Franklin Select Real Estate Income Fund Posts 1995 Results.

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 23, 1996--Franklin Properties, Inc. announced today that Franklin Select Real Estate Income Fund (ASE:FSN), an infinite-life real estate investment trust it manages, experienced lower earnings for the year ended December 31, 1995, as compared to the prior year.

Net income declined $100,000, or $0.03 per share, largely due to a one time property tax refund received in 1994 that reduced 1994 operating expenses and due to expenses related to the proposed consolidation of the Company with two other real estate investment trusts managed by Franklin Properties. Total revenue for the year increased $189,000, or 4%, reflecting increased rental income from the Company's northern California office buildings and due to increased interest income earned on temporary investments in mortgage-backed securities. -0-

Years ended December 31                     1995           1994

Rental income                          $ 4,511,000    $ 4,430,000
Interest and dividend income               494,000        386,000
Total revenue                            5,005,000      4,816,000
Operating expenses                       1,404,000      1,210,000
Depreciation and amortization            1,495,000      1,469,000
Related party expenses                     444,000        378,000
General and administrative
  expenses                                 204,000        276,000
Consolidation Expense                      150,000          2,000
Loss on sale of Mortgage-backed
  securities                                  -            13,000
Net income                               1,308,000      1,468,000
Net income per share                        $ 0.24         $ 0.27
Dividends per share                         $ 0.44         $ 0.41
Average shares outstanding               5,383,346      5,383,727
-0-

The Company's property portfolio is currently 100% leased. The Company holds a 60% undivided fee interest in the Shores Office Complex, a three building office complex in Redwood City, California. An affiliated finite-life real estate investment trust, Franklin Real Estate Income Fund (ASE:FIN), also managed by Franklin Properties, Inc., holds the remaining 40% fee interest as co-owner. Franklin Select also owns the Data General Building, a five-story office building located in Manhattan Beach, 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, Franklin Real Estate Income Fund (ASE:FIN) and/or Franklin Advantage Real Estate Income Fund (ASE:FAD) would be merged into the Company, which would be renamed Franklin Select Realty Trust. The merger is subject to-MORE- certain conditions including approval by a majority of the shareholders of the Company, FIN 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