EVERGREEN GLOBAL REAL ESTATE EQUITY TRUST, N-30D, 1995-12-08

EVERGREEN GLOBAL REAL ESTATE EQUITY TRUST
N-30D, 1995-12-08

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<PAGE>

EVERGREEN
GLOBAL REAL ESTATE
EQUITY FUND

(Photos of money, a globe, and flags waving in the wind appear on this page)

1995 ANNUAL REPORT

(EVERGREEN TREE LOGO)
EVERGREEN
FUNDS

<PAGE>

EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
TABLE OF CONTENTS

<TABLE>
<C> <S> <C>
A Review of the Past Year
and Prospects for the Future.............................................. 1
(Photo of a globe) EVERGREEN GLOBAL REAL A Report From Your Portfolio Manager...................................... 3
ESTATE EQUITY FUND Results to Date........................................................... 5
Statement of Investments.................................................. 6
Statement of Assets and Liabilities -- October 31, 1995................... 10
Statement of Assets and Liabilities -- September 30, 1995................. 11
Statement of Operations................................................... 12
Statement of Changes in Net Assets........................................ 13
Financial Highlights...................................................... 14
Notes to Financial Statements............................................. 16
Report of Independent Accountants --
Price Waterhouse LLP...................................................... 20
Trustees and Officers..................................................... IBC
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
A REVIEW OF THE PAST YEAR
AND PROSPECTS FOR THE FUTURE
BY STEPHEN A. LIEBER, CHAIRMAN OF
EVERGREEN ASSET MANAGEMENT CORP.
In projecting the outlook for the United States
economy in the final months of 1995, one central fact (Photo of Stephen
dominates the discussion; inflation is being held to A. Lieber)
the very low single digits. For a nation which has
for over twenty-five years, been
preoccupied in all economic forecasting with apprehension over the outlook for
inflation, this is a period of remarkable calm. Instead of concerns over
inflation, the dominant anxiety with which investors look to the future, is now
that of the price level of securities; stocks and bonds. That price level,
however, is a reflection of changing perceptions of the inflation risk.
Comparison of inflation rates, interest rates, and equity valuation, at the
beginning of the long-bull market which began in the summer of 1982, clarifies
these points. The inflation rate fell from 7.2% in the second quarter of 1982,
to 2.5% in the third quarter of 1995. Thirty-year U.S. Treasury Bond yields fell
from 12.97% to 6.52%, and 90-day U.S. Treasury Bill rates from 11.91% to 5.31%,
while price/earnings ratios have risen (on the S&P 500 Stock Index) from 7.8
times to 16.6 times. Clearly, both bonds and stocks are worth more in this
environment of lowered inflation and reduced inflationary expectations.
Thus far, in 1995, the hoped for "soft landing" of the economy into a slower,
non-inflationary expansion has been achieved. The issue of its future course is,
however, open to analysis and debate. There can be little debate over today's
cautious policies. There is a broad acceptance of the need to sustain low
leverage financial policies; minimizing the build-up of debt by both government
and industry, accelerating productivity gains, and economizing resources. This
is not only an anti-inflationary mentality, but it is also a conservative,
counter-expansionary economic growth policy. Politicians are prouder of
cut-backs than of expansion in public services. Businessmen boast of "re-
engineering" which results in lay-offs, rather than of hiring. When new
facilities are built, they are described as enhancers of productivity, not just
as producers of products or services. Business and labor alike think of their
pricing as competing in the world market. Industry wants to sell in the world
markets, and labor does not want to be outpriced by alternative manufacturing
sources in low labor cost countries. These policies push productivity,
price-restraint, and wage-restraint.
Policies of restraint, evident in so many sectors of the economy, lead some
observers to apprehensions that they will be over-done. If consumer demand slows
and business inventories build, it is argued, then a cycle of manufacturing
cutbacks will lead to accelerating lay-offs and another recessionary period. The
counter-argument holds that there are enough dynamic growth potentials on the
horizon for consumer products and services, and for increasing exports, so that
this negative prediction will not be realized. This positive point of view looks
to the increasing demand for American products, particularly technologically
sophisticated consumer and capital goods products, and the output of our
multi-national corporations which sell products in developing countries to
accelerate demand for our exports. It holds that the rapid technological change,
notably in electronics and communications, is bringing enough new demand from
both the industrial and the consumer sectors to act as the catalyst for overall
consumer and industrial goods demand growth.
Whether the "soft landing" scenario continues in the next few months, and the
economy shows modest expansion, or a slowdown begins to emerge, the likelihood
is that inflation will remain under control. This provides for a continuing
pattern of the recently lowered interest rate levels. Whether long-term and
short-term interest rates move significantly lower than today's 6.3%, 30-year
U.S. Treasury Bonds, and 5.5%, 1-year U. S. Treasury Bills, depends not only on
the strengthening or weakening of the domestic economy, but also on the
comparative interest rates being paid by other major industrial nations, and the
stability of the dollar. Our interest rates must be in equilibrium with others,
when adjusted for their inflation rates and the value of our currency.
Presently, the trends in
1

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
A REVIEW OF THE PAST YEAR AND
PROSPECTS FOR THE FUTURE -- (CONTINUED)
the major industrial countries, Germany and Japan, suggest continued slower
growth than that recently experienced by the American economy, with prospective
declining inflationary trends. This should enable the United States Federal
Reserve to retain sufficient flexibility, so that rates can be brought down if
the economy slows too rapidly and, thus, to sustain our economic strength
without being externally pressured toward unreasonably high interest rates.
We believe that the general level of valuation of both stocks and bonds is
likely to be sustained. Individual equity issues will, of course, reflect
prevailing business conditions. Emphasis in owning equities, we believe, should
be on powerful business franchises, companies with both leadership and dynamic
growth characteristics, providing vital services or products. On average, the
level of equities valuation is in line with current interest rate trends, but,
it is apparent that large sectors of the market are priced on highly optimistic
growth expectations. These sectors and issues are subject to quick and major
downward revaluation to the extent that their businesses fail to show strong
evidence of continued high growth rates. As the economy remains slower than over
the past two years, it will evidently be more difficult to show extraordinary
growth rates. Therefore, we anticipate a renewed interest in those businesses
which are undervalued in terms of their growth potential, especially those
beginning, or, in process of, programs for profit margin improvement and profits
growth.
We continue to believe that the merger and acquisition trend will continue,
as larger companies seek to capitalize on opportunities for economies of scale
and synergies through mergers and acquisitions. This movement, already strong,
is expected to broaden as a deregulatory atmosphere continues to develop through
new legislative initiatives.
In summary, we anticipate an environment where careful selection of equities
and careful analysis of current economic trends in fixed income investing will
combine to sustain rewarding long-term investment programs.
2

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND

(Photo of globe)

