<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 853183
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 TEMPLETON REAL ESTATE TRUST
001 B000000 811-5844
001 C000000 3055277591
002 A000000 500 EAST BROWARD BLVD
002 B000000 FORT LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
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
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
<PAGE> PAGE 2
007 C012900 29
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
007 C014100 41
007 C014200 42
007 C014300 43
007 C014400 44
007 C014500 45
007 C014600 46
007 C014700 47
007 C014800 48
007 C014900 49
007 C015000 50
007 C015100 51
007 C015200 52
007 C015300 53
007 C015400 54
007 C015500 55
007 C015600 56
007 C015700 57
007 C015800 58
007 C015900 59
007 C016000 60
007 C016100 61
007 C016200 62
007 C016300 63
007 C016400 64
007 C016500 65
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007 C016700 67
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007 C017200 72
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007 C017500 75
007 C017600 76
007 C017700 77
007 C017800 78
007 C017900 79
<PAGE> PAGE 3
007 C018000 80
"008 A000001 TEMPLETON, GALBRAITH & HANSBERGER LTD"
008 B000001 A
008 C000001 801-42343
008 D010001 LYFORD CAY
"008 D050001 NASSAU, BAHAMAS"
"010 A000001 TEMPLETON GLOBAL INVESTORS, INC"
010 B000001 8-311928-0
010 C010001 FT. LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
"011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC"
011 B000001 8-5889
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33701
011 C040001 3628
"012 A000001 FRANKLIN TEMPLETON INVESTMENT SERVICES, INC"
012 B000001 84-00000
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33701
012 C040001 3628
013 A000001 MCGLADREY & PULLEN LLC
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
015 A000001 CHASE MANHATTAN BANK
015 B000001 C
015 C010001 BROOKLYN
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 130/140
015 E040002 X
015 A000003 CHASE MANHATTAN BANK
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CREDITANSTALT-BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 D020004 A-1011
<PAGE> PAGE 4
015 E040004 X
015 A000005 STANDARD CHARTERED BANK
015 B000005 S
015 C010005 DHAKA
015 D010005 BANGLADESH
015 D020005 1000
015 E040005 X
015 A000006 GENERALE BANK
015 B000006 S
015 C010006 BRUXELLES
015 D010006 BELGIUM
015 D020006 1000
015 E040006 X
"015 A000007 BANCO CAHSE MANHATTAN,S.A."
015 B000007 S
015 C010007 SAO PAULO
015 D010007 BRAZIL
015 D020007 SP04719-002
015 E040007 X
015 A000008 THE ROYAL BANK OF CANADA
015 B000008 S
015 C010008 ONTARIO
015 D010008 CANADA
015 D020008 M5J2J5
015 E040008 X
015 A000009 CANADA TRUST
015 B000009 S
015 C010009 ONTARIO
015 D010009 CANADA
015 D020009 M5J2T2
015 E040009 X
"015 A000010 CESKOSLOVENSKA OBCHODNI BANKA,A.S."
015 B000010 S
015 C010010 PRABA
015 D010010 CZECH REPUBLIC
015 E040010 X
015 A000011 DEN DANSKE BANK
015 B000011 S
015 C010011 COPENHAGEN
015 D010011 DENMARK
015 D020011 DK 1091
015 E040011 X
015 A000012 NATIOANL BANK OF EGYPT
015 B000012 S
015 C010012 CARIO
015 D010012 EGYPT
015 E040012 X
015 A000013 KANSALLIS-OSAKE-PANKKI
015 B000013 S
015 C010013 HELSINKI
015 D010013 FINLAND
<PAGE> PAGE 5
015 D020013 00500
015 E040013 X
015 A000014 BANQUE PARIBAS
015 B000014 S
015 C010014 CEDEX
015 D010014 FRANCE
015 E040014 X
"015 A000015 CHASE ABNK, A.G."
015 B000015 S
015 C010015 FRANKFURT
015 D010015 GERMANY
015 D020015 60441
015 E040015 X
015 A000016 BARCLAYS BANK OF GHANA LTD
015 B000016 S
015 C010016 ACCRA
015 D010016 GHANA
015 E040016 X
015 A000017 BARCLAYS BANK PLC
015 B000017 S
015 C010017 ATHENS
015 D010017 GREECE
015 D020017 10562
015 E040017 X
"015 A000018 CHASE MANHATTAN BANK,N.A."
