Franklin Real Estate Securities Trust

12/29/2025 | Press release | Distributed by Public on 12/29/2025 11:47

Semi-Annual Report by Investment Company (Form N-CSRS)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-08034

Franklin Real Estate Securities Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: (650) 312-2000

Date of fiscal year end: April 30

Date of reporting period: October 31, 2025

ITEM 1. REPORT TO STOCKHOLDERS

(a) The Report to Shareholders is filed herewith

Franklin Real Estate Securities Fund
Class A   [FREEX]
Semi-Annual Shareholder Report | October 31, 2025
This semi-annual shareholder reportcontains important information about Franklin Real Estate Securities Fund for the period May 1, 2025, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment*,†
Class A
$54
1.06%
* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.
† Annualized.
KEY FUND STATISTICS (as of October 31, 2025)
Total Net Assets
$239,135,237
Total Number of Portfolio Holdings
42
Portfolio Turnover Rate
19.49%
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
* Does not include derivatives, except purchased options, if any.  
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Franklin Real Estate Securities Fund PAGE 1 192-STSR-1225
Franklin Real Estate Securities Fund
Class C   [FRRSX]
Semi-Annual Shareholder Report | October 31, 2025
This semi-annual shareholder reportcontains important information about Franklin Real Estate Securities Fund for the period May 1, 2025, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment*,†
Class C
$91
1.81%
* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.
† Annualized.
KEY FUND STATISTICS (as of October 31, 2025)
Total Net Assets
$239,135,237
Total Number of Portfolio Holdings
42
Portfolio Turnover Rate
19.49%
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
* Does not include derivatives, except purchased options, if any.  
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Franklin Real Estate Securities Fund PAGE 1 292-STSR-1225
Franklin Real Estate Securities Fund
Class R6   [FSERX]
Semi-Annual Shareholder Report | October 31, 2025
This semi-annual shareholder reportcontains important information about Franklin Real Estate Securities Fund for the period May 1, 2025, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment*,†
Class R6
$33
0.66%
* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.
† Annualized.
KEY FUND STATISTICS (as of October 31, 2025)
Total Net Assets
$239,135,237
Total Number of Portfolio Holdings
42
Portfolio Turnover Rate
19.49%
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
* Does not include derivatives, except purchased options, if any.  
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Franklin Real Estate Securities Fund PAGE 1 372-STSR-1225
Franklin Real Estate Securities Fund
Advisor Class   [FRLAX]
Semi-Annual Shareholder Report | October 31, 2025
This semi-annual shareholder reportcontains important information about Franklin Real Estate Securities Fund for the period May 1, 2025, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment*,†
Advisor Class
$41
0.81%
* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.
† Annualized.
KEY FUND STATISTICS (as of October 31, 2025)
Total Net Assets
$239,135,237
Total Number of Portfolio Holdings
42
Portfolio Turnover Rate
19.49%
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
* Does not include derivatives, except purchased options, if any.  
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Franklin Real Estate Securities Fund PAGE 1 692-STSR-1225

(b) Not applicable

ITEM 2. CODE OF ETHICS.

