Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2018 | Aug. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INVESTORS REAL ESTATE TRUST | |
Entity Central Index Key | 798,359 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,507,149 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jul. 31, 2018 | Apr. 30, 2018 |
Real estate investments | ||
Property owned | $ 1,636,233 | $ 1,669,764 |
Less accumulated depreciation | (326,772) | (311,324) |
Total property owned | 1,309,461 | 1,358,440 |
Unimproved land | 7,926 | 11,476 |
Mortgage loans receivable | 10,530 | 10,329 |
Total real estate investments | 1,327,917 | 1,380,245 |
Cash and cash equivalents | 16,261 | 11,891 |
Restricted cash | 4,103 | 4,225 |
Other assets | 27,885 | 30,297 |
TOTAL ASSETS | 1,376,166 | 1,426,658 |
LIABILITIES | ||
Accounts payable and accrued expenses | 28,112 | 29,018 |
Revolving line of credit | 130,000 | 124,000 |
Term loan, net of unamortized loan costs of $460 and $486, respectively | 69,540 | 69,514 |
Mortgages payable, net of unamortized loan costs of $1,998 and $2,221, respectively | 464,557 | 509,919 |
TOTAL LIABILITIES | 692,209 | 732,451 |
COMMITMENTS AND CONTINGENCIES (NOTE 6) | ||
REDEEMABLE NONCONTROLLING INTERESTS – CONSOLIDATED REAL ESTATE ENTITIES | 6,230 | 6,644 |
EQUITY | ||
Series C Preferred Shares of Beneficial Interest (Cumulative redeemable preferred shares, no par value, $25 per share liquidation preference, 4,118 shares issued and outstanding at July 31, 2018 and April 30, 2018, aggregate liquidation preference of $102,971) | 99,456 | 99,456 |
Common Shares of Beneficial Interest (Unlimited authorization, no par value, 119,507 shares issued and outstanding at July 31, 2018 and 119,526 shares issued and outstanding at April 30, 2018) | 899,708 | 900,097 |
Accumulated distributions in excess of net income | (402,190) | (395,669) |
Accumulated other comprehensive income | 1,987 | 1,779 |
Total shareholders’ equity | 598,961 | 605,663 |
Noncontrolling interests – Operating Partnership (13,895 units at July 31, 2018 and 14,099 units at April 30, 2018) | 71,390 | 73,012 |
Noncontrolling interests – consolidated real estate entities | 7,376 | 8,888 |
Total equity | 677,727 | 687,563 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND EQUITY | $ 1,376,166 | $ 1,426,658 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2018 | Apr. 30, 2018 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Preferred Shares of Beneficial Interest, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred Shares of Beneficial Interest, shares issued (in shares) | 4,118 | 4,118 |
Preferred Shares of Beneficial Interest, shares outstanding (in shares) | 4,118 | 4,118 |
Preferred shares liquidation preference | $ 102,971 | $ 102,971 |
Common Shares of Beneficial Interest, shares issued (in shares) | 119,507 | 119,526 |
Common Shares of Beneficial Interest, shares outstanding (in shares) | 119,507 | 119,526 |
Noncontrolling interests - Operating Partnership (in shares) | 13,895 | 14,099 |
Medium-term Notes [Member] | ||
LIABILITIES | ||
Mortgages payable, loan costs | $ 460 | $ 486 |
Mortgages [Member] | ||
LIABILITIES | ||
Mortgages payable, loan costs | $ 1,988 | $ 2,221 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
REVENUE | $ 45,946 | $ 40,978 |
EXPENSES | ||
Property operating expenses, excluding real estate taxes | 14,459 | 12,874 |
Real estate taxes | 5,070 | 4,653 |
Casualty loss | 225 | 485 |
Depreciation and amortization | 18,612 | 25,338 |
Impairment of real estate investments | 0 | 256 |
General and administrative expenses | 3,870 | 4,002 |
TOTAL EXPENSES | 43,603 | 48,964 |
Operating income (loss) | 2,343 | (7,986) |
Interest expense | (8,385) | (8,131) |
Loss on extinguishment of debt | (552) | (199) |
Interest income | 481 | 21 |
Other income | 35 | 207 |
Loss before gain on sale of real estate and other investments and income from discontinued operations | (6,078) | (16,088) |
Gain on sale of real estate and other investments | 9,224 | 124 |
Income (loss) from continuing operations | 3,146 | (15,964) |
Income (loss) from discontinued operations | 570 | 2,685 |
NET INCOME (LOSS) | 3,716 | (13,279) |
Net (income) loss attributable to noncontrolling interests – Operating Partnership | (135) | 1,644 |
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities | (665) | 371 |
Net income (loss) attributable to controlling interests | 2,916 | (11,264) |
Dividends to preferred shareholders | (1,705) | (2,286) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ 1,211 | $ (13,550) |
Earnings (loss) per common share from continuing operations – basic and diluted (in dollars per share) | $ 0.01 | $ (0.13) |
Earnings per common share from discontinued operations – basic and diluted (in dollars per share) | 0 | 0.02 |
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED (in dollars per share) | 0.01 | (0.11) |
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.07 | $ 0.07 |
Management Service [Member] | ||
EXPENSES | ||
Property management expense | $ 1,367 | $ 1,356 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 3,716 | $ (13,279) |
Other comprehensive income: | ||
Unrealized gain from derivative instrument | 208 | 0 |
Loss on derivative instrument reclassified into earnings | 29 | 0 |
Total comprehensive income (loss) | 3,953 | (13,279) |
Net comprehensive (income) loss attributable to noncontrolling interests – Operating Partnership | (157) | 1,644 |
Net (income) loss attributable to noncontrolling interests – consolidated real estate entities | (665) | 371 |
Comprehensive income (loss) attributable to controlling interests | $ 3,131 | $ (11,264) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | PREFERRED STOCK [Member] | COMMON SHARES [Member] | ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INCOME [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME [Member] | NONREDEEMABLE NONCONTROLLING INTERESTS [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member]ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INCOME [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member]ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INCOME [Member] |
Balance at Apr. 30, 2017 | $ 636,158 | $ 111,357 | $ 908,905 | $ (466,541) | $ 0 | $ 82,437 | ||||
Balance (in shares) at Apr. 30, 2017 | 121,199 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to controlling interests and nonredeemable noncontrolling interests | (13,108) | (11,264) | (1,844) | |||||||
Distributions – common shares and units | (9,509) | (8,444) | (1,065) | |||||||
Distributions - preferred shares | (2,286) | $ (2,286) | $ (2,286) | |||||||
Shares issued and share-based compensation (in shares) | 75 | |||||||||
Shares issued and share-based compensation | 469 | $ 469 | ||||||||
Redemption of units for cash | (5,735) | (5,735) | ||||||||
Shares repurchased (in shares) | (682) | |||||||||
Shares repurchased | (3,936) | $ (3,936) | ||||||||
Distributions to nonredeemable noncontrolling interests – consolidated real estate entities | (20) | (20) | ||||||||
Other (in shares) | (5) | |||||||||
Other | (29) | $ (29) | ||||||||
Balance at Jul. 31, 2017 | 602,004 | 111,357 | $ 905,409 | (488,535) | 0 | 73,773 | ||||
Balance (in shares) at Jul. 31, 2017 | 120,587 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative adjustment upon adoption of ASC 606 and ASC 610-20 | 627 | 627 | ||||||||
Adjusted balance | 688,190 | 99,456 | $ 900,097 | (395,042) | 1,779 | 81,900 | ||||
Balance at Apr. 30, 2018 | 687,563 | 99,456 | $ 900,097 | (395,669) | 1,779 | 81,900 | ||||
Balance (in shares) at Apr. 30, 2018 | 119,526 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to controlling interests and nonredeemable noncontrolling interests | 3,880 | 2,916 | 964 | |||||||
Other comprehensive income - derivative instrument | 208 | 208 | ||||||||
Distributions – common shares and units | (9,346) | (8,359) | (987) | |||||||
Distributions - preferred shares | (1,705) | $ (1,705) | $ (1,705) | |||||||
Shares issued and share-based compensation (in shares) | 24 | |||||||||
Shares issued and share-based compensation | 320 | $ 320 | ||||||||
Redemption of units for common shares (in shares) | 114 | |||||||||
Redemption of units for cash | 0 | $ 291 | (291) | |||||||
Redemption of units for cash | (479) | (479) | ||||||||
Shares repurchased (in shares) | (119) | |||||||||
Shares repurchased | (615) | $ (615) | ||||||||
Partial acquisition of noncontrolling interests - consolidated real estate entities | (28) | $ (178) | 150 | |||||||
Distributions to nonredeemable noncontrolling interests – consolidated real estate entities | (2,099) | (2,099) | ||||||||
Conversion to equity of notes receivable from nonredeemable noncontrolling interests - consolidated real estate entities | (392) | (392) | ||||||||
Other (in shares) | (38) | |||||||||
Other | (207) | $ (207) | ||||||||
Balance at Jul. 31, 2018 | $ 677,727 | $ 99,456 | $ 899,708 | $ (402,190) | $ 1,987 | $ 78,766 | ||||
Balance (in shares) at Jul. 31, 2018 | 119,507 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 3,716,000 | $ (13,279,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization, including amortization of capitalized loan costs | 18,944,000 | 25,616,000 |
Depreciation and amortization from discontinued operations, including amortization of capitalized loan costs | 0 | 3,622,000 |
Gain on sale of real estate, land, other investments and discontinued operations | (9,794,000) | (124,000) |
Loss on extinguishment of debt | 482,000 | 133,000 |
Share-based compensation expense | 114,000 | 376,000 |
Impairment of real estate investments | 0 | 256,000 |
Other, net | 399,000 | 171,000 |
Changes in other assets and liabilities: | ||
Other assets | 850,000 | 950,000 |
Accounts payable and accrued expenses | 13,000 | (1,974,000) |
Net cash provided by operating activities | 14,724,000 | 15,747,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Principal proceeds on mortgage loans receivable | 425,000 | 0 |
Increase in notes receivable | (736,000) | (3,000,000) |
Proceeds from sale of real estate and other investments | 49,276,000 | 3,300,000 |
Insurance proceeds received | 632,000 | 542,000 |
Payments for acquisitions of real estate assets | (585,000) | (61,734,000) |
Payments for development and re-development of real estate assets | 0 | (2,219,000) |
Payments for improvements of real estate assets | (5,094,000) | (4,984,000) |
Payments for improvements of real estate assets from discontinued operations | 0 | (503,000) |
Net cash provided by (used by) investing activities | 43,918,000 | (68,598,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on mortgages payable, including prepayment penalties | (46,150,000) | (25,406,000) |
Proceeds from revolving lines of credit | 27,000,000 | 72,350,000 |
Principal payments on revolving lines of credit | (21,000,000) | (3,500,000) |
Proceeds from construction debt | 0 | 1,606,000 |
Repurchase of common shares | (615,000) | (3,936,000) |
Repurchase of partnership units | (480,000) | (5,735,000) |
Distributions paid to common shareholders | (8,358,000) | (8,444,000) |
Distributions paid to preferred shareholders | (1,705,000) | (2,285,000) |
Distributions paid to noncontrolling interests – Unitholders of the Operating Partnership | (987,000) | (1,065,000) |
Distributions paid to noncontrolling interests – consolidated real estate entities | (2,099,000) | (20,000) |
Net cash provided by (used by) financing activities | (54,394,000) | 23,565,000 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 4,248,000 | (29,286,000) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 16,116,000 | 56,800,000 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 20,364,000 | 27,514,000 |
SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Operating partnership units converted to shares | 291,000 | 0 |
Decrease to accounts payable included within real estate investments | (806,000) | (1,377,000) |
Notes and accounts receivable converted to equity | 670,000 | 0 |
Construction debt reclassified to mortgages payable | 0 | 23,300,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | $ 8,014,000 | $ 8,125,000 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Jul. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Investors Real Estate Trust, collectively with our consolidated subsidiaries (“IRET,” “we,” “us,” or “our”), is a real estate investment trust (“REIT”) focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of July 31, 2018 , we owned interests in 87 apartment communities consisting of 13,703 apartment homes. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION We conduct a majority of our business activities through our consolidated operating partnership, IRET Properties, A North Dakota Limited Partnership (the “Operating Partnership”), as well as through a number of other consolidated subsidiary entities. The accompanying condensed consolidated financial statements include our accounts and the accounts of all our subsidiaries in which we maintain a controlling interest, including the Operating Partnership. All intercompany balances and transactions are eliminated in consolidation. Our fiscal year ends on April 30. The condensed consolidated financial statements also reflect the Operating Partnership's ownership of certain joint venture entities in which the Operating Partnership has a general partner or controlling interest. These entities are consolidated into our operations, with noncontrolling interests reflecting the noncontrolling partners’ share of ownership, income, and expenses. PRIOR PERIOD FINANCIAL STATEMENT CORRECTION OF AN IMMATERIAL MISSTATEMENT During the first quarter of fiscal year 2019, we identified certain adjustments required to correct balances within total equity related to noncontrolling interests in our joint venture entities. Related to our acquisition of additional ownership interest in the joint venture entities, noncontrolling interest - consolidated real estate entities was understated and common shares of beneficial interest was overstated beginning in fiscal year 2017. The adjustments did not impact total assets, total liabilities, revenue, net income, net income available to common shareholders, number of common shares, or earnings per share. Based on an analysis of Accounting Standards Codification (“ASC”) 250 - “Accounting Changes and Error Corrections” (“ASC 250”), Staff Accounting Bulletin 99 - “Materiality” (“SAB 99”) and Staff Accounting Bulletin 108 - "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements" (“SAB 108”), we determined that these errors were immaterial to the previously-issued financial statements. The misstatement was corrected in the condensed consolidated balance sheets as of April 30, 2018 and the condensed consolidated statements of equity as of April 30, 2018 and 2017 and July 31, 2017. The effect of these revisions on our condensed consolidated balance sheet is as follows: (in thousands) As previously reported at April 30, 2018 Adjustment As revised at April 30, 2018 Common shares of beneficial interest $ 907,843 $ (7,746 ) $ 900,097 Noncontrolling interests - consolidated real estate entities 1,078 7,810 8,888 Redeemable noncontrolling interests - consolidated real estate entities 6,708 (64 ) 6,644 The effect of these revisions on our condensed consolidated statements of equity is as follows: (in thousands) As previously reported at April 30, 2018 Adjustment As revised at April 30, 2018 Common shares of beneficial interest $ 907,843 $ (7,746 ) $ 900,097 Nonredeemable noncontrolling interests 74,090 7,810 81,900 (in thousands) As previously reported at April 30, 2017 Adjustment As revised at April 30, 2017 Common shares of beneficial interest $ 916,121 $ (7,216 ) $ 908,905 Nonredeemable noncontrolling interests 75,157 7,280 82,437 (in thousands) As previously reported at July 31, 2017 Adjustment As revised at July 31, 2017 Common shares of beneficial interest $ 912,625 $ (7,216 ) $ 905,409 Nonredeemable noncontrolling interests 66,493 7,280 73,773 UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Our interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. The year-end balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods, have been included. The current period’s results of operations are not necessarily indicative of results which ultimately may be achieved for the year. The interim condensed consolidated financial statements and accompanying notes thereto should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018 , as filed with the SEC on June 28, 2018. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. TAX CUTS AND JOBS ACT OF 2017 The Tax Cuts and Jobs Act of 2017 was passed on December 22, 2017. This Act includes a number of changes to the corporate income tax system, including (1) a reduction in the statutory federal corporate income tax rate from 35% to 21% for non-REIT “C” corporations, (2) changes to deductions for certain pass-through business income, and (3) potential limitations on interest expense, depreciation, and the deductibility of executive compensation. As a REIT, we generally will not be subject to federal income tax on our taxable income at the corporate level and do not believe that any of the changes from the 2017 Tax Cut and Jobs Act of 2007 will have a material impact on our consolidated financial statements. However, the impact of this Act is not yet fully known, and there can be no assurance that it will not have an adverse impact on our results of operations. RECENT ACCOUNTING PRONOUNCEMENTS The following table provides a brief description of recent accounting standards updates (“ASUs”). Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This ASU will eliminate the transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. This ASU is effective for annual reporting periods beginning after December 15, 2017, as a result of a deferral of the effective date arising from the issuance of ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date . Early adoption is permitted. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. The majority of our revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASC 840, Leases. Our other revenue streams, which were evaluated under this ASU, include but are not limited to other income from residents determined not to be within the scope of ASC 840 and gains and losses from real estate dispositions. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2016-02, Leases This ASU amends existing accounting standards for lease accounting, including by requiring lessees to recognize most leases on the balance sheet and making certain changes to lessor accounting. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We expect our residential leases, where we are the lessor, will continue to be accounted for as operating leases under the new standard. As a result, we do not expect significant changes in the accounting for lease revenue. For leases where we are the lessee, we will recognize a right of use asset and related lease liability on our consolidated balance sheets upon adoption. We are continuing to evaluate the impact the new standard may have on our consolidated financial statements. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight specific cash flow issues with the objective of reducing diversity in practice. The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective May 1, 2018. The standard requires we present combined inflows and outflows of cash, cash equivalents, and restricted cash in the consolidated statement of cash flows. See additional disclosures regarding the required change below. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets This ASU clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01. This ASU allows for either a retrospective or modified retrospective approach. This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2018-10, Codification Improvements to Topic 842, Leases This ASU was issued to increase shareholders' awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. ASU 2018-11, Leases: Targeted Improvements This ASU allows lessors to account for lease and non-lease components, by class of underlying assets, as a single lease component is certain criteria are met. The new standard also indicates that companies are permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the modified retrospective approach and provides other practical expedients. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. RECLASSIFICATIONS Certain previously reported amounts have been reclassified to conform to the current financial statement presentation. These reclassifications had no impact on net income as reported in the condensed consolidated statement of operations, total assets, liabilities, or equity as reported in the condensed consolidated balance sheets and total shareholders' equity. We report in discontinued operations the results of operations and the related gains or losses of properties that have either been disposed or classified as held for sale and for which the disposition represents a strategic shift that has or will have a major effect on our operations and financial results. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Effective May 1, 2018, we adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments which affects the presentation and disclosure of the statements of cash flows. Previously our consolidated statements of cash flows presented transfers between restricted cash and unrestricted cash as operating, financing, and investing cash activities based upon the required or intended purpose for the restricted cash. We have revised our condensed consolidated statements of cash flows for the three months ended July 31, 2017 to conform to this presentation, and the effect of the revisions to net cash flows from operating and investing activities as previously reported for the three months ended July 31, 2017 are summarized in the following table: (in thousands) As previously reported Impact of ASU As adjusted and currently reported July 31, 2017 2016-15 July 31, 2017 Net cash provided by operating activities $ 15,828 $ (81 ) $ 15,747 Net cash provided by investing activities (44,544 ) (24,054 ) (68,598 ) Net cash provided by financing activities 23,698 (133 ) 23,565 Net increase (decrease) in cash, cash equivalents (5,018 ) 5,018 — Net increase (decrease) in cash, cash equivalents, and restricted cash — (29,286 ) (29,286 ) Cash and cash equivalents at beginning of period 28,819 (28,819 ) — Cash, cash equivalents, and restricted cash at beginning of period — 56,800 56,800 Cash and cash equivalents at end of period $ 23,801 Cash, cash equivalents, and restricted cash at end of period $ 3,713 $ 27,514 (in thousands) Balance sheet description July 31, 2018 July 31, 2017 Cash and cash equivalents 16,261 23,801 Restricted cash 4,103 3,713 Total cash, cash equivalents and restricted cash 20,364 27,514 As of July 31, 2018 , restricted cash consisted of $4.1 million of escrows held by lenders for real estate taxes, insurance, and capital additions. REVENUES We adopted ASU 2014-09, Revenue from Contracts with Customers, as of May 1, 2018. We elected to apply the new standard to contracts that are not complete as of May 1, 2018. We also elected to omit disclosing the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Under the new standard, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration the company expects to be entitled for those goods and services. We primarily lease multifamily apartments under operating leases generally with terms of one year or less. Rental revenues are recognized in accordance with ASC 840, Leases, using a method that represents a straight-line basis over the term of the lease. Rental income represents approximately 94.7% of our total revenues and includes gross market rent less adjustments for concessions, vacancy loss, and bad debt. Other property revenues represent the remaining 5.3% of our total revenue and are primarily driven by utility reimbursement from our residents, which is typically recognized at a point in time, and other fee revenue, which is primarily recognized at a point in time. Revenue streams that are included in ASU 2014-09 include: • O ther property revenues: We recognize revenue for new rental related income not included as a component of a lease, such as utility reimbursement and application fees, as earned, and have concluded that this is appropriate under the new standard. • Gains or losses on sales of real estate: Subsequent to the adoption of the new standard, a gain or loss is recognized when the criteria for derecognition of an asset are met, including when (1) a contract exists and (2) the buyer obtained control of the nonfinancial asset that was sold. As a result, we may recognize a gain on real estate disposition transactions that previously did not qualify as a sale or for full profit recognition under the previous accounting standard. We concluded that the adoption of the new standard required a cumulative adjustment of $627,000 to the opening balance of retained earnings as of May 1, 2018 due to the sale of a group of properties in the prior fiscal year. The sale of properties was previously accounted for using the installment method. Under the installment method, we recorded a mortgage receivable net of the deferred gain on sale, which was to be recognized as payments were received. The gain on sale under the new revenue standard is recognized when control of the assets is transferred to the buyer. As a result of our adoption of the new standard, we recorded a cumulative adjustment to retained earnings and increased the mortgage receivable for $627,000 to recognize the previously deferred gain on sale. The following table presents the disaggregation of revenue streams of our rental income for the three months ended July 31, 2018: (in thousands) Three Months Ended July 31, 2018 Revenue Stream Applicable Standard Amount of Revenue Percent of Revenue Rental revenue Leases 43,514 94.7 % Other property revenue Revenue Recognition 2,432 5.3 % 45,946 100.0 % IMPAIRMENT OF LONG-LIVED ASSETS We periodically evaluate our long-lived assets, including investments in real estate, for impairment indicators. The impairment evaluation is performed on assets by property such that assets for a property form an asset group. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions, expected holding period of each asset group, and legal and environmental concerns. If indicators exist, we compare the expected future undiscounted cash flows for the long-lived asset group against the carrying amount of that asset group. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss is recorded for the difference between the estimated fair value and the carrying amount of the asset group. If our anticipated holding period for properties, the estimated fair value of properties, or other factors change based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates, and capital requirements that could differ materially from actual results. Reducing planned property holding periods may increase the likelihood of recording impairment losses. During the three months ended July 31, 2018 , we recorded no impairment charges. During the three months ended July 31, 2017 , we recognized impairment charges of $256,000 on a parcel of land in Bismarck, ND. This property was written down to estimated fair value during the first quarter of fiscal year 2018 based on receipt of a market offer to purchase and our intent to dispose of the property. We disposed of the property during the second quarter of fiscal year 2018. CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS We review the estimated useful lives of our real estate assets on an ongoing basis. Prior to our strategic shift to become a multifamily-focused REIT, which began in fiscal year 2016, we operated in five segments (office, retail, industrial, healthcare and multifamily). Accordingly, our estimated useful lives represented a blend of these segments. During fiscal years 2016, 2017, and 2018, we disposed of the bulk of our office, retail, industrial, and healthcare portfolios. In the first quarter of fiscal year 2018, we determined it was appropriate to review and adjust our estimated useful lives to be specific to our remaining asset portfolio. Effective May 1, 2017, we changed the estimated useful lives of our real estate assets to better reflect the estimated periods during which they will be of economic benefit. Generally, the estimated lives of buildings and improvements that previously were 20 - 40 years have been decreased to 10 - 37 years, while those that were previously nine years were changed to 5 - 10 years. The effect of this change in estimate for the three months ended July 31, 2017 , was to increase depreciation expense by approximately $14.4 million , decrease net income by $14.4 million , and decrease earnings per share by $0.11 . Of the expense increase, $9.0 million , or $0.07 per share, represented depreciation on assets that were fully depreciated under the new estimated useful lives in the first quarter of fiscal year 2018. MORTGAGE RECEIVABLE AND NOTES RECEIVABLE In August 2017, we sold 13 multifamily properties in exchange for cash and a note secured by a mortgage on the assets. As of July 31, 2018 , the remaining balance on the mortgage was $10.5 million . The note bears an interest rate of 5.5% and matures in August 2020. Monthly payments are interest-only, with the principal balance payable at maturity. During the three months ended July 31, 2018 , we received and recognized approximately $202,000 of interest income. During the three months ended July 31, 2018 , we received a payment of $425,000 to pay down the balance of the mortgage receivable and released one of the 13 properties from the assets used to secure the mortgage. In July 2017, we originated a $16.2 million loan in a multifamily development located in New Hope, MN, a Minneapolis suburb. As of July 31, 2018 , we had funded the full loan balance, which appears in other assets on our Condensed Consolidated Balance Sheets. The note bears an interest rate of 6% , matures in July 2023, and provides us an option to purchase the development prior to the loan maturity date. VARIABLE INTEREST ENTITY We have determined that our Operating Partnership is a variable interest entity (“VIE”), as the limited partners lack substantive kick-out rights and substantive participating rights. Certain of our less-than-wholly-owned real estate entities are also VIEs. We are the primary beneficiary of the VIEs, and the VIEs are required to be consolidated on our balance sheet because we have a controlling financial interest in the VIEs and have both the power to direct the activities of the VIEs that most significantly impact the VIEs' economic performance as well as the obligation to absorb losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Because our Operating Partnership is a VIE, all of our assets and liabilities are held through a VIE. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of our common shares of beneficial interest (“Common Shares”) outstanding during the period. We have issued restricted stock units (“RSUs”) under our 2015 Incentive Plan, which could have a dilutive effect on our earnings per share upon exercise of the RSUs. Other than the issuance of RSUs, we have no outstanding options, warrants, convertible stock or other contractual obligations requiring issuance of additional shares that would result in dilution of earnings. Under the terms of the Operating Partnership’s Agreement of Limited Partnership, limited partners have the right to require the Operating Partnership to redeem their limited partnership units (“Units”) any time following the first anniversary of the date they acquired such Units (“Exchange Right”). Upon the exercise of Exchange Rights, and in our sole discretion, we may issue Common Shares in exchange for Units on a one-for-one basis. The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three months ended July 31, 2018 and 2017 : (in thousands, except per share data) Three Months Ended 2018 2017 NUMERATOR Income (loss) from continuing operations – controlling interests $ 2,405 $ (13,651 ) Income from discontinued operations – controlling interests 511 2,387 Net income (loss) attributable to controlling interests 2,916 (11,264 ) Dividends to preferred shareholders (1,705 ) (2,286 ) Redemption of preferred shares — — Numerator for basic earnings (loss) per share – net income available to common shareholders 1,211 (13,550 ) Noncontrolling interests – Operating Partnership 135 (1,644 ) Numerator for diluted earnings (loss) per share $ 1,346 $ (15,194 ) DENOMINATOR Denominator for basic earnings per share weighted average shares 119,245 120,421 Effect of redeemable operating partnership units 14,026 15,128 Denominator for diluted earnings per share 133,271 135,549 Earnings (loss) per common share from continuing operations – basic and diluted $ 0.01 $ (0.13 ) Earnings per common share from discontinued operations – basic and diluted — 0.02 NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED $ 0.01 $ (0.11 ) Performance-based restricted stock awards of 248,000 and 115,000 for the three months ended July 31, 2018 and 2017 , respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share plus the average unearned compensation were greater than the average market price of the common stock for the periods presented and, therefore, were anti-dilutive. Refer to Note 13 - Share-Based Compensation for discussion of the terms for these awards. |
EQUITY
EQUITY | 3 Months Ended |
Jul. 31, 2018 | |
Equity [Abstract] | |
EQUITY | EQUITY Operating Partnership Units. Outstanding Units in the Operating Partnership were 13.9 million Units at July 31, 2018 and 14.1 million Units at April 30, 2018 . Common Shares and Equity Awards . Common Shares outstanding on July 31, 2018 and April 30, 2018 , totaled 119.5 million and 119.5 million , respectively. There were 43,000 shares issued under our 2015 Incentive Award Plan during the three months ended July 31, 2018 , with a total grant-date fair value of $264,000 . During the three months ended July 31, 2017 , we issued 75,000 restricted Common Shares, with a total grant-date fair value of $445,000 . These shares are issued under our 2015 Incentive Award Plan for executive officer and trustee share-based compensation. These shares vest based on performance and service criteria. Exchange Rights . Pursuant to the exercise of Exchange Rights, during the three months ended July 31, 2018 , we redeemed 90,000 Units for an aggregate cost of $480,000 , at an average price per Unit of $5.31 . During the three months ended July 31, 2017 , we redeemed 960,000 Units for an aggregate cost of $5.7 million , at an average price per Unit of $5.97 . During the three months ended July 31, 2018 , we redeemed 114,000 Units in exchange for common shares in connection with Unitholders exercising their Exchange Rights, with a total book value of $291,000 . During the three months ended July 31, 2017 , we redeemed no Units in exchange for common shares. Share Repurchase Program . On December 7, 2016, our Board of Directors authorized a share repurchase program to repurchase up to $50 million of our Common Shares over a one -year period. On December 5, 2017, our Board of Trustees reauthorized this share repurchase program for an additional one -year period. Under this program, we may repurchase Common Shares in open-market purchases, including pursuant to Rule 10b5-1 and Rule 10b-18 plans, as determined by management and in accordance with the requirements of the SEC. The extent to which we repurchase our shares, and the timing of repurchases, will depend on a variety of factors, including market conditions, regulatory requirements, and other corporate considerations, as determined by the executive management team. This program may be suspended or discontinued at any time. During the three months ended July 31, 2018 , we repurchased and retired 118,000 common shares for an aggregate cost of $615,000 , including commissions, at an average price per share of $5.20 . During the three months ended July 31, 2017 , we repurchased and retired 682,000 common shares for an aggregate cost of $3.9 million , including commissions, at an average price per share of $5.77 . As of July 31, 2018 , $34.9 million remained available under the $50 million authorized share repurchase program. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We operate in a single reportable segment, which includes the ownership, management, development, redevelopment, and acquisition of apartment communities. Each of our operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information. Our chief operating decision-makers evaluate each property's operating results to make decisions about resources to be allocated and to assess performance. We do not group our operations based on geography, size, or type. Our apartment communities have similar long-term economic characteristics and provide similar products and services to our residents. No apartment community comprises more than 10% of consolidated revenues, profits, or assets. Accordingly, our apartment communities are aggregated into a single reportable segment. Prior to the third quarter of fiscal year 2018, we reported our results in two reportable segments: multifamily and healthcare. We sold substantially all of our healthcare portfolio during the third quarter of fiscal year 2018 and classified it as discontinued operations (see Note 7 for additional information). Healthcare no longer meets the quantitative thresholds for reporting as a separate reportable segment and therefore is included in “all other” with other non-multifamily properties. As of July 31, 2018 , we no longer own any healthcare properties. Our executive management team comprises our chief operating decision-makers. This team measures the performance of our reportable segment based on net operating income (“NOI”), which we define as total real estate revenues less property operating expenses and real estate tax expense combined (referred to as "real estate expenses"). We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of operations that is unaffected by depreciation, amortization, financing, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with U.S. GAAP and should not be considered an alternative to net income, net income available for common shareholders, or cash flow from operating activities as a measure of financial performance. The revenues and NOI for the multifamily reportable segment are summarized as follows for the three -month periods ended July 31, 2018 and 2017 , respectively, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements. (in thousands) Three Months Ended July 31, 2018 Multifamily All Other Total Real estate revenue $ 43,089 $ 2,857 $ 45,946 Real estate expenses 18,486 1,043 19,529 Net operating income $ 24,603 $ 1,814 $ 26,417 Property management expenses (1,367 ) Casualty loss (225 ) Depreciation and amortization (18,612 ) General and administrative expenses (3,870 ) Interest expense (8,385 ) Loss on debt extinguishment (552 ) Interest and other income 516 Loss before gain on sale of real estate and other investments and income from discontinued operations (6,078 ) Gain on sale of real estate and other investments 9,224 Income (loss) from continuing operations 3,146 Income (loss) from discontinued operations 570 Net income (loss) $ 3,716 (in thousands) Three Months Ended July 31, 2017 Multifamily All Other Total Real estate revenue $ 35,999 $ 4,979 $ 40,978 Real estate expenses 15,734 1,793 17,527 Net operating income $ 20,265 $ 3,186 $ 23,451 Property management expenses (1,356 ) Casualty loss (485 ) Depreciation and amortization (25,338 ) Loss on impairment (256 ) General and administrative expenses (4,002 ) Interest expense (8,131 ) Loss on debt extinguishment (199 ) Interest and other income 228 Loss before gain on sale of real estate and other investments and income from discontinued operations (16,088 ) Gain on sale of real estate and other investments 124 Income (loss) from continuing operations (15,964 ) Income (loss) from discontinued operations 2,685 Net income (loss) $ (13,279 ) Segment Assets and Accumulated Depreciation Segment assets are summarized as follows as of July 31, 2018 , and April 30, 2018 , respectively, along with reconciliations to the condensed consolidated financial statements: (in thousands) As of July 31, 2018 Multifamily All Other Total Segment assets Property owned $ 1,576,345 $ 59,888 $ 1,636,233 Less accumulated depreciation (309,862 ) (16,910 ) (326,772 ) Total property owned $ 1,266,483 $ 42,978 $ 1,309,461 Cash and cash equivalents 16,261 Restricted cash 4,103 Other assets 27,885 Unimproved land 7,926 Mortgage loans receivable 10,530 Total Assets $ 1,376,166 (in thousands) As of April 30, 2018 Multifamily All Other Total Segment assets Property owned $ 1,606,421 $ 63,343 $ 1,669,764 Less accumulated depreciation (294,477 ) (16,847 ) (311,324 ) Total property owned $ 1,311,944 $ 46,496 $ 1,358,440 Cash and cash equivalents 11,891 Restricted cash 4,225 Other assets 30,297 Unimproved land 11,476 Mortgage loans receivable 10,329 Total Assets $ 1,426,658 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation. We are subject to a variety of legal actions for personal injury or property damage arising in the ordinary course of our business, most of which are covered by liability insurance. Various resident claims are also brought periodically, most of which are covered by insurance. While resolution of these matters cannot be predicted with certainty, management believes that the final outcome of these claims and legal proceedings will not have a material effect on our liquidity, financial position, cash flows, or results of operations. Environmental Matters. Under various federal, state, and local laws, ordinances, and regulations, a current or previous owner or operator of real estate may be liable for the costs of removal of, or remediation of, certain hazardous or toxic substances in, on, around, or under the property. While we currently have no knowledge of any material violation of environmental laws, ordinances, or regulations at any of our properties, there can be no assurance that areas of contamination will not be identified at any of our properties or that changes in environmental laws, regulations, or cleanup requirements would not result in material costs to us. Restrictions on Taxable Dispositions. Twenty-five of our properties, consisting of 4,195 apartment units, are subject to restrictions on our ability to resell in taxable transactions. These restrictions are contained in agreements we entered into with some of the sellers or contributors of the properties and are effective for varying periods. The real estate investment amount of these properties (net of accumulated depreciation) was $548.6 million at July 31, 2018 . We do not believe that these agreements materially affect the conduct of our business or our decisions whether to dispose of restricted properties during the restriction period because we generally hold these and our other properties for investment purposes rather than for sale. In addition, where we deem it to be in our shareholders' best interests to dispose of such properties, we generally seek to structure sale of such properties as tax deferred transactions under Section 1031 of the Internal Revenue Code (the "Code"). If we decide to sell one or more of these properties and are unable to structure sales of such properties as tax deferred transactions under Section 1031 of the Code, we may be required to provide tax indemnification payments to the parties to these agreements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Jul. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS We report in discontinued operations the results of operations and the related gains or losses on the sales of properties that have either been disposed of or classified as held for sale and meet the classification of a discontinued operation as described in ASC 205, " Presentation of Financial Statements," and ASC 360, " Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." Under this standard, a disposal (or classification as held for sale) of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We classified no new dispositions or properties held for sale as discontinued operations during the three months ended July 31, 2018 and 2017 . The following information shows the effect on net income and the gains or losses from the sales of properties classified as discontinued operations for the three months ended July 31, 2018 and 2017 , respectively: (in thousands) Three Months Ended July 31, 2018 2017 REVENUE $ — $ 11,955 EXPENSES Property operating expenses, excluding real estate taxes — 2,257 Real estate taxes — 1,961 Property management — 72 Depreciation and amortization — 3,589 Impairment of real estate investments — — TOTAL EXPENSES $ — $ 7,879 Operating income — 4,076 Interest expense — (1,985 ) Loss on extinguishment of debt — — Interest income — 544 Other income — 50 Income from discontinued operations before gain on sale — 2,685 Gain on sale of discontinued operations 570 — INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ 570 $ 2,685 As of July 31, 2018 and April 30, 2018 , we had no assets or liabilities classified as held for sale. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 3 Months Ended |
Jul. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS PROPERTY ACQUISITIONS We added no new real estate property to our portfolio through property acquisitions during the three months ended July 31, 2018 , compared to $61.5 million in the three months ended July 31, 2017 . Our acquisitions during the three months ended July 31, 2017 are detailed below. Three Months Ended July 31, 2017 Date Acquired (in thousands) Total Acquisition Cost Investment Allocation Acquisitions Land Building Intangible Assets Multifamily 191 unit - Oxbo - St. Paul, MN (1) May 26, 2017 $ 61,500 $ 5,809 $ 54,910 $ 781 Total Property Acquisitions $ 61,500 $ 5,809 $ 54,910 $ 781 (1) Property includes 11,477 square feet of retail space. PROPERTY DISPOSITIONS During the three months ended July 31, 2018 , we sold three apartment communities, two commercial properties, and two parcels of land for a total sale price of $49.1 million . During the three months ended July 31, 2017 , we sold one commercial property for a total sale price of $3.4 million . The following table details our dispositions for the three months ended July 31, 2018 and 2017 : Three Months Ended July 31, 2018 (in thousands) Dispositions Date Sales Price Book Value and Sale Cost Gain/(Loss) Multifamily 44 unit - Dakota Commons - Williston, ND July 26, 2018 $ 4,420 $ 3,878 $ 542 145 unit - Williston Garden - Williston, ND (1) July 26, 2018 12,310 11,313 997 288 unit - Renaissance Heights - Williston, ND (2) July 26, 2018 24,770 17,856 6,914 41,500 33,047 8,453 Other 7,849 sq ft Minot Southgate Retail - Minot, ND July 12, 2018 $ 1,925 $ 2,056 $ (131 ) 9,052 sq ft Fresenius - Duluth, MN July 27, 2018 1,900 1,078 $ 822 3,825 3,134 691 Unimproved Land Grand Forks - Grand Forks, ND July 16, 2018 $ 3,000 $ 2,986 $ 14 Renaissance Heights - Williston, ND (3) July 26, 2018 750 684 66 3,750 3,670 80 Total Property Dispositions $ 49,075 $ 39,851 $ 9,224 (1) This apartment community was owned by a joint venture entity in which we had an interest of approximately 74.11% . The joint venture is consolidated in our financial statements. (2) This apartment community was owned by a joint venture entity in which we had an interest of approximately 87.14% . The joint venture is consolidated in our financial statements. (3) This parcel of land was owned by a joint venture entity in which we had an interest of approximately 70.00% . The joint venture is consolidated in our financial statements. Three Months Ended July 31, 2017 (in thousands) Dispositions Date Disposed Sale Price Book Value and Sale Cost Gain/(Loss) Other 4,998 sq ft Minot Southgate Wells Fargo Bank - Minot, ND May 15, 2017 $ 3,440 $ 3,332 $ 108 Total Property Dispositions $ 3,440 $ 3,332 $ 108 |
DEBT
DEBT | 3 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of July 31, 2018 , we owned 94 properties, of which 53 multifamily and other properties (with a carrying amount of $593.7 million ) served as collateral for mortgage loans. The majority of these mortgage loans were non-recourse to us other than for standard carve-out obligations. As of July 31, 2018 , we believe that there are no material defaults or compliance issues with respect to any mortgages payable. The aggregate amount of required future principal payments on mortgages payable as of July 31, 2018 , is as follows: (in thousands) Year Ended April 30, Mortgage Loans 2019 $ 7,442 2020 86,400 2021 92,179 2022 70,506 2023 27,494 Thereafter 182,534 Total payments $ 466,555 As noted above, as of July 31, 2018 , we owned 41 multifamily and other properties that were not encumbered by mortgages, with 30 of those properties providing credit support for our unsecured borrowings. Our primary unsecured credit facility is a revolving, multi-bank line of credit, with the Bank of Montreal serving as administrative agent. Our line of credit has total commitments of $300.0 million , with borrowing capacity based on the value of properties contained in the unencumbered asset pool ("UAP"). The UAP currently provides for a borrowing capacity of $300.0 million , providing additional borrowing availability of $170.0 million beyond the $130.0 million drawn as of July 31, 2018 . This credit facility matures on January 31, 2021, with one twelve -month option to extend the maturity date at our election. Subsequent to quarter-end, we amended our existing term loan and line of credit and added a new term loan. Refer to "Note 15 - Subsequent Events" for further information. During the fiscal year ended April 30, 2018, we entered into a $70.0 million unsecured term loan, which matures on January 31, 2023. We maintain a $200.0 million option that can be accessed by increasing lending commitments under the current agreement. The interest rates on the line of credit and term loan are based, at our option, on the lender's base rate plus a margin, ranging from 60-125 basis points, or the London Interbank Offered Rate ("LIBOR"), plus a margin that ranges from 160-225 basis points based on our consolidated leverage. Our line of credit and term loan are subject to customary financial covenants and limitations. We believe that we are in compliance with all such financial covenants and limitations as of July 31, 2018 . We also have a $6.0 million operating line of credit. This operating line of credit is designated to enhance treasury management activities and more effectively manage cash balances. This operating line has a one -year term, with pricing based on a market spread plus the one-month LIBOR index rate. As of July 31, 2018 and April 30, 2018 , we have no outstanding balance on this operating line. The following table summarizes our indebtedness at July 31, 2018 : (in thousands) July 31, 2018 April 30, 2018 Weighted Average Maturity in Years Unsecured line of credit $ 130,000 $ 124,000 3.0 Term loan 70,000 70,000 4.0 Unsecured debt 200,000 194,000 Mortgages payable - fixed 466,555 489,401 5.4 Mortgages payable - variable — 22,739 Total debt $ 666,555 $ 706,140 4.9 Weighted average interest rate on unsecured line of credit 3.83 % 3.35 % Weighted average interest rate on term loan (rate with swap) 3.86 % 3.86 % Weighted average interest rate on mortgages payable 4.65 % 4.69 % |
DERIVATIVE INSTRUMENT
DERIVATIVE INSTRUMENT | 3 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENT | DERIVATIVE INSTRUMENT Our objective in using an interest rate derivative is to hedge our exposure to the variability in cash flows of our floating-rate debt. To accomplish this objective, we entered into an interest rate swap contract to fix the variable interest rate on our term loan. The interest rate swap had a $70.0 million notional amount and qualified as a cash flow hedge. Under ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which we adopted on November 1, 2017, the ineffective portion of a hedging instrument is no longer required to be recognized currently in earnings or disclosed. Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income for our interest rate swap will be reclassified to interest expense as interest expense is incurred on our term loan. The gain recognized in other comprehensive income for the three months ended July 31, 2018 , was $208,000 , and the amount reclassified from accumulated other comprehensive income into interest expense during this period was $29,000 . At July 31, 2018 and April 30, 2018 , the fair value of our interest rate swap included in other assets on our Condensed Consolidated Balance Sheets was $2.0 million and $1.8 million , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash and cash equivalents, restricted cash, accounts payable, accrued expenses, and other liabilities are carried at amounts that reasonably approximate their fair value due to their short-term nature. For variable rate debt that re-prices frequently, fair values are based on carrying values. The fair values of our financial instruments approximate their carrying amount in the consolidated financial statements except for fixed rate debt. In determining the fair value of other financial instruments, we apply FASB ASC 820, " Fair Value Measurement and Disclosures ," or ASC 820. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Fair value hierarchy under ASC 820 distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (Levels 1 and 2) and the reporting entity’s own assumptions about market participant assumptions (Level 3). Fair value estimates may differ from the amounts that may ultimately be realized upon sale or disposition of the assets and liabilities. Fair Value Measurements on a Recurring Basis During the fiscal year ended April 30, 2018 , we entered into an interest rate swap to manage our interest rate risk. The fair value of our interest rate swap is determined using the market standard methodology of netting discounted expected variable cash payments and receipts. The variable cash payments and receipts are based on an expectation of future interest rates (a forward curve) derived from observable market interest rate curves. We also consider both our own nonperformance risk and the counterparty's nonperformance risk in the fair value measurement. The fair value of the derivative by its level in the fair value hierarchy is as follows: (in thousands) Balance Sheet Location Total Level 1 Level 2 Level 3 July 31, 2018 Derivative instrument - interest rate swap Other Assets $ 1,987 — $ 1,987 — April 30, 2018 Derivative instrument - interest rate swap Other Assets $ 1,779 — $ 1,779 — Fair Value Measurements on a Nonrecurring Basis There were no non-financial assets or liabilities measured at fair value on a nonrecurring basis at July 31, 2018 . Non-financial assets measured at fair value on a nonrecurring basis at April 30, 2018 , consisted of real estate investments that were written-down to estimated fair value during fiscal year 2018 . See Note 2 for additional information on impairment losses recognized during fiscal year 2018 . The aggregate fair value of these assets by their levels in the fair value hierarchy is as follows: (in thousands) Total Level 1 Level 2 Level 3 April 30, 2018 Real estate investments $ 52,145 — — $ 52,145 As of April 30, 2018 , we estimated the fair value of our real estate investments using appraisals, a market offer to purchase, market comparisons, and other market data. Financial Assets and Liabilities Not Measured at Fair Value The fair value of fixed rate loans is estimated based on the discounted cash flows of the loans using relevant treasury interest rates plus credit spreads (Level 2). For mortgages payable, the fair value of fixed rate loans is estimated based on the discounted cash flows of the loans using market research and management estimates of comparable interest rates (Level 3). The estimated fair values of our financial instruments as of July 31, 2018 , and April 30, 2018 , respectively, are as follows: (in thousands) July 31, 2018 April 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value FINANCIAL ASSETS Cash and cash equivalents $ 16,261 $ 16,261 $ 11,891 $ 11,891 FINANCIAL LIABILITIES Other debt, including other debt related to assets held for sale — — $ — $ — Revolving line of credit $ 130,000 $ 130,000 $ 124,000 $ 124,000 Term loan (1) $ 70,000 $ 70,000 $ 70,000 $ 70,000 Mortgages payable $ 466,555 $ 465,445 $ 509,919 $ 510,803 (1) Excluding the effect of the interest rate swap agreement. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 3 Months Ended |
Jul. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests on our Condensed Consolidated Balance Sheets represent the noncontrolling interest in joint ventures in which our unaffiliated partner, at its election, could require us to buy its interest at a purchase price to be determined by an appraisal conducted in accordance with the terms of the agreement, or at a negotiated price. Below is a table reflecting the activity of the redeemable noncontrolling interests. (in thousands) Balance at April 30, 2018 $ 6,708 Net income (478 ) Balance at July 31, 2018 $ 6,230 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Jul. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-based awards are provided to officers, non-officer employees, and trustees under our 2015 Incentive Plan approved by shareholders on September 15, 2015, which allows for awards in the form of cash, unrestricted and restricted common shares, and RSUs up to an aggregate of 4,250,000 shares over the ten -year period in which the plan will be in effect. Under our 2015 Incentive Plan, officers and non-officer employees may earn share awards under a revised long-term incentive plan, which is a forward-looking program that measures long-term performance over the stated performance period. These awards are payable to the extent deemed earned in shares. The terms of the long-term incentive awards granted under the revised program may vary from year to year. Fiscal Year 2019 LTIP Awards Awards granted to trustees on July 20, 2018, consist of 64,972 time-based RSU awards. All of these awards are classified as equity awards. The time-based RSUs vest on July 20, 2019. Awards granted to management on July 20, 2018, consist of time-based RSU awards for 74,920 shares and performance RSU awards based on total shareholder return (“TSR”), for 149,846 shares. All of these awards are classified as equity awards. The time-based RSU awards vest as to one-third of the shares on each of July 20, 2019, April 30, 2020, and April 30, 2021. The TSR performance RSU awards are earned based on our TSR as compared to the MSCI U.S. REIT Index over a forward-looking three -year period. The maximum number of RSUs eligible to be earned under this performance based award is 299,692 RSUs, which is 200% of the RSUs granted. Earned awards (if any) will fully vest as of the last day of the measurement period. These awards have market conditions in addition to service conditions that must be met for the awards to vest. We recognize compensation expense ratably based on the grant date fair value, as determined using the Monte Carlo valuation model, regardless whether the market conditions are achieved and the awards ultimately vest. Therefore, previously recorded compensation expense is not adjusted in the event that the market conditions are not achieved. We based the expected volatility on the historical volatility of our daily closing share price, the risk-free interest rate on the interest rates on U.S. treasury bonds with a maturity equal to the remaining performance period of the award, and the expected term on the performance period of the award. The assumptions used to value the performance RSU awards were an expected volatility of 28.6% , a risk-free interest rate of 2.66% , and an expected life of 2.78 years . The share price at the grant date, July 20, 2018, was $5.36 per share. Total Compensation Expense Share-based compensation expense recognized in the consolidated financial statements for all outstanding share-based awards was $265,000 and $376,000 for the three months ended July 31, 2018 and 2017 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jul. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Transactions with BMO Capital Markets We have an historical and ongoing relationship with BMO Capital Markets (“BMO”). On July 17, 2017, we engaged BMO to provide financial advisory services in connection with the proposed disposition of our healthcare property portfolio. A family member of Mark O. Decker, Jr., our President and Chief Executive Officer, is an employee of BMO and could have an indirect material interest in any such engagement and related transaction(s). The Board pre-approved the engagement of BMO. During the quarter ended January 31, 2018, we completed the disposition of 27 healthcare properties and paid BMO a transaction fee of $ 1.8 million in connection with this engagement. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jul. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent to quarter end, we amended our primary unsecured credit facility (see Note 9 - Debt) to: • increase the overall unsecured facility from $370.0 million to $395.0 million , reallocating the commitment for the revolving line of credit to $250.0 million and the remaining $145.0 million between two term loans; • extend the maturity of the revolving line of credit to August 2022 ; • extend the existing $70.0 million unsecured term loan maturity to January 2024 ; • add a new $75.0 million , 7 -year unsecured term loan maturing in August 2025 ; and • reduce the margin pricing on the revolving line of credit and the $70.0 million term loan to achieve an overall lower interest rate on borrowings under this facility. We also entered into a swap agreement for the entire $75.0 million and full term loan of the new unsecured 7 -year loan in our ongoing effort to reduce floating interest rate exposure. We continue to maintain a $200.0 million accordion option that can be accessed by increasing lending commitments. |
