(300		)		(6,286		)		—				—					(6,586		)		—
Other miscellaneous items		(113		)		—				—				—				—					(113		)		—
Adjusted EBITDA		$	21,136			$	21,928			$	21,831			$	19,148			$	20,847				$	84,043			$	80,979

S-7

IRET

DEBT ANALYSIS

(in thousands)

Debt Maturity Schedule

Annual Expirations

		Future Maturities of Debt
		Secured Fixed Debt				Unsecured Fixed Debt(1)				Unsecured Variable Debt				Total Debt				% of Total Debt			Weighted Average Interest Rate(2)
2020		$	9,533			$	—			$	79			$	9,612			1.5	%		4.84	%
2021		36,097				—				—				36,097				5.5	%		5.36	%
2022		34,449				50,000				—				84,449				13.0	%		3.80	%
2023		48,226				—				—				48,226				7.4	%		4.02	%
2024		—				70,000				—				70,000				10.7	%		3.68	%
Thereafter		203,071				200,000				—				403,071				61.9	%		3.90	%
Total debt		$	331,376			$	320,000			$	79			$	651,455			100.0	%		3.97	%

(1) Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of our variable interest, primary line of credit is fixed with an interest rate swap.

(2) Weighted average interest rate of debt that matures during the year, including the effect of interest rate swaps on the term loans and line of credit.

		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Debt Balances Outstanding(1)
Secured fixed rate		$	331,376			$	362,731			$	371,951			$	432,588			$	445,974
Unsecured fixed rate line of credit(2)		50,000				50,000				50,000				—				—
Secured line of credit(3)		—				—				15,000				15,000				—
Unsecured variable rate line of credit		79				53,143				112,939				103,677				57,500
Unsecured term loans		145,000				145,000				145,000				145,000				145,000
Unsecured senior notes		125,000				125,000				—				—				—
Debt total		$	651,455			$	735,874			$	694,890			$	696,265			$	648,474
Quarterly Weighted Average Interest Rates
Mortgage debt		4.02		%		4.15		%		4.37		%		4.54		%		4.58		%
Lines of credit (rate with swap)		3.52		%		3.73		%		3.91		%		3.89		%		3.72		%
Term loan (rate with swap)		4.19		%		4.14		%		4.14		%		3.99		%		4.01		%
Senior notes		3.78		%		3.78		%		—				—				—

(1) Includes mortgages on properties held for sale.

(2) A portion of our primary line of credit is fixed through an interest rate swap.

(3) Our revolving line of credit consists primarily of unsecured borrowings. A portion of the line was secured in connection with our acquisition of SouthFork Townhomes, under an agreement which allowed us to offer the seller tax protection upon purchase.

Debt Maturity by Quarter for the Next Two Years

Year		First Quarter				Second Quarter				Third Quarter				Fourth Quarter				Total
2020		$	—			$	79			$	—			$	9,533			$	9,612
2021		15,078				2,043				18,976				—				36,097
																		$	45,709

S-8

IRET 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Equity Capitalization
Common shares outstanding		12,099				11,625				11,656				11,768				11,942
Operating partnership units outstanding		1,058				1,223				1,224				1,365				1,368
Total common shares and Units outstanding		13,157				12,848				12,880				13,133				13,310
Market price per common share (closing price at end of period)		$	72.50			$	74.67			$	58.67			$	59.91			$	49.07
Equity capitalization-common shares and Units		$	953,883			$	959,360			$	755,670			$	786,798			$	653,122
Recorded book value of preferred shares		$	99,456			$	99,456			$	99,456			$	99,456			$	99,456
Total equity capitalization		$	1,053,339			$	1,058,816			$	855,126			$	886,254			$	752,578
Series D Preferred Units		$	16,560			$	16,560			$	16,560			$	16,560			—
Debt Capitalization
Total debt		651,455				735,874				694,889				696,265				648,474
Total capitalization		$	1,721,354			$	1,811,250			$	1,566,575			$	1,599,079			$	1,401,052
Total debt to total capitalization(1)		37.8%				40.6%				44.4%				43.5%				46.3%

(1) 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 common shares, operating partnership units, Series C preferred shares, and Series D preferred units outstanding at the end of the period.

