<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the fiscal year ending December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 333-27429
THE AERC 401(K) SAVINGS PLAN AND TRUST
(Exact name of Plan)
001
Plan Number
ASSOCIATED ESTATES REALTY CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 34-1747603
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification No.)
organization)
5025 Swetland Court, Cleveland, Ohio 44143-1467
(Address of principal executive offices) (Zip Code)
(216) 261-5000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
<PAGE> 2
THE AERC 401(K) SAVINGS PLAN AND TRUST
December 31, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Independent Auditors' Report 3
Financial Statements:
Statement of Assets Available for
Plan Benefits 4
Statement of changes in Net Assets
Available for Plan Benefits 5
Notes to the Financial Statements 6
SUPPLEMENTAL INFORMATION:
Schedule I - Item 27a Schedule of
Assets held for Investment 12
Schedule II - Item 27d Schedule of
Reportable Transactions 13
Signatures 55
</TABLE>
<PAGE> 3
Independent Auditors' Report
To the Trustees
The AERC 401(K) Savings Plan and Trust
We have audited the financial statements of the
AERC 401(K) Savings Plan and Trust (the "Plan") as of December
31, 1997 and 1996 and for the year ended December 31, 1997 and
the supplemental schedules as of and for the year ended December
31, 1997, as listed in the accompanying contents. These
financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards 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. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets available
for benefits of the AERC 401(K) Savings Plan and Trust as of
December 31, 1997 and 1996, and the changes in net assets available
for benefits for the year ended December 31, 1997, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The supplemental
schedules of assets held for investment and reportable transactions
as of and for the year ended December 31, 1997, are presented for the
purpose of additional analysis and are not a required part of the
basic financial statements, but are supplementary information
required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Reznick Fedder & Silverman
Bethesda, Maryland
May 20, 1998
<PAGE> 4
The AERC 401(K) Savings Plan and Trust
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997 and December 31, 1996
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
ASSETS
Investments, at fair value
Capital Preservation Fund $ 393,861
U.S. Treasury obligations 191,055
Mutual funds 801,630
Commingled bond funds 214,429
Stable Value fund $ 606,406
Income fund 242,837
Balanced portfolio 58,846
Stock Index fund 691,851
Growth and Income fund 700,037
Associated Estates Realty Corporation
Stock fund 39,612
Total investment 2,339,589 1,600,975
Receivables
Employee loans and accrued interest 122,999 139,235
Employer's contributions 1,771 4,219
Participants' contributions 13,842 28,382
Total receivables 138,612 171,836
Total assets $2,478,201 $1,772,811
LIABILITIES
Benefit payable 18,075 42,696
Net assets available for plan benefits $2,460,126 $1,730,115
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 5
The AERC 401(K) Savings Plan and Trust
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year ended December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
Additions to net assets attributed to:
Investment income
Net appreciation in fair value of
investments $ 39,125
Realized gain 142,012
Interest and dividends 138,630
Contributions
Employer $ 96,072
Participants 569,783 665,855
Total additions 985,622
Deductions from net assets
attributed to:
Benefits paid to participants 255,186
Expenses paid 425
Total deductions 255,611
NET INCREASE 730,011
Net assets available for plan benefits
Beginning of year 1,730,115
End of year $ 2,460,126
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 6
The AERC 401(K) Savings Plan and Trust
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the AERC 401(K) Savings Plan and
Trust have been prepared in conformity with generally accepted
accounting principles as applied to profit-sharing trusts and in
accordance with the terms of the Trust Agreement. A summary of
the significant accounting policies consistently applied in the
preparation of the accompanying financial statements follows:
1. Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of
registered investment companies are valued at quoted market
prices, which represents the net asset value of shares held by
the Plan at year-end.
2. Federal Income Taxes
The Plan has received a favorable determination letter from
the Internal Revenue Service which classified the Plan as a
qualified employee benefit plan, exempt from income taxes, under
the Employee Retirement Income Security Act of 1994 (ERISA).
3. Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
NOTE B - DESCRIPTION OF PLAN
The following description of the AERC 401(K) Savings Plan
and Trust provides only general information. Participants should
refer to the Plan agreement for a more complete description of
the Plan's provisions.
The Plan is a plan of a controlled group of corporations
which became effective April 1, 1990 by execution of the
counterparts to the National City Bank Master Savings Plan and
<PAGE> 7
NOTE B - DESCRIPTION OF THE PLAN (Continued)
Trust Adoption Agreement. On July 1, 1997, a new adoption
agreement was executed whereby Scudder, Stevens & Clark replaced
National City Bank as Trustee of the Plan.
Employees are eligible after one year of service, provided
that they have reached an age of 21 and work more than 1,000
hours per year. Participants are immediately vested in their
investment account which includes participant contributions to
the Plan, employer matching contributions and account earnings.
Participants may elect to contribute up to twelve percent of
their gross wages and have the option of investing their accounts
between six different investment funds. The Plan provides for an
employer matching contribution equal to 25 percent of the
participant's contribution up to a maximum participant
contribution of 4 percent of their gross wages.
On termination of service, a participant may elect to
receive either a lump sum amount equal to the value of his or her
account, monthly payments over a period equal to the shorter of
120 months or the life expectancy of the participant and/or his
or her beneficiary, installment payments of a fixed amount to be
made until the balance of the participants's account is
exhausted, distribution in kind (securities issued by Associated
Estates Realty Corporation only), or any reasonable combination
of the foregoing or any reasonable time or manner of distribution
within the above stated limitations.
