Exhibit 99.2

For Immediate News Release

October 31, 2011

AVALONBAY COMMUNITIES, INC. ANNOUNCES

THIRD QUARTER 2011 OPERATING RESULTS

(Arlington, VA) AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) reported today that Net Income Attributable to Common Stockholders (“Net Income”) for the quarter ended September 30, 2011 was $44,824,000. This resulted in Earnings per Share – diluted (“EPS”) of $0.49 for the quarter ended September 30, 2011, compared to EPS of $0.29 for the comparable period of 2010, an increase of 69.0%. For the nine months ended September 30, 2011, EPS was $1.33 compared to $1.76 for the comparable period of 2010, a per share decrease of 24.4%.

The increase in EPS for the quarter ended September 30, 2011 over the prior year period is due primarily to an increase in Net Operating Income (“NOI”) from communities. The decrease in EPS for the nine months ended September 30, 2011 from the prior year period is due primarily to a decrease in real estate sales and related gains in 2011, offset partially by an increase in NOI from communities.

Funds from Operations attributable to common stockholders - diluted (“FFO”) per share for the quarter ended September 30, 2011 increased 19.4% to $1.17 from $0.98 for the comparable period of 2010. FFO per share for the nine months ended September 30, 2011 increased 13.0% to $3.38 from $2.99 for the comparable period of 2010. Adjusting for the non-routine items detailed in Attachment 14, some of which are presented in the table below, FFO per share for the three and nine months ended September 30, 2011 would have increased by 18.2% and 12.8%, respectively from the prior year periods.

The following table provides a comparison of the Company’s actual results to the outlook provided in its second quarter 2011 earnings release in July 2011:

Third Quarter 2011 Results
Comparison to July 2011 Outlook
	Per Share
Projected FFO per share (1)	$	1.17
Common equity offering		(0.03)
Overhead, interest and other		0.03
Community NOI		0.01
Land activity (2)		(0.01)
FFO per share 3Q 2011 Reported Results	$	1.17

(1) Represents the mid-point of the Company’s July 2011 outlook.

(2) See discussion under Land Activity.

Commenting on the Company’s results, Bryce Blair, Chairman and CEO, said, “NOI growth topped 9% and drove FFO per share growth of more than 19%. Apartment fundamentals remain favorable and with solid core portfolio growth, new development activity and a strong balance sheet, we are well positioned for earnings growth into 2012.”

Operating Results for the Quarter Ended September 30, 2011 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $25,478,000, or 11.2%, to $253,188,000. For Established Communities, rental revenue increased 5.8%, attributable to an increase in Average Rental Rates of 5.9%, offset by a decrease in Economic Occupancy of 0.1%. Total revenue for Established Communities increased $9,690,000 to $179,146,000. Operating expenses for Established Communities decreased $540,000, or 0.9%, to $58,606,000. Accordingly, NOI for Established Communities increased by 9.3%, or $10,230,000, to $120,540,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the third quarter of 2011 compared to the third quarter of 2010:

Q3 2011 Compared to Q3 2010
	Rental Revenue	Operating Expenses	NOI	% of NOI (1)
New England	6.0%	1.7%	8.6%	18.8%
Metro NY/NJ	4.7%	(5.4%)	10.0%	28.4%
Mid-Atlantic/Midwest	4.8%	2.0%	6.1%	16.0%
Pacific NW	6.3%	4.8%	7.1%	4.5%
No. California	8.5%	2.9%	11.1%	18.7%
So. California	5.8%	(6.4%)	13.1%	13.6%
Total	5.8%	(0.9%)	9.3%	100.0%
(1) Total represents each region’s % of total NOI from the Company, including discontinued operations.

Copyright ^© 2011 AvalonBay Communities, Inc. All Rights Reserved

Operating Results for the Nine Months Ended September 30, 2011 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $66,339,000, or 9.9% to $733,855,000. For Established Communities, rental revenue increased 4.7% due to an increase in Average Rental Rates of 4.9%, offset by a decrease in Economic Occupancy of 0.2%. Total revenue for Established Communities increased $23,339,000 to $525,028,000. Operating expenses for Established Communities decreased $2,010,000, or 1.2% to $170,835,000. Accordingly, NOI for Established Communities increased by $25,349,000, or 7.7%, to $354,193,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010:

YTD 2011 Compared to YTD 2010
	Rental Revenue	Operating Expenses	NOI	% of NOI (1)
New England	5.2%	(0.4%)	8.6%	19.0%
Metro NY/NJ	4.1%	(2.2%)	7.3%	28.0%
Mid-Atlantic/Midwest	4.7%	(0.2%)	6.8%	16.2%
Pacific NW	4.1%	2.7%	4.7%	4.4%
No. California	6.2%	(0.5%)	9.3%	19.3%
So. California	3.4%	(4.3%)	7.8%	13.1%
Total	4.7%	(1.2%)	7.7%	100.0%
(1) Total represents each region’s % of total NOI from the Company, including discontinued operations.

Development Activity

During the third quarter of 2011, the Company commenced construction of four communities: Avalon Irvine II, located in Irvine, CA, Avalon Ballard, located in Seattle, WA, Avalon Shelton III, located in Shelton, CT, and Avalon Hackensack, located in Hackensack, NJ. These four communities will contain 921 apartment homes and will be developed for an estimated Total Capital Cost of $210,100,000.

During the third quarter of 2011, the Company completed two communities: Avalon Springs II, located in Wilton, CT, containing 100 apartment homes and Avalon Brandemoor II, located in Lynnwood, WA, containing 82 apartment homes, for an aggregate Total Capital Cost of $45,100,000.

During the third quarter of 2011 the Company acquired six land parcels for an aggregate purchase price of approximately $65,270,000 for the development of 1,740 apartment homes with an expected Total Capital Cost of $374,650,000. The Company has started or

anticipates starting construction within the next three to six months on all six of these land parcels.

Redevelopment Activity

During the third quarter of 2011, the Company commenced the redevelopment of three communities: Avalon Foster City, located in Foster City, CA, Avalon at Ballston – Washington Towers, located in Arlington, VA, and Avalon Santa Margarita, located in Rancho Santa Margarita, CA. These communities contain 933 apartment homes and will be redeveloped for an estimated Total Capital Cost of $28,400,000, excluding costs incurred prior to redevelopment.

During the third quarter of 2011, the Company completed the redevelopment of three communities: Avalon Princeton Junction, located in West Windsor, NJ , Avalon Commons, located in Smithtown, NY and Avalon Pleasanton, located in Pleasanton, CA. These communities contain 1,280 apartment homes and were redeveloped for $39,000,000, excluding costs incurred prior to redevelopment.

Land Activity

During the third quarter of 2011, the Company evaluated its land portfolio, disposing of three unimproved land parcels, further impairing two land parcels and impairing a joint venture investment in a for-sale development.

The three unimproved land parcels that were sold are located in Canoga Park, CA, Kirkland, WA, and Danvers, MA. The Company sold these land parcels for $34,475,000 resulting in an aggregate gain in accordance with GAAP of $13,716,000. The Company had previously recorded aggregate impairment charges on two of these assets in prior years when it determined that it would no longer develop the assets. The pre-impairment basis of the three land parcels was $39,010,000, resulting in a net economic loss, net of disposition costs of $6,494,000.

The Company also further impaired two land parcels, located in Chicago, IL and Wheaton, MD, and impaired an investment in an unconsolidated development joint venture. The Company recorded an impairment charge of $14,052,000 in the third quarter of 2011 associated with these assets.

Investment and Investment Management Fund Activity

During the third quarter of 2011, AvalonBay Value Added Fund, L.P (“Fund I”, a private discretionary real estate investment vehicle in which the Company holds an equity interest of approximately 15%) sold Avalon Redondo Beach, located in Redondo Beach, CA. This community contains 105 apartment homes and was sold for $33,100,000. This disposition resulted in a gain in accordance with GAAP of $12,445,000 and an Economic Gain of $7,947,000. The Company’s share

Copyright © 2011 AvalonBay Communities, Inc. All Rights Reserved

of the gain in accordance with GAAP was approximately $1,743,000 and its share of the Economic Gain was approximately $1,062,000.

During the third quarter of 2011, AvalonBay Value Added Fund II, L.P. (“Fund II”, a private discretionary real estate investment vehicle in which the Company holds an equity interest of approximately 31%) acquired Captain Parker Arms, a garden-style community consisting of 94 apartment homes located in Lexington, MA. The community was acquired for a purchase price of $20,850,000.

In October 2011, Fund II acquired Highlands at Rancho San Diego, consisting of 676 apartment homes located in San Diego, CA for a purchase price of $124,000,000. In conjunction with the acquisition, Fund II is extinguishing an outstanding mortgage note secured by the community, incurring a prepayment penalty, of which the Company’s proportionate share is approximately $950,000. The Company’s outlook for the fourth quarter and full year 2011 includes the impact of this prepayment penalty.

At October 31, 2011, Fund II had invested $771,330,000. While the investment period for Fund II closed in August 2011, additional acquisition activity may occur associated with active acquisition candidates identified prior to the end of the investment period.

Financing, Liquidity and Balance Sheet Statistics

In September 2011, the Company entered into a variable rate unsecured credit facility with an available borrowing capacity of $750,000,000 and a 4-year term, plus a one year extension option as well as a nonbinding option to expand the facility to $1,300,000,000, subject to lender approval. Concurrent with the establishment of the new credit facility, the Company cancelled its existing $1,000,000,000 variable rate unsecured credit facility which was scheduled to expire in November 2011.

The Company had no amounts outstanding under the new credit facility and had $52,945,000 outstanding in letters of credit as of September 30, 2011.

At September 30, 2011, the Company had $759,027,000 in unrestricted cash and cash in escrow.

Unencumbered NOI as a percentage of total NOI generated by real estate assets for the nine months ended September 30, 2011 was 69%. Interest Coverage for the third quarter of 2011 was 3.5 times.

New Financing Activity

In August 2011, the Company issued 5,865,000 shares of its common stock at a net price of $128.25 per share. Net proceeds after underwriting discounts of approximately $725,850,000 are expected to be used to fund the Company’s investment activity, including development, redevelopment and acquisitions and for general corporate purposes.

In November 2010, the Company commenced its second continuous equity offering program (“CEP II”), under which the Company can issue up to $500,000,000 of common stock during a 36-month period. During the three months ended September 30, 2011, the Company sold 256,167 shares at an average price of $127.90 per share, for net proceeds of $32,271,000. From inception of CEP II through September 30, 2011, the Company has issued 2,490,765 shares at an average price of $119.84 per share for net aggregate proceeds of $294,000,000.

Debt Repayment Activity

In August 2011, the Company repaid, at par, a 7.25% coupon fixed rate secured mortgage note in the amount of $7,191,000 in advance of its October 2011 scheduled maturity date.

In September 2011, the Company repaid a 6.63% coupon fixed rate unsecured note in the amount of $189,900,000 in accordance with its scheduled maturity date.

In October 2011, the Company repaid a 5.88% coupon fixed rate secured mortgage note in the amount of $54,584,000 in advance of its January 2019 scheduled maturity. As part of this transaction, the Company incurred a prepayment penalty of $1,092,000 which will be recognized as loss on early retirement of debt in the fourth quarter of 2011. This prepayment penalty is included in the Company’s financial outlook for the fourth quarter and full year 2011, provided below.

Fourth Quarter and Full Year 2011 Financial Outlook

For the fourth quarter of 2011, the Company expects EPS in the range of $0.54 to $0.58. The Company expects EPS for the full year 2011 to be in the range of $1.84 to $1.88.

The Company expects Projected FFO per share in the range of $1.19 to $1.23 for the fourth quarter of 2011 and Projected FFO per share for the full year 2011 to be in the range of $4.57 to $4.61.

The following table presents a comparison of the Company’s current full year 2011 outlook to the outlook provided by the Company in July 2011 in conjunction with its second quarter 2011 earnings release.

Copyright © 2011 AvalonBay Communities, Inc. All Rights Reserved

Full Year 2011 Results
Comparison to July 2011 Outlook
	Per Share
Projected FFO per share July 2011 Outlook(1)		$ 4.67
Common equity offering		(0.08	)
Interest, overhead and other		0.02
Debt prepayment penalties		(0.02	)
Projected FFO per share October 2011 Outlook(1)		$ 4.59

(1) Represents the mid-point of the Company’s Outlook.

The Company’s outlook for the fourth quarter and full year 2011 includes non-routine items and other costs related to acquisitions, dispositions or other transactions that have occurred as of the date of this earnings release. Any costs related to acquisitions, dispositions or other transactions that may occur subsequent to the date of this earnings release, including expensed acquisition costs and mortgage prepayment penalties, are not included in the Company’s fourth quarter and full year 2011 outlook.

The Company is currently pursuing the sale of two apartment communities that could have an impact on earnings and FFO during the fourth quarter of 2011. These potential sales are not included in the financial outlook provided above.

One community is subject to a ground lease where lease expenses charged to earnings exceed actual cash lease payments. The Company previously expected that the excess amounts expensed over actual cash lease payments during the current year would be reversed and recognized as a reduction in full year lease payments (reducing operating expenses) upon sale. Prior year excess costs were expected to, and will be recorded as an increase in the expected gain on the asset sold.

We now expect that, if the asset is sold during the fourth quarter, current year-to-date excess amounts expensed over actual cash lease payments will also be included as an addition to the gain on sale (even though the excess costs were treated as a reduction in FFO in the current year) and will not be included as an increase in FFO per share.

The Company is marketing a community with secured fixed rate debt totaling $94,572,000. The Company expects to record a charge to earnings for early extinguishment of debt of approximately $3,400,000 at the date of sale or at the early redemption of the debt in anticipation of the sale, which is not reflected in the outlook provided above.

Fourth Quarter 2011 Conference/Event Schedule

The Company is scheduled to participate in the NAREIT REITWorld 2011 conference in Dallas, TX on November     15-17 and real estate conferences hosted

by Goldman Sachs and Barclays Capital in New York, NY on December 1 and December 6, respectively. During these conferences, Management may discuss the Company’s current operating environment; operating trends; development, redevelopment, disposition and acquisition activity; financial outlook; portfolio strategy and other business and financial matters affecting the Company. Should a webcast be available at any of these conferences, details on access will be available in advance of the conference event at the Company’s website at http://www.avalonbay.com/events.

Other Matters

The Company will hold a conference call on November 1, 2011 at 1:00 PM ET to review and answer questions about this release, its third quarter 2011 results, the Attachments (described below) and related matters. To participate in the call, dial 1-877-510-2397 domestically and 1-763-416-6924 internationally, and use Access Code: 13318082.

To hear a replay of the call, which will be available from November 1, 2011 at 5:00 PM ET to November 4, 2011 at 11:59 PM ET, dial 1-855-859-2056 domestically and 1-404-537-3406 internationally, and use Access Code: 13318082. 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 at http://www.avalonbay.com/earnings. To receive future press releases via e-mail, please submit a request through http://www.avalonbay.com/email.

About AvalonBay Communities, Inc.

As of September 30, 2011, the Company owned or held a direct or indirect ownership interest in 199 apartment communities containing 57,426 apartment homes in ten states and the District of Columbia, of which 15 communities were under construction and eight communities were under reconstruction. The Company 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 may be found on the Company’s website at http://www.avalonbay.com. For additional information, please contact John Christie, Senior Director of Investor Relations, at 1-703-317-4747 or Thomas J. Sargeant, Chief Financial Officer, at 1-703-317-4635.

Copyright © 2011 AvalonBay Communities, Inc. All Rights Reserved

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,” “anticipates,” “projects,” “intends,” “believes,” “outlook” 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: we may abandon development or redevelopment opportunities for which we have already incurred costs; adverse capital and credit market conditions may affect our access to various sources of capital and/or cost of capital, which may affect our business activities, earnings and common stock price, among other things; 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; 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 or may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary

governmental permits and authorizations; and increases in costs of materials, labor or other expenses may result in communities that we develop or redevelop failing to achieve expected profitability. 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, 2010 under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements” and in subsequent quarterly reports on Form 10-Q.

The Company does not undertake a duty to update forward-looking statements, including its expected fourth quarter and full year 2011 operating results. 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.

Definitions and Reconciliations

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and further explained on Attachment 14, “Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.” Attachment 14 is included in the full earnings release available at the Company’s website at http://www.avalonbay.com/earnings.

Copyright © 2011 AvalonBay Communities, Inc. All Rights Reserved

THIRD QUARTER 2011

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 Sheet	Attachment 3
Sequential Operating Information by Business Segment	Attachment 4
Market Profile
Quarterly Revenue and Occupancy Changes (Established Communities)	Attachment 5
Sequential Quarterly Revenue and Occupancy Changes (Established Communities)	Attachment 6
Year-to-Date Revenue and Occupancy Changes (Established Communities)	Attachment 7
Operating Expenses (“Opex”) (Established Communities)	Attachment 8
Development, Redevelopment, Acquisition and Disposition Profile
Development Communities	Attachment 9
Redevelopment Communities	Attachment 10
Summary of Development and Redevelopment Community Activity	Attachment 11
Future Development	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, Section 27A of the Securities Act of 1933 as amended, 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, 2010 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.

