July 20, 2004 - EXHIBIT 99.2 - 8-K: Current report filing

Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
July 19, 2004

AVALONBAY COMMUNITIES, INC. ANNOUNCES
SECOND QUARTER 2004 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE/PCX: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended June 30, 2004 was $32,859,000, resulting in Earnings per Share diluted (EPS) of $0.46, compared to $1.08 for the comparable period of 2003, a per share decrease of 57.4%. For the six months ended June 30, 2004, EPS was $0.79 compared to $1.57 for the comparable period of 2003, a per share decrease of 49.7%. These decreases are primarily attributable to lower gains on sale of communities recognized in 2004 as compared to 2003, due to reduced disposition activity. The Companys reported EPS for the quarter is lower than the estimate of $0.53 to $0.57 provided in April 2004 due to changes in the timing of planned dispositions.

Funds from Operations attributable to common stockholders diluted (FFO) for the quarter ended June 30, 2004 was $60,450,000, or $0.83 per share compared to $57,153,000, or $0.83 per share for the comparable period of 2003. FFO per share for the six months ended June 30, 2004 decreased by 2.4% to $1.62 from $1.66 for the comparable period in 2003. The Companys reported FFO per share for the quarter is higher than the estimate of $0.77 to $0.81 provided in April 2004 due to better than expected community operating results and lower than expected interest and property taxes.

Operating Results for the Quarter Ended June 30, 2004 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $5,396,000, or 3.4% to $163,734,000. For Established Communities, rental revenue decreased 0.8%, due to a decline in rental rates of 2.2%, partially offset by an increase in Economic Occupancy of 1.4% between periods. As a result, total revenue for Established Communities decreased $844,000 to $111,558,000. Operating expenses for Established Communities increased $77,000, or 0.2%, to $34,981,000, which includes a net reduction in property taxes of approximately $661,000 related to the successful resolution of a tax appeal for a community in the Northeast. Accordingly, Net

Operating Income (NOI) for Established Communities decreased by $921,000 or 1.2%, to $76,577,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the second quarter of 2003 to the second quarter of 2004:


2Q 04 Compared to 2Q 03
	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI*
Northeast		(0.9	%)		(1.0	%)		(0.8	%)		40.9	%
Mid-Atlantic		3.4	%		2.3	%		3.9	%		16.7	%
Midwest		2.2	%		2.8	%		1.7	%		2.1	%
Pacific NW		1.6	%		(0.4	%)		2.9	%		4.5	%
No. California		(4.2	%)		1.5	%		(6.5	%)		24.6	%
So. California		1.7	%		(1.8	%)		3.0	%		11.2	%

Total		(0.8	%)		0.2	%		(1.2	%)		100.0	%

Total represents each regions % of total NOI from the Company, including discontinued operations.

Sequential Operating Results for the Quarter Ended June 30, 2004 Compared to the Quarter Ended March 31, 2004

The following table reflects the sequential percentage changes in rental revenue, operating expenses and NOI for Established Communities from the first quarter to the second quarter of 2004:


2Q 04 Compared to 1Q 04
	Rental			Operating
	Revenue			Expenses			NOI
Northeast		2.6	%		(7.4	%)		8.0	%
Mid-Atlantic		2.3	%		2.0	%		2.4	%
Midwest		0.9	%		4.4	%		(1.6	%)
Pacific NW		0.7	%		3.8	%		(1.1	%)
No. California		(0.1	%)		1.2	%		(0.7	%)
So. California		(0.1	%)		0.7	%		(0.5	%)

Total		1.2	%		(1.6	%)		2.5	%


*Copyright © 2004 AvalonBay Communities, Inc. All Rights Reserved*

Operating Results for the Six Months Ended June 30, 2004 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $4,636,000, or 1.5% to $323,198,000. For Established Communities, rental revenue decreased 1.5%, comprised of a rental rate decline of 2.4%, partially offset by an increase in Economic Occupancy of 0.9%. Total revenue for Established Communities decreased $3,285,000 to $221,809,000 and operating expenses increased $1,100,000, or 1.6%, to $70,514,000. Accordingly, NOI for Established Communities decreased by $4,385,000 or 2.8%, to $151,295,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the six months ended June 30, 2004 compared to the six months ended June 30, 2003:


YTD 2004 Compared to YTD 2003
	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI*
Northeast		(1.6	%)		1.5	%		(3.0	%)		39.5	%
Mid-Atlantic		2.9	%		2.7	%		3.0	%		17.2	%
Midwest		0.8	%		(5.6	%)		6.0	%		2.1	%
Pacific NW		0.5	%		0.3	%		0.7	%		4.9	%
No. California		(5.1	%)		3.0	%		(8.1	%)		25.0	%
So. California		1.3	%		0.5	%		1.6	%		11.3	%

Total		(1.5	%)		1.6	%		(2.8	%)		100.0	%

Total represents each regions % of total NOI from the Company, including discontinued operations.

