First Quarter Results                 First Quarter Highlights
    -- $65.4 million total revenue        -- 8% per diluted share FFO growth
    -- $0.67 per share FFO                -- 11% same-store revenue growth
    -- $0.465 per share cash dividends    -- 13% same-store NOI growth
    -- 70% FFO payout ratio               -- 95% occupancy

    SAN FRANCISCO, April 19 /PRNewswire/ -- BRE Properties, Inc., (NYSE: BRE)
today reported operating results for the quarter ended March 31, 2001. For the
quarter, funds from operations (FFO), the generally accepted measure of
operating performance for real estate investment trusts, achieved a record
level of $32.4 million, or $0.67 per diluted share, an 8.1% per share
increase, from $29.5 million, or $0.62 per diluted share, for the same period
in 2000. Revenues for first quarter 2001 increased 6.1% to $65.4 million, from
$61.6 million a year ago. Net income available to common shareholders for
first quarter 2001 totaled $17.7 million, or $0.38 per diluted share, as
compared with $19.2 million, or $0.42 per diluted share, for the same period
in 2000.
    For the quarter, cash dividend payments to common shareholders totaled
$21.5 million, or $0.465 per share, a 9.4% per share increase, from
$19.0 million, or $0.425 per share, for the same period 2000. Correspondingly,
the FFO payout ratio for Q1 2001 was 70%, as compared with 69% for Q1 2000.

    Portfolio Performance
    Physical occupancy levels averaged 95% during the quarter, as compared
with 96% during first quarter 2000. For the 18,227 apartments included in the
first quarter "same-store" results, net operating income (NOI) increased by
13%, and same-store revenues increased by 11%. The following tables provide
same-store operating data.

                           Same-Store % Growth Results
                           Q1 2001 Compared to Q1 2000

                            Rental     Operating                 % of Total
                           Revenue      Expenses          NOI           NOI


    San Francisco              17%            7%          20%           31%
    L.A./Orange County         12%           13%          11%           13%
    Portland                   11%            8%          13%            2%
    San Diego                  10%            8%          11%           15%
    Sacramento                 10%            0%          14%            8%
    Seattle                     8%            3%          10%           10%
    Salt Lake City              6%            0%           8%            5%
    Denver                      6%           -3%          10%            4%
    Phoenix                     4%            3%           4%           11%
    Tucson                     -1%            9%         -11%            1%

        Total/Average          11%           6%            13%         100%


    Same-store property results were influenced by higher average monthly
rents and lower annualized turnover rates. On a year-over-year basis, average
gross potential monthly rents increased to $1,030 from $942 in the same-store
portfolio. For the first quarter, operating margins were 73.1%, as compared
with 72.9% in the same period in 2000.
    During the first quarter, same-store operating results were supported by
improvements in the company's California markets, generating NOI growth, by
metro, from 11% to 20%. Portfolio-wide same-store operating expenses increased
6% for the quarter.  The overall increase in expenses was attributable
primarily to increased payroll expense, the timing of certain repair and
maintenance expenses, and increased energy costs. The increase in energy costs
was related mainly to five apartment communities in the
Los Angeles/Orange County market where the company is responsible for the
natural gas expense of providing hot water service. BRE currently anticipates
that same-store operating expense growth during 2001 will range from 4% to 5%.


                     Same-Store Occupancy and Turnover Rates
                           Q1 2001 Compared to Q1 2000

                                Occupancy Levels          Turnover Ratio
                              Q1/01        Q1/00         Q1/01         Q1/00

    San Francisco              95%           98%          53%           62%
    L.A./Orange County         98%           95%          43%           50%
    Portland                   96%           96%          44%           46%
    San Diego                  96%           96%          58%           56%
    Sacramento                 97%           96%          65%           67%
    Seattle                    98%           97%          48%           47%
    Salt Lake City             94%           93%          72%           75%
    Denver                     98%           99%          71%           75%
    Phoenix                    95%           95%          65%           63%
    Tucson                     94%           95%          46%           58%
        Total/Average          96%           96%          56%           59%


    The San Francisco market generated same-store NOI growth of 20% and
revenue growth of 17%.  Occupancy levels averaged 95% during first quarter
2001, as compared with 98% a year ago. The current economic climate in the
San Francisco Bay area has influenced occupancy levels and reduced market
level rents approximately 2% during first quarter 2001. BRE currently
anticipates that market level rents in the San Francisco Bay area could
decline approximately 3% to 5% during 2001, and that occupancy levels will be
maintained at approximately 95%. Although market level rents are expected to
decline, in-place rents remain below market levels, affording the company the
opportunity to increase rents at its properties. As a result, the company
expects its San Francisco Bay area communities to produce rental growth during
2001, and to generate positive same-store results for the remainder of the
year.
    BRE defines same-store properties as stabilized apartment communities
owned by the company for at least five full quarters. Of the 20,267 apartment
units owned by BRE, same-store units totaled 18,227 for the quarter.