Selected Operating and Other Information

September 30, 2011

(Dollars in thousands except per share data)

(unaudited)

SELECTED OPERATING INFORMATION

	Q3 2011		Q3 2010		% Change		YTD 2011		YTD 2010		% Change
Net income attributable to common stockholders		$    44,824		$    24,654		81.8%		$    118,537		$    148,304		(20.1%)
Per common share - basic		$0.49		$0.29		69.0%		$    1.34		$    1.77		(24.3%)
Per common share - diluted		$0.49		$0.29		69.0%		$    1.33		$    1.76		(24.4%)
Funds from Operations		$    107,587		$    84,462		27.4%		$    301,072		$    251,524		19.7%
Per common share - diluted		$1.17		$0.98		19.4%		$3.38		$    2.99		13.0%
Dividends declared - common		$    84,801		$    76,117		11.4%		$    241,876		$    225,854		7.1%
Per common share		$    0.8925		$    0.8925		0.0%		$    2.6775		$    2.6775		0.0%
Common shares outstanding		95,015,548		85,284,865		11.4%		95,015,548		85,284,865		11.4%
Outstanding operating partnership units		7,707		15,325		(49.7%)		7,707		15,325		(49.7%)
Total outstanding shares and units		95,023,255		85,300,190		11.4%		95,023,255		85,300,190		11.4%
Average shares and participating securities outstanding - basic		91,810,788		85,203,030		7.8%		88,616,156		83,628,002		6.0%
Weighted shares - basic		91,388,357		84,968,804		7.6%		88,312,930		83,385,833		5.9%
Average operating partnership units outstanding		7,707		15,346		(49.8%)		8,559		15,349		(44.2%)
Effect of dilutive securities		944,304		784,546		20.4%		878,009		728,712		20.5%
Average shares outstanding - diluted		92,340,368		85,768,696		7.7%		89,199,498		84,129,894		6.0%

DEBT COMPOSITION  AND MATURITIES									CAPITALIZED COSTS
Debt Composition (1)	Amount		Average Interest Rate (2)		Remaining Maturities (1)						Cap Interest		Cap Overhead		Non-Rev Capex per Home
Conventional Debt						2011	$3,885			Q311		$ 8,946		$ 5,893		$ 181
Long-term, fixed rate		$    3,054,373				2012	$411,170			Q211		$ 7,673		$ 6,058		$ 128
Long-term, variable rate		$98,946				2013	$433,179			Q111		$ 6,343		$ 5,868		$ 53
Variable rate facilities (3)		--				2014	$199,131			Q410		$ 6,128		$ 5,399		$ 175
Subtotal, Conventional		$    3,153,319		5.6%		2015	$419,480			Q310		$ 7,774		$ 5,179		$ 122
Tax-Exempt Debt								COMMUNITY INFORMATION
Long-term, fixed rate		$    182,976														Apartment
Long-term, variable rate		$    449,535										Communities				Homes
Subtotal, Tax-Exempt		$    632,511		3.2%				Current Communities				184				53,826
								Development Communities				15				3,600
Total Debt		$    3,785,830		5.2%				Development Rights				29				8,679

(1) Excludes debt associated with assets classified as held for sale.

(2) Includes costs of financing such as credit enhancement fees, trustees’ fees, etc.

(3) Represents the Company’s $750 million unsecured credit facility, under which no amounts were drawn at September 30,

Attachment 2

AvalonBay Communities, Inc.

Detailed Operating Information

September 30, 2011

(Dollars in thousands except per share data)

(unaudited)

	Q3 2011		Q3 2010		% Change		YTD 2011		YTD 2010		% Change
Revenue:
Rental and other income		$ 248,644		$ 223,758		11.1%		$ 720,535		$ 652,000		10.5%
Management, development and other fees		2,433		1,800		35.2%		7,085		5,334		32.8%
Total		251,077		225,558		11.3%		727,620		657,334		10.7%
Operating expenses:
Direct property operating expenses, excluding property taxes		57,894		55,835		3.7%		164,352		158,789		3.5%
Property taxes		24,535		23,225		5.6%		73,238		69,191		5.8%
Property management and other indirect operating expenses		10,162		8,971		13.3%		29,553		27,287		8.3%
Total operating expenses		92,591		88,031		5.2%		267,143		255,267		4.7%
Interest expense, net		(43,970)		(44,262)		(0.7%)		(134,096)		(128,260)		4.6%
General and administrative expense		(6,087)		(7,039)		(13.5%)		(21,524)		(19,975)		7.8%
Joint venture income (1)		2,615		(325)		(904.6%)		3,513		364		865.1%
Investments and investment management expense		(1,328)		(1,026)		29.4%		(3,860)		(3,111)		24.1%
Expensed acquisition, development and other pursuit costs		(633)		(737)		(14.1%)		(2,636)		(1,685)		56.4%
Depreciation expense		(62,262)		(57,926)		7.5%		(185,071)		(169,819)		9.0%
Impairment loss		(14,052)		--		N/A		(14,052)		--		N/A
Gain on sale of land		13,716		--		N/A		13,716		--		N/A
Income from continuing operations		46,485		26,212		77.3%		116,467		79,581		46.4%
Discontinued operations:
Loss from discontinued operations (2)		(1,808)		(2,232)		(19.0%)		(5,737)		(4,387)		30.8%
Gain on sale of real estate		--		--		N/A		7,675		72,220		(89.4%)
Total discontinued operations		(1,808)		(2,232)		(19.0%)		1,938		67,833		(97.1%)
Net income		44,677		23,980		86.3%		118,405		147,414		(19.7%)
Net loss attributable to redeemable noncontrolling interests		147		674		(78.2%)		132		890		(85.2%)
Net income attributable to common stockholders		$ 44,824		$ 24,654		81.8%		$ 118,537		$ 148,304		(20.1%)
Net income attributable to common stockholders per common share - basic		$ 0.49		$ 0.29		69.0%		$ 1.34		$ 1.77		(24.3%)
Net income attributable to common stockholders per common share - diluted		$ 0.49		$ 0.29		69.0%		$ 1.33		$ 1.76		(24.4%)

(1) Amounts for the three and nine months ended September 30, 2011 include $1,743 related to the sale of an unconsolidated community.

(2) Reflects net income or loss for investments in real estate classified as held for sale at September 30, 2011 and investments in real estate sold during the period from January 1, 2010 through September 30, 2011. The following table details income (loss) from discontinued operations for the periods shown:

	Q3 2011		Q3 2010		YTD 2011		YTD 2010
Rental income		$ 2,111		$ 2,152		$ 6,235		$ 10,182
Operating and other expenses		(3,445)		(3,557)		(10,088)		(12,061)
Depreciation expense		(474)		(827)		(1,884)		(2,508)
Loss from discontinued operations		$ (1,808)		$ (2,232)		$ (5,737)		$ (4,387)

Attachment 3

AvalonBay Communities, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

		September 30,  2011		December 31, 2010
Real estate	$	8,326,086	$	8,084,574
Less accumulated depreciation		(1,825,094)		(1,682,845)
Net operating real estate		6,500,992		6,401,729
Construction in progress, including land		483,007		309,704
Land held for development		273,458		184,150
Operating real estate assets held for sale, net		58,326		60,062
Total real estate, net		7,315,783		6,955,645
Cash and cash equivalents		690,049		305,644
Cash in escrow		68,978		173,343
Resident security deposits		23,779		22,047
Other assets		390,068		364,809
Total assets	$	8,488,657	$	7,821,488
Unsecured notes, net	$	1,629,234	$	1,820,141
Notes payable, net		2,155,859		2,247,516
Resident security deposits		37,550		33,785
Liabilities related to assets held for sale		122,996		115,078
Other liabilities		379,912		275,115
Total liabilities	$	4,325,551	$	4,491,635
Redeemable noncontrolling interests		6,844		14,262
Stockholders’ equity		4,156,262		3,315,591
Total liabilities and stockholders’ equity	$	8,488,657	$	7,821,488

Attachment 4

AvalonBay Communities, Inc.

