Bedford Property Investors Announces Second Quarter Results.

LAFAYETTE, Calif.--(BUSINESS WIRE)--July 21, 1997--Bedford Property Investors, Inc. (NYSE:BED) announced earnings and Funds From Operations (FFO) for the second quarter and the six months ended June 30, 1997.

The Company reported net income for the second quarter of 1997 of $4,860,000 on rental revenues of $10,627,000, compared with net income of $ 2,980,000 on rental revenues of $6,369,000 for the second quarter of 1996. For the six months ended June 30, 1997, net income was $8,515,000 on rental revenues of $19,683,000, compared with net income of $4,933,000 on rental revenues of $12,078,000 for the six months ended June 30, 1996.

FFO for the second quarter of 1997 was $6,134,000 or $0.39 per share on a fully-diluted basis, as compared with $3,339,000 or $0.34 per share on a fully-diluted basis for the second quarter of 1996. FFO for the six months ended June 30, 1997 was $10,940,000 or $0.75 per share on a fully-diluted basis, as compared with $5,900,000 or $0.69 per share on a fully-diluted basis, for the six months ended June 30, 1996. This represents a 9% increase in FFO per share for the six month period. The calculation of the fully-diluted weighted average number of common shares for the six months ended June 30, 1997 assumes the conversion of the Company's Series A Convertible Preferred Stock at a conversion rate of two shares of Preferred Stock for one share of common stock, and the conversion of 95,049 partnership units, issued in connection with the property acquisition by the Company in December, 1996, at the conversion rate of one partnership unit for one share of common stock. FFO is defined as net income, excluding gains or losses from debt restructuring and sales of property, plus depreciation and amortization of assets related to real estate, after adjustments for unconsolidated ventures. As was the case in 1996, the Company continues to calculate FFO in accordance with NAREIT's March 1995 interpretation.

As previously announced, the Company is under a definitive agreement to sell two class "A" office buildings located in Oxnard and Torrance, California for $25,750,000. The sale, which is expected to close in the third quarter of 1997, will result in a gain of approximately $11,000,000.

Bedford Property Investors is a self-administered equity real estate investment trust (REIT) with investments in suburban office buildings and industrial properties concentrated in the western United States. It is traded on he New York, Pacific and Chicago Stock Exchange under the symbol "BED." -0-

                   BEDFORD PROPERTY INVESTORS, INC.
                  Consolidated Statements of Income
    For the three months and six months ended June 30, 1997 and 1996
                              (unaudited)
            (in 000s, except share and per share amounts)

                              Three Months            Six Months
                            1997        1996      1997         1996

Property operations:
  Rental income           $10,627     $ 6,369    $19,683     $12,078
  Rental expenses:
    Operating expenses      1,560       1,155      3,023       2,314
    Real estate taxes         890         669      1,715       1,234
    Depreciation and
     amortization           1,248         718      2,374       1,326

Income from property
 operations                 6,929       3,827     12,571       7,204

General and administrative
 expenses                    (578)       (495)    (1,117)       (927)

Interest income                44          44        144          62
Interest expense           (1,509)       (755)    (3,032)     (1,765)

Income before minority
 interest and gain on
 sale                       4,886       2,621      8,566       4,574

Gain on sale                   --         359         --         359
Minority interest             (26)         --        (51)         --

Net income                $ 4,860     $ 2,980    $ 8,515     $ 4,933

Net income applicable to
 common stockholders(1)   $ 3,735     $ 1,855    $ 6,265     $ 2,683

Primary earnings per
 common and common
 equivalent share         $  0.33     $  0.33    $  0.61     $  0.61

Primary weighted average number
 of common and common
 equivalent shares     11,377,560   5,682,402 10,243,123   4,432,999

Earnings per common
 share -- assuming
 full dilution            $  0.31     $  0.30    $  0.59     $  0.57

Weighted average
 number of common
 shares -- assuming
 full dilution         15,639,278   9,849,069 14,546,136   8,599,666

(1) Reflects reduction for quarterly dividends of $1,125 on the
$50,000 series A convertible preferred stock.


                      BEDFORD PROPERTY INVESTORS INC.
                  Consolidated Balance Sheets (Unaudited)
             (in thousands, except share and per share amounts)

                                    June 30,            Dec. 31,
                                      1997                1996
Assets:
 Industrial buildings               $201,326            $164,674
 Office buildings                     96,164              53,071
 Retail buildings                        --                6,281
 Operating Properties Held
  for Sale                            20,767                  --
 Industrial Properties under
  Development                         10,304               5,388
                                     -------             -------
                                     328,561             229,414
Less accumulated depreciation          7,126               4,913
                                     -------             -------
                                     321,435             224,501

Cash                                   1,075               1,328
Other assets                          10,180               5,995
                                     -------             -------
      Total asseets                 $332,690           $ 231,824

Liabilities and Stockholders' Equity:

Bank loan payable                     58,350              46,097
Mortgage loan payable                 60,584              51,850
Accounts payable and
 accrued expenses                      4,531               2,214
Dividend and Distributions payable     4,163               2,827
Other liabilities                      3,525               3,371
                                     -------              ------
 Total liabilities                 $ 131,153           $ 106,359

Redeemable preferred shares:
 Series A convertible preferred
 stock, par value $0.01 per share;
 authorized 10,000,000 shares;
 issued and outstanding 8,333,334
 shares; aggregate redemption
 amount $50,000; aggregate
 liquidation preference $52,500       50,000              50,000

Minority interest in consolidated
 partnership                           1,497                1,709

Common stock and other
 stockholders' equity:
 Common stock, par value $0.02
  per share; authorized 50,000,000
  shares in 1997, and 15,000,000
  shares in 1996; issued and
  outstanding 11,155,950 shares
  in 1997 and 6,526,325 shares
  in 1996                                223                 131
Additional paid-in capital           223,454             147,622
Accumulated losses and
 distributions in excess of
 net income                          (73,637)            (73,997)

Total stockholders' equity           150,040              73,756
                                     -------             -------
Total liabilities and
 stockholders' equity              $ 332,690           $ 231,824

CONTACT: Bedford Property Investors

Peter B. Bedford or Hanh Kihara, 510/283-8910