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 pricing of an underwritten public offering of 4,000,000 shares of its 7.95% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Liquidation Preference $25 per Share), no par value per share (the "Series B Preferred Shares"), at a public offering price of $25.00 per share, for gross proceeds of approximately $100 million, before deducting the underwriting discount and other estimated offering-related costs. The underwriters have a 30-day option to purchase up to an additional 600,000 shares to cover overallotments, if any.

The Company intends to apply to list the Series B Preferred Shares on the New York Stock Exchange under the symbol "IRET PRB." The offering is expected to close on August 7, 2012 and is subject to customary closing conditions.

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.

Robert W. Baird & Co. Incorporated 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 LLC; Wunderlich Securities, Inc.; 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 will be made pursuant to the Company's existing shelf registration statement, which was declared effective by the Securities and Exchange Commission ("SEC") on July 12, 2012. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained from: 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