Sequential Operating Information by Business Segment (1)

September 30, 2011

(Dollars in thousands)

(unaudited)

	Total     Homes		Quarter Ended September 30, 2011		Quarter Ended    June 30, 2011		Quarter Ended    March 31, 2011		Quarter Ended  December 31, 2010
RENTAL REVENUE
Established (2)		31,611		$ 179,062		$ 174,651		$ 171,018		$ 169,781
Other Stabilized (2) (3)		6,511		34,788		33,651		31,542		30,091
Redevelopment (2)		4,899		24,909		24,201		23,506		23,332
Development (2)		4,258		8,829		7,014		5,191		3,861
Total Consolidated Communities		47,279		$ 247,588		$ 239,517		$ 231,257		$ 227,065
OPERATING EXPENSE
Established				$ 58,606		$ 55,240		$ 56,990		$ 57,170
Other Stabilized				12,447		12,190		11,552		10,807
Redevelopment				7,576		7,194		7,022		7,655
Development				3,801		2,163		2,809		2,351
Total Consolidated Communities				$ 82,430		$ 76,787		$ 78,373		$ 77,983
NOI (2)
Established				$ 120,540		$ 119,487		$ 114,165		$ 112,841
Other Stabilized				23,309		22,274		20,025		19,830
Redevelopment				17,343		17,021		16,499		15,697
Development				5,028		4,861		2,390		1,505
Total Consolidated Communities				$ 166,220		$ 163,643		$ 153,079		$ 149,873
AVERAGE REVENUE PER OCCUPIED HOME
Established				$ 1,973		$ 1,917		$ 1,879		$ 1,873
Other Stabilized				1,834		1,771		1,871		1,854
Redevelopment				1,795		1,736		1,692		1,674
Development (4)				1,981		1,885		1,902		1,909
ECONOMIC OCCUPANCY
Established				95.7%		96.1%		96.0%		95.6%
Other Stabilized				95.5%		95.8%		95.4%		92.3%
Redevelopment				94.4%		94.9%		94.5%		94.9%
Development (5)				60.0%		63.5%		69.5%		51.4%
STABILIZED COMMUNITIES TURNOVER 2011 / 2010 (6)				67.3% / 62.8%		55.8% / 56.6%		43.5% / 42.1%		45.4%

(1) Excludes amounts related to communities that have been sold, or that are classified as held for sale.

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

(3) Results for these communities for quarters prior to January 1, 2011 may reflect community operations prior to stabilization, including periods of lease-up, such that occupancy levels are below what would be considered stabilized. In addition, period-over-period comparability for these communities is impacted by acquisition activity, results for which will not impact quarters prior to acquisition.

(4) Average revenue per occupied home for Development Communities includes only those assets with at least one full quarter of lease-up activity and is subject to variability due to the inclusion of transactional fees, which are typically higher during lease-up than post-stabilization.

(5) Economic Occupancy for Development communities is calculated based on the communities currently generating revenue. For detail of occupancy rates for communities under construction, and communities for which construction has completed, but the community has not yet reached stabilized occupancy, see Attachment #9, Development Communities.

(6) Turnover represents the annualized number of units turned over during the quarter, divided by the total number of apartment homes for communities with stabilized occupancy for the respective reporting period.

Attachment 5

AvalonBay Communities, Inc.

Quarterly Revenue and Occupancy Changes - Established Communities (1)

September 30, 2011

	Apartment Homes		Average Rental Rates (2)						Economic Occupancy						Rental Revenue ($000’s) (3)
			Q3 11		Q3 10		% Change		Q3 11		Q3 10		% Change		Q3 11		Q3 10		% Change
New England
Boston, MA		4,866		$ 2,040		$ 1,904		7.1%		95.9%		96.4%		(0.5%)		$ 28,545		$ 26,783		6.6%
Fairfield-New Haven, CT		2,449		2,086		1,977		5.5%		96.1%		96.7%		(0.6%)		14,728		14,034		4.9%
New England Average		7,315		2,055		1,927		6.6%		95.9%		96.5%		(0.6%)		43,273		40,817		6.0%
Metro NY/NJ
New York, NY		3,099		2,865		2,716		5.5%		96.1%		96.2%		(0.1%)		25,594		24,285		5.4%
New Jersey		2,462		1,983		1,913		3.7%		96.2%		95.9%		0.3%		14,087		13,550		4.0%
Long Island, NY		1,420		2,449		2,344		4.5%		95.8%		96.2%		(0.4%)		9,993		9,601		4.1%
Metro NY/NJ Average		6,981		2,469		2,358		4.7%		96.1%		96.1%		0.0%		49,674		47,436		4.7%
Mid-Atlantic/Midwest
Washington Metro		5,349		1,879		1,782		5.4%		95.3%		95.9%		(0.6%)		28,728		27,412		4.8%
Chicago, IL		601		1,548		1,477		4.8%		96.0%		95.9%		0.1%		2,677		2,553		4.9%
Mid-Atlantic/Midwest Average		5,950		1,845		1,752		5.3%		95.4%		95.9%		(0.5%)		31,405		29,965		4.8%
Pacific Northwest
Seattle, WA		2,533		1,334		1,250		6.7%		94.3%		94.7%		(0.4%)		9,553		8,985		6.3%
Pacific Northwest Average		2,533		1,334		1,250		6.7%		94.3%		94.7%		(0.4%)		9,553		8,985		6.3%
Northern California
San Jose, CA		2,790		2,004		1,829		9.6%		94.9%		95.1%		(0.2%)		15,921		14,559		9.4%
Oakland-East Bay, CA		1,569		1,499		1,405		6.7%		95.8%		96.3%		(0.5%)		6,764		6,369		6.2%
San Francisco, CA		470		2,520		2,334		8.0%		96.8%		95.3%		1.5%		3,441		3,142		9.5%
Northern California Average		4,829		1,890		1,742		8.5%		95.4%		95.4%		0.0%		26,126		24,070		8.5%
Southern California
Los Angeles, CA		1,911		1,715		1,640		4.6%		96.2%		95.7%		0.5%		9,456		8,993		5.1%
Orange County, CA		1,167		1,573		1,507		4.4%		95.9%		94.3%		1.6%		5,283		4,986		6.0%
San Diego, CA		925		1,614		1,542		4.7%		95.8%		93.5%		2.3%		4,292		4,013		7.0%
Southern California Average		4,003		1,651		1,579		4.6%		96.0%		94.8%		1.2%		19,031		17,992		5.8%
Average/Total Established		31,611		$ 1,973		$ 1,863		5.9%		95.7%		95.8%		(0.1%)		$ 179,062		$ 169,265		5.8%

(1) Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2010 such that a comparison of 2010 to 2011 is meaningful.

(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 5.7% between years.

Attachment 6

AvalonBay Communities, Inc.

*Sequential Quarterly* Revenue and Occupancy Changes - Established Communities

September 30, 2011

	Apartment Homes		Average Rental Rates (1)						Economic Occupancy						Rental Revenue ($000’s)
			Q3 11		Q2 11		% Change		Q3 11		Q2 11		% Change		Q3 11		Q2 11		% Change
New England
Boston, MA		4,866		$ 2,040		$ 1,975		3.3%		95.9%		96.1%		(0.2%)		$ 28,545		$ 27,722		3.0%
Fairfield-New Haven, CT		2,449		2,086		2,020		3.3%		96.1%		96.8%		(0.7%)		14,728		14,362		2.5%
New England Average		7,315		2,055		1,990		3.3%		95.9%		96.4%		(0.5%)		43,273		42,084		2.8%
Metro NY/NJ
New York, NY		3,099		2,865		2,764		3.7%		96.1%		96.3%		(0.2%)		25,594		24,737		3.5%
New Jersey		2,462		1,983		1,942		2.1%		96.2%		96.6%		(0.4%)		14,087		13,859		1.6%
Long Island, NY		1,420		2,449		2,393		2.3%		95.8%		96.8%		(1.0%)		9,993		9,867		1.3%
Metro NY/NJ Average		6,981		2,469		2,399		2.9%		96.1%		96.4%		(0.3%)		49,674		48,463		2.5%
Mid-Atlantic/Midwest
Washington Metro		5,349		1,879		1,848		1.7%		95.3%		95.3%		0.0%		28,728		28,250		1.7%
Chicago, IL		601		1,548		1,541		0.5%		96.0%		94.3%		1.7%		2,677		2,625		2.0%
Mid-Atlantic/Midwest Average		5,950		1,845		1,817		1.5%		95.4%		95.2%		0.2%		31,405		30,875		1.7%
Pacific Northwest
Seattle, WA		2,533		1,334		1,292		3.3%		94.3%		95.1%		(0.8%)		9,553		9,337		2.3%
Pacific Northwest Average		2,533		1,334		1,292		3.3%		94.3%		95.1%		(0.8%)		9,553		9,337		2.3%
Northern California
San Jose, CA		2,790		2,004		1,906		5.1%		94.9%		96.8%		(1.9%)		15,921		15,443		3.1%
Oakland-East Bay, CA		1,569		1,499		1,453		3.2%		95.8%		96.2%		(0.4%)		6,764		6,578		2.8%
San Francisco, CA		470		2,520		2,431		3.7%		96.8%		96.6%		0.2%		3,441		3,311		3.9%
Northern California Average		4,829		1,890		1,810		4.4%		95.4%		96.6%		(1.2%)		26,126		25,332		3.1%
Southern California
Los Angeles, CA		1,911		1,715		1,683		1.9%		96.2%		95.6%		0.6%		9,456		9,224		2.5%
Orange County, CA		1,167		1,573		1,542		2.0%		95.9%		96.5%		(0.6%)		5,283		5,209		1.4%
San Diego, CA		925		1,614		1,567		3.0%		95.8%		94.9%		0.9%		4,292		4,127		4.0%
Southern California Average		4,003		1,651		1,615		2.2%		96.0%		95.7%		0.3%		19,031		18,560		2.5%
Average/Total Established		31,611		$ 1,973		$ 1,917		2.9%		95.7%		96.1%		(0.4%)		$ 179,062		$ 174,651		2.5%

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

Attachment 7

AvalonBay Communities, Inc.

Year-to-Date Revenue and Occupancy Changes - Established Communities (1)

September 30, 2011

	Apartment Homes		Average Rental Rates (2)						Economic Occupancy						Rental Revenue ($000’s) (3)
			YTD 11		YTD 10		% Change		YTD 11		YTD 10		% Change		YTD 11		YTD 10		% Change
New England
Boston, MA		4,866		$ 1,984		$ 1,877		5.7%		95.9%		96.2%		(0.3%)		$ 83,347		$ 79,084		5.4%
Fairfield-New Haven, CT		2,449		2,025		1,929		5.0%		96.4%		96.7%		(0.3%)		43,029		41,100		4.7%
New England Average		7,315		1,998		1,894		5.5%		96.1%		96.4%		(0.3%)		126,376		120,184		5.2%
Metro NY/NJ
New York, NY		3,099		2,791		2,674		4.4%		96.1%		96.3%		(0.2%)		74,830		71,842		4.2%
New Jersey		2,462		1,944		1,876		3.6%		96.2%		96.4%		(0.2%)		41,447		40,086		3.4%
Long Island, NY		1,420		2,397		2,286		4.9%		96.1%		96.1%		0.0%		29,448		28,071		4.9%
Metro NY/NJ Average		6,981		2,412		2,315		4.2%		96.2%		96.3%		(0.1%)		145,725		139,999		4.1%
Mid-Atlantic/Midwest
Washington Metro		5,349		1,843		1,748		5.4%		95.4%		96.1%		(0.7%)		84,587		80,818		4.7%
Chicago, IL		601		1,526		1,445		5.6%		95.5%		96.4%		(0.9%)		7,891		7,534		4.7%
Mid-Atlantic/Midwest Average		5,950		1,811		1,716		5.5%		95.4%		96.2%		(0.8%)		92,478		88,352		4.7%
Pacific Northwest
Seattle, WA		2,533		1,295		1,236		4.8%		94.9%		95.6%		(0.7%)		28,012		26,898		4.1%
Pacific Northwest Average		2,533		1,295		1,236		4.8%		94.9%		95.6%		(0.7%)		28,012		26,898		4.1%
Northern California
San Jose, CA		2,790		1,922		1,805		6.5%		96.1%		96.0%		0.1%		46,385		43,529		6.6%
Oakland-East Bay, CA		1,569		1,459		1,388		5.1%		96.1%		95.7%		0.4%		19,800		18,762		5.5%
San Francisco, CA		470		2,447		2,308		6.0%		96.4%		96.2%		0.2%		9,976		9,396		6.2%
Northern California Average		4,829		1,823		1,718		6.1%		96.1%		96.0%		0.1%		76,161		71,687		6.2%
Southern California
Los Angeles, CA		1,911		1,684		1,632		3.2%		96.2%		95.7%		0.5%		27,860		26,878		3.7%
Orange County, CA		1,167		1,540		1,512		1.9%		96.2%		94.9%		1.3%		15,569		15,086		3.2%
San Diego, CA		925		1,573		1,544		1.9%		95.9%		94.7%		1.2%		12,550		12,177		3.1%
Southern California Average		4,003		1,617		1,578		2.5%		96.1%		95.2%		0.9%		55,979		54,141		3.4%
Average/Total Established		31,611		$ 1,923		$ 1,834		4.9%		95.9%		96.1%		(0.2%)		$ 524,731		$ 501,261		4.7%

(1) Established Communities are communities with stabilized operating expenses as of January 1, 2010 such that a comparison of 2010 to 2011 is meaningful.

(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 4.4% between years.

Attachment 8

AvalonBay Communities, Inc.

Operating Expenses (“Opex”) - Established Communities (1)

September 30, 2011

(Dollars in thousands)

(unaudited)

	Q3         2011		Q3         2010		% Change		Q3 2011 % of     Total Opex		YTD          2011		YTD          2010		% Change		YTD 2011 % of     Total Opex
Property taxes (2)		$  17,463		$  17,597		(0.8%)		29.8%		$  53,287		$  53,374		(0.2%)		31.2%
Payroll (3)		13,156		12,980		1.4%		22.4%		38,944		37,756		3.1%		22.8%
Repairs & maintenance		11,556		11,468		0.8%		19.7%		30,435		30,729		(1.0%)		17.8%
Office operations (4)		5,374		5,613		(4.3%)		9.2%		15,740		17,310		(9.1%)		9.2%
Utilities (5)		6,574		6,963		(5.6%)		11.2%		19,348		20,339		(4.9%)		11.3%
Land lease expense (6)		1,237		1,296		(4.6%)		2.1%		3,679		3,890		(5.4%)		2.2%
Marketing (7)		1,857		1,957		(5.1%)		3.2%		5,018		5,506		(8.9%)		2.9%
Insurance (8)		1,389		1,272		9.2%		2.4%		4,384		3,942		11.2%		2.6%
Total Established Communities
Operating Expenses (9)		$  58,606		$  59,146		(0.9%)		100.0%		$  170,835		$  172,846		(1.2%)		100.0%

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

(2) Property taxes decreased for the three and nine months ended September 30, 2011 due primarily to refunds from successful appeals received in 2011.

(3) Payroll includes expenses directly related to on-site operations. The increase for the three and nine months ended September 30, 2011 from the prior period is due primarily to the impact of increased employee benefit costs. An increase in employee bonuses also contributed to the increase for the nine months ended September 30, 2011 over the prior year period.

(4) Office operations includes administrative costs, bad debt expense and association and license fees. The decreases for the three and nine months ended September 30, 2011 from the prior year periods are due primarily to a decrease in bad debt expense.

(5) Utilities represents aggregate utility costs, net of resident reimbursements. The decreases for the three and nine months ended September 30, 2011 from the prior year periods are due primarily to increased receipts from water submetering and lower electrical expense with lower gas expense also contributing to the year to date decrease.

(6) Land lease expense represents GAAP-based rental expense, which is higher than actual cash payments made. Expensed land lease payments were $851 and $2,522 higher than cash payments for the three and nine months ended September 30, 2011. Established Communities’ results exclude land lease expense for operating communities classified as Held for Sale.

(7) Marketing costs represent amounts incurred for electronic and print advertising, as well as prospect management and incentive costs. The decreases for the three and nine months ended September 30, 2011 are driven by a decrease in print advertising and more favorable terms for internet advertising.

(8) Insurance costs consist of premiums, expected claims activity and associated reductions from receipt of claims proceeds. Changes between years consist of deposits for insurance settlements received in 2010 not present in 2011 and expected claims adjustments. Insurance costs can exhibit volatility due to the amounts and timing of estimated and actual claim activity and the related proceeds received.

(9) Operating expenses for Established Communities excludes indirect costs for off-site corporate level property management related expenses, and other support related expenses.

Attachment 9

AvalonBay Communities, Inc.