NOTE C - INVESTMENTS
The Plan's investments are held by National City Bank as of
December 31, 1996, and Scudder, Stevens & Clark as of December
31, 1997. The following table presents the fair value of the
investments. Investments that represent 5 percent or more of the
Plan's net assets are separately identified.
<PAGE> 8
<TABLE>
<CAPTION>
Market Value of Investments
December 31 December 31
1997 1996
Fair Value Fair Value
<S> <C> <C>
Investment at fair value as
determined by National City Bank as
of December 31,1996 and Scudder,
Stevens & Clark as of December 31,
1997
Capital Preservation fund $ 393,861
U.S. Treasury obligations 191,055
Mutual funds 801,630
Commingled bond funds 214,429
Stable Value fund $ 606,406
Income fund 242,837
Balanced portfolio 58,846
Stock Index fund 691,851
Growth and Income fund 700,037
Associated Estates Realty
Corporation Stock fund 39,612
$ 2,339,589 $ 1,600,975
</TABLE>
During the year ended December 31, 1997, the Plan's
investments (including investments bought, sold and held during
the year) appreciated in value by $39,125.
<PAGE> 9
THE AERC 401(K) Savings Plan and Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
NOTE D - INVESTMENT ACTIVITY BY FUND
The following table presents the changes in investments for the
year ended December 31, 1997 by investment fund based on options
available to participants.
<TABLE>
<CAPTION>
Capital Money Fidelity S & P Fixed Stable
Preserva- Market Magellan Index Income Value
tion Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Investment at fair value
as determined by
National City Bank as of
January 1, 1997 $ 404,835 $ 138,175 $ 493,344 $342,286 $ 222,335 $ -
Investment income
Net appreciation
(depreciation) in fair
value of investments - - - - - -
Realized gain (loss) - - 65,634 73,187 110 -
Interest and dividends 12,172 3,442 13,712 6,849 7,261 20,950
Contributions
Employer 12,012 2,576 16,428 15,414 5,600 3,488
Participants 42,055 14,851 79,241 73,477 34,389 24,599
Refunds to participants (471,074) (159,044) (668,359) (511,213) (269,695) 557,745
and funds transfers
Expenses paid - - - - - (376)
Investments at fair value
as determined by
Scudder, Stevens & Clark
as of December 31, 1997 $ - $ - $ - $ - $ - $ 606,406
</TABLE>
<TABLE>
<CAPTION>
Stock Growth & AERC
Income Balanced Index Income Stock
Fund Portfolio Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C>
Investment at fair value
as determined by
National City Bank as of
January 1, 1997 $ - $ - $ - $ - $ - $1,600,975
Investment income
Net appreciation
(depreciation) in fair
value of investments 1,736 (1,454) 43,890 (5,629) 582 39,125
Realized gain (loss) 193 (21) 1,346 1,574 (11) 142,012
Interest and dividends 10,528 2,167 1,309 54,089 844 133,323
Contributions
Employer 4,135 5,670 16,505 12,155 4,537 98,520
Participants 32,118 37,007 126,815 88,797 30,974 584,323
Refunds to participants 194,151 15,482 502,006 549,051 2,686 (258,264)
and funds transfers
Expenses paid (24) (5) (20) - - (425)
Investments at fair value
as determined by
Scudder, Stevens & Clark
as of December 31, 1997 $242,837 $ 58,846 $691,851 $700,037 $ 39,612 $2,339,589
</TABLE>
<PAGE> 10
THE AERC 401(K) Savings Plan and Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
NOTE E - NOTES RECEIVABLE
During 1997, the Plan made loans to various employees from
their respective interests in the Plan. These loans bear
interest at rates varying from 7% to 10%, and are being amortized
over the terms of the loans with biweekly payments of principal
and interest. The notes have maturity dates equal to or less
than five years from the date of the notes, face value equal or
greater than $1,000, and do not exceed 50 percent of the present
value of the borrowers' interest in the Plan.
NOTE F - PLAN TERMINATION
Although it has not expressed any intent to do so, the
companies participating in the Plan have the right to discontinue
their matching contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan
termination, employees of the participating companies will become
100 percent vested in their accounts.
<PAGE> 11
SUPPLEMENTAL INFORMATION
<PAGE> 12
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Identity of Interest Fair
Party Involved Description Maturity Rate Cost Value
<S> <C> <C> <C> <C> <C>
Scudder Stable Value Fund N/A N/A 606,406 606,406
Scudder Income Fund N/A N/A 241,101 242,837
Scudder Pathway Balanced Portfolio N/A N/A 60,300 58,846
Scudder Growth and Income Fund N/A N/A 705,666 700,037
Scudder Stock Index Fund N/A N/A 647,961 691,851
Associated Estates Stock Fund N/A N/A 39,030 39,612
Realty Corporation
</TABLE>
<PAGE> 13
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Single Transactions
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
NC Investment Funds for Ret Trust
Fixed Income Fund 190,605.73 189,958.00 190,605.73 647.73
NC Investment Funds for Ret Tr
Cap Preservation Fund 462,330.33 462,330.33 462,330.33
Federated Trust for US Treasury
Obligations #59 190,605.73 190,605.73
Federated Trust for US Treasury
Obligations #59 563,908.80 563,908.80
Federated Trust for US Treasury
Obligations #59 465,027.28 465,027.28
Federated Trust for US Treasury
Obligations #59 462,330.33 462,330.33
Federated Trust for US Treasury
Obligations #59 132,829.03 132,829.03 132,829.03
Federated Trust for US Treasury
Obligations #59 196,700.82 196,700.82 196,700.82
</TABLE>
<PAGE> 14
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Single Transactions
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 589,131.09 589,131.09 589,131.09
Federated Trust for US Treasury
Obligations #59 471,749.57 471,749.57 471,749.57
Federated Trust for US Treasury
Obligations #59 482,713.03 482,713.03 482,713.03
Fidelity Instl Tr US Equity Index
Portfolio (465,027.28) (311,821.66) (465,027.28) (153,205.62)
Fidelity Instl Tr US Equity Index
Portfolio 465,027.28 311,821.66 465,027.28 153,205.62
Fidelity Instl Tr US Equity Index
Portfolio 465,027.28 311,636.04 465,027.28 153,391.24
Fidelity Magellan Fund Inc Com 563,908.80 481,743.69 563,908.80 82,165.11
</TABLE>
<PAGE> 15
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series in Same Security
<TABLE>
<CAPTION>
Fair Value of
Security at
Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Instl Tr US Equity Index
Portfolio 82,456.42 483,861.45 325,044.90 566,317.87 158,816.55
# of Trades/% of Beginning Value 12/4.71% 7/27.66% 19/32.38%
Fidelity Magellan Fund Inc Com 87,351.55 626,363.86 540,905.17 713,715.41 85,458.69
# of Trades/% of Beginning Value 8/4.99% 8/35.81% 16/40.81%
NC Investment Funds for Ret Trust
Fixed Income Fund 32,149.93 246,689.26 246,799.44 278,839.19 (110.18)
# of Trades/% of Beginning Value 7/1.84% 7/14.10% 14/15.94%
NC Investment Funds for Ret Trust
Fixed Capital Preservation Fund 78,220.69 470,219.50 470,219.50 548,440.19
# of Trades/% of Beginning Value 16/4.47% 5/26.88% 21/31.36%
Federated Trust for US Treasury
Obligations #59 2,523,158.43 2,713,563.15 2,713,563.15 5,236,721.58
# of Trades/% of Beginning Value 144/144.26% 93/155.15% 237/299.40%
</TABLE>
<PAGE> 16
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Instl Tr US Equity Index
Portfolio (1,531.81) (1,531.81)
Fidelity Instl Tr US Equity Index
Portfolio 1,531.81 1,531.81
Fidelity Instl Tr US Equity Index
Portfolio (1,531.81) (1,531.81)
Fidelity Instl Tr US Equity Index
Portfolio 1,531.81 1,531.81
Fidelity Instl Tr US Equity Index
Portfolio 391.84 391.84
Fidelity Instl Tr US Equity Index
Portfolio 1,531.81 1,531.81
Fidelity Instl Tr US Equity Index
Portfolio 1,248.37 1,248.37
Fidelity Instl Tr US Equity Index
Portfolio 1,531.81 1,531.81
</TABLE>
<PAGE> 17
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Instl Tr US Equity Index
Portfolio 2,063.42 2,063.42
Fidelity Instl Tr US Equity Index
Portfolio 914.31 914.31
Fidelity Instl Tr US Equity Index
Portfolio (1,531.81) (1,531.81)
Fidelity Instl Tr US Equity Index
Portfolio 1,531.81 1,531.81
Fidelity Instl Tr US Equity Index
Portfolio (1,531.81) (1,531.81)
Fidelity Magellan Fund Inc Com 4,391.80 4,391.80
Fidelity Magellan Fund Inc Com 8,549.37 8,549.37
NC Investment Funds for Ret Trust
Fixed Income Fund 469.85 469.85
NC Investment Funds for Ret Trust
Fixed Income Fund 9,752.03 9,752.03
</TABLE>
<PAGE> 18
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
NC Investment Funds for Ret Trust
Fixed Income Fund 179.17 181.25 179.17 (2.08)
NC Investment Funds for Ret Trust
Fixed Income Fund 6,161.54 6,161.54
NC Investment Funds for Ret Trust
Fixed Income Fund 32,185.83 32,520.78 32,185.83 (334.95)
NC Investment Funds for Ret Trust
Fixed Income Fund 7,578.96 7,578.96
NC Investment Funds for Ret Trust
Fixed Income Fund 5,044.40 5,119.51 5,044.40 (75.11)
NC Investment Funds for Ret Trust
Fixed Income Fund 14,655.66 14,944.02 14,655.66 (288.36)
NC Investment Funds for Ret Trust
Fixed Income Fund 1,121.88 1,121.88
NC Investment Funds for Ret Trust
Fixed Income Fund 6,280.15 6,280.15
</TABLE>
<PAGE> 19
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
NC Investment Funds for Ret Trust
Fixed Income Fund 2,759.12 2,803.03 2,759.12 (43.91)
NC Investment Funds for Ret Trust
Fixed Income Fund 1,259.35 1,272.85 1,259.35 (13.50)
NC Investment Funds for Ret Trust
Fixed Income Fund 785.52 785.52
NC Investment Funds for Ret Trust
Fixed Income Fund 190,605.73 189,958.00 190,605.73 647.73
Participants Loan Account 7,123.13 7,123.13 7,123.13
Participants Loan Account 1,282.14 1,282.14 1,282.14
Participants Loan Account 7,899.28 7,899.28 7,899.28
Participants Loan Account 10,122.69 10,122.69 10,122.69
Participants Loan Account 0.56 0.56 0.56
Participants Loan Account 12,195.08 12,195.08 12,195.08
</TABLE>
<PAGE> 20
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Participants Loan Account 5,251.36 5,251.36 5,251.36
Participants Loan Account 5,175.91 5,175.91 5,175.91
Participants Loan Account 6,426.08 6,426.08 6,426.08
Participants Loan Account 7,737.48 7,737.48 7,737.48
Participants Loan Account 5,626.63 5,626.63 5,626.63
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,861.91 1,861.91
NC Investment Funds for Ret Tr
Capital Preservation Fund 746.97 746.97
NC Investment Funds for Ret Tr
Capital Preservation Fund 7,113.13 7,113.13
NC Investment Funds for Ret Tr
Capital Preservation Fund 3,537.06 3,537.06 3,537.06
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,909.52 1,909.52
</TABLE>
<PAGE> 21
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
NC Investment Funds for Ret Tr
Capital Preservation Fund 4,016.75 4,016.75
NC Investment Funds for Ret Tr
Capital Preservation Fund 2,457.59 2,457.59 2,457.59
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,731.94 1,731.94
NC Investment Funds for Ret Tr
Capital Preservation Fund 8,208.11 8,208.11
NC Investment Funds for Ret Tr
Capital Preservation Fund 627.78 627.78 627.78
NC Investment Funds for Ret Tr
Capital Preservation Fund 22,284.30 22,284.30
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,964.55 1,964.55
NC Investment Funds for Ret Tr
Capital Preservation Fund 19.12 19.12
NC Investment Funds for Ret Tr
Capital Preservation Fund 2,054.14 2,054.14
</TABLE>
<PAGE> 22
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
NC Investment Funds for Ret Tr
Capital Preservation Fund 2,532.05 2,532.05
NC Investment Funds for Ret Tr
Capital Preservation Fund 7,448.56 7,448.56
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,266.74 1,266.74 1,266.74
NC Investment Funds for Ret Tr
Capital Preservation Fund 2,179.40 2,179.40
NC Investment Funds for Ret Tr
Capital Preservation Fund 12,441.40 12,441.40
NC Investment Funds for Ret Tr
Capital Preservation Fund 462,330.33 462,330.33 462,330.33
NC Investment Funds for Ret Tr
Capital Preservation Fund 1,708.84 1,708.84
Federated Trust for US Treasury
Obligations #59 15.90 15.90
</TABLE>
<PAGE> 23
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 569.15 569.15
Federated Trust for US Treasury
Obligations #59 33.14 33.14
Federated Trust for US Treasury
Obligations #59 10.17 10.17
Federated Trust for US Treasury
Obligations #59 9.43 9.43
Federated Trust for US Treasury
Obligations #59 11.92 11.92
Federated Trust for US Treasury
Obligations #59 12,501.95 12,501.95
Federated Trust for US Treasury
Obligations #59 3,828.90 3,828.90
Federated Trust for US Treasury
Obligations #59 7,736.31 7,736.31
</TABLE>
<PAGE> 24
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 18,065.18 18,065.18
Federated Trust for US Treasury
Obligations #59 52,936.68 52,936.68 52,936.68
Federated Trust for US Treasury
Obligations #59 10,804.34 10,804.34
Federated Trust for US Treasury
Obligations #59 3,729.66 3,729.66 3,729.66
Federated Trust for US Treasury
Obligations #59 10,451.68 10,451.68 10,451.68
Federated Trust for US Treasury
Obligations #59 9,532.52 9,532.52 9,532.52
Federated Trust for US Treasury
Obligations #59 7,438.87 7,438.87 7,438.87
Federated Trust for US Treasury
Obligations #59 10,228.53 10,228.53 10,228.53
</TABLE>
<PAGE> 25
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 41,381.26 41,381.26
Federated Trust for US Treasury
Obligations #59 29,722.96 29,722.96 29,722.96
Federated Trust for US Treasury
Obligations #59 311.15 311.15
Federated Trust for US Treasury
Obligations #59 46.57 46.57
Federated Trust for US Treasury
Obligations #59 162.98 162.98
Federated Trust for US Treasury
Obligations #59 1,875.83 1,875.83
Federated Trust for US Treasury
Obligations #59 139.69 139.69
Federated Trust for US Treasury
Obligations #59 14,227.66 14,227.66 14,227.66
</TABLE>
<PAGE> 26
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 3,548.62 3,548.62 3,548.62
Federated Trust for US Treasury
Obligations #59 10,430.89 10,430.89 10,430.89