A REPORT FROM YOUR
PORTFOLIO MANAGER
SAMUEL A. LIEBER
Evergreen Global Real Estate Equity Fund's fiscal year-end
has changed from September 30 to October 31. This change was (Photo of
made so that the Fund's fiscal year-end would coincide with Samuel A. Lieber)
those of Evergreen's other International/Global Funds. This
report will cover the periods through both of the fiscal
year-ends.
For the twelve-month period through September 30, 1995, only
U.S. real estate investment trusts (REITs), +10%, and Australian
property trusts, +1%, posted positive returns. The first nine
months of 1995 saw property shares in Japan, Australia, and the
U.K. barely positive, while in the U.S., property shares were up
10.5%, and in Hong Kong
they were up 24.8%. However, during the first calendar quarter
of 1995 and the last two months of the fiscal year, the Fund underperformed the
overall global index largely because we had a relatively low proportion invested
in Hong Kong, the only property share market which performed strongly during
these periods, (+12% and +14%, respectively). Even though Hong Kong typically
constitutes between just 0.7% (GDP-weighted) and 1.8% (stock market
capitalization-weighted) of most global multi-industry stock indices, the major
global property share indices currently place a 40% to 43% weighting in Hong
Kong*. During the year, the Fund's investment in Hong Kong varied between 3% and
5% of net assets. In this context, when Hong Kong outperforms other real estate
share markets, the Fund may underperform as it had during these periods.
Conversely, when Hong Kong underperforms, the Fund may outperform. (For
additional Fund performance information, please see page five.) As you will see
from our portfolio weightings, no country outside of the U.S. represents more
than 10% of the Fund. We would not expect any one country, aside from the U.S.,
to represent more than 20%, as we are committed to a broadly diversified
investment policy as opposed to placing large concentrated bets. The table below
illustrates the investment diversification by country, as a percent of total
equity investments.
<TABLE>
<CAPTION>
OCTOBER 31, 1995 SEPTEMBER 30, 1995
<S> <C> <C> <C>
United States 35.3% 35.5%
Japan 9.8 9.6
Philippines 9.0 9.6
France 7.5 7.3
Germany 7.1 7.0
Thailand 4.3 4.4
Spain 4.2 4.4
Hong Kong 3.4 3.2
United Kingdom 3.1 3.1
Denmark 2.9 2.6
Argentina 2.5 2.7
Malaysia 1.9 2.1
Singapore 1.8 1.7
Mexico 1.6 2.0
Belgium 1.4 1.4
South Korea 1.4 1.3
Indonesia 1.1 .8
Taiwan .6 .6
Canada .6 .6
Norway .4 --
Australia .1 .1
100.0% 100.0%
</TABLE>

FIGURES REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS.
THIS FUND MAY NOT BE SUITABLE FOR ALL INVESTORS DUE TO CERTAIN RISKS INHERENT IN
INTERNATIONAL INVESTING, SUCH AS CURRENCY FLUCTUATIONS
AND POLITICAL INSTABILITY.
* MSCI WORLD REAL ESTATE INDEX AND MSCI GLOBAL REAL ESTATE INDEX,
RESPECTIVELY. 11/95
3

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)

Although we expect continued volatility in several countries over the next
one or two quarters, we anticipate that the property share price corrections
which, for the most part, began in January and February of 1994, are almost
over.
Despite difficult market conditions abroad, the Fund has benefited from
several strong stock performances in the U.S., the Philippines and England.
During the preceding 12 months, as values rose for modern offices in London's
West End, Greycoat's share price rose 26%. In Manila, Megaworld's shares rose
67% as its new office and apartment developments were well received, while SM
Prime's stock rose 38% as its shopping malls performed well. In the U.S.,
Continental Homes rose 36% despite the decline of homebuilding shares in the
Fall of 1994. We have also seen positive returns in purchases such as Filinvest
Land (Philippines), +75% from purchase in March, and U.S. Homes, +40% since its
initial purchase in February.
The Fund's recent strategy has been to increase its weighting into those
markets of Europe which we believe to be underdeveloped, by shifting investments
from the U.S. where we have enjoyed superior performance. In light of current
property share valuations, the pace of various economic and real estate cycles,
the direction of global liquidity flows, and relative stock market performance,
we believe that European property share markets should start to outperform
during the next year, perhaps even beginning this quarter. Selectively, certain
Asian markets soon may also start to perform better after enduring a correction
during the previous twenty-two months. Japan is a bigger question, with regard
to the long-term performance prospects that are dependent upon the country's
banking situation being adequately resolved. The U.S. market has generally been
strong for property shares, and as long as interest rates remain at current
levels or trend lower, we are very comfortable with the prospects for excellent
returns over the next couple of quarters.
We believe that global real estate values and share prices will continue to
improve, aided by lower interest rates in the U.S. and abroad, as well as by the
much delayed economic recovery in Europe and Japan where historically high
unemployment and high real interest rates have depressed both rents and real
estate prices not only to levels well below the peak of the 1980s, but even
below long-term historic trends. In this context, we have recently identified
and analyzed several new investment opportunities which should do well, even if
only a modest recovery ensues. Economic growth in Southeast Asia will continue
to be a major force, as the combination of growing populations, rising standards
of living and pro-business governments will continue to drive economic growth
and, hence, enhance the demand for real estate. The Fund will continue to
position its holdings in an effort to benefit from this growth.
October 1995 was characterized by the same international trends as September.
Stock markets were generally flat to negative in Europe, and moved progressively
downward in the emerging markets of Latin America and Southeast Asia. Japan was
flat, while REIT shares in the U.S. showed a noticeable decline from September
highs.
Major changes have been made in the portfolio subsequent to the October 31
year-end. We believe these changes have better positioned the Fund to benefit
from the severely oversold conditions in the emerging market stock exchanges and
the long-term trend of falling interest rates throughout much of the world.
Positive results have already been seen during the latter weeks of November. We
look forward to reporting to you on Evergreen Global Real Estate Equity Fund
over the next six months.
4

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)

RESULTS TO DATE
PERFORMANCE OF $10,000 INVESTED IN THE
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
The graphs below compare a $10,000 investment in the Evergreen Global Real
Estate Equity Fund (Class A, Class B, Class C and Class Y Shares) with a similar
investment in the MSCI World, MSCI Global Real Estate and Wilshire Real Estate
Indices ("Indices").

CLASS A
AVERAGE ANNUAL TOTAL RETURN
SINCE INCEPTION=-3.8%

(Class A Average Annual Total Return chart appears here, plot points are as
follows)

MSCI WORLD INDEX 10,000 10,598 11,003 11,571 11,371
MSCI GLOBAL REAL ESTATE INDEX 10,000 10,876 11,433 11,719 11,482
WILSHIRE REAL ESTATE INDEX 10,000 10,373 10,824 11,337 10,986
GLOBAL REAL ESTATE EQUITY FUND 9,525 8,910 9,891 10,074 9,625

</TABLE>

CLASS B
AVERAGE ANNUAL TOTAL RETURN
SINCE INCEPTION=-4.2%

(Class B Average Annual Total Return chart appears here, plot points are as
follows)

</TABLE>

CLASS C
AVERAGE ANNUAL TOTAL RETURN
SINCE INCEPTION=-0.1%

(Class C Average Annual Total Return chart appears here, plot points are as
follows)
<TABLE>
<CAPTION>
2/10/95* 3/31/95 6/30/95 9/30/95 10/31/95
<S> <C> <C> <C> <C> <C>

</TABLE>

CLASS Y
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR=-9.7%
FIVE YEAR=8.3%
SINCE INCEPTION=3.8%