		Three Months Ended																					Twelve Months Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018					12/31/2019				12/31/2018
Debt service coverage ratio(1)		2.39		x		2.26		x		2.24		x		1.86		x		2.07		x			2.18		x		1.77		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization		1.98		x		1.90		x		1.88		x		1.58		x		1.77		x			1.83		x		1.64		x
Net debt/Adjusted EBITDA(4)		7.19		x		8.29		x		7.76		x		8.79		x		7.61		x			7.23		x		7.84		x
Net debt and preferred equity/Adjusted EBITDA(4)		8.56		x		9.62		x		9.09		x		10.30		x		8.80		x			8.61		x		9.07		x
Distribution Data
Common shares and units outstanding at record date		13,157				12,848				12,914				13,135				13,276					13,157				13,276
Total common distribution declared		$	9,210			$	8,994			$	9,039			$	9,195			$	9,293				$	36,438			$	37,372
Common distribution per share and unit		$	0.70			$	0.70			$	0.70			$	0.70			$	0.70				$	2.80			$	2.80
Payout ratio (FFO per diluted share and unit basis)(2)		77.8		%		75.3		%		48.3		%		90.9		%		76.1		%			69.1		%		85.1		%
Payout ratio (Core FFO per diluted share and unit basis)(3)		72.9		%		70.7		%		70.0		%		90.9		%		76.1		%			75.3		%		82.1		%

(1) Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization.

(2) Payout ratio (FFO per diluted 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 diluted share and unit. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP.

(3) Payout ratio (Core FFO per diluted 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 Core FFO per diluted share and unit. This term is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP.

(4) Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). For the quarterly period presented, adjusted EBITDA is annualized. Net debt and adjusted EBITDA are non-GAAP measures and should not be considered a substitute for operating results determined in accordance with GAAP. Refer to the Adjusted EBITDA definition included within the Non-GAAP Financial Measures and Reconciliations section.

S-9

IRET

SAME-STORE FOURTH QUARTER COMPARISONS

($ in thousands)

		Homes Included			Revenues											Expenses											NOI
Regions					CY19Q4				CY18Q4				% Change			CY19Q4				CY18Q4				% Change			CY19Q4				CY18Q4				% Change
Minneapolis, MN		1,796			$	7,788			$	7,542			3.3	%		$	3,428			$	3,026			13.3	%		$	4,360			$	4,516			(3.5	)%
Rochester, MN		1,711			6,385				6,227				2.5	%		2,571				2,367				8.6	%		3,814				3,860				(1.2	)%
Grand Forks, ND		1,555			4,329				4,125				4.9	%		1,980				1,906				3.9	%		2,349				2,219				5.9	%
Omaha, NE		1,370			3,751				3,771				(0.5	)%		1,721				1,535				12.1	%		2,030				2,236				(9.2	)%
St. Cloud, MN		1,190			3,550				3,473				2.2	%		1,719				1,484				15.8	%		1,831				1,989				(7.9	)%
Bismarck, ND		845			2,755				2,595				6.2	%		982				1,128				(12.9	)%		1,773				1,467				20.9	%
Billings, MT		749			2,182				2,115				3.2	%		816				822				(0.7	)%		1,366				1,293				5.6	%
Minot, ND		712			2,123				2,155				(1.5	)%		921				1,037				(11.2	)%		1,202				1,118				7.5	%
Rapid City, SD		474			1,440				1,371				5.0	%		577				527				9.5	%		863				844				2.3	%
Same-Store Total		10,402			$	34,303			$	33,374			2.8	%		$	14,715			$	13,832			6.4	%		$	19,588			$	19,542			0.2	%

