[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Investors Real Estate Trust (IRET) as of June 30, 2020, show a net loss of $4.1 million for the second quarter, a significant shift from a net income of $3.3 million in the prior-year period, with total assets remaining stable at approximately $1.39 billion [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets were $1.392 billion, nearly unchanged from December 31, 2019, while total liabilities increased slightly to $710.7 million and total equity decreased to $665.5 million, with cash and cash equivalents doubling to $52.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$1,392,810** | **$1,392,418** | | Total real estate investments | $1,321,077 | $1,311,472 | | Cash and cash equivalents | $52,714 | $26,579 | | **Total Liabilities** | **$710,743** | **$695,956** | | Mortgages payable, net | $323,705 | $329,664 | | Revolving lines of credit | $63,000 | $50,079 | | **Total Equity** | **$665,507** | **$679,902** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2020, the company reported a net loss of $4.1 million, compared to a net income of $3.3 million in the same period of 2019, driven by decreased revenue and the absence of a prior-year litigation settlement gain, widening the six-month net loss to $11.8 million Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$43,910** | **$46,934** | **$88,316** | **$92,542** | | Total Expenses | $41,386 | $43,039 | $83,788 | $87,187 | | Operating Income | $2,524 | $3,895 | $4,528 | $5,355 | | **Net Income (Loss)** | **($4,085)** | **$3,267** | **($11,769)** | **($2,693)** | | Net Income (Loss) Available to Common Shareholders | ($5,387) | $1,407 | ($13,826) | ($4,996) | | **Net Earnings (Loss) Per Common Share – Diluted** | **($0.44)** | **$0.11** | **($1.13)** | **($0.43)** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive loss for the three months ended June 30, 2020, was $4.9 million, compared to a loss of $1.2 million in the prior-year period, primarily due to the net loss from operations and an unrealized loss from derivative instruments Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | ($4,085) | $3,267 | ($11,769) | ($2,693) | | Unrealized gain (loss) from derivative instrument | ($1,696) | ($4,430) | ($11,105) | ($6,712) | | **Total comprehensive income (loss)** | **($4,864)** | **($1,192)** | **($22,301)** | **($9,435)** | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased from $679.9 million at December 31, 2019, to $665.5 million at June 30, 2020, driven by a net loss of $12.1 million, distributions of $18.9 million, and a $10.5 million negative change in derivative fair value, partially offset by $48.1 million from common share sales - Key drivers for the decrease in total equity during the first six months of 2020 included the net loss attributable to controlling and noncontrolling interests (**$12.1M**), distributions to common and preferred shareholders (**$22.2M**), and an unrealized loss on derivatives (**$10.5M**)[23](index=23&type=chunk) - The company raised **$48.1 million** through the net sale of **674,000** common shares during the six months ended June 30, 2020[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2020, net cash provided by operating activities was $25.3 million, a decrease from $28.6 million in the prior year, while net cash used in investing activities was $30.7 million, and net cash provided by financing activities was $14.5 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $25,276 | $28,606 | | Net cash used by investing activities | ($30,689) | ($26,230) | | Net cash provided by financing activities | $14,545 | $446 | | **Net increase in cash** | **$9,132** | **$2,822** | | Cash at end of period | $55,249 | $22,078 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's organization as a REIT focused on apartment communities, accounting policies, and the initial impact of COVID-19, including rent deferrals and abatements, with key details on debt, equity, derivatives, acquisitions, dispositions, and aggregated segment performance - As of June 30, 2020, IRET owned interests in **70 apartment communities** consisting of **12,135 apartment homes**[35](index=35&type=chunk) - Due to COVID-19, the company recognized a revenue reduction of **$402,000** from rent abatements to commercial tenants in Q2 2020, with **$68,000** remaining outstanding under rent deferral agreements with multifamily residents as of June 30, 2020[38](index=38&type=chunk)[51](index=51&type=chunk) - During the six months ended June 30, 2020, the company acquired Ironwood Apartments for **$46.3 million** and disposed of one parcel of unimproved land for **$1.3 million**, resulting in a loss of **$190,000**[111](index=111&type=chunk)[115](index=115&type=chunk) - The company operates as a single reportable segment focused on apartment communities, with Net Operating Income (NOI) for the multifamily portfolio at **$26.0 million** for Q2 2020, up from **$23.7 million** in Q2 2019[116](index=116&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant uncertainty and potential adverse impacts of the COVID-19 pandemic, noting that while the financial impact was not material for Q2 2020, future results are uncertain, with revenue decreasing 6.4% to $43.9 million and FFO decreasing 34.2% to $12.4 million, while maintaining a strong liquidity position of $239.7 million - The COVID-19 pandemic is identified as a significant risk, with future impacts on financial condition, results, and cash flows being highly uncertain, and the expiration of additional federal unemployment benefits on July 31, 2020, is noted as a potential risk to residents' ability to pay rent[135](index=135&type=chunk)[147](index=147&type=chunk) Q2 2020 vs Q2 2019 Performance Highlights (in thousands) | Metric | Q2 2020 | Q2 2019 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $43,910 | $46,934 | ($3,024) | (6.4)% | | Net Operating Income (NOI) | $26,140 | $27,418 | ($1,278) | (4.7)% | | Net Income (Loss) | ($4,085) | $3,267 | ($7,352) | (225.0)% | | FFO | $12,391 | $18,824 | ($6,433) | (34.2)% | - Same-store communities saw a revenue increase of **1.4%** in Q2 2020, driven by a **1.1%** growth in average rental revenue and a **0.3%** increase in weighted average occupancy to **94.6%**[165](index=165&type=chunk) - As of June 30, 2020, the company had total liquidity of approximately **$239.7 million**, consisting of **$187.0 million** available on its line of credit and **$52.7 million** in cash and cash equivalents[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure relates to interest rate fluctuations on its debt obligations, which it mitigates using interest rate swaps on variable-rate term loans, with no material changes in market risk exposure since its 2019 Annual Report on Form 10-K - The primary market risk is from interest rate fluctuations on debt, which the company manages using interest rate swaps on variable-rate loans[216](index=216&type=chunk) - Exposure to market risk has not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2019[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2020, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that as of June 30, 2020, the company's disclosure controls and procedures were effective[219](index=219&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[220](index=220&type=chunk) [Part II. Other Information](index=45&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings outside of ordinary routine litigation incidental to its business - As of the report date, the company is not involved in any material pending legal proceedings[223](index=223&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The report highlights that the COVID-19 pandemic heightens many existing risks and introduces new ones, including potential adverse effects on business and financial results from reduced rental payments, limited access to capital markets, a broader economic slowdown, and the expiration of federal unemployment benefits - The COVID-19 pandemic is expected to heighten existing risks related to real estate ownership, property acquisitions, investment concentration, and debt financing[224](index=224&type=chunk) - Specific pandemic-related risks include residents deferring or stopping rent payments, reduced access to capital markets, impairment of asset values, and the potential for a prolonged recession affecting demand for apartment communities[226](index=226&type=chunk)[228](index=228&type=chunk) - The expiration of additional federal unemployment funding under the CARES Act on July 31, 2020, is identified as a risk that could adversely affect residents' ability to pay rent and the company's results of operations[239](index=239&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2020, the company did not issue any unregistered Common Shares, but purchased a total of 98,830 shares and units at an average price of $24.80 under its share repurchase program, with approximately $44.4 million remaining available as of June 30, 2020 Issuer Purchases of Equity Securities (Q2 2020) | Period | Total Shares and Units Purchased | Average Price Paid per Share/Unit | Amount Remaining in Program | | :--- | :--- | :--- | :--- | | April 2020 | 54,777 | $24.69 | $45,510,888 | | May 2020 | 43,308 | $24.88 | $44,438,657 | | June 2020 | 745 | $28.08 | $44,420,795 | | **Total** | **98,830** | **$24.80** | **$44,420,795** | [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[243](index=243&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[244](index=244&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[244](index=244&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and financial data formatted in iXBRL - Exhibits filed include CEO and CFO certifications and iXBRL instance documents for the financial statements[245](index=245&type=chunk)[248](index=248&type=chunk)

Investors Real Estate Trust (IRET) Q1 2020 Earnings Conference Call May 12, 2020 11:00 AM ET Company Participants Mark Decker - CEO Anne Olson - COO John Kirchmann - CFO Conference Call Participants John Kim - BMO Capital Markets Gaurav Mehta - National Securities Alex Kubicek - Baird Rob Stevenson - Janney Buck Horne - Raymond James Operator Good morning, and welcome to the Investors Real Estate Trust First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being reco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-35624 INVESTORS REAL ESTATE TRUST (Exact name of registrant as specified in its charter) North Dakota 45-0311232 (S ...

Investors Real Estate Trust (IRET) Q4 2019 Earnings Conference Call February 20, 2020 10:00 AM ET Company Participants Jonathan Bishop - VP, Finance Mark Decker - President, CEO, CIO & Trustee Anne Olson - EVP, COO, General Counsel & Secretary John Kirchmann - EVP & CFO Conference Call Participants Gaurav Mehta - National Securities Corporation Robert Stevenson - Janney Montgomery Scott Barry Oxford - D.A. Davidson & Co. Marisa Jones - BMO Capital Markets Ami Probandt - BTIG Buck Horne - Raymond James & Ass ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 001-35624 INVESTORS REAL ESTATE TRUST (Exact name of Registrant as specified in its charter) North Dakota 4 ...

Investors Real Estate Trust (IRET) Q3 2019 Earnings Conference Call November 7, 2019 8:30 AM ET Company Participants Jon Bishop – Vice President-Finance Mark Decker – President and Chief Executive Officer Anne Olson – Chief Operating Officer John Kirchmann – Chief Financial Officer Conference Call Participants Drew Babin – Baird Rob Stevenson – Janney Barry Oxford – D.A. Davidson John Kim – BMO Capital Markets Jim Sullivan – BTIG Buck Horne – Raymond James Operator Good day, and welcome to the Investors Rea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-35624 INVESTORS REAL ESTATE TRUST (Exact name of registrant as specified in its charter) North Dakota 45-031123 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-35624 INVESTORS REAL ESTATE TRUST (Exact name of registrant as specified in its charter) North Dakota 45-0311232 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-35624 INVESTORS REAL ESTATE TRUST (Exact name of registrant as specified in its charter) (State or other jurisdic ...