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INVESTORS HUNT FOR BARGAINS IN REAL ESTATE

 INVESTORS HUNT FOR BARGAINS IN REAL ESTATE
 /ADVANCE/ NEW YORK, Dec. 1 /PRNewswire/ -- Over the past year, real


estate securities have performed dismally, beating only gold among the 10 categories that make up MONEY magazine's Small Investor Index. Recently, however, top-quality real estate investments have been perking up, prompting small investors to go bargain hunting, according to data gathered for the Index last week.
 Since October 1990, stocks have gained 30 percent to 50 percent and bonds have earned 10 percent to 15 percent, but real estate securities have inched up just 1.4 percent. That average performance figure, however, hides the fact that while weak real estate investment trusts have continued to slide in value, strong ones are rebounding.
 "High-quality REITs have performed well this year, with average total returns of around 20 percent," says analyst Robert Frank at Alex Brown in Baltimore. In addition, he says, strong REITs have been able to sell $500 million of new stock.
 The pattern is similar for real estate limited partnerships. Their sales have sunk from a high of $8.4 billion in 1986 to an estimated $1 billion this year, according to Robert Stanger & Co. in Shrewsbury, N.J. But while partnerships that buy properties with borrowed money continue to suffer, sales of all-cash partnerships, which are less risky, have risen to $27.4 million in October, up from $18 million in September.
 Keith Allaire, director of research at Stanger, says that all-cash partnerships make sense for long-term investors. "People should be buying now when everyone hates real estate," he says. "When the market finally comes back, investors will reap capital gains as well as income."
 Last week, the Index, which tracks the typical individual's holdings, fell $99, to $46,328. Stocks lost $113, and bonds dropped $5. CDs and money funds contributed $18.
 This Last Year % Change from a
 Week Week Ago Week Ago Year ago
 112.40 112.64 98.37 -0.21pct +14.26pct
 Latest changes for each asset
 Pct change from a
 Category Index Week Ago Year Ago
 Stocks
 NYSE 118.63 -0.50 +23.41
 ASE/OTC 140.74 -1.53 +46.80
 Equity funds 120.57 -1.00 +24.46
 Bonds
 Taxable Bonds 111.10 -0.03 +12.93
 Municipals 110.21 -0.10 +9.98
 Bond funds 113.75 -0.05 +14.55
 Short-term assets
 CDs 105.76 +0.10 +6.35
 Cash 104.81 +0.09 +5.27
 Other
 Real estate 101.31 -0.01 +1.34
 Gold 100.84 +0.50 -0.41
 Dec. 28, 1990 equals 100
 Where average small investors have their money now
 Current Year Ago Current Year Ago
 NYSE 20.07pct 19.12pct Bond funds 5.01pct 4.12pct
 ASE/OTC 6.34 6.04 CDs 19.41 22.00
 Equity funds 4.65 3.49 Cash 22.50 21.93
 Taxable bonds 16.50 17.22 Real estate 0.63 0.78
 Municipals 4.38 4.71 Gold 0.57 0.59
 Sources: Bank Rate Monitor, IBC/Donoghue's Money Fund Report, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 12/2/91
 /Note to editors: This material is also available in printable form from AP GraphicsNet and Access services for graphics and tables (under the file name MoneyIndex) and from PR Newswire for full text./
 /CONTACT: Jordan Goodman of Money, 212-522-3618, or Patti Straus of Money public relations, 212-522-2695/


KD -- NY048 -- 7842 11/27/91 15:39 EST
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