Same-Store % Growth Results
                          YTD 2002 Compared to YTD 2001
                     # of                    % Change    % Change   % Change
                    Units       % of NOI      Revenue     Expenses       NOI
    San Francisco   3,488          28%          -9%           6%        -12%
    San Diego       2,575          15%           5%           5%          5%
    L.A./Orange
     County         2,976          15%           6%          -1%          9%
    Seattle         2,316          10%          -3%           4%         -6%
    Phoenix         2,694          10%          -5%           4%         -9%
    Sacramento      1,896           9%           4%           4%          4%
    Salt Lake
     City           1,517           6%           3%          -1%          4%
    Denver            984           5%          -3%           0%         -4%
    Portland          780           2%           1%           6%         -3%
    Total/Average  19,226         100%          -1%           3%         -3%

                     Same-Store Occupancy and Turnover Rates
                           Q2 2002 Compared to Q2 2001
                                Occupancy Levels           Turnover Ratio
                             Q2 2002       Q2 2001      Q2 2002      Q2 2001
    San Francisco              95%           93%          68%           80%
    San Diego                  96%           95%          64%           64%
    L.A./Orange
     County                    96%           97%          55%           53%
    Sacramento                 95%           96%          88%           73%
    Seattle                    94%           96%          62%           50%
    Portland                   93%           95%          64%           69%
    Salt Lake City             93%           93%          80%          110%
    Denver                     93%           97%          79%           89%
    Phoenix                    92%           93%          81%           75%
    Total/Average              94%           95%          70%           71%

San Francisco Bay Area Performance

In the second quarter, BRE's S.F. Bay area communities continued to experience improved occupancy and resident turnover levels as compared to first quarter 2002. During the second quarter, physical occupancy averaged 95%, increasing from 93% during the first quarter. Annualized resident turnover in this market was 68% for the quarter, down from the 1Q 2002 annualized level of 71%. However, market-level rents have not fully stabilized, declining approximately 1% during the second quarter. The continued decline in market-level rents, while slowing, contributed to a sequential decline of 2% in same-store NOI. The following table provides sequential operating data for the S.F. Bay area for the past six quarters.

                        S.F. Bay Area Operating Metrics
                      Past Six Quarters Ending June 30, 2002
                   Market Rent     Market Rent  Average Physical  Annualized
                     Per Unit       % Change         Occupancy     Turnover
    Q1 2001            $1,963          -1.0%             96%          53%
    Q2 2001            $1,833          -6.6%             93%          80%
    Q3 2001            $1,755          -4.3%             93%          77%
    Q4 2001            $1,599          -8.9%             92%          81%
    Q1 2002            $1,573          -1.6%             93%          71%
    Q2 2002            $1,551          -1.4%             95%          68%
                % Change in Market Rent Q1 2001 to Q2 2002:  -21%

Acquisition and Development Activity

In mid-June, the company acquired three Southern California apartment communities, for a total cost of approximately $75 million. The properties include: Bernardo Crest, comprising 216 one-, two- and three-bedroom garden apartments, located adjacent to downtown Rancho Bernardo, a master-planned community within the City of San Diego; Mission Trails, located northeast of Mission Valley in San Diego, with 208 one- and two-bedroom apartment homes; and Boulder Creek, near the University of California at Riverside, with 264 studio, one- and two-bedroom apartment homes. The acquisition of these properties increases BRE's Southern California portfolio to a total of 28 communities, 7,251 units.

During the second quarter, BRE acquired the ownership interests of its joint venture partners in two communities: Pinnacle Blue Ravine, a 260-unit apartment community located in Sacramento, California; and Pinnacle Sonata, a 268-unit community located in Bothell, Washington. The company also consolidated its investment in a third joint venture property, Pinnacle Stonecreek, a 226-unit community located in Phoenix, Arizona. The transactions resulted in an increase in real estate assets of $79.3 million, and an increase in secured indebtedness of $15.5 million. The communities are now wholly owned by BRE.

At June 30, 2002, the company had four communities in the lease-up phase. Apartment units delivered and in service totaled 621 units, which will increase to 809 units upon the completion of construction. Average occupancy for the lease-up communities was 75% of delivered units, and 58% of total units at the end of second quarter 2002.

BRE currently has six communities with 1,493 units in development, at a total estimated cost of approximately $240 million. Four development communities are located in Southern California and two in the Denver, Colorado region. Expected delivery dates for these communities range from third quarter 2002 to first quarter 2004. In addition, the company owns two parcels of land in Southern California that represent 344 units of future development. It is anticipated that construction on the two sites will commence by fourth quarter 2002.

Financial Information

On June 20, BRE closed the offering of three million shares of 8.08% Series B Cumulative Redeemable Preferred Stock at $25 per share. The Series B Preferred Stock will be redeemable at par on or after June 20, 2007. The preferred shares trade on the NYSE under the symbol BRE_prb.

The net proceeds of the offering will be used to invest in additional multifamily apartment communities and, pending such use, were used to repay borrowings under the company's unsecured credit facility, which had an outstanding balance of $287 million as of June 30, 2002.

At June 30, 2002, BRE's combination of debt and equity resulted in a total market capitalization of approximately $2.7 billion, with a debt-to-total market capitalization ratio of 41%. BRE's outstanding debt of $1.1 billion carried a weighted average interest rate of 5.75%. For the quarter, BRE's coverage ratio of EBITDA to interest expense was 3.4 times. The weighted average maturity for BRE's debt is seven years, excluding amounts drawn on the company's line of credit, and six years when amounts currently drawn are included.

