Exhibit 99.2

BRE Properties, Inc.

Third Quarter 2007

Earnings Release and

Supplemental Financial Data

Avenue 64 244 units Emeryville, CA

BRE Properties, Inc. 525 Market Street, 4th Floor San Francisco, CA 94105 Phone: Fax: E-mail: 415.445.6530 415.445.6505 ir@breproperties.com

Investor contact: Edward F. Lange, Jr.

Chief Operating Officer and Chief Financial Officer

415.445.6559

Media contact: Thomas E. Mierzwinski

VP, Corporate Communications

415.445.6525

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this document contains forward-looking statements regarding BRE and property performance, and is based on BRE’s current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, future interest rate levels or capital market conditions. For more details, please refer to BRE’s SEC filings, including its most recent Annual Report on Form 10-K and quarterly report on Form 10-Q.

BRE Properties, Inc.

Third Quarter 2007

Earnings Release and

Supplemental Financial Data

Table of Contents	Page
Financial and Operating Highlights	1
Consolidated Balance Sheets	2
Consolidated Statements of Income - Comparative Quarters and Year to Date Periods	3
Consolidated Balance Sheets - Past Five Quarters	4
Consolidated Statements of Income - Past Five Quarters	5
Reconciliation of FFO, Capital Expenditures, and Continuing and Discontinued Operations	6
Market Summaries “Same-Store” Data
- Q3 2007 vs. Q3 2006	7
- YTD 2007 vs. YTD 2006	8
- Operating Metrics	9
Debt Structure and Share Analysis	10
Development Communities and Land Held for Development	11
Exhibit A - Sequential “Same-Store” Operating Data	12
Exhibit B - Net Asset Value (NAV) Calculation	13
Exhibit C - Non-GAAP Financial Measure Reconciliations and Definitions	14-15

BRE Properties, Inc.

Financial and Operating Highlights

Third Quarter 2007

(Unaudited; in thousands, except per share, ratio and community data)

	Quarter Ended September 30,						Nine Months ended September 30,
OPERATING INFORMATION	2007			2006			2007			2006
Total revenues (1)	$	87,757		$	81,589		$	256,283		$	236,890
Net income available to common shareholders	$	51,425		$	11,495		$	78,485		$	89,499
Per diluted share	$	0.99		$	0.22		$	1.51		$	1.71
Funds from Operations (2)	$	32,433		$	30,583		$	100,211		$	109,124
FFO per diluted share	$	0.62		$	0.58		$	1.90		$	2.05
Nonroutine income items (3)	$	0		$	0		$	1,900		$	22,985
Nonroutine income items per diluted share	$	0.00		$	0.00		$	0.04		$	0.43
Other Expenses (4)	$	0		$	576		$	0		$	1,137
Other Expenses per diluted share	$	0.00		$	0.01		$	0.00		$	0.02
Redemption related preferred stock issuance cost (5)	$	2,768		$	0		$	2,768		$	0
Per diluted share	$	0.05		$	0.00		$	0.05		$	0.00
Dividends per share	$	0.5375		$	0.5125		$	1.6125		$	1.5375
Adjusted EBITDA (2)	$	59,669		$	56,161		$	174,757		$	162,157
Common dividends	$	27,429		$	25,917		$	82,258		$	78,812
Preferred dividends	$	4,232		$	4,468		$	13,169		$	13,404
Interest expense	$	20,480		$	20,372		$	61,069		$	60,842
Interest coverage ratio (6)		2.9			2.8			2.9			2.7
Fixed charge coverage ratio (6)		2.4			2.3			2.4			2.2
Same-store revenue increase/decrease		4.5	%		6.3	%		5.2	%		6.7	%
Same-store expense increase/decrease		1.4	%		6.5	%		-0.5	%		8.2	%
Same-store NOI increase/decrease		5.9	%		6.2	%		7.7	%		6.0	%
Same-store operating margins		70.5	%		69.6	%		70.7	%		69.1	%
CAPITALIZATION DATA							9/30/07			9/30/06
Net real estate investments							$	2,878,542		$	2,598,678
Total assets, gross							$	3,388,411		$	3,058,542
Total debt							$	1,926,779		$	1,567,344
Minority interest							$	30,981		$	60,044
Preferred stock (at liquidation preference)							$	175,000		$	250,000
Total shareholders’ equity							$	913,308		$	985,603
Common shares and units outstanding								51,626			51,242
Share price, end of period							$	55.93		$	59.73
Total market capitalization							$	4,989,221		$	4,878,029
Total book capitalization							$	2,871,068		$	2,612,991
Debt to total market capitalization								39	%		32	%
Debt to total book capitalization								67	%		60	%
Debt to total assets, gross								57	%		51	%
Secured debt to total assets								6	%		10	%
COMMUNITY INFORMATION							9/30/07			9/30/06
Operating communities:
Wholly or Majority Owned Communities								79			79
Wholly or Majority Owned Units								22,041			22,166
Unconsolidated Joint Venture Communities								13			9
Unconsolidated Joint Venture Units								4,080			2,672
Communities under development:
Communities								10			10
Units								3,141			2,462

(1) Revenues reported exclude results from discontinued operations, partnership income and other income.

(2) Please refer to Exhibit C for definitions and reconciliations of all non-GAAP financial measures presented in this package.

(3) The YTD 2007 EPS and FFO totals include $1,900,000 in proceeds from a legal settlement related to Pinnacle Galleria. The YTD 2006 EPS and FFO totals include income from land sales totaling $3,485,000 and settlement proceeds related to the Red Hawk Ranch apartment community totaling $19,500,000.

(4) For the quarter ended September 30, 2006 Other Expenses relates to a prepayment penalty on notes retired prior to maturity. The nine months ended September 30, 2006 Other Expenses also includes Red Hawk Ranch litigation costs totaling $561,000.

(5) Represents preferred stock issuance costs related to the redemption of 8.08% Series B Cumulative Redeemable Preferred Stock during the quarter ended September 30, 2007.

(6) Interest coverage represents ratio of Adjusted EBITDA to interest expense. Fixed charge coverage represents ratio of Adjusted EBITDA to interest expense plus preferred stock dividends.

Page 1

BRE Properties, Inc.

