Published:
Investors Real Estate Trust Announces Financial and Operating Results for the Year and Quarter Ended April 30, 2008
Investors Real Estate Trust (IRET) (NASDAQ: IRET)
(NASDAQ: IRETP) reported financial and operating results today for the year
and quarter ended April 30, 2008.
During the fourth quarter of fiscal year 2008, IRET's revenues increased
from the year-earlier period, due primarily to property acquisitions and a
decrease in the level of tenant concessions offered. Funds From Operations
(FFO)(1) increased on an absolute basis from the year-earlier period, but
declined slightly on a per share and unit basis, primarily due to dilution
following the Company's October 2007 public offering of 6.9 million common
shares. Net income declined from the year-earlier period, primarily due to
the effect of a gain on sale included within discontinued operations in the
three and twelve months ended April 30, 2007. For the three month period
ended April 30, 2008, as compared to the same period of the prior fiscal
year:
-- Revenues increased to $59.0 million from $53.7 million.
-- FFO increased to $17.1 million on approximately 78,195,000 weighted
average shares and units outstanding, from $15.3 million on approximately
67,284,000 weighted average shares and units outstanding ($.22 per share
and unit compared to $.23 per share and unit).
-- Net Income Available to Common Shareholders, as computed under
generally accepted accounting principles, was $2.7 million, compared to
$3.4 million.
For the twelve month period ended April 30, 2008, as compared to the same
period of the prior fiscal year:
-- Revenues increased to $221.2 million from $197.5 million.
-- FFO increased to $64.2 million on approximately 73,477,000 weighted
average shares and units outstanding, from $57.0 million on approximately
64,689,000 weighted average shares and units outstanding ($.87 per share
and unit compared to $.88 per share and unit).
-- Net Income Available to Common Shareholders, as computed under
generally accepted accounting principles, was $9.7 million, compared to
$11.7 million.
Operating Results
Net Operating Income (NOI)(2) from stabilized properties(3) increased 1.2%,
or $329,000, during the three months ended April 30, 2008, compared to the
same period one year ago. NOI from stabilized properties increased in all
of our segments except Commercial Office and Commercial Industrial.
Multi-Family Residential increased 4.2%, Commercial Medical increased 4.3%
and Commercial Retail increased 2.0%. Commercial Office and Commercial
Industrial decreased 0.8% and 17.0%, respectively. NOI from stabilized
properties increased 0.8%, or $876,000, for the twelve months ended April
30, 2008, compared to the twelve months ended April 30, 2007.
Economic occupancy(4) levels on a stabilized property basis declined in all
but one of our reportable segments during the three months ended April 30,
2008, compared to the three months ended April 30, 2007. Economic occupancy
levels on an
all-property basis declined in all reportable segments during the three
months ended April 30, 2008, compared to the three months ended April 30,
2007. Economic occupancy rates on a stabilized property and all-property
basis for the three months ended April 30, 2008, as compared to the three
months ended April 30, 2007, were as follows:
Economic Occupancy Levels on a Stabilized Property and All-Property Basis:
Stabilized
Segments Properties All Properties
-------------------- --------------------
4th QTR 4th QTR 4th QTR 4th QTR
2008 2007 2008 2007
--------- --------- --------- ---------
Multi-Family Residential 92.8% 92.4% 92.1% 92.5%
Commercial Office 89.6% 90.5% 90.8% 92.4%
Commercial Medical 95.2% 96.3% 96.1% 96.3%
Commercial Industrial 94.7% 97.4% 95.9% 97.8%
Commercial Retail 87.9% 89.3% 88.2% 89.6%
For 4th Quarter 2008 and 4th Quarter 2007, stabilized properties excluded:
Multi-Family Residential - 17 South Main Apartments, Minot, ND; Arbors
Apartments, S. Sioux City, NE; Indian Hills,
Sioux City, IA; Quarry Ridge Apartments,
Rochester, MN; Rum River Apartments, Isanti, MN;
St. Cloud Student Housing, St. Cloud, MN;
Cottonwood IV Apartments, Bismarck, ND and
Greenfield Apartments, Omaha, NE.
