Exhibit 99.1

AvalonBay Communities, Inc.

For Immediate News Release April 29, 2003

AVALONBAY COMMUNITIES, INC. ANNOUNCES
FIRST QUARTER 2003 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended March 31, 2003 was $33,700,000, resulting in Earnings per Share (“EPS”) of $0.49 (diluted), compared to $0.51 (diluted) for the comparable period of 2002, a per share decrease of 3.9%.

Funds from Operations (“FFO”) for the quarter ended March 31, 2003 was $57,557,000 or $0.83 per share (diluted) compared to $69,710,000 or $0.99 per share (diluted) for the comparable period of 2002, a per share decrease of 16.2%.

Net Operating Income (“NOI”) from continuing operations for the quarter ended March 31, 2003 decreased by $4,258,000 or 4.0% to $103,504,000 compared to the comparable period of 2002. NOI from assets sold or held for sale as of March 31, 2003 decreased by $1,638,000 or 31.0% to $3,643,000 for the quarter ended March 31, 2003 as compared to the comparable period in 2002.

Operating Results for the Quarter Ended March 31, 2003 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $1,415,000, or 0.9% to $160,224,000, and earnings before interest, income taxes, depreciation and amortization (“EBITDA”) decreased by $5,812,000 or 5.8% to $95,253,000. EBITDA during the quarter ended March 31, 2003 was impacted by lower revenue from soft market conditions and higher expenses due to inclement weather. The Company estimates that severe winter weather impacted overall operating results by approximately $1,440,000.

For Established Communities, rental revenue decreased 5.8%, comprised of a rental rate decline of 6.2% and an increase in economic occupancy of 0.4%. Total revenue decreased $6,962,000 to $113,354,000 and operating expenses increased $2,969,000, or 9.2%. Accordingly, NOI decreased by $9,931,000 or 11.3%. The Company estimates that severe winter weather contributed to the increase in operating expenses and the decrease in NOI for Established Communities by approximately $970,000.

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

Sequential Operating Results for the Quarter Ended March 31, 2003 Compared to the Quarter Ended December 31, 2002

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

Established Communities Operating Statistics

Market Rents, as determined by the Company, declined by an average of 2.0% in the first quarter compared to the same quarter in the prior year. The greatest declines, on a year over year basis, were in Oakland-East Bay, CA with a decline of 6.1% from the first quarter of 2002, San Jose, CA with a decline of 5.7% and New York with a decline of 4.0%. Sequentially, as compared to the fourth quarter of 2002, market rents declined 0.7% with the largest declines in Chicago at 1.6% and in Fairfield-New Haven, CT at 1.6%.

Economic Occupancy was 93.4% during the first quarter 2003, increasing 0.4% over the same quarter last year. Sequentially, from the fourth quarter of 2002 to the first quarter of 2003, Economic Occupancy decreased 0.5%. The largest declines in the first quarter 2003 as compared to the fourth quarter 2002 were in Los Angeles at 2.9% and Central New Jersey at 2.4%.

Cash concessions, as a percentage of Market Rent for Established Communities averaged 2.2% during the first quarter of 2003, as compared to 1.4% in the first quarter of 2002 and 2.6% in the fourth quarter of 2002. During the first quarter of 2003, cash concessions as a percentage of Market Rent were highest in Chicago at 5.5% and Washington, D.C. at 4.4%.

In accordance with Generally Accepted Accounting Principles (“GAAP”), cash concessions are amortized over the approximate lease term, which is generally one year. However, the Company considers rental revenue with concessions stated on a cash basis to be a supplemental measure to rental revenue in conformity with GAAP in helping investors to understand the impact of concessions on rental revenue and to more readily enable comparisons to revenue as reported by other companies. A reconciliation of rental revenue from Established Communities in conformity with GAAP to rental revenue adjusted to state concessions on a cash basis is as follows (dollars in thousands):

Development Activity

The Company completed two development communities during the first quarter of 2003 for a Total Capital Cost, in the aggregate, of approximately $99,100,000. Avalon on Stamford Harbor, located in Stamford, Connecticut, is a mid-rise community containing 323 apartment homes and was completed for a Total Capital Cost of $60,700,000. Avalon at Flanders Hill, located in the greater Boston, Massachusetts area, is a garden-style community containing 280 apartment homes and was completed for a Total Capital Cost of $38,400,000.

Disposition Activity

The Company sold one community, Avalon Westside Terrace (located in Los Angeles, California), during the first quarter of 2003. This 363 apartment home community was originally constructed in 1966 and was acquired by the Company in 1997. The sales price for this community was $46,700,000, resulting in a gain as reported in accordance with GAAP of $14,072,000. The gross capitalized cost (before accumulated depreciation) at the date of sale was $37,252,000 and the Initial Year Market Cap Rate relating to this community was 5.9%.

Financing, Liquidity and Balance Sheet Statistics

As of March 31, 2003, the Company had $175,000,000 outstanding under its $500,000,000 unsecured credit facility and unrestricted cash of approximately $47,853,000. Unrestricted cash as of March 31, 2003 included the net proceeds from the sale of Avalon Westside Terrace of approximately $46,400,000, which were used to repay a portion of the unsecured credit facility subsequent to March 31, 2003. The remaining available cash, the unsecured credit facility, net proceeds from anticipated asset sales in 2003 and cash retained from operations, will be used to fund development and redevelopment activity, provide letters of credit, repay debt and repurchase/redeem equity securities.