Not applicable

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Franklin
Real
Estate
Securities
Trust
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
October
31,
2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Semiannual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
8
Notes
to
Financial
Statements
11
Changes
In
and
Disagreements
with
Accountants
19
Results
of
Meeting(s)
of
Shareholders
19
Remuneration
Paid
to
Directors,
Officers
and
Others
19
Board
Approval
of
Management
and
Subadvisory
Agreements
19
Franklin
Real
Estate
Securities
Trust
Financial
Highlights
Franklin
Real
Estate
Securities
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
October
31,
2025
(unaudited)
Year
Ended
April
30,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$16.82
$16.00
$17.61
$21.91
$20.66
$17.11
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.21
0.16
0.33
0.31
0.09
0.14
Net
realized
and
unrealized
gains
(losses)
(0.13)
2.62
(1.03)
(3.97)
2.44
4.91
Total
from
investment
operations
........
0.08
2.78
(0.70)
(3.66)
2.53
5.05
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.41)
(0.36)
(0.23)
(0.18)
(0.21)
Net
realized
gains
.................
-
(1.55)
(0.55)
(0.41)
(1.10)
(1.29)
Total
distributions
...................
(0.08)
(1.96)
(0.91)
(0.64)
(1.28)
(1.50)
Net
asset
value,
end
of
period
..........
$16.82
$16.82
$16.00
$17.61
$21.91
$20.66
Total
return
c
.......................
0.50%
17.71%
(4.34)%
(16.70)%
11.99%
30.97%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.06%
1.03%
1.16%
f
1.05%
f
1.11%
1.07%
f
Net
investment
income
...............
2.44%
0.89%
1.94%
1.66%
0.41%
0.77%
Supplemental
data
Net
assets
,
end
of
period
(000's)
........
$184,652
$198,076
$199,460
$262,766
$361,133
$318,415
Portfolio
turnover
rate
................
19.49%
28.21%
17.38%
10.69%
22.14%
19.61%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Real
Estate
Securities
Trust
Financial
Highlights
Franklin
Real
Estate
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
October
31,
2025
(unaudited)
Year
Ended
April
30,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.31
$14.72
$16.29
$20.39
$19.37
$16.12
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.13
0.02
0.19
0.15
(0.08)
-
c
Net
realized
and
unrealized
gains
(losses)
(0.11)
2.43
(0.95)
(3.69)
2.29
4.61
Total
from
investment
operations
........
0.02
2.45
(0.76)
(3.54)
2.21
4.61
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.31)
(0.26)
(0.15)
(0.09)
(0.07)
Net
realized
gains
.................
-
(1.55)
(0.55)
(0.41)
(1.10)
(1.29)
Total
distributions
...................
(0.05)
(1.86)
(0.81)
(0.56)
(1.19)
(1.36)
Net
asset
value,
end
of
period
..........
$15.28
$15.31
$14.72
$16.29
$20.39
$19.37
Total
return
d
.......................
0.12%
16.92%
(5.06)%
(17.38)%
11.13%
29.96%
Ratios
to
average
net
assets
e
Expenses
f
.........................
1.81%
1.77%
1.91%
g
1.80%
g
1.87%
1.82%
g
Net
investment
income
(loss)
..........
1.70%
0.14%
1.18%
0.89%
(0.38)%
0.02%
Supplemental
data
Net
assets
,
end
of
period
(000's)
........
$4,318
$4,789
$5,988
$9,132
$17,704
$23,912
Portfolio
turnover
rate
................
19.49%
28.21%
17.38%
10.69%
22.14%
19.61%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Real
Estate
Securities
Trust
Financial
Highlights
Franklin
Real
Estate
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
October
31,
2025
(unaudited)
Year
Ended
April
30,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$17.26
$16.37
$17.99
$22.39
$21.03
$17.39
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.25
0.22
0.46
0.41
0.21
0.22
Net
realized
and
unrealized
gains
(losses)
(0.12)
2.69
(1.08)
(4.07)
2.49
4.99
Total
from
investment
operations
........
0.13
2.91
(0.62)
(3.66)
2.70
5.21
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.47)
(0.45)
(0.33)
(0.24)
(0.28)
Net
realized
gains
.................
-
(1.55)
(0.55)
(0.41)
(1.10)
(1.29)
Total
distributions
...................
(0.13)
(2.02)
(1.00)
(0.74)
(1.34)
(1.57)
Net
asset
value,
end
of
period
..........
$17.26
$17.26
$16.37
$17.99
$22.39
$21.03
Total
return
c
.......................
0.77%
18.13%
(3.83)%
(16.29)%
12.56%
31.51%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.89%
0.75%
0.72%
0.62%
0.63%
0.73%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.66%
0.66%
0.64%
e
0.57%
e
0.60%
0.67%
e
Net
investment
income
...............
2.84%
1.23%
2.61%
2.16%
0.93%
1.16%
Supplemental
data
Net
assets
,
end
of
period
(000's)
........
$21,059
$21,280
$17,073
$35,251
$37,871
$32,831
Portfolio
turnover
rate
................
19.49%
28.21%
17.38%
10.69%
22.14%
19.61%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Real
Estate
Securities
Trust
Financial
Highlights
Franklin
Real
Estate
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
Six
Months
Ended
October
31,
2025
(unaudited)
Year
Ended
April
30,
2025
2024
2023
2022
2021
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$17.18
$16.29
$17.91
$22.29
$20.97
$17.35
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.24
0.20
0.39
0.36
0.15
0.19
Net
realized
and
unrealized
gains
(losses)
(0.13)
2.69
(1.06)
(4.06)
2.48
4.98
Total
from
investment
operations
........
0.11
2.89
(0.67)
(3.70)
2.63
5.17
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.45)
(0.40)
(0.27)
(0.21)
(0.26)
Net
realized
gains
.................
-
(1.55)
(0.55)
(0.41)
(1.10)
(1.29)
Total
distributions
...................
(0.11)
(2.00)
(0.95)
(0.68)
(1.31)
(1.55)
Net
asset
value,
end
of
period
..........
$17.18
$17.18
$16.29
$17.91
$22.29
$20.97
Total
return
c
.......................
0.66%
18.08%
(4.10)%
(16.52)%
12.25%
31.27%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.81%
0.78%
0.91%
f
0.80%
f
0.86%
0.82%
f
Net
investment
income
...............
2.70%
1.13%
2.22%
1.91%
0.65%