Consolidated Balance Sheets

Third Quarter 2007

(Unaudited, dollar amounts in thousands except per share data)

	September 30, 2007			September 30, 2006
ASSETS
Real estate portfolio:
Direct investments in real estate:
Investments in rental properties	$	2,776,532		$	2,680,948
Construction in progress		307,534			215,650
Less: accumulated depreciation		(438,979	)		(383,870	)
		2,645,087			2,512,728
Equity interests in and advances to real estate joint ventures:
Investments in rental properties		63,336			38,617
Real estate held for sale, net		49,024			—
Land under development		121,095			47,333
Total real estate portfolio		2,878,542			2,598,678
Cash		2,695			13,649
Other assets		68,195			62,345
TOTAL ASSETS		2,949,432			2,674,672
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unsecured senior notes		1,540,000		$	1,290,000
Unsecured line of credit		212,000			—
Secured line of credit		—			75,000
Mortgage loans		174,779			202,344
Accounts payable and accrued expenses		78,364			61,681
Total liabilities		2,005,143			1,629,025
Minority interests		30,981			60,044
Shareholders’ equity:
Preferred Stock, $0.01 par value; 20,000,000 shares authorized: 7,000,000 and 10,000,000 shares with $25 liquidation preference issued and outstanding at September 30, 2007 and September 30, 2006, respectively.		70			100
Common stock, $0.01 par value, 100,000,000 shares authorized. Shares issued and outstanding: 50,765,074 and 50,282,869 at September 30, 2007 and 2006, respectively.		508			503
Additional paid-in capital		912,730			985,000
Total shareholders’ equity		913,308			985,603
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		2,949,432			2,674,672

Page 2

BRE Properties, Inc.

Consolidated Statements of Income

Quarters and Nine Months Ended September 30, 2007 and 2006

(Unaudited, dollar and share amounts in thousands)

	Quarter ended 09/30/2007			Quarter ended 9/30/2006			Nine months ended 09/30/2007			Nine months ended 9/30/2006
REVENUE
Rental income	$	84,018		$	77,645		$	245,387		$	226,186
Ancillary income		3,739			3,944			10,896			10,704
Total revenue		87,757			81,589			256,283			236,890
EXPENSES
Real estate expenses	$	26,875		$	25,422		$	77,445		$	74,545
Depreciation		19,443			17,810			57,755			54,248
Interest expense		20,480			20,372			61,069			60,842
General and administrative		3,973			3,972			13,525			13,157
Other expenses		—			576			—			1,137
Total expenses		70,771			68,152			209,794			203,929
Other income		840			1,751			5,031			26,049
Income before minority interests, partnership income and discontinued operations		17,826			15,188			51,520			59,010
Minority interests		(570	)		(897	)		(1,719	)		(2,702	)
Partnership income		529			432			1,481			741
Income from continuing operations		17,785			14,723			51,282			57,049
Discontinued operations:
Discontinued operations, net (1)		1,391			1,240			3,891			7,552
Net gain on sales		39,249			—			39,249			38,302
Total discontinued operations		40,640			1,240			43,140			45,854
NET INCOME	$	58,425		$	15,963		$	94,422		$	102,903
Redemption related preferred stock issuance cost		2,768			—			2,768			—
Dividends attributable to preferred stock		4,232			4,468			13,169			13,404
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	51,425		$	11,495		$	78,485		$	89,499
Net income per common share - basic	$	1.01		$	0.23		$	1.55		$	1.75
Net income per common share - assuming dilution	$	0.99		$	0.22		$	1.51		$	1.71
Weighted average shares outstanding - basic (2)		50,745			50,875			50,685			51,065
Weighted average shares outstanding - assuming dilution (2)		51,760			52,090			51,810			52,285
(1)    Details of net earnings from discontinued operations. For 2007 includes three operating properties held for sale as of September 30, 2007, one property contributed to joint venture in July of 2007 and one property sold in September of 2007. YTD September 30, 2006 totals also include results from seven properties held for sale and contributed to a joint venture in April 2006.
	Quarter ended 09/30/2007			Quarter ended 9/30/2006			Nine months ended 09/30/2007			Nine months ended 9/30/2006
Rental and ancillary income	$	2,169		$	2,896		$	7,945		$	15,164
Real estate expenses		(778	)		(1,113	)		(3,113	)		(6,000	)
Depreciation		—			(543	)		(941	)		(1,612	)
Income from discontinued operations, net	$	1,391		$	1,240		$	3,891		$	7,552

(2) See analysis of weighted average shares and ending shares at page 10.

Page 3

BRE Properties, Inc.

Consolidated Balance Sheets-Past Five Quarters

(Unaudited, dollar amounts in thousands except per share data)

	September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006
ASSETS
Real estate portfolio:
Direct investments in real estate:
Investments in rental properties	$	2,776,532		$	2,702,810		$	2,743,076		$	2,726,159		$	2,680,948
Construction in progress		307,534			327,256			287,402			242,509			215,650
Less: accumulated depreciation		(438,979	)		(420,589	)		(420,385	)		(401,893	)		(383,870	)
		2,645,087			2,609,477			2,610,093			2,566,775			2,512,728
Equity interests in real estate joint ventures:
Investments in rental properties		63,336			44,747			39,202			38,846			38,617
Real estate held for sale		49,024			79,883			—			—			—
Land under development		121,095			118,196			150,528			146,659			47,333
Total real estate portfolio		2,878,542			2,852,303			2,799,823			2,752,280			2,598,678
Cash		2,695			11,937			59,536			10,082			13,649
Other assets		68,195			59,912			62,423			61,129			62,345
TOTAL ASSETS	$	2,949,432		$	2,924,152		$	2,921,782		$	2,823,491		$	2,674,672
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unsecured senior notes	$	1,540,000		$	1,540,000		$	1,590,000		$	1,290,000		$	1,290,000
Unsecured line of credit		212,000			129,000			—			115,000			—
Secured line of credit		—			—			75,000			75,000			75,000
Mortgage loans		174,779			175,459			188,226			188,910			202,344
Accounts payable and accrued expenses		78,364			89,603			67,965			77,192			61,681
Total liabilities		2,005,143			1,934,062			1,921,191			1,746,102			1,629,025
Minority interests		30,981			31,473			31,994			100,544			60,044
Shareholders’ equity:
Preferred stock		70			100			100			100			100
Common stock		508			507			507			505			503
Additional paid-in capital		912,730			958,010			967,990			976,240			985,000
Total shareholders’ equity		913,308			958,617			968,597			976,845			985,603
TOTAL LIABILITIES AND EQUITY	$	2,949,432		$	2,924,152		$	2,921,782		$	2,823,491		$	2,674,672

Page 4

BRE Properties, Inc.

