BRE Properties Reports First Quarter Results: Per Share FFO Increased 8%

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



Apr 19, 2001, 01:00 ET from BRE Properties, Inc.

    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 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.
    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 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.