Development Communities as of September 30, 2011

Schedule

% Occ

# of   Apt   Homes

Total   Capital   Cost (1)   (millions)

Start

Initial Occupancy

Complete

Stabilized   Ops (1)

Avg Rent Per Home (1)

% Comp (2)

% Leased (3)

Physical (4)

Economic (1) (5)

Inclusive of Concessions See Attachment #14

Under Construction:

1. Avalon Rockville Centre

349

$    109.7

Q1 2010

Q2 2011

Q3 2012

Q1 2013

$  2,630

54.4%

53.3%

47.0%

22.9%

Rockville Centre, NY

2. Avalon Queen Anne

203

55.6

Q3 2010

Q4 2011

Q2 2012

Q4 2012

1,925

16.7%

3.9%

N/A

N/A

Seattle, WA

3. Avalon Green II

444

107.8

Q3 2010

Q3 2011

Q1 2013

Q3 2013

2,525

13.5%

14.4%

9.9%

1.9%

Greenburgh, NY

4. Avalon Cohasset

220

53.1

Q4 2010

Q3 2011

Q2 2012

Q4 2012

1,970

39.1%

24.5%

15.9%

5.0%

Cohasset, MA

5. Avalon Ocean Avenue

173

61.1

Q4 2010

Q2 2012

Q4 2012

Q2 2013

2,485

N/A

N/A

N/A

N/A

San Francisco, CA

6. Avalon North Bergen

164

44.0

Q4 2010

Q3 2012

Q3 2012

Q1 2013

1,975

N/A

N/A

N/A

N/A

North Bergen, NJ

7. Avalon at Wesmont Station I

266

62.5

Q4 2010

Q2 2012

Q1 2013

Q3 2013

1,955

N/A

N/A

N/A

N/A

Wood-Ridge, NJ

8. Avalon Park Crest

354

77.6

Q4 2010

Q2 2012

Q2 2013

Q4 2013

1,910

N/A

N/A

N/A

N/A

Tysons Corner, VA

9. Avalon Garden City

204

68.0

Q2 2011

Q1 2012

Q4 2012

Q2 2013

3,085

N/A

N/A

N/A

N/A

Garden City, NY

10. Avalon Andover

115

26.8

Q2 2011

Q2 2012

Q3 2012

Q1 2013

1,850

N/A

N/A

N/A

N/A

Andover, MA

11. Avalon Exeter

187

114.0

Q2 2011

Q3 2013

Q4 2013

Q2 2014

4,335

N/A

N/A

N/A

N/A

Boston, MA

12. Avalon Irvine II

179

46.2

Q3 2011

Q1 2013

Q2 2013

Q4 2013

1,840

N/A

N/A

N/A

N/A

Irvine, CA

13. Avalon Ballard

265

68.8

Q3 2011

Q2 2013

Q3 2013

Q1 2014

1,715

N/A

N/A

N/A

N/A

Seattle, WA

14. Avalon Shelton III

251

47.9

Q3 2011

Q1 2013

Q3 2013

Q1 2014

1,745

N/A

N/A

N/A

N/A

Shelton, CT

15. Avalon Hackensack

226

47.2

Q3 2011

Q2 2013

Q4 2013

Q2 2014

2,555

N/A

N/A

N/A

N/A

Hackensack, NJ

Subtotal/Weighted Average

3,600

$  990.3

$  2,295

Completed this Quarter:

1. Avalon Springs II

100

$    31.0

Q3 2010

Q2 2011

Q3 2011

Q1 2012

$  2,370

100.0%

79.0%

76.0%

49.3%

Wilton, CT

2. Avalon Brandemoor II

82

14.1

Q3 2010

Q2 2011

Q3 2011

Q1 2012

1,690

100.0%

96.3%

95.1%

59.8%

Lynnwood, WA

Subtotal/Weighted Average

182

$    45.1

$  2,065

Total/Weighted Average

3,782

$    1,035.4

$  2,285

Weighted Average Projected NOI as a % of Total Capital Cost (1) (6)

7.0%

Inclusive of Concessions - See Attachment  #14

				% Economic Occ (1) (5)
Non-Stabilized Development Communities: (7)
Prior Completions:
Avalon at the Pinehills II	91	$	17.6	53.3%

Q3 2011 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $0.6 million. See Attachment #14.

Asset Cost Basis (millions):		Source
Asset Under Construction and Non-Stabilized Completions
Capital Cost, Under Construction	$        990.3	Att. 9
Capital Cost, Current Completions	45.1	Att. 9
Less: Remaining to Invest, Under Construction	(524.4)	Att. 11
Subtotal, Assets Under Construction and Current Completions	511.0
Capital Cost, Prior Quarter Completions	17.6	Att. 9
Total Asset Cost Basis, Under Construction and Non-Stabilized Development	$  528.6

(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 October 21, 2011.

(3) Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of October 21, 2011.

(4) Physical occupancy based on apartment homes occupied as of October 21, 2011.

(5) Represents Economic Occupancy for the third quarter of 2011.

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

(7) Represents Development Communities completed in 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 third quarter of 2011.

Attachment 10

AvalonBay Communities, Inc.

Redevelopment Communities as of September 30, 2011

		Cost (millions)		Schedule
	# of     Apt     Homes	Pre- Redevelopment Capital Cost	Total     Capital     Cost (1)(2)	Acquisition / Completion	Start	Complete	Restabilized     Ops (2)	Avg     Rent     Per     Home (2)	Homes  Completed  @ 9/30/2011
							Inclusive of
							Concessions
							See Attachment #14
Under Redevelopment:
1. Avalon at South Coast	258	$ 26.0	$ 33.8	Q3 1996	Q4 2010	Q4 2011	Q2 2012	$ 1,500	230
Costa Mesa, CA
2. Crowne Ridge	254	33.1	46.8	Q3 1996	Q4 2010	Q2 2012	Q4 2012	1,765	184
San Rafael, CA
3. Avalon Cove	504	93.7	113.9	Q1 1997	Q4 2010	Q3 2012	Q1 2013	3,050	331
Jersey City, NJ
4. Avalon Sunset Towers	243	28.9	42.0	Q2 1996	Q4 2010	Q3 2013	Q1 2014	2,480	77
San Francisco, CA
5. Avalon at Nob Hill	185	28.3	34.1	Q4 1995	Q2 2011	Q4 2011	Q2 2012	2,155	185
San Francisco, CA
6. Avalon Foster City	288	44.2	51.4	Q1 1994	Q3 2011	Q4 2012	Q2 2013	1,925	-
Foster City, CA
7. Avalon at Ballston - Washington Towers	344	39.2	53.1	Q4 1993	Q3 2011	Q1 2013	Q3 2013	2,225	-
Arlington, VA
8. Avalon at Santa Margarita (3)	301	25.0	32.3	Q2 1997	Q3 2011	Q1 2013	Q3 2013	1,510	-
Rancho Santa Margarita, CA
Subtotal/Weighted Average	2,377	$ 318.4	$ 407.4					$ 2,165	1,007
Completed this Quarter: (4)
1. Avalon Pleasanton	456	$63.0	$79.5	Q1 1994	Q2 2009	Q3 2011	Q1 2012	$1,590	456
Pleasanton, CA
2. Avalon Princeton Junction	512	30.2	48.7	Q4 1988	Q2 2009	Q3 2011	Q4 2011	1,555	512
West Windsor, NJ
3. Avalon Commons	312	34.1	38.1	Q4 1997	Q4 2010	Q3 2011	Q4 2011	2,255	312
Smithtown, NY
Subtotal/Weighted Average	1,280	$ 127.3	$ 166.3					$ 1,740	1,280
Total/Weighted Average	3,657	$ 445.7	$ 573.7					$ 2,015	2,287

(1) Inclusive of acquisition cost.

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

(3) The scope of the work completed during the third quarter did not impact economic occupancy or rental income therefore this community is included in the Established Community portfolio.

(4) During the third quarter of 2011 the Company completed the redevelopment of Avalon at Prudential Center in Boston, MA for an estimated Total Capital Cost of $25.5 million. The redevelopment is primarily focused on the exterior and/or common area and is not expected to have a material impact on community operations, including occupancy, or the expected future level of rental revenue. This community is therefore included in the Established Community portfolio and not classified as a Redevelopment 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 third quarter of 2011.

Attachment 11

AvalonBay Communities, Inc.