Consolidated Statements of Income

Past Five Quarters

(Unaudited, dollar amounts in thousands)

	Sept. 30, 2007			June. 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sept. 30, 2006
REVENUE
Rental income	$	84,018		$	81,686		$	79,684		$	78,259		$	77,645
Ancillary income		3,739			3,678			3,479			3,441			3,944
Total revenue		87,757			85,364			83,163			81,700			81,589
EXPENSES
Real estate expenses		26,875			25,429			25,140			23,663			25,422
Depreciation		19,443			19,360			18,952			18,424			17,811
Interest expense		20,480			20,569			20,020			19,357			20,372
General and administrative		3,973			4,737			4,816			4,724			3,972
Other expenses		—			—			—			—			576
Total expenses		70,771			70,095			68,928			66,168			68,153
Other income		840			3,024			1,167			773			1,751
Income before minority interests, partnership income and discontinued operations		17,826			18,293			15,402			16,305			15,187
Minority interests		(570	)		(570	)		(579	)		(720	)		(897	)
Partnership income		529			508			443			409			432
Income from continuing operations		17,785			18,231			15,266			15,994			14,722
Discontinued operations:
Discontinued operations, net (1)		1,391			1,383			1,116			1,298			1,241
Net gain on sales		39,249			—			—			—			—
Total discontinued operations		40,640			1,383			1,116			1,298			1,241
NET INCOME	$	58,425		$	19,614		$	16,382		$	17,292		$	15,963
Redemption related preferred stock issuance cost		2,768			—			—			—			—
Dividends attributable to preferred stock		4,232			4,468			4,468			4,468			4,468
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	51,425		$	15,146		$	11,914		$	12,824		$	11,495
Net income per common share - basic	$	1.01		$	0.30		$	0.24		$	0.25		$	0.23
Net income per common share - diluted	$	0.99		$	0.29		$	0.23		$	0.25		$	0.22
Weighted average shares outstanding - basic		50,745			50,705			50,620			50,410			50,875
Weighted average shares outstanding - assuming dilution		51,760			51,840			51,860			51,610			52,090
(1)    Details of earnings from discontinued operations, net:
	Sept. 30, 2007			June 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sept. 30, 2006
Rental and ancillary income	$	2,169		$	2,945		$	2,830		$	2,860		$	2,896
Real estate expenses		(778	)		(1,184	)		(1,152	)		(1,011	)		(1,113	)
Depreciation		—			(378	)		(562	)		(551	)		(542	)
Income from discontinued operations, net	$	1,391		$	1,383			1,116			1,298		$	1,241

Page 5

BRE Properties, Inc.

Reconciliation of Funds from Operations (FFO), Capital Expenditures, and Continuing and Discontinued Operations

(In thousands, except per share, unit and per unit data)

CALCULATION OF FFO	Sept. 30, 2007			June 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sept. 30, 2006
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	51,425		$	15,146		$	11,914		$	12,824		$	11,495
Add back/exclude:
Depreciation from continuing operations		19,443			19,360			18,952			18,424			17,811
Depreciation from discontinued operations		—			378			562			551			542
Minority interests		570			570			579			720			897
Depreciation from unconsolidated entities		350			272			254			262			244
Net (gain) on sales		(39,249	)		—			—			—			—
Less: Minority interests not convertible into common shares		(106	)		(105	)		(105	)		(229	)		(406	)
FUNDS FROM OPERATIONS (1)	$	32,433		$	35,621		$	32,156		$	32,552		$	30,583
Non-routine income items (2)		—		$	1,900			—			—			—
Other expenses (3)		—			—			—			—		$	576
Redemption related preferred stock issuance cost (4)	$	2,768			—			—			—			—
Weighted average shares and equivalents outstanding - assuming dilution		52,615			52,720			52,770			52,570			53,050
PER SHARE INFORMATION - ASSUMING DILUTION:
Funds from operations	$	0.62		$	0.68		$	0.61		$	0.62		$	0.58
Non-routine income items (2)	$	0.00		$	0.04		$	0.00		$	0.00		$	0.00
Other expenses (3)	$	0.00		$	0.00		$	0.00		$	0.00		$	0.01
Redemption related preferred stock issuance cost (4)	$	0.05		$	0.00		$	0.00		$	0.00		$	0.00
(1)    Funds From Operations (FFO) is calculated in accordance with the White Paper adopted by the National Association of Real Estate Investment Trusts in October 1999 (as amended in April 2002). See Exhibit C for further definition.
(2)    For the quarter ended June 30, 2007, non-routine income items include litigation settlement proceeds of $1,900,000.
(3)    For the quarter ended September 30, 2006, Other Expenses relate to a prepayment penalty on notes retired prior to maturity.
(4)    Represents preferred stock issuance costs related to the redemption of 8.08% Series B Cumulative Redeemable Preferred Stock during the quarter ended September 30, 2007.
CAPITAL EXPENDITURES	Sept. 30, 2007			June 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sept. 30, 2006
Capital expenditures (5)	$	4,019		$	5,956		$	1,347		$	4,209		$	4,018
Average apartment units in period		22,240			22,681			22,720			22,373			22,175
Capital expenditures per apartment unit in period	$	181		$	263		$	59		$	188		$	181
Capital expenditures per apartment unit-trailing four quarters	$	691		$	691		$	621		$	613		$	646
Revenue enhancing rehabilitation costs	$	7,066		$	8,758		$	7,319		$	11,628		$	8,823
(5)    Represents capital expenditures, excluding rehabilitation costs and development advances. The company expenses certain improvements related to the operation of apartment communities, including carpet, window covering and appliance replacements.
RECONCILIATION OF CONTINUING AND DISCONTINUED OPERATIONS	Sept. 30, 2007			June 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sept. 30, 2006
Revenues from continuing operations	$	89,126		$	88,896		$	84,773		$	82,882		$	83,772
Revenues from discontinued operations		2,169			2,945			2,830			2,860			2,896
Total Revenues	$	91,295		$	91,841		$	87,603		$	85,742		$	86,668
Real estate expenses-continuing operations	$	26,875		$	25,429		$	25,140		$	23,663		$	25,422
Real estate expenses-discontinued operations		778			1,184			1,152			1,011			1,113
Total Real Estate Expenses	$	27,653		$	26,613		$	26,292		$	24,674		$	26,535
Total Net Operating Income	$	63,642		$	65,228		$	61,311		$	61,068		$	60,133
Depreciation from continuing operations	$	19,443		$	19,360		$	18,952		$	18,424		$	17,811
Depreciation from discontinued operations		—			378			562			551			542
Total Depreciation	$	19,443		$	19,738		$	19,514		$	18,975		$	18,353

