NORTHBROOK, Ill., May 5 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported first-quarter funds from operations (FFO) of
$9.6 million, or $0.44 cents per share, compared with $4.1 million, or
$0.33 cents per share, in the prior year's first quarter.

    Review of Results
    Net income for the period totaled $8.9 million, or $0.41 cents per share,
compared with $11.4 million, or $0.91 cents per share, for the comparable
period.  Net income included gains on the sale of properties of $3.1 million,
or $0.14 per share, in the 1997 quarter and $9.4 million, or $0.75 per share,
in the prior-year quarter.  Exclusive of gains on the sale of properties, net
income in the current-year quarter was $5.9 million, or $0.27 per share,
compared with $2.0 million, or $0.16 per share, in the prior-year period.
    Weighted average shares outstanding increased to 21,665,593 from
12,536,714 in the year-ago period.  The increase in weighted shares occurred
primarily as a result of the acquisition of Tucker Properties Corporation,
which was completed in March 1996, and a 2.875-million-share offering of the
company's stock, which was completed in November 1996.
    Total assets increased to $505.1 million at March 31, 1997, from
$491.6 million a year earlier.  Total outstanding debt amounted to
$184.3 million, of which $129 million was fixed at a weighted average rate of
7.58 percent.  Bradley's outstanding borrowings under its $150 million
unsecured line of credit amounted to $55 million, bearing interest at a
floating rate of LIBOR plus 1.50 percent.

    Review of Operations
    Property occupancy was 90 percent at March 31, 1997, the same as at
December 31, 1996.  During the quarter, the company signed 12 new leases
totaling 96,000 square feet at an average rate of $7.37 per square foot.  In
addition, the company renewed 17 leases totaling 74,000 square feet at an
average rate of $11.27 per square foot, representing a 9 percent increase over
the average prior base rent.  Subsequent to the quarter the company entered
into a new anchor lease with Waccamaw Pottery for 60,000 square feet at the
company's Westview Center, bringing the center's percent leased to 89 percent
from 71 percent.

    Acquires Spring Village
    Subsequent to the quarter, the company purchased an additional Midwest
grocery-anchored center, Spring Village, located in Davenport, Iowa.  The
92,000-square-foot community shopping center is 98 percent leased and anchored
by a 45,000-square-foot Eagle Foods.  Spring Village was purchased for
$4.6 million, representing an approximate capitalization rate of 11.4 percent.

    Sells New England Asset
    In March, the company sold Hood Commons, a 215,000-square-foot community
shopping center located in Derry, New Hampshire for $11.7 million, realizing a
gain of $3.1 million.  Hood was one of the three New England assets the
company had slated for disposition in order to increase its focus on its
Midwest target market.

    Improves Borrowing Terms
    Also during the quarter, the company renegotiated the terms of its
$150 million unsecured revolving credit facility.  Under the revised terms,
the interest rate has been reduced from 1.75 percent over LIBOR to
1.50 percent over LIBOR.  The rate on the line becomes more favorable in the
event that the company receives an investment grade credit rating.  In
addition, the term of the facility was extended through March 1999, and the
company has the
option to extend the facility for an additional year.

