Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
October 21, 2003

AVALONBAY COMMUNITIES, INC. ANNOUNCES
THIRD QUARTER 2003 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended September 30, 2003 was $55,212,000, resulting in Earnings per Share (“EPS”) of $0.79 (diluted), compared to $0.35 (diluted) for the comparable period of 2002, a per share increase of 125.7%. For the nine month period ended September 30, 2003, EPS was $2.35 (diluted) compared to $1.32 (diluted) for the comparable period of 2002, a per share increase of 78.0%.

Funds from Operations attributable to common stockholders (“FFO”) for the quarter ended September 30, 2003 was $56,159,000 or $0.80 per share (diluted) compared to $61,810,000 or $0.87 per share (diluted) for the comparable period of 2002, a per share decrease of 8.0%. FFO per share (diluted) for the nine months ended September 30, 2003 decreased by 12.5% to $2.46 from $2.81 for the comparable period in 2002.

Operating Results for the Quarter Ended September 30, 2003 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue decreased by $3,212,000, or 2.0% to $157,402,000. For Established Communities, rental revenue decreased 3.5%, which is primarily attributable to a decline in rental rates; economic occupancy between periods remained stable. Total revenue for Established Communities decreased $4,110,000 to $112,341,000 and operating expenses increased $2,018,000, or 5.6%, to $38,185,000. Accordingly, Net Operating Income (“NOI”) for Established Communities decreased by $6,128,000 or 7.6%, to $74,156,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the third quarter of 2002 to the third quarter of 2003:

3Q 03 Compared to 3Q 02
		Established Communities									Total*
		Rental			Operating						% of
		Revenue			Expenses			NOI			NOI
Northeast			(3.8	%)		6.4	%		(8.6	%)		38.9	%
Mid-Atlantic			(0.9	%)		5.0	%		(3.3	%)		16.7	%
Midwest			(4.7	%)		23.4	%		(22.4	%)		2.0	%
Pacific NW			(4.1	%)		2.2	%		(7.9	%)		5.2	%
No. California			(5.7	%)		2.3	%		(9.0	%)		25.9	%
So. California			1.2	%		7.6	%		(1.6	%)		11.3	%
	Total		(3.5	%)		5.6	%		(7.6	%)		100.0	%

* Total represents each region’s % of total NOI from the Company, including discontinued operations.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Sequential Operating Results for the Quarter Ended September 30, 2003 Compared to the Quarter Ended June 30, 2003

The following table reflects the sequential percentage changes in rental revenue, operating expenses and NOI for Established Communities from the second quarter to the third quarter of 2003:

3Q 03 Compared to 2Q 03
		Established Communities
		Rental			Operating
		Revenue			Expenses			NOI
Northeast			(1.0	%)		9.5	%		(6.1	%)
Mid-Atlantic			1.2	%		3.0	%		0.5	%
Midwest			0.9	%		14.4	%		(9.8	%)
Pacific NW			1.9	%		4.1	%		0.4	%
No. California			(2.2	%)		6.0	%		(5.6	%)
So. California			1.1	%		2.7	%		0.3	%
	Total		(0.6	%)		6.7	%		(4.0	%)

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Operating Results for the Nine Months Ended September 30, 2003 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue decreased by $2,825,000, or 0.6% to $475,963,000. For Established Communities, rental revenue decreased 4.8%, comprised of a rental rate decline of 5.0% partially offset by an increase in economic occupancy of 0.2%. Total revenue for Established Communities decreased $16,958,000 to $338,738,000 and operating expenses increased $6,588,000, or 6.4%, to $109,337,000. Accordingly, NOI for Established Communities decreased by $23,546,000 or 9.3%, to $229,401,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the nine months ended September 30, 2002 to the nine months ended September 30, 2003:

YTD 03 Compared to YTD 02
		Established Communities									Total*
		Rental			Operating						% of
		Revenue			Expenses			NOI			NOI
Northeast			(4.0	%)		8.7	%		(9.5	%)		37.9	%
Mid-Atlantic			(2.5	%)		5.7	%		(5.7	%)		15.9	%
Midwest			(6.6	%)		12.4	%		(19.1	%)		3.0	%
Pacific NW			(7.4	%)		2.5	%		(12.7	%)		5.2	%
No. California			(7.9	%)		2.6	%		(11.6	%)		26.0	%
So. California			2.2	%		10.8	%		(1.3	%)		12.0	%
	Total		(4.8	%)		6.4	%		(9.3	%)		100.0	%

* Total represents each region’s % of total NOI from the Company, including discontinued operations.

Established Communities Operating Statistics

Market Rents, as determined by the Company, declined by an average of 2.5% in the third quarter of 2003 compared to the same quarter in the prior year. The greatest declines, on a year over year basis, were in San Jose, CA with a decline of 10.2% and San Francisco, CA with a decline of 5.3% from the third quarter of 2002. Sequentially, as compared to the second quarter of 2003, market rents remained stable for the Established Community portfolio as a whole.

Economic Occupancy was 94.0% during the third quarter of 2003, remaining flat as compared to the same quarter last year. Sequentially, from the second quarter to the third quarter of 2003, Economic Occupancy increased 0.4%. The largest increases in the third quarter 2003 as compared to the second quarter were in San Diego, CA at 3.0%, Boston, MA at 2.7% and Central New Jersey at 2.6%.

Cash Concessions are recognized in accordance with Generally Accepted Accounting Principles (“GAAP”) and are amortized over the approximate lease term, which is generally one year. For the third quarter of 2003, Rental Revenue with Concessions on a Cash Basis decreased 3.6% as compared to the third quarter of 2002 and 1.5% as compared to the second quarter of 2003.

Concessions granted per move-in for Established Communities averaged $873 during the third quarter of 2003, an increase of 170.3% from $323 in the third quarter of 2002 and an increase of 8.7% from $803 in the second quarter of 2003.

Development Activity

The Company completed two development communities during the third quarter of 2003. Avalon at Rock Spring, located in the greater Washington, DC metro area, is a mid-rise community containing 386 apartment homes and was completed for a Total Capital Cost of $46,000,000. Avalon at Gallery Place, also located in Washington, DC, is a high-rise community containing 203 apartment homes and was completed for a Total Capital Cost of $49,000,000.

During the third quarter of 2003, the Company commenced construction on two communities, Avalon at Crane Brook, located in the Boston, MA area and Avalon Milford I, located in the Fairfield-New Haven, CT area. These communities, when completed, are expected to contain an aggregate of 633 apartment homes for a Total Capital Cost of $88,700,000.

Disposition Activity

The Company sold one community, Amberway (located in Orange County, CA), during the third quarter of 2003. This 272 apartment home community was originally constructed in 1983 and was acquired by the Company in 1998. The sales price for this community was $33,500,000, resulting in a gain as reported in accordance with GAAP of $13,575,000 and an Economic Gain of $11,417,000.

Also during the third quarter of 2003, Falkland Chase, a 450 apartment home community located in Silver Spring, MD, was sold by Falkland Partners, LLC, in which the Company has held a 50% membership interest since 1993. The Company’s share of the $58,500,000 sales price for this community was $29,250,000, resulting in net proceeds to the Company of $16,700,000. The Company’s share of the GAAP gain reported by Falkland Partners, LLC is $21,816,000 and is included in joint venture income and minority interest. The Company recognized an additional gain in accordance with GAAP of $1,632,000, resulting from the wind-up of its investment in Falkland Partners, LLC which is also included in joint venture income and minority interest. As a result, the Company reported an Economic Gain of $16,745,000 related to the sale of Falkland Chase. The weighted average Initial Year Market Cap Rate for the two communities sold during the third quarter was 6.4%.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

On October 15, 2003, the Company sold Avalon at Fair Lakes, a 234 apartment home community located in Fairfax, VA. This community was constructed by the Company in 1998. The sales price for this community was $48,500,000, resulting in a gain as reported in accordance with GAAP of approximately $28,200,000 and an Economic Gain of approximately $24,500,000. The Economic Gain as a percentage of Total Capital Cost for this community was 104.4%. The Company anticipates two additional dispositions in the fourth quarter of 2003 with an aggregate estimated sales price of approximately $110,000,000. These anticipated dispositions will bring the aggregate estimated sales price for the Company’s dispositions to $158,500,000 for the fourth quarter of 2003 and to approximately $453,000,000 for the full year 2003, although there can be no assurance that these dispositions will be completed as planned.

