This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BRE Properties' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: BRE

We encourage our listeners to read BRE’s Form 10-K for a full description of potential

risk factors and our 10-Q for interim updates. This morning management’s commentary will cover our financial and operating results for the quarter, the operating environment, and un update on our investment and activity, our financial position and our outlook for the balance of the year. John, Scott and I will provide the prepared remarks. Steve Dominiak will be available during the Q&A session.

FFO per share totaled $0.59 for the quarter, which compares favorably to the range we provided in May of $0.56 to $0.58. Our results came in through the high end of the FFO range as property level expenses came in lower than anticipated.

We are updating our annual FFO guidance to a range of $2.32 to $2.38 with a midpoint at 2.35, which is unchanged from our initial guidance. The updated guidance reflects the continued strength of market fundamentals that we see in our Northern California and Seattle market while also recognizing the impact of less trends experienced by our Southern California markets in the first half of the year.

We are encouraged by the June job numbers in our core market. San Diego reordered year-over-year job gains of 23,000 or 1.9% growth. Orange county reordered gains of 33,000 or 2.4% growth, and Los Angeles posted new jobs of 78,000 for growth of 2.1%.

On a percentage of growth basis, these gains all exceeded the markets of New York, Washington, D.C., Dallas and Atlanta. The San Francisco Bay area and Seattle markets continue their strong growth in employment, recording year-over-year gains in June of 3% and 2.6%, respectively.

These numbers suggest that Southern California job growth is finally gaining traction. There is no doubt that the uneven pace of the recovery in markets like San Diego, which experienced the negative effect of troop rotation early in the year, challenged our ability to aggressively push rent and impacted the patient growth for the entire portfolio. As a result, we’ve brought the midpoint of our annual same-store revenue guidance down by 50 basis points from the initial midpoint, reflecting this market condition.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs