NORTHBROOK, Ill., Aug. 5 /PRNewswire/ -- Bradley Real Estate, Inc.
(NYSE: BTR) today reported second-quarter funds from operations (FFO) of $9.94
million, or $0.46 per share, compared with $8.39 million, or $0.45 per share,
in the prior year's second quarter.
    Net income for the period totaled $5.03 million, or $0.23 per share,
compared with $4.85 million, or $0.26 per share, for the comparable period
last year.  Weighted average shares outstanding for the quarter increased to
21,671,292 from 18,662,532 in the year-ago period.
    For the six months ended June 30, 1997, funds from operations totaled
$19.50 million, or $0.90 per share, compared with $12.49 million, or $0.80 per
share, a year earlier.  Net income was $13.95 million, or $0.64 per share,
compared with $16.23 million, or $1.04 per share, a year earlier.  Net income
for the six months ended June 30, 1997, reflects a $3.07 million gain on the
sale of Hood Commons, located in Derry, New Hampshire, and a $1.3 million loss
pending the probable sale of Meadows Town Mall in Rolling Meadows, Illinois.
Net income for the six months ended June 30, 1996, reflects a $9.38 million
gain on the sale in March 1996 of the company's interest in land under 501-529
Nicollet Avenue in Minneapolis, Minnesota.  Weighted average shares for the
six-month period were 21,668,458 compared with 15,599,623 in the prior-year
period.
    The company's total assets at June 30, 1997, totaled $513 million compared
with $491.7 million a year earlier.  Total debt outstanding at June 30, 1997,
was $193.3 million, of which $128.9 million was fixed rate mortgage debt at a
weighted average rate for the quarter of 7.58 percent, and $64.4 million was
floating rate debt under the company's unsecured line of credit facility which
had a weighted average rate for the quarter of 7.86 percent.

    Review of Operations
    During the quarter the company signed 26 new leases totaling 169,000
square feet at an average base rent of $8.20 per square foot.  In addition,
the company renewed 13 leases totaling 54,000 square feet at an average base
rent of $8.72.  During the quarter, the company signed a new 15-year lease
with OfficeMax to occupy 30,000 square feet at Grandview Plaza in Florissant,
Missouri, bringing the center's percent leased to approximately 94 percent
from 78 percent.  Also during the quarter, the new 55,000-square-foot JC
Penney Homestore began operations at The Commons of Chicago Ridge in Chicago
Ridge, Illinois.  Portfolio occupancy was 90 percent at June 30, 1997, the
same as at March 31, 1997.  If occupancy was adjusted to reflect leases signed
but not yet producing revenue, portfolio occupancy would increase to 92
percent.
    Commenting on leasing activity year-to-date, Steven St. Peter, vice
president of leasing, stated, "We remain very pleased with the level of
leasing activity we have experienced year-to-date, which has included several
large anchor transactions.  The 60,000-square-foot Waccamaw Pottery lease at
Westview Center, the 55,000-square-foot JC Penney lease at Chicago Ridge and
the 30,000-square-foot OfficeMax lease at Grandview represent solid additions
for each of these centers.  Year-to-date, we have signed new leases totaling
265,000 square feet at an average base rent of $7.90 per square foot.  We have
renewed 127,000 square feet of leases at an average base rent of $10.20 per
square foot, representing an average increase of 6.6 percent over the prior
average base rent."

    Review of Acquisition Activity
    In addition to the recently announced acquisition of six Midwest community
shopping centers, the company closed two more acquisitions in the past month:
County Line Center in Indianapolis, Indiana, a 261,000-square-foot center
anchored by Kroger Foods, Target and OfficeMax, and Parkwood Plaza in Des
Moines, Iowa, a 125,000-square-foot center anchored by Super One Foods and
Hollywood Video.  These two centers were purchased at an aggregate cost of
$25.0 million with an expected first-year return of approximately 10.9
percent.
    Commenting on acquisition activity, Dick Heuer, executive vice president
of acquisitions, stated, "Over the past eight months, the company has acquired
13 shopping centers aggregating 1.3 million square feet at a cost of
approximately $89.5 million with an aggregate expected first-year return of
approximately 10.8 percent.  These acquisitions have been consistent with the
company's strategy of focusing on grocery-anchored centers located in strong
Midwest markets.  The average occupancy of the new centers is 95 percent with
upside potential coming from rental increases over time, development of
outlots or expansion of existing tenants, as well as the potential to purchase
adjacent parcels to enhance the overall center.  We are on target to meet or
exceed our goal of $150 million of new acquisitions in 1997 as we continue to
have a solid pipeline of new product, with additional acquisitions presently
in varying stages of negotiation, letters of intent and under contract."