Federated Trust for US Treasury
Obligations #59 469.85 469.85 469.85
Federated Trust for US Treasury
Obligations #59 746.97 746.97 746.97
Federated Trust for US Treasury
Obligations #59 3,865.76 3,865.76
Federated Trust for US Treasury
Obligations #59 38,666.70 38,666.70
Federated Trust for US Treasury
Obligations #59 2,877.27 2,877.27
Federated Trust for US Treasury
Obligations #59 9,282.25 9,282.25
</TABLE>
<PAGE> 27
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 13,662.62 13,662.62
Federated Trust for US Treasury
Obligations #59 5,886.27 5,886.27
Federated Trust for US Treasury
Obligations #59 7,113.13 7,113.13
Federated Trust for US Treasury
Obligations #59 38,666.70 38,666.70 38,666.70
Federated Trust for US Treasury
Obligations #59 9,282.25 9,282.25 9,282.25
Federated Trust for US Treasury
Obligations #59 13,662.62 13,662.62 13,662.62
Federated Trust for US Treasury
Obligations #59 9,752.03 9,752.03 9,752.03
</TABLE>
<PAGE> 28
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 7,113.13 7,113.13 7,113.13
Federated Trust for US Treasury
Obligations #59 0.01 0.01
Federated Trust for US Treasury
Obligations #59 6.38 6.38
Federated Trust for US Treasury
Obligations #59 1.30 1.30
Federated Trust for US Treasury
Obligations #59 3,734.00 3,734.00
Federated Trust for US Treasury
Obligations #59 3,888.84 3,888.84
Federated Trust for US Treasury
Obligations #59 3,734.00 3,734.00 3,734.00
</TABLE>
<PAGE> 29
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 3,888.84 3,888.84 3,888.84
Federated Trust for US Treasury
Obligations #59 452.66 452.66
Federated Trust for US Treasury
Obligations #59 833.97 833.97
Federated Trust for US Treasury
Obligations #59 6.38 6.38 6.38
Federated Trust for US Treasury
Obligations #59 1.30 1.30 1.30
Federated Trust for US Treasury
Obligations #59 926.12 926.12
Federated Trust for US Treasury
Obligations #59 860.81 860.81
Federated Trust for US Treasury
Obligations #59 15.19 15.19
</TABLE>
<PAGE> 30
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 816.40 816.40
Federated Trust for US Treasury
Obligations #59 5.12 5.12
Federated Trust for US Treasury
Obligations #59 17.80 17.80
Federated Trust for US Treasury
Obligations #59 10.92 10.92
Federated Trust for US Treasury
Obligations #59 17.32 17.32
Federated Trust for US Treasury
Obligations #59 25.25 25.25
Federated Trust for US Treasury
Obligations #59 46,188.36 46,188.36
</TABLE>
<PAGE> 31
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 3,616.78 3,616.78
Federated Trust for US Treasury
Obligations #59 11,311.65 11,311.65
Federated Trust for US Treasury
Obligations #59 7,125.10 7,125.10
Federated Trust for US Treasury
Obligations #59 7,872.93 7,872.93
Federated Trust for US Treasury
Obligations #59 16,416.74 16,416.74
Federated Trust for US Treasury
Obligations #59 46,188.36 46,188.36 46,188.36
Federated Trust for US Treasury
Obligations #59 391.82 391.82
Federated Trust for US Treasury
Obligations #59 8.62 8.62
Federated Trust for US Treasury
Obligations #59 782.47 782.47 782.47
</TABLE>
<PAGE> 32
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 382.03 382.03
Federated Trust for US Treasury
Obligations #59 2,506.59 2,506.59 2,506.59
Federated Trust for US Treasury
Obligations #59 998.29 998.29 998.29
Federated Trust for US Treasury
Obligations #59 3,091.03 3,091.03 3,091.03
Federated Trust for US Treasury
Obligations #59 2,464.99 2,464.99 2,464.99
Federated Trust for US Treasury
Obligations #59 10,909.46 10,909.46 10,909.46
Federated Trust for US Treasury
Obligations #59 6,161.54 6,161.54 6,161.54
Federated Trust for US Treasury
Obligations #59 4,016.75 4,016.75 4,016.75
Federated Trust for US Treasury
Obligations #59 16,101.55 16,101.55 16,101.55
</TABLE>
<PAGE> 33
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 1,174.70 1,174.70 1,174.70
Federated Trust for US Treasury
Obligations #59 1,676.45 1,676.45
Federated Trust for US Treasury
Obligations #59 1,734.73 1,734.73
Federated Trust for US Treasury
Obligations #59 831.20 831.20
Federated Trust for US Treasury
Obligations #59 14.74 14.74
Federated Trust for US Treasury
Obligations #59 1,676.45 1,676.45 1,676.45
Federated Trust for US Treasury
Obligations #59 1,734.73 1,734.73 1,734.73
Federated Trust for US Treasury
Obligations #59 831.20 831.20 831.20
Federated Trust for US Treasury
Obligations #59 48,851.52 48,851.52
</TABLE>
<PAGE> 34
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 48,851.52 48,851.52 48,851.52
Federated Trust for US Treasury
Obligations #59 0.53 0.53
Federated Trust for US Treasury
Obligations #59 1.54 1.54
Federated Trust for US Treasury
Obligations #59 1.40 1.40
Federated Trust for US Treasury
Obligations #59 0.86 0.86
Federated Trust for US Treasury
Obligations #59 2.03 2.03
