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(Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended June 30, 2005 was $54,736,000, resulting in Earnings per Share - diluted (“EPS”) of $0.74, compared to $0.46 for the comparable period of 2004, a per share increase of 60.9%. For the six months ended June 30, 2005, EPS was $1.65 compared to $0.79 for the comparable period of 2004, a per share increase of 108.9%. These increases are primarily attributable to higher recognized gains on asset sales during 2005 as compared to 2004.

Funds from Operations attributable to common stockholders - diluted (“FFO”) for the quarter ended June 30, 2005 was $72,325,000, or $0.97 per share compared to $60,450,000, or $0.83 per share for the comparable period of 2004, a per share increase of 16.9%. FFO per share for the six months ended June 30, 2005 increased by 19.1% to $1.93 from $1.62 for the comparable period of 2004. These increases are primarily attributable to contributions from newly developed and redeveloped communities and improved community operating results, and were further affected by the following non-routine items during the second quarter of 2005:

•		Gains on the sale of two land parcels in the aggregate amount of $4,617,000 or $0.06 per share; partially offset by
•		Accrual of costs related to various litigation matters in the amount of $1,500,000 or $0.02 per share.

Operating Results for the Quarter Ended June 30, 2005 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $9,195,000, or 5.6% to $172,929,000. For Established Communities, rental revenue increased 2.7%, comprised of an increase in rental rates of 2.2% and an increase in Economic Occupancy of 0.5%. As a result, total revenue for Established Communities increased $3,094,000 to $118,432,000, and operating expenses for Established Communities increased $1,146,000 or 3.2% to $37,469,000. Accordingly, Net Operating Income (“NOI”) for Established Communities increased by $1,948,000 or 2.5%, to $80,963,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the second quarter of 2004 to the second quarter of 2005:

Sequential Operating Results for the Quarter Ended June 30, 2005 Compared to the Quarter Ended March 31, 2005

The following table reflects the sequential percentage changes in rental revenue, operating expenses and NOI for Established Communities from the first quarter to the second quarter of 2005:

Operating Results for the Six Months Ended June 30, 2005 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $19,733,000, or 6.1% to $342,931,000. For Established Communities, rental revenue increased 2.5%, comprised of an increase in rental rates of 1.6% and an increase in Economic Occupancy of 0.9%. As a result, total revenue for Established Communities increased $5,670,000 to $235,068,000, and operating expenses for Established Communities increased $981,000 or 1.3% to $74,211,000. Accordingly, NOI for Established Communities increased by $4,689,000 or 3.0%, to $160,857,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the six months ended June 30, 2005 as compared to the six months ended June 30, 2004:

YTD 2005 Compared to YTD 2004


	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		3.1	%		4.0	%		2.5	%		41.9	%
Mid-Atlantic		1.1	%		(0.1	%)		1.6	%		16.8	%
Midwest		3.3	%		(8.1	%)		11.4	%		2.3	%
Pacific NW		2.9	%		(4.7	%)		7.4	%		4.8	%
No. California		1.5	%		0.3	%		2.1	%		23.1	%
So. California		5.2	%		4.7	%		5.5	%		11.1	%

Total		2.5	%		1.3	%		3.0	%		100.0	%

(1)

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, averaged $1,550 per home for the Established Community portfolio as a whole in the second quarter of 2005, increasing 3.1% as compared to average Market Rents for the second quarter of 2004 and increasing 1.0% over average Market Rents for the first quarter of 2005.

Economic Occupancy was 95.7% during the second quarter of 2005, increasing 0.5% as compared to the second quarter of 2004 and increasing 0.3% as compared to the first quarter of 2005.

Cash concessions are recognized on an accrual basis in accordance with Generally Accepted Accounting Principles (“GAAP”) and are amortized over the approximate lease term, which is generally one year.

The following table reflects the percentage changes in GAAP rental revenue and rental revenue with concessions on a cash basis for our Established Communities:


	2Q 05 vs 2Q 04			2Q 05 vs 1Q 05

GAAP rental revenue		2.7	%		1.5	%
Rental revenue (with concessions on a cash basis)		3.0	%		0.5	%

Concessions granted per move-in for Established Communities averaged $1,030 during the second quarter of 2005, an increase of 17.8% from $874 in the second quarter of 2004 and an increase of 7.5% from $958 in the first quarter of 2005.

Development Activity

The Company completed two development communities during the second quarter of 2005. Avalon Run East II, located in Central New Jersey, is a garden-style community containing 312 apartment homes and was completed for a Total Capital Cost of $52,200,000. Avalon Orange, located in the Fairfield-New Haven, CT area, is a garden-style community containing 168 apartment homes and was completed for a Total Capital Cost of $22,100,000.

The Company also completed the redevelopment of Avalon Towers, a 109 apartment home high-rise community located in the Long Island, NY area, for a Total Capital Cost of $21,200,000, of which $17,300,000 was incurred prior to redevelopment.

The Company commenced construction of two communities during the second quarter of 2005. Avalon Pines II is the second phase of a community already under construction in the Long Island, NY area, and Avalon Chestnut Hill is located in the greater Boston, MA area. These two communities are expected to contain an aggregate of 356 apartment homes when completed, for an aggregate Total Capital Cost of $87,200,000.

The Company acquired five parcels of land during the second quarter of 2005 to hold for future development, for an aggregate purchase price of $45,534,000. These parcels of land, if developed as expected, will contain 1,154 apartment homes for a Total Capital Cost of $297,000,000.

Disposition Activity

During the second quarter of 2005, the Company sold one community, Avalon Lake, located in the Fairfield-New Haven, CT area. This community, which was constructed by the Company and completed in 1999, contained 135 apartment homes and was sold for a sales price of $37,700,000. The sale of this community resulted in a gain as reported in accordance with GAAP of $22,647,000, an Economic Gain of $19,828,000 and an Unleveraged IRR of 22.0%. The buyer plans to continue to operate the asset as a rental community.

In addition, on July 1, 2005, the Company sold Avalon Crossing, located in the Washington, DC metro area. This community, which was constructed by the Company and completed in 1996, contained 132 apartment homes and was sold for a sales price of $44,500,000 to a condominium converter. The sale of this community resulted in a gain as reported in accordance with GAAP of approximately $33,400,000, an Economic Gain of approximately $29,900,000 and an Unleveraged IRR of 22.3%.

During the second quarter of 2005, the Company sold two land parcels, located in Seattle, WA and in the Oakland-East Bay, CA area, for an aggregate sales price of $23,000,000. The sale of these two land parcels resulted in an aggregate GAAP gain of $4,617,000 and an aggregate Economic Gain of $1,617,000.

Fund Activity

The following activity took place through AvalonBay Value Added Fund, L.P. (the “Fund”), the private, discretionary investment vehicle in which the Company holds a 15.2% equity interest:

•
Redevelopment commenced on Hobbits Grove, located in the Baltimore, MD area, and is expected to be completed for a Total Capital Cost to the Fund of $29,400,000 (of which $25,500,000 was incurred prior to redevelopment); and

•
Avalon at Poplar Creek, located in the Chicago, IL area, was acquired on July 1, 2005 for a purchase price of $24,950,000.

The Company’s pro rata share of the required capital investment for this acquisition and the incremental future redevelopment is $4,371,000.

Financing, Liquidity and Balance Sheet Statistics

As of June 30, 2005, the Company had $156,000,000 outstanding under its $500,000,000 unsecured credit facility. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 28.7% at June 30, 2005. Unencumbered NOI for 2005 was approximately 85% and Interest Coverage for the second quarter of 2005 was 3.0 times.

Outlook

As part of its initial outlook for 2005, the Company announced expected disposition activity in the range of $100,000,000 to $150,000,000 for 2005. As of the date of this release, the Company has sold in excess of $160,000,000 in operating assets. In addition, in response to strong demand for high-quality institutional apartment communities, particularly from condominium converters, the Company has increased the amount of planned dispositions for the full year 2005 by $375,000,000 to approximately $500,000,000.