Page 6

BRE Properties, Inc.

“Same-Store” Markets Summary

For the Quarters ended September 30, 2007 and 2006

(Dollar amounts in thousands)

	No. of Units	Revenues						Expenses
California		Q3 2007		Q3 2006		% Change		Q3 2007		Q3 2006		% Change
L.A./Orange County	6,825	$	28,436	$	27,591	3.1	%	$	8,418	$	8,195	2.7	%
San Diego	3,712		16,020		15,585	2.8	%		4,265		4,510	-5.4	%
San Francisco	3,035		13,600		12,593	8.0	%		3,890		3,643	6.8	%
Sacramento	1,796		5,709		5,700	0.2	%		1,863		1,848	0.8	%
Pacific Northwest
Seattle	3,211		11,578		10,573	9.5	%		3,495		3,520	-0.7	%
Mountain/Desert Markets
Phoenix	902		2,535		2,481	2.2	%		1,058		956	10.7	%
Total Same-Store (1)	19,481	$	77,878	$	74,523	4.5	%	$	22,989	$	22,672	1.4	%

	No. of Communities	No. of Units	Net Operating Income
California			Q3 2007		Q3 2006		% Change		% of Total
L.A./Orange County	25	6,825	$	20,018	$	19,396	3.2	%	36	%
San Diego	12	3,712		11,755		11,075	6.1	%	21	%
San Francisco	9	3,035		9,710		8,950	8.5	%	18	%
Sacramento	8	1,796		3,846		3,852	-0.2	%	7	%
Pacific Northwest
Seattle	12	3,211		8,083		7,053	14.6	%	15	%
Mountain/Desert Markets
Phoenix	2	902		1,477		1,525	-3.1	%	3	%
Total Same-Store (1)	68	19,481	$	54,889	$	51,851	5.9	%	100	%

	No. of Communities		No. of units		Net Operating Income
“Non Same-Store” Summary					Q3 2007		Q3 2006
Acquired properties (2)	4		930		$	2,562	$	1,819
Development properties (3)	3		664			2,101		1,571
Rehabilitation properties (4)	1		453			1,083		376
Discontinued operations (5)	5		1,153			1,391		1,783
Joint venture income (6)	13		4,080			529		432
Commercial properties (7)	n/a		n/a			247		550
Other income	n/a		n/a			840		1,751
Total Non Same-Store	26		7,280		$	8,753	$	8,282
Less Properties Sold Q3’07	(2	)	(640	)
Total All Units/NOI	92		26,121		$	63,642	$	60,133

(1) Consists of stabilized properties owned by BRE for at least five full quarters, starting July 1, 2006.

(2) Consists of NOI from properties acquired after July 1, 2006.

(3) Consists of NOI from three properties (664 units) fully delivered or stabilized and three properties (444 units) partially delivered with units under construction.

(4) Consists of NOI from one property which is under rehabilitation.

(5) For 2007, amounts include results from three properties classified as held for sale as of September 30, 2007, one property contributed to joint venture in July of 2007 and one property sold in September of 2007.

(6) Consists of our percentage of net income derived from joint venture investments in rental properties.

(7) Consists of NOI from commercial properties that will later be converted to multi-family and other real estate expenses.

Page 7

BRE Properties, Inc.

“Same-Store” Markets Summary

For the Nine Months Ended September 30, 2007 and 2006

(Dollar amounts in thousands)

	No. of Units	Revenues						Expenses
California		YTD 2007		YTD 2006		% Change		YTD 2007		YTD 2006		% Change
L.A./Orange County	6,825	$	84,414	$	80,621	4.7	%	$	24,361	$	24,942	-2.3	%
San Diego	3,712		46,923		45,982	2.0	%		12,652		13,026	-2.9	%
San Francisco	3,035		39,980		36,843	8.5	%		11,057		10,962	0.9	%
Sacramento	1,796		16,861		16,948	-0.5	%		5,510		5,396	2.1	%
Pacific Northwest
Seattle	2,963		30,852		27,763	11.1	%		9,789		9,510	2.9	%
Mountain/Desert Markets
Phoenix	902		7,530		7,306	3.1	%		2,904		2,794	3.9	%
Total Same-Store (1)	19,233	$	226,560	$	215,463	5.2	%	$	66,273	$	66,630	-0.5	%

	No. of Communities	No. of Units	Net Operating Income
California			YTD 2007		YTD 2006		% Change		% of Total
L.A./Orange County	25	6,825	$	60,053	$	55,679	7.9	%	37	%
San Diego	12	3,712		34,271		32,956	4.0	%	21	%
San Francisco	9	3,035		28,923		25,881	11.8	%	18	%
Sacramento	8	1,796		11,351		11,552	-1.7	%	7	%
Pacific Northwest
Seattle	11	2,963		21,063		18,253	15.4	%	13	%
Mountain/Desert Markets
Phoenix	2	902		4,626		4,512	2.5	%	3	%
Total Same-Store (1)	67	19,233	$	160,287	$	148,833	7.7	%	100	%

	No. of Communities		No. of units		Net Operating Income
“Non Same-Store” Summary					YTD 2007		YTD 2006
Acquired properties (2)	4		930			7,650		5,114
Development properties (3)	3		664			5,520		3,220
Rehabilitation properties (4)	2		701			4,758		3,493
Discontinued operations (5)	12		3,337			4,832		9,164
Joint venture income (6)	13		4,080			1,481		741
Commercial properties (7)	n/a		n/a			623		1,685
Other income (8)	n/a		n/a			5,031		26,049
Total Non Same-Store	34		9,712		$	29,895	$	49,466
Less Properties Sold	(9	)	(2,824	)
Total All Units / NOI	92		26,121		$	190,182	$	198,299

(1) Consists of stabilized properties owned by BRE for at least seven full quarters, starting January 1, 2006.

