<PAGE> PAGE 1
000 B000000 08/31/97
000 C000000 0001018368
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 ALLIANCE REAL ESTATE INVESTMENT FUND
001 B000000 811-07707
001 C000000 2013194104
002 A000000 500 PLAZA DRIVE
002 B000000 SECAUCUS
002 C000000 NJ
002 D010000 07094
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 ALLIANCE CAPITAL MANAGEMENT, L.P.
008 B000001 A
008 C000001 801-32361
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10105
010 A000001 ALLIANCE CAPITAL MANAGEMENT, L.P.
010 B000001 801-32361
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10105
011 A000001 ALLIANCE FUND DISTRIBUTORS, INC.
011 B000001 8-30851
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10105
012 A000001 ALLIANCE FUND SERVICES, INC.
012 B000001 84-001187
012 C010001 SECAUCUS
<PAGE> PAGE 2
012 C020001 NJ
012 C030001 07096
013 A000001 ERNST & YOUNG LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10019
014 A000001 DONALDSON, LUFKIN ,JENRETTE SECURITIES CORP.
014 B000001 8-00017574
014 A000002 PERSHING SECURITIES
014 B000002 8-00017574
014 A000003 AUTRANET, INC.
014 B000003 8-00017574
015 A000001 THE BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 52
019 C000000 ALLIANCECA
020 A000001 BROWN (ALEX.) & SONS INC.
020 B000001 52-1319768
020 C000001 194
020 A000002 PAINE WEBBER, INC.
020 B000002 13-2638166
020 C000002 65
020 A000003 LEHMAN BROTHERS, INC.
020 B000003 13-2518466
020 C000003 62
020 A000004 BRIDGE TRADING CO.
020 B000004 43-1450530
020 C000004 26
020 A000005 GREEN STREET ADVISORS
020 C000005 25
020 A000006 PRUDENTIAL SECURITIES, INC.
020 B000006 22-2347336
020 C000006 22
020 A000007 NATWEST SECURITIES
020 B000007 13-3255839
020 C000007 18
020 A000008 QUICK & REILLY, INC.
020 B000008 13-2779884
020 C000008 16
020 A000009 WESTMINSTER RESEARCH ASSOC.
020 C000009 14
020 A000010 MONTGOMERY SECURITIES
020 B000010 94-1701676
020 C000010 13
021 000000 526
<PAGE> PAGE 3
022 A000001 PRUDENTIAL SECURITIES INC.
022 B000001 22-2347336
022 C000001 215729
022 D000001 2295
022 A000002 FORD MOTOR CREDIT CORP.
022 C000002 146563
022 D000002 3552
022 A000003 AMERICAN EXPRESS SERVICE CORP.
022 C000003 88864
022 D000003 0
022 A000004 BANK OF NEW YORK (THE)
022 B000004 13-5160382
022 C000004 72938
022 D000004 0
022 A000005 GENERAL ELECTRIC CAPITAL CORP.
022 C000005 9369
022 D000005 0
022 A000006 SMITH BARNEY, INC.
022 B000006 13-1912900
022 C000006 2779
022 D000006 0
022 A000007 MERRILL LYNCH & CO.
022 B000007 13-5674085
022 C000007 2677
022 D000007 0
022 A000008 PAINE WEBBER INC.
022 B000008 13-2638166
022 C000008 1793
022 D000008 0
022 A000009 LEHMAN BROTHERS, INC.
022 B000009 13-2518466
022 C000009 2943
022 D000009 0
022 A000010 MORGAN STANLEY & CO.
022 B000010 13-2655998
022 C000010 1062
022 D000010 0
023 C000000 547209
023 D000000 5846
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
<PAGE> PAGE 4
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 38463
028 A020000 591
028 A030000 0
028 A040000 1653
028 B010000 21956
028 B020000 0
028 B030000 0
028 B040000 2540
028 C010000 20528
028 C020000 0
028 C030000 0
028 C040000 1616
028 D010000 16486
028 D020000 876
028 D030000 0
028 D040000 2850
028 E010000 21461
028 E020000 0
028 E030000 0
028 E040000 3035
028 F010000 25629
028 F020000 0
028 F030000 0
028 F040000 4841
028 G010000 144523
028 G020000 1467
028 G030000 0
028 G040000 16535
028 H000000 19608
029 000000 Y
030 A000000 2275
030 B000000 4.25
030 C000000 0.00
031 A000000 61
031 B000000 0
032 000000 2214
033 000000 0
034 000000 Y
035 000000 116
036 A000000 Y
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
<PAGE> PAGE 5
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 1056
044 000000 268
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.900
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
<PAGE> PAGE 6
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 250
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 Y
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
<PAGE> PAGE 7
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 267164
071 B000000 24840
071 C000000 125789
071 D000000 20
072 A000000 11