015 B000018 S
015 C010018 HONG KONG
015 D010018 HONG KONG
015 E040018 X
015 A000019 CITIBANK BUDAPEST
015 B000019 S
015 C010019 BUDAPEST
015 D010019 HUNGARY
015 E040019 X
015 A000020 THE HONGKONG AND SHAGHAI BANKING CORP
015 B000020 S
015 C010020 JAKARTA
015 D010020 INDONESIA
015 D020020 10023
015 E040020 X
015 A000021 BANK OF IRELAND
015 B000021 S
015 C010021 DUBLIN
015 D010021 IRELAND
015 E040021 X
015 A000022 BANK LEUMI LE-ISRAEL B.M.
015 B000022 S
015 C010022 TEL AVIV
015 D010022 ISRAEL
015 E040022 X
"015 A000023 CHASE MANHATTAN BANK,N.A."
<PAGE> PAGE 6
015 B000023 S
015 C010023 MILAN
015 D010023 ITALY
015 D020023 20121
015 E040023 X
015 A000024 CHASE MANHATTAN BANK
015 B000024 S
015 C010024 TOKYO
015 D010024 JAPAN
015 D020024 100
015 E040024 X
015 A000025 CHASE MANHATTAN BANK
015 B000025 S
015 C010025 KUALA LUMPUR
015 D010025 MALAYSIA
015 E040025 X
015 A000026 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000026 S
015 C010026 PORT LOUIS
015 D010026 MAURITIUS
015 E040026 X
015 A000027 CHASE MANHATTAN BANK
015 B000027 S
015 C010027 MEXICO
015 D010027 MEXICO
015 E040027 X
015 A000028 DELETE
015 A000029 BANQUE CAMMERCIALE DU MAROC
015 B000029 S
015 C010029 CASABLANCA
015 D010029 MOROCCO
015 E040029 X
015 A000030 ABN AMRO N.V.
015 B000030 S
015 C010030 DE BREDA
015 D010030 NETHERLANDS
015 E040030 X
015 A000031 NATIONAL NOMINEES LIMITED
015 B000031 S
015 C010031 AUCKLAND
015 D010031 NEW ZEALAND
015 D020031 4800
015 E040031 X
015 A000032 DEN NORSKE BANK
015 B000032 S
015 C010032 OSLO
015 D010032 NORWAY
015 E040032 X
015 A000033 CITIBANK
015 B000033 S
015 C010033 SAN ISIDRO LIMA
<PAGE> PAGE 7
015 D010033 PERU
015 D020033 27
015 E040033 X
015 A000034 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000034 S
015 C010034 PASIG METRO MANILA
015 D010034 PHILIPPINES
015 E040034 X
"015 A000035 BANK HANDLOWY W WARSAWIE,S.A."