BASIS OF PRESENTATION AND SIG23
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We conduct a majority of our business activities through our consolidated operating partnership, IRET Properties, A North Dakota Limited Partnership (the “Operating Partnership”), as well as through a number of other consolidated subsidiary entities. The accompanying condensed consolidated financial statements include our accounts and the accounts of all our subsidiaries in which we maintain a controlling interest, including the Operating Partnership. All intercompany balances and transactions are eliminated in consolidation. Our fiscal year ends on April 30. The condensed consolidated financial statements also reflect the Operating Partnership's ownership of certain joint venture entities in which the Operating Partnership has a general partner or controlling interest. These entities are consolidated into our operations, with noncontrolling interests reflecting the noncontrolling partners’ share of ownership, income, and expenses. |
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Our interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. The year-end balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods, have been included. The current period’s results of operations are not necessarily indicative of results which ultimately may be achieved for the year. The interim condensed consolidated financial statements and accompanying notes thereto should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018 , as filed with the SEC on June 28, 2018. |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The following table provides a brief description of recent accounting standards updates (“ASUs”). Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This ASU will eliminate the transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. This ASU is effective for annual reporting periods beginning after December 15, 2017, as a result of a deferral of the effective date arising from the issuance of ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date . Early adoption is permitted. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. The majority of our revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASC 840, Leases. Our other revenue streams, which were evaluated under this ASU, include but are not limited to other income from residents determined not to be within the scope of ASC 840 and gains and losses from real estate dispositions. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2016-02, Leases This ASU amends existing accounting standards for lease accounting, including by requiring lessees to recognize most leases on the balance sheet and making certain changes to lessor accounting. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We expect our residential leases, where we are the lessor, will continue to be accounted for as operating leases under the new standard. As a result, we do not expect significant changes in the accounting for lease revenue. For leases where we are the lessee, we will recognize a right of use asset and related lease liability on our consolidated balance sheets upon adoption. We are continuing to evaluate the impact the new standard may have on our consolidated financial statements. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight specific cash flow issues with the objective of reducing diversity in practice. The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective May 1, 2018. The standard requires we present combined inflows and outflows of cash, cash equivalents, and restricted cash in the consolidated statement of cash flows. See additional disclosures regarding the required change below. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets This ASU clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01. This ASU allows for either a retrospective or modified retrospective approach. This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2018-10, Codification Improvements to Topic 842, Leases This ASU was issued to increase shareholders' awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. ASU 2018-11, Leases: Targeted Improvements This ASU allows lessors to account for lease and non-lease components, by class of underlying assets, as a single lease component is certain criteria are met. The new standard also indicates that companies are permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the modified retrospective approach and provides other practical expedients. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. |
RECLASSIFICATIONS | RECLASSIFICATIONS Certain previously reported amounts have been reclassified to conform to the current financial statement presentation. These reclassifications had no impact on net income as reported in the condensed consolidated statement of operations, total assets, liabilities, or equity as reported in the condensed consolidated balance sheets and total shareholders' equity. We report in discontinued operations the results of operations and the related gains or losses of properties that have either been disposed or classified as held for sale and for which the disposition represents a strategic shift that has or will have a major effect on our operations and financial results. |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH Effective May 1, 2018, we adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments which affects the presentation and disclosure of the statements of cash flows. Previously our consolidated statements of cash flows presented transfers between restricted cash and unrestricted cash as operating, financing, and investing cash activities based upon the required or intended purpose for the restricted cash. |
REVENUES | REVENUES We adopted ASU 2014-09, Revenue from Contracts with Customers, as of May 1, 2018. We elected to apply the new standard to contracts that are not complete as of May 1, 2018. We also elected to omit disclosing the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Under the new standard, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration the company expects to be entitled for those goods and services. We primarily lease multifamily apartments under operating leases generally with terms of one year or less. Rental revenues are recognized in accordance with ASC 840, Leases, using a method that represents a straight-line basis over the term of the lease. Rental income represents approximately 94.7% of our total revenues and includes gross market rent less adjustments for concessions, vacancy loss, and bad debt. Other property revenues represent the remaining 5.3% of our total revenue and are primarily driven by utility reimbursement from our residents, which is typically recognized at a point in time, and other fee revenue, which is primarily recognized at a point in time. Revenue streams that are included in ASU 2014-09 include: • O ther property revenues: We recognize revenue for new rental related income not included as a component of a lease, such as utility reimbursement and application fees, as earned, and have concluded that this is appropriate under the new standard. • Gains or losses on sales of real estate: Subsequent to the adoption of the new standard, a gain or loss is recognized when the criteria for derecognition of an asset are met, including when (1) a contract exists and (2) the buyer obtained control of the nonfinancial asset that was sold. As a result, we may recognize a gain on real estate disposition transactions that previously did not qualify as a sale or for full profit recognition under the previous accounting standard. We concluded that the adoption of the new standard required a cumulative adjustment of $627,000 to the opening balance of retained earnings as of May 1, 2018 due to the sale of a group of properties in the prior fiscal year. The sale of properties was previously accounted for using the installment method. Under the installment method, we recorded a mortgage receivable net of the deferred gain on sale, which was to be recognized as payments were received. The gain on sale under the new revenue standard is recognized when control of the assets is transferred to the buyer. As a result of our adoption of the new standard, we recorded a cumulative adjustment to retained earnings and increased the mortgage receivable for $627,000 to recognize the previously deferred gain on sale. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS We periodically evaluate our long-lived assets, including investments in real estate, for impairment indicators. The impairment evaluation is performed on assets by property such that assets for a property form an asset group. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions, expected holding period of each asset group, and legal and environmental concerns. If indicators exist, we compare the expected future undiscounted cash flows for the long-lived asset group against the carrying amount of that asset group. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss is recorded for the difference between the estimated fair value and the carrying amount of the asset group. If our anticipated holding period for properties, the estimated fair value of properties, or other factors change based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates, and capital requirements that could differ materially from actual results. Reducing planned property holding periods may increase the likelihood of recording impairment losses. |
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS | CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS We review the estimated useful lives of our real estate assets on an ongoing basis. Prior to our strategic shift to become a multifamily-focused REIT, which began in fiscal year 2016, we operated in five segments (office, retail, industrial, healthcare and multifamily). Accordingly, our estimated useful lives represented a blend of these segments. During fiscal years 2016, 2017, and 2018, we disposed of the bulk of our office, retail, industrial, and healthcare portfolios. In the first quarter of fiscal year 2018, we determined it was appropriate to review and adjust our estimated useful lives to be specific to our remaining asset portfolio. Effective May 1, 2017, we changed the estimated useful lives of our real estate assets to better reflect the estimated periods during which they will be of economic benefit. Generally, the estimated lives of buildings and improvements that previously were 20 - 40 years have been decreased to 10 - 37 years, while those that were previously nine years were changed to 5 - 10 years. |
VARIABLE INTEREST ENTITY | VARIABLE INTEREST ENTITY We have determined that our Operating Partnership is a variable interest entity (“VIE”), as the limited partners lack substantive kick-out rights and substantive participating rights. Certain of our less-than-wholly-owned real estate entities are also VIEs. We are the primary beneficiary of the VIEs, and the VIEs are required to be consolidated on our balance sheet because we have a controlling financial interest in the VIEs and have both the power to direct the activities of the VIEs that most significantly impact the VIEs' economic performance as well as the obligation to absorb losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Because our Operating Partnership is a VIE, all of our assets and liabilities are held through a VIE. |
BASIS OF PRESENTATION AND SIG24
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Revisions on the Financial Statements | The effect of these revisions on our condensed consolidated balance sheet is as follows: (in thousands) As previously reported at April 30, 2018 Adjustment As revised at April 30, 2018 Common shares of beneficial interest $ 907,843 $ (7,746 ) $ 900,097 Noncontrolling interests - consolidated real estate entities 1,078 7,810 8,888 Redeemable noncontrolling interests - consolidated real estate entities 6,708 (64 ) 6,644 The effect of these revisions on our condensed consolidated statements of equity is as follows: (in thousands) As previously reported at April 30, 2018 Adjustment As revised at April 30, 2018 Common shares of beneficial interest $ 907,843 $ (7,746 ) $ 900,097 Nonredeemable noncontrolling interests 74,090 7,810 81,900 (in thousands) As previously reported at April 30, 2017 Adjustment As revised at April 30, 2017 Common shares of beneficial interest $ 916,121 $ (7,216 ) $ 908,905 Nonredeemable noncontrolling interests 75,157 7,280 82,437 (in thousands) As previously reported at July 31, 2017 Adjustment As revised at July 31, 2017 Common shares of beneficial interest $ 912,625 $ (7,216 ) $ 905,409 Nonredeemable noncontrolling interests 66,493 7,280 73,773 |
