First Quarter Results First Quarter Highlights - $0.44 EPS - Common dividend increased 5% - $0.67 per share FFO - $150 million note sale - $0.4875 per share common dividend - Two development properties delivered

SAN FRANCISCO, Apr 15, 2002 /PRNewswire-FirstCall via COMTEX/ -- BRE Properties, Inc., (NYSE: BRE) today reported operating results for the quarter ended March 31, 2002. Net income available to common shareholders for the first quarter totaled $20.2 million, or $0.44 per share, as compared with $17.7 million, or $0.38 per share, for the same period 2001, which included expenses and losses associated with the company's Internet investment of $4.3 million, or $0.09 per share. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter totaled $46.2 million, up from $45.5 million in the same quarter 2001. For the first quarter 2002, revenues totaled $66.6 million, as compared with $65.4 million a year ago.

For the first quarter, funds from operations (FFO), the generally accepted measure of operating performance for real estate investment trusts, totaled $32.2 million, or $0.67 per share, compared with $32.4 million, or $0.67 per share, for the same period 2001.

BRE's overall operating results were influenced by year-over-year same-store performance, and income derived from apartment communities developed and acquired during the last 12 months. For first quarter 2002, same-store net operating income (NOI) decreased 2% as compared with first quarter 2001 results. On a sequential basis, same-store NOI increased 1% from fourth quarter 2001. The company's operating results continue to reflect regional and national recessionary conditions, which have reduced market-level rents and occupancy.

BRE defines same-store properties as stabilized apartment communities owned by the company for at least five full quarters. Of the 20,803 apartment units owned by BRE, same-store units totaled 19,226 for the quarter.

Same-Store % Growth Results
                         Q1 2002 Compared to Q1 2001
                          # of                % Change    % Change   % Change
                         Units      % NOI      Revenue    Expenses      NOI
    San Francisco        3,488        29%        -8%          5%       -11%
    L.A./Orange County   2,976        15%         6%         -1%        10%
    San Diego            2,575        14%         6%          5%         6%
    Seattle              2,316        10%        -2%          1%        -3%
    Phoenix              2,694        10%        -6%          4%        -9%
    Sacramento           1,896         9%         6%          2%         7%
    Salt Lake City       1,517         6%         5%          1%         7%
    Denver                 984         5%        -1%         -1%         0%
    Portland               780         2%         1%          3%         0%
        Total/Average   19,226       100%        -1%          2%        -2%

Lower average monthly rents and a reduced level of physical occupancy influenced same-store property results. On a year-over-year basis, average gross potential rents in the same-store portfolio decreased 1% to $1,045 from $1,054. Physical occupancy levels averaged 94% during the quarter, as compared with 96% during first quarter 2001.

During the first quarter, BRE's San Francisco Bay area communities began to recover after a difficult operating period during 2001. The company's S.F. Bay area markets experienced improved occupancy and resident turnover levels in the quarter as compared to fourth quarter 2001. During the first quarter, physical occupancy averaged 93%, increasing from 92% at the start of the quarter to 95% at the end of the period. Annualized resident turnover in this market was 71% for the quarter, down from the 4Q '01 annualized level of 92%. However, market-level rents have not fully stabilized, declining approximately 3% during the first quarter. While the occupancy and turnover metrics are leading indicators of stabilization, BRE does not believe the S.F. Bay area will stabilize until market rents have fully bottomed.

Same-Store Occupancy and Turnover Rates
                           Q1 2002 Compared to Q1 2001
                               Occupancy Levels             Turnover Ratio
                             Q1/02         Q1/01        Q1/02         Q1/01
    San Francisco              93%           96%          71%           54%
    San Diego                  95%           96%          56%           58%
    L.A./Orange County         95%           97%          44%           45%
    Sacramento                 95%           94%          67%           65%
    Seattle                    93%           96%          48%           48%
    Portland                   93%           96%          57%           44%
    Salt Lake City             94%           94%          74%           72%
    Denver                     92%           96%          74%           72%
    Phoenix                    91%           95%          57%           65%
            Total/Average      94%           96%          60%           57%

During the quarter, BRE delivered two communities with 384 units and transferred those communities from construction-in-progress to investments in real estate: Pinnacle at Otay Ranch II, with 204 units, located in the Otay Ranch master-planned community, in the San Diego suburb of Chula Vista, California; and Pinnacle at Lake Washington, with 180 units, located in the Seattle suburb of Renton, Washington.