Federated Trust for US Treasury
Obligations #59 3,044.47 3,044.47
Federated Trust for US Treasury
Obligations #59 13,367.76 13,367.76
Federated Trust for US Treasury
Obligations #59 7,578.96 7,578.96
</TABLE>
<PAGE> 35
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 8,208.11 8,208.11
Federated Trust for US Treasury
Obligations #59 16,825.93 16,825.93
Federated Trust for US Treasury
Obligations #59 13,367.76 13,367.76 13,367.76
Federated Trust for US Treasury
Obligations #59 7,578.96 7,578.96 7,578.96
Federated Trust for US Treasury
Obligations #59 8,208.11 8,208.11 8,208.11
Federated Trust for US Treasury
Obligations #59 16,825.93 16,825.93 16,825.93
Federated Trust for US Treasury
Obligations #59 433.95 433.95 433.95
Federated Trust for US Treasury
Obligations #59 10,365.43 10,365.43 10,365.43
Federated Trust for US Treasury
Obligations #59 9,643.69 9,643.69
</TABLE>
<PAGE>36
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 1.15 1.15
Federated Trust for US Treasury
Obligations #59 2.40 2.40
Federated Trust for US Treasury
Obligations #59 2.92 2.92
Federated Trust for US Treasury
Obligations #59 42,797.44 42,797.44
Federated Trust for US Treasury
Obligations #59 1.38 1.38
Federated Trust for US Treasury
Obligations #59 1.47 1.47
Federated Trust for US Treasury
Obligations #59 3,106.97 3,106.97
Federated Trust for US Treasury
Obligations #59 1.69 1.69
Federated Trust for US Treasury
Obligations #59 2.02 2.02
</TABLE>
<PAGE> 37
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 6.56 6.56 6.56
Federated Trust for US Treasury
Obligations #59 0.80 0.80 0.80
Federated Trust for US Treasury
Obligations #59 0.80 0.80
Federated Trust for US Treasury
Obligations #59 19.12 19.12 19.12
Federated Trust for US Treasury
Obligations #59 9,646.56 9,646.56 9,646.56
Federated Trust for US Treasury
Obligations #59 518.08 518.08 518.08
Federated Trust for US Treasury
Obligations #59 36.07 36.07
Federated Trust for US Treasury
Obligations #59 2,532.05 2,532.05
Federated Trust for US Treasury
Obligations #59 3,104.58 3,104.58 3,104.58
</TABLE>
<PAGE> 38
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 6.97 6.97 6.97
Federated Trust for US Treasury
Obligations #59 118.37 118.37
Federated Trust for US Treasury
Obligations #59 2,788.55 2,788.55
Federated Trust for US Treasury
Obligations #59 13,015.54 13,015.54
Federated Trust for US Treasury
Obligations #59 6,259.16 6,259.16
Federated Trust for US Treasury
Obligations #59 13,464.03 13,464.03
Federated Trust for US Treasury
Obligations #59 7,418.44 7,418.44
Federated Trust for US Treasury
Obligations #59 42,909.25 42,909.25 42,909.25
Federated Trust for US Treasury
Obligations #59 2,532.05 2,532.05 2,532.05
</TABLE>
<PAGE> 39
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 10.47 10.47
Federated Trust for US Treasury
Obligations #59 26.72 26.72
Federated Trust for US Treasury
Obligations #59 14.54 14.54
Federated Trust for US Treasury
Obligations #59 30.12 30.12
Federated Trust for US Treasury
Obligations #59 36.52 36.52
Federated Trust for US Treasury
Obligations #59 700.16 700.16
Federated Trust for US Treasury
Obligations #59 13,078.33 13,078.33 13,078.33
Federated Trust for US Treasury
Obligations #59 6,280.15 6,280.15 6,280.15
Federated Trust for US Treasury
Obligations #59 7,448.56 7,448.56 7,448.56
</TABLE>
<PAGE> 40
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 13,500.55 13,500.55 13,500.55
Federated Trust for US Treasury
Obligations #59 15,168.43 15,168.43
Federated Trust for US Treasury
Obligations #59 2,138.66 2,138.66 2,138.66
Federated Trust for US Treasury
Obligations #59 6,620.68 6,620.68
Federated Trust for US Treasury
Obligations #59 11,690.81 11,690.81
Federated Trust for US Treasury
Obligations #59 1,754.72 1,754.72
Federated Trust for US Treasury
Obligations #59 15,168.43 15,168.43 15,168.43
Federated Trust for US Treasury
Obligations #59 109.35 109.35
Federated Trust for US Treasury
Obligations #59 210.06 210.06
</TABLE>
<PAGE> 41
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 213.38 213.38
Federated Trust for US Treasury
Obligations #59 167.37 167.37
Federated Trust for US Treasury
Obligations #59 700.16 700.16 700.16
Federated Trust for US Treasury
Obligations #59 46,014.77 46,014.77
Federated Trust for US Treasury
Obligations #59 572.94 572.94
Federated Trust for US Treasury
Obligations #59 29.41 29.41
Federated Trust for US Treasury
Obligations #59 7.69 7.69
Federated Trust for US Treasury
Obligations #59 36.30 36.30
Federated Trust for US Treasury
Obligations #59 19.14 19.14
</TABLE>
<PAGE> 42
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 6,341.50 6,341.50 6,341.50
Federated Trust for US Treasury
Obligations #59 1,402.49 1,402.49
Federated Trust for US Treasury
Obligations #59 1,259.35 1,259.35