(Class Y Average Annual Total Return chart appears here, plot points are as
follows)

<TABLE>
<CAPTION>
2/1/89* 10/31/89 10/31/90 10/31/91 10/31/92 10/31/93 10/31/94 10/31/95
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MSCI WORLD INDEX 10,000 10,448 9,096 10,322 9,584 11,956 12,661 13,628
MSCI GLOBAL REAL ESTATE INDEX 10,000 9,389 6,837 7,727 6,667 10,234 10,688 10,144
WILSHIRE REAL ESTATE INDEX 10,000 10,204 6,509 7,702 8,179 10,442 9,792 10,778
GLOBAL REAL ESTATE EQUITY FUND 10,000 9,918 8,737 9,221 9,428 14,777 14,382 12,989

</TABLE>

*Commencement of class operations.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE RESULTS. MUTUAL FUNDS
ARE NOT OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK AND ARE NOT FEDERALLY
INSURED.
For the purposes of the graphs and the accompanying tables, it has been
assumed that (a) the maximum sales charge of 4.75% was deducted from the initial
$10,000 investment in Class A Shares; (b) the maximum applicable contingent
deferred sales charge was deducted from the value of the investment in Class B
and Class C Shares, assuming full redemption on October 31, 1995; (c) all
recurring fees (including investment advisory fees) net of fee waivers and
reimbursements were deducted; and (d) all dividends and distributions were
reinvested.
The indices are unmanaged indices and include the reinvestment of income,
but do not reflect the payment of transaction costs and advisory fees associated
with an investment in the Fund.
5

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
OCTOBER 31, 1995 SEPTEMBER 30, 1995
% OF
SHARES VALUE NET ASSETS SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
EQUITY SECURITIES#
ARGENTINA
* Inversiones Y Representaciones.................. 273,437 $ 574,160 273,437 $ 653,514
Inversiones Y Representaciones GDS.............. 47,500 997,500 47,500 1,140,000
1,571,660 2.6% 1,793,514
AUSTRALIA
Walker Corp..................................... 153,589 52,647 .1% 244,000 105,109
BELGIUM
Bernheim-Comofi................................. 7,342 412,258 7,342 415,797
Immobiliere de Belgique......................... 6,000 429,164 6,000 498,980
841,422 1.4% 914,777
CANADA
Monarch Development Corp........................ 70,000 365,726 .6% 70,000 397,106
DENMARK
Thorkild Kristensen............................. 29,550 1,622,438 29,550 1,679,280
* Thorkild Kristensen Rights expiring
11/15/95...................................... 29,550 140,611 --
1,763,049 2.9% 1,679,280
FRANCE
* Simco Registered Shares......................... 11,000 888,530 11,000 844,350
Simco Registered New Ordinary Shares+........... 576 42,993 576 44,213
Societe Du Louvre............................... 51,078 1,514,552 51,078 1,649,183
Societe Financiere Interbail.................... 8,000 508,783 8,000 527,972
Unibail......................................... 18,450 1,699,705 18,450 1,693,451
4,654,563 7.6% 4,759,169
GERMANY
German City Estates N.V......................... 110,500 1,785,873 110,500 1,857,897
Kampa-Haus AG................................... 65,897 2,616,967 65,897 2,743,787
4,402,840 7.1% 4,601,684
HONG KONG
CDL Hotels International Ltd.................... 2,194,600 993,456 2,194,600 993,456
China Overseas Land &
Investment Ltd................................ 2,000,000 362,145 2,000,000 367,319
Hon Kwok Land
Investment Co., Ltd........................... 2,452,560 745,440 2,452,560 753,370
2,101,041 3.4% 2,114,145
INDONESIA
* P.T. Jakarta International
Hotels and Development........................ 500,000 688,023 1.1% 500,000 557,272
</TABLE>

% OF
NET ASSETS

EQUITY SECURITIES#
ARGENTINA
* Inversiones Y Representaciones..................
Inversiones Y Representaciones GDS..............
2.6%
AUSTRALIA
Walker Corp..................................... .2%

BELGIUM
Bernheim-Comofi.................................
Immobiliere de Belgique.........................
1.3%
CANADA
Monarch Development Corp........................ .6%
DENMARK
Thorkild Kristensen.............................
* Thorkild Kristensen Rights expiring
11/15/95......................................
2.5%

FRANCE
* Simco Registered Shares.........................
Simco Registered New Ordinary Shares+...........
Societe Du Louvre...............................
Societe Financiere Interbail....................
Unibail.........................................
7.0%

GERMANY
German City Estates N.V.........................
Kampa-Haus AG...................................
6.8%

HONG KONG
CDL Hotels International Ltd....................
China Overseas Land &
Investment Ltd................................
Hon Kwok Land
Investment Co., Ltd...........................
3.1%

INDONESIA
* P.T. Jakarta International
Hotels and Development........................ .8%

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF INVESTMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
OCTOBER 31, 1995 SEPTEMBER 30, 1995
% OF
SHARES VALUE NET ASSETS SHARES VALUE
<S> <C> <C> <C> <C> <C> <C>
JAPAN
Chubu Sekiwa Real Estate, Ltd................... 22,000 $ 290,337 22,000 $ 284,287
Daibiru Corp.................................... 127,000 1,297,168 127,000 1,448,791
Diamond City Co., Ltd........................... 190,000 1,132,998 190,000 1,116,350
Kansai Sekiwa Real Estate Co.................... 121,000 2,010,851 121,000 2,027,762
Tachihi Enterprise Co., Ltd..................... 47,000 1,332,421 47,000 1,409,217
6,063,775 9.8% 6,286,407
MALAYSIA
Asiatic Development Berhad...................... 672,000 661,157 672,000 724,968
IOI Properties Berhad........................... 168,300 354,351 168,300 479,039
* IOI Properties Berhad Warrants
expiring 5/18/98 @ MR2.75..................... 79,200 128,104 79,200 161,584
1,143,612 1.9% 1,365,591
MEXICO
* Grupo Posadas, S.A. de C.V. A Shares............ 930,000 293,684 930,000 364,420
* Grupo Posadas, S.A. de C.V. L Shares............ 1,930,000 566,133 1,930,000 741,144
* Grupo Situr, S.A. de C.V. Class B............... 463,746 136,032 463,746 199,891
995,849 1.6% 1,305,455
NORWAY
Steen + Strom................................... 15,200 234,334 .4% -- --
PHILIPPINES
* Filinvest Land, Inc............................. 2,500,000 672,818 2,500,000 805,987
* Megaworld Properties and Holdings............... 4,199,590 2,098,988 4,949,590 2,564,554
* Robinson's Land Corp. Class B................... 5,961,000 882,347 5,961,000 846,505
* SM Prime Holdings, Inc.......................... 7,075,000 1,904,277 7,082,750 2,120,340
5,558,430 9.0% 6,337,386
SINGAPORE
Hotel Grand Central Ltd......................... 1,045,000 1,124,348 1.8% 1,045,200 1,153,010
SOUTH KOREA
* Chosun Brewery Co............................... 18,000 653,989 18,000 642,020
* Chosun Brewery Co. Ordinary New Shares.......... 5,505 187,781 5,505 186,319
841,770 1.4% 828,339
SPAIN
* Inmobilaria Urbis S.A........................... 80,000 388,022 80,000 419,350
* Sotogrande S.A.................................. 439,993 868,775 439,993 1,028,620
Vallehermoso S.A................................ 80,000 1,294,498 80,000 1,410,775
2,551,295 4.1% 2,858,745
</TABLE>

