Meaning: This sentence expresses that the group of people that includes the speaker has a relationship of liking and trust with each other.
Choice of Words: The word "we" is used to refer to a group of people that includes the speaker. The word "are" is a form of the verb "to be", which is used to describe a state of existence or condition. The word "friends" is a noun that describes a relationship between people who like and trust each other.