Exhibit 99.1

Earnings Release

IRET Reports Third Quarter 2020 Financial and Operating Results

MINNEAPOLIS, MN, November 2, 2020 – IRET (NYSE: IRET) announced today its financial and operating results for the quarter ended September 30, 2020. The tables below show Net Income, Funds from Operations (“FFO”), and Core FFO, all on a per share basis, for the three and nine months ended September 30, 2020; Same-Store Revenues, Expenses, and Net Operating Income ("NOI") over comparable periods; and Same-Store Weighted-Average Occupancy for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019.

						Three Months Ended September 30,												Nine Months Ended September 30,
Per Share						2020						2019						2020						2019
Net Income - diluted						$	1.38					$	2.54					$	0.33					$	2.11
FFO - diluted						$	0.90					$	0.93					$	2.49					$	3.15
Core FFO - diluted						$	0.94					$	0.99					$	2.76					$	2.76

						Year-Over-Year Comparison						Sequential Comparison						YTD Comparison
Same-Store Results						Q3 2020 vs. Q3 2019						Q3 2020 vs. Q2 2020						2020 vs. 2019
Revenues						1.1		%				0.6		%				2.1		%
Expenses						4.6		%				5.7		%				3.6		%
NOI						(1.3)		%				(3.0)		%				1.0		%

						Three months ended
Same-Store Results						September 30, 2020						June 30, 2020						September 30, 2019
Weighted Average Occupancy						94.4		%				94.6		%				93.5		%

Highlights

•Net Income was $1.38 per diluted share for the third quarter of 2020, compared to Net Income of $2.54 per diluted share for the same period of 2019;

•Core FFO increased 3.3% to $0.94 per diluted share for the three months ended September 30, 2020, compared to $0.91 for the three months ended June, 30, 2020. Core FFO for the nine months ended September, 30, 2020 remains unchanged compared to the same period of 2019;

•Total collections were 98.8% of expected residential revenue for the third quarter of 2020, compared to 99.6% for the same period of 2019 and 99.1% for second quarter 2020;

•Physical occupancy for same-store communities was 95.3% for the three months ended September 30, 2020, compared to 94.3% for the same period of 2019 and 94.8% for second quarter 2020;

•Same-store controllable expenses (which exclude taxes and insurance) decreased 2.0% for the nine months ended September 30, 2020 as compared to the same period of 2019, contributing to NOI growth of 1.0%;

•Same-store new lease rates remained flat for the third quarter of 2020, compared to a decline of (1.2%) in Q2 2020;

•Continued to strengthen our balance sheet by issuing 144,822 common shares under our 2019 ATM program for net proceeds of $10.2 million; and

•Continued to grow our portfolio in our core market of Denver through the acquisition of Parkhouse Apartment Homes, a 465-home apartment community in Thornton, Colorado.

NOI, FFO, Core FFO, and same-store controllable expenses 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.

1

Acquisitions and Dispositions

During the quarter, we acquired Parkhouse Apartment Homes, a 465-home apartment community in Thornton, Colorado for a total purchase price of $144.8 million. During the quarter we disposed of four apartment communities in Grand Forks, North Dakota and a commercial property for an aggregate sale price of $43.0 million.

Balance Sheet

At the end of the third quarter, we had $131.8 million of total liquidity on our balance sheet, consisting of $115.0 million available under our line of credit and cash and cash equivalents of $16.8 million. At the end of the second quarter, we had $239.7 million of total liquidity on our balance sheet, consisting of $187.0 million available on our line of credit and cash and cash equivalents of $52.7 million. The decline in total liquidity since the end of the second quarter is primarily a result of funding our acquisition of Parkhouse Apartment Homes.

As of September 30, 2020, we had 45 unencumbered apartment communities, representing 64.6% of third quarter multifamily NOI, of which 4 apartment communities, representing 5.4% of third quarter NOI, are not pledged under the Unencumbered Asset Pool ("UAP").

2020 Financial Outlook

On March 27, 2020 we issued a press release indicating that in light of the impact of COVID-19 on our business and results of operations, we were withdrawing our 2020 Financial Outlook. Given the ongoing impact of COVID-19, we are not providing an updated 2020 Financial Outlook at this time.

COVID-19 Developments

The COVID-19 pandemic, including the associated economic disruptions, has continued to impact our business and operations since March 2020.

IRET's first priority amid the COVID-19 pandemic has been the health and well-being of our residents, team members, and the communities we serve. In response, IRET has enhanced cleaning protocols at our communities and offices, implemented physical distancing in communities common spaces, and instituted remote work guidelines for our team members, all in accordance with state and local guidelines. We are utilizing technology to allow our property teams to interact remotely with prospective residents through virtual leasing. We have provided rent deferrals to residents and rent abatement to commercial tenants who were financially impacted by the COVID-19 pandemic. To support our team members working on-site, IRET has provided additional COVID-19 paid time off and enhanced flextime arrangements.

A discussion of the ongoing and potential effects of the COVID-19 pandemic on our financial condition, results of operations, and cash flows can be found in the Management's Discussion and Analysis of Financial Conditions and Results of Operations presented in our Quarterly Report on Form 10-Q for the quarter ended September, 30, 2020.

For a more detailed description of the risks and uncertainties affecting our business, see the risk factors presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated under Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, and in our subsequent current and periodic reports filed with the Securities and Exchange Commission at www.sec.gov.

Upcoming Events

IRET is scheduled to participate in the upcoming National Association of Real Estate Investment Trusts ("Nareit") REITworld 2020 Annual Conference, which will be held virtually November 17-19.

Quarterly Distributions

Effective September 4, 2020, IRET’s Board of Trustees declared a regular quarterly distribution of $0.70 per share/unit, which was paid on October 9, 2020, to common shareholders and unitholders of record on September 30, 2020. IRET has paid cash dividends to common shareholders and unitholders every quarter since its initial dividend payment in 1971.

