192 P-2
                         SUPPLEMENT DATED MAY 28, 2008
                   TO THE PROSPECTUS DATED SEPTEMBER 1, 2007
                                      OF
                     FRANKLIN REAL ESTATE SECURITIES FUND

The first six paragraphs, including the portfolio management team, under the
"Management" section on page 14 are replaced with the following:

MANAGEMENT

Franklin Templeton Institutional, LLC (FT Institutional), 600 Fifth Avenue,
New York, New York 10020, serves as the Fund's investment manager pursuant to
an Investment Management Agreement approved by the Fund's shareholders at a
meeting held on May 15, 2008.  Together FT Institutional and its affiliates
manage over $617 billion in assets.

The Fund is managed by a team of dedicated professionals focused on
investments in equity securities of companies operating in the real estate
industry.  The portfolio managers of the team are as follows:

JACK FOSTER  SENIOR VICE PRESIDENT OF FT INSTITUTIONAL

Mr. Foster has been manager of the Fund since February 2008.  He joined
Franklin Templeton Investments in 1987.

BORIS E. PIALLOUX CFA(R)1  PORTFOLIO MANAGER OF FT INSTITUTIONAL

Mr. Pialloux has been a manager of the Fund since February 2008. He joined
Franklin Templeton Investments in 2006. Prior to joining Franklin Templeton,
he was an equity analyst with Deutsche Asset Management/Scudder, and has held
business development and marketing positions with Mitchell Hutchins (UBS
Paine Webber) Weiss, Peck & Greer (Robeco Group), and Societe Generale Asset
Management for at least the prior four years.

DAVID LEVY PORTFOLIO MANAGER OF FT INSTITUTIONAL

Mr. Levy has been a manager of the Fund since February 2008. Prior to joining
Franklin Templeton Investments in 2007, Mr. Levy spent over 16 years at New
York Life Investment Management where, since 1997, he was a portfolio manager
for New York Life's REIT portfolios.

The portfolio managers of the Fund have equal authority over all aspects of
the Fund's investment portfolio, including but not limited to, purchases and
sales of individual securities, portfolio risk assessment, and the management
of daily cash balances in accordance with anticipated management
requirements. The degree to which each manager may perform these functions,
and the nature of these functions, may change from time to time.

1. CFA(R) and Chartered Financial Analyst(R) are trademarks owned by CFA
Institute.

The Fund's SAI provides additional information about the portfolio managers'
compensation, other accounts that they manage and their ownership of Fund
shares.

For the fiscal year ended April 30, 2007, the Fund paid 0.47% of its average
daily net assets to Franklin Advisers, Inc. (Advisers), as manager, for its
services.  Effective February 1, 2008, FT Institutional began managing the
Fund's assets, pursuant to an interim agreement. The terms and conditions
under the new Investment Management Agreement with FT Institutional are
essentially the same as the previous agreement with Advisers, including the
same fee rates.

A discussion regarding the basis for the board of trustees approving the
investment management contract of the Fund with FT Institutional will be
available in the Fund's annual report to shareholders for the fiscal year
ended April 30.

                PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE.