-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BCQyze870HdGwKDC/9HjBhaQQW5pj0BjDAMF9SJC8GlP3xkPm1LItHBy/852hP+G 8PcUTNACa5FfKcCUOcb2Gg== 0000845613-96-000006.txt : 19960517 0000845613-96-000006.hdr.sgml : 19960517 ACCESSION NUMBER: 0000845613-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN SELECT REAL ESTATE INCOME FUND CENTRAL INDEX KEY: 0000845613 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 943095938 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12708 FILM NUMBER: 96565854 BUSINESS ADDRESS: STREET 1: 1800 GATEWAY DR - STE 200 CITY: SAN MATEO STATE: CA ZIP: 94404 BUSINESS PHONE: 4153122000 MAIL ADDRESS: STREET 1: P O BOX 7777 CITY: SAN MATEO STATE: CA ZIP: 94403-7777 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CALIFORNIA REAL ESTATE FUND DATE OF NAME CHANGE: 19890307 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 -------------------------------------------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE CHANGE ACT OF 1934 For the transition period from to -------------------------------------------------- Commission file number 1-12708 ----------------------------------------------------------- Franklin Select Real Estate Income Fund - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 94-3095938 - -------------------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) P. O. Box 7777, San Mateo, California 94403-7777 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (415) 312-2000 ------------------------------ N/A - -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Common Stock Shares Outstanding as of March 31, 1996, Series A: 5,383,296 Common Stock Shares Outstanding as of March 31, 1996, Series B: 185,866 PART I - FINANCIAL INFORMATION Item 1. Financial Statements FRANKLIN SELECT REAL ESTATE INCOME FUND BALANCE SHEETS MARCH 31, 1996 AND DECEMBER 31, 1995 (Unaudited) (Dollars in 000's except per share amounts) 1996 1995 ASSETS Rental property: Land $ 9,686 $ 9,686 Buildings and improvements 33,462 33,385 - ------------------------------------------------------------------------------- 43,148 43,071 Less: accumulated depreciation 7,285 6,934 - ------------------------------------------------------------------------------- 35,863 36,137 Cash and cash equivalents 3,375 3,251 Mortgage-backed securities, available for sale 4,954 5,202 Deferred rent receivable 968 978 Other assets 663 623 - ------------------------------------------------------------------------------- Total assets $45,823 $46,191 =============================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Tenants' deposits and other liabilities $327 $272 Advance rents 9 11 Distributions payable 592 592 - ------------------------------------------------------------------------------- Total liabilities 928 875 - ------------------------------------------------------------------------------- Stockholders' equity: Common stock, Series A, without par value. Stated value $10 per share; 50,000,000 shares authorized; 5,383,296 shares issued and outstanding in 1996 and 1995 48,857 48,857 Common stock, Series B, without par value. Stated value $10 per share; 1,000,000 shares authorized; 185,866 shares issued and outstanding in 1996 and 1995 1,859 1,859 Unrealized loss on mortgage-backed securities (146) (113) Accumulated distributions in excess of net income (5,675) (5,287) - ------------------------------------------------------------------------------- Total stockholders' equity 44,895 45,316 - ------------------------------------------------------------------------------- Total liabilities and stockholders' equity $45,823 $46,191 =============================================================================== See notes to financial statements. Item 1. Financial Statements (continued) FRANKLIN SELECT REAL ESTATE INCOME FUND STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1996 AND 1995 (Unaudited) (Dollars in 000's except per share amounts) 1996 1995 Revenue: Rent $1,154 $1,130 Interest 125 116 Dividends 2 1 - --------------------------------------------------------------------------- Total revenue 1,281 1,247 - --------------------------------------------------------------------------- Expenses: Depreciation and amortization 378 372 Operating 312 292 Related party 115 110 Consolidation expense 176 - General and administrative 96 52 - --------------------------------------------------------------------------- Total expenses 1,077 826 - --------------------------------------------------------------------------- Net income $204 $421 =========================================================================== Net income per share, based on shares outstanding of Series A common stock of 5,383,296 and 5,383,439 at March 31, 1996 and 1995 $ .04 $ .08 =========================================================================== Distributions per share, based on shares outstanding of Series A common stock of 5,383,296 and 5,383,439 at March 31, 1996 and 1995 $ .11 $ .11 =========================================================================== See notes to financial statements. Item 1. Financial Statements (continued) FRANKLIN SELECT REAL ESTATE INCOME FUND STATEMENT OF STOCKHOLDERS' EQUITY FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1996 (Unaudited) (Dollars in 000's)