072 B000000 281
072 C000000 4976
072 D000000 0
072 E000000 0
072 F000000 1077
072 G000000 116
072 H000000 0
072 I000000 151
072 J000000 89
072 K000000 0
072 L000000 45
072 M000000 36
<PAGE> PAGE 8
072 N000000 101
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 49
072 S000000 32
072 T000000 1056
072 U000000 56
072 V000000 0
072 W000000 4
072 X000000 2812
072 Y000000 39
072 Z000000 2484
072AA000000 1417
072BB000000 0
072CC010000 20329
072CC020000 0
072DD010000 638
072DD020000 2896
072EE000000 0
073 A010000 0.3800
073 A020000 0.3300
073 B000000 0.0000
073 C000000 0.0000
074 A000000 87
074 B000000 0
074 C000000 7377
074 D000000 0
074 E000000 0
074 F000000 262394
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 632
074 K000000 0
074 L000000 3989
074 M000000 249
074 N000000 274728
074 O000000 4215
074 P000000 393
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 648
074 S000000 0
074 T000000 269472
074 U010000 2940
074 U020000 18127
074 V010000 12.80
074 V020000 12.79
<PAGE> PAGE 9
074 W000000 0.0000
074 X000000 9024
074 Y000000 0
075 A000000 0
075 B000000 130422
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 O000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 GULF INSURANCE COMPANY
080 C000000 86000
081 A000000 Y
081 B000000 100
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE JOSEPH P. CARUSONE
TITLE ASST. VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND
<SERIES>
<NUMBER> 011
<NAME> CLASS A SHARES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 250,934,927
<INVESTMENTS-AT-VALUE> 269,770,783
<RECEIVABLES> 4,620,964
<ASSETS-OTHER> 335,784
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 274,727,531
<PAYABLE-FOR-SECURITIES> 4,215,369
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,040,289
<TOTAL-LIABILITIES> 5,255,658
<SENIOR-EQUITY> 210,677
<PAID-IN-CAPITAL-COMMON> 248,564,650
<SHARES-COMMON-STOCK> 2,940,235
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,049,575)
<ACCUMULATED-NET-GAINS> 1,416,867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,329,254
<NET-ASSETS> 37,637,744
<DIVIDEND-INCOME> 4,975,808
<INTEREST-INCOME> 281,759
<OTHER-INCOME> 0
<EXPENSES-NET> 2,773,379
<NET-INVESTMENT-INCOME> 2,484,188
<REALIZED-GAINS-CURRENT> 1,416,867
<APPREC-INCREASE-CURRENT> 20,329,254
<NET-CHANGE-FROM-OPS> 24,230,309
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (638,229)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,365,063
<NUMBER-OF-SHARES-REDEEMED> (456,092)
<SHARES-REINVESTED> 31,254
<NET-CHANGE-IN-ASSETS> 269,371,573
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,077,321
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,812,531
<AVERAGE-NET-ASSETS> 20,051,542
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .30
<PER-SHARE-GAIN-APPREC> 2.88
<PER-SHARE-DIVIDEND> (.38)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.80
<EXPENSE-RATIO> 1.77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND
<SERIES>
<NUMBER> 012
<NAME> CLASS B SHARES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 250,934,927
<INVESTMENTS-AT-VALUE> 269,770,783
<RECEIVABLES> 4,620,964
<ASSETS-OTHER> 335,784
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 274,727,531
<PAYABLE-FOR-SECURITIES> 4,215,369
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,040,289
<TOTAL-LIABILITIES> 5,255,658
<SENIOR-EQUITY> 210,677
<PAID-IN-CAPITAL-COMMON> 248,564,650
<SHARES-COMMON-STOCK> 14,606,441
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,049,575)
<ACCUMULATED-NET-GAINS> 1,416,867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,329,254
<NET-ASSETS> 186,802,168
<DIVIDEND-INCOME> 4,975,808
<INTEREST-INCOME> 281,759
<OTHER-INCOME> 0
<EXPENSES-NET> 2,773,379
<NET-INVESTMENT-INCOME> 2,484,188
<REALIZED-GAINS-CURRENT> 1,416,867
<APPREC-INCREASE-CURRENT> 20,329,254
<NET-CHANGE-FROM-OPS> 24,230,309
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,361,916)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,390,867
<NUMBER-OF-SHARES-REDEEMED> (872,929)
<SHARES-REINVESTED> 88,493
<NET-CHANGE-IN-ASSETS> 269,371,573
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,077,321