Effective September 4, 2020, IRET's Board of Trustees also declared a distribution of $0.4140625 per share on the 6.625% Series C Cumulative Redeemable Preferred Shares (NYSE: IRET-PC), which was paid on September 30, 2020, to holders of record at the close of business on September 15, 2020. 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

Tuesday, November 3, 2020, at 10:00 AM ET

Replay available until November 17, 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

10147829

Supplemental Information

Supplemental Operating and Financial Data for the quarter ended September 30, 2020 included herein (“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.  

About IRET

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of September 30, 2020, we owned interests in 67 apartment communities consisting of 11,910 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 PC," respectively).

Forward-Looking Statements

Certain statements in this press release and the accompanying Supplemental Operating and Financial Data are based on our current expectations and assumptions, and are “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. 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 those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, 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 our subsequent quarterly reports on Form 10-Q, including the COVID-19 risk factors set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, 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

Emily Miller

Investor Relations

Phone: 701-837-7104

E-mail: IR@iret.com

3

Supplemental Financial and Operating Data

Table of Contents

September 30, 2020

			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			S-4
Same-Store Controllable Expenses			S-5
Funds From Operations			S-6
Adjusted EBITDA			S-8
Debt and Capital Analysis
Debt Analysis			S-9
Capital Analysis			S-10
COVID-19 Update			S-11
Portfolio Analysis
Same-Store Comparison			S-12
Portfolio Summary			S-15
Capital Expenditures			S-16

Common Share Data (NYSE: IRET)

						3rd Quarter						2nd Quarter						1st Quarter						4th Quarter						3rd Quarter
						2020						2020						2020						2019						2019
High closing price						$	73.53					$	76.82					$	84.68					$	78.91					$	74.67
Low closing price						$	61.87					$	44.36					$	52.55					$	71.74					$	59.22
Average closing price						$	70.15					$	63.91					$	71.62					$	74.67					$	66.83
Closing price at end of quarter						$	65.17					$	70.49					$	55.00					$	72.50					$	74.67
Common share distributions – annualized						$	2.80					$	2.80					$	2.80					$	2.80					$	2.80
Closing dividend yield – annualized						4.3		%				4.0		%				5.1		%				3.9		%				3.8		%
Closing common shares outstanding (thousands)						12,976						12,827						12,164						12,099						11,625
Closing limited partnership units outstanding (thousands)						1,018						1,022						1,044						1,058						1,223
Closing market value of outstanding common shares, plus imputed closing market value of outstanding limited partnership units (thousands)						$	911,989					$	976,216					$	726,440					$	953,883					$	959,360

S-1

IRET

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands)

						Three Months Ended																																	Nine Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019									9/30/2020						9/30/2019
REVENUE						$	44,138					$	43,910					$	44,406					$	45,777					$	47,436								$	132,454					$	139,978
EXPENSES
Property operating expenses, excluding real estate taxes						13,129						12,360						13,468						14,018						14,485									38,957						43,231
Real estate taxes						5,402						5,410						5,465						4,835						5,425									16,277						16,231
Property management expense						1,442						1,345						1,554						1,634						1,553									4,341						4,552
Casualty loss						91						913						327						205						178									1,331						911
Depreciation/amortization						18,995						18,156						18,160						18,972						18,751									55,311						55,299
General and administrative expenses						3,077						3,202						3,428						3,647						3,448									9,707						10,803
TOTAL EXPENSES						$	42,136					$	41,386					$	42,402					$	43,311					$	43,840								$	125,924					$	131,027
Operating income						2,002						2,524						2,004						2,466						3,596									6,530						8,951
Interest expense						(6,771)						(6,940)						(6,911)						(7,357)						(7,694)									(20,622)						(23,180)
Loss on extinguishment of debt						(4)						(17)						—						(864)						(1,087)									(21)						(1,496)
Interest and other income (loss)						281						538						(2,777)						702						498									(1,958)						1,390
Income (loss) before gain (loss) on sale of real estate and other investments, and gain (loss) on litigation settlement						(4,492)						(3,895)						(7,684)						(5,053)						(4,687)									(16,071)						(14,335)
Gain (loss) on sale of real estate and other investments						25,676						(190)						—						57,850						39,105									25,486						39,774
Gain (loss) on litigation settlement						—						—						—						—						300									—						6,586
Net income (loss)						$	21,184					$	(4,085)					$	(7,684)					$	52,797					$	34,718								$	9,415					$	32,025
Dividends to preferred unitholders						(160)						(160)						(160)						(160)						(160)									(480)						(377)
Net (income) loss attributable to noncontrolling interest – Operating Partnership						(1,387)						447						692						(4,202)						(3,145)									(248)						(2,550)
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities						(8)						(5)						145						223						183									132						913
Net income (loss) attributable to controlling interests						19,629						(3,803)						(7,007)						48,658						31,596									8,819						30,011
Dividends to preferred shareholders						(1,607)						(1,609)						(1,705)						(1,705)						(1,705)									(4,921)						(5,116)
Discount (premium) on redemption of preferred shares						(1)						25						273						—						—									297						—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS						$	18,021					$	(5,387)					$	(8,439)					$	46,953					$	29,891								$	4,195					$	24,895
Per Share Data - Basic
Net earnings (loss) per common share – basic						$	1.40					$	(0.44)					$	(0.69)					$	3.95					$	2.57								$	0.33					$	2.11
Per Share Data - Diluted
Net earnings (loss) per common share – diluted						$	1.38					$	(0.44)					$	(0.67)					$	3.89					$	2.54								$	0.33					$	2.11