Financing, Liquidity and Balance Sheet Statistics

As of September 30, 2003, the Company had $149,350,000 outstanding under its $500,000,000 unsecured credit facility and unrestricted cash of approximately $6,771,000. This unrestricted cash, the unsecured credit facility, net proceeds from anticipated additional asset sales in 2003 and cash retained from operations, will be used to fund development and redevelopment activity and for general corporate purposes. On July 15, 2003, the Company repaid $100,000,000 of unsecured notes pursuant to their scheduled maturity, with an interest rate of 6.5%, along with any unpaid interest.

Leverage, as measured by debt as a percentage of total market capitalization, was 41.6% at September 30, 2003. For the third quarter of 2003, Unencumbered NOI was approximately 80% and Interest Coverage was 3.2 times. Interest Coverage for the third quarter of 2003 includes $23,448,000 representing gains related to the sale of the Falkland Chase Community and investment wind-up.

Issuance of Common Stock

During the third quarter of 2003, the Company sold 2,804,700 shares of common stock at a price of $46.00 per share. The net proceeds from this offering, after underwriting discounts and commissions, of approximately $127,333,000 were used to repay a portion of amounts outstanding on the unsecured credit facility and for general corporate purposes.

Recently Issued Accounting Standards

In January 2003, the Financial Accounting Standards Board issued Interpretation No. (“FIN”) 46, “Consolidation of Variable Interest Entities,” which the Company will adopt effective December 31, 2003. The adoption of FIN 46 is not expected to have a material impact on the Company’s financial condition or results of operations.

The Company has adopted Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity,” effective July 1, 2003. The adoption of this statement did not have a material impact on the Company’s financial condition or results of operations.

In July 2003, the SEC clarified Emerging Issues Task Force Topic D-42, “The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock.” The clarification of Topic D-42 is effective in the first fiscal period ending after September 15, 2003 and is to be applied retroactively. As such, the Company has revised its second quarter 2003 results of operations, as included in the year-to-date September 30, 2003 results, to reflect additional preferred stock dividends of $280,000; no other periods presented in this release were impacted.

Outlook

The Company expects EPS (diluted) in the range of $1.35 to $1.38 for the fourth quarter of 2003 and $3.72 to $3.75 for the full year 2003.

The Company expects Projected FFO per share (diluted) in the range of $0.79 to $0.82 for the fourth quarter of 2003 and $3.25 to $3.28 for the full year 2003.

Other Matters

The Company will hold a conference call on October 22, 2003 at 1:00 PM Eastern Daylight Time (EDT) to review and answer appropriate questions about these results and projections, the earnings release attachments described below, and related matters. The domestic number to call to participate is 1-877-510-2397. The international number to call to participate is 1-706-634-5877. The domestic number to hear a replay of this call is 1-800-642-1687, and the international number to hear a replay of this call is 1-706-645-9291 — Access Code: 2733022.

A webcast of the conference call will also be available at http://www.avalonbay.com/earnings, and an on-line playback of the webcast will be available for at least 30 days following the call.

The Company produces Earnings Release Attachments (the “Attachments”) that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company’s website and through e-mail distribution. Access to the full earnings release including the Attachments through the Company’s website is available at http://www.avalonbay.com/earnings. If you would like to receive future press releases via e-mail, please register through the Company’s website at http://www.avalonbay.com/Template.cfm?Section=Subscribe. Some items referenced in the earnings release may

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

require the Adobe Acrobat 5.0 Reader. If you do not have the Adobe Acrobat 5.0 Reader, you may download it at the following website address: http://www.adobe.com/products/acrobat/readstep.html.

Definitions and Reconciliations

The following non-GAAP financial measures and other terms, as used in the text of this earnings release, are defined and further explained on Attachment 13, “Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms”:

• FFO

• Projected FFO

• Established Communities

• NOI

• Market Rents

• Economic Occupancy

• Rental Revenue with Concessions on a Cash Basis

• Total Capital Cost

• Economic Gain

• Initial Year Market Cap Rate

• Leverage

• Unencumbered NOI

• Interest Coverage

About AvalonBay Communities, Inc.

AvalonBay currently owns or holds an ownership interest in 142 apartment communities containing 42,058 apartment homes in ten states and the District of Columbia, of which ten communities are under construction and two communities are under reconstruction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing upscale apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay’s Website at http://www.avalonbay.com. For additional information, please contact Bryce Blair, Chairman, Chief Executive Officer and President, at (703) 317-4652 or Thomas J. Sargeant, Executive Vice President and Chief Financial Officer, at (703) 317-4635.

Forward-Looking Statements

This release, including its attachments, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the Company’s use of words such as “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. Actual results may differ materially from those expressed or implied by the forward-looking statements as a result of risks and uncertainties, including possible changes in demand for apartment homes, the effects of economic conditions (including interest rates), the impact of competition and competitive pricing, delays in completing developments and lease-ups on schedule, changes in construction costs, the results of financing efforts, the timing and closing of planned dispositions under agreement, the effects of the Company’s accounting policies and other matters detailed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2002 under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements.

The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the fourth quarter or full year 2003. The Company may, in its discretion, provide information in future public announcements regarding its outlook that may be of interest to the investment community. The format and extent of future outlooks may be different from the format and extent of the information contained in this release.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

THIRD QUARTER 2003
Supplemental Operating and Financial Data

Avalon at Rock Spring contains 386 one-, two -and three-bedroom apartment homes
in six four-story buildings. Apartment home features include fully applianced
kitchens, walk-in closets, double bowl bathroom vanities and full size washers
and dryers. Optional amenities include gas fireplaces, bay windows and private
balconies or patios. Residents also enjoy many community amenities including a
fully equipped fitness center, outdoor swimming pool, telecommuting center,
resident lounge and controlled access parking garages.

Avalon at Rock Spring is conveniently located between Old Georgetown Road and
I-270, in North Bethesda, Maryland. The community is located three miles from
downtown Bethesda, and the accessibility of the I-270/Capital Beltway spur
offers residents convenient commuting to major employment and entertainment
centers in Suburban Maryland, Northern Virginia and Washington, D.C. The
community is also adjacent to the Rock Spring business park, the corporate
headquarters of Marriott and Lockheed Martin and the local headquarters of IBM
Federal Systems.

The completion of Avalon at Rock Spring increases AvalonBay’s presence in the
Washington, D.C. metropolitan region to 17 communities with more than 5,600
apartment homes.

THIRD QUARTER 2003

Supplemental Operating and Financial Data

Table of Contents

Company Profile
Selected Operating and Other Information	Attachment 1
Detailed Operating Information	Attachment 2
Condensed Consolidated Balance Sheets	Attachment 3
Sub-Market Profile
Quarterly Revenue and Occupancy Changes (Established Communities)	Attachment 4
Sequential Quarterly Revenue and Occupancy Changes (Established Communities)	Attachment 5
Year to Date Revenue and Occupancy Changes (Established Communities)	Attachment 6
Development, Redevelopment, Acquisition and Disposition Profile
Summary of Development, Redevelopment and Acquisition Activity	Attachment 7
Development Communities	Attachment 8
Redevelopment Communities	Attachment 9
Summary of Development and Redevelopment Community Activity	Attachment 10
Future Development	Attachment 11
Summary of Disposition Activity	Attachment 12
Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms	Attachment 13

The following is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934, as amended. The projections and estimates contained in the attachments referred to above are forward-looking statements. These forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Company’s development, redevelopment, construction, and lease-up activities, which could impact the forward-looking statements made, include: development opportunities may be abandoned; total capital cost of a community may exceed original estimates, possibly making the community uneconomical and/or affecting projected returns; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs; and other risks described in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2002.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
September 30, 2003
(Dollars in thousands except per share data)
(unaudited)