Schedule of New Accounting Pronouncements | We have revised our condensed consolidated statements of cash flows for the three months ended July 31, 2017 to conform to this presentation, and the effect of the revisions to net cash flows from operating and investing activities as previously reported for the three months ended July 31, 2017 are summarized in the following table: (in thousands) As previously reported Impact of ASU As adjusted and currently reported July 31, 2017 2016-15 July 31, 2017 Net cash provided by operating activities $ 15,828 $ (81 ) $ 15,747 Net cash provided by investing activities (44,544 ) (24,054 ) (68,598 ) Net cash provided by financing activities 23,698 (133 ) 23,565 Net increase (decrease) in cash, cash equivalents (5,018 ) 5,018 — Net increase (decrease) in cash, cash equivalents, and restricted cash — (29,286 ) (29,286 ) Cash and cash equivalents at beginning of period 28,819 (28,819 ) — Cash, cash equivalents, and restricted cash at beginning of period — 56,800 56,800 Cash and cash equivalents at end of period $ 23,801 Cash, cash equivalents, and restricted cash at end of period $ 3,713 $ 27,514 The following table provides a brief description of recent accounting standards updates (“ASUs”). Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers This ASU will eliminate the transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. This ASU is effective for annual reporting periods beginning after December 15, 2017, as a result of a deferral of the effective date arising from the issuance of ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date . Early adoption is permitted. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. The majority of our revenue is derived from rental income, which is scoped out from this standard and will be accounted for under ASC 840, Leases. Our other revenue streams, which were evaluated under this ASU, include but are not limited to other income from residents determined not to be within the scope of ASC 840 and gains and losses from real estate dispositions. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2016-02, Leases This ASU amends existing accounting standards for lease accounting, including by requiring lessees to recognize most leases on the balance sheet and making certain changes to lessor accounting. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We expect our residential leases, where we are the lessor, will continue to be accounted for as operating leases under the new standard. As a result, we do not expect significant changes in the accounting for lease revenue. For leases where we are the lessee, we will recognize a right of use asset and related lease liability on our consolidated balance sheets upon adoption. We are continuing to evaluate the impact the new standard may have on our consolidated financial statements. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight specific cash flow issues with the objective of reducing diversity in practice. The cash flow issues include debt prepayment or debt extinguishment costs and proceeds from the settlement of insurance claims. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted the new standard effective May 1, 2018. The standard requires we present combined inflows and outflows of cash, cash equivalents, and restricted cash in the consolidated statement of cash flows. See additional disclosures regarding the required change below. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets This ASU clarifies the definition of an in-substance nonfinancial asset and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business pursuant to ASU 2017-01. This ASU allows for either a retrospective or modified retrospective approach. This ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the new standard effective May 1, 2018 using the modified retrospective approach. Refer to the Revenues section below for information regarding the impact of adopting the standard on our condensed consolidated financial statements. ASU 2018-10, Codification Improvements to Topic 842, Leases This ASU was issued to increase shareholders' awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. ASU 2018-11, Leases: Targeted Improvements This ASU allows lessors to account for lease and non-lease components, by class of underlying assets, as a single lease component is certain criteria are met. The new standard also indicates that companies are permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the modified retrospective approach and provides other practical expedients. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the new standard may have on our consolidated financial statements. |
Schedule of Cash, Cash Equivalents, and Restricted Cash | We have revised our condensed consolidated statements of cash flows for the three months ended July 31, 2017 to conform to this presentation, and the effect of the revisions to net cash flows from operating and investing activities as previously reported for the three months ended July 31, 2017 are summarized in the following table: (in thousands) As previously reported Impact of ASU As adjusted and currently reported July 31, 2017 2016-15 July 31, 2017 Net cash provided by operating activities $ 15,828 $ (81 ) $ 15,747 Net cash provided by investing activities (44,544 ) (24,054 ) (68,598 ) Net cash provided by financing activities 23,698 (133 ) 23,565 Net increase (decrease) in cash, cash equivalents (5,018 ) 5,018 — Net increase (decrease) in cash, cash equivalents, and restricted cash — (29,286 ) (29,286 ) Cash and cash equivalents at beginning of period 28,819 (28,819 ) — Cash, cash equivalents, and restricted cash at beginning of period — 56,800 56,800 Cash and cash equivalents at end of period $ 23,801 Cash, cash equivalents, and restricted cash at end of period $ 3,713 $ 27,514 (in thousands) Balance sheet description July 31, 2018 July 31, 2017 Cash and cash equivalents 16,261 23,801 Restricted cash 4,103 3,713 Total cash, cash equivalents and restricted cash 20,364 27,514 |
Schedule of Disaggregation of Revenue | The following table presents the disaggregation of revenue streams of our rental income for the three months ended July 31, 2018: (in thousands) Three Months Ended July 31, 2018 Revenue Stream Applicable Standard Amount of Revenue Percent of Revenue Rental revenue Leases 43,514 94.7 % Other property revenue Revenue Recognition 2,432 5.3 % 45,946 100.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator Used To Calculate Basic and Diluted Earnings per Share | The following table presents a reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share reported in the condensed consolidated financial statements for the three months ended July 31, 2018 and 2017 : (in thousands, except per share data) Three Months Ended 2018 2017 NUMERATOR Income (loss) from continuing operations – controlling interests $ 2,405 $ (13,651 ) Income from discontinued operations – controlling interests 511 2,387 Net income (loss) attributable to controlling interests 2,916 (11,264 ) Dividends to preferred shareholders (1,705 ) (2,286 ) Redemption of preferred shares — — Numerator for basic earnings (loss) per share – net income available to common shareholders 1,211 (13,550 ) Noncontrolling interests – Operating Partnership 135 (1,644 ) Numerator for diluted earnings (loss) per share $ 1,346 $ (15,194 ) DENOMINATOR Denominator for basic earnings per share weighted average shares 119,245 120,421 Effect of redeemable operating partnership units 14,026 15,128 Denominator for diluted earnings per share 133,271 135,549 Earnings (loss) per common share from continuing operations – basic and diluted $ 0.01 $ (0.13 ) Earnings per common share from discontinued operations – basic and diluted — 0.02 NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED $ 0.01 $ (0.11 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Net Operating Income for Reportable Segments | The revenues and NOI for the multifamily reportable segment are summarized as follows for the three -month periods ended July 31, 2018 and 2017 , respectively, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements. (in thousands) Three Months Ended July 31, 2018 Multifamily All Other Total Real estate revenue $ 43,089 $ 2,857 $ 45,946 Real estate expenses 18,486 1,043 19,529 Net operating income $ 24,603 $ 1,814 $ 26,417 Property management expenses (1,367 ) Casualty loss (225 ) Depreciation and amortization (18,612 ) General and administrative expenses (3,870 ) Interest expense (8,385 ) Loss on debt extinguishment (552 ) Interest and other income 516 Loss before gain on sale of real estate and other investments and income from discontinued operations (6,078 ) Gain on sale of real estate and other investments 9,224 Income (loss) from continuing operations 3,146 Income (loss) from discontinued operations 570 Net income (loss) $ 3,716 (in thousands) Three Months Ended July 31, 2017 Multifamily All Other Total Real estate revenue $ 35,999 $ 4,979 $ 40,978 Real estate expenses 15,734 1,793 17,527 Net operating income $ 20,265 $ 3,186 $ 23,451 Property management expenses (1,356 ) Casualty loss (485 ) Depreciation and amortization (25,338 ) Loss on impairment (256 ) General and administrative expenses (4,002 ) Interest expense (8,131 ) Loss on debt extinguishment (199 ) Interest and other income 228 Loss before gain on sale of real estate and other investments and income from discontinued operations (16,088 ) Gain on sale of real estate and other investments 124 Income (loss) from continuing operations (15,964 ) Income (loss) from discontinued operations 2,685 Net income (loss) $ (13,279 ) |
Segment Assets and Accumulated Depreciation | Segment assets are summarized as follows as of July 31, 2018 , and April 30, 2018 , respectively, along with reconciliations to the condensed consolidated financial statements: (in thousands) As of July 31, 2018 Multifamily All Other Total Segment assets Property owned $ 1,576,345 $ 59,888 $ 1,636,233 Less accumulated depreciation (309,862 ) (16,910 ) (326,772 ) Total property owned $ 1,266,483 $ 42,978 $ 1,309,461 Cash and cash equivalents 16,261 Restricted cash 4,103 Other assets 27,885 Unimproved land 7,926 Mortgage loans receivable 10,530 Total Assets $ 1,376,166 (in thousands) As of April 30, 2018 Multifamily All Other Total Segment assets Property owned $ 1,606,421 $ 63,343 $ 1,669,764 Less accumulated depreciation (294,477 ) (16,847 ) (311,324 ) Total property owned $ 1,311,944 $ 46,496 $ 1,358,440 Cash and cash equivalents 11,891 Restricted cash 4,225 Other assets 30,297 Unimproved land 11,476 Mortgage loans receivable 10,329 Total Assets $ 1,426,658 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Effect on Net Income and Gains or Losses From Sale Of Properties Classified as Discontinued Operations | The following information shows the effect on net income and the gains or losses from the sales of properties classified as discontinued operations for the three months ended July 31, 2018 and 2017 , respectively: (in thousands) Three Months Ended July 31, 2018 2017 REVENUE $ — $ 11,955 EXPENSES Property operating expenses, excluding real estate taxes — 2,257 Real estate taxes — 1,961 Property management — 72 Depreciation and amortization — 3,589 Impairment of real estate investments — — TOTAL EXPENSES $ — $ 7,879 Operating income — 4,076 Interest expense — (1,985 ) Loss on extinguishment of debt — — Interest income — 544 Other income — 50 Income from discontinued operations before gain on sale — 2,685 Gain on sale of discontinued operations 570 — INCOME (LOSS) FROM DISCONTINUED OPERATIONS $ 570 $ 2,685 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | Our acquisitions during the three months ended July 31, 2017 are detailed below. Three Months Ended July 31, 2017 Date Acquired (in thousands) Total Acquisition Cost Investment Allocation Acquisitions Land Building Intangible Assets Multifamily 191 unit - Oxbo - St. Paul, MN (1) May 26, 2017 $ 61,500 $ 5,809 $ 54,910 $ 781 Total Property Acquisitions $ 61,500 $ 5,809 $ 54,910 $ 781 (1) Property includes 11,477 square feet of retail space. |
Schedule of Dispositions | The following table details our dispositions for the three months ended July 31, 2018 and 2017 : Three Months Ended July 31, 2018 (in thousands) Dispositions Date Sales Price Book Value and Sale Cost Gain/(Loss) Multifamily 44 unit - Dakota Commons - Williston, ND July 26, 2018 $ 4,420 $ 3,878 $ 542 145 unit - Williston Garden - Williston, ND (1) July 26, 2018 12,310 11,313 997 288 unit - Renaissance Heights - Williston, ND (2) July 26, 2018 24,770 17,856 6,914 41,500 33,047 8,453 Other 7,849 sq ft Minot Southgate Retail - Minot, ND July 12, 2018 $ 1,925 $ 2,056 $ (131 ) 9,052 sq ft Fresenius - Duluth, MN July 27, 2018 1,900 1,078 $ 822 3,825 3,134 691 Unimproved Land Grand Forks - Grand Forks, ND July 16, 2018 $ 3,000 $ 2,986 $ 14 Renaissance Heights - Williston, ND (3) July 26, 2018 750 684 66 3,750 3,670 80 Total Property Dispositions $ 49,075 $ 39,851 $ 9,224 (1) This apartment community was owned by a joint venture entity in which we had an interest of approximately 74.11% . The joint venture is consolidated in our financial statements. (2) This apartment community was owned by a joint venture entity in which we had an interest of approximately 87.14% . The joint venture is consolidated in our financial statements. (3) This parcel of land was owned by a joint venture entity in which we had an interest of approximately 70.00% . The joint venture is consolidated in our financial statements. Three Months Ended July 31, 2017 (in thousands) Dispositions Date Disposed Sale Price Book Value and Sale Cost Gain/(Loss) Other 4,998 sq ft Minot Southgate Wells Fargo Bank - Minot, ND May 15, 2017 $ 3,440 $ 3,332 $ 108 Total Property Dispositions $ 3,440 $ 3,332 $ 108 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Aggregate Amount of Required Future Principal Payments on Mortgages Payable | The aggregate amount of required future principal payments on mortgages payable as of July 31, 2018 , is as follows: (in thousands) Year Ended April 30, Mortgage Loans 2019 $ 7,442 2020 86,400 2021 92,179 2022 70,506 2023 27,494 Thereafter 182,534 Total payments $ 466,555 |
Schedule of Debt | The following table summarizes our indebtedness at July 31, 2018 : (in thousands) July 31, 2018 April 30, 2018 Weighted Average Maturity in Years Unsecured line of credit $ 130,000 $ 124,000 3.0 Term loan 70,000 70,000 4.0 Unsecured debt 200,000 194,000 Mortgages payable - fixed 466,555 489,401 5.4 Mortgages payable - variable — 22,739 Total debt $ 666,555 $ 706,140 4.9 Weighted average interest rate on unsecured line of credit 3.83 % 3.35 % Weighted average interest rate on term loan (rate with swap) 3.86 % 3.86 % Weighted average interest rate on mortgages payable 4.65 % 4.69 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured on Recurring Basis | The fair value of the derivative by its level in the fair value hierarchy is as follows: (in thousands) Balance Sheet Location Total Level 1 Level 2 Level 3 July 31, 2018 Derivative instrument - interest rate swap Other Assets $ 1,987 — $ 1,987 — April 30, 2018 Derivative instrument - interest rate swap Other Assets $ 1,779 — $ 1,779 — |
Fair Value Measurements on a Nonrecurring Basis | The aggregate fair value of these assets by their levels in the fair value hierarchy is as follows: (in thousands) Total Level 1 Level 2 Level 3 April 30, 2018 Real estate investments $ 52,145 — — $ 52,145 |
Estimated Fair Values of Financial Instruments | The estimated fair values of our financial instruments as of July 31, 2018 , and April 30, 2018 , respectively, are as follows: (in thousands) July 31, 2018 April 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value FINANCIAL ASSETS Cash and cash equivalents $ 16,261 $ 16,261 $ 11,891 $ 11,891 FINANCIAL LIABILITIES Other debt, including other debt related to assets held for sale — — $ — $ — Revolving line of credit $ 130,000 $ 130,000 $ 124,000 $ 124,000 Term loan (1) $ 70,000 $ 70,000 $ 70,000 $ 70,000 Mortgages payable $ 466,555 $ 465,445 $ 509,919 $ 510,803 (1) Excluding the effect of the interest rate swap agreement. |