S-2

IRET

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
ASSETS
Real estate investments
Property owned						$	1,805,390					$	1,694,033					$	1,687,436					$	1,643,078					$	1,720,352
Less accumulated depreciation						(380,392)						(383,917)						(366,307)						(349,122)						(370,492)
						1,424,998						1,310,116						1,321,129						1,293,956						1,349,860
Unimproved land						—						—						1,376						1,376						1,376
Mortgage loans receivable						17,986						10,961						16,775						16,140						10,140
Total real estate investments						1,442,984						1,321,077						1,339,280						1,311,472						1,361,376
Cash and cash equivalents						16,804						52,714						26,338						26,579						8,500
Restricted cash						2,199						2,535						2,344						19,538						3,339
Other assets						16,947						16,484						21,124						34,829						30,589
TOTAL ASSETS						$	1,478,934					$	1,392,810					$	1,389,086					$	1,392,418					$	1,403,804
LIABILITIES, MEZZANINE EQUITY, AND EQUITY
LIABILITIES
Accounts payable and accrued expenses						$	58,596					$	54,883					$	52,337					$	47,155					$	40,546
Revolving line of credit						135,000						63,000						83,000						50,079						103,143
Notes payable, net of loan costs						269,202						269,155						269,106						269,058						269,006
Mortgages payable, net of loan costs						313,065						323,705						328,367						329,664						360,886
TOTAL LIABILITIES						$	775,863					$	710,743					$	732,810					$	695,956					$	773,581
SERIES D PREFERRED UNITS						$	16,560					$	16,560					$	16,560					$	16,560					$	16,560
EQUITY
Series C Preferred Shares of Beneficial Interest						93,530						93,579						96,046						99,456						99,456
Common Shares of Beneficial Interest						968,436						958,292						912,653						917,400						886,598
Accumulated distributions in excess of net income						(412,577)						(421,515)						(407,150)						(390,196)						(428,680)
Accumulated other comprehensive income (loss)						(17,256)						(18,139)						(17,360)						(7,607)						(9,793)
Total shareholders’ equity						$	632,133					$	612,217					$	584,189					$	619,053					$	547,581
Noncontrolling interests – Operating Partnership						53,669						52,558						54,777						55,284						60,169
Noncontrolling interests – consolidated real estate entities						709						732						750						5,565						5,913
Total equity						$	686,511					$	665,507					$	639,716					$	679,902					$	613,663
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY						$	1,478,934					$	1,392,810					$	1,389,086					$	1,392,418					$	1,403,804

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 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																					Sequential												Year-Over-Year
			9/30/2020						6/30/2020						9/30/2019									$ Change						% Change						$ Change						% Change
Operating income			$	2,002					$	2,524					$	3,596								$	(522)					(20.7)		%				$	(1,594)					(44.3)		%
Adjustments:
Property management expenses			1,442						1,345						1,553									97						7.2		%				(111)						(7.1)		%
Casualty loss			91						913						178									(822)						(90.0)		%				(87)						(48.9)		%
Depreciation and amortization			18,995						18,156						18,751									839						4.6		%				244						1.3		%
General and administrative expenses			3,077						3,202						3,448									(125)						(3.9)		%				(371)						(10.8)		%
Net operating income			$	25,607					$	26,140					$	27,526								$	(533)					(2.0)		%				$	(1,919)					(7.0)		%
Revenue
Same-store			$	38,043					$	37,831					$	37,627								$	212					0.6		%				$	416					1.1		%
Non-same-store			4,420						4,157						1,344									263						6.3		%				3,076						228.9		%
Other properties and dispositions			1,675						1,922						8,465									(247)						(12.9)		%				(6,790)						(80.2)		%
Total			44,138						43,910						47,436									228						0.5		%				(3,298)						(7.0)		%
Property operating expenses, including real estate taxes
Same-store			16,198						15,319						15,493									879						5.7		%				705						4.6		%
Non-same-store			1,712						1,514						550									198						13.1		%				1,162						211.3		%
Other properties and dispositions			621						937						3,867									(316)						(33.7)		%				(3,246)						(83.9)		%
Total			18,531						17,770						19,910									761						4.3		%				(1,379)						(6.9)		%
Net operating income
Same-store			21,845						22,512						22,134									(667)						(3.0)		%				(289)						(1.3)		%
Non-same-store			2,708						2,643						794									65						2.5		%				1,914						241.1		%
Other properties and dispositions			1,054						985						4,598									69						7.0		%				(3,544)						(77.1)		%
Total			$	25,607					$	26,140					$	27,526								$	(533)					(2.0)		%				$	(1,919)					(7.0)		%

S-4

			Nine Months Ended September 30,
			2020						2019						$ Change						% Change
Operating income			$	6,530					$	8,951					$	(2,421)					(27.0)		%
Adjustments:
Property management expenses			4,341						4,552						(211)						(4.6)		%
Casualty loss			1,331						911						420						46.1		%
Depreciation and amortization			55,311						55,299						12						—
General and administrative expenses			9,707						10,803						(1,096)						(10.1)		%
Net operating income			$	77,220					$	80,516					$	(3,296)					(4.1)		%
Revenue
Same-store			$	114,208					$	111,897					$	2,311					2.1		%
Non-same-store			12,088						2,829						9,259						327.3		%
Other properties and dispositions			6,158						25,252						(19,094)						(75.6)		%
Total			132,454						139,978						(7,524)						(5.4)		%
Property operating expenses, including real estate taxes
Same-store			47,857						46,190						1,667						3.6		%
Non-same-store			4,546						1,197						3,349						279.8		%
Other properties and dispositions			2,831						12,075						(9,244)						(76.6)		%
Total			55,234						59,462						(4,228)						(7.1)		%
Net operating income
Same-store			66,351						65,707						644						1.0		%
Non-same-store			7,542						1,632						5,910						362.1		%
Other properties and dispositions			3,327						13,177						(9,850)						(74.8)		%
Total			$	77,220					$	80,516					$	(3,296)					(4.1)		%

Reconciliation of Same-Store Controllable Expenses to Total Property Operating Expenses, Including Real Estate Taxes

Same-store controllable expenses exclude real estate taxes and insurance, in order to provide a measure of expenses that are within management's control, and is used for the purposes of budgeting, business planning, and performance evaluation. This is a non-GAAP measure and should not be considered an alternative to total expenses or total property operating expenses.

