August 3, 2010 - EX-99.2 - 8-K: Current report filing | AvalonBay Communities, Inc. (AVB)

SECOND QUARTER 2010

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
Sequential Operating Information by Business Segment		Attachment 4

Sub-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 Companys 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 Companys filings with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and the Companys Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
June 30, 2010
(Dollars in thousands excepts per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q2		Q2					YTD		YTD
	2010		2009		% Change			2010		2009		% Change

Net income attributable to common stockholders	$	51,125	$	17,674		189.3	%	$	123,648	$	65,099		89.9	%

Per common share basic	$	0.61	$	0.22		177.3	%	$	1.49	$	0.82		81.7	%

Per common share diluted	$	0.61	$	0.22		177.3	%	$	1.49	$	0.82		81.7	%

Funds from Operations	$	87,803	$	71,814		22.3	%	$	167,060	$	172,789		(3.3	%)
Per common share diluted	$	1.04	$	0.90		15.6	%	$	2.01	$	2.16		(6.9	%)

Dividends declared common	$	75,933	$	71,339		6.4	%	$	149,737	$	142,631		5.0	%
Per common share	$	0.8925	$	0.8925		0.0	%	$	1.7850	$	1.7850		0.0	%

Common shares outstanding		85,078,734		79,931,385		6.4	%		85,078,734		79,931,385		6.4	%
Outstanding operating partnership units		15,351		15,351		0.0	%		15,351		15,351		0.0	%

Total outstanding shares and units		85,094,085		79,946,736		6.4	%		85,094,085		79,946,736		6.4	%

Average shares and participating securities outstanding basic		83,751,877		79,913,565		4.8	%		82,829,844		79,462,086		4.2	%

Weighted shares basic		83,517,908		79,662,223		4.8	%		82,583,638		79,210,349		4.3	%
Average operating partnership units outstanding		15,351		15,888		(3.4	%)		15,351		17,648		(13.0	%)
Effect of dilutive securities		711,846		364,183		95.5	%		649,006		670,290		(3.2	%)

Average shares outstanding diluted		84,245,105		80,042,294		5.3	%		83,247,995		79,898,287		4.2	%

DEBT COMPOSITION AND MATURITIES


			Average
			Interest			Remaining
Debt Composition (1)	Amount		Rate (2)			Maturities (1)

Conventional Debt							2010	$	121,085
Long-term, fixed rate	$	2,828,954					2011	$	237,286
Long-term, variable rate		354,486					2012	$	503,259
Variable rate facilities (3)							2013	$	379,573

Subtotal, Conventional		3,183,440		5.8	%		2014	$	198,869


Tax-Exempt Debt
Long-term, fixed rate		93,986
Long-term, variable rate		671,964

Subtotal, Tax-Exempt		765,950		3.2	%


Total Debt	$	3,949,390		5.3	%


⁽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 Companys $1 billion unsecured credit facility, under which no amounts were drawn at June 30, 2010.

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q210	$	9,655	$	5,406	$	106
Q110	$	9,836	$	5,491	$	38
Q409	$	10,303	$	6,135	$	193
Q309	$	11,878	$	5,680	$	59
Q209	$	13,677	$	6,610	$	32

COMMUNITY INFORMATION


			Apartment
	Communities		Homes

Current Communities		164		47,401
Development Communities		7		2,509
Development Rights		28		7,329

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
June 30, 2010
(Dollars in thousands except per share data)
(unaudited)


	Q2			Q2						YTD			YTD
	2010			2009			% Change			2010			2009			% Change
Revenue:
Rental and other income	$	218,784		$	210,182			4.1	%	$	432,522		$	418,447			3.4	%
Management, development and other fees		1,684			2,077			(18.9	%)		3,533			3,545			(0.3	%)

Total		220,468			212,259			3.9	%		436,055			421,992			3.3	%

Operating expenses:
Direct property operating expenses, excluding property taxes		55,133			53,179			3.7	%		109,567			103,906			5.4	%
Property taxes		23,175			19,945			16.2	%		46,347			40,831			13.5	%
Property management and other indirect operating expenses		9,262			9,634			(3.9	%)		18,316			19,678			(6.9	%)

Total operating expenses		87,570			82,758			5.8	%		174,230			164,415			6.0	%

Interest expense, net		(41,458	)		(36,880	)		12.4	%		(83,999	)		(67,010	)		25.4	%
Gain on extinguishment of debt, net								N/A						1,062			(100.0	%)
General and administrative expense		(4,041	)		(5,390	)		(25.0	%)		(12,936	)		(12,637	)		2.4	%
Joint venture income		463			492			(5.9	%)		689			3,949			(82.6	%)
Investments and investment management expense		(1,047	)		(907	)		15.4	%		(2,086	)		(1,822	)		14.5	%
Expensed development and other pursuit costs		(443	)		(2,281	)		(80.6	%)		(947	)		(3,375	)		(71.9	%)
Depreciation expense		(57,479	)		(51,174	)		12.3	%		(113,574	)		(101,247	)		12.2	%
Impairment loss					(20,302	)		(100.0	%)					(20,302	)		(100.0	%)

Income from continuing operations		28,893			13,059			121.2	%		48,972			56,195			(12.9	%)
Income from discontinued operations (1)		244			3,664			(93.3	%)		2,240			7,629			(70.6	%)
Gain on sale of communities		21,929						100.0	%		72,220						100.0	%

