ASR Investments Corp. reports higher 1996 third quarter earnings.

TUCSON, Ariz.--(BUSINESS WIRE)--Oct. 28, 1996--ASR Investments Corp. (AMEX:ASR), an apartment REIT, reported net income of $2,092,000 ($0.66 per share) and $7,758,000 ($2.46 per share) for the quarter and nine months ended Sept. 30, 1996, compared with $570,000 ($0.18 per share) and $5,944,000 ($1.90 per share) for the like periods in 1995.

Cash provided by operations was $3,440,000 ($1.09 per share) and $10,680,000 ($3.39 per share) for the quarter and nine months ended Sept. 30, 1996, compared with $1,286,000 ($0.41 per share) and $6,277,000 ($2.01 per share) for the like periods in 1995.

Income from the company's apartment communities (after related interest expense and before depreciation) was $853,000 and $2,814,000 for the quarter and nine months ended Sept. 30, 1996, which was 41 percent and 21 percent higher than the like periods in 1995.

The increase was due to acquisitions made in 1995 as well as improved performance in most of the company's markets. The company expects the 1996 income from apartment communities to exceed the 1995 level.

Income from mortgage assets (after related interest expense) was $3,441,000 and $9,995,000 for the quarter and nine months ended Sept. 30, 1996, compared with $1,332,000 and $8,528,000 for the like periods in 1995. In addition, the company has redeemed or sold two mortgage assets in October for total proceeds of $1,825,000 and income of approximately $1.7 million.

The company has been successful in selling mortgage assets that are redeemable in the foreseeable future at attractive prices. The sales and redemptions of mortgage assets expedite the company's strategic plan to build its portfolio of apartment communities.

It is obvious that the company's 1996 net income and cash provided by operations will exceed the 1995 amounts as well as the current $2.00 per share dividend. The company will reinvest the excess earnings in additional apartments.

ASR Investments Corp. is a real estate investment trust that owns and operates apartment communities. It owns 24 apartment communities containing 4,124 units located in Phoenix and Tucson, Albuquerque, N.M., and Houston, including six communities (1,441 units) owned through joint ventures. ASR also is developing a 356 unit luxury apartment community in Tempe, Ariz., at a total cost of $20 million - $21 million. The new community will be available for occupancy in late 1996. -0-

                         ASR Investments Corp.
                         Financial Highlights

Quarter:                             Sept. 30           Sept. 30
                                       1996               1995

Total Income                        $7,129,000         $4,798,000
Net Income                          $2,092,000           $570,000
SHR earns
 Net Income                              $0.66              $0.18
Average Shares Outstanding           3,155,000          3,151,000
Cash Provided by Operations          3,440,000          1,286,000
 Per Share                               $1.09              $0.41


Nine Months:                         Sept. 30           Sept. 30
                                       1996               1995

Total Income                       $21,088,000        $19,191,000
Net Income                          $7,758,000         $5,944,000
SHR earns
 Net Income                              $2.46              $1.90
Average Shares Outstanding           3,155,000          3,137,000
Cash Provided by Operations         10,680,000          6,277,000
 Per Share                               $3.39              $2.01

CONTACT: ASR Investments Corp., Tucson

Joseph C. Chan, 520/748-2111

fax: [phone]