San Francisco-based BRE Properties reported continued revenue growth in markets in Southern California, including Los Angeles and Orange County, following a warm West Coast winter. President and CEO, Constance Moore, said Wednesday during the company’s Q1 2012 earnings call that BRE was not losing a significant number of residents to home purchases.
“We continue to see revenue growth and construction activity is increasing in many of our markets,” she said. “Although this macro economic situation remains characterized by fits and starts, as the economy continues its slow recovery, BRE is strongly positioned for growth.”
Funds from operations (FFO) totaled $43.6 million, up from $34.8 million for the first quarter of 2011. Year-over-year annual same-store revenues and NOI increased 5.8 percent and 6.7 percent, respectively. Physical occupancy averaged 95.3 percent and annual turnover in same-store portfolio was 55 percent.
BRE currently has four communities under construction, with a total of 1,260 units. Second quarter 2012 FFO per-share guidance was announced in a range of $0.56 - $0.58.
One area of concern that remains for BRE is the San Diego market, where recent troop rotation had an impact on both the single and multifamily markets. “It’s a market that hasn’t quite yet gotten its traction,” said Moore, who remains optimistic. “We don’t expect additional downturn pressure but we’re in peak leasing season right now, so it’s going to depend on our ability to push rent.”