<PAGE> PAGE 1
000 B000000 04/30/1999
000 C000000 0000912291
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002 D020000 1585
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011 A00AA01 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
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<PAGE> PAGE 2
011 C03AA01 94404
011 C04AA01 1585
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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022 C000004 680679
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022 C000005 646854
<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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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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SIGNATURE LAURA FERGERSON
TITLE ASST. TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FRANKLIN REAL ESTATE SECURITIES TRUST
APRIL 30, 1999 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<NAME> FRANKLIN REAL ESTATE SECURITIES FUND CLASS - A
<S> <C>
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<FN>
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FRANKLIN REAL ESTATE SECURITIES
TRUST APRIL 30, 1999 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
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</LEGEND>
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (2,138,145)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (4,889,260)
<AVERAGE-NET-ASSETS> 419,590,068
<PER-SHARE-NAV-BEGIN> 14.320
<PER-SHARE-NII> .100
<PER-SHARE-GAIN-APPREC> .740
<PER-SHARE-DIVIDEND> .000
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 15.160
<EXPENSE-RATIO> 1.570<F2>
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
<FN>
<F1>FOR THE PERIOD JANUARY 1, 1999 (EFFECTIVE DATE) TO
APRIL 30, 1999.
<F2>ANNUALIZED
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FRANKLIN REAL ESTATE SECURITIES
TRUST APRIL 30, 1999 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN REAL ESTATE SECURITIES FUND CLASS - C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 399,823,187
<INVESTMENTS-AT-VALUE> 370,792,063
<RECEIVABLES> 20,082,145
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 390,874,208
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,016,688
<TOTAL-LIABILITIES> 3,016,688
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 410,246,882
<SHARES-COMMON-STOCK> 7,072,878
<SHARES-COMMON-PRIOR> 7,874,091
<ACCUMULATED-NII-CURRENT> 4,737,048
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,904,716
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (29,031,126)
<NET-ASSETS> 387,857,520
<DIVIDEND-INCOME> 24,030,549
<INTEREST-INCOME> 1,607,782
<OTHER-INCOME> 0
<EXPENSES-NET> (4,889,260)
<NET-INVESTMENT-INCOME> 20,749,071
<REALIZED-GAINS-CURRENT> 2,824,842
<APPREC-INCREASE-CURRENT> (70,145,584)
<NET-CHANGE-FROM-OPS> (46,571,671)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,896,531)
<DISTRIBUTIONS-OF-GAINS> (1,771,807)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,404,982
<NUMBER-OF-SHARES-REDEEMED> (3,620,490)
<SHARES-REINVESTED> 414,295
<NET-CHANGE-IN-ASSETS> (88,150,147)
<ACCUMULATED-NII-PRIOR> 3,385,018
<ACCUMULATED-GAINS-PRIOR> 5,278,245
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (2,138,145)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (4,889,260)
<AVERAGE-NET-ASSETS> 419,590,068
<PER-SHARE-NAV-BEGIN> 17.400
<PER-SHARE-NII> .680
<PER-SHARE-GAIN-APPREC> (2.250)
<PER-SHARE-DIVIDEND> (.630)
<PER-SHARE-DISTRIBUTIONS> (.230)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 14.970
<EXPENSE-RATIO> 1.710
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
<FN>
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FRANKLIN REAL ESTATE SECURITIES
TRUST APRIL 30, 1999 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 014
<NAME> FRANKLIN REAL ESTATE SECURITIES FUND ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 399,823,187
<INVESTMENTS-AT-VALUE> 370,792,063
<RECEIVABLES> 20,082,145
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 390,874,208
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,016,688
<TOTAL-LIABILITIES> 3,016,688
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 410,246,882
<SHARES-COMMON-STOCK> 169,324
<SHARES-COMMON-PRIOR> 504,539
<ACCUMULATED-NII-CURRENT> 4,737,048
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,904,716
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (29,031,126)
<NET-ASSETS> 387,857,520
<DIVIDEND-INCOME> 24,030,549
<INTEREST-INCOME> 1,607,782
<OTHER-INCOME> 0
<EXPENSES-NET> (4,889,260)
<NET-INVESTMENT-INCOME> 20,749,071
<REALIZED-GAINS-CURRENT> 2,824,842
<APPREC-INCREASE-CURRENT> (70,145,584)
<NET-CHANGE-FROM-OPS> (46,571,671)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (254,676)
<DISTRIBUTIONS-OF-GAINS> (73,219)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 444,802
<NUMBER-OF-SHARES-REDEEMED> (801,822)
<SHARES-REINVESTED> 21,805
<NET-CHANGE-IN-ASSETS> (88,150,147)
<ACCUMULATED-NII-PRIOR> 3,385,018
<ACCUMULATED-GAINS-PRIOR> 5,278,245
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (2,138,145)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (4,889,260)
<AVERAGE-NET-ASSETS> 419,590,068
<PER-SHARE-NAV-BEGIN> 17.700
<PER-SHARE-NII> 1.440
<PER-SHARE-GAIN-APPREC> (2.910)
<PER-SHARE-DIVIDEND> (.790)
<PER-SHARE-DISTRIBUTIONS> (.230)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 15.210
<EXPENSE-RATIO> .710
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
<FN>
</FN>
</TABLE>
NAME OF REGISTRANT:
Franklin Real Estate Securities Trust
File No. 811-8034
EXHIBIT ITEM No. 77I(b): Terms of new or amended
securities
The Franklin Real Estate Securitie Fund (the
only series of the Registrant) currently offers
four classes of shares, Class A, Class B, Class
C, and Advisor Class. Before January 1, 1999,
Class A shares were designated Class I and Class
C shares were designated Class II. The Franklin
Real Estate Securities Fund series began
offering Class B shares on January 1, 1999.
The Registrant may offer additional classes of
shares in the future. The full title of each
class of Franklin Real Estate Securities Fund is:
* Franklin Real Estate Securities Fund - Class A
* Franklin Real Estate Securities Fund - Class B
* Franklin Real Estate Securities Fund - Class C
* Franklin Real Estate Securities Fund - Advisor
* Class
Shares of each class represent proportionate
interests in the Registrant's assets. On matters
that affect the Registrant as a whole, each class
has the same voting and other rights and
preferences as any other class. On matters that
affect only one class, only shareholders of that
class may vote. Each class votes separately on
matters affecting only that class, or expressly
required to be voted on separately by state or
federal law. Shares of each class of a series
have the same voting and other rights and
preferences as the other classes and series of
the trust for matters that affect the trust as
a whole. Additional series may be offered in
the future.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Franklin Real Estate Securities Trust:
In planning and performing our audit of
the financial statements of Franklin
Real Estate Securities Trust for the year ended
April 30, 1999, 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 internal control.
The management of Franklin Real Estate
Securities Trust 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 accepted accounting
principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal
control, errors or irregularities may occur
and not be detected. Also, projection of
any evaluation of internal control 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 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 any 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 internal control, including
controls over safeguarding securities
that we consider to be material weaknesses
as defined above as of April 30, 1999.
This report is intended solely for the
information and use of management and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
San Francisco, California
June 4, 1999