		Q3		Q3					YTD		YTD
Selected Operating Information:		2003		2002		% Change			2003		2002		% Change
Net income available to common stockholders:		$	55,212	$	24,685		123.7	%	$	162,673	$	92,689		75.5	%
	Per common share — basic	$	0.80	$	0.36		122.2	%	$	2.40	$	1.34		79.1	%
	Per common share — diluted	$	0.79	$	0.35		125.7	%	$	2.35	$	1.32		78.0	%
Funds from Operations attributable to common stockholders:		$	56,159	$	61,810		(9.1	%)	$	170,868	$	199,017		(14.1	%)
	Per common share — diluted	$	0.80	$	0.87		(8.0	%)	$	2.46	$	2.81		(12.5	%)
Dividends declared — common:		$	49,487	$	48,561		1.9	%	$	143,934	$	145,413		(1.0	%)
	Per common share	$	0.70	$	0.70		0.0	%	$	2.10	$	2.10		0.0	%
Common shares outstanding			70,695,270		69,398,518					70,695,270		69,398,518
Outstanding operating partnership units			784,726		1,018,448					784,726		1,018,448
Total outstanding shares and units			71,479,996		70,416,966					71,479,996		70,416,966
Average shares outstanding — basic			68,779,429		69,154,045					67,880,019		68,940,901
Average operating partnership units outstanding			899,870		1,018,448					947,790		983,443
Effect of dilutive securities			852,621		877,206					696,419		1,019,697
Average shares outstanding — diluted			70,531,920		71,049,699					69,524,228		70,944,041

Debt Composition and Maturities ⁽¹⁾

		Conventional									Tax-Exempt
		Amt				% of Mkt Cap					Amt				% of Mkt Cap
Long-term notes:
	Variable rate	$	—				—				$	81,155				1.4	%
	Fixed rate		1,880,013				31.9	%				302,348				5.2	%
Variable rate credit facility			149,350				2.5	%				—				—
Short term construction note			36,629				0.6	%				—				—
Total debt		$	2,065,992				35.0	%			$	383,503				6.6	%
Average interest rates (2)				6.3	%								5.7	%
Combined average interest rate (2)									6.2	%

	2003		2004		2005		2006		2007
Remaining debt maturities (3)	$	1,253	$	190,305	$	154,681	$	155,011	$	301,345

⁽¹⁾ Includes debt related to assets held for sale.

⁽²⁾ Includes credit enhancement fees, facility fees, trustees’ fees, etc.

⁽³⁾ Excludes amounts under the $500 million variable rate credit facility that, after all extensions, matures in 2005.

Community Information

	Communities		Apt Homes
Current Communities		132		38,808
Development Communities		10		3,250
Development Rights		41		10,326
Third-party management		1		101

Analysis of Capitalized Costs

	Q4 02		Q1 03		Q2 03		Q3 03
Cap interest	$	6,533	$	6,206	$	6,305	$	6,360
Cap overhead	$	4,050	$	3,176	$	3,291	$	3,710
Non-revenue generating capex per home	$	89	$	41	$	99	$	112

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
September 30, 2003
(Dollars in thousands except per share data)
(unaudited)

		Q3			Q3						YTD			YTD
		2003			2002			% Change			2003			2002			% Change
Revenue:
	Rental and other income	$	153,339		$	147,662			3.8	%	$	453,674		$	438,305			3.5	%
	Management, development and other fees		234			249			(6.0	%)		744			1,866			(60.1	%)
	Total		153,573			147,911			3.8	%		454,418			440,171			3.2	%
Operating expenses:
	Direct property operating expenses, excluding property taxes		39,327			35,341			11.3	%		110,296			95,910			15.0	%
	Property taxes		14,443			13,477			7.2	%		42,853			38,489			11.3	%
	Property management and other indirect operating expenses		7,577			6,906			9.7	%		22,630			22,498			0.6	%
	Total		61,347			55,724			10.1	%		175,779			156,897			12.0	%
	Interest income		852			909			(6.3	%)		2,634			3,013			(12.6	%)
	Interest expense		(33,432	)		(31,386	)		6.5	%		(101,826	)		(86,614	)		17.6	%
	General and administrative expense		(3,382	)		(2,966	)		14.0	%		(10,636	)		(10,009	)		6.3	%
	Joint venture income, minority interest and venture partner interest in profit-sharing (1)		23,266			(571	)		N/A			23,170			(439	)		N/A
	Depreciation expense		(37,996	)		(34,723	)		9.4	%		(112,898	)		(98,618	)		14.5	%
	Income from continuing operations		41,534			23,450			77.1	%		79,083			90,607			(12.7	%)
Discontinued operations: (2)
	Income from discontinued operations		2,278			5,261			(56.7	%)		10,001			16,169			(38.1	%)
	Gain on sale of communities		13,575			—			100.0	%		82,158			—			100.0	%
	Total		15,853			5,261			201.3	%		92,159			16,169			470.0	%
Net income			57,387			28,711			99.9	%		171,242			106,776			60.4	%
Dividends attributable to preferred stock			(2,175	)		(4,026	)		(46.0	%)		(8,569	)		(14,087	)		(39.2	%)
Net income available to common stockholders		$	55,212		$	24,685			123.7	%	$	162,673		$	92,689			75.5	%
Net income per common share- basic		$	0.80		$	0.36			122.2	%	$	2.40		$	1.34			79.1	%
Net income per common share- diluted		$	0.79		$	0.35			125.7	%	$	2.35		$	1.32			78.0	%

(1)  Includes the Company’s share of the GAAP gain reported by Falkland Partners, LLC as a result of the sale of Falkland Chase in the amount of $21,816 and the gain recognized by the Company for the wind-up of its investment of $1,632.

(2)  Reflects net income for communities held for sale as of September 30, 2003 and communities sold during the period from January 1, 2002 through September 30, 2003. The following table details income from discontinued operations as of the periods shown:

		Q3			Q3			YTD			YTD
		2003			2002			2003			2002
Rental income		$	3,829		$	12,703		$	21,545		$	38,617
Operating and other expenses			(1,327	)		(4,585	)		(8,556	)		(13,243	)
Interest expense, net			(224	)		(437	)		(1,040	)		(1,302	)
Minority interest expense			—			(201	)		(389	)		(603	)
Depreciation expense			—			(2,219	)		(1,559	)		(7,300	)
	Income from discontinued operations (3)	$	2,278		$	5,261		$	10,001		$	16,169

(3)  NOI for discontinued operations totaled $2,502 and $12,989 for the three and nine months ended September  30, 2003, of which $158 and $6,127, respectively, related to assets sold.

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
September 30, 2003
(Dollars in thousands)
(unaudited)

	September 30,		December 31,
	2003		2002
Net real estate	$	4,419,045	$	4,213,241
Construction in progress (including land)		283,003		312,378
Real estate assets held for sale, net		78,863		259,812
Total real estate, net		4,780,911		4,785,431
Cash and cash equivalents		6,771		12,916
Cash in escrow		20,682		10,228
Resident security deposits		22,524		21,839
Other assets (1)		134,976		120,421
Total assets	$	4,965,864	$	4,950,835
Unsecured senior notes	$	1,835,298	$	1,985,342
Unsecured facility		149,350		28,970
Notes payable		452,785		417,186
Liabilities related to assets held for sale		14,027		43,053
Other liabilities		232,493		242,559
Total liabilities	$	2,683,953	$	2,717,110
Minority interest		31,016		39,185
Stockholders’ equity		2,250,895		2,194,540
Total liabilities and stockholders’ equity	$	4,965,864	$	4,950,835

⁽¹⁾ Other assets includes $898 and $1,954 relating to discontinued operations as of September 30, 2003 and December 31, 2002, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes — Established Communities ⁽¹⁾
September 30, 2003