Established Communities Operating Statistics

Despite improving occupancy, Established Community rental revenue for the second quarter of 2004 declined on a year-over-year basis due to lower rental rates resulting from continued high concessions. However, rental revenue from Established Communities has increased sequentially for five consecutive months, largely due to increases in occupancy, resulting in a sequential quarter increase in the second quarter of 2004.

Market Rents, as determined by the Company, averaged approximately $1,450 per home for the Established Community portfolio as a whole in the second quarter of 2004, remaining flat compared to average Market Rents for both the second quarter of 2003 and the first quarter of 2004.

Economic Occupancy was 95.2% during the second quarter of 2004, increasing 1.4% as compared to the second quarter of 2003 and increasing 1.2% as compared to the first quarter of 2004.

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 second quarter of 2004, rental revenue with concessions on a cash basis and rental revenue on a GAAP basis both decreased 0.8% as compared to the second quarter of 2003. Consistent with seasonal trends, cash concessions increased on an absolute basis in the second quarter of 2004 as compared to the first quarter. As a result, rental revenue with concessions on a cash basis increased 0.5% as compared to the first quarter of 2004 (versus an increase of 1.2% on a GAAP basis).

Concessions granted per move-in for Established Communities averaged $1,101 during the second quarter of 2004, an increase of 39.7% from $788 in the second quarter of 2003 and an increase of 7.9% from $1,020 in the first quarter of 2004.

Acquisition and Disposition Activity

During the second quarter of 2004, the Company acquired one community, Avalon at Redondo Beach, located in Los Angeles, CA. This garden-style community contains 105 apartment homes, and was acquired for an acquisition price of $24,565,000. In addition, on July 9, 2004 the Company acquired Briarcliffe Lakeside Apartments, located in Chicago, IL. This garden-style community contains 204 apartment homes and was acquired for an acquisition price of $14,700,000, which includes the assumption of $8,155,000 of fixed rate mortgage debt.

Also during the second quarter of 2004, the Company sold two communities, Avalon Greenbriar, located in Seattle, WA, and Avalon at Laguna Niguel, located in Orange County, CA. These two communities, which contained a total of 597 apartment homes, were sold for an aggregate sales price of $61,100,000, including the transfer of $29,155,000 of variable rate, tax-exempt debt. The sale of these communities resulted in a gain as reported in accordance with GAAP of $12,375,000 and an Economic Gain of $1,685,000. The weighted average Initial Year Market Cap Rate related to these communities was 5.9%.

Development Activity

During the second quarter of 2004, the Company commenced construction of three communities. Avalon at Juanita Village, located in Seattle, WA, is expected to contain 211 apartment homes when completed for a Total Capital Cost of $45,500,000. Avalon del Rey and Avalon Camarillo, both located in the Los Angeles, CA area, are expected to contain an aggregate of 558 apartment homes when completed for


*Copyright © 2004 AvalonBay Communities, Inc. All Rights Reserved*

an aggregate Total Capital Cost of $112,700,000. Avalon at Juanita Village will be owned and operated through a joint venture partnership that will be formed upon construction completion. The Company will contribute Avalon at Juanita Village to the joint venture, at which time the Company will be reimbursed for the Total Capital Cost, while retaining a promoted residual interest in the profits of the partnership. Avalon del Rey will also be owned and operated through a joint venture partnership that will be formed upon construction completion. The Company will contribute Avalon del Rey to the joint venture, while retaining a 30% equity interest in the joint venture.

Financing, Liquidity and Balance Sheet Statistics

The Company refinanced its $500,000,000 unsecured credit facility in May 2004 concurrent with the credit facilitys original maturity date. The terms of the credit facility are substantially the same as the Companys previous credit facility. Pricing under the facility is currently LIBOR plus 0.55% per year, a reduction of 0.05% from pricing for the previous facility, with a competitive bid option available that may provide for lower pricing if market conditions allow. The new credit facility has a term of three years, plus a one-year extension at the Companys option. As of June 30, 2004, the Company had $128,900,000 outstanding under this facility.

Leverage, as measured by debt as a percentage of total market capitalization, was 36.8% at June 30, 2004. Unencumbered NOI was approximately 81% for 2004 and Interest Coverage for the second quarter of 2004 was 2.7 times.

Outlook

The Company has lowered its range for projected EPS for 2004 due to changes in its disposition plan. The Company expects EPS in the range of $0.39 to $0.43 for the third quarter of 2004 and $1.47 to $1.57 for the full year 2004.

Although market fundamentals are improving in many of the Companys markets, concessions remain prevalent and rental rates are flat sequentially. The third quarter has historically been a period of high turnover, resulting in increased operating expenses, increased availability and continued pressure on rental rates. Accordingly, the Company expects Projected FFO per share in the third quarter of 2004 to be essentially flat as compared to the second quarter of 2004, and increase sequentially in the fourth quarter of 2004 from the third quarter of 2004.

