EXHIBIT 99.2

AvalonBay Communities, Inc.

For Immediate News Release
January 21, 2004

AVALONBAY COMMUNITIES, INC. ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2003 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended December 31, 2003 was $98,108,000, resulting in Earnings per Share (“EPS”) of $1.36 (diluted), compared to $0.91 (diluted) for the comparable period of 2002, a per share increase of 49.5%. For the year ended December 31, 2003, EPS was $3.73 (diluted) compared to $2.23 (diluted) for the comparable period of 2002, a per share increase of 67.3%.

The Company reports Funds from Operations attributable to common stockholders (“FFO”) in accordance with the standards established by NAREIT. FFO for the quarter and year ended December 31, 2003 totaled $58,464,000 and $229,332,000, respectively, or $0.81 and $3.27 per share (diluted). This compares to $0.75 or $3.55 per share (diluted) for the quarter and year ended December 31, 2002, respectively. NAREIT clarified the definition of FFO in 2003 to include impairment losses, and the 2002 amounts above reflect FFO under this clarified definition. For comparative purposes, FFO as originally reported in 2002 was $0.85 and $3.65 per share (diluted) for the quarter and year ended December 31, 2002, respectively.

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

For the Company, including discontinued operations, total revenue decreased by $3,766,000, or 2.3% to $157,530,000. For Established Communities, rental revenue decreased 3.1%, due to a decline in rental rates of 3.3%, partially offset by an increase in economic occupancy of 0.2% between periods. Total revenue for Established Communities decreased $3,567,000 to $111,391,000 and operating expenses increased $605,000, or 1.7%, to $35,571,000. Accordingly, Net Operating Income (“NOI”) for Established Communities decreased by $4,172,000 or 5.2%, to $75,820,000.

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

Sequential Operating Results for the Quarter Ended December 31, 2003 Compared to the Quarter Ended September 30, 2003

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

Operating Results for the Year Ended December 31, 2003 Compared to the Prior Year

For the Company, including discontinued operations, total revenue decreased by $6,590,000, or 1.0% to $633,494,000. For Established Communities, rental revenue decreased 4.3%, comprised of a rental rate decline of 4.5%, partially offset by an increase in economic occupancy of 0.2%. Total revenue for Established Communities decreased $20,525,000 to $450,130,000 and operating expenses increased $7,194,000, or 5.2%, to $144,909,000. Accordingly, NOI for Established Communities decreased by $27,719,000 or 8.3%, to $305,221,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the year ended December 31, 2002 to the year ended December 31, 2003:

Established Communities Operating Statistics

Market Rents, as determined by the Company, declined by an average of 1.2% in the fourth 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 5.6%, Boston, MA with a decline of 4.1% and San Francisco, CA with a decline of 3.6% from the fourth quarter of 2002. Sequentially, as compared to the third quarter of 2003, market rents remained stable for the Established Community portfolio as a whole.

Economic Occupancy was 94.1% during the fourth quarter of 2003, increasing 0.2% as compared to the same quarter last year. Sequentially, from the third quarter to the fourth quarter of 2003, Economic Occupancy increased 0.1%. The largest increases in the fourth quarter 2003 as compared to the third quarter were in Central New Jersey at 3.6%, San Francisco, CA at 1.7% and Northern New Jersey at 1.2%. These increases in Economic Occupancy were partially offset by decreases in Fairfield-New Haven, CT of 2.6% and Long Island, NY of 2.5%.

Cash concessions are recognized on an accrual basis in accordance with Generally Accepted Accounting Principles (“GAAP”) and are amortized over the approximate lease term, which is generally one year. For the fourth quarter of 2003, rental revenue (with concessions on a cash basis) decreased 2.6% as compared to the fourth quarter of 2002 (versus a decrease of 3.1% on a GAAP basis) and remained flat as compared to the third quarter of 2003 (versus a decrease of 0.9% on a GAAP basis).

Concessions granted per move-in for Established Communities averaged $949 during the fourth quarter of 2003, an increase of 38.3% from $686 in the fourth quarter of 2002 and an increase of 8.7% from $873 in the third quarter of 2003.

Development Activity

The Company completed two development communities during the fourth quarter of 2003. Avalon Glendale, located near Los Angeles, CA is a garden-style community containing 223 apartment homes and was completed for a Total Capital Cost of $40,400,000. Avalon at Newton Highlands, located in the greater Boston, MA area, is a mid-rise community containing 294 apartment homes and was completed for a Total Capital Cost of $57,700,000.

During the fourth quarter of 2003, the Company commenced construction of three communities, Avalon Chrystie Place I, located in New York, NY, Avalon at The Pinehills I, located in the Boston, MA area and Avalon Pines I, located in the Long Island, NY area. These communities, when completed, are expected to contain an aggregate of 760 apartment homes for a Total Capital Cost of $218,500,000. The Company expects Avalon Chrystie Place I to be financed under a joint venture structure, with the Company’s portion of the Total Capital Cost projected to be $30,000,000, including community-based tax-exempt debt.