			Apartment Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000’s)
					Q3 03		Q3 02		% Change			Q3 03			Q3 02			% Change			Q3 03		Q3 02		% Change
Northeast
	Fairfield-New Haven, CT			2,170	$	1,590	$	1,661		(4.3	%)		90.8	%		92.0	%		(1.2	%)	$	9,386	$	9,932		(5.5	%)
	Boston, MA			1,479		1,640		1,782		(8.0	%)		93.8	%		92.2	%		1.6	%		6,817		7,282		(6.4	%)
	New York, NY			1,234		1,943		1,980		(1.9	%)		93.3	%		93.6	%		(0.3	%)		6,710		6,859		(2.2	%)
	Northern New Jersey			1,043		2,267		2,387		(5.0	%)		90.0	%		90.0	%		0.0	%		6,382		6,719		(5.0	%)
	Long Island, NY			915		2,206		2,135		3.3	%		97.2	%		98.7	%		(1.5	%)		5,888		5,783		1.8	%
	Central New Jersey			718		1,406		1,457		(3.5	%)		92.5	%		92.5	%		0.0	%		2,794		2,896		(3.5	%)
	Northeast Average			7,559		1,806		1,873		(3.6	%)		92.7	%		92.9	%		(0.2	%)		37,977		39,471		(3.8	%)
Mid-Atlantic
	Washington, DC			3,630		1,366		1,391		(1.8	%)		94.3	%		94.6	%		(0.3	%)		14,034		14,330		(2.1	%)
	Baltimore, MD			1,054		1,140		1,105		3.2	%		96.9	%		96.0	%		0.9	%		3,494		3,355		4.1	%
	Mid-Atlantic Average			4,684		1,316		1,327		(0.8	%)		94.8	%		94.9	%		(0.1	%)		17,528		17,685		(0.9	%)
Midwest
	Chicago, IL			1,296		1,144		1,180		(3.1	%)		91.0	%		92.6	%		(1.6	%)		4,048		4,249		(4.7	%)
	Midwest Average			1,296		1,144		1,180		(3.1	%)		91.0	%		92.6	%		(1.6	%)		4,048		4,249		(4.7	%)
Pacific Northwest
	Seattle, WA			2,436		1,015		1,047		(3.1	%)		93.0	%		94.0	%		(1.0	%)		6,899		7,193		(4.1	%)
	Pacific Northwest Average			2,436		1,015		1,047		(3.1	%)		93.0	%		94.0	%		(1.0	%)		6,899		7,193		(4.1	%)
Northern California
	San Jose, CA			4,808		1,412		1,543		(8.5	%)		95.4	%		93.9	%		1.5	%		19,421		20,877		(7.0	%)
	Oakland-East Bay, CA			2,090		1,230		1,291		(4.7	%)		95.3	%		94.5	%		0.8	%		7,349		7,646		(3.9	%)
	San Francisco, CA			1,765		1,530		1,622		(5.7	%)		94.5	%		92.8	%		1.7	%		7,656		7,975		(4.0	%)
	Northern California Average			8,663		1,392		1,498		(7.1	%)		95.2	%		93.8	%		1.4	%		34,426		36,498		(5.7	%)
Southern California
	Orange County, CA			1,350		1,207		1,182		2.1	%		95.6	%		96.0	%		(0.4	%)		4,675		4,599		1.7	%
	San Diego, CA			940		1,274		1,233		3.3	%		96.1	%		97.5	%		(1.4	%)		3,452		3,386		1.9	%
	Los Angeles, CA			890		1,317		1,276		3.2	%		94.5	%		97.9	%		(3.4	%)		3,324		3,329		(0.2	%)
	Southern California Average			3,180		1,258		1,224		2.8	%		95.4	%		97.0	%		(1.6	%)		11,451		11,314		1.2	%
		Average/Total Established		27,818	$	1,432	$	1,484		(3.5	%)		94.0	%		94.0	%		0.0	%	$	112,329	$	116,410		(3.5	%)

(1)	Established Communities are communities with stabilized operating costs as of January 1, 2002 such that a comparison of 2002 to 2003 is meaningful.
(2)	Reflects the effect of concessions amortized over the lease term.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes — Established Communities (1)
September 30, 2003

			Apartment Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)
					Q303		Q203		% Change			Q303			Q203			% Change			Q303		Q203		% Change
Northeast
	Fairfield-New Haven, CT			2,170	$	1,590	$	1,612		(1.4	%)		90.8	%		93.1	%		(2.3	%)	$	9,386	$	9,740		(3.6	%)
	Boston, MA			1,479		1,640		1,689		(2.9	%)		93.8	%		91.1	%		2.7	%		6,817		6,827		(0.1	%)
	New York, NY			1,234		1,943		1,943		0.0	%		93.3	%		94.6	%		(1.3	%)		6,710		6,808		(1.4	%)
	Northern New Jersey			1,043		2,267		2,228		1.8	%		90.0	%		91.8	%		(1.8	%)		6,382		6,389		(0.1	%)
	Long Island, NY			915		2,206		2,176		1.4	%		97.2	%		98.5	%		(1.3	%)		5,888		5,882		0.1	%
	Central New Jersey			718		1,406		1,409		(0.2	%)		92.5	%		89.9	%		2.6	%		2,794		2,727		2.5	%
	Northeast Average			7,559		1,806		1,814		(0.4	%)		92.7	%		93.3	%		(0.6	%)		37,977		38,373		(1.0	%)
Mid-Atlantic
	Washington, DC			3,630		1,366		1,373		(0.5	%)		94.3	%		92.8	%		1.5	%		14,034		13,871		1.2	%
	Baltimore, MD			1,054		1,140		1,143		(0.3	%)		96.9	%		95.4	%		1.5	%		3,494		3,448		1.3	%
	Mid-Atlantic Average			4,684		1,316		1,321		(0.4	%)		94.8	%		93.3	%		1.5	%		17,528		17,319		1.2	%
Midwest
	Chicago, IL			1,296		1,144		1,149		(0.4	%)		91.0	%		89.8	%		1.2	%		4,048		4,013		0.9	%
	Midwest Average			1,296		1,144		1,149		(0.4	%)		91.0	%		89.8	%		1.2	%		4,048		4,013		0.9	%
Pacific Northwest
	Seattle, WA			2,436		1,015		1,017		(0.2	%)		93.0	%		91.1	%		1.9	%		6,899		6,773		1.9	%
	Pacific Northwest Average			2,436		1,015		1,017		(0.2	%)		93.0	%		91.1	%		1.9	%		6,899		6,773		1.9	%
Northern California
	San Jose, CA			4,808		1,412		1,459		(3.2	%)		95.4	%		94.8	%		0.6	%		19,421		19,949		(2.6	%)
	Oakland-East Bay, CA			2,090		1,230		1,250		(1.6	%)		95.3	%		95.6	%		(0.3	%)		7,349		7,488		(1.9	%)
	San Francisco, CA			1,765		1,530		1,558		(1.8	%)		94.5	%		94.1	%		0.4	%		7,656		7,763		(1.4	%)
	Northern California Average			8,663		1,392		1,428		(2.5	%)		95.2	%		94.8	%		0.4	%		34,426		35,200		(2.2	%)
Southern California
	Orange County, CA			1,350		1,207		1,207		0.0	%		95.6	%		94.5	%		1.1	%		4,675		4,620		1.2	%
	San Diego, CA			940		1,274		1,263		0.9	%		96.1	%		93.1	%		3.0	%		3,452		3,317		4.1	%
	Los Angeles, CA			890		1,317		1,322		(0.4	%)		94.5	%		96.1	%		(1.6	%)		3,324		3,392		(2.0	%)
	Southern California Average			3,180		1,258		1,256		0.2	%		95.4	%		94.5	%		0.9	%		11,451		11,329		1.1	%
		Average/Total Established		27,818	$	1,432	$	1,446		(1.0	%)		94.0	%		93.6	%		0.4	%	$	112,329	$	113,007		(0.6	%)

(1)	Established Communities are communities with stabilized operating costs as of January 1, 2002 such that a comparison of 2002 to 2003 is meaningful.
(2)	Reflects the effect of concessions amortized over the lease term.

Attachment 6

AvalonBay Communities, Inc.
Year to Date Revenue and Occupancy Changes — Established Communities (1)
September 30, 2003