Based on the change in its disposition plan, the Company has increased its range for projected EPS to $5.34 to $5.42 for the full year 2005. In addition, based on year-to-date results and expectations for the remainder of the year, the Company is increasing the mid-point of its Projected FFO per share range provided in January 2005 by $0.08 to a revised Projected FFO per share range of $3.65 to $3.73 for the full year 2005.

For the third quarter of 2005, the Company expects EPS in the range of $2.57 to $2.61. The Company expects Projected FFO per share for the third quarter of 2005 to increase as compared to the third quarter of 2004, but expects Projected FFO per share to decline sequentially as compared to the second quarter of 2005. The sequential decline is primarily due to the absence in the third quarter of gains on the sale of two land parcels recognized in the second quarter of 2005, as well as the sequentially higher operating expenses typically experienced in the third quarter as a result of seasonally high turnover. As such, the Company expects Projected FFO per share in the range of $0.86 to $0.90 for the third quarter of 2005.

Other Matters

The Company will hold a conference call on July 22, 2005 at 1:00 PM 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: 7220469.

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. The full earnings release including the Attachments is available at http://www.avalonbay.com/earnings. To receive future press releases via e-mail, please register through the Investor Relations section of the website at http://www.avalonbay.com/Template.cfm?Section=Subscribe. Some items referenced in the earnings release may require the Adobe Acrobat 6.0 Reader. If you do not have the Adobe Acrobat 6.0 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 14, “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

•
Unleveraged IRR

•
Leverage

•
Total Market Capitalization

•
Unencumbered NOI

•
Interest Coverage

About AvalonBay Communities, Inc.

As of June 30, 2005, AvalonBay owned or held an ownership interest in 150 apartment communities containing 43,071 apartment homes in ten states and the District of Columbia, of which 11 communities were under construction and four communities were under reconstruction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing 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 and Chief Executive Officer, at (703) 317-4652 or Thomas J. Sargeant, 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, which include the following: changes in local employment conditions, demand for apartment homes, supply of competitive housing products, and other economic conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; increases in costs of materials, labor or other expenses may result in communities that we develop or redevelop failing to achieve expected profitability; delays in completing development, redevelopment and/or lease-up may result in increased financing and construction costs, and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of communities may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; we may abandon development or redevelopment opportunities for which we have already incurred costs. Additional discussions of risks and uncertainties appear in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters 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 third quarter and full year 2005. 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.

(AVALONBAY LOGO)

SECOND QUARTER 2005

Supplemental Operating and Financial Data

(GRAPHIC)

Avalon Orange is a garden-style community located in Orange, Connecticut, a suburb of New Haven. The
community is conveniently located, providing easy access to US Route 1, Interstate 95, the Merrit Parkway
and the Metro-North Train.

Avalon Orange offers a variety of floor plans to meet the diverse needs of our residents. Apartment homes
feature lofts with cathedral ceilings, bay windows, private balconies and designer kitchens. Residents of
Avalon Orange enjoy many community amenities including a fully equipped fitness center, heated swimming
pool, resident lounge and a boardwalk over a wetland preserve.

Avalon at Orange has 168 homes and was completed for a Total Capital Cost of $22.1 million.

SECOND QUARTER 2005

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 and Redevelopment Activity		Attachment 7
Development Communities		Attachment 8
Redevelopment Communities		Attachment 9
Summary of Development and Redevelopment Community Activity		Attachment 10
Future Development		Attachment 11
Unconsolidated Real Estate Investments		Attachment 12
Summary of Disposition Activity		Attachment 13

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 14

The following is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments are forward-looking statements that 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 are discussed in the paragraph titled “Forward-Looking Statements” in the release to which these attachments relate. In particular, 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 for the fiscal year ended December 31, 2004 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters.


	Q2		Q2					YTD		YTD
	2005		2004		% Change			2005		2004		% Change
Net income available to common stockholders	$	54,736	$	32,859		66.6	%	$	122,171	$	55,961		118.3	%

Per common share — basic	$	0.75	$	0.46		63.0	%	$	1.68	$	0.79		112.7	%
Per common share — diluted	$	0.74	$	0.46		60.9	%	$	1.65	$	0.79		108.9	%

Funds from Operations	$	72,325	$	60,450		19.6	%	$	143,574	$	117,829		21.8	%
Per common share — diluted	$	0.97	$	0.83		16.9	%	$	1.93	$	1.62		19.1	%

Dividends declared — common	$	52,029	$	50,316		3.4	%	$	103,777	$	100,343		3.4	%
Per common share	$	0.71	$	0.70		1.4	%	$	1.42	$	1.40		1.4	%

Common shares outstanding		73,280,345		71,879,228		1.9	%		73,280,345		71,879,228		1.9	%
Outstanding operating partnership units		470,226		579,782		(18.9	%)		470,226		579,782		(18.9	%)

Total outstanding shares and units		73,750,571		72,459,010		1.8	%		73,750,571		72,459,010		1.8	%


Average shares outstanding — basic		72,786,719		71,409,668		1.9	%		72,640,134		71,164,908		2.1	%
Average operating partnership units outstanding		477,970		581,941		(17.9	%)		487,913		594,850		(18.0	%)
Effect of dilutive securities		1,324,547		1,045,875		26.6	%		1,289,458		1,031,712		25.0	%

Average shares outstanding — diluted		74,589,236		73,037,484		2.1	%		74,417,505		72,791,470		2.2	%

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
June 30, 2005
(Dollars in thousands except per share data)
(unaudited)


	Q2			Q2						YTD			YTD
	2005			2004			% Change			2005			2004			% Change
Revenue:
Rental and other income	$	170,514		$	157,257			8.4	%	$	337,520		$	309,318			9.1	%
Management, development and other fees		1,363			157			768.2	%		1,796			305			488.9	%

Total		171,877			157,414			9.2	%		339,316			309,623			9.6	%

Operating expenses:
Direct property operating expenses, excluding property taxes		38,754			37,626			3.0	%		76,867			74,487			3.2	%
Property taxes		16,772			14,762			13.6	%		33,461			29,991			11.6	%
Property management and other indirect operating expenses		7,594			7,121			6.6	%		14,722			13,694			7.5	%
Investments and investment management (1)		1,171			1,711			(31.6	%)		2,164			2,551			(15.2	%)

Total		64,291			61,220			5.0	%		127,214			120,723			5.4	%

Interest income		270			36			650.0	%		301			56			437.5	%
Interest expense		(32,379	)		(32,416	)		(0.1	%)		(64,533	)		(64,610	)		(0.1	%)
General and administrative expense (2)		(6,262	)		(4,486	)		39.6	%		(13,421	)		(9,200	)		45.9	%
Joint venture income, minority interest and venture partner interest in profit-sharing (3)		(159	)		(484	)		(67.1	%)		5,910			(464	)		(1,373.7	%)
Depreciation expense		(40,202	)		(38,949	)		3.2	%		(81,168	)		(77,295	)		5.0	%

Income from continuing operations before cumulative effect of change in accounting principle		28,854			19,895			45.0	%		59,191			37,387			58.3	%
Discontinued operations: (4)
Income from discontinued operations		793			2,764			(71.3	%)		2,452			6,002			(59.1	%)
Gain on sale of real estate assets (5)		27,264			12,375			120.3	%		64,878			12,375			424.3	%

Total discontinued operations		28,057			15,139			85.3	%		67,330			18,377			266.4	%

Income before cumulative effect of change in accounting principle (6)		56,911			35,034			62.4	%		126,521			55,764			126.9	%
Cumulative effect of change in accounting principle		—			—			—			—			4,547			(100.0	%)

Net income		56,911			35,034			62.4	%		126,521			60,311			109.8	%
Dividends attributable to preferred stock		(2,175	)		(2,175	)		—			(4,350	)		(4,350	)		—	%

Net income available to common stockholders	$	54,736		$	32,859			66.6	%	$	122,171		$	55,961			118.3	%

Net income per common share — basic	$	0.75		$	0.46			63.0	%	$	1.68		$	0.79			112.7	%

Net income per common share — diluted	$	0.74		$	0.46			60.9	%	$	1.65		$	0.79			108.9	%

⁽¹⁾		Reflects costs incurred related to investment acquisition, investment management and abandoned pursuits.

