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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE JEFFREY C. NELLESSEN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001031659
<NAME> SECURITY CAPITAL EMPLOYEE REIT FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 103,583
<INVESTMENTS-AT-VALUE> 107,127
<RECEIVABLES> 2,426
<ASSETS-OTHER> 134
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 109,687
<PAYABLE-FOR-SECURITIES> 1,952
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 324
<TOTAL-LIABILITIES> 2,276
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 103,864
<SHARES-COMMON-STOCK> 10,002
<SHARES-COMMON-PRIOR> 987
<ACCUMULATED-NII-CURRENT> 23
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (20)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,544
<NET-ASSETS> 107,411
<DIVIDEND-INCOME> 2,735
<INTEREST-INCOME> 15
<OTHER-INCOME> 0
<EXPENSES-NET> 229
<NET-INVESTMENT-INCOME> 2,521
<REALIZED-GAINS-CURRENT> (20)
<APPREC-INCREASE-CURRENT> 3,248
<NET-CHANGE-FROM-OPS> 5,749
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,522
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,780
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 235
<NET-CHANGE-IN-ASSETS> 97,164
<ACCUMULATED-NII-PRIOR> 24
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 168
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 239
<AVERAGE-NET-ASSETS> 75,644
<PER-SHARE-NAV-BEGIN> 10.38
<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> 0.25
<PER-SHARE-DIVIDEND> 0.26
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.74
<EXPENSE-RATIO> 0.61
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Security Capital REIT Fund Incorporated
Form N-SAR Report for the Period Ended 6/30/97
Item 77-I
Security Capital REIT Fund Incorporated ("SC-ERF") was
incorporated as a Maryland corporation on January 23, 1997. The
Fund commenced operations on December 20, 1996. The following
describes the rights of the shares of SC-ERF.
SC-ERF was formed under the laws of Maryland on January 23,
1997. The Board of Directors is authorized to issue 50,000,000
shares of common stock, $.01 par value per share. SC-ERF is
registered with the Securities and Exchange Commission as a
non-diversified, no-load, open-end management investment company.
Each share of SC-ERF has equal voting, dividend, distribution
and liquidation rights. SC-ERF's shares have no preemptive,
conversion, exchange or redemption rights. All shares of SC-ERF,
when duly issued, will be fully paid and nonassessable.
Shareholders are entitled to one vote per share. All voting
rights are noncumulative. Therefore, the holders of more than
50 percent of the shares voting for the election of Directors
can elect all the Directors then nominated for election.
The Board of Directors is authorized to reclassify and issue
any unissued shares of SC-ERF without shareholder approval.
Accordingly, in the future, the Directors may create additional
series of shares with different investment objectives, policies
or restrictions. Any issuance of shares of another class would
be governed by Maryland law.
If the holders of a majority of the outstanding shares of
SC-ERF shall vote at any time to wind up and liquidate SC-ERF,
no further shares of SC-ERF shall be issued, sold or purchased
by SC-ERF, and the Board of Directors shall immediately proceed
to wind up SC-ERF's affairs, liquidate the assets, pay all
liabilities and expenses of SC-ERF, and distribute the remaining
assets, if any, among the shareholders in proportion to their
holding of shares. The Board of Directors shall also do any
other acts necessary to secure and complete the dissolution of
SC-ERF.
Security Capital Employee REIT Fund
Incorporated
Form N-SAR Report for the Period Ended 6/30/97
The following are incorporated by reference:
Item 77-Q1(a) Bylaws - Form N-1A Registration Statement, Part
C, Item 24(b), Exhibit 2
Item 77-Q1(e) Advisory Agreement - Pre-Effective Amendment No.
1, Part C, Item 24(b), Exhibit 5