1.01%
Supplemental
data
Net
assets
,
end
of
period
(000's)
........
$29,107
$30,506
$27,865
$40,211
$63,140
$67,206
Portfolio
turnover
rate
................
19.49%
28.21%
17.38%
10.69%
22.14%
19.61%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Real
Estate
Securities
Trust
Schedule
of
Investments
(unaudited),
October
31,
2025
Franklin
Real
Estate
Securities
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Shares
a
Value
a
Common
Stocks
99.7%
Data
Center
REITs
12.0%
Digital
Realty
Trust,
Inc.
................................
United
States
69,914
$
11,914,045
Equinix,
Inc.
.........................................
United
States
19,869
16,809,372
28,723,417
Diversified
REITs
2.5%
Broadstone
Net
Lease,
Inc.
..............................
United
States
150,544
2,697,749
Essential
Properties
Realty
Trust,
Inc.
......................
United
States
109,650
3,276,342
5,974,091
Health
Care
REITs
15.6%
American
Healthcare
REIT,
Inc.
...........................
United
States
74,914
3,395,103
Sabra
Health
Care
REIT,
Inc.
............................
United
States
145,692
2,596,231
Ventas,
Inc.
..........................................
United
States
102,748
7,581,775
Welltower,
Inc.
.......................................
United
States
131,476
23,802,415
37,375,524
Hotel
&
Resort
REITs
2.1%
Ryman
Hospitality
Properties,
Inc.
.........................
United
States
38,097
3,311,010
Sunstone
Hotel
Investors,
Inc.
............................
United
States
200,777
1,776,877
5,087,887
Industrial
REITs
11.3%
EastGroup
Properties,
Inc.
..............................
United
States
26,603
4,643,022
First
Industrial
Realty
Trust,
Inc.
..........................
United
States
82,616
4,567,012
Prologis,
Inc.
.........................................
United
States
122,891
15,249,544
STAG
Industrial,
Inc.
...................................
United
States
65,241
2,496,773
26,956,351
Multi-Family
Residential
REITs
7.6%
AvalonBay
Communities,
Inc.
............................
United
States
49,458
8,601,735
Camden
Property
Trust
.................................
United
States
69,882
6,951,861
a
GO
Residential
Real
Estate
Investment
Trust
,
144A
,
Reg
S
......
United
States
81,942
938,236
Independence
Realty
Trust,
Inc.
..........................
United
States
98,274
1,565,505
18,057,337
Office
REITs
4.2%
BXP,
Inc.
............................................
United
States
47,037
3,348,564
Cousins
Properties,
Inc.
................................
United
States
115,061
2,983,532
Highwoods
Properties,
Inc.
..............................
United
States
69,730
1,996,370
SL
Green
Realty
Corp.
.................................
United
States
32,696
1,678,939
10,007,405
Other
Specialized
REITs
3.2%
Iron
Mountain,
Inc.
....................................
United
States
73,600
7,577,120
Real
Estate
Services
3.3%
b
CBRE
Group,
Inc.
,
A
...................................
United
States
43,831
6,681,160
Newmark
Group,
Inc.
,
A
................................
United
States
67,204
1,198,247
7,879,407
Retail
REITs
16.7%
Agree
Realty
Corp.
....................................
United
States
34,009
2,482,997
Brixmor
Property
Group,
Inc.
.............................
United
States
242,484
6,343,382
InvenTrust
Properties
Corp.
..............................
United
States
68,282
1,870,927
Macerich
Co.
(The)
....................................
United
States
144,172
2,472,550
NETSTREIT
Corp.
....................................
United
States
245,449
4,570,260
Realty
Income
Corp.
...................................
United
States
190,185
11,026,926
Franklin
Real
Estate
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
Real
Estate
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Retail
REITs
(continued)
Regency
Centers
Corp.
.................................
United
States
80,787
$
5,570,264
Simon
Property
Group,
Inc.
..............................
United
States
32,075
5,637,502
39,974,808
Self-Storage
REITs
5.5%
CubeSmart
..........................................
United
States
88,507
3,334,059
Extra
Space
Storage,
Inc.
...............................
United
States
55,676
7,434,973
Smartstop
Self
Storage
REIT,
Inc.
.........................
United
States
70,207
2,411,610
13,180,642
Single-Family
Residential
REITs
4.6%
American
Homes
4
Rent
,
A
..............................
United
States
219,160
6,925,456
Equity
LifeStyle
Properties,
Inc.
...........................
United
States
67,948
4,148,225
11,073,681
Telecom
Tower
REITs
9.1%
American
Tower
Corp.
..................................
United
States
66,681
11,934,565
Crown
Castle,
Inc.
.....................................
United
States
109,999
9,924,110
21,858,675
Timber
REITs
2.0%
Weyerhaeuser
Co.
....................................
United
States
208,118
4,786,714
Total
Common
Stocks
(Cost
$
163,419,056
)
.....................................
238,513,059
Short
Term
Investments
0.4%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.4%
c,d
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
4.038
%
United
States
868,968
868,968
Total
Money
Market
Funds
(Cost
$
868,968
)
.....................................
868,968
Total
Short
Term
Investments
(Cost
$
868,968
)
..................................
868,968
a
Total
Investments
(Cost
$
164,288,024
)
100.1
%
..................................
$239,382,027
Other
Assets,
less
Liabilities
(
0.1
)
%
...........................................
(246,790)
Net
Assets
100.0%
...........................................................
$239,135,237
See
Abbreviations
on
page
18
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2025,
the
value
of
this
security
was
$938,236,
representing
0.4%
of
net
assets.
b
Non-income
producing.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Real
Estate
