BRE Sees In-Range FFO for 2007, 2008

SAN FRANCISCO (AP) - BRE Properties Inc., a real-estate investment trust focused on multifamily properties in the West, said Wednesday it expects declining job growth and higher rental competition in 2008, offset by strength in two core markets.

It predicts funds from operations will be between $2.59 and $2.63 per share in 2007 and $2.70 and $2.85 per share in 2008.

FFO, a widely used gauge of REIT operating performance, adds depreciation and amortization expenses, as well as other non-operating items, back to net income.

Analysts polled by Thomson Financial predict FFO of $2.60 per share in 2007 and $2.85 per share in 2008.

BRE predicted 2008 earnings will be between $1.15 and $1.30 per share, while analysts expect earnings of $1.26 per share.

BRE expects lower job growth and rental competition from single-family housing and condominiums in 2008, offset by economic growth better than the national average in San Francisco and Seattle, two of its core operating markets.

It also expects results will be helped in 2008 by reversal of home ownership levels and better demographic trends.

Shares of BRE added 5 cents to $40.72.

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source: msn.com