Commercial Office - 17 South Main, Minot, ND; Corporate Center West,
Omaha, NE; Farnam Executive Center, Omaha, NE;
Flagship, Eden Prairie, MN; Gateway Corporate,
Woodbury, MN; Highlands Ranch I, Highlands
Ranch, CO; Miracle Hills One, Omaha, NE; Pacific
Hills, Omaha, NE; Riverport, Maryland Heights,
MO; Timberlands, Leawood, KS; Woodlands Plaza,
Maryland Heights, MO; 610 Business Center,
Brooklyn Park, MN; Intertech, Fenton, MO and
Plymouth 5095, Plymouth, MN.
Commercial Medical - 2828 Chicago Avenue, Minneapolis, MN; Fox River
Cottages, Grand Chute, WI; St. Michaels, St.
Michael, MN; Barry Point, Kansas City, MO;
Edgewood Vista Billings, Billings, MT; Edgewood
Vista East Grand Forks, East Grand Forks, MN;
Edgewood Vista Sioux Falls, Sioux Falls, SD;
Edina 6405 France Medical, Edina, MN; Edina 6363
France Medical, Edina, MN; Minneapolis 701 25th
Ave Medical (Riverside), Minneapolis, MN;
Burnsville 303 Nicollet Medical (Ridgeview),
Burnsville, MN; Burnsville 305 Nicollet Medical
(Ridgeview South), Burnsville, MN; Eagan 1440
Duckwood Medical, Eagan, MN; Edgewood Vista
Belgrade, Belgrade, MT; Edgewood Vista Columbus,
Columbus, NE; Edgewood Vista Fargo, Fargo, ND;
Edgewood Vista Grand Island, Grand Island, NE
and Edgewood Vista Norfolk, Norfolk, NE.
Commercial Industrial - Bloomington 2000, Bloomington, MN; Roseville
2929, Roseville, MN; Cedar Lake Business Center,
St. Louis Park, MN; Urbandale, Urbandale, IA;
Woodbury 1865, Woodbury, MN and Eagan 3785 &
2795 Highway 55, Eagan, MN.
Commercial Retail - 17 South Main, Minot, ND; Dakota West Plaza,
Minot, ND and Weston Walgreens, Weston, WI.
Also excluded from stabilized properties in Q4 2008 and Q4 2007 are sold
properties:
Multi-Family Residential - Park East Apartments, Fargo, ND; Clearwater
apartments, Boise, ID; 405 Grant Avenue
Apartments, Harvey, ND and Sweetwater - Green
Acres 1&2 Apartments, Devils Lake, ND.
Commercial Office - Minnetonka Office Building, Minnetonka, MN.
Commercial Medical - Wedgewood Sweetwater, Lithia Springs, GA.
Commercial Retail - Glencoe C-Store, Glencoe, MN; Faribault Checker,
Faribault, MN; Long Prairie C-Store, Long
Prairie, MN; Paynesville C-Store, Paynesville,
MN and Prior Lake I & III Strip Center, Prior
Lake, MN.
Unimproved Land - Long Prairie Unimproved Land, Long Prairie, MN.