Summary of Development and Redevelopment Community Activity (1) as of September 30, 2011

(Dollars in Thousands)

DEVELOPMENT (2)
	Apt Homes      Completed  &     Occupied	Total Capital   Cost Invested   During Period  (3)		Cost of Homes   Completed &   Occupied (4)		Remaining to   Invest (5)		Construction in   Progress at   Period End (6)
Total - 2009 Actual	2,493	$	451,372	$	809,384	$	245,046	$	500,671
2010 Actual:
Quarter 1	279	$	122,151	$	101,286	$	228,620	$	552,899
Quarter 2	475		63,860		160,070		164,050		475,275
Quarter 3	511		98,774		169,856		292,611		383,115
Quarter 4	465		120,125		146,947		466,991		296,292
Total - 2010 Actual	1,730	$	404,910	$	578,159
2011 Projected:
Quarter 1 (Actual)	281	$	78,278	$	84,438	$	386,632	$	306,219
Quarter 2 (Actual)	258		113,717		69,253		468,451		377,363
Quarter 3 (Actual)	308		144,618		82,273		524,361		462,230
Quarter 4 (Projected)	270		114,219		69,913		410,142		459,620
Total - 2011 Projected	1,117	$	450,832	$	305,877
REDEVELOPMENT
		Total Capital   Cost Invested   During Period (3)				Remaining to   Invest (5)		Reconstruction in   Progress at   Period End
Total - 2009 Actual		$	50,911			$	49,527	$	30,628
2010 Actual:
Quarter 1		$	12,654			$	36,873	$	27,915
Quarter 2			10,843				34,445		16,881
Quarter 3			8,870				33,046		19,606
Quarter 4			15,321				73,518		13,412
Total - 2010 Actual		$	47,688
2011 Projected:
Quarter 1 (Actual)		$	12,657			$	59,144	$	24,024
Quarter 2 (Actual)			22,297				41,396		21,950
Quarter 3 (Actual)			18,146				47,907		20,777
Quarter 4 (Projected)			13,268				34,639		20,977
Total - 2011 Projected		$	66,368

(1) Data is presented for all communities currently under development or redevelopment.

(2) Projected periods include data for consolidated joint ventures at 100%. The offset for joint venture partners’ participation is reflected as redeemable noncontrolling 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 projected Total Capital Cost 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.

(6) Includes communities under development and Established Communities.

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 third quarter of 2011.

Attachment 12

AvalonBay Communities, Inc.

Future Development as of September 30, 2011

DEVELOPMENT RIGHTS (1)
Market	# of Rights	Estimated Number of Homes	Total Capital Cost (1) (2) (millions)
Boston, MA	4	1,410	$ 394
Fairfield-New Haven, CT	3	530	108
New York, NY	3	1,744	771
New Jersey	8	1,998	418
Long Island, NY	1	303	75
Washington, DC Metro	4	1,246	309
Seattle, WA	1	284	81
Oakland-East Bay, CA	2	505	143
San Francisco, CA	2	455	212
San Diego, CA	1	204	51
Total	29	8,679	$2,562

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

(2) The Company currently owns $205 million of land related to 13 of 29 development rights, and is currently under a ground lease obligation for one development right in New York, NY.

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 third quarter of 2011.

Attachment 13

AvalonBay Communities, Inc.

Summary of Disposition Activity (1) as of September 30, 2011

(Dollars in thousands)

	Number of Communities Sold (2)	Gross Sales Price		GAAP Gain		Accumulated Depreciation and Other		Economic Gain/Loss (4)		Weighted Average Initial Year Mkt. Cap Rate (3) (4)	Weighted Average Unleveraged IRR (3)  (4)
	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 (5)	$	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:
	7 Communities, 1 Office Building,
	3 Land Parcels (6)	$	382,720	$	199,767	$	14,929	$	184,838	3.8%	18.0%
	2006:
	4 Communities, 3 Land Parcels (7)	$	281,485	$	117,539	$	21,699	$	95,840	4.6%	15.2%
	2007:
	5 Communities, 1 Land Parcel (8)	$	273,896	$	163,352	$	17,588	$	145,764	4.6%	17.8%
	2008:
	11 Communities (9)	$	646,200	$	288,384	$	56,469	$	231,915	5.1%	14.1%
	2009:
	5 Communities, 2 Land Parcels (10)	$	193,186	$	68,717	$	16,692	$	52,025	6.5%	13.0%
	2010:
	3 Communities, 1 Office Building (10)	$	198,600	$	74,074	$	51,977	$	22,097	5.8%	8.9%
	2011:
	1 Community, 3 Land Parcels (11)	$	67,575	$	15,460	$	20,892	$	(5,432)	3.9%	9.3%
1998 - 2011 Total		$	3,724,578	$	1,459,043	$	358,114	$	1,100,929	5.8%	15.0%

(1) Activity excludes dispositions to joint venture entities in which the Company retains an economic interest.

(2) For dispositions from January 1, 1998 through September 30, 2011 the Weighted Average Holding Period is 7.9 years.

(3) For purposes of this attachment, land sales and the disposition of an office building are not included in the calculation of Weighted Average Holding Period, Weighted Average Initial Year Market Cap Rate, or Weighted Average Unleveraged IRR.

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

(5) 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.

(6) 2005 GAAP gain includes the recovery of an impairment loss 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 to be planned for disposition.

(7) 2006 GAAP gain, for purposes of this attachment, includes $6,609 related to the sale of a community in which the Company held a 25% equity interest.

(8) 2007 GAAP gain, for purposes of this attachment, includes $56,320 related to the sale of a partnership interest in which the Company held a 50% equity interest.

(9) 2008 GAAP gain, for purposes of this attachment, includes $3,483 related to the sale of a community held by Fund I in which the Company holds a 15.2% equity interest.

(10) 2009 and 2010 GAAP and Economic Gain include the recognition of approximately $2,770 and $2,675, respectively, in deferred gains for prior year dispositions, recognition of which occurred in conjunction with settlement of associated legal matters.

(11) 2011 results exclude the Company’s proportionate gain of $7,675 associated with an asset exchange. 2011 GAAP gain, for purposes of this attachment, includes $1,743 related to the sale of a

community held by Fund I in which the Company holds a 15.2% equity interest. 2011 Accumulated Depreciation and Other includes $20,210 in impairment charges on two of the land parcels sold.

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 attributable to common stockholders 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 attributable to common stockholders is as follows (dollars in thousands):

	Q3 2011		Q3 2010		YTD 2011		YTD 2010
Net income attributable to common stockholders	$	44,824	$	24,654	$	118,537	$	148,304
Depreciation - real estate assets, including discontinued operations and joint venture adjustments		64,499		59,794		191,933		175,399
Distributions to noncontrolling interests, including discontinued operations		7		14		20		41
Gain on sale of unconsolidated entities holding previously depreciated real estate assets		(1,743)		--		(1,743)		--
Gain on sale of previously depreciated real estate assets		--		--		(7,675)		(72,220)
FFO attributable to common stockholders	$	107,587	$	84,462	$	301,072	$	251,524
Average shares outstanding - diluted		92,340,368		85,768,696		89,199,498		84,129,894
Earnings per share - diluted	$	0.49	$	0.29	$	1.33	$	1.76
FFO per common share - diluted	$	1.17	$	0.98	$	3.38	$	2.99

Attachment 14

The Company’s results for the three and nine months ended September 30, 2011 and the comparable prior year periods include the non-routine items outlined in the following table:

Non-Routine Items

Decrease (Increase) in Net Income and FFO

(dollars in thousands)

	YTD 2010		YTD 2011		Q3 2010		Q3 2011
Land impairments (1)	$	-	$	14,052		-	$	14,052
Gain on sale of land		-		(13,716)		-		(13,716)
Interest income on escrow		-		(2,478)		-		-
Severance and related costs		(1,550)		(400)		-		-
Legal settlement proceeds, net		(927)		-		-		-
Severe weather costs		672		-		-		-
Excise tax		30		-		-		-
Acquisition costs		-		1,010		-		51
Investment Management Fund transaction costs, net (2)		636		446		416		75
Total non-routine items	$	(1,139)	$	(1,086)	$	416	$	462
Weighted Average Dilutive
Shares Outstanding		84,129,894		89,199,498		85,768,696		92,340,368
(1) Includes an impairment charge recognized for an unconsolidated joint venture.
(2) Represents the Company’s proportional share of Fund II transaction costs.