⁽²⁾		Amounts for the periods ended June 30, 2005 include the accrual of $1,500 in costs related to various litigation matters.

⁽³⁾		Amount for the six months ended June 30, 2005 includes $6,252 related to gain on the acquisition of Rent.com by eBay.

⁽⁴⁾		Reflects net income for communities held for sale as of June 30, 2005 and communities sold during the period from January 1, 2004 through June 30, 2005. The following table details income from discontinued operations as of the periods shown:


	Q2			Q2			YTD			YTD
	2005			2004			2005			2004
Rental income	$	1,052		$	6,320		$	3,615		$	13,575
Operating and other expenses		(259	)		(2,202	)		(1,023	)		(4,602	)
Interest expense, net		—			(118	)		—			(371	)
Minority interest expense		—			(12	)		—			(25	)
Depreciation expense		—			(1,224	)		(140	)		(2,575	)

Income from discontinued operations (7)	$	793		$	2,764		$	2,452		$	6,002

⁽⁵⁾		Amounts for the periods ended June 30, 2005 include gains on the sale of land in the amount of $4,617.

⁽⁶⁾		Operations for the periods ended June 30, 2004 include the operations of a community in which the Company held a variable interest. This community was consolidated as of January 1, 2004 as required by the Financial Accounting Standards Board (FASB) Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin (ARB) No. 51. On October 15, 2004, the community repaid its note payable to the Company, terminating the variable interest relationship.

⁽⁷⁾		NOI for discontinued operations totaled $793 and $2,592 for the three and six months ended June 30, 2005, respectively, of which $304 and $1,705, respectively, related to assets sold.

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
Detailed Operating Information
(Dollars in thousands)
(unaudited)


	June 30,			December 31,
	2005			2004

Real estate	$	5,392,210		$	5,276,061
Less accumulated depreciation		(895,435	)		(803,850	)

Net operating real estate		4,496,775			4,472,211

Construction in progress, including land		196,833			173,291
Land held for development		211,119			166,751
Operating real estate assets held for sale, net		10,428			65,572

Total real estate, net		4,915,155			4,877,825

Cash and cash equivalents		2,877			1,526
Cash in escrow		14,545			13,075
Resident security deposits		27,493			23,478
Other assets (1)		154,636			152,377

Total assets	$	5,114,706		$	5,068,281


Unsecured senior notes	$	1,809,150		$	1,859,448
Unsecured facility		156,000			102,000
Notes payable		474,099			480,843
Resident security deposits		37,362			34,516
Liabilities related to assets held for sale		284			1,007
Other liabilities		185,147			183,651

Total liabilities	$	2,662,042		$	2,661,465


Minority interest		20,221			21,525

Stockholders’ equity		2,432,443			2,385,291

Total liabilities and stockholders’ equity	$	5,114,706		$	5,068,281

⁽¹⁾
Other assets includes $95 and $482 relating to discontinued operations as of June 30, 2005 and December 31, 2004, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes — Established Communities (1)
June 30, 2005


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)(3)
			Q2 05		Q2 04		% Change			Q2 05			Q2 04			% Change			Q2 05		Q2 04		% Change
Northeast
Boston, MA		2,177	$	1,541	$	1,519		1.4	%		95.6	%		94.9	%		0.7	%	$	9,629	$	9,434		2.1	%
New York, NY		1,606		2,131		2,117		0.7	%		96.5	%		95.1	%		1.4	%		9,908		9,701		2.1	%
Fairfield-New Haven, CT		1,384		1,762		1,764		(0.1	%)		95.7	%		94.0	%		1.7	%		6,999		6,889		1.6	%
Northern New Jersey		1,182		2,258		2,157		4.7	%		95.9	%		94.4	%		1.5	%		7,678		7,227		6.2	%
Long Island, NY		806		2,140		2,114		1.2	%		97.2	%		97.6	%		(0.4	%)		5,028		4,987		0.8	%
Central New Jersey		502		1,613		1,584		1.8	%		95.6	%		96.4	%		(0.8	%)		2,323		2,299		1.0	%

Northeast Average		7,657		1,883		1,856		1.5	%		96.1	%		95.1	%		1.0	%		41,565		40,537		2.5	%

Mid-Atlantic
Washington, DC		3,721		1,441		1,402		2.8	%		94.7	%		95.6	%		(0.9	%)		15,239		14,957		1.9	%
Baltimore, MD		526		1,151		1,127		2.1	%		96.1	%		96.2	%		(0.1	%)		1,745		1,711		2.0	%

Mid-Atlantic Average		4,247		1,405		1,368		2.7	%		94.9	%		95.7	%		(0.8	%)		16,984		16,668		1.9	%

Midwest
Chicago, IL		887		1,094		1,089		0.5	%		96.1	%		92.3	%		3.8	%		2,797		2,682		4.3	%

Midwest Average		887		1,094		1,089		0.5	%		96.1	%		92.3	%		3.8	%		2,797		2,682		4.3	%

Pacific Northwest
Seattle, WA		2,500		1,037		1,011		2.6	%		94.9	%		94.3	%		0.6	%		7,384		7,155		3.2	%

Pacific Northwest Average		2,500		1,037		1,011		2.6	%		94.9	%		94.3	%		0.6	%		7,384		7,155		3.2	%

Northern California
San Jose, CA		5,099		1,441		1,426		1.1	%		95.7	%		95.7	%		0.0	%		21,083		20,863		1.1	%
San Francisco, CA		2,015		1,670		1,632		2.3	%		96.2	%		95.6	%		0.6	%		9,715		9,438		2.9	%
Oakland-East Bay, CA		1,955		1,215		1,187		2.4	%		95.6	%		94.3	%		1.3	%		6,808		6,568		3.7	%

Northern California Average		9,069		1,443		1,420		1.6	%		95.8	%		95.4	%		0.4	%		37,606		36,869		2.0	%

Southern California
Orange County, CA		1,174		1,273		1,206		5.6	%		96.3	%		95.7	%		0.6	%		4,319		4,067		6.2	%
San Diego, CA		1,058		1,348		1,284		5.0	%		94.9	%		95.0	%		(0.1	%)		4,063		3,872		4.9	%
Los Angeles, CA		975		1,307		1,234		5.9	%		95.1	%		94.4	%		0.7	%		3,634		3,410		6.6	%

Southern California Average		3,207		1,308		1,240		5.5	%		95.5	%		95.1	%		0.4	%		12,016		11,349		5.9	%

Average/Total Established		27,567	$	1,495	$	1,463		2.2	%		95.7	%		95.2	%		0.5	%	$	118,352	$	115,260		2.7	%

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2004 such that a comparison of 2004 to 2005 is meaningful. The number of Established Communities was adjusted during the second quarter of 2005 to reflect changes in the Company’s disposition program.

(2)		Reflects the effect of concessions amortized over the average lease term.

(3)		With concessions reflected on a cash basis, rental revenue from Established Communities increased 3.0% between years.