Total discontinued operations		22,173			3,664			505.2	%		74,460			7,629			876.0	%

Net income		51,066			16,723			205.4	%		123,432			63,824			93.4	%
Net income attributable to redeemable noncontrolling interests		59			951			(93.8	%)		216			1,275			(83.1	%)

Net income attributable to common stockholders	$	51,125		$	17,674			189.3	%	$	123,648		$	65,099			89.9	%

Net income attributable to common stockholders per common share basic	$	0.61		$	0.22			177.3	%	$	1.49		$	0.82			81.7	%

Net income attributable to common stockholders per common share diluted	$	0.61		$	0.22			177.3	%	$	1.49		$	0.82			81.7	%


(1)		Reflects net income for investments in real estate classified as discontinued operations as of June 30, 2010 and investments in real estate sold during the period from January 1, 2009 through June 30, 2010. The following table details income from discontinued operations for the periods shown:


	Q2			Q2			YTD			YTD
	2010			2009			2010			2009
Rental income	$	548		$	9,885		$	3,750		$	19,831
Operating and other expenses		(304	)		(3,153	)		(1,510	)		(6,389	)
Interest expense, net					(505	)					(683	)
Depreciation expense					(2,563	)					(5,130	)

Income from discontinued operations	$	244		$	3,664		$	2,240		$	7,629

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)
(unaudited)


	June 30,			December 31,
	2010			2009
Real estate	$	7,703,074		$	7,425,310
Less accumulated depreciation		(1,590,901	)		(1,477,772	)

Net operating real estate		6,112,173			5,947,538

Construction in progress, including land		492,156			531,299
Land held for development		237,529			237,095
Operating real estate assets held for sale, net					117,555


Total real estate, net		6,841,858			6,833,487

Cash and cash equivalents		373,721			105,691
Cash in escrow		188,267			210,676
Resident security deposits		21,787			23,646
Other assets		279,211			284,105

Total assets	$	7,704,844		$	7,457,605


Unsecured notes, net	$	1,659,621		$	1,658,029
Notes payable		2,288,913			2,316,843
Resident security deposits		33,596			33,646
Liabilities related to assets held for sale					2,669
Other liabilities		378,424			390,494

Total liabilities	$	4,360,554		$	4,401,681


Redeemable noncontrolling interests		9,381			5,797

Stockholders equity		3,334,909			3,050,127

Total liabilities and stockholders equity	$	7,704,844		$	7,457,605

Attachment 4

AvalonBay Communities, Inc.
Sequential Operating Information by Business Segment (1)
June 30, 2010
(Dollars in thousands)
(unaudited)


	Total		Quarter Ended			Quarter Ended			Quarter Ended
	Homes		June 30, 2010			March 31, 2010			December 31, 2009
RENTAL REVENUE
Established (2)		30,672	$	161,641		$	159,640		$	160,055
Other Stabilized (2) (3)		5,446		29,499			28,901			27,745
Redevelopment (2)		5,067		23,339			23,030			22,975
Development (2)		2,788		3,707			1,988			1,160

Total Consolidated Communities		43,973	$	218,186		$	213,559		$	211,935


OPERATING EXPENSE
Established			$	56,230		$	56,802		$	56,700
Other Stabilized				12,132			12,075			11,444
Redevelopment				7,466			7,315			7,812
Development				2,482			1,422			1,304

Total Consolidated Communities			$	78,310		$	77,614		$	77,260


NOI (2)
Established			$	105,479		$	102,987		$	103,606
Other Stabilized				18,146			16,869			16,855
Redevelopment				15,893			15,737			15,202
Development				1,229			567			(141	)

Total Consolidated Communities			$	140,747		$	136,160		$	135,522


AVERAGE REVENUE PER OCCUPIED HOME
Established			$	1,821		$	1,804		$	1,813
Other Stabilized				1,841			1,810			1,812
Redevelopment				1,621			1,603			1,622
Development (4)				2,131			2,266			1,744

ECONOMIC OCCUPANCY
Established				96.5	%		96.2	%		96.0	%
Other Stabilized				96.1	%		94.3	%		90.1	%
Redevelopment				94.7	%		94.5	%		93.2	%
Development				43.2	%		31.3	%		56.2	%

STABILIZED COMMUNITIES TURNOVER 2010 / 2009 (5)				56.6% / 64.4	%		42.1% / 47.2	%		46.3	%


(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, 2010 may reflect community operations prior to stabilization, including periods of lease-up, such that occupancy levels are below what would be considered stabilized.

(4)		Average revenue per occupied home for Development Communities includes only those assets with at least one full quarter of lease-up activity.