For Q2 2002, cash dividend payments to common shareholders totaled $22.4 million, or $0.4875 per share, a 5% per share increase from $21.7 million, or $0.465 per share, for the same period 2001. Correspondingly, the FFO payout ratio for Q2 2002 was 73%, as compared with 68% for Q2 2001. Cash dividend payments for the six months ended June 30, 2002 reached $44.8 million, or $.975 per share, as compared to $43.3 million, or $0.93 per share in same period last year. The year-to-date 2002 FFO payout ratio was 73%, as compared to 69% for the first six months in 2001.

Earnings Outlook

At June 30, 2002, 13 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 2002 ranged from $0.67 to $0.69, for a consensus average of $0.68 per share. For 2002, 14 analysts have contributed earnings estimates to First Call for BRE ranging from $2.69 to $2.77 per share, for a consensus average of $2.74.

BRE believes that FFO per share results for the balance of 2002 will be affected by continued negative trends in the company's secondary operating markets and the completion and lease-up of development properties. Given current expectations and judgment, the company believes that FFO estimates for 2002 should be adjusted to a range of $2.71 to $2.74 per share. In addition, BRE believes that earnings per share (EPS) estimates for 2002 should be set at a range of $1.72 to $1.75. 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.

Q2 2002 Analyst Conference Call

The company will hold a conference call on Tuesday, July 16, 2002, 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# 4699080), from July 16 to August 15.

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 80 apartment communities totaling 22,245 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 two additional apartment communities, totaling 488 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, 2002
                   CONSOLIDATED BALANCE SHEETS (Unaudited)
                        (Dollar amounts in thousands)
                                               June 30, 2002   June 30, 2001
    Assets
    Real estate portfolio
    Direct investments in real estate:
     Investments in rental properties             $2,023,196     $1,682,019
     Construction in progress                         85,065         59,586
     Less:  accumulated depreciation                (180,103)      (141,387)
                                                   1,928,158      1,600,218
    Equity interests in and advances to
     real estate joint ventures:
     Investments in rental properties                 11,104         30,288
     Construction in progress                         51,247         39,067
                                                      62,351         69,355
    Land under development                            19,615         23,856
    Total real estate portfolio                    2,010,124      1,693,429
    Cash                                               4,877          2,000
    Other assets                                      51,559         51,043
    Total assets                                  $2,066,560     $1,746,472
    Liabilities and shareholders' equity
    Liabilities
     Unsecured senior notes                         $623,672       $483,000
     Unsecured line of credit                        287,000        154,000
     Mortgage loans                                  215,979        212,711
     Accounts payable and accrued expenses            34,205         29,560
    Total liabilities                              1,160,856        879,271
    Minority interest                                 51,507         59,267
    Shareholders' equity
    Preferred stock, $.01 par value; $25 liquidation
     preference; 10,000,000 shares authorized.
     2,150,000 shares 8.50% Series A cumulative
     redeemable issued and outstanding; 3,000,000
     shares 8.08% Series B cumulative redeemable
     issued and outstanding. (No Series B
     outstanding at June 30, 2001.)                  128,750         53,750
    Common stock; $.01 par value,
     100,000,000 shares authorized.
     Shares issued and outstanding:
     45,990,253 and 46,504,843 at
     June 30, 2002 and 2001, respectively.               460            465
    Additional paid-in capital                       724,987        753,719
    Total shareholders' equity                       854,197        807,934
    Total liabilities and
     shareholders' equity                         $2,066,560     $1,746,472

    BRE Properties, Inc.
    Financial Summary
    June 30, 2002
              CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                    (In thousands, except per share data)
                                Quarter ended             Six months ended
                           June 30,      June 30,      June 30,      June 30,
                             2002          2001          2002          2001
    REVENUE
    Rental income          $64,353       $60,482     $126,900      $120,957
    Partnership and
     ancillary income        4,095         4,257        7,963         7,631
    Other income               247         1,483          462         2,995
    Total revenue           68,695        66,222      135,325       131,583
    EXPENSES
    Real estate expenses    19,301        17,386       37,574        34,941
    Depreciation            11,607         9,896       22,364        19,158
    Interest expense        13,678        12,176       26,766        24,207
    General and
     administrative          2,410         2,560        4,613         4,915
    Internet business(A)        --         2,855           --         7,163
    Total expenses          46,996        44,873       91,317        90,384
    Income before gains
     (losses) on sales of
     real estate investments
     and minority interest
     in consolidated
     subsidiaries           21,699        21,349       44,008        41,199
    Gains (losses) on
     sales of real estate
     investments                --            --           --            --
    Income before
     minority interest
     in consolidated
     subsidiaries           21,699        21,349       44,008        41,199
    Minority interest          954         1,047        1,923         2,095
    NET INCOME             $20,745       $20,302      $42,085       $39,104
    Dividends attributable
     to preferred stock      1,308         1,142        2,450         2,284
    Net Income Available
     to Common
     Shareholders          $19,437       $19,160      $39,635       $36,820
    Net income
     per share - Basic       $0.42         $0.41        $0.86         $0.79
    Net income
     per share -
     Assuming dilution       $0.42         $0.41        $0.86         $0.79
    Funds from
     operations(B)         $32,169       $33,151      $64,319       $65,588
    Per share funds
     from operations -
     Assuming dilution(B)    $0.67         $0.68        $1.34         $1.35
    Weighted average
     shares outstanding -
     Basic                  45,950        46,430       45,895        46,320
    Weighted average
     shares outstanding -
     Assuming dilution      48,080        48,680       47,960        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 2001 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 ($0.06) and ($0.15) for the quarter and six months ended
        June 30, 2001, respectively.  There is no impact from VelocityHSI in
        2002.
    (B) Calculated using the FFO definition from NAREIT's October 1999 White
        Paper (as amended).
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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.

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