----

| R | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|   | For the fiscal year ended April 30, 2011 |
|--------|------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|   | For the transition period from ____________ to ____________ |
|--------|-------------------------------------------------------------|

| North Dakota                                                   | 45-0311232                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

| o | Yes | þ | No |
|---|-----|--------|----|

| o | Yes | þ | No |
|---|-----|--------|----|

| þ | Yes | o | No |
|--------|-----|---|----|

----

| o | Yes | o | No |
|---|-----|---|----|

| o Large accelerated filer |   | þ Accelerated filer    |
|---------------------------|--------|-----------------------------|
| o Non-accelerated filer   |   | o Smaller reporting Company |

| o | Yes | þ | No |
|---|-----|--------|----|

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | PAGE        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |
| Item 1.    Business                                                                                                                                                 | 5           |
| Item 1A. Risk Factors                                                                                                                                                                   | 11          |
| Item 1B. Unresolved Staff Comments                                                                                                                                                      | 22          |
| Item 2.    Properties                                                                                                                                               | 22          |
| Item 3.    Legal Proceedings                                                                                                                                        | 33          |
| Item 4.    (Removed and Reserved)                                                                                                                                   | 33          |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |        |
| Item 5.    Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 33          |
| Item 6.    Selected Financial Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 35          |
| Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 36          |
| Item 7A. Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 62          |
| Item 8.    Financial Statements and Supplementary Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 63          |
| Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 63          |
| Item 9A. Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 64          |
| Item 9B. Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 65          |
| PART III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |        |
| Item 10.  Trustees, Executive Officers and Corporate Governance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 65          |
| Item 11.  Executive Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 65          |
| Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 65          |
| Item 13.  Certain Relationships and Related Transactions, and Trustee Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 65          |
| Item 14.  Principal Accountant Fees and Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 65          |
| PART IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |        |
| Item 15.  Exhibits, Financial Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 66          |
| Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 66          |
| Signatures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 68          |
| Report of Independent Registered Public Accounting Firm and Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | F-1 to F-45 |

Index

----

|   | • | the economic health of the markets in which we own and operate multi-family and commercial properties, in particular the states of Minnesota and North Dakota, or other markets in which we may invest in the future; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the economic health of our commercial tenants; |
|--------|---------|------------------------------------------------|

|   | • | market rental conditions, including occupancy levels and rental rates, for multi-family residential and commercial properties; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to identify and secure additional multi-family residential and commercial properties that meet our criteria for investment; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to manage rapid growth in the number of our employees and internally–managed properties; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | the level and volatility of prevailing market interest rates and the pricing of our common shares of beneficial interest; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | • | financing risks, such as our inability to obtain debt or equity financing on favorable terms, or at all; |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | compliance with applicable laws, including those concerning the environment and access by persons with disabilities; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|

|   | • | the availability and cost of casualty insurance for losses. |
|--------|---------|-------------------------------------------------------------|

Index

----

|   | • | 78 multi-family residential properties, containing 8,661 apartment units and having a total real estate investment amount net of accumulated depreciation of $367.1 million; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 68 commercial office properties containing approximately 5.1 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $490.8 million; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 56 commercial medical properties (including senior housing) containing approximately 2.7 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $382.5 million; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 19 commercial industrial properties containing approximately 3.0 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $99.9 million; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 33 commercial retail properties containing approximately 1.4 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $101.5 million. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

Index

----

Index

----

|                             |   | (in thousands) |   |
|----------------------------------|--------|----------------|--------|
|                             |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| Limited partnership units issued |   |           | 555    |   |   |   | 390 |   |   |   | 362 |   |
| Value at issuance                |   | $              | 4,996  |   |   | $ | 3,897 |   |   | $ | 3,730 |   |

| Name                 | Age | Title                                                  |
|----------------------|-----|--------------------------------------------------------|
| Timothy P. Mihalick  | 52  | President and Chief Executive Officer                  |
| Thomas A. Wentz, Jr. | 45  | Senior Vice President and Chief Operating Officer      |
| Diane K. Bryantt     | 47  | Senior Vice President and Chief Financial Officer      |
| Michael A. Bosh      | 40  | Senior Vice President and General Counsel              |
| Charles A. Greenberg | 52  | Senior Vice President, Commercial Asset Management     |
| Ted E. Holmes        | 40  | Senior Vice President, Finance                         |
| Andrew Martin        | 38  | Senior Vice President, Residential Property Management |
| Thomas A. Wentz, Sr. | 75  | Senior Vice President and Chief Investment Officer     |

Index

----

Index

----

|   | • | a prior owner, operator or occupant of the properties we own or the properties we intend to acquire did not create a material environmental condition not known to us, which might have been revealed by more in-depth study of the properties; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | future uses or conditions (including, without limitation, changes in applicable environmental laws and regulations) will not result in the imposition of environmental liability upon us. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|   | • | downturns in national, regional and local economic conditions (particularly increases in unemployment); |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | • | competition from other commercial and multi-family residential properties; |
|--------|---------|----------------------------------------------------------------------------|

|   | • | local real estate market conditions, such as oversupply or reduction in demand for commercial and multi-family residential space; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in interest rates and availability of attractive financing; |
|--------|---------|---------------------------------------------------------------------|

|   | • | declines in the economic health and financial condition of our tenants and our ability to collect rents from our tenants; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | • | vacancies, changes in market rental rates and the need periodically to repair, renovate and re-lease space; |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | • | increased operating costs, including real estate taxes, state and local taxes, insurance expense, utilities, and security costs; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | • | significant expenditures associated with each investment, such as debt service payments, real estate taxes and insurance and maintenance costs, which are generally not reduced when circumstances cause a reduction in revenues from a property; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | weather conditions, civil disturbances, natural disasters, or terrorist acts or acts of war which may result in uninsured or underinsured losses;  and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | decreases in the underlying value of our real estate. |
|--------|---------|-------------------------------------------------------|

Index

----

|   | • | even if we enter into an acquisition agreement for a property, it is subject to customary closing conditions, including completion of due diligence investigations, and we may be unable to complete that acquisition after making a non-refundable deposit and incurring other acquisition-related costs; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we may be unable to obtain financing for acquisitions on favorable terms or at all; |
|--------|---------|-------------------------------------------------------------------------------------|

|   | • | acquired properties may fail to perform as expected; |
|--------|---------|------------------------------------------------------|

|   | • | the actual costs of repositioning or redeveloping acquired properties may be greater than our estimates; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | • | we may be unable quickly and efficiently to integrate new acquisitions into our existing operations. |
|--------|---------|------------------------------------------------------------------------------------------------------|

Index

----

Index

----

|   | • | the need to expand our management team and staff; |
|--------|---------|---------------------------------------------------|

|   | • | the need to enhance internal operating systems and controls; and |
|--------|---------|------------------------------------------------------------------|

|   | • | the ability to consistently achieve targeted returns on individual properties. |
|--------|---------|--------------------------------------------------------------------------------|

Index

----

|   | • | our cash flow will be insufficient to meet required payments of principal and interest; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | we will not be able to renew, refinance or repay our indebtedness when due; and |
|--------|---------|---------------------------------------------------------------------------------|

|   | • | the terms of any renewal or refinancing will be less favorable than the terms of our current indebtedness. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

|   | • | operating and financial results below expectations that cannot support the current distribution payment; |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | unanticipated costs or cash requirements; or |
|--------|---------|----------------------------------------------|

|   | • | a conclusion that the payment of distributions would cause us to breach the terms of certain agreements or contracts, such as financial ratio covenants in our debt financing documents. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|   | • | market perception of REITs in general; |
|--------|---------|----------------------------------------|

|   | • | market perception of REITs relative to other investment opportunities; |
|--------|---------|------------------------------------------------------------------------|

|   | • | market perception of our financial condition, performance, distributions and growth potential; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | prevailing interest rates; |
|--------|---------|----------------------------|

|   | • | general economic and business conditions; |
|--------|---------|-------------------------------------------|

|   | • | government action or regulation, including changes in the tax laws; and |
|--------|---------|-------------------------------------------------------------------------|

|   | • | relatively low trading volumes in securities of REITS. |
|--------|---------|--------------------------------------------------------|

Index

----

| Fiscal YearEnded April30,(in thousands) |   | Multi-FamilyResidentialGrossRevenue |   |   | %      |   |   | CommercialOfficeGrossRevenue |   |   | %      |   |   | CommercialMedicalGrossRevenue |   |   | %      |   |   | CommercialIndustrialGrossRevenue |   |   | %    |   |   | CommercialRetailGrossRevenue |   |   | %      |   |   | AllSegmentsGrossRevenue |   |
|-----------------------------------------|--------|-------------------------------------|--------|--------|--------|--------|--------|------------------------------|--------|--------|--------|--------|--------|-------------------------------|--------|--------|--------|--------|--------|----------------------------------|--------|--------|------|--------|--------|------------------------------|--------|--------|--------|--------|--------|-------------------------|--------|
| 2011                                    |   | $                                   | 66,838 |   |   |   | 28.2   | %                            |   | $      | 77,747 |   |   |                          | 32.8   | %      |   | $      | 66,048 |                             |   |   | 27.8 | %      |   | $                            | 13,165 |   |   |   | 5.5    | %                       |   | $ | 13,609 |   |   |   | 5.7 | % |   | $ | 237,407 |   |
| 2010                                    |   | $                                   | 65,478 |   |   |   | 28.3   | %                            |   | $      | 82,079 |   |   |                          | 35.4   | %      |   | $      | 57,439 |                             |   |   | 24.8 | %      |   | $                            | 13,095 |   |   |   | 5.7    | %                       |   | $ | 13,420 |   |   |   | 5.8 | % |   | $ | 231,511 |   |
| 2009                                    |   | $                                   | 65,632 |   |   |   | 28.7   | %                            |   | $      | 83,446 |   |   |                          | 36.5   | %      |   | $      | 52,547 |                             |   |   | 23.0 | %      |   | $                            | 12,488 |   |   |   | 5.5    | %                       |   | $ | 14,403 |   |   |   | 6.3 | % |   | $ | 228,516 |   |

|           |   | Average Effective Annual Rent per square foot or unit |   |
|----------------|--------|-------------------------------------------------------|--------|
| As of April 30 |   | Multi-familyResidential(1)                            |   |   | CommercialOffice(2) |   |   | CommercialMedical(2) |   |   | CommercialIndustrial(2) |   |   | CommercialRetail(2) |   |
| 2011           |   | $                                                     | 688    |   |   | $ | 13 |   |   | $ | 19 |   |   | $ | 4 |   |   | $ | 8 |   |
| 2010           |   | $                                                     | 680    |   |   | $ | 13 |   |   | $ | 18 |   |   | $ | 4 |   |   | $ | 9 |   |
| 2009           |   | $                                                     | 673    |   |   | $ | 13 |   |   | $ | 18 |   |   | $ | 4 |   |   | $ | 8 |   |
| 2008           |   | $                                                     | 654    |   |   | $ | 13 |   |   | $ | 18 |   |   | $ | 3 |   |   | $ | 9 |   |
| 2007           |   | $                                                     | 633    |   |   | $ | 14 |   |   | $ | 16 |   |   | $ | 4 |   |   | $ | 10 |   |

| (1)   | Monthly rent per unit, calculated as annualized rental revenue divided by the occupied units as of April 30. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (2)   | Monthly rental rate per square foot calculated as annualized contractual base rental income, net of free rent, divided by the leased square feet as of April 30. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Segments                   | Stabilized Properties       |   | All Properties              |
|----------------------------|-----------------------------|--------|-----------------------------|
|                       | Fiscal Year Ended April 30, |   | Fiscal Year Ended April 30, |
|                       | 2011                        | 2010   | 2009                        |   | 2011 | 2010 | 2009 |
| Multi - Family Residential | 92.8%                       | 89.7%  | 93.6%                       |   | 92.8% | 89.7% | 93.4% |
| Commercial Office          | 79.2%                       | 83.9%  | 87.4%                       |   | 79.7% | 83.4% | 87.5% |
| Commercial Medical         | 95.3%                       | 95.7%  | 95.6%                       |   | 96.0% | 95.1% | 95.0% |
| Commercial Industrial      | 89.8%                       | 90.6%  | 96.9%                       |   | 90.1% | 90.7% | 97.0% |
| Commercial Retail          | 82.6%                       | 82.8%  | 84.7%                       |   | 81.6% | 82.8% | 84.7% |

Index

----

| As of April 30,(in thousands) |   | 2011   |      |   | %      |   |   | 2010   |   |      | %         |   |   | 2009   |   |   | %         |   |
|-------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|-----------|-----------|--------|--------|--------|--------|--------|-----------|--------|
| Real estate investments       |   |   |      |   |   |   |   |   |   |      |      |   |   |   |   |   |      |   |
| Property owned                |   | $      | 1,770,798 |   |   |   |   |   | $      | 1,800,519 |      |   |   |   |   | $      | 1,729,585 |   |   |   |   |
| Less accumulated depreciation |   |   | (328,952  | )      |   |   |   |   |   | (308,626  | )         |   |   |   |   |   | (262,871  | )      |   |   |   |
|                          |   | $      | 1,441,846 |   |   |   | 98.9   | %      |   | $         | 1,491,893 |   |   |   | 99.4   | %      |      | $      | 1,466,714 |   |   |   | 99.6 | % |
| Development in progress       |   |   | 9,693     |   |   |   | 0.7    | %      |   |      | 2,831     |   |   |   | 0.2    | %      |      |   | 0 |   |   |   | 0.0 | % |
| Unimproved land               |   |   | 6,550     |   |   |   | 0.4    | %      |   |      | 6,007     |   |   |   | 0.4    | %      |      |   | 5,701 |   |   |   | 0.4 | % |
| Mortgage loans receivable     |   |   | 156       |   |   |   | 0.0    | %      |   |      | 158       |   |   |   | 0.0    | %      |      |   | 160 |   |   |   | 0.0 | % |
| Total real estate investments |   | $      | 1,458,245 |   |   |   | 100.0  | %      |   | $         | 1,500,889 |   |   |   | 100.0  | %      |      | $      | 1,472,575 |   |   |   | 100.0 | % |

| Property Name and Location                   |   | Units  |   |   | (in thousands) Investment (initial cost plus improvements) |   |   | Physical Occupancy as of April 30, 2011 |   |
|----------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                         |   |   |   |   |                                                                      |   |   |                                         |   |
| MULTI-FAMILY RESIDENTIAL                     |   |   |   |   |                                                                      |   |   |                                         |   |
| 11th Street 3 Plex - Minot, ND               |   |   | 3      |   |                                                                      | $      | 69     |                                         |   |   | 100.0 | % |
| 4th Street 4 Plex - Minot, ND                |   |   | 4      |   |                                                                      |   | 90     |                                         |   |   | 100.0 | % |
| Apartments on Main - Minot, ND               |   |   | 10     |   |                                                                      |   | 1,299  |                                         |   |   | 90.0 | % |
| Arbors - S Sioux City, NE                    |   |   | 192    |   |                                                                      |   | 7,916  |                                         |   |   | 75.5 | % |
| Boulder Court - Eagan, MN                    |   |   | 115    |   |                                                                      |   | 8,954  |                                         |   |   | 93.9 | % |
| Brookfield Village - Topeka, KS              |   |   | 160    |   |                                                                      |   | 8,274  |                                         |   |   | 98.8 | % |
| Brooklyn Heights - Minot, ND                 |   |   | 72     |   |                                                                      |   | 2,283  |                                         |   |   | 98.6 | % |
| Campus Center - St. Cloud, MN                |   |   | 92     |   |                                                                      |   | 2,754  |                                         |   |   | 96.7 | % |
| Campus Heights - St. Cloud, MN               |   |   | 49     |   |                                                                      |   | 770    |                                         |   |   | 53.1 | % |
| Campus Knoll - St. Cloud, MN                 |   |   | 71     |   |                                                                      |   | 1,836  |                                         |   |   | 91.5 | % |
| Campus Plaza - St. Cloud, MN                 |   |   | 24     |   |                                                                      |   | 391    |                                         |   |   | 100.0 | % |
| Campus Side - St. Cloud, MN                  |   |   | 48     |   |                                                                      |   | 784    |                                         |   |   | 83.3 | % |
| Campus View - St. Cloud, MN                  |   |   | 48     |   |                                                                      |   | 770    |                                         |   |   | 91.7 | % |
|                                         |   |   |   |   |                                                                      |   |   |                                         |   |   |
|  Index  2011 Annual Report24  |
| Property Name and Location                   |   | Units  |   |   | (in thousands) Investment (initial cost plus improvements) |   |   | Physical Occupancy as of April 30, 2011 |   |
|                                         |   |   |   |   |                                                                      |   |   |                                         |   |   |   |   |
| MULTI-FAMILY RESIDENTIAL - continued         |   |   |   |   |                                                                      |   |   |                                         |   |   |   |   |
| Candlelight - Fargo, ND                      |   |   | 66     |   |                                                                      | $      | 1,886  |                                         |   |   | 84.8 | % |
| Canyon Lake - Rapid City, SD                 |   |   | 109    |   |                                                                      |   | 4,838  |                                         |   |   | 98.2 | % |
| Castlerock - Billings, MT                    |   |   | 166    |   |                                                                      |   | 7,086  |                                         |   |   | 94.6 | % |
| Chateau - Minot, ND                          |   |   | 64     |   |                                                                      |   | 3,643  |                                         |   |   | 98.4 | % |
| Cimarron Hills - Omaha, NE                   |   |   | 234    |   |                                                                      |   | 14,026 |                                         |   |   | 78.2 | % |
| Colonial Villa - Burnsville, MN              |   |   | 240    |   |                                                                      |   | 16,715 |                                         |   |   | 80.0 | % |
| Colton Heights - Minot, ND                   |   |   | 18     |   |                                                                      |   | 1,074  |                                         |   |   | 94.4 | % |
| Cornerstone - St. Cloud, MN                  |   |   | 24     |   |                                                                      |   | 396    |                                         |   |   | 100.0 | % |
| Cottonwood - Bismarck, ND                    |   |   | 268    |   |                                                                      |   | 20,952 |                                         |   |   | 96.6 | % |
| Country Meadows - Billings, MT               |   |   | 133    |   |                                                                      |   | 9,263  |                                         |   |   | 96.2 | % |
| Crestview - Bismarck, ND                     |   |   | 152    |   |                                                                      |   | 5,417  |                                         |   |   | 99.3 | % |
| Crown - Rochester, MN                        |   |   | 48     |   |                                                                      |   | 3,590  |                                         |   |   | 97.9 | % |
| Crown Colony - Topeka, KS                    |   |   | 220    |   |                                                                      |   | 12,298 |                                         |   |   | 94.1 | % |
| East Park - Sioux Falls, SD                  |   |   | 84     |   |                                                                      |   | 3,125  |                                         |   |   | 90.5 | % |
| Evergreen - Isanti, MN                       |   |   | 36     |   |                                                                      |   | 3,158  |                                         |   |   | 100.0 | % |
| Fairmont - Minot, ND                         |   |   | 12     |   |                                                                      |   | 374    |                                         |   |   | 100.0 | % |
| Forest Park - Grand Forks, ND                |   |   | 269    |   |                                                                      |   | 12,036 |                                         |   |   | 96.7 | % |
| Greenfield - Omaha, NE                       |   |   | 96     |   |                                                                      |   | 5,101  |                                         |   |   | 99.0 | % |
| Heritage Manor - Rochester, MN               |   |   | 182    |   |                                                                      |   | 9,270  |                                         |   |   | 90.1 | % |
| Indian Hills - Sioux City, IA                |   |   | 120    |   |                                                                      |   | 5,901  |                                         |   |   | 92.5 | % |
| Kirkwood Manor - Bismarck, ND                |   |   | 108    |   |                                                                      |   | 4,428  |                                         |   |   | 88.9 | % |
| Lancaster - St. Cloud, MN                    |   |   | 83     |   |                                                                      |   | 3,961  |                                         |   |   | 89.2 | % |
| Landmark - Grand Forks, ND                   |   |   | 90     |   |                                                                      |   | 2,527  |                                         |   |   | 97.8 | % |
| Legacy - Grand Forks, ND                     |   |   | 358    |   |                                                                      |   | 28,257 |                                         |   |   | 98.0 | % |
| Mariposa - Topeka, KS                        |   |   | 54     |   |                                                                      |   | 5,819  |                                         |   |   | 96.3 | % |
| Monticello Village - Monticello, MN          |   |   | 60     |   |                                                                      |   | 4,601  |                                         |   |   | 93.3 | % |
| North Pointe - Bismarck, ND                  |   |   | 73     |   |                                                                      |   | 4,486  |                                         |   |   | 95.9 | % |
| Northern Valley - Rochester, MN              |   |   | 16     |   |                                                                      |   | 732    |                                         |   |   | 81.3 | % |
| Oakmont Estates - Sioux Falls, SD            |   |   | 80     |   |                                                                      |   | 5,594  |                                         |   |   | 98.8 | % |
| Oakwood Estates - Sioux Falls, SD            |   |   | 160    |   |                                                                      |   | 7,027  |                                         |   |   | 75.6 | % |
| Olympic Village - Billings, MT               |   |   | 274    |   |                                                                      |   | 13,400 |                                         |   |   | 98.2 | % |
| Olympik Village - Rochester, MN              |   |   | 140    |   |                                                                      |   | 8,274  |                                         |   |   | 95.0 | % |
| Oxbow Park - Sioux Falls, SD                 |   |   | 120    |   |                                                                      |   | 5,833  |                                         |   |   | 98.3 | % |
| Park Meadows - Waite Park, MN                |   |   | 360    |   |                                                                      |   | 14,422 |                                         |   |   | 90.6 | % |
| Pebble Springs - Bismarck, ND                |   |   | 16     |   |                                                                      |   | 847    |                                         |   |   | 93.8 | % |
| Pinehurst - Billings, MT                     |   |   | 21     |   |                                                                      |   | 872    |                                         |   |   | 100.0 | % |
| Pines - Minot, ND                            |   |   | 16     |   |                                                                      |   | 342    |                                         |   |   | 100.0 | % |
| Plaza - Minot, ND                            |   |   | 71     |   |                                                                      |   | 15,607 |                                         |   |   | 100.0 | % |
| Pointe West - Rapid City, SD                 |   |   | 90     |   |                                                                      |   | 4,917  |                                         |   |   | 100.0 | % |
| Prairie Winds - Sioux Falls, SD              |   |   | 48     |   |                                                                      |   | 2,351  |                                         |   |   | 95.8 | % |
| Prairiewood Meadows - Fargo, ND              |   |   | 85     |   |                                                                      |   | 3,735  |                                         |   |   | 95.3 | % |
| Quarry Ridge - Rochester, MN                 |   |   | 156    |   |                                                                      |   | 15,044 |                                         |   |   | 96.2 | % |
| Ridge Oaks - Sioux City, IA                  |   |   | 132    |   |                                                                      |   | 6,186  |                                         |   |   | 97.7 | % |
| Rimrock West - Billings, MT                  |   |   | 78     |   |                                                                      |   | 5,122  |                                         |   |   | 97.4 | % |
| Rocky Meadows - Billings, MT                 |   |   | 98     |   |                                                                      |   | 7,187  |                                         |   |   | 87.8 | % |
| Rum River - Isanti, MN                       |   |   | 72     |   |                                                                      |   | 5,706  |                                         |   |   | 98.6 | % |
| Sherwood - Topeka, KS                        |   |   | 300    |   |                                                                      |   | 18,164 |                                         |   |   | 96.3 | % |
| Sierra Vista - Sioux Falls, SD               |   |   | 44     |   |                                                                      |   | 2,344  |                                         |   |   | 88.6 | % |
| South Pointe - Minot, ND                     |   |   | 196    |   |                                                                      |   | 12,029 |                                         |   |   | 99.5 | % |
| Southview - Minot, ND                        |   |   | 24     |   |                                                                      |   | 920    |                                         |   |   | 91.7 | % |

Index

----

| Property Name and Location            |   | Units  |   |   | (in thousands) Investment (initial cost plus improvements) |   |    | Physical Occupancy as of April 30, 2011 |   |
|---------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------------|--------|---------|----------------------------------------------|--------|
|                                  |   |   |   |   |                                                                      |   |    |                                         |   |
| MULTI-FAMILY RESIDENTIAL - continued  |   |   |   |   |                                                                      |   |    |                                         |   |
| Southwind - Grand Forks, ND           |   |   | 164    |   |                                                                      | $      | 7,516   |                                         |   |   | 91.5 | % |
| Summit Park - Minot, ND               |   |   | 95     |   |                                                                      |   | 2,883   |                                         |   |   | 98.9 | % |
| Sunset Trail - Rochester, MN          |   |   | 146    |   |                                                                      |   | 15,195  |                                         |   |   | 92.5 | % |
| Sycamore Village - Sioux Falls, SD    |   |   | 48     |   |                                                                      |   | 1,842   |                                         |   |   | 79.2 | % |
| Temple - Minot, ND                    |   |   | 4      |   |                                                                      |   | 224     |                                         |   |   | 100.0 | % |
| Terrace Heights - Minot, ND           |   |   | 16     |   |                                                                      |   | 423     |                                         |   |   | 100.0 | % |
| Terrace On The Green - Moorhead, MN   |   |   | 116    |   |                                                                      |   | 3,343   |                                         |   |   | 87.1 | % |
| The Meadows - Jamestown, ND           |   |   | 81     |   |                                                                      |   | 6,144   |                                         |   |   | 97.5 | % |
| Thomasbrook - Lincoln, NE             |   |   | 264    |   |                                                                      |   | 13,599  |                                         |   |   | 98.1 | % |
| University Park Place - St. Cloud, MN |   |   | 35     |   |                                                                      |   | 563     |                                         |   |   | 88.6 | % |
| Valley Park - Grand Forks, ND         |   |   | 168    |   |                                                                      |   | 6,689   |                                         |   |   | 80.4 | % |
| Village Green - Rochester, MN         |   |   | 36     |   |                                                                      |   | 3,001   |                                         |   |   | 91.7 | % |
| West Stonehill - Waite Park, MN       |   |   | 313    |   |                                                                      |   | 15,158  |                                         |   |   | 93.9 | % |
| Westridge - Minot, ND                 |   |   | 33     |   |                                                                      |   | 1,990   |                                         |   |   | 100.0 | % |
| Westwood Park - Bismarck, ND          |   |   | 65     |   |                                                                      |   | 3,622   |                                         |   |   | 89.2 | % |
| Winchester - Rochester, MN            |   |   | 115    |   |                                                                      |   | 7,592   |                                         |   |   | 87.8 | % |
| Woodridge - Rochester, MN             |   |   | 110    |   |                                                                      |   | 7,958   |                                         |   |   | 93.6 | % |
| TOTAL MULTI-FAMILY RESIDENTIAL        |   |   | 8,661  |   |                                                                      | $      | 484,815 |                                         |   |   | 92.8 | % |

| Property Name and Location                      | Approximate Net Rentable Square Footage |   | (in thousands) Investment (initial cost plus improvements) |   | Physical Occupancy as of April 30, 2011 |   |
|-------------------------------------------------|---------------------------------------------------|--------|---------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                            |                                              |   |                                                                      |   |                                         |   |   |   |   |
| COMMERCIAL OFFICE                               |                                              |   |                                                                      |   |                                         |   |   |   |   |
| 1st Avenue Building - Minot, ND                 |                                              |   | 4,427                                                                     |   |                                         | $      | 73 |   |   |   | 100.0 | % |
| 2030 Cliff Road - Eagan, MN                     |                                              |   | 13,374                                                                    |   |                                         |   | 1,071 |   |   |   | 100.0 | % |
| 610 Business Center IV - Brooklyn Park, MN      |                                              |   | 78,190                                                                    |   |                                         |   | 9,403 |   |   |   | 100.0 | % |
| 7800 West Brown Deer Road - Milwaukee, WI       |                                              |   | 175,610                                                                   |   |                                         |   | 12,242 |   |   |   | 98.0 | % |
| American Corporate Center - Mendota Heights, MN |                                              |   | 138,959                                                                   |   |                                         |   | 21,177 |   |   |   | 94.2 | % |
| Ameritrade - Omaha, NE                          |                                              |   | 73,742                                                                    |   |                                         |   | 8,349 |   |   |   | 100.0 | % |
| Benton Business Park - Sauk Rapids, MN          |                                              |   | 30,464                                                                    |   |                                         |   | 1,527 |   |   |   | 88.1 | % |
| Bismarck 715 East Broadway - Bismarck, ND       |                                              |   | 22,187                                                                    |   |                                         |   | 2,751 |   |   |   | 100.0 | % |
| Bloomington Business Plaza - Bloomington, MN    |                                              |   | 121,064                                                                   |   |                                         |   | 8,155 |   |   |   | 47.5 | % |
| Brenwood - Minnetonka, MN                       |                                              |   | 176,800                                                                   |   |                                         |   | 17,090 |   |   |   | 62.4 | % |
| Brook Valley I - La Vista, NE                   |                                              |   | 30,000                                                                    |   |                                         |   | 2,099 |   |   |   | 50.1 | % |
| Burnsville Bluffs II - Burnsville, MN           |                                              |   | 45,019                                                                    |   |                                         |   | 3,357 |   |   |   | 100.0 | % |
| Cold Spring Center - St. Cloud, MN              |                                              |   | 77,634                                                                    |   |                                         |   | 9,303 |   |   |   | 96.4 | % |
| Corporate Center West - Omaha, NE               |                                              |   | 141,724                                                                   |   |                                         |   | 21,692 |   |   |   | 100.0 | % |
| Crosstown Centre - Eden Prairie, MN             |                                              |   | 181,224                                                                   |   |                                         |   | 18,688 |   |   |   | 51.8 | % |
| Dewey Hill Business Center - Edina, MN          |                                              |   | 73,338                                                                    |   |                                         |   | 5,413 |   |   |   | 35.7 | % |
| Farnam Executive Center - Omaha, NE             |                                              |   | 94,832                                                                    |   |                                         |   | 13,592 |   |   |   | 100.0 | % |
| Flagship - Eden Prairie, MN                     |                                              |   | 138,825                                                                   |   |                                         |   | 24,359 |   |   |   | 95.6 | % |
| Gateway Corporate Center - Woodbury, MN         |                                              |   | 59,827                                                                    |   |                                         |   | 9,490 |   |   |   | 0.0 | % |
| Golden Hills Office Center - Golden Valley, MN  |                                              |   | 190,758                                                                   |   |                                         |   | 24,767 |   |   |   | 92.3 | % |
| Great Plains - Fargo, ND                        |                                              |   | 122,040                                                                   |   |                                         |   | 15,376 |   |   |   | 100.0 | % |
| Highlands Ranch I - Highlands Ranch, CO         |                                              |   | 71,430                                                                    |   |                                         |   | 11,058 |   |   |   | 100.0 | % |
| Highlands Ranch II - Highlands Ranch, CO        |                                              |   | 81,173                                                                    |   |                                         |   | 11,982 |   |   |   | 57.7 | % |
| Interlachen Corporate Center - Edina, MN        |                                              |   | 105,084                                                                   |   |                                         |   | 17,598 |   |   |   | 35.7 | % |
| Intertech Building - Fenton, MO                 |                                              |   | 64,749                                                                    |   |                                         |   | 6,173 |   |   |   | 88.0 | % |
| IRET Corporate Plaza - Minot, ND                |                                              |   | 50,610                                                                    |   |                                         |   | 9,266 |   |   |   | 100.0 | % |
| Index2011 Annual Report26                  |
| Property Name and Location                      | Approximate Net Rentable Square Footage |   | (in thousands) Investment (initial cost plus improvements) |   | Physical Occupancy as of April 30, 2011 |   |
|                                            |                                              |   |                                                                      |   |                                         |   |   |   |   |   |   |   |
| COMMERCIAL OFFICE - continued                   |                                              |   |                                                                      |   |                                         |   |   |   |   |   |   |   |
| Mendota Office Center I - Mendota Heights, MN   |                                              |   | 59,852                                                                    |   |                                         | $      | 7,371 |   |   |   | 94.1 | % |
| Mendota Office Center II - Mendota Heights, MN  |                                              |   | 88,398                                                                    |   |                                         |   | 12,667 |   |   |   | 85.1 | % |
| Mendota Office Center III - Mendota Heights, MN |                                              |   | 60,776                                                                    |   |                                         |   | 6,957 |   |   |   | 65.3 | % |
| Mendota Office Center IV - Mendota Heights, MN  |                                              |   | 72,231                                                                    |   |                                         |   | 9,283 |   |   |   | 100.0 | % |
| Minnesota National Bank - Duluth, MN            |                                              |   | 18,869                                                                    |   |                                         |   | 1,745 |   |   |   | 47.7 | % |
| Minot 2505 16th Street SW - Minot, ND           |                                              |   | 15,000                                                                    |   |                                         |   | 2,022 |   |   |   | 100.0 | % |
| Miracle Hills One - Omaha, NE                   |                                              |   | 83,448                                                                    |   |                                         |   | 13,349 |   |   |   | 94.9 | % |
| Nicollett VII - Burnsville, MN                  |                                              |   | 118,125                                                                   |   |                                         |   | 7,500 |   |   |   | 60.9 | % |
| Northgate I - Maple Grove, MN                   |                                              |   | 79,297                                                                    |   |                                         |   | 8,252 |   |   |   | 100.0 | % |
| Northgate II - Maple Grove, MN                  |                                              |   | 26,000                                                                    |   |                                         |   | 2,447 |   |   |   | 100.0 | % |
| Northpark Corporate Center - Arden Hills, MN    |                                              |   | 146,087                                                                   |   |                                         |   | 17,722 |   |   |   | 26.6 | % |
| Omaha 10802 Farnam Dr - Omaha, NE               |                                              |   | 58,574                                                                    |   |                                         |   | 6,836 |   |   |   | 98.6 | % |
| Pacific Hills - Omaha, NE                       |                                              |   | 143,075                                                                   |   |                                         |   | 17,457 |   |   |   | 79.3 | % |
| Pillsbury Business Center - Bloomington, MN     |                                              |   | 42,929                                                                    |   |                                         |   | 1,960 |   |   |   | 52.4 | % |
| Plaza VII - Boise, ID                           |                                              |   | 28,994                                                                    |   |                                         |   | 3,772 |   |   |   | 32.9 | % |
| Plymouth 5095 Nathan Lane - Plymouth, MN        |                                              |   | 20,528                                                                    |   |                                         |   | 1,897 |   |   |   | 100.0 | % |
| Plymouth I - Plymouth, MN                       |                                              |   | 26,186                                                                    |   |                                         |   | 1,690 |   |   |   | 100.0 | % |
| Plymouth II - Plymouth, MN                      |                                              |   | 26,186                                                                    |   |                                         |   | 1,672 |   |   |   | 100.0 | % |
| Plymouth III - Plymouth, MN                     |                                              |   | 26,186                                                                    |   |                                         |   | 2,352 |   |   |   | 100.0 | % |
| Plymouth IV & V - Plymouth, MN              |                                              |   | 126,930                                                                   |   |                                         |   | 15,346 |   |   |   | 92.1 | % |
| Prairie Oak Business Center - Eden Prairie, MN  |                                              |   | 36,421                                                                    |   |                                         |   | 6,068 |   |   |   | 75.8 | % |
| Rapid City 900 Concourse Drive - Rapid City, SD |                                              |   | 75,815                                                                    |   |                                         |   | 7,161 |   |   |   | 100.0 | % |
| Riverport - Maryland Heights, MO                |                                              |   | 122,567                                                                   |   |                                         |   | 20,899 |   |   |   | 100.0 | % |
| Southeast Tech Center - Eagan, MN               |                                              |   | 58,300                                                                    |   |                                         |   | 6,408 |   |   |   | 30.4 | % |
| Spring Valley IV - Omaha, NE                    |                                              |   | 15,700                                                                    |   |                                         |   | 1,154 |   |   |   | 100.0 | % |
| Spring Valley V - Omaha, NE                     |                                              |   | 24,171                                                                    |   |                                         |   | 1,586 |   |   |   | 100.0 | % |
| Spring Valley X - Omaha, NE                     |                                              |   | 24,000                                                                    |   |                                         |   | 1,236 |   |   |   | 70.0 | % |
| Spring Valley XI - Omaha, NE                    |                                              |   | 24,000                                                                    |   |                                         |   | 1,272 |   |   |   | 100.0 | % |
| Superior Office Building - Duluth, MN           |                                              |   | 20,000                                                                    |   |                                         |   | 2,538 |   |   |   | 100.0 | % |
| TCA Building - Eagan, MN                        |                                              |   | 103,640                                                                   |   |                                         |   | 10,005 |   |   |   | 85.2 | % |
| Three Paramount Plaza - Bloomington, MN         |                                              |   | 75,526                                                                    |   |                                         |   | 9,235 |   |   |   | 73.3 | % |
| Thresher Square - Minneapolis, MN               |                                              |   | 117,144                                                                   |   |                                         |   | 12,798 |   |   |   | 36.2 | % |
| Timberlands - Leawood, KS                       |                                              |   | 90,388                                                                    |   |                                         |   | 15,252 |   |   |   | 65.1 | % |
| UHC Office - International Falls, MN            |                                              |   | 30,000                                                                    |   |                                         |   | 2,565 |   |   |   | 100.0 | % |
| US Bank Financial Center - Bloomington, MN      |                                              |   | 153,311                                                                   |   |                                         |   | 17,047 |   |   |   | 92.6 | % |
| Viromed - Eden Prairie, MN                      |                                              |   | 48,700                                                                    |   |                                         |   | 4,864 |   |   |   | 100.0 | % |
| Wells Fargo Center - St Cloud, MN               |                                              |   | 86,192                                                                    |   |                                         |   | 10,325 |   |   |   | 96.0 | % |
| West River Business Park - Waite Park, MN       |                                              |   | 24,075                                                                    |   |                                         |   | 1,477 |   |   |   | 69.2 | % |
| Westgate - Boise, ID                            |                                              |   | 103,342                                                                   |   |                                         |   | 13,529 |   |   |   | 100.0 | % |
| Whitewater Plaza - Minnetonka, MN               |                                              |   | 61,138                                                                    |   |                                         |   | 6,106 |   |   |   | 69.4 | % |
| Wirth Corporate Center - Golden Valley, MN      |                                              |   | 74,568                                                                    |   |                                         |   | 9,497 |   |   |   | 97.3 | % |
| Woodlands Plaza IV - Maryland Heights, MO       |                                              |   | 61,820                                                                    |   |                                         |   | 6,121 |   |   |   | 80.5 | % |
| TOTAL COMMERCIAL OFFICE                         |                                              |   | 5,061,573                                                                 |   |                                         | $      | 595,491 |   |   |   | 79.7 | % |

Index

----

| Property Name and Location                                         |   | Approximate Net Rentable Square Footage |    |   | (in thousands) Investment (initial cost plus improvements) |   |   | Physical Occupancy as of April 30, 2011 |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------|---------|--------|---------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                               |   |                                              |    |   |                                                                      |   |   |                                         |   |
| COMMERCIAL MEDICAL                                                 |   |                                              |    |   |                                                                      |   |   |                                         |   |
| 2800 Medical Building - Minneapolis, MN                            |   |                                              | 53,750  |   |                                                                      | $      | 9,488  |                                         |   |   | 94.2 | % |
| 2828 Chicago Avenue - Minneapolis, MN                              |   |                                              | 56,239  |   |                                                                      |   | 17,673 |                                         |   |   | 100.0 | % |
| Airport Medical - Bloomington, MN*                                 |   |                                              | 24,218  |   |                                                                      |   | 4,678  |                                         |   |   | 100.0 | % |
| Barry Pointe Office Park - Kansas City, MO                         |   |                                              | 18,502  |   |                                                                      |   | 2,854  |                                         |   |   | 92.6 | % |
| Billings 2300 Grant Road - Billings, MT                            |   |                                              | 14,705  |   |                                                                      |   | 1,865  |                                         |   |   | 100.0 | % |
| Burnsville 303 Nicollet Medical (Ridgeview) - Burnsville, MN       |   |                                              | 53,646  |   |                                                                      |   | 8,636  |                                         |   |   | 83.9 | % |
| Burnsville 305 Nicollet Medical (Ridgeview South) - Burnsville, MN |   |                                              | 36,199  |   |                                                                      |   | 5,866  |                                         |   |   | 100.0 | % |
| Casper 1930 E 12th Street (Park Place) - Casper, WY                |   |                                              | 65,160  |   |                                                                      |   | 6,172  |                                         |   |   | 100.0 | % |
| Casper 3955 E 12th Street (Meadow Wind) - Casper, WY               |   |                                              | 35,629  |   |                                                                      |   | 6,217  |                                         |   |   | 100.0 | % |
| Cheyenne 4010 N College Drive (Aspen Wind) - Cheyenne, WY          |   |                                              | 47,509  |   |                                                                      |   | 10,495 |                                         |   |   | 100.0 | % |
| Cheyenne 4606 N College Drive (Sierra Hills) - Cheyenne, WY        |   |                                              | 54,072  |   |                                                                      |   | 8,150  |                                         |   |   | 100.0 | % |
| Denfeld Clinic - Duluth, MN                                        |   |                                              | 20,512  |   |                                                                      |   | 3,099  |                                         |   |   | 100.0 | % |
| Eagan 1440 Duckwood Medical - Eagan, MN                            |   |                                              | 17,640  |   |                                                                      |   | 2,587  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Belgrade, MT                                      |   |                                              | 5,192   |   |                                                                      |   | 814    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Billings, MT                                      |   |                                              | 11,800  |   |                                                                      |   | 1,882  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Bismarck, ND                                      |   |                                              | 74,112  |   |                                                                      |   | 9,740  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Brainerd, MN                                      |   |                                              | 82,535  |   |                                                                      |   | 9,620  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Columbus, NE                                      |   |                                              | 5,194   |   |                                                                      |   | 867    |                                         |   |   | 100.0 | % |
| Edgewood Vista - East Grand Forks, MN                              |   |                                              | 18,488  |   |                                                                      |   | 1,642  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Fargo, ND                                         |   |                                              | 167,391 |   |                                                                      |   | 21,645 |                                         |   |   | 100.0 | % |
| Edgewood Vista - Fremont, NE                                       |   |                                              | 6,042   |   |                                                                      |   | 588    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Grand Island, NE                                  |   |                                              | 5,185   |   |                                                                      |   | 806    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Hastings, NE                                      |   |                                              | 6,042   |   |                                                                      |   | 607    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Hermantown I, MN                                  |   |                                              | 119,349 |   |                                                                      |   | 11,660 |                                         |   |   | 100.0 | % |
| Edgewood Vista - Hermantown II, MN                                 |   |                                              | 160,485 |   |                                                                      |   | 11,269 |                                         |   |   | 100.0 | % |
| Edgewood Vista - Kalispell, MT                                     |   |                                              | 5,895   |   |                                                                      |   | 624    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Minot, ND                                         |   |                                              | 108,503 |   |                                                                      |   | 12,636 |                                         |   |   | 100.0 | % |
| Edgewood Vista - Missoula, MT                                      |   |                                              | 10,150  |   |                                                                      |   | 999    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Norfolk, NE                                       |   |                                              | 5,135   |   |                                                                      |   | 764    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Omaha, NE                                         |   |                                              | 6,042   |   |                                                                      |   | 676    |                                         |   |   | 100.0 | % |
| Edgewood Vista - Sioux Falls, SD                                   |   |                                              | 11,800  |   |                                                                      |   | 1,288  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Spearfish, SD                                     |   |                                              | 84,126  |   |                                                                      |   | 8,934  |                                         |   |   | 100.0 | % |
| Edgewood Vista - Virginia, MN                                      |   |                                              | 147,183 |   |                                                                      |   | 12,145 |                                         |   |   | 100.0 | % |
| Edina 6363 France Medical - Edina, MN*                             |   |                                              | 70,934  |   |                                                                      |   | 12,695 |                                         |   |   | 50.6 | % |
| Edina 6405 France Medical  - Edina, MN*                  |   |                                              | 55,478  |   |                                                                      |   | 12,201 |                                         |   |   | 100.0 | % |
| Edina 6517 Drew Avenue - Edina, MN                                 |   |                                              | 12,140  |   |                                                                      |   | 1,537  |                                         |   |   | 100.0 | % |
| Edina 6525 France SMC II - Edina, MN                               |   |                                              | 67,409  |   |                                                                      |   | 14,754 |                                         |   |   | 100.0 | % |
| Edina 6545 France SMC I - Edina MN*                                |   |                                              | 227,626 |   |                                                                      |   | 45,243 |                                         |   |   | 92.3 | % |
| Fresenius - Duluth, MN                                             |   |                                              | 9,052   |   |                                                                      |   | 1,572  |                                         |   |   | 100.0 | % |
| Garden View - St. Paul, MN*                                        |   |                                              | 43,404  |   |                                                                      |   | 7,892  |                                         |   |   | 100.0 | % |
| Gateway Clinic - Sandstone, MN*                                    |   |                                              | 12,444  |   |                                                                      |   | 1,766  |                                         |   |   | 100.0 | % |
| Healtheast St John & Woodwinds - Maplewood & Woodbury, MN  |   |                                              | 114,316 |   |                                                                      |   | 21,601 |                                         |   |   | 100.0 | % |
| High Pointe Health Campus - Lake Elmo, MN                          |   |                                              | 60,294  |   |                                                                      |   | 13,211 |                                         |   |   | 70.5 | % |
| Laramie 1072 N 22nd Street (Spring Wind) - Laramie, WY             |   |                                              | 35,629  |   |                                                                      |   | 7,038  |                                         |   |   | 100.0 | % |

Index

----

| Property Name and Location                             |   | Approximate Net Rentable Square Footage |      |   | (in thousands) Investment (initial cost plus improvements) |   |    | Physical Occupancy as of April 30, 2011 |   |
|--------------------------------------------------------|--------|---------------------------------------------------|-----------|--------|---------------------------------------------------------------------------|--------|---------|----------------------------------------------|--------|
|                                                   |   |                                              |      |   |                                                                      |   |    |                                         |   |
| COMMERCIAL MEDICAL – continued                   |   |                                              |      |   |                                                                      |   |    |                                         |   |
| Mariner Clinic - Superior, WI*                         |   |                                              | 28,928    |   |                                                                      | $      | 3,802   |                                         |   |   | 100.0 | % |
| Minneapolis 701 25th Avenue Medical - Minneapolis, MN* |   |                                              | 57,212    |   |                                                                      |   | 7,873   |                                         |   |   | 96.6 | % |
| Missoula 3050 Great Northern - Missoula, MT            |   |                                              | 14,640    |   |                                                                      |   | 1,971   |                                         |   |   | 100.0 | % |
| Nebraska Orthopedic Hospital - Omaha, NE*              |   |                                              | 61,758    |   |                                                                      |   | 21,798  |                                         |   |   | 100.0 | % |
| Park Dental - Brooklyn Center, MN                      |   |                                              | 9,998     |   |                                                                      |   | 2,952   |                                         |   |   | 100.0 | % |
| Pavilion I - Duluth, MN*                               |   |                                              | 45,081    |   |                                                                      |   | 10,174  |                                         |   |   | 100.0 | % |
| Pavilion II - Duluth, MN                               |   |                                              | 73,000    |   |                                                                      |   | 19,327  |                                         |   |   | 100.0 | % |
| Ritchie Medical Plaza - St Paul, MN                    |   |                                              | 52,116    |   |                                                                      |   | 10,409  |                                         |   |   | 58.1 | % |
| Sartell 2000 23rd Street South - Sartell, MN*          |   |                                              | 59,760    |   |                                                                      |   | 12,693  |                                         |   |   | 95.7 | % |
| St Michael Clinic - St Michael, MN                     |   |                                              | 10,796    |   |                                                                      |   | 2,851   |                                         |   |   | 100.0 | % |
| Stevens Point - Stevens Point, WI                      |   |                                              | 47,950    |   |                                                                      |   | 14,825  |                                         |   |   | 100.0 | % |
| Wells Clinic - Hibbing, MN                             |   |                                              | 18,810    |   |                                                                      |   | 2,660   |                                         |   |   | 100.0 | % |
| TOTAL COMMERCIAL MEDICAL                               |   |                                              | 2,727,205 |   |                                                                      | $      | 447,831 |                                         |   |   | 96.0 | % |

| Property Name and Location                          |   | Approximate Net Rentable Square Footage |      |   | (in thousands) Investment (initial cost plus improvements) |   |    | Physical Occupancy as of April 30, 2011 |   |
|-----------------------------------------------------|--------|---------------------------------------------------|-----------|--------|---------------------------------------------------------------------------|--------|---------|----------------------------------------------|--------|
|                                                |   |                                              |      |   |                                                                      |   |    |                                         |   |
| COMMERCIAL INDUSTRIAL                               |   |                                              |      |   |                                                                      |   |    |                                         |   |
| API Building - Duluth, MN                           |   |                                              | 35,000    |   |                                                                      | $      | 1,723   |                                         |   |   | 100.0 | % |
| Bloomington 2000 W 94th Street - Bloomington, MN    |   |                                              | 100,850   |   |                                                                      |   | 7,223   |                                         |   |   | 100.0 | % |
| Bodycote Industrial Building - Eden Prairie, MN     |   |                                              | 41,880    |   |                                                                      |   | 2,152   |                                         |   |   | 100.0 | % |
| Brooklyn Park 7401 Boone Avenue - Brooklyn Park, MN |   |                                              | 357,111   |   |                                                                      |   | 14,791  |                                         |   |   | 77.5 | % |
| Cedar Lake Business Center - St. Louis Park, MN     |   |                                              | 50,400    |   |                                                                      |   | 3,755   |                                         |   |   | 95.2 | % |
| Clive 2075 NW 94th Street - Clive, IA               |   |                                              | 42,510    |   |                                                                      |   | 3,067   |                                         |   |   | 100.0 | % |
| Dixon Avenue Industrial Park - Des Moines, IA       |   |                                              | 604,886   |   |                                                                      |   | 13,299  |                                         |   |   | 79.7 | % |
| Eagan 2785 & 2795 Highway 55 - Eagan, MN        |   |                                              | 198,600   |   |                                                                      |   | 5,628   |                                         |   |   | 74.3 | % |
| Fargo 1320 45th Street N - Fargo, ND                |   |                                              | 42,244    |   |                                                                      |   | 4,159   |                                         |   |   | 100.0 | % |
| Lexington Commerce Center - Eagan, MN               |   |                                              | 90,260    |   |                                                                      |   | 6,638   |                                         |   |   | 79.2 | % |
| Lighthouse - Duluth, MN                             |   |                                              | 59,292    |   |                                                                      |   | 1,885   |                                         |   |   | 84.6 | % |
| Metal Improvement Company - New Brighton, MN        |   |                                              | 49,620    |   |                                                                      |   | 2,507   |                                         |   |   | 100.0 | % |
| Minnetonka 13600 County Road 62 - Minnetonka, MN    |   |                                              | 69,984    |   |                                                                      |   | 3,702   |                                         |   |   | 100.0 | % |
| Roseville 2929 Long Lake Road - Roseville, MN       |   |                                              | 172,057   |   |                                                                      |   | 10,721  |                                         |   |   | 100.0 | % |
| Stone Container - Fargo, ND                         |   |                                              | 195,075   |   |                                                                      |   | 7,141   |                                         |   |   | 100.0 | % |
| Stone Container - Roseville, MN                     |   |                                              | 229,072   |   |                                                                      |   | 8,282   |                                         |   |   | 100.0 | % |
| Urbandale 3900 106th Street - Urbandale, IA         |   |                                              | 528,353   |   |                                                                      |   | 14,262  |                                         |   |   | 98.1 | % |
| Winsted Industrial Building - Winsted, MN           |   |                                              | 41,685    |   |                                                                      |   | 1,049   |                                         |   |   | 100.0 | % |
| Woodbury 1865 Woodlane - Woodbury, MN               |   |                                              | 69,600    |   |                                                                      |   | 5,618   |                                         |   |   | 100.0 | % |
| TOTAL COMMERCIAL INDUSTRIAL                         |   |                                              | 2,978,479 |   |                                                                      | $      | 117,602 |                                         |   |   | 90.1 | % |

Index

----

| Property Name and Location                    |   | Approximate Net Rentable Square Footage |      |   | (in thousands) Investment (initial cost plus improvements) |   |      | Physical Occupancy as of April 30, 2011 |   |
|-----------------------------------------------|--------|---------------------------------------------------|-----------|--------|---------------------------------------------------------------------------|--------|-----------|----------------------------------------------|--------|
|                                          |   |                                              |      |   |                                                                      |   |      |                                         |   |
| COMMERCIAL RETAIL                             |   |                                              |      |   |                                                                      |   |      |                                         |   |
| 17 South Main - Minot, ND                     |   |                                              | 2,454     |   |                                                                      | $      | 287       |                                         |   |   | 100.0 | % |
| Anoka Strip Center - Anoka, MN                |   |                                              | 10,625    |   |                                                                      |   | 750       |                                         |   |   | 37.6 | % |
| Burnsville 1 Strip Center - Burnsville, MN    |   |                                              | 8,526     |   |                                                                      |   | 1,189     |                                         |   |   | 100.0 | % |
| Burnsville 2 Strip Center - Burnsville, MN    |   |                                              | 8,400     |   |                                                                      |   | 974       |                                         |   |   | 62.5 | % |
| Champlin South Pond - Champlin, MN            |   |                                              | 26,020    |   |                                                                      |   | 3,593     |                                         |   |   | 77.2 | % |
| Chan West Village - Chanhassen, MN            |   |                                              | 137,572   |   |                                                                      |   | 21,434    |                                         |   |   | 93.3 | % |
| Dakota West Plaza - Minot , ND                |   |                                              | 16,921    |   |                                                                      |   | 613       |                                         |   |   | 94.9 | % |
| Duluth Denfeld Retail - Duluth, MN            |   |                                              | 37,770    |   |                                                                      |   | 5,037     |                                         |   |   | 69.2 | % |
| Duluth NAPA - Duluth, MN                      |   |                                              | 15,582    |   |                                                                      |   | 1,934     |                                         |   |   | 100.0 | % |
| Eagan Community - Eagan, MN                   |   |                                              | 23,187    |   |                                                                      |   | 3,148     |                                         |   |   | 82.5 | % |
| East Grand Station - East Grand Forks, MN     |   |                                              | 12,556    |   |                                                                      |   | 1,699     |                                         |   |   | 61.6 | % |
| Fargo Express Community - Fargo, ND           |   |                                              | 34,226    |   |                                                                      |   | 1,920     |                                         |   |   | 88.3 | % |
| Forest Lake Auto - Forest Lake, MN            |   |                                              | 6,836     |   |                                                                      |   | 509       |                                         |   |   | 100.0 | % |
| Forest Lake Westlake Center - Forest Lake, MN |   |                                              | 100,570   |   |                                                                      |   | 8,208     |                                         |   |   | 100.0 | % |
| Grand Forks Carmike - Grand Forks, ND         |   |                                              | 28,528    |   |                                                                      |   | 2,546     |                                         |   |   | 100.0 | % |
| Grand Forks Medpark Mall - Grand Forks, ND    |   |                                              | 59,117    |   |                                                                      |   | 5,707     |                                         |   |   | 92.8 | % |
| Jamestown Buffalo Mall - Jamestown, ND        |   |                                              | 213,271   |   |                                                                      |   | 6,232     |                                         |   |   | 82.9 | % |
| Jamestown Business Center - Jamestown, ND     |   |                                              | 100,249   |   |                                                                      |   | 2,632     |                                         |   |   | 88.9 | % |
| Kalispell Retail Center - Kalispell, MT       |   |                                              | 52,000    |   |                                                                      |   | 3,472     |                                         |   |   | 100.0 | % |
| Kentwood Thomasville Furniture - Kentwood, MI |   |                                              | 16,080    |   |                                                                      |   | 1,416     |                                         |   |   | 0.0 | % |
| Lakeville Strip Center - Lakeville, MN        |   |                                              | 9,488     |   |                                                                      |   | 2,015     |                                         |   |   | 87.4 | % |
| Livingston Pamida - Livingston, MT            |   |                                              | 41,200    |   |                                                                      |   | 1,800     |                                         |   |   | 100.0 | % |
| Minot 1400 31st Ave - Minot, ND               |   |                                              | 47,709    |   |                                                                      |   | 7,444     |                                         |   |   | 53.5 | % |
| Minot Arrowhead - Minot, ND                   |   |                                              | 78,095    |   |                                                                      |   | 7,179     |                                         |   |   | 100.0 | % |
| Minot Plaza - Minot, ND                       |   |                                              | 10,843    |   |                                                                      |   | 632       |                                         |   |   | 79.2 | % |
| Monticello C Store - Monticello, MN           |   |                                              | 3,575     |   |                                                                      |   | 872       |                                         |   |   | 100.0 | % |
| Omaha Barnes & Noble - Omaha, NE          |   |                                              | 26,985    |   |                                                                      |   | 3,699     |                                         |   |   | 100.0 | % |
| Pine City C-Store - Pine City, MN             |   |                                              | 4,800     |   |                                                                      |   | 452       |                                         |   |   | 100.0 | % |
| Pine City Evergreen Square - Pine City, MN    |   |                                              | 63,225    |   |                                                                      |   | 3,382     |                                         |   |   | 75.2 | % |
| Rochester Maplewood Square - Rochester, MN    |   |                                              | 118,398   |   |                                                                      |   | 12,761    |                                         |   |   | 67.6 | % |
| St. Cloud Westgate - St. Cloud, MN            |   |                                              | 104,928   |   |                                                                      |   | 7,386     |                                         |   |   | 57.4 | % |
| Weston Retail - Weston, WI                    |   |                                              | 25,644    |   |                                                                      |   | 1,681     |                                         |   |   | 0.0 | % |
| Weston Walgreens - Weston, WI                 |   |                                              | 14,820    |   |                                                                      |   | 2,456     |                                         |   |   | 100.0 | % |
| TOTAL COMMERCIAL RETAIL                       |   |                                              | 1,460,200 |   |                                                                      | $      | 125,059   |                                         |   |   | 81.6 | % |
| SUBTOTAL                                      |   |                                              |      |   |                                                                      | $      | 1,770,798 |                                         |   |   |   |   |

Index

----

| Property Name and Location                          |       |   | (in thousands) Investment (initial cost plus improvements) |
|-----------------------------------------------------|------------|--------|---------------------------------------------------------------------------|
|                                                |       |   |                                                                      |
| UNIMPROVED LAND                                     |       |   |                                                                      |
| Bismarck 2130 S 12th St - Bismarck, ND              |       |   | $                                                                         | 589 |   |   |
| Bismarck 700 E Main - Bismarck, ND                  |       |   |                                                                      | 870 |   |   |
| Eagan Unimproved Land - Eagan, MN                   |       |   |                                                                      | 423 |   |   |
| Georgetown Square Unimproved Land - Grand Chute, WI |       |   |                                                                      | 1,860 |   |   |
| IRET Corporate Plaza Retention Pond - Minot, ND     |       |   |                                                                      | 162 |   |   |
| Kalispell Unimproved Land - Kalispell, MT           |       |   |                                                                      | 1,423 |   |   |
| Monticello Unimproved Land - Monticello, MN         |       |   |                                                                      | 117 |   |   |
| River Falls Unimproved Land - River Falls, WI       |       |   |                                                                      | 181 |   |   |
| Urbandale Unimproved Land - Urbandale, IA           |       |   |                                                                      | 113 |   |   |
| Weston Unimproved Land - Weston, WI                 |       |   |                                                                      | 812 |   |   |
| TOTAL UNIMPROVED LAND                               |       |   | $                                                                         | 6,550 |   |   |
|                                                |       |   |                                                                      |   |   |   |
| DEVELOPMENT IN PROGRESS                             |       |   |                                                                      |   |   |   |
| 1st Avenue Building - Minot, ND                     |       |   | $                                                                         | 280 |   |   |
| Jamestown Buffalo Mall Theater - Jamestown, ND      |       |   |                                                                      | 1,533 |   |   |
| Georgetown Square Development - Grand Chute, WI     |       |   |                                                                      | 1,775 |   |   |
| IRET Corporate Plaza 2 - Minot, ND                  |       |   |                                                                      | 4,751 |   |   |
| Quarry Ridge 2 - Rochester, MN                      |       |   |                                                                      | 1,354 |   |   |
| TOTAL DEVELOPMENT IN PROGRESS                       |       |   | $                                                                         | 9,693 |   |   |
|                                                |       |   |                                                                      |   |   |   |
| TOTAL UNITS – RESIDENTIAL SEGMENT             | 8,661      |   |                                                                      |   |   |   |
| TOTAL SQUARE FOOTAGE – COMMERCIAL SEGMENTS    | 12,227,457 |   |                                                                      |   |   |   |
| TOTAL INVESTMENTS                                   |       |   |                                                                      |   |   | $1,787,041 |

|                 |   | (in thousands)     |    |
|----------------------|--------|--------------------|---------|
| Year Ended April 30, |   | Mortgage Principal |    |
| 2012                 |   | $                  | 58,741  |   |
| 2013                 |   |               | 50,092  |   |
| 2014                 |   |               | 65,354  |   |
| 2015                 |   |               | 92,548  |   |
| 2016                 |   |               | 77,771  |   |
| Thereafter           |   |               | 649,297 |   |
| Total                |   | $                  | 993,803 |   |

Index

----

|                 |   | (in thousands) |    |
|----------------------|--------|----------------|---------|
| Year Ended April 30, |   | Lease Payments |    |
| 2012                 |   | $              | 111,017 |   |
| 2013                 |   |           | 100,265 |   |
| 2014                 |   |           | 88,497  |   |
| 2015                 |   |           | 75,722  |   |
| 2016                 |   |           | 64,316  |   |
| Thereafter           |   |           | 302,096 |   |
| Total                |   | $              | 741,913 |   |

|                                                              |   | (in thousands)  |    |
|-------------------------------------------------------------------|--------|-----------------|---------|
|                                                              |   |            |    |   | Gross Rental Revenue |   |
| Property                                                          |   | Investment Cost |    |   | 2011 |   |   | 2010 |   |   | 2009 |   |
| Billings 2300 Grant Road - Billings, MT                           |   | $               | 2,522   |   |   | $ | 226 |   |   | $ | 0 |   |   | $ | 0 |   |
| Edgewood Vista-Belgrade, MT                                       |   |            | 2,135   |   |   |   | 191 |   |   |   | 196 |   |   |   | 196 |   |
| Edgewood Vista-Billings, MT                                       |   |            | 4,274   |   |   |   | 384 |   |   |   | 396 |   |   |   | 396 |   |
| Edgewood Vista-Bismarck, ND                                       |   |            | 10,903  |   |   |   | 1,031 |   |   |   | 1,008 |   |   |   | 1,008 |   |
| Edgewood Vista-Brainerd, MN                                       |   |            | 10,667  |   |   |   | 1,010 |   |   |   | 988 |   |   |   | 988 |   |
| Edgewood Vista-Columbus, NE                                       |   |            | 1,481   |   |   |   | 131 |   |   |   | 136 |   |   |   | 136 |   |
| Edgewood Vista-East Grand Forks, MN                               |   |            | 4,996   |   |   |   | 475 |   |   |   | 465 |   |   |   | 464 |   |
| Edgewood Vista-Fargo, ND                                          |   |            | 26,087  |   |   |   | 2,415 |   |   |   | 2,387 |   |   |   | 2,065 |   |
| Edgewood Vista-Fremont, NE                                        |   |            | 588     |   |   |   | 72 |   |   |   | 72 |   |   |   | 72 |   |
| Edgewood Vista-Grand Island, NE                                   |   |            | 1,431   |   |   |   | 129 |   |   |   | 132 |   |   |   | 132 |   |
| Edgewood Vista-Hastings, NE                                       |   |            | 606     |   |   |   | 76 |   |   |   | 76 |   |   |   | 76 |   |
| Edgewood Vista-Hermantown I, MN                                   |   |            | 21,510  |   |   |   | 2,404 |   |   |   | 2,359 |   |   |   | 2,040 |   |
| Edgewood Vista-Hermantown II, MN                                  |   |            | 12,359  |   |   |   | 1,170 |   |   |   | 1,144 |   |   |   | 1,144 |   |
| Edgewood Vista-Kalispell, MT                                      |   |            | 624     |   |   |   | 76 |   |   |   | 76 |   |   |   | 76 |   |
| Edgewood Vista-Missoula, MT                                       |   |            | 999     |   |   |   | 96 |   |   |   | 96 |   |   |   | 96 |   |
| Edgewood Vista-Norfolk, NE                                        |   |            | 1,332   |   |   |   | 122 |   |   |   | 124 |   |   |   | 124 |   |
| Edgewood Vista-Omaha, NE                                          |   |            | 676     |   |   |   | 80 |   |   |   | 80 |   |   |   | 80 |   |
| Edgewood Vista-Sioux Falls, SD                                    |   |            | 3,353   |   |   |   | 312 |   |   |   | 312 |   |   |   | 312 |   |
| Edgewood Vista-Spearfish, SD                                      |   |            | 9,569   |   |   |   | 642 |   |   |   | 628 |   |   |   | 628 |   |
| Edgewood Vista-Virginia, MN                                       |   |            | 17,132  |   |   |   | 2,054 |   |   |   | 2,008 |   |   |   | 1,736 |   |
| Fargo 1320 45th Street N - Fargo, ND                              |   |            | 4,160   |   |   |   | 333 |   |   |   | 0 |   |   |   | 0 |   |
| Great Plains - Fargo, ND                                          |   |            | 15,375  |   |   |   | 1,876 |   |   |   | 1,876 |   |   |   | 1,876 |   |
| Healtheast St John & Woodwinds - Maplewood & Woodbury, MN |   |            | 21,601  |   |   |   | 2,152 |   |   |   | 2,152 |   |   |   | 2,052 |   |
|                                                              |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Index2011 Annual Report32                                    |
|                                                              |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | (in thousands)  |    |
|                                                              |   |            |    |   |   | Gross Rental Revenue |   |
| continued                                                         |   | Investment Cost |    |   |   | 2011 |   |   |   | 2010 |   |   |   | 2009 |   |
| Minnesota National Bank - Duluth, MN                              |   | $               | 1,745   |   |   | $ | 105 |   |   | $ | 164 |   |   | $ | 211 |   |
| Missoula 3050 Great Northern - Missoula, MT                       |   |            | 2,723   |   |   |   | 243 |   |   |   | 0 |   |   |   | 0 |   |
| Sartell 2000 23rd Street South - Sartell, MN                      |   |            | 12,693  |   |   |   | 1,209 |   |   |   | 1,173 |   |   |   | 1,292 |   |
| St. Michael Clinic - St. Michael, MN                              |   |            | 2,851   |   |   |   | 244 |   |   |   | 241 |   |   |   | 240 |   |
| Stevens Point - Stevens Point, WI                                 |   |            | 15,020  |   |   |   | 1,104 |   |   |   | 1,356 |   |   |   | 1,356 |   |
| Total                                                             |   | $               | 209,412 |   |   | $ | 20,362 |   |   | $ | 19,645 |   |   | $ | 18,796 |   |

|              |   | (in thousands)                |    |   |                   |   |
|-------------------|--------|-------------------------------|---------|--------|------------------------|--------|
| State             |   | Multi-Family Residential |    |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |   | % of All Segments |   |
| Minnesota         |   | $                             | 120,170 |   |                   | $      | 295,331 |   |   | $ | 247,032 |   |   | $ | 64,354 |   |   | $ | 62,558 |   |   | $ | 789,445 |   |   |   | 54.8 | % |
| North Dakota      |   |                          | 112,696 |   |                   |   | 24,542 |   |   |   | 40,961 |   |   |   | 8,950 |   |   |   | 27,870 |   |   |   | 215,019 |   |   |   | 14.9 | % |
| Nebraska          |   |                          | 32,545  |   |                   |   | 78,528 |   |   |   | 21,928 |   |   |   | 0 |   |   |   | 2,498 |   |   |   | 135,499 |   |   |   | 9.4 | % |
| Kansas            |   |                          | 34,041  |   |                   |   | 13,493 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 47,534 |   |   |   | 3.3 | % |
| Montana           |   |                          | 31,041  |   |                   |   | 0 |   |   |   | 7,455 |   |   |   | 0 |   |   |   | 4,346 |   |   |   | 42,842 |   |   |   | 3.0 | % |
| South Dakota      |   |                          | 26,779  |   |                   |   | 5,323 |   |   |   | 9,305 |   |   |   | 0 |   |   |   | 0 |   |   |   | 41,407 |   |   |   | 2.9 | % |
| Wyoming           |   |                          | 0       |   |                   |   | 0 |   |   |   | 36,850 |   |   |   | 0 |   |   |   | 0 |   |   |   | 36,850 |   |   |   | 2.5 | % |
| Iowa              |   |                          | 9,825   |   |                   |   | 0 |   |   |   | 0 |   |   |   | 26,585 |   |   |   | 0 |   |   |   | 36,410 |   |   |   | 2.5 | % |
| Missouri          |   |                          | 0       |   |                   |   | 29,981 |   |   |   | 2,594 |   |   |   | 0 |   |   |   | 0 |   |   |   | 32,575 |   |   |   | 2.3 | % |
| Wisconsin         |   |                          | 0       |   |                   |   | 9,740 |   |   |   | 16,339 |   |   |   | 0 |   |   |   | 3,515 |   |   |   | 29,594 |   |   |   | 2.0 | % |
| Colorado          |   |                          | 0       |   |                   |   | 20,057 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 20,057 |   |   |   | 1.4 | % |
| All Other States* |   |                          | 0       |   |                   |   | 13,846 |   |   |   | 0 |   |   |   | 0 |   |   |   | 768 |   |   |   | 14,614 |   |   |   | 1.0 | % |
| Total             |   | $                             | 367,097 |   |                   | $      | 490,841 |   |   | $ | 382,464 |   |   | $ | 99,889 |   |   | $ | 101,555 |   |   | $ | 1,441,846 |   |   |   | 100.0 | % |

| * | Idaho and Michigan |
|---|--------------------|

Index

----

| Quarter Ended    |   | High   |   |   | Low    |   |   | Distributions Declared(per share and unit) |   |
|------------------|--------|--------|--------|--------|--------|--------|--------|--------------------------------------------|--------|
| Fiscal Year 2011 |   |   |   |   |   |   |   |                                       |   |
| April 30, 2011   |   | $      | 9.54   |   |   | $      | 8.92   |                                       |   | $ | 0.1715 |   |
| January 31, 2011 |   |   | 9.26   |   |   |   | 8.74   |                                       |   |   | 0.1715 |   |
| October 31, 2010 |   |   | 8.90   |   |   |   | 7.97   |                                       |   |   | 0.1715 |   |
| July 31, 2010    |   |   | 9.20   |   |   |   | 8.25   |                                       |   |   | 0.1715 |   |

| Quarter Ended    |   | High   |   |   | Low    |   |   | Distributions Declared(per share and unit) |   |
|------------------|--------|--------|--------|--------|--------|--------|--------|--------------------------------------------|--------|
| Fiscal Year 2010 |   |   |   |   |   |   |   |                                       |   |
| April 30, 2010   |   | $      | 9.37   |   |   | $      | 8.31   |                                       |   | $ | 0.1715 |   |
| January 31, 2010 |   |   | 9.40   |   |   |   | 8.25   |                                       |   |   | 0.1715 |   |
| October 31, 2009 |   |   | 9.75   |   |   |   | 8.19   |                                       |   |   | 0.1710 |   |
| July 31, 2009    |   |   | 9.47   |   |   |   | 8.30   |                                       |   |   | 0.1705 |   |

Index

----

|                        | FY06   | FY07   | FY08   | FY09   | FY10   | FY11   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Investors Real Estate Trust | 100.00 | 119.09 | 123.32 | 119.52 | 121.66 | 141.66 |
| S&P 500                 | 100.00 | 115.24 | 109.85 | 71.06  | 98.66  | 115.65 |
| FTSE NAREIT Equity REITs    | 100.00 | 126.46 | 110.64 | 57.29  | 96.65  | 118.16 |

Index

----

|                                                                              |   | (in thousands, except per share data) |      |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                              |   | 2011                                  |      |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Consolidated Income Statement Data                                                |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                           |   | $                                     | 237,407   |   |   | $ | 231,511 |   |   | $ | 228,516 |   |   | $ | 209,674 |   |   | $ | 186,666 |   |
| Gain on sale of real estate, land, and other investments                          |   | $                                     | 19,365    |   |   | $ | 68 |   |   | $ | 54 |   |   | $ | 556 |   |   | $ | 4,602 |   |
| Income from continuing operations                                                 |   | $                                     | 4,480     |   |   | $ | 5,215 |   |   | $ | 10,447 |   |   | $ | 14,516 |   |   | $ | 14,392 |   |
| Income (loss) from discontinued operations                                        |   | $                                     | 19,871    |   |   | $ | (630 | ) |   | $ | (266 | ) |   | $ | 1,113 |   |   | $ | 3,991 |   |
| Net income                                                                        |   | $                                     | 24,351    |   |   | $ | 4,585 |   |   | $ | 10,713 |   |   | $ | 15,629 |   |   | $ | 18,383 |   |
| Net income attributable to noncontrolling interests – Operating Partnership |   | $                                     | (4,449    | ) |   | $ | (562 | ) |   | $ | (2,227 | ) |   | $ | (3,677 | ) |   | $ | (4,299 | ) |
| Net income attributable to Investors Real Estate Trust                            |   | $                                     | 20,082    |   |   | $ | 4,001 |   |   | $ | 8,526 |   |   | $ | 12,088 |   |   | $ | 14,110 |   |
| Consolidated Balance Sheet Data                                                   |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total real estate investments                                                     |   | $                                     | 1,458,245 |   |   | $ | 1,500,889 |   |   | $ | 1,472,575 |   |   | $ | 1,456,178 |   |   | $ | 1,316,534 |   |
| Total assets                                                                      |   | $                                     | 1,615,363 |   |   | $ | 1,660,930 |   |   | $ | 1,605,091 |   |   | $ | 1,618,026 |   |   | $ | 1,435,389 |   |
| Mortgages payable                                                                 |   | $                                     | 993,803   |   |   | $ | 1,057,619 |   |   | $ | 1,070,158 |   |   | $ | 1,063,858 |   |   | $ | 951,139 |   |
| Revolving lines of credit                                                         |   | $                                     | 30,000    |   |   | $ | 6,550 |   |   | $ | 5,500 |   |   | $ | 0 |   |   | $ | 0 |   |
| Total Investors Real Estate Trust shareholders’ equity                      |   | $                                     | 411,690   |   |   | $ | 409,523 |   |   | $ | 333,009 |   |   | $ | 344,074 |   |   | $ | 284,810 |   |
|                                                                              |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Per Common Share Data(basic and diluted)                             |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations - Investors Real Estate Trust                   |   | $                                     | .02       |   |   | $ | .04 |   |   | $ | .10 |   |   | $ | .17 |   |   | $ | .18 |   |
| Income (loss) from discontinued operations - Investors Real Estate Trust          |   | $                                     | .20       |   |   | $ | (.01 | ) |   | $ | .01 |   |   | $ | .01 |   |   | $ | .06 |   |
| Net income                                                                        |   | $                                     | .22       |   |   | $ | .03 |   |   | $ | .11 |   |   | $ | .18 |   |   | $ | .24 |   |
| Distributions                                                                     |   | $                                     | .69       |   |   | $ | .68 |   |   | $ | .68 |   |   | $ | .67 |   |   | $ | .66 |   |

| CALENDAR YEAR               | 2010   | 2009   | 2008   | 2007   | 2006   |
|-----------------------------|--------|--------|--------|--------|--------|
| Tax status of distributions |   |   |   |   |   |
| Capital gain                | 0.00%  | 0.09%  | 0.00%  | 1.49%  | 1.22%  |
| Ordinary income             | 28.53% | 39.17% | 53.43% | 51.69% | 42.01% |
| Return of capital           | 71.47% | 60.74% | 46.57% | 46.82% | 56.77% |

|   | • | 68 commercial office properties containing approximately 5.1 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $490.8 million; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|   | • | 56 commercial medical properties (including senior housing) containing approximately 2.7 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $382.5 million; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 19 commercial industrial properties containing approximately 3.0 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $99.9 million; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 33 commercial retail properties containing approximately 1.4 million square feet of leasable space and having a total real estate investment amount net of accumulated depreciation of $101.5 million. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

Index

----

|   | • | Base Rents - income arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent increases and abated rent under the leases.  Certain leases provide for tenant occupancy during periods for which no rent is due or where minimum rent payments increase during the term of the lease. Rental revenue is recorded for the full term of each lease on a straight-line basis. Accordingly, the Company records a receivable from tenants for rents that it expects to collect over the remaining lease term as deferred rents receivable. When the Company acquires a property, the term of the existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Revenue recognition is considered to be critical because the evaluation of the reliability of such deferred rents receivable involves management's assumptions relating to such tenant's viability. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Percentage Rents - income arising from retail tenant leases which are contingent upon the sales of the tenant exceeding a defined threshold. These rents are recognized only after the contingency has been removed (i.e., sales thresholds have been achieved). |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Expense Reimbursement Income – revenue arising from tenant leases, which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective property. This revenue is accrued in the same periods as the expenses are incurred. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                                                                                                                               |   | (in thousands) |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
| Rent in Fiscal 2011 from 10 properties acquired in fiscal year 2010 in excess of that received in 2010 from the same 10 properties |   | $              | 7,799  |   |
| Rent from 8 properties acquired in fiscal year 2011                                                                                |   |           | 2,356  |   |
| Decrease in rental income on stabilized properties due primarily to a decrease in occupancy                                        |   |           | (4,259 | ) |
|                                                                                                                               |   | $              | 5,896  |   |

|                                                                                                                             |   | (in thousands) |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
| Rent in Fiscal 2010 from 9 properties acquired in fiscal year 2009 in excess of that received in 2009 from the same 9 properties |   | $              | 2,234  |   |
| Rent from 10 properties acquired in fiscal year 2010                                                                             |   |           | 4,243  |   |
| Decrease in rental income on stabilized properties due primarily to a decrease in occupancy                                      |   |           | (3,482 | ) |
|                                                                                                                             |   | $              | 2,995  |   |

Index

----

|                                |   | (in thousands)                |   |
|-------------------------------------|--------|-------------------------------|--------|
| Year Ended April 30, 2011           |   | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | All Segments |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                 |   | $                             | 66,838 |   |   | $ | 77,747 |   |   | $ | 66,048 |   |   | $ | 13,165 |   |   | $ | 13,609 |   |   | $ | 237,407 |   |
| Real estate expenses                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilities                           |   |                          | 6,479  |   |   |   | 7,515 |   |   |   | 3,359 |   |   |   | 389 |   |   |   | 496 |   |   |   | 18,238 |   |
| Maintenance                         |   |                          | 10,755 |   |   |   | 11,430 |   |   |   | 4,581 |   |   |   | 765 |   |   |   | 1,709 |   |   |   | 29,240 |   |
| Real estate taxes                   |   |                          | 6,537  |   |   |   | 13,894 |   |   |   | 5,726 |   |   |   | 2,607 |   |   |   | 2,088 |   |   |   | 30,852 |   |
| Insurance                           |   |                          | 1,205  |   |   |   | 503 |   |   |   | 384 |   |   |   | 127 |   |   |   | 85 |   |   |   | 2,304 |   |
| Property management                 |   |                          | 9,153  |   |   |   | 2,713 |   |   |   | 8,416 |   |   |   | 440 |   |   |   | 567 |   |   |   | 21,289 |   |
| Total real estate expenses          |   | $                             | 34,129 |   |   | $ | 36,055 |   |   | $ | 22,466 |   |   | $ | 4,328 |   |   | $ | 4,945 |   |   | $ | 101,923 |   |
| Net operating income                |   | $                             | 32,709 |   |   | $ | 41,692 |   |   | $ | 43,582 |   |   | $ | 8,837 |   |   | $ | 8,664 |   |   | $ | 135,484 |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized net operating income     |   | $                             | 32,467 |   |   | $ | 41,187 |   |   | $ | 39,518 |   |   | $ | 8,216 |   |   | $ | 8,476 |   |   | $ | 129,864 |   |
| Non-stabilized net operating income |   |                          | 242    |   |   |   | 505 |   |   |   | 4,064 |   |   |   | 621 |   |   |   | 188 |   |   |   | 5,620 |   |
| Total net operating income          |   | $                             | 32,709 |   |   | $ | 41,692 |   |   | $ | 43,582 |   |   | $ | 8,837 |   |   | $ | 8,664 |   |   | $ | 135,484 |   |

|                                |   | (in thousands)                |   |
|-------------------------------------|--------|-------------------------------|--------|
| Year Ended April 30, 2010           |   | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | All Segments |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                 |   | $                             | 65,478 |   |   | $ | 82,079 |   |   | $ | 57,439 |   |   | $ | 13,095 |   |   | $ | 13,420 |   |   | $ | 231,511 |   |
| Real estate expenses                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilities                           |   |                          | 6,303  |   |   |   | 7,188 |   |   |   | 2,937 |   |   |   | 185 |   |   |   | 488 |   |   |   | 17,101 |   |
| Maintenance                         |   |                          | 9,549  |   |   |   | 11,127 |   |   |   | 4,210 |   |   |   | 738 |   |   |   | 1,348 |   |   |   | 26,972 |   |
| Real estate taxes                   |   |                          | 6,316  |   |   |   | 14,150 |   |   |   | 5,046 |   |   |   | 2,550 |   |   |   | 2,148 |   |   |   | 30,210 |   |
| Insurance                           |   |                          | 1,664  |   |   |   | 1,051 |   |   |   | 479 |   |   |   | 224 |   |   |   | 197 |   |   |   | 3,615 |   |
| Property management                 |   |                          | 8,783  |   |   |   | 3,317 |   |   |   | 5,232 |   |   |   | 424 |   |   |   | 637 |   |   |   | 18,393 |   |
| Total real estate expenses          |   | $                             | 32,615 |   |   | $ | 36,833 |   |   | $ | 17,904 |   |   | $ | 4,121 |   |   | $ | 4,818 |   |   | $ | 96,291 |   |
| Gain on involuntary conversion      |   |                          | 1,660  |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 1,660 |   |
| Net operating income                |   | $                             | 34,523 |   |   | $ | 45,246 |   |   | $ | 39,535 |   |   | $ | 8,974 |   |   | $ | 8,602 |   |   | $ | 136,880 |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized net operating income     |   | $                             | 34,474 |   |   | $ | 45,304 |   |   | $ | 38,524 |   |   | $ | 8,767 |   |   | $ | 8,602 |   |   | $ | 135,671 |   |
| Non-stabilized net operating income |   |                          | 49     |   |   |   | (58 | ) |   |   | 1,011 |   |   |   | 207 |   |   |   | 0 |   |   |   | 1,209 |   |
| Total net operating income          |   | $                             | 34,523 |   |   | $ | 45,246 |   |   | $ | 39,535 |   |   | $ | 8,974 |   |   | $ | 8,602 |   |   | $ | 136,880 |   |

Index

----

|                                |   | (in thousands)                |   |
|-------------------------------------|--------|-------------------------------|--------|
| Year Ended April 30, 2009           |   | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | All Segments |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                 |   | $                             | 65,632 |   |   | $ | 83,446 |   |   | $ | 52,547 |   |   | $ | 12,488 |   |   | $ | 14,403 |   |   | $ | 228,516 |   |
| Real estate expenses                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilities                           |   |                          | 6,861  |   |   |   | 7,851 |   |   |   | 2,859 |   |   |   | 93 |   |   |   | 448 |   |   |   | 18,112 |   |
| Maintenance                         |   |                          | 9,084  |   |   |   | 11,287 |   |   |   | 4,046 |   |   |   | 566 |   |   |   | 1,448 |   |   |   | 26,431 |   |
| Real estate taxes                   |   |                          | 6,654  |   |   |   | 13,850 |   |   |   | 4,515 |   |   |   | 1,878 |   |   |   | 2,180 |   |   |   | 29,077 |   |
| Insurance                           |   |                          | 1,089  |   |   |   | 1,003 |   |   |   | 419 |   |   |   | 171 |   |   |   | 182 |   |   |   | 2,864 |   |
| Property management                 |   |                          | 7,627  |   |   |   | 3,653 |   |   |   | 4,207 |   |   |   | 434 |   |   |   | 807 |   |   |   | 16,728 |   |
| Total real estate expenses          |   | $                             | 31,315 |   |   | $ | 37,644 |   |   | $ | 16,046 |   |   | $ | 3,142 |   |   | $ | 5,065 |   |   | $ | 93,212 |   |
| Net operating income                |   | $                             | 34,317 |   |   | $ | 45,802 |   |   | $ | 36,501 |   |   | $ | 9,346 |   |   | $ | 9,338 |   |   | $ | 135,304 |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized net operating income     |   | $                             | 33,356 |   |   | $ | 45,713 |   |   | $ | 35,929 |   |   | $ | 9,228 |   |   | $ | 9,338 |   |   | $ | 133,564 |   |
| Non-stabilized net operating income |   |                          | 961    |   |   |   | 89 |   |   |   | 572 |   |   |   | 118 |   |   |   | 0 |   |   |   | 1,740 |   |
| Total net operating income          |   | $                             | 34,317 |   |   | $ | 45,802 |   |   | $ | 36,501 |   |   | $ | 9,346 |   |   | $ | 9,338 |   |   | $ | 135,304 |   |

|                                                                                                 |   | (in thousands) |   |
|------------------------------------------------------------------------------------------------------|--------|----------------|--------|
| An increase in income from discontinued operations                                                   |   | $              | 20,501 |   |
| A decrease in interest expense primarily due to debt refinancing                                     |   |           | 1,644  |   |
| A decrease in impairment of real estate investment                                                   |   |           | 708    |   |
| An increase in net operating income (not including involuntary conversion)                           |   |           | 264    |   |
| An increase in net loss attributable to noncontrolling interests - consolidated real estate entities |   |           | 202    |   |
|                                                                                                 |   |           |   |   |
| These increases were offset by:                                                                      |   |           |   |   |
| An increase in net income attributable to noncontrolling interests - Operating Partnership           |   |           | (3,887 | ) |
| A decrease in gain on involuntary conversion                                                         |   |           | (1,660 | ) |
| An increase in depreciation/amortization expense related to real estate investments                  |   |           | (756   | ) |
| An increase in amortization related to non-real estate investments                                   |   |           | (317   | ) |
| A decrease in interest income                                                                        |   |           | (280   | ) |
| An increase in other expenses, administrative, advisory and trustee services                         |   |           | (265   | ) |
| A decrease in other income                                                                           |   |           | (73    | ) |
| Total increase in fiscal 2011 net income available to common shareholders                            |   | $              | 16,081 |   |

Index

----

|                                                                                                                        |   | (in thousands) |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
| A decrease in net income attributable to noncontrolling interests - Operating Partnership                                   |   | $              | 1,665  |   |
| An increase in gain on involuntary conversion                                                                               |   |           | 1,660  |   |
| An increase in other income                                                                                                 |   |           | 41     |   |
|                                                                                                                        |   |           |   |   |
| These increases were offset by:                                                                                             |   |           |   |   |
| An increase in depreciation/amortization expense related to real estate investments                                         |   |           | (2,719 | ) |
| An increase in other expenses, administrative, advisory and trustee services                                                |   |           | (2,409 | ) |
| An increase in loss from discontinued operations                                                                            |   |           | (896   | ) |
| An increase in impairment of real estate investment                                                                         |   |           | (708   | ) |
| An increase in interest expense primarily due to debt placed on new acquisitions                                            |   |           | (651   | ) |
| An increase in amortization related to non-real estate investments                                                          |   |           | (302   | ) |
| A decrease in net operating income primarily due to vacancy on stabilized properties (not including involuntary conversion) |   |           | (84    | ) |
| A decrease in interest income                                                                                               |   |           | (60    | ) |
| A decrease in net loss attributable to noncontrolling interests - consolidated real estate entities                         |   |           | (62    | ) |
| Total decrease in fiscal 2010 net income available to common shareholders                                                   |   | $              | (4,525 | ) |

|   | • | Physical Occupancy.  During fiscal year 2011, physical occupancy levels at our properties on an all properties basis decreased over year-earlier levels in three of our five reportable segments (commercial office, commercial industrial and commercial retail), and increased in our multi-family residential and commercial medical segments.  Physical occupancy rates on a stabilized property basis for the fiscal year ended April 30, 2011 decreased in four of our five reportable segments compared to the fiscal year ended April 30, 2010, and are shown below: |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Stabilized Properties       |   |   | All Properties              |   |
|--------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                     |   | Fiscal Year Ended April 30, |   |   | Fiscal Year Ended April 30, |   |
| Segments                 |   | 2011                        |   |   | 2010                        |   |   | 2011 |   |   | 2010 |   |
| Multi-Family Residential |   |                        | 92.8   | %      |                        |   | 89.7 | % |   |   | 92.8 | % |   |   | 89.7 | % |
| Commercial Office        |   |                        | 79.2   | %      |                        |   | 83.9 | % |   |   | 79.7 | % |   |   | 83.4 | % |
| Commercial Medical       |   |                        | 95.3   | %      |                        |   | 95.7 | % |   |   | 96.0 | % |   |   | 95.1 | % |
| Commercial Industrial    |   |                        | 89.8   | %      |                        |   | 90.6 | % |   |   | 90.1 | % |   |   | 90.7 | % |
| Commercial Retail        |   |                        | 82.6   | %      |                        |   | 82.8 | % |   |   | 81.6 | % |   |   | 82.8 | % |

|   | • | Concessions.  Our overall level of tenant concessions increased for the fiscal year ended April 30, 2011 compared to the year-earlier period. To maintain or increase physical occupancy levels at our properties, we may offer tenant incentives, generally in the form of lower or abated rents, which results in decreased revenues and income from operations at our properties.  Rent concessions offered during the fiscal year ended April 30, 2011 lowered our operating revenues by approximately $4.5 million, as compared to an approximately $2.4 million reduction in operating revenues attributable to rent concessions offered in fiscal year 2010. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)              |   |
|--------------------------|--------|-----------------------------|--------|
|                     |   | Fiscal Year Ended April 30, |   |
|                     |   | 2011                        |   |   | 2010 |   |   | Change |   |
| Multi-Family Residential |   | $                           | 1,539  |   |   | $ | 1,152 |   |   | $ | 387 |   |
| Commercial Office(1)     |   |                        | 2,081  |   |   |   | 747 |   |   |   | 1,334 |   |
| Commercial Medical(1)    |   |                        | 284    |   |   |   | 381 |   |   |   | (97 | ) |
| Commercial Industrial(1) |   |                        | 389    |   |   |   | 99 |   |   |   | 290 |   |
| Commercial Retail(1)     |   |                        | 239    |   |   |   | 27 |   |   |   | 212 |   |
| Total                    |   | $                           | 4,532  |   |   | $ | 2,406 |   |   | $ | 2,126 |   |

|   |   | (1) Rent concessions are amortized on a straight-line basis over the terms of the related leases. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | • | Increased Depreciation Expense.  Depreciation expense increased in fiscal year 2011 compared to fiscal year 2010, from $54.6 million to $55.4 million, an increase of $829,000 or approximately 1.5%.  Depreciation expense at properties newly acquired in fiscal years 2011 and 2010 added $1.6 million to the depreciation expense category during fiscal year 2011 while depreciation expenses at existing properties decreased by $774,000.  Depreciation expense consists of depreciation on buildings and capital improvements, and does not include depreciation on property and equipment at the Company’s offices.  Depreciation for property and equipment at the Company’s offices was $425,000 for a total Depreciation/amortization related to real estate investments of $55.8 million for fiscal year 2011. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 13,604 |   |   | $ | 19,882 |   |   | $ | 15,630 |   |   | $ | 3,317 |   |   | $ | 2,991 |   |   | $ | 55,424 |   |
| 2010                     |   | $                             | 13,105 |   |   | $ | 20,574 |   |   | $ | 14,383 |   |   | $ | 3,498 |   |   | $ | 3,035 |   |   | $ | 54,595 |   |
| Change                   |   | $                             | 499    |   |   | $ | (692 | ) |   | $ | 1,247 |   |   | $ | (181 | ) |   | $ | (44 | ) |   | $ | 829 |   |
| % change (2011 vs. 2010) |   |                          | 3.8    | % |   |   | (3.4 | %) |   |   | 8.7 | % |   |   | (5.2 | %) |   |   | (1.4 | %) |   |   | 1.5 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 383    |   |   | $ | (945 | ) |   | $ | 223 |   |   | $ | (292 | ) |   | $ | (143 | ) |   | $ | (774 | ) |
| Non-stabilized           |   | $                             | 116    |   |   | $ | 253 |   |   | $ | 1,024 |   |   | $ | 111 |   |   | $ | 99 |   |   | $ | 1,603 |   |
| Change                   |   | $                             | 499    |   |   | $ | (692 | ) |   | $ | 1,247 |   |   | $ | (181 | ) |   | $ | (44 | ) |   | $ | 829 |   |

|   | • | Increased Utility Expense.  Utility expense totaled $18.2 million in fiscal year 2011, compared to $17.1 million in fiscal year 2010.  Utility expenses at properties newly acquired in fiscal years 2011 and 2010 added $438,000 to the utility expense category during fiscal year 2011 (with our commercial medical segment accounting for $344,000), while utility expenses at existing properties increased by $699,000, primarily due to increased heating costs in fiscal year 2011 compared to fiscal year 2010, for a total increase of $1.1 million or 6.6% in utility expenses in fiscal year 2011 compared to fiscal year 2010. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 6,479  |   |   | $ | 7,515 |   |   | $ | 3,359 |   |   | $ | 389 |   |   | $ | 496 |   |   | $ | 18,238 |   |
| 2010                     |   | $                             | 6,303  |   |   | $ | 7,188 |   |   | $ | 2,937 |   |   | $ | 185 |   |   | $ | 488 |   |   | $ | 17,101 |   |
| Change                   |   | $                             | 176    |   |   | $ | 327 |   |   | $ | 422 |   |   | $ | 204 |   |   | $ | 8 |   |   | $ | 1,137 |   |
| % change (2011 vs. 2010) |   |                          | 2.8    | % |   |   | 4.5 | % |   |   | 14.4 | % |   |   | 110.3 | % |   |   | 1.6 | % |   |   | 6.6 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 119    |   |   | $ | 290 |   |   | $ | 78 |   |   | $ | 204 |   |   | $ | 8 |   |   | $ | 699 |   |
| Non-stabilized           |   | $                             | 57     |   |   | $ | 37 |   |   | $ | 344 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 438 |   |
| Change                   |   | $                             | 176    |   |   | $ | 327 |   |   | $ | 422 |   |   | $ | 204 |   |   | $ | 8 |   |   | $ | 1,137 |   |

Index

----

|   |   | Increased Maintenance Expense.  Maintenance expenses totaled $29.2 million in fiscal year 2011, compared to $27.0 million in fiscal year 2010.  Maintenance expenses at properties newly acquired in fiscal years 2011 and 2010 added approximately $368,000 to the maintenance expense category during fiscal year 2011, while maintenance expenses at existing properties increased by approximately $1.9 million, primarily for increased snow removal costs in all segments and for payroll and tax expenses at our multi-family residential segment resulting in a net increase of approximately $2.3 million or 8.4% in maintenance expenses in fiscal year 2011 compared to fiscal year 2010.  Under the terms of most of our commercial leases, the full cost of maintenance is paid by the tenant as additional rent. For our noncommercial real estate properties, any increase in our maintenance costs must be collected from tenants in the form of general rent increases. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 10,755 |   |   | $ | 11,430 |   |   | $ | 4,581 |   |   | $ | 765 |   |   | $ | 1,709 |   |   | $ | 29,240 |   |
| 2010                     |   | $                             | 9,549  |   |   | $ | 11,127 |   |   | $ | 4,210 |   |   | $ | 738 |   |   | $ | 1,348 |   |   | $ | 26,972 |   |
| Change                   |   | $                             | 1,206  |   |   | $ | 303 |   |   | $ | 371 |   |   | $ | 27 |   |   | $ | 361 |   |   | $ | 2,268 |   |
| % change (2011 vs. 2010) |   |                          | 12.6   | % |   |   | 2.7 | % |   |   | 8.8 | % |   |   | 3.7 | % |   |   | 26.8 | % |   |   | 8.4 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 1,086  |   |   | $ | 229 |   |   | $ | 209 |   |   | $ | 23 |   |   | $ | 353 |   |   | $ | 1,900 |   |
| Non-stabilized           |   | $                             | 120    |   |   | $ | 74 |   |   | $ | 162 |   |   | $ | 4 |   |   | $ | 8 |   |   | $ | 368 |   |
| Change                   |   | $                             | 1,206  |   |   | $ | 303 |   |   | $ | 371 |   |   | $ | 27 |   |   | $ | 361 |   |   | $ | 2,268 |   |

|   | • | Increased Real Estate Tax Expense.  Real estate taxes on properties newly acquired in fiscal years 2011 and 2010 added $264,000 to real estate tax expense, while real estate taxes on existing properties increased by approximately $378,000, for a total increase of $642,000 or 2.1% in real estate tax expense in fiscal year 2011 compared to fiscal year 2010, from $30.2 million to $30.9 million.  The increase in real estate taxes was a net result of increased assessed values in the multi-family residential and commercial medical segments offset by decreased assessed values in the commercial office and commercial retail segments. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 6,537  |   |   | $ | 13,894 |   |   | $ | 5,726 |   |   | $ | 2,607 |   |   | $ | 2,088 |   |   | $ | 30,852 |   |
| 2010                     |   | $                             | 6,316  |   |   | $ | 14,150 |   |   | $ | 5,046 |   |   | $ | 2,550 |   |   | $ | 2,148 |   |   | $ | 30,210 |   |
| Change                   |   | $                             | 221    |   |   | $ | (256 | ) |   | $ | 680 |   |   | $ | 57 |   |   | $ | (60 | ) |   | $ | 642 |   |
| % change (2011 vs. 2010) |   |                          | 3.5    | % |   |   | (1.8 | %) |   |   | 13.5 | % |   |   | 2.2 | % |   |   | (2.8 | %) |   |   | 2.1 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 156    |   |   | $ | (349 | ) |   | $ | 636 |   |   | $ | 28 |   |   | $ | (93 | ) |   | $ | 378 |   |
| Non-stabilized           |   | $                             | 65     |   |   | $ | 93 |   |   | $ | 44 |   |   | $ | 29 |   |   | $ | 33 |   |   | $ | 264 |   |
| Change                   |   | $                             | 221    |   |   | $ | (256 | ) |   | $ | 680 |   |   | $ | 57 |   |   | $ | (60 | ) |   | $ | 642 |   |

|   | • | Decreased Insurance Expense.  Insurance expense decreased in fiscal year 2011 compared to fiscal year 2010, from $3.6 million to $2.3 million, a decrease of approximately 36.3%.  Insurance expense at properties newly-acquired in fiscal years 2011 and 2010 added approximately $187,000 to insurance expense, while insurance expense at existing properties decreased by approximately $1.5 million, for a decrease of approximately $1.3 million in insurance expense in fiscal year 2011 compared to fiscal year 2010.  The decrease in insurance expense at stabilized properties is due to reduced insurance rates because of better claims experience. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 1,205  |   |   | $ | 503 |   |   | $ | 384 |   |   | $ | 127 |   |   | $ | 85 |   |   | $ | 2,304 |   |
| 2010                     |   | $                             | 1,664  |   |   | $ | 1,051 |   |   | $ | 479 |   |   | $ | 224 |   |   | $ | 197 |   |   | $ | 3,615 |   |
| Change                   |   | $                             | (459   | ) |   | $ | (548 | ) |   | $ | (95 | ) |   | $ | (97 | ) |   | $ | (112 | ) |   | $ | (1,311 | ) |
| % change (2011 vs. 2010) |   |                          | (27.6  | %) |   |   | (52.1 | %) |   |   | (19.8 | %) |   |   | (43.3 | %) |   |   | (56.9 | %) |   |   | (36.3 | %) |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | (469   | ) |   | $ | (553 | ) |   | $ | (267 | ) |   | $ | (97 | ) |   | $ | (112 | ) |   | $ | (1,498 | ) |
| Non-stabilized           |   | $                             | 10     |   |   | $ | 5 |   |   | $ | 172 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 187 |   |
| Change                   |   | $                             | (459   | ) |   | $ | (548 | ) |   | $ | (95 | ) |   | $ | (97 | ) |   | $ | (112 | ) |   | $ | (1,311 | ) |

|   | • | Increased Property Management Expense.  Property management expense increased in fiscal year 2011 compared to fiscal year 2010, from $18.4 million to $21.3 million, an increase of $2.9 million or approximately 15.7%.  Property management expenses at properties newly acquired in fiscal years 2011 and 2010 added $4.5 million to the property management category during fiscal year 2011 (with our commercial medical segment accounting for $4.4 million) while property management expenses at existing properties decreased by $1.6 million primarily as a result of a reduction in bad debt expense in the commercial medical segment of $1.0 million, offset by an increase in bad debt expense in the multi-family residential segment of $348,000 and to a lesser extent reduced management fees in the commercial office segment of $746,000. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 9,153  |   |   | $ | 2,713 |   |   | $ | 8,416 |   |   | $ | 440 |   |   | $ | 567 |   |   | $ | 21,289 |   |
| 2010                     |   | $                             | 8,783  |   |   | $ | 3,317 |   |   | $ | 5,232 |   |   | $ | 424 |   |   | $ | 637 |   |   | $ | 18,393 |   |
| Change                   |   | $                             | 370    |   |   | $ | (604 | ) |   | $ | 3,184 |   |   | $ | 16 |   |   | $ | (70 | ) |   | $ | 2,896 |   |
| % change (2011 vs. 2010) |   |                          | 4.2    | % |   |   | (18.2 | %) |   |   | 60.9 | % |   |   | 3.8 | % |   |   | (11.0 | %) |   |   | 15.7 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 275    |   |   | $ | (623 | ) |   | $ | (1,175 | ) |   | $ | 9 |   |   | $ | (76 | ) |   | $ | (1,590 | ) |
| Non-stabilized           |   | $                             | 95     |   |   | $ | 19 |   |   | $ | 4,359 |   |   | $ | 7 |   |   | $ | 6 |   |   | $ | 4,486 |   |
| Change                   |   | $                             | 370    |   |   | $ | (604 | ) |   | $ | 3,184 |   |   | $ | 16 |   |   | $ | (70 | ) |   | $ | 2,896 |   |

|   | • | Decreased Mortgage Interest Expense.  Our mortgage interest expense decreased approximately $2.6 million, or 4.0%, to approximately $61.1 million during fiscal year 2011, compared to $63.7 million in fiscal year 2010. The mortgage interest expense category does not include interest expense on the multi-bank line of credit we entered into in the first quarter of fiscal year 2011, which totaled approximately $851,000 in fiscal year 2011, or interest expense totaling approximately $96,000 in fiscal year 2011 on our two loans financed with Recovery Zone Facility Bonds.  Mortgage interest expense and interest expense on our line of credit and on our two loans financed with Recovery Zone Facility Bonds are all components of “Interest expense” on our consolidated statement of operations. Mortgage interest expense for properties newly acquired in fiscal years 2011 and 2010 added $321,000 to our total mortgage interest expense in fiscal year 2011, while mortgage interest expense on existing properties decreased $2.9 million.  Our overall weighted average interest rate on all outstanding mortgage debt was 5.92% as of April 30, 2011, compared to 6.17% as of April 30, 2010.  Our mortgage debt decreased approximately $63.8 million, or 6.0%, to approximately $993.8 million as of April 30, 2011, compared to April 30, 2010. Mortgage debt does not include our multi-bank line of credit and our two loans financed with Recovery Zone Facility Bonds, both of which appear on our consolidated balance sheet in “Other debt.” |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2011                     |   | $                             | 16,550 |   |   | $ | 21,349 |   |   | $ | 16,307 |   |   | $ | 3,786 |   |   | $ | 3,151 |   |   | $ | 61,143 |   |
| 2010                     |   | $                             | 16,540 |   |   | $ | 22,864 |   |   | $ | 17,023 |   |   | $ | 3,884 |   |   | $ | 3,392 |   |   | $ | 63,703 |   |
| Change                   |   | $                             | 10     |   |   | $ | (1,515 | ) |   | $ | (716 | ) |   | $ | (98 | ) |   | $ | (241 | ) |   | $ | (2,560 | ) |
| % change (2011 vs. 2010) |   |                          | 0.1    | % |   |   | (6.6 | %) |   |   | (4.2 | %) |   |   | (2.5 | %) |   |   | (7.1 | %) |   |   | (4.0 | %) |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | (159   | ) |   | $ | (1,608 | ) |   | $ | (710 | ) |   | $ | (163 | ) |   | $ | (241 | ) |   | $ | (2,881 | ) |
| Non-stabilized           |   | $                             | 169    |   |   | $ | 93 |   |   | $ | (6 | ) |   | $ | 65 |   |   | $ | 0 |   |   | $ | 321 |   |
| Change                   |   | $                             | 10     |   |   | $ | (1,515 | ) |   | $ | (716 | ) |   | $ | (98 | ) |   | $ | (241 | ) |   | $ | (2,560 | ) |

|   | • | Decreased Amortization Expense. The Company allocates a portion of the purchase price paid for properties to in-place lease intangible assets.  The amortization period of these intangible assets is the term of the lease, rather than the estimated life of the buildings and improvements.  The Company accordingly initially records additional amortization expense due to this shorter amortization period, which has the effect in the short term of decreasing the Company’s net income available to common shareholders, as computed in accordance with GAAP.  Amortization expense related to in-places leases totaled $7.1 million in fiscal year 2011, compared to $8.6 million in fiscal year 2010. The decrease in amortization expense in fiscal year 2011 compared to fiscal year 2010 was primarily due to prior years’ acquisitions becoming completely amortized. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Increased Administrative expenses.  Administrative expenses totaled $6.6 million in fiscal year 2011, compared to $5.7 million in fiscal year 2010, with the increase due primarily to higher salary and employee incentive compensation expense. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Physical Occupancy.  During fiscal year 2010, physical occupancy levels at our properties on an all properties basis decreased over year-earlier levels in four of our five reportable segments (multi-family, commercial office, commercial industrial and commercial retail), and increased slightly in our commercial medical segment.  Physical occupancy rates on a stabilized property basis for the fiscal year ended April 30, 2010 decreased in all of our reportable segments compared to the fiscal year ended April 30, 2009, and are shown below: |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Stabilized Properties       |   |   | All Properties              |   |
|--------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                     |   | Fiscal Year Ended April 30, |   |   | Fiscal Year Ended April 30, |   |
| Segments                 |   | 2010                        |   |   | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Multi-Family Residential |   |                        | 89.6   | %      |                        |   | 93.6 | % |   |   | 89.7 | % |   |   | 93.4 | % |
| Commercial Office        |   |                        | 84.2   | %      |                        |   | 87.4 | % |   |   | 83.4 | % |   |   | 87.5 | % |
| Commercial Medical       |   |                        | 94.5   | %      |                        |   | 95.6 | % |   |   | 95.1 | % |   |   | 95.0 | % |
| Commercial Industrial    |   |                        | 90.3   | %      |                        |   | 96.9 | % |   |   | 90.7 | % |   |   | 97.0 | % |
| Commercial Retail        |   |                        | 82.8   | %      |                        |   | 84.7 | % |   |   | 82.8 | % |   |   | 84.7 | % |

|   | • | Concessions.  Our overall level of tenant concessions decreased for the fiscal year ended April 30, 2010 compared to the year-earlier period. To maintain or increase physical occupancy levels at our properties, we may offer tenant incentives, generally in the form of lower or abated rents, which results in decreased revenues and income from operations at our properties.  Rent concessions offered during the fiscal year ended April 30, 2010 and 2009 lowered our operating revenues by approximately $2.4 million. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)              |   |
|--------------------------|--------|-----------------------------|--------|
|                     |   | Fiscal Year Ended April 30, |   |
|                     |   | 2010                        |   |   | 2009 |   |   | Change |   |
| Multi-Family Residential |   | $                           | 1,152  |   |   | $ | 1,085 |   |   | $ | 67 |   |
| Commercial Office        |   |                        | 747    |   |   |   | 1,036 |   |   |   | (289 | ) |
| Commercial Medical       |   |                        | 381    |   |   |   | 34 |   |   |   | 347 |   |
| Commercial Industrial    |   |                        | 99     |   |   |   | 220 |   |   |   | (121 | ) |
| Commercial Retail        |   |                        | 27     |   |   |   | 44 |   |   |   | (17 | ) |
| Total                    |   | $                           | 2,406  |   |   | $ | 2,419 |   |   | $ | (13 | ) |

|   | • | Increased Depreciation Expense.  Depreciation expense increased in fiscal year 2010 compared to fiscal year 2009, from $52.1 million to $54.6 million, an increase of $2.5 million or approximately 4.8%.  Depreciation expense at properties newly acquired in fiscal years 2010 and 2009 added $1.3 million to the depreciation expense category during fiscal year 2010 while depreciation expenses at existing properties increased by $1.2 million.  Depreciation expense consists of depreciation on buildings and capital improvements, and does not include depreciation on property and equipment at the Company’s offices. Depreciation for property and equipment at the Company’s offices was $498,000 for a total Depreciation/amortization related to real estate investments of $55.1 million for fiscal year 2010. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 13,105 |   |   | $ | 20,574 |   |   | $ | 14,383 |   |   | $ | 3,498 |   |   | $ | 3,035 |   |   | $ | 54,595 |   |
| 2009                     |   | $                             | 12,076 |   |   | $ | 20,760 |   |   | $ | 13,109 |   |   | $ | 3,368 |   |   | $ | 2,766 |   |   | $ | 52,079 |   |
| Change                   |   | $                             | 1,029  |   |   | $ | (186 | ) |   | $ | 1,274 |   |   | $ | 130 |   |   | $ | 269 |   |   | $ | 2,516 |   |
| % change (2010 vs. 2009) |   |                          | 8.5    | % |   |   | (0.9 | %) |   |   | 9.7 | % |   |   | 3.9 | % |   |   | 9.7 | % |   |   | 4.8 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 697    |   |   | $ | (279 | ) |   | $ | 535 |   |   | $ | (16 | ) |   | $ | 269 |   |   | $ | 1,206 |   |
| Non-stabilized           |   | $                             | 332    |   |   | $ | 93 |   |   | $ | 739 |   |   | $ | 146 |   |   | $ | 0 |   |   | $ | 1,310 |   |
| 2010                     |   | $                             | 1,029  |   |   | $ | (186 | ) |   | $ | 1,274 |   |   | $ | 130 |   |   | $ | 269 |   |   | $ | 2,516 |   |

|   | • | Decreased Utility Expense.  Utility expense totaled $17.1 million in fiscal year 2010, compared to $18.1 million in fiscal year 2009.  Utility expenses at properties newly acquired in fiscal years 2010 and 2009 added $313,000 to the utility expense category during fiscal year 2010 (with our commercial medical segment accounting for $311,000), while utility expenses at existing properties decreased by $1.3 million, primarily due in part to decreased heating costs compared to fiscal year 2009’s unseasonably cold temperatures and, to a lesser degree, decreased rates in fiscal year 2010 compared to fiscal year 2009’s higher fuel costs (notably in our commercial office segment with a decrease of $682,000), for a total decrease of $1.0 million or 5.6% in utility expenses in fiscal year 2010 compared to fiscal year 2009. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 6,303  |   |   | $ | 7,188 |   |   | $ | 2,937 |   |   | $ | 185 |   |   | $ | 488 |   |   | $ | 17,101 |   |
| 2009                     |   | $                             | 6,861  |   |   | $ | 7,851 |   |   | $ | 2,859 |   |   | $ | 93 |   |   | $ | 448 |   |   | $ | 18,112 |   |
| Change                   |   | $                             | (558   | ) |   | $ | (663 | ) |   | $ | 78 |   |   | $ | 92 |   |   | $ | 40 |   |   | $ | (1,011 | ) |
| % change (2010 vs. 2009) |   |                          | (8.1   | %) |   |   | (8.4 | %) |   |   | 2.7 | % |   |   | 98.9 | % |   |   | 8.9 | % |   |   | (5.6 | %) |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | (542   | ) |   | $ | (682 | ) |   | $ | (233 | ) |   | $ | 93 |   |   | $ | 40 |   |   | $ | (1,324 | ) |
| Non-stabilized           |   | $                             | (16    | ) |   | $ | 19 |   |   | $ | 311 |   |   | $ | (1 | ) |   | $ | 0 |   |   | $ | 313 |   |
| Change                   |   | $                             | (558   | ) |   | $ | (663 | ) |   | $ | 78 |   |   | $ | 92 |   |   | $ | 40 |   |   | $ | (1,011 | ) |

Index

----

|   | • | Increased Maintenance Expense.  Maintenance expenses totaled $27.0 million in fiscal year 2010, compared to $26.4 million in fiscal year 2009.  Maintenance expenses at properties newly acquired in fiscal years 2010 and 2009 added approximately $421,000 to the maintenance expense category during fiscal year 2010, while maintenance expenses at existing properties increased by approximately $120,000, primarily for payroll and taxes and vehicle expenses at our multi-family residential segment resulting in a net increase of approximately $541,000 million or 2.0% in maintenance expenses in fiscal year 2010 compared to fiscal year 2009.  Under the terms of most of our commercial leases, the full cost of maintenance is paid by the tenant as additional rent. For our noncommercial real estate properties, any increase in our maintenance costs must be collected from tenants in the form of general rent increases. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 9,549  |   |   | $ | 11,127 |   |   | $ | 4,210 |   |   | $ | 738 |   |   | $ | 1,348 |   |   | $ | 26,972 |   |
| 2009                     |   | $                             | 9,084  |   |   | $ | 11,287 |   |   | $ | 4,046 |   |   | $ | 566 |   |   | $ | 1,448 |   |   | $ | 26,431 |   |
| Change                   |   | $                             | 465    |   |   | $ | (160 | ) |   | $ | 164 |   |   | $ | 172 |   |   | $ | (100 | ) |   | $ | 541 |   |
| % change (2010 vs. 2009) |   |                          | 5.1    | % |   |   | (1.4 | %) |   |   | 4.1 | % |   |   | 30.4 | % |   |   | (6.9 | %) |   |   | 2.0 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 324    |   |   | $ | (186 | ) |   | $ | (90 | ) |   | $ | 172 |   |   | $ | (100 | ) |   | $ | 120 |   |
| Non-stabilized           |   | $                             | 141    |   |   | $ | 26 |   |   | $ | 254 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 421 |   |
| Change                   |   | $                             | 465    |   |   | $ | (160 | ) |   | $ | 164 |   |   | $ | 172 |   |   | $ | (100 | ) |   | $ | 541 |   |

|   | • | Increased Real Estate Tax Expense.  Real estate taxes on properties newly acquired in fiscal years 2010 and 2009 added $192,000 to real estate tax expense (with our commercial industrial segment accounting for $161,000), while real estate taxes on existing properties increased by approximately $941,000, for a total increase of $1.1 million or 3.9% in real estate tax expense in fiscal year 2010 compared to fiscal year 2009, from $29.1 million to $30.2 million.  The increase in real estate taxes was primarily due to higher value assessments or increased tax levies on our stabilized properties. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 6,316  |   |   | $ | 14,150 |   |   | $ | 5,046 |   |   | $ | 2,550 |   |   | $ | 2,148 |   |   | $ | 30,210 |   |
| 2009                     |   | $                             | 6,654  |   |   | $ | 13,850 |   |   | $ | 4,515 |   |   | $ | 1,878 |   |   | $ | 2,180 |   |   | $ | 29,077 |   |
| Change                   |   | $                             | (338   | ) |   | $ | 300 |   |   | $ | 531 |   |   | $ | 672 |   |   | $ | (32 | ) |   | $ | 1,133 |   |
| % change (2010 vs. 2009) |   |                          | (5.1   | %) |   |   | 2.2 | % |   |   | 11.8 | % |   |   | 35.8 | % |   |   | (1.5 | %) |   |   | 3.9 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | (212   | ) |   | $ | 262 |   |   | $ | 412 |   |   | $ | 511 |   |   | $ | (32 | ) |   | $ | 941 |   |
| Non-stabilized           |   | $                             | (126   | ) |   | $ | 38 |   |   | $ | 119 |   |   | $ | 161 |   |   | $ | 0 |   |   | $ | 192 |   |
| Change                   |   | $                             | (338   | ) |   | $ | 300 |   |   | $ | 531 |   |   | $ | 672 |   |   | $ | (32 | ) |   | $ | 1,133 |   |

|   | • | Increased Insurance Expense.  Insurance expense increased in fiscal year 2010 compared to fiscal year 2009, from $2.9 million to $3.6 million, an increase of approximately 26.2%.  Insurance expense at properties newly-acquired in fiscal years 2010 and 2009 added approximately $99,000 to insurance expense, while insurance expense at existing properties increased by approximately $652,000, for an increase of approximately $751,000 in insurance expense in fiscal year 2010 compared to fiscal year 2009.  The increase in insurance expense at stabilized properties is due to an increase in premiums, most notably in our multi-family residential segment of $531,000. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 1,664  |   |   | $ | 1,051 |   |   | $ | 479 |   |   | $ | 224 |   |   | $ | 197 |   |   | $ | 3,615 |   |
| 2009                     |   | $                             | 1,089  |   |   | $ | 1,003 |   |   | $ | 419 |   |   | $ | 171 |   |   | $ | 182 |   |   | $ | 2,864 |   |
| Change                   |   | $                             | 575    |   |   | $ | 48 |   |   | $ | 60 |   |   | $ | 53 |   |   | $ | 15 |   |   | $ | 751 |   |
| % change (2010 vs. 2009) |   |                          | 52.8   | % |   |   | 4.8 | % |   |   | 14.3 | % |   |   | 31.0 | % |   |   | 8.2 | % |   |   | 26.2 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 531    |   |   | $ | 39 |   |   | $ | 20 |   |   | $ | 47 |   |   | $ | 15 |   |   | $ | 652 |   |
| Non-stabilized           |   | $                             | 44     |   |   | $ | 9 |   |   | $ | 40 |   |   | $ | 6 |   |   | $ | 0 |   |   | $ | 99 |   |
| Change                   |   | $                             | 575    |   |   | $ | 48 |   |   | $ | 60 |   |   | $ | 53 |   |   | $ | 15 |   |   | $ | 751 |   |

|   | • | Increased Property Management Expense.  Property management expense increased in fiscal year 2010 compared to fiscal year 2009, from $16.7 million to $18.4 million, an increase of $1.7 million or approximately 10.0%.  Property management expenses at properties newly acquired in fiscal years 2010 and 2009 added $2.4 million to the property management category during fiscal year 2010 (with our commercial medical segment accounting for $2.2 million) while property management expenses at existing properties decreased by $734,000 primarily as a result of a reduction in bad debt expense. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 8,783  |   |   | $ | 3,317 |   |   | $ | 5,232 |   |   | $ | 424 |   |   | $ | 637 |   |   | $ | 18,393 |   |
| 2009                     |   | $                             | 7,627  |   |   | $ | 3,653 |   |   | $ | 4,207 |   |   | $ | 434 |   |   | $ | 807 |   |   | $ | 16,728 |   |
| Change                   |   | $                             | 1,156  |   |   | $ | (336 | ) |   | $ | 1,025 |   |   | $ | (10 | ) |   | $ | (170 | ) |   | $ | 1,665 |   |
| % change (2010 vs. 2009) |   |                          | 15.2   | % |   |   | (9.2 | %) |   |   | 24.4 | % |   |   | (2.3 | %) |   |   | (21.1 | %) |   |   | 10.0 | % |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 1,036  |   |   | $ | (362 | ) |   | $ | (1,213 | ) |   | $ | (25 | ) |   | $ | (170 | ) |   | $ | (734 | ) |
| Non-stabilized           |   | $                             | 120    |   |   | $ | 26 |   |   | $ | 2,238 |   |   | $ | 15 |   |   | $ | 0 |   |   | $ | 2,399 |   |
| Change                   |   | $                             | 1,156  |   |   | $ | (336 | ) |   | $ | 1,025 |   |   | $ | (10 | ) |   | $ | (170 | ) |   | $ | 1,665 |   |

|   | • | Decreased Mortgage Interest Expense.  Our mortgage interest expense decreased approximately $596,000, or 0.9%, to approximately $63.7 million during fiscal year 2010, compared to $64.3 million in fiscal year 2009. Mortgage interest expense for properties newly acquired in fiscal years 2010 and 2009 added $887,000 to our total mortgage interest expense in fiscal year 2010, while mortgage interest expense on existing properties decreased $1.5 million.  Our overall weighted average interest rate on all outstanding mortgage debt was 6.17% as of April 30, 2010, compared to 6.30% as of April 30, 2009.  Our mortgage debt decreased approximately $12.5 million, or 1.2%, to approximately $1.1 billion as of April 30, 2010, compared to April 30, 2009. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                     |   | (in thousands)                |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   | Multi-Family Residential |   |   | Commercial Office |   |   | Commercial Medical |   |   | Commercial Industrial |   |   | Commercial Retail |   |   | All Segments |   |
|                     |
| 2010                     |   | $                             | 16,540 |   |   | $ | 22,864 |   |   | $ | 17,023 |   |   | $ | 3,884 |   |   | $ | 3,392 |   |   | $ | 63,703 |   |
| 2009                     |   | $                             | 16,159 |   |   | $ | 23,658 |   |   | $ | 16,870 |   |   | $ | 3,743 |   |   | $ | 3,869 |   |   | $ | 64,299 |   |
| Change                   |   | $                             | 381    |   |   | $ | (794 | ) |   | $ | 153 |   |   | $ | 141 |   |   | $ | (477 | ) |   | $ | (596 | ) |
| % change (2010 vs. 2009) |   |                          | 2.4    | % |   |   | (3.4 | %) |   |   | 0.9 | % |   |   | 3.8 | % |   |   | (12.3 | %) |   |   | (0.9 | %) |
|                     |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stabilized               |   | $                             | 325    |   |   | $ | (794 | ) |   | $ | (457 | ) |   | $ | (80 | ) |   | $ | (477 | ) |   | $ | (1,483 | ) |
| Non-stabilized           |   | $                             | 56     |   |   | $ | 0 |   |   | $ | 610 |   |   | $ | 221 |   |   | $ | 0 |   |   | $ | 887 |   |
| Change                   |   | $                             | 381    |   |   | $ | (794 | ) |   | $ | 153 |   |   | $ | 141 |   |   | $ | (477 | ) |   | $ | (596 | ) |

|   | • | Decreased Amortization Expense. The Company allocates a portion of the purchase price paid for properties to in-place lease intangible assets.  The amortization period of these intangible assets is the term of the lease, rather than the estimated life of the buildings and improvements.  The Company accordingly initially records additional amortization expense due to this shorter amortization period, which has the effect in the short term of decreasing the Company’s net income available to common shareholders, as computed in accordance with GAAP.  Amortization expense related to in-places leases totaled $8.6 million in fiscal year 2010, compared to $10.2 million in fiscal year 2009. The decrease in amortization expense in fiscal year 2010 compared to fiscal year 2009 was primarily due to prior years’ acquisitions becoming completely amortized. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Increased Administrative expenses.  Administrative expenses totaled $5.7 million in fiscal year 2010, compared to $4.4 million in fiscal year 2009, with the increase due primarily to higher salary and employee incentive compensation expense associated with our internal property management initiative. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       |   | (in thousands) |      |
|------------------------------------------------------------|--------|----------------|-----------|
| Fiscal Years Ended April 30                                |   | 2011           |      |   | % |   |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
| Real Estate Investments – (cost before depreciation) |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                   |   | $              | 484,815   |   |   |   | 27.4 | % |   | $ | 556,867 |   |   |   | 30.9 | % |   | $ | 542,547 |   |   |   | 31.4 | % |
| Commercial Office                                          |   |           | 595,491   |   |   |   | 33.6 | % |   |   | 582,943 |   |   |   | 32.4 | % |   |   | 571,565 |   |   |   | 33.0 | % |
| Commercial Medical                                         |   |           | 447,831   |   |   |   | 25.3 | % |   |   | 430,229 |   |   |   | 23.9 | % |   |   | 388,219 |   |   |   | 22.4 | % |
| Commercial Industrial                                      |   |           | 117,602   |   |   |   | 6.6 | % |   |   | 113,249 |   |   |   | 6.3 | % |   |   | 108,103 |   |   |   | 6.3 | % |
| Commercial Retail                                          |   |           | 125,059   |   |   |   | 7.1 | % |   |   | 117,231 |   |   |   | 6.5 | % |   |   | 119,151 |   |   |   | 6.9 | % |
| Total                                                      |   | $              | 1,770,798 |   |   |   | 100.0 | % |   | $ | 1,800,519 |   |   |   | 100.0 | % |   | $ | 1,729,585 |   |   |   | 100.0 | % |
| Net Operating Income                                       |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                   |   | $              | 32,709    |   |   |   | 24.1 | % |   | $ | 34,523 |   |   |   | 25.2 | % |   |   | 34,317 |   |   |   | 25.4 | % |
| Commercial Office                                          |   |           | 41,692    |   |   |   | 30.8 | % |   |   | 45,246 |   |   |   | 33.0 | % |   |   | 45,802 |   |   |   | 33.8 | % |
| Commercial Medical                                         |   |           | 43,582    |   |   |   | 32.2 | % |   |   | 39,535 |   |   |   | 28.9 | % |   |   | 36,501 |   |   |   | 27.0 | % |
| Commercial Industrial                                      |   |           | 8,837     |   |   |   | 6.5 | % |   |   | 8,974 |   |   |   | 6.6 | % |   |   | 9,346 |   |   |   | 6.9 | % |
| Commercial Retail                                          |   |           | 8,664     |   |   |   | 6.4 | % |   |   | 8,602 |   |   |   | 6.3 | % |   |   | 9,338 |   |   |   | 6.9 | % |
| Total                                                      |   | $              | 135,484   |   |   |   | 100.0 | % |   | $ | 136,880 |   |   |   | 100.0 | % |   | $ | 135,304 |   |   |   | 100.0 | % |

Index

----

| Fiscal Year of Lease Expiration |   | Square Footage of Expiring Leases |       |   | Percentage of Total Commercial SegmentsLeased Square Footage |   |   | Annualized BaseRent of ExpiringLeases at Expiration |   |   | Percentage of Total Commercial SegmentsAnnualized Base Rent |   |
|---------------------------------|--------|----------------------------------------|------------|--------|-------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|
| 2012                            |   |                                   | 1,991,437  |   |                                                              |   | 19.1   | %                                                   |   | $      | 16,234,582                                                       |   |   |   | 13.3 | % |
| 2013                            |   |                                   | 871,687    |   |                                                              |   | 8.4    | %                                                   |   |   | 10,734,839                                                       |   |   |   | 8.8 | % |
| 2014                            |   |                                   | 1,355,201  |   |                                                              |   | 13.0   | %                                                   |   |   | 17,219,669                                                       |   |   |   | 14.1 | % |
| 2015                            |   |                                   | 845,870    |   |                                                              |   | 8.1    | %                                                   |   |   | 9,831,246                                                        |   |   |   | 8.0 | % |
| 2016                            |   |                                   | 1,354,079  |   |                                                              |   | 13.0   | %                                                   |   |   | 13,754,067                                                       |   |   |   | 11.3 | % |
| 2017                            |   |                                   | 1,077,571  |   |                                                              |   | 10.4   | %                                                   |   |   | 13,534,579                                                       |   |   |   | 11.1 | % |
| 2018                            |   |                                   | 317,263    |   |                                                              |   | 3.1    | %                                                   |   |   | 5,328,258                                                        |   |   |   | 4.4 | % |
| 2019                            |   |                                   | 547,109    |   |                                                              |   | 5.3    | %                                                   |   |   | 7,277,682                                                        |   |   |   | 5.9 | % |
| 2020                            |   |                                   | 327,955    |   |                                                              |   | 3.2    | %                                                   |   |   | 4,261,677                                                        |   |   |   | 3.5 | % |
| 2021                            |   |                                   | 326,605    |   |                                                              |   | 3.1    | %                                                   |   |   | 3,923,576                                                        |   |   |   | 3.2 | % |
| Thereafter                      |   |                                   | 1,386,570  |   |                                                              |   | 13.3   | %                                                   |   |   | 20,071,153                                                       |   |   |   | 16.4 | % |
| Totals                          |   |                                   | 10,401,347 |   |                                                              |   | 100.0  | %                                                   |   | $      | 122,171,328                                                      |   |   |   | 100.0 | % |

|                                               | (in thousands)                                                        |
|----------------------------------------------------|-----------------------------------------------------------------------|
| Lessee                                             | % of Total Commercial Segments MinimumRents as of April 30, 2011 |
| Affiliates of Edgewood Vista                       | 10.8%                                                                 |
| St. Lukes Hospital of Duluth, Inc.                 | 3.5%                                                                  |
| Fairview Health Services                           | 3.1%                                                                  |
| Applied Underwriters                               | 2.3%                                                                  |
| Affiliates of Siemens USA                          | 2.1%                                                                  |
| HealthEast Care System                             | 1.7%                                                                  |
| Microsoft (NASDAQ: MSFT)                           | 1.4%                                                                  |
| Smurfit - Stone Container (NASDAQ: SSCC)           | 1.4%                                                                  |
| Nebraska Orthopaedic Hospital                      | 1.3%                                                                  |
| Arcadis Corporate Services, Inc.                   | 1.2%                                                                  |
| All Others                                         | 71.2%                                                                 |
| Total Monthly Commercial Rent as of April 30, 2011 | 100.0%                                                                |

Index

----

|                                                               |   | (in thousands) |   |
|--------------------------------------------------------------------|--------|----------------|--------|
| Acquisitions                                                       |   | Land           |   |   | Building |   |   | IntangibleAssets |   |   | AcquisitionCost |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                           |   |           |   |   |   |   |   |   |   |   |   |   |
| 24 unit - North Pointe 2 - Bismarck, ND                            |   | $              | 159    |   |   | $ | 1,713 |   |   | $ | 0 |   |   | $ | 1,872 |   |
| 44 unit - Sierra Vista - Sioux Falls, SD                           |   |           | 241    |   |   |   | 2,097 |   |   |   | 0 |   |   |   | 2,338 |   |
|                                                               |   |           | 400    |   |   |   | 3,810 |   |   |   | 0 |   |   |   | 4,210 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Office                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 58,574 sq. ft. Omaha 10802 Farnam Dr - Omaha, NE                   |   |           | 2,462  |   |   |   | 4,374 |   |   |   | 1,459 |   |   |   | 8,295 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                                 |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 14,705 sq. ft. Billings 2300 Grant Road - Billings, MT             |   |           | 649    |   |   |   | 1,216 |   |   |   | 657 |   |   |   | 2,522 |   |
| 14,640 sq. ft. Missoula 3050 Great Northern - Missoula, MT         |   |           | 640    |   |   |   | 1,331 |   |   |   | 752 |   |   |   | 2,723 |   |
| 108,503 sq. ft. Edgewood Vista Minot - Minot, ND                   |   |           | 1,046  |   |   |   | 11,590 |   |   |   | 2,545 |   |   |   | 15,181 |   |
| 23,965 sq. ft. Edgewood Vista Spearfish Expansion - Spearfish, SD1 |   |           | 0      |   |   |   | 2,777 |   |   |   | 0 |   |   |   | 2,777 |   |
|                                                               |   |           | 2,335  |   |   |   | 16,914 |   |   |   | 3,954 |   |   |   | 23,203 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Industrial                                              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 42,244 sq. ft. Fargo 1320 45th St N - Fargo, ND2                   |   |           | 0      |   |   |   | 1,634 |   |   |   | 0 |   |   |   | 1,634 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Retail                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 47,709 sq. ft. Minot 1400 31st Ave - Minot, ND                     |   |           | 1,026  |   |   |   | 6,143 |   |   |   | 1,081 |   |   |   | 8,250 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Property Acquisitions                                        |   | $              | 6,223  |   |   | $ | 32,875 |   |   | $ | 6,494 |   |   | $ | 45,592 |   |

| (1) | Expansion project placed in service January 10, 2011. Approximately $497,000 of this cost was incurred in the three months ended April 30, 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Development property placed in service June 22, 2010. Additional costs incurred in fiscal year 2010 totaled $2.3 million, for a total project cost at April 30, 2011 of $3.9 million. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|                                                                        |   | (in thousands) |   |
|-----------------------------------------------------------------------------|--------|----------------|--------|
| Acquisitions                                                                |   | Land           |   |   | Building |   |   | IntangibleAssets |   |   | AcquisitionCost |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                                    |   |           |   |   |   |   |   |   |   |   |   |   |
| 16-unit Northern Valley Apartments - Rochester, MN                          |   | $              | 110    |   |   | $ | 610 |   |   | $ | 0 |   |   | $ | 720 |   |
| 48-unit Crown Apartments - Rochester, MN                                    |   |           | 261    |   |   |   | 3,289 |   |   |   | 0 |   |   |   | 3,550 |   |
|                                                                        |   |           | 371    |   |   |   | 3,899 |   |   |   | 0 |   |   |   | 4,270 |   |
| Commercial Office                                                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 15,000 sq. ft. Minot 2505 16th Street SW - Minot, ND                        |   |           | 372    |   |   |   | 1,724 |   |   |   | 304 |   |   |   | 2,400 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 65,160 sq. ft. Casper 1930 E. 12th Street (Park Place) - Casper, WY         |   |           | 439    |   |   |   | 5,780 |   |   |   | 1,120 |   |   |   | 7,339 |   |
| 35,629 sq. ft. Casper 3955 E. 12th Street (Meadow Wind) - Casper, WY        |   |           | 338    |   |   |   | 5,881 |   |   |   | 1,120 |   |   |   | 7,339 |   |
| 47,509 sq. ft. Cheyenne 4010 N. College Drive (Aspen Wind) - Cheyenne, WY   |   |           | 628    |   |   |   | 9,869 |   |   |   | 1,960 |   |   |   | 12,457 |   |
| 54,072 sq. ft. Cheyenne 4606 N. College Drive (Sierra Hills) - Cheyenne, WY |   |           | 695    |   |   |   | 7,455 |   |   |   | 1,410 |   |   |   | 9,560 |   |
| 35,629 sq. ft. Laramie 1072 N. 22nd Street (Spring Wind) - Laramie, WY      |   |           | 406    |   |   |   | 6,634 |   |   |   | 1,265 |   |   |   | 8,305 |   |
|                                                                        |   |           | 2,506  |   |   |   | 35,619 |   |   |   | 6,875 |   |   |   | 45,000 |   |
| Commercial Industrial                                                       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 42,180 sq. ft. Clive 2075 NW 94th Street - Clive, IA                        |   |           | 408    |   |   |   | 2,610 |   |   |   | 332 |   |   |   | 3,350 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unimproved Land                                                             |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fargo 1320 45th Street N. - Fargo, ND                                       |   |           | 395    |   |   |   | 0 |   |   |   | 0 |   |   |   | 395 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Property Acquisitions                                                 |   | $              | 4,052  |   |   | $ | 43,852 |   |   | $ | 7,511 |   |   | $ | 55,415 |   |

Index

----

|                                                      |   | (in thousands) |   |
|-----------------------------------------------------------|--------|----------------|--------|
| Dispositions                                              |   | Sales Price    |   |   | Book Valueand Sales Cost |   |   | Gain/(Loss) |   |
|                                                      |   |           |   |   |   |   |   |   |   |
| Multi-Family Residential                                  |   |           |   |   |   |   |   |   |   |
| 504 unit - Dakota Hill at Valley Ranch - Irving, TX       |   | $              | 36,100 |   |   | $ | 30,909 |   |   | $ | 5,191 |   |
| 192 unit - Neighborhood Apartments - Colorado Springs, CO |   |           | 11,200 |   |   |   | 9,664 |   |   |   | 1,536 |   |
| 195 unit - Pinecone Apartments - Fort Collins, CO         |   |           | 15,875 |   |   |   | 10,422 |   |   |   | 5,453 |   |
| 210 unit - Miramont Apartments - Fort Collins, CO         |   |           | 17,200 |   |   |   | 10,732 |   |   |   | 6,468 |   |
|                                                      |   |           | 80,375 |   |   |   | 61,727 |   |   |   | 18,648 |   |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                        |   |           |   |   |   |   |   |   |   |   |   |   |
| 1,410 sq. ft. Edgewood Vista Patio Home 4330 - Fargo, ND  |   |           | 205    |   |   |   | 220 |   |   |   | (15 | ) |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Industrial                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| 29,440 sq. ft. Waconia Industrial Building - Waconia, MN  |   |           | 2,300  |   |   |   | 1,561 |   |   |   | 739 |   |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Retail                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| 41,000 sq. ft. Ladysmith Pamida - Ladysmith, WI           |   |           | 450    |   |   |   | 457 |   |   |   | (7 | ) |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Total Property Dispositions                               |   | $              | 83,330 |   |   | $ | 63,965 |   |   | $ | 19,365 |   |

|                                                                  |   | (in thousands) |   |
|-----------------------------------------------------------------------|--------|----------------|--------|
| Dispositions                                                          |   | Sales Price    |   |   | Book Valueand Sales Cost |   |   | Gain/(Loss) |   |
|                                                                  |   |           |   |   |   |   |   |   |   |
| Multi-Family Residential42 unit - Sweetwater Apartments - Grafton, ND |   | $              | 450    |   |   | $ | 382 |   |   | $ | 68 |   |
|                                                                  |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Office                                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| 10,126 sq. ft. 12 South Main - Minot, ND                              |   |           | 110    |   |   |   | 110 |   |   |   | 0 |   |
|                                                                  |   |           |   |   |   |   |   |   |   |   |   |   |
| Total Property Dispositions                                           |   | $              | 560    |   |   | $ | 492 |   |   | $ | 68 |   |

Index

----

|                                                        |   | (in thousands, except per share and unit amounts) |    |
|-------------------------------------------------------------|--------|---------------------------------------------------|---------|
| Fiscal Years Ended April 30,                                |   | 2011                                              |    |   | 2010 |   |   | 2009 |   |
|                                                        |   | Amount                                            |    |   | Weighted Avg Shares and Units(2) |   |   | Per Share and Unit(3) |   |   | Amount |   |   | Weighted Avg Shares and Units(2) |   |   | Per Share and Unit(3) |   |   | Amount |   |   | Weighted Avg Shares and Units(2) |   |   | PerShareandUnit(3) |   |
|                                                        |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to Investors Real Estate Trust      |   | $                                                 | 20,082  |   |   |   |   |   | $ |   |   |   | $ | 4,001 |   |   |   |   |   | $ |   |   |   | $ | 8,526 |   |   |   |   |   | $ |   |   |
| Less dividends to preferred shareholders                    |   |                                              | (2,372  | ) |   |   |   |   |   |   |   |   |   | (2,372 | ) |   |   |   |   |   |   |   |   |   | (2,372 | ) |   |   |   |   |   |   |   |
| Net income available to common shareholders                 |   |                                              | 17,710  |   |   |   | 78,628 |   |   |   | 0.22 |   |   |   | 1,629 |   |   |   | 69,093 |   |   |   | 0.03 |   |   |   | 6,154 |   |   |   | 58,603 |   |   |   | 0.11 |   |
| Adjustments:                                                |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling interests – Operating Partnership      |   |                                              | 4,449   |   |   |   | 20,154 |   |   |   |   |   |   |   | 562 |   |   |   | 20,825 |   |   |   |   |   |   |   | 2,227 |   |   |   | 21,217 |   |   |   |   |   |
| Depreciation and amortization(1)                            |   |                                              | 59,402  |   |   |   |   |   |   |   |   |   |   |   | 59,383 |   |   |   |   |   |   |   |   |   |   |   | 56,295 |   |   |   |   |   |   |   |   |   |
| Gains on depreciable property sales                         |   |                                              | (19,365 | ) |   |   |   |   |   |   |   |   |   |   | (68 | ) |   |   |   |   |   |   |   |   |   |   | (54 | ) |   |   |   |   |   |   |   |   |
| Funds from operations applicable to common shares and Units |   | $                                                 | 62,196  |   |   |   | 98,782 |   |   | $ | 0.63 |   |   | $ | 61,506 |   |   |   | 89,918 |   |   | $ | 0.69 |   |   | $ | 64,622 |   |   |   | 79,820 |   |   | $ | 0.81 |   |

| (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 Consolidated Statements of Operations, totaling $58,528, $57,455 and $54,434 and depreciation/amortization from Discontinued Operations of $1,146, $2,308 and $2,280, less corporate-related depreciation and amortization on office equipment and other assets of $272, $380 and $419 for the fiscal year ended April 30, 2011, 2010 and 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|-------------------------------------------------------------------------------------------------|

Index

----

|     |   | Fiscal Years |   |
|----------|--------|--------------|--------|
| Quarters |   | 2011         |   |   | 2010 |   |   | 2009 |   |
| First    |   | $            | .1715  |   |   | $ | .1705 |   |   | $ | .1685 |   |
| Second   |   |         | .1715  |   |   |   | .1710 |   |   |   | .1690 |   |
| Third    |   |         | .1715  |   |   |   | .1715 |   |   |   | .1695 |   |
| Fourth   |   |         | .1715  |   |   |   | .1715 |   |   |   | .1700 |   |
|     |   | $            | .6860  |   |   | $ | .6845 |   |   | $ | .6770 |   |

Index

----

Index

----

Index

----

Index

----

|                                    |   | (in thousands) |      |
|-----------------------------------------|--------|----------------|-----------|
|                                    |   | Total          |      |   | Less Than1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More than5 Years |   |
| Long-term debt (principal and interest) |   | $              | 1,346,133 |   |   | $ | 116,388 |   |   | $ | 220,952 |   |   | $ | 257,208 |   |   | $ | 751,585 |   |
| Line of credit(1)                       |   | $              | 30,000    |   |   | $ | 0 |   |   | $ | 30,000 |   |   | $ | 0 |   |   | $ | 0 |   |
| Other Debt (principal and interest)     |   | $              | 12,649    |   |   | $ | 543 |   |   | $ | 1,162 |   |   | $ | 1,150 |   |   | $ | 9,794 |   |
| Operating Lease Obligations             |   | $              | 24,960    |   |   | $ | 501 |   |   | $ | 999 |   |   | $ | 974 |   |   | $ | 22,486 |   |
| Purchase Obligations                    |   | $              | 5,125     |   |   | $ | 5,125 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |

| (1) | Amount includes principal payments only. The Company will pay interest on outstanding indebtedness based on the rates and terms summarized in Note 7 to the Consolidated Financial Statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

Index

----

|                           |   | Future Principal Payments (in thousands) |   |
|--------------------------------|--------|------------------------------------------|--------|
| Long Term Debt                 |   | 2012                                     |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | 2016 |   |   | Thereafter |   |   | Total |   |   | Fair Value |   |
| Fixed Rate                     |   | $                                        | 58,460 |   |   | $ | 49,912 |   |   | $ | 64,688 |   |   | $ | 92,476 |   |   | $ | 77,695 |   |   | $ | 649,046 |   |   | $ | 992,277 |   |   | $ | 1,012,187 |   |
| Average Fixed Interest Rate    |   |                                     | 5.80   | % |   |   | 5.82 | % |   |   | 5.78 | % |   |   | 5.65 | % |   |   | 5.58 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable Rate                  |   | $                                        | 281    |   |   | $ | 180 |   |   | $ | 666 |   |   | $ | 72 |   |   | $ | 76 |   |   | $ | 251 |   |   | $ | 1,526 |   |   | $ | 1,526 |   |
| Average Variable Interest Rate |   |                                     | 4.42   | % |   |   | 4.61 | % |   |   | 3.04 | % |   |   | 5.59 | % |   |   | 5.46 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |                                     | $      | 993,803 |   |   | $ | 1,013,713 |   |

|           | Future Interest Payments (in thousands) |   |
|----------------|-----------------------------------------|--------|
| Long Term Debt |                                    | 2012   |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | 2016 |   |   | Thereafter |   |   | Total |   |
| Fixed Rate     |                                    | $      | 57,580 |   |   | $ | 54,364 |   |   | $ | 51,052 |   |   | $ | 46,284 |   |   | $ | 40,565 |   |   | $ | 102,264 |   |   | $ | 352,109 |   |
| Variable Rate  |                                    |   | 67 |   |   |   | 58 |   |   |   | 32 |   |   |   | 22 |   |   |   | 18 |   |   |   | 24 |   |   |   | 221 |   |
|           |                                    |   | $ | 352,330 |   |

|   | Item 9. Changes in and Disagreements with Accountants on Accounting andFinancial Disclosure |
|--------|---------------------------------------------------------------------------------------------|

Index

----

|   | (The remainder of this page has been intentionally left blank.) |
|--------|-----------------------------------------------------------------|

Index

----

| Equity Compensation Plan Information                       |
|------------------------------------------------------------|
| Plan category                                              | Number of securities to beissued upon exercise ofoutstanding options,warrants and rights(a) | Weighted-averageexercise price ofoutstanding options,warrants and rights(b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflectedin column (a))(c) |
| Equity compensation plans approved by security holders(1)  | 0 | 0 | 1,953,379(2) |
| Equity compensation plans not approved by security holders | 0 | 0 | 0 |
| Total                                                      | 0 | 0 | 1,953,379 |

| (1)   | The 2008 Incentive Award Plan of Investors Real Estate Trust and IRET Properties approved by shareholders on September 16, 2008. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (2)   | All of the shares available for future issuance under the 2008 Incentive Award Plan approved by shareholders may be issued as restricted shares or performance shares. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

| (a) | The following documents are filed as part of this report: |
|-----|-----------------------------------------------------------|

|   | 1. Financial Statements |
|--------|-------------------------|

|   | 2. Financial Statement Schedules |
|--------|----------------------------------|

|   | 3. Exhibits |
|--------|-------------|

| (b) | The following is a list of Exhibits to this Annual Report on Form 10-K. We will furnish a copy of any exhibit listed below to any security holder who requests it upon payment of a fee of 15 cents per page. All Exhibits are either contained in this Annual Report on Form 10-K or are incorporated by reference as indicated below. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | Articles of Amendment and Third Restated Declaration of Trust ofInvestors Real Estate Trust, dated September 23, 2003, and incorporated herein by reference to Exhibit A to the Company’s Definitive Proxy Statement on Schedule 14A for the 2003 Annual Meeting of Shareholders, filed with the SEC on August 13, 2003. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Third Restated Trustees’ Regulations (Bylaws), dated May 16, 2007, and incorporated herein by reference to the Company’s Current Report on Form 8-K , filed with the SEC on May 16, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Agreement of Limited Partnership of IRET Properties, A North DakotaLimited Partnership, dated January 31, 1997, filed as Exhibit 3(ii) to the Registration Statement on Form S-11, effective March 14, 1997 (SEC File No. 333-21945) filed for the Registrant on February 18, 1997 (File No. 0-14851), and incorporated herein by reference. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Articles Supplementary classifying and designating 8.25% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, filed as Exhibit 3.2 to the Company’s Form 8-A filed on April 22, 2004, and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Loan Agreement dated August 12, 2010 by and among IRET Properties, as borrower, the financial institutions party thereto as lenders, and First International Bank & Trust as lender and lead bank, incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the SEC on August 18, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Member Control and Operating Agreement dated September 30, 2002, filed as Exhibit 10 to the Company’s Form 8-K filed October 15, 2003, and incorporated herein by reference. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Letter Agreement dated January 31, 2003, filed as Exhibit 10(i) to the Company’s Form 8-K filed February 27, 2003, and incorporated herein by reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Option Agreement dated January 31, 2003, filed as Exhibit 10(ii) to the Company’s Form 8-K filed February 27, 2003, and incorporated herein by reference. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

| 10.4 | Financial Statements of T.F. James Company filed as Exhibit 10 to the Company’s Form 8-K filed January 31, 2003, and incorporated herein by reference. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Agreement for Purchase and Sale of Property dated February 13, 2004, by and between IRET Properties and the Sellers specified therein, filed as Exhibit 10.5 to the Company’s Form 10-K filed July 20, 2004, and incorporated herein by reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 11, 2005, and incorporated herein by reference. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed December 12, 2005, and incorporated herein by reference. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Contribution Agreement, filed as Exhibit 10.1 to the Company’s Form 8-K filed May 17, 2006, and incorporated herein by reference. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 10.9* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed September 11, 2006, and incorporated herein by reference. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | Loan and Security Agreement, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 18, 2006, and incorporated herein by reference. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 12, 2007, and incorporated herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 11, 2008, and incorporated herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 12, 2009, and incorporated herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed December 10, 2007, and incorporated herein by reference. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed September 9, 2009, and incorporated herein by reference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed December 10, 2009, and incorporated herein by reference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 14, 2011, and incorporated herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed September 9, 2010, and incorporated herein by reference. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1 | Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Dividends, filed herewith. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 21.1 | Subsidiaries of Investors Real Estate Trust, filed herewith. |
|------|--------------------------------------------------------------|

| 23.1 | Consent of Independent Registered Public Accounting Firm, filed herewith. |
|------|---------------------------------------------------------------------------|

| 31.1 | Section 302 Certification of President and Chief Executive Officer, filed herewith. |
|------|-------------------------------------------------------------------------------------|

| 31.2 | Section 302 Certification of Senior Vice President and ChiefFinancial Officer, filed herewith. |
|------|------------------------------------------------------------------------------------------------|

| 32.1 | Section 906 Certification of the President and Chief ExecutiveOfficer, filed herewith. |
|------|----------------------------------------------------------------------------------------|

| 32.2 | Section 906 Certification of the Senior Vice President and ChiefFinancial Officer, filed herewith. |
|------|----------------------------------------------------------------------------------------------------|

| * | Indicates management compensatory plan, contract or arrangement. |
|---|------------------------------------------------------------------|

Index

----

| Date: July 14, 2011 | Investors Real Estate Trust |
|---------------------|-----------------------------|
|                |                        |   |
|                | By:                         | /s/ Timothy P. Mihalick |
|                |                        | Timothy P. Mihalick |
|                |                        | President & Chief Executive Officer |

| Signature                      |   | Title                                                                                            |   | Date          |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|---------------|
|                           |   |                                                                                             |   |          |
| /s/ Jeffrey L. Miller          |   |                                                                                             |   |          |
| Jeffrey L. Miller              |   | Trustee & Chairman                                                                           |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Stephen L. Stenehjem       |   |                                                                                             |   |          |
| Stephen L. Stenehjem           |   | Trustee & Vice Chairman                                                                      |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Timothy P. Mihalick        |   |                                                                                             |   |          |
| Timothy P. Mihalick            |   | President & Chief Executive Officer(Principal Executive Officer); Trustee                    |   | July 14, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Thomas A. Wentz, Jr.       |   |                                                                                             |   |          |
| Thomas A. Wentz, Jr.           |   | Trustee and Chief Operating Officer                                                              |   | July 14, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Diane K. Bryantt           |   |                                                                                             |   |          |
| Diane K. Bryantt               |   | Senior Vice President & Chief Financial Officer (Principal Financial and Accounting Officer) |   | July 14, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Edward T. Schafer          |   |                                                                                             |   |          |
| Edward T. Schafer              |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ John D. Stewart            |   |                                                                                             |   |          |
| John D. Stewart                |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/                            |   |                                                                                             |   |          |
| Patrick G. Jones               |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/                            |   |                                                                                             |   |          |
| C.W. “Chip” Morgan |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ John T. Reed               |   |                                                                                             |   |          |
| John T. Reed                   |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ W. David Scott             |   |                                                                                             |   |          |
| W. David Scott                 |   | Trustee                                                                                          |   | June 22, 2011 |
|                           |   |                                                                                             |   |          |
| /s/ Jeffrey K. Woodbury        |   |                                                                                             |   |          |
| Jeffrey K. Woodbury            |   | Trustee                                                                                          |   | June 22, 2011 |

Index

----

----

TABLE OF CONTENTS

|                                                       | PAGE             |
|------------------------------------------------------------|------------------|
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    | F-2              |
| CONSOLIDATED FINANCIAL STATEMENTS                          |             |
| Consolidated Balance Sheets                                | F-4              |
| Consolidated Statements of Operations                      | F-5              |
| Consolidated Statements of Equity                          | F-6              |
| Consolidated Statements of Cash Flows                      | F-7 – F-8  |
| Notes to Consolidated Financial Statements                 | F-9 – F-33 |
| ADDITIONAL INFORMATION                                     |             |
| Schedule III - Real Estate and Accumulated Depreciation    | F-34-44          |
| Schedule IV - Investments in Mortgage Loans on Real Estate | F-45             |

Table of Contents

----

Table of Contents

----

Table of Contents

----

|                                                                                                                                                                                                                          |   | (in thousands) |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                                                                                                                                                                          |   | April 30, 2011 |      |   | April 30, 2010 |   |
| ASSETS                                                                                                                                                                                                                        |   |           |      |   |   |   |
| Real estate investments                                                                                                                                                                                                       |   |           |      |   |   |   |
| Property owned                                                                                                                                                                                                                |   | $              | 1,770,798 |   |   | $ | 1,800,519 |   |
| Less accumulated depreciation                                                                                                                                                                                                 |   |           | (328,952  | ) |   |   | (308,626 | ) |
|                                                                                                                                                                                                                          |   |           | 1,441,846 |   |   |   | 1,491,893 |   |
| Development in progress                                                                                                                                                                                                       |   |           | 9,693     |   |   |   | 2,831 |   |
| Unimproved land                                                                                                                                                                                                               |   |           | 6,550     |   |   |   | 6,007 |   |
| Mortgage loans receivable, net of allowance of $3 and $3, respectively                                                                                                                                                        |   |           | 156       |   |   |   | 158 |   |
| Total real estate investments                                                                                                                                                                                                 |   |           | 1,458,245 |   |   |   | 1,500,889 |   |
| Other assets                                                                                                                                                                                                                  |   |           |      |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                     |   |           | 41,191    |   |   |   | 54,791 |   |
| Marketable securities – available-for-sale                                                                                                                                                                              |   |           | 625       |   |   |   | 420 |   |
| Receivable arising from straight-lining of rents, net of allowance of $996 and $912, respectively                                                                                                                             |   |           | 18,933    |   |   |   | 17,320 |   |
| Accounts receivable, net of allowance of $317 and $257, respectively                                                                                                                                                          |   |           | 5,646     |   |   |   | 4,916 |   |
| Real estate deposits                                                                                                                                                                                                          |   |           | 329       |   |   |   | 516 |   |
| Prepaid and other assets                                                                                                                                                                                                      |   |           | 2,351     |   |   |   | 1,189 |   |
| Intangible assets, net of accumulated amortization of $42,154 and $39,571, respectively                                                                                                                                       |   |           | 49,832    |   |   |   | 50,700 |   |
| Tax, insurance, and other escrow                                                                                                                                                                                              |   |           | 15,268    |   |   |   | 9,301 |   |
| Property and equipment, net of accumulated depreciation of $1,231 and $924, respectively                                                                                                                                      |   |           | 1,704     |   |   |   | 1,392 |   |
| Goodwill                                                                                                                                                                                                                      |   |           | 1,127     |   |   |   | 1,388 |   |
| Deferred charges and leasing costs, net of accumulated amortization of $13,675 and $13,131, respectively                                                                                                                      |   |           | 20,112    |   |   |   | 18,108 |   |
| TOTAL ASSETS                                                                                                                                                                                                                  |   | $              | 1,615,363 |   |   | $ | 1,660,930 |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                        |   |           |      |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                   |   |           |      |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                         |   | $              | 37,879    |   |   | $ | 38,514 |   |
| Revolving lines of credit                                                                                                                                                                                                     |   |           | 30,000    |   |   |   | 6,550 |   |
| Mortgages payable                                                                                                                                                                                                             |   |           | 993,803   |   |   |   | 1,057,619 |   |
| Other                                                                                                                                                                                                                         |   |           | 8,404     |   |   |   | 1,320 |   |
| TOTAL LIABILITIES                                                                                                                                                                                                             |   |           | 1,070,086 |   |   |   | 1,104,003 |   |
| COMMITMENTS AND CONTINGENCIES (NOTE 15)                                                                                                                                                                                       |   |           |      |   |   |   |   |   |
| REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES                                                                                                                                                 |   |           | 987       |   |   |   | 1,812 |   |
| EQUITY                                                                                                                                                                                                                        |   |           |      |   |   |   |   |   |
| Investors Real Estate Trust shareholder’s equity                                                                                                                                                                        |   |           |      |   |   |   |   |   |
| Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, 1,150,000 shares issued and outstanding at April 30, 2011 and April 30, 2010, aggregate liquidation preference of $28,750,000) |   |           | 27,317    |   |   |   | 27,317 |   |
| Common Shares of Beneficial Interest (Unlimited authorization, no par value, 80,523,265 shares issued and outstanding at April 30, 2011, and 75,805,159 shares issued and outstanding at April 30, 2010)                      |   |           | 621,936   |   |   |   | 583,618 |   |
| Accumulated distributions in excess of net income                                                                                                                                                                             |   |           | (237,563  | ) |   |   | (201,412 | ) |
| Total Investors Real Estate Trust shareholders’ equity                                                                                                                                                                  |   |           | 411,690   |   |   |   | 409,523 |   |
| Noncontrolling interests – Operating Partnership (20,067,350 units at April 30, 2011 and 20,521,365 units at April 30, 2010)                                                                                            |   |           | 123,627   |   |   |   | 134,970 |   |
| Noncontrolling interests – consolidated real estate entities                                                                                                                                                            |   |           | 8,973     |   |   |   | 10,622 |   |
| Total equity                                                                                                                                                                                                                  |   |           | 544,290   |   |   |   | 555,115 |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                                                                  |   | $              | 1,615,363 |   |   | $ | 1,660,930 |   |

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|                                                                                                                        |   | (in thousands, except per share data) |    |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                                                        |   | 2011                                  |    |   | 2010 |   |   | 2009 |   |
| REVENUE                                                                                                                     |   |                                  |    |   |   |   |   |   |   |
| Real estate rentals                                                                                                         |   | $                                     | 192,400 |   |   | $ | 186,517 |   |   | $ | 183,349 |   |
| Tenant reimbursement                                                                                                        |   |                                  | 45,007  |   |   |   | 44,994 |   |   |   | 45,167 |   |
| TOTAL REVENUE                                                                                                               |   |                                  | 237,407 |   |   |   | 231,511 |   |   |   | 228,516 |   |
| EXPENSES                                                                                                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Depreciation/amortization related to real estate investments                                                                |   |                                  | 55,849  |   |   |   | 55,093 |   |   |   | 52,374 |   |
| Utilities                                                                                                                   |   |                                  | 18,238  |   |   |   | 17,101 |   |   |   | 18,112 |   |
| Maintenance                                                                                                                 |   |                                  | 29,240  |   |   |   | 26,972 |   |   |   | 26,431 |   |
| Real estate taxes                                                                                                           |   |                                  | 30,852  |   |   |   | 30,210 |   |   |   | 29,077 |   |
| Insurance                                                                                                                   |   |                                  | 2,304   |   |   |   | 3,615 |   |   |   | 2,864 |   |
| Property management expenses                                                                                                |   |                                  | 21,289  |   |   |   | 18,393 |   |   |   | 16,728 |   |
| Administrative expenses                                                                                                     |   |                                  | 6,617   |   |   |   | 5,716 |   |   |   | 4,430 |   |
| Advisory and trustee services                                                                                               |   |                                  | 605     |   |   |   | 502 |   |   |   | 452 |   |
| Other expenses                                                                                                              |   |                                  | 1,774   |   |   |   | 2,513 |   |   |   | 1,440 |   |
| Amortization related to non-real estate investments                                                                         |   |                                  | 2,679   |   |   |   | 2,362 |   |   |   | 2,060 |   |
| Impairment of real estate investments                                                                                       |   |                                  | 0       |   |   |   | 708 |   |   |   | 0 |   |
| TOTAL EXPENSES                                                                                                              |   |                                  | 169,447 |   |   |   | 163,185 |   |   |   | 153,968 |   |
| Gain on involuntary conversion                                                                                              |   |                                  | 0       |   |   |   | 1,660 |   |   |   | 0 |   |
| Interest expense                                                                                                            |   |                                  | (64,021 | ) |   |   | (65,665 | ) |   |   | (65,014 | ) |
| Interest income                                                                                                             |   |                                  | 259     |   |   |   | 539 |   |   |   | 599 |   |
| Other income                                                                                                                |   |                                  | 282     |   |   |   | 355 |   |   |   | 314 |   |
| Income from continuing operations                                                                                           |   |                                  | 4,480   |   |   |   | 5,215 |   |   |   | 10,447 |   |
| Income (loss) from discontinued operations                                                                                  |   |                                  | 19,871  |   |   |   | (630 | ) |   |   | 266 |   |
| NET INCOME                                                                                                                  |   |                                  | 24,351  |   |   |   | 4,585 |   |   |   | 10,713 |   |
| Net income attributable to noncontrolling interests – Operating Partnership                                           |   |                                  | (4,449  | ) |   |   | (562 | ) |   |   | (2,227 | ) |
| Net loss (income) attributable to noncontrolling interests – consolidated real estate entities                        |   |                                  | 180     |   |   |   | (22 | ) |   |   | 40 |   |
| Net income attributable to Investors Real Estate Trust                                                                      |   |                                  | 20,082  |   |   |   | 4,001 |   |   |   | 8,526 |   |
| Dividends to preferred shareholders                                                                                         |   |                                  | (2,372  | ) |   |   | (2,372 | ) |   |   | (2,372 | ) |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS                                                                                 |   | $                                     | 17,710  |   |   | $ | 1,629 |   |   | $ | 6,154 |   |
| Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted          |   | $                                     | .02     |   |   | $ | .04 |   |   | $ | .10 |   |
| Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic and diluted |   |                                  | .20     |   |   |   | (.01 | ) |   |   | .01 |   |
| NET INCOME PER COMMON SHARE – BASIC & DILUTED                                                                     |   | $                                     | .22     |   |   | $ | .03 |   |   | $ | .11 |   |
| DIVIDENDS PER COMMON SHARE                                                                                                  |   | $                                     | .6860   |   |   | $ | .6845 |   |   | $ | .6770 |   |

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|                                                                                              |   | (in thousands)           |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                              |   | NUMBER OFPREFERREDSHARES |   |   | PREFERREDSHARES |   |   | NUMBER OFCOMMONSHARES |   |   | COMMONSHARES |   |   | ACCUMULATEDDISTRIBUTIONS IN EXCESS OF NET INCOME |   |   | NONCONTROLLING INTERESTS |   |   | TOTALEQUITY |   |
| BALANCE APRIL 30, 2008                                                                            |   |                     | 1,150  |   |   | $ | 27,317 |   |   |   | 57,732 |   |   | $ | 439,255 |   |   | $ | (122,498 | ) |   | $ | 173,557 |   |   | $ | 517,631 |   |
| Net income attributable to Investors Real Estate Trust and nonredeemable noncontrolling interests |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,526 |   |   |   | 2,134 |   |   |   | 10,660 |   |
| Distributions - common shares                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (39,612 | ) |   |   | (14,383 | ) |   |   | (53,995 | ) |
| Distributions - preferred shares                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,372 | ) |   |   |   |   |   |   | (2,372 | ) |
| Distribution reinvestment plan                                                                    |   |                     |   |   |   |   |   |   |   |   | 1,186 |   |   |   | 11,385 |   |   |   |   |   |   |   |   |   |   |   | 11,385 |   |
| Shares issued                                                                                     |   |                     |   |   |   |   |   |   |   |   | 641 |   |   |   | 5,978 |   |   |   |   |   |   |   |   |   |   |   | 5,978 |   |
| Partnership units issued                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,730 |   |   |   | 3,730 |   |
| Redemption of units for common shares                                                             |   |                     |   |   |   |   |   |   |   |   | 746 |   |   |   | 5,034 |   |   |   |   |   |   |   | (5,034 | ) |   |   | 0 |   |
| Adjustments to redeemable noncontrolling interests                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   | 6 |   |   |   |   |   |   |   |   |   |   |   | 6 |   |
| Fractional shares repurchased                                                                     |   |                     |   |   |   |   |   |   |   |   | (1 | ) |   |   | (10 | ) |   |   |   |   |   |   |   |   |   |   | (10 | ) |
| Other                                                                                             |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 394 |   |   |   | 394 |   |
| BALANCE APRIL 30, 2009                                                                            |   |                     | 1,150  |   |   | $ | 27,317 |   |   |   | 60,304 |   |   | $ | 461,648 |   |   | $ | (155,956 | ) |   | $ | 160,398 |   |   | $ | 493,407 |   |
| Net income attributable to Investors Real Estate Trust and nonredeemable noncontrolling interests |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,001 |   |   |   | 524 |   |   |   | 4,525 |   |
| Distributions - common shares                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (47,085 | ) |   |   | (14,261 | ) |   |   | (61,346 | ) |
| Distributions - preferred shares                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,372 | ) |   |   |   |   |   |   | (2,372 | ) |
| Distribution reinvestment plan                                                                    |   |                     |   |   |   |   |   |   |   |   | 1,240 |   |   |   | 10,534 |   |   |   |   |   |   |   |   |   |   |   | 10,534 |   |
| Shares issued                                                                                     |   |                     |   |   |   |   |   |   |   |   | 13,555 |   |   |   | 108,421 |   |   |   |   |   |   |   |   |   |   |   | 108,421 |   |
| Partnership units issued                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,897 |   |   |   | 3,897 |   |
| Redemption of units for common shares                                                             |   |                     |   |   |   |   |   |   |   |   | 707 |   |   |   | 3,755 |   |   |   |   |   |   |   | (3,755 | ) |   |   | 0 |   |
| Adjustments to redeemable noncontrolling interests                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   | (192 | ) |   |   |   |   |   |   |   |   |   |   | (192 | ) |
| Fractional shares repurchased                                                                     |   |                     |   |   |   |   |   |   |   |   | (1 | ) |   |   | (11 | ) |   |   |   |   |   |   |   |   |   |   | (11 | ) |
| Other                                                                                             |   |                     |   |   |   |   |   |   |   |   |   |   |   |   | (537 | ) |   |   |   |   |   |   | (1,211 | ) |   |   | (1,748 | ) |
| BALANCE APRIL 30, 2010                                                                            |   |                     | 1,150  |   |   | $ | 27,317 |   |   |   | 75,805 |   |   | $ | 583,618 |   |   | $ | (201,412 | ) |   | $ | 145,592 |   |   | $ | 555,115 |   |
| Net income attributable to Investors Real Estate Trust and nonredeemable noncontrolling interests |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 20,082 |   |   |   | 4,282 |   |   |   | 24,364 |   |
| Distributions - common shares                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (53,861 | ) |   |   | (13,803 | ) |   |   | (67,664 | ) |
| Distributions - preferred shares                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,372 | ) |   |   |   |   |   |   | (2,372 | ) |
| Distribution reinvestment plan                                                                    |   |                     |   |   |   |   |   |   |   |   | 1,334 |   |   |   | 11,373 |   |   |   |   |   |   |   |   |   |   |   | 11,373 |   |
| Shares issued                                                                                     |   |                     |   |   |   |   |   |   |   |   | 2,376 |   |   |   | 19,851 |   |   |   |   |   |   |   |   |   |   |   | 19,851 |   |
| Partnership units issued                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,996 |   |   |   | 4,996 |   |
| Redemption of units for common shares                                                             |   |                     |   |   |   |   |   |   |   |   | 1,009 |   |   |   | 6,905 |   |   |   |   |   |   |   | (6,905 | ) |   |   | 0 |   |
| Adjustments to redeemable noncontrolling interests                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   | 370 |   |   |   |   |   |   |   |   |   |   |   | 370 |   |
| Fractional shares repurchased                                                                     |   |                     |   |   |   |   |   |   |   |   | (1 | ) |   |   | (10 | ) |   |   |   |   |   |   |   |   |   |   | (10 | ) |
| Other                                                                                             |   |                     |   |   |   |   |   |   |   |   |   |   |   |   | (171 | ) |   |   |   |   |   |   | (1,562 | ) |   |   | (1,733 | ) |
| BALANCE APRIL 30, 2011                                                                            |   |                     | 1,150  |   |   | $ | 27,317 |   |   |   | 80,523 |   |   | $ | 621,936 |   |   | $ | (237,563 | ) |   | $ | 132,600 |   |   | $ | 544,290 |   |

Table of Contents

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|                                                                                                                                                   |   | (in thousands) |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------|
|                                                                                                                                                   |   | 2011           |     |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                                   |   |           |     |   |   |   |   |   |   |
| Net Income                                                                                                                                             |   | $              | 24,351   |   |   | $ | 4,585 |   |   | $ | 10,713 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                                                                      |   |           |     |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                                          |   |           | 61,344   |   |   |   | 61,184 |   |   |   | 57,832 |   |
| Gain on sale of real estate, land and other investments                                                                                                |   |           | (19,365  | ) |   |   | (68 | ) |   |   | (54 | ) |
| Gain on involuntary conversion                                                                                                                         |   |           | 0        |   |   |   | (1,660 | ) |   |   | 0 |   |
| Impairment of real estate investments                                                                                                                  |   |           | 0        |   |   |   | 1,678 |   |   |   | 338 |   |
| Donation of real estate investments                                                                                                                    |   |           | 0        |   |   |   | 450 |   |   |   | 0 |   |
| Bad debt expense                                                                                                                                       |   |           | 733      |   |   |   | 1,399 |   |   |   | 2,472 |   |
| Changes in other assets and liabilities:                                                                                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Increase in receivable arising from straight-lining of rents                                                                                           |   |           | (1,732   | ) |   |   | (1,443 | ) |   |   | (2,403 | ) |
| Increase in accounts receivable                                                                                                                        |   |           | (914     | ) |   |   | (3,371 | ) |   |   | (603 | ) |
| Increase in prepaid and other assets                                                                                                                   |   |           | (1,162   | ) |   |   | (138 | ) |   |   | (702 | ) |
| Decrease (increase) in tax, insurance and other escrow                                                                                                 |   |           | 1,469    |   |   |   | (2,040 | ) |   |   | 1,381 |   |
| Increase in deferred charges and leasing costs                                                                                                         |   |           | (6,501   | ) |   |   | (4,731 | ) |   |   | (5,686 | ) |
| Increase (decrease) in accounts payable, accrued expenses and other liabilities                                                                        |   |           | 551      |   |   |   | 5,567 |   |   |   | (3,153 | ) |
| Net cash provided by operating activities                                                                                                              |   |           | 58,774   |   |   |   | 61,412 |   |   |   | 60,135 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                                   |   |           |     |   |   |   |   |   |   |   |   |   |
| Proceeds from real estate deposits                                                                                                                     |   |           | 2,766    |   |   |   | 2,588 |   |   |   | 3,645 |   |
| Payments for real estate deposits                                                                                                                      |   |           | (2,579   | ) |   |   | (3,016 | ) |   |   | (2,354 | ) |
| Principal proceeds on mortgage loans receivable                                                                                                        |   |           | 2        |   |   |   | 2 |   |   |   | 389 |   |
| Proceeds from sale of marketable securities - available-for-sale                                                                                       |   |           | 95       |   |   |   | 0 |   |   |   | 0 |   |
| Purchase of marketable securities - available-for-sale                                                                                                 |   |           | (300     | ) |   |   | 0 |   |   |   | 0 |   |
| Increase in lender holdbacks for improvements                                                                                                          |   |           | (7,436   | ) |   |   | 0 |   |   |   | 0 |   |
| Proceeds from sale of real estate - discontinued operations                                                                                            |   |           | 81,539   |   |   |   | 103 |   |   |   | 68 |   |
| Proceeds from sale of real estate and other investments                                                                                                |   |           | 74       |   |   |   | 40 |   |   |   | 0 |   |
| Insurance proceeds received                                                                                                                            |   |           | 347      |   |   |   | 1,395 |   |   |   | 2,962 |   |
| Payments for acquisitions and improvements of real estate investments                                                                                  |   |           | (62,824  | ) |   |   | (80,069 | ) |   |   | (59,077 | ) |
| Net cash provided (used) by investing activities                                                                                                       |   |           | 11,684   |   |   |   | (78,957 | ) |   |   | (54,367 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                                   |   |           |     |   |   |   |   |   |   |   |   |   |
| Proceeds from mortgages payable                                                                                                                        |   |           | 139,947  |   |   |   | 166,490 |   |   |   | 73,530 |   |
| Principal payments on mortgages payable                                                                                                                |   |           | (213,658 | ) |   |   | (180,482 | ) |   |   | (67,230 | ) |
| Principal payments on revolving lines of credit and other debt                                                                                         |   |           | (25,650  | ) |   |   | (15,567 | ) |   |   | (14,073 | ) |
| Proceeds from revolving lines of credit and other debt                                                                                                 |   |           | 56,300   |   |   |   | 15,500 |   |   |   | 20,500 |   |
| Proceeds from sale of common shares, net of issue costs                                                                                                |   |           | 19,598   |   |   |   | 108,271 |   |   |   | 5,978 |   |
| Repurchase of fractional shares and partnership units                                                                                                  |   |           | (10      | ) |   |   | (11 | ) |   |   | (10 | ) |
| Net (payments) proceeds from noncontrolling partner – consolidated real estate entities                                                          |   |           | (425     | ) |   |   | (475 | ) |   |   | 717 |   |
| Distributions paid to common shareholders, net of reinvestment of $10,627, $9,762 and $10,603, respectively                                            |   |           | (43,234  | ) |   |   | (37,323 | ) |   |   | (29,009 | ) |
| Distributions paid to preferred shareholders                                                                                                           |   |           | (2,372   | ) |   |   | (2,372 | ) |   |   | (2,372 | ) |
| Distributions paid to noncontrolling interests – Unitholders of the Operating Partnership, net reinvestment of $746, $772 and $782, respectively |   |           | (13,057  | ) |   |   | (13,489 | ) |   |   | (13,601 | ) |
| Distributions paid to noncontrolling interests – consolidated real estate entities                                                               |   |           | (1,055   | ) |   |   | (1,273 | ) |   |   | (165 | ) |
| Distributions paid to redeemable noncontrolling interests-consolidated real estate entities                                                            |   |           | (442     | ) |   |   | (177 | ) |   |   | (112 | ) |
| Redemption of partnership units                                                                                                                        |   |           | 0        |   |   |   | 0 |   |   |   | (158 | ) |
| Net cash (used) provided by financing activities                                                                                                       |   |           | (84,058  | ) |   |   | 39,092 |   |   |   | (26,005 | ) |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                                                                                   |   |           | (13,600  | ) |   |   | 21,547 |   |   |   | (20,237 | ) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                                                                                         |   |           | 54,791   |   |   |   | 33,244 |   |   |   | 53,481 |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                                                                                                               |   | $              | 41,191   |   |   | $ | 54,791 |   |   | $ | 33,244 |   |

Table of Contents

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|                                                                                 |   | (in thousands) |   |
|--------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                 |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES                |   |           |   |   |   |   |   |   |   |
| Distribution reinvestment plan                                                       |   | $              | 10,627 |   |   | $ | 9,762 |   |   | $ | 10,603 |   |
| Operating partnership distribution reinvestment plan                                 |   |           | 746    |   |   |   | 772 |   |   |   | 782 |   |
| Assets acquired through the issuance of operating partnership units                  |   |           | 4,996  |   |   |   | 3,897 |   |   |   | 3,730 |   |
| Operating partnership units converted to shares                                      |   |           | 6,905  |   |   |   | 3,755 |   |   |   | 5,034 |   |
| Real estate investment acquired through assumption of indebtedness and accrued costs |   |           | 9,895  |   |   |   | 2,569 |   |   |   | 0 |   |
| Adjustments to accounts payable included within real estate investments              |   |           | 933    |   |   |   | 324 |   |   |   | (90 | ) |
| Fair value adjustments to redeemable noncontrolling interests                        |   |           | 370    |   |   |   | (192 | ) |   |   | 6 |   |
|                                                                                 |   |           |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                                                       |   |           |   |   |   |   |   |   |   |   |   |   |
| Interest on mortgages                                                                |   | $              | 63,163 |   |   | $ | 67,234 |   |   | $ | 67,947 |   |
| Interest other                                                                       |   |           | 1,399  |   |   |   | 682 |   |   |   | 421 |   |
|                                                                                 |   | $              | 64,562 |   |   | $ | 67,916 |   |   | $ | 68,368 |   |

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|                                                                |   | (in thousands) |    |
|---------------------------------------------------------------------|--------|----------------|---------|
|                                                                |   | April 30, 2011 |    |   | April 30, 2010 |   |
| Identified intangible assets (included in intangible assets):       |   |           |    |   |   |   |
| Gross carrying amount                                               |   | $              | 91,986  |   |   | $ | 90,271 |   |
| Accumulated amortization                                            |   |           | (42,154 | ) |   |   | (39,571 | ) |
| Net carrying amount                                                 |   | $              | 49,832  |   |   | $ | 50,700 |   |
|                                                                |   |           |    |   |   |   |   |   |
| Indentified intangible liabilities (included in other liabilities): |   |           |    |   |   |   |   |   |
| Gross carrying amount                                               |   | $              | 1,104   |   |   | $ | 1,260 |   |
| Accumulated amortization                                            |   |           | (900    | ) |   |   | (940 | ) |
| Net carrying amount                                                 |   | $              | 204     |   |   | $ | 320 |   |

| Year Ended April 30, |   | (in thousands) |   |
|----------------------|--------|----------------|--------|
| 2012                 |   | $              | 45     |   |
| 2013                 |   |           | 32     |   |
| 2014                 |   |           | 35     |   |
| 2015                 |   |           | 18     |   |
| 2016                 |   |           | 14     |   |

| Year Ended April 30, |   | (in thousands) |   |
|----------------------|--------|----------------|--------|
| 2012                 |   | $              | 5,521  |   |
| 2013                 |   |           | 4,546  |   |
| 2014                 |   |           | 4,140  |   |
| 2015                 |   |           | 3,783  |   |
| 2016                 |   |           | 3,566  |   |

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|                         |   | (in thousands) |   |
|------------------------------|--------|----------------|--------|
|                         |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of year |   | $              | 1,172  |   |   | $ | 1,131 |   |   | $ | 1,264 |   |
| Provision                    |   |           | 733    |   |   |   | 1,399 |   |   |   | 2,472 |   |
| Write-off                    |   |           | (589   | ) |   |   | (1,358 | ) |   |   | (2,605 | ) |
| Balance at close of year     |   | $              | 1,316  |   |   | $ | 1,172 |   |   | $ | 1,131 |   |

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|                                                                  | (in thousands)            |   |
|-----------------------------------------------------------------------|---------------------------|--------|
|                                                                  | For Years Ended April 30, |   |
| Amounts Attributable to Investors Real Estate Trust                   | 2011                      |   | 2010 |   | 2009 |   |
|                                                                  |                      |   |   |   |   |   |   |   |   |
| Income from continuing operations – Investors Real Estate Trust |                      | $      | 4,186 |   |   | $ | 4,490 |   |   | $ | 8,328 |   |
| Discontinued Operations – Investors Real Estate Trust           |                      |   | 15,896 |   |   |   | (489 | ) |   |   | 198 |   |
| Net income attributable to Investors Real Estate Trust                |                      | $      | 20,082 |   |   | $ | 4,001 |   |   | $ | 8,526 |   |

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| Year Ended April 30, |   | (in thousands) |    |
|----------------------|--------|----------------|---------|
| 2012                 |   | $              | 111,017 |   |
| 2013                 |   |           | 100,265 |   |
| 2014                 |   |           | 88,497  |   |
| 2015                 |   |           | 75,722  |   |
| 2016                 |   |           | 64,316  |   |
| Thereafter           |   |           | 302,096 |   |
|                 |   | $              | 741,913 |   |

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| Year Ended April 30,                 |   | (in thousands) |   |
|--------------------------------------|--------|----------------|--------|
| 2012                                 |   | $              | 2      |   |
| 2013                                 |   |           | 157    |   |
|                                 |   |           | 159    |   |
| Less allowance for doubtful accounts |   |           | (3     | ) |
|                                 |   | $              | 156    |   |

|                         | (in thousands) |   |
|------------------------------|----------------|--------|
| 2011                         | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   |
|                         |           |   |   |   |   |   |   |   |   |   |   |   |
| Bank certificates of deposit |           | $      | 625 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 625 |   |
|                         |           | $      | 625 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 625 |   |

|                         | (in thousands) |   |
|------------------------------|----------------|--------|
| 2010                         | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   |
|                         |           |   |   |   |   |   |   |   |   |   |   |   |
| Bank certificates of deposit |           | $      | 420 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 420 |   |
|                         |           | $      | 420 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 420 |   |

|                                |   | (in thousands)        |   |
|-------------------------------------|--------|-----------------------|--------|
| Financial Institution               |   | Amount Available |   | Amount Outstanding asof April 30, 2011 |   | Amount Outstandingas of April 30, 2010 |   |   | Applicable Interest Rateas of April 30, 2011 |   | Maturity Date |   | Weighted Average Int.Rate onBorrowingsduring fiscalyear 2011 |   |
|                                |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First International Bank& Trust |   | $                     | 50,000 |   |   | $ | 30,000 |   |   | $ | 0 | (1) |   |   | 5.65 | % | 8/11/13 |   |   | 5.73 | % |
|                                |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |

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| (1) | As of April 30, 2010, the Company had $4.0 million in borrowings outstanding under a $14.0 million line of credit with First International Bank and Trust. This $14.0 million line of credit, and three other lines of credit that were outstanding at various times during fiscal years 2011, 2010 and 2009, with, respectively, First Western Bank and Trust, United Community Bank and Dacotah Bank, were replaced by the current multi-bank line of credit.  As of April 30, 2010, the Company had outstanding borrowings at United Community Bank and Dacotah Bank of $1.1 million and $1.5 million, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | NOTE 8 • MORTGAGES PAYABLE |
|--------|----------------------------------|

| Year Ended April 30, |   | (in thousands) |    |
|----------------------|--------|----------------|---------|
| 2012                 |   | $              | 58,741  |   |
| 2013                 |   |           | 50,092  |   |
| 2014                 |   |           | 65,354  |   |
| 2015                 |   |           | 92,548  |   |
| 2016                 |   |           | 77,771  |   |
| Thereafter           |   |           | 649,297 |   |
| Total payments       |   | $              | 993,803 |   |

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|                                                               |   | (in thousands) |   |
|--------------------------------------------------------------------|--------|----------------|--------|
| Acquisitions                                                       |   | Land           |   |   | Building |   |   | IntangibleAssets |   |   | AcquisitionCost |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                           |   |           |   |   |   |   |   |   |   |   |   |   |
| 24 unit - North Pointe 2 - Bismarck, ND                            |   | $              | 159    |   |   | $ | 1,713 |   |   | $ | 0 |   |   | $ | 1,872 |   |
| 44 unit - Sierra Vista - Sioux Falls, SD                           |   |           | 241    |   |   |   | 2,097 |   |   |   | 0 |   |   |   | 2,338 |   |
|                                                               |   |           | 400    |   |   |   | 3,810 |   |   |   | 0 |   |   |   | 4,210 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Office                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 58,574 sq. ft. Omaha 10802 Farnam Dr - Omaha, NE                   |   |           | 2,462  |   |   |   | 4,374 |   |   |   | 1,459 |   |   |   | 8,295 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                                 |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 14,705 sq. ft. Billings 2300 Grant Road - Billings, MT             |   |           | 649    |   |   |   | 1,216 |   |   |   | 657 |   |   |   | 2,522 |   |
| 14,640 sq. ft. Missoula 3050 Great Northern - Missoula, MT         |   |           | 640    |   |   |   | 1,331 |   |   |   | 752 |   |   |   | 2,723 |   |
| 108,503 sq. ft. Edgewood Vista Minot - Minot, ND                   |   |           | 1,046  |   |   |   | 11,590 |   |   |   | 2,545 |   |   |   | 15,181 |   |
| 23,965 sq. ft. Edgewood Vista Spearfish Expansion - Spearfish, SD1 |   |           | 0      |   |   |   | 2,777 |   |   |   | 0 |   |   |   | 2,777 |   |
|                                                               |   |           | 2,335  |   |   |   | 16,914 |   |   |   | 3,954 |   |   |   | 23,203 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Industrial                                              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 42,244 sq. ft. Fargo 1320 45th St N - Fargo, ND2                   |   |           | 0      |   |   |   | 1,634 |   |   |   | 0 |   |   |   | 1,634 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Retail                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 47,709 sq. ft. Minot 1400 31st Ave - Minot, ND                     |   |           | 1,026  |   |   |   | 6,143 |   |   |   | 1,081 |   |   |   | 8,250 |   |
|                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Property Acquisitions                                        |   | $              | 6,223  |   |   | $ | 32,875 |   |   | $ | 6,494 |   |   | $ | 45,592 |   |

| (1) | Expansion project placed in service January 10, 2011. Approximately $497,000 of this cost was incurred in the three months ended April 30, 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Development property placed in service June 22, 2010. Additional costs incurred in fiscal year 2010 totaled $2.3 million, for a total project cost at April 30, 2011 of $3.9 million. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                        |   | (in thousands) |   |
|-----------------------------------------------------------------------------|--------|----------------|--------|
| Acquisitions                                                                |   | Land           |   |   | Building |   |   | IntangibleAssets |   |   | AcquisitionCost |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                                    |   |           |   |   |   |   |   |   |   |   |   |   |
| 16-unit Northern Valley Apartments - Rochester, MN                          |   | $              | 110    |   |   | $ | 610 |   |   | $ | 0 |   |   | $ | 720 |   |
| 48-unit Crown Apartments - Rochester, MN                                    |   |           | 261    |   |   |   | 3,289 |   |   |   | 0 |   |   |   | 3,550 |   |
|                                                                        |   |           | 371    |   |   |   | 3,899 |   |   |   | 0 |   |   |   | 4,270 |   |
| Commercial Office                                                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 15,000 sq. ft. Minot 2505 16th Street SW - Minot, ND                        |   |           | 372    |   |   |   | 1,724 |   |   |   | 304 |   |   |   | 2,400 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 65,160 sq. ft. Casper 1930 E. 12th Street (Park Place) - Casper, WY         |   |           | 439    |   |   |   | 5,780 |   |   |   | 1,120 |   |   |   | 7,339 |   |
| 35,629 sq. ft. Casper 3955 E. 12th Street (Meadow Wind) - Casper, WY        |   |           | 338    |   |   |   | 5,881 |   |   |   | 1,120 |   |   |   | 7,339 |   |
| 47,509 sq. ft. Cheyenne 4010 N. College Drive (Aspen Wind) - Cheyenne, WY   |   |           | 628    |   |   |   | 9,869 |   |   |   | 1,960 |   |   |   | 12,457 |   |
| 54,072 sq. ft. Cheyenne 4606 N. College Drive (Sierra Hills) - Cheyenne, WY |   |           | 695    |   |   |   | 7,455 |   |   |   | 1,410 |   |   |   | 9,560 |   |
| 35,629 sq. ft. Laramie 1072 N. 22nd Street (Spring Wind) - Laramie, WY      |   |           | 406    |   |   |   | 6,634 |   |   |   | 1,265 |   |   |   | 8,305 |   |
|                                                                        |   |           | 2,506  |   |   |   | 35,619 |   |   |   | 6,875 |   |   |   | 45,000 |   |
| Commercial Industrial                                                       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 42,180 sq. ft. Clive 2075 NW 94th Street - Clive, IA                        |   |           | 408    |   |   |   | 2,610 |   |   |   | 332 |   |   |   | 3,350 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unimproved Land                                                             |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fargo 1320 45th Street N. - Fargo, ND                                       |   |           | 395    |   |   |   | 0 |   |   |   | 0 |   |   |   | 395 |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Property Acquisitions                                                 |   | $              | 4,052  |   |   | $ | 43,852 |   |   | $ | 7,511 |   |   | $ | 55,415 |   |

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|                                                      |   | (in thousands) |   |
|-----------------------------------------------------------|--------|----------------|--------|
| Dispositions                                              |   | Sales Price    |   |   | Book Valueand Sales Cost |   |   | Gain/(Loss) |   |
|                                                      |   |           |   |   |   |   |   |   |   |
| Multi-Family Residential                                  |   |           |   |   |   |   |   |   |   |
| 504 unit - Dakota Hill at Valley Ranch - Irving, TX       |   | $              | 36,100 |   |   | $ | 30,909 |   |   | $ | 5,191 |   |
| 192 unit - Neighborhood Apartments - Colorado Springs, CO |   |           | 11,200 |   |   |   | 9,664 |   |   |   | 1,536 |   |
| 195 unit - Pinecone Apartments - Fort Collins, CO         |   |           | 15,875 |   |   |   | 10,422 |   |   |   | 5,453 |   |
| 210 unit - Miramont Apartments - Fort Collins, CO         |   |           | 17,200 |   |   |   | 10,732 |   |   |   | 6,468 |   |
|                                                      |   |           | 80,375 |   |   |   | 61,727 |   |   |   | 18,648 |   |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                        |   |           |   |   |   |   |   |   |   |   |   |   |
| 1,410 sq. ft. Edgewood Vista Patio Home 4330 - Fargo, ND  |   |           | 205    |   |   |   | 220 |   |   |   | (15 | ) |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Industrial                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| 29,440 sq. ft. Waconia Industrial Building - Waconia, MN  |   |           | 2,300  |   |   |   | 1,561 |   |   |   | 739 |   |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Retail                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| 41,000 sq. ft. Ladysmith Pamida - Ladysmith, WI           |   |           | 450    |   |   |   | 457 |   |   |   | (7 | ) |
|                                                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Total Property Dispositions                               |   | $              | 83,330 |   |   | $ | 63,965 |   |   | $ | 19,365 |   |

|                                                                  |   | (in thousands) |   |
|-----------------------------------------------------------------------|--------|----------------|--------|
| Dispositions                                                          |   | Sales Price    |   |   | Book Valueand Sales Cost |   |   | Gain/(Loss) |   |
|                                                                  |   |           |   |   |   |   |   |   |   |
| Multi-Family Residential42 unit - Sweetwater Apartments - Grafton, ND |   | $              | 450    |   |   | $ | 382 |   |   | $ | 68 |   |
|                                                                  |   |           |   |   |   |   |   |   |   |   |   |   |
| Commercial Office                                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| 10,126 sq. ft. 12 South Main - Minot, ND                              |   |           | 110    |   |   |   | 110 |   |   |   | 0 |   |
|                                                                  |   |           |   |   |   |   |   |   |   |   |   |   |
| Total Property Dispositions                                           |   | $              | 560    |   |   | $ | 492 |   |   | $ | 68 |   |

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|                                          | (in thousands)                |   |
|-----------------------------------------------|-------------------------------|--------|
| Year Ended April 30, 2011                     | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | Total |   |
|                                          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                           |                          | $      | 66,838 |   |   | $ | 77,747 |   |   | $ | 66,048 |   |   | $ | 13,165 |   |   | $ | 13,609 |   |   | $ | 237,407 |   |
| Real estate expenses                          |                          |   | 34,129 |   |   |   | 36,055 |   |   |   | 22,466 |   |   |   | 4,328 |   |   |   | 4,945 |   |   |   | 101,923 |   |
| Net operating income                          |                          | $      | 32,709 |   |   | $ | 41,692 |   |   | $ | 43,582 |   |   | $ | 8,837 |   |   | $ | 8,664 |   |   |   | 135,484 |   |
| Depreciation/amortization                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (58,528 | ) |
| Administrative, advisory and trustee services |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,222 | ) |
| Other expenses                                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,774  | ) |
| Interest expense                              |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (64,021 | ) |
| Interest and other income                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 541 |   |
| Income from continuing operations             |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,480 |   |
| Income from discontinued operations           |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 19,871 |   |
| Net income                                    |                          |   | $ | 24,351 |   |

|                                          | (in thousands)                |   |
|-----------------------------------------------|-------------------------------|--------|
| Year Ended April 30, 2010                     | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | Total |   |
|                                          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                           |                          | $      | 65,478 |   |   | $ | 82,079 |   |   | $ | 57,439 |   |   | $ | 13,095 |   |   | $ | 13,420 |   |   | $ | 231,511 |   |
| Real estate expenses                          |                          |   | 32,615 |   |   |   | 36,833 |   |   |   | 17,904 |   |   |   | 4,121 |   |   |   | 4,818 |   |   |   | 96,291 |   |
| Gain on involuntary conversion                |                          |   | 1,660 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 1,660 |   |
| Net operating income                          |                          | $      | 34,523 |   |   | $ | 45,246 |   |   | $ | 39,535 |   |   | $ | 8,974 |   |   | $ | 8,602 |   |   |   | 136,880 |   |
| Depreciation/amortization                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (57,455 | ) |
| Administrative, advisory and trustee services |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,218 | ) |
| Other expenses                                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,513 | ) |
| Impairment of real estate investment          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (708 | ) |
| Interest expense                              |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (65,665 | ) |
| Interest and other income                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 894 |   |
| Income from continuing operations             |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,215 |   |
| Loss from discontinued operations             |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (630 | ) |
| Net income                                    |                          |   | $ | 4,585 |   |

|                                      | (in thousands)                |   |
|-------------------------------------------|-------------------------------|--------|
| Year Ended April 30, 2009                 | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | Total |   |
|                                      |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate revenue                       |                          | $      | 65,632 |   |   | $ | 83,446 |   |   | $ | 52,547 |   |   | $ | 12,488 |   |   | $ | 14,403 |   |   | $ | 228,516 |   |
| Real estate expenses                      |                          |   | 31,315 |   |   |   | 37,644 |   |   |   | 16,046 |   |   |   | 3,142 |   |   |   | 5,065 |   |   |   | 93,212 |   |
| Net operating income                      |                          | $      | 34,317 |   |   | $ | 45,802 |   |   | $ | 36,501 |   |   | $ | 9,346 |   |   | $ | 9,338 |   |   |   | 135,304 |   |
| Depreciation/amortization                 |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (54,434 | ) |
| Administrative, advisory and trustee fees |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,882 | ) |
| Other expenses                            |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,440 | ) |
| Interest expense                          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (65,014 | ) |
| Interest and other income                 |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 913 |   |
| Income from continuing operations         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 10,447 |   |
| Income from discontinued operations       |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 266 |   |
| Net income                                |                          |   |   | 10,713 |   |

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|                                             | (in thousands)                |   |
|--------------------------------------------------|-------------------------------|--------|
| As of April 30, 2011                             | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | Total |   |
|                                             |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment assets                                   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property owned                                   |                          | $      | 484,815 |   |   | $ | 595,491 |   |   | $ | 447,831 |   |   | $ | 117,602 |   |   | $ | 125,059 |   |   | $ | 1,770,798 |   |
| Less accumulated depreciation                    |                          |   | (117,718 | ) |   |   | (104,650 | ) |   |   | (65,367 | ) |   |   | (17,713 | ) |   |   | (23,504 | ) |   |   | (328,952 | ) |
| Total property owned                             |                          | $      | 367,097 |   |   | $ | 490,841 |   |   | $ | 382,464 |   |   | $ | 99,889 |   |   | $ | 101,555 |   |   | $ | 1,441,846 |   |
| Cash and cash equivalents                        |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 41,191 |   |
| Marketable securities – available-for-sale |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 625 |   |
| Receivables and other assets                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 115,302 |   |
| Development in progress                          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,693 |   |
| Unimproved land                                  |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,550 |   |
| Mortgage loans receivable, net of allowance      |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 156 |   |
| Total Assets                                     |                          |   | $ | 1,615,363 |   |

|                                             | (in thousands)                |   |
|--------------------------------------------------|-------------------------------|--------|
| As of April 30, 2010                             | Multi-Family Residential |   |   | CommercialOffice |   |   | CommercialMedical |   |   | CommercialIndustrial |   |   | CommercialRetail |   |   | Total |   |
|                                             |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment assets                                   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property owned                                   |                          | $      | 556,867 |   |   | $ | 582,943 |   |   | $ | 430,229 |   |   | $ | 113,249 |   |   | $ | 117,231 |   |   | $ | 1,800,519 |   |
| Less accumulated depreciation                    |                          |   | (129,922 | ) |   |   | (88,656 | ) |   |   | (53,641 | ) |   |   | (15,481 | ) |   |   | (20,926 | ) |   |   | (308,626 | ) |
| Total property owned                             |                          | $      | 426,945 |   |   | $ | 494,287 |   |   | $ | 376,588 |   |   | $ | 97,768 |   |   | $ | 96,305 |   |   | $ | 1,491,893 |   |
| Cash and cash equivalents                        |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 54,791 |   |
| Marketable securities – available-for-sale |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 420 |   |
| Receivables and other assets                     |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 104,830 |   |
| Development in progress                          |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,831 |   |
| Unimproved land                                  |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,007 |   |
| Mortgage loans receivable, net of allowance      |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 158 |   |
| Total Assets                                     |                          |   | $ | 1,660,930 |   |

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|                                                           |   | (in thousands) |   |
|----------------------------------------------------------------|--------|----------------|--------|
|                                                           |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| REVENUE                                                        |   |           |   |   |   |   |   |   |   |
| Real estate rentals                                            |   | $              | 5,901  |   |   | $ | 11,197 |   |   | $ | 11,409 |   |
| Tenant reimbursement                                           |   |           | 36     |   |   |   | 67 |   |   |   | 80 |   |
| TOTAL REVENUE                                                  |   |           | 5,937  |   |   |   | 11,264 |   |   |   | 11,489 |   |
| EXPENSES                                                       |   |           |   |   |   |   |   |   |   |   |   |   |
| Depreciation/amortization related to real estate investments   |   |           | 1,142  |   |   |   | 2,300 |   |   |   | 2,272 |   |
| Utilities                                                      |   |           | 558    |   |   |   | 957 |   |   |   | 863 |   |
| Maintenance                                                    |   |           | 708    |   |   |   | 1,236 |   |   |   | 1,172 |   |
| Real estate taxes                                              |   |           | 638    |   |   |   | 1,319 |   |   |   | 1,366 |   |
| Insurance                                                      |   |           | 110    |   |   |   | 290 |   |   |   | 187 |   |
| Property management expenses                                   |   |           | 843    |   |   |   | 1,448 |   |   |   | 1,351 |   |
| Other expenses                                                 |   |           | 1      |   |   |   | 0 |   |   |   | 0 |   |
| Amortization related to non-real estate investments            |   |           | 4      |   |   |   | 8 |   |   |   | 8 |   |
| Impairment of real estate investments                          |   |           | 0      |   |   |   | 970 |   |   |   | 338 |   |
| TOTAL EXPENSES                                                 |   |           | 4,004  |   |   |   | 8,528 |   |   |   | 7,557 |   |
| Interest expense                                               |   |           | (1,432 | ) |   |   | (3,441 | ) |   |   | (3,729 | ) |
| Interest income                                                |   |           | 5      |   |   |   | 7 |   |   |   | 9 |   |
| Income (loss) from discontinued operations before gain on sale |   |           | 506    |   |   |   | (698 | ) |   |   | 212 |   |
| Gain on sale of discontinued operations                        |   |           | 19,365 |   |   |   | 68 |   |   |   | 54 |   |
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS                     |   | $              | 19,871 |   |   | $ | (630 | ) |   | $ | 266 |   |
| Segment Data                                                   |   |           |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential                                       |   | $              | 19,224 |   |   | $ | 437 |   |   | $ | 560 |   |
| Commercial Office                                              |   |           | 0      |   |   |   | (169 | ) |   |   | (338 | ) |
| Commercial Medical                                             |   |           | (8     | ) |   |   | 14 |   |   |   | 11 |   |
| Commercial Industrial                                          |   |           | 726    |   |   |   | (23 | ) |   |   | (12 | ) |
| Commercial Retail                                              |   |           | (71    | ) |   |   | (889 | ) |   |   | 45 |   |
| Total                                                          |   | $              | 19,871 |   |   | $ | (630 | ) |   | $ | 266 |   |

|                                    |   | (in thousands) |    |
|-----------------------------------------|--------|----------------|---------|
|                                    |   | 2011           |    |   | 2010 |   |   | 2009 |   |
| Property Sale Data                      |   |           |    |   |   |   |   |   |   |
| Sales price                             |   | $              | 83,330  |   |   | $ | 560 |   |   | $ | 70 |   |
| Net book value and sales costs          |   |           | (63,965 | ) |   |   | (492 | ) |   |   | (16 | ) |
| Gain on sale of discontinued operations |   | $              | 19,365  |   |   | $ | 68 |   |   | $ | 54 |   |

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|                                                                                                                        |   | For Years Ended April 30,             |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                        |   | (in thousands, except per share data) |   |
|                                                                                                                        |   | 2011                                  |   |   | 2010 |   |   | 2009 |   |
| NUMERATOR                                                                                                                   |   |                                  |   |   |   |   |   |   |   |
| Income from continuing operations – Investors Real Estate Trust                                                       |   | $                                     | 4,186  |   |   | $ | 4,490 |   |   | $ | 8,328 |   |
| Income (loss) from discontinued operations – Investors Real Estate Trust                                              |   |                                  | 15,896 |   |   |   | (489 | ) |   |   | 198 |   |
| Net income attributable to Investors Real Estate Trust                                                                      |   |                                  | 20,082 |   |   |   | 4,001 |   |   |   | 8,526 |   |
| Dividends to preferred shareholders                                                                                         |   |                                  | (2,372 | ) |   |   | (2,372 | ) |   |   | (2,372 | ) |
| Numerator for basic earnings per share – net income available to common shareholders                                  |   |                                  | 17,710 |   |   |   | 1,629 |   |   |   | 6,154 |   |
| Noncontrolling interests – Operating Partnership                                                                      |   |                                  | 4,449  |   |   |   | 562 |   |   |   | 2,227 |   |
| Numerator for diluted earnings per share                                                                                    |   | $                                     | 22,159 |   |   | $ | 2,191 |   |   | $ | 8,381 |   |
| DENOMINATOR                                                                                                                 |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Denominator for basic earnings per share weighted average shares                                                            |   |                                  | 78,628 |   |   |   | 69,093 |   |   |   | 58,603 |   |
| Effect of convertible operating partnership units                                                                           |   |                                  | 20,154 |   |   |   | 20,825 |   |   |   | 21,217 |   |
| Denominator for diluted earnings per share                                                                                  |   |                                  | 98,782 |   |   |   | 89,918 |   |   |   | 79,820 |   |
| Earnings per common share from continuing operations – Investors Real Estate Trust – basic and diluted          |   | $                                     | .02    |   |   | $ | .04 |   |   | $ | .10 |   |
| Earnings (loss) per common share from discontinued operations – Investors Real Estate Trust – basic and diluted |   |                                  | .20    |   |   |   | (.01 | ) |   |   | .01 |   |
| NET INCOME PER COMMON SHARE – BASIC & DILUTED                                                                     |   | $                                     | .22    |   |   | $ | .03 |   |   | $ | .11 |   |

|                 | (in thousands) |   |
|----------------------|----------------|--------|
| Year Ended April 30, | Lease Payments |   |
| 2012                 |           | $      | 501 |   |
| 2013                 |           |   | 499 |   |
| 2014                 |           |   | 500 |   |
| 2015                 |           |   | 501 |   |
| 2016                 |           |   | 473 |   |
| Thereafter           |           |   | 22,486 |   |
| Total                |           | $      | 24,960 |   |

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|                                                              |   | (in thousands)  |    |
|-------------------------------------------------------------------|--------|-----------------|---------|
|                                                              |   |            |    |   | Gross Rental Revenue |   |
| Property                                                          |   | Investment Cost |    |   | 2011 |   |   | 2010 |   |   | 2009 |   |
| Billings 2300 Grant Road - Billings, MT                           |   | $               | 2,522   |   |   | $ | 226 |   |   | $ | 0 |   |   | $ | 0 |   |
| Edgewood Vista-Belgrade, MT                                       |   |            | 2,135   |   |   |   | 191 |   |   |   | 196 |   |   |   | 196 |   |
| Edgewood Vista-Billings, MT                                       |   |            | 4,274   |   |   |   | 384 |   |   |   | 396 |   |   |   | 396 |   |
| Edgewood Vista-Bismarck, ND                                       |   |            | 10,903  |   |   |   | 1,031 |   |   |   | 1,008 |   |   |   | 1,008 |   |
| Edgewood Vista-Brainerd, MN                                       |   |            | 10,667  |   |   |   | 1,010 |   |   |   | 988 |   |   |   | 988 |   |
| Edgewood Vista-Columbus, NE                                       |   |            | 1,481   |   |   |   | 131 |   |   |   | 136 |   |   |   | 136 |   |
| Edgewood Vista-East Grand Forks, MN                               |   |            | 4,996   |   |   |   | 475 |   |   |   | 465 |   |   |   | 464 |   |
| Edgewood Vista-Fargo, ND                                          |   |            | 26,087  |   |   |   | 2,415 |   |   |   | 2,387 |   |   |   | 2,065 |   |
| Edgewood Vista-Fremont, NE                                        |   |            | 588     |   |   |   | 72 |   |   |   | 72 |   |   |   | 72 |   |
| Edgewood Vista-Grand Island, NE                                   |   |            | 1,431   |   |   |   | 129 |   |   |   | 132 |   |   |   | 132 |   |
| Edgewood Vista-Hastings, NE                                       |   |            | 606     |   |   |   | 76 |   |   |   | 76 |   |   |   | 76 |   |
| Edgewood Vista-Hermantown I, MN                                   |   |            | 21,510  |   |   |   | 2,404 |   |   |   | 2,359 |   |   |   | 2,040 |   |
| Edgewood Vista-Hermantown II, MN                                  |   |            | 12,359  |   |   |   | 1,170 |   |   |   | 1,144 |   |   |   | 1,144 |   |
| Edgewood Vista-Kalispell, MT                                      |   |            | 624     |   |   |   | 76 |   |   |   | 76 |   |   |   | 76 |   |
| Edgewood Vista-Missoula, MT                                       |   |            | 999     |   |   |   | 96 |   |   |   | 96 |   |   |   | 96 |   |
| Edgewood Vista-Norfolk, NE                                        |   |            | 1,332   |   |   |   | 122 |   |   |   | 124 |   |   |   | 124 |   |
| Edgewood Vista-Omaha, NE                                          |   |            | 676     |   |   |   | 80 |   |   |   | 80 |   |   |   | 80 |   |
| Edgewood Vista-Sioux Falls, SD                                    |   |            | 3,353   |   |   |   | 312 |   |   |   | 312 |   |   |   | 312 |   |
| Edgewood Vista-Spearfish, SD                                      |   |            | 9,569   |   |   |   | 642 |   |   |   | 628 |   |   |   | 628 |   |
| Edgewood Vista-Virginia, MN                                       |   |            | 17,132  |   |   |   | 2,054 |   |   |   | 2,008 |   |   |   | 1,736 |   |
| Fargo 1320 45th Street N - Fargo, ND                              |   |            | 4,160   |   |   |   | 333 |   |   |   | 0 |   |   |   | 0 |   |
| Great Plains - Fargo, ND                                          |   |            | 15,375  |   |   |   | 1,876 |   |   |   | 1,876 |   |   |   | 1,876 |   |
| Healtheast St John & Woodwinds - Maplewood & Woodbury, MN |   |            | 21,601  |   |   |   | 2,152 |   |   |   | 2,152 |   |   |   | 2,052 |   |
| Minnesota National Bank - Duluth, MN                              |   |            | 1,745   |   |   |   | 105 |   |   |   | 164 |   |   |   | 211 |   |
| Missoula 3050 Great Northern - Missoula, MT                       |   |            | 2,723   |   |   |   | 243 |   |   |   | 0 |   |   |   | 0 |   |
| Sartell 2000 23rd Street South - Sartell, MN                      |   |            | 12,693  |   |   |   | 1,209 |   |   |   | 1,173 |   |   |   | 1,292 |   |
| St. Michael Clinic - St. Michael, MN                              |   |            | 2,851   |   |   |   | 244 |   |   |   | 241 |   |   |   | 240 |   |
| Stevens Point - Stevens Point, WI                                 |   |            | 15,020  |   |   |   | 1,104 |   |   |   | 1,356 |   |   |   | 1,356 |   |
| Total                                                             |   | $               | 209,412 |   |   | $ | 20,362 |   |   | $ | 19,645 |   |   | $ | 18,796 |   |

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|                                       |   | (in thousands)       |    |
|--------------------------------------------|--------|----------------------|---------|
|                                       |   | 2011                 |    |   | 2010 |   |
|                                       |   | Carrying Amount |    |   | Fair Value |   |   | Carrying Amount |   |   | Fair Value |   |
| FINANCIAL ASSETS                           |   |                 |    |   |   |   |   |   |   |   |   |   |
| Mortgage loans receivable                  |   | $                    | 156     |   |   | $ | 156 |   |   | $ | 158 |   |   | $ | 158 |   |
| Cash and cash equivalents                  |   |                 | 41,191  |   |   |   | 41,191 |   |   |   | 54,791 |   |   |   | 54,791 |   |
| Marketable securities - available-for-sale |   |                 | 625     |   |   |   | 625 |   |   |   | 420 |   |   |   | 420 |   |
| FINANCIAL LIABILITIES                      |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other debt                                 |   |                 | 8,200   |   |   |   | 7,279 |   |   |   | 1,000 |   |   |   | 1,142 |   |
| Lines of credit                            |   |                 | 30,000  |   |   |   | 30,000 |   |   |   | 6,550 |   |   |   | 6,550 |   |
| Mortgages payable                          |   |                 | 993,803 |   |   |   | 1,013,713 |   |   |   | 1,057,619 |   |   |   | 1,015,879 |   |

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|                                              |   | (in thousands, except per share data) |   |
|---------------------------------------------------|--------|---------------------------------------|--------|
| QUARTER ENDED                                     |   | July 31, 2010                         |   |   | October 31, 2010 |   |   | January 31, 2011 |   |   | April 30, 2011 |   |
| Revenues                                          |   | $                                     | 59,176 |   |   | $ | 58,904 |   |   | $ | 60,203 |   |   | $ | 59,124 |   |
| Net Income available to common shareholders       |   | $                                     | 1,393  |   |   | $ | 5,226 |   |   | $ | 11,240 |   |   | $ | (149 | ) |
| Net Income per common share - basic & diluted |   | $                                     | .02    |   |   | $ | .07 |   |   | $ | .14 |   |   | $ | (.01 | ) |

|                                              |   | (in thousands, except per share data) |   |
|---------------------------------------------------|--------|---------------------------------------|--------|
| QUARTER ENDED                                     |   | July 31, 2009                         |   |   | October 31, 2009 |   |   | January 31, 2010 |   |   | April 30, 2010 |   |
| Revenues                                          |   | $                                     | 58,009 |   |   | $ | 56,758 |   |   | $ | 57,335 |   |   | $ | 59,409 |   |
| Net Income available to common shareholders       |   | $                                     | 1,424  |   |   | $ | (308 | ) |   | $ | (141 | ) |   | $ | 654 |   |
| Net Income per common share - basic & diluted |   | $                                     | .02    |   |   | $ | .00 |   |   | $ | .00 |   |   | $ | .01 |   |

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|                                |   | (in thousands) |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of fiscal year |   | $              | 1,812  |   |   | $ | 1,737 |   |   | $ | 1,802 |   |
| Net income                          |   |           | (13    | ) |   |   | 60 |   |   |   | 53 |   |
| Net distributions                   |   |           | (442   | ) |   |   | (177 | ) |   |   | (112 | ) |
| Mark-to-market adjustments          |   |           | (370   | ) |   |   | 192 |   |   |   | (6 | ) |
| Balance at close of fiscal year     |   | $              | 987    |   |   | $ | 1,812 |   |   | $ | 1,737 |   |

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|                            |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|---------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                     | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubseq­uent toacquisition       | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Multi-Family Residential        |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 11th Street 3 Plex - Minot, ND  | $               | 0                             | $                           | 11                                                    | $      | 53                          | $      | 5 | $ | 11 | $ | 58 | $ | 69 | $ | (4) |   | 2008 | 40 years |
| 4th Street 4 Plex - Minot, ND   |            | 0                             |                        | 15                                                    |   | 74                          |   | 1 |   | 15 |   | 75 |   | 90 |   | (6) |   | 2008 | 40 years |
| Apartments on Main - Minot, ND  |            | 0                             |                        | 158                                                   |   | 1,123                       |   | 18 |   | 175 |   | 1,124 |   | 1,299 |   | (91) |   | 1987 | 24-40 years |
| Arbors - S Sioux City, NE       |            | 4,143                         |                        | 350                                                   |   | 6,625                       |   | 941 |   | 584 |   | 7,332 |   | 7,916 |   | (1,008) |   | 2006 | 40 years |
| Boulder Court - Eagan, MN       |            | 3,675                         |                        | 1,067                                                 |   | 5,498                       |   | 2,389 |   | 1,277 |   | 7,677 |   | 8,954 |   | (1,476) |   | 2003 | 40 years |
| Brookfield Village - Topeka, KS |            | 5,534                         |                        | 509                                                   |   | 6,698                       |   | 1,067 |   | 600 |   | 7,674 |   | 8,274 |   | (1,503) |   | 2003 | 40 years |
| Brooklyn Heights - Minot, ND    |            | 893                           |                        | 145                                                   |   | 1,450                       |   | 688 |   | 198 |   | 2,085 |   | 2,283 |   | (722) |   | 1997 | 12-40 years |
| Campus Center - St. Cloud, MN   |            | 1,417                         |                        | 395                                                   |   | 2,244                       |   | 115 |   | 398 |   | 2,356 |   | 2,754 |   | (253) |   | 2007 | 40 years |
| Campus Heights - St. Cloud, MN  |            | 0                             |                        | 110                                                   |   | 628                         |   | 32 |   | 112 |   | 658 |   | 770 |   | (72) |   | 2007 | 40 years |
| Campus Knoll - St. Cloud, MN    |            | 944                           |                        | 266                                                   |   | 1,512                       |   | 58 |   | 271 |   | 1,565 |   | 1,836 |   | (172) |   | 2007 | 40 years |
| Campus Plaza - St. Cloud, MN(1) |            | 0                             |                        | 54                                                    |   | 311                         |   | 26 |   | 55 |   | 336 |   | 391 |   | (37) |   | 2007 | 40 years |
| Campus Side - St. Cloud, MN(1)  |            | 0                             |                        | 107                                                   |   | 615                         |   | 62 |   | 114 |   | 670 |   | 784 |   | (73) |   | 2007 | 40 years |
| Campus View - St. Cloud, MN(1)  |            | 0                             |                        | 107                                                   |   | 615                         |   | 48 |   | 109 |   | 661 |   | 770 |   | (71) |   | 2007 | 40 years |
| Candlelight - Fargo, ND         |            | 1,315                         |                        | 80                                                    |   | 758                         |   | 1,048 |   | 221 |   | 1,665 |   | 1,886 |   | (745) |   | 1992 | 24-40 years |
| Canyon Lake - Rapid City, SD    |            | 2,593                         |                        | 305                                                   |   | 3,958                       |   | 575 |   | 328 |   | 4,510 |   | 4,838 |   | (1,063) |   | 2001 | 40 years |
| Castlerock - Billings, MT       |            | 6,947                         |                        | 736                                                   |   | 4,864                       |   | 1,486 |   | 860 |   | 6,226 |   | 7,086 |   | (1,997) |   | 1998 | 40 years |
| Chateau - Minot, ND             |            | 1,730                         |                        | 122                                                   |   | 2,224                       |   | 1,297 |   | 169 |   | 3,474 |   | 3,643 |   | (1,044) |   | 1998 | 12-40 years |
| Cimarron Hills - Omaha, NE      |            | 5,010                         |                        | 706                                                   |   | 9,588                       |   | 3,732 |   | 1,192 |   | 12,834 |   | 14,026 |   | (3,444) |   | 2001 | 40 years |
| Colonial Villa - Burnsville, MN |            | 7,350                         |                        | 2,401                                                 |   | 11,515                      |   | 2,799 |   | 2,708 |   | 14,007 |   | 16,715 |   | (2,922) |   | 2003 | 40 years |
| Colton Heights - Minot, ND      |            | 502                           |                        | 80                                                    |   | 672                         |   | 322 |   | 113 |   | 961 |   | 1,074 |   | (634) |   | 1984 | 40 years |
| Cornerstone - St. Cloud, MN(1)  |            | 0                             |                        | 54                                                    |   | 311                         |   | 31 |   | 55 |   | 341 |   | 396 |   | (37) |   | 2007 | 40 years |
| Cottonwood - Bismarck, ND       |            | 16,373                        |                        | 1,056                                                 |   | 17,372                      |   | 2,524 |   | 1,292 |   | 19,660 |   | 20,952 |   | (4,748) |   | 1997 | 40 years |
| Country Meadows - Billings, MT  |            | 6,990                         |                        | 491                                                   |   | 7,809                       |   | 963 |   | 527 |   | 8,736 |   | 9,263 |   | (2,722) |   | 1995 | 33-40 years |
| Crestview - Bismarck, ND        |            | 4,123                         |                        | 235                                                   |   | 4,290                       |   | 892 |   | 464 |   | 4,953 |   | 5,417 |   | (2,278) |   | 1994 | 24-40 years |
| Crown - Rochester, MN           |            | 2,520                         |                        | 261                                                   |   | 3,289                       |   | 40 |   | 261 |   | 3,329 |   | 3,590 |   | (87) |   | 2010 | 40 years |
| Crown Colony - Topeka, KS       |            | 8,588                         |                        | 620                                                   |   | 9,956                       |   | 1,722 |   | 759 |   | 11,539 |   | 12,298 |   | (3,294) |   | 1999 | 40 years |
| East Park - Sioux Falls, SD     |            | 1,530                         |                        | 115                                                   |   | 2,405                       |   | 605 |   | 155 |   | 2,970 |   | 3,125 |   | (735) |   | 2002 | 40 years |
| Evergreen - Isanti, MN          |            | 2,105                         |                        | 380                                                   |   | 2,720                       |   | 58 |   | 380 |   | 2,778 |   | 3,158 |   | (182) |   | 2008 | 40 years |
| Fairmont - Minot, ND            |            | 0                             |                        | 28                                                    |   | 337                         |   | 9 |   | 28 |   | 346 |   | 374 |   | (26) |   | 2008 | 40 years |
| Forest Park - Grand Forks, ND   |            | 8,044                         |                        | 810                                                   |   | 5,579                       |   | 5,647 |   | 1,296 |   | 10,740 |   | 12,036 |   | (3,826) |   | 1993 | 24-40 years |
| Greenfield - Omaha, NE          |            | 3,650                         |                        | 578                                                   |   | 4,122                       |   | 401 |   | 730 |   | 4,371 |   | 5,101 |   | (376) |   | 2007 | 40 years |
| Heritage Manor - Rochester, MN  |            | 4,470                         |                        | 403                                                   |   | 6,968                       |   | 1,899 |   | 451 |   | 8,819 |   | 9,270 |   | (2,782) |   | 1998 | 40 years |

Table of Contents

----

|                                 |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|--------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                          | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Multi-Family Residential - continued |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indian Hills - Sioux City, IA(1)     | $               | 0                             | $                           | 294                                                   | $      | 2,921                       | $      | 2,686 | $ | 365 | $ | 5,536 | $ | 5,901 | $ | (576) |   | 2007 | 40 years |
| Kirkwood Manor - Bismarck, ND        |            | 3,451                         |                        | 449                                                   |   | 2,725                       |   | 1,254 |   | 537 |   | 3,891 |   | 4,428 |   | (1,358) |   | 1997 | 12-40 years |
| Lancaster - St. Cloud, MN            |            | 981                           |                        | 289                                                   |   | 2,899                       |   | 773 |   | 437 |   | 3,524 |   | 3,961 |   | (1,098) |   | 2000 | 40 years |
| Landmark - Grand Forks, ND           |            | 1,815                         |                        | 184                                                   |   | 1,514                       |   | 829 |   | 273 |   | 2,254 |   | 2,527 |   | (765) |   | 1997 | 40 years |
| Legacy - Grand Forks, ND             |            | 16,841                        |                        | 1,362                                                 |   | 21,727                      |   | 5,168 |   | 2,018 |   | 26,239 |   | 28,257 |   | (7,108) |   | 1995-2005 | 24-40 years |
| Mariposa - Topeka, KS                |            | 3,110                         |                        | 399                                                   |   | 5,110                       |   | 310 |   | 419 |   | 5,400 |   | 5,819 |   | (884) |   | 2004 | 40 years |
| Monticello Village - Monticello, MN  |            | 3,023                         |                        | 490                                                   |   | 3,756                       |   | 355 |   | 612 |   | 3,989 |   | 4,601 |   | (771) |   | 2004 | 40 years |
| North Pointe - Bismarck, ND          |            | 2,051                         |                        | 303                                                   |   | 3,957                       |   | 226 |   | 320 |   | 4,166 |   | 4,486 |   | (972) |   | 1995-2011 | 24-40 years |
| Northern Valley - Rochester, MN      |            | 0                             |                        | 110                                                   |   | 610                         |   | 12 |   | 111 |   | 621 |   | 732 |   | (16) |   | 2010 | 40 years |
| Oakmont Estates - Sioux Falls, SD    |            | 3,605                         |                        | 423                                                   |   | 4,838                       |   | 333 |   | 495 |   | 5,099 |   | 5,594 |   | (1,186) |   | 2002 | 40 years |
| Oakwood Estates - Sioux Falls, SD    |            | 4,250                         |                        | 543                                                   |   | 2,784                       |   | 3,700 |   | 758 |   | 6,269 |   | 7,027 |   | (2,579) |   | 1993 | 40 years |
| Olympic Village - Billings, MT       |            | 11,298                        |                        | 1,164                                                 |   | 10,441                      |   | 1,795 |   | 1,433 |   | 11,967 |   | 13,400 |   | (3,363) |   | 2000 | 40 years |
| Olympik Village - Rochester, MN      |            | 4,815                         |                        | 1,034                                                 |   | 6,109                       |   | 1,131 |   | 1,116 |   | 7,158 |   | 8,274 |   | (1,140) |   | 2005 | 40 years |
| Oxbow Park - Sioux Falls, SD         |            | 4,150                         |                        | 404                                                   |   | 3,152                       |   | 2,277 |   | 478 |   | 5,355 |   | 5,833 |   | (2,163) |   | 1994 | 24-40 years |
| Park Meadows - Waite Park, MN        |            | 8,798                         |                        | 1,143                                                 |   | 9,099                       |   | 4,180 |   | 1,497 |   | 12,925 |   | 14,422 |   | (5,094) |   | 1997 | 40 years |
| Pebble Springs - Bismarck, ND(1)     |            | 0                             |                        | 7                                                     |   | 748                         |   | 92 |   | 39 |   | 808 |   | 847 |   | (254) |   | 1999 | 40 years |
| Pinehurst - Billings, MT             |            | 345                           |                        | 72                                                    |   | 687                         |   | 113 |   | 74 |   | 798 |   | 872 |   | (195) |   | 2002 | 40 years |
| Pines - Minot, ND                    |            | 143                           |                        | 35                                                    |   | 215                         |   | 92 |   | 40 |   | 302 |   | 342 |   | (103) |   | 2002 | 40 years |
| Plaza - Minot, ND(1)                 |            | 0                             |                        | 793                                                   |   | 0                           |   | 14,814 |   | 794 |   | 14,813 |   | 15,607 |   | (865) |   | 2009 | 40 years |
| Pointe West - Rapid City, SD         |            | 2,826                         |                        | 240                                                   |   | 3,538                       |   | 1,139 |   | 349 |   | 4,568 |   | 4,917 |   | (1,926) |   | 1994 | 24-40 years |
| Prairie Winds - Sioux Falls, SD      |            | 1,511                         |                        | 144                                                   |   | 1,816                       |   | 391 |   | 209 |   | 2,142 |   | 2,351 |   | (997) |   | 1993 | 24-40 years |
| Prairiewood Meadows - Fargo, ND      |            | 2,494                         |                        | 280                                                   |   | 2,531                       |   | 924 |   | 340 |   | 3,395 |   | 3,735 |   | (955) |   | 2000 | 40 years |
| Quarry Ridge - Rochester, MN         |            | 12,136                        |                        | 1,312                                                 |   | 13,362                      |   | 370 |   | 1,335 |   | 13,709 |   | 15,044 |   | (1,604) |   | 2006 | 40 years |
| Ridge Oaks - Sioux City, IA          |            | 0                             |                        | 178                                                   |   | 4,073                       |   | 1,935 |   | 256 |   | 5,930 |   | 6,186 |   | (1,685) |   | 2001 | 40 years |
| Rimrock West - Billings, MT          |            | 3,490                         |                        | 330                                                   |   | 3,489                       |   | 1,303 |   | 402 |   | 4,720 |   | 5,122 |   | (1,212) |   | 1999 | 40 years |
| Rocky Meadows - Billings, MT         |            | 5,411                         |                        | 656                                                   |   | 5,726                       |   | 805 |   | 750 |   | 6,437 |   | 7,187 |   | (2,401) |   | 1995 | 40 years |
| Rum River - Isanti, MN               |            | 3,801                         |                        | 843                                                   |   | 4,823                       |   | 40 |   | 844 |   | 4,862 |   | 5,706 |   | (493) |   | 2007 | 40 years |
| Sherwood - Topeka, KS                |            | 12,886                        |                        | 1,145                                                 |   | 14,684                      |   | 2,335 |   | 1,487 |   | 16,677 |   | 18,164 |   | (4,834) |   | 1999 | 40 years |
| Sierra Vista - Sioux Falls, SD       |            | 1,500                         |                        | 241                                                   |   | 2,097                       |   | 6 |   | 241 |   | 2,103 |   | 2,344 |   | (11) |   | 2011 | 40 years |
| South Pointe - Minot, ND             |            | 9,254                         |                        | 550                                                   |   | 9,548                       |   | 1,931 |   | 1,250 |   | 10,779 |   | 12,029 |   | (4,109) |   | 1995 | 24-40 years |
| Southview - Minot, ND(1)             |            | 0                             |                        | 185                                                   |   | 469                         |   | 266 |   | 219 |   | 701 |   | 920 |   | (280) |   | 1994 | 24-40 years |
| Southwind - Grand Forks, ND          |            | 5,910                         |                        | 400                                                   |   | 5,034                       |   | 2,082 |   | 706 |   | 6,810 |   | 7,516 |   | (2,571) |   | 1995 | 24-40 years |
| Summit Park - Minot, ND              |            | 1,238                         |                        | 161                                                   |   | 1,898                       |   | 824 |   | 241 |   | 2,642 |   | 2,883 |   | (915) |   | 1995 | 24-40 years |

Table of Contents

----

|                                            |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|-------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                     | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Multi-Family Residential - continued            |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunset Trail - Rochester, MN                    | $               | 8,480                         | $                           | 336                                                   | $      | 12,814                      | $      | 2,045 | $ | 493 | $ | 14,702 | $ | 15,195 | $ | (3,780) |   | 1999 | 40 years |
| Sycamore Village - Sioux Falls, SD              |            | 861                           |                        | 101                                                   |   | 1,317                       |   | 424 |   | 149 |   | 1,693 |   | 1,842 |   | (432) |   | 2002 | 40 years |
| Temple - Minot, ND                              |            | 0                             |                        | 0                                                     |   | 0                           |   | 224 |   | 0 |   | 224 |   | 224 |   | (29) |   | 2006 | 40 years |
| Terrace Heights - Minot, ND                     |            | 206                           |                        | 29                                                    |   | 312                         |   | 82 |   | 38 |   | 385 |   | 423 |   | (149) |   | 2006 | 40 years |
| Terrace On The Green - Moorhead, MN             |            | 2,236                         |                        | 24                                                    |   | 1,490                       |   | 1,829 |   | 130 |   | 3,213 |   | 3,343 |   | (2,216) |   | 1970 | 33-40 years |
| The Meadows - Jamestown, ND(1)                  |            | 943                           |                        | 590                                                   |   | 4,519                       |   | 1,035 |   | 639 |   | 5,505 |   | 6,144 |   | (1,520) |   | 1998 | 40 years |
| Thomasbrook - Lincoln, NE                       |            | 6,237                         |                        | 600                                                   |   | 10,306                      |   | 2,693 |   | 1,065 |   | 12,534 |   | 13,599 |   | (3,268) |   | 1999 | 40 years |
| University Park Place - St. Cloud, MN(1)        |            | 0                             |                        | 78                                                    |   | 450                         |   | 35 |   | 78 |   | 485 |   | 563 |   | (52) |   | 2007 | 40 years |
| Valley Park - Grand Forks, ND                   |            | 4,057                         |                        | 294                                                   |   | 4,137                       |   | 2,258 |   | 437 |   | 6,252 |   | 6,689 |   | (1,873) |   | 1999 | 40 years |
| Village Green - Rochester, MN                   |            | 1,407                         |                        | 234                                                   |   | 2,296                       |   | 471 |   | 332 |   | 2,669 |   | 3,001 |   | (540) |   | 2003 | 40 years |
| West Stonehill - Waite Park, MN                 |            | 9,077                         |                        | 939                                                   |   | 10,167                      |   | 4,052 |   | 1,216 |   | 13,942 |   | 15,158 |   | (5,619) |   | 1995 | 40 years |
| Westridge - Minot, ND                           |            | 0                             |                        | 68                                                    |   | 1,887                       |   | 35 |   | 70 |   | 1,920 |   | 1,990 |   | (144) |   | 2008 | 40 years |
| Westwood Park - Bismarck, ND                    |            | 2,068                         |                        | 116                                                   |   | 1,909                       |   | 1,597 |   | 239 |   | 3,383 |   | 3,622 |   | (1,003) |   | 1998 | 40 years |
| Winchester - Rochester, MN                      |            | 3,444                         |                        | 748                                                   |   | 5,622                       |   | 1,222 |   | 990 |   | 6,602 |   | 7,592 |   | (1,379) |   | 2003 | 40 years |
| Woodridge - Rochester, MN                       |            | 1,999                         |                        | 370                                                   |   | 6,028                       |   | 1,560 |   | 467 |   | 7,491 |   | 7,958 |   | (2,801) |   | 1997 | 40 years |
| Total Multi-Family Residential                  | $               | 272,594                       | $                           | 33,445                                                | $      | 345,817                     | $      | 105,553 | $ | 42,696 | $ | 442,119 | $ | 484,815 | $ | (117,718) |   |   |   |
|                                            |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Office                               |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Avenue Building - Minot, ND                 | $               | 0                             | $                           | 30                                                    | $      | 80                          | $      | (37) | $ | 33 | $ | 40 | $ | 73 | $ | 295 |   | 1981 | 33-40 years |
| 2030 Cliff Road - Eagan, MN                     |            | 0                             |                        | 146                                                   |   | 835                         |   | 90 |   | 158 |   | 913 |   | 1,071 |   | (219) |   | 2007 | 40 years |
| 610 Business Center IV - Brooklyn Park, MN      |            | 7,234                         |                        | 975                                                   |   | 5,542                       |   | 2,886 |   | 980 |   | 8,423 |   | 9,403 |   | (1,015) |   | 2001 | 19-40 years |
| 7800 West Brown Deer Road - Milwaukee, WI       |            | 11,054                        |                        | 1,455                                                 |   | 8,756                       |   | 2,031 |   | 1,475 |   | 10,767 |   | 12,242 |   | (2,503) |   | 2003 | 40 years |
| American Corporate Center - Mendota Heights, MN |            | 9,116                         |                        | 893                                                   |   | 16,768                      |   | 3,516 |   | 893 |   | 20,284 |   | 21,177 |   | (6,266) |   | 2002 | 40 years |
| Ameritrade - Omaha, NE                          |            | 3,533                         |                        | 327                                                   |   | 7,957                       |   | 65 |   | 327 |   | 8,022 |   | 8,349 |   | (2,412) |   | 1999 | 40 years |
| Benton Business Park - Sauk Rapids, MN          |            | 687                           |                        | 188                                                   |   | 1,261                       |   | 78 |   | 188 |   | 1,339 |   | 1,527 |   | (285) |   | 2003 | 40 years |
| Bismarck 715 East Broadway - Bismarck, ND       |            | 0                             |                        | 389                                                   |   | 0                           |   | 2,362 |   | 401 |   | 2,350 |   | 2,751 |   | (119) |   | 2008 | 40 years |
| Bloomington Business Plaza - Bloomington, MN    |            | 0                             |                        | 1,300                                                 |   | 6,106                       |   | 749 |   | 1,305 |   | 6,850 |   | 8,155 |   | (1,976) |   | 2001 | 40 years |
| Brenwood - Minnetonka, MN                       |            | 0                             |                        | 1,688                                                 |   | 12,138                      |   | 3,264 |   | 1,697 |   | 15,393 |   | 17,090 |   | (4,201) |   | 2002 | 40 years |
| Brook Valley I - La Vista, NE                   |            | 1,384                         |                        | 347                                                   |   | 1,671                       |   | 81 |   | 347 |   | 1,752 |   | 2,099 |   | (252) |   | 2005 | 40 years |
| Burnsville Bluffs II - Burnsville, MN           |            | 1,792                         |                        | 300                                                   |   | 2,154                       |   | 903 |   | 301 |   | 3,056 |   | 3,357 |   | (998) |   | 2001 | 40 years |
| Cold Spring Center - St. Cloud, MN              |            | 5,975                         |                        | 588                                                   |   | 7,808                       |   | 907 |   | 592 |   | 8,711 |   | 9,303 |   | (2,402) |   | 2001 | 40 years |
| Corporate Center West - Omaha, NE               |            | 17,315                        |                        | 3,880                                                 |   | 17,509                      |   | 303 |   | 4,167 |   | 17,525 |   | 21,692 |   | (2,048) |   | 2006 | 40 years |

Table of Contents

----

|                                            |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|-------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                     | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Commercial Office - continued                   |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crosstown Centre - Eden Prairie, MN             | $               | 14,139                        | $                           | 2,884                                                 | $      | 14,569                      | $      | 1,235 | $ | 2,900 | $ | 15,788 | $ | 18,688 | $ | (2,543) |   | 2004 | 40 years |
| Dewey Hill Business Center - Edina, MN          |            | 0                             |                        | 985                                                   |   | 3,507                       |   | 921 |   | 995 |   | 4,418 |   | 5,413 |   | (1,399) |   | 2000 | 40 years |
| Farnam Executive Center - Omaha, NE             |            | 12,160                        |                        | 2,188                                                 |   | 11,404                      |   | 0 |   | 2,188 |   | 11,404 |   | 13,592 |   | (1,319) |   | 2006 | 40 years |
| Flagship - Eden Prairie, MN                     |            | 21,565                        |                        | 1,899                                                 |   | 21,638                      |   | 822 |   | 2,013 |   | 22,346 |   | 24,359 |   | (2,817) |   | 2006 | 40 years |
| Gateway Corporate Center - Woodbury, MN         |            | 8,700                         |                        | 1,637                                                 |   | 7,763                       |   | 90 |   | 1,637 |   | 7,853 |   | 9,490 |   | (932) |   | 2006 | 40 years |
| Golden Hills Office Center - Golden Valley, MN  |            | 18,500                        |                        | 3,018                                                 |   | 18,325                      |   | 3,424 |   | 3,018 |   | 21,749 |   | 24,767 |   | (5,494) |   | 2003 | 40 years |
| Great Plains - Fargo, ND                        |            | 3,140                         |                        | 126                                                   |   | 15,240                      |   | 10 |   | 126 |   | 15,250 |   | 15,376 |   | (4,464) |   | 1997 | 40 years |
| Highlands Ranch I - Highlands Ranch, CO         |            | 8,640                         |                        | 2,268                                                 |   | 8,362                       |   | 428 |   | 2,268 |   | 8,790 |   | 11,058 |   | (987) |   | 2006 | 40 years |
| Highlands Ranch II - Highlands Ranch, CO        |            | 8,447                         |                        | 1,437                                                 |   | 9,549                       |   | 996 |   | 1,437 |   | 10,545 |   | 11,982 |   | (1,995) |   | 2004 | 40 years |
| Interlachen Corporate Center - Edina, MN        |            | 9,293                         |                        | 1,650                                                 |   | 14,983                      |   | 965 |   | 1,652 |   | 15,946 |   | 17,598 |   | (3,786) |   | 2001 | 40 years |
| Intertech Building - Fenton, MO                 |            | 4,631                         |                        | 2,130                                                 |   | 3,968                       |   | 75 |   | 2,130 |   | 4,043 |   | 6,173 |   | (355) |   | 2007 | 40 years |
| IRET Corporate Plaza - Minot, ND(1)             |            | 0                             |                        | 389                                                   |   | 5,444                       |   | 3,433 |   | 590 |   | 8,676 |   | 9,266 |   | (590) |   | 2009 | 40 years |
| Mendota Office Center I - Mendota Heights, MN   |            | 3,925                         |                        | 835                                                   |   | 6,169                       |   | 367 |   | 835 |   | 6,536 |   | 7,371 |   | (1,687) |   | 2002 | 40 years |
| Mendota Office Center II - Mendota Heights, MN  |            | 5,800                         |                        | 1,121                                                 |   | 10,085                      |   | 1,461 |   | 1,121 |   | 11,546 |   | 12,667 |   | (3,327) |   | 2002 | 40 years |
| Mendota Office Center III - Mendota Heights, MN |            | 3,986                         |                        | 970                                                   |   | 5,734                       |   | 253 |   | 970 |   | 5,987 |   | 6,957 |   | (1,491) |   | 2002 | 40 years |
| Mendota Office Center IV - Mendota Heights, MN  |            | 4,739                         |                        | 1,070                                                 |   | 7,635                       |   | 578 |   | 1,070 |   | 8,213 |   | 9,283 |   | (2,077) |   | 2002 | 40 years |
| Minnesota National Bank - Duluth, MN            |            | 917                           |                        | 287                                                   |   | 1,454                       |   | 4 |   | 288 |   | 1,457 |   | 1,745 |   | (256) |   | 2004 | 40 years |
| Minot 2505 16th Street SW - Minot, ND(1)        |            | 0                             |                        | 298                                                   |   | 1,724                       |   | 0 |   | 298 |   | 1,724 |   | 2,022 |   | (66) |   | 2009 | 40 years |
| Miracle Hills One - Omaha, NE                   |            | 8,895                         |                        | 1,974                                                 |   | 10,117                      |   | 1,258 |   | 2,120 |   | 11,229 |   | 13,349 |   | (1,662) |   | 2006 | 40 years |
| Nicollett VII - Burnsville, MN                  |            | 0                             |                        | 429                                                   |   | 6,931                       |   | 140 |   | 436 |   | 7,064 |   | 7,500 |   | (1,785) |   | 2001 | 40 years |
| Northgate I - Maple Grove, MN                   |            | 5,504                         |                        | 1,062                                                 |   | 6,358                       |   | 832 |   | 1,077 |   | 7,175 |   | 8,252 |   | (1,224) |   | 2004 | 40 years |
| Northgate II - Maple Grove, MN                  |            | 979                           |                        | 359                                                   |   | 1,944                       |   | 144 |   | 403 |   | 2,044 |   | 2,447 |   | (625) |   | 1999 | 40 years |
| Northpark Corporate Center - Arden Hills, MN    |            | 13,058                        |                        | 2,034                                                 |   | 14,584                      |   | 1,104 |   | 2,034 |   | 15,688 |   | 17,722 |   | (2,119) |   | 2006 | 40 years |
| Omaha 10802 Farnam Dr - Omaha, NE               |            | 5,507                         |                        | 2,462                                                 |   | 4,374                       |   | 0 |   | 2,462 |   | 4,374 |   | 6,836 |   | (41) |   | 2010 | 40 years |
| Pacific Hills - Omaha, NE                       |            | 16,770                        |                        | 4,220                                                 |   | 11,988                      |   | 1,249 |   | 4,478 |   | 12,979 |   | 17,457 |   | (1,684) |   | 2006 | 40 years |
| Pillsbury Business Center - Bloomington, MN     |            | 0                             |                        | 284                                                   |   | 1,556                       |   | 120 |   | 284 |   | 1,676 |   | 1,960 |   | (437) |   | 2001 | 40 years |
| Plaza VII - Boise, ID                           |            | 1,107                         |                        | 300                                                   |   | 3,058                       |   | 414 |   | 351 |   | 3,421 |   | 3,772 |   | (828) |   | 2003 | 40 years |
| Plymouth 5095 Nathan Lane - Plymouth, MN        |            | 1,274                         |                        | 604                                                   |   | 1,253                       |   | 40 |   | 604 |   | 1,293 |   | 1,897 |   | (123) |   | 2007 | 40 years |
| Plymouth I - Plymouth, MN                       |            | 1,234                         |                        | 530                                                   |   | 1,133                       |   | 27 |   | 530 |   | 1,160 |   | 1,690 |   | (208) |   | 2004 | 40 years |
| Plymouth II - Plymouth, MN                      |            | 1,234                         |                        | 367                                                   |   | 1,264                       |   | 41 |   | 367 |   | 1,305 |   | 1,672 |   | (233) |   | 2004 | 40 years |
| Plymouth III - Plymouth, MN                     |            | 1,518                         |                        | 507                                                   |   | 1,495                       |   | 350 |   | 507 |   | 1,845 |   | 2,352 |   | (345) |   | 2004 | 40 years |
| Plymouth IV & V - Plymouth, MN              |            | 7,168                         |                        | 1,336                                                 |   | 12,693                      |   | 1,317 |   | 1,338 |   | 14,008 |   | 15,346 |   | (3,823) |   | 2001 | 40 years |

Table of Contents

----

|                                                               |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|--------------------------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                                        | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Commercial Office - continued                                      |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prairie Oak Business Center - Eden Prairie, MN                     | $               | 3,466                         | $                           | 531                                                   | $      | 4,069                       | $      | 1,468 | $ | 563 | $ | 5,505 | $ | 6,068 | $ | (1,497) |   | 2003 | 40 years |
| Rapid City 900 Concourse Drive - Rapid City, SD                    |            | 2,014                         |                        | 285                                                   |   | 6,600                       |   | 276 |   | 321 |   | 6,840 |   | 7,161 |   | (1,838) |   | 2000 | 40 years |
| Riverport - Maryland Heights, MO                                   |            | 19,690                        |                        | 1,891                                                 |   | 18,982                      |   | 26 |   | 1,917 |   | 18,982 |   | 20,899 |   | (2,197) |   | 2006 | 40 years |
| Southeast Tech Center - Eagan, MN                                  |            | 1,762                         |                        | 560                                                   |   | 5,496                       |   | 352 |   | 569 |   | 5,839 |   | 6,408 |   | (1,802) |   | 1999 | 40 years |
| Spring Valley IV - Omaha, NE                                       |            | 824                           |                        | 178                                                   |   | 916                         |   | 60 |   | 186 |   | 968 |   | 1,154 |   | (159) |   | 2005 | 40 years |
| Spring Valley V - Omaha, NE                                        |            | 907                           |                        | 212                                                   |   | 1,123                       |   | 251 |   | 240 |   | 1,346 |   | 1,586 |   | (203) |   | 2005 | 40 years |
| Spring Valley X - Omaha, NE                                        |            | 841                           |                        | 180                                                   |   | 1,024                       |   | 32 |   | 180 |   | 1,056 |   | 1,236 |   | (155) |   | 2005 | 40 years |
| Spring Valley XI - Omaha, NE                                       |            | 824                           |                        | 143                                                   |   | 1,094                       |   | 35 |   | 151 |   | 1,121 |   | 1,272 |   | (160) |   | 2005 | 40 years |
| Superior Office Building - Duluth, MN                              |            | 1,378                         |                        | 336                                                   |   | 2,200                       |   | 2 |   | 336 |   | 2,202 |   | 2,538 |   | (388) |   | 2004 | 40 years |
| TCA Building - Eagan, MN                                           |            | 7,968                         |                        | 627                                                   |   | 8,571                       |   | 807 |   | 684 |   | 9,321 |   | 10,005 |   | (2,040) |   | 2003 | 40 years |
| Three Paramount Plaza - Bloomington, MN(1)                         |            | 0                             |                        | 1,261                                                 |   | 6,149                       |   | 1,825 |   | 1,298 |   | 7,937 |   | 9,235 |   | (2,003) |   | 2002 | 40 years |
| Thresher Square - Minneapolis, MN                                  |            | 0                             |                        | 1,094                                                 |   | 10,026                      |   | 1,678 |   | 1,104 |   | 11,694 |   | 12,798 |   | (2,859) |   | 2002 | 40 years |
| Timberlands - Leawood, KS                                          |            | 13,155                        |                        | 2,375                                                 |   | 12,218                      |   | 659 |   | 2,495 |   | 12,757 |   | 15,252 |   | (1,759) |   | 2006 | 40 years |
| UHC Office - International Falls, MN                               |            | 1,168                         |                        | 119                                                   |   | 2,366                       |   | 80 |   | 119 |   | 2,446 |   | 2,565 |   | (445) |   | 2004 | 40 years |
| US Bank Financial Center - Bloomington, MN                         |            | 14,016                        |                        | 3,117                                                 |   | 13,350                      |   | 580 |   | 3,119 |   | 13,928 |   | 17,047 |   | (2,164) |   | 2005 | 40 years |
| Viromed - Eden Prairie, MN                                         |            | 907                           |                        | 666                                                   |   | 4,197                       |   | 1 |   | 666 |   | 4,198 |   | 4,864 |   | (1,281) |   | 1999 | 40 years |
| Wells Fargo Center - St Cloud, MN                                  |            | 6,336                         |                        | 869                                                   |   | 8,373                       |   | 1,083 |   | 869 |   | 9,456 |   | 10,325 |   | (1,512) |   | 2005 | 40 years |
| West River Business Park - Waite Park, MN                          |            | 687                           |                        | 235                                                   |   | 1,195                       |   | 47 |   | 235 |   | 1,242 |   | 1,477 |   | (258) |   | 2003 | 40 years |
| Westgate - Boise, ID                                               |            | 4,373                         |                        | 1,000                                                 |   | 10,618                      |   | 1,911 |   | 1,000 |   | 12,529 |   | 13,529 |   | (2,627) |   | 2003 | 40 years |
| Whitewater Plaza - Minnetonka, MN                                  |            | 3,965                         |                        | 530                                                   |   | 4,860                       |   | 716 |   | 577 |   | 5,529 |   | 6,106 |   | (1,345) |   | 2002 | 40 years |
| Wirth Corporate Center - Golden Valley, MN                         |            | 3,777                         |                        | 970                                                   |   | 7,659                       |   | 868 |   | 971 |   | 8,526 |   | 9,497 |   | (2,172) |   | 2002 | 40 years |
| Woodlands Plaza IV - Maryland Heights, MO                          |            | 4,360                         |                        | 771                                                   |   | 4,609                       |   | 741 |   | 837 |   | 5,284 |   | 6,121 |   | (663) |   | 2006 | 40 years |
| Total Commercial Office                                            | $               | 343,338                       | $                           | 72,116                                                | $      | 470,581                     | $      | 52,794 | $ | 73,828 |   | 521,663 | $ | 595,491 | $ | (104,650) |   |   |   |
|                                                               |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Medical                                                 |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2800 Medical Building - Minneapolis, MN                            | $               | 5,763                         | $                           | 204                                                   | $      | 7,135                       | $      | 2,149 | $ | 229 | $ | 9,259 | $ | 9,488 | $ | (1,582) |   | 2005 | 40 years |
| 2828 Chicago Avenue - Minneapolis, MN                              |            | 8,669                         |                        | 726                                                   |   | 11,319                      |   | 5,628 |   | 729 |   | 16,944 |   | 17,673 |   | (1,517) |   | 2007 | 40 years |
| Airport Medical - Bloomington, MN                                  |            | 1,640                         |                        | 0                                                     |   | 4,678                       |   | 0 |   | 0 |   | 4,678 |   | 4,678 |   | (1,263) |   | 2002 | 40 years |
| Barry Pointe Office Park - Kansas City, MO                         |            | 1,493                         |                        | 384                                                   |   | 2,366                       |   | 104 |   | 392 |   | 2,462 |   | 2,854 |   | (259) |   | 2007 | 40 years |
| Billings 2300 Grant Road - Billings, MT                            |            | 1,976                         |                        | 649                                                   |   | 1,216                       |   | 0 |   | 649 |   | 1,216 |   | 1,865 |   | (24) |   | 2010 | 40 years |
| Burnsville 303 Nicollet Medical (Ridgeview) - Burnsville, MN       |            | 7,574                         |                        | 1,071                                                 |   | 6,842                       |   | 723 |   | 1,071 |   | 7,565 |   | 8,636 |   | (591) |   | 2008 | 40 years |
| Burnsville 305 Nicollet Medical (Ridgeview South) - Burnsville, MN |            | 4,734                         |                        | 189                                                   |   | 5,127                       |   | 550 |   | 189 |   | 5,677 |   | 5,866 |   | (466) |   | 2008 | 40 years |

Table of Contents

----

|                                                           |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|----------------------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                                    | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Commercial Medical - continued                                 |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Casper 1930 E 12th Street (Park Place) - Casper, WY(1)         | $               | 0                             | $                           | 439                                                   | $      | 5,780                       | $      | (47) | $ | 439 | $ | 5,733 | $ | 6,172 | $ | (196) |   | 2009 | 40 years |
| Casper 3955 E 12th Street (Meadow Wind) - Casper, WY(1)        |            | 0                             |                        | 338                                                   |   | 5,881                       |   | (2) |   | 338 |   | 5,879 |   | 6,217 |   | (202) |   | 2009 | 40 years |
| Cheyenne 4010 N College Drive (Aspen Wind) - Cheyenne, WY(1)   |            | 0                             |                        | 628                                                   |   | 9,869                       |   | (2) |   | 628 |   | 9,867 |   | 10,495 |   | (339) |   | 2009 | 40 years |
| Cheyenne 4606 N College Drive (Sierra Hills) - Cheyenne, WY(1) |            | 0                             |                        | 695                                                   |   | 7,455                       |   | 0 |   | 695 |   | 7,455 |   | 8,150 |   | (256) |   | 2009 | 40 years |
| Denfeld Clinic - Duluth, MN                                    |            | 1,859                         |                        | 501                                                   |   | 2,597                       |   | 1 |   | 501 |   | 2,598 |   | 3,099 |   | (458) |   | 2004 | 40 years |
| Eagan 1440 Duckwood Medical - Eagan, MN                        |            | 1,894                         |                        | 521                                                   |   | 1,547                       |   | 519 |   | 521 |   | 2,066 |   | 2,587 |   | (259) |   | 2008 | 40 years |
| Edgewood Vista - Belgrade, MT                                  |            | 0                             |                        | 35                                                    |   | 779                         |   | 0 |   | 35 |   | 779 |   | 814 |   | (61) |   | 2008 | 40 years |
| Edgewood Vista - Billings, MT                                  |            | 2,026                         |                        | 115                                                   |   | 1,782                       |   | (15) |   | 115 |   | 1,767 |   | 1,882 |   | (142) |   | 2008 | 40 years |
| Edgewood Vista - Bismarck, ND                                  |            | 5,854                         |                        | 511                                                   |   | 9,193                       |   | 36 |   | 511 |   | 9,229 |   | 9,740 |   | (1,296) |   | 2005 | 40 years |
| Edgewood Vista - Brainerd, MN                                  |            | 5,786                         |                        | 587                                                   |   | 8,999                       |   | 34 |   | 587 |   | 9,033 |   | 9,620 |   | (1,268) |   | 2005 | 40 years |
| Edgewood Vista - Columbus, NE(1)                               |            | 0                             |                        | 43                                                    |   | 824                         |   | 0 |   | 43 |   | 824 |   | 867 |   | (64) |   | 2008 | 40 years |
| Edgewood Vista - East Grand Forks, MN                          |            | 3,087                         |                        | 290                                                   |   | 1,383                       |   | (31) |   | 290 |   | 1,352 |   | 1,642 |   | (109) |   | 2000 | 40 years |
| Edgewood Vista - Fargo, ND                                     |            | 13,720                        |                        | 775                                                   |   | 20,870                      |   | 0 |   | 775 |   | 20,870 |   | 21,645 |   | (1,630) |   | 2008 | 40 years |
| Edgewood Vista - Fremont, NE                                   |            | 624                           |                        | 56                                                    |   | 490                         |   | 42 |   | 56 |   | 532 |   | 588 |   | (129) |   | 2008 | 40 years |
| Edgewood Vista - Grand Island, NE(1)                           |            | 0                             |                        | 33                                                    |   | 773                         |   | 0 |   | 33 |   | 773 |   | 806 |   | (60) |   | 2000 | 40 years |
| Edgewood Vista - Hastings, NE                                  |            | 643                           |                        | 49                                                    |   | 517                         |   | 41 |   | 49 |   | 558 |   | 607 |   | (139) |   | 2008 | 40 years |
| Edgewood Vista - Hermantown I, MN                              |            | 17,251                        |                        | 288                                                   |   | 9,871                       |   | 1,501 |   | 288 |   | 11,372 |   | 11,660 |   | (2,736) |   | 2000 | 40 years |
| Edgewood Vista - Hermantown II, MN                             |            | 6,705                         |                        | 719                                                   |   | 10,517                      |   | 33 |   | 719 |   | 10,550 |   | 11,269 |   | (1,482) |   | 2005 | 40 years |
| Edgewood Vista - Kalispell, MT                                 |            | 645                           |                        | 70                                                    |   | 502                         |   | 52 |   | 70 |   | 554 |   | 624 |   | (135) |   | 2001 | 40 years |
| Edgewood Vista - Minot, ND                                     |            | 9,865                         |                        | 1,046                                                 |   | 11,590                      |   | 0 |   | 1,046 |   | 11,590 |   | 12,636 |   | (133) |   | 2010 | 40 years |
| Edgewood Vista - Missoula, MT                                  |            | 916                           |                        | 109                                                   |   | 854                         |   | 36 |   | 109 |   | 890 |   | 999 |   | (312) |   | 1996 | 40 years |
| Edgewood Vista - Norfolk, NE(1)                                |            | 0                             |                        | 42                                                    |   | 722                         |   | 0 |   | 42 |   | 722 |   | 764 |   | (56) |   | 2008 | 40 years |
| Edgewood Vista - Omaha, NE                                     |            | 408                           |                        | 89                                                    |   | 547                         |   | 40 |   | 89 |   | 587 |   | 676 |   | (142) |   | 2001 | 40 years |
| Edgewood Vista - Sioux Falls, SD                               |            | 1,161                         |                        | 314                                                   |   | 1,001                       |   | (27) |   | 314 |   | 974 |   | 1,288 |   | (79) |   | 2008 | 40 years |
| Edgewood Vista - Spearfish, SD                                 |            | 3,645                         |                        | 315                                                   |   | 8,584                       |   | 35 |   | 315 |   | 8,619 |   | 8,934 |   | (839) |   | 2005 | 40 years |
| Edgewood Vista - Virginia, MN                                  |            | 14,674                        |                        | 246                                                   |   | 11,823                      |   | 76 |   | 246 |   | 11,899 |   | 12,145 |   | (2,461) |   | 2002 | 40 years |
| Edina 6363 France Medical - Edina, MN(1)                       |            | 0                             |                        | 0                                                     |   | 12,675                      |   | 20 |   | 0 |   | 12,695 |   | 12,695 |   | (1,397) |   | 2008 | 40 years |
| Edina 6405 France Medical  - Edina, MN               |            | 9,347                         |                        | 0                                                     |   | 12,201                      |   | 0 |   | 0 |   | 12,201 |   | 12,201 |   | (1,232) |   | 2008 | 40 years |
| Edina 6517 Drew Avenue - Edina, MN                             |            | 1,192                         |                        | 353                                                   |   | 660                         |   | 524 |   | 372 |   | 1,165 |   | 1,537 |   | (341) |   | 2002 | 40 years |
| Edina 6525 France SMC II - Edina, MN                           |            | 10,500                        |                        | 755                                                   |   | 8,054                       |   | 5,945 |   | 1,003 |   | 13,751 |   | 14,754 |   | (3,955) |   | 2003 | 40 years |
| Edina 6545 France SMC I - Edina MN                             |            | 31,836                        |                        | 3,480                                                 |   | 30,743                      |   | 11,020 |   | 3,480 |   | 41,763 |   | 45,243 |   | (10,938) |   | 2001 | 40 years |
| Fresenius - Duluth, MN                                         |            | 841                           |                        | 50                                                    |   | 1,520                       |   | 2 |   | 50 |   | 1,522 |   | 1,572 |   | (268) |   | 2004 | 40 years |

Table of Contents

----

|                                                              |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        | Life on whichdepreciation inlatest incomestatement iscomputed |
|-------------------------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|---------------------------------------------------------------|
| Description                                                       | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total                                                         | AccumulatedDepreciation | Date ofConstructionor Acquisition |
| Commercial Medical - continued                                    |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Garden View - St. Paul, MN                                        | $               | 2,270                         | $                           | 0                                                     | $      | 7,408                       | $                                                             | 484 | $ | 0 | $ | 7,892 | $ | 7,892 | $ | (1,814) |   | 2002 | 40 years |
| Gateway Clinic - Sandstone, MN                                    |            | 1,076                         |                        | 66                                                    |   | 1,699                       |                                                          | 1 |   | 66 |   | 1,700 |   | 1,766 |   | (299) |   | 2004 | 40 years |
| Healtheast St John & Woodwinds - Maplewood & Woodbury, MN |            | 12,678                        |                        | 3,239                                                 |   | 18,362                      |                                                          | 0 |   | 3,239 |   | 18,362 |   | 21,601 |   | (5,030) |   | 2000 | 40 years |
| High Pointe Health Campus - Lake Elmo, MN                         |            | 2,243                         |                        | 1,305                                                 |   | 10,528                      |                                                          | 1,378 |   | 1,322 |   | 11,889 |   | 13,211 |   | (2,023) |   | 2004 | 40 years |
| Laramie 1072 N 22nd Street (Spring Wind) - Laramie, WY(1)         |            | 0                             |                        | 406                                                   |   | 6,634                       |                                                          | (2) |   | 406 |   | 6,632 |   | 7,038 |   | (228) |   | 2009 | 40 years |
| Mariner Clinic - Superior, WI                                     |            | 2,354                         |                        | 0                                                     |   | 3,781                       |                                                          | 21 |   | 20 |   | 3,782 |   | 3,802 |   | (669) |   | 2004 | 40 years |
| Minneapolis 701 25th Avenue Medical - Minneapolis, MN             |            | 6,580                         |                        | 0                                                     |   | 7,873                       |                                                          | 0 |   | 0 |   | 7,873 |   | 7,873 |   | (615) |   | 2008 | 40 years |
| Missoula 3050 Great Northern - Missoula, MT                       |            | 2,092                         |                        | 640                                                   |   | 1,331                       |                                                          | 0 |   | 640 |   | 1,331 |   | 1,971 |   | (26) |   | 2010 | 40 years |
| Nebraska Orthopedic Hospital - Omaha, NE                          |            | 12,780                        |                        | 0                                                     |   | 20,272                      |                                                          | 1,526 |   | 0 |   | 21,798 |   | 21,798 |   | (3,588) |   | 2004 | 40 years |
| Park Dental - Brooklyn Center, MN                                 |            | 940                           |                        | 185                                                   |   | 2,767                       |                                                          | 0 |   | 185 |   | 2,767 |   | 2,952 |   | (597) |   | 2002 | 40 years |
| Pavilion I - Duluth, MN                                           |            | 6,203                         |                        | 1,245                                                 |   | 8,898                       |                                                          | 31 |   | 1,245 |   | 8,929 |   | 10,174 |   | (1,541) |   | 2004 | 40 years |
| Pavilion II - Duluth, MN                                          |            | 11,414                        |                        | 2,715                                                 |   | 14,673                      |                                                          | 1,939 |   | 2,717 |   | 16,610 |   | 19,327 |   | (3,691) |   | 2004 | 40 years |
| Ritchie Medical Plaza - St Paul, MN                               |            | 6,898                         |                        | 1,615                                                 |   | 7,851                       |                                                          | 943 |   | 1,647 |   | 8,762 |   | 10,409 |   | (1,306) |   | 2005 | 40 years |
| Sartell 2000 23rd Street South - Sartell, MN                      |            | 4,684                         |                        | 0                                                     |   | 11,781                      |                                                          | 912 |   | 0 |   | 12,693 |   | 12,693 |   | (2,810) |   | 2002 | 40 years |
| St Michael Clinic - St Michael, MN                                |            | 1,996                         |                        | 328                                                   |   | 2,259                       |                                                          | 264 |   | 328 |   | 2,523 |   | 2,851 |   | (257) |   | 2007 | 40 years |
| Stevens Point - Stevens Point, WI                                 |            | 10,170                        |                        | 442                                                   |   | 3,888                       |                                                          | 10,495 |   | 442 |   | 14,383 |   | 14,825 |   | (1,618) |   | 2006 | 40 years |
| Wells Clinic - Hibbing, MN                                        |            | 1,642                         |                        | 162                                                   |   | 2,497                       |                                                          | 1 |   | 162 |   | 2,498 |   | 2,660 |   | (439) |   | 2004 | 40 years |
| Total Commercial Medical                                          | $               | 262,348                       | $                           | 29,063                                                | $      | 371,788                     | $                                                             | 46,980 | $ | 29,437 |   | 418,394 | $ | 447,831 | $ | (65,367) |   |   |   |
|                                                              |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Industrial                                             |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| API Building - Duluth, MN                                         | $               | 934                           | $                           | 115                                                   | $      | 1,605                       | $                                                             | 3 | $ | 115 | $ | 1,608 | $ | 1,723 | $ | (283) |   | 2004 | 40 years |
| Bloomington 2000 W 94th Street - Bloomington, MN                  |            | 3,890                         |                        | 2,133                                                 |   | 4,097                       |                                                          | 993 |   | 2,133 |   | 5,090 |   | 7,223 |   | (533) |   | 2006 | 40 years |
| Bodycote Industrial Building - Eden Prairie, MN                   |            | 1,186                         |                        | 198                                                   |   | 1,154                       |                                                          | 800 |   | 198 |   | 1,954 |   | 2,152 |   | (760) |   | 1992 | 40 years |
| Brooklyn Park 7401 Boone Avenue - Brooklyn Park, MN               |            | 6,571                         |                        | 1,368                                                 |   | 11,643                      |                                                          | 1,780 |   | 1,368 |   | 13,423 |   | 14,791 |   | (2,861) |   | 2007 | 40 years |
| Cedar Lake Business Center - St. Louis Park, MN                   |            | 2,389                         |                        | 895                                                   |   | 2,810                       |                                                          | 50 |   | 895 |   | 2,860 |   | 3,755 |   | (285) |   | 2009 | 40 years |
| Clive 2075 NW 94th Street - Clive, IA                             |            | 2,250                         |                        | 408                                                   |   | 2,611                       |                                                          | 48 |   | 408 |   | 2,659 |   | 3,067 |   | (113) |   | 2002 | 40 years |
| Dixon Avenue Industrial Park - Des Moines, IA                     |            | 7,296                         |                        | 1,439                                                 |   | 10,758                      |                                                          | 1,102 |   | 1,439 |   | 11,860 |   | 13,299 |   | (2,823) |   | 2008 | 40 years |
| Eagan 2785 & 2795 Highway 55 - Eagan, MN                      |            | 3,624                         |                        | 3,058                                                 |   | 2,570                       |                                                          | 0 |   | 3,058 |   | 2,570 |   | 5,628 |   | (208) |   | 1999 | 40 years |
| Fargo 1320 45th Street N - Fargo, ND(1)                           |            | 0                             |                        | 395                                                   |   | 3,518                       |                                                          | 246 |   | 395 |   | 3,764 |   | 4,159 |   | (78) |   | 2010 | 40 years |
| Lexington Commerce Center - Eagan, MN                             |            | 2,447                         |                        | 453                                                   |   | 4,352                       |                                                          | 1,833 |   | 480 |   | 6,158 |   | 6,638 |   | (1,993) |   | 2004 | 40 years |
| Lighthouse - Duluth, MN                                           |            | 981                           |                        | 90                                                    |   | 1,788                       |                                                          | 7 |   | 90 |   | 1,795 |   | 1,885 |   | (318) |   | 2002 | 40 years |
| Metal Improvement Company - New Brighton, MN                      |            | 1,557                         |                        | 240                                                   |   | 2,189                       |                                                          | 78 |   | 240 |   | 2,267 |   | 2,507 |   | (526) |   | 2009 | 40 years |

Table of Contents

----

|                                             |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        | Life on whichdepreciation inlatest incomestatement iscomputed |
|--------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|---------------------------------------------------------------|
| Description                                      | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total                                                         | AccumulatedDepreciation | Date ofConstructionor Acquisition |
| Commercial Industrial - continued                |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Minnetonka 13600 County Road 62 - Minnetonka, MN | $               | 2,412                         | $                           | 809                                                   | $      | 434                         | $                                                             | 2,459 | $ | 809 | $ | 2,893 | $ | 3,702 | $ | (163) |   | 2006 | 40 years |
| Roseville 2929 Long Lake Road - Roseville, MN    |            | 5,721                         |                        | 1,966                                                 |   | 7,272                       |                                                          | 1,483 |   | 1,980 |   | 8,741 |   | 10,721 |   | (985) |   | 1995 | 40 years |
| Stone Container - Fargo, ND                      |            | 2,334                         |                        | 440                                                   |   | 6,597                       |                                                          | 104 |   | 440 |   | 6,701 |   | 7,141 |   | (2,273) |   | 2001 | 40 years |
| Stone Container - Roseville, MN                  |            | 3,743                         |                        | 810                                                   |   | 7,440                       |                                                          | 32 |   | 810 |   | 7,472 |   | 8,282 |   | (1,744) |   | 2007 | 40 years |
| Urbandale 3900 106th Street - Urbandale, IA      |            | 10,800                        |                        | 3,680                                                 |   | 10,089                      |                                                          | 493 |   | 3,721 |   | 10,541 |   | 14,262 |   | (1,106) |   | 2000 | 40 years |
| Winsted Industrial Building - Winsted, MN        |            | 411                           |                        | 100                                                   |   | 901                         |                                                          | 48 |   | 100 |   | 949 |   | 1,049 |   | (282) |   | 2001 | 40 years |
| Woodbury 1865 Woodlane - Woodbury, MN            |            | 2,810                         |                        | 1,108                                                 |   | 2,628                       |                                                          | 1,882 |   | 1,121 |   | 4,497 |   | 5,618 |   | (379) |   | 2007 | 40 years |
| Total Commercial Industrial                      | $               | 61,356                        | $                           | 19,705                                                | $      | 84,456                      | $                                                             | 13,441 | $ | 19,800 |   | 97,802 | $ | 117,602 | $ | (17,713) |   |   |   |
|                                             |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial Retail                                |            |                          |                        |                                                  |   |                        |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| 17 South Main - Minot, ND                        | $               | 0                             | $                           | 15                                                    | $      | 75                          | $                                                             | 197 | $ | 17 | $ | 270 | $ | 287 | $ | (175) |   | 2000 | 40 years |
| Anoka Strip Center - Anoka, MN                   |            | 0                             |                        | 123                                                   |   | 602                         |                                                          | 25 |   | 134 |   | 616 |   | 750 |   | (127) |   | 2003 | 40 years |
| Burnsville 1 Strip Center - Burnsville, MN       |            | 461                           |                        | 208                                                   |   | 773                         |                                                          | 208 |   | 208 |   | 981 |   | 1,189 |   | (200) |   | 2003 | 40 years |
| Burnsville 2 Strip Center - Burnsville, MN       |            | 366                           |                        | 291                                                   |   | 469                         |                                                          | 214 |   | 294 |   | 680 |   | 974 |   | (148) |   | 2003 | 40 years |
| Champlin South Pond - Champlin, MN               |            | 1,729                         |                        | 842                                                   |   | 2,703                       |                                                          | 48 |   | 866 |   | 2,727 |   | 3,593 |   | (502) |   | 2004 | 40 years |
| Chan West Village - Chanhassen, MN               |            | 13,722                        |                        | 5,035                                                 |   | 14,665                      |                                                          | 1,734 |   | 5,606 |   | 15,828 |   | 21,434 |   | (3,410) |   | 2003 | 40 years |
| Dakota West Plaza - Minot , ND                   |            | 379                           |                        | 92                                                    |   | 493                         |                                                          | 28 |   | 106 |   | 507 |   | 613 |   | (66) |   | 2006 | 40 years |
| Duluth Denfeld Retail - Duluth, MN               |            | 2,624                         |                        | 276                                                   |   | 4,699                       |                                                          | 62 |   | 276 |   | 4,761 |   | 5,037 |   | (839) |   | 2004 | 40 years |
| Duluth NAPA - Duluth, MN                         |            | 794                           |                        | 130                                                   |   | 1,800                       |                                                          | 4 |   | 131 |   | 1,803 |   | 1,934 |   | (317) |   | 2004 | 40 years |
| Eagan Community - Eagan, MN                      |            | 1,399                         |                        | 702                                                   |   | 1,588                       |                                                          | 858 |   | 703 |   | 2,445 |   | 3,148 |   | (488) |   | 2003 | 40 years |
| East Grand Station - East Grand Forks, MN        |            | 110                           |                        | 150                                                   |   | 1,235                       |                                                          | 314 |   | 151 |   | 1,548 |   | 1,699 |   | (392) |   | 1999 | 40 years |
| Fargo Express Community - Fargo, ND              |            | 1,041                         |                        | 374                                                   |   | 1,420                       |                                                          | 126 |   | 386 |   | 1,534 |   | 1,920 |   | (298) |   | 2003-2005 | 40 years |
| Forest Lake Auto - Forest Lake, MN(1)            |            | 0                             |                        | 50                                                    |   | 446                         |                                                          | 13 |   | 50 |   | 459 |   | 509 |   | (97) |   | 2003 | 40 years |
| Forest Lake Westlake Center - Forest Lake, MN    |            | 4,473                         |                        | 2,446                                                 |   | 5,304                       |                                                          | 458 |   | 2,480 |   | 5,728 |   | 8,208 |   | (1,188) |   | 2003 | 40 years |
| Grand Forks Carmike - Grand Forks, ND            |            | 1,753                         |                        | 184                                                   |   | 2,360                       |                                                          | 2 |   | 184 |   | 2,362 |   | 2,546 |   | (974) |   | 1994 | 40 years |
| Grand Forks Medpark Mall - Grand Forks, ND       |            | 3,132                         |                        | 681                                                   |   | 4,808                       |                                                          | 218 |   | 722 |   | 4,985 |   | 5,707 |   | (1,416) |   | 2000 | 40 years |
| Jamestown Buffalo Mall - Jamestown, ND(2)        |            | 1,058                         |                        | 566                                                   |   | 3,209                       |                                                          | 2,457 |   | 871 |   | 5,361 |   | 6,232 |   | (997) |   | 2003 | 40 years |
| Jamestown Business Center - Jamestown, ND        |            | 590                           |                        | 297                                                   |   | 1,023                       |                                                          | 1,312 |   | 333 |   | 2,299 |   | 2,632 |   | (616) |   | 2003 | 40 years |
| Kalispell Retail Center - Kalispell, MT          |            | 1,419                         |                        | 250                                                   |   | 2,250                       |                                                          | 972 |   | 253 |   | 3,219 |   | 3,472 |   | (603) |   | 2003 | 40 years |
| Kentwood Thomasville Furniture - Kentwood, MI    |            | 0                             |                        | 225                                                   |   | 1,889                       |                                                          | (698) |   | 225 |   | 1,191 |   | 1,416 |   | (647) |   | 1996 | 40 years |
| Lakeville Strip Center - Lakeville, MN           |            | 1,036                         |                        | 46                                                    |   | 1,142                       |                                                          | 827 |   | 94 |   | 1,921 |   | 2,015 |   | (490) |   | 2003 | 40 years |
| Livingston Pamida - Livingston, MT               |            | 1,195                         |                        | 227                                                   |   | 1,573                       |                                                          | 0 |   | 227 |   | 1,573 |   | 1,800 |   | (323) |   | 2003 | 40 years |
| Minot 1400 31st Ave - Minot, ND                  |            | 0                             |                        | 1,026                                                 |   | 6,143                       |                                                          | 275 |   | 1,026 |   | 6,418 |   | 7,444 |   | (58) |   | 2010 | 40 years |
| Minot Arrowhead - Minot, ND                      |            | 2,356                         |                        | 100                                                   |   | 1,064                       |                                                          | 6,015 |   | 716 |   | 6,463 |   | 7,179 |   | (2,464) |   | 1973 | 15 1/2-40 years |
| Minot Plaza - Minot, ND                          |            | 828                           |                        | 50                                                    |   | 453                         |                                                          | 129 |   | 80 |   | 552 |   | 632 |   | (260) |   | 1993 | 40 years |
| Monticello C Store - Monticello, MN(1)           |            | 0                             |                        | 65                                                    |   | 770                         |                                                          | 37 |   | 97 |   | 775 |   | 872 |   | (165) |   | 2003 | 40 years |

Table of Contents

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|                                          |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|-----------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                   | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Commercial Retail - continued                 |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Omaha Barnes & Noble - Omaha, NE          | $               | 2,692                         | $                           | 600                                                   | $      | 3,099                       | $      | 0 | $ | 600 | $ | 3,099 | $ | 3,699 | $ | (1,201) |   | 1995 | 40 years |
| Pine City C-Store - Pine City, MN             |            | 310                           |                        | 83                                                    |   | 357                         |   | 12 |   | 83 |   | 369 |   | 452 |   | (74) |   | 2003 | 40 years |
| Pine City Evergreen Square - Pine City, MN    |            | 1,906                         |                        | 154                                                   |   | 2,646                       |   | 582 |   | 385 |   | 2,997 |   | 3,382 |   | (693) |   | 2003 | 40 years |
| Rochester Maplewood Square - Rochester, MN(1) |            | 0                             |                        | 3,275                                                 |   | 8,610                       |   | 876 |   | 3,652 |   | 9,109 |   | 12,761 |   | (2,641) |   | 1999 | 40 years |
| St. Cloud Westgate - St. Cloud, MN            |            | 3,373                         |                        | 1,219                                                 |   | 5,535                       |   | 632 |   | 1,242 |   | 6,144 |   | 7,386 |   | (1,013) |   | 2004 | 40 years |
| Weston Retail - Weston, WI                    |            | 0                             |                        | 79                                                    |   | 1,575                       |   | 27 |   | 80 |   | 1,601 |   | 1,681 |   | (328) |   | 2003 | 40 years |
| Weston Walgreens - Weston, WI                 |            | 3,200                         |                        | 66                                                    |   | 1,718                       |   | 672 |   | 67 |   | 2,389 |   | 2,456 |   | (294) |   | 2006 | 40 years |
| Total Commercial Retail                       | $               | 51,946                        | $                           | 19,927                                                | $      | 86,496                      | $      | 18,636 | $ | 22,345 |   | 102,714 | $ | 125,059 | $ | (23,504) |   |   |   |
|                                          |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subtotal                                      | $               | 991,582                       | $                           | 174,256                                               | $      | 1,359,138                   | $      | 237,404 | $ | 188,106 | $ | 1,582,692 | $ | 1,770,798 | $ | (328,952) |   |   |   |

Table of Contents

----

|                                                |            |  Initial Cost to Company |                        |  Gross amount at which carried atclose of period |   |                        |   |
|-----------------------------------------------------|-----------------|-------------------------------|-----------------------------|-------------------------------------------------------|--------|-----------------------------|--------|
| Description                                         | Encumbrances(a) | Land                          | Buildings &Improvements | Costs capitalizedsubsequent toacquisition             | Land   | Buildings &Improvements | Total  | AccumulatedDepreciation | Date ofConstructionor Acquisition | Life on whichdepreciation inlatest incomestatement iscomputed |
| Unimproved Land                                     |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bismarck 2130 S 12th St - Bismarck, ND              | $               | 0                             | $                           | 576                                                   | $      | 0                           | $      | 13 | $ | 589 | $ | 0 | $ | 589 | $ | 0 |   | 2008 |   |
| Bismarck 700 E Main - Bismarck, ND                  |            | 0                             |                        | 314                                                   |   | 0                           |   | 556 |   | 870 |   | 0 |   | 870 |   | 0 |   | 2008 |   |
| Eagan Unimproved Land - Eagan, MN                   |            | 0                             |                        | 423                                                   |   | 0                           |   | 0 |   | 423 |   | 0 |   | 423 |   | 0 |   | 2006 |   |
| Georgetown Square Unimproved Land - Grand Chute, WI |            | 2,221                         |                        | 1,860                                                 |   | 0                           |   | 0 |   | 1,860 |   | 0 |   | 1,860 |   | 0 |   | 2006 |   |
| IRET Corporate Plaza Retention Pond - Minot, ND     |            | 0                             |                        | 75                                                    |   | 0                           |   | 87 |   | 162 |   | 0 |   | 162 |   | 0 |   | 2009 |   |
| Kalispell Unimproved Land - Kalispell, MT           |            | 0                             |                        | 1,400                                                 |   | 0                           |   | 23 |   | 1,411 |   | 12 |   | 1,423 |   | 0 |   | 2003 |   |
| Monticello Unimproved Land - Monticello, MN         |            | 0                             |                        | 115                                                   |   | 0                           |   | 2 |   | 117 |   | 0 |   | 117 |   | 0 |   | 2006 |   |
| River Falls Unimproved Land - River Falls, WI       |            | 0                             |                        | 176                                                   |   | 0                           |   | 5 |   | 179 |   | 2 |   | 181 |   | 0 |   | 2003 |   |
| Urbandale Unimproved Land - Urbandale, IA           |            | 0                             |                        | 5                                                     |   | 0                           |   | 108 |   | 113 |   | 0 |   | 113 |   | 0 |   | 2009 |   |
| Weston Unimproved Land - Weston, WI                 |            | 0                             |                        | 812                                                   |   | 0                           |   | 0 |   | 812 |   | 0 |   | 812 |   | 0 |   | 2006 |   |
| Total Unimproved Land                               | $               | 2,221                         | $                           | 5,756                                                 | $      | 0                           | $      | 794 | $ | 6,536 | $ | 14 | $ | 6,550 | $ | 0 |   |   |   |
|                                                |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Development in Progress                             |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Avenue Building - Minot, ND                     | $               | 0                             | $                           | 0                                                     | $      | 0                           | $      | 280 | $ | 0 | $ | 280 | $ | 280 | $ | 0 |   | 1981 |   |
| Jamestown Buffalo Mall Theater - Jamestown, ND      |            | 0                             |                        | 0                                                     |   | 1,436                       |   | 97 |   | 0 |   | 1,533 |   | 1,533 |   | 0 |   | 2003 |   |
| Georgetown Square Development - Grand Chute, WI     |            | 0                             |                        | 240                                                   |   | 1,708                       |   | (173) |   | 242 |   | 1,533 |   | 1,775 |   | 0 |   | 2006 |   |
| IRET Corporate Plaza 2 - Minot, ND(2)               |            | 0                             |                        | 568                                                   |   | 0                           |   | 4,183 |   | 568 |   | 4,183 |   | 4,751 |   | 0 |   | 2009 |   |
| Quarry Ridge 2 - Rochester, MN                      |            | 0                             |                        | 942                                                   |   | 412                         |   | 0 |   | 942 |   | 412 |   | 1,354 |   | 0 |   | 2006 |   |
| Total Development in Progress                       | $               | 0                             | $                           | 1,750                                                 | $      | 3,556                       | $      | 4,387 | $ | 1,752 | $ | 7,941 | $ | 9,693 | $ | 0 |   |   |   |
|                                                |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               | $               | 993,803                       | $                           | 181,762                                               | $      | 1,362,694                   | $      | 242,585 | $ | 196,394 | $  | 1,590,647 | $ | 1,787,041 | $ | (328,952) |   |   |   |
|                                                |            |                          |                        |                                                  |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)   | Amounts in this column are the mortgages payable balances as of April 30, 2011. These amounts do not include amounts owing under the Company’s multi-bank line of credit or under the Company’s two loans financed with Recovery Zone Facility Bonds. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | As of April 30, 2011, this property was included in the collateral pool securing the Company’s $50.0 million multi-bank line of credit. The Company may add and remove eligible properties from the collateral pool if certain minimum collateral requirements are satisfied. Advances under the facility may not exceed 60% of the value of properties provided as security. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | This property is collateral for a loan to the Company financed by Recovery Zone Facility Bonds. |
|-----------------|-------------------------------------------------------------------------------------------------|

Table of Contents

----

|                         |   | (in thousands) |      |
|------------------------------|--------|----------------|-----------|
|                         |   | 2011           |      |   | 2010 |   |   | 2009 |   |
|                         |   |           |      |   |   |   |   |   |   |
| Balance at beginning of year |   | $              | 1,800,519 |   |   | $ | 1,729,585 |   |   | $ | 1,648,259 |   |
| Additions during year        |   |           |      |   |   |   |   |   |   |   |   |   |
| Multi-Family Residential     |   |           | 4,210     |   |   |   | 4,270 |   |   |   | 23,215 |   |
| Commercial Office            |   |           | 6,836     |   |   |   | 2,096 |   |   |   | 8,573 |   |
| Commercial Medical           |   |           | 19,249    |   |   |   | 38,125 |   |   |   | 19,084 |   |
| Commercial Industrial        |   |           | 3,914     |   |   |   | 3,066 |   |   |   | 4,337 |   |
| Commercial Retail            |   |           | 7,169     |   |   |   | 0 |   |   |   | 0 |   |
| Improvements and Other       |   |           | 23,183    |   |   |   | 29,343 |   |   |   | 27,971 |   |
|                         |   |           | 1,865,080 |   |   |   | 1,806,485 |   |   |   | 1,731,439 |   |
| Deductions during year       |   |           |      |   |   |   |   |   |   |   |   |   |
| Cost of real estate sold     |   |           | (86,994   | ) |   |   | (1,217 | ) |   |   | (49 | ) |
| Impairment charge            |   |           | 0         |   |   |   | (1,678 | ) |   |   | (338 | ) |
| Other(A)                     |   |           | (7,288    | ) |   |   | (3,071 | ) |   |   | (1,467 | ) |
| Balance at close of year(B)  |   | $              | 1,770,798 |   |   | $ | 1,800,519 |   |   | $ | 1,729,585 |   |

|                                         |   | (in thousands) |    |
|----------------------------------------------|--------|----------------|---------|
|                                         |   | 2011           |    |   | 2010 |   |   | 2009 |   |
|                                         |   |           |    |   |   |   |   |   |   |
| Balance at beginning of year                 |   | $              | 308,626 |   |   | $ | 262,871 |   |   | $ | 219,379 |   |
| Additions during year                        |   |           |    |   |   |   |   |   |   |   |   |   |
| Provisions for depreciation                  |   |           | 49,375  |   |   |   | 48,152 |   |   |   | 44,227 |   |
| Deductions during year                       |   |           |    |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation on real estate sold |   |           | (25,366 | ) |   |   | (737 | ) |   |   | (36 | ) |
| Other(C)                                     |   |           | (3,683  | ) |   |   | (1,660 | ) |   |   | (699 | ) |
| Balance at close of year                     |   | $              | 328,952 |   |   | $ | 308,626 |   |   | $ | 262,871 |   |

| (A) | Consists of miscellaneous disposed assets and assets moved to Development in Progress. |
|-----|----------------------------------------------------------------------------------------|

| (B) | The net basis of the Company’s real estate investments for Federal Income Tax purposes is approximately $1.2 billion. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (C) | Consists of miscellaneous disposed assets. |
|-----|--------------------------------------------|

Table of Contents

----

| INVESTORS REAL ESTATE TRUST AND SUBSIDIARIES |
|----------------------------------------------|

|                      |   |         |   |              |         | (in thousands)   |   |
|---------------------------|--------|--------------|--------|-------------------|--------------|------------------|--------|
|                      |   | InterestRate |   | FinalMaturityDate | PaymentTerms | PriorLiens       |   | Face Amt. ofMortgages |   |   | CarryingAmt. ofMortgages |   | Prin. Amtof LoansSubject toDelinquentPrin. or Int. |   |
| First Mortgage            |   |         |   |              |         |             |   |   |   |   |   |   |   |   |   |   |   |
| Liberty Holdings, LLC     |   |         | 7.00   | %                 | 11/01/12     | Monthly/ Balloon |   |   | 0 |   |   |   | 167 |   |   |   | 159 |   |   |   | 0 |   |
|                      |   |         |   |              |         |             |   | $ | 0 |   |   | $ | 167 |   |   | $ | 159 |   |   | $ | 0 |   |
| Less:                     |   |         |   |              |         |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses |   |         |   |              |         |             |   |   |   |   |   |   |   |   |   | $ | (3 | ) |   |   |   |   |
|                      |   |         | $      | 156               |         |             |   |   |   |

|                                                 |   | (in thousands) |   |
|------------------------------------------------------|--------|----------------|--------|
|                                                 |   | 2011           |   |   | 2010 |   |   | 2009 |   |
| MORTGAGE LOANS RECEIVABLE, BEGINNING OF YEAR         |   | $              | 158    |   |   | $ | 160 |   |   | $ | 541 |   |
| New participations in and advances on mortgage loans |   |           | 0      |   |   |   | 0 |   |   |   | 0 |   |
|                                                 |   | $              | 158    |   |   | $ | 160 |   |   | $ | 541 |   |
| Collections                                          |   |           | (2     | ) |   |   | (2 | ) |   |   | (381 | ) |
| Transferred to other assets                          |   |           | 0      |   |   |   | 0 |   |   |   | 0 |   |
| MORTGAGE LOANS RECEIVABLE, END OF YEAR               |   | $              | 156    |   |   | $ | 158 |   |   | $ | 160 |   |

Table of Contents

----

|   | Exhibit Index |
|--------|---------------|

| 3.1 | Articles of Amendment and Third Restated Declaration of Trust ofInvestors Real Estate Trust, dated September 23, 2003, and incorporated herein by reference to Exhibit A to the Company’s Definitive Proxy Statement on Schedule 14A for the 2003 Annual Meeting of Shareholders, filed with the SEC on August 13, 2003. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Third Restated Trustees’ Regulations (Bylaws), dated May 16, 2007, and incorporated herein by reference to the Company’s Current Report on Form 8-K , filed with the SEC on May 16, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Agreement of Limited Partnership of IRET Properties, A North DakotaLimited Partnership, dated January 31, 1997, filed as Exhibit 3(ii) to the Registration Statement on Form S-11, effective March 14, 1997 (SEC File No. 333-21945) filed for the Registrant on February 18, 1997 (File No. 0-14851), and incorporated herein by reference. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Articles Supplementary classifying and designating 8.25% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, filed as Exhibit 3.2 to the Company’s Form 8-A filed on April 22, 2004, and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Loan Agreement dated August 12, 2010 by and among IRET Properties, as borrower, the financial institutions party thereto as lenders, and First International Bank & Trust as lender and lead bank, incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the SEC on August 18, 2010. |
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| 10.1 | Member Control and Operating Agreement dated September 30, 2002, filed as Exhibit 10 to the Company’s Form 8-K filed October 15, 2003, and incorporated herein by reference. |
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| 10.2 | Letter Agreement dated January 31, 2003, filed as Exhibit 10(i) to the Company’s Form 8-K filed February 27, 2003, and incorporated herein by reference. |
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| 10.3 | Option Agreement dated January 31, 2003, filed as Exhibit 10(ii) to the Company’s Form 8-K filed February 27, 2003, and incorporated herein by reference. |
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| 10.4 | Financial Statements of T.F. James Company filed as Exhibit 10 to the Company’s Form 8-K filed January 31, 2003, and incorporated herein by reference. |
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| 10.5 | Agreement for Purchase and Sale of Property dated February 13, 2004, by and between IRET Properties and the Sellers specified therein, filed as Exhibit 10.5 to the Company’s Form 10-K filed July 20, 2004, and incorporated herein by reference. |
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| 10.6* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 11, 2005, and incorporated herein by reference. |
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| 10.7* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed December 12, 2005, and incorporated herein by reference. |
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| 10.8 | Contribution Agreement, filed as Exhibit 10.1 to the Company’s Form 8-K filed May 17, 2006, and incorporated herein by reference. |
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| 10.9* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed September 11, 2006, and incorporated herein by reference. |
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| 10.10 | Loan and Security Agreement, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 18, 2006, and incorporated herein by reference. |
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| 10.11* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 12, 2007, and incorporated herein by reference. |
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| 10.12* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 11, 2008, and incorporated herein by reference. |
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Table of Contents

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| 10.13* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 12, 2009, and incorporated herein by reference. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed December 10, 2007, and incorporated herein by reference. |
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| 10.15* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed September 9, 2009, and incorporated herein by reference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed December 10, 2009, and incorporated herein by reference. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17* | Description of Compensation of Executive Officers, filed as Exhibit 10 to the Company’s Form 10-Q filed March 14, 2011, and incorporated herein by reference. |
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| 10.18* | Description of Compensation of Trustees, filed as Exhibit 10 to the Company’s Form 10-Q filed September 9, 2010, and incorporated herein by reference. |
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| 12.1 | Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Share Dividends, filed herewith. |
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| 21.1 | Subsidiaries of Investors Real Estate Trust, filed herewith. |
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| 23.1 | Consent of Independent Registered Public Accounting Firm, filed herewith. |
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| 31.1 | Section 302 Certification of President and Chief Executive Officer, filed herewith. |
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| 31.2 | Section 302 Certification of Senior Vice President and ChiefFinancial Officer, filed herewith. |
|------|------------------------------------------------------------------------------------------------|

| 32.1 | Section 906 Certification of the President and Chief ExecutiveOfficer, filed herewith. |
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| 32.2 | Section 906 Certification of the Senior Vice President and ChiefFinancial Officer, filed herewith. |
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Table of Contents

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