Franklin Real Estate Income Fund Posts 1995 Results.

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 23, 1996--Franklin Properties, Inc. announced today that Franklin Real Estate Income Fund (ASE:FIN), one of the finite-life real estate investment trusts it manages, experienced a 2% increase in net income for the year ended December 31, 1995, as compared to the prior year.

Net income increased $33,000, or $0.01 per share, and total revenue increased $228,000, primarily due to a full-year's rental income from the Glen Cove Shopping Center, acquired on January 31, 1994, and due to improved occupancy rates at three of the Company's properties. -0-

Years ended December 31                           1995             1994

Total revenue                                  4,708,000        4,480,000
Operating expenses                             1,225,000        1,114,000
Depreciation and amortization                  1,144,000        1,122,000
Related party expenses                           222,000          213,000
General and administrative
  expenses                                       173,000          218,000
Consolidation Expense                            143,000            2,000
Loss on sale of Mortgage-backed
  securities                                        -              68,000
Interest expense                                 205,000          177,000
Net income                                     1,599,000        1,566,000
Net income per share                              $ 0.40           $ 0.39
Dividends per share                               $ 0.50           $ 0.50
Average shares outstanding                     3,999,518        3,999,958
-0-

The Company's property portfolio is currently 94% leased. The Company holds a 40% undivided fee interest in the Shores Office Complex, a three building office complex in Redwood City, California. An affiliated infinite-life real estate investment trust, Franklin Select Real Estate Income Fund (ASE:FSN), also managed by Franklin Properties, Inc., holds the remaining 60% fee interest as co-owner. Franklin Real Estate also owns two neighborhood shopping centers, the Mira Loma Shopping Center, located in Reno, Nevada, and the Glen Cove Center, located in Vallejo, California; and the Northport Business Park, consisting of three light industrial buildings located in Fremont, California.

As previously reported by the Company, the Company and two other real estate investment trusts advised by Franklin Properties, Inc. have agreed to merge. In the merger, the Company and/or Franklin Advantage Real Estate Income Fund (ASE:FAD) would be merged into Franklin Select Real Estate Income Fund (ASE:FSN), which would be renamed Franklin Select Realty Trust. The merger is subject to certain conditions including approval by a majority of the shareholders of the Company, FSN and/or FAD. The REITs have filed a Joint Proxy Statement/Registration Statement with the Securities and Exchange Commission relating to the merger. A special meeting of the shareholders of each REIT will be held to vote on the proposed merger upon the effectiveness of the Registration Statement and close of the solicitation period. The merger offering will be made only by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities issued in connection with the merger in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

The San Mateo, California based Franklin Properties, Inc. is a subsidiary of Franklin Resources, Inc., whose primary business is the Franklin Templeton Group with over $135 billion in assets under management.

CONTACT: Franklin Properties Inc.

David Goss, 415/312-5824