Attachment 5

AvalonBay Communities, Inc.
Sequential Quarterly Revenue and Occupancy Changes — Established Communities (1)
June 30, 2005


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)(3)
			Q2 05		Q1 05		% Change			Q2 05			Q1 05			% Change			Q2 05		Q1 05		% Change
Northeast
Boston, MA		2,177	$	1,541	$	1,538		0.2	%		95.6	%		95.5	%		0.1	%	$	9,629	$	9,599		0.3	%
New York, NY		1,606		2,131		2,108		1.1	%		96.5	%		95.6	%		0.9	%		9,908		9,711		2.0	%
Fairfield-New Haven, CT		1,384		1,762		1,736		1.5	%		95.7	%		95.5	%		0.2	%		6,999		6,881		1.7	%
Northern New Jersey		1,182		2,258		2,200		2.6	%		95.9	%		96.8	%		(0.9	%)		7,678		7,549		1.7	%
Long Island, NY		806		2,140		2,128		0.6	%		97.2	%		96.2	%		1.0	%		5,028		4,950		1.6	%
Central New Jersey		502		1,613		1,597		1.0	%		95.6	%		94.3	%		1.3	%		2,323		2,268		2.4	%

Northeast Average		7,657		1,883		1,861		1.2	%		96.1	%		95.8	%		0.3	%		41,565		40,958		1.5	%

Mid-Atlantic
Washington, DC		3,721		1,441		1,407		2.4	%		94.7	%		94.3	%		0.4	%		15,239		14,806		2.9	%
Baltimore, MD		526		1,151		1,133		1.6	%		96.1	%		94.6	%		1.5	%		1,745		1,690		3.3	%

Mid-Atlantic Average		4,247		1,405		1,373		2.3	%		94.9	%		94.3	%		0.6	%		16,984		16,496		3.0	%

Midwest
Chicago, IL		887		1,094		1,079		1.4	%		96.1	%		94.6	%		1.5	%		2,797		2,718		2.9	%

Midwest Average		887		1,094		1,079		1.4	%		96.1	%		94.6	%		1.5	%		2,797		2,718		2.9	%

Pacific Northwest
Seattle, WA		2,500		1,037		1,022		1.5	%		94.9	%		95.2	%		(0.3	%)		7,384		7,296		1.2	%

Pacific Northwest Average		2,500		1,037		1,022		1.5	%		94.9	%		95.2	%		(0.3	%)		7,384		7,296		1.2	%

Northern California
San Jose, CA		5,099		1,441		1,430		0.8	%		95.7	%		95.8	%		(0.1	%)		21,083		20,953		0.6	%
San Francisco, CA		2,015		1,670		1,654		1.0	%		96.2	%		94.9	%		1.3	%		9,715		9,487		2.4	%
Oakland-East Bay, CA		1,955		1,215		1,208		0.6	%		95.6	%		96.1	%		(0.5	%)		6,808		6,800		0.1	%

Northern California Average		9,069		1,443		1,432		0.8	%		95.8	%		95.6	%		0.2	%		37,606		37,240		1.0	%

Southern California
Orange County, CA		1,174		1,273		1,255		1.4	%		96.3	%		96.4	%		(0.1	%)		4,319		4,261		1.4	%
San Diego, CA		1,058		1,348		1,331		1.3	%		94.9	%		94.8	%		0.1	%		4,063		4,002		1.5	%
Los Angeles, CA		975		1,307		1,280		2.1	%		95.1	%		96.3	%		(1.2	%)		3,634		3,606		0.8	%

Southern California Average		3,207		1,308		1,288		1.6	%		95.5	%		95.8	%		(0.3	%)		12,016		11,869		1.2	%

Average/Total Established		27,567	$	1,495	$	1,478		1.2	%		95.7	%		95.4	%		0.3	%	$	118,352	$	116,577		1.5	%

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2004 such that a comparison of 2004 to 2005 is meaningful. The number of Established Communities was adjusted during the second quarter of 2005 to reflect changes in the Company’s disposition program.

(2)		Reflects the effect of concessions amortized over the average lease term.

(3)		With concessions reflected on a cash basis, rental revenue from Established Communities increased 0.5% between quarters.

Attachment 6

AvalonBay Communities, Inc.
Year-to-Date Revenue and Occupancy Changes — Established Communities (1)
June 30, 2005


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)(3)
			YTD 05		YTD 04		% Change			YTD 05			YTD 04			% Change			YTD 05		YTD 04		% Change
Northeast
Boston, MA		2,177	$	1,540	$	1,528		0.8	%		95.6	%		94.8	%		0.8	%	$	19,229	$	18,934		1.6	%
New York, NY		1,606		2,119		2,103		0.8	%		96.1	%		94.4	%		1.7	%		19,618		19,133		2.5	%
Fairfield-New Haven, CT		1,384		1,749		1,767		(1.0	%)		95.6	%		91.5	%		4.1	%		13,880		13,457		3.1	%
Northern New Jersey		1,182		2,228		2,163		3.0	%		96.4	%		92.7	%		3.7	%		15,227		14,265		6.7	%
Long Island, NY		806		2,134		2,132		0.1	%		96.7	%		95.1	%		1.6	%		9,978		9,809		1.7	%
Central New Jersey		502		1,605		1,579		1.6	%		95.0	%		94.1	%		0.9	%		4,590		4,478		2.5	%

Northeast Average		7,657		1,872		1,854		1.0	%		95.9	%		93.8	%		2.1	%		82,522		80,076		3.1	%

Mid-Atlantic
Washington, DC		3,721		1,424		1,397		1.9	%		94.5	%		95.3	%		(0.8	%)		30,045		29,708		1.1	%
Baltimore, MD		526		1,142		1,126		1.4	%		95.3	%		96.2	%		(0.9	%)		3,436		3,420		0.5	%

Mid-Atlantic Average		4,247		1,389		1,363		1.9	%		94.6	%		95.4	%		(0.8	%)		33,481		33,128		1.1	%

Midwest
Chicago, IL		887		1,086		1,081		0.5	%		95.4	%		92.6	%		2.8	%		5,515		5,341		3.3	%

Midwest Average		887		1,086		1,081		0.5	%		95.4	%		92.6	%		2.8	%		5,515		5,341		3.3	%

Pacific Northwest
Seattle, WA		2,500		1,029		1,011		1.8	%		95.1	%		94.0	%		1.1	%		14,681		14,270		2.9	%

Pacific Northwest Average		2,500		1,029		1,011		1.8	%		95.1	%		94.0	%		1.1	%		14,681		14,270		2.9	%

Northern California
San Jose, CA		5,099		1,436		1,428		0.6	%		95.7	%		95.9	%		(0.2	%)		42,036		41,862		0.4	%
San Francisco, CA		2,015		1,662		1,623		2.4	%		95.5	%		95.8	%		(0.3	%)		19,202		18,812		2.1	%
Oakland-East Bay, CA		1,955		1,211		1,187		2.0	%		95.8	%		93.6	%		2.2	%		13,608		13,062		4.2	%

Northern California Average		9,069		1,437		1,418		1.3	%		95.7	%		95.5	%		0.2	%		74,846		73,736		1.5	%

Southern California
Orange County, CA		1,174		1,264		1,207		4.7	%		96.4	%		95.6	%		0.8	%		8,580		8,134		5.5	%
San Diego, CA		1,058		1,339		1,280		4.6	%		94.8	%		95.0	%		(0.2	%)		8,065		7,725		4.4	%
Los Angeles, CA		975		1,293		1,229		5.2	%		95.7	%		95.2	%		0.5	%		7,240		6,850		5.7	%

Southern California Average		3,207		1,298		1,237		4.9	%		95.6	%		95.3	%		0.3	%		23,885		22,709		5.2	%

Average/Total Established		27,567	$	1,486	$	1,463		1.6	%		95.6	%		94.7	%		0.9	%	$	234,930	$	229,260		2.5	%

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2004 such that a comparison of 2004 to 2005 is meaningful. The number of Established Communities was adjusted during the second quarter of 2005 to reflect changes in the Company’s disposition program.

(2)		Reflects the effect of concessions amortized over the average lease term.

(3)		With concessions reflected on a cash basis, rental revenue from Established Communities increased 2.9% between years.

Attachment 7

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity as of June 30, 2005


			Number		Number		Total
			of		of		Capital Cost (1)
			Communities		Homes		(millions)
Portfolio Additions:
2005 Annual Completions	(2	)
Development				7		1,971	$	410.0
Redevelopment	(3	)		1		—		3.9

Total Additions				8		1,971	$	413.9

2004 Annual Completions
Development				7		2,135	$	363.7
Redevelopment				1		—		8.3

Total Additions				8		2,135	$	372.0

Pipeline Activity:	(2	)
Currently Under Construction
Development				11		2,593	$	665.0
Redevelopment	(3	)		4		—		43.9

Subtotal				15		2,593	$	708.9

Planning
Development Rights				46		12,216	$	2,762.0

Total Pipeline				61		14,809	$	3,470.9

(1)		See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		Information represents projections and estimates.

(3)		Represents only cost of redevelopment activity, does not include original acquisition cost or number of apartment homes acquired.

		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 for the second quarter of 2005.

Attachment 8

AvalonBay Communities, Inc.
Development Communities as of June 30, 2005


			Percentage					Total			Schedule								Avg
			Ownership			# of		Capital											Rent								% Occ
			Upon			Apt		Cost (1)					Initial				Stabilized		Per		% Comp			% Leased			Physical			Economic
			Completion			Homes		(millions)			Start		Occupancy		Complete		Ops (1)		Home (1)		(2)			(3)			(4)			(1) (5)
																			Inclusive of
																			Concessions
																			See Attachment #14
Under Construction:
	1.	Avalon Chrystie Place I (6)		20	%		361	$	150.0			Q4 2003		Q2 2005		Q4 2005		Q2 2006	$	3,140		48.5	%		44.3	%		18.0	%		4.9	%
		New York, NY
	2.	Avalon Pines I		100	%		298	$	48.7			Q4 2003		Q4 2004		Q3 2005		Q1 2006	$	1,785		96.6	%		95.0	%		82.9	%		64.5	%
		Coram, NY
	3.	Avalon Danbury		100	%		234	$	35.6			Q1 2004		Q1 2005		Q4 2005		Q2 2006	$	1,720		53.8	%		50.0	%		37.6	%		14.4	%
		Danbury, CT
	4.	Avalon Del Rey (7)		30	%		309	$	70.0			Q2 2004		Q3 2005		Q1 2006		Q3 2006	$	1,790		N/A			N/A			N/A			N/A
		Los Angeles, CA
	5.	Avalon at Juanita Village (8)		—			211	$	45.5			Q2 2004		Q2 2005		Q4 2005		Q2 2006	$	1,385		41.7	%		31.3	%		30.3	%		11.9	%
		Kirkland, WA
	6.	Avalon Camarillo		100	%		249	$	42.7			Q2 2004		Q4 2005		Q1 2006		Q3 2006	$	1,630		N/A			N/A			N/A			N/A
		Camarillo, CA
	7.	Avalon at Bedford Center		100	%		139	$	25.3			Q4 2004		Q4 2005		Q2 2006		Q4 2006	$	1,900		N/A			N/A			N/A			N/A
		Bedford, MA
	8.	Avalon Wilshire		100	%		123	$	42.0			Q1 2005		Q4 2006		Q1 2007		Q3 2007	$	2,520		N/A			N/A			N/A			N/A
		Los Angeles, CA
	9.	Avalon at Mission Bay North II (9)		25	%		313	$	118.0			Q1 2005		Q4 2006		Q2 2007		Q4 2007	$	2,580		N/A			N/A			N/A			N/A
		San Francisco, CA
	10.	Avalon Pines II		100	%		152	$	26.6			Q2 2005		Q2 2006		Q3 2006		Q1 2007	$	1,885		N/A			N/A			N/A			N/A
		Coram, NY
	11.	Avalon Chestnut Hill		100	%		204	$	60.6			Q2 2005		Q4 2006		Q1 2007		Q3 2007	$	2,720		N/A			N/A			N/A			N/A
		Chestnut Hill, MA

		Subtotal/Weighted Average					2,593	$	665.0										$	2,135


Completed this Quarter:
	1.	Avalon Run East II		100	%		312	$	52.2			Q2 2003		Q2 2004		Q2 2005		Q3 2005	$	1,665		100.0	%		99.7	%		97.4	%		88.8	%
		Lawrenceville, NJ
	2.	Avalon Orange		100	%		168	$	22.1			Q1 2004		Q4 2004		Q2 2005		Q4 2005	$	1,475		100.0	%		86.9	%		83.9	%		52.2	%
		Orange, CT


		Subtotal/Weighted Average					480	$	74.3										$	1,600


		Total/Weighted Average					3,073	$	739.3										$	2,055


		Weighted Average Projected NOI as a % of Total Capital Cost (1) (10)							7.7	%		Inclusive of Concessions — See Attachment #14


Non-Stabilized Development Communities: (11)					% Economic Occ (1) (5)
Prior Quarter Completions:

	Avalon Milford I, Milford, CT	246		31.5

	Avalon at The Pinehills I, Plymouth, MA	101		19.9

	Avalon at Crane Brook, Danvers & Peabody, MA	387		55.9


	Total	734	$	107.3		85.8	%


Asset Value, Non-Stabilized Development							Source

Capital Cost, Prior Quarter Completions				$	107.3		Att. 8

Capital Cost, Current Completions					74.3		Att. 8

Capital Cost, Under Construction					456.5		Att. 8 (less JV partner share)

Less: Remaining to Invest, Under Construction

	Total Remaining to Invest	588.8					Att. 10
	Capital Cost, Projected Q3 2005 Starts	(407.4	)				Att. 10 (Footnote 5)

					(181.4	)


	Total Asset Value, Non-Stabilized Development			$	456.7

Q2 2005 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $3.1 million. See Attachment #14.


(1)		See Attachment #14 — 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 July 15, 2005.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of July 15, 2005.

(4)		Physical occupancy based on apartment homes occupied as of July 15, 2005.

(5)		Represents Economic Occupancy for the second quarter of 2005.

(6)		The community is financed under a joint venture structure with third-party financing, in which the community is owned by a limited liability company managed by a wholly-owned subsidiary of the Company. The Company’s portion of the Total Capital Cost of this joint venture is projected to be $30.0 million including community-based tax-exempt debt.

(7)		The community is currently owned by a wholly-owned subsidiary of the Company, will be financed, in part or in whole, by a construction loan, and is subject to a joint venture agreement that allows for a joint venture partner to be admitted upon construction completion.

(8)		The community is being developed by a wholly-owned, taxable REIT subsidiary of the Company, and is subject to a venture agreement that provides for the transfer of 100% of the ownership interests upon completion.

(9)		The community is being developed under a joint venture structure and is expected to be financed in part by a construction loan. The Company’s portion of the Total Capital Cost of this joint venture is projected to be $29.5 million including community-based debt.

(10)		The Weighted Average calculation is based on the Company’s pro rata share of the Total Capital Cost for each community.

(11)		Represents Development Communities completed in the current quarter and prior quarters that had not achieved Stabilized Operations for the entire current quarter. Estimates are based on the Company’s pro rata share of the Total Capital Cost for each community. 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 for the second quarter of 2005.

