Fourth Quarter Results 2001           Year-End Highlights
     -  $65.3 million total revenue        -  $263.7 million total revenue
     -  $0.44 earnings per share           -  $1.69 earnings per share
     -  $0.67 FFO per share                -  $2.71 FFO per share
     -  $0.465 per share cash dividends    -  6% per share FFO growth
     -  69% FFO payout ratio               -  7% same-store NOI growth

SAN FRANCISCO, Jan. 17 /PRNewswire-FirstCall/ -- BRE Properties, Inc., (NYSE: BRE) today reported operating results for the quarter and year ended December 31, 2001. For fourth quarter 2001, revenues totaled $65.3 million, as compared with $61.8 million a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter increased 6% to $45.3 million, up from $42.8 million in the same quarter 2000. Net income available to common shareholders for the fourth quarter totaled $20.2 million, or $0.44 per diluted share, as compared with $12.9 million, or $0.28 per diluted share, for the same period 2000.

For the year ended December 31, 2001, revenues totaled $263.7 million, as compared with revenues of $253.5 million for 2000. For 2001, EBITDA totaled $183.8 million, up from $173.3 million a year ago, an increase of 6%. Net income available to common shareholders for the year totaled $78.8 million, or $1.69 per diluted share, as compared with $36.7 million, or $0.81 per diluted share, for 2000.

For fourth quarter 2001, funds from operations (FFO), the generally accepted measure of operating performance for real estate investment trusts, totaled $32.1 million, or $0.67 per diluted share, a 3% per share increase from $31.6 million, or $0.65 per diluted share, for the same period 2000. For the year, FFO totaled $131.5 million, or $2.71 per diluted share, a per share increase of 6% over $123.4 million, or $2.56 per diluted share, in the same period 2000.

BRE's overall growth in revenue, EBITDA and FFO for the quarter and the year was influenced by year-over-year same-store operating results, and income derived from apartment communities developed and acquired during 2001. Same-store net operating income (NOI) growth was 7% for the year, and flat for the quarter. The company's operating results reflect deteriorating national and regional economic conditions that accelerated during 2001 and the corresponding impact on market level rents and occupancy.

Same-Store Property Results

BRE defines quarter-end same-store properties as stabilized apartment communities owned for at least five full quarters, and year-end same-store properties for at least eight full quarters. Of the 20,419 apartment units owned by BRE, same-store units totaled 17,974 and 17,782 for the quarter and year, respectively.

Same-Store % Growth Results
                         Q4 2001 Compared to Q4 2000
                               Rental      Operating                % of Total
                              Revenue       Expenses       NOI           NOI
     San Francisco              -4%            9%          -8%           28%
     San Diego                   6%           -2%          10%           16%
     L.A./Orange County          3%            1%           3%           14%
     Seattle                     0%           -3%           1%           11%
     Phoenix                    -4%           -2%          -5%           11%
     Sacramento                  5%           -2%           8%            9%
     Salt Lake City              1%           -4%           3%            6%
     Denver                      3%            1%           3%            3%
     Portland                    1%            5%          -2%            2%
       Average/Total             0%            1%           0%          100%
                         Same-Store % Growth Results
                            2001 Compared to 2000
                              Rental        Operating               % of Total
                              Revenue       Expenses       NOI           NOI
     San Francisco               6%            5%           6%           29%
     San Diego                   8%            2%          11%           15%
     L.A./Orange County          9%            7%          10%           13%
     Seattle                     4%           -1%           7%           11%
     Phoenix                     0%            1%           0%           12%
     Sacramento                  7%            0%          11%            9%
     Salt Lake City              3%            0%           5%            6%
     Denver                      6%            2%           7%            3%
     Portland                    7%            6%           7%            2%
      Average/Total              6%            2%           7%          100%

The company's same-store operating results are consistent with economic trends that affected the nation and the company's markets throughout 2001. Fourth quarter 2000 operating metrics, including market rents, occupancy and turnover, reflected national and regional economic cycles at peak levels, just prior to entering a recessionary phase. Recessionary pressures that accelerated during 2001 compressed market rent growth, reduced average occupancy levels and increased the level of resident turnover in the company's same-store properties.

On a year-over-year basis, average gross potential rents in the same-store portfolio increased 3%, to $1,055 per unit, from $1,025. Operating expenses, in general, remained stable. For the quarter and the year, operating margins were 72% and 73%, respectively, as compared with 72% and 71% for the same periods in 2000.

Economic conditions had the greatest impact in BRE's San Francisco Bay area market. During 2001, market-level rents in the company's S.F. Bay area communities declined 18%. On a year-over-year basis, fourth quarter average gross potential rent levels decreased to $1,621 per unit, from $1,634 in the same-store portfolio. Gross potential rent represents, by property, scheduled rents for occupied units, plus market-level rents for vacant units.

BRE's S.F. Bay area results were further affected by a reduction in average occupancy levels and higher turnover rates. During fourth quarter 2001, occupancy averaged 92%, as compared with 97% during the same period 2000. For the year, resident turnover in this market was 81%, as compared with 58% in 2000.

For fourth quarter 2001, occupancy levels for the company's overall same- store portfolio averaged 94%, as compared with 97% for fourth quarter 2000. For the year, resident turnover averaged 67%, as compared with 65% in 2000.

Same-Store Occupancy and Turnover Rates
               December 31, 2001 Compared to December 31, 2000
                             Occupancy Levels             Turnover Ratio
                             Q4 2001       Q4 2000        2001         2000
     San Francisco              92%           97%          81%           58%
     San Diego                  96%           98%          61%           61%
     L.A./Orange County         96%           97%          49%           54%
     Sacramento                 96%           97%          72%           80%
     Seattle                    93%           97%          54%           56%
     Portland                   94%           97%          63%           62%
     Salt Lake City             94%           96%          82%           85%
     Denver                     95%           98%          77%           85%
     Phoenix                    92%           95%          73%           70%
       Total/Average            94%           97%          67%           65%

Acquisition and Development Activity

BRE acquired one apartment community in fourth quarter 2001: Ventanja at Rancho Niguel, located in Laguna Niguel, California. The 460-unit property was acquired for approximately $64 million. During 2001, BRE acquired two apartment communities with 597 units and an aggregate acquisition price of $84 million.

For the year 2001, BRE delivered four communities with 962 units and transferred those communities from construction-in-progress to investments in real estate. During fourth quarter 2001, BRE delivered two apartment communities: Pinnacle Galleria, with 236 units, located in the Sacramento suburb of Roseville, California; and Pinnacle at Stone Creek, with 226 units, located in Paradise Valley, Arizona.

At December 31, 2001, the company had four communities in the lease-up phase. With respect to the lease-up communities, units delivered and in service totaled 527 units, which will increase to 885 units upon the completion of construction. Average occupancy for the lease-up communities was 81% of delivered units and 53% of total units at the end of fourth quarter 2001.

BRE currently has seven communities with 1,685 units in development, at a total estimated cost of $250 million. Expected delivery dates for these communities range from first quarter 2002 to first quarter 2003. The company's development properties are concentrated in the Southern California and Denver, Colorado regions.

During fourth quarter 2001, the company acquired an 11-acre parcel of land in Valencia, California, with a purchase price of $13 million. BRE plans to develop a 234-unit apartment community on the site. At December 31, 2001, the company had two development sites classified as land under development, representing 426 units of future development.

Disposition Activity

For the year 2001, the company sold three communities with 621 units, for an aggregate sales price of $19 million.

Financial Information

At December 31, 2001, BRE's combination of debt and equity resulted in a total market capitalization of approximately $2.5 billion, with a debt-to-total market capitalization ratio of 40%. BRE's outstanding debt of $1.008 billion carried a weighted average interest rate of 6.62%. For the quarter, BRE's coverage ratio of EBITDA to interest expense was 3.7 times. The weighted average maturity for BRE's debt is eight years, excluding amounts drawn on the company's line of credit, and six years when amounts currently drawn are included.

During third quarter 2001, BRE's board of directors authorized the purchase of the company's common stock in an amount up to $60 million. The timing of repurchase activity is dependent on the market price of the company's shares, and other market conditions and factors. To date, the company has repurchased a total of $31 million of common stock, representing 1,074,900 total shares, at an average price of $28.85 per share.

For fourth quarter 2001, cash dividend payments to common shareholders totaled $21.3 million, or $0.465 per share, a 9.4% per share increase, from $19.1 million, or $0.425 per share, for the same period 2000. Correspondingly, the FFO payout ratio for fourth quarter 2001 was 69%, as compared with 65% for fourth quarter 2000. Cash dividend payments to common shareholders for the year reached $86.3 million, or $1.86 per share, as compared to $76.6 million, or $1.70 per share in 2000. The year 2001 FFO payout ratio was 69%, as compared to 66% in 2000.

Earnings Outlook

At December 31, 2001, 11 research analysts had contributed quarterly FFO estimates on BRE to First Call(TM), a widely referenced source of consensus earnings. Current analyst estimates of BRE's per share FFO for fourth quarter 2001 ranged from $0.66 to $0.70, for a consensus average of $0.69 per share. For the year 2001, 12 analysts had contributed FFO estimates to First Call for BRE ranging from $2.70 to $2.75 per share, for a consensus average of $2.73.

For 2002, 12 analysts have contributed FFO estimates on BRE to First Call ranging from $2.74 to $2.90, for a consensus average of $2.84. The company believes that FFO per share results for 2002 could be affected by national and regional economic factors, market-level rents and occupancy, the completion and lease-up of development properties, and the availability of acquisition opportunities. Given current expectations and judgment, the company believes that FFO estimates for 2002 should be set at a range of $2.81 to $2.86 per share. In addition, BRE believes that earnings per share (EPS) estimates for 2002 should be set at a range of $1.81 to $1.88 per share. EPS estimates may be subject to fluctuation as a result of several factors, including changes in the recognition of depreciation expense and any gains or losses associated with disposition activity.

Q4 2001 Analyst Conference Call

The company will hold a conference call on Friday, January 18, 2002 at 8:30 a.m. PST (11:30 a.m. EST) to review these results. The dial-in number to participate is 888-396-9923. 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 888-568-0116 (no passcode required). A live webcast of the conference call will be available on the Presentations 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 supply-constrained Western U.S. markets. BRE directly owns and operates 72 apartment communities totaling 20,419 units in California, Arizona, Washington, Oregon, Utah and Colorado. The company currently has nine other apartment communities in various stages of development and construction, totaling 2,111 units, and joint venture interests in five additional apartment communities, totaling 1,242 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.

Financial Summary
    December 31, 2001
                          BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)
                                               Dec. 31, 2001  Dec. 31, 2000
    Assets
    Real estate portfolio
    Direct investments in real estate:
     Investments in rental properties             $1,790,283     $1,646,486
      Construction in progress
                                                      83,002         57,961
      Less: accumulated depreciation               (158,873)      (124,618)
                                                   1,714,412      1,579,829
    Equity interests in and advances to
     real estate joint ventures:
      Investments in rental properties                42,083         27,477
      Construction in progress
                                                      39,023         34,439
                                                      81,106         61,916
    Land under development                            23,277         30,144
    Total real estate portfolio                    1,818,795      1,671,889
    Cash                                               3,892            262
    Other assets                                      53,294         45,978
    Total assets                                  $1,875,981     $1,718,129
    Liabilities and shareholders' equity
    Liabilities
     Unsecured senior notes
                                                    $483,000       $243,000
     Unsecured line of credit                        315,000        368,000
     Mortgage loans                                  210,431        214,253
     Accounts payable and accrued expenses            30,503         22,048
    Total liabilities                              1,038,934        847,301
    Minority interest                                 52,151         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.                      53,750         53,750
    Common stock; $.01 par value,
       100,000,000 shares authorized.
       Shares issued and outstanding:
       45,807,191 at December 31, 2001;
       45,895,281 at December 31, 2000.                  458            459
    Additional paid-in capital                       730,688        746,907
    Total shareholders' equity                       784,896        801,116
    Total liabilities and shareholders'
     equity                                       $1,875,981     $1,718,129
    BRE Properties, Inc.
     Financial Summary
     December 31, 2001
                     STATEMENTS OF OPERATIONS (Unaudited)
                    (In thousands, except per share data)
                              Quarter ended            Twelve months ended
                           Dec. 31,     Dec. 31,     Dec. 31,     Dec. 31,
                            2001          2000         2001          2000
   REVENUE
    Rental income          $60,655       $57,695     $243,538      $235,723
    Partnership and
     ancillary income        4,371        3,214        16,269        12,925
    Other income               279           916        3,869         4,829
    Total revenue           65,305        61,825      263,676       253,477
    EXPENSES
    Real estate expenses    18,130        17,169       70,938        72,324
    Depreciation            10,743         8,884       40,328        37,425
    Interest expense        12,310        10,146       48,517        45,028
    General and
     administrative          1,831         1,808        8,958         7,807
    Internet business (A)       --         5,690        7,163         8,765
    Total expenses          43,014        43,697      175,904       171,349
    Income before gains
     (losses) on sales of
     real estate investments
     and minority interest
      in consolidated
      subsidiary            22,291        18,128       87,772        82,128
    Gains (losses) on sales
     of real estate
     investments                --        (2,982)        (327)      (35,693)
    Income before minority
     interest in
     consolidated
     subsidiary             22,291        15,146       87,445        46,435
    Minority interest          925         1,129        4,068         5,132
    NET INCOME             $21,366       $14,017      $83,377       $41,303
    Dividends
     attributable to
     preferred stock         1,142      1,142         4,569           4,569
    Net Income Available
     to Common
     Shareholders          $20,224    $12,875       $78,808         $36,734
    Net income per
     share - Basic           $0.44      $0.28         $1.70           $0.81
    Net income per share
     - Assuming
       dilution (B)          $0.44      $0.28         $1.69           $0.81
    Funds from
     operations (C)        $32,130    $31,610      $131,529        $123,428
    Per share funds from
     operations-Assuming
     dilution (C)            $0.67      $0.65         $2.71           $2.56
    Weighted average
     shares outstanding -
     Basic                  45,925     45,795        46,235          45,181
    Weighted average
     shares outstanding -
     Assuming dilution      47,980     48,760        48,510          48,270
    (A) Expenses related to VelocityHSI were added back to operating results
        to determine FFO from real estate. Our investment in VelocityHSI was
        recorded under the equity method of accounting. The recognition of our
        portion of income or losses was 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
        ($0.0) and ($0.15) for the quarter and year ended December 31, 2001,
        respectively, and ($0.12) and ($0.18) for the quarter and year ended
        December 31, 2000, respectively.
    (B) Under FAS 128, if the effect of potentially dilutive shares is
        anti-dilutive to net income per share, the basic calculation is used.
        This occurred in connection with the loss on the DRA transaction in
        2000.
    (C) Calculated using the FFO definition from NAREIT's October 1999 White
        Paper.
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SOURCE BRE Properties, Inc.

investors, Edward F. Lange, Jr., Chief Financial Officer,
+1-415-445-6559, or media, Thomas E. Mierzwinski, Director of Communications,
+1-415-445-6525, both of BRE Properties, Inc.

http://www.breproperties.com