			Apartment Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)
					YTD 03		YTD 02		% Change			YTD 03			YTD 02			% Change			YTD 03		YTD 02		% Change
Northeast
	Fairfield-New Haven, CT			2,170	$	1,602	$	1,648		(2.8	%)		91.2	%		93.6	%		(2.4	%)	$	28,543	$	30,102		(5.2	%)
	Boston, MA			1,479		1,683		1,790		(6.0	%)		91.9	%		93.2	%		(1.3	%)		20,582		22,196		(7.3	%)
	New York, NY			1,234		1,943		1,991		(2.4	%)		94.2	%		91.8	%		2.4	%		20,323		20,325		0.0	%
	Northern New Jersey			1,043		2,237		2,514		(11.0	%)		90.4	%		87.6	%		2.8	%		18,984		20,684		(8.2	%)
	Long Island, NY			915		2,181		2,120		2.9	%		98.2	%		98.3	%		(0.1	%)		17,642		17,162		2.8	%
	Central New Jersey			718		1,408		1,459		(3.5	%)		90.9	%		92.2	%		(1.3	%)		8,267		8,686		(4.8	%)
	Northeast Average			7,559		1,813		1,889		(4.0	%)		92.7	%		92.7	%		0.0	%		114,341		119,155		(4.0	%)
Mid-Atlantic
	Washington, DC			3,630		1,368		1,412		(3.1	%)		93.1	%		93.8	%		(0.7	%)		41,626		43,279		(3.8	%)
	Baltimore, MD			1,054		1,135		1,096		3.6	%		95.8	%		96.1	%		(0.3	%)		10,310		9,980		3.3	%
	Mid-Atlantic Average			4,684		1,316		1,341		(1.9	%)		93.6	%		94.2	%		(0.6	%)		51,936		53,259		(2.5	%)
Midwest
	Chicago, IL			1,296		1,154		1,198		(3.7	%)		90.3	%		93.2	%		(2.9	%)		12,160		13,018		(6.6	%)
	Midwest Average			1,296		1,154		1,198		(3.7	%)		90.3	%		93.2	%		(2.9	%)		12,160		13,018		(6.6	%)
Pacific Northwest
	Seattle, WA			2,436		1,019		1,082		(5.8	%)		92.0	%		93.6	%		(1.6	%)		20,555		22,200		(7.4	%)
	Pacific Northwest Average			2,436		1,019		1,082		(5.8	%)		92.0	%		93.6	%		(1.6	%)		20,555		22,200		(7.4	%)
Northern California
	San Jose, CA			4,808		1,452		1,628		(10.8	%)		95.1	%		93.2	%		1.9	%		59,795		65,660		(8.9	%)
	Oakland-East Bay, CA			2,090		1,248		1,352		(7.7	%)		95.5	%		93.8	%		1.7	%		22,410		23,846		(6.0	%)
	San Francisco, CA			1,765		1,553		1,666		(6.8	%)		94.5	%		94.5	%		0.0	%		23,308		25,013		(6.8	%)
	Northern California Average			8,663		1,423		1,570		(9.4	%)		95.1	%		93.6	%		1.5	%		105,513		114,519		(7.9	%)
Southern California
	Orange County, CA			1,350		1,204		1,185		1.6	%		95.4	%		95.4	%		0.0	%		13,953		13,740		1.6	%
	San Diego, CA			940		1,265		1,234		2.5	%		94.8	%		95.7	%		(0.9	%)		10,151		9,994		1.6	%
	Los Angeles, CA			890		1,316		1,278		3.0	%		95.4	%		94.7	%		0.7	%		10,059		9,697		3.7	%
	Southern California Average			3,180		1,253		1,225		2.3	%		95.2	%		95.3	%		(0.1	%)		34,163		33,431		2.2	%
		Average/Total Established		27,818	$	1,444	$	1,520		(5.0	%)		93.7	%		93.5	%		0.2	%	$	338,668	$	355,582		(4.8	%)

(1)	Established Communities are communities with stabilized operating costs as of January 1, 2002 such that a comparison of 2002 to 2003 is meaningful.
(2)	Reflects the effect of concessions amortized over the lease term.

Attachment 7

AvalonBay Communities, Inc.
Summary of Development, Redevelopment and Presale Activity as of September 30, 2003

		Number		Number		Total
		of		of		Capital Cost (1)
		Communities		Homes		(millions)
Portfolio Additions:
2002 Annual Completions
	Development		10		2,521	$	466.6
	Redevelopment (2)		2		—		44.2
	Presale Communities (3)		1		306		69.9
	Total Additions		13		2,827	$	580.7
2003 Annual Completions (4)
	Development		5		1,442	$	274.6
	Redevelopment (2)		1		—		22.2
	Total Additions		6		1,442	$	296.8
Pipeline Activity:  (4)
Currently Under Construction
	Development		10		3,250	$	552.5
	Redevelopment (2)		2		—		30.3
	Subtotal		12		3,250	$	582.8
Planning
	Development Rights		41		10,326	$	2,240.0
	Total Pipeline		53		13,576	$	2,822.8

(1)	See Attachment #13 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.
(2)	Represents only cost of redevelopment activity, does not include original acquisition cost or number of apartment homes acquired.
(3)	A presale community is a community which, before or while under construction, the company contracts with an unrelated third party to purchase upon construction completion. In some cases, an additional condition to closing the presale acquisition is that the community has achieved stabilized or some other level of occupancy.
(4)	Information represents projections and estimates.
	This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data charts for the third quarter of 2003.

Attachment 8

AvalonBay Communities, Inc.
Development Communities as of September 30, 2003

									Schedule
						Total											Avg
				# of		Capital											Rent
				Apt		Cost (1)					Initial				Stabilized		Per		% Comp			% Leased			% Occ
				Homes		(millions)			Start		Occupancy		Complete		Ops (1)		Home (1)		(2)			(3)			(4) (5)
																	Inclusive of
																	Concessions
																	See Attachment #13
Under Construction:
	1. Avalon Glendale				223	$	40.4			Q1 2002		Q2 2003		Q1 2004		Q3 2004	$	1,990		55.2	%		41.7	%		39.5	%
			Glendale, CA
	2. Avalon at Grosvenor Station (8) (9)				497	$	82.3			Q1 2002		Q3 2003		Q4 2004		Q2 2005	$	1,540		15.9	%		31.8	%		18.3	%
			North Bethesda, MD
	3. Avalon at Newton Highlands (8)				294	$	58.7			Q2 2002		Q2 2003		Q1 2004		Q3 2004	$	2,280		64.6	%		53.7	%		43.2	%
			Newton, MA
	4. Avalon at Glen Cove South				256	$	62.6			Q3 2002		Q1 2004		Q2 2004		Q4 2004	$	2,715		N/A			N/A			N/A
			Glen Cove, NY
	5. Avalon at Steven’s Pond				326	$	55.4			Q3 2002		Q1 2003		Q2 2004		Q4 2004	$	1,745		42.9	%		38.7	%		31.9	%
			Saugus, MA
	6. Avalon Darien				189	$	43.6			Q4 2002		Q2 2003		Q3 2004		Q1 2005	$	2,385		28.0	%		42.9	%		25.4	%
			Darien, CT
	7. Avalon at Traville (10)				520	$	71.5			Q4 2002		Q3 2003		Q1 2005		Q3 2005	$	1,475		14.4	%		17.5	%		10.4	%
			North Potomac, MD
	8. Avalon Run East II				312	$	49.3			Q2 2003		Q3 2004		Q1 2005		Q3 2005	$	1,690		N/A			N/A			N/A
			Lawrenceville, NJ
	9. Avalon at Crane Brook				387	$	56.2			Q3 2003		Q3 2004		Q2 2005		Q4 2005	$	1,590		N/A			N/A			N/A
			Danvers & Peabody, MA
	10. Avalon Milford I				246	$	32.5			Q3 2003		Q3 2004		Q1 2005		Q3 2005	$	1,420		N/A			N/A			N/A
			Milford, CT
			Subtotal/Weighted Average		3,250	$	552.5										$	1,800
Completed this Quarter:
	1. Avalon at Rock Spring (6)				386	$	46.0			Q4 2001		Q4 2002		Q3 2003		Q1 2004	$	1,620		100.0	%		81.9	%		79.0	%
			North Bethesda, MD
	2. Avalon at Gallery Place I (7)				203	$	49.0			Q4 2001		Q2 2003		Q3 2003		Q2 2004	$	2,050		100.0	%		67.0	%		62.1	%
			Washington, DC
			Subtotal/Weighted Average		589	$	95.0										$	1,770
			Total/Weighted Average		3,839	$	647.5										$	1,795
		Weighted Average Projected NOI as a % of Total Capital Cost (1)					8.6	%	Inclusive of Concessions - See Attachment #13

(1)	See Attachment #13 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.
(2)	Includes apartment homes for which construction has been completed and accepted by management as of October 10, 2003.
(3)	Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of October 17, 2003.
(4)	Physical occupancy based on apartment homes occupied as of October 17, 2003.
(5)	Q3 2003 Net Operating Income/(Deficit) for communities under construction and communities completed during this quarter was $0.5 million (excludes Net Operating Income for communities completed in previous quarters but not yet stabilized). See Attachment #13.
(6)	The community is owned by a limited liability company or a limited partnership in which the Company is a majority partner. The costs reflected above exclude construction and management fees due to AvalonBay. This community is consolidated for financial reporting purposes.
(7)	The Total Capital Cost for this community excludes approximately $4 million of proceeds that the Company expects to receive upon the sale of transferable development rights associated with the development of the community; however, there can be no assurance that the projected amount of proceeds will be achieved.
(8)	The community is owned by a DownREIT partnership in which a wholly-owned subsidiary of AvalonBay is the general partner with a majority interest. This community is consolidated for financial reporting purposes.
(9)	For purposes of calculating Projected NOI as a % of Total Capital Cost for this community and its related impact on the Weighted Average calculation, the Company has included in Total Capital Cost $1.9 million, the present value of a projected residual land payment that is a priority distribution upon a sale or refinancing transaction in the future.
(10)	Construction started at Avalon Traville Phase II in Q203. It is combined above with Phase I for reporting purposes.
	This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data charts for the third quarter of 2003.