As such, the Company expects Projected FFO per share in the range of $0.80 to $0.84 for the third quarter of 2004. Based on second quarter 2004 operating results and expectations for continued improvement in apartment fundamentals, the Company is increasing the mid-point of its Projected FFO range provided in

April 2004 by $0.06 to a revised Projected FFO range of $3.23 to $3.33 for the full year 2004.

Other Matters

The Company will hold a conference call on July 20, 2004 at 11 AM 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: 8106223.

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 Companys website and through e-mail distribution. The full earnings release including the Attachments is available at http://www.avalonbay.com/earnings. To receive future press releases via e-mail, please register through the Investor Relations section of the website at http://www.avalonbay.com/Template.cfm?Section=Subscribe. Some items referenced in the earnings release may require the Adobe Acrobat 6.0 Reader. If you do not have the Adobe Acrobat 6.0 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:

		FFO

		Projected FFO

		Established Communities

		NOI

		Market Rents

		Economic Occupancy

		Rental revenue (with concessions on a cash basis)

		Economic Gain

		Initial Year Market Cap Rate

		Total Capital Cost

		Leverage

		Unencumbered NOI

		Interest Coverage


*Copyright © 2004 AvalonBay Communities, Inc. All Rights Reserved*

About AvalonBay Communities, Inc.

As of June 30, 2004, AvalonBay owned or held an ownership interest in 147 apartment communities containing 42,676 apartment homes in ten states and the District of Columbia, of which 14 communities were under construction and one community was 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 AvalonBays 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 Companys 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 Companys accounting policies and other matters detailed 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, 2003 under the heading Managements 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 third quarter or the 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.


*Copyright © 2004 AvalonBay Communities, Inc. All Rights Reserved*

(AVALON BAY COMMUNITIES, INC. LOGO)

SECOND QUARTER 2004

Supplemental Operating and Financial Data

(PHOTO)

Avalon at Foxhall, a high-rise community containing 308 apartment homes, is
conveniently located in downtown Washington, DC. The Company recently
completed redevelopment of Avalon at Foxhall, which included upgrades to the kitchens,
baths, hallways, lobby, fitness center and elevators. Through its redevelopment program,
the Company successfully repositioned the community to a Class B+ property
and shifted the resident profile from primarily students to professionals.

Avalon at Foxhall is within a 15-minute walk to the Metro, providing transportation
throughout DC, Virginia and Maryland. The community borders
Glover Park and is near Embassy Row, the National Cathedral,
and American University.

Apartment home features include fully applianced kitchens, washers and dryers,
granite countertops, wood floors and optional fireplaces. Residents enjoy a
rooftop pool and deck, a newly renovated fully-equipped fitness center,
and a 24-hour concierge service.

Redevelopment of Avalon at Foxhall was completed for an incremental cost of $8.3 million.
Upon completion of redevelopment, the Total Capital Cost, including
the acquisition cost, was approximately $44 million.

SECOND QUARTER 2004

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

Sub-Market Profile
Quarterly Revenue and Occupancy Changes (Established Communities)		Attachment 4
Sequential Quarterly Revenue and Occupancy Changes (Established Communities)		Attachment 5
Year-to-Date Revenue and Occupancy Changes (Established Communities)		Attachment 6

Development, Redevelopment, Acquisition and Disposition Profile
Summary of Development and Redevelopment Activity		Attachment 7
Development Communities		Attachment 8
Redevelopment Communities		Attachment 9
Summary of Development and Redevelopment Community Activity		Attachment 10
Future Development		Attachment 11
Summary of Disposition Activity		Attachment 12

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 13

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 Companys 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 Companys filings with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2003.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
June 30, 2004
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q2		Q2					YTD		YTD
	2004		2003		% Change			2004		2003		% Change
Net income available to common stockholders (1)	$	32,859	$	73,762		(55.5	%)	$	55,961	$	107,462		(47.9	%)
Per common share basic	$	0.46	$	1.10		(58.2	%)	$	0.79	$	1.59		(50.3	%)
Per common share diluted	$	0.46	$	1.08		(57.4	%)	$	0.79	$	1.57		(49.7	%)

Funds from Operations (1)	$	60,450	$	57,153		5.8	%	$	117,829	$	114,710		2.7	%
Per common share diluted	$	0.83	$	0.83				$	1.62	$	1.66		(2.4	%)

Dividends declared common	$	50,316	$	47,278		6.4	%	$	100,343	$	94,447		6.2	%
Per common share	$	0.70	$	0.70				$	1.40	$	1.40


Common shares outstanding		71,879,228		67,536,888		6.4	%		71,879,228		67,536,888		6.4	%
Outstanding operating partnership units		579,782		967,759		(40.1	%)		579,782		967,759		(40.1	%)