    Outlook:  On Track to Achieve Goals
    Commenting on the results for the quarter, Thomas D'Arcy, president and
chief executive officer, stated, "We are pleased with our results for the
quarter.  Our core portfolio performed according to plan and the level of
leasing activity continues to be encouraging.  The signing of Waccamaw Pottery
to a long-term lease at our Westview Center is a significant positive step
that will increase portfolio occupancy to 91 percent.  The sale of Hood
Commons was completed as projected, providing the company the opportunity to
reinvest the proceeds in assets that are consistent with our Midwest grocery-
anchor strategy.  It is our expectation that the remaining two New England
properties will be sold by year-end.
    "With regard to our acquisition program, we remain encouraged by the level
of activity we continue to experience and remain confident that our targeted
1997 acquisition goal of $150 million is achievable.  Our most recent
purchase, Spring Village, enhances our base of Midwest, grocery-anchored
properties and adds another major grocery chain to Bradley's tenant base.  We
are currently in varying stages of negotiations of numerous transactions and
expect that these negotiations will result in completed transactions in coming
quarters."
    In addition to the regular quarterly reports the company also makes
available on a quarterly basis supplemental information which includes
property and corporate level detail.  This information is available upon
request from the company.
    The preceding information contains forward-looking statements of the
company's plans, objectives and expectations, which are dependent upon a
number of factors including no weakness in the Midwestern United States
retailing climate, the continuing availability of retail center acquisitions
in the Midwest, and the ability of the Company to negotiate acceptable sales
terms for its New England properties.  Reference is made to the discussions
under the captions "Risk Factors" in the company's 1996 Form 10-K report,
which includes a discussion of certain other factors that could cause actual
results to differ materially from those in forward-looking statements.
    Bradley Real Estate, Inc. is the nation's oldest real estate investment
trust (REIT) and a leading owner and operator of neighborhood and community
shopping centers located in the Midwest region of the United States.  The
company has paid 143 consecutive quarterly distributions to its share owners,
one of the longest records of distributions among publicly traded REITs.
The company owns 35 properties in 12 states aggregating 7.8 million square
feet of rentable space.


                       BRADLEY REAL ESTATE, INC.
                   CONSOLIDATED STATEMENTS OF INCOME
               (Dollars in thousands, except per share data)




                                                      Quarter ended March 31,
                                                        1997          1996
    Income:
    Rental income                                     $22,855       $11,219
    Other income                                          326           102
      Total                                            23,181        11,321

    Expenses:
      Operations, maintenance and management            3,333         2,085
      Real estate taxes                                 5,068         2,675
      Mortgage and other interest                       3,650         1,385
      Administrative and general                        1,105           555
      Write-off of deferred financing and
        acquisition costs                                --           344
      Depreciation and amortization                     3,930         2,252
        Total                                          17,086         9,296

    Income before gain on sale of property              6,095         2,025

    Gain on sale of property                            3,073         9,379

    Income before allocation to minority interest       9,168        11,404

    Income allocated to minority interest                (244)          (29)

    Net income                                         $8,924       $11,375

    Weighted average shares outstanding            21,665,593    12,536,714

    Net income per share                                $0.41         $0.91

    Funds From Operations:

    Net income                                         $8,924       $11,375
    Company's portion of:
      Net gain on sale of property                     (2,991)       (9,379)
      Depreciation of real estate assets &
        amortization of tenant improvements             3,018         1,657
      Amortization of deferred leasing commissions        316           119
      Other amortization including deferred finance &
        non-real estate related costs                     490           476
      Amortization of deferred finance & non-real
        estate related costs                             (200)         (165)

    Funds From Operations                              $9,557        $4,083

    Per share data:
      Funds From Operations                             $0.44         $0.33


                        BRADLEY REAL ESTATE, INC.
                       CONSOLIDATED BALANCE SHEETS
                 (Dollars in thousands, except share data)

                                                       March 31, December 31,
                                                         1997        1996
                                                                   (audited)
    Assets
    Real estate investments, at cost                   $499,457    $490,133
    Accumulated depreciation and amortization           (33,561)    (30,670)
    Net real estate investments                         465,896     459,463

    Real estate investments held for sale                 9,904      10,285

    Cash and cash equivalents                             3,196       7,462
    Rents and other receivables, net of allowances
      for doubtful accounts of $2,124 and $1,636,
      respectively                                       11,716       9,543
    Deferred charges, net and other assets               14,347      15,531
      Total                                            $505,059    $502,284

    Liabilities and Share Owners' Equity
    Mortgage loans                                     $129,024    $125,394
    Line of credit                                       55,300      63,500
    Accounts payable, accrued expenses and
      other liabilities                                  19,666      19,505
    Total liabilities                                   203,990     208,399

    Minority interest                                     8,010       4,160

    Share Owners' equity:
      Shares of common stock, par value $.01 per
        share; authorized 80,000,000 shares;
        issued and outstanding, 21,669,569 and
        21,658,790, respectively                            217         217
      Additional paid-in capital                        300,434     298,875
      Distributions in excess of accumulated earnings    (7,592)     (9,367)
      Total share owners' equity                        293,059     289,725
        Total                                          $505,059    $502,284

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