Disposition Activity

During the fourth quarter, the Company sold three communities, Avalon Crest (located in Fort Lee, New Jersey), Avalon at Fair Lakes and Avalon at Dulles (both located in the greater Washington, DC metro area). These three communities, which contained a total of 821 apartment homes, were sold for an aggregate sales price of $159,025,000. The sale of these communities resulted in a gain as reported in accordance with GAAP of $77,598,000 and an Economic Gain of $62,049,000. The weighted average Initial Year Market Cap Rate related to these communities was 5.8%. In addition, the Company sold a parcel of land located in Oakland, CA for a sales price of $6,700,000, resulting in a GAAP gain of $1,234,000.

In the aggregate, the Company sold twelve communities with 3,634 apartment homes during 2003 for a gross sales price of approximately $453,900,000, including one community in which the Company held a 50% membership interest. The sale of these twelve communities in 2003 resulted in a GAAP gain, including amounts reflected in joint venture income and minority interest, of $183,204,000 and an Economic Gain of $130,591,000. The combined weighted average Initial Year Market Cap Rate for the twelve communities sold during 2003 was 6.3%, the weighted average Unleveraged IRR was 15.0% and the weighted average Economic Gain as a percentage of Total Capital Cost was 41.1%.

Financing, Liquidity and Balance Sheet Statistics

As of December 31, 2003, the Company had $51,100,000 outstanding under its $500,000,000 unsecured credit facility and unrestricted cash of approximately $7,196,000. This unrestricted cash, the unsecured credit facility, net proceeds from anticipated asset sales in 2004 and cash retained from operations, will be used to fund development and redevelopment activity and for general corporate purposes.

Leverage, as measured by debt as a percentage of total market capitalization, was 39.9% at December 31, 2003. Unencumbered NOI was approximately 80% for 2003 and Interest Coverage for the fourth quarter of 2003 was 2.7 times.

2004 Outlook

As noted in the Company’s initial 2004 financial outlook provided on December 18, 2003, the Company expects EPS (diluted) in the range of $0.36 to $0.40 for the first quarter of 2004 and $1.49 to $1.67 for the full year 2004.

The Company expects Projected FFO per share (diluted) in the range of $0.75 to $0.79 for the first quarter of 2004 and $3.13 to $3.31 for the full year 2004.

First Quarter 2004 Conference Schedule

The Company is scheduled to participate in the Smith Barney 2004 REIT CEO Conference at The Breakers hotel in Palm Beach, FL on March 1-2, 2004. Management is scheduled to give a presentation at this conference on Monday, March 1, 2004 at 3:45 PM Eastern Time (EST). Management’s presentation will be followed by a question and answer session during which management may discuss the Company’s current operating environment; operating trends; current development, disposition and acquisition activity; the Company’s outlook and other business and financial matters affecting the Company. A live, listen-only webcast of the Company’s presentation will be available on the Company’s website at http://www.avalonbay.com/events.

Other Matters

The Company will hold a conference call on January 22, 2004 at 1:00 PM EST 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: 4573066.

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 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 14, “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 41,997 apartment homes in ten states and the District of Columbia, of which eleven communities are under construction and two communities are under reconstruction. AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay’s website at http://www.avalonbay.com. For additional information, please contact Bryce Blair, Chairman, Chief Executive Officer and President, at (703) 317-4652 or Thomas J. Sargeant, Chief Financial Officer, at (703) 317-4635.

Forward-Looking Statements

This release, including its attachments, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the Company’s use of words such as “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. Actual results may differ materially from those expressed or implied by the forward-looking statements as a result of risks and uncertainties, 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 first quarter or full year 2004. 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.

FOURTH QUARTER 2003

Supplemental Operating and Financial Data

Avalon at Newton Highlands is conveniently located in the retail and commercial
corridor along Needham Street in Newton, Massachusetts, and is the first new
apartment community in the City of Newton in over 20 years. The community’s
location, approximately one mile east of Route 128, six miles west of Downtown
Boston and a half-mile from a subway station, provides residents with convenient
commuting to major area employers. Two of the region’s premier shopping malls
along Route 9 are located a quarter-mile from the community.

Avalon at Newton Highlands contains 294 studios, one-, two- and three-bedroom
apartment homes in two, four-story mid-rise buildings. Apartment home features
include fully applianced kitchens, nine-foot ceilings, private patios or balconies, and
full-size washers and dryers. Optional amenities include cherry kitchen cabinets, gas
fireplaces and lofts. Residents also enjoy many community amenities including a
clubhouse, fully equipped fitness center, outdoor heated pool, multi-sport court,
putting green, billiards room and resident lounge.

Avalon at Newton Higlands increases AvalonBay’s presence in the Boston,
Massachussetts region to 15 communities with more than 3,700 apartment homes.

FOURTH 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 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
December 31, 2003
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION

DEBT COMPOSITION AND MATURITIES

CAPITALIZED COSTS

COMMUNITY INFORMATION

Attachment 2

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

Attachment 3

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

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

December 31, 2003