Total outstanding shares and units		72,459,010		68,504,647		5.8	%		72,459,010		68,504,647		5.8	%


Average shares outstanding basic		71,409,668		67,231,296		6.2	%		71,164,908		67,427,853		5.5	%
Average operating partnership units outstanding		581,941		968,581		(39.9	%)		594,850		972,146		(38.8	%)
Effect of dilutive securities		1,045,875		703,268		48.7	%		1,031,712		607,505		69.8	%

Average shares outstanding diluted		73,037,484		68,903,145		6.0	%		72,791,470		69,007,504		5.5	%

DEBT COMPOSITION AND MATURITIES


			% of Total			Average
			Market			Interest			Remaining
Debt Composition	Amount		Cap			Rate (2)			Maturities (3)
Conventional Debt										2004	$	3,224
Long-term, fixed rate	$	1,893,783		28.5	%					2005	$	192,475
Long-term, variable rate		42,702		0.7	%					2006	$	156,584
Variable rate credit facility										2007	$	267,030
and short term note		165,211		2.5	%					2008	$	211,844

Subtotal, Conventional		2,101,696		31.7	%		6.3	%

Tax-Exempt Debt
Long-term, fixed rate		200,206		3.0	%
Long-term, variable rate		138,798		2.1	%

Subtotal, Tax-Exempt		339,004		5.1	%		5.0	%

Total Debt	$	2,440,700		36.8	%		6.1	%

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home
Q204	$	5,010	$	3,792	$	114
Q104	$	5,068	$	3,821	$	46
Q403	$	5,838	$	4,010	$	81
Q303	$	6,360	$	3,710	$	112

COMMUNITY INFORMATION


			Apartment
	Communities		Homes
Current Communities		133		38,527
Development Communities		14		4,149
Development Rights		40		10,728

(1)		2003 information has been revised from amounts previously reported to reflect additional preferred stock dividends of $280 as required under EITF Topic D-42.

(2)		Includes credit enhancement fees, facility fees, trustees fees, etc.

(3)		Excludes amounts under the $500,000 variable rate credit facility that, after all extensions, matures in 2008.

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
June 30, 2004
(Dollars in thousands except per share data)
(unaudited)


	Q2			Q2						YTD			YTD
	2004(1)			2003			% Change			2004(1)			2003			% Change
Revenue:
Rental and other income	$	162,101		$	149,101			8.7	%	$	318,832		$	296,840			7.4	%
Management, development and other fees		157			247			(36.4	%)		305			511			(40.3	%)

Total		162,258			149,348			8.6	%		319,137			297,351			7.3	%

Operating expenses:
Direct property operating expenses, excluding property taxes		38,718			35,495			9.1	%		76,520			69,553			10.0	%
Property taxes		15,055			13,961			7.8	%		30,629			28,141			8.8	%
Property management and other indirect operating expenses		9,248			7,056			31.1	%		17,404			15,053			15.6	%

Total		63,021			56,512			11.5	%		124,553			112,747			10.5	%

Interest income		36			880			(95.9	%)		56			1,782			(96.9	%)
Interest expense		(32,482	)		(34,067	)		(4.7	%)		(64,768	)		(68,041	)		(4.8	%)
General and administrative expense		(4,071	)		(3,623	)		12.4	%		(8,041	)		(7,254	)		10.8	%
Joint venture income, minority interest and venture partner interest in profit-sharing		(496	)		(27	)		1,737.0	%		(489	)		(97	)		404.1	%
Depreciation expense		(40,173	)		(37,053	)		8.4	%		(79,745	)		(73,723	)		8.2	%

Income from continuing operations before cumulative effect of change in accounting principle		22,051			18,946			16.4	%		41,597			37,271			11.6	%
Discontinued operations: (2)
Income from discontinued operations		608			3,011			(79.8	%)		1,792			8,002			(77.6	%)
Gain on sale of communities		12,375			54,511			(77.3	%)		12,375			68,583			(82.0	%)

Total discontinued operations		12,983			57,522			(77.4	%)		14,167			76,585			(81.5	%)

Income before cumulative effect of change in accounting principle		35,034			76,468			(54.2	%)		55,764			113,856			(51.0	%)
Cumulative effect of change in accounting principle											4,547						100.0	%

Net income		35,034			76,468			(54.2	%)		60,311			113,856			(47.0	%)
Dividends attributable to preferred stock		(2,175	)		(2,706	)		(19.6	%)		(4,350	)		(6,394	)		(32.0	%)

Net income available to common stockholders	$	32,859		$	73,762			(55.5	%)	$	55,961		$	107,462			(47.9	%)

Net income per common share- basic	$	0.46		$	1.10			(58.2	%)	$	0.79		$	1.59			(50.3	%)

Net income per common share- diluted	$	0.46		$	1.08			(57.4	%)	$	0.79		$	1.57			(49.7	%)

	(1)		Operations for the periods ended June 30, 2004 include the operations of a community in which the Company holds a variable interest. This community is consolidated as of January 1, 2004 as required by the Financial Accounting Standards Board (FASB) Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin (ARB) No. 51.

