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National Golf Properties reports 11 percent FFO per share growth in 1996.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Feb. 25, 1997--National Golf Properties Inc. (NYSE:TEE) reported funds from operations (FFO) of $42.0 million for the year ended Dec. 31, 1996, a 15% increase from $36.4 million for the year ended Dec 31, 1995.

On a per-share basis, NGP reported an 11% increase in FFO to $2.10 per share for the year ended Dec. 31, 1996, from $1.89 per share from a year earlier. The difference in growth rates between aggregate FFO and FFO per share is attributable to the issuance of 1,577,820 shares of NGP common stock during the third quarter of 1996 as partial consideration for the purchase of 20 golf courses.

NGP has adopted the new definition of FFO published by the National Association of Real Estate Investment Trusts (NAREIT).

Rent revenues increased 28% to $58.9 million in 1996 from $45.9 million in 1995. The increase in rent revenues was due to same-store rent growth of 2.9% and rent received from 35 golf courses acquired during the year. Net income totaled $13.4 million or $1.17 per share in 1996, compared with $13.3 million or $1.25 per share in 1995. The decrease in net income per share was primarily due to increased interest and depreciation expense in 1996.

For the year, NGP declared distributions to stockholders of $1.66 per share and reduced its payout ratio to approximately 79% of FFO from approximately 85% a year earlier.

For the quarter ended Dec. 31, 1996, FFO increased 17% to $10.9 million from $9.3 million in the fourth quarter of 1995. On a per- share basis, NGP reported an 8% increase in FFO to $0.52 per share for the quarter ended Dec. 31, 1996, from $0.48 per share from a year earlier. Rent revenues increased 32% to $15.9 million in the fourth quarter of 1996 from $12.1 million the prior year.

Net income increased to $3.6 million or $0.29 per share in fourth quarter of 1996 compared with $2.8 million or $0.27 per share a year earlier primarily due to a gain from the sale of a golf course in the fourth quarter of 1996.

NGP acquired 35 golf courses for approximately $155 million in 1996 including the purchase of 20 golf courses from Golf Enterprises for $58 million, a transaction in which NGP issued $41 million of common stock as partial consideration. As expected, this transaction was accretive to FFO per share in 1996.

NGP leased 31 if its 35 golf course acquisitions in 1996 to American Golf Corp., which operates approximately 250 courses in the United States and United Kingdom.

In addition, NGP leased two courses to Cobblestone Golf Group, which operates 22 courses in the southwestern United States; one course to The Links Group, which operates 11 courses in the southeastern United States; and one course to Evergreen Alliance Golf Limited, which operates 25 courses in nine states.

NGP currently owns 116 golf courses geographically diversified among 27 states. The portfolio consists of 53 daily fee courses, 43 private club courses and 20 resort courses. -0-
 NATIONAL GOLF PROPERTIES INC.
 4Q96 Financial Summary
 (In thousands, except per-share and property data)


Income Statement Data Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1996 1995 Growth 1996 1995 Growth


Base Rent Revenue $15,528 $11,219 38.4% $54,609 $42,200 29.4%
Percentage Rent Revenue 403 867 (53.5%) 4,289 3,731 15.0%
Total Rent Revenue $15,931 $12,086 31.8% $58,898 $45,931 28.2%

Funds From Operations
 (New Definition) $10,857 $ 9,256 17.3% $41,995 $36,447 15.2%
Per Share $ 0.52 $ 0.48 8.3% $ 2.10 $ 1.89 11.1%
Funds From Operations
 (Old Definition) $11,233 $ 9,533 17.8% $43,278 $37,628 15.0%
Per Share $ 0.53 $ 0.49 8.2% $ 2.16 $ 1.95 10.8%

Weighted Average
 Common Stock and OP
 Units Outstanding 21,028 19,308 -- 20,025 19,308 --

Distributions Declared
 Per Share $ 0.42 $ 0.41 2.4% $ 1.66 $ 1.61 3.1%
Payout Ratio (New FFO
 Definition) 81% 85% -- 79% 85% --
Payout Ratio (Old FFO
 Definition) 79% 84% -- 77% 83% --


Balance Sheet Data Dec. 31, 1996 Dec. 31, 1995

Real Estate Before Accumulated
 Depreciation $515,794 $362,068
Total Assets $469,945 $347,967

Variable-Rate Debt $24,890 $12,000
 Weighted Average Variable Interest Rate 7.78% 7.44%
Fixed-Rate Debt $205,059 $131,176
 Weighted Average Fixed Interest Rate 8.14% 8.22%
Total Debt $229,949 $143,176
 Weighted Average Blended Interest Rate 8.10% 8.16%

Market Capitalization (Including Debt) $896,047 $584,845
Total Debt/Market Capitalization 26% 24%

Common Stock Outstanding 12,304 10,622
OP Units Outstanding 8,738 8,686
Total Common Stock & OP Units Outstanding 21,042 19,308


Course Data Feb. 25, 1997 Dec. 31, 1996

Daily Fee Courses 53 52
Private Courses 43 43
Resort Courses 20 19
Total Courses 116 114