		% of NOI			Weighted Average Occupancy (1)									Weighted Average Monthly Rental Rate (2)											Weighted Average Monthly Revenue per Occupied Home (3)
Regions					CY19Q4			CY18Q4			Growth			CY19Q4				CY18Q4				% Change			CY19Q4				CY18Q4				% Change
Minneapolis, MN		22.3	%		91.9	%		92.7	%		(0.8	)%		$	1,467			$	1,418			3.5	%		$	1,573			$	1,511			4.1	%
Rochester, MN		19.5	%		94.5	%		95.1	%		(0.6	)%		1,251				1,212				3.2	%		1,316				1,276				3.1	%
Grand Forks, ND		12.0	%		94.8	%		91.8	%		3.0	%		903				913				(1.1	)%		978				964				1.9	%
Omaha, NE		10.4	%		93.5	%		95.8	%		(2.3	)%		897				876				2.4	%		977				958				1.8	%
St. Cloud, MN		9.3	%		94.0	%		95.2	%		(1.2	)%		950				945				0.5	%		1,058				1,021				3.4	%
Bismarck, ND		9.0	%		96.4	%		94.0	%		2.4	%		1,045				1,035				1.0	%		1,127				1,090				3.8	%
Billings, MT		7.0	%		95.4	%		96.5	%		(1.1	)%		935				906				3.2	%		1,017				976				4.3	%
Minot, ND		6.1	%		94.3	%		96.4	%		(2.1	)%		997				1,001				(0.4	)%		1,054				1,046				0.6	%
Rapid City, SD		4.4	%		96.2	%		96.7	%		(0.5	)%		961				933				3.0	%		1,052				996				5.5	%
Same-Store Total		100.0	%		94.0	%		94.3	%		(0.3	)%		$	1,085			$	1,064			2.0	%		$	1,169			$	1,134			3.1	%

(1) Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent.

(2) Weighted average monthly rental rate is scheduled rental revenue divided by the total number of homes. Scheduled rental revenue represents the value of all homes, with occupied homes valued at contractual rates pursuant to leases and vacant homes valued at estimated market rents. When calculating actual rents for occupied homes and market rents for vacant homes, delinquencies and concessions are not taken into account. The currently offered effective rates on new leases at the community are used as the starting point in determination of the market rates of vacant homes.

(3) Weighted average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment units for the period.

S-10

IRET

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

($ in thousands)

		Homes Included			Revenues											Expenses											NOI
Regions					CY19Q4				CY19Q3				% Change			CY19Q4				CY19Q3				% Change			CY19Q4				CY19Q3				% Change
Minneapolis, MN		1,796			$	7,788			$	7,773			0.2	%		$	3,428			$	3,360			2.0	%		$	4,360			$	4,413			(1.2	)%
Rochester, MN		1,711			6,385				6,446				(0.9	)%		2,571				2,386				7.8	%		3,814				4,060				(6.1	)%
Grand Forks, ND		1,555			4,329				4,287				1.0	%		1,980				1,882				5.2	%		2,349				2,405				(2.3	)%
Omaha, NE		1,370			3,751				3,738				0.3	%		1,721				1,740				(1.1	)%		2,030				1,998				1.6	%
St. Cloud, MN		1,190			3,550				3,517				0.9	%		1,719				1,557				10.4	%		1,831				1,960				(6.6	)%
Bismarck, ND		845			2,755				2,707				1.8	%		982				1,069				(8.1	)%		1,773				1,638				8.2	%
Billings, MT		749			2,182				2,144				1.8	%		816				882				(7.5	)%		1,366				1,262				8.2	%
Minot, ND		712			2,123				2,117				0.3	%		921				1,035				(11.0	)%		1,202				1,082				11.1	%
Rapid City, SD		474			1,440				1,424				1.1	%		577				574				0.5	%		863				850				1.5	%
Same-Store Total		10,402			$	34,303			$	34,153			0.4	%		$	14,715			$	14,485			1.6	%		$	19,588			$	19,668			(0.4	)%

		% of NOI			Weighted Average Occupancy									Weighted Average Monthly Rental Rate											Weighted Average Monthly Revenue per Occupied Home
Regions					CY19Q4			CY19Q3			Growth			CY19Q4				CY19Q3				% Change			CY19Q4				CY19Q3				% Change
Minneapolis, MN		22.3	%		91.9	%		90.8	%		1.1	%		$	1,467			$	1,478			(0.7	)%		$	1,573			$	1,590			(0.9	)%
Rochester, MN		19.5	%		94.5	%		94.6	%		(0.1	)%		1,251				1,257				(0.5	)%		1,316				1,327				(0.8	)%
Grand Forks, ND		12.0	%		94.8	%		94.1	%		0.7	%		903				908				(0.6	)%		978				977				0.3	%
Omaha, NE		10.4	%		93.5	%		93.0	%		0.5	%		897				900				(0.3	)%		977				977				(0.2	)%
St. Cloud, MN		9.3	%		94.0	%		93.8	%		0.2	%		950				959				(0.9	)%		1,058				1,050				0.7	%
Bismarck, ND		9.0	%		96.4	%		93.8	%		2.6	%		1,045				1,055				(0.9	)%		1,127				1,138				(0.8	)%
Billings, MT		7.0	%		95.4	%		95.0	%		0.4	%		935				941				(0.6	)%		1,017				1,004				1.4	%
Minot, ND		6.1	%		94.3	%		93.9	%		0.4	%		997				999				(0.2	)%		1,054				1,055				(0.1	)%
Rapid City, SD		4.4	%		96.2	%		96.1	%		0.1	%		961				963				(0.2	)%		1,052				1,042				1.0	%
Same-Store Total		100.0	%		94.0	%		93.4	%		0.6	%		$	1,085			$	1,092			(0.6	)%		$	1,169			$	1,172			(0.2	)%