At March 31, 2002, the company had two communities in the lease-up phase. Apartment units delivered and in service totaled 317 units, which will increase to 433 units upon the completion of construction. Average occupancy for the lease-up communities was 71% of delivered units, and 52% of total units at the end of first quarter 2002.

BRE currently has six communities with 1,493 units in development, at a total estimated cost of $237 million. Expected delivery dates for these communities range from second quarter 2002 to first quarter 2004. The company's development properties are concentrated in the Southern California and Denver, Colorado regions.

During the first quarter, the company issued $150 million of senior unsecured notes, with a maturity of five years, a coupon of 5.95% and an all-in cost of 6.095%. The proceeds derived from the offering were used to repay amounts outstanding under BRE's revolving credit facility. At March 31, 2002, outstanding borrowings under the company's line of credit totaled $213 million.

At March 31, 2002, BRE's combination of debt and equity resulted in a total market capitalization of approximately $2.6 billion, with a debt-to-total market capitalization ratio of 39%. BRE's outstanding debt of $1 billion carried a weighted average interest rate of 6.07%. For the quarter, BRE's coverage ratio of EBITDA to interest expense was 3.5 times. The weighted average maturity for the company's debt is eight years, excluding amounts drawn on the company's line of credit, and seven years when amounts currently drawn are included.

For first quarter 2002, cash dividend payments to common shareholders totaled $22.4 million, or $0.4875 per share, a 5% per share increase, from $21.6 million, or $0.465 per share, for the same period 2001. Correspondingly, the FFO payout ratio for first quarter 2002 was 73%, as compared with 69% for first quarter 2001.

In 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 $32.8 million of common stock, representing 1,138,200 total shares, at an average price of $28.85 per share.

BRE today announced that LeRoy Carlson, the company's chief operating officer, has elected to retire after 26 years of service with the company and predecessor entities. BRE has retained Heidrick & Struggles International, an executive search firm, to assist in the search for a COO to replace Mr. Carlson. The actual date of Mr. Carlson's retirement has not been determined and will be dependent on the time required to complete the search.

"It has been a wonderful experience to participate in the success of BRE, and the growth and evolution of the REIT industry," said Mr. Carlson. "I have accomplished most of the goals I set many years ago. The strength and depth of the BRE management team affords me the opportunity to retire and spend considerably more time with my family. I would like to thank all BRE Associates for their hard work and support in 'gettin' it done.'"

"Lee has been a great leader and a good friend for all of us at BRE," said Frank McDowell, BRE's president and CEO. "For many years, Lee was recognized as one of the industry's leading CFOs. As COO, his direction and leadership have been instrumental to the success of our asset management and development programs. On behalf of the board and all BRE Associates, I would like to thank Lee for his many contributions."

At March 31, 2002, 13 research analysts had contributed quarterly FFO estimates on BRE to First Call(TM), a widely referenced source of consensus earnings. Analyst estimates of BRE's per share FFO for first quarter 2002 ranged from $0.68 to $0.70, for a consensus average of $0.69 per share.

For the year 2002, 13 analysts have contributed FFO estimates on BRE to First Call ranging from $2.74 to $2.85, for a consensus average of $2.80. 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 $2.74 to $2.80 per share. In addition, BRE believes that earnings per share (EPS) estimates for 2002 should be set at a range of $1.75 to $1.82 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.

The company will hold a conference call on April 16, 2002, at 7:30 a.m. PDT (10:30 a.m. EDT) to review these results. The dial-in number to participate is 888-290-1473. 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# 3663580). A live webcast of the conference call also will be available on the Presentations page in the Shareholder/Investor Relations section of the company's website. An online playback of the webcast will be available for 30 days following the call.

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 74 apartment communities totaling 20,803 units in California, Arizona, Washington, Oregon, Utah and Colorado. The company currently has eight other apartment communities in various stages of development and construction, totaling 1,837 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.

BRE Properties, Inc.
Financial Summary
March 31, 2002
                   CONSOLIDATED BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)
                                            March 31, 2002  December 31, 2001
    Assets
    Real estate portfolio
    Direct investments in real estate
      Investments in rental properties          $1,823,483        $1,790,283
      Construction in progress                      81,104            83,002
      Less: accumulated depreciation             (169,057)         (158,873)
                                                 1,735,530         1,714,412
    Equity interests in and advances
     to real estate joint ventures
      Investments in rental properties              43,256            42,083
      Construction in progress                      45,875            39,023
                                                    89,131            81,106
    Land under development                          18,728            23,277
    Total real estate portfolio                  1,843,389         1,818,795
    Cash                                             4,144             3,892
    Other assets                                    53,622            53,294
    Total assets                                $1,901,155        $1,875,981
    Liabilities and shareholders' equity
    Liabilities
      Mortgage loans                              $200,314          $210,431
      Unsecured senior notes                       622,885           483,000
      Unsecured line of credit                     213,000           315,000
      Accounts payable and accrued expenses         30,170            30,503
    Total liabilities                            1,066,369         1,038,934
    Minority interest                               52,125            52,151
    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, 2002 and
     December 31, 2001.                             53,750            53,750
    Common stock; $.01 par value;
     100,000,000 shares authorized.
     Shares issued and outstanding:
     45,894,073 at March 31, 2002;
     45,807,191 at December 31, 2001.                  459               458
    Additional paid-in capital                     728,452           730,688
    Total shareholders' equity                     782,661           784,896
    Total liabilities and
     shareholders' equity                       $1,901,155        $1,875,981

BRE Properties, Inc.
Financial Summary
March 31, 2002
                CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                      (In thousands, except per share data)
                                                       Quarter ended
                                              March 31, 2002 March 31, 2001
    REVENUE
    Rental income                                    $62,548        $60,475
    Partnership and ancillary income                   3,868          3,373
    Other income                                         215          1,512
    Total revenue                                     66,631         65,360
    EXPENSES
    Real estate expenses                             $18,274        $17,556
    Depreciation                                      10,758          9,262
    Interest expense                                  13,087         12,031
    General and administrative                         2,203          2,354
    Internet business (A)                                 --          4,308
    Total expenses                                    44,322         45,511
    Income before gains (losses) on sales
     of real estate investments and
     minority interest in consolidated subsidiary     22,309         19,849
    Gains (losses) on sales of real estate
     investments                                          --             --
    Income before minority interest
     in consolidated subsidiary                       22,309         19,849
    Minority interest                                    969          1,048
    NET INCOME                                       $21,340        $18,801
    Dividends attributable to preferred stock          1,142          1,142
    Net Income Available to Common Shareholders      $20,198        $17,659
    Net income per share - basic                       $0.44          $0.38
    Net income per share - assuming dilution           $0.44          $0.38
    Funds from operations (B)                        $32,150        $32,437
    Per share funds from operations
     assuming dilution (B)                             $0.67          $0.67
    Weighted average shares outstanding - basic       45,835         46,230
    Weighted average shares outstanding
     - assuming dilution                              47,850         48,680
    (A) Internet business expenses relate to our prior investment in
    VelocityHSI, Inc. VelocityHSI filed for bankruptcy protection during third
    quarter 2001. BRE's investment in and advances to VelocityHSI were written
    down to zero during second quarter 2001. A reserve of $2,400,000 for
    potential BRE liabilities related to VelocityHSI was provided for as part
    of our second quarter charge. 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, and
    was added back to determine FFO from real estate. The effect of including
    this expense in FFO would be ($0.0) and ($0.09) for the quarters ended
    March 31, 2002 and 2001, respectively.
    (B) Calculated using the FFO definition from NAREIT's October 1999 White
    Paper (as amended).
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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

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