Attachment 9

AvalonBay Communities, Inc.
Redevelopment Communities (1) as of June 30, 2005


						Cost (millions)					Schedule				Avg		Number of Homes
				# of		Pre-		Total							Rent				Out of
			Percentage	Apt		Redevelopment		Capital						Restabilized	Per		Completed		Service
			Ownership	Homes		Capital Cost		Cost (2)(3)			Acquisition	Start	Complete	Ops (3)	Home (3)		to date		@ 6/30/05

															Inclusive of
															Concessions
														See Attachment #14
Under Redevelopment:

Stabilized Portfolio (4)

	1.	Avalon at Prudential Center (5) Boston, MA	100%		781	$	133.9	$	160.0		Q3 1998	Q4 2000	Q2 2006	Q4 2006	$	2,660		534		36

	2.	Avalon at Fairway Hills III (6) Columbia, MD	100%		336	$	23.3	$	29.4		Q3 1996	Q4 2004	Q2 2006	Q4 2006	$	1,340		146		26


		Subtotal			1,117	$	157.2	$	189.4						$	2,265		680		62


Acquisitions (4)

	1.	Avalon Lakeside (7) Wheaton, IL	15%		204	$	14.5	$	18.4		Q3 2004	Q4 2004	Q1 2006	Q3 2006	$	950		105		20

	2.	Hobbits Grove (8) Columbia, MD	15%		170	$	25.5	$	29.4		Q4 2004	Q2 2005	Q2 2006	Q4 2006	$	1,425		29		19


		Subtotal			374	$	40.0	$	47.8						$	1,165		134		39


Completed this Quarter:
	1.	Avalon Towers Long Beach, NY	100%		109	$	17.3	$	21.2		Q3 1995	Q3 2004	Q2 2005	Q2 2005	$	3,335		—		—



		Total/Weighted Average			1,600	$	214.5	$	258.4						$	2,080		814		101


		Weighted Average Projected NOI as a % of Total Capital Cost (3)							9.8	%	Inclusive of Concessions — See Attachment #14

(1)		Redevelopment Communities are communities for which redevelopment costs are expected to exceed 10% of the original acquisition cost or $5.0 million.

(2)		Inclusive of acquisition cost.

(3)		See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		Stabilized Portfolio Redevelopment Communities have been held for one year or more and have achieved Stabilized Operations before beginning redevelopment. Acquired redevelopments are those communities that begin redevelopment within one year of acquisition.

(5)		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. In Q4 2003, the scope of this redevelopment was extended to include renovations on all remaining apartments, increasing the redevelopment budget to $26.1 million.

(6)		This is one of two communities that previously comprised Avalon at Fairway Hills II. In connection with the beginning of its renovation, this community will now be reported separately as Phase III.

(7)		This community was acquired in Q3 2004 and was transferred to a subsidiary of the Company’s Investment Management Fund (the “IM Fund”) in Q1 2005, reducing the Company’s indirect equity interest in the community to 15%. This community was formerly known as Briarcliffe Lakeside.

(8)		This community was acquired in Q4 2004 and was transferred to a subsidiary of the Company’s IM Fund in Q1 2005, reducing the Company’s indirect equity interest in the community to 15%.

		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 for the second quarter of 2005.


	Apt Homes		Total Capital		Cost of Homes				Construction in
	Completed &		Cost Invested		Completed &		Remaining to		Progress at
	Occupied		During Period (3)		Occupied (4)		Invest (5)		Period End (6)

Total - 2003 Actual		1,781	$	304,470	$	335,364	$	325,139	$	240,137


2004 Actual:
Quarter 1		345	$	69,258	$	61,978	$	366,959	$	265,154
Quarter 2		771		111,146		130,022		254,300		296,509
Quarter 3		655		53,935		108,786		332,144		264,259
Quarter 4		410		67,845		67,515		287,812		266,548

Total - 2004 Actual		2,181	$	302,184	$	368,301


2005 Projected:
Quarter 1 (Actual)		259	$	60,827	$	42,234	$	286,946	$	294,379
Quarter 2 (Actual)		473		72,327		75,121		588,802		315,720
Quarter 3 (Projected)		420		148,093		62,000		445,143		292,603
Quarter 4 (Projected)		351		67,666		57,801		377,476		292,046

Total - 2005 Projected		1,503	$	348,913	$	237,156

REDEVELOPMENT


			Total Capital				Reconstruction in
	Avg Homes		Cost Invested		Remaining to		Progress at
	Out of Service		During Period (3)		Invest (5)		Period End (6)

Total - 2003 Actual			$	8,009	$	5,660	$	13,046


2004 Actual:
Quarter 1		30	$	677	$	4,362	$	29
Quarter 2		31		887		7,444		—
Quarter 3		38		497		7,132		865
Quarter 4		44		1,483		15,710		2,140

Total - 2004 Actual			$	3,544


2005 Projected:
Quarter 1 (Actual)		80	$	2,878	$	9,938	$	5,963
Quarter 2 (Actual)		98		2,536		7,301		14,236
Quarter 3 (Projected)		116		2,525		14,344		18,385
Quarter 4 (Projected)		102		3,002		11,342		14,998

Total - 2005 Projected			$	10,941

(1)		Data is presented for all communities currently under construction or reconstruction and those communities for which construction or reconstruction is expected to begin within the next 90 days.

(2)		Projected periods include data for consolidated joint ventures at 100%. The offset for joint venture partners’ participation is reflected as minority interest.

(3)		Represents Total Capital Cost incurred or expected to be incurred during the quarter, year or in total. See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(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 communities currently under construction or reconstruction and those for which construction or reconstruction is expected to begin within the next 90 days. Remaining to invest for Q2 2005 includes $407.4 million attributed to five anticipated Q3 2005 development starts and $9.6 million related to one anticipated Q3 2005 redevelopment. Remaining to Invest also includes $5.8 million attributed to Avalon Chrystie Place I and $24.2 million attributed to Avalon at Mission Bay North II. The Company’s portion of the Total Capital Cost of these joint ventures is projected to be $30.0 million and $29.5 million, respectively, including community-based tax-exempt and construction debt.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q2 2005 includes $133.1 million related to two unconsolidated joint ventures and two unconsolidated investments in the IM Fund, and is reflected in other assets for financial 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 for the second quarter of 2005.

Attachment 11

AvalonBay Communities, Inc.
Future Development as of June 30, 2005

DEVELOPMENT RIGHTS


				Estimated		Total
				Number		Capital Cost (1)
Location of Development Right				of Homes		(millions)
1.	Rockville, MD Phase II	(2	)		196	$	30
2.	Lyndhurst, NJ	(2	)		328		81
3.	Long Island City, NY Phase II				602		176
4.	New York, NY Phase II	(2	)		205		98
5.	Shrewsbury, MA				251		40
6.	Dublin, CA Phase I	(2	)		305		76
7.	Danvers, MA				428		80
8.	Glen Cove, NY	(2	)		111		37
9.	New Rochelle, NY Phase II				588		165
10.	Encino, CA	(2	)		131		51
11.	Woburn, MA				446		84
12.	Wilton, CT	(2	)		100		24
13.	Bellevue, WA				368		81
14.	Shelton, CT II				171		34
15.	Canoga Park, CA				209		47
16.	New York, NY Phase III	(2	)		96		56
17.	Kirkland, WA Phase II	(2	)		173		48
18.	Union City, CA Phase I	(2	)		230		58
19.	Union City, CA Phase II	(2	)		209		54
20.	Hingham, MA				236		44
21.	Irvine, CA				290		63
22.	Lexington, MA				387		76
23.	Norwalk, CT				312		63
24.	Cohasset, MA				200		38
25.	White Plains, NY				407		138
26.	Andover, MA	(2	)		115		21
27.	Quincy, MA	(2	)		146		24
28.	Plymouth, MA Phase II				69		13
29.	Tinton Falls, NJ				298		51
30.	West Haven, CT				170		23
31.	Greenburgh, NY Phase II				444		112
32.	Sharon, MA				156		26
33.	Oyster Bay, NY				273		69
34.	Dublin, CA Phase II				200		52
35.	Dublin, CA Phase III				205		53
36.	Milford, CT	(2	)		284		45
37.	Wheaton, MD	(2	)		320		56
38.	Alexandria, VA	(2	)		282		56
39.	Stratford, CT	(2	)		146		23
40.	Plainview, NY				220		47
41.	Yaphank, NY	(2	)		298		57
42.	Camarillo, CA				376		55
43.	Gaithersburg, MD				254		41
44.	Shelton, CT				302		49
45.	Tysons Corner, VA	(2	)		439		101
46.	Rockville, MD	(2	)		240		46

	Total				12,216	$	2,762

(1)		See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		Company owns land, but construction has not yet begun.

