BOSTON, July 31 /PRNewswire/ -- Beacon Properties Corporation (NYSE: BCN)
reported today that funds from operations (FFO) for the second quarter ended
June 30, 1997, totaled $35.7 million on revenues of $86.0 million compared
with FFO of $16.5 million on revenues of $41.4 million in the second quarter
of 1996.  FFO per share in the second quarter rose to 66 cents versus 61
cents, an increase of 8 percent.
    For the six months ended June 30, 1997, FFO amounted to $67.2 million on
revenues of $162.8 million compared with $29.0 million on revenues of
$75.1 million a year earlier.  First half FFO per share totaled $1.31, an
increase of 12 percent over $1.17 in the first half of 1996.
    The weighted average number of shares totaled 54,133,000 in the second
quarter of 1997 compared with 27,289,000 in the second quarter of 1996, and
51,161,000 in the first half of 1997 versus 24,682,000 a year earlier.
    Commenting on the results, Alan M. Leventhal, president and chief
executive officer of Beacon Properties, said: "Steady growth in the U.S.
economy has continued to generate new office jobs in Beacon's markets and,
with demand outpacing supply in most cases, the resulting increases in
occupancy and rental rates have been major factors behind our improved
results.  The Boston market, which represents 42 percent of Beacon's
portfolio, has been particularly strong.  We have started development projects
in Boston's Route 128 corridor to take advantage of this exceptional surburban
market with its current 4.9 percent vacancy rate.  We also announced a
significant number of acquisitions in the second quarter, and going forward we
expect to see a growing development pipeline to supplement our acquisition
activity."
    Beacon Properties acquired approximately 3.3 million square feet of office
space in the second quarter of 1997, increasing the size of its portfolio
by 22 percent to 18.6 million square feet.  The aggregate purchase price of
the acquisitions totaled approximately $643 million.

    The acquisitions consisted of:
    -- 10880 Wilshire Boulevard, Westwood, CA. 531,000 square feet. Price:
        $102 million.
    -- Centerpointe I and II, Fairfax, VA. 409,000 square feet. Price: $55
        million.
    -- Westbrook Corporate Center, Westchester, IL. 1.1 million square feet.
        Price: $182 million.
    -- 175 Wyman Street, Waltham, MA. 335,000 square feet. Price: $24 million.
    -- 225 Franklin Street, Boston, MA. 930,000 square feet. Price: $280
        million.

    Subsequent to quarter-end, the company acquired Sunnyvale Business Center,
a three-building, 175,000 square foot office property located in Sunnyvale,
California for $33.8 million.  The property is 100 percent occupied by
Advanced Micro Devices, Inc. under a sub-lease from Silicon Graphics, Inc.

    Other second quarter highlights included:
    -- The company's first preferred stock offering, with net proceeds
totaling $193.3 million after the offering was increased to eight million
shares from the six million originally planned.

    -- A common stock add-on offering in April which raised approximately
$212.7 million in net proceeds.

    -- The appointments of Jeremy B. Fletcher as chief executive of Beacon
Properties West, Los Angeles, and E. Valjean (Val) Wheeler as chief
executive of Beacon Properties Midwest, as Beacon Properties continued to
build its regional network.

    -- Groundbreaking of Phase II of Crosby Corporate Center, a three-
building, 256,000 square foot development in Boston's Route 128 suburban
market scheduled to open in the second quarter of 1998.

    Beacon Properties Corporation, with headquarters in Boston, Massachusetts,
is one of the nation's largest real estate investment trusts (REITs).  A
self-administered and self-managed REIT, the company owns or has an
interest in a portfolio of office properties located in major metropolitan
areas, including Boston, Atlanta, Chicago, Los Angeles, San Francisco and
Washington DC.  Beacon's office portfolio currently totals 118 buildings
containing 18.8 million square feet.  The properties are approximately 97
percent leased with over 1,300 tenants. Additional information about Beacon
is available at the company's Internet site at
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 Three and Six Months Ended June 30, 1997 and 1996

                   (in thousands except  per share amounts)



                                Three Months Ended        Six Months Ended
                              6/30/97       6/30/96        6/30/97    6/30/96

    Revenues:
    Rental income          $71,086       $33,130     $134,688       $60,051
    Management fees            758           768        1,579         1,517
    Recoveries from tenants  9,246         3,538       17,598         6,782
    Mortgage interest income 1,387         1,207        2,759         2,165
    Other income             3,562         2,795        6,129         4,591

                            86,039        41,438      162,753        75,106

    Expenses:
    Property expenses       16,785         7,874       31,316        14,770
    Real estate taxes        9,146         4,313       17,480         7,831
    General and
     administrative          9,090         3,774       17,711         7,362
    Interest expense        11,641         7,317       22,663        13,661
    Interest -
     amortization
     of financing costs        260           623          737         1,184
    Depreciation and
     amortization           17,609         7,484       31,823        13,346

                            64,531        31,385      121,730        58,154

    Income from
     operations             21,508        10,053       41,023        16,952

    Equity in net income of
     joint ventures and
     corporations            1,861         1,245        3,300         2,652

    Income from continuing
     operations             23,369        11,298       44,323        19,604

    Discontinued operations -
     Construction Company
    Loss from operations     (887)         (663)      (1,473)       (1,070)
    Gain on sale
     of property            16,736           ---       16,736           ---

    Income before
     minority interest      39,218        10,635       59,586        18,534

    Minority interest in
     Operating
     Partnership           (4,331)       (1,453)      (6,679)       (2,681)

    Income before
     extraordinary items    34,887         9,182       52,907        15,853

    Extraordinary items,
     net of minority
     interest              (2,335)       (1,632)      (2,335)       (3,309)

    Net income              32,552         7,550       50,572        12,544

    Income allocated to
     preferred
     shareholders            (898)           ---        (898)           ---

    Net income available to
     common shareholders   $31,654        $7,550      $49,674       $12,544

    Income per common share
     before extraordinary
     items                    0.62          0.34         1.02          0.64
    Extraordinary items     (0.04)        (0.06)       (0.05)        (0.13)

    Net income per
     common share             0.58          0.28         0.97          0.51

    Funds from operations
     before minority
     interest in
     Operating
     Partnership           $41,161       $19,159      $76,749       $33,874

    Company funds
     from operations       $35,733       $16,543      $67,219       $28,959
    Funds from operations
     per common share        $0.66         $0.81        $1.31         $1.17
    Weighted average
     common shares
     outstanding            54,133        27,289       51,161        24,682

    Company share of
     Operating
     Partnership            88.75%        86.33%       88.62%        85.49%

    Joint venture properties:
     Depreciation and
      amortization          $1,070        $1,040       $2,076        $1,994

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