UPDATE: BMO Capital Markets Lowers PT to $45 on BRE Properties on Relative Weakness to Peers

BMO Capital Markets maintained BRE Properties (NYSE: BRE) with a Underperform and lowers the price target from $47.00 to $45.00.BMO Capital Markets noted, "While BRE's 4Q12 results beat consensus by $0.01 and same store NOI growth came in relatively healthy at 6.2%, the outlook for 2013 was surprisingly weak, in our view. The company is targeting 2013 FFO of $2.35-$2.45, representing minimal upside versus 2012 despite the strong same-store growth opportunities that appear to be working for everyone else. In particular, its closest peer, Essex Property Trust (ESS, OP) expects 2013 same-store NOI growth of 6%–8%, versus BRE's range of 3.4%–5.55%—more than a 250 bp difference at the midpoint. BRE has slightly more of its portfolio in the relatively weaker Southern California region, but not enough to explain the variance with ESS, in our view."BRE Properties closed at $47.35 on Tuesday.