(2) Consists of NOI from properties acquired after January 1, 2006.

(3) Consists of NOI from three properties (664 units) fully delivered or stabilized after January 1, 2006 and three properties (444 units) partially delivered with units under construction.

(4) Consists of NOI from two properties which are under rehabilitation.

(5) For 2007, amounts include results from three properties classified as held for sale as of September 30, 2007, one property contributed to joint venture in July of 2007 and one property sold in September of 2007. For 2006, amounts also include results from seven properties held for sale and contributed to joint venture in April of 2006.

(6) Consists of our percentage of net income derived from joint venture investments in rental properties.

(7) Consists of NOI from commercial properties that will later be converted to multi-family and other real estate expenses.

(8) The 2007 YTD Other income totals include $1,900,000 in proceeds from a legal settlement related to Pinnacle Galleria.

The YTD 2006 Other income totals include income from land sales totaling $3,485,000 and settlement proceeds related to the Red Hawk Ranch apartment community totaling $19,500,000.

Page 8

BRE Properties, Inc.

“Same-Store” Operating Metrics

As of September 30, 2007 and 2006

	No. of Units	Market Rent per Unit (1)						Occupancy (2)				Turnover Ratio (3)
		Q3’07		Q3’06		% Change		Q3’07		Q3’06		2007		2006
California
L.A./Orange Co.	6,825	$	1,529	$	1,460	4.8	%	93.2	%	94.2	%	62	%	65	%
San Diego	3,712		1,548		1,501	3.2	%	95.5	%	95.2	%	70	%	73	%
San Francisco	3,035		1,643		1,532	7.2	%	95.4	%	94.1	%	60	%	59	%
Sacramento	1,796		1,146		1,128	1.6	%	94.4	%	94.4	%	70	%	69	%
Pacific Northwest
Seattle	3,211		1,292		1,171	10.4	%	95.0	%	94.8	%	65	%	60	%
Mountain/Desert Markets
Phoenix	902		1,021		1,020	0.0	%	95.1	%	93.2	%	67	%	70	%
Total/Average Same Store (4)	19,481	$	1,453	$	1,380	5.2	%	94.5	%	94.5	%	65	%	66	%

(1) Represents, by region, weighted average market level rents for the period.

(2) Represents average physical occupancy for the quarter. Excludes properties in lease-up.

(3) Represents the annualized number of units turned over for the nine month period, divided by the number of units in the region.

(4) Consists of stabilized properties directly owned by BRE for at least five full quarters, starting July 1, 2006

“Non Same-Store” Operating Metrics

Acquisition, Development, Rehabilitation,

and Joint Venture Communities - Q307 ⁽⁵⁾

		Number of Units
	ACQ	DEV	REHAB	HELD FOR SALE	JV	Total	Market Rent/Unit		Average Occupancy
California
L.A./Orange Co.	684	664	—	—	—	1,348	$	1,540	92.5	%
San Diego	246	—	—	—	—	246		1,600	92.9	%
San Francisco	—	—	453			453		1,690	76.4	%
Sacramento	—	—	—	152	236	388		1,115	95.3	%
Pacific Northwest
Seattle	—	—	—	361	—	361		1,047	96.8	%
Mountain/Desert Markets
Phoenix	—	—	—	—	1,248	1,248		939	94.3	%
Denver	—	—	—	—	2,596	2,596		914	96.0	%
Total/Average Non-Same Store	930	664	453	513	4,080	6,640	$	1,143	93.5	%
Total/Average Portfolio						26,121	$	1,374	94.2	%

(5) Consists of communities acquired and development properties delivered or stabilized after July 1, 2006, one community currently under rehabilitation and thirteen joint venture communities.

Page 9

BRE Properties, Inc.

Debt Structure and Share Analysis as of September 30, 2007

(Dollar and share amounts in thousands)

	Balance Outstanding September 30, 2007		Average Life	For the nine months ended September 30, 2007
FIXED RATE				Weighted Average Int. Rate		Percentage Total Debt		Percentage Gross Assets
Unsecured (1)	$	1,540,000	5.50 years	5.58	%	79.9	%	45.4	%
Secured		163,579	4.36 years	6.23	%	8.5	%	4.8	%
Total fixed rate debt	$	1,703,579	5.39 years	5.65	%	88.4	%	50.2	%
VARIABLE RATE DEBT
Unsecured Line of credit (2)	$	212,000	5.00 years	6.54	%	11.0	%	6.3	%
Secured tax-exempt mortgages		11,200	0.33 years	4.92	%	0.6	%	0.3	%
Total variable rate debt	$	223,200	4.63 years	6.46	%	11.6	%	6.6	%
TOTAL DEBT	$	1,926,779	5.55 years	5.74	%	100.0	%	56.8	%

Ratio of debt to total market capitalization	39	%
Interest expense coverage - YTD ‘07 (3)	2.9	x
Fixed charge coverage - YTD ‘07 (3)	2.4	x

SCHEDULED PRINCIPAL PAYMENTS

	Unsecured		Secured		Total
2007	$	—	$	697	$	697
2008		—		22,586		22,586
2009		200,000		19,340		219,340
2010		150,000		33,271		183,271
2011		250,000		2,127		252,127
2012 (4)		672,000		66,645		738,645
Thereafter		480,000		30,113		510,113
Total	$	1,752,000	$	174,779	$	1,926,779

SENIOR UNSECURED DEBT RATINGS

Moody’s	Baa2	(stable	)
Standard & Poor’s	BBB	(stable	)
Fitch	BBB	(stable	)

CAPITALIZED INTEREST

	Qtr. Ended 9/30/2007		Qtr. Ended 9/30/2006
Interest capitalized	$	6,054	$	3,784
	YTD 9/30/2007		YTD 9/30/2006
Interest capitalized	$	18,190	$	11,560

SUMMARY OF COMMON SHARES

Weighted Average	Qtr. Ended 9/30/2007		Qtr. Ended 9/30/2006
Weighted average shares outstanding (5)	50,745		50,875
Weighted average OP units	855		960
Dilutive effect of stock options	1,015		1,215
Diluted shares - FFO (6)	52,615		53,050
Less: Anti-dilutive OP Units (7)	(855	)	(960	)
Diluted shares - EPS (8)	51,760		52,090
Weighted Average	YTD 9/30/2007		YTD 9/30/2006
Weighted average shares outstanding (5)	50,685		51,065
Weighted average OP units	880		975
Dilutive effect of stock options	1,125		1,220
Diluted shares - FFO (6)	52,690		53,260
Less: Anti-dilutive OP Units (7)	(880	)	(975	)
Diluted shares - EPS (8)	51,810		52,285
Ending	As of 9/30/2007		As of 9/30/2006
Shares outstanding at end of period	50,781		50,283
OP units at end of period	845		959
Dilutive effect of stock options	1,127		1,220
Total	52,753		52,462
SUMMARY OF PREFERRED SHARES
	Qtr. Ended 9/30/2007		Qtr. Ended 9/30/2006
8.08% Series B, $25 per share liquidation pref.	—		3,000
6.75% Series C, $25 per share liquidation pref.	4,000		4,000
6.75% Series D, $25 per share liquidation pref.	3,000		3,000
	7,000		10,000

(1) Includes $460 million in convertible senior notes.

(2) At September 30, 2007 we had a revolving Line of credit providing up to $800 million priced at LIBOR plus 47.5 bp, maturing in September 2012.

(3) Represents interest expense and preferred stock dividend payment coverage for the nine months ended September 30, 2007.

(4) Includes the scheduled maturity of our unsecured line of credit. At September 30, 2007, the outstanding balance was $212 million.

(5) Represents denominator for shares in the calculation of basic earnings per share.

(6) Represents denominator for shares in the calculation of diluted FFO per share.

(7) Under FAS 128, common share equivalents deemed to be anti-dilutive are excluded from the diluted earnings per share calculations.

(8) Represents denominator for shares in the calculation of diluted EPS.

Page 10

BRE Properties, Inc.

Development Communities and Land Held for Development

September 30, 2007

(Dollar amounts in millions)

CONSTRUCTION IN PROGRESS	Number of Units	Cost Incurred (1)		Estimated Cost (2)		Balance to Complete		Product Type	First Units Delivered	Estimated Completion (3)
The Stuart at Sierra Madre Villa
Pasadena, CA	188	$	60.9	$	61.8	$	0.9	Podium	3Q/2007	4Q/2007
Renaissance at Uptown Orange
Orange, CA	460		112.4		114.7		2.3	Wrap	1Q/2007	4Q/2007
Avenue 64
Emeryville, CA	224		65.5		67.9		2.4	Podium	3Q/2007	4Q/2007
5600 Wilshire
Los Angeles, CA	284		79.7		134.2		54.5	Podium	3Q/2008	1Q/2009
Park Viridian (4)
Anaheim, CA	320		37.6		89.0		51.4	Podium	4Q/2008	3Q/2009
Taylor 28 Apartments
Seattle, WA	197		17.0		59.8		42.8	Podium	1Q/2009	2Q/2009
Belcarra Apartments
Bellevue, WA	296		22.5		83.7		61.2	Podium	3Q/2009	1Q/2010
Total CIP	1,969	$	395.6	$	611.1	$	215.5

LAND OWNED (5)	Number of Units	Cost Incurred			Estimated Cost		Estimated Const. Start	Product Type
Crossings
Santa Clara, CA	277	$	15.9		$	86.5	1H/2008	Podium
Wilshire La Brea
Los Angeles, CA	645		73.3			320.3	2H/2008	Mid rise
Pleasanton
Pleasanton, CA	240		11.3			72.1	2H/2009	Garden
Stadium Park II
Anaheim, CA	TBD		20.6			TBD	TBD	Wrap
Total LUD	1,162	$	121.1		$	478.9
Projected Composite Yield Upon Stabilization (6)			6.50% - 7.50	%

LAND UNDER CONTRACT (7)	Number of Units	Cost Incurred (8)		Estimated Cost (9)		Estimated Const. Start	Product Type
Riverside, CA	208	$	1.6	$	46.2	2H/2008	Garden
Pasadena II, CA	212		1.3		87.6	2H/2008	Podium
Mercer Island, WA	162		1.0		50.1	2H/2008	Podium
Walnut Creek, CA	361		2.7		126.0	1H/2009	Podium
Sunnyvale, CA	348		1.6		125.4	1H/2009	Wrap
Total	1,291	$	8.2	$	435.3

(1) Reflects all recorded costs incurred as of September 30, 2007, recorded on our consolidated balance sheets as “direct investments in real estate-construction in progress”. Included in this amount is $59.4 million of costs for the 297 completed units on Renaissance at Uptown Orange, $12.1 million of costs for the 68 completed units on The Stuart at Sierra Madre and $16.6 million of costs for the 79 completed units on Avenue 64 which are reflected on our Consolidated Balance Sheet as “direct investments in real estate-investments in rental properties.”

(2) Reflects the estimated economic cost of development projects, which in certain instances may not reflect the carrying value of the final asset reported under GAAP.

(3) “Completion” is defined as our estimate of when an entire project will have a final certificate of occupancy issued and be ready for occupancy. Completion dates have been updated to reflect our current estimates of receipt of final certificates of occupancy, which are dependent on several factors, including construction delays and the inability to obtain necessary public approvals.

(4) Reflects name change of Stadium Park I.

(5) Represents projects in various stages of predevelopment, development and initial construction, for which construction or supply contracts have not yet been finalized. As these contracts are finalized, projects are transferred to construction in progress

(6) Represents weighted average projected stabilized yield for construction in progress and land under development.

(7) Land under contract represents land parcels for which we have signed a purchase and sale agreement and commenced the entitlement process.

