<PAGE>
PAGE 1
000 B000000 08/31/97
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 GLOBAL REAL ESTATE FUND
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001 C000000 9545277591
002 A000000 500 EAST BROWARD BLVD, SUITE 2100
002 B000000 FORT LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
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004 000000 N
005 000000 N
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008 B000001 A
008 C000001 801-42343
008 D010001 LYFORD CAY, NASSAU
008 D050001 BAHAMAS
010 A000001 FRANKLIN TEMPLETON SERVICES INC.
010 C010001 FORT 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 INVESTOR SERVICES, INC.
012 B000001 84-00000
<PAGE>
PAGE 2
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33701
012 C040001 3628
013 A000001 MCGLADREY & PULLEN LLP.
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
015 A000001 CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 THE CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 1061
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CREDITANSTALT-BANKVEREIN
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015 D010004 AUSTRIA
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<PAGE>
PAGE 3
015 A000008 THE ROYAL BANK OF CANADA
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015 B000012 S
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015 E040013 X
015 A000014 BANQUE PARIBAS
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015 C010014 PARIS
015 D010014 FRANCE
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015 E040014 X
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<PAGE>
PAGE 4
015 B000017 S
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015 A000018 THE CHASE MANHATTAN BANK
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015 D010018 HONG KONG
015 E040018 X
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015 B000019 S
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015 E040023 X
015 A000024 THE FUJI BANK LTD.
015 B000024 S
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015 D010024 JAPAN
015 E040024 X
015 A000025 THE CHASE MANHATTAN BANK
015 B000025 S
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015 D010025 MALAYSIA
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<PAGE>
PAGE 5
015 A000026 HONGKONG AND SHANGHAI BANKING CORP. LTD
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015 A000027 THE CHASE MANHATTAN BANK, S.A.
015 B000027 S
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<PAGE>
PAGE 6
015 A000035 BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA
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015 E040037 X
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015 A000039 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
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015 A000042 THE CHASE MANHATTAN BANK
015 B000042 S
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015 A000043 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000043 S
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<PAGE>
PAGE 7
015 E040043 X
015 A000044 SKANDINAVISKA ENSKILDA BANKEN
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015 A000046 THE CHASE MANHATTAN BANK
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015 A000051 BARCLAYS BANK OF ZIMBABWE
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015 C010051 HARARE
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015 A000052 CEDEL BANK S.A.
015 B000052 S
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<PAGE>
PAGE 8
015 B000053 S
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015 D010053 UNITED KINGDOM
015 D020053 EC3A 1AA
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015 A000054 RESERVE BANK
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015 C010054 SYDNEY
015 D010054 AUSTRALIA
015 E040054 X
015 A000055 BARCLAYS BANK OF BOTSWANA LIMITED
015 B000055 S
015 C010055 GABORONE
015 D010055 BOTSWANA
015 E040055 X
015 A000056 BARCLAYS BANK OF KENYA
015 B000056 S
015 C010056 NAIROBI
015 D010056 KENYA
015 E040056 X
015 A000057 DEUTSCHE BANK A.G.
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015 D010057 PAKISTAN
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015 A000058 BANQUE GENERALE DU LUXEMBOURG S.A.
015 B000058 S
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015 A000059 STANDARD BANK NAMIBIA LTD
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015 B000060 S
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015 A000061 CHASE MANHATTAN BANK INTERNATIONAL ("CMBI")
015 B000061 S
015 C010061 MOSCOW
015 D010061 RUSSIA
015 D020061 125047
015 E040061 X
015 A000062 THE BRITISH BANK OF THE MIDDLE EAST
015 B000062 S
015 C010062 MANAMA
015 D010062 BAHRAIN
<PAGE>
PAGE 9
015 E040062 X
015 A000063 BARCLAYS BANK PLC
015 B000063 S
015 C010063 NICOSIA
015 D010063 CYPRUS
015 D020063 1644
015 E040063 X
015 A000064 CITIBANK, N.A.
015 B000064 S
015 C010064 QUITO
015 D010064 ECUADOR
015 E040064 X
015 A000065 THE HONGKONG AND SHANGHAI BANKING CORP LTD
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015 C010065 BOMBAY
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015 D020065 400 001
015 E040065 X
015 A000066 DELETE
015 A000068 STANBIC BANK SWAZILAND LTD
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015 A000069 DELETE
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015 D010070 VENEZUELA
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<PAGE>
PAGE 10
020 B000006 13-3580644
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<PAGE>
PAGE 11
022 A000010 GOLDMAN SACHS
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<PAGE>
PAGE 12
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<PAGE>
PAGE 13
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<PAGE>
PAGE 14
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<PAGE>
PAGE 15
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PAGE 16
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<PAGE>
PAGE 17
SIGNATURE JAMES R. BAIO
/s/JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON GLOBAL REAL ESTATE FUND AUGUST 31, 1997 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000853183
<NAME> TEMPLETON GLOBAL REAL ESTATE FUND
<SERIES>
<NUMBER> 001
<NAME> TEMPLETON GLOBAL REAL ESTATE FUND - CLASS I
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<AVERAGE-NET-ASSETS> 142289511
<PER-SHARE-NAV-BEGIN> 13.78
<PER-SHARE-NII> 0.39
<PER-SHARE-GAIN-APPREC> 2.58
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.42)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.33
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON GLOBAL REAL ESTATE FUND AUGUST 31, 1997 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000853183
<NAME> TEMPLETON GLOBAL REAL ESTATE FUND
<SERIES>
<NUMBER> 002
<NAME> TEMPLETON GLOBAL REAL ESTATE FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-END> AUG-31-1997
<INVESTMENTS-AT-COST> 129103719
<INVESTMENTS-AT-VALUE> 158528706
<RECEIVABLES> 2985605
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 161514311
<PAYABLE-FOR-SECURITIES> 308808
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 511209
<TOTAL-LIABILITIES> 820017
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 129184605
<SHARES-COMMON-STOCK> 551910
<SHARES-COMMON-PRIOR> 385866
<ACCUMULATED-NII-CURRENT> 2058847
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25855
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29424987
<NET-ASSETS> 160694294
<DIVIDEND-INCOME> 5595974
<INTEREST-INCOME> 402360
<OTHER-INCOME> 0
<EXPENSES-NET> 2238265
<NET-INVESTMENT-INCOME> 3760069
<REALIZED-GAINS-CURRENT> 6263665
<APPREC-INCREASE-CURRENT> 19072168
<NET-CHANGE-FROM-OPS> 29095902
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (148294)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 301806
<NUMBER-OF-SHARES-REDEEMED> (144901)
<SHARES-REINVESTED> 9139
<NET-CHANGE-IN-ASSETS> 29544610
<ACCUMULATED-NII-PRIOR> 2190285
<ACCUMULATED-GAINS-PRIOR> (6100372)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1124970
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2238265
<AVERAGE-NET-ASSETS> 7690339
<PER-SHARE-NAV-BEGIN> 13.67
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> 2.52
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (0.34)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.16
<EXPENSE-RATIO> 2.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Trustees and Shareholders
Templeton Global Real Estate Fund
In planning and performing our audit of the financial statements of Templeton
Global Real Estate Fund for the year ended August 31, 1997, we considered its
internal control, including controls over 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 Templeton Global Real Estate Fund 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 accept accounting principles. Those controls include safeguarding of
assets against unauthorized acquisition, use, or disposition.
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 would not necessarily disclose all
matters in 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 the
specific internal control component 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,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of August 31, 1997.
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 26, 1997