Acquisition and Disposition Activity
During the fourth quarter of fiscal year 2008, IRET acquired eight senior
housing facilities, six medical office properties and an office/warehouse
facility for a total of approximately $103.1 million, excluding closing and
other transaction costs. The Company had no material dispositions in the
first three quarters of fiscal year 2008; in the fourth quarter of fiscal
year 2008, the Company sold its Sweetwater Apartments in Devils Lake, North
Dakota, for a sales price of $940,000, and recognized a gain on sale of
approximately $510,000. The following table details the Company's
acquisitions during the three months ended April 30, 2008:
(in
thousands)
-----------
Acquisition
Fourth Quarter Fiscal Year 2008 Acquisitions Cost
-----------
Commercial Property - Medical (including senior housing)
11,800 sq. ft./28 beds Edgewood Vista Billings - Billings, MT $ 4,250
18,488 sq. ft./36 beds Edgewood Vista East Grand Forks - East
Grand Forks, MN 4,990
11,800 sq. ft./28 beds Edgewood Vista Sioux Falls - Sioux
Falls, SD 3,350
55,478 sq. ft. Edina 6405 France Medical - Edina, MN* 13,615
70,934 sq. ft. Edina 6363 France Medical - Edina, MN* 13,360
57,212 sq. ft. Minneapolis 701 25th Ave Medical (Riverside) -
Minneapolis, MN* 8,000
53,466 sq. ft. Burnsville 303 Nicollet Medical (Ridgeview) -
Burnsville, MN 8,800
36,199 sq. ft. Burnsville 305 Nicollet Medical (Ridgeview
South) - Burnsville, MN 5,900
17,640 sq. ft. Eagan 1440 Duckwood Medical - Eagan, MN 2,325
5,192 sq. ft./13 beds Edgewood Vista Belgrade - Belgrade, MT 2,100
5,194 sq. ft./13 beds Edgewood Vista Columbus - Columbus, NE 1,450
168,801 sq. ft./185 beds Edgewood Vista Fargo - Fargo, ND 25,850
5,185 sq. ft./13 beds Edgewood Vista Grand Island - Grand
Island, NE 1,400
5,135 sq. ft./13 beds Edgewood Vista Norfolk - Norfolk, NE 1,300
-----------
Commercial Property - Industrial
198,600 sq. ft. Eagan 2785 & 2795 Highway 55 - Eagan, MN 6,400
-----------
Total Property Acquisitions $ 103,090
===========
* Acquisition of leasehold interests only (air rights lease and ground
leases)
Development Activity
The Company has several ongoing development projects. As of April 30,
2008, IRET is engaged in the following development activity:
Southdale Medical Building Expansion Project: In July 2007, the Company
signed a lease with an anchor tenant committing the Company to construct an
approximately 27,750 square foot addition to the Company's existing
Southdale Medical Building located in Edina, Minnesota. The estimated cost
of this expansion project is approximately $10.9 million, including
relocation, tenant improvement and leasing costs expected to be incurred to
relocate tenants in the existing facility. Construction began in September
2007, and the expansion project is scheduled for completion in July 2008.
As of April 30, 2008, the Company has incurred approximately $5.5 million
in construction costs for this expansion project.
IRET Corporate Plaza: During fiscal year 2007, the Company purchased an
unimproved parcel of land in Minot, North Dakota, for approximately $1.8
million. The Company is constructing a mixed-use project on this site, to
consist of approximately 67 apartments and 60,100 rentable square feet of
office and retail space. The Company plans to move its Minot, North Dakota
offices to this location, occupying approximately one-third of the proposed
office/retail space. Current estimates are that the project will be
completed in the second quarter of the Company's fiscal year 2009, at a
total cost of approximately $20.7 million. As of April 30, 2008, the
Company has incurred approximately $9.2 million of the estimated
construction cost of this project.
2828 Chicago Avenue Medical Building: In fiscal year 2006, IRET purchased
an approximately 55,000 square foot, five-story medical office building
located in Minneapolis, Minnesota. During fiscal year 2007, IRET committed
to construct an approximately 56,000 square foot medical office building
adjacent to the existing structure, and an adjoining parking ramp, with a
planned project completion date of August 2008 and an estimated total
project cost of $15.7 million. As of April 30, 2008, approximately 73% of
this new medical office building was pre-leased to two tenants.
Construction on the project began in August 2007, and as of April 30, 2008,
the Company has incurred approximately $8.2 million in construction costs.
Shareholder Equity, Distributions and Capital Structure
On April 1, 2008, IRET paid a quarterly distribution of $0.1680 per share
and unit on its common shares and limited partnership units of IRET
Properties. This was IRET's 148th consecutive distribution at equal or
increasing rates. IRET also paid, on March 31, 2008, a quarterly
distribution of $0.5156 per share on its Series A preferred shares.
As of April 30, 2008, IRET had a total capitalization of $1.9 billion.
Total capitalization is defined as the market value (closing price at end
of period) of the Company's outstanding common shares and the imputed
market value of the outstanding limited partnership units of IRET
Properties, plus the book value of the Company's preferred shares and the
outstanding principal balance of the consolidated debt of the Company.