S-11

IRET

SAME-STORE YEAR-TO-DATE COMPARISONS

($ in thousands)

		Homes Included			Revenues											Expenses											NOI
Regions					CY19				CY18				% Change			CY19				CY18				% Change			CY19				CY18				% Change
Minneapolis, MN		1,796			$	31,086			$	29,428			5.6	%		$	13,108			$	12,010			9.1	%		$	17,978			$	17,418			3.2	%
Rochester, MN		1,711			25,345				24,382				3.9	%		9,861				9,686				1.8	%		15,484				14,696				5.4	%
Grand Forks, ND		1,555			16,975				16,691				1.7	%		7,937				7,749				2.4	%		9,038				8,942				1.1	%
Omaha, NE		1,370			14,949				14,799				1.0	%		6,870				6,452				6.5	%		8,079				8,347				(3.2	)%
St. Cloud, MN		1,190			14,127				13,563				4.2	%		6,609				6,320				4.6	%		7,518				7,243				3.8	%
Bismarck, ND		845			10,797				10,418				3.6	%		4,214				4,301				(2.0	)%		6,583				6,117				7.6	%
Billings, MT		749			8,555				8,125				5.3	%		3,273				3,063				6.9	%		5,282				5,062				4.3	%
Minot, ND		712			8,503				8,367				1.6	%		3,999				4,215				(5.1	)%		4,504				4,152				8.5	%
Rapid City, SD		474			5,602				5,376				4.2	%		2,284				2,251				1.5	%		3,318				3,125				6.2	%
Same-Store Total		10,402			$	135,939			$	131,149			3.7	%		$	58,155			$	56,047			3.8	%		$	77,784			$	75,102			3.6	%

		% of NOI			Weighted Average Occupancy									Weighted Average Monthly Rental Rate											Weighted Average Monthly Revenue per Occupied Home
Regions					CY19			CY18			Growth			CY19				CY18				% Change			CY19				CY18				% Change
Minneapolis, MN		23.1	%		92.7	%		91.8	%		0.9	%		$	1,448			$	1,401			3.4	%		$	1,556			$	1,488			4.7	%
Rochester, MN		19.9	%		95.2	%		93.9	%		1.3	%		1,237				1,217				1.6	%		1,296				1,265				2.7	%
Grand Forks, ND		11.6	%		94.1	%		93.0	%		1.1	%		906				915				(1.0	)%		967				962				0.6	%
Omaha, NE		10.4	%		93.8	%		95.0	%		(1.2	)%		889				870				2.2	%		970				947				2.2	%
St. Cloud, MN		9.7	%		94.7	%		94.5	%		0.2	%		950				929				2.3	%		1,044				1,005				4.0	%
Bismarck, ND		8.5	%		95.2	%		93.9	%		1.3	%		1,043				1,044				(0.1	)%		1,118				1,094				2.3	%
Billings, MT		6.8	%		95.6	%		93.2	%		2.4	%		926				911				1.6	%		996				970				2.9	%
Minot, ND		5.8	%		94.8	%		94.9	%		(0.1	)%		997				1,002				(0.5	)%		1,050				1,032				1.7	%
Rapid City, SD		4.2	%		96.1	%		95.6	%		0.5	%		950				922				3.0	%		1,025				988				3.7	%
Same-Store Total		100.0	%		94.3	%		93.6	%		0.7	%		$	1,078			$	1,061			1.6	%		$	1,155			$	1,123			3.0	%

