Excel announces second quarter earnings.

SAN DIEGO--(BUSINESS WIRE)--Aug. 1, 1996--Excel Realty Trust Inc. (NYSE:XEL) reported that funds from operations (FFO) as per the revised NAREIT definition of FFO, increased to $7.2 million (54 cents per share) for the second quarter ended June 30, 1996, as compared with $5.9 million (54 cents per share) for the same quarter a year ago using the same revised FFO definition.

Revenue for the second quarter was $13.3 million, compared with $13.0 million for the same period last year. Net income for the quarter was $4.1 million (31 cents per share), compared with $3.7 million (33 cents per share) in 1995.

Funds from operations were influenced by several factors during the second quarter. The company received a lease termination fee of $1.3 million from the tenant leasing the Fargo, N.D. property. The company's policy with respect to lease termination fees is to recognize the lease termination fee over a time period that the company estimates it will take to sell or release the property.

Consequently, the company recognized only one-third of the lease termination fee, or $433,333 in the second quarter, the remaining $866,666 is projected to be recognized during the remainder of 1996. Net income per share declined slightly because the value of the Fargo property was written down.

A second influence on FFO for the second quarter was the company's development entity, ERT Development (EDV). EDV has contributed significantly to the FFO of the company, although it is often difficult to forecast the timing of events within EDV. EDV has a strong pipeline of properties and projects that are in various stages of completion.

During the second quarter EDV contributed only $26,646 of development income toward FFO. The company accounts for income from EDV on the equity method.

A third influence on FFO is the company's downREIT, Excel Realty Partners (ERP). ERP contributed partnership income of approximately $235,000 for the quarter. In addition, ERP acquired one property during the quarter and issued 2,247 partnership units at $22.25 per unit.

Separately, the company announced the purchase in July of a neighborhood shopping center located in Statesboro, Ga., for a total purchase price of approximately $4.8 million. The company purchased this property by assuming debt of $3.4 million and paying approximately $1.4 million in cash.

This property will add approximately 59,800 sq.ft. and $527,000 in annualized base rents to Excel Realty Trust Inc. The center is 100 percent occupied with Publix Super Markets as the anchor tenant occupying approximately 48,000 sq.ft.

Excel Realty Trust, currently owns and manages properties which are primarily neighborhood and community shopping centers, anchored by major retail tenants, or single-tenant properties leased to major retail tenants.

CONTACT: Excel Realty Trust Inc., San Diego

Graham R. Bullick, 619/485-9400, ext. 203