(5)		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)

June 30, 2010


	Apartment Homes		Average Rental Rates(2)							Economic Occupancy									Rental Revenue ($000s) (3)
			Q2 10		Q2 09		% Change			Q2 10			Q2 09			% Change			Q2 10		Q2 09		% Change
New England
Boston, MA		4,092	$	1,904	$	1,927		(1.2	%)		96.6	%		95.4	%		1.2	%	$	22,569	$	22,563		0.0	%
Fairfield-New Haven, CT		2,350		1,912		1,983		(3.6	%)		97.1	%		95.4	%		1.7	%		13,083		13,334		(1.9	%)

New England Average		6,442		1,907		1,947		(2.1	%)		96.8	%		95.4	%		1.4	%		35,652		35,897		(0.7	%)


Metro NY/NJ
New York, NY		2,714		2,627		2,665		(1.4	%)		96.7	%		96.4	%		0.3	%		20,690		20,910		(1.1	%)
New Jersey		2,462		1,865		1,923		(3.0	%)		97.0	%		95.1	%		1.9	%		13,366		13,515		(1.1	%)
Long Island, NY		1,732		2,242		2,284		(1.8	%)		96.1	%		95.5	%		0.6	%		11,193		11,329		(1.2	%)

Metro NY/NJ Average		6,908		2,259		2,303		(1.9	%)		96.6	%		95.8	%		0.8	%		45,249		45,754		(1.1	%)


Mid-Atlantic/Midwest
Washington Metro		5,343		1,774		1,765		0.5	%		96.4	%		96.1	%		0.3	%		27,422		27,204		0.8	%
Chicago, IL		601		1,433		1,472		(2.6	%)		96.6	%		96.2	%		0.4	%		2,496		2,552		(2.2	%)

Mid-Atlantic/Midwest Average		5,944		1,740		1,736		0.2	%		96.4	%		96.1	%		0.3	%		29,918		29,756		0.5	%


Pacific Northwest
Seattle, WA		1,943		1,178		1,312		(10.2	%)		96.1	%		93.7	%		2.4	%		6,608		7,167		(7.8	%)

Pacific Northwest Average		1,943		1,178		1,312		(10.2	%)		96.1	%		93.7	%		2.4	%		6,608		7,167		(7.8	%)


Northern California
San Jose, CA		2,982		1,729		1,871		(7.6	%)		96.8	%		95.8	%		1.0	%		14,965		16,030		(6.6	%)
Oakland-East Bay, CA		1,569		1,381		1,469		(6.0	%)		95.5	%		93.8	%		1.7	%		6,210		6,492		(4.3	%)
San Francisco, CA		1,424		2,016		2,155		(6.5	%)		97.0	%		94.7	%		2.3	%		8,354		8,721		(4.2	%)

Northern California Average		5,975		1,706		1,834		(7.0	%)		96.6	%		95.1	%		1.5	%		29,529		31,243		(5.5	%)


Southern California
Los Angeles, CA		1,780		1,579		1,687		(6.4	%)		95.3	%		93.0	%		2.3	%		8,034		8,381		(4.1	%)
Orange County, CA		916		1,339		1,454		(7.9	%)		95.6	%		92.5	%		3.1	%		3,517		3,694		(4.8	%)
San Diego, CA		764		1,432		1,504		(4.8	%)		95.5	%		93.1	%		2.4	%		3,134		3,212		(2.4	%)

Southern California Average		3,460		1,483		1,584		(6.4	%)		95.4	%		92.9	%		2.5	%		14,685		15,287		(3.9	%)

Average/Total Established		30,672	$	1,821	$	1,884		(3.3	%)		96.5	%		95.3	%		1.2	%	$	161,641	$	165,104		(2.1	%)


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2009 such that a comparison of 2009 to 2010 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 decreased 1.8% between years.

Attachment 6

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes Established Communities (1)
June 30, 2010


	Apartment Homes		Average Rental Rates(2)							Economic Occupancy									Rental Revenue ($000s)
			Q2 10		Q1 10		% Change			Q2 10			Q1 10			% Change			Q2 10		Q1 10		% Change
New England
Boston, MA		4,092	$	1,904	$	1,904		0.0	%		96.6	%		95.6	%		1.0	%	$	22,569	$	22,360		0.9	%
Fairfield-New Haven, CT		2,350		1,912		1,888		1.3	%		97.1	%		96.3	%		0.8	%		13,083		12,822		2.0	%

New England Average		6,442		1,907		1,899		0.4	%		96.8	%		95.9	%		0.9	%		35,652		35,182		1.3	%

Metro NY/NJ
New York, NY		2,714		2,627		2,562		2.5	%		96.7	%		96.3	%		0.4	%		20,690		20,093		3.0	%
New Jersey		2,462		1,865		1,849		0.9	%		97.0	%		96.4	%		0.6	%		13,366		13,171		1.5	%
Long Island, NY		1,732		2,242		2,199		2.0	%		96.1	%		96.4	%		(0.3	%)		11,193		11,020		1.6	%

Metro NY/NJ Average		6,908		2,259		2,217		1.9	%		96.6	%		96.4	%		0.2	%		45,249		44,284		2.2	%

Mid-Atlantic/Midwest
Washington Metro		5,343		1,774		1,746		1.6	%		96.4	%		96.1	%		0.3	%		27,422		26,899		1.9	%
Chicago, IL		601		1,433		1,425		0.6	%		96.6	%		96.7	%		(0.1	%)		2,496		2,485		0.4	%

Mid-Atlantic/Midwest Average		5,944		1,740		1,713		1.6	%		96.4	%		96.2	%		0.2	%		29,918		29,384		1.8	%

Pacific Northwest
Seattle, WA		1,943		1,178		1,187		(0.8	%)		96.1	%		95.5	%		0.6	%		6,608		6,613		(0.1	%)