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 for the second quarter of 2005.

Attachment 12

AvalonBay Communities, Inc.
Unconsolidated Real Estate Investments (1) as of June 30, 2005


						AVB												AVB's
				# of		Book		Outstanding Debt										Economic
Unconsolidated	Percentage			Apt		Value							Interest			Maturity		Share
Joint Ventures	Ownership			Homes		Investment (2)		Amount		Type			Rate			Date		of Debt
AvalonBay Value Added Fund, LP
1. Avalon at Redondo Beach Los Angeles, CA		N/A			105		N/A	$	16,765	Fixed				4.84	%	Oct 2011		$	2,540
2. Avalon Lakeside Chicago, IL		N/A			204		N/A		8,037	Fixed				6.90	%	Feb 2028 (3)			1,218
3. Hobbits Grove Baltimore, MD		N/A			170		N/A		16,575	Fixed				5.25	%	Apr 2012			2,511
4. Ravenswood at the Park Seattle, WA		N/A			400		N/A		31,500	Fixed				4.96	%	Jul 2012			4,772
Fund corporate debt (4)		N/A			N/A		N/A		29,300	Variable		4.08			%	Jan 2008			4,439

		15.2	%		879	$	27,106	$	102,177									$	15,480


Other Operating Joint Ventures
1. Avalon Run Lawrenceville, NJ		(5	)		426	$	1,567	$	—		N/A			N/A			N/A	$	—
2. Avalon Grove Stamford, CT		(6	)		402		8,872		—		N/A			N/A			N/A		—
3. Avalon Bedford Stamford, CT		25.0	%		388		13,024		22,500	Fixed				6.55	%	Nov 2005			5,625

					1,216	$	23,463	$	22,500									$	5,625


Other Development Joint Ventures
1. Avalon Chrystie Place I New York, NY		20.0	%		361	$	29,764	$	117,000	Variable				2.27	%	Nov 2036		$	23,400
2. Mission Bay North II San Francisco, CA		25.0	%		313		5,843		—		N/A			N/A			N/A		—

					674	$	35,607	$	117,000									$	23,400

					2,769	$	86,176	$	241,677									$	44,505

(1)		Schedule does not include two communities (Avalon at Juanita Village and Avalon Del Rey) that are being developed under joint venture arrangements, but are currently wholly-owned and therefore consolidated for financial reporting purposes.

(2)		These unconsolidated real estate investments are accounted for under the equity method of accounting. AVB Book Value Investment represents the Company’s recorded equity investment plus the Company’s pro rata share of outstanding debt.

(3)		Debt can be prepaid after February 2008 without penalty.

(4)		Amounts are outstanding under the Fund's permanent credit facility. Interest rate shown represents interest rate on outstanding borrowings with LIBOR based interest.

(5)		After the venture makes certain distributions to the third-party partner, the Company will generally be entitled to receive 40% of all operating cash flow distributions and 49% of all residual cash flow following a sale.

(6)		After the venture makes certain distributions to the third-party partner, the Company generally receives 50% of all further distributions.

Attachment 13

AvalonBay Communities, Inc.
Summary of Disposition Activity as of June 30, 2005
(Dollars in thousands)

Weighted

Accumulated

Weighted Average

Weighted

Number of

Average

Gross Sales

Depreciation

Economic

Initial Year

Average

Communities Sold

Holding Period

Price

GAAP Gain

and Other

Gain (1)

Mkt. Cap Rate (1)

Unleveraged IRR (1)

1998:
9 Communities

170,312

25,270

23,438

1,832

8.1

16.2

1999:
16 Communities

317,712

47,093

27,150

19,943

8.3

12.1

2000:
8 Communities

160,085

40,779

6,262

34,517

7.9

15.3

2001:
7 Communities

241,130

62,852

21,623

41,229

8.0

14.3

2002:
1 Community

80,100

48,893

7,462

41,431

5.4

20.1

2003:
12 Communities, 1 Land Parcel (2)

460,600

184,438

52,613

131,825

6.3

15.3

2004:
5 Communities, 1 Land Parcel

250,977

122,425

19,320

103,105

4.8

16.8

2005:
3 Communities, 2 Land Parcels (3)

139,950

64,878

(1,321

)

66,199

3.9

20.0

1998 - 2005 Total

5.5

1,820,866

596,628

156,547

440,081

6.8

15.4

(1)		See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. For purposes of this attachment, land sales are not included in the Weighted Average Initial Year Market Cap Rate or the Weighted Average Unleveraged IRR.

(2)		2003 GAAP gain, for purposes of this attachment, includes $23,448 related to the sale of a community in which the Company held a 50% membership interest.

(3)		2005 GAAP gain includes the recovery of an impairment loss in the amount of $3,000 recorded in 2002 related to one of the land parcels sold in 2005. This loss was recorded to reflect the land at fair value based on its entitlement status at the time it was determined planned for disposition.

Attachment 14

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 previously depreciated operating communities, extraordinary gains or losses (as defined by GAAP), cumulative effect of a change in accounting principle 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 previously depreciated operating communities 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):


	Q2			Q2			YTD			YTD
	2005			2004			2005			2004
Net income	$	56,911		$	35,034		$	126,521		$	60,311
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(4,350	)		(4,350	)
Depreciation — real estate assets, including discontinued operations and joint venture adjustments		39,933			39,054			80,884			77,551
Minority interest, including discontinued operations		303			912			780			1,239
Cumulative effect of change in accounting principle		—			—			—			(4,547	)
Gain on sale of operating communities		(22,647	)		(12,375	)		(60,261	)		(12,375	)

FFO attributable to common stockholders	$	72,325		$	60,450		$	143,574		$	117,829


Average shares outstanding — diluted		74,589,236			73,037,484			74,417,505			72,791,470

EPS — diluted	$	0.74		$	0.46		$	1.65		$	0.79

FFO per common share — diluted	$	0.97		$	0.83		$	1.93		$	1.62

Projected FFO, as provided within this release in the Company’s outlook, 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 third quarter and full year 2005 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) — Q3 05	$	2.57		$	2.61
Projected depreciation (real estate related)		0.51			0.55
Projected gain on sale of operating communities		(2.22	)		(2.26	)

Projected FFO per share (diluted) — Q3 05	$	0.86		$	0.90


Projected EPS (diluted) — Full Year 2005	$	5.34		$	5.42
Projected depreciation (real estate related)		2.12			2.20
Projected gain on sale of operating communities		(3.81	)		(3.89	)

Projected FFO per share (diluted) — Full Year 2005	$	3.65		$	3.73

Attachment 14 (continued)

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 2005, Established Communities are communities that have Stabilized Operations as of January 1, 2004 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. During the second quarter of 2005, the Company changed the classification of certain communities to reflect changes in the Company’s disposition program. All amounts for Established Communities have been adjusted from amounts previously reported to reflect this new classification.

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excludes corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management, 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 real estate assets, cumulative effect of change in accounting principle and income from discontinued operations. The Company considers NOI to be an appropriate supplemental measure to net income of operating performance of a community or communities 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.

