Investors Real Estate Trust Announces 2008 Distribution Allocation

Investors Real Estate Trust (NASDAQ: IRET) (NASDAQ: IRETP) today announced the final tax treatment (Form 1099) for calendar year 2008 distributions on its common and preferred shares of beneficial interest. Shareholders are encouraged to consult with their personal tax advisors as to the specific tax treatment of their Investors Real Estate Trust distributions. None of the following 2008 calendar year distributions is eligible for treatment as "qualified dividend income."

                                   Cash        Ordinary    Return    Total
Security      Record  Payable  Distribution     Taxable      of     Capital
 Description   Date    Date      Per Share   Distribution  Capital   Gain
             -------- -------- ------------  ------------ -------- --------
Common
 Shares      01/02/08 01/14/08 $     0.1675  $     0.0895 $ 0.0780 $ 0.0000
CUSIP:       03/14/08 04/01/08 $     0.1680  $     0.0898 $ 0.0782 $ 0.0000
 461730103   06/16/08 07/01/08 $     0.1685  $     0.0900 $ 0.0785 $ 0.0000
Symbol: IRET 09/15/08 10/01/08 $     0.1690  $     0.0903 $ 0.0787 $ 0.0000
                               ------------  ------------ -------- --------
                        TOTALS $     0.6730  $     0.3596 $ 0.3134 $ 0.0000
                               ============  ============ ======== ========


                                   Cash        Ordinary    Return    Total
Security      Record  Payable  Distribution     Taxable      of     Capital
 Description   Date    Date      Per Share   Distribution  Capital   Gain
             -------- -------- ------------  ------------ -------- --------
Series A
 Preferred
 Shares      03/14/08 03/31/08 $   0.515625  $   0.515625 $ 0.0000 $ 0.0000
CUSIP:       06/16/08 06/30/08 $   0.515625  $   0.515625 $ 0.0000 $ 0.0000
 461730202   09/15/08 09/30/08 $   0.515625  $   0.515625 $ 0.0000 $ 0.0000
Symbol:      12/15/08 12/31/08 $   0.515625  $   0.515625 $ 0.0000 $ 0.0000
 IRETP                         ------------  ------------ -------- --------
                        TOTALS $   2.062500  $   2.062500 $ 0.0000 $ 0.0000
                               ============  ============ ======== ========

Investors Real Estate Trust is a real estate investment trust headquartered in Minot, North Dakota, with additional offices in Minneapolis, Minnesota, and Omaha, Nebraska. As of October 31, 2008, IRET owned 165 commercial properties consisting of office, medical, industrial and retail properties, with a total of approximately 11.6 million square feet, and 77 multi-family apartment communities with a total of 9,564 units, with properties located primarily in the Midwest. For more company information, visit the Investors Real Estate Trust website at www.iret.com.