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
October
31,
2025
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
Franklin
Real
Estate
Securities
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$184,651,731
Shares
outstanding
........................................................................
10,974,948
Net
asset
value
per
share
a
,b
..................................................................
$16.82
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.50
%
)
b
................................
$17.80
Class
C:
Net
assets,
at
value
.......................................................................
$4,317,562
Shares
outstanding
........................................................................
282,495
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$15.28
Class
R6:
Net
assets,
at
value
.......................................................................
$21,058,757
Shares
outstanding
........................................................................
1,220,399
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$17.26
Advisor
Class:
Net
assets,
at
value
.......................................................................
$29,107,187
Shares
outstanding
........................................................................
1,694,514
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$17.18
Franklin
Real
Estate
Securities
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$163,419,056
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
868,968
Value
-
Unaffiliated
issuers
..................................................................
$238,513,059
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
868,968
Cash
....................................................................................
27,605
Receivables:
Capital
shares
sold
........................................................................
94,441
Dividends
...............................................................................
97,519
Total
assets
..........................................................................
239,601,592
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
151,451
Management
fees
.........................................................................
114,273
Distribution
fees
..........................................................................
43,871
Transfer
agent
fees
........................................................................
81,839
Registration
and
filing
fees
..................................................................
24,049
Professional
fees
.........................................................................
31,888
Trustees'
fees
and
expenses
.................................................................
31
Accrued
expenses
and
other
liabilities
...........................................................
18,953
Total
liabilities
.........................................................................
466,355
Net
assets,
at
value
.................................................................
$239,135,237
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$160,730,414
Total
distributable
earnings
(losses)
.............................................................
78,404,823
Net
assets,
at
value
.................................................................
$239,135,237
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Real
Estate
Securities
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
October
31,
2025
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
Franklin
Real
Estate
Securities
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,987)
Unaffiliated
issuers
........................................................................
$4,385,119
Non-controlled
affiliates
(Note
3
f
)
.............................................................
25,264
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
(5,578)
Non-controlled
affiliates
(Note
3
f
)
.............................................................
7,033
Total
investment
income
...................................................................
4,411,838
Expenses:
Management
fees
(Note
3
a
)
...................................................................
693,063
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
244,492
Class
C
................................................................................
23,252
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
171,631
Class
C
................................................................................
4,083
Class
R6
...............................................................................
28,011
Advisor
Class
............................................................................
26,708
Custodian
fees
............................................................................
1,233
Reports
to
shareholders
fees
..................................................................
18,707
Registration
and
filing
fees
....................................................................
30,061
Professional
fees
...........................................................................
36,181
Trustees'
fees
and
expenses
..................................................................
1,655
Other
....................................................................................
14,738
Total
expenses
.........................................................................
1,293,815
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(26,127)
Net
expenses
.........................................................................
1,267,688
Net
investment
income
................................................................
3,144,150
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