015 B000035 S
015 C010035 WARSAW
015 D010035 POLAND
015 D020035 01-211
015 E040035 X
015 A000036 BANCO ESPIRITO SANTO & COMERCIAL DE LISBOA
015 B000036 S
015 C010036 LISBON
015 D010036 PORTUGAL
015 D020036 1200
015 E040036 X
015 A000037 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000037 S
015 C010037 SHANGHAI
015 D010037 PEOPLE'S REPUBLIC
015 E040037 X
015 A000038 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000038 S
015 C010038 SHENZHEN
015 D010038 PEOPLE'S REPULIC
015 E040038 X
015 A000039 CHASE MANHATTAN BANK
015 B000039 S
015 C010039 SINGAPORE
015 D010039 SINGAPORE
015 D020039 0104
015 E040039 X
015 A000040 CSBO
015 B000040 S
015 C010040 BRATISLAVA
015 D010040 SLOVAK REPUBLIC
015 D020040 815 63
015 E040040 X
015 A000041 STANDARD BANK OF SOUTH AFRICA
015 B000041 S
015 C010041 JOHANNESBURG
015 D010041 SOUTH AFRICA
015 D020041 2001
015 E040041 X
015 A000042 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000042 S
015 C010042 SEOUL
<PAGE> PAGE 8
015 D010042 SOUTH KOREA
015 E040042 X
015 A000043 CHASE MANHATTAN BANK
015 B000043 S
015 C010043 MADRID
015 D010043 SPAIN
015 D020043 28042
015 E040043 X
015 A000044 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000044 S
015 C010044 COLOMBO
015 D010044 SRI LANKA
015 E040044 X
015 A000045 SKANDINAVISKA ENSKILDA BANKEN
015 B000045 S
015 C010045 STOCKHOLM
015 D010045 SWEDEN
015 D020045 S-106 40
015 E040045 X
015 A000046 UNION BANK OF SWITZERLAND
015 B000046 S
015 C010046 ZURICH
015 D010046 SWITZERLAND
015 D020046 8021
015 E040046 X
015 A000047 CHASE MANHATTAN BANK
015 B000047 S
015 C010047 BANGKOK
015 D010047 THAILAND
015 D020047 10500
015 E040047 X
015 A000048 CHASE MANHATTAN BANK
015 B000048 S
015 C010048 ISTANBUL
015 D010048 TURKEY
015 D020048 80700
015 E040048 X
015 A000049 CHASE MANHATTAN BANK
015 B000049 S
015 C010049 LONDON
015 D010049 UNITED KINGDOM
015 D020049 EC2P 2HD
015 E040049 X
015 A000050 THE FIRST NATIONAL BANK OF BOSTON
015 B000050 S
015 C010050 MONTEVIDEO
015 D010050 URUGUARY
015 E040050 X
015 A000051 BARCLAYS BANK OF ZIMBABWE
015 B000051 S
015 C010051 HARARE
<PAGE> PAGE 9
015 D010051 ZIMBABWE
015 E040051 X
015 A000052 CEDEL S.A.
015 B000052 S
015 C010052 LONDON
015 D010052 UNITED KINGDOM
015 E040052 X
015 A000053 FIRST CHICAGO CLEARING CENTRE
015 B000053 S
015 C010053 LONDON
015 D010053 UNITED KINGDOM
015 E040053 X
015 A000054 RESERVE BANK
015 B000054 S
015 C010054 VIENNA
015 D010054 AUSTRIA
015 E040054 X
018 000000 Y
019 A000000 Y
019 B000000 190
019 C000000 FRNKTEMGRP
"020 A000001 GOLDMAN, SACHS & CO."
020 B000001 13-5108880
020 C000001 41
020 A000002 NATWEST SECURITIES CORP.
020 B000002 13-3312778
020 C000002 33
020 A000003 LEHMAN BROTHERS
020 B000003 13-2518466
020 C000003 31
020 A000004 MONTGOMERY SECURITIES
020 B000004 94-1701676
020 C000004 28
020 A000005 BARCLAYS DE ZOETE WEDD
020 B000005 13-3410233
020 C000005 26
020 A000006 BROWN BALDWIN NISKER
020 B000006 CANADA
020 C000006 22
020 A000007 SALOMON BROTHERS INC
020 B000007 13-3082694
020 C000007 20
020 A000008 MORGAN STANLEY & CO.
020 B000008 13-2655998
020 C000008 12
"020 A000009 MERRILL, LYNCH, PIERCE, FENNER & SMITH, INC."
020 B000009 13-5674085
020 C000009 12
020 A000010 JAMES CAPEL INC.
020 B000010 52-2927466
020 C000010 11
<PAGE> PAGE 10
021 000000 388
"022 A000001 CHASE MANHATTEN BANK, N.A."
022 B000001 13-2633612
022 C000001 126973
022 D000001 61324
"022 A000002 MERRILL, LYNCH, PIERCE, FENNER & SMITH, INC"
022 B000002 13-5674085
022 C000002 12987
022 D000002 3243
022 A000003 CORESTATES
022 C000003 0
022 D000003 6074
022 A000004 LEHMAN BROTHERS
022 B000004 13-2518466
022 C000004 1338
022 D000004 2087
022 A000005 SCOTIA MCLEOD INC
022 B000005 13-5239583
022 C000005 0
022 D000005 3027
022 A000006 MONTGOMERY SECURITIES
022 B000006 94-1701676
022 C000006 2821
022 D000006 0
"022 A000007 GOLDMAN, SACHS & CO."