Leverage, as measured by debt as a percentage of total market capitalization, was 48.8% at March 31, 2003. EBITDA covered interest expense (including discontinued operations), net of interest income, by 2.8 times. For the first quarter of 2003, Unencumbered NOI was approximately 80%.

Stock Activity

In July 2002, the Company announced a common stock repurchase program, under which the Company may acquire shares of its common stock in open market or negotiated transactions. As of March 31, 2003, the Company had repurchased 2,380,600 shares of common stock at an aggregate cost of $89,566,000 through this program. Of the aggregate shares repurchased, the Company repurchased 1,099,000 during the quarter ended March 31, 2003 at an average price of $36.24 per share.

On March 20, 2003, the Company redeemed all 3,267,700 outstanding shares of its 8.00% Series D Cumulative Redeemable Preferred Stock at a price of $25.00 per share, plus $0.0167 in accrued and unpaid dividends. The redemption was funded by the sale on March 18, 2003 of 3,336,611 shares of Series J Cumulative Redeemable Preferred Stock through a private placement to an institutional investor. The dividend rate on the Series J Cumulative Redeemable Preferred Stock is initially based upon three month LIBOR plus 1.5% and is redeemable at any time at the Company’s option. The Company expects to redeem all of the Series J Cumulative Redeemable Preferred Stock during the second quarter of 2003.

Adoption of Statement of Financial Accounting Standards No. 123

Effective January 1, 2003, the Company adopted the fair value recognition provisions of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation,” prospectively to all employee stock option awards granted, modified, or settled on or after January 1, 2003. The adoption of this statement impacted EPS for the quarter ended March 31, 2003 by less than $0.01.

Outlook

For the second quarter 2003, the Company expects EPS (diluted) in the range of $1.18 to $1.23 and FFO per share (diluted) in the range of $0.79 to $0.84. For the full year 2003, the Company expects EPS (diluted) in the range of $3.17 to $3.37, reflecting the impact of additional planned dispositions. The Company provided a full year 2003 range for FFO per share (diluted) of $3.15 to $3.35 in December 2002 and affirms that range as of April 29, 2003.

Other Matters

The Company will hold a conference call on April 30, 2003 at 1:00 PM Eastern Time (EDT) to review and answer appropriate questions about these results and projections, the earnings release attachments described below, and related matters. The domestic number to call to participate is 1-877-510-2397. The international number to call to participate is 1-706-634-5877. The domestic number to hear a replay of this call is 1-800-642-1687, and the international number to hear a replay of this call is 1-706-645-9291 — Access Code: 9409911.

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.

In addition to Attachment 13 included herein and referred to below, the Company produces additional Earnings Release Attachments (collectively, with Attachment 13, the “Attachments”) that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company’s website and through e-mail distribution. Access to the full earnings release including the Attachments through the Company’s website is available at http://www.avalonbay.com/earnings. If you would like to receive future press releases via e-mail, please register through the Company’s website at http://www.avalonbay.com/Template.cfm?Section=Subscribe. Some items referenced in the earnings release may require the Adobe Acrobat 5.0 Reader. If you do not have the Adobe Acrobat 5.0 Reader, you may download it at the following website address: http://www.adobe.com/products/acrobat/readstep.html.

Definitions and Reconciliations

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

About AvalonBay Communities, Inc.

AvalonBay currently owns or holds an ownership interest in 147 apartment communities containing 43,245 apartment homes in eleven states and the District of Columbia, of which ten communities are under construction and two communities are under reconstruction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing upscale apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on

AvalonBay’s Website at http://www.avalonbay.com. For additional information, please contact Bryce Blair, Chairman, Chief Executive Officer and President, at (703) 317-4652 or Thomas J. Sargeant, Executive Vice President and Chief Financial Officer, at (703) 317-4635.

Forward-Looking Statements

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

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

FIRST QUARTER 2003

Supplemental Operating and Financial Data

Avalon New Canaan, located in New Canaan, Connecticut, contains 104 apartment
homes featuring fully applianced kitchens, private patios or balconies, walk-in closets,
full size washers and dryers and upgraded kitchens. Optional amenities include gas
fireplaces, lofts, bay windows, direct-access garages and detached garages.
Residents also enjoy many community amenities including a clubhouse, fully
equipped fitness center and outdoor heated pool.

Avalon New Canaan is conveniently located one mile from the Merritt Parkway and
three miles from I-95. The community is also located within walking distance of
downtown New Canaan and New Canaan’s Metro North Train station with commuter
service to New York City, providing easy access to the area’s employment centers.

New Canaan, Connecticut has difficult zoning and entitlement restrictions that create
a high barrier-to-entry market. The Company worked diligently over a nine-year
period to gain the entitlements to build this community. Avalon New Canaan
exemplifies the essence of the AvalonBay story - developing assets and creating
value in the most supply-constrained markets in the country.

FIRST QUARTER 2003

Supplemental Operating and Financial Data

Table of Contents

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

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
March 31, 2003
(Dollars in thousands except per share data)
(unaudited)

     Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
March 31, 2003
(Dollars in thousands except per share data)
(unaudited)

     Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
March 31, 2003
(Dollars in thousands)
(unaudited)

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes — Established Communities ⁽¹⁾
March 31, 2003