IRET Nears Completion of its Strategic Transformation with Multiple Transactions

Signs Agreement to Sell Medical Office Portfolio for $417.5 million –

– Enters Denver Market with New Apartment Acquisition for $90.6 million –

– Continues Non-Core Asset Sales and Balance Sheet Enhancements –

Company Release – 11/30/2017 4:56 PM ET

MINNEAPOLIS, Nov. 30, 2017 /PRNewswire/ — IRET (NYSE: IRET) today announces that it is nearing the completion of its strategic transformation through a series of key transactions.

“These transactions move our transition forward toward simplicity, focus, and quality,” said Mark O. Decker, Jr., President and CEO.  “The first half of our fiscal year has been productive.  We have grown our portfolio in the Twin Cities, entered the Denver market, increased our unsecured borrowing base and line of credit, refinanced our preferred equity at a lower rate, and continued to refine and focus our portfolio by selling nearly $100 million of non-core assets.”  Mr. Decker continued, “These accomplishments are a testament to our team’s strength, and I am grateful for all their hard work.  Closing on the sale of our medical office properties will mark a significant milestone for IRET and is the final component necessary to transform us into a focused multifamily company.”

Medical Office Portfolio Sale

IRET entered into an agreement to sell its medical office portfolio for $417.5 million.  The properties, representing approximately 1.3 million square feet, include the Company’s entire healthcare portfolio, consisting of 28 healthcare properties and one other commercial property occupied by a healthcare tenant.  The agreement is subject to the satisfaction of customary contingencies, and, if those contingencies are satisfied, the Company anticipates the sale to close by the end of January 2018.

Non-Core Asset Sales

Additionally, since the end of its fiscal first quarter in July, IRET sold 22 other non-core properties for an aggregate sale price of $98.8 million, which includes the Company’s final two senior housing properties, marking IRET’s full exit from that segment, as well as three industrial assets and one healthcare asset located in the Twin Cities.

Inaugural Acquisition in Targeted Denver Market

In conjunction with its ongoing disposition of non-core assets and strategic goal of growing its multifamily asset base in Top-25 MSAs, IRET entered the Denver, Colorado, market by acquiring Dylan Apartments for $90.6 million.  The 274-unit apartment community, completed in 2016, is located in the fast-growing River North Art District (RiNo) and offers modern-style flats, which are designed with contemporary luxuries mixed with a tribute to the area’s industrial beginnings.

Balance Sheet Enhancements

Finally, IRET recently expanded its unsecured, syndicated revolving credit facility with commitments now totaling $300 million, an increase of $50 million from prior commitments.  In addition, the Company closed a $70 million unsecured term loan that matures in 2023.  These financing activities come on the heels of IRET’s previously-announced issuance of 6.625% Series C preferred shares and redemption of 7.95% Series B preferred shares.  Together, these capital market transactions increase the strength and flexibility of IRET’s balance sheet and enhance its available liquidity.

About IRET

IRET focuses on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets.  As of July 31, 2017, IRET owned interests in 130 properties that were held for investment, including 88 multifamily properties consisting of 13,076 units and 42 commercial properties, which includes 29 healthcare properties, containing a total of approximately 2.6 million square feet of leasable space.  IRET’s common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET PRC, respectively).  IRET’s press releases and supplemental information are available on its website at www.iretapartments.com or by calling Investor Relations at 701-837-7104.

Forward-Looking Statements

Certain statements in this press release are based on our current expectations and assumptions, and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future.  Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of those words and similar expressions are intended to identify forward-looking statements.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from projected results.  Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be achieved.  Any statements contained herein that are not statements of historical fact should be deemed to be forward-looking statements.  As a result, reliance should not be placed on these forward-looking statements as these statements are subject to known and unknown risks, uncertainties, and other factors beyond our control and could differ materially from our actual results and performance.  Such risks and uncertainties those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017, and in subsequent quarterly reports on Form 10-Q.  We assume no obligation to update or supplement forward-looking statements that become untrue due to subsequent events.

Contact Information
Matthew Volpano
Senior Vice President – Capital Markets
Phone: 701-837-7104
E-mail: IR@iret.com

View original content:http://www.prnewswire.com/news-releases/iret-nears-completion-of-its-strategic-transformation-with-multiple-transactions-300564783.html

SOURCE IRET

IRET Bismarck Team Building

Here at IRET we value our team members just as much as our residents. Building our bond with each other creates a positive culture for our families that reside with us. IRET shows we value our residents by taking care of the individuals who serve them.

#ThisIsHome #IRETlife

 

Bismarck, North Dakota Team Members

Looking for an Apartment? Find a Bismarck ND apartment for Rent.

IRET Acquires Multifamily Property for $61.5 Million

Company Release – 5/26/2017 6:45 AM ET

MINOT, N.D., May 26, 2017 /PRNewswire/ — IRET (NYSE: IRET) a real estate investment trust focusing on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets throughout the Midwest, today announced the acquisition of Oxbō Apartments, a multifamily property in St. Paul, Minnesota, for $61.5 million.