Pacific Northwest Average		1,943		1,178		1,187		(0.8	%)		96.1	%		95.5	%		0.6	%		6,608		6,613		(0.1	%)

Northern California
San Jose, CA		2,982		1,729		1,725		0.2	%		96.8	%		96.7	%		0.1	%		14,965		14,918		0.3	%
Oakland-East Bay, CA		1,569		1,381		1,378		0.2	%		95.5	%		95.4	%		0.1	%		6,210		6,183		0.4	%
San Francisco, CA		1,424		2,016		2,006		0.5	%		97.0	%		96.9	%		0.1	%		8,354		8,306		0.6	%

Northern California Average		5,975		1,706		1,701		0.3	%		96.6	%		96.5	%		0.1	%		29,529		29,407		0.4	%

Southern California
Los Angeles, CA		1,780		1,579		1,572		0.4	%		95.3	%		96.3	%		(1.0	%)		8,034		8,082		(0.6	%)
Orange County, CA		916		1,339		1,357		(1.3	%)		95.6	%		95.2	%		0.4	%		3,517		3,548		(0.9	%)
San Diego, CA		764		1,432		1,437		(0.3	%)		95.5	%		95.3	%		0.2	%		3,134		3,140		(0.2	%)

Southern California Average		3,460		1,483		1,485		(0.1	%)		95.4	%		95.8	%		(0.4	%)		14,685		14,770		(0.6	%)

Average/Total Established		30,672	$	1,821	$	1,804		0.9	%		96.5	%		96.2	%		0.3	%	$	161,641	$	159,640		1.3	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2009 such that a comparison of 2009 to 2010 is meaningful.

(2)		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)
June 30, 2010


	Apartment Homes		Average Rental Rates(2)							Economic Occupancy									Rental Revenue ($000s) (3)
			YTD 10		YTD 09		% Change			YTD 10			YTD 09			% Change			YTD 10		YTD 09		% Change
New England
Boston, MA		4,092	$	1,904	$	1,930		(1.3	%)		96.1	%		95.2	%		0.9	%	$	44,930	$	45,127		(0.4	%)
Fairfield-New Haven, CT		2,350		1,900		1,994		(4.7	%)		96.7	%		94.7	%		2.0	%		25,904		26,613		(2.7	%)

New England Average		6,442		1,903		1,954		(2.6	%)		96.3	%		95.0	%		1.3	%		70,834		71,740		(1.3	%)

Metro NY/NJ
New York, NY		2,714		2,595		2,668		(2.7	%)		96.5	%		95.9	%		0.6	%		40,783		41,674		(2.1	%)
New Jersey		2,462		1,857		1,927		(3.6	%)		96.7	%		95.4	%		1.3	%		26,536		27,162		(2.3	%)
Long Island, NY		1,732		2,221		2,292		(3.1	%)		96.3	%		94.4	%		1.9	%		22,214		22,495		(1.2	%)

Metro NY/NJ Average		6,908		2,238		2,310		(3.1	%)		96.5	%		95.4	%		1.1	%		89,533		91,331		(2.0	%)

Mid-Atlantic/Midwest
Washington Metro		5,343		1,760		1,761		(0.1	%)		96.3	%		96.3	%		0.0	%		54,322		54,367		(0.1	%)
Chicago, IL		601		1,429		1,478		(3.3	%)		96.7	%		95.7	%		1.0	%		4,981		5,098		(2.3	%)

Mid-Atlantic/Midwest Average		5,944		1,727		1,734		(0.4	%)		96.3	%		96.2	%		0.1	%		59,303		59,465		(0.3	%)

Pacific Northwest
Seattle, WA		1,943		1,183		1,326		(10.8	%)		95.8	%		94.1	%		1.7	%		13,221		14,544		(9.1	%)

Pacific Northwest Average		1,943		1,183		1,326		(10.8	%)		95.8	%		94.1	%		1.7	%		13,221		14,544		(9.1	%)

Northern California
San Jose, CA		2,982		1,727		1,897		(9.0	%)		96.7	%		96.0	%		0.7	%		29,883		32,600		(8.3	%)
Oakland-East Bay, CA		1,569		1,379		1,486		(7.2	%)		95.4	%		94.2	%		1.2	%		12,393		13,191		(6.0	%)
San Francisco, CA		1,424		2,011		2,178		(7.7	%)		97.0	%		95.7	%		1.3	%		16,659		17,790		(6.4	%)

Northern California Average		5,975		1,704		1,858		(8.3	%)		96.5	%		95.5	%		1.0	%		58,935		63,581		(7.3	%)

Southern California
Los Angeles, CA		1,780		1,575		1,712		(8.0	%)		95.8	%		92.9	%		2.9	%		16,116		16,987		(5.1	%)
Orange County, CA		916		1,348		1,455		(7.4	%)		95.4	%		94.1	%		1.3	%		7,065		7,521		(6.1	%)
San Diego, CA		764		1,434		1,510		(5.0	%)		95.4	%		93.9	%		1.5	%		6,273		6,501		(3.5	%)

Southern California Average		3,460		1,484		1,599		(7.2	%)		95.6	%		93.4	%		2.2	%		29,454		31,009		(5.0	%)

Average/Total Established		30,672	$	1,813	$	1,892		(4.2	%)		96.3	%		95.2	%		1.1	%	$	321,280	$	331,670		(3.1	%)


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2009 such that a comparison of 2009 to 2010 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 decreased 2.9% between years.

Attachment 8

AvalonBay Communities, Inc.
Operating Expenses (Opex) Established Communities (1)
June 30, 2010
(Dollars in thousands)
(unaudited)


								Q2 2010										YTD 2010
	Q2		Q2					% of			YTD		YTD					% of
	2010		2009		% Change			Total Opex			2010		2009		% Change			Total Opex
Property taxes (2)	$	17,293	$	15,611		10.8	%		30.7	%	$	34,681	$	32,598		6.4	%		30.7	%
Payroll (3)		12,007		11,843		1.4	%		21.4	%		23,760		23,431		1.4	%		21.0	%
Repairs & maintenance (4)		9,733		8,817		10.4	%		17.3	%		18,430		16,499		11.7	%		16.3	%
Office operations (5)		5,460		6,122		(10.8	%)		9.7	%		10,878		11,020		(1.3	%)		9.6	%
Utilities (6)		5,438		5,909		(8.0	%)		9.7	%		12,596		13,228		(4.8	%)		11.1	%
Land lease expense (7)		3,422		3,425		(0.1	%)		6.1	%		6,843		6,859		(0.2	%)		6.1	%
Marketing		1,628		1,521		7.0	%		2.9	%		3,244		3,099		4.7	%		2.9	%
Insurance (8)		1,249		1,597		(21.8	%)		2.2	%		2,590		3,355		(22.8	%)		2.3	%

*Total Established Communities Operating Expenses (9)*	$	56,230	$	54,845		2.5	%		100.0	%	$	113,022	$	110,089		2.7	%		100.0	%


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

(2)		The increase from the prior year periods is due primarily to a large refund received in the prior year with no comparable activity in 2010.

(3)		Payroll reflects expenses directly related to on-site operations.

(4)		Repairs & maintenance includes costs associated with preparing an apartment home for new residents including carpet and appliance replacement, as well as redecorating, landscaping, snow removal and regular maintenance costs. Increased costs over the prior year period are due to increased expenditures on carpeting, painting and landscaping to maintain the high quality appearance and amenities at our communities, as well as costs associated with the severe winter weather experienced on the East Coast in the fourth quarter of 2009 and the first quarter of 2010.

(5)		Office operations includes administrative costs, bad debt expense and association and license fees. The decrease from the prior year periods is due primarily to a decrease in bad debt expense.

(6)		Utilities represents aggregate utility costs, net of resident reimbursements. The decrease from the prior year period is due primarily to increased receipts from water submetering and lower electrical expense due largely to an initiative to install equipment that reduces energy consumption.

(7)		Land lease expense represents GAAP-based rental expense, which are higher than actual cash payments made. Expensed land lease payments were $2,641 and $5,218 higher than cash payments during the quarter ended and year-to-date June 30, 2010, respectively.

(8)		The Company renegotiated its property insurance policies in the fourth quarter of 2009, lowering premiums through April 2011.

(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 June 30, 2010


		Percentage					Total											Avg
		Ownership			# of		Capital			Schedule								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 Fort Greene New York, NY		100	%		631	$	305.4			Q4 2007		Q4 2009		Q4 2010		Q2 2011	$	2,725		65.6	%		63.9	%		56.3	%		34.2	%
2.	Avalon Walnut Creek (6) Walnut Creek, CA		100	%		422		151.7			Q3 2008		Q2 2010		Q1 2011		Q3 2011		1,900		36.7	%		42.2	%		28.7	%		5.9	%
3.	Avalon Norwalk Norwalk, CT		100	%		311		85.4			Q3 2008		Q2 2010		Q2 2011		Q4 2011		2,120		37.3	%		37.3	%		29.6	%		11.4	%
4.	Avalon Towers Bellevue Bellevue, WA		100	%		397		126.1			Q4 2008		Q2 2010		Q2 2011		Q4 2011		2,160		36.3	%		34.5	%		30.5	%		7.2	%
5.	Avalon Northborough II Northborough, MA		100	%		219		35.7			Q4 2009		Q1 2010		Q4 2010		Q2 2011		1,690		58.0	%		65.3	%		47.9	%		22.2	%
6.	Avalon at West Long Branch West Long Branch, NJ		100	%		180		28.1			Q4 2009		Q3 2010		Q1 2011		Q3 2011		1,815		N/A			5.6	%		N/A			N/A
7.	Avalon Rockville Centre Rockville Centre, NY		100	%		349		110.7			Q1 2010		Q3 2011		Q3 2012		Q1 2013		2,615		N/A			N/A			N/A			N/A


	Total/Weighted Average					2,509	$	843.1										$	2,250

	Weighted Average Projected NOI as a % of Total Capital Cost (1) (7)							5.7	%

Inclusive of Concessions See Attachment #14

Non-Stabilized Development Communities: (8)


				% Economic
Prior Completions:					Occ
Avalon White Plains	407	$	153.0		(1) (5)
Avalon Blue Hills	276		46.1
Avalon Irvine	279		77.4

	962	$	276.5		93.6	%


Asset Cost Basis (millions):				Source
Asset Under Construction and Non-Stabilized Completions
Capital Cost, Under Construction	$	843.1		Att. 9
Less: Remaining to Invest, Under Construction		(164.0	)	Att. 11

Subtotal, Non-Stabilized Assets Under Construction		679.1
Capital Cost, Prior Quarter Completions		276.5		Att. 9

Total Asset Cost Basis, Under Construction and Non-Stabilized Development	$	955.6

Q2 2010 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $3.9 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 23, 2010.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of July 23, 2010.