    Review of Disposition Activity
    In keeping with the company's strategic plan to, over time, dispose of
those assets which are non-core to its focus, the company is anticipating the
sale of Meadows Town Mall, located in Rolling Meadows, Illinois, for a price
of $6.1 million, resulting in the recognition of a loss of $1.3 million for
financial reporting purposes, which loss has been recorded in the second
quarter.  Additionally, the company has entered into or is negotiating
definitive contracts for the sale of its two remaining New England assets, 585
Boylston Street located in Boston, Massachusetts and Augusta Plaza located in
Augusta, Maine, with anticipated closing dates of early October of this year.
Based upon the terms of these negotiations the company is anticipating a gain
for financial reporting purposes.  The company has also listed for sale The
Village Shopping Center located in Gary, Indiana.
    Commenting on the company's activities over the first half of the year,
Thomas D'Arcy, president and chief executive officer, stated, "We are pleased
with our results which are in line with our projections for the first half of
the year.  Our company remains intensely focused on the expansion of our
franchise in our targeted Midwest markets and the activities year-to-date
reflect this focus.  The Midwest economy remains vibrant and we believe the
$89.5 million that we have invested thus far, combined with our healthy
acquisition pipeline and strong core portfolio performance, provide a strong
foundation from which to aggressively implement our strategic plan of becoming
the dominant owner of grocery-anchored community and neighborhood shopping
centers in the Midwest."
    D'Arcy added, "During the remainder of the year we will continue to work
on improving overall occupancy levels and rental margins in our core portfolio
while striving to meet or exceed targeted levels of new investment.
Additionally, we will focus on improving the company's capital structure by
seeking to extend the weighted maturity of our debt.  Toward this end, we have
targeted repayment of the company's $100 million REMIC during the fourth
quarter of this year.  Additionally, we continue to position the company for
the unsecured debt markets and remain optimistic in this regard."
    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 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 144 consecutive quarterly distributions to its shareowners,
one of the longest records of distributions among publicly traded REITs.  The
company owns 43 properties located in 12 states aggregating 8.7 million square
feet of rentable space.

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

                                    Three months ended      Six months ended
                                          June 30,              June 30,
                                      1997       1996       1997       1996
    Income:
        Rental income                $23,034    $21,982    $45,889    $33,201
        Other income                     316        453        642        555
          Total                       23,350     22,435     46,531     33,756
    Expenses:
        Operations, maintenance
          and management               3,666      3,707      6,999      5,792
        Real estate taxes              4,559      5,013      9,627      7,688
        Mortgage and other interest    3,581      4,169      7,231      5,554
        Administrative and general     1,154        888      2,259      1,443
        Write-off of deferred
          financing and
          acquisition costs               --         --         --        344
        Depreciation and amortization  3,925      3,724      7,855      5,976
          Total                       16,885     17,501     33,971     26,797
    Income before gain on sale
      and provision for loss
      on real estate investments       6,465      4,934     12,560      6,959
    Gain on sale of property              --         --      3,073      9,379
    Provision for loss on
      real estate investment          (1,300)        --     (1,300)        --
    Income before allocation
      to minority interest             5,165      4,934     14,333     16,338
    Income allocated
      to minority interest              (137)       (82)      (381)      (111)
    Net income                        $5,028     $4,852    $13,952    $16,227
    Weighted average
      shares outstanding          21,671,292 18,662,532 21,668,458 15,599,623
    Net income per share               $0.23      $0.26      $0.64      $1.04
    Funds From Operations:
    Net income                        $5,028     $4,852    $13,952    $16,227
    Company's portion of:
      Net gain on sale of property        --         --     (2,991)    (9,379)
      Provision for loss
        on real estate investment      1,265         --      1,265         --
      Depreciation of real
        estate assets & amortization
        of tenant improvements         3,051      2,952      6,069      4,624
      Amortization of deferred
        leasing commissions              305        269        621        388
      Other amortization including
        deferred finance & non
        real estate related costs        466        503        956        964
      Amortization of deferred
        finance & non real estate
        related costs                   (175)      (188)      (375)      (339)
    Funds From Operations             $9,940     $8,388    $19,497    $12,485
    Per share data:
      Funds From Operations            $0.46      $0.45      $0.90      $0.80

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

                                                     June 30,   December 31,
                                                       1997        1996
                                                                 (audited)
    Assets
    Real estate investments, at cost                 $510,558    $490,133
    Accumulated depreciation and amortization         (36,708)    (30,670)
    Net real estate investments                       473,850     459,463
    Real estate investments held for sale              10,000      10,285
    Cash and cash equivalents                           3,579       7,462
    Rents and other receivables, net
      of allowances for doubtful
      accounts of $2,309 and $1,636, respectively      10,587       9,543
    Deferred charges, net and other assets             14,964      15,531
    Total assets                                     $512,980    $502,284

    Liabilities and Share Owners' Equity
    Mortgage loans                                   $128,868    $125,394
    Line of credit                                     64,400      63,500
    Accounts payable, accrued expenses
      and other liabilities                            20,708      19,505
    Total liabilities                                 213,976     208,399
    Minority interest                                   7,952       4,160
    Share Owners' equity:
      Shares of common stock, par value
        $.01 per share; authorized 80,000,000
        shares; issued and outstanding, 21,676,375
        and 21,658,790, respectively                      217         217
      Additional paid-in capital                      300,551     298,875
      Distributions in excess of accumulated earnings  (9,716)     (9,367)
      Total share owners' equity                      291,052     289,725
    Total liabilities and share owners' equity       $512,980    $502,284

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