Conference Call Information
The Conference Call for 4th Quarter Earnings is scheduled for Wednesday,
July 2, 2008, at 9:00 A.M. Central Daylight Time. In order to use the
limited time available more efficiently, the Company requests that
questions be submitted in advance, via e-mail to the attention of IRET's
Investor Relations Director at msaari@iret.com, by 5:00 p.m. Central
Daylight Time on Tuesday, July 1, 2008. During the question and answer
period, priority will be given to addressing questions submitted in
advance. The call will be limited to one hour, including questions and
answers. Conference call access information is as follows:
USA Toll Free Number: 1-800-860-2442
International Toll Free Number: 1-412-858-4600
A replay of the call will be archived on the "Investor Relations/Upcoming
Events and Presentations" page of IRET's website, http://www.iret.com,
through Friday, July 18, 2008. Questions regarding the conference call
should be directed to IRET Investor Relations at msaari@iret.com.
About IRET
IRET is a self-administered, equity real estate investment trust investing
in income-producing properties located primarily in the upper Midwest.
IRET owns a diversified portfolio of properties consisting of 72
multi-family residential properties with 9,500 apartment units; and 65
office properties, 48 medical properties (including senior housing), 17
industrial properties and 33 retail properties with a total of
approximately 11.5 million square feet of leasable space. IRET's
distributions have increased every year for 37 consecutive years. IRET
common and preferred shares are publicly traded on the NASDAQ Global Select
Market (symbols: IRET and IRETP). IRET's press releases and supplemental
information are available on the Company website at www.iret.com or by
contacting Investor Relations at 701-837-4738.
Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements involve known and unknown risks, uncertainties and other
factors that may cause actual results to differ materially from projected
results. Such risks, uncertainties and other factors include, but are not
limited to: fluctuations in interest rates, the effect of government
regulation, the availability of capital, changes in general and local
economic and real estate market conditions, competition, our ability to
attract and retain skilled personnel, and those risks and uncertainties
detailed from time to time in our filings with the Securities and Exchange
Commission, including our 2007 Form 10-K. We assume no obligation to
update or supplement forward-looking statements that become untrue because
of subsequent events.
(1) The National Association of Real Estate Investment Trusts, Inc.
(NAREIT) defines FFO as net income (computed in accordance with generally
accepted accounting principles), excluding gains/losses from sales of
property plus real estate depreciation and amortization. We consider FFO
to be a standard supplemental measure for equity real estate investment
trusts because it facilitates an understanding of the operating performance
of properties without giving effect to real estate depreciation and
amortization, which assume that the value of real estate assets diminishes
predictably over time. Since real estate values instead historically rise
or fall with market conditions, we believe that FFO provides investors and
management with a more accurate indication of our financial and operating
results.
(2) We measure the performance of our segments based on NOI, which we
define as total revenues less property operating expenses and real estate
taxes. We believe that NOI is an important supplemental measure of
operating performance for a real estate investment trust's operating real
estate because it provides a measure of core operations that is unaffected
by depreciation, amortization, financing and general and administrative
expense. NOI does not represent cash generated by operating activities in
accordance with GAAP, and should not be considered an alternative to net
income, net income available for common shareholders or cash flow from
operating activities as a measure of financial performance. See tables
below for a reconciliation of NOI to the condensed consolidated financial
statements.
(3) Stabilized properties are those properties owned for the entirety of
both periods being compared. While results presented on a stabilized
property basis are not determined in accordance with GAAP, management
believes that measuring performance on a stabilized property basis is
useful to investors and to management because it enables evaluation of how
the Company's properties are performing year over year.
(4) Economic occupancy represents actual rental revenues recognized for the
period indicated as a percentage of scheduled rental revenues for the
period. Percentage rents, tenant concessions, straightline adjustments and
expense reimbursements are not considered in computing either actual
revenues or scheduled rent revenues.
INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
for the three months and twelve months ended April 30, 2008 and 2007
Three Months Ended Twelve Months Ended
April 30 April 30
------------------------------------------
(in thousands, except per share data)
------------------------------------------
2008 2007 2008 2007
--------- --------- --------- ---------
REVENUE
Real estate rentals $ 46,674 $ 43,792 $ 179,965 $ 162,410
Tenant reimbursement 12,288 9,874 41,205 35,128
--------- --------- --------- ---------
TOTAL REVENUE 58,962 53,666 221,170 197,538
--------- --------- --------- ---------
OPERATING EXPENSE
Interest 16,470 15,323 63,439 58,424
Depreciation/amortization
related to real estate
investments 13,537 11,802 50,042 44,419
Utilities 5,365 4,559 17,793 15,157
Maintenance 6,373 6,284 24,582 21,691
Real estate taxes 7,498 6,353 27,133 23,281
Insurance 700 619 2,624 2,377
Property management expenses 3,975 3,818 15,273 13,826
Administrative expenses 1,288 1,096 4,745 4,162
Advisory and trustee
services 104 81 458 289
Other operating expenses 291 307 1,344 1,240
Amortization related to
non-real estate investments 437 362 1,476 1,082
--------- --------- --------- ---------
TOTAL OPERATING EXPENSE 56,038 50,604 208,909 185,948
--------- --------- --------- ---------
Operating income 2,924 3,062 12,261 11,590
Interest income 449 541 2,095 1,944
Other non-operating income 222 154 665 721
--------- --------- --------- ---------
Income before minority interest
and discontinued operations
and gain (loss) on sale of
other investments 3,595 3,757 15,021 14,255
Gain (loss) on sale of other
investments 38 (1) 42 (38)
Minority interest portion of
operating partnership income (833) (921) (3,524) (3,217)
Minority interest portion of
other partnerships' loss 111 39 136 26
--------- --------- --------- ---------
Income from continuing
operations 2,911 2,874 11,675 11,026
Discontinued operations, net of
minority interest 377 1,161 413 3,084
--------- --------- --------- ---------
NET INCOME 3,288 4,035 12,088 14,110
Dividends to preferred
shareholders (593) (593) (2,372) (2,372)
--------- --------- --------- ---------
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS $ 2,695 $ 3,442 $ 9,716 $ 11,738
========= ========= ========= =========
Earnings per common share from
continuing operations $ .04 $ .05 $ .17 $ .18
Earnings per common share from
discontinued operations .01 .02 .01 .06
--------- --------- --------- ---------
NET INCOME PER COMMON SHARE -
BASIC AND DILUTED $ .05 $ .07 $ .18 $ .24
========= ========= ========= =========
INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
for the three months and twelve months ended April 30, 2008 and 2007
(in thousands, except per share amounts)
-----------------------------------------------------------
Three Months Ended
April 30, 2008 2007
---------------------------- -----------------------------
Weighted Weighted
Avg Avg
Shares Per Share Shares Per Share
and and and and
Amount Units(2) Unit(3) Amount Units(2) Unit(3)
-------- --------- --------- -------- --------- ---------
Net income $ 3,288 $ 4,035
Less dividends
to preferred
shareholders (593) (593)
-------- --------
Net income
available to
common
shareholders 2,695 57,382 $ .05 3,442 48,313 $ .07
Adjustments:
Minority
interest in
earnings of
unitholders 973 20,813 1,390 18,971
Depreciation and
amortization(1) 13,910 12,119
Gain on
depreciable
property sales (510) (1,616)
-------- --------- --------- -------- --------- ---------
Funds from
operations
applicable
to common
shares and
units $ 17,068 78,195 $ .22 $ 15,335 67,284 $ .23
======== ========= ========= ======== ========= =========
(in thousands, except per share amounts)
-----------------------------------------------------------
Twelve Months Ended
April 30, 2008 2007
---------------------------- -----------------------------
Weighted Weighted
Avg Avg
Shares Per Share Shares Per Share
and and and and
Amount Units(2) Unit(3) Amount Units(2) Unit(3)
-------- --------- --------- -------- --------- ---------
Net income $ 12,088 $ 14,110
Less dividends
to preferred
shareholders (2,372) (2,372)
-------- --------
Net income
available to
common
shareholders 9,716 53,060 $ .18 11,738 47,672 $ .25
Adjustments:
Minority
interest in
earnings of
unitholders 3,677 20,417 4,299 17,017
Depreciation and
amortization(4) 51,303 45,559
Gain on
depreciable
property sales (514) (4,602)
-------- --------- --------- -------- --------- ---------
Funds from
operations
applicable
tocommon
shares and
units $ 64,182 73,477 $ .87 $ 56,994 64,689 $ .88
======== ========= ========= ======== ========= =========
(1) Real estate depreciation and amortization consists of the sum of
depreciation/amortization related to real estate investments and
amortization related to non-real estate investments from the Condensed
Consolidated Statements of Operations, totaling $13,974 and $12,164,
and depreciation/amortization from Discontinued Operations of $5 and
$21, less corporate-related depreciation and amortization on office
equipment and other assets of $69 and $66, for the three months ended
April 30, 2008 and 2007, respectively.