Chief Executive Officer, Mark O. Decker, Jr. commented, “We are pleased with the acquisition of this high-quality property.  Oxbō is well-located in an attractive neighborhood in St. Paul.  This transaction furthers our goal to enhance our existing portfolio and improve the prospect of sustainable cash flow growth for our investors.”

The Company acquired 202 7^th Street West, located in St. Paul, Minnesota, for approximately $61.5 million.  The newly constructed property is currently 42% leased and consists of 191 rentable units featuring desirable interior finishes, fitness club, rooftop pool deck, sky lounge, club room and concierge services, as well as indoor parking, bike storage, and a dog wash station. The building also features nearly 12,000 square feet of fully leased street level retail space. The property is located in one of St. Paul’s most vibrant neighborhoods, steps away from entertainment, restaurants and employment centers, as well as local landmarks such as the Mississippi River, The Science Museum of Minnesota, Xcel Energy Center, and Ordway Theater.

About IRET

IRET focuses on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets throughout the Midwest. As of January 31, 2017, IRET owned interests in 130 properties that were held for investment, consisting of: (1) 86 multifamily properties consisting of 12,813 units, and (2) 44 commercial properties, including 30 healthcare properties, containing a total of approximately 2.7 million square feet of leasable space. IRET’s common shares and Series B preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRETPRB, respectively). IRET’s press releases and supplemental information are available on its website at www.iret.com or by contacting Investor Relations at 701-837-7104.

Forward-Looking Statements

Certain statements in this press release, including statements regarding IRET’s plans and expectations with respect to its strategic transformation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results.  Such risks, uncertainties and other factors include, but are not limited to:  changes in operating costs; the effect of government regulation; the availability of capital; changes in general and local economic and real estate market conditions; IRET’s ability to complete acquisitions and dispositions on attractive terms, or at all; IRET’s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other payment dates; IRET’s ability to maintain financial covenant compliance under its debt agreements; fluctuations in interest rates; IRET’s ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; competition; IRET’s ability to attract and retain skilled personnel; and those risks and uncertainties detailed from time to time in IRET’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2016.  We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

CONTACT INFO

Investor Relations
Stephen Swett
phone: 701-837-7104
email: IR@iret.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/iret-acquires-multifamily-property-for-615-million-300464391.html

SOURCE IRET

Holiday Giving in Grand Forks and Rochester

As the Holiday Season approaches, many of our regions find the time to give back to their communities in one way or another—they hand out holiday cards to residents and customers, sponsor gift-giving and tree-lighting programs, and much more. Below are what several crews from our Residential Division have done lately to help out this Holiday Season.

From Curt Hills, Director of Residential Property Management – Eastern Division:
Last week, the Rochester Community Manager’s took part in the annual “Festival of Trees—A Celebration of Giving”. The success of each year’s Festival of Trees allows the Hiawatha Homes Foundation to give financial support to children, adults, and families with: developmental disabilities, Physical impairments, brain injuries, specialized medical needs, limited mental health issues, autism disorders, and other health disabilities.

IRET and other business from the community sponsor trees of the Festival to be professionally decorated, and the proceeds from the sale of each tree directly benefit Hiawatha Homes. The “Festival of Trees” is a five-day affair at the Civic Center here, and many thousands of people turn out to view the dozens of trees on display. A very worthwhile cause and one that IRET should be very proud to have taken part in.

http://www.hiawathahomes.org/

from left to right: Frankie Bergeson, Peggy Betting, Judine Hills, Linda Blanshan, Rachel Aljets, Katherine Bauman, Valerie Pastor.

 

From Kristin Speldrich, Community Manager – Legacy Apartment Homes and Valley Park Manor, Grand Forks, ND.
We wanted to send you some photos, of what our wonderful Legacy residents and staff did when we came together to help the North Lands Rescue Mission—an organization that aims to provide a place of hope where people can recover from homelessness, pain and addiction, restoring their dignity and improving their lives.

Our residents and staff worked together to gather and donate canned foods, non- perishable items and clothing to the Mission. We delivered the bags to the mission on November 18th and had over 60 bags of items to give. According to the staff of the Mission, this was the largest donation they’d received from one organization.

A special thanks goes to Hugo’s for the bags they provided and special thanks to Emily Bakke and Lindsey Nelson for organizing the donation.

http://www.nrmission.com/

from left to right: Shawn Jerome, Karen Green, Lindsey Nelson, Tina Ness, and Chelsey Finnison. (sneaking in to the photo is a cook from the Mission)

 

1/4 Ton of Giving.

Beginning in October, the Minot Residential Property Management Crew held a contest where tenants who paid their rent on or before the 1st of the month and donated a non perishable item were entered into a drawing to win either a TV or an iPad.  For every item the tenant brought in, their name was entered into the drawing. 596 pounds of food were donated in under a month and a half! That’s over ¼ ton! 

The uniqueness of this promotion is that tenants had the chance to help themselves and others at the same time.

Danielle Schilken, Jeff Froseth, Mallory Westby, Linda Whetter, Justin Hammer, Holly Haverstraw.