    Acquisition and Development Activity
    The company completed one directly owned development community during the
first quarter, Pinnacle BellCentre, located in Bellevue, Washington. This
community added 248 apartment units to the BRE portfolio, for a total
investment of $41 million. BRE anticipates that this property will achieve
stabilization during first quarter 2002.
    In the first quarter, the company also completed a joint venture
development community, Pinnacle at Queen Creek, a 252-unit complex located in
Chandler, Arizona. The apartment community was developed with a total cost of
approximately $19 million; under the terms of the joint venture agreement, BRE
retained an investment of approximately $4 million.
    BRE began construction of a directly owned development community, Pinnacle
at Otay Ranch I, located in the San Diego suburb of Chula Vista, California,
during first quarter 2001. Upon completion, this property will add
160 apartment units to the BRE portfolio, with a projected investment of
$21.6 million.

    Financial Information
    During the first quarter, the company issued $250 million of senior
unsecured notes, with a maturity of 10 years at a coupon of 7.45%. The
proceeds derived from the offering were used to repay amounts outstanding
under BRE's revolving credit facility. At March 31, 2001, outstanding
borrowings under the company's line of credit totaled $137 million.
    At March 31, 2001, BRE's combination of debt and equity resulted in a
total market capitalization of approximately $2.3 billion, with a
debt-to-total market capitalization ratio of 36%. BRE's outstanding debt of
$833 million carried a weighted average interest rate of 7.24%. For the
quarter, BRE's coverage ratio of EBITDA to interest expense was 3.8 times. The
weighted average maturity for the company's debt is 10 years, excluding
amounts drawn on the company's line of credit, and nine years when amounts
currently drawn are included.

    2001 Outlook
    At March 31, 2001, 13 research analysts had contributed quarterly or
annual earnings estimates on BRE to First Call(TM), a widely referenced source
of consensus earnings. Current analyst estimates of BRE's per share FFO for
second quarter 2001 range from $0.69 to $0.70 cents, for a consensus average
of $0.69 per share. For 2001, analysts have contributed earnings estimates to
First Call for BRE ranging from $2.78 to $2.83 per share, for a consensus
average of $2.80. Given the company's current expectations and judgment, BRE
is comfortable with the ranges given for both second quarter 2001 and year
2001.

    Analyst Conference Call
    The company will hold a conference call on April 20, 2001, at 8:30 a.m.
PDT (11:30 a.m. EDT) to review these results. The dial-in number to
participate is 888-290-1473. Reservations for telephone conference call
participants will be accepted before 1:00 p.m. PDT (4:00 p.m. EDT), April 19.
BRE takes reservations to ensure an adequate number of phone lines is
available for all investors. A replay of the call will be available at
800-642-1687 (Conference ID# 156713). A live webcast of the conference call
also will be available on the Analyst Resource page in the Shareholder section
of the company's website. An online playback of the webcast will be available
for 30 days following the call.

    About BRE Properties
    BRE Properties -- a real estate investment trust -- acquires, develops and
manages apartment communities convenient to our Customers' work, shopping,
entertainment and transit in the most economically vibrant markets of the
Western U.S. BRE directly owns and operates 72 apartment communities totaling
20,267 units in California, Arizona, Washington, Oregon, Utah and Colorado.
The company currently has 10 other apartment communities in various stages of
development and construction, totaling 2,339 units, and joint venture
interests in three additional apartment communities, totaling 780 units.
    BRE Properties:  We build valuable, innovative residential Lifestyle
Solutions.(TM) BRE offers its Residents a superior living environment in which
well-designed, distinctive apartment homes; in-demand amenities; convenient
locations; and Customer-centric service combine to create a truly valuable,
innovative Lifestyle Solution. Additional information about BRE can be found
on the web at http://www.breproperties.com.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  Except for the historical information contained herein, this news
release contains forward-looking statements regarding Company and property
performance, and is based on the Company's current expectations and judgment.
Actual results could vary materially depending on risks and uncertainties
inherent to general and local real estate conditions, competitive factors
specific to markets in which BRE operates, legislative or other regulatory
decisions, future interest rate levels or capital markets conditions. The
Company assumes no liability to update this information. For more details,
please refer to the Company's SEC filings, including its most recent
Annual Report on Form 10-K and quarterly reports on Form 10-Q.


BRE Properties, Inc.
Financial Summary
March 31, 2001

                   CONSOLIDATED BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)

                                                   March 31,   December 31,
                                                        2001           2000
    Assets

    Real estate portfolio
    Direct investments in real estate
      Investments in rental properties            $1,670,648     $1,646,486
      Construction in progress                        48,662         57,961
      Less: accumulated depreciation               (132,500)      (124,618)
                                                   1,586,810      1,579,829

    Equity interests in and
     advances to real estate joint ventures
      Investments in rental properties                30,753         27,477
      Construction in progress                        29,884         34,439
                                                      60,637         61,916

    Land under development                            27,193         30,144

    Total real estate portfolio                    1,674,640      1,671,889
    Cash                                               2,586            262
    Other assets                                      51,876         45,978

    Total assets                                  $1,729,102     $1,718,129

    Liabilities and shareholders' equity

    Liabilities
      Mortgage loans                                $483,000       $243,000
      Unsecured senior notes                         213,472        214,253
      Unsecured line of credit                       137,000        368,000
      Accounts payable and accrued expenses           27,924         22,048

    Total liabilities                                861,396        847,301

    Minority interest                                 59,369         69,712

    Shareholders' equity
    Preferred stock, $.01 par value;
     10,000,000 shares authorized: 8 1/2% Series A
     cumulative redeemable, liquidation preference
     $25 per share. Shares issued and
     outstanding:  2,150,000 at March 31, 2001
     and December 31, 2000.                           53,750         53,750

    Common stock; $.01 par value, 100,000,000
     shares authorized. Shares issued and
     outstanding:  46,391,017 at March 31, 2001;
     45,895,281 at December 31, 2000.                    464            459

    Additional paid-in capital                       754,123        746,907
    Total shareholders' equity                       808,337        801,116

    Total liabilities and shareholders' equity    $1,729,102     $1,718,129


BRE Properties, Inc.
Financial Summary
March 31, 2001

              CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                    (In thousands, except per share data)

                                                         Quarter ended
                                                    March 31,      March 31,
                                                        2001           2000
    REVENUE

    Rental income                                    $60,475        $57,642
    Partnership and ancillary income                   3,373          2,787
    Other income                                       1,512          1,174
    Total revenue                                     65,360         61,603

    EXPENSES

    Real estate expenses                              17,556         17,405
    Depreciation                                       9,262          8,980
    Interest expense                                  12,031         11,635
    General and administrative                         2,354          1,894
    Internet business segment (A)                      4,308             --
    Total expenses                                    45,511         39,914

    Income before gains (losses) on sales of
     real estate investments and minority
     interest in consolidated subsidiary              19,849         21,689

    Gains (losses) on sales of real estate
     investments                                          --             --

    Income before minority interest in
     consolidated subsidiary                          19,849         21,689

    Minority interest                                  1,048          1,352

    NET INCOME                                       $18,801        $20,337

    Dividends attributable to preferred stock          1,142          1,142

    Net Income Available to Common Shareholders      $17,659        $19,195

    Net income per share - basic                       $0.38          $0.43

    Net income per share - assuming dilution           $0.38          $0.42

    Funds from operations (B)                        $32,437        $29,461

    Per share funds from operations assuming
     dilution (B)                                      $0.67          $0.62

    Weighted average shares outstanding - basic       46,230         44,710

    Weighted average shares outstanding - assuming
     dilution                                         48,680         47,860

    (A)  Expenses related to VelocityHSI, Inc., are added back to operations
to determine FFO from real estate. Our investment in VelocityHSI is recorded
under the equity method of accounting. The recognition of our portion of
income or losses is recorded on a 90-day lag basis, with losses applied to the
extent of our investment in and receivables from VelocityHSI. The effect of
including this segment in FFO would be ($0.09) for the quarter.
    (B)  Calculated using the FFO definition from NAREIT's October 1999
White Paper.

SOURCE  BRE Properties, Inc.