Attachment 9

AvalonBay Communities, Inc.
Redevelopment Communities (1) as of September 30, 2003

						Cost (millions)					Schedule										Number of Homes
																			Avg
				# of				Total											Rent				Out of
				Apt		Acquisition		Capital									Restabilized		Per		Completed		Service
				Homes		Cost		Cost (2)			Acquisition		Start		Complete		Ops (2)		Home (2)		to date		@ 9/30/03
																			Inclusive of
																			Concessions
																			See Attachment #13
Under Redevelopment:
	1. Avalon at Foxhall (3)				308	$	35.7	$	43.8			Q3 1994		Q4 2002		Q2 2004		Q4 2004	$	1,895		219		45
			Washington, DC
	2. Avalon at Prudential Center (4) Boston, MA				781	$	133.9	$	156.1			Q3 1998		Q4 2000		Q4 2003		Q2 2004	$	2,655		459		31
			Total/Weighted Average		1,089	$	169.6	$	199.9										$	2,440		678		76
		Weighted Average Projected NOI as a % of Total Capital Cost (2)							9.6	%	Inclusive of Concessions - See Attachment #13

(1)	Redevelopment Communities are communities acquired for which redevelopment costs are expected to exceed 10% of the original acquisition cost or $5,000,000.
(2)	Inclusive of acquisition cost. See Attachment #13 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.
(3)	The Acquisition Cost of $35.7 million is comprised of the initial acquisition cost of $33.8 million plus capital expenditures of $1.9 million that were made following the acquisition and were unrelated to redevelopment costs. This asset was formerly known as 4100 Massachusetts Avenue.
(4)	The Acquisition Cost of $133.9 million is comprised of the initial acquisition cost of $130 million plus capital expenditures of $3.9 million that were made following the acquisition and were unrelated to redevelopment costs. In Q2 2003, the scope of this redevelopment was changed to include a roof replacement and other apartment renovations, increasing the redevelopment budget to $22.2 million from $20.6 million.
	This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data charts for the third quarter of 2003.

Attachment 10

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of September 30, 2003

DEVELOPMENT (2)
		Apt Homes		Development		Cost of Homes				Construction in
		Completed &		Community		Completed &		Remaining to		Progress at
		Occupied		Investments (3)		Occupied (4)		Invest (5)		Period End (6)
Total - 2001 Actual			1,582	$	404,586,134	$	258,593,463	$	431,505,675	$	415,617,828
2002 Actual:
	Quarter 1		565	$	119,213,893	$	102,870,891	$	369,248,732	$	407,887,099
	Quarter 2		798		119,760,121		154,985,308		367,499,307		350,311,849
	Quarter 3		692		94,377,426		133,106,593		404,565,295		313,104,399
	Quarter 4		424		84,212,982		78,307,747		254,198,266		295,107,369
Total - 2002 Actual			2,479	$	417,564,422	$	469,270,539
2003:
	Quarter 1 (Actual)		343	$	47,610,401	$	66,767,096	$	205,448,920	$	304,444,246
	Quarter 2 (Actual)		380		96,480,917		75,410,129		307,768,115		270,813,025
	Quarter 3 (Actual)		633		78,516,195		120,057,691		304,758,336		266,114,151
	Quarter 4 (Projected)		449		101,342,833		85,505,734		203,415,501		208,968,709
Total - 2003 Projected			1,805	$	323,950,346	$	347,740,650

REDEVELOPMENT
		Avg Homes		Redevelopment				Reconstruction in
		Out		Community		Remaining to		Progress at
		of Service		Investments (3)		Invest (5)		Period End (6)
Total - 2001 Actual				$	26,832,005	$	10,190,945	$	14,000,460
2002 Actual:
	Quarter 1		34	$	3,426,482	$	7,568,111	$	6,500,000
	Quarter 2		31		2,102,054		5,083,139		14,002,156
	Quarter 3		26		2,004,800		10,406,023		13,778,043
	Quarter 4		44		3,078,838		7,655,832		17,317,952
Total - 2002				$	10,612,174
2003:
	Quarter 1 (Actual)		68	$	1,798,678	$	5,857,154	$	10,541,752
	Quarter 2 (Actual)		75		1,535,351		5,738,979		15,074,513
	Quarter 3 (Actual)		83		3,055,001		3,179,103		16,888,849
	Quarter 4 (Projected)		55		2,635,972		543,131		6,013,333
Total - 2003 Projected				$	9,025,002

(1)	Data is presented for all Historical and Current Development Communities currently under construction; all Historical and Current Redevelopment Communities under reconstruction; and those communities for which construction or reconstruction is expected to begin within the next 90 days. Does not include data for Presale Communities.
(2)	Projected Periods include data for consolidated joint ventures at 100%. The offset for joint venture partners’ participation is reflected in the minority interest line items of the Financial Statements.
(3)	Represents Total Capital Cost incurred or expected to be incurred during the quarter for (i) Current Development/Redevelopment Communities under construction or reconstruction during the quarter and (ii) those for which construction or reconstruction is expected to begin within the next 90 days.
(4)	Represents Total Capital Cost incurred in all quarters of apartment homes completed and occupied during the quarter. Calculated by dividing Total Capital Cost for each Development Community by number of homes for the community, multiplied by the number of homes completed and occupied during the quarter.
(5)	Represents projected Total Capital Cost remaining to invest on (i) Current Development/Redevelopment Communities under construction or reconstruction during the quarter and (ii) those for which construction or reconstruction is expected to begin within the next 90 days. Remaining to invest for Q303 includes $97.5 million attributed to three anticipated Q403 development starts, one of which is to be developed under a joint venture structure with third-party financing. AvalonBay’s portion of the Total Capital Cost for this joint venture is projected to be $30.0 million including community-based debt.
(6)	Represents period end balance of construction or reconstruction costs.

This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data charts for the third quarter of 2003.

Attachment 11

AvalonBay Communities, Inc.
Future Development as of September 30, 2003

DEVELOPMENT RIGHTS
						Estimated		Total
						Number		Capital Cost (1)
Location of Development Right						of Homes		(millions)
	1.	Coram, NY Phase I		(2	)		298		$49
	2.	Plymouth, MA Phase I		(2	)		98		21
	3.	New York, NY Phase I	(2)	(3	)(4)		361		148
	4.	Kirkland, WA		(2	)		211		50
	5.	Bedford, MA		(2	)		139		21
	6.	Danbury, CT		(2	)		234		36
	7.	Orange, CT		(2	)		168		22
	8.	Seattle, WA		(2	)		194		50
	9.	Los Angeles, CA		(2	)		309		63
	10.	Long Island City, NY Phase II and III					552		162
	11.	Plymouth, MA Phase II					72		13
	12.	San Francisco, CA					313		100
	13.	Stratford, CT					146		23
	14.	Camarillo, CA		(2	)		249		43
	15.	Bellevue, WA					368		71
	16.	Newton, MA					240		60
	17.	Hingham, MA					236		44
	18.	Quincy, MA		(2	)		148		24
	19.	Andover, MA					115		21
	20.	Milford, CT					284		41
	21.	Dublin, CA Phase I					305		72
	22.	Cohasset, MA					200		38
	23.	New York, NY Phase II					205		88
	24.	Los Angeles, CA					123		36
	25.	Glen Cove, NY					111		31
	26.	New Rochelle, NY Phase II and III					588		144
	27.	Greenburgh, NY Phase II					766		120
	28.	Encino, CA					146		46
	29.	Coram, NY Phase II		(2	)		152		26
	30.	Wilton, CT					100		24
	31.	Dublin, CA Phase II					200		47
	32.	Sharon, MA					190		31
	33.	Norwalk, CT					312		63
	34.	Danvers, MA					476		85
	35.	College Park, MD					320		44
	36.	Oyster Bay, NY					273		69
	37.	Yaphank, NY					270		41
	38.	New York, NY Phase III					103		46
	39.	West Haven, CT					170		23
	40.	Dublin, CA Phase III					205		49
	41.	Camarillo, CA					376		55
		Totals					10,326	$	2,240

(1)	See Attachment #13 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.
(2)	Company owns land, but construction has not yet begun.
(3)	Total Capital Cost for this community includes costs associated with the construction of 89,000 square feet of retail space and 30,000 square feet for a community facility.
(4)	This community will be developed under a joint venture structure with third party financing. AvalonBay’s portion of the Total Capital Cost for this joint venture is projected to be $30.0 million including community-based debt.

This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data charts for the third quarter of 2003.

Attachment 12

AvalonBay Communities, Inc.
Summary of Disposition Activity as of September 30, 2003

	Weighted						Accumulated				Weighted			Weighted
Number of	Average		Gross Sales				Depreciation		Economic		Average Initial			Average
Communities Sold	Holding Period		Price		GAAP Gain		and Other		Gain (1)		Year Mkt. Cap Rate (1)			Unleveraged IRR (1)
1998:
9 Communities			$	170,312,000	$	25,270,000	$	23,438,000	$	1,832,000		7.5	%		11.8	%
1999:
16 Communities			$	316,512,000	$	47,093,000	$	27,150,000	$	19,943,000		8.3	%		10.0	%
2000:
8 Communities			$	160,085,000	$	40,779,000	$	6,262,000	$	34,517,000		7.9	%		21.3	%
2001:
7 Communities			$	241,130,000	$	62,852,000	$	21,623,000	$	41,229,000		8.0	%		14.0	%
2002:
1 Community			$	80,100,000	$	48,893,000	$	7,462,000	$	41,431,000		5.4	%		22.1	%
YTD 2003:
9 Communities (2)			$	294,875,000	$	105,606,000	$	37,053,000	$	68,553,000		6.6	%		13.6	%
1998-3Q 2003 Total		4.9	$	1,263,014,000	$	330,493,000	$	122,988,000	$	207,505,000		7.5	%		14.0	%

(1)	See Attachment #13 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.
(2)	2003 Information includes the Company's 50% interest in the gross sales price, GAAP gain and Economic Gain resulting from the sale of the Falkland Chase community, as well as the GAAP gain and Economic Gain resulting from the wind-up of the Company's investment in Falkland Partners, LLC.

Attachment 13

AvalonBay Communities, Inc.
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms

This release, including its attachments, contains certain non-GAAP financial measures and other terms. The definition and calculation of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to below should not be considered an alternative to net income as an indication of our performance. In addition, these non-GAAP financial measures do not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered as an alternative measure of liquidity or as indicative of cash available to fund cash needs.

FFO is determined based on a definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is calculated by the Company as net income or loss computed in accordance with GAAP, adjusted for gains or losses on sales of property, extraordinary gains or losses (as defined by GAAP) and depreciation of real estate assets, including adjustments for unconsolidated partnerships and joint ventures. Management generally considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses related to dispositions of property and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. A reconciliation of FFO to net income is as follows (dollars in thousands):

	Q3			Q3			YTD			YTD
	2003			2002			2003			2002
Net income	$	57,387		$	28,711		$	171,242		$	106,776
Dividends attributable to preferred stock		(2,175	)		(4,026	)		(8,569	)		(14,087	)
Depreciation — real estate assets, including discontinued operations		37,443			36,393			111,932			104,147
Joint venture adjustments		(23,206	)		326			(22,626	)		965
Minority interest, including discontinued operations		285			406			1,047			1,216
Gain on sale of communities		(13,575	)		—			(82,158	)		—
FFO attributable to common stockholders	$	56,159		$	61,810		$	170,868		$	199,017
Average shares outstanding — diluted		70,531,920			71,049,699			69,524,228			70,944,041
EPS — diluted	$	0.79		$	0.35		$	2.35		$	1.32
FFO per common share — diluted	$	0.80		$	0.87		$	2.46		$	2.81

Projected FFO, as provided within this release in the Company’s outlook for 2003, is calculated on a consistent basis as historical FFO, and is therefore considered to be an appropriate supplemental measure to projected net income of projected operating performance. A reconciliation of the range provided for Projected FFO per share (diluted) for the fourth quarter and full year 2003 to the range provided for projected EPS (diluted) is as follows:

	Low			High
	range			range
Projected EPS (diluted)- Q4 03	$	1.35		$	1.38
Projected depreciation (real estate related)		0.50			0.55
Projected gain on sale of communities		(1.06	)		(1.11	)
Projected FFO per share (diluted) — Q4 03	$	0.79		$	0.82
Projected EPS (diluted) — Full Year 2003	$	3.72		$	3.75
Projected depreciation (real estate related)		2.11			2.15
Projected gain on sale of communities		(2.58	)		(2.62	)
Projected FFO per share (diluted) — Full Year 2003	$	3.25		$	3.28

Economic Gain is calculated by the Company as the gain on sale in accordance with GAAP, less accumulated depreciation through the date of sale and any other non-cash adjustments that may be required under GAAP

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

accounting. Management generally considers Economic Gain to be an appropriate supplemental measure to gain on sale in accordance with GAAP because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold community. The Economic Gain for each of the communities presented is estimated based on their respective final settlement statements. A reconciliation of Economic Gain to gain on sale in accordance with GAAP is presented on Attachment 12.

Initial Year Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months following the date of the buyer’s valuation, less estimates for non-routine allowance of approximately $225-$250 per apartment home, divided by the gross sales price for the community. For this purpose, management’s projection of stabilized operating expenses for the community includes a management fee of approximately 3.0%-3.5%. The Initial Year Market Cap Rate, which may be determined in a different manner by others, is a measure frequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for the property. Buyers may assign different Initial Year Market Cap Rates to different communities when determining the appropriate value because they (i) may project different rates of change in operating expenses, including capital expenditure estimates and (ii) may project different rates of change in future rental revenue due to different estimates for changes in rent and occupancy levels. The weighted average Initial Year Market Cap Rate is weighted based on the gross sales price of each community.

Established Communities are identified by the Company as communities where a comparison of operating results from the prior year to the current year is meaningful, as these communities were owned and had Stabilized Operations, as defined below, as of the beginning of the prior year. Therefore, for 2003, Established Communities are communities that have Stabilized Operations as of January 1, 2002 and are not conducting or planning to conduct substantial redevelopment activities within the current year. Established Communities do not include communities that are currently held for sale or planned for disposition during the current year.

NOI is defined by the Company as total revenue less direct property operating expenses (including property taxes), and excludes corporate-level property management and other indirect operating expenses, interest income and expense, general and administrative expense, joint venture income, minority interest and venture partner interest in profit-sharing, depreciation expense, gain on sale of communities, impairment losses and income from discontinued operations. The Company considers NOI to be an appropriate supplemental measure to net income of operating performance because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of any corporate-level property management overhead or general and administrative costs. This is more reflective of the operating performance of a community, 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.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

A reconciliation of NOI (from continuing operations) to net income, as well as a breakdown of NOI by operating segment, is as follows (dollars in thousands):

			Q3			Q3			Q2			YTD			YTD
			2003			2002			2003			2003			2002
Net income			$	57,387		$	28,711		$	76,468		$	171,242		$	106,776
Property management and other indirect operating expenses				7,577			6,906			7,056			22,630			22,498
Interest income				(852	)		(909	)		(880	)		(2,634	)		(3,013	)
Interest expense				33,432			31,386			34,249			101,826			86,614
General and administrative expense				3,382			2,966			3,623			10,636			10,009
Joint venture income, minority interest and venture partner interest in profit-sharing				(23,266	)		571			27			(23,170	)		439
Depreciation expense				37,996			34,723			37,736			112,898			98,618
Gain on sale of communities				(13,575	)		—			(54,511	)		(82,158	)		—
Discontinued operations				(2,278	)		(5,261	)		(2,984	)		(10,001	)		(16,169	)
NOI from continuing operations			$	99,803		$	99,093		$	100,784		$	301,269		$	305,772
Established:
	Northeast		$	24,361		$	26,652		$	25,935		$	75,494		$	83,419
	Mid-Atlantic			12,160			12,577			12,105			36,273			38,447
	Midwest			2,028			2,612			2,248			6,372			7,872
	Pacific NW			4,125			4,480			4,107			12,623			14,457
	No. California			23,724			26,082			25,134			75,104			84,915
	So. California			7,758			7,881			7,732			23,535			23,837
		Total Established		74,156			80,284			77,261			229,401			252,947
Other Stabilized				14,184			11,138			13,433			40,761			33,067
Development/Redevelopment				11,284			7,415			10,013			30,471			17,740
Non-Allocated				179			256			77			636			2,018
NOI from continuing operations			$	99,803		$	99,093		$	100,784		$	301,269		$	305,772

