|
North
Dakota
|
0-14851
|
45-0311232
|
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File
Number)
|
(IRS
Employer
Identification
No.)
|
|
12
South Main Street
Minot,
ND 58701
|
|
(Address
of principal executive offices, including zip
code)
|
|
|
□
|
Written
communications pursuant to Rule 425 under the Securities
Act
|
|
|
□
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange
Act
|
|
|
□
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act
|
|
|
□
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act
|
|
Item
2.01
|
Completion
of Acquisition or Disposition of
Assets.
|
|
Item
9.01
|
Financial
Statements and Exhibits.
|
|
(a)
|
Financial Statements
of Real Estate Acquired. The following financial statements are
submitted at the end of this Current Report on Form 8-K/A and are filed
herewith and incorporated herein by
reference:
|
|
Urbandale
3900 106th
Street, Urbandale, IA
|
|
|
Intertech
Building, Fenton, MO
|
|
|
Edgewood
Vista - East Grand Forks, MN
|
|
|
Edgewood
Vista - Billings, MT
|
|
|
Edgewood
Vista - Sioux Falls, SD
|
|
|
Minneapolis
701 25th
Ave Medical - Minneapolis, MN
|
|
|
Edgewood
Vista - Belgrade, MT
|
|
|
Edgewood
Vista - Columbus, NE
|
|
|
Edgewood
Vista - Grand Island, NE
|
|
|
Edgewood
Vista - Norfolk, NE
|
|
|
Edgewood
Vista - Fargo, ND
|
|
|
(b)
|
Pro Forma Financial
Information. The following proforma financial information is
submitted at the end of this Current Report on Form 8-K/A and is furnished
herewith and incorporated herein by
reference:
|
|
(c)
|
Exhibits.
None.
|
|
INVESTORS REAL ESTATE
TRUST
|
||
|
(Registrant)
|
||
|
By:
|
/s/
Timothy P. Mihalick
|
|
|
Timothy
P. Mihalick
|
||
|
Senior
Vice President &
|
||
|
Chief
Operating Officer
|
|
Urbandale
3900 106th
Street, Urbandale, IA
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
Intertech
Building, Fenton, MO
|
|
|
11
|
|
|
12
|
|
|
13
|
|
|
Edgewood
Vista - East Grand Forks, ND
|
|
|
15
|
|
|
16
|
|
|
17
|
|
|
Edgewood
Vista - Billings, MT
|
|
|
19
|
|
|
20
|
|
|
21
|
|
|
Edgewood
Vista - Sioux Falls, SD
|
|
|
23
|
|
|
24
|
|
|
25
|
|
|
Minneapolis
701 25th
Ave Medical - Minneapolis, MN
|
|
|
27
|
|
|
28
|
|
|
29
|
|
Edgewood
Vista - Belgrade, MT
|
|
|
31
|
|
|
32
|
|
|
33
|
|
|
Edgewood
Vista – Columbus, NE
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
Edgewood
Vista - Grand Island, NE
|
|
|
39
|
|
|
40
|
|
|
41
|
|
|
Edgewood
Vista - Norfolk, NE
|
|
|
43
|
|
|
44
|
|
|
45
|
|
|
Edgewood
Vista - Fargo, ND
|
|
|
47
|
|
|
48
|
|
|
49
|
|
|
51
|
|
|
53
|
|
|
55
|
|
12/31/06
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue and Tenant Reimbursements
|
$ | 1,309,942 | ||
|
DIRECT
OPERATING EXPENSES
|
||||
|
Utilities
Expense
|
$ | 78,289 | ||
|
Maintenance
Expense
|
186,274 | |||
|
Property
Management
|
43,737 | |||
|
Real
Estate Taxes
|
202,331 | |||
|
Total
Direct Operating Expenses
|
$ | 510,631 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 799,311 | ||
|
Note
1.
|
Nature of
Business
The
Urbandale 3900 106th
Street, a one-story multi-tenant warehouse building and one-story fleet
garage building, which contains approximately 528,353 rentable square
feet, is located at 3900 106th
Street, Urbandale, Iowa. The property was acquired on June 20,
2007. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Urbandale 3900 106th
Street for the year ended December 31, 2006, as recorded by the property’s
previous owner, subject to the exclusions described
below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Urbandale 3900 106th
Street on June 20, 2007. The historical summary has been prepared for the
purpose of complying with Regulation S-X, Rule 3-14 of the Securities and
Exchange Commission ("SEC"), which requires certain information with
respect to real estate operations acquired to be included with certain
filings with the SEC. This historical summary includes the historical
gross income and direct operating expenses of Urbandale 3900 106th
Street, exclusive of the following expenses, which may not be comparable
to the corresponding amounts reflected in proposed future
operations:
(a) depreciation
of property and equipment
(b) interest
expense
(c) insurance
expense
Because
insurance expense has not been included as operating expenses in the
historical summary, revenue reported as tenant reimbursements in the
historical summary has also been adjusted to exclude amounts equal to
management fees and insurance expenses.
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the leases. All leases are classified as operating leases and expire at
various dates prior to January 2011. The following is a schedule by years
of future actual minimum rents receivable on non-cancelable operating
leases in effect as of December 31,
2006.
|
|
Year
|
Amount
|
|||
|
2007
|
$ | 800,435 | ||
|
2008
|
802,134 | |||
|
2009
|
670,150 | |||
|
2010
|
556,000 | |||
|
2011
|
46,333 | |||
|
Thereafter
|
0 | |||
|
Total
|
$ | 2,875,052 | ||
|
12/31/05
|
12/31/06
|
12/31/07
|
||||||||||
|
GROSS
INCOME
|
||||||||||||
|
Rental
Revenue and Tenant Reimbursements
|
$ | 1,234,563 | $ | 738,804 | $ | 897,792 | ||||||
|
DIRECT
OPERATING EXPENSES
|
||||||||||||
|
Utilities
Expense
|
$ | 108,360 | $ | 80,164 | $ | 91,092 | ||||||
|
Maintenance
Expense
|
178,623 | 156,260 | 170,043 | |||||||||
|
Real
Estate Taxes
|
172,363 | 154,358 | 164,437 | |||||||||
|
Total
Direct Operating Expenses
|
$ | 459,346 | $ | 390,782 | $ | 425,572 | ||||||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 775,217 | $ | 348,022 | $ | 472,220 | ||||||
|
Note
1.
|
Nature of
Business
The
Intertech Building, a two-story multi-tenant commercial office building,
which contains approximately 64,607 rentable square feet, is located at
1855 – 1859 Bowles Avenue, Fenton, MO. The property was acquired on
December 28, 2007 from affiliates of W. David Scott, a member of the
Company’s Board of Trustees. The Historical Summary of Gross
Income and Direct Operating Expenses includes information related to the
operations of Intertech Building for the years ended December 31, 2005,
2006 and 2007 as recorded by the property’s previous owner, subject to the
exclusions described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Intertech Building on December 28, 2007. The historical
summary has been prepared for the purpose of complying with Regulation
S-X, Rule 3-14 of the Securities and Exchange Commission ("SEC"), which
requires certain information with respect to real estate operations
acquired to be included with certain filings with the SEC. This historical
summary includes the historical gross income and direct operating expenses
of Intertech Building, exclusive of the following expenses, which may not
be comparable to the corresponding amounts reflected in proposed future
operations:
(a) depreciation
of property and equipment
(b) interest
expense
(c) management
fees
(d) insurance
expense
(e) non-pass
through administrative expenses
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the leases. All leases are classified as operating leases and expire at
various dates prior to March 2014. The following is a schedule by years of
future actual minimum rents receivable on non-cancelable operating leases
in effect as of December 31,
2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 1,058,573 | ||
|
2009
|
1,061,018 | |||
|
2010
|
765,267 | |||
|
2011
|
548,509 | |||
|
2012
|
500,315 | |||
|
Thereafter
|
532,034 | |||
|
Total
|
$ | 4,465,716 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 222,000 | ||
|
DIRECT
OPERATING EXPENSES
|
||||
|
Real
Estate Taxes
|
$ | 21,208 | ||
|
Interest
Expense
|
92,442 | |||
|
Total
Direct Operating Expenses
|
$ | 113,650 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 108,350 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – East Grand Forks, MN, a single-story senior housing
facility, which contains approximately 18,488 rentable square feet, is
located at 608 5th
Avenue NW, East Grand Forks, MN. The property was acquired on February 29,
2008 from affiliates of Edgewood Vista, 100% of the member interests in
limited liability companies owning three senior housing
facilities. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Edgewood Vista – East Grand Forks for the year ended December 31, 2007 as
recorded by the property’s previous owner, subject to the exclusions
described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – East Grand Forks, ND on February 29,
2008. The historical summary has been prepared for the purpose of
complying with Regulation S-X, Rule 3-14 of the Securities and Exchange
Commission ("SEC"), which requires certain information with respect to
real estate operations acquired to be included with certain filings with
the SEC. This historical summary includes the historical gross income and
direct operating expenses of Edgewood Vista – East Grand Forks, ND,
exclusive of the following expenses, which may not be comparable to the
corresponding amounts reflected in proposed future
operations:
(a) depreciation
of property and equipment
(b) insurance
expense
(c) certain
administrative expenses
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
October 2014. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 222,000 | ||
|
2009
|
222,000 | |||
|
2010
|
222,000 | |||
|
2011
|
222,000 | |||
|
2012
|
222,000 | |||
|
Thereafter
|
407,000 | |||
|
Total
|
$ | 1,517,000 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 61,200 | ||
|
DIRECT
OPERATING EXPENSES
|
||||
|
Real
Estate Taxes
|
$ | 17,775 | ||
|
Interest
Expense
|
66,747 | |||
|
Total
Direct Operating Expenses
|
$ | 84,522 | ||
|
EXCESS
(DEFICIT) OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | (23,322 | ) | |
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Billings, MT, a single-story senior housing facility,
which contains approximately 11,800 rentable square feet, is located at
1225 Wicks Lane, Billings, MT. The property was acquired on February 29,
2008 from affiliates of Edgewood Vista, 100% of the member interests in
limited liability companies owning three senior housing
facilities. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Edgewood Vista – Billings, MT for the year ended December 31, 2007 as
recorded by the property’s previous owner, subject to the exclusions
described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Billings, MT on February 29, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Billings, MT, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) insurance
expense
(c) certain
administrative expenses
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
September 2013. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 61,200 | ||
|
2009
|
61,200 | |||
|
2010
|
61,200 | |||
|
2011
|
61,200 | |||
|
2012
|
61,200 | |||
|
Thereafter
|
45,900 | |||
|
Total
|
$ | 351,900 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 61,200 | ||
|
DIRECT
OPERATING EXPENSES
|
||||
|
Real
Estate Taxes
|
$ | 16,980 | ||
|
Interest
Expense
|
66,675 | |||
|
Total
Direct Operating Expenses
|
$ | 83,655 | ||
|
EXCESS
(DEFICIT) OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | (22,455 | ) | |
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Sioux Falls, SD, a single-story senior housing facility,
which contains approximately 11,800 rentable square feet, is located at
3401 West Ralph Rogers Road, Sioux Falls, SD. The property was acquired on
February 29, 2008 from affiliates of Edgewood Vista, 100% of the member
interests in limited liability companies owning three senior housing
facilities. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Edgewood Vista – Sioux Falls, SD for the year ended December 31, 2007 as
recorded by the property’s previous owner, subject to the exclusions
described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Sioux Falls, SD on February 29, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Sioux Falls, SD, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) insurance
expense
(c) certain
administrative expenses
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue
Recognition - Rental revenue is recognized on the
straight-line basis, which averages minimum rents over the terms of the
lease. This lease is classified as an operating leases and expires in
September 2013. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 61,200 | ||
|
2009
|
61,200 | |||
|
2010
|
61,200 | |||
|
2011
|
61,200 | |||
|
2012
|
61,200 | |||
|
Thereafter
|
45,900 | |||
|
Total
|
$ | 351,900 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue and Tenant Reimbursements
|
$ | 1,459,043 | ||
|
DIRECT
OPERATING EXPENSES
|
||||
|
Utilities
Expense
|
$ | 190,731 | ||
|
Maintenance
Expense
|
212,746 | |||
|
Property
Management
|
25,000 | |||
|
Real
Estate Taxes
|
236,578 | |||
|
Total
Direct Operating Expenses
|
$ | 665,055 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 793,988 | ||
|
Note
1.