	(2)		Reflects net income for communities held for sale as of June 30, 2004 and communities sold during the period from January 1, 2003 through June 30, 2004. The following table details income from discontinued operations as of the periods shown:


	Q2			Q2			YTD			YTD
	2004			2003			2004			2003
Rental income	$	1,476		$	8,990		$	4,061		$	21,211
Operating and other expenses		(816	)		(4,076	)		(1,931	)		(8,914	)
Interest expense, net		(52	)		(578	)		(213	)		(1,168	)
Minority interest expense					(193	)					(389	)
Depreciation expense					(1,132	)		(125	)		(2,738	)

Income from discontinued operations (3)	$	608		$	3,011		$	1,792		$	8,002

(3)

NOI for discontinued operations totaled $660 and $2,130 for the three and six months ended June 30, 2004, respectively, of which $196 and $1,140, respectively, related to assets sold.

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets
Detailed Operating Information
(Dollars in thousands)
(unaudited)


	June 30,			December 31,
	2004 (1)			2003
Real estate	$	5,322,546		$	5,069,036
Less accumulated depreciation		(775,893	)		(684,021	)

Net operating real estate		4,546,653			4,385,015

Construction in progress (including land)		248,516			253,158
Real estate assets held for sale, net		51,017			98,216

Total real estate, net		4,846,186			4,736,389

Cash and cash equivalents		2,501			7,165
Cash in escrow		12,268			11,825
Resident security deposits		24,359			20,891
Other assets (2)		125,356			133,312

Total assets	$	5,010,670		$	4,909,582

Unsecured senior notes	$	1,859,436		$	1,835,284
Unsecured facility		128,900			51,100
Notes payable		451,800			422,278
Liabilities related to assets held for sale		613			30,239
Other liabilities		245,123			234,595

Total liabilities	$	2,685,872		$	2,573,496

Minority interest		23,669			24,752
Stockholders equity		2,301,129			2,311,334

Total liabilities and stockholders equity	$	5,010,670		$	4,909,582

	(1)		Balances for June 30, 2004 include a community in which the Company holds a variable interest. This community is consolidated as of January 1, 2004 as required by the Financial Accounting Standards Board (FASB) Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin (ARB) No. 51.

	(2)		Other assets includes $356 and $1,428 relating to discontinued operations as of June 30, 2004 and December 31, 2003, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes - Established Communities (1)
June 30, 2004


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's) (3)
			Q2 04		Q2 03		% Change			Q2 04			Q2 03			% Change			Q2 04		Q2 03		% Change
Northeast
Fairfield-New Haven, CT		2,035	$	1,560	$	1,600		(2.5	%)		93.2	%		92.8	%		0.4	%	$	8,829	$	9,045		(2.4	%)
New York, NY		1,646		1,986		2,002		(0.8	%)		94.2	%		94.9	%		(0.7	%)		9,236		9,377		(1.5	%)
Boston, MA		1,479		1,568		1,688		(7.1	%)		96.5	%		91.1	%		5.4	%		6,714		6,827		(1.7	%)
Northern New Jersey		1,043		2,166		2,220		(2.4	%)		94.8	%		91.8	%		3.0	%		6,424		6,388		0.6	%
Long Island, NY		806		2,115		2,081		1.6	%		97.6	%		98.3	%		(0.7	%)		4,988		4,947		0.8	%
Central New Jersey		206		1,582		1,579		0.2	%		96.3	%		90.2	%		6.1	%		940		886		6.1	%

Northeast Average		7,215		1,811		1,857		(2.5	%)		95.0	%		93.4	%		1.6	%		37,131		37,470		(0.9	%)

Mid-Atlantic
Washington, DC		3,630		1,378		1,369		0.7	%		96.0	%		92.8	%		3.2	%		14,411		13,871		3.9	%
Baltimore, MD		526		1,128		1,131		(0.3	%)		96.2	%		96.0	%		0.2	%		1,712		1,714		(0.1	%)

Mid-Atlantic Average		4,156		1,347		1,340		0.5	%		96.0	%		93.1	%		2.9	%		16,123		15,585		3.4	%

Midwest
Chicago, IL		887		1,091		1,083		0.7	%		92.3	%		90.8	%		1.5	%		2,682		2,625		2.2	%

Midwest Average		887		1,091		1,083		0.7	%		92.3	%		90.8	%		1.5	%		2,682		2,625		2.2	%

Pacific Northwest
Seattle, WA		2,738		1,019		1,035		(1.5	%)		94.5	%		91.4	%		3.1	%		7,906		7,783		1.6	%