S-12

IRET

PORTFOLIO SUMMARY ⁽¹⁾ 

		Three Months Ended
		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Number of Units
Same-Store		10,402				11,785				12,848				12,848				12,847
Non-Same-Store		1,551				1,551				1,127				1,127				855
All Properties		11,953				13,336				13,975				13,975				13,702
Average Scheduled Rent(2) per Unit
Same-Store		$	1,085			$	1,062			$	1,028			$	1,013			$	1,018
Non-Same-Store		1,722				1,742				1,692				1,772				1,797
All Properties		$	1,168			$	1,123			$	1,081			$	1,064			$	1,066
Average Revenue per Occupied Home(3)
Same-Store		$	1,169			$	1,141			$	1,101			$	1,075			$	1,082
Non-Same-Store		1,869				1,887				1,848				1,943				1,939
All Properties		$	1,260			$	1,210			$	1,161			$	1,134			$	1,136
Weighted Average Occupancy(4)
Same-Store		94.0		%		93.3		%		94.3		%		95.6		%		94.4		%
Non-Same-Store		93.0		%		94.2		%		94.8		%		94.9		%		92.7		%
All Properties		93.8		%		93.4		%		94.4		%		95.5		%		94.2		%
Operating Expenses as a % of Scheduled Rent
Same-Store		43.5		%		43.0		%		42.8		%		45.6		%		42.4		%
Non-Same-Store		33.8		%		38.1		%		37.4		%		37.6		%		30.5		%
All Properties		41.6		%		42.3		%		42.2		%		44.7		%		41.1		%
Capital Expenditures
Total Capital Expenditures per Home – Same-Store		$	427			$	178			$	192			$	80			$	254

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

(2) Scheduled rent represents the value of all homes, with occupied homes valued at contractual rates pursuant to leases and vacant homes valued at estimated market rents. When calculating actual rents for occupied homes and market rents for vacant homes, delinquencies and concessions are not taken into account. Market rates are determined using the currently offered effective rates on new leases at the community and are used as the starting point in determination of the market rates of vacant homes. Average scheduled rent is scheduled rent divided by the total number of homes.

(3) Total revenues divided by the weighted average occupied homes for the period.

(4) Weighted average occupancy is the percentage resulting from dividing actual rental revenue by scheduled rent. We believe that weighted average occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Weighted average occupancy may not completely reflect short-term trends in physical occupancy, and our calculation of weighted average occupancy may not be comparable to that disclosed by other real estate companies.

S-13

IRET

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

		Three Months Ended
		12/31/2019				12/31/2018
Total Multifamily Same-Store Homes		10,402				10,402
Turnover		$	852			$	859
Furniture & Equipment		110				142
Building - Interior		138				249
Building - Exterior		2,370				1,220
Landscaping & Grounds		973				303
Capital Expenditures		$	4,443			$	2,773
CapEx per Home		$	427			$	267
Value Add		$	1,713			$	305
Total Capital Spend		$	6,156			$	3,078
Total Capital Spend per Home		$	592			$	296
All Properties - Weighted Average Homes		12,599				13,702
Capital Expenditures		$	4,939			$	3,810
CapEx per Home		392				278
Value Add		2,014				316
Acquisition Capital		1,814				$	62
Total Capital Spend		$	8,767			$	4,188
Total Capital Spend per Home		$	696			$	306

		Twelve Months Ended
		12/31/2019				12/31/2018
Total Multifamily Same-Store Homes		10,402				10,402
Turnover		$	3,140			$	3,558
Furniture & Equipment		294				324
Building - Interior		306				515
Building - Exterior		3,466				3,073
Landscaping & Grounds		1,854				1,109
Capital Expenditures		$	9,060			$	8,579
CapEx per Home		$	871			$	825
Value Add		$	4,375			$	1,836
Total Capital Spend		$	13,435			$	10,415
Total Capital Spend per Home		$	1,292			$	1,001
All Properties - Weighted Average Homes		13,552				13,875
Capital Expenditures		$	11,128			$	11,554
CapEx per Home		821				833
Value Add		5,011				1,882
Acquisition Capital		3,713				1,749
Total Capital Spend		$	19,852			$	15,185
Total Capital Spend per Home		$	1,465			$	1,094

S-14

IRET

2020 Financial Outlook

($ in thousands, except per share amounts)

We are providing guidance for 2020.