(2) UPREIT Units of the Operating Partnership are exchangeable for common
shares of beneficial interest on a one-for-one basis.
(3) Net income is calculated on a per share basis. FFO is calculated on a
per share and unit basis.
(4) Real estate depreciation and amortization consists of the sum of
depreciation/amortization related to real estate investments and
amortization related to non-real estate investments from the Condensed
Consolidated Statements of Operations, totaling $51,518 and $45,501,
and depreciation/amortization from Discontinued Operations of $47 and
$299, less corporate-related depreciation and amortization on office
equipment and other assets of $262 and $241, for the twelve months
ended April 30, 2008 and 2007, respectively.
INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
RECONCILATION OF NET OPERATING INCOME TO THE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months and twelve months ended April 30, 2008 and 2007
(in thousands)
-------------------------------------------------------
Multi-
Family Commerc- Commerc- Commerc- Commerc-
Three Months Ended Residen- ial- ial- ial- ial-
April 30, 2008 tial Office Medical Industrial Retail Total
-------- -------- -------- -------- -------- ---------
Real estate revenue $ 18,469 $ 22,216 $ 11,648 $ 2,974 $ 3,655 $ 58,962
Real estate expenses 9,063 9,916 3,180 694 1,058 23,911
-------- -------- -------- -------- -------- ---------
Net operating
income $ 9,406 $ 12,300 $ 8,468 $ 2,280 $ 2,597 35,051
======== ======== ======== ======== ======== ---------
Interest (16,470)
Depreciation/
amortization (13,974)
Administrative,
advisory and
trustee fees (1,392)
Operating expenses (291)
Non-operating
income 671
-------- -------- -------- -------- -------- ---------
Income before
minority interest
and discontinued
operations and
(loss) gain on sale
of other investments $ 3,595
======== ======== ======== ======== ======== =========
(in thousands)
-------------------------------------------------------
Multi-
Family Commerc- Commerc- Commerc- Commerc-
Three Months Ended Residen- ial- ial- ial- ial-
April 30, 2007 tial Office Medical Industrial Retail Total
-------- -------- -------- -------- -------- ---------
Real estate revenue $ 17,330 $ 21,054 $ 8,966 $ 2,453 $ 3,863 $ 53,666
Real estate expenses 8,487 9,047 2,379 454 1,266 21,633
-------- -------- -------- -------- -------- ---------
Net operating
income $ 8,843 $ 12,007 $ 6,587 $ 1,999 $ 2,597 32,033
======== ======== ======== ======== ======== ---------
Interest (15,323)
Depreciation/
amortization (12,164)
Administrative,
advisory and
trustee fees (1,177)
Operating expenses (307)
Non-operating
income 695
-------- -------- -------- -------- -------- ---------
Income before
minority interest
and discontinued
operations and
(loss) gain on sale
of other investments $ 3,757
======== ======== ======== ======== ======== =========
(in thousands)
-------------------------------------------------------
Multi-
Family Commerc- Commerc- Commerc- Commerc-
Twelve Months Ended Residen- ial- ial- ial- ial-
April 30, 2008 tial Office Medical Industrial Retail Total
-------- -------- -------- -------- -------- ---------
Real estate revenue $ 72,827 $ 84,042 $ 38,412 $ 11,691 $ 14,198 $ 221,170
Real estate expenses 34,637 36,206 9,756 2,529 4,277 87,405
-------- -------- -------- -------- -------- ---------
Net operating
income $ 38,190 $ 47,836 $ 28,656 $ 9,162 $ 9,921 133,765
======== ======== ======== ======== ======== ---------
Interest (63,439)
Depreciation/
amortization (51,518)
Administrative,
advisory and
trustee fees (5,203)
Operating expenses (1,344)