Common Stock Series A Series B Excess of Unrealized Accumulated Gain/Loss Distributions on in Excess of Shares Amount Shares Amount Securities Net Income Total Balance, beginning of period 5,383,296 $48,857 185,866 $1,859 $(113) $(5,287) $45,316 Unrealized loss on mortgage- backed securities - - - - (33) - (33) Net income - - - - - 204 204 Distributions declared - - - - - (592) (592) - ------------------------------------------------------------------------------------------------ Balance, end of period 5,383,296 $48,857 185,866 $1,859 $(146) $(5,675) $44,895 ================================================================================================
See notes to financial statements. Item 1. Financial Statements (continued) FRANKLIN SELECT REAL ESTATE INCOME FUND STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1996 AND 1995 (Unaudited) (Dollars in 000's) 1996 1995 Cash flows from operating activities: Net income $204 $421 - -------------------------------------------------------------------------------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 378 372 Decrease in deferred rent receivable 10 11 Increase in other assets (67) (56) Increase in tenants' deposits and other liabilities 55 63 Decrease in advance rents (2) (2) - -------------------------------------------------------------------------------- 374 388 - -------------------------------------------------------------------------------- Net cash provided by operating activities 578 809 - -------------------------------------------------------------------------------- Cash flow from investing activities: Improvements to rental property (77) (10) Disposition of mortgage-backed securities 215 97 - -------------------------------------------------------------------------------- Net cash provided by investing activities 138 87 - -------------------------------------------------------------------------------- Cash flow from financing activities: Distributions paid (592) (592) - -------------------------------------------------------------------------------- Net cash used in financing activities (592) (592) - -------------------------------------------------------------------------------- Net increase in cash and cash equivalents 124 304 Cash and cash equivalents, beginning of period 3,251 2,423 - -------------------------------------------------------------------------------- Cash and cash equivalents, end of period $3,375 $2,727 ================================================================================ See notes to financial statements. FRANKLIN SELECT REAL ESTATE INCOME FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 NOTE 1 - ORGANIZATION Franklin Select Real Estate Income Fund (the "Company") is a California corporation formed on January 5, 1989 for the purpose of investing in income-producing real property. The Company is a real estate investment trust ("REIT") having elected to qualify as a REIT under the applicable provisions of the Internal Revenue Code since 1989. Under the Internal Revenue Code and applicable state income tax law, a qualified REIT is not subject to income tax if at least 95% of its taxable income is currently distributed to its stockholders and other REIT tests are met. The Company has distributed at least 95% of its taxable income and intends to distribute substantially all of its taxable income in the future. Accordingly, no provision is made for income taxes in these financial statements. As of March 31, 1996, the Company's real estate portfolio consisted of a 60% undivided interest in the Shores Office Complex, a three-building office complex located in Redwood City, California, and a fee interest in the Data General Building located in Manhattan Beach, California. NOTE 2 - BASIS OF PRESENTATION The accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) which are necessary, in the opinion of management, for a fair presentation. The statements, which do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements, should be read in conjunction with the Company's financial statements for the year ended December 31, 1995. NOTE 3 - RELATED PARTY TRANSACTIONS The Company has an agreement with Franklin Properties, Inc. (The "Advisor") to administer the day-to-day operations of the Company. Under the terms of the amended agreement, which is renewable annually, the Advisor will receive quarterly an annualized fee equal to .5% of the Company's gross real estate assets, defined generally as the book value of the assets before depreciation. The fee will be reduced to .4% for gross real estate assets exceeding $200 million. At March 31, 1996, cash equivalents included $248,000 invested in Franklin Money Fund, an investment company managed by an affiliate of the Advisor. Distributions earned from the Franklin Money Fund totaled $2,000 for the three month period ended March 31, 1996. FRANKLIN SELECT REAL ESTATE INCOME FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 NOTE 3 - RELATED PARTY TRANSACTIONS (Continued) The agreements between the Company and the Advisor, or affiliates, provide for certain types of compensation and payments including but not limited to the following for those services rendered for the three month period ended March 31, 1996: Advisory fee expense, charged to related party expense $54,000 Reimbursement for data processing, accounting and certain other expenses, charged to related party expense $4,000 Property management fee, charged to related party expense $57,000 Leasing commission, capitalized and amortized over the term of the related lease $2,000 Construction supervision fee, capitalized and amortized over the life of the related investment or the term of the related lease $1,000 NOTE 4 - COMMON STOCK AND INCOME PER SHARE In 1994 the Company issued to the Advisor an exchange right ("the Exchange Right") to