Pacific Northwest Average		2,738		1,019		1,035		(1.5	%)		94.5	%		91.4	%		3.1	%		7,906		7,783		1.6	%

Northern California
San Jose, CA		4,890		1,375		1,465		(6.1	%)		95.8	%		94.8	%		1.0	%		19,329		20,377		(5.1	%)
Oakland-East Bay, CA		2,090		1,199		1,249		(4.0	%)		94.4	%		95.6	%		(1.2	%)		7,100		7,488		(5.2	%)
San Francisco, CA		1,511		1,565		1,588		(1.4	%)		95.7	%		94.8	%		0.9	%		6,791		6,822		(0.5	%)

Northern California Average		8,491		1,366		1,434		(4.7	%)		95.5	%		95.0	%		0.5	%		33,220		34,687		(4.2	%)

Southern California
Los Angeles, CA		1,638		1,271		1,252		1.5	%		94.5	%		95.1	%		(0.6	%)		5,901		5,848		0.9	%
San Diego, CA		1,234		1,265		1,250		1.2	%		95.2	%		93.5	%		1.7	%		4,459		4,333		2.9	%
Orange County, CA		1,174		1,207		1,200		0.6	%		95.7	%		94.9	%		0.8	%		4,067		4,010		1.4	%

Southern California Average		4,046		1,250		1,235		1.2	%		95.0	%		94.5	%		0.5	%		14,427		14,191		1.7	%

Average/Total Established		27,533	$	1,419	$	1,451		(2.2	%)		95.2	%		93.8	%		1.4	%	$	111,489	$	112,341		(0.8	%)

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2003 such that a comparison of 2003 to 2004 is meaningful.
(2)		Reflects the effect of concessions amortized over the lease term.
(3)		With concessions reflected on a cash basis, rental revenue from Established Communities declined 0.8% between years.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes - Established Communities (1)
June 30, 2004


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's) (3)
			Q2 04		Q1 04		% Change			Q2 04			Q1 04			% Change			Q2 04		Q1 04		% Change
Northeast
Fairfield-New Haven, CT		2,035	$	1,560	$	1,555		0.3	%		93.2	%		88.0	%		5.2	%	$	8,829	$	8,356		5.7	%
New York, NY		1,646		1,986		1,990		(0.2	%)		94.2	%		91.7	%		2.5	%		9,236		9,011		2.5	%
Boston, MA		1,479		1,568		1,591		(1.4	%)		96.5	%		95.1	%		1.4	%		6,714		6,714		0.0	%
Northern New Jersey		1,043		2,166		2,210		(2.0	%)		94.8	%		92.5	%		2.3	%		6,424		6,396		0.4	%
Long Island, NY		806		2,115		2,152		(1.7	%)		97.6	%		92.7	%		4.9	%		4,988		4,822		3.4	%
Central New Jersey		206		1,582		1,574		0.5	%		96.3	%		92.9	%		3.4	%		940		903		4.1	%

Northeast Average		7,215		1,811		1,824		(0.7	%)		95.0	%		91.7	%		3.3	%		37,131		36,202		2.6	%

Mid-Atlantic
Washington, DC		3,630		1,378		1,359		1.4	%		96.0	%		95.0	%		1.0	%		14,411		14,056		2.5	%
Baltimore, MD		526		1,128		1,124		0.4	%		96.2	%		96.3	%		(0.1	%)		1,712		1,708		0.2	%

Mid-Atlantic Average		4,156		1,347		1,329		1.4	%		96.0	%		95.1	%		0.9	%		16,123		15,764		2.3	%

Midwest
Chicago, IL		887		1,091		1,075		1.5	%		92.3	%		92.9	%		(0.6	%)		2,682		2,659		0.9	%

Midwest Average		887		1,091		1,075		1.5	%		92.3	%		92.9	%		(0.6	%)		2,682		2,659		0.9	%

Pacific Northwest
Seattle, WA		2,738		1,019		1,016		0.3	%		94.5	%		94.1	%		0.4	%		7,906		7,855		0.7	%

Pacific Northwest Average		2,738		1,019		1,016		0.3	%		94.5	%		94.1	%		0.4	%		7,906		7,855		0.7	%

Northern California
San Jose, CA		4,890		1,375		1,378		(0.2	%)		95.8	%		96.3	%		(0.5	%)		19,329		19,458		(0.7	%)
Oakland-East Bay, CA		2,090		1,199		1,203		(0.3	%)		94.4	%		93.1	%		1.3	%		7,100		7,020		1.1	%
San Francisco, CA		1,511		1,565		1,561		0.3	%		95.7	%		96.0	%		(0.3	%)		6,791		6,792		0.0	%

Northern California Average		8,491		1,366		1,368		(0.1	%)		95.5	%		95.5	%		0.0	%		33,220		33,270		(0.1	%)