|
Nature of
Business
The
Minneapolis 701 25th
Avenue Medical, a five-story medical office building, which contains
approximately 57,212 rentable square feet, is located at 701 25th
Avenue South, Minneapolis, MN. The property was acquired on March 3, 2008
as a part of a portfolio of six medical office properties located in the
greater Minneapolis, Minnesota metropolitan area. The
Historical Summary of Gross Income and Direct Operating Expenses includes
information related to the operations of Minneapolis 701 25th
Avenue Medical for the year ended December 31, 2007 as recorded by the
property’s previous owner, subject to the exclusions described
below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Minneapolis 701 25th
Avenue Medical on March 3, 2008. The historical summary has been prepared
for the purpose of complying with Regulation S-X, Rule 3-14 of the
Securities and Exchange Commission ("SEC"), which requires certain
information with respect to real estate operations acquired to be included
with certain filings with the SEC. This historical summary includes the
historical gross income and direct operating expenses of Minneapolis 701
25th
Avenue Medical, exclusive of the following expenses, which may not be
comparable to the corresponding amounts reflected in proposed future
operations:
(a) depreciation
of property and equipment
(b) interest
expense
(c) management
fees
(d) insurance
expense
(e) certain
administrative expenses
Because
insurance expense and management fees have not been included as operating
expenses in the historical summary, revenue reported as tenant
reimbursements in the historical summary has also been adjusted to exclude
amounts equal to management fees and insurance
expenses.
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
September 2017. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 851,107 | ||
|
2009
|
762,934 | |||
|
2010
|
766,872 | |||
|
2011
|
780,064 | |||
|
2012
|
746,480 | |||
|
Thereafter
|
1,297,299 | |||
|
Total
|
$ | 5,204,756 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 98,100 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 98,100 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Belgrade, MT, a single-story senior housing facility,
which contains approximately 5,192 rentable square feet, is located at
1011 Cardinal Drive, Belgrade, MT. The property was acquired on March 6,
2008 from affiliates of Edgewood Vista Senior Living, Inc. The
Historical Summary of Gross Income and Direct Operating Expenses includes
information related to the operations of Edgewood Vista – Belgrade, MT for
the year ended December 31, 2007 as recorded by the property’s previous
owner, subject to the exclusions described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Belgrade, MT on March 6, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Belgrade, MT, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) interest
expense
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
December 2015. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 98,100 | ||
|
2009
|
98,100 | |||
|
2010
|
98,100 | |||
|
2011
|
98,100 | |||
|
2012
|
98,100 | |||
|
Thereafter
|
294,300 | |||
|
Total
|
$ | 784,800 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 98,100 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 98,100 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Columbus, NE, a single-story senior housing facility,
which contains approximately 5,194 rentable square feet, is located at
3386 53rd
Avenue, Columbus, NE. The property was acquired on March 6, 2008 from
affiliates of Edgewood Vista Senior Living, Inc. The Historical
Summary of Gross Income and Direct Operating Expenses includes information
related to the operations of Edgewood Vista – Columbus, NE for the year
ended December 31, 2007 as recorded by the property’s previous owner,
subject to the exclusions described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Columbus, NE on March 6, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Columbus, NE, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) interest
expense
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
October 2015. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 98,100 | ||
|
2009
|
98,100 | |||
|
2010
|
98,100 | |||
|
2011
|
98,100 | |||
|
2012
|
98,100 | |||
|
Thereafter
|
277,950 | |||
|
Total
|
$ | 768,450 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 98,100 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 98,100 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Grand Island, NE, a single-story senior housing facility,
which contains approximately 5,185 rentable square feet, is located at 214
North Piper Street, Grand Island NE. The property was acquired on March 6,
2008 from affiliates of Edgewood Vista Senior Living, Inc. The
Historical Summary of Gross Income and Direct Operating Expenses includes
information related to the operations of Edgewood Vista – Grand Island, NE
for the year ended December 31, 2007 as recorded by the property’s
previous owner, subject to the exclusions described
below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Grand Island, NE on March 6, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Grand Island, NE, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) interest
expense
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of
financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
October 2015. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 98,100 | ||
|
2009
|
98,100 | |||
|
2010
|
98,100 | |||
|
2011
|
98,100 | |||
|
2012
|
98,100 | |||
|
Thereafter
|
277,950 | |||
|
Total
|
$ | 768,450 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 103,865 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 103,865 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Norfolk, NE, a single-story senior housing facility,
which contains approximately 5,135 rentable square feet, is located at
1109 West Pasewalk Avenue, Norfolk, NE. The property was acquired on March
6, 2008 from affiliates of Edgewood Vista Senior Living,
Inc. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Edgewood Vista – Norfolk, NE for the year ended December 31, 2007 as
recorded by the property’s previous owner, subject to the exclusions
described below.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Norfolk, NE on March 6, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Norfolk, NE, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) interest
expense
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
September 2016. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 103,695 | ||
|
2009
|
103,695 | |||
|
2010
|
103,695 | |||
|
2011
|
103,695 | |||
|
2012
|
103,695 | |||
|
Thereafter
|
388,856 | |||
|
Total
|
$ | 907,331 | ||
|
12/31/07
|
||||
|
GROSS
INCOME
|
||||
|
Rental
Revenue
|
$ | 735,703 | ||
|
EXCESS
OF GROSS INCOME OVER DIRECT OPERATING EXPENSES
|
$ | 735,703 | ||
|
Note
1.
|
Nature of
Business
The
Edgewood Vista – Fargo, ND, a three-story senior housing facility, which
contains approximately 156,001 rentable square feet and underground heated
parking, seven individual single-story patio homes of approximately 1,600
square feet each and a separate management office building, is located at
4420 and 4440 37th Avenue South, Fargo, ND. The property was acquired on
March 6, 2008 from affiliates of Edgewood Vista Senior Living,
Inc. The Historical Summary of Gross Income and Direct
Operating Expenses includes information related to the operations of
Edgewood Vista – Fargo, ND for the four months ended December 31, 2007 as
recorded by the property’s previous owner, subject to the exclusions
described below. Edgewood Vista-Fargo, ND was a new property with a lease
commencement date of September 1, 2007.
|
|
Note
2.
|
Basis of
Presentation
IRET,
Inc., purchased Edgewood Vista – Fargo, ND on March 6, 2008. The
historical summary has been prepared for the purpose of complying with
Regulation S-X, Rule 3-14 of the Securities and Exchange Commission
("SEC"), which requires certain information with respect to real estate
operations acquired to be included with certain filings with the SEC. This
historical summary includes the historical gross income and direct
operating expenses of Edgewood Vista – Fargo, ND, exclusive of the
following expenses, which may not be comparable to the corresponding
amounts reflected in proposed future operations:
(a) depreciation
of property and equipment
(b) interest
expense
|
|
Note
3.
|
Summary of Significant
Accounting Policies Use of Estimates - The preparation of financial
statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Capitalization
Policy - Expenditures for renewals and improvements that
significantly add to the productive capacity or extend the useful life of
an asset are capitalized. Expenditures for maintenance and repairs, which
do not add to the value or extend useful lives, are charged to expense as
incurred.
Revenue Recognition - Rental revenue is recognized
on the straight-line basis, which averages minimum rents over the terms of
the lease. This lease is classified as an operating leases and expires in
February 2015. The following is a schedule by years of future actual
minimum rents receivable on the non-cancelable operating lease in effect
as of December 31, 2007.
|
|
Year
|
Amount
|
|||
|
2008
|
$ | 1,938,841 | ||
|
2009
|
2,310,823 | |||
|
2010
|
2,449,210 | |||
|
2011
|
2,313,879 | |||
|
2012
|
2,283,738 | |||
|
Thereafter
|
4,948,099 | |||
|
Total
|
$ | 16,244,590 | ||
|
(in
thousands)
|
IRET
Consolidated 01/31/08 Unaudited
(a)
|
Edgewood
Vista – East Grand
Forks,
MN
(b)
|
Edgewood
Vista –
Billings,
MT
(b)
|
Edgewood
Vista – Sioux, Falls, SD
(b)
|
Minneapolis
701 25th
Avenue
Medical
(c)
|
Edgewood
Vista – Belgrade, MT (d)
|
Edgewood
Vista – Columbus, NE
(d)
|
Edgewood
Vista – Grand Island, NE
(d)
|
Edgewood
Vista – Norfolk, NE (d)
|
Edgewood
Vista –
Fargo,
NE
(d)
|
Insignificant
Acquisition
(e)
|
Pro
Forma Consolidated
|
||||||||||||||||||||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Real
estate investments
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Property
owned
|
$ | 1,558,560 | $ | 1,673 | $ | 1,897 | $ | 1,315 | $ | 7,874 | $ | 814 | $ | 867 | $ | 807 | $ | 752 | $ | 21,842 | $ | 37,256 | $ | 1,633,657 | ||||||||||||||||||||||||
|
Less
accumulated depreciation/amortization
|
(209,400 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (209,400 | ) | ||||||||||||||||||||||||||||||||||
| $ | 1,349,160 | $ | 1,673 | $ | 1,897 | $ | 1,315 | $ | 7,874 | $ | 814 | $ | 867 | $ | 807 | $ | 752 | $ | 21,842 | $ | 37,256 | $ | 1,424,257 | |||||||||||||||||||||||||
|
Undeveloped
land
|
18,635 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18,635 | ||||||||||||||||||||||||||||||||||||
|
Mortgage
loans receivable, net of allowance
|
548 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 548 | ||||||||||||||||||||||||||||||||||||
|
Total
real estate investments
|
$ | 1,368,343 | $ | 1,673 | $ | 1,897 | $ | 1,315 | $ | 7,874 | $ | 814 | $ | 867 | $ | 807 | $ | 752 | $ | 21,842 | $ | 37,256 | $ | 1,443,440 | ||||||||||||||||||||||||
|
Other
assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash
and cash equivalents
|
$ | 76,392 | $ | (3,600 | ) | $ | (3,331 | ) | $ | (2,421 | ) | $ | 39 | $ | (2,135 | ) | $ | (1,481 | ) | $ | (1,431 | ) | $ | (1,319 | ) | $ | (7,217 | ) | $ | (7,455 | ) | $ | 46,041 | |||||||||||||||
|
Marketable
securities-available-for-sale
|
2,160 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,160 | ||||||||||||||||||||||||||||||||||||
|
Receivable
arising from straight-lining of rents, net of allowance
|
13,753 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13,753 | ||||||||||||||||||||||||||||||||||||
|
Accounts
receivable - net of allowance
|
3,842 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,842 | ||||||||||||||||||||||||||||||||||||
|
Real
estate deposits
|
1,103 | 0 | 0 | 0 | (173 | ) | 0 | 0 | 0 | 0 | 0 | (659 | ) | 271 | ||||||||||||||||||||||||||||||||||
|
Prepaid
and other assets
|
821 | 0 | 5 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 831 | ||||||||||||||||||||||||||||||||||||
|
Intangible
assets, net of accumulated amortization
|
29,025 | 3,354 | 2,392 | 2,065 | 840 | 1,321 | 614 | 624 | 567 | 4,480 | 10,939 | 56,221 | ||||||||||||||||||||||||||||||||||||
|
Tax,
insurance, and other escrow
|
8,060 | 106 | 72 | 76 | 0 | 0 | 0 | 0 | 0 | 0 | 293 | 8,607 | ||||||||||||||||||||||||||||||||||||
|
Property
and equipment, net
|
1,487 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,487 | ||||||||||||||||||||||||||||||||||||
|
Goodwill
|
1,396 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,396 | ||||||||||||||||||||||||||||||||||||
|
Deferred
charges and leasing costs - net
|
13,528 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13,528 | ||||||||||||||||||||||||||||||||||||
|
TOTAL
ASSETS
|
$ | 1,519,910 | $ | 1,533 | $ | 1,035 | $ | 1,040 | $ | 8,580 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 19,105 | $ | 40,374 | $ | 1,591,577 | ||||||||||||||||||||||||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
LIABILITIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Accounts
payable and accrued expenses
|
$ | 29,573 | $ | 61 | $ | 37 | $ | 35 | $ | 330 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 425 | $ | 2,826 | $ | 33,287 | ||||||||||||||||||||||||
|
Mortgages
payable
|
975,785 | 1,472 | 998 | 1,005 | 6.950 | 0 | 0 | 0 | 0 | 14,680 | 32,871 | 1,033,761 | ||||||||||||||||||||||||||||||||||||
|
Other
debt
|
1,019 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 1,022 | ||||||||||||||||||||||||||||||||||||
|
TOTAL
LIABILITIES
|
$ | 1,006,377 | $ | 1,533 | $ | 1,035 | $ | 1,040 | $ | 7,280 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 15,105 | $ | 35,700 | $ | 1,068,070 | ||||||||||||||||||||||||
|
MINORITY
INTEREST IN PARTNERSHIPS
|
12,768 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12,768 | ||||||||||||||||||||||||||||||||||||
|
MINORITY
INTEREST OF UNIT HOLDERS
IN
OPERATING PARTNERSHIP
(20,395,411 units on January31, 2008 and 19,981,259 units on April 30,
2007)
|
155,301 | 0 | 0 | 0 | 1,211 | 0 | 0 | 0 | 0 | 4,000 | 4,148 | 164,660 | ||||||||||||||||||||||||||||||||||||
|
SHAREHOLDERS’
EQUITY
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Preferred
shares of beneficial interest (Cumulative redeemable
preferred shares, no par value, 1,150,000 shares issued and outstanding at
January 31, 2008 and April 30, 2007, aggregate liquidation preference of
$28,750,000)
|
27,317 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27,317 | ||||||||||||||||||||||||||||||||||||
|
Common
shares of beneficial interest (Unlimited authorization, no
par value, 56,977,406 shares issued and outstanding at January 31, 2008,
48,570,461 shares issued and outstanding at April 30,
2007)
|
433,645 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 433,645 | ||||||||||||||||||||||||||||||||||||
|
Accumulated
distributions in excess of net income
|
$ | (115,546 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 89 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 526 | $ | (114,931 | ) | ||||||||||||||||||||||
|
Accumulated
other comprehensive loss
|
48 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48 | ||||||||||||||||||||||||||||||||||||
|
TOTAL
SHAREHOLDERS’ EQUITY
|
$ | 345,464 | $ | 0 | $ | 0 | $ | 0 | $ | 89 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 526 | $ | 346,079 | ||||||||||||||||||||||||
|
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 1,519,910 | $ | 1,533 | $ | 1,035 | $ | 1,040 | $ | 8,580 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 19,105 | $ | 40,374 | $ | 1,591,577 | ||||||||||||||||||||||||
|
(a)
|
The
IRET historical balance sheet reflects the financial position of the
Company as of January 31, 2008, as reported in the Company’s Form 10-Q
filed March 11, 2008. Includes
Urbandale 3900 106th
Street acquired June 20, 2007 and Intertech Building acquired December 28,
2007.