Projected FFO, as provided within this release in the Company’s outlook, is calculated on a basis consistent with historical FFO, and is therefore considered to be an appropriate supplemental measure to projected Net Income from projected operating performance. A reconciliation of the range provided for Projected FFO per share (diluted) for the fourth quarter and full year 2011 to the ranges provided for projected EPS (diluted) is as follows:

	Low Range		High Range
Projected EPS (diluted) - Q4 2011		$ 0.54		$ 0.58
Projected depreciation (real estate related)		0.65		0.65
Projected FFO per share (diluted) - Q4 2011		$ 1.19		$ 1.23
Projected EPS (diluted) - Full Year 2011		$ 1.84		$ 1.88
Projected depreciation (real estate related)		2.81		2.81
Projected gain on sale of operating communities		(0.08)		(0.08)
Projected FFO per share (diluted) - Full Year 2011		$ 4.57		$ 4.61

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 expenses, expensed development and other pursuit costs, net interest expense, gain (loss) on extinguishment of debt, general and administrative expense, joint venture income (loss), depreciation expense, impairment loss on land holdings,

Attachment 14

gain on sale of real estate assets 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 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):

	Q3		Q3		Q2		Q1		Q4		YTD		YTD
	2011		2010		2011		2011		2010		2011		2010
Net Income		$ 44,677		$ 23,980		$ 43,192		$ 30,537		$ 26,668		$ 118,405		$ 147,414
Indirect operating expenses, net of corporate income		7,734		7,189		7,701		7,027		7,978		22,463		22,269
Investments and investment management expense		1,328		1,026		1,341		1,191		712		3,860		3,111
Expensed development and other pursuit costs		633		737		1,353		651		1,057		2,636		1,685
Interest expense, net		43,970		44,262		45,855		44,271		46,948		134,096		128,260
General and administrative expense		6,087		7,039		8,145		7,292		6,870		21,524		19,975
Joint venture loss (income)		(2,615)		325		(395)		(503)		(397)		(3,513)		(364)
Depreciation expense		62,262		57,926		62,215		60,594		59,909		185,071		169,819
Gain on sale of real estate assets		(13,716)		--		(7,675)		--		(1,854)		(21,391)		(72,220)
Impairment loss		14,052		--		--		--		--		14,052		--
(Income) loss from discontinued operations		1,808		2,232		1,911		2,019		1,982		5,737		4,387
NOI from continuing operations		$ 166,220		$ 144,716		$ 163,643		$ 153,079		$ 149,873		$ 482,940		$ 424,336
Established:
New England		$ 27,560		$ 25,369		$ 27,006		$ 25,482		$ 25,839		$ 80,048		$ 73,700
Metro NY/NJ		33,707		30,648		33,153		31,559		31,745		98,420		91,728
Mid-Atlantic/Midwest		22,055		20,794		22,404		21,643		21,760		66,102		61,903
Pacific NW		6,120		5,713		6,349		6,140		5,796		18,609		17,768
No. California		18,399		16,560		18,182		17,386		16,179		53,967		49,380
So. California		12,699		11,226		12,393		11,955		11,522		37,047		34,365
Total Established		120,540		110,310		119,487		114,165		112,841		354,193		328,844
Other Stabilized		23,309		18,181		22,274		20,025		19,830		65,604		48,544
Development/Redevelopment		22,371		16,225		21,882		18,889		17,202		63,143		46,948
NOI from continuing operations		$ 166,220		$ 144,716		$ 163,643		$ 153,079		$ 149,873		$ 482,940		$ 424,336

Attachment 14

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2010 through September 30, 2011 or classified as held for sale at September 30, 2011). A reconciliation of NOI from communities sold or classified as discontinued operations to Net Income for these communities is as follows (dollars in thousands):

	Q3 2011		Q3 2010		YTD     2011		YTD     2010
Income (Loss) from discontinued operations	$	(1,808)	$	(2,232)	$	(5,737)	$	(4,387)
Depreciation expense		474		827		1,884		2,508
NOI from discontinued operations	$	(1,334)	$	(1,405)	$	(3,853)	$	(1,879)
NOI from assets sold		--		27		--		2,287
NOI from assets held for sale		(1,334)		(1,432)		(3,853)		(4,166)
NOI from discontinued operations	$	(1,334)	$	(1,405)	$	(3,853)	$	(1,879)

Projected NOI, as used within this release for certain Development 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 Communities, Projected NOI is calculated based on the first twelve months 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 minus projected stabilized economic vacancy and adjusted for projected stabilized concessions plus projected stabilized other rental revenue. 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. Projected gross potential for Development Communities and dispositions is based on leased rents for occupied homes and management’s best estimate of rental levels for homes which are currently unleased, as well as those homes which will become available for lease during the twelve month forward period used to develop Projected NOI. 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.

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

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 to help investors 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.

Attachment 14

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):

	Q3 2011		Q3 2010		YTD 2011		YTD 2010
Rental revenue (GAAP basis)	$	179,062	$	169,265	$	524,731	$	501,261
Concessions amortized		257		1,021		1,244		4,703
Concessions granted		(99)		(751)		(416)		(2,461)
Rental revenue (with concessions on a cash basis)	$	179,220	$	169,535	$	525,559	$	503,503
% change -- GAAP revenue				5.8%				4.7%
% change -- cash revenue				5.7%				4.4%

Economic Gain (Loss) is calculated by the Company as the gain (loss) 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 (Loss) to be an appropriate supplemental measure to gain (loss) 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 (Loss) for each of the communities presented is estimated based on their respective final settlement statements. A reconciliation of Economic Gain (Loss) to gain on sale in accordance with GAAP for the quarter ended September 30, 2011 as well as prior years’ activities is presented on Attachment 13.

Interest Coverage is calculated by the Company as EBITDA from continuing operations, excluding land gains and gain on the sale of investments in real estate joint ventures, divided by the sum of interest expense, net, and preferred dividends. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our ability to service debt obligations to that of other companies. EBITDA is defined by the Company as net income or loss attributable to the Company before interest income and expense, income taxes, depreciation and amortization.

A reconciliation of EBITDA and a calculation of Interest Coverage for the third quarter of 2011 are as follows (dollars in thousands):

Net income attributable to common stockholders	$ 44,824
Interest expense, net	43,970
Depreciation expense	62,262
Depreciation expense (discontinued operations)	474
EBITDA	$ 151,530
EBITDA from continuing operations	$ 152,864
EBITDA from discontinued operations	(1,334)
EBITDA	$ 151,530
EBITDA from continuing operations	$ 152,864
Interest expense, net	$ 43,970
Interest coverage	3.5

Attachment 14

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. For Redevelopment Communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. 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. For joint ventures not in construction, Total Capital Cost is equal to gross real estate cost.

Initial Year Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less estimates for non-routine allowance of approximately $200 - $300 per apartment home, divided by the gross sales price for the community. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation, amortization and extraordinary items. For this purpose, management’s projection of operating expenses for the community includes a management fee of 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 a 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 and 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.

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 a 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.

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 nine months ended September 30, 2011 is as follows (dollars in thousands):

Attachment 14

NOI for Established Communities	$	354,193
NOI for Other Stabilized Communities		65,604
NOI for Development/Redevelopment Communities		63,143
NOI for discontinued operations		(3,853)
Total NOI generated by real estate assets		479,087
NOI on encumbered assets		146,368
NOI on unencumbered assets		332,719
Unencumbered NOI		69%

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 2011, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2010 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.

Other Stabilized Communities are completed consolidated communities that the Company owns, which did not have stabilized operations as of January 1, 2010, but have stabilized occupancy as of January 1, 2011. Other Stabilized Communities do not include communities that are planning to conduct substantial redevelopment activities or that are planned for disposition within the current year.

Development Communities are communities that are under construction during the current year. These communities may be partially or fully complete and operating.

Redevelopment Communities are communities where the Company owns a majority interest and where substantial redevelopment is in progress or is planned to begin during the current year. Redevelopment is generally considered substantial when capital invested during the reconstruction effort is expected to exceed either $5,000,000 or 10% of the community’s pre-development basis and is expected to have a material impact on the community’s operations, including occupancy levels and future rental rates.

Average Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted average number of occupied apartment homes.

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.

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.

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 management’s projected stabilized rents net of estimated stabilized concessions and including estimated stabilized other rental revenue. Projected stabilized rents are based on one or more of the following: (i) actual average leased rents on apartments leased through quarter end; (ii) projected rollover rents on apartments leased

Attachment 14

through quarter end where the lease term expires within the first twelve months of Stabilized Operations, and Market Rents on unleased homes.

Development Rights are development opportunities in the early phase of the development process for which the Company either has an option to acquire land or enter into a leasehold interest, for which the Company is the buyer under a long-term conditional contract to purchase land or where the Company controls the land through a ground lease or owns land to develop a new community. The Company capitalizes related pre-development costs incurred in pursuit of new developments for which future development is probable.