Southern California
Los Angeles, CA		1,638		1,271		1,259		1.0	%		94.5	%		96.0	%		(1.5	%)		5,901		5,939		(0.6	%)
San Diego, CA		1,234		1,265		1,260		0.4	%		95.2	%		95.2	%		0.0	%		4,459		4,439		0.5	%
Orange County, CA		1,174		1,207		1,208		(0.1	%)		95.7	%		95.6	%		0.1	%		4,067		4,067		0.0	%

Southern California Average		4,046		1,250		1,244		0.5	%		95.0	%		95.6	%		(0.6	%)		14,427		14,445		(0.1	%)

Average/Total Established		27,533	$	1,419	$	1,419		0.0	%		95.2	%		94.0	%		1.2	%	$	111,489	$	110,195		1.2	%

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2003 such that a comparison of 2003 to 2004 is meaningful.
(2)		Reflects the effect of concessions amortized over the lease term.
(3)		With concessions reflected on a cash basis, rental revenue from Established Communities increased 0.5% between quarters.

Attachment 6

AvalonBay Communities, Inc.
Year-to-Date Revenue and Occupancy Changes - Established Communities (1)
June 30, 2004


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's) (3)
			YTD 04		YTD 03		% Change			YTD 04			YTD 03			% Change			YTD 04		YTD 03		% Change
Northeast
Fairfield-New Haven, CT		2,035	$	1,554	$	1,597		(2.7	%)		90.6	%		91.2	%		(0.6	%)	$	17,186	$	17,782		(3.4	%)
Boston, MA		1,646		1,580		1,705		(7.3	%)		95.8	%		91.0	%		4.8	%		13,428		13,765		(2.4	%)
New York, NY		1,479		1,988		1,996		(0.4	%)		92.9	%		94.7	%		(1.8	%)		18,247		18,667		(2.2	%)
Northern New Jersey		1,043		2,188		2,222		(1.5	%)		93.7	%		90.6	%		3.1	%		12,821		12,602		1.7	%
Long Island, NY		806		2,133		2,073		2.9	%		95.1	%		98.7	%		(3.6	%)		9,809		9,894		(0.9	%)
Central New Jersey		206		1,577		1,600		(1.4	%)		94.6	%		91.1	%		3.5	%		1,843		1,801		2.3	%

Northeast Average		7,215		1,815		1,854		(2.1	%)		93.3	%		92.8	%		0.5	%		73,334		74,511		(1.6	%)

Mid-Atlantic
Washington, DC		3,630		1,369		1,370		(0.1	%)		95.5	%		92.5	%		3.0	%		28,466		27,592		3.2	%
Baltimore, MD		526		1,126		1,121		0.4	%		96.2	%		95.8	%		0.4	%		3,420		3,388		0.9	%

Mid-Atlantic Average		4,156		1,338		1,338		0.0	%		95.6	%		92.8	%		2.8	%		31,886		30,980		2.9	%

Midwest
Chicago, IL		887		1,084		1,096		(1.1	%)		92.6	%		90.9	%		1.7	%		5,341		5,298		0.8	%

Midwest Average		887		1,084		1,096		(1.1	%)		92.6	%		90.9	%		1.7	%		5,341		5,298		0.8	%

Pacific Northwest
Seattle, WA		2,738		1,018		1,039		(2.0	%)		94.3	%		91.9	%		2.4	%		15,761		15,675		0.5	%

Pacific Northwest Average		2,738		1,018		1,039		(2.0	%)		94.3	%		91.9	%		2.4	%		15,761		15,675		0.5	%

Northern California
San Jose, CA		4,890		1,377		1,479		(6.9	%)		96.0	%		95.0	%		1.0	%		38,787		41,232		(5.9	%)
Oakland-East Bay, CA		2,090		1,201		1,256		(4.4	%)		93.8	%		95.6	%		(1.8	%)		14,120		15,061		(6.2	%)
San Francisco, CA		1,511		1,563		1,594		(1.9	%)		95.9	%		95.0	%		0.9	%		13,583		13,736		(1.1	%)

Northern California Average		8,491		1,367		1,445		(5.4	%)		95.5	%		95.1	%		0.4	%		66,490		70,029		(5.1	%)

Southern California
Orange County, CA		1,174		1,208		1,197		0.9	%		95.6	%		95.5	%		0.1	%		8,133		8,049		1.0	%
San Diego, CA		1,638		1,262		1,250		1.0	%		95.2	%		94.5	%		0.7	%		8,897		8,740		1.8	%
Los Angeles, CA		1,234		1,265		1,245		1.6	%		95.3	%		95.6	%		(0.3	%)		11,841		11,703		1.2	%

Southern California Average		4,046		1,247		1,233		1.1	%		95.3	%		95.2	%		0.1	%		28,871		28,492		1.3	%

Average/Total Established		27,533	$	1,418	$	1,453		(2.4	%)		94.6	%		93.7	%		0.9	%	$	221,683	$	224,985		(1.5	%)

(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2003 such that a comparison of 2003 to 2004 is meaningful.
(2)		Reflects the effect of concessions amortized over the lease term.
(3)		With concessions reflected on a cash basis, rental revenue from Established Communities declined 1.4% between years.

