Fourth Quarter FFO 63 Cents Versus 53 Cents, up 18.9%

    BOSTON, Jan. 28 /PRNewswire/ -- Beacon Properties Corporation (NYSE: BCN)
today announced results for the fourth quarter and the full year 1996,
together with comparisons for the equivalent periods in 1995.  Funds from
operations (FFO) for the 1995 periods have been restated to reflect new
guidelines introduced in 1996 by the National Association of Real Estate
Investment Trusts (NAREIT).
    FFO for the fourth quarter ended December 31, 1996, totaled $24.6 million
compared with $10.6 million for the fourth quarter of 1995.  FFO per share
equaled 63 cents compared with 53 cents, an increase of 18.9 percent.
Revenues amounted to $62.1 million, including rental income of $50.5 million,
versus $24.5 million, including rental income of $18.8 million, a year
earlier.  The weighted average number of shares totaled 39,356,000 in the
latest quarterly period and 20,194,000 a year earlier.
    For the twelve months ended December 31, 1996, FFO totaled $72.3 million
compared with $34.1 million in 1995.  FFO per share amounted to $2.41 compared
with $2.06, an increase of 17 percent.  Revenues totaled $183.8 million versus
$91 million, including rental income of $147.8 million and $71.1 million
respectively.  The weighted average number of shares totaled 29,932,000 in
1996 and 16,525,000 in 1995.
    Alan M. Leventhal, Beacon Properties' president and chief executive
officer, commented: "The strong improvement in 1996 came from a combination of
factors as we implemented our focused national office strategy.  Principal
among these were the addition of nine million square feet of office space to
Beacon's portfolio over the course of the year, and healthy increases in
rental rates prompted by the rapid office market recovery.  We expect positive
factors to prevail in 1997 and look forward to another successful year."
    Highlights of Beacon's fourth quarter included:
    -- The company's third stock offering of the year -- an initial issue of
13,723,000 shares of common stock priced at $30.75 per share, and a
supplementary issue of 1,132,400 shares at $34.50 per share.
    -- Beacon's first acquisitions in California: 10960 Wilshire Boulevard in
West Los Angeles for $133 million, and two Silicon Valley office parks for an
aggregate $183 million.
    -- The $77 million acquisition of Presidents Plaza in Chicago, near O'Hare
International Airport.
    -- The purchase of 29 acres adjacent to Crosby Corporate Center in
suburban Boston for the development of 250,000 square feet of Class A office
space.

    With the completion of the Presidents Plaza purchase, Beacon recorded a
final total of $1.2 billion in acquisitions during 1996.  Altogether, the
company increased its portfolio to 104 office buildings totaling 15.8 million
square feet while moving for the first time into Atlanta, Chicago, Los Angeles
and San Francisco and reinforcing its presence in Boston and Washington, D.C.
    According to Leventhal, "We have coupled our entry into new core markets
with carefully prepared plans to manage our properties and serve tenants with
the same high standards we have always practiced.  Our first regional office,
Beacon Properties Southeast in Atlanta, will serve as a model as we build up
our nucleus of metropolitan franchises."
    The acquisition program was facilitated by three successful public
offerings of the company's common stock.  In all, the company issued a total
of 27.6 million shares in 1996 and raised nearly $800 million in gross
proceeds.  At year-end, common stock outstanding totaled 54.4 million shares
(including 6.3 million in the form of operating partnership units).  In
connection with several acquisitions, the company also issued nearly
2.6 million operating partnership units.  Beacon's market capitalization
totaled approximately $2 billion and its total capitalization, including
$698 million in debt, amounted to $2.7 billion.  The company's debt-to-total
capitalization ratio was 26 percent, down from 35 percent at year-end 1995.
    Beacon Properties Corporation is a self-administered and self-managed real
estate investment trust (REIT).  One of the nation's largest office REIT's,
Beacon currently owns or has an interest in 104 properties totaling
approximately 15.8 million square feet.  The company specializes in property
acquisitions, management, leasing and development.  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.


                        BEACON PROPERTIES CORPORATION
                           STATEMENTS OF OPERATIONS
                For the Year Ended December 31, 1996 and 1995
                   (in thousands except per share amounts)

                                  Three Months Ended   Twelve Months Ended
                                   12/31/96  12/31/95  12/31/96  12/31/95
     Revenues
     Rental income               $50,518  $18,769  $147,825   $71,050
     Management Fees                 756      789     3,005     2,203
     Recoveries from tenants       5,718    2,446    16,719     9,742
     Mortgage interest income      1,402      982     4,970     2,546
     Other income                  3,688    1,537    11,272     5,502

     Total                        62,082   24,523   183,791    91,043

     Expenses
     Property expenses            12,604    4,621    37,211    18,090
     Real estate taxes             5,634    2,803    18,124    10,217
     General and
      administrative               7,368    2,869    19,331     9,755
     Interest expense              9,561    3,657    30,300    15,226
     Interest - amortization
      of financing costs             466      423     2,084     1,370
     Depreciation and
      amortization                11,447    4,821    33,184    17,428

     Total                        47,080   19,194   140,234    72,086

     Income from operations       15,002    5,329    43,557    18,967

     Equity in net income of
      joint ventures
      and corporations             1,026    1,488     4,989     3,234

     Income from continuing
      operations                  16,028    6,817    48,546    22,191
     Discontinued Operations -
     Construction Co.
      Loss from operations         (698)      ---   (2,609)      (12)
      Loss on sale                 (249)      ---     (249)       ---
     Income before minority
      interest and
      extraordinary items         15,081    6,817    45,688    22,179

     Minority interest in
      Operating Partnership      (1,816)  (1,077)   (5,988)   (4,199)

     Income before
      extraordinary item          13,265    5,740    39,700    18,060

     Extraordinary item, net
      of minority interest           ---      ---   (3,368)       ---

     Net income                  $13,265   $5,740   $36,332   $18,060

     Income from continuing
      operations per
      common share                    $0.36    $0.28      $1.41     $1.09
     Discontinued Operations --
      Construction Co.
      Loss from operations            (0.02)     ---      (0.08)    (0.00)
      Loss on sale                    (O.00)     ---      (0.01)      ---
     Income per common share before
      extraordinary items             $0.34    $0.28      $1.32     $1.09

     Extraordinary items                ---      ---      (0.11)      ---
     Net income per common share      $O.34    $O.28      $1.21     $1.09

     Funds from operations
      before minority
      interest in
      Operating Partnership         $27,811  $12,630    $83,154   $41,913

     Company funds from operations  $24,607  $10,634    $72,253   $34,079

     Funds from operations per
      common share -
      new NAREIT definition           $0.63    $0.53      $2.41     $2.06

     Weighted average common
      shares outstanding             39,356   20,194     29,932    16,525

    Company share of
     Operating Partnership            88.48%   84.20%     86.89%    81.31%

    Joint venture properties:
     Depreciation and amortization   $1,034     $992     $4,033    $2,306
     Interest - amortization of
      financing costs                   225      224        898       853
    Total                            $1,259   $1,216     $4,931    $3,159

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