JAPAN
Chubu Sekiwa Real Estate, Ltd...................
Daibiru Corp....................................
Diamond City Co., Ltd...........................
Kansai Sekiwa Real Estate Co....................
Tachihi Enterprise Co., Ltd.....................
9.3%
MALAYSIA
Asiatic Development Berhad......................
IOI Properties Berhad...........................
* IOI Properties Berhad Warrants
expiring 5/18/98 @ MR2.75.....................
2.0%
MEXICO
* Grupo Posadas, S.A. de C.V. A Shares............
* Grupo Posadas, S.A. de C.V. L Shares............
* Grupo Situr, S.A. de C.V. Class B...............
1.9%

NORWAY
Steen + Strom................................... 9.3%
PHILIPPINES
* Filinvest Land, Inc.............................
* Megaworld Properties and Holdings...............
* Robinson's Land Corp. Class B...................
* SM Prime Holdings, Inc..........................
1.7%
SINGAPORE
Hotel Grand Central Ltd......................... 1.2%
SOUTH KOREA
* Chosun Brewery Co...............................
* Chosun Brewery Co. Ordinary New Shares..........

SPAIN
* Inmobilaria Urbis S.A...........................
* Sotogrande S.A..................................
Vallehermoso S.A................................
4.2%

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF INVESTMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
OCTOBER 31, 1995 SEPTEMBER 30, 1995
% OF % OF
SHARES VALUE NET ASSETS SHARES VALUE NET ASSETS
<S> <C> <C> <C> <C> <C> <C> <C>
TAIWAN
* Tuntex Distinct Corp. GDS....................... 61,513 $ 384,456 .6% 51,261 $ 384,458 .6%
THAILAND
Hemeraj Land and Development
Public Co., Ltd............................... 123,700 535,796 123,700 532,361
MK Real Estate Development
Public Co., Ltd............................... 155,600 414,274 155,600 465,033
Property Perfect Co., Ltd....................... 45,400 351,798 45,400 434,190
Saha Pathana Inter-Holdings Co.................. 400,000 739,122 400,000 769,078
* Sammakorn Co., Ltd.............................. 214,400 630,463 214,400 679,211
2,671,453 4.3% 2,879,873 4.3%
UNITED KINGDOM
Capital and Regional Properties PLC............. 81,000 201,059 81,000 207,331
Ex-Lands PLC.................................... 701,921 260,793 701,921 227,356
Greycoat PLC.................................... 500,000 1,083,004 500,000 1,181,071
Hemingway Properties PLC........................ 1,000,000 355,731 1,000,000 398,957
* Tops Estates PLC Warrants, expiring 8/21/00 @
(pounds sign)240............................. 100,000 14,229 100,000 14,220
1,914,816 3.1% 2,028,935 3.0%
UNITED STATES
* Alexander's, Inc................................ 46,900 2,931,250 46,900 2,825,725
Chelsea GCA Realty, Inc......................... 48,000 1,332,000 48,000 1,434,000
Chicago Dock & Canal Trust...................... 30,000 326,250 30,000 363,750
Continental Homes Holding Corp.................. 199,700 4,093,850 199,700 4,193,700
Crown American Realty Trust..................... -- -- 40,000 330,000
Engle Homes, Inc................................ -- -- 54,700 478,625
Evans Withycombe Residential, Inc............... 30,000 566,250 30,000 607,500
Gables Residential Trust........................ 64,000 1,376,000 64,000 1,440,000
HGI Realty, Inc................................. 196,816 4,354,554 196,816 4,723,584
Kranzco Realty Trust............................ 32,100 489,525 32,100 541,688
* M/I Schottenstein Homes, Inc.................... 95,800 1,137,625 95,800 981,950
* Presley Companies............................... 258,100 483,938 258,100 516,200
* Southern Energy Homes, Inc...................... 42,500 626,875 42,500 674,688
Standard Pacific Corp........................... 81,400 529,100 90,000 630,000
Storage Equities, Inc........................... 25,000 459,375 25,000 465,625
* Sunstone Hotel Investors, Inc................... 15,000 135,000 15,000 144,375
Tanger Factory Outlet Centers Inc............... 34,000 799,000 34,000 845,750
Tucker Properties Corp.......................... 43,100 398,675 43,100 479,487
* U.S. Home Corp.................................. 13,800 370,875 13,800 345,000
* U.S. Home Corp. Warrants, expiring
6/22/98 @ $20................................. 39,000 394,875 39,000 346,125
* Washington Homes, Inc........................... 180,200 968,574 180,200 901,000
21,773,591 35.4% 23,268,772 34.3%
TOTAL EQUITY SECURITIES
(COST $65,468,427 AND $66,542,981, RESPECTIVELY).......... 61,698,700 100.2% 65,619,027 96.7%
SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATION
Federal Farm Credit Bank
5.70%, 10/20/95 (cost $199,398)........................... -- -- 200,000 199,398 .3%
TOTAL INVESTMENTS
(COST $65,468,427 AND $66,742,379, RESPECTIVELY).......... 61,698,700 100.2% 65,818,425 97.0%
</TABLE>
8

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF INVESTMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
OCTOBER 31, 1995 SEPTEMBER 30, 1995
% OF OF %
QUANTITY VALUE NET ASSETS QUANTITY VALUE NET ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOREIGN CURRENCIES
Australian Dollar................. AUD 16,581 $ 12,630 16,540 $ 12,500
Belgian Franc..................... BEL 272 9 1,322,951 44,998
British Pound..................... GBP 719 1,137 717 1,133
Canadian Dollar................... CAD 5,683 4,241 5,676 4,223
German Deutsche Mark.............. DEM 25,419 18,058 109,959 76,949
Danish Krone...................... DKK 150,769 27,593 26,653 4,808
French Franc...................... FRF -- -- 730 148
Hong Kong Dollar.................. HKD 347,039 44,885 211,812 27,395
Indonesian Rupiah................. IDR 14,791,104 6,513 14,791,104 6,529
Italian Lira...................... ITL 168,942 106 168,556 105
Japanese Yen...................... JPY 3,057,361 29,888 2,945,112 29,732
Malaysian Ringgit................. MYR 5,250 2,066 -- --
Netherlands Guilder............... NLG 45 29 45 28
Philippine Peso................... PHP -- -- 45,000 1,727
South Korean Won.................. KRW 2,975,055 3,888 2,975,055 3,873
Spanish Peseta.................... ESP -- -- 2,650 21
Swiss Franc....................... CHF 4,853 4,275 4,852 4,197
TOTAL FOREIGN CURRENCIES
(COST $159,636 AND $225,127
RESPECTIVELY)......................... 155,318 .2% 218,366 .3%
TOTAL INVESTMENTS AND FOREIGN CURRENCIES
(COST $65,628,063 AND $66,967,506,
RESPECTIVELY)......................... 61,854,018 100.4% 66,036,791 97.3%
OTHER ASSETS AND LIABILITIES -- NET..... (258,417) (.4)% 1,809,872 2.7%
NET ASSETS.............................. $61,595,601 100.0% $67,846,663 100.0%
*Non-income producing security.
ADS -- American Depository Shares.
GDS -- Global Depository Shares.
+ Valued at Fair Value as determined in good faith by the Fund's Trustees.
# Represents common stock investments unless otherwise indicated.
The percentage of Net Assets in each type of security is as follows:
</TABLE>
<TABLE>
<CAPTION>
OCTOBER 31, SEPTEMBER 30,
1995 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock..................................... 82.5% 78.6%
Real Estate Investment Trusts 16.6 17.3
Warrants......................................... .9 .8
Rights........................................... .2 --
Total Equity Securities.......................... 100.2% 96.7%
</TABLE>

See accompanying notes to financial statements.
9

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (identified cost $65,468,427)............................................................. $61,698,700
Foreign currencies (identified cost $159,636).................................................................. 155,318
Cash........................................................................................................... 92,658
Receivable for investment securities sold...................................................................... 867,263
Dividends receivable........................................................................................... 137,784
Prepaid expenses............................................................................................... 62,078
Due from Adviser............................................................................................... 16,079
Receivable for Fund shares sold................................................................................ 7,102
Total assets............................................................................................. 63,036,982
LIABILITIES:
Loan payable................................................................................................... 1,050,000
Accrued expenses............................................................................................... 181,391
Payable for Fund shares repurchased............................................................................ 154,540
Accrued advisory fee........................................................................................... 55,450
Total liabilities........................................................................................ 1,441,381
NET ASSETS........................................................................................................ $61,595,601
NET ASSETS CONSIST OF:
Paid-in capital................................................................................................ $72,866,292
Accumulated net investment loss................................................................................ (13,834)
Accumulated net realized loss on investments................................................................... (7,486,808)
Net unrealized depreciation of investments and foreign currencies.............................................. (3,770,049)
Net assets............................................................................................... $61,595,601
CALCULATION OF NET ASSET VALUE AND MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares ($74,376 (divided sign) 6,423 shares of beneficial interest outstanding)........................ $ 11.58
Sales charge -- 4.75% of offering price........................................................................ .58
Maximum offering price................................................................................... $ 12.16
Class B Shares ($99,964 (divided sign) 8,669 shares of beneficial interest outstanding)........................ $ 11.53
Class C Shares ($3,643 (divided sign) 316 shares of beneficial interest outstanding)........................... $ 11.53
Class Y Shares ($61,417,618 (divided sign) 5,299,937 shares of beneficial interest outstanding)................ $ 11.59
</TABLE>

See accompanying notes to financial statements.
10

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at value (identified cost $66,742,379)............................................................. $65,818,425
Foreign currencies (identified cost $225,127).................................................................. 218,366
Cash........................................................................................................... 37,842
Receivable for securities sold................................................................................. 1,632,998
Dividends receivable........................................................................................... 355,927
Prepaid expenses............................................................................................... 54,411
Receivable for Fund shares sold................................................................................ 7,878
Due from Adviser............................................................................................... 7,610
Total assets............................................................................................. 68,133,457
LIABILITIES:
Accrued expenses............................................................................................... 157,254
Payable for Fund shares repurchased............................................................................ 71,269
Accrued advisory fee........................................................................................... 58,271
Total liabilities........................................................................................ 286,794
NET ASSETS........................................................................................................ $67,846,663
NET ASSETS CONSIST OF:
Paid-in capital................................................................................................ $76,237,050
Accumulated net investment loss................................................................................ (3,145)
Accumulated net realized loss on investments................................................................... (7,458,401)
Net unrealized depreciation of investments and foreign currencies.............................................. (928,841)
Net assets............................................................................................... $67,846,663
CALCULATION OF NET ASSET VALUE AND MAXIMUM OFFERING PRICE PER SHARE:
Class A Shares ($66,261 (divided sign) 5,467 shares of beneficial interest outstanding)........................ $ 12.12
Sales charge -- 4.75% of offering price........................................................................ .60
Maximum offering price................................................................................... $ 12.72
Class B Shares ($128,117 (divided sign) 10,608 shares of beneficial interest outstanding)...................... $ 12.08
Class C Shares ($6,811 (divided sign) 564 shares of beneficial interest outstanding)........................... $ 12.08
Class Y Shares ($67,645,474 (divided sign) 5,577,508 shares of beneficial interest outstanding)................ $ 12.13
</TABLE>

See accompanying notes to financial statements.
11

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR
ONE MONTH ENDED
ENDED SEPTEMBER
OCTOBER 31, 30,
1995 1995
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $11,531 and $151,649, respectively)........... $ 25,809 $ 2,111,770
Interest..................................................................................... 2,391 71,946
Total investment income................................................................ 28,200 2,183,716
EXPENSES:
Advisory fee................................................................................. 55,450 869,965
Distribution and shareholder services fees................................................... 118 377
Custodian fee................................................................................ 12,260 173,710
Transfer agent fee........................................................................... 7,873 120,410
Professional fees............................................................................ 7,900 79,132
Registration and filing fees................................................................. 6,614 73,898
Reports and notices to shareholders.......................................................... 2,444 29,208
Insurance.................................................................................... 4,013 13,563
Trustees' fees and expenses.................................................................. 905 14,168
Miscellaneous................................................................................ 1,081 6,953
Total operating expenses............................................................... 98,658 1,381,384
Interest..................................................................................... 1,664 43,958
Less: Expense reimbursements................................................................. (8,469) (39,432)
Net expenses........................................................................... 91,853 1,385,910
Net investment income (loss).................................................................... (63,653) 797,806
REALIZED AND UNREALIZED LOSS ON INVESTMENT
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments............................................................. (28,407) (6,586,818)
Net realized loss on foreign currency transactions........................................... (1,146) (4,859)
Net change in unrealized depreciation of investments and foreign
currencies................................................................................ (2,841,208) (4,992,699)
Net loss on investment and foreign currency transactions........................................ (2,870,761) (11,584,376)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS............................................ $(2,934,414) $(10,786,570)
</TABLE>

See accompanying notes to financial statements.
12

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ONE MONTH NINE MONTHS
ENDED YEAR ENDED ENDED
OCTOBER 31, SEPTEMBER 30, SEPTEMBER 30,
1995 1995 1994
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss)............................................ $ (63,653) $ 797,806 $ 630,304
Net realized loss on investments........................................ (28,407) (6,586,818) (188,620)
Net realized loss on foreign currency transactions...................... (1,146) (4,859) (871,998)
Net change in unrealized appreciation (depreciation) of investments and
foreign currencies................................................... (2,841,208) (4,992,699) (11,314,443)
Net decrease in net assets resulting from operations.................... (2,934,414) (10,786,570) (11,744,757)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- Class Y shares................................. -- (756,333) --
Net realized gains on investment transactions -- Class Y shares......... -- (4,015,583) --
Total distributions to shareholders............................... -- (4,771,916) --
FUND SHARE TRANSACTIONS:
Proceeds from shares sold............................................... 640,465 26,475,152 118,617,529
Proceeds from reinvestment of distributions............................. -- 4,409,540 --
Payment for shares redeemed............................................. (3,957,113) (79,773,201) (120,751,853)
Net decrease resulting from Fund share transactions............... (3,316,648) (48,888,509) (2,134,324)
Net decrease in net assets........................................ (6,251,062) (64,446,995) (13,879,081)
NET ASSETS:
Beginning of period..................................................... 67,846,663 132,293,658 146,172,739
End of period (includes accumulated net investment loss of $13,834,
$3,145, and $304,243, respectively).................................. $61,595,601 $ 67,846,663 $ 132,293,658
</TABLE>