			(in thousands, except percentages)
			Three Months Ended September 30,																											Nine Months Ended September 30,
			2020						2019						$ Change						% Change									2020						2019						$ Change						% Change
Controllable expenses
On-site compensation(1)			$	4,290					$	3,978					$	312					7.8		%							$	12,705					$	11,779					$	926					7.9		%
Repairs and maintenance			2,764						2,805						(41)						(1.5)		%							7,431						8,413						(982)						(11.7)		%
Utilities			2,532						2,508						24						1.0		%							7,517						7,884						(367)						(4.7)		%
Administrative and marketing			820						882						(62)						(7.0)		%							2,501						2,702						(201)						(7.4)		%
Total			$	10,406					$	10,173					$	233					2.3		%							$	30,154					$	30,778					$	(624)					(2.0)		%
Non-controllable expenses
Real estate taxes			$	4,632					$	4,265					$	367					8.6		%							$	14,028					$	12,738					$	1,290					10.1		%
Insurance			1,160						1,055						105						10.0		%							3,675						2,674						1,001						37.4		%
Total			$	5,792					$	5,320					$	472					8.9		%							$	17,703					$	15,412					$	2,291					14.9		%
Property operating expenses, including real estate taxes - non-same-store			$	1,712					$	550					$	1,162					211.3		%							$	4,546					$	1,197					$	3,349					279.8		%
Property operating expenses, including real estate taxes - other properties and dispositions			621						3,867						(3,246)						(83.9)		%							2,831						12,075						(9,244)						(76.6)		%
Total property operating expenses, including real estate taxes			$	18,531					$	19,910					$	(1,379)					(6.9)		%							$	55,234					$	59,462					$	(4,228)					(7.1)		%

(1)On-site compensation for administration, leasing, and maintenance personnel.

S-5

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

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 does not assume that the value of real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation.

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.

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.

Due to the limitations of the Nareit FFO definition, we have made certain interpretations in applying this definition. We believe that all such interpretations not specifically identified in the Nareit definition are consistent with this 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 its main business.

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

S-6

						(in thousands, except per share amounts)
						Three Months Ended																																	Nine Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019									9/30/2020						9/30/2019
Funds From Operations
Net income (loss) available to common shareholders						$	18,021					$	(5,387)					$	(8,439)					$	46,953					$	29,891								$	4,195					$	24,895
Adjustments:
Noncontrolling interests – Operating Partnership						1,387						(447)						(692)						4,202						3,145									248						2,550
Depreciation and amortization						18,995						18,156						18,160						18,972						18,751									55,311						55,299
Less depreciation – non real estate						(85)						(88)						(93)						(88)						(71)									(266)						(235)
Less depreciation – partially owned entities						(31)						(33)						(282)						(454)						(452)									(346)						(1,604)
(Gain) loss on sale of real estate						(25,676)						190						—						(57,850)						(39,105)									(25,486)						(39,774)
FFO applicable to common shares and Units						$	12,611					$	12,391					$	8,654					$	11,735					$	12,159								$	33,656					$	41,131
Adjustments to Core FFO:
Casualty loss (recovery)						545						—						—						—						—									545						—
Loss on extinguishment of debt						4						17						—						864						1,087									21						1,496
Gain on litigation settlement						—						—						—						—						(300)									—						(6,586)
(Gain) loss on marketable securities						—						(175)						3,553						(113)						—									3,378						—
(Discount) premium on redemption of preferred shares						1						(25)						(273)						—						—									(297)						—
Core FFO applicable to common shares and Units						$	13,161					$	12,208					$	11,934					$	12,486					$	12,946								$	37,303					$	36,041
Funds from operations applicable to common shares and Units						$	12,611					$	12,391					$	8,654					$	11,735					$	12,159								$	33,656					$	41,131
Dividends to preferred unitholders						160						160						160						160						160									480						377
Funds from operations applicable to common shares and Units - diluted						$	12,771					$	12,551					$	8,814					$	11,895					$	12,319								$	34,136					$	41,508
Core funds from operations applicable to common shares and Units						$	13,161					$	12,208					$	11,934					$	12,486					$	12,946								$	37,303					$	36,041
Dividends to preferred unitholders						160						160						160						160						160									480						377
Core funds from operations applicable to common shares and Units - diluted						$	13,321					$	12,368					$	12,094					$	12,646					$	13,106								$	37,783					$	36,418
Per Share Data
Earnings (loss) per share and Unit - diluted						$	1.38					$	(0.44)					$	(0.67)					$	3.89					$	2.54								$	0.33					$	2.11
FFO per share and Unit - diluted						$	0.90					$	0.93					$	0.66					$	0.90					$	0.93								$	2.49					$	3.15
Core FFO per share and Unit - diluted						$	0.94					$	0.91					$	0.90					$	0.96					$	0.99								$	2.76					$	2.76
Weighted average shares and Units - diluted						14,143						13,558						13,401						13,188						13,087									13,704						13,174

S-7

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. Adjusted EBITDA is a non-GAAP measure and should not be considered a substitute for operating results determined in accordance with GAAP.