(8) Represents deposits, contractual costs, and entitlement expenses incurred to date.

(9) Estimated costs for properties categorized as Land Under Contract are subject to change during the process of entitlement.

Page 11

BRE Properties, Inc. Sequential “Same-Store” Multifamily Markets Summary Last five quarters Exhibit A

	Q3 2007		Q2 2007		Q1 2007		Q4 2006		Q3 2006
REVENUES
California
L.A./Orange County	0.4	%	2.5	%	-0.1	%	0.3	%	2.6	%
San Diego	2.7	%	1.8	%	-1.2	%	-0.6	%	1.0	%
San Francisco	3.0	%	0.3	%	3.9	%	0.6	%	2.4	%
Sacramento	2.0	%	0.7	%	-0.8	%	-2.5	%	1.1	%
Pacific Northwest
Seattle	2.2	%	3.8	%	3.4	%	-0.2	%	3.3	%
Mountain/Desert Markets
Phoenix	-0.2	%	3.4	%	-0.8	%	0.3	%	1.1	%
Total Same Store	1.7	%	2.1	%	0.7	%	-0.2	%	2.2	%
EXPENSES (1)
	Q3 2007		Q2 2007		Q1 2007		Q4 2006		Q3 2006
California
L.A./Orange County	4.5	%	2.1	%	1.4	%	-5.1	%	-5.4	%
San Diego	-0.1	%	3.6	%	4.0	%	-12.2	%	2.6	%
San Francisco	8.7	%	-0.3	%	8.7	%	-9.4	%	0.7	%
Sacramento	2.0	%	0.4	%	3.8	%	-3.5	%	2.2	%
Pacific Northwest
Seattle	-3.5	%	3.6	%	6.9	%	-7.2	%	5.6	%
Mountain/Desert Markets
Phoenix	13.8	%	1.3	%	15.2	%	-17.4	%	4.9	%
Total Same Store	3.2	%	2.0	%	4.8	%	-8.0	%	0.0	%
NET OPERATING INCOME
	Q3 2007		Q2 2007		Q1 2007		Q4 2006		Q3 2006
California
L.A./Orange County	-1.3	%	2.7	%	-0.7	%	2.6	%	6.4	%
San Diego	3.8	%	1.2	%	-3.0	%	4.1	%	0.4	%
San Francisco	0.8	%	0.5	%	2.3	%	4.7	%	3.1	%
Sacramento	2.1	%	0.8	%	-3.0	%	-2.0	%	0.6	%
Pacific Northwest
Seattle	4.9	%	3.9	%	1.7	%	3.4	%	2.2	%
Mountain/Desert Markets
Phoenix	-8.2	%	4.6	%	-8.4	%	11.8	%	-1.2	%
Total Same Store	1.0	%	2.1	%	-0.9	%	3.3	%	3.1	%

(1) Expenses fluctuate from quarter to quarter due to timing of repairs and maintenance, utilities and other items.

Page 12

BRE Properties, Inc.	Exhibit B
Net Asset Value Calculation, Annualized Q3 2007
(Amounts in thousands, except per share data)
Overall portfolio capitalization rate: 4.97% (1)

	Calculation per Actual-Q3 ‘07			Adjustments			As Adjusted
Annualized revenues and expenses:
Current rental revenues	$	336,072					$	336,072
Partnership and ancillary revenues		17,072						17,072
Total real estate revenues	$	353,144			($13,307	)(3), (4)	$	339,837
Total real estate expenses		(107,500	)		5,673	(3), (4)		(101,827	)
Annualized real estate net operating income	$	245,644			($7,634	)	$	238,010
Real estate asset value	$	4,942,535					$	4,788,934
Value of other assets:
Properties acquired @ 1.0x cost		—			—			—
Construction in progress @ 1.35x cost (2)		415,171			172,162	(3)		587,333
Land under development @1.20x cost		145,314			—			145,314
Community under rehabilitation		—			132,524	(4)		132,524
Market value of assets held for sale		87,821						87,821
Receivables and other assets, tangible		47,078						47,078
Other liabilities and nonconvertible minority interest		(86,471	)					(86,471	)
Total value of other assets	$	608,913		$	304,685		$	913,599
Value of all assets:
Real estate asset value	$	4,942,535					$	4,788,934
Value of other assets		608,913						913,599
Total asset value	$	5,551,448					$	5,702,533
Debt and preferred equity:
Mortgage loans	$	174,779					$	174,779
Unsecured senior notes		1,540,000						1,540,000
Unsecured line of credit		212,000						212,000
Secured line of credit		—						—
Perpetual preferred stock		175,000						175,000
Total debt and preferred	$	2,101,779					$	2,101,779
Current equity value	$	3,449,669					$	3,600,754
Common shares outstanding		50,781						50,781
Operating partnership units		845						845
Dilution from stock options		1,127						1,127
Diluted shares/OP units outstanding		52,753						52,753
CURRENT NET ASSET VALUE PER SHARE	$	65.39					$	68.26

1 Market cap rates	Current range
San Francisco	4.00% - 4.75%
San Diego	4.75% - 5.75%
L.A./Orange Co.	4.25% - 5.50%
Sacramento	5.25% - 6:00%
Seattle	4.50% - 5.75%
Phoenix	5.00% - 6.00%
Denver	5.00% - 5.75%
Weighted average	4.45% - 5.50%

NAV Sensitivity

Cap Rate	$NAV/Share
5.10%	$	65.94
4.97%	$	68.26
4.85%	$	70.50

(1) The NAV calculation uses a cap rate of 4.97%, which is at the mid point of our estimated composite range. Market cap rates are based on market transactional data in each operating region, compiled internally, and updated as market conditions change.

(2) Multiple derived by performing risk adjusted discounted cash flow analysis on the assets under construction. Analysis assumes a rising cap rate environment (25bps per year) and a discount rate of 8%.

(3) Represents Galleria at Towngate in Moreno Valley, CA, Renaissance at Uptown Orange in Orange, CA, Avenue 64 in Emeryville, CA and The Stuart at Sierra Madre Villa in Pasadena, CA which have commenced the lease up process or did not generate full rental revenues for the period. Cost is added back to CIP at 1.35x of cost, and NOI from those communities is subtracted to arrive at adjusted NOI. Adjustment reduces annualized NOI by $3.3M.