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,812,531
<AVERAGE-NET-ASSETS> 89,845,649
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .23
<PER-SHARE-GAIN-APPREC> 2.89
<PER-SHARE-DIVIDEND> (.33)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.79
<EXPENSE-RATIO> 2.44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND
<SERIES>
<NUMBER> 013
<NAME> CLASS C SHARES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 250,934,927
<INVESTMENTS-AT-VALUE> 269,770,783
<RECEIVABLES> 4,620,964
<ASSETS-OTHER> 335,784
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 274,727,531
<PAYABLE-FOR-SECURITIES> 4,215,369
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,040,289
<TOTAL-LIABILITIES> 5,255,658
<SENIOR-EQUITY> 210,677
<PAID-IN-CAPITAL-COMMON> 248,564,650
<SHARES-COMMON-STOCK> 3,340,549
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,049,575)
<ACCUMULATED-NET-GAINS> 1,416,867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,329,254
<NET-ASSETS> 42,718,693
<DIVIDEND-INCOME> 4,975,808
<INTEREST-INCOME> 281,759
<OTHER-INCOME> 0
<EXPENSES-NET> 2,773,379
<NET-INVESTMENT-INCOME> 2,484,188
<REALIZED-GAINS-CURRENT> 1,416,867
<APPREC-INCREASE-CURRENT> 20,329,254
<NET-CHANGE-FROM-OPS> 24,230,309
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (494,739)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,538,401
<NUMBER-OF-SHARES-REDEEMED> (210,915)
<SHARES-REINVESTED> 13,053
<NET-CHANGE-IN-ASSETS> 269,371,573
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,077,321
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,812,531
<AVERAGE-NET-ASSETS> 19,241,870
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .23
<PER-SHARE-GAIN-APPREC> 2.89
<PER-SHARE-DIVIDEND> (.33)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.79
<EXPENSE-RATIO> 2.43
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND
<SERIES>
<NUMBER> 014
<NAME> ADVISOR CLASS SHARES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 250,934,927
<INVESTMENTS-AT-VALUE> 269,770,783
<RECEIVABLES> 4,620,964
<ASSETS-OTHER> 335,784
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 274,727,531
<PAYABLE-FOR-SECURITIES> 4,215,369
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,040,289
<TOTAL-LIABILITIES> 5,255,658
<SENIOR-EQUITY> 210,677
<PAID-IN-CAPITAL-COMMON> 248,564,650
<SHARES-COMMON-STOCK> 180,483
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,049,575)
<ACCUMULATED-NET-GAINS> 1,416,867
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,329,254
<NET-ASSETS> 2,313,268
<DIVIDEND-INCOME> 4,975,808
<INTEREST-INCOME> 281,759
<OTHER-INCOME> 0
<EXPENSES-NET> 2,773,379
<NET-INVESTMENT-INCOME> 2,484,188
<REALIZED-GAINS-CURRENT> 1,416,867
<APPREC-INCREASE-CURRENT> 20,329,254
<NET-CHANGE-FROM-OPS> 24,230,309
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (38,879)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 198,970
<NUMBER-OF-SHARES-REDEEMED> (31,599)
<SHARES-REINVESTED> 3,112
<NET-CHANGE-IN-ASSETS> 269,371,573
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,077,321
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,812,531
<AVERAGE-NET-ASSETS> 1,282,888
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .35
<PER-SHARE-GAIN-APPREC> 2.88
<PER-SHARE-DIVIDEND> (.41)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.82
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Corporation
Subject to Rule 10f-3 Under the Investment Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOD SEPTEMBER 1, 1996 THROUGH
NOVEMBER 30, 1997
REAL ESTATE INVESTMENT TRUST FUND
Date Shares % of Fund Price per
Security Purchased Purchased Assets (1) Share
Glenborough
Realty Trust 10/02/96 18,000 1.81% $13.88
Total
Shares Shares % of Issue Shares
Purchased By Issued Purchased Held
Fund Group (000) By Group (2) Broker(s) 11/30/96
61,000 3,500 1.74% 57,500
1 Purchase may not exceed 3% of Fund's Total Assets.
2. Purchases by all Alliance Funds may not exceed the greater of (i) 4% of
the principal amount of the offering or (ii) $500,000 in principal amount
but in no event may exceed 10% of the principal amount of the offering.
