<PAGE> PAGE 1
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000 J000000 U
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002 A000000 777 MARINERS ISLAND BOULEVARD
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008 D020001 CA
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008 D040001 7777
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94403
011 C040001 7777
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
<PAGE> PAGE 2
012 C040001 7777
013 A000001 COOPERS & LYBRAND L.L.P
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 BANK OF AMERICA NT & SA
015 B000001 C
015 C010001 SAN FRANCISCO
015 C020001 CA
015 C030001 94104
015 C040001 1502
015 E010001 X
015 A000002 BANK OF NEW YORK
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015 C010002 NEW YORK
015 C020002 NY
015 C030002 10286
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020 B000001 13-5674085
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020 C000003 5
020 A000004 LEHMAN BROTHERS SECS
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020 C000004 5
020 A000005 BROWN (ALEX) & SONS INC.
020 B000005 52-0256630
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020 A000007 EVEREN SEC., INC
<PAGE> PAGE 3
020 B000007 36-2693816
020 C000007 2
020 A000008 ROBERTSON STEPHENS & CO
020 B000008 94-2524501
020 C000008 2
020 A000009 SMITH BARNEY SHEARSON
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020 C000009 1
020 A000010 INSTINET CORP.
020 B000010 13-3443395
020 C000010 1
021 000000 47
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022 B000001 13-5680329
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022 B000002 13-2518466
022 C000002 126262
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022 C000003 99197
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022 C000004 57093
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022 A000005 DONALDSON LUFKIN & JENRETTE
022 B000005 13-2741729
022 C000005 49339
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022 C000006 49204
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022 A000007 BEAR STEARNS AND CO. INC
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022 C000007 44846
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022 B000008 94-1687665
022 C000008 30510
022 D000008 0
022 A000009 CHASE MANHATTAN BANK NA (THE)
022 B000009 13-2633612
022 C000009 29367
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022 C000010 23457
<PAGE> PAGE 4
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025 A000001 DONALDSON, LUFKIN & JENRETTE
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025 B000002 13-3299429
025 C000002 E
025 D000002 895
025 A000003 FUJI SECURITIES, INC.
025 B000003 13-3038090
025 C000003 E
025 D000003 895
025 A000004 SBC CAPITAL MARKETS, INC.
025 B000004 13-2639550
025 C000004 E
025 D000004 886
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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SIGNATURE KIMBERLY MONASTERIO
TITLE ASST TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
REAL ESTATE SECURITIES TRUST - FRANKLIN REAL ESTATE SECURITIES FUND APRIL 30,
1996 ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN REAL ESTATE SECURITIES FUND - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 31,687,496
<INVESTMENTS-AT-VALUE> 35,316,512
<RECEIVABLES> 4,965,205
<ASSETS-OTHER> 128,517
<OTHER-ITEMS-ASSETS> 7,259
<TOTAL-ASSETS> 40,417,493
<PAYABLE-FOR-SECURITIES> 442,192
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58,966
<TOTAL-LIABILITIES> 501,158
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,781,030
<SHARES-COMMON-STOCK> 2,660,576
<SHARES-COMMON-PRIOR> 1,577,732
<ACCUMULATED-NII-CURRENT> 373,600
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 123,399
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,629,016
<NET-ASSETS> 39,916,335
<DIVIDEND-INCOME> 1,207,948
<INTEREST-INCOME> 156,805
<OTHER-INCOME> 0
<EXPENSES-NET> (198,790)
<NET-INVESTMENT-INCOME> 1,165,963
<REALIZED-GAINS-CURRENT> 123,399
<APPREC-INCREASE-CURRENT> 4,113,462
<NET-CHANGE-FROM-OPS> 5,402,824
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (993,820)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,592,210
<NUMBER-OF-SHARES-REDEEMED> (580,330)
<SHARES-REINVESTED> 70,974
<NET-CHANGE-IN-ASSETS> 23,222,061
<ACCUMULATED-NII-PRIOR> 272,168
<ACCUMULATED-GAINS-PRIOR> 24,873
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 169,354
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 354,052
<AVERAGE-NET-ASSETS> 27,023,060
<PER-SHARE-NAV-BEGIN> 10.580
<PER-SHARE-NII> .432
<PER-SHARE-GAIN-APPREC> 2.098
<PER-SHARE-DIVIDEND> (.470)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 12.640
<EXPENSE-RATIO> .670
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
REAL ESTATE SECURITIES TRUST - FRANKLIN REAL ESTATE SECURITIES FUND APRIL 30,
1996 ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN REAL ESTATE SECURITIES FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 31,687,496
<INVESTMENTS-AT-VALUE> 35,316,512
<RECEIVABLES> 4,965,203
<ASSETS-OTHER> 128,517
<OTHER-ITEMS-ASSETS> 7,259
<TOTAL-ASSETS> 40,417,493
<PAYABLE-FOR-SECURITIES> 442,192
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58,966
<TOTAL-LIABILITIES> 501,158
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,781,030
<SHARES-COMMON-STOCK> 500,271
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 373,600
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 123,399
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,629,016
<NET-ASSETS> 39,916,335
<DIVIDEND-INCOME> 1,207,948
<INTEREST-INCOME> 156,805
<OTHER-INCOME> 0
<EXPENSES-NET> (198,790)
<NET-INVESTMENT-INCOME> 1,165,963
<REALIZED-GAINS-CURRENT> 123,399
<APPREC-INCREASE-CURRENT> 4,113,462
<NET-CHANGE-FROM-OPS> 5,402,824
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (95,584)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 498,647
<NUMBER-OF-SHARES-REDEEMED> (6,084)
<SHARES-REINVESTED> 7,698
<NET-CHANGE-IN-ASSETS> 23,222,061
<ACCUMULATED-NII-PRIOR> 272,168
<ACCUMULATED-GAINS-PRIOR> 24,873
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 169,354
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 354,052
<AVERAGE-NET-ASSETS> 27,023,060
<PER-SHARE-NAV-BEGIN> .000
<PER-SHARE-NII> .439
<PER-SHARE-GAIN-APPREC> 1.996
<PER-SHARE-DIVIDEND> (.455)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 12.560
<EXPENSE-RATIO> 1.410
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
of Franklin Real Estate Securities Trust:
In planning and performing our audit of the financial statements and
financial highlights of the fund comprising the Franklin Real Estate
Securities Trust for the year ended April 30, 1996, 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
financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of the Franklin Real Estate Securities Trust 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 statementsand financial
highlights 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 April 30, 1996.
This report is intended solely for the information and use of
management of the Franklin Real Estate Securities Trust and the
Securities and Exchange Commission.
S\Coopers & Lybrand L.L.P.
San Francisco, California
June 26, 1996