exchange its Series B common stock for Series A common stock on a one-for-one basis. The Exchange Right is exercisable only when the Series A shares achieve a trading price on the stock exchange equal to or greater than $10.35 per share for at least 20 consecutive trading days. The rate of exchange and the target price will be subject to change under certain circumstances as provided in the Exchange Right Agreement. No distributions may be paid on the Series B shares prior to exercise of the Exchange Right. After exercise of the Exchange Right, the Advisor, like any other shareholder, will receive distributions on its Series A shares. Series A and Series B common stock have the same voting rights. Distributions on Series A common stock are declared at the discretion of the Board of Directors. NOTE 5 - SUBSEQUENT EVENT Effective May 7, 1996, Franklin Real Estate Income Fund ( "FREIF" ) and Franklin Advantage Real Estate Income Fund ( "Advantage" ) merged into the Company. In connection with the Merger, the Company issued approximately 7,937,000 shares of Series A common stock and 559,718 shares of Series B common stock in exchange for 3,363,877 and 3,009,479 shares of Series A common stock and 319,308 and 124,240 shares of Series B common stock of FREIF and Advantage, respectively, in each case excluding dissenting shares. Shareholders representing approximately 635,638 shares of FREIF Series A common stock, 4,234 shares of Advantage Series A common stock and 1,077,667 shares of Company Series A common stock elected to exercise dissenter's rights pursuant to Chapter 13 of the California General Corporation Law. The Company, as the surviving corporation after the merger, is required to pay the fair market value for such dissenting shares. The Company has offered the dissenting shareholders approximately $8 million for their shares. The shareholders have asserted approximately $12 million as the fair market value. If the Company and any dissenting shareholder cannot agree on the fair market value, either party may file a complaint in the superior court within six months of mailing the notice of merger, asking the court to determine the fair market value of the dissenting shares. FRANKLIN SELECT REAL ESTATE INCOME FUND NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 NOTE 5 - SUBSEQUENT EVENT (Continued) The following pro forma condensed balance sheet has been prepared as if the merger and the exercise of dissenter's rights had occurred as of March 31, 1996. The pro forma statements of operations for the three months ended March 31, 1996, and the year ended December 31, 1995, have been prepared as if these transactions had occurred January 1, 1995. The pro forma financial information (in 000's except per share amounts) has been presented as a reorganization of entities under common control due to the common management of the Company, FREIF and Advantage by the Advisor. Therefore, the accounts of the Company, FREIF and Advantage have been reflected in the accompanying pro forma financial statements at their historical bases, as adjusted to give effect to the Merger. Pro Forma Condensed Balance Sheet As of March 31, 1996 Real estate assets, net of accumulated depreciation $99,012 Cash and cash equivalents 5,618 Mortgage-backed securities 6,809 Other assets 3,836 Total assets $115,275 Notes and bonds payable 6,647 Other liabilities 2,452 Total liabilities 9,099 Dissenting shareholders' interest 7,964 Stockholders' equity 98,212 Total liabilities and stockholders' equity $115,275 Pro Forma Condensed Statements of Operations Three months ended Year ended March 31,1996 December 31, 1995 Total revenue $3,474 $14,111 Total expenses 2,776 9,869 Net income $698 $4,242 Net income per share $.05 $.30 Pro forma weighted average shares of Series A common stock outstanding 14,143 14,143 Pro forma weighted average number of Series A shares outstanding has been calculated assuming that shares attributable to dissenting shareholders (equivalent to 1,900,000 shares of the Company's common stock) were outstanding for the periods indicated. If such shares had been retired effective January 1, 1995, pro forma net income per share would have been $.06 and $.35 for the three months ended March 31, 1996, and year ended December 31, 1995, respectively. In addition, the final number of shares to be issued and outstanding is subject to adjustment for rounding of fractional shares. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Introduction Management's discussion and analysis of financial condition and results of operations should be read in conjunction with the Financial Statements and Notes thereto. Results of Operations Comparison of the three month periods ended March 31, 1996 and 1995 Net income for the three month period ended March 31, 1996 decreased $217,000, or 52%, compared to 1995 primarily due to consolidation expenses totaling $176,000, and to the following additional factors: an increase in rental revenue of $24,000; an increase in interest and dividends of $10,000; an increase in depreciation and amortization of $6,000; an increase in operating expenses of $20,000; an increase in related party expenses of $5,000; and an increase in general and administrative expense of $44,000. See Item 4 "Submission of Matters to a Vote of Security Holders" for a discussion of the proposed consolidation. Explanations of the other material changes are as follows: Rental revenue for the three month period ended March 31, 1996 increased $24,000, or 2%, primarily due to increased rental revenue