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold or held for sale as of September 30, 2003). A reconciliation of NOI for communities sold or held for sale to net income for these communities for the third quarter and year-to-date 2003 is as follows (dollars in thousands):

		Q3		YTD
		2003		2003
NOI from assets held for sale		$	2,344	$	6,862
NOI from assets sold			158		6,127
	NOI from discontinued operations	$	2,502	$	12,989
Income from discontinued operations		$	2,278	$	10,001
Interest expense, net			224		1,040
Minority interest expense			—		389
Depreciation expense			—		1,559
NOI from discontinued operations		$	2,502	$	12,989

Projected NOI, as used within this release for certain Development and Redevelopment Communities and in calculating the Initial Year Market Cap Rate for dispositions, represents management’s estimate, as of the date of this release, of projected stabilized rental revenue minus projected stabilized operating expenses. For Development and Redevelopment Communities, Projected NOI is calculated based on the first year of Stabilized Operations, as defined below, following the completion of construction. In calculating the Initial Year Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s estimate of projected gross potential (based on leased rents for occupied homes and Market Rents, as defined below, for vacant homes) minus projected economic vacancy and adjusted for concessions. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation or amortization, or any allocation of corporate-level property management overhead or general and administrative costs. The weighted average Projected NOI as a percentage of Total Capital Cost is weighted based on the Total Capital Cost of each community.

In this release the Company has not given a projection of NOI on a company-wide basis.   Management believes that Projected NOI of the development and redevelopment communities, on an aggregated weighted average basis, assists investors in understanding management’s estimate of the likely impact on operations of the development and redevelopment communities (before allocation of any corporate-level property management overhead,  general and administrative costs or interest expense) when they are complete and achieve stabilized occupancy.    Given the different dates and fiscal years at which stabilization is projected for these communities, the projected allocation of corporate-level property management overhead,  general and administrative costs and interest expense to communities under development or redevelopment is complex, impractical to develop, and of uncertain meaningfulness.  Projected NOI of these communities is not a projection of the Company’s financial performance or cash flow.  There can be no assurance that the communities under development or redevelopment will achieve the Projected NOI used in the calculation of weighted average Projected NOI to total capital cost.

Market Rents as reported by the Company are based on the current market rates set by the managers of the Company’s communities based on their experience in renting their communities’ apartments and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Economic Occupancy is defined as total possible revenue less vacancy loss as a percentage of total possible revenue. Total possible revenue is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue.

Rental Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to rental revenue in conformity with GAAP in helping investors to evaluate the impact of both current and historical concessions on GAAP based rental revenue and to more readily enable comparisons to revenue as reported by other companies. In addition, Rental Revenue with Concessions on a Cash Basis allows an investor to understand the historical trend in cash concessions, which is an indicator of current rental market conditions. A reconciliation of

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

rental revenue from Established Communities in conformity with GAAP to Rental Revenue with Concessions on a Cash Basis is as follows (dollars in thousands):

	Established Communities
	Q3			Q3			Q2
	2003			2002			2003
Rental revenue (GAAP basis)	$	112,329		$	116,410		$	113,007
Concessions amortized		3,358			1,665			2,880
Concessions granted		(4,737	)		(2,927	)		(3,304	)
Rental revenue (cash basis)	$	110,950		$	115,148		$	112,583
Q3 03% change — GAAP revenue					(3.5	%)		(0.6	%)
Q3 03% change — cash revenue					(3.6	%)		(1.5	%)

Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment Community, or Development Right, including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, all as determined in accordance with GAAP. With respect to communities where development or redevelopment was completed in a prior or the current period, Total Capital Cost reflects the actual cost incurred, plus any contingency estimate made by management.

Leverage is calculated by the Company as total debt as a percentage of total market capitalization. Market capitalization represents the aggregate of the market value of the Company’s common stock, the market value of the Company’s operating partnership units outstanding (based on the market value of the Company’s common stock), the liquidation preference of the Company’s preferred stock and the outstanding principal balance of the Company’s debt. Management believes that Leverage can be one useful measure of a real estate operating company’s long term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the company’s common stock trades. Changes in Leverage also can influence changes in per share results. A calculation of Leverage as of September 30, 2003 is as follows (dollars in thousands):

Total debt	$	2,449,495
Common stock		3,308,539
Preferred stock		100,000
Operating partnership units		36,725
Total debt		2,449,495
Total capitalization		5,894,759
Debt as % of capitalization		41.6	%

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

Unencumbered NOI is calculated by the Company as a measure of liquidity and represents Stabilized NOI generated by real estate assets unencumbered by outstanding secured debt as a percentage of total Stabilized NOI for the Company. In calculating Stabilized NOI, historical NOI is used for communities with Stabilized Operations, as defined below, and Projected NOI is used for Development and Redevelopment communities that do not have Stabilized Operations. Unencumbered NOI is used as a measure of protection for unsecured creditors of the Company. In addition, the Company believes that Unencumbered NOI can be one useful measure of an entity’s liquidity and balance sheet strength, and provides rating agencies and investors an additional means of comparing our liquidity to that of other companies. A calculation of Unencumbered NOI for the nine months ended September 30, 2003 is as follows (dollars in thousands):

NOI for Established Communities		$	229,401
NOI for Other Stabilized Communities			40,761
NOI for discontinued operations			12,989
Projected NOI for Development/Redevelopment Communities			30,374
	Total Stabilized NOI		313,525
Stabilized NOI on encumbered assets			63,069
	Stabilized NOI on unencumbered assets		250,456
Unencumbered NOI			80	%

Interest Coverage is calculated by the Company as EBITDA from continuing operations divided by the sum of interest expense and preferred dividends net of interest income. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our liquidity to that of other companies. EBITDA is defined by the Company as net income before interest income and expense, income taxes, depreciation and amortization. Under this definition, which complies with the rules and regulations of the Securities and Exchange Commission, EBITDA includes gains on sale of assets and gain on sale of partnership interests.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

Attachment 13 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the third quarter of 2003 are as follows (dollars in thousands):

Net income		$	57,387
Interest income			(852	)
Interest expense			33,432
Interest expense (discontinued operations)			224
Depreciation expense			37,996
EBITDA		$	128,187
EBITDA from continuing operations		$	112,110
EBITDA from discontinued operations			16,077
EBITDA		$	128,187
EBITDA from continuing operations		$	112,110
Interest expense			33,432
Interest income			(852	)
Dividends attributable to preferred stock			2,175
	Interest charges		34,755
Interest coverage			3.2

In the calculations of EBITDA above, EBITDA from continuing operations includes $23,448 representing gains related to the sale of the Falkland Chase community and investment wind-up. In addition, EBITDA from discontinued operations includes $13,575 in gain on sale of communities.

Non-Revenue Generating Capex represents capital expenditures that will not directly result in revenue earnings or expense savings.

Stabilized/Restabilized Operations is defined as the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Average Rent Per Home, as calculated for certain Development and Redevelopment Communities in lease-up, reflects (i) actual average leased rents for those apartments leased through the end of the quarter net of amortized concessions, (ii) estimated market rents net of comparable concessions for all unleased apartments and (iii) includes actual and estimated other rental revenue. For Development and Redevelopment Communities not yet in lease-up, Average Rent per Home reflects management’s projected rents, including concessions equal to one-half month rent.

Unleveraged IRR on sold communities refers to the internal rate of return calculated by the Company considering the timing and amounts of (i) total revenue during the period owned by the Company and (ii) the gross sales price net of selling costs, offset by (iii) the undepreciated capital cost of the communities at the time of sale and (iv) total direct operating expenses during the period owned by the Company. Each of the items (i), (ii), (iii) and (iv) are calculated in accordance with GAAP.

The calculation of Unleveraged IRR does not include an adjustment for the Company’s general and administrative expense, interest expense, or corporate-level property management and other indirect operating expenses. Therefore, Unleveraged IRR is not a substitute for net income as a measure of our performance. Management believes that the Unleveraged IRR achieved during the period a community is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development or redevelopment, management and sale of the community, before the impact of indirect expenses and Company overhead. The Unleveraged IRR achieved on the communities as cited in this release should not be viewed as an indication of the gross value created with respect to other communities owned by the Company, and the Company does not represent that it will achieve similar Unleveraged IRRs upon the disposition of other communities.

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved