IRET Announces Fiscal Third Quarter 2018 Results

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PR Newswire

MINOT, N.D., March 12, 2018

MINOT, N.D., March 12, 2018 /PRNewswire/ -- IRET (NYSE: IRET) announced today its fiscal third quarter 2018 financial and operating results. Net income and Funds from Operations ("FFO") per share for the three and nine months ended January 31, 2018, are detailed below. Core FFO adjusts FFO for certain non-routine items, and both FFO and Core FFO are reconciled to net income in the tables accompanying this earnings release.

Three Months Ended

Nine Months Ended

January 31,

Per Share

2018

ARIVA.DE Börsen-Geflüster

Kurse

Investors Real Estate Trust SBI

0,00%

2017

2018

2017

Net Income

1.12

0.16

1.06

0.03

FFO

0.04

0.09

0.21

0.33

Core FFO

0.09

0.12

0.30

0.35

	Quarterly Comparison		Sequential Comparison		YTD Comparison
Multifamily Same-Store Results	3Q18 vs. 3Q17		3Q18 vs. 2Q18		3Q18 vs. 3Q17
Revenues	5.2	%	(0.1)	%	4.3	%
Expenses	4.5	%	(6.7)	%	11.3	%
Net Operating Income ("NOI")	5.8	%	6.1	%	(1.2)	%

Multifamily Same-Store Results	3Q18		2Q18		3Q17
Physical Occupancy	95.2	%	95.2	%	92.3	%
Weighted Average Occupancy	94.0	%	93.1	%	91.4	%

"Today marks the moment IRET can be considered a multifamily real estate company," said Mark O. Decker, Jr., IRET's President and CEO. "With the previously-announced sales of our healthcare properties, apartment communities now comprise more than 90% of our portfolio, and with the pending acquisition in Denver, our redeployment is nearly finished. Our team completed the transformation we set out to achieve, and we can now focus the full attention of our organization on improving our operational performance and growing and refining our apartment portfolio."

Third Quarter Fiscal Year 2018 Highlights

Substantially completed our transformation into a focused multifamily company by closing the sale of 27 of our 28 healthcare properties for an aggregate sale price of approximately $400.8 million. The final property remains under contract for sale pending the satisfaction of certain closing conditions. We used the proceeds from the sale of these assets to fund acquisitions and reduce debt.
Closed the acquisition of Dylan, a 274-home apartment community in Denver, Colorado, completing our inaugural investment in another top-25 MSA. Subsequent to quarter-end, we entered into a purchase agreement to acquire Westend, another Denver apartment community with 390 homes. Denver has a healthy and diverse economy and, together with Minneapolis-St. Paul, will be a key market in IRET's push to achieve portfolio growth, geographic diversity, and operating efficiencies.
Achieved quarterly same-store NOI growth of 5.8% over the same period in the prior year, representing the first positive result in over two years. This performance was driven by revenue growth of 5.2%, due primarily to a 4.4% increase in occupancy, and expense growth of 4.5%. The reduction in expense growth this quarter compared to the 15.0% increase in first half of fiscal 2018 is due, in part, to a decrease in snow removal costs and a reduction in accruals related to self-funded healthcare costs.
Reduced debt from $928.0 million to $692.9 million during the quarter and have $116.8 million of restricted cash available to deploy toward future acquisitions.
Closed a $70 million unsecured term loan that expires in 2023 and executed a swap agreement to synthetically fix the interest rate for the full duration of the loan.

Acquisitions
We added one new property to our portfolio during the quarter:

(in thousands)

Property Name

Location

Total Units

Total Cost

% Occupied

as of 1/31/2018

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