Cornerstone Realty Income Trust, Inc.
Ticker:TCR 306 East Main Street
Exchange:New York Stock Exchange Richmond, VA 23219
Industry:Financial (SIC Code 6798) (804) 643-1761

Offering Information
Type of Shares:Common Shares Filing Date:3/20/97
U.S. Shares:4,500,000 Offer Date:4/18/97
Non-U.S. Shares:0 Filing Range:$11.00 - $12.50
Primary Shares:4,500,000 Offer Price:$10.50
Secondary Shares:0 Gross Spread:$0.63
Offering Amount: $52,875,000 Selling:$0.35
Expenses:$798,750 Reallowance:$0.10
Shares Out After:36,523,131

Primary Underwriting Group
ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 895-2700
Branch, Cabell and CompanyCo-manager (804) 225-1451
Friedman, Billings, Ramsey & Co., Inc.Co-manager (703) 312-9571
Interstate/Johnson Lane CorpCo-manager (404) 840-5030

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: McGuire Woods Battle & Boothe
Bank's Law Firm: Hunton & Williams
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$40.35Assets:$322.87
Net Income:-$4.17Curr Assets:
EPS:-$0.21Liabilities:$68.30
Prior EPS:$0.64Curr Liabilities:
Cash Flow/Oper:$20.16Equity:$254.57
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company, a self-administered and self-managed equity REIT headquartered in Richmond, Virginia, is a fully integrated real estate organization with expertise in the management, acquisition and renovation of apartment communities. The company focuses on the ownership of apartment communities located in growing markets in Virginia, North Carolina, South Carolina and Georgia. On February 28, 1997, the company owned 42 apartment communities comprising 9,613 apartment units with an aggregate economic occupancy of 91% and an average monthly rent of $556 per unit as compared to February 28, 1996, when the company owned 20 Properties comprising 4,565 apartment units with an aggregate economic occupancy of 88% and an average monthly rent of $510 per unit. The company's strategy is to own apartment communities that cater to tenants with incomes equal to 90% to 115% of the average local households income.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness.

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