022 B000007 13-5108880
022 C000007 2495
022 D000007 0
022 A000008 FURMAN SELZ MAGER DIETZ & BIRNEY INC.
022 B000008 13-2753731
022 C000008 1508
022 D000008 0
022 A000009 CRESVALE
022 B000009 13-3099580
022 C000009 1153
022 D000009 0
022 A000010 NATWEST SECURITIES
022 B000010 13-3312778
022 C000010 904
022 D000010 223
023 C000000 152205
023 D000000 78017
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
<PAGE> PAGE 11
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
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028 B010000 1800
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028 C010000 7124
028 C020000 0
028 C030000 0
028 C040000 3916
028 D010000 3058
028 D020000 0
028 D030000 0
028 D040000 6467
028 E010000 3409
028 E020000 0
028 E030000 0
028 E040000 2021
028 F010000 2112
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028 F030000 0
028 F040000 5097
028 G010000 19676
028 G020000 0
028 G030000 0
028 G040000 23043
028 H000000 14778
029 000000 Y
030 A000000 1129
030 B000000 5.75
030 C000000 0.00
031 A000000 159
031 B000000 0
032 000000 969
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<PAGE> PAGE 12
037 000000 N
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<PAGE> PAGE 13
054 F000000 N
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070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
<PAGE> PAGE 14
070 D010000 Y
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070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
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070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
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<PAGE> PAGE 15
072 R000000 16
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075 A000000 0
<PAGE> PAGE 16
075 B000000 129971
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE
080 B000000 NONE
080 C000000 130000
081 A000000 Y
081 B000000 189
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
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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 JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON REAL ESTATE SECURITIES FUND AUGUST 31, 1995 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 001
<NAME> TEMPLETON REAL ESTATE SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 131517503
<INVESTMENTS-AT-VALUE> 131839953
<RECEIVABLES> 3074276
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5185
<TOTAL-ASSETS> 134919414
<PAYABLE-FOR-SECURITIES> 2173988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 772787
<TOTAL-LIABILITIES> 2946775
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 130997961
<SHARES-COMMON-STOCK> 9861117<F1>
<SHARES-COMMON-PRIOR> 9630037<F1>
<ACCUMULATED-NII-CURRENT> 2945004
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2292776)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 322450
<NET-ASSETS> 131972639
<DIVIDEND-INCOME> 4303077
<INTEREST-INCOME> 1678206
<OTHER-INCOME> 0
<EXPENSES-NET> 2019307
<NET-INVESTMENT-INCOME> 3961976
<REALIZED-GAINS-CURRENT> 2650946
<APPREC-INCREASE-CURRENT> (9032322)
<NET-CHANGE-FROM-OPS> (2419400)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2183210)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3107103<F1>
<NUMBER-OF-SHARES-REDEEMED> (3021430)<F1>
<SHARES-REINVESTED> 145407<F1>
<NET-CHANGE-IN-ASSETS> 428915
<ACCUMULATED-NII-PRIOR> 1450912
<ACCUMULATED-GAINS-PRIOR> (2766042)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 974779
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2019307
<AVERAGE-NET-ASSETS> 129706657<F1>
<PER-SHARE-NAV-BEGIN> 13.66<F1>
<PER-SHARE-NII> .39<F1>
<PER-SHARE-GAIN-APPREC> (.64)<F1>
<PER-SHARE-DIVIDEND> (.21)<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 13.20<F1>
<EXPENSE-RATIO> 1.55<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995, THE FUND OFFERED TWO CLASSES OF SHARES: CLASS I
AND CLASS II SHARES. INFORMATION IS FOR CLASS I SHARES ONLY.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON REAL ESTATE SECURITIES FUND AUGUST 31, 1995 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 002
<NAME> TEMPLETON REAL ESTATE SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 131517503
<INVESTMENTS-AT-VALUE> 131839953
<RECEIVABLES> 3074276
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5185
<TOTAL-ASSETS> 134919414
<PAYABLE-FOR-SECURITIES> 2173988
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 772787
<TOTAL-LIABILITIES> 2946775
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 130997961
<SHARES-COMMON-STOCK> 138496<F1>
<SHARES-COMMON-PRIOR> 0<F1>
<ACCUMULATED-NII-CURRENT> 2945004
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2292776)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 322450
<NET-ASSETS> 131972639
<DIVIDEND-INCOME> 4303077
<INTEREST-INCOME> 1678206
<OTHER-INCOME> 0
<EXPENSES-NET> 2019307
<NET-INVESTMENT-INCOME> 3961976
<REALIZED-GAINS-CURRENT> 2650946
<APPREC-INCREASE-CURRENT> (9032322)
<NET-CHANGE-FROM-OPS> (2419400)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2183210)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 139647<F1>
<NUMBER-OF-SHARES-REDEEMED> (1151)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 428915
<ACCUMULATED-NII-PRIOR> 1450912
<ACCUMULATED-GAINS-PRIOR> (2766042)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 974779
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2019307
<AVERAGE-NET-ASSETS> 783640<F1>
<PER-SHARE-NAV-BEGIN> 12.25<F1>
<PER-SHARE-NII> .03<F1>
<PER-SHARE-GAIN-APPREC> .89<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 13.17<F1>
<EXPENSE-RATIO> 2.26<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995 THE FUND OFFERED TWO CLASSES OF SHARES: CLASS I AND
CLASS II SHARES. INFORMATION IS FOR CLASS II SHARES ONLY.
</FN>
</TABLE>
The Board of Trustees and Shareholders
Templeton Real Estate Securities Fund
In planning and performing our audit of the financial statements of Templeton
Real Estate Securities Fund for the year ended August 31, 1995, we considered
its internal control structure, including procedures 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
structure.
The management of Templeton Real Estate Securities Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure 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 structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
McGladrey & Pullen, LLP
New York, New York
September 29, 1995
<PAGE>
