T. Rowe Price Realty Income Fund III
            America's Sales-Commission-Free Real Estate Limited Partnership 
Consolidated Real Estate and Accumulated Depreciation                                                                  
                                                                                  
December 31, 1996           
                                   
                               Dollars in Thousands (000's)
                                                       
                                                    
  Description              Type           Encumbrance

Properties Held for Real 
  Estate Investment

Scripps Terrace                 Business Park          $0
  San Diego, California

Tierrasanta                     Business Park          0
  San Diego, California

Clark Avenue                    Office                 0
  King of Prussia, PA

Westbrook Commons               Retail                 0
  Westchester, Illinois

River Run                       Retail                 0 
  Miramar, Florida  
                                                    _________

Totals                                                 $0
                                                             

Properties Held for Sale

Winnetka                        Industrial            $0
  Crystal, Minnesota

Wood Dale                       Industrial             0
  Wood Dale, Illinois    

Riverview                       Industrial             0
  St. Paul, Minnesota

South Point Plaza                 Retail               0
  Tempe, Arizona                  
                                                    __________
 
Totals                                                $0       
                                                    <PAGE>
                                  Initial Cost
                                                                  Costs
                                                             Capitalized
                                             Buildings and  Subsequent to
  Description                   Land    Improvements  Acquisition (8)

Properties Held for Real 
  Estate Investment

Scripps Terrace (1)          $ 2,500   $ 2,397 ($ 2,712)
  San Diego, California

Tierrasanta (1)                  1,350     2,411    (2,034)
  San Diego, California 

Clark Avenue (1)               1,100     2,709   (1,212)
  King of Prussia, PA 

Westbrook Commons        1,700   3,431          629
  Westchester, Illinois 

River Run                         1,850     5,850           25
  Miramar, Florida  
                                _______   _______       ________

Totals                          $ 8,500   $16,798       $(5,304)
                                                            
Properties Held for Sale

Winnetka                        $   685   $ 4,662    $   539
  Crystal, Minnesota 

Wood Dale                           819     2,389      486
  Wood Dale, Illinois     

Riverview                           633     2,867        711          
  St. Paul, Minnesota

South Point Plaza                 1,275     2,335  (1,190)
  Tempe, Arizona                  
                                _______   _______ _________

Totals                          $ 3,412   $12,253       $   546  
<PAGE>
                              Gross Amounts at which Carried at Close 
                                          of Period
                                                         
                                                 Buildings and     
  Description                   Land     Improvements    Total (2)

Properties Held for Real 
  Estate Investment

Scripps Terrace                 $ 1,706   $   479     $ 2,185
  San Diego, California

Tierrasanta                             775       952        1,727
  San Diego, California

Clark Avenue                       851     1,746       2,597
  King of Prussia, PA

Westbrook Commons          1,700   4,060      5,760
  Westchester, Illinois

River Run                         1,850     5,875       7,725  
  Miramar, Florida  
                                _______   _______       ________

Totals                          $ 6,882   $13,112   $19,994
                                                            
Properties Held for Sale

Winnetka                         $  685   $ 5,201   $ 5,886
  Crystal, Minnesota

Wood Dale                           819     2,875        3,694   
  Wood Dale, Illinois

Riverview                          633      3,578        4,211
  St. Paul, Minnesota                      

South Point Plaza                  539      1,881       2,420
  Tempe, Arizona                           
                                _______   ________      _______

Totals                          $2,676    $13,535        $16,211
<PAGE>
                                                                                                    
                              Accumulated     Date of       Date
  Description              Depreciation (3) Construction Acquired

Properties Held for Real 
  Estate Investment

Scripps Terrace (1)             $     0        1985       02/88
  San Diego, Calfornia

Tierrasanta (1)                       0        1984       04/88
  San Diego, California

Clark Avenue (1)                      0        1980       10/88
  King of Prussia, PA

Westbrook Commons                   849 1982   12/90
  Westchester, Illinois

River Run                           210        1988       10/95
  Miramar, Florida  
                                _______   
 
Totals                          $ 1,059   
                                       
Properties Held for Sale

Winnetka                        $ 1,804        1982       03/88
  Crystal, Minnesota

Wood Dale                           725        1980       09/88
  Wood Dale, Illinois

Riverview                           991        1972       12/88
  St. Paul, Minnesota

South Point Plaza                   905        1987       04/88
  Tempe, Arizona

                                ________  

Totals                          $ 4,425      

<PAGE>
                                             Life on which 
                                             Depreciation
                                              in Latest
                                             Statement of
                                             Operations is
  Description                                 Computed

Properties Held for Real Estate Investment

Scripps Terrace (1)                          5 - 40 years             
  San Diego, California

Tierrasanta (1)                              5 - 40 years
  San Diego, California

Clark Avenue (1)                             5 - 40 years
  King of Prussia, PA

Westbrook Commons                            5 - 40 years
  Westchester, Illinois

River Run                                    5 - 40 years
  Miramar, Florida  
                                

Properties Held for Sale

Winnetka                                     5 - 40 years        
  Crystal, Minnesota

Wood Dale                                    5 - 40 years   
  Wood Dale, Illinois                        

Riverview                                    5 - 40 years   
  St.Paul, Minnesota                                   

South Point Plaza                            5 - 40 years        
  Tempe, Arizona                                       

<PAGE>
Notes:          
(1)  The Partnership recorded provisions for value impairments for these
properties in 1996 and offset the related accumulated depreciation
against the historical cost in setting a new carrying value for these
properties.                                                                          
(2)  Reconciliation of real estate owned for Real Estate Property
Investments, excluding properties held for sale which are shown net of
accumulated depreciation in the financial statements:

                                                           1996      1995      1994
                                                                      
Balance at beginning of period     $45,320   $38,492   $42,005
Property Investments/Acquisitons
during period (6)                        --          7,700      --
Capital additions during period      1,081         1,176       665
Property dispositions during 
period                                  ( 4,492)    --              (1,082)
Reductions during period (4)       (19,165)     (472)         --
Decline of Property Values         ( 2,750)        (1,576)   (3,096)
                                                    ________   ________   ________

Balance at end of period           $19,994   $45,320   $38,492

(3)  Reconciliation of accumulated depreciation for Real Estate Property
     Investments:                   
                                      1996     1995    1994 

Balance at beginning of period      $7,831    $7,037    $5,633
Property dispositions during 
period                               ( 661)      --        --
Reductions during period (4)        (7,379)    ( 472)     (168)
Depreciation and amortization
expense                              1,268     1,266     1,572              
                                     ______    ______    ______

Balance at end of period            $1,059    $7,831    $7,037

(4)  Reductions during 1996 reflect the offset of accumulated
depreciation against the cost basis for properties with value
impairments recorded during the year of $2,954, and the transfer of
real estate owned for investment to Properties Held for Sale at a
gross cost of $16,211 and accumulated depreciation of $4,425.

(5)  Not used.

(6)  During 1995, the Partnership foreclosed on River Run's
participating mortgage loan and assumed ownership of the property and
recorded the investment in real estate at $7,700. See Note 5 of Notes
to Financial Statements.

(7)  Aggregate cost of real estate owned at December 31, 1996 for
Federal income tax purposes was approximatley $44,384.

(8)    Includes the effect of recording property valuation allowances
and impairments.<PAGE>