Non-operating
income 2,760
-------- -------- -------- -------- -------- ---------
Income before
minority interest
and discontinued
operations and
(loss) gain on sale
of other investments $ 15,021
======== ======== ======== ======== ======== =========
(in thousands)
-------------------------------------------------------
Multi-
Family Commerc- Commerc- Commerc- Commerc-
Twelve Months Ended Residen- ial- ial- ial- ial-
April 30, 2007 tial Office Medical Industrial Retail Total
-------- -------- -------- -------- -------- ---------
Real estate revenue $ 66,972 $ 73,603 $ 34,783 $ 8,091 $ 14,089 $ 197,538
Real estate expenses 31,454 30,475 8,675 1,253 4,475 76,332
-------- -------- -------- -------- -------- ---------
Net operating
Income $ 35,518 $ 43,128 $ 26,108 $ 6,838 $ 9,614 121,206
======== ======== ======== ======== ======== ---------
Interest (58,424)
Depreciation/
amortization (45,501)
Administrative,
advisory and
trustee fees (4,451)
Operating expenses (1,240)
Non-operating
income 2,665
-------- -------- -------- -------- -------- ---------
Income before
minority interest
and discontinued
operations and
(loss) gain on sale
of other investments $ 14,255
======== ======== ======== ======== ======== =========
INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
April 30, 2008 and 2007
(in thousands)
------------------------
April 30, April 30,
2008 2007
----------- -----------
ASSETS
Real estate investments
Property owned $ 1,648,259 $ 1,489,287
Less accumulated depreciation (219,379) (180,544)
----------- -----------
1,428,880 1,308,743
Development in progress 22,856 3,498
Unimproved land 3,901 3,894
Mortgage loans receivable, net of allowance 541 399
----------- -----------
Total real estate investments 1,456,178 1,316,534
----------- -----------
Other assets
Cash and cash equivalents 53,481 44,516
Marketable securities - available-for-sale 420 2,048
Receivable arising from straight-lining of
rents, net of allowance 14,113 12,558
Accounts receivable, net of allowance 4,163 3,171
Real estate deposits 1,379 735
Prepaid and other assets 349 568
Intangible assets, net of accumulated
amortization 61,649 33,240
Tax, insurance, and other escrow 8,642 7,222
Property and equipment, net 1,467 1,458
Goodwill 1,392 1,397
Deferred charges and leasing costs, net 14,793 11,942
----------- -----------
TOTAL ASSETS $ 1,618,026 $ 1,435,389
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued expenses $ 33,757 $ 28,995
Mortgages payable 1,063,858 951,139
Other 978 896
----------- -----------
TOTAL LIABILITIES 1,098,593 981,030
----------- -----------
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST IN PARTNERSHIPS 12,609 12,925
MINORITY INTEREST OF UNITHOLDERS IN OPERATING
PARTNERSHIP 161,818 156,465
(21,238,342 units at April 30, 2008 and
19,981,259 units at April 30, 2007)
SHAREHOLDERS' EQUITY
Preferred Shares of Beneficial Interest
(Cumulative redeemable preferred shares, no
par value, 1,150,000 shares issued and
outstanding at April 30, 2008 and April 30,
2007, aggregate liquidation preference of
$28,750,000) 27,317 27,317
Common Shares of Beneficial Interest
(Unlimited authorization, no par value,
57,731,863 shares issued and outstanding at
April 30, 2008, and 48,570,461 shares issued
and outstanding at April 30, 2007) 440,187 354,495
Accumulated distributions in excess of net
income (122,498) (96,827)
Accumulated other comprehensive loss 0 (16)
----------- -----------
Total shareholders' equity 345,006 284,969
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,618,026 $ 1,435,389
=========== ===========
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