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):


	Q2			Q2			Q1			YTD			YTD
	2005			2004			2005			2005			2004
Net income	$	56,911		$	35,034		$	69,610		$	126,521		$	60,311
Property management and other indirect operating expenses		7,594			7,121			7,129			14,722			13,694
Corporate-level other income		(1,441	)		(206	)		(613	)		(2,054	)		(747	)
Investments and investment management		1,171			1,711			992			2,164			2,551
Interest income		(270	)		(36	)		(31	)		(301	)		(56	)
Interest expense		32,379			32,416			32,153			64,533			64,610
General and administrative expense		6,262			4,486			7,159			13,421			9,200
Joint venture income, minority interest and venture partner interest in profit-sharing		159			484			(6,070	)		(5,910	)		464
Depreciation expense		40,202			38,949			40,966			81,168			77,295
Cumulative effect of change in accounting principle		—			—			—			—			(4,547	)
Gain on sale of real estate assets		(27,264	)		(12,375	)		(37,613	)		(64,878	)		(12,375	)
Income from discontinued operations		(793	)		(2,764	)		(1,659	)		(2,452	)		(6,002	)

NOI from continuing operations	$	114,910		$	104,820		$	112,023		$	226,934		$	204,398


Established:
Northeast	$	27,742		$	27,901		$	27,368		$	55,110		$	53,747
Mid-Atlantic		11,974			11,614			11,729			23,702			23,335
Midwest		1,798			1,547			1,677			3,475			3,120
Pacific NW		4,812			4,431			4,795			9,608			8,943
No. California		25,964			25,317			25,680			51,644			50,601
So. California		8,673			8,205			8,645			17,318			16,422

Total Established		80,963			79,015			79,894			160,857			156,168

Other Stabilized		16,042			14,417			14,765			30,808			26,483
Development/Redevelopment		17,905			11,388			17,364			35,269			21,747

NOI from continuing operations	$	114,910		$	104,820		$	112,023		$	226,934		$	204,398

Attachment 14 (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 June 30, 2005). A reconciliation of NOI from communities sold or held for sale to net income for these communities for the second quarter of 2005 is as follows (dollars in thousands):


	Q2		Q2		YTD		YTD
	2005		2004		2005		2004
Income from discontinued operations	$	793	$	2,764	$	2,452	$	6,002
Interest expense, net		—		118		—		371
Minority interest expense		—		12		—		25
Depreciation expense		—		1,224		140		2,575

NOI from discontinued operations	$	793	$	4,118	$	2,592	$	8,973


NOI from assets sold	$	304	$	3,720	$	1,705	$	8,194
NOI from assets held for sale		489		398		887		779

NOI from discontinued operations	$	793	$	4,118	$	2,592	$	8,973

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 (or as of the date of the buyer’s valuation in the case of dispositions), 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 Company’s share of the Total Capital Cost of each community, based on its percentage ownership.

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.

Attachment 14 (continued)

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 rental revenue from Established Communities in conformity with GAAP to rental revenue (with concessions on a cash basis) is as follows (dollars in thousands):


	Q2			Q2			Q1			YTD			YTD
	2005			2004			2005			2005			2004
Rental revenue (GAAP basis)	$	118,352		$	115,260		$	116,577		$	234,930		$	229,260
Concessions amortized		4,445			4,825			4,661			9,106			9,451
Concessions granted		(4,254	)		(5,042	)		(3,233	)		(7,488	)		(8,938	)

Rental revenue (with concessions on a cash basis)	$	118,543		$	115,043		$	118,005		$	236,548		$	229,773


% change — GAAP revenue					2.7	%		1.5	%					2.5	%
% change — cash revenue					3.0	%		0.5	%					2.9	%

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 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 for the six months ended June 30, 2005 to gain on sale in accordance with GAAP is presented on Attachment 13. For the one disposition that occurred subsequent to June 30, 2005, the Economic Gain of $29,900,000 represents a GAAP gain of $33,400,000 less accumulated depreciation of $3,500,000.

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 — $300 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 2.5% — 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.

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. Total Capital Cost for communities identified as having joint venture ownership, either during construction or upon construction completion, represents the total projected joint venture contribution amount.

Attachment 14 (continued)

Leverage is calculated by the Company as total debt as a percentage of Total Market Capitalization. Total 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 June 30, 2005 is as follows (dollars in thousands):


Total debt	$	2,440,099

Common stock		5,921,052
Preferred stock		100,000
Operating partnership units		37,994
Total debt		2,440,099

Total market capitalization		8,499,145


Debt as % of capitalization		28.7	%

Because Leverage changes with fluctuations in the Company’s stock price, which occurs regularly, the Company’s Leverage may change even when the Company’s earnings, interest and debt levels remain stable. Investors should also note that the net realizable value of the Company’s assets in liquidation is not easily determinable and may differ substantially from the Company’s Total Market Capitalization.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s Interest Coverage, EBITDA and cash flow from operations, the Company believes that investors and creditors view Unencumbered NOI as a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the six months ended June 30, 2005 is as follows (dollars in thousands):


NOI for Established Communities	$	160,857
NOI for Other Stabilized Communities		30,808
NOI for Development/Redevelopment Communities		35,269
NOI for discontinued operations		2,592

Total NOI generated by real estate assets		229,526
NOI on encumbered assets		35,050

NOI on unencumbered assets		194,476

Unencumbered NOI		84.7	%

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 gains on sale of partnership interests.

Attachment 14 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the second quarter of 2005 are as follows (dollars in thousands):


Net income	$	56,911
Interest income		(270	)
Interest expense		32,379
Depreciation expense		40,202


EBITDA	$	129,222


EBITDA from continuing operations	$	101,165
EBITDA from discontinued operations		28,057


EBITDA	$	129,222


EBITDA from continuing operations	$	101,165

Interest expense		32,379
Interest income		(270	)
Dividends attributable to preferred stock		2,175

Interest charges		34,284

Interest coverage		3.0

In the calculations of EBITDA above, EBITDA from discontinued operations includes $27,264,000 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 estimated stabilized 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. The weighted average Unleveraged IRR for sold communities is weighted based on all cash flows over the holding period for each respective community, including net sales proceeds.


			% of Total			Average
			Market			Interest			Remaining
Debt Composition	Amount		Cap			Rate (1)			Maturities (2)

Conventional Debt										2005	$	4,514
Long-term, fixed rate	$	1,854,626		21.8	%					2006	$	158,074
Long-term, variable rate		81,460		1.0	%					2007	$	291,474
Variable rate credit facility										2008	$	213,505
and short term notes		178,874		2.1	%					2009	$	232,063

Subtotal, Conventional		2,114,960		24.9	%		6.3	%


Tax-Exempt Debt
Long-term, fixed rate		196,587		2.3	%
Long-term, variable rate		128,552		1.5	%

Subtotal, Tax-Exempt		325,139		3.8	%		5.6	%


Total Debt	$	2,440,099		28.7	%		6.2	%


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home
Q205	$	6,036	$	4,321	$	214
Q105	$	5,662	$	5,981	$	25
Q404	$	5,231	$	5,193	$	104
Q304	$	5,257	$	4,051	$	90


(1)		Total represents each region’s % of total NOI from the Company, including discontinued operations.
(2)		Variance in operating expenses is primarily due to the timing of successful property tax appeals in 2004 and 2005.

•		Redevelopment commenced on Hobbits Grove, located in the Baltimore, MD area, and is expected to be completed for a Total Capital Cost to the Fund of $29,400,000 (of which $25,500,000 was incurred prior to redevelopment); and

•		Avalon at Poplar Creek, located in the Chicago, IL area, was acquired on July 1, 2005 for a purchase price of $24,950,000.

•		FFO
•		Projected FFO
•		Established Communities
•		NOI
•		Market Rents
•		Economic Occupancy
•		Rental revenue with concessions on a cash basis
•		Total Capital Cost
•		Economic Gain
•		Unleveraged IRR
•		Leverage
•		Total Market Capitalization
•		Unencumbered NOI
•		Interest Coverage

⁽¹⁾		Includes credit enhancement fees, facility fees, trustees’ fees, etc.

⁽²⁾		Excludes amounts under the $500,000 variable rate credit facility that, after all extensions, matures in 2008.