Federated Trust for US Treasury
Obligations #59 1,308.57 1,308.57
Federated Trust for US Treasury
Obligations #59 1,266.74 1,266.74
Federated Trust for US Treasury
Obligations #59 1,162.85 1,162.85 1,162.85
Federated Trust for US Treasury
Obligations #59 1,402.49 1,402.49 1,402.49
Federated Trust for US Treasury
Obligations #59 1,259.35 1,259.35 1,259.35
Federated Trust for US Treasury
Obligations #59 1,308.57 1,308.57 1,308.57
</TABLE>
<PAGE> 43
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 1,266.74 1,266.74 1,266.74
Federated Trust for US Treasury
Obligations #59 6,400.00 6,400.00
Federated Trust for US Treasury
Obligations #59 2,847.00 2,847.00
Federated Trust for US Treasury
Obligations #59 14,272.27 14,272.27
Federated Trust for US Treasury
Obligations #59 6,121.16 6,121.16
Federated Trust for US Treasury
Obligations #59 13,893.89 13,893.89
Federated Trust for US Treasury
Obligations #59 8,880.45 8,880.45
Federated Trust for US Treasury
Obligations #59 46,014.77 46,014.77 46,014.77
Federated Trust for US Treasury
Obligations #59 114.86 114.86 114.86
</TABLE>
<PAGE>44
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 206.56 206.56 206.56
Federated Trust for US Treasury
Obligations #59 644.16 644.16 644.16
Federated Trust for US Treasury
Obligations #59 229.93 229.93 229.93
Federated Trust for US Treasury
Obligations #59 1,195.51 1,195.51
Federated Trust for US Treasury
Obligations #59 4,326.07 4,326.07 4,326.07
Federated Trust for US Treasury
Obligations #59 4,351.46 4,351.46 4,351.46
Federated Trust for US Treasury
Obligations #59 4,909.23 4,909.23 4,909.23
Federated Trust for US Treasury
Obligations #59 6,887.66 6,887.66 6,887.66
Federated Trust for US Treasury
Obligations #59 9,575.05 9,575.05 9,575.05
</TABLE>
<PAGE> 45
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 2,173.88 2,173.88
Federated Trust for US Treasury
Obligations #59 2,173.88 2,173.88 2,173.88
Federated Trust for US Treasury
Obligations #59 16,473.69 16,473.69 16,473.69
Federated Trust for US Treasury
Obligations #59 785.52 785.52 785.52
Federated Trust for US Treasury
Obligations #59 12,441.40 12,441.40 12,441.40
Federated Trust for US Treasury
Obligations #59 190,605.73 190,605.73
Federated Trust for US Treasury
Obligations #59 563,908.80 563,908.80
Federated Trust for US Treasury
Obligations #59 465,027.28 465,027.28
Federated Trust for US Treasury
Obligations #59 462,330.33 462,330.33
</TABLE>
<PAGE> 46
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 61,423.24 61,423.24
Federated Trust for US Treasury
Obligations #59 3,456.43 3,456.43
Federated Trust for US Treasury
Obligations #59 8,235.26 8,235.26
Federated Trust for US Treasury
Obligations #59 18,937.99 18,937.99
Federated Trust for US Treasury
Obligations #59 20,060.38 20,060.38
Federated Trust for US Treasury
Obligations #59 10,791.68 10,791.68
Federated Trust for US Treasury
Obligations #59 61,481.74 61,481.74 61,481.74
Federated Trust for US Treasury
Obligations #59 132,829.03 132,829.03 132,829.03
Federated Trust for US Treasury
Obligations #59 196,700.82 196,700.82 196,700.82
</TABLE>
<PAGE> 47
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 589,131.09 589,131.09 589,131.09
Federated Trust for US Treasury
Obligations #59 471,749.57 471,749.57 471,749.57
Federated Trust for US Treasury
Obligations #59 482,713.03 482,713.03 482,713.03
Federated Trust for US Treasury
Obligations #59 98.03 98.03
Federated Trust for US Treasury
Obligations #59 7.23 7.23
Federated Trust for US Treasury
Obligations #59 10.57 10.57
Federated Trust for US Treasury
Obligations #59 30.38 30.38
Federated Trust for US Treasury
Obligations #59 25.33 25.33
Federated Trust for US Treasury
Obligations #59 24.52 24.52
</TABLE>
<PAGE> 48
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 43,490.71 43,490.71
Federated Trust for US Treasury
Obligations #59 2,627.61 2,627.61
Federated Trust for US Treasury
Obligations #59 6,038.52 6,038.52
Federated Trust for US Treasury
Obligations #59 12,566.13 12,566.13
Federated Trust for US Treasury
Obligations #59 7,671.51 7,671.51
Federated Trust for US Treasury
Obligations #59 13,814.81 13,814.81
Federated Trust for US Treasury
Obligations #59 42,718.58 42,718.58 42,718.58
Federated Trust for US Treasury
Obligations #59 870.16 870.16 870.16
Federated Trust for US Treasury
Obligations #59 27.89 27.89
</TABLE>
<PAGE> 49
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 47.17 47.17
Federated Trust for US Treasury
Obligations #59 115.29 115.29
Federated Trust for US Treasury
Obligations #59 86.07 86.07
Federated Trust for US Treasury
Obligations #59 101.62 101.62
Federated Trust for US Treasury
Obligations #59 24.66 24.66
Federated Trust for US Treasury
Obligations #59 3,715.61 3,715.61 3,715.61
Federated Trust for US Treasury
