BRE Properties Reports Third Quarter Results; Per Share FFO Up 11% in Quarter; 14% for Nine-Month Period.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 15, 1996--BRE Properties, Inc (NYSE:BRE) today reported funds from operations (FFO) of $13.4 million, or $.41 per share, for the quarter ended Sept. 30, 1996, compared to $8.0 million, or $.37 per share for the same period a year ago.

Funds from operations for the nine months ended Sept. 30, 1996 totaled $36.4 million, or $1.22 per share, versus $23.4 million, or $1.07 per share in the first nine months of 1995.

Per share FFO reflects a two-for-one stock split, effected in the form of a stock dividend, completed on June 27, 1996. The current financial report also reflects the company's perviously announced change from a July 31 fiscal year end to a Dec. 31 calendar year end. The reported FFO totals for the third quarter and first nine months of 1996 include operating revenues, expenses and newly issued shares arising from the company's merger with Real Estate Investment Trust of California, which closed March 15, 1996.

Frank C. McDowell, BRE president and chief executive officer, said, "BRE's performance in the third quarter partially reflects the continuing strength of California's economic recovery and positive apartment fundamentals in most of our western U.S. markets."

Year-over-year, scheduled rents for BRE's multifamily assets increased 4% on a "same-store" basis, with the greatest strength being evident in Northern California. At quarter end, the average occupancy of the multifamily portfolio was 96%, up from 94% last quarter. Occupancy in the non-core portfolio averaged 94%.

During the third quarter, BRE sold eight non-core properties for an aggregate $87.2 million, and purchased four apartment communities, totaling 1,628 units, for a total of $122.9 million. Reflecting BRE's strategy to balance its multifamily holdings across the key growth markets of the western United States, the most recent acquisitions were in four different markets: the San Francisco Bay Area, Los Angeles/Orange County, Phoenix, and Portland, Oregon.

McDowell added, "We continue to benefit from the merger with REIT of California earlier this year. For example, BRE now has 100% of its apartment portfolio under internal management and we are demonstrating the ability to rapidly integrate sizable new acquisitions into the portfolio. We are achieving new levels of operating efficiency and expense reductions. BRE's general and administrative expenses have dropped from 6.9% of total revenues to 4.4% on a year-to-date basis; real estate expenses for the same period have declined from 34% to 33% of rental income."

BRE Properties is a self-administered, self-managed and fully integrated equity real estate investment trust focusing on multifamily properties in the western United States. BRE owns and operates 52 apartment communities totaling 11,572 units in nine major markets of California, Arizona, Washington, Oregon and Nevada. -0-

                         BRE Properties Inc.
                          Financial Summary
                           Sept. 30, 1996
                   Statement of Operations (Unaudited)
                  (In thousands, except per share data)


                             Quarter Ended       Nine Months Ended
                           9/30/96   9/30/95    9/30/96      9/30/95
                           -------   -------    ---------  ----------
REVENUE
 Rental income             $24,277(b)$16,017     $65,036(b) $46,541
 Other income                1,992       525       6,907      1,787
Total revenue               26,269    16,542      71,943     48,328

EXPENSES
 Real estate expense         7,501     5,857      21,175     15,812
 Depreciation and
  amortization               3,654     1,988       9,379      5,899
 Interest expense            4,307     1,954      11,219      5,751
 General and administrative  1,040       691       3,167      3,321
Total expenses              16,502    10,490      44,940     30,783

Income before gain
 (loss) on sales             9,767     6,052      27,003     17,545
Net gain (loss) on sales    49,352        --      49,578       (880)
NET INCOME                $ 59,119  $  6,052    $ 76,581   $ 16,665

Net income per
outstanding share
Income before gain
 (loss) on sales          $   0.30  $   0.28    $  0.91     $  0.80
Net gain (loss) on sales  $   1.50  $     --    $  1.67     $ (0.04)
NET INCOME PER
  SHARE                   $   1.80  $   0.28    $  2.58     $  0.76

FUNDS FROM OPERATIONS     $ 13,421  $  8,040   $ 36,382    $ 23,444

PER SHARE FUNDS FROM
 OPERATIONS                  $0.41     $0.37      $1.22       $1.07

Weighted average
 shares outstanding         32,810    21,940     29,740      21,900


(a) All per share amounts have been retroactively adjusted to
reflect the 2 for 1 stock split as of June 27, 1996 and the change
in financial reporting year ends.  On May 20, 1996, the company
elected to change its year end from July 31 to Dec. 31,
effective Dec. 31, 1995.

(b) Included in rental income for the three and nine months ended
Sept. 30, 1996 are non-core revenues of $2,969,000 and
$11,796,000, respectively.

                              BRE Properties Inc.
                               Financial Summary
                                Sept. 30, 1996
                           Balance Sheets (Unaudited)

                                    Sept. 30, 1996      Dec. 31, 1995
(In thousands)

ASSETS

 Equity investments in real estate     $773,278          $370,116
 Less: Accumulated depreciation and
  amortization                          (48,832)          (48,036)
                                       ---------         ---------
                                        724,446           322,080
 Investments in limited partnerships      2,692             1,322

 Real estate portfolio                  727,138           323,402

 Mortgage loans, net                      8,005             5,727
 Cash and short-term investments          1,230            16,057
Other                                     3,915             9,709

Total assets                           $740,288          $354,895

LIABILITIES AND SHAREHOLDERS' EQUITY

Mortgage loans                         $133,383          $112,290
Unsecured notes and lines of credit     139,000                --
Accounts payable and accrued expenses     7,263             3,357

Total liabilities                      $279,646          $115,647

Shareholders' equity

Common Stock                                328               219
Additional paid-in capital              460,314           239,029

Total Shareholders' equity              460,642           239,248

Total liabilities and
Shareholders' equity                   $740,288          $354,895

CONTACT: BRE Properties Inc.

Lauren L. Barr, 415/445-6523