Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
October 21, 2003

AVALONBAY COMMUNITIES, INC. ANNOUNCES
THIRD QUARTER 2003 OPERATING RESULTS

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

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

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

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

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

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

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

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

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

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

Established Communities Operating Statistics

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

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

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

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

Development Activity

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

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

Disposition Activity

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

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

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

Financing, Liquidity and Balance Sheet Statistics

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

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

Issuance of Common Stock

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

Recently Issued Accounting Standards

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

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

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

Outlook

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

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

Other Matters

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

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

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

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

Forward-Looking Statements

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

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

Copyright © 2003 AvalonBay Communities, Inc. All Rights Reserved

THIRD QUARTER 2003
Supplemental Operating and Financial Data

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

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

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

THIRD QUARTER 2003

Supplemental Operating and Financial Data

Table of Contents

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

Attachment 1

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

Debt Composition and Maturities ⁽¹⁾

Community Information

Analysis of Capitalized Costs

Attachment 2

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

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

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

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

Attachment 3

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

Attachment 4

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