Attachment 7

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity as of June 30, 2004


			Number		Number		Total
			of		of		Capital Cost (1)
			Communities		Homes		(millions)
Portfolio Additions:

2004 Annual Completions	(2	)

Development				4		1,268	$	241.9

Redevelopment	(3	)		1				8.3

Total Additions				5		1,268	$	250.2

2003 Annual Completions

Development				7		1,959	$	372.7

Redevelopment

Total Additions				7		1,959	$	372.7

Pipeline Activity:	(2	)

Currently Under Construction

Development				14		4,149	$	790.1

Redevelopment	(3	)		1				26.1

Subtotal				15		4,149	$	816.2

Planning

Development Rights				40		10,728	$	2,246.0

Total Pipeline				55		14,877	$	3,062.2


	% Economic
	Occ
Non-Stabilized Development Communities: (4)	(1)(5)
Avalon Glendale, Glendale, CA		94.7	%	223	$	40.4
Avalon Darien, Darien, CT		86.5	%	189		41.7
Avalon at Newton Highlands, Newton, MA		94.7	%	294		57.7
Avalon at Stevens Pond, Saugus, MA		86.4	%	326		54.3

Total				1,032	$	194.1

	(1)		See Attachment #13 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

	(2)		Information represents projections and estimates.

	(3)		Represents only cost of redevelopment activity, does not include original acquisition cost or number of apartment homes acquired.

	(4)		Represents Development Communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter.

	(5)		Represents Economic Occupancy for the second quarter of 2004.

			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 2004.

Attachment 8

AvalonBay Communities, Inc.
Development Communities as of June 30, 2004


	Percentage			# of		Total Capital			Schedule								Avg Rent								% Occ
	Ownership			Apt		Cost (1)					Initial				Stabilized		Per		% Comp			% Leased			Physical			Economic
	Upon Completion			Homes		(millions)			Start		Occupancy		Complete		Ops (1)		Home (1)		(2)			(3)			(4) (5)			(1) (6)
																	Inclusive of
																	Concessions
																	See Attachment #13
Under Construction:
1. Avalon at Grosvenor Station (7) (8)		99	%		497	$	80.4			Q1 2002		Q3 2003		Q4 2004		Q2 2005	$	1,545		82.1	%		85.9	%		77.9	%		58.7	%
North Bethesda, MD
2. Avalon at Glen Cove South		100	%		256	$	65.5			Q3 2002		Q1 2004		Q3 2004		Q1 2005	$	2,350		53.9	%		58.6	%		34.8	%		17.5	%
Glen Cove, NY
3. Avalon at Traville (9)		100	%		520	$	71.5			Q4 2002		Q3 2003		Q1 2005		Q3 2005	$	1,450		74.4	%		70.0	%		61.2	%		44.3	%
North Potomac, MD
4. Avalon Run East II		100	%		312	$	49.3			Q2 2003		Q2 2004		Q1 2005		Q3 2005	$	1,705		11.5	%		18.3	%		11.2	%		5.1	%
Lawrenceville, NJ
5. Avalon at Crane Brook		100	%		387	$	56.2			Q3 2003		Q2 2004		Q2 2005		Q4 2005	$	1,470		36.2	%		48.6	%		25.1	%		15.1	%
Danvers & Peabody, MA
6. Avalon Milford I		100	%		246	$	32.5			Q3 2003		Q2 2004		Q1 2005		Q3 2005	$	1,340		29.3	%		53.7	%		28.5	%		12.3	%
Milford, CT
7. Avalon Chrystie Place I (10)		20	%		361	$	149.9			Q4 2003		Q3 2005		Q4 2005		Q2 2006	$	2,665		N/A			N/A			N/A			N/A
New York, NY
8. Avalon at The Pinehills I		100	%		101	$	19.9			Q4 2003		Q3 2004		Q1 2005		Q3 2005	$	2,205		7.9	%		19.8	%		4.0	%		N/A
Plymouth, MA
9. Avalon Pines I		100	%		298	$	48.7			Q4 2003		Q1 2005		Q3 2005		Q1 2006	$	1,940		N/A			N/A			N/A			N/A
Coram, NY
10. Avalon Orange		100	%		168	$	22.4			Q1 2004		Q2 2005		Q3 2005		Q1 2006	$	1,545		N/A			N/A			N/A			N/A
Orange, CT
11. Avalon Danbury		100	%		234	$	35.6			Q1 2004		Q2 2