(4) Represents Mission Peaks which is under rehabilitation and did not generate full rental revenues for this period. Cost added back represents stabilized market value of Mission Peaks assuming 95% occupancy and 4.50% cap rate. NOI from this asset is subtracted to arrive at adjusted NOI. Adjustment reduces annualized NOI by $4.3M.

Page 13

BRE Properties, Inc.	Exhibit C
Non-GAAP Financial Measure Reconciliations and Definitions
(Dollar amounts in thousands)

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. BRE’s definition and calculation of non-GAAP financial measures may differ from those of other REITs, and may, therefore, not be comparable. The non-GAAP financial measures should not be considered an alternative to net income or any other GAAP measurement of performance and should not be considered an alternative to cash flows from operating, investing or financing activities as a measure of liquidity.

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.

We believe that FFO is a meaningful supplemental measure of our operating performance because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure because it excludes historical cost depreciation, as well as gains or losses related to sales of previously depreciated property, from GAAP net income. By excluding depreciation and gains or losses on sales of real estate, management uses FFO to measure returns on its investments in real estate assets. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited.

Management also believes that FFO, combined with the required GAAP presentations, is useful to investors in providing more meaningful comparisons of the operating performance of a company’s real estate between periods or as compared to other companies. FFO does not represent net income or cash flows from operations as defined by GAAP and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered an alternative to net income as an indicator of the REIT’s operating performance or to cash flows as a measure of liquidity. Our FFO may not be comparable to the FFO of other REITs due to the fact that not all REITs use the NAREIT definition.

	Quarter Ended 09/30/07			Quarter Ended 09/30/06			Nine Months Ended 09/30/07			Nine Months Ended 09/30/06
Net income available to common shareholders	$	51,425		$	11,495		$	78,485		$	89,499
Depreciation from continuing operations		19,443			17,810			57,755			54,248
Depreciation from discontinued operations		—			543			941			1,612
Minority interests		570			897			1,719			2,702
Depreciation from unconsolidated entities		350			244			876			582
Net gain on investments		(39,249	)		—			(39,249	)		(38,302	)
Less: Minority interests not convertible to common		(106	)		(406	)		(316	)		(1,217	)
Funds from operations	$	32,433		$	30,583		$	100,211		$	109,124
Diluted shares outstanding - EPS (1)		51,760			52,090			51,810			52,285
Net income per common share - diluted	$	0.99		$	0.23		$	1.51		$	1.71
Diluted shares outstanding - FFO (1)		52,615			53,050			52,690			53,260
FFO per common share - diluted	$	0.62		$	0.58		$	1.90		$	2.05

(1) See analysis of weighted average shares and ending shares at page 10.

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BRE Properties, Inc.	Exhibit C, continued
Non-GAAP Financial Measure Reconciliations and Definitions
(Dollar amounts in thousands)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined by BRE as EBITDA, excluding minority interests, gains or losses from sales of investments, preferred stock dividends and other expenses. We consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation, interest, and, with respect to Adjusted EBITDA, gains (losses) from property dispositions, nonroutine items, and other charges, which permits investors to view income from operations without the impact of noncash depreciation or the cost of debt, or with respect to Adjusted EBITDA, other non-operating items described above.

Because EBITDA and Adjusted EBITDA exclude depreciation and amortization and capture neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of EBITDA and Adjusted EBITDA as measures of our performance is limited. Below is a reconciliation of net income available to common shareholders to EBITDA and Adjusted EBITDA:

	Quarter ended 09/30/07			Quarter ended 9/30/06		Nine Months Ended 09/30/07			Nine Months Ended 09/30/06
Net income available to common shareholders	$	51,425		$	11,495	$	78,485		$	89,499
Interest		20,480			20,372		61,069			60,842
Depreciation		19,443			18,353		58,696			55,860
EBITDA		91,348			50,220		198,250			206,201
Minority interests		570			897		1,719			2,702
Net gain on sales		(39,249	)		—		(39,249	)		(38,302	)
Gain on sales of land		—			—		—			(3,485	)
Dividends on preferred stock		4,232			4,468		13,169			13,404
Other expenses		—			576		—			1,137
Redemption related preferred stock issuance cost		2,768			—		2,768			—
Redhawk Settlement		—			—		—			(19,500	)
Galleria Settlement		—			—		(1,900	)		—
Adjusted EBITDA	$	59,669		$	56,161	$	174,757		$	162,157

Net Operating Income (NOI)

We consider community level and portfolio-wide NOI to be an appropriate supplemental measure to net income because it helps both investors and management to understand the core property operations prior to the allocation of general and administrative costs. This is more reflective of the operating performance of the real estate, and allows for an easier comparison of the operating performance of single assets or groups of assets. In addition, because prospective buyers of real estate have different overhead structures, with varying marginal impact to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or groups of assets.

Because NOI excludes depreciation and does not capture the change in the value of our communities resulting from operational use and market conditions, nor the level of capital expenditures required to adequately maintain the communities (all of which have real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI consistently with our definition and, accordingly, our NOI may not be comparable to such other REITs’ NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. NOI also should not be used as a supplement to or substitute for cash flow from operating activities (computed in accordance with GAAP).

	Quarter ended 09/30/07			Quarter ended 9/30/06		Nine Months Ended 09/30/07			Nine Months Ended 09/30/06
Net income available to common shareholders	$	51,425		$	11,495	$	78,485		$	89,499
Interest		20,480			20,372		61,069			60,842
Depreciation		19,443			18,353		58,696			55,860
Minority interests		570			897		1,719			2,702
Net gain on sales		(39,249	)		—		(39,249	)		(38,302	)
Dividends on preferred stock		4,232			4,468		13,169			13,404
General and administrative expense		3,973			3,972		13,525			13,157
Other expenses		—			576		—			1,137
Redemption related preferred stock issuance cost		2,768			—		2,768			—
NOI	$	63,642		$	60,133	$	190,182		$	198,299
Less Non Same-Store NOI		8,753			8,282		29,895			49,466
Same-Store NOI	$	54,889		$	51,851	$	160,287		$	148,833

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