|
|
(b)
|
Represents
the necessary adjustments to reflect the acquisition of three senior
housing facilities from affiliates of Edgewood Vista on February 29, 2008,
as if such acquisition had occurred on January 31,
2008.
|
|
(c)
|
Represents
the necessary adjustments to reflect the acquisition of a medical office
building acquired as a part of a portfolio of six medical office
properties that were acquired on March 3, 2008, as if such acquisition had
occurred on January 31, 2008.
|
|
(d)
|
Represents
the necessary adjustments to the reflect the acquisition of a senior
housing facility, acquired as part of a five senior housing acquisition
from affiliates of Edgewood Vista Senior Living, Inc., that were acquired
on March 6, 2008, as if such acquisition had occurred on January 31,
2008.
|
|
(e)
|
Represents
the necessary adjustments to reflect the acquisition of real estate
properties (five medical properties) that were acquired on March 3, 2008,
as if such acquisitions had occurred on January 31,
2008.
|
|
(in
thousands, except per
share
data)
|
Nine
Months Ended January 31 2008
|
Urbandale
3900 106th
Street (1)
|
Intertech
Building
(2)
|
Edgewood
Vista – East Grand Forks, MN
(3)
|
Edgewood
Vista – Billings, MT
(3)
|
Edgewood
Vista – Sioux, Falls, SD
(3)
|
Minneapolis
701 25th
Avenue Medical
(4)
|
Edgewood
Vista – Belgrade, MT (5)
|
Edgewood
Vista – Columbus, NE
(5)
|
Edgewood
Vista – Grand Island, NE (5)
|
Edgewood
Vista – Norfolk, NE
(5)
|
Edgewood
Vista – Fargo, ND
(5)
|
Insignificant
Acquisitions (6)
|
Total
Consolidated Pro Forma
|
||||||||||||||||||||||||||||||||||||||||||
|
REVENUE
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Real
estate rentals
|
$ | 133,469 | $ | 161 | $ | 748 | $ | 380 | $ | 267 | $ | 235 | $ | 714 | $ | 141 | $ | 95 | $ | 95 | $ | 90 | $ | 1,766 | $ | 5,441 | $ | 143,602 | ||||||||||||||||||||||||||||
|
Tenant
reimbursement
|
28,919 | 53 | 12 | 0 | 0 | 0 | 547 | 0 | 0 | 0 | 0 | 0 | 2,590 | 32,121 | ||||||||||||||||||||||||||||||||||||||||||
|
TOTAL
REVENUE
|
162,388 | 214 | 760 | 380 | 267 | 235 | 1,261 | 141 | 95 | 95 | 90 | 1,766 | 8,031 | 175,723 | ||||||||||||||||||||||||||||||||||||||||||
|
OPERATING
EXPENSE
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest
|
46,969 | 89 | 19 | 72 | 100 | 100 | 343 | 0 | 0 | 0 | 0 | 391 | 2,406 | 50,489 | ||||||||||||||||||||||||||||||||||||||||||
|
Depreciation/amortization
related to real estate investments
|
36,547 | 73 | 289 | 181 | 149 | 118 | 252 | 50 | 30 | 30 | 30 | 462 | 3,022 | 41,233 | ||||||||||||||||||||||||||||||||||||||||||
|
Utilities
|
12,454 | 9 | 62 | 0 | 0 | 0 | 133 | 0 | 0 | 0 | 0 | 10 | 441 | 13,109 | ||||||||||||||||||||||||||||||||||||||||||
|
Maintenance
|
18,225 | 19 | 114 | 0 | 0 | 0 | 157 | 0 | 0 | 0 | 0 | 0 | 796 | 19,311 | ||||||||||||||||||||||||||||||||||||||||||
|
Real
estate taxes
|
19,659 | 32 | 110 | 0 | 0 | 0 | 167 | 0 | 0 | 0 | 0 | 0 | 1,278 | 21,246 | ||||||||||||||||||||||||||||||||||||||||||
|
Insurance
|
1,928 | 5 | 8 | 0 | 0 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | 70 | 2,021 | ||||||||||||||||||||||||||||||||||||||||||
|
Property
management expenses
|
11,317 | 6 | 15 | 0 | 0 | 0 | 119 | 0 | 0 | 0 | 0 | 0 | 638 | 12,095 | ||||||||||||||||||||||||||||||||||||||||||
|
Administrative
expense
|
3,457 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,457 | ||||||||||||||||||||||||||||||||||||||||||
|
Advisory
and trustee services
|
354 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 354 | ||||||||||||||||||||||||||||||||||||||||||
|
Other
operating expenses
|
1,053 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,053 | ||||||||||||||||||||||||||||||||||||||||||
|
Amortization
|
1,039 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,039 | ||||||||||||||||||||||||||||||||||||||||||
|
TOTAL
OPERATING EXPENSE
|
$ | 153,002 | $ | 233 | $ | 617 | $ | 253 | $ | 249 | $ | 218 | $ | 1,181 | $ | 50 | $ | 30 | $ | 30 | $ | 30 | $ | 863 | $ | 8,651 | $ | 165,407 | ||||||||||||||||||||||||||||
|
Operating
income
|
9,386 | (19 | ) | 143 | 127 | 18 | 17 | 80 | 91 | 65 | 65 | 60 | 903 | (620 | ) | 10,316 | ||||||||||||||||||||||||||||||||||||||||
|
Interest
income
|
1,646 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,650 | ||||||||||||||||||||||||||||||||||||||||||
|
Non-operating
income
|
443 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 443 | ||||||||||||||||||||||||||||||||||||||||||
|
Income
before minority interest and discontinued operations and gain on sale of