(4)		Physical occupancy based on apartment homes occupied as of July 23, 2010.

(5)		Represents Economic Occupancy for the second quarter of 2010.

(6)		This community is being financed in part by a combination of third-party tax-exempt and taxable debt.

(7)		The Weighted Average calculation is based on the Companys pro rata share of the Total Capital Cost for each community.

(8)		Represents Development Communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter. Estimates are based on the Companys 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 Companys Supplemental Operating and Financial Data for the second quarter of 2010.

Attachment 10

AvalonBay Communities, Inc.
Redevelopment Communities as of June 30, 2010


							Cost (millions)												Avg
					# of		Pre-		Total		Schedule								Rent		Homes
		Percentage			Apt		Redevelopment		Capital		Acquisition /						Restabilized		Per		Completed
		Ownership			Homes		Capital Cost		Cost (1)(2)		Completion		Start		Complete		Ops (2)		Home (2)		@ 6/30/2010
																			Inclusive of Concessions See Attachment #14
Under Redevelopment: (3)

1.	Avalon at Diamond Heights
	San Francisco, CA		100	%		154	$	25.3	$	30.6		Q2 1994		Q4 2007		Q4 2010		Q2 2011	$	2,245		80
2.	Avalon Burbank
	Burbank, CA		100	%		400		71.0		94.4		Q2 2002		Q3 2008		Q3 2010		Q1 2011		2,025		400
3.	Avalon Pleasanton
	Pleasanton, CA		100	%		456		63.0		80.9		Q1 1994		Q2 2009		Q4 2011		Q2 2012		1,490		94
4.	Avalon Princeton Junction (4)
	West Windsor, NJ		100	%		512		30.2		49.9		Q4 1988		Q2 2009		Q1 2012		Q3 2012		1,490		113
5.	Avalon at Cedar Ridge
	Daly City, CA		100	%		195		27.7		33.8		Q2 1997		Q3 2009		Q4 2010		Q2 2011		1,610		136
6.	Avalon Warm Springs (5)
	Fremont, CA		100	%		235		36.5		44.0		Q1 1994		Q4 2009		Q1 2011		Q3 2011		1,480		7
7.	Avalon Summit
	Quincy, MA		100	%		245		17.7		26.8		Q3 1995		Q2 2010		Q4 2011		Q2 2012		1,400


	Subtotal					2,197	$	271.4	$	360.4									$	1,640		830


Completed this Quarter:

1.	Avalon Woodland Hills
	Woodland Hills, CA		100	%		663	$	72.1	$	110.6		Q4 1997		Q4 2007		Q2 2010		Q3 2010	$	1,600		663


	Grand Total / Weighted Average					2,860	$	343.5	$	471.0									$	1,630		1,493


(1)		Inclusive of acquisition cost.

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

(3)		The Company commenced the redevelopment of Avalon at Prudential Center in Boston, MA and Crowne Ridge in San Rafael, CA during the second quarter 2010 for an estimated Total Capital Cost of $35.4 million. The redevelopment of these communities 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. These communities are therefore included in the Established Community portfolio and not classified as Redevelopment Communities.

(4)		This community was formerly known as Avalon Watch.

(5)		This community was formerly known as Avalon at Willow Creek.

Attachment 11

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of June 30, 2010
(Dollars in Thousands)

DEVELOPMENT (2)


	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)(6)		Period End

Total 2008 Actual		2,907	$	724,962	$	758,238	$	666,623	$	820,218


2009 Actual:
Quarter 1		422	$	124,422	$	143,195	$	526,116	$	776,473
Quarter 2		719		128,785		222,384		395,611		745,907
Quarter 3		797		96,859		262,127		287,833		576,563
Quarter 4		555		101,306		181,678		245,046		500,671


Total 2009 Actual		2,493	$	451,372	$	809,384


2010 Projected:
Quarter 1 (Actual)		279	$	122,151	$	101,286	$	228,620	$	552,899
Quarter 2 (Actual)		475		63,860		160,070		164,050		475,275
Quarter 3 (Projected)		551		57,140		178,395		106,910		318,352
Quarter 4 (Projected)		483		40,472		157,071		66,438		130,368


Total 2010 Projected		1,788	$	283,623	$	596,822

REDEVELOPMENT


	Total Capital				Reconstruction in
	Cost Invested		Remaining to		Progress at
	During Period (3)		Invest (5)		Period End

Total 2008 Actual	$	45,918	$	53,214	$	47,362


2009 Actual:
Quarter 1	$	12,031	$	40,056	$	40,477
Quarter 2		15,983		61,157		38,027
Quarter 3		12,868		54,489		31,389
Quarter 4		10,029		49,527		30,628


Total 2009 Actual	$	50,911


2010 Projected:
Quarter 1 (Actual)	$	12,654	$	36,873	$	27,915
Quarter 2 (Actual)		10,843		34,445		16,881
Quarter 3 (Projected)		12,636		21,809		16,665
Quarter 4 (Projected)		6,006		15,803		13,802


Total 2010 Projected	$	42,139


(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)		Amount for Q2 2010 includes $39.9 million expected to be financed by proceeds from third-party tax-exempt and taxable debt.