						(in thousands)
						Three Months Ended																																	Nine Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019									9/30/2020						9/30/2019
Adjusted EBITDA
Net income (loss) available to common shareholders						$	19,629					$	(3,803)					$	(7,007)					$	48,658					$	31,596								$	8,819					$	30,011
Adjustments:
Dividends to preferred unitholders						160						160						160						160						160									480						377
Noncontrolling interests – Operating Partnership						1,387						(447)						(692)						4,202						3,145									248						2,550
Income (loss) before noncontrolling interests – Operating Partnership						$	21,176					$	(4,090)					$	(7,539)					$	53,020					$	34,901								$	9,547					$	32,938
Adjustments:
Interest expense						6,756						6,926						6,764						7,112						7,448									20,446						22,349
Loss on extinguishment of debt						4						17						—						864						1,087									21						1,496
Depreciation/amortization related to real estate investments						18,964						18,123						17,878						18,518						18,299									54,965						53,695
Casualty loss (recovery)						545						—						—						—						—									545						—
Interest income						(256)						(331)						(597)						(415)						(402)									(1,184)						(1,211)
(Gain) loss on sale of real estate and other investments						(25,676)						190						—						(57,850)						(39,105)									(25,486)						(39,774)
Gain on litigation settlement						—						—						—						—						(300)									—						(6,586)
(Gain) loss on marketable securities						—						(175)						3,553						(113)						—									3,378						—
Adjusted EBITDA						$	21,513					$	20,660					$	20,059					$	21,136					$	21,928								$	62,232					$	62,907

S-8

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 (remainder)						—						—						—						—						—						—
2021						$	35,281					$	—					$	—					$	35,281					4.9		%				5.36		%
2022						33,754						50,000						85,000						168,754						23.5		%				2.71		%
2023						43,996						—						—						43,996						6.1		%				4.02		%
2024						—						70,000						—						70,000						9.8		%				3.67		%
Thereafter						201,480						200,000						—						401,480						55.7		%				3.90		%
Total debt						$	314,511					$	320,000					$	85,000					$	719,511					100.0		%				3.68		%

(1)Term loans have variable interest rates that are fixed with interest rate swaps and $50.0 million of our variable interest, 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.

						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
Debt Balances Outstanding
Secured fixed rate						$	314,511					$	325,230					$	329,988					$	331,376					$	362,731
Unsecured fixed rate line of credit(1)						50,000						50,000						50,000						50,000						50,000
Unsecured variable rate line of credit						85,000						13,000						33,000						79						53,143
Unsecured term loans						145,000						145,000						145,000						145,000						145,000
Unsecured senior notes						125,000						125,000						125,000						125,000						125,000
Debt total						$	719,511					$	658,230					$	682,988					$	651,455					$	735,874
Mortgage debt weighted average interest rate						3.99		%				4.01		%				4.01		%				4.02		%				4.15		%
Lines of credit rate (rate with swap)						3.35		%				2.97		%				3.18		%				3.52		%				3.73		%
Term loan rate (rate with swap)						4.18		%				4.12		%				4.13		%				4.19		%				4.14		%
Senior notes rate						3.78		%				3.78		%				3.78		%				3.78		%				3.78		%

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

S-9

IRET 

CAPITAL ANALYSIS 

(in thousands, except per share and unit amounts)

						Three Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
Equity Capitalization
Common shares outstanding						12,976						12,827						12,164						12,099						11,625
Operating partnership units outstanding						1,018						1,022						1,044						1,058						1,223
Total common shares and units outstanding						13,994						13,849						13,208						13,157						12,848
Market price per common share (closing price at end of period)						$	65.17					$	70.49					$	55.00					$	72.50					$	74.67
Equity capitalization-common shares and units						$	911,989					$	976,216					$	726,440					$	953,883					$	959,360
Recorded book value of preferred shares						$	93,530					$	93,579					$	96,046					$	99,456					$	99,456
Total equity capitalization						$	1,005,519					$	1,069,795					$	822,486					$	1,053,339					$	1,058,816
Series D Preferred Units						$	16,560					$	16,560					$	16,560					$	16,560					$	16,560
Debt Capitalization
Total debt						$	719,511					$	658,230					$	682,988					$	651,455					$	735,874
Total capitalization						$	1,741,590					$	1,744,585					$	1,522,034					$	1,721,354					$	1,811,250
Total debt to total capitalization(1)						41.3		%				37.7		%				44.9		%				37.8		%				40.6		%

(1)Total debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet, market value of common shares and operating partnership units, and book value of Series C preferred shares and Series D preferred units outstanding at the end of the period.

						Three Months Ended																																	Nine Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019									9/30/2020						9/30/2019
Debt service coverage ratio(1)						2.65		x				2.48		x				2.42		x				2.39		x				2.26		x							2.52		x				2.11		x
Adjusted EBITDA/Interest expense plus preferred distributions and principal amortization						2.21		x				2.05		x				1.97		x				1.98		x				1.90		x							2.08		x				1.78		x
Net debt/Adjusted EBITDA(2)						8.17		x				7.33		x				8.18		x				7.19		x				8.29		x							8.47		x				8.67		x
Net debt and preferred equity/Adjusted EBITDA(2)						9.45		x				8.66		x				9.59		x				8.56		x				9.62		x							9.80		x				10.06		x
Distribution Data
Common shares and Units outstanding at record date						13,994						13,849						13,208						13,157						12,848									13,994						12,848
Total common distribution declared						$	9,796					$	9,694					$	9,245					$	9,210					$	8,994								$	28,735					$	27,228
Common distribution per share and Unit						$	0.70					$	0.70					$	0.70					$	0.70					$	0.70								$	2.10					$	2.10
Payout ratio (Core FFO per diluted share and unit basis)(3)						74.5		%				76.9		%				77.8		%				72.9		%				70.7		%							76.1		%				76.1		%

(1)Debt service coverage ratio is computed by dividing Adjusted EBITDA by interest expense and principal amortization. This term is a non-GAAP measure 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.

