BOSTON, April 24 /PRNewswire/ -- Beacon Properties Corporation (NYSE: BCN)
reported today that Funds from Operations (FFO) for the first quarter ended
March 31, 1997, totaled $31.5 million compared with $12.4 million for the
first quarter of 1996.  FFO per share came to 65 cents versus 56 cents, a
16 percent increase.  The weighted average number of shares totaled 48,157,000
compared with 22,075,000.
    First quarter revenues amounted to $76.7 million, including rental income
of $63.6 million, an increase of 128 percent compared with $33.7 million,
including rental income of $26.9 million, in the first quarter a year earlier.
    Alan M. Leventhal, president and chief executive officer of Beacon
Properties, commented: "Our acquisition program and positive economic factors
in our targeted office markets continue to drive our earnings growth.  The
first quarter of 1997 saw the full effect on revenues of more than four
million square feet of office space acquired during the final quarter of
1996."
    After the conclusion of the first quarter, Beacon's national acquisition
program gained renewed impetus from a stock offering that was successfully
completed despite a sharp decline on Wall Street.  Approximately $153 million
of the $212 million in net proceeds will be used to acquire eight buildings
representing two million square feet in suburban markets of Chicago, Los
Angeles and northern Virginia.  The remainder of the proceeds will be used to
reduce the outstanding balance on the company's bank credit facility.  In
early April, the credit facility was converted from secured to unsecured
status, and the interest rate was reduced by 55 basis points to the Eurodollar
rate plus 120 basis points.
    The acquisitions, which will increase Beacon's total portfolio to
approximately 17.8 million square feet, are in line with the company's
strategy to expand into a select number of large metropolitan markets
distinguished by significant job creation, economic growth and lack of new
office supply.  So far, the company has identified six national target
markets: Boston, Atlanta, Chicago, Los Angeles, San Francisco/San Jose and
Washington DC/Virginia.
    Since Beacon's IPO in 1994, the company's six "follow-on" public offerings
have all consisted of common stock.  To secure increased flexibility in its
financing options, Beacon in March 1997 received investment grade ratings on
prospective unsecured senior debt.  The ratings assignments, by Duff & Phelps
Credit Rating Co., Moody's Investors Service and Standard & Poor's, are
summarized as follows:

    Duff & Phelps               BBB
    Standard & Poor's           BBB
    Moody's Investors Service   (P)Baa3

    Beacon Properties Corporation is a self-administered and self-managed real
estate investment trust (REIT).  One of the nation's largest office REITs,
Beacon specializes in property ownership, management, leasing, design and
development.  The company currently owns or has an interest in 104 properties
totaling approximately 15.8 million square feet.  The pending acquisitions
will increase the portfolio to 112 properties encompassing 17.8 million square
feet.  Further information is available at the company's Internet site:
http://www.beaconproperties.com.
    Certain matters discussed in this press release may constitute forward-
looking statements within the meaning of the Federal securities law.  Although
Beacon believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved.  Factors that could cause actual
results to differ materially from Beacon's current expectations include
general economic conditions, local real estate conditions, timely releasing of
occupied square footage upon expiration, interest rates, availability of
equity and debt financing and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission, including
quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form
10-K.
    (Financial Statements to Follow)


                        BEACON PROPERTIES CORPORATION
                           STATEMENTS OF OPERATIONS
              For The Three Months Ended March 31, 1997 and 1996
                   (in thousands except per share amounts)

                                                          Three Months Ended
                                                           3/31/97   3/31/96
     Revenues:
      Rental income                                      $63,601  $26,920
      Management fees                                        821      750
      Recoveries from tenants                              8,351    3,245
      Mortgage interest income                             1,372      958
      Other income                                         2,575    1,795
       Total:                                             76,720   33,668
     Expenses:
      Property expenses and real estate taxes             14,531    6,896
      Real estate taxes                                    8,334    3,517
      General and administrative                           8,627    3,589
      Interest expense                                    11,022    6,344
      Interest - amortization of financing costs             477      561
      Depreciation and amortization                       14,214    5,862
       Total:                                             57,205   26,769

     Income from operations                               19,515    6,899
     Equity in net income of joint ventures and
      corporations                                         1,439    1,407
     Income from continuing operations                    20,954    8,306
     Discontinued Operations - Construction Company
      Loss from operations                                 (586)    (407)
     Income before minority interest and
      extraordinary item                                  20,368    7,899
     Minority interest in Operating Partnership          (2,348)  (1,227)
     Income before extraordinary item                     18,020    6,672
     Extraordinary item, net of minority interest            ---  (1,678)
     Net income                                          $18,020   $4,994
     Income from continuing operations per common share    $0.38    $0.32
     Discontinued Operations - Construction Company
      Loss from operations                                (0.01)   (0.02)
     Income per common share before extraordinary item      0.37     0.30
     Extraordinary item                                      ---   (0.07)
     Net income per common share                           $0.37    $0.23
     Funds from operations before minority
      interest in Operating Partnership                  $35,589  $14,715
     Company funds from operations                       $31,486  $12,428
     Funds from operations per common share                $0.65    $0.56
     Weighted average common shares outstanding           48,157   22,075
     Company share of Operating Partnership               88.47%   84.46%
     Joint venture properties:
      Depreciation and amortization                       $1,007     $954

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