Attachment 12

AvalonBay Communities, Inc.
Future Development as of June 30, 2010

DEVELOPMENT RIGHTS (1)


Location of			Estimated		Total
Development			Number		Capital Cost (1)
Right			of Homes		(millions)

	1.	Seattle, WA		204	$	57
	2.	Wilton, CT		100		31
	3.	Plymouth, MA Phase II		91		18
	4.	Greenburgh, NY Phase II		444		120
	5.	Lynnwood, WA Phase II		82		18
	6.	North Bergen, NJ		164		47
	7.	Tysons Corner, VA I		354		80
	8.	San Francisco, CA		173		65
	9.	Wood-Ridge, NJ Phase I		266		60
	10.	Cohasset, MA		220		52
	11.	New York, NY Phase I		396		169
	12.	Boston, MA		180		97
	13.	Garden City, NY		160		51
	14.	Andover, MA		115		27
	15.	Shelton, CT		200		41
	16.	Wood-Ridge, NJ Phase II		140		32
	17.	Brooklyn, NY		861		443
	18.	Dublin, CA Phase II		486		145
	19.	Stratford, CT		130		25
	20.	Huntington Station, NY		424		100
	21.	Tysons Corner, VA II		338		87
	22.	Ocean Township, NJ		309		57
	23.	New York, NY Phase II		295		142
	24.	Seattle, WA II		272		81
	25.	Roselle Park, NJ		249		54
	26.	Rockville, MD		240		57
	27.	Ossining, NY		210		44
	28.	Hackensack, NJ		226		48


		Total		7,329	$	2,248


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

Attachment 13

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of June 30, 2010
(Dollars in thousands)

Accumulated

Weighted Average

Number of

Gross Sales

Depreciation

Economic

Initial Year

Weighted Average

Communities Sold (2)

Price

GAAP Gain

and Other

Gain (4)

Mkt. Cap Rate (3) (4)

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 (11)

190,450

72,220

48,024

24,196

5.8

8.9

1998 - 2010 Total

3,648,853

1,441,729

333,269

1,108,460

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 June 30, 2010 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 the Fund in which the Company holds a 15.2% equity interest.

(10)		2009 GAAP and Economic Gain include the settlement recognition of approximately $2,770 in deferred gains for six prior year dispositions, recognition of which occurred in conjunction with the November 2009 settlement of previously disclosed litigation with The Equal Rights Center, involving accessibility of our communities.

(11)		2010 GAAP and Economic Gain include the recognition of approximately $2,300 in deferred gains from one prior year disposition, recognition of which occurred in conjunction with the April 2010 settlement of previously disclosed litigation involving the homeowners association of that community.

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 companys 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):


	Q2			Q2		YTD			YTD
	2010			2009		2010			2009

Net income attributable to common stockholders	$	51,125		$	17,674	$	123,648		$	65,099
Depreciation real estate assets, including discontinued operations and joint venture adjustments		58,593			54,126		115,605			107,651
Distributions to noncontrolling interests, including discontinued operations		14			14		27			39
Gain on sale of unconsolidated entities holding previously depreciated real estate assets
Gain on sale of previously depreciated real estate assets		(21,929	)				(72,220	)

FFO attributable to common stockholders	$	87,803		$	71,814	$	167,060		$	172,789


Average shares outstanding diluted		84,245,105			80,042,294		83,247,995			79,898,287
Earnings per share diluted	$	0.61		$	0.22	$	1.49		$	0.82

FFO per common share diluted	$	1.04		$	0.90	$	2.01		$	2.16

The Companys results for the quarter ended and year-to-date June 30, 2010 and the comparable prior year periods include the non-routine items outlined in the following table:

Attachment 14 (continued)

Non-Routine Items
Decrease (Increase) in Net Income and FFO
(dollars in thousands)


	Q2			YTD			Q2			YTD
	2009			2009			2010			2010

Land impairments & abandoned pursuits	$	22,400		$	22,400		$			$
Severance and related costs (1)		2,000			2,000			(1,550	)		(1,550	)
Gain on unsecured notes repurchase					(1,062	)
Joint venture income adjustment (2)					(3,894	)
Severe weather costs (3)											672
Legal settlement proceeds, net (1)		(2,100	)		(2,100	)		(927	)		(927	)

Total non-routine items	$	22,300		$	17,344		$	(2,477	)	$	(1,805	)


Weighted average dilutive shares outstanding		80,042,294			79,898,287			84,245,105			83,247,995


(1)		Non-routine item for 2010 was included in the Companys Outlook provided in June 2010.

(2)		Reflects the Companys promoted interest of $3,894 in joint ventures

(3)		Costs relate to severe winter weather experienced on the East Coast in the fourth quarter of 2009 and the first quarter of 2010

Projected FFO, as provided within this release in the Companys 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 third quarter 2010 to the range provided for projected EPS (diluted) is as follows:


	Low		High
	range		range

Projected EPS (diluted) Q3 2010	$	0.22	$	0.26
Projected depreciation (real estate related)		0.71		0.71
Projected gain on sale of operating communities

Projected FFO per share (diluted) Q3 2010	$	0.93	$	0.97

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, 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.

