BRE Properties, Inc. (NYSE:BRE), a leading owner, operator and developer of high-quality apartment communities in targeted growth markets in California and Seattle, announced today the sale of six joint venture interests to its joint venture partner for a total sales price of $47.5 million. “This sale furthers our strategy of disposing non-core communities and reinvesting the proceeds in BRE’s current development pipeline to increase our concentration in targeted high-barrier, coastal markets,” commented Constance B. Moore, President and Chief Executive Officer. After giving effect to this transaction, the Company exits the Denver, CO market and has two remaining communities held in joint venture structures, representing less than 0.5% of the Company’s expected 2013 annual net operating income.
|Details of the sale are as follows:|
|Interests in communities sold:||The Bluffs at Highland Ranch (Denver, CO)|
|The Fairways at Raccoon Creek (Denver, CO)|
|Pinnacle at DTC (Denver, CO)|
|Pinnacle at Mountain Gate (Denver, CO)|
|Pinnacle at Union Hills (Phoenix, AZ)|
|Pinnacle Terrace (Phoenix, AZ)|
|Ownership Interests:||BRE maintained a 15% interest in each of the joint venture communities. The entire 15% interest in each community was sold.|
|BRE’s share of the six communities held in joint ventures for the year ended 2012:|
|Income from unconsolidated entities:||$1,564,000|
|Management fee revenue received:||$1,082,000|
|Depreciation from unconsolidated entities:||$1,126,000|
|Total contribution to FFO:||$3,772,000|
Funds from Operations (FFO)FFO is used by industry analysts and investors as a supplemental performance measure of an equity REIT. FFO is defined by the National Association of Real Estate Investment Trusts as net income or loss (computed in accordance with accounting principles generally accepted in the United States) excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated real estate assets, plus depreciation and amortization of real estate assets and adjustments for unconsolidated partnerships and joint ventures. We calculate FFO in accordance with the NAREIT definition. About BRE Properties BRE Properties, based in San Francisco, California, focuses on the development, acquisition and management of apartment communities located primarily in the major metropolitan markets of Southern and Northern California and Seattle. BRE directly owns 74 multifamily communities (totaling 21,160 units) and has joint venture interests in an additional two apartment communities (totaling 684 units). BRE Properties is a real estate investment trust (REIT) listed in the S&P MidCap 400 Index. For more information on BRE Properties, please visit our website 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 the company’s results of operations, 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 obligation to update this information. For more details, refer to the company’s SEC filings, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.