Second Quarter Results             Year-to-Date Highlights
     - $66.2 million total revenue      - $132 million total revenue
     - $0.41 earnings per share         - $0.79 earnings per share
     - $0.68 FFO per share              - $1.35 FFO per share
     - $0.465 per share cash dividends  - 7% per share FFO growth
     - 68% FFO payout ratio             - 11% same-store NOI growth

    SAN FRANCISCO, July 12 /PRNewswire/ -- BRE Properties, Inc., (NYSE: BRE)
today reported operating results for the quarter and six months ended
June 30, 2001. For the second quarter 2001, revenues totaled $66.2 million, as
compared with $65.4 million a year ago. Earnings before interest, taxes,
depreciation and amortization (EBITDA) for the quarter increased 5% to
$46.3 million, up from $44.2 million in the same quarter 2000. Net income
available to common shareholders for the second quarter totaled $19.2 million,
or $0.41 per diluted share, as compared with $18 million, or $0.40 per diluted
share, for the same period 2000. Net income for the quarter included a loss
recognition associated with the company's Internet business of $2.8 million,
as compared with $1.8 million in second quarter 2000. The loss recognition
provides for a $2.4 million reserve, which the company believes represents the
full extent of all future expenditures and losses related to its investment in
VelocityHSI, Inc. (OTC Bulletin Board: VHSI).
    For the six months ended June 30, 2001, revenues totaled $131.6 million,
as compared with revenues of $127.0 million for the same period 2000.
Year-to-date, EBITDA totaled $91.7 million, up from $86.5 million a year ago,
an increase of 6.1%. Net income available to common shareholders for the
six-month period totaled $36.8 million, or $0.79 per diluted share, as
compared with $37.2 million, or $0.83 per diluted share, for the same period
2000. Net income year-to-date included a loss recognition associated with
BRE's Internet business of $7.2 million, as compared with $1.8 million for the
same period a year ago.
    For the second quarter, funds from operations (FFO), the generally
accepted measure of operating performance for real estate investment trusts,
achieved a record level of $33.1 million, or $0.68 per diluted share, a 6.25%
per share increase from $30.8 million, or $0.64 per diluted share, for the
same period 2000. For the six-month period, FFO totaled $65.6 million, or
$1.35 per diluted share, a per share increase of 7.14% over $60.2 million, or
$1.26 per diluted share, in the same period 2000.

    Same-Store Property Results
    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 and
year-to-date periods. For the second quarter, same-store net operating income
(NOI) increased 9%, and same-store revenues increased 7%. Year-to-date,
same-store NOI increased 11%, and same-store revenues grew 9%.

                         Same-Store % Growth Results
                         Q2 2001 Compared to Q2 2000

                              Rental      Operating                % of Total
                              Revenue     Expenses        NOI           NOI

    L.A./Orange County         11%            7%          13%           13%

    San Francisco               9%           -3%          13%           29%

    Denver                      9%           12%           8%            2%

    San Diego                   9%            4%          10%           15%

    Portland                    7%           10%           6%            2%

    Sacramento                  7%           -3%          12%            9%

    Seattle                     7%           -2%          11%           12%

    Salt Lake City              3%           12%          -1%            6%

    Phoenix                     0%            1%           0%           11%

    Tucson                     -3%           -2%          -4%            1%

        Average/Total           7%            2%           9%          100%


                         Same-Store % Growth Results
      Six Months Ended 6/30/2001 Compared to Six Months Ended 6/30/2000

                              Rental      Operating                % of Total
                              Revenue     Expenses        NOI           NOI

    L.A./Orange County         12%           10%          12%           13%

    San Francisco              13%            2%          16%           29%

    Denver                      8%            4%           9%            2%

    San Diego                   9%            6%          11%           15%

    Portland                    9%            9%           9%            2%

    Sacramento                  8%           -2%          13%            9%

    Seattle                     7%            1%          10%           11%

    Salt Lake City              4%            6%           3%            6%

    Phoenix                     2%            2%           2%           12%

    Tucson                     -2%            3%          -8%            1%

        Average/Total           9%            4%           11%         100%

    Same-store operating results were supported by higher average monthly
rents and stable operating expenses. On a year-over-year basis, average
monthly rents increased to $1,040 from $952 in the same-store portfolio. For
the second quarter 2001, operating margins were 74%, as compared with 71% in
the same period 2000.
    With respect to the San Francisco Bay area market, the increase in average
monthly rents was offset by a reduction in average occupancy during second
quarter 2001. Occupancy for the S.F. Bay area averaged 93% during the second
quarter, but recovered to 96% by June 30, 2001. In the company's remaining
markets, economic and physical occupancy levels were consistent with
management's expectations and historical operating levels. Physical occupancy
levels for the same-store portfolio at June 30, 2001 averaged 96%, as compared
with 97% at the end of the second quarter 2000. For the second quarter 2001,
turnover averaged 70%, as compared with 68% for the same period 2000.

                   Same-Store Occupancy and Turnover Rates
                         Q2 2001 Compared to Q2 2000

                              Occupancy Levels            Turnover Ratio
                             Q2 2001      Q2 2000      Q2 2001       Q2 2000

    San Francisco              96%           99%          80%           53%

    San Diego                  96%           98%          64%           67%

    L.A./Orange County         97%           97%          53%           62%

    Sacramento                 97%           98%          73%           74%

    Seattle                    97%           97%          50%           57%

    Portland                   97%           96%          69%           73%

    Salt Lake City             95%           94%         110%           83%

    Denver                     97%          100%          89%           81%

    Phoenix                    95%           95%          75%           74%

    Tucson                     94%           96%          57%           80%

    Total/Average              96%           97%          70%           68%

    The company's overall increase in revenue, EBITDA and FFO was attributable
primarily to the same-store increases associated with the stabilized
portfolio, and the operating results associated with newly developed and
acquired properties. The improved operating results were offset by reduced
average occupancy levels and a decline in market-level rents in the
San Francisco Bay area. Market-level rents in the company's S.F. Bay area
communities have declined approximately 9.0% during the first six months of
2001.
    In addition, operating results were influenced by the company's continued
efforts to reinvest proceeds received from a strategic portfolio sale that
occurred in 2000. In third quarter 2000, BRE sold a portfolio of apartment
communities in Southwestern/Desert markets totaling $260 million. During
fourth quarter 2000, the company reinvested approximately $140 million of the
proceeds derived from the sale in coastal California markets. The company did
not close any additional acquisitions during the first six months of 2001. The
company estimates that until the sale proceeds are fully reinvested, quarterly
FFO results will be impacted $0.02 to $0.03 per share.

    Acquisition and Development Activity
    BRE commenced construction of one joint venture development community in
the second quarter 2001:  Pinnacle at the Creek, located in the Denver suburb
of Aurora, Colorado. Upon completion, this community will add 216 apartment
units to the BRE portfolio, with an estimated total cost of approximately
$21.1 million.

    Financial Information
    At June 30, 2001, BRE's combination of debt and equity resulted in a total
market capitalization of approximately $2.4 billion, with a debt-to-total
market capitalization ratio of 36%. BRE's outstanding debt of $850 million
carried a weighted average interest rate of 7.13%. For the quarter, BRE's
coverage ratio of EBITDA to interest expense was 3.8 times. The weighted
average maturity for BRE's debt is 10 years, excluding amounts drawn on the
company's line of credit, and nine years when amounts currently drawn are
included.
    For Q2 2001, cash dividend payments to common shareholders totaled
$21.7 million, or $0.465 per share, a 9.4% per share increase, from
$19.2 million, or $0.425 per share, for the same period 2000. Correspondingly,
the FFO payout ratio for Q2 2001 was 68%, as compared with 66% for Q2 2000.
Cash dividend payments for the six months ended June 30, 2001, reached
$43.2 million, or $0.93 per share, as compared to $38.2 million, or $0.85 per
share in same period last year. The year-to-date 2001 FFO payout ratio was
69%, as compared to 67% for the first six months in 2000.

    2001 Outlook
    At June 30, 2001, 12 research analysts had contributed quarterly 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 ranged from $0.68 to $0.70, for a consensus average of $0.69 per share.
For 2001, analysts have contributed earnings estimates to First Call for BRE
ranging from $2.74 to $2.81 per share, for a consensus average of $2.78.
    The company believes that FFO per share results for the balance of 2001
will be affected by a slowing national economy, the decline in market-level
rents in the San Francisco Bay area and a depressed volume of acquisitions.
Given current expectations and judgment, the company believes that FFO
estimates for 2001 should be adjusted to a range of $2.76 to $2.78 per share.

    Q2 2001 Analyst Conference Call
    The company will hold a conference call on Friday, July 13, 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 are required for telephone
conference call participants. BRE takes reservations to ensure an adequate
number of phone lines are available for all investors. A replay of the call
will be available at 800-642-1687 (Conference ID# 1280377). A live webcast of
the conference call 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 -- develops, acquires and
manages apartment communities convenient to its 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.
    "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
    June 30, 2001

                          BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)


                                              June 30, 2001  December 31, 2000
    Assets

    Real estate portfolio
    Direct investments in real estate:
     Investments in rental properties             $1,682,019     $1,646,486
     Construction in progress                         59,586         57,961
     Less: accumulated depreciation                 (141,387)      (124,618)
                                                   1,600,218      1,579,829

    Equity interests in and advances to real
     estate joint ventures:
     Investments in rental properties                 30,288         27,477
     Construction in progress                         39,067         34,439
                                                      69,355         61,916

    Land under development                            23,856         30,144

    Total real estate portfolio                    1,693,429      1,671,889
    Cash                                               2,000            262
    Other assets                                      51,043         45,978

    Total assets                                  $1,746,472     $1,718,129

    Liabilities and shareholders' equity

    Liabilities
     Unsecured senior notes                         $483,000       $243,000
     Mortgage loans                                  212,711        214,253
     Unsecured line of credit                        154,000        368,000
     Accounts payable and accrued expenses            29,560         22,048

    Total liabilities                                879,271        847,301

    Minority interest                                 59,267         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 June 30, 2001 and
    December 31, 2000                                 53,750         53,750

    Common stock; $.01 par value,
    100,000,000 shares authorized.
    Shares issued and outstanding:
    46,504,843 at June 30, 2001;
    45,895,281 at December 31,
    2000                                                 465            459

    Additional paid-in capital                       753,719        746,907
    Total shareholders' equity                       807,934        801,116
    Total liabilities and shareholders'
     equity                                       $1,746,472     $1,718,129

     BRE Properties, Inc.
     Financial Summary
     June 30, 2001

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


                              Quarter ended            Six months ended
                           June 30,      June 30,    June 30,      June 30,
                            2001           2000        2001          2000

    REVENUE

    Rental income          $60,482       $60,088     $120,957      $117,730
    Partnership
     and ancillary income    4,257         3,677        7,631         6,464
    Other income             1,483         1,672        2,995         2,846
    Total revenue           66,222        65,437      131,583       127,040

    EXPENSES

    Real estate expenses    17,386        19,213       34,941        36,618
    Depreciation             9,896         9,680       19,158        18,660
    Interest expense        12,176        12,094       24,207        23,729
    General and
     administrative          2,560         2,063        4,915         3,957
    Internet business
     segment (A)             2,855         1,818        7,163         1,818

    Total expenses          44,873        44,868       90,384        84,782

    Income before gains
     (losses) on sales
     of real estate
     investments and
     minority interest
     in consolidated
     subsidiary             21,349        20,569       41,199        42,258

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

    Income before
     minority interest
     in consolidated
     subsidiary             21,349        20,569       41,199        42,258

    Minority interest        1,047         1,430        2,095         2,782

    NET INCOME             $20,302       $19,139      $39,104       $39,476

    Dividends attributable
     to preferred stock      1,142         1,142        2,284         2,284

    Net Income Available
     to Common
     Shareholders          $19,160       $17,997      $36,820       $37,192

    Net income per
     share - Basic           $0.41         $0.40        $0.79         $0.83

    Net income per
     share - Assuming
     dilution                $0.41         $0.40        $0.79         $0.83

    Funds from
     operations (B)        $33,151       $30,780      $65,588       $60,241

    Per share funds
     from operations-
     Assuming dilution (B)   $0.68         $0.64        $1.35         $1.26

    Weighted average
     shares outstanding -
     Basic                  46,430        44,780       46,320        44,750

    Weighted average
     shares outstanding -
     Assuming dilution      48,680        48,210       48,680        48,000


    (A) Expenses related to VelocityHSI 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 business in FFO would be ($0.06) and ($0.15) for the quarter
and six months ended June 30, 2001, respectively.
    (B) Calculated using the FFO definition from NAREIT's October 1999 White
Paper.