See accompanying notes to financial statements.
13

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C SHARES
ONE MONTH FEBRUARY 10, 1995* ONE MONTH FEBRUARY 8, 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, 1995## SEPTEMBER 30, 1995 OCTOBER 31, 1995## SEPTEMBER 30, 1995 OCTOBER 31, 1995##
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:+
Net asset value, beginning
of period................ $ 12.12 $ 11.46 $ 12.08 $ 11.44 $ 12.08
Income (loss) from
investment operations:
Net investment income
(loss)................. (.01) .07 (.02) .08 (.02)
Net realized and
unrealized gain (loss)
on investments......... (.53) .59 (.53) .56 (.53)
Total income (loss)
from investment
operations........... (.54) .66 (.55) .64 (.55)
Net asset value, end of
period................... $ 11.58 $ 12.12 $ 11.53 $ 12.08 $ 11.53
TOTAL RETURN++............. (4.5)% 5.8% (4.6)% 5.6% (4.6)%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of
period................... $ 74,376 $ 66,261 $ 99,964 $128,117 $3,643
Ratios to average net
assets:(stacked crosses)**
Operating expenses....... 1.73% 1.61% 2.44% 2.42% 2.37%
Interest expense......... .03% .01% .03% .03% .02%
Net investment income
(loss)................. (1.26)% .98% (1.98)% 1.38% (1.94)%
Portfolio turnover rate#... 1% 28% 1% 28% 1%
<CAPTION>
CLASS C SHARES
FEBRUARY 9, 1995*
THROUGH
SEPTEMBER 30, 1995
<S> <<C>
PER SHARE DATA:+
Net asset value, beginning
of period................ $11.43
Income (loss) from
investment operations:
Net investment income
(loss)................. .06
Net realized and
unrealized gain (loss)
on investments......... .59
Total income (loss)
from investment
operations........... .65
Net asset value, end of
period................... $12.08
TOTAL RETURN++............. 5.7%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of
period................... $6,811
Ratios to average net
assets:(stacked crosses)**
Operating expenses....... 1.54%
Interest expense......... .01%
Net investment income
(loss)................. .86%
Portfolio turnover rate#... 28%
</TABLE>

* Commencement of class operations.
** Annualized. Due to the recent commencement of their offering, the
ratios for Class A, Class B and Class C shares are not necessarily
comparable to that of the Class Y shares, and are not necessarily
indicative of future ratios.
+ Calculated based on average shares outstanding during the period.
++ Total return is calculated for the periods indicated and is not
annualized. Initial sales charge or contingent deferred sales charges
are not reflected.
# Portfolio turnover rate is calculated for the one month ended October
31, 1995 and the twelve months ended September 30, 1995.
## The Fund changed its fiscal year-end from September 30 to October 31.
(Stacked Net of expense waivers and reimbursements. If the Fund had borne all
crosses) expenses that were assumed or waived by the investment adviser, the
annualized ratios of expenses and net investment loss to average net
assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C SHARES
ONE MONTH FEBRUARY 10, 1995* ONE MONTH FEBRUARY 8, 1995* ONE MONTH
ENDED THROUGH ENDED THROUGH ENDED
OCTOBER 31, 1995 SEPTEMBER 30, 1995 OCTOBER 31, 1995 SEPTEMBER 30, 1995 OCTOBER 31, 1995
<S> <C> <C> <C> <C> <C>
Expenses............. 46.90% 21.59% 31.39% 82.74% 570.26%
Net investment
loss................. (46.44%) (19.00%) (30.94%) (79.94%) (569.83%)
<CAPTION>
CLASS C SHARES
FEBRUARY 9, 1995*
THROUGH
SEPTEMBER 30, 1995
<S> <C>
Expenses............. 269.60%
Net investment
loss................. (266.32%)
</TABLE>

<PAGE>
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
(Photo of Globe)
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS Y SHARES
YEAR
ONE MONTH NINE MONTHS ENDED
ENDED YEAR ENDED ENDED DECEMBER
OCTOBER 31, SEPTEMBER 30, SEPTEMBER 30, 31,
1995## 1995 1994# 1993##
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period.............................. $12.13 $13.81 $14.75 $9.86
Income (loss) from investment operations:
Net investment income (loss).................................... (.01) .11 .07 --
Net realized and unrealized gain (loss) on investments.......... (.53) (1.17) (1.01) 5.07
Total income (loss) from investment operations.................. (.54) (1.06) (.94) 5.07
Less distributions to shareholders from:
Net investment income........................................... -- (.10) -- --
Net realized gains on investments............................... -- (.52) -- (.18)
Total distributions........................................... -- (.62) -- (.18)
Net asset value, end of period.................................... $11.59 $12.13 $13.81 $14.75
TOTAL RETURN+..................................................... (4.5)% (7.7)% (6.4)% 51.4%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)................................................. $61,418 $67,645 $132,294 $146,173
Ratios to average net assets(Stacked crosses)
Operating expenses.............................................. 1.62%** 1.54% 1.46%** 1.56%
Interest expense................................................ .03% .05% .08%** --
Net investment income (loss).................................... (1.14)%** .92% .56%** .03%
Portfolio turnover rate#.......................................... 1% 28% 63% 88%
<CAPTION>

YEAR ENDED
DECEMBER 31,
1992
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.............................. $9.16
Income (loss) from investment operations:
Net investment income (loss).................................... (.01)
Net realized and unrealized gain (loss) on investments.......... .94
Total income (loss) from investment operations.................. .93
Less distributions to shareholders from:
Net investment income........................................... --
Net realized gains on investments............................... (.23)
Total distributions........................................... (.23)
Net asset value, end of period.................................... $9.86
TOTAL RETURN+..................................................... 10.2%
RATIOS & SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted)................................................. $8,618
Ratios to average net assets(Stacked crosses)
Operating expenses.............................................. 2.00%
Interest expense................................................ --
Net investment income (loss).................................... (.10)%
Portfolio turnover rate#.......................................... 245%
</TABLE>

** Annualized.
# The Fund changed its fiscal year-end from December 31 to September 30.
## The Fund changed its fiscal year-end from September 30 to October 31.
+ Total return is calculated for the periods indicated and is not
annualized.
(Stacked Net of expense waivers and reimbursements. If the Fund had borne all
crosses) expenses that were assumed or waived by the investment adviser, the
annualized ratios of expenses and net investment loss to average net
assets, exclusive of any applicable state expense limitations, would
have been the following:
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
1993 1992
<S> <C> <C>
Expenses.................................................................................................. 1.64% 3.72%
Net investment loss....................................................................................... (.05)% (1.82)%
</TABLE>