(2)Net debt is the total debt balance less cash and cash equivalents and net tax deferred exchange proceeds (included within restricted cash). Adjusted EBITDA is annualized for periods less than one year. 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.

(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.

S-10

IRET

COVID-19 UPDATE

(in thousands, except property data amounts and percentages)

Collections by State

									Three Months Ended September 30, 2020
State			Number of Communities			Number of Homes			% of Total Revenue			Bad Debt(1) as % of Expected Residential Revenue
Minnesota			32			5,438			50.5		%	1.9		%
Colorado			4			1,457			13.0		%	1.1		%
Nebraska			6			1,370			9.1		%	0.1		%
North Dakota			15			2,422			18.5		%	—
South Dakota			5			474			3.5		%	0.3		%
Montana			5			749			5.4		%	1.1		%
Total			67			11,910			100.0		%	1.2		%

(1)Bad debt is reported as a reduction of revenue.

Operating Statistics

						Three Months Ended
						September 30, 2020			June 30, 2020			September 30, 2019
Bad debt as a % of expected residential revenue						1.2		%	0.9		%	0.4		%
Percent of rent deferrals to total residential revenue						0.1		%	0.5%			N/A
Same-Store Communities
New lease rates						0.0		%	(1.2)		%	(1.4)		%
Renewal rates						0.6		%	3.3		%	5.2		%
Weighted average occupancy						94.4		%	94.6		%	93.5		%
Physical occupancy, at end of period						95.3		%	94.8		%	94.3		%

Liquidity and Near-Term Funding Obligations

Liquidity Profile			September 30, 2020			June 30, 2020
Unsecured credit facility - committed			$	250,000		$	250,000
Balance outstanding			135,000			63,000
Amount available on line of credit			$	115,000		$	187,000
Cash and cash equivalents			16,804			52,714
Total liquidity			$	131,804		$	239,714
Near-Term Funding Obligations
Unfunded construction loan and mezzanine loan commitments - 2020 and 2021			$	27,248		$	34,272
2020 and 2021 Debt maturities			35,281			44,962
Total			$	62,529		$	79,234
Ratio of liquidity to near-term funding obligations			2.1			3.0

S-11

IRET

SAME-STORE THIRD QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2020						Q3 2019						% Change						Q3 2020						Q3 2019						% Change						Q3 2020						Q3 2019						% Change
Minneapolis, MN						1,987						$	8,892					$	8,857					0.4		%				$	3,858					$	3,920					(1.6)		%				$	5,034					$	4,937					2.0		%
Rochester, MN						1,711						6,351						6,446						(1.5)		%				3,074						2,386						28.8		%				3,277						4,060						(19.3)		%
Denver, CO						664						3,724						3,855						(3.4)		%				1,298						1,197						8.4		%				2,426						2,658						(8.7)		%
Grand Forks, ND						865						2,887						2,822						2.3		%				1,072						1,133						(5.4)		%				1,815						1,689						7.5		%
Omaha, NE						1,370						3,884						3,738						3.9		%				1,790						1,740						2.9		%				2,094						1,998						4.8		%
St. Cloud, MN						1,190						3,548						3,517						0.9		%				1,603						1,557						3.0		%				1,945						1,960						(0.8)		%
Bismarck, ND						845						2,796						2,707						3.3		%				1,071						1,069						0.2		%				1,725						1,638						5.3		%
Billings, MT						749						2,305						2,144						7.5		%				800						882						(9.3)		%				1,505						1,262						19.3		%
Minot, ND						712						2,170						2,117						2.5		%				1,003						1,035						(3.1)		%				1,167						1,082						7.9		%
Rapid City, SD						474						1,486						1,424						4.4		%				629						574						9.6		%				857						850						0.8		%
Same-Store Total						10,567						$	38,043					$	37,627					1.1		%				$	16,198					$	15,493					4.6		%				$	21,845					$	22,134					(1.3)		%

						% of NOI Contribution						Weighted Average Occupancy (1)																		Average Monthly Rental Rate (2)																		Average Monthly Revenue per Occupied Home (3)
Regions												Q3 2020						Q3 2019						Growth						Q3 2020						Q3 2019						% Change						Q3 2020						Q3 2019						% Change
Minneapolis, MN						23.1		%				93.4		%				90.9		%				2.5		%				$	1,496					$	1,509					(0.9)		%				$	1,596					$	1,635					(2.4)		%
Rochester, MN						15.0		%				94.1		%				94.6		%				(0.5)		%				1,249						1,257						(0.6)		%				1,315						1,327						(0.9)		%
Denver, CO						11.1		%				92.8		%				94.2		%				(1.4)		%				1,801						1,855						(2.9)		%				2,014						2,055						(2.0)		%
Grand Forks, ND						8.3		%				95.5		%				95.9		%				(0.4)		%				1,089						1,073						1.5		%				1,165						1,134						2.7		%
Omaha, NE						9.6		%				93.8		%				93.0		%				0.8		%				913						900						1.4		%				1,008						977						3.2		%
St. Cloud, MN						8.9		%				94.4		%				93.8		%				0.6		%				965						959						0.6		%				1,053						1,050						0.3		%
Bismarck, ND						7.9		%				96.1		%				93.8		%				2.3		%				1,062						1,055						0.7		%				1,148						1,138						0.9		%
Billings, MT						6.9		%				97.4		%				95.0		%				2.4		%				960						941						2.0		%				1,053						1,004						4.9		%
Minot, ND						5.3		%				94.9		%				93.9		%				1.0		%				1,002						999						0.3		%				1,070						1,055						1.4		%
Rapid City, SD						3.9		%				96.5		%				96.1		%				0.4		%				986						963						2.4		%				1,082						1,042						3.8		%
Same-Store Total						100.0		%				94.4		%				93.5		%				0.9		%				$	1,178					$	1,178					—						$	1,271					$	1,269					0.2		%

(1)Weighted average occupancy is defined as the percentage resulting from dividing actual rental revenue by scheduled rent. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment 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 apartment homes.