Other Data Year Ended
 Dec. 31, 1996

Same Store Rent Growth 2.9%
Same Store Revenue Growth (Course Level) 6.3%
Same Store Rounds Growth 0.3%
Golf Course Acquisitions 35
Aggregate Initial Golf Course Investment $155,013

-0-

 NATIONAL GOLF PROPERTIES INC.
 FFO Reconciliation
 (Dollars in thousands, except per-share data)

 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1996 1995 1996 1995

Net income $ 3,638 $ 2,829 $13,412 $13,286
Minority interest 2,776 2,393 10,852 11,366
Depreciation & amortization 5,672 4,032 19,124 14,027
Amortization -- restricted stock 321 236 1,089 943
Write off of option payable -- -- -- (101)
(Gain) loss on asset dispositions (1,174) 43 (1,199) (1,893)
Funds from operations -- old
 definition 11,233 9,533 43,278 37,628
Amortization -- restricted stock (321) (236) (1,089) (943)
Amortization -- loan costs (44) (30) (147) (195)
Depreciation -- corporate (11) (11) (47) (43)
Funds from operations -- new
 definition $10,857 $9,256 $41,995 $36,447

Per share:
Funds from operations -- old
 definition $0.53 $0.49 $2.16 $1.95
Funds from operations -- new
 definition $0.52 $0.48 $2.10 $1.89

-0-

 NATIONAL GOLF PROPERTIES INC.
 CONSOLIDATED BALANCE SHEETS
 (In thousands, except share data)

 Dec. 31,
 1996 1995
 ASSETS
Property
 Land $63,049 $51,909
 Buildings 147,678 108,120
 Ground improvements 263,803 168,872
 Furniture, fixtures and equipment 30,531 26,646
 Construction in progress 10,733 6,521
 515,794 362,068
 Less: accumulated depreciation (73,031) (58,787)
 Net property 442,763 303,281
Cash and cash equivalents 11,224 7,089
Investments 286 809
Mortgage notes receivable 2,971 27,441
Other assets 12,701 9,347
Total assets $469,945 $347,967

 LIABILITIES AND STOCKHOLDERS' EQUITY

Notes payable $229,949 $143,176
Accounts payable and other liabilities 3,134 2,077
Due to affiliates 641 1,807
Total liabilities 233,724 147,060
Minority interest 20,831 23,000
Commitments and contingencies
Stockholders' Equity:
 Preferred stock, $.01 par value,
 5 million shares authorized --
 none issued -- --
 Common stock, $.01 par value,
 40 million shares authorized,
 12,303,720 and 10,621,975
 shares issued and outstanding at
 Dec. 31, 1996 and 1995,
 respectively 123 106
 Additional paid in capital 219,985 181,730
 Accumulated deficit (1,360) (1,360)
 Unamortized restricted stock
 compensation (3,358) (2,569)
 Total stockholders' equity 215,390 177,907
 Total liabilities and stockholders'
 equity $469,945 $347,967

-0-

 NATIONAL GOLF PROPERTIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per-share amounts)

 For the year
 ended
 Dec. 31,
 1996 1995 1994
Revenues:
 Rent from affiliates $57,291 $45,339 $36,637
 Rent 1,607 592 --
 Gain on sale of property 1,199 1,893 --
 Total revenues 60,097 47,824 36,637

Expenses:
 General and administrative 4,734 4,258 4,709
 Depreciation and
 amortization 19,124 14,027 10,413
 Total expenses 23,858 18,285 15,122
 Operating income 36,239 29,539 21,515

Other income (expense):
 Interest income from
 affiliates 1,683 2,884 2,759
 Interest income 427 1,260 700
 Other income 238 114 194
 Interest expense (14,067) (8,793) (2,212)

Income before provision for
 taxes and minority interest 24,520 25,004 22,956
Provision for taxes (256) (352) (368)
Income before minority interest 24,264 24,652 22,588
Income applicable to minority
 interest (10,852) (11,366) (10,712)
Net income $13,412 $13,286 $11,876
Net income per common share $ 1.17 $ 1.25 $ 1.12
Weighted average number of
 common stock and common
 stock equivalents 11,420 10,643 10,616

-0-

 NATIONAL GOLF PROPERTIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per-share amounts)

 For the quarter
 ended Dec. 31,
 1996 1995
Revenues:
 Rent from affiliates $ 15,285 $ 11,903
 Rent 646 183
 Gain on sale of property 1,174 (43)
 Total revenues 17,105 12,043

Expenses:
 General and administrative 1,058 929
 Depreciation and amortization 5,672 4,032
 Total expenses 6,730 4,961
 Operating income 10,375 7,082

Other income (expense):
 Interest income from affiliates 1 585
 Interest income 111 285
 Other income 74 11
 Interest expense (4,094) (2,615)
Income before provision for
 taxes and minority interest 6,467 5,348

Provision for taxes (53) (125)
Income before minority interest 6,414 5,223
Income applicable to minority
 interest (2,776) (2,393)
Net income $ 3,638 $ 2,830
Net income per common share $ 0.29 $ 0.27
Weighted average number of
 common stock and common stock
 equivalents 12,431 10,668





CONTACT: National Golf Properties Inc., Santa Monica

Edward R. Sause/Neil M. Miller, 310/664-4100
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