Investors Real Estate Trust Series A Cum (IRETP, Financial) filed Quarterly Report for the period ended 2012-01-31.
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The increase in revenue in the three and nine months ended January 31, 2012 compared to the same quarter in the prior fiscal year is shown by segment in the following table:
The following tables show real estate revenues, real estate expenses and NOI by reportable operating segment for the three and nine months ended January 31, 2012 and 2011. For a reconciliation of net operating income of reportable segments to net income as reported, see Note 5 of the Notes to the condensed consolidated financial statements in this report.
Real estate revenue increased slightly in the three month period ended January 31, 2012 compared to the three month period ended January 31, 2011, to $61.0 million compared to $60.1 million; however, real estate revenue increased in only two of our five reportable segments, decreasing in our commercial office, commercial medical and commercial retail segments, with lower tenant reimbursements due to increases in vacancy in our commercial office segment primarily responsible for most of the revenue decrease across these three segments. Real estate revenue increased in three of our five reportable segments in the nine month period ended January 31, 2012 compared to the nine month period ended January 31, 2011, to $181.3 million compared to $178.1 million primarily due to acquisitions in Fiscal 2011 and 2012. Our overall level of tenant concessions decreased in the three month period ended January 31, 2012 and increased in the nine month period ended January 31, 2012 compared to the year-earlier periods.
Increased Concessions. Our overall level of tenant concessions decreased in the three month period ended January 31, 2012 compared to the year-earlier period and increased in the nine month period ended January 31, 2012 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. Additionally, as discussed below, in the three and nine months ended January 31, 2012, we abated rents at our Chateau Apartments and Arrowhead Shopping Center properties for tenants displaced by the flooding in Minot, North Dakota in June 2011, and those abated rents are reflected in the amounts reported in the table below. Rent concessions offered during the three and nine months ended January 31, 2012 will lower, over the lives of the respective leases, our operating revenues by approximately $1.1 million and $4.6 million, as compared to an approximately $1.5 million and $3.6 million reduction, over the lives of the respective leases, in operating revenues attributable to rent concessions offered in the three and nine months ended January 31, 2011, as shown in the table below:
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Highlight of Business Operations:
Revenues for the three months ended January 31, 2012 were $61.0 million compared to $60.1 million in the three months ended January 31, 2011, an increase of $877,000 or 1.5%. Revenues for the nine months ended January 31, 2012 were $181.3 million compared to $178.1 million in the nine months ended January 31, 2011, an increase of $3.2 million or 1.8%. The increase in revenue for the three and nine months ended January 31, 2012 resulted primarily from properties acquired in Fiscal 2011 and 2012, as shown in the table below.The increase in revenue in the three and nine months ended January 31, 2012 compared to the same quarter in the prior fiscal year is shown by segment in the following table:
The following tables show real estate revenues, real estate expenses and NOI by reportable operating segment for the three and nine months ended January 31, 2012 and 2011. For a reconciliation of net operating income of reportable segments to net income as reported, see Note 5 of the Notes to the condensed consolidated financial statements in this report.
Real estate revenue increased slightly in the three month period ended January 31, 2012 compared to the three month period ended January 31, 2011, to $61.0 million compared to $60.1 million; however, real estate revenue increased in only two of our five reportable segments, decreasing in our commercial office, commercial medical and commercial retail segments, with lower tenant reimbursements due to increases in vacancy in our commercial office segment primarily responsible for most of the revenue decrease across these three segments. Real estate revenue increased in three of our five reportable segments in the nine month period ended January 31, 2012 compared to the nine month period ended January 31, 2011, to $181.3 million compared to $178.1 million primarily due to acquisitions in Fiscal 2011 and 2012. Our overall level of tenant concessions decreased in the three month period ended January 31, 2012 and increased in the nine month period ended January 31, 2012 compared to the year-earlier periods.
Increased Concessions. Our overall level of tenant concessions decreased in the three month period ended January 31, 2012 compared to the year-earlier period and increased in the nine month period ended January 31, 2012 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. Additionally, as discussed below, in the three and nine months ended January 31, 2012, we abated rents at our Chateau Apartments and Arrowhead Shopping Center properties for tenants displaced by the flooding in Minot, North Dakota in June 2011, and those abated rents are reflected in the amounts reported in the table below. Rent concessions offered during the three and nine months ended January 31, 2012 will lower, over the lives of the respective leases, our operating revenues by approximately $1.1 million and $4.6 million, as compared to an approximately $1.5 million and $3.6 million reduction, over the lives of the respective leases, in operating revenues attributable to rent concessions offered in the three and nine months ended January 31, 2011, as shown in the table below:
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