REIT REPORT.

BERKSHIRE REALTY COMPANY, INC. (NYSE: BRI), Boston, Massachusetts, and BERKSHIRE REALTY HOLDINGS, L.P., a partnership formed by Chairman of the Board DOUGLAS KRUPP and affiliates of BLACKSTONE REAL ESTATE ADVISORS and WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP XI (an affiliate of Goldman, Sachs & Co.) have entered into a definitive merger agreement. The company's board of directors has approved the merger agreement based on a recommendation from a special committee of the board comprised of four independent directors. Pursuant to this agreement, shareholders of Berkshire will receive $12.25 in cash per share of common stock. Limited partners in Berkshire's Operating Partnership can elect to receive the same cash consideration per OP unit or become limited partners of the acquiring partnership. The transaction is valued in excess of $1.3 billion. Berkshire has also announced funds from operations for the quarter ending March 31, 1999, of $14.250 million, or $0.31 per basic share and $0.30 per diluted share, versus $12.580 million, or $0.28 per basic and diluted share for the same period of 1998, an increase of 10.7 percent per basic share. Berkshire owns 82 apartment communities consisting of 24,387 units in Florida, Texas, and the mid-Atlantic and Southeastern states.

WNY GROUP, INC., Freehold, New Jersey, an equity real estate investment trust specializing in the ownership and management of apartment communities in New Jersey, Delaware, Maryland, and Pennsylvania, has announced the completion of a private placement of $30 million of new equity capital with FIVE ARROWS REALTY SECURITIES II, L.LC., an investment pool advised by ROTHSCHILD REALTY, INC., and investors affiliated with or advised by an affiliate of MORGAN STANLEY DEAN WITTER & CO. The WNY Group has successfully raised $60 million of convertible preferred stock within a 15-month period and expanded its equity capitalization to more than $100 million and its total market capitalization to more than $210 million. Since its inception in January 1998, the company has expanded its portfolio from 4,700 to 6,600 owned apartments and expects to add apartment units over the next 12 months.