(2)Average monthly rental rate is scheduled rent divided by the total number of apartment homes.

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

S-12

IRET

SAME-STORE SEQUENTIAL QUARTER COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												Q3 2020						Q2 2020						% Change						Q3 2020						Q2 2020						% Change						Q3 2020						Q2 2020						% Change
Minneapolis, MN						1,987						$	8,892					$	9,068					(1.9)		%				$	3,858					$	3,485					10.8		%				$	5,034					$	5,583					(9.9)		%
Rochester, MN						1,711						6,351						6,370						(0.3)		%				3,074						2,802						9.7		%				3,277						3,568						(8.2)		%
Denver, CO						664						3,724						3,701						0.6		%				1,298						1,095						18.5		%				2,426						2,606						(6.9)		%
Grand Forks, ND						865						2,887						2,840						1.7		%				1,072						1,136						(5.6)		%				1,815						1,704						6.5		%
Omaha, NE						1,370						3,884						3,838						1.2		%				1,790						1,783						0.4		%				2,094						2,055						1.9		%
St. Cloud, MN						1,190						3,548						3,546						0.1		%				1,603						1,524						5.2		%				1,945						2,022						(3.8)		%
Bismarck, ND						845						2,796						2,766						1.1		%				1,071						1,053						1.7		%				1,725						1,713						0.7		%
Billings, MT						749						2,305						2,139						7.8		%				800						838						(4.5)		%				1,505						1,301						15.7		%
Minot, ND						712						2,170						2,161						0.4		%				1,003						969						3.5		%				1,167						1,192						(2.1)		%
Rapid City, SD						474						1,486						1,402						6.0		%				629						634						(0.8)		%				857						768						11.6		%
Same-Store Total						10,567						$	38,043					$	37,831					0.6		%				$	16,198					$	15,319					5.7		%				$	21,845					$	22,512					(3.0)		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												Q3 2020						Q2 2020						Growth						Q3 2020						Q2 2020						% Change						Q3 2020						Q2 2020						% Change
Minneapolis, MN						23.1		%				93.4		%				94.0		%				(0.6)		%				$	1,496					$	1,494					0.1		%				$	1,596					$	1,619					(1.3)		%
Rochester, MN						15.0		%				94.1		%				95.3		%				(1.2)		%				1,249						1,248						0.1		%				1,315						1,303						0.9		%
Denver, CO						11.1		%				92.8		%				92.9		%				(0.1)		%				1,801						1,827						(1.4)		%				2,014						2,001						0.7		%
Grand Forks, ND						8.3		%				95.5		%				94.8		%				0.7		%				1,089						1,079						0.9		%				1,165						1,154						1.0		%
Omaha, NE						9.6		%				93.8		%				94.9		%				(1.1)		%				913						904						1.0		%				1,008						984						2.3		%
St. Cloud, MN						8.9		%				94.4		%				93.7		%				0.7		%				965						955						1.0		%				1,053						1,060						(0.6)		%
Bismarck, ND						7.9		%				96.1		%				96.2		%				(0.1)		%				1,062						1,053						0.9		%				1,148						1,134						1.2		%
Billings, MT						6.9		%				97.4		%				94.4		%				3.0		%				960						944						1.7		%				1,053						1,008						4.8		%
Minot, ND						5.3		%				94.9		%				97.0		%				(2.1)		%				1,002						992						1.0		%				1,070						1,043						2.5		%
Rapid City, SD						3.9		%				96.5		%				94.3		%				2.2		%				986						966						2.1		%				1,082						1,046						3.8		%
Same-Store Total						100.0		%				94.4		%				94.6		%				(0.2)		%				$	1,178					$	1,172					0.5		%				$	1,271					$	1,262					0.8		%

S-13

IRET

SAME-STORE YEAR-TO-DATE COMPARISONS

(in thousands, except property data amounts and percentages)

						Apartment Homes Included						Revenues																		Expenses																		NOI
Regions												2020						2019						% Change						2020						2019						% Change						2020						2019						% Change
Minneapolis, MN						1,987						$	27,072					$	26,541					2.0		%				$	11,254					$	11,194					0.5		%				$	15,818					$	15,347					3.1		%
Rochester, MN						1,711						19,260						18,962						1.6		%				8,699						7,290						19.3		%				10,561						11,672						(9.5)		%
Denver, CO						664						11,352						11,333						0.2		%				3,652						3,615						1.0		%				7,700						7,718						(0.2)		%
Grand Forks, ND						865						8,578						8,330						3.0		%				3,515						3,578						(1.8)		%				5,063						4,752						6.5		%
Omaha, NE						1,370						11,536						11,197						3.0		%				5,199						5,149						1.0		%				6,337						6,048						4.8		%
St. Cloud, MN						1,190						10,705						10,577						1.2		%				4,883						4,890						(0.1)		%				5,822						5,687						2.4		%
Bismarck, ND						845						8,297						8,042						3.2		%				3,293						3,232						1.9		%				5,004						4,810						4.0		%
Billings, MT						749						6,622						6,373						3.9		%				2,464						2,457						0.3		%				4,158						3,916						6.2		%
Minot, ND						712						6,457						6,380						1.2		%				2,983						3,078						(3.1)		%				3,474						3,302						5.2		%
Rapid City, SD						474						4,329						4,162						4.0		%				1,915						1,707						12.2		%				2,414						2,455						(1.7)		%
Same-Store Total						10,567						$	114,208					$	111,897					2.1		%				$	47,857					$	46,190					3.6		%				$	66,351					$	65,707					1.0		%