<PAGE>
NOTES TO FINANCIAL STATEMENTS

NOTE 1 -- ORGANIZATION
The Evergreen Global Real Estate Equity Fund (the "Fund") is one of two
portfolios of the Evergreen Real Estate Equity Trust, (the "Trust"). The Fund is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a diversified, open-end management investment company.
NOTE 2 -- CHANGE IN FISCAL YEARS
The Trustees approved a change in the Fund's fiscal year end from September
30 to October 31. Accordingly, these financial statements are both as of and for
the fiscal year ended September 30, 1995 and as of and for the month ended
October 31, 1995.
NOTE 3 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
SECURITY VALUATION -- Portfolio securities that are listed on a securities
exchange are valued at the last quoted sale price taken from the exchange where
the security is primarily traded on the day the valuation is made. Securities
listed on an exchange not traded on the valuation date are valued at the mean
between the bid and asked price. Unlisted securities for which market quotations
are readily available are valued at a price quoted by one or more brokers. Debt
securities (other than short-term obligations) are normally valued on the basis
of valuations provided by a pricing service when such prices are believed to
reflect the market value of such securities. Other securities for which no
quotations are readily available are valued at fair value as determined in good
faith by the Trustees. Short-term obligations are stated at amortized cost which
approximates market value.
SECURITY TRANSACTIONS -- Security transactions are accounted for on the
date purchased or sold. Net realized gains and losses are determined on the
identified cost basis.
INVESTMENT INCOME AND EXPENSES -- Dividend income and other distributions
are recorded on the ex-dividend date. Interest income and expenses are accrued
daily.
FOREIGN CURRENCY TRANSLATIONS -- The accounting records of the Fund are
maintained in U.S. dollars. All assets and liabilities of the Fund denominated
in foreign currencies are translated into U.S. dollar amounts daily at the mean
of the buying and selling market rates for such currencies. Purchases and sales
of foreign securities and income derived from foreign securities are converted
at the prevailing rates of exchange on the respective dates of such
transactions.
Investment securities of the Fund are presented at the foreign exchange
rates and market values at the close of the period. The Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of the securities held at period-end. Net realized foreign exchange gains
of $464,125 and $2,429, for the year ended September 30, 1995 and the month
ended October 31, 1995, respectively, resulting from fluctuations in foreign
exchange rates on securities sold, are reported as a component of net realized
loss on investments. Foreign exchange gains or losses from sales of holdings of
foreign currencies are reported as the net realized gain or loss on foreign
currency transactions.
FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts for the purchase or sale of a specific foreign
currency at a fixed price on a future date in order to hedge its exposure to
changes in foreign currency exchange rates. Forward currency contracts are
valued daily at the prevailing rates of contracts of the same maturity. Gains
and losses on forward currency contracts are reported as realized or unrealized
gains or losses on foreign currency transactions. Risks may arise upon entering
into these contracts from the potential inability of the counterparties to meet
the terms of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
16

<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 3 -- SIGNIFICANT ACCOUNTING POLICIES -- continued
INCOME TAXES -- It is the Fund's policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable net income and net realized capital
gains to its shareholders. Accordingly, no provisions for Federal income or
excise taxes are necessary. To the extent that realized capital gains can be
offset by capital loss carryforwards, it is the Fund's policy not to distribute
such gains. At October 31, 1995 the Fund had a net capital loss carryover of
$7,373,102 which expires in fiscal year ended October 31, 2003.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded
on the ex-distribution date. The amount of distributions from net investment
income and net realized capital gains are determined in accordance with Federal
income tax regulations, which may differ from the amounts available for
distribution under generally accepted accounting principles. To the extent these
differences are permanent in nature, such amounts are reclassified within the
components of net assets. As of September 30, 1995 and October 31, 1995, the
following reclassifications have been made to increase (decrease) such accounts
with offsetting adjustments made to paid-in capital:
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED NET
NET INVESTMENT REALIZED
LOSS LOSS
<S> <C> <C>
SEPTEMBER 30................................................ $259,625 $ (37,558)
OCTOBER 31.................................................. 52,964 1,146
</TABLE>

ALLOCATION OF EXPENSES -- Expenses specifically identifiable to a class of
shares are charged to that class. Other expenses common to the Fund or the Trust
as a whole, are primarily allocated to the Funds in the Trust or to the classes
in the Fund in proportion to net assets.
OTHER -- The Fund owns shares of real estate investment trusts which report
information on the source of their distributions annually. A portion of their
distributions received during the year is estimated to be a return of capital
and is recorded as a reduction of their cost. After the information regarding
the source of distributions is received by the Fund, these return of capital
estimates may be adjusted with a corresponding adjustment to dividend income
and/or net realized gains or losses.
NOTE 4 -- ADVISORY FEE AND RELATED PARTY TRANSACTIONS
Evergreen Asset Management Corp. (the "Adviser"), a subsidiary of First
Union National Bank of North Carolina ("First Union"), is the investment adviser
to the Fund and also furnishes the Fund with administrative services. The
Adviser is entitled to a fee, accrued daily and payable monthly, for the
performance of its services at an annual rate of 1% of the daily net assets of
the Fund. For the fiscal year ended September 30, 1995, and month ended October
31, 1995, the Adviser voluntarily reimbursed Class A, Class B and Class C shares
for certain class specific expenses in the amount of $39,432, and $8,469,
respectively. The Adviser may, at its discretion, revise or cease these
voluntary expense reimbursements at any time.
Total operating expenses of the Fund, exclusive of taxes, interest,
brokerage commissions, 12b-1 distribution and shareholder services fees, and
extraordinary expenses are subject to the most restrictive of state expense
limitations, as may be amended from time to time, under the rules and
regulations of states where the Fund is authorized to sell its shares. If in any
fiscal year such operating expenses exceed the most restrictive limitation then
in effect, the Adviser will reimburse the Fund for the amount of such excess.
For the fiscal year ended September 30, 1995 or month ended October 31, 1995,
the Fund's expenses did not exceed the most restrictive state limitation in
effect.
Lieber & Company, an affiliate of the Adviser is the investment sub-adviser
to the Fund and also provides brokerage services with respect to substantially
all security transactions of the Fund effected on the New York and American
Stock Exchanges. For transactions executed during the fiscal year ended
September 30, 1995 and month ended October 31, 1995,
17