3,362,250
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(4,939,835)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(45)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(4,939,880)
Net
realized
and
unrealized
gain
(loss)
............................................................
(1,577,630)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$1,566,520
Franklin
Real
Estate
Securities
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
Franklin
Real
Estate
Securities
Fund
Six
Months
Ended
October
31,
2025
(unaudited)
Year
Ended
April
30,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$3,144,150
$2,507,280
Net
realized
gain
(loss)
.................................................
3,362,250
25,118,280
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(4,939,880)
16,191,089
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
1,566,520
43,816,649
Distributions
to
shareholders:
Class
A
.............................................................
(952,776)
(22,654,414)
Class
C
.............................................................
(14,273)
(574,077)
Class
R6
............................................................
(164,228)
(2,078,840)
Advisor
Class
........................................................
(198,137)
(3,415,183)
Total
distributions
to
shareholders
..........................................
(1,329,414)
(28,722,514)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(13,639,027)
(13,495,940)
Class
C
.............................................................
(468,511)
(1,583,006)
Class
R6
............................................................
(217,419)
3,213,050
Advisor
Class
........................................................
(1,427,207)
1,035,990
Total
capital
share
transactions
............................................
(15,752,164)
(10,829,906)
Net
increase
(decrease)
in
net
assets
...................................
(15,515,058)
4,264,229
Net
assets:
Beginning
of
period
.....................................................
254,650,295
250,386,066
End
of
period
..........................................................
$239,135,237
$254,650,295
Franklin
Real
Estate
Securities
Trust
11
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Franklin
Real
Estate
Securities
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Real
Estate
Securities
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of one fund,
Franklin
Real
Estate
Securities
Fund (Fund).
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers four
classes
of
shares:
Class
A,
Class
C,
Class
R6
and
Advisor
Class. Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund's
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund's
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
12
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2025, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis. Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Distributions
to
shareholders
are recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
Distributions
received
by
the
Fund from
certain
securities
may
be
a
return
of
capital
(ROC).
Such
distributions
reduce
the
cost
basis
of
the
securities,
and
any
distributions
in
excess
of
the
cost
basis
are
recognized
as
capital
gains.
For
U.S.
Real
Estate
Investment
Trust
(REIT)
securities,
the Fund
records
ROC
estimates,
if
any,
on
the
ex-dividend
date
and
are
adjusted
once
actual
tax
designations
are
known.
e.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Foreign
Currency
Translation
(continued)
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
13
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
f.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
October
31,
2025
Year
Ended
April
30,
2025
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
304,953
$5,170,884
671,222
$11,742,518
Shares
issued
in
reinvestment
of
distributions
..........
53,704
909,612
1,322,516
21,861,633
Shares
redeemed
...............................
(1,162,211)
(19,719,523)
(2,685,066)
(47,100,091)
Net
increase
(decrease)
..........................
(803,554)
$(13,639,027)
(691,328)
$(13,495,940)
Class
C
Shares:
Shares
sold
...................................
10,560
$163,225
25,671
$410,936
Shares
issued
in
reinvestment
of
distributions
..........
927
14,273
38,127
574,060
Shares
redeemed
a
..............................
(41,862)
(646,009)
(157,603)
(2,568,002)
Net
increase
(decrease)
..........................
(30,375)
$(468,511)
(93,805)
$(1,583,006)
Class
R6
Shares:
Shares
sold
...................................
207,360
$3,609,360
453,161
$8,139,916
Shares
issued
in
reinvestment
of
distributions
..........
9,439
164,110
122,378
2,077,202
Shares
redeemed
...............................
(229,302)
(3,990,889)
(385,886)
(7,004,068)
Net
increase
(decrease)
..........................
(12,503)
$(217,419)
189,653
$3,213,050
Advisor
Class
Shares:
Shares
sold
...................................
122,590
$2,118,866
280,617
$5,034,185
Shares
issued
in
reinvestment
of
distributions
..........
8,580
148,439
151,198
2,552,475
Shares
redeemed
...............................
(212,781)
(3,694,512)
(365,778)
(6,550,670)
Net
increase
(decrease)
..........................
(81,611)
$(1,427,207)
66,037
$1,035,990
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
14
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management fee,
calculated daily and
paid
monthly,
to
Advisers based
on the
average
daily net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2025,
the
annualized
gross
effective
investment
management
fee
rate
was 0.550%
of
the
Fund's
average daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Advisers
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
Class
A