						% of NOI Contribution						Weighted Average Occupancy																		Average Monthly Rental Rate																		Average Monthly Revenue per Occupied Home
Regions												2020						2019						Growth						2020						2019						% Change						2020						2019						% Change
Minneapolis, MN						23.9		%				93.9		%				93.0		%				0.9		%				$	1,492					$	1,475					1.2		%				$	1,613					$	1,596					1.1		%
Rochester, MN						15.9		%				95.5		%				95.5		%				—						1,245						1,232						1.1		%				1,310						1,289						1.6		%
Denver, CO						11.6		%				93.6		%				94.3		%				(0.7)		%				1,824						1,830						(0.3)		%				2,029						2,010						0.9		%
Grand Forks, ND						7.6		%				95.6		%				95.4		%				0.2		%				1,078						1,072						0.6		%				1,152						1,121						2.8		%
Omaha, NE						9.6		%				94.3		%				93.9		%				0.4		%				903						886						1.9		%				992						968						2.6		%
St. Cloud, MN						8.8		%				94.3		%				95.0		%				(0.7)		%				955						950						0.5		%				1,060						1,040						1.9		%
Bismarck, ND						7.5		%				96.2		%				94.8		%				1.4		%				1,053						1,043						1.0		%				1,133						1,115						1.8		%
Billings, MT						6.3		%				95.9		%				95.7		%				0.2		%				946						923						2.5		%				1,025						988						3.7		%
Minot, ND						5.2		%				95.7		%				94.9		%				0.8		%				995						997						(0.2)		%				1,053						1,049						0.4		%
Rapid City, SD						3.6		%				95.9		%				96.0		%				(0.1)		%				968						946						2.3		%				1,058						1,016						4.1		%
Same-Store Total						100.0		%				94.8		%				94.5		%				0.3		%				$	1,171					$	1,160					0.9		%				$	1,267					$	1,245					1.8		%

S-14

IRET

PORTFOLIO SUMMARY(1)

						Three Months Ended
						9/30/2020						6/30/2020						3/31/2020						12/31/2019						9/30/2019
Number of Apartment Homes at Period End
Same-Store						10,567						11,257						11,257						10,402						11,785
Non-Same-Store						1,343						878						878						1,551						1,551
All Communities						11,910						12,135						12,135						11,953						13,336
Average Monthly Rental Rate(2)
Same-Store						$	1,178					$	1,142					$	1,135					$	1,085					$	1,062
Non-Same-Store						1,597						1,594						1,572						1,722						1,742
All Communities						$	1,210					$	1,175					$	1,163					$	1,168					$	1,123
Average Monthly Revenue per Occupied Apartment Home(3)
Same-Store						$	1,271					$	1,232					$	1,237					$	1,169					$	1,141
Non-Same-Store						1,729						1,681						1,658						1,869						1,887
All Communities						$	1,307					$	1,264					$	1,263					$	1,260					$	1,210
Weighted Average Occupancy(4)
Same-Store						94.4		%				94.6		%				95.4		%				94.0		%				93.3		%
Non-Same-Store						93.9		%				93.9		%				93.3		%				93.0		%				94.2		%
All Communities						94.3		%				94.5		%				95.2		%				93.8		%				93.4		%
Operating Expenses as a % of Scheduled Rent
Same-Store						43.4		%				41.5		%				45.0		%				43.5		%				43.0		%
Non-Same-Store						39.7		%				36.1		%				37.0		%				33.8		%				38.1		%
All Communities						43.0		%				41.0		%				44.3		%				41.6		%				42.3		%
Capital Expenditures
Total Capital Expenditures per Apartment Home – Same-Store						$	293					$	262					$	151					$	427					$	178

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

(2)Average monthly rental rate is scheduled rent divided by the total number of apartment homes. Scheduled rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment 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 apartment homes.

(3)Average monthly revenue per occupied home is defined as total rental revenues divided by the weighted average occupied apartment 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 REITs.

S-15

IRET

CAPITAL EXPENDITURES

($ in thousands, except per home amounts)

						Three Months Ended															Nine Months Ended
						9/30/2020						9/30/2019									9/30/2020						9/30/2019
Total Same-Store Apartment Homes						10,567						10,567									10,567						10,567
Turnover						$	1,079					$	855								$	2,553					$	2,155
Furniture & Equipment						8						83									243						219
Building – Interior						62						6									275						180
Building – Exterior						1,157						545									2,975						1,130
Landscaping & Grounds						790						313									1,165						833
Capital Expenditures - Same-Store						$	3,096					$	1,802								$	7,211					$	4,517
Capital Expenditures per Apartment Home - Same-Store						$	293					$	171								$	682					$	427
Value Add						$	3,139					$	1,673								$	7,305					$	2,379
Total Capital Spend - Same-Store						$	6,235					$	3,475								$	14,516					$	6,896
Total Capital Spend per Apartment Home - Same-Store						$	590					$	329								$	1,374					$	653
All Properties - Weighted Average Apartment Homes						11,600						13,058									11,456						13,058
Capital Expenditures						$	3,007					$	2,462								$	8,191					$	6,189
Capital Expenditures per Apartment Home						$	259					$	189								$	715					$	474
Value Add						4,209						1,878									10,405						2,997
Acquisition Capital						730						1,645									1,265						1,899
Total Capital Spend						7,946						5,985									19,861						11,085
Total Capital Spend per Apartment Home						$	685					$	458								$	1,734					$	849

S-16