<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 4 -- ADVISORY FEE AND RELATED PARTY TRANSACTIONS -- continued
the Fund incurred brokerage commissions of $106,123 and $2,374, respectively,
with Lieber & Company. Lieber & Company is reimbursed by the Adviser, at no
additional expense to the Fund, for its cost of providing investment advisory
services to the Adviser.
NOTE 5 -- DISTRIBUTION AND SHAREHOLDER SERVICES FEES
The Fund has adopted for each of its Class A, Class B and Class C shares, a
Distribution Plan (the "Plans") pursuant to Rule 12b-1 under the Act. Under the
terms of the Plans, the Fund may incur distribution-related and shareholder
servicing-related expenses which may not exceed, as a percentage of average
daily net assets on an annual basis, .75 of 1% for Class A shares and 1% for
both Class B and Class C shares. The payments under the Class A Plan will be
voluntarily limited to .25 of 1%.
In connection with the Plans, the Fund has entered into a distribution
agreement with Evergreen Funds Distributor, Inc. ("EFD"), a subsidiary of Furman
Selz Incorporated, whereby the Fund will compensate EFD for its services at a
rate which may not exceed, as a percentage of average daily net assets on an
annual basis, .25 of 1% for Class A shares and .75 of 1% for Class B and Class C
shares. Such fees are accrued daily and paid monthly. The Agreement provides
that EFD will use such fees to finance activities that promote the sale of Class
A, Class B and Class C shares.
A portion of the payments under the Class B and Class C Plans of up to .25
of 1% of average daily net assets may constitute a shareholder service fee. EFD
has entered into a Shareholder Services Agreement with First Union Brokerage
Services ("FUBS"), an affiliate of the Adviser, whereby the Fund will compensate
FUBS for certain services provided to shareholders and/or for the maintenance of
shareholders' accounts relating to the Fund's Class B and Class C shares. Such
fees are accrued daily and paid monthly.
NOTE 6 -- PORTFOLIO TRANSACTIONS
Cost of purchases and proceeds from sales of investments, other than
short-term obligations, aggregated $26,027,014 and $76,204,955, respectively,
for the year ended September 30, 1995 and $371,637 and $1,258,483, respectively,
for the month ended October 31, 1995.
The aggregate cost of investments owned at September 30, 1995 for federal
income tax purposes is $66,858,415. Gross unrealized appreciation and
depreciation of securities was $6,937,552 and $7,977,542, respectively,
resulting in net unrealized depreciation of $1,039,990.
The aggregate cost of investments owned at October 31, 1995 for federal
income tax purposes is $65,595,151. Gross unrealized appreciation and
depreciation of securities was $5,563,452 and $9,459,903, respectively,
resulting in net unrealized depreciation of $3,896,451.
NOTE 7 -- FINANCING AGREEMENT
The Fund has a financing agreement with its custodian State Street Bank and
Trust Company (the "Bank"), which provides the Fund with a line of credit, in
the aggregate amount of the lesser of $5,000,000 or 5% of the value of the
Fund's net assets, to be accessed for temporary or emergency purposes.
Borrowings under the line of credit bear interest at 1% above the Bank's cost of
funds as set periodically by the Bank and are secured by securities pledged by
the Fund. During the fiscal year ended September 30, 1995, and one month ended
October 31, 1995, the Fund had borrowings outstanding for 157 and 12 days,
respectively, under the line of credit and incurred $43,958 and $1,664,
respectively, in interest charges related to these borrowings. The Fund's
average amount of debt outstanding during the periods aggregated $1,572,261 and
$283,871, respectively, at a weighted average interest rate of 6.44% and 6.81%,
respectively. The Fund had no outstanding borrowings
18

<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 7 -- FINANCING AGREEMENT -- continued
at September 30, 1995. At October 31, 1995, the Fund had borrowings of
$1,050,000 outstanding at an interest rate of 6.94%.
NOTE 8 -- SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $.001 par value shares of beneficial
interest authorized, divided into four classes, designated Class A, Class B,
Class C and Class Y shares. Class A shares are offered with a front-end sales
charge of 4.75% which will be reduced on purchases in excess of $100,000. Class
B shares are offered with a contingent deferred sales charge payable when shares
are redeemed which would decline from 5% to zero over a seven-year period. Class
C shares are offered with a 1% contingent deferred sales charge on shares
redeemed during the first year of sale. Class Y shares are sold without a sales
charge and are available only to certain investment advisory clients of First
Union and its affiliates, institutional investors or Class Y shareholders of
record of certain other funds managed by First Union or its affiliates as of
December 30, 1994. All four classes of shares have identical voting, dividend,
liquidation and other rights, except that certain classes bear different
distribution expenses (see Note 5) and have exclusive voting rights with respect
to their distribution plan.
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
ONE MONTH ENDED YEAR ENDED* NINE MONTHS ENDED
OCTOBER 31, 1995 SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
Shares Amount SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........................... 956 $ 11,527 57,734 $ 666,052 -- --
Shares redeemed....................... -- -- (52,267) (620,120) -- --
Net increase........................ 956 11,527 5,467 45,932 -- --
CLASS B
Shares sold........................... 197 2,360 10,713 131,594 -- --
Shares redeemed....................... (2,136) (25,616) (105) (1,125) -- --
Net increase (decrease)............. (1,939) (23,256) 10,608 130,469 -- --
CLASS C
Shares sold........................... -- -- 1,436 17,212 -- --
Shares redeemed....................... (248) (2,941) (872) (10,738) -- --
Net increase (decrease)............. (248) (2,941) 564 6,474 -- --
CLASS Y
Shares sold........................... 52,172 626,578 2,134,163 25,660,294 8,233,761 $ 118,617,529
Shares issued on reinvestment of
distributions....................... -- -- 368,999 4,409,540 -- --
Shares redeemed....................... (329,743) (3,928,556) (6,508,126) (79,141,218) (8,561,147) (120,751,853)
Net decrease........................ (277,571) (3,301,978) (4,004,964) (49,071,384) (327,386) (2,134,324)
Total net decrease resulting from Fund
share transactions.................. (278,802) $(3,316,648) (3,988,325) $(48,888,509) (327,386) $ (2,134,324)
</TABLE>

* For Class A, Class B and Class C Shares, the Fund Share transaction
activity reflects the period February 10, 1995, February 8, 1995 and February 9,
1995, respectively (commencement of class operations) through September 30,
1995.
19

<PAGE>
REPORTS OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND SHAREHOLDERS OF
EVERGREEN GLOBAL REAL ESTATE EQUITY FUND
In our opinion, the accompanying Statements of Assets and Liabilities,
including the Statements of Investments, and the related Statements of
Operations and of Changes in Net Assets and the Financial Highlights present
fairly, in all material respects, the financial position of Evergreen Global
Real Estate Equity Fund (the "Fund"), one of the Evergreen Real Estate Equity
Trust Portfolios, at October 31, 1995 and September 30, 1995, the results of its
operations for the one month ended October 31, 1995 and for the year ended
September 30, 1995, the changes in its net assets for the periods indicated, and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1995 and
September 30, 1995 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
November 29, 1995
20

<PAGE>
TRUSTEES AND OFFICERS
TRUSTEES:
Mr. Laurence B. Ashkin
Mr. Foster Bam
Mr. James S. Howell, Chairman
Mr. Robert J. Jeffries
Mr. Gerald M. McDonnell
Mr. Thomas L. McVerry
Mr. William W. Pettit
Mr. Russell A. Salton, III M.D.
Mr. Michael S. Scofield
OFFICERS:
John J. Pileggi
President and Treasurer
Joan V. Fiore
Secretary
Sheryl Hirschfeld
Assistant Secretary
Donald E. Brostrom
Assistant Treasurer
Stephen W. St. Clair
Assistant Treasurer
FEDERAL INCOME TAX STATUS OF DISTRIBUTIONS (UNAUDITED)
During the fiscal year ended September 30, 1995 the Fund, paid $1,060,087
of net long-term capital gain distributions.

<PAGE>

NOT May lose value
FDIC No bank guarantee
INSURED

Evergreen Funds Distributor, Inc.

537243
11/95