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rate,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Class
A
....................................................................................
0.25%
Class
C
....................................................................................
1.00%
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
15
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Fund
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2025,
the Fund
paid
transfer
agent
fees
as
noted
in
the
Statement of
Operations,
of
which
$112,538
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$3,447
CDSC
retained
..............................................................................
$327
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Real
Estate
Securities
Fund
Non-Controlled
Affiliates
Dividends
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
4.038%
............
$1,190,280
$15,824,974
$(16,146,286)
$-
$-
$868,968
868,968
$25,264
3.
Transactions
with
Affiliates
(continued)
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
16
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Fund have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2026.
4.
Income
Taxes
At
October
31,
2025,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales
and
corporate
actions.
5.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
October
31,
2025,
aggregated
$48,362,236 and
$61,819,873,
respectively.
6.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
its
total
assets
in
REIT securities.
Such
concentration
may
subject
the
Fund
to
special
risks
associated
with
real
estate
securities.
These
securities
may
be
more
sensitive
to
economic
or
regulatory
developments
due
to
a
variety
of
factors
such
as
local,
regional,
national
and
global
economic
conditions,
interest
rates
and
tax
considerations.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Real
Estate
Securities
Fund
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
4.038%
............
$-
$7,202,000
$(7,202,000)
$-
$-
$-
-
$7,033
Total
Affiliated
Securities
...
$1,190,280
$23,026,974
$(23,348,286)
$-
$-
$868,968
$32,297
Cost
of
investments
..........................................................................
$174,502,004
Unrealized
appreciation
........................................................................
$81,120,990
Unrealized
depreciation
........................................................................
(16,240,967)
Net
unrealized
appreciation
(depreciation)
..........................................................
$64,880,023
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
17
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
7.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
30,
2026.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
may,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
October
31,
2025,
the Fund
did
not
use
the
Global
Credit
Facility.
8.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
-
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
-
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
-
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
October
31,
2025,
all
of
the Fund's
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level 1
inputs.
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
9.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
portfolio
managers
assigned
to
the
Fund
within
the
Fund's
Investment
manager serve
as
the
Chief
Operating
Decision
Maker
("CODM")
and
are
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund's
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
Franklin
Real
Estate
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
18
franklintempleton.com
Semiannual
Report
Franklin
Real
Estate
Securities
Fund
(continued)
10.
New
Accounting
Pronouncements
In
December
2023,
the
FASB
issued
ASU
No.
2023-09,
Income
Taxes
(Topic
740)
-
Improvements
to
Income
Tax
Disclosures.
The
amendments
enhance
income
tax
disclosures
by
requiring
greater
disaggregation
in
the
rate
reconciliation
and
income
taxes
paid
by
jurisdiction,
while
removing
certain
disclosure
requirements.
The
ASU
is
effective
for
annual
periods
beginning
after
December
15,
2024,
with
early
adoption
permitted.
Management
is
currently
evaluating
the
impact
and
believes
that
the
adoption
of
the
ASU
will
not
have
a
material
impact
on
the
financial
statements.
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
REIT
Real
Estate
Investment
Trust
Franklin
Real
Estate
Securities
Trust
19
franklintempleton.com
Semiannual
Report
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund's
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Not
applicable.
4192-SFSOI
12/25
©
2025
Franklin
Templeton.
All
rights
reserved.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 16. CONTROLS AND PROCEDURES.
(a) The Registrant's chief executive officer and chief financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
(a) Not applicable.
(b) Not applicable.
ITEM 19. EXHIBITS.

(a) (1) Not applicable

Exhibit 99.CODE ETH

Exhibit 99.CERT

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Franklin Real Estate Securities Trust

By: /s/ Christopher Kings
Christopher Kings
Chief Executive Officer - Finance and Administration
Date: December 29, 2025

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Christopher Kings
Christopher Kings
Chief Executive Officer - Finance and Administration
Date: December 29, 2025
By: /s/ Jeffrey White
Jeffrey White
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date: December 29, 2025
Franklin Real Estate Securities Trust published this content on December 29, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on December 29, 2025 at 17:47 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]