at the Shores Office Complex, as a result of an increase in average occupancy and rental rates. The average occupancy rate at the Shores Office Complex during the three month periods ended March 31, 1996 and 1995 was 100% and 98%, respectively. The occupancy rate at the Data General Building was 100% for both periods. Interest and dividend income for the three month period ended March 31, 1996 increased $10,000, or 9%, due to higher yields realized on investments in mortgage-backed securities. Total expenses for the three month period ended March 31, 1996, increased by $251,000, or 30%, from $826,000 in 1995 to $1,077,000. The increase in total expenses is attributable to the following factors: an increase in consolidation expense of $176,000; an increase in depreciation and amortization of $6,000, or 2%; an increase in operating expenses of $20,000, or 7%; an increase in related party expenses of $5,000, or 5%; and an increase in general and administrative expense of $44,000, or 85%. Operating expenses for the three month period ended March 31, 1996 increased $20,000, primarily due to an increase in utility expense at the Data General Building. Related party expense for the three month period ended March 31, 1996 increased $5,000 as a result of an increase in property management fees due to the increases in rental revenue at the Company's properties. General and administrative expense for the three month period ended March 31, 1996 increased $44,000 primarily due to increases in non-recurring legal fees of $29,000, and directors' fees of $14,000. Liquidity and Capital Resources As described in Note 5 to the accompanying financial statements, effective May 7, 1996, Franklin Real Estate Income Fund ( "FREIF" ) and Franklin Advantage Real Estate Income Fund ( "Advantage" ) merged into the Company. In connection with the Merger, the Company issued approximately 7,937,000 shares of Series A common stock and 559,718 shares of Series B common stock in exchange for 3,363,877 and 3,009,479 shares of Series A common stock and 319,308 and 124,240 shares of Series B common stock of FREIF and Advantage, respectively, in each case excluding dissenting shares. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources (Continued) Shareholders representing approximately 635,638 shares of FREIF Series A common stock, 4,234 shares of Advantage Series A common stock and 1,077,667 shares of Company Series A common stock elected to exercise dissenter's rights pursuant to Chapter 13 of the California General Corporation Law. The Company, as the surviving corporation after the merger, is required to pay the fair market value for such dissenting shares. The Company has offered the dissenting shareholders approximately $8 million for their shares. The shareholders have asserted approximately $12 million as the fair market value. If the Company and any dissenting shareholder cannot agree on the fair market value, either party may file a complaint in the superior court within six months of mailing the notice of merger, asking the court to determine the fair market value of the dissenting shares. The Company's source of capital to purchase the dissenting shares will vary depending upon the amount of funds required. The most likely sources are the Company's cash reserves, the liquidation of its marketable securities, or debt financing. At March 31, 1996, the cash reserves and marketable securities of the Company after the merger totaled approximately $12.4 million, and the assets and liabilities of the Company on a pro forma, post-merger basis are approximately $115.3 million and $9 million, respectively. Therefore, management believes that it has adequate sources of capital to purchase the dissenting shares. The Company's principal source of capital for the acquisition and major renovation of properties has been the proceeds from the initial public offering of its stock. The Company's cash flow has been its principal source of capital for minor property improvements, leasing costs and the payment of quarterly distributions. At March 31, 1996, the Company's cash reserves, including mortgage-backed securities, aggregated $8,329,000. The Company's investment in mortgage-backed securities consists of GNMA, FNMA and FMLMC adjustable rate pass-through certificates in which payments of principal and interest are guaranteed by the respective agencies. However, changes in market interest rates cause the security's market value to fluctuate, which could result in a gain or loss to the Company if the securities are sold before maturity. As of March 31, 1996, the Company had no formal borrowing arrangements with a bank and has no long-term debt. Each of the Company's properties is owned free and clear of mortgage indebtedness. Management continues to evaluate other properties for acquisition by the Company. In the short-term and in the long term, management believes that the Company's current sources of capital will continue to be adequate to meet both its operating requirements and the payment of dividends. Net cash provided by operating activities for the three month period ended March 31, 1996 was $578,000, or $231,000 less than the same period in 1995. The decrease in cash flow is primarily attributable to the decrease in net income as described under "Results of Operations". Net cash provided by investing activities for the three month period ended March 31, 1996, increased $51,000 when compared to the same period in 1995. The increase was due to an increase in principal payments received from mortgage-backed securities which was partially offset by an increase in improvements to rental property. Net cash used in financing activities remained unchanged. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources (Continued) Funds from Operations for the three month period ended March 31, 1996 decreased $211,000, or 27%, to $582,000 compared to the same period in 1995. The decrease is primarily due to the decrease in net income as described under "Results of Operations". The Company believes that Funds from Operations is helpful in understanding a property portfolio in that such calculation reflects income from operating activities and the properties' ability to support general operating expenses and interest expense before the impact of certain activities, such as gains and losses from property sales and changes in the accounts receivable and accounts payable. However, it does not measure whether income is sufficient to fund all of the Company's cash needs including principal amortization, capital improvements and distributions to shareholders. Funds from Operations should not be considered an alternative to net income or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing, or financing activities as a measure of liquidity. As defined by the National Association of Real Estate Investment Trusts, Funds from Operations is net income ( computed in accordance with GAAP ), excluding gains or losses from debt restructuring and sales of property, plus depreciation and amortization, and after adjustment for unconsolidated joint ventures. The Company reports Funds from Operations in accordance with the NAREIT definition. For the periods presented, Funds from Operations represents net income plus depreciation and amortization. The measure of Funds from Operations as reported by the Company may not be comparable to similarly titled measures of other companies that follow different definitions. Impact of Inflation The Company's management believes that inflation may have a positive effect on the Company's property portfolio, but this effect generally will not be fully realized until such properties are sold or exchanged. The Company's policy of negotiating leases which incorporate operating expense "pass-through" provisions is intended to protect the Company against increased operating costs resulting from inflation. Distributions Distributions are declared quarterly at the discretion of the Board of Directors. The Company's present distribution policy is to at least annually evaluate the current distribution rate in light of anticipated tenant turnover over the next two or three years, the estimated level of associated improvements and leasing commissions, planned capital expenditures, any debt service requirements and the Company's other working capital requirements. After balancing these considerations, and considering the Company's earnings and cash flow, the level of its liquid reserves and other relevant factors, the Company seeks to establish a distribution rate which: i) provides a stable distribution which is sustainable despite short term fluctuations in property cash flows; ii) maximizes the amount of cash flow paid out as distributions consistent with the above listed objective; and iii) complies with the Internal Revenue Code requirement that a REIT annually pay out as distributions not less than 95% of its taxable income. During the three-month period ended March 31, 1996, the Company declared distributions totaling $592,000. PART II - OTHER INFORMATION Item 4. Submission of Matters to Vote of Security Holders On November 2, 1995, the Boards of Directors of the Company and of two other real estate investment trusts that Franklin Properties, Inc. advises, Franklin Advantage Real Estate Income Fund ("Advantage") and Franklin Real Estate Income Fund ("FREIF"), authorized the execution of a Merger Agreement and the filing of a Joint Proxy Statement/Prospectus with the Securities and Exchange Commission. The Prospectus was filed on November 13, 1995, and became effective on March 14, 1996. At a Special Meeting of Shareholders held on May 7, 1996, the proposed merger of the Company with Advantage and FREIF was approved. Among other requirements, completion of the merger was subject to the approval of a majority of the outstanding shares of each of the three companies. The actual tabulation of the vote was as follows: FOR AGAINST ABSTAIN Franklin Real Estate Income Fund 54.34% 20.84% 3.12% Franklin Select Real Estate Income Fund 52.30% 24.78% 2.66% Franklin Advantage Real Estate Income Fund 73.79% 4.05% 2.43% In the merger, the Advantage and FREIF were merged into the Company, which will be renamed Franklin Select Realty Trust. Shares of the Company will be issued in exchange for the shares of Advantage and FREIF on the basis described in the Joint Proxy Statement/Prospectus. There were no other matters submitted to a vote of security holders during the quarter covered by this report. Item 6. Exhibits and Reports on Form 8-K (a) Not applicable (b) Reports on Form 8-K No reports on Form 8-K were filed by the Registrant during the quarter ended March 31, 1996. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FRANKLIN SELECT REAL ESTATE INCOME FUND By:/s/ David P. Goss David P. Goss Chief Executive Officer Date: May 12, 1996 EX-27 2
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1996 MAR-31-1996 3,375 4,954 968 0 0 0 43,148 7,285 45,823 0 0 0 0 50,716 (5,821) 45,823 0 1,281 0 1,077 0 0 0 0 0 0 0 0 0 204 0 0
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