REDEEMABLE NONCONTROLLING INT31
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interest | Below is a table reflecting the activity of the redeemable noncontrolling interests. (in thousands) Balance at April 30, 2018 $ 6,708 Net income (478 ) Balance at July 31, 2018 $ 6,230 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Jul. 31, 2018propertyunit |
Real Estate Properties [Line Items] | |
Number of real estate properties | 94 |
Apartment Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 87 |
Number of apartment units | unit | 13,703 |
BASIS OF PRESENTATION AND SIG33
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Revisions on the Financial Statements (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2017 | Apr. 30, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common shares of beneficial interest | $ 899,708 | $ 900,097 | ||
Noncontrolling interests - consolidated real estate entities | 7,376 | 8,888 | ||
Redeemable noncontrolling interests - consolidated real estate entities | 6,230 | 6,644 | ||
Equity | 677,727 | 687,563 | $ 602,004 | $ 636,158 |
Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common shares of beneficial interest | 907,843 | |||
Noncontrolling interests - consolidated real estate entities | 1,078 | |||
Redeemable noncontrolling interests - consolidated real estate entities | 6,708 | |||
Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common shares of beneficial interest | (7,746) | |||
Noncontrolling interests - consolidated real estate entities | 7,810 | |||
Redeemable noncontrolling interests - consolidated real estate entities | (64) | |||
Common Stock [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | 899,708 | 900,097 | 905,409 | 908,905 |
Common Stock [Member] | Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | 907,843 | 912,625 | 916,121 | |
Common Stock [Member] | Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | (7,746) | (7,216) | (7,216) | |
Noncontrolling Interest [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | $ 78,766 | 81,900 | 73,773 | 82,437 |
Noncontrolling Interest [Member] | Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | 74,090 | 66,493 | 75,157 | |
Noncontrolling Interest [Member] | Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Equity | $ 7,810 | $ 7,280 | $ 7,280 |
BASIS OF PRESENTATION AND SIG34
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Net cash provided by operating activities | $ 14,724 | $ 15,747 | ||
Net cash provided by investing activities | 43,918 | (68,598) | ||
Net cash provided by financing activities | (54,394) | 23,565 | ||
Net increase (decrease) in cash, cash equivalents | 0 | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 4,248 | (29,286) | ||
Cash and cash equivalents | 16,261 | $ 11,891 | $ 0 | |
Restricted cash | 4,103 | 3,713 | 4,225 | |
Total cash, cash equivalents and restricted cash | 20,364 | 27,514 | $ 16,116 | 56,800 |
Escrow Deposits [Member] | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | $ 4,100 | |||
Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Net cash provided by operating activities | 15,828 | |||
Net cash provided by investing activities | (44,544) | |||
Net cash provided by financing activities | 23,698 | |||
Net increase (decrease) in cash, cash equivalents | (5,018) | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 0 | |||
Cash and cash equivalents | 23,801 | 28,819 | ||
Total cash, cash equivalents and restricted cash | 0 | |||
Accounting Standards Update 2016-15 [Member] | Adjustment [Member] | ||||
Business Acquisition [Line Items] | ||||
Net cash provided by operating activities | (81) | |||
Net cash provided by investing activities | (24,054) | |||
Net cash provided by financing activities | (133) | |||
Net increase (decrease) in cash, cash equivalents | 5,018 | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (29,286) | |||
Cash and cash equivalents | (28,819) | |||
Total cash, cash equivalents and restricted cash | $ 3,713 | $ 56,800 |
BASIS OF PRESENTATION AND SIG35
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | May 01, 2018 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Accumulated distributions in excess of net income | $ (402,190) | $ (395,669) | ||
Rental revenue | 43,514 | |||
Other property revenue | 2,432 | |||
Revenues | $ 45,946 | $ 40,978 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Accumulated distributions in excess of net income | $ 627 | |||
Product Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of Revenue | 100.00% | |||
Product Concentration Risk [Member] | Rental Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of Revenue | 94.70% | |||
Product Concentration Risk [Member] | Other Property Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of Revenue | 5.30% |
BASIS OF PRESENTATION AND SIG36
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Real Estate Properties (Details) | Oct. 31, 2017segment | Apr. 30, 2017 | Aug. 31, 2017property | Jul. 31, 2018USD ($)property$ / shares | Jul. 31, 2017USD ($)$ / shares | Apr. 30, 2016segment | Apr. 30, 2018USD ($) |
Real Estate Properties [Line Items] | |||||||
Impairment of real estate investments | $ 0 | $ 256,000 | |||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Number of reportable segments | segment | 2 | 5 | |||||
Net income (loss) available to common shareholders | $ 1,211,000 | $ (13,550,000) | |||||
Net income (loss) per common share - basic & diluted (in dollars per share) | $ / shares | $ 0.01 | $ (0.11) | |||||
MORTGAGE RECEIVABLE AND NOTES RECEIVABLE | |||||||
Mortgage loans receivable | $ 10,530,000 | $ 10,329,000 | |||||
Interest income | 481,000 | $ 21,000 | |||||
Principal proceeds on mortgage loans receivable | $ 425,000 | 0 | |||||
Service Life [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Depreciation expense | 14,400,000 | ||||||
Net income (loss) available to common shareholders | $ (14,400,000) | ||||||
Net income (loss) per common share - basic & diluted (in dollars per share) | $ / shares | $ (0.11) | ||||||
Service Life [Member] | Minimum [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Estimated useful lives | 20 years | 10 years | |||||
Service Life [Member] | Maximum [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Estimated useful lives | 40 years | 37 years | |||||
Property with Previous Nine Year Life [Member] | Service Life [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Estimated useful lives | 9 years | ||||||
Property with Previous Nine Year Life [Member] | Service Life [Member] | Minimum [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Estimated useful lives | 5 years | ||||||
Property with Previous Nine Year Life [Member] | Service Life [Member] | Maximum [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Estimated useful lives | 10 years | ||||||
Fully Depreciated Property [Member] | Service Life [Member] | |||||||
CHANGE IN DEPRECIABLE LIVES OF REAL ESTATE ASSETS [Abstract] | |||||||
Depreciation expense | $ 9,000,000 | ||||||
Net income (loss) per common share - basic & diluted (in dollars per share) | $ / shares | $ (0.07) | ||||||
Multi-Family Residential [Member] | |||||||
MORTGAGE RECEIVABLE AND NOTES RECEIVABLE | |||||||
Interest rate | 6.00% | ||||||
Loan commitment | $ 16,200,000 | ||||||
Assets Held for Sale [Member] | Unimproved Land [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Impairment of real estate investments | 256,000 | ||||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||
MORTGAGE RECEIVABLE AND NOTES RECEIVABLE | |||||||
Interest income | $ 0 | $ 544,000 | |||||
Discontinued Operations, Disposed of by Sale [Member] | Multi-Family Residential [Member] | |||||||
MORTGAGE RECEIVABLE AND NOTES RECEIVABLE | |||||||
Number of real estate properties sold | property | 13 | 13 | |||||
Interest rate | 5.50% | ||||||
Interest income | $ 202,000 | ||||||
Number of real estate properties released | property | 1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2017USD ($)$ / sharesshares | |
Earnings Per Share [Abstract] | ||
Ratio of units exchanged for shares | 1 | |
NUMERATOR | ||
Income (loss) from continuing operations – controlling interests | $ 2,405 | $ (13,651) |
Income from discontinued operations – controlling interests | 511 | 2,387 |
Net income (loss) attributable to controlling interests | 2,916 | (11,264) |
Dividends to preferred shareholders | (1,705) | (2,286) |
Redemption of preferred shares | 0 | 0 |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | 1,211 | (13,550) |
Noncontrolling interests – Operating Partnership | 135 | (1,644) |
Numerator for diluted earnings per share | $ 1,346 | $ (15,194) |
DENOMINATOR | ||
Denominator for basic earnings per share weighted average shares (in shares) | shares | 119,245 | 120,421 |
Effect of redeemable operating partnership units (in shares) | shares | 14,026 | 15,128 |
Denominator for diluted earnings per share (in shares) | shares | 133,271 | 135,549 |
Earnings (loss) per common share from continuing operations – basic and diluted (in dollars per share) | $ / shares | $ 0.01 | $ (0.13) |
Earnings per common share from discontinued operations – basic and diluted (in dollars per share) | $ / shares | 0 | 0.02 |
NET EARNINGS (LOSS) PER COMMON SHARE – BASIC & DILUTED (in dollars per share) | $ / shares | $ 0.01 | $ (0.11) |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded (in shares) | shares | 248 | 115 |
EQUITY - Equity Awards (Details
EQUITY - Equity Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2018 | |
Equity | |||
Noncontrolling interests - Operating Partnership (in shares) | 13,895,000 | 14,099,000 | |
Common stock outstanding (in shares) | 119,507,000 | 119,526,000 | |
Units converted to common stock (in shares) | 90,000 | 960,000 | |
Aggregate cost of stock conversion | $ 480 | $ 5,700 | |
Average price of shares issued (in dollars per share) | $ 5.31 | $ 5.97 | |
2015 Incentive Plan [Member] | |||
Equity | |||
Equity awards issued (in shares) | 43,000 | 75,000 | |
Total grant-date value shares issued | $ 264 | $ 445 | |
Exercise of Exchange Rights [Member] | |||
Equity | |||
Units converted to common stock (in shares) | 114,000 | 0 | |
Aggregate cost of stock conversion | $ 291 |
EQUITY - Share Repurchase Progr
EQUITY - Share Repurchase Program (Details) - USD ($) | Dec. 05, 2017 | Dec. 07, 2016 | Jul. 31, 2018 | Jul. 31, 2017 |
Share Repurchase Program | ||||
Repurchase period | 1 year | |||
Remaining authorized repurchase amount | $ 34,900,000 | |||
Share Repurchase Program [Member] | ||||
Share Repurchase Program | ||||
Aggregate gross sales price of common share of beneficial interest allowed to be repurchased | $ 50,000,000 | |||
Repurchase period | 1 year | |||
Shares repurchased and retired (in shares) | 118,000 | 682,000 | ||
Aggregate cost of common shares repurchased and retired | $ 615,000 | $ 3,900,000 | ||
Average cost per share (in dollars per share) | $ 5.20 | $ 5.77 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | Oct. 31, 2017segment | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2016segment | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | 5 | ||||
Segment revenues and net operating income [Abstract] | ||||||
Real estate revenue | $ 45,946 | $ 40,978 | ||||
Net operating income (loss) | 26,417 | 23,451 | ||||
Real Estate Insurance | (225) | (485) | ||||
Depreciation/amortization | (18,612) | (25,338) | ||||
Impairment of real estate investments | (256) | |||||
General and administrative expenses | (3,870) | (4,002) | ||||
Interest expense | (8,385) | (8,131) | ||||
Loss on extinguishment of debt | (552) | (199) | ||||
Interest and other income | 516 | 228 | ||||
Loss before gain on sale of real estate and other investments and income from discontinued operations | (6,078) | (16,088) | ||||
Gain on sale of real estate and other investments | 9,224 | 124 | ||||
Income (loss) from continuing operations | 3,146 | (15,964) | ||||
Income (loss) from discontinued operations | 570 | 2,685 | ||||
NET INCOME (LOSS) | 3,716 | (13,279) | ||||
Segment Assets [Abstract] | ||||||
Property owned | 1,636,233 | $ 1,669,764 | ||||
Less accumulated depreciation | (326,772) | (311,324) | ||||
Total property owned | 1,309,461 | 1,358,440 | ||||
Cash and cash equivalents | 16,261 | 11,891 | $ 0 | |||
Restricted cash | 4,103 | 3,713 | 4,225 | |||
Other assets | 27,885 | 30,297 | ||||
Unimproved land | 7,926 | 11,476 | ||||
Mortgage loans receivable | 10,530 | 10,329 | ||||
TOTAL ASSETS | 1,376,166 | 1,426,658 | ||||
Multi-Family Residential [Member] | Operating Segments [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Real estate revenue | 43,089 | 35,999 | ||||
Net operating income (loss) | 24,603 | 20,265 | ||||
Segment Assets [Abstract] | ||||||
Property owned | 1,576,345 | 1,606,421 | ||||
Less accumulated depreciation | (309,862) | (294,477) | ||||
Total property owned | 1,266,483 | 1,311,944 | ||||
All Other [Member] | Operating Segments [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Real estate revenue | 2,857 | 4,979 | ||||
Net operating income (loss) | 1,814 | 3,186 | ||||
Segment Assets [Abstract] | ||||||
Property owned | 59,888 | 63,343 | ||||
Less accumulated depreciation | (16,910) | (16,847) | ||||
Total property owned | 42,978 | $ 46,496 | ||||
Real Estate [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Cost of goods and services sold | (19,529) | (17,527) | ||||
Real Estate [Member] | Multi-Family Residential [Member] | Operating Segments [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Cost of goods and services sold | (18,486) | (15,734) | ||||
Real Estate [Member] | All Other [Member] | Operating Segments [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Cost of goods and services sold | (1,043) | (1,793) | ||||
Management Service [Member] | ||||||
Segment revenues and net operating income [Abstract] | ||||||
Cost of goods and services sold | $ (1,367) | $ (1,356) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Jul. 31, 2018USD ($)propertyunit |
Real Estate Properties [Line Items] | |
Number of properties | 94 |
Subject to Restrictions on Taxable Dispositions [Member] | |
Real Estate Properties [Line Items] | |
Number of properties | 25 |
Number of apartment units | unit | 4,195 |
Real estate investment amount of properties (net of accumulated depreciation) | $ | $ 548.6 |
DISCONTINUED OPERATIONS - Prope
DISCONTINUED OPERATIONS - Properties Disposed of or Held for Sale (Details) - property | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of real estate properties classified as held for sale in discontinued operations | 0 | 0 |
DISCONTINUED OPERATIONS - Effec
DISCONTINUED OPERATIONS - Effect on Net Income from Properties Classified as Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
REVENUE | $ 45,946 | $ 40,978 |
EXPENSES | ||
Property operating expenses, excluding real estate taxes | 14,459 | 12,874 |
Depreciation and amortization | 18,612 | 25,338 |
Impairment of real estate investments | 256 | |
TOTAL EXPENSES | 43,603 | 48,964 |
Interest expense | (8,385) | (8,131) |
Loss on extinguishment of debt | (552) | (199) |
Interest income | 481 | 21 |
Other income | 35 | 207 |
Gain on sale of discontinued operations | 9,794 | 124 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 570 | 2,685 |
Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
REVENUE | 0 | 11,955 |
EXPENSES | ||
Property operating expenses, excluding real estate taxes | 0 | 2,257 |
Real estate taxes | 0 | 1,961 |
Depreciation and amortization | 0 | 3,589 |
Impairment of real estate investments | 0 | 0 |
TOTAL EXPENSES | 0 | 7,879 |
Operating income | 0 | 4,076 |
Interest expense | 0 | (1,985) |
Loss on extinguishment of debt | 0 | 0 |
Interest income | 0 | 544 |
Other income | 0 | 50 |
Income from discontinued operations before gain on sale | 0 | 2,685 |
Gain on sale of discontinued operations | 570 | 0 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 570 | 2,685 |
Management Service [Member] | ||
EXPENSES | ||
Property management expense | 1,367 | 1,356 |
Management Service [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
EXPENSES | ||
Property management expense | $ 0 | $ 72 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisitions (Details) - Acquisitions [Member] | 3 Months Ended | |
Jul. 31, 2018USD ($)unit | Jul. 31, 2017USD ($)ft² | |
Acquisitions and development projects placed in service [Abstract] | ||
Acquisition costs | $ 0 | $ 61,500,000 |
Investment allocation, land | 5,809,000 | |
Investment allocation, building | 54,910,000 | |
Investment allocation, intangible assets | 781,000 | |
Multi-Family Residential [Member] | 191 unit - Oxbo - St. Paul, MN [Member] | ||
Acquisitions and development projects placed in service [Abstract] | ||
Acquisition costs | 61,500,000 | |
Number of apartment units | unit | 191 | |
Investment allocation, land | 5,809,000 | |
Investment allocation, building | 54,910,000 | |
Investment allocation, intangible assets | $ 781,000 | |
Area of real estate property | ft² | 11,477 |
ACQUISITIONS AND DISPOSITIONS45
ACQUISITIONS AND DISPOSITIONS - Property Dispositions (Details) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018USD ($)ft²propertyunit | Jul. 31, 2017USD ($)ft²property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 45,946 | $ 40,978 |
Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | 49,075 | 3,440 |
Gain/(Loss) | $ 9,224 | $ 108 |
Apartment Communities [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties sold | property | 3 | |
Commercial [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties sold | property | 2 | 1 |
Parcels of Land [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties sold | property | 2 | |
Multi-Family Residential [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 41,500 | |
Gain/(Loss) | 8,453 | |
Multi-Family Residential [Member] | Disposed of by Sale [Member] | Dakota Commons - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | 4,420 | |
Gain/(Loss) | $ 542 | |
Units | unit | 44 | |
Multi-Family Residential [Member] | Disposed of by Sale [Member] | Williston Garden - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 12,310 | |
Gain/(Loss) | $ 997 | |
Units | unit | 145 | |
Interest in joint venture | 74.11% | |
Multi-Family Residential [Member] | Disposed of by Sale [Member] | Renaissance Heights - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 24,770 | |
Gain/(Loss) | $ 6,914 | |
Units | unit | 288 | |
Interest in joint venture | 87.14% | |
Other [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 3,825 | |
Gain/(Loss) | 691 | |
Other [Member] | Disposed of by Sale [Member] | Minot Southgate Retail - Minot, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | 1,925 | |
Gain/(Loss) | $ (131) | |
Area of real estate property | ft² | 7,849 | |
Other [Member] | Disposed of by Sale [Member] | Fresenius - Duluth, MN [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 1,900 | |
Gain/(Loss) | $ 822 | |
Area of real estate property | ft² | 9,052 | |
Other [Member] | Disposed of by Sale [Member] | Minot Southgate Wells Fargo Bank - Minot ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 3,440 | |
Gain/(Loss) | $ 108 | |
Area of real estate property | ft² | 4,998 | |
Unimproved Land [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | $ 3,750 | |
Gain/(Loss) | 80 | |
Unimproved Land [Member] | Disposed of by Sale [Member] | Grand Forks - Grand Forks, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | 3,000 | |
Gain/(Loss) | 14 | |
Unimproved Land [Member] | Disposed of by Sale [Member] | Renaissance Heights - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales price | 750 | |
Gain/(Loss) | $ 66 | |
Interest in joint venture | 70.00% | |
Real Estate [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | $ 19,529 | $ 17,527 |
Real Estate [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 39,851 | 3,332 |
Real Estate [Member] | Multi-Family Residential [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 33,047 | |
Real Estate [Member] | Multi-Family Residential [Member] | Disposed of by Sale [Member] | Dakota Commons - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 3,878 | |
Real Estate [Member] | Multi-Family Residential [Member] | Disposed of by Sale [Member] | Williston Garden - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 11,313 | |
Real Estate [Member] | Multi-Family Residential [Member] | Disposed of by Sale [Member] | Renaissance Heights - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 17,856 | |
Real Estate [Member] | Other [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 3,134 | |
Real Estate [Member] | Other [Member] | Disposed of by Sale [Member] | Minot Southgate Retail - Minot, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 2,056 | |
Real Estate [Member] | Other [Member] | Disposed of by Sale [Member] | Fresenius - Duluth, MN [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 1,078 | |
Real Estate [Member] | Other [Member] | Disposed of by Sale [Member] | Minot Southgate Wells Fargo Bank - Minot ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | $ 3,332 | |
Real Estate [Member] | Unimproved Land [Member] | Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 3,670 | |
Real Estate [Member] | Unimproved Land [Member] | Disposed of by Sale [Member] | Grand Forks - Grand Forks, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | 2,986 | |
Real Estate [Member] | Unimproved Land [Member] | Disposed of by Sale [Member] | Renaissance Heights - Williston, ND [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Book Value and Sale Cost | $ 684 |
DEBT - Schedule of future payme
DEBT - Schedule of future payments (Details) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018USD ($)propertyloan | Apr. 30, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 94 | |
Property owned | $ 1,636,233 | $ 1,669,764 |
Aggregate amount of required future principal payments on mortgages payable [Abstract] | ||
Total payments | $ 464,557 | $ 509,919 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Number of loans in default | loan | 0 | |
Aggregate amount of required future principal payments on mortgages payable [Abstract] | ||
2,019 | $ 7,442 | |
2,020 | 86,400 | |
2,021 | 92,179 | |
2,022 | 70,506 | |
2,023 | 27,494 | |
Thereafter | 182,534 | |
Total payments | $ 466,555 | |
Multifamily [Member] | ||
Debt Instrument [Line Items] | ||
Number of real estate properties serving as collateral | property | 53 | |
Property owned | $ 593,700 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2018USD ($)propertyextension | Apr. 30, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Number of real estate properties, unencumbered by mortgages | property | 41 | |
Number of real estate properties, unencumbered used to provide credit support | property | 30 | |
Maximum borrowing capacity | $ 6,000,000 | |
Revolving line of credit | $ 130,000,000 | 124,000,000 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 370,000,000 | |
Revolving line of credit | 0 | $ 0 |
Line of Credit [Member] | BMO Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 300,000,000 | |
Current borrowing capacity | 300,000,000 | |
Remaining borrowing capacity | 170,000,000 | |
Revolving line of credit | $ 130,000,000 | |
Line of Credit [Member] | BMO Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Number of extensions | extension | 1 | |
Extension term | 12 months | |
Minimum [Member] | Base Rate [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 600.00% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.60% | |
Maximum [Member] | Base Rate [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1250.00% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 200,000,000 | |
Term | 1 year | |
Unsecured Debt [Member] | Term Loan Maturing 2024 [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument face amount | $ 70,000,000 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Apr. 30, 2018 | |
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 666,555 | $ 706,140 |
Weighted Average Maturity in Years | 4 years 11 months 3 days | |
Fixed Rate Mortgages Payable [Member] | ||
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 466,555 | 489,401 |
Weighted Average Maturity in Years | 5 years 4 months 24 days | |
Variable Rate Mortgages Payable [Member] | ||
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 0 | $ 22,739 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.65% | 4.69% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 200,000 | $ 194,000 |
Unsecured Debt [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 130,000 | $ 124,000 |
Weighted Average Maturity in Years | 3 years | |
Weighted average interest rate | 3.83% | 3.35% |
Unsecured Debt [Member] | Medium-term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying principal balance | $ 70,000 | $ 70,000 |
Weighted Average Maturity in Years | 4 years | |
Weighted average interest rate | 3.86% | 3.86% |
DERIVATIVE INSTRUMENT (Details)
DERIVATIVE INSTRUMENT (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2018 | |
Derivative [Line Items] | |||
Gain recognized in other comprehensive income (loss) | $ 208,000 | ||
Gain (loss) reclassification from accumulated OCI to income | 8,385,000 | $ 8,131,000 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative instrument - interest rate swap | 2,000,000 | $ 1,800,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional amount | 70,000,000 | ||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Derivative [Line Items] | |||
Gain (loss) reclassification from accumulated OCI to income | $ 29,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Apr. 30, 2018 |
FINANCIAL LIABILITIES | ||
Mortgages payable | $ 464,557 | $ 509,919 |
Carrying Amount [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 16,261 | 11,891 |
FINANCIAL LIABILITIES | ||
Other debt, including other debt related to assets held for sale | 0 | 0 |
Revolving line of credit | 130,000 | 124,000 |
Term loan | 70,000 | 70,000 |
Mortgages payable | 466,555 | 509,919 |
Fair Value [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 16,261 | 11,891 |
FINANCIAL LIABILITIES | ||
Other debt, including other debt related to assets held for sale | 0 | 0 |
Revolving line of credit | 130,000 | 124,000 |
Term loan | 70,000 | 70,000 |
Mortgages payable | 465,445 | 510,803 |
Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument - interest rate swap | 1,987 | 1,779 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument - interest rate swap | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument - interest rate swap | 1,987 | 1,779 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instrument - interest rate swap | $ 0 | 0 |
Nonrecurring [Member] | ||
Fair Value Measurements on a Nonrecurring Basis [Abstract] | ||
Real estate investments | 52,145 | |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair Value Measurements on a Nonrecurring Basis [Abstract] | ||
Real estate investments | 0 | |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value Measurements on a Nonrecurring Basis [Abstract] | ||
Real estate investments | 0 | |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value Measurements on a Nonrecurring Basis [Abstract] | ||
Real estate investments | $ 52,145 |
REDEEMABLE NONCONTROLLING INT51
REDEEMABLE NONCONTROLLING INTERESTS (Details) $ in Thousands | 3 Months Ended |
Jul. 31, 2018USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
April 30, 2018 | $ 6,644 |
Net income | (478) |
July 31, 2018 | 6,230 |
Previously Reported [Member] | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
April 30, 2018 | $ 6,708 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 20, 2018 | Jul. 31, 2018 | Jul. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Stock-based compensation expense | $ 265 | $ 376 | |
2015 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 4,250,000 | ||
Term of award | 10 years | ||
2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Relative TSR Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 149,846 | ||
2015 Incentive Plan [Member] | 2018 LTIP Awards [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Total unvested restricted share awards (in shares) | 299,692 | ||
Percentage of the RSUs awarded | 200.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Volatility rate (in hundredths) | 28.60% | ||
Risk-free interest rate (in hundredths) | 2.66% | ||
Expected life | 2 years 9 months 11 days | ||
Share price (in dollars per share) | $ 5.36 | ||
Year One [Member] | 2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares vesting percentage | 33.33% | ||
Year Two [Member] | 2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares vesting percentage | 33.33% | ||
Year Three [Member] | 2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares vesting percentage | 33.33% | ||
Trustee [Member] | 2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 64,972 | ||
Management [Member] | 2015 Incentive Plan [Member] | 2019 LTIP Awards [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 74,920 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - BMO Capital Markets [Member] $ in Millions | 3 Months Ended |
Jan. 31, 2018USD ($)property | |
Related Party Transaction [Line Items] | |
Number of real estate properties sold | property | 27 |
Expenses from transactions with related party | $ | $ 1.8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Sep. 10, 2018USD ($)loan | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) |
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 6,000,000 | ||
Line of Credit [Member] | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 370,000,000 | ||
Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 395,000,000 | ||
BMO Line of Credit [Member] | Line of Credit [Member] | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | 300,000,000 | ||
BMO Line of Credit [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Unsecured Debt [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument face amount | $ 145,000,000 | ||
Number of term loans | loan | 2 | ||
Unsecured Debt [Member] | Term Loan Maturing 2024 [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument face amount | 70,000,000 | ||
Unsecured Debt [Member] | Term Loan Maturing 2025 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument face amount | $ 75,000,000 | ||
Term loan term | 7 years | ||
Line of Credit [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 200,000,000 |