Obligations #59 8,236.43 8,236.43 8,236.43
Federated Trust for US Treasury
Obligations #59 15,145.03 15,145.03 15,145.03
Federated Trust for US Treasury
Obligations #59 9,155.35 9,155.35 9,155.35
</TABLE>
<PAGE> 50
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Federated Trust for US Treasury
Obligations #59 16,315.58 16,315.58 16,315.58
Federated Trust for US Treasury
Obligations #59 24.66 24.66 24.66
Federated Trust for US Treasury
Obligations #59 0.01 0.01
Federated Trust for US Treasury
Obligations #59 0.01 0.01 0.01
Fidelity Instl Tr US Equity Index
Portfolio (465,027.28) (311,821.66) (465,027.28) (153,205.62)
Fidelity Instl Tr US Equity Index
Portfolio 3,548.62 3,548.62
Fidelity Instl Tr US Equity Index
Portfolio 9,282.25 9,282.25
Fidelity Instl Tr US Equity Index
Portfolio 860.81 607.29 860.81 253.52
Fidelity Instl Tr US Equity Index
Portfolio 10,909.46 10,909.46
</TABLE>
<PAGE> 51
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Instl Tr US Equity Index
Portfolio 7,799.23 5,392.91 7,799.23 2,406.32
Fidelity Instl Tr US Equity Index
Portfolio 13,367.76 13,367.76
Fidelity Instl Tr US Equity Index
Portfolio 2,959.65 2,141.02 2,959.65 818.63
Fidelity Instl Tr US Equity Index
Portfolio 3,343.97 2,520.92 3,343.97 823.05
Fidelity Instl Tr US Equity Index
Portfolio 9,646.56 9,646.56
Fidelity Instl Tr US Equity Index
Portfolio 2,468.02 1,778.16 2,468.02 689.86
Fidelity Instl Tr US Equity Index
Portfolio 13,078.33 13,078.33
Fidelity Instl Tr US Equity Index
Portfolio 1,402.49 968.56 1,402.49 433.93
Fidelity Instl Tr US Equity Index
Portfolio 16,473.69 16,473.69
</TABLE>
<PAGE> 52
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Instl Tr US Equity Index
Portfolio 465,027.28 311,821.66 465,027.28 153,205.62
Fidelity Instl Tr US Equity Index
Portfolio 465,027.28 311,636.04 465,027.28 153,391.24
Fidelity Magellan Fund Inc Com 10,430.89 10,430.89
Fidelity Magellan Fund Inc Com 13,662.62 13,662.62
Fidelity Magellan Fund Inc Com 7.68 7.21 7.68 0.47
Fidelity Magellan Fund Inc Com 3,888.84 3,888.84
Fidelity Magellan Fund Inc Com 816.40 752.99 816.40 63.41
Fidelity Magellan Fund Inc Com 16,101.55 16,101.55
Fidelity Magellan Fund Inc Com 4,772.56 4,350.13 4,772.56 422.43
Fidelity Magellan Fund Inc Com 16,825.93 16,825.93
Fidelity Magellan Fund Inc Com 28,392.94 26,621.60 28,392.94 1,771.34
Fidelity Magellan Fund Inc Com 23,859.91 23,191.43 23,859.91 668.48
Fidelity Magellan Fund Inc Com 3,297.00 3,067.69 3,297.00 229.31
</TABLE>
<PAGE> 53
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
Fidelity Magellan Fund Inc Com 13,500.55 13,500.55
Fidelity Magellan Fund Inc Com 1,308.57 1,170.43 1,308.57 138.14
Fidelity Magellan Fund Inc Com 563,908.80 481,743.69 563,908.80 82,165.11
Scudder Stable Value Fund 674,187.00 674,187.00
Scudder Stable Value Fund 66,993.00 66,993.00 66,993.00
Scudder Income Fund 261,021.00 261,021.00
Scudder Income Fund 19,187.00 18,995.00 19,187.00 192.00
Scudder Growth and Income Fund 747,016.00 747,016.00
Scudder Growth and Income Fund 38,404.00 36,838.00 38,404.00 1,566.00
Scudder Pathway Series-Balanced 63,314.00 63,314.00
Scudder Pathway Series-Balanced 1,752.00 1,771.00 1,752.00 (19.00)
Scudder Stock Index Fund 681,908.00 681,908.00
Scudder Stock Index Fund 27,718.00 26,388.00 27,718.00 1,330.00
</TABLE>
<PAGE> 54
THE AERC 401(K) SAVINGS PLAN AND TRUST
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
5% Reportable Transactions
Series with Same Party
<TABLE>
<CAPTION>
Fair Value of
Security at
Identity of Party Involved Purchase Selling Cost of Transaction Net Gain
Description of Security Price Price Security Date (Loss)
<S> <C> <C> <C> <C> <C>
AERC Stock Fund 41,308.00 41,308.00
AERC Stock Fund 1,736.00 1,747.00 1,736.00 (11.00)
</TABLE>
<PAGE> 55
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the
employee benefit plan) have duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
THE AERC 401(K) SAVINGS
PLAN AND TRUST
<TABLE>
<CAPTION>
Signature Title Date
<S> <C> <C>
/s/ Dennis W. Bikun Trustee June 26, 1998
Dennis W. Bikun
/s/ Lita Weiss Trustee June 26, 1998
Lita Weiss
/s/ Nan Zieleniec Trustee June 26, 1998
Nan Zieleniec
</TABLE>
Exhibit 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
As independent public accountants, we consent to the
incorporation by reference in the registration statement of
Associated Estates Realty Corporation on Form S-8 (File No. 333-
27429) of our report dated May 20, 1998 on our audit of the
financial statements and schedules of The AERC 401(K) Savings
Plan and Trust for the year ended December 31, 1997, which report
is included in the Annual Report on Form 11-K which is filed with
the Securities and Exchange Commission.
/s/ Reznick, Fedder & Silverman
Reznick, Fedder & Silverman
Bethesda, Maryland
June 25, 1998