other investments
|
11,475 | (15 | ) | 143 | 127 | 18 | 17 | 80 | 91 | 65 | 65 | 60 | 903 | (620 | ) | 12,409 | ||||||||||||||||||||||||||||||||||||||||
|
Gain
on sale of other investments
|
4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | ||||||||||||||||||||||||||||||||||||||||||
|
Minority
interest portion of other partnerships’ income
|
(2,704 | ) | 5 | (38 | ) | (33 | ) | (5 | ) | (5 | ) | (21 | ) | (24 | ) | (17 | ) | (17 | ) | (16 | ) | (238 | ) | 163 | (2,950 | ) | ||||||||||||||||||||||||||||||
|
Minority
interest portion of operating partnership income
|
25 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25 | ||||||||||||||||||||||||||||||||||||||||||
|
Income
from continuing operations
|
8,800 | (10 | ) | 105 | 94 | 13 | 12 | 59 | 67 | 48 | 48 | 44 | 665 | (457 | ) | 9,488 | ||||||||||||||||||||||||||||||||||||||||
|
Discontinued
operations, net
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME
|
8,800 | (10 | ) | 105 | 94 | 13 | 12 | 59 | 67 | 48 | 48 | 44 | 665 | (457 | ) | 9,488 | ||||||||||||||||||||||||||||||||||||||||
|
Dividends
to preferred shareholders
|
(1,779 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,779 | ) | ||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$ | 7,021 | $ | (10 | ) | $ | 105 | $ | 94 | $ | 13 | $ | 12 | $ | 59 | $ | 67 | $ | 48 | $ | 48 | $ | 44 | $ | 665 | (457 | ) | 7,709 | ||||||||||||||||||||||||||||
|
BASIC
AND DILUTED
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Earnings
per common share from continuing operations
|
$ | 0.14 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.01 | (0.01 | ) | 0.15 | |||||||||||||||||||||||||||||
|
Earnings
per common share from discontinued operations
|
0 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME PER COMMON SHARE
|
$ | 0.14 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.01 | (0.01 | ) | 0.15 | |||||||||||||||||||||||||||||
|
Weighted
Average Shares
|
51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 | 51,214 |
|
(in
thousands, except per share data)
|
Twelve
Months Ended April 30 2007
|
Urbandale
3900 106th
Street (1)
|
Intertech
Building
(2)
|
Edgewood
Vista – East Grand Forks, MN
(3)
|
Edgewood
Vista – Billings, MT
(3)
|
Edgewood
Vista – Sioux, Falls, SD
(3)
|
Minneapolis
701 25th
Avenue Medical
(4)
|
Edgewood
Vista – Belgrade, MT (5)
|
Edgewood
Vista – Columbus, NE
(5)
|
Edgewood
Vista – Grand Island, NE (5)
|
Edgewood
Vista – Norfolk, NE
(5)
|
Edgewood
Vista – Fargo, ND
(5)
|
Insignificant
Acquisitions (6)
|
Total
Consolidation Pro Forma
Total
Consolidated Pro Forma
|
||||||||||||||||||||||||||||||||||||||||||
|
REVENUE
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Real
estate rentals
|
$ | 162,680 | $ | 1,154 | $ | 1,136 | $ | 504 | $ | 354 | $ | 312 | $ | 947 | $ | 186 | $ | 126 | $ | 126 | $ | 120 | $ | 2,343 | $ | 7,236 | $ | 177,224 | ||||||||||||||||||||||||||||
|
Tenant
reimbursement
|
35,137 | 378 | 18 | 0 | 0 | 0 | 726 | 0 | 0 | 0 | 0 | 0 | 3,434 | 39,693 | ||||||||||||||||||||||||||||||||||||||||||
|
TOTAL
REVENUE
|
197,817 | 1,532 | 1,154 | 504 | 354 | 312 | 1,673 | 186 | 126 | 126 | 120 | 2,343 | 10,670 | 216,917 | ||||||||||||||||||||||||||||||||||||||||||
|
OPERATING
EXPENSE
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest
|
58,450 | 641 | 29 | 96 | 132 | 132 | 454 | 0 | 0 | 0 | 0 | 519 | 3,194 | 63,647 | ||||||||||||||||||||||||||||||||||||||||||
|
Depreciation/amortization
related to real estate investments
|
44,481 | 521 | 439 | 240 | 198 | 156 | 334 | 67 | 40 | 40 | 40 | 612 | 4,010 | 51,178 | ||||||||||||||||||||||||||||||||||||||||||
|
Utilities
|
15,206 | 62 | 94 | 0 | 0 | 0 | 177 | 0 | 0 | 0 | 0 | 13 | 586 | 16,138 | ||||||||||||||||||||||||||||||||||||||||||
|
Maintenance
|
21,714 | 139 | 173 | 0 | 0 | 0 | 208 | 0 | 0 | 0 | 0 | 0 | 1,058 | 23,292 | ||||||||||||||||||||||||||||||||||||||||||
|
Real
estate taxes
|
23,322 | 227 | 167 | 0 | 0 | 0 | 221 | 0 | 0 | 0 | 0 | 0 | 1,697 | 25,634 | ||||||||||||||||||||||||||||||||||||||||||
|
Insurance
|
2,382 | 35 | 12 | 0 | 0 | 0 | 13 | 0 | 0 | 0 | 0 | 0 | 93 | 2,535 | ||||||||||||||||||||||||||||||||||||||||||
|
Property
management expenses
|
13,854 | 41 | 23 | 0 | 0 | 0 | 158 | 0 | 0 | 0 | 0 | 0 | 848 | 14,924 | ||||||||||||||||||||||||||||||||||||||||||
|
Administrative
expense
|
4,162 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,162 | ||||||||||||||||||||||||||||||||||||||||||
|
Advisory
and trustee services
|
