This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

BRE Properties Reports Second Quarter 2013 Results

Stocks in this article: BRE

BRE Properties, Inc. (NYSE:BRE), a leading owner, operator and developer of high-quality apartment communities in targeted growth markets in California and Seattle, today reported Core Funds From Operations (Core FFO) of $0.63 per share for the quarter ended June 30, 2013. The per share results reflect an increase of 6.8% over the comparable period in 2012. Core FFO is used to facilitate comparisons of the Company’s earnings results and excludes certain non-core items that by their nature are not comparable when comparing periods or earnings performance between periods. All per share results are reported on a fully diluted basis.

A reconciliation of FFO and Core FFO can be found in Exhibit B of the Company’s Supplemental Operating and Financial Data. During the quarters and six months ended June 30, 2013 and 2012 there were no reconciling differences between FFO and Core FFO.

Highlights

  • Second quarter 2013 same-store revenues and net operating income (NOI) increased 4.7% and 7.1%, respectively, compared to the second quarter 2012. During the quarter, physical occupancy averaged 95.0%; annualized turnover was 64.5%; and average revenue per occupied home was $1,694.
  • Core FFO results of $0.63 per share for the second quarter compared to the previously provided Company guidance of $0.56 to $0.60 per share reflect: (1) solid same-store revenue growth; (2) a reduced level of same-store operating expenses (including a lower level of repairs and maintenance expense and the benefit of $1.0 million in same-store real estate tax refunds); (3) timing on certain G&A expenses (primarily legal related costs); and (4) the timing of community dispositions which closed in late June.
  • As previously reported, during the second quarter, BRE completed the sale of a wholly owned apartment community in Los Angeles, California for net proceeds of $46.8 million and the sale of an apartment community in Phoenix, Arizona in which the Company owned a 15% interest. Total net proceeds to BRE for the joint venture interest sale were $6.0 million.
  • The Company completed construction of Aviara, a 166-home community located on Mercer Island in Seattle, Washington.
  • Annual same-store guidance updated with the expectation that 2013 same-store revenues will increase in a range of 4.25% to 4.75% from 2012 levels, same-store expense will increase in a range of 1.75% to 2.50%, and same-store NOI will increase in a range of 5.0% to 6.0%.
  • 2013 Core FFO guidance updated to $2.44 to $2.50 per share. Third quarter guidance announced in a range of $0.62 to $0.65 per share.

“We are pleased with the progress we have achieved in executing our strategic initiatives in 2013,” commented Constance B. Moore, Chief Executive Officer of BRE Properties. “During the second quarter, we achieved internal growth near the high end of our expectations, completed the disposition of $53 million of interests in non-core communities; and delivered our Aviara development as planned. Based on our year to date results and our expectations for the second half of 2013, we are raising the mid-points of our operational and earnings guidance. Our key initiatives remain unchanged: to maximize the operating performance of our portfolio, and continue to execute on our development and strategic disposition programs. Over time, we believe these efforts will improve our portfolio quality while preserving our balance sheet strength, which should position BRE to generate above-average returns in the coming years.”

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,168.01 +193.70 1.14%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,549.4880 +0.2620 0.01%

Brokerage Partners

Rates from Bankrate.com

  • 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