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Corporation
Subject to Rule 10f-3 Under the Investment Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOD DECEMBER 1, 1996 THROUGH
FEBRUARY 28, 1997
REAL ESTATE INVESTMENT TRUST FUND
Date Shares % of Fund Price per
Security Purchased Purchased Assets (1) Share
Essex Property Trust 12/18/96 4,500 0.27% $27.75
Spieker Properties 01/21/97 7,000 0.25% $34.50
Kilroy Realty 01/28/97 23,500 0.52% $23.00
Total
Shares Shares % of Issue Shares
Purchased By Issued Purchased Held
Fund Group (000) By Group (2) Broker(s) 02/28/97
5,000 2,450 0.20% Merrill Lynch 156,000
212,000 10,000 2.12% Prudential 98,000
25,600 12,500 0.20% Prudential 31,500
1. Purchase may not exceed 3% of Fund's Total Assets.
2. Purchases by all Alliance Funds may not exceed the greater of (i) 4% of
the principal amount of the offering or (ii) $500,000 in principal amount
but in no event may exceed 10% of the principal amount of the offering.
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Corporation
Subject to Rule 10f-3 Under the Investment Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOD MARCH 1, 1997 THROUGH MAY 31, 1997
REAL ESTATE INVESTMENT TRUST FUND
Date Shares % of Fund Price per
Security Purchased Purchased Assets (1) Share
Beacon Properties
Corp. 04/10/97 26,000 0.48% $32.13
Crescent Real Estate
Equities Co 04/22/97 16,000 0.23% $25.38
Reckson Associates
Realty Corp. 03/06/97 7,000 0.23% $45.25
Total
Shares Shares % of Issue Shares
Purchased By Issued Purchased Held
Fund Group (000) By Group (2) Broker(s) 05/31/97
26,800 7,000 0.38% Merrill Lynch 243,000
17,000 21,000 0.08% Merrill Lynch 316,000
7,000 4,300 0.16% Merrill Lynch 318,000
1. Purchase may not exceed 3% of Fund's Total Assets.
2. Purchases by all Alliance Funds may not exceed the greater of (i) 4% of
the principal amount of the offering or (ii) $500,000 in principal amount
but in no event may exceed 10% of the principal amount of the offering.
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Corporation
Subject to Rule 10f-3 Under the Investment Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOD JUNE 1, 1997 THROUGH AUGUST 31, 1997
REAL ESTATE INVESTMENT TRUST FUND
Date Shares % of Fund Price per
Security Purchased Purchased Assets (1) Share
Equity Office
Properties 07/07/97 41,700 0.34% $21.00
CCA Prison Realty 07/15/97 8,000 0.06% $21.00
Arden Realty 07/17/97 14,000 0.14% $26.13
Brandywine Realty 07/22/97 15,000 0.12% $20.75
Pan Pacific 08/08/97 149,700 1.06% $19.50
SL Green Realty 08/15/97 65,700 0.50% $21.00
Total
Shares Shares % of Issue Shares
Purchased By Issued Purchased Held
Fund Group (000) By Group (2) Broker(s) 08/31/97
85,900 25,000 0.34% Merrill Lynch 236,000
46,000 18,500 0.25% J. C. Bradford 0
265,100 12,000 2.21% Lehman Brothers 286,000
15,500 10,000 0.16% Smith Barney 402,000
157,600 7,000 2.25% Pru-Bache 281,000
284,800 10,100 2.82% Lehman Brothers 281,000
1. Purchase may not exceed 3% of Fund's Total Assets.
2. Purchases by all Alliance Funds may not exceed the greater of (i) 4% of
the principal amount of the offering or (ii) $500,000 in principal amount
but in no event may exceed 10% of the principal amount of the offering.
Report to Independent Auditors
To the Shareholders and Board of Directors of
Alliance Real Estate Investment Fund, Inc.
In planning and performing our audit of the financial statements of Alliance
Real Estate Investment Fund, Inc. for the year ended August 31, 1997, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide assurance on the
internal control.
The management of Alliance Real Estate Investment Fund, Inc. is responsible
for establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to the risk
that it may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily disclose
all matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted
no matters involving the internal control and its operation, including
controls for safeguarding securities, that we consider to be material
weaknesses as defined above at August 31, 1997.
This report is intended solely for the information and use of the board of
directors and management of Alliance Real Estate Investment Fund, Inc. and
the Securities and Exchange Commission.
/s/ERNST & YOUNG LLP
New York, New York
October 7, 1997