289 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 289 | ||||||||||||||||||||||||||||||||||||||||||
|
Other
operating expenses
|
1,240 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,240 | ||||||||||||||||||||||||||||||||||||||||||
|
Amortization
|
1,082 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,082 | ||||||||||||||||||||||||||||||||||||||||||
|
TOTAL
OPERATING EXPENSE
|
186,182 | 1,666 | 937 | 336 | 330 | 288 | 1,565 | 67 | 40 | 40 | 40 | 1,144 | 11,486 | 204,121 | ||||||||||||||||||||||||||||||||||||||||||
|
Operating
income
|
11,635 | (134 | ) | 217 | 168 | 24 | 24 | 108 | 119 | 86 | 86 | 80 | 1,199 | (816 | ) | 12,796 | ||||||||||||||||||||||||||||||||||||||||
|
Interest
income
|
1,944 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,947 | ||||||||||||||||||||||||||||||||||||||||||
|
Non-operating
income
|
721 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 721 | ||||||||||||||||||||||||||||||||||||||||||
|
Income
before minority interest and discontinued operations and gain on sale of
other investments
|
14,300 | (131 | ) | 217 | 168 | 24 | 24 | 108 | 119 | 86 | 86 | 80 | 1,199 | (816 | ) | 15,464 | ||||||||||||||||||||||||||||||||||||||||
|
Gain
on sale of other investments
|
(38 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (38 | ) | ||||||||||||||||||||||||||||||||||||||||
|
Minority
interest portion of other partnerships’ income
|
(3,229 | ) | 39 | (63 | ) | (49 | ) | (7 | ) | (7 | ) | (31 | ) | (35 | ) | (25 | ) | (25 | ) | (23 | ) | (349 | ) | 238 | (3,566 | ) | ||||||||||||||||||||||||||||||
|
Minority
interest portion of operating partnership income
|
26 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26 | ||||||||||||||||||||||||||||||||||||||||||
|
Income
from continuing operations
|
11,059 | (92 | ) | 154 | 119 | 17 | 17 | 77 | 84 | 61 | 61 | 57 | 850 | (578 | ) | 11,886 | ||||||||||||||||||||||||||||||||||||||||
|
Discontinued
operations, net
|
3,051 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,051 | ||||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME
|
14,110 | (92 | ) | 154 | 119 | 17 | 17 | 77 | 84 | 61 | 61 | 57 | 850 | (578 | ) | 14,937 | ||||||||||||||||||||||||||||||||||||||||
|
Dividends
to preferred shareholders
|
(2,372 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2,372 | ) | ||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$ | 11,738 | $ | (92 | ) | $ | 154 | $ | 119 | $ | 17 | $ | 17 | $ | 77 | $ | 84 | $ | 61 | $ | 61 | $ | 57 | $ | 850 | $ | (578 | ) | $ | 12,565 | ||||||||||||||||||||||||||
|
BASIC
AND DILUTED
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Earnings
per common share from continuing operations
|
$ | 0.18 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.02 | $ | (0.01 | ) | $ | 0.20 | |||||||||||||||||||||||||||
|
Earnings
per common share from discontinued operations
|
0.06 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
|
NET
INCOME PER COMMON SHARE
|
$ | 0.25 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.02 | $ | (0.01 | ) | $ | 0.20 | |||||||||||||||||||||||||||
|
Weighted
Average Shares
|
47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 | 47,672 |
|
(1)
|
The
pro forma income and expense items reflect estimated operations which were
acquired on June 20, 2007.
|
|
(2)
|
The
pro forma income and expense items reflect estimated operations which were
acquired on December 28, 2007.
|
|
(3)
|
The
pro forma income and expense items reflect estimated operations which were
acquired on February 29, 2008. Proforma reflects new leases negotiated at
acquisition; original leases were not
assumed.
|
|
(4)
|
The
pro forma income and expense items reflect estimated operations which were
acquired on March 3, 2008.
|
|
(5)
|
The
pro forma income and expense items reflect estimated operations which were
acquired on March 6, 2008. Proforma reflects new leases negotiated at
acquisition; original leases were not
assumed.
|
|
(6)
|
The
real estate assets acquired by IRET in fiscal year 2008 during the period
from May 1, 2007, to March 6, 2008, are as follows: Barry Pointe (acquired
May 2, 2007), Cedar Lake Business Center (acquired June 12, 2007),
Woodbury 1865 Woodlane and Plymouth 5095 Nathan Lane (acquired July 17,
2007), 610 Business Center (acquired November 9, 2007), Greenfield
Apartments (acquired December 12, 2007), and Edina 6363 France Avenue,
Edina 6405 France Avenue, Eagan 1440 Duckwood, Burnsville 305 Ridgeview
South and Burnsville 303 Ridgeview (acquired March 3,
2008).
|