Attachment 14 (continued)

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


	Q2			Q2			Q1			YTD			YTD
	2010			2009			2010			2010			2009

Net income	$	51,066		$	16,723		$	72,366		$	123,432		$	63,824
Indirect operating expenses, net of corporate income		7,849			7,362			7,232			15,080			15,936
Investments and investment management expense		1,047			907			1,039			2,086			1,822
Expensed development and other pursuit costs		443			2,281			505			947			3,375
Interest expense, net		41,458			36,880			42,541			83,999			67,010
(Gain) loss on extinguishment of debt, net														(1,062	)
General and administrative expense		4,041			5,390			8,895			12,936			12,637
Joint venture loss (income)		(463	)		(492	)		(227	)		(689	)		(3,949	)
Depreciation expense		57,479			51,174			56,095			113,574			101,247
Impairment loss land holdings					20,302									20,302
Gain on sale of real estate assets		(21,929	)					(50,291	)		(72,220	)
Income from discontinued operations		(244	)		(3,664	)		(1,995	)		(2,240	)		(7,629	)

NOI from continuing operations	$	140,747		$	136,863		$	136,160		$	276,905		$	273,513


Established:
New England	$	22,300		$	22,814		$	21,643		$	43,944		$	45,497
Metro NY/NJ		30,589			32,044			29,507			60,096			62,628
Mid-Atlantic/Midwest		18,665			18,528			17,546			36,211			37,111
Pacific NW		4,249			4,944			4,426			8,675			10,150
No. California		20,245			21,815			20,158			40,403			45,390
So. California		9,431			10,224			9,707			19,137			20,994

Total Established		105,479			110,369			102,987			208,466			221,770

Other Stabilized		18,146			10,338			16,869			35,014			18,178
Development/Redevelopment		17,122			16,156			16,304			33,425			33,565

NOI from continuing operations	$	140,747		$	136,863		$	136,160		$	276,905		$	273,513

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2009 through June 30, 2010 or classified as held for sale at June 30, 2010). A reconciliation of NOI from communities sold or classified as discontinued operations to net income for these communities is as follows (dollars in thousands):


	Q2		Q2		YTD		YTD
	2010		2009		2010		2009

Income from discontinued operations	$	244	$	3,664	$	2,240	$	7,629
Interest expense, net				505				683
Depreciation expense				2,563				5,130

NOI from discontinued operations	$	244	$	6,732	$	2,240	$	13,442


NOI from assets sold	$	244	$	6,732	$	2,240	$	13,442
NOI from assets held for sale

NOI from discontinued operations	$	244	$	6,732	$	2,240	$	13,442

Projected NOI, as used within this release for certain Development Communities and in calculating the Initial Year Market Cap Rate for dispositions, represents managements estimate, as of the date of this release (or as of the date of the buyers 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 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 buyers valuation. Projected stabilized rental revenue represents managements estimate of projected gross potential (based on leased rents for occupied homes and Market Rents, as defined below, for vacant homes) minus projected

Attachment 14 (continued)

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 Companys 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 managements 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 Companys 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.

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			YTD			YTD
	2010			2009			2010			2009
Rental revenue (GAAP basis)	$	161,641		$	165,104		$	321,280		$	331,670
Concessions amortized		1,146			2,724			2,746			5,632
Concessions granted		(475	)		(2,567	)		(1,069	)		(4,775	)

Rental revenue (with concessions on a cash basis)	$	162,312		$	165,261		$	322,957		$	332,527


% change GAAP revenue					(2.1	%)					(3.1	%)

% change cash revenue					(1.8	%)					(2.9	%)

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 both the three months ended June 30, 2010 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 attributable to the Company before interest income and expense, income taxes, depreciation and amortization.

Attachment 14 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the second quarter of 2010 are as follows (dollars in thousands):


Net income attributable to the Company	$	51,125
Interest expense, net		41,458
Depreciation expense		57,479

EBITDA	$	150,062


EBITDA from continuing operations	$	127,889
EBITDA from discontinued operations		22,173

EBITDA	$	150,062


EBITDA from continuing operations	$	127,889


Interest charges	$	41,458

Interest coverage		3.1

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 managements estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation, amortization and extraordinary items. For this purpose, managements 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 Companys 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

Attachment 14 (continued)

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 Companys 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 either outstanding secured debt or land leases (excluding land leases with purchase options that were put in place for governmental incentives or tax abatements) 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 Companys 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, 2010 is as follows (dollars in thousands):


NOI for Established Communities	$	208,466
NOI for Other Stabilized Communities		35,014
NOI for Development/Redevelopment Communities		33,425

Total NOI generated by real estate assets		276,905
NOI on encumbered assets		91,732

NOI on unencumbered assets		185,173

Unencumbered NOI		67	%

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 2010, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2009 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, 2009, but have stabilized occupancy as of January 1, 2010. 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 considered substantial when capital invested during the reconstruction effort is expected to exceed either $5,000,000 or 10% of the communitys pre-development basis and is expected to have a material impact on the communitys 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 communitys gross revenue.

Attachment 14 (continued)

Market Rents as reported by the Company are based on the current market rates set by the managers of the Companys 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 (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 managements projected rents.

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 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.

Form: 8-K

Documents