IRETP Investors Real Estate Trust - Series A Cumulative Redeemable Preferred Shares of Beneficial Interest (MM)

Investors Real Estate Trust (Nasdaq:IRET) (Nasdaq:IRETP), a real estate investment trust with a diversified portfolio of multi-family residential and commercial office, medical, industrial and retail properties located primarily in the upper Midwest (the "Company"), today announced the commencement of an underwritten public offering of its Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Liquidation Preference $25 per Share), no par value per share (the "Series B Preferred Shares"). The Series B Preferred Shares will be offered pursuant to the Company's effective shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission.

The Company will contribute the net proceeds of the offering to its operating partnership, which will use the net proceeds for general business purposes, including the acquisition, development, renovation, expansion or improvement of income-producing real estate properties and debt repayment.

Baird and RBC Capital Markets, LLC are the joint book-running managers of the offering. D.A. Davidson & Co. is the co-lead manager. Janney Montgomery Scott, Wunderlich Securities, J.J.B. Hilliard, W.L. Lyons, LLC and Ladenburg Thalmann & Co. Inc. are acting as co-managers.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of the prospectus, including a preliminary prospectus supplement, forming part of the effective shelf registration statement.

The preliminary prospectus supplement, including the base prospectus, related to the offering has been filed with the Securities and Exchange Commission and copies of the preliminary prospectus supplement can be obtained by contacting: Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202, or by calling (800) 792-2413, or by e-mail at syndicate@rwbaird.com; or RBC Capital Markets, LLC, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098, or by calling (866) 375-6829, or by email at rbcnyfixedincomeprospectus@rbccm.com.

About Investors Real Estate Trust

Investors Real Estate Trust is an equity real estate investment trust. Its business consists of owning and operating income-producing multi-family residential and commercial properties located primarily in the upper Midwest. Investors Real Estate Trust is based in Minot, North Dakota, and has additional offices in Minneapolis and St. Cloud, Minnesota.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. These statements relate to the Company's securities offering and the anticipated use of the net proceeds. No assurance can be given that the securities offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Completion of the securities offering on the terms described, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of the Company, including, without limitation, general economic conditions, market conditions and other factors, including those set forth in the Risk Factors section of the Company's periodic reports and other documents filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements after the date of this release.

CONTACT: Diane Bryantt
         EVP & Chief Financial Officer
         1400 31st Ave SW, Suite 60
         PO Box 1988
         Minot, North Dakota 58702-1988
         phone: 701.837.4738
         fax: 701.838.7785
         email: dbryantt@iret.com