	12 Months Ended				2020 Full-Year Guidance Range
	December 31, 2019				Low				High
	Actuals				Amount				Amount
Same-store growth (1)
Revenue	$	155,414			2.50		%		4.00		%
Controllable expenses	$	43,670			1.50		%		3.00		%
Non-controllable expenses	$	21,229			10.50		%		12.50		%
Total Expenses	$	64,899			4.50		%		6.00		%
Same-store NOI (1)	$	90,515			1.00		%		3.00		%
Components of NOI
Same-store NOI (1)	$	90,515			$	91,420			$	93,230
Non-same-store NOI (1)	$	3,733			$	8,375			$	8,670
Other Commercial NOI (1)	$	2,357			$	2,605			$	2,800
Other Sold NOI (1)	$	10,835			—				—
Total NOI	$	107,440			$	102,400			$	104,700
Accretion from investments	—				1,450				1,550
Interest expense	$	(30,537	)		(27,700		)		(27,300		)
Preferred dividends	(6,821		)		(6,800		)		(6,800		)
Recurring income and expenses
Interest and other income	$	1,914			2,050				2,150
General and administrative	(14,384		)		(14,650		)		(14,350		)
Property management expenses	(6,186		)		(6,725		)		(6,475		)
Casualty losses	(1,116		)		(1,400		)		(1,150		)
Non-real estate depreciation and amortization	(322		)		(300		)		(300		)
Non-controlling interest	(924		)		(1,125		)		(1,075		)
Total recurring income and expenses	$	(21,018	)		(22,150		)		$	(21,200	)
FFO	$	53,403			$	47,200			$	50,950
FFO per diluted share	$	4.05			$	3.52			$	3.80
Non-core income and expenses
Gain (loss) on early retirement of debt, net	$	(2,360	)		$	—			$	—
Gain (loss) on litigation settlement	6,586				—				—
Other miscellaneous items	113				—				—
Total non-core income and expenses	$	4,339			$	—			$	—
Core FFO	$	49,064			$	47,200			$	50,950
Core FFO per diluted share	$	3.72			$	3.52			$	3.80
EPS - Diluted	$	6.00			$	(1.35	)		$	(1.07	)
Weighted average shares outstanding - diluted	13,182				13,410				13,410

(1) Amounts for the year ended December 31, 2019 reflect the 2020 same-store pool.

Additional assumptions:

• Same-store capital expenditures of $825 per home to $900 per home

• Value-add expenditures of $10.0 million to $15.0 million

• Investments of $66.0 million to $72.0 million

S-15

Reconciliation of Net Income (Loss) Available to Common Shareholders to FFO and Core FFO

The following table presents reconciliations of Net income (loss) available to common shareholders to FFO and Core FFO, which are non-GAAP measures described in greater detail under "Non-GAAP Financial Measures and Reconciliations." They should not be considered as alternatives to net income or any other GAAP measurement of performance, but rather should be considered as an additional, supplemental measure. FFO also does not represent cash generated from operating activities in accordance with GAAP, and is not necessarily indicative of sufficient cash flow to fund all of our needs or our ability to service indebtedness or make distributions. The outlook and projections provided below are based on current expectations and are forward-looking.

						Outlook
	12 Months Ended					12 Months Ended
	December 31, 2019					December 31, 2020
	Amount					Low				High
Net income (loss) available to common shareholders	$	71,848				$	(17,340	)		$	(13,590	)
Noncontrolling interests - Operating Partnership	6,752					(1,380		)		(1,380		)
Depreciation and amortization	71,890					65,280				65,280
Gain on sale of real estate attributable to controlling interests	(97,624		)			—				—
Dividends to preferred unitholders	$	537				$	640			$	640
FFO applicable to common shares and Units	$	53,403				$	47,200			$	50,950
Adjustments to Core FFO:
Casualty loss write off	—					—				—
Loss on extinguishment of debt	2,360					—				—
Gain on litigation settlement	(6,586		)			—				—
Other miscellaneous items	(113		)			—				—
Core FFO applicable to common shares and Units	$	49,064				$	47,200			$	50,950
Earnings per share - diluted	$	6.00				$	(1.35	)		$	(1.07	)
FFO per share - diluted	$	4.05				$	3.52			$	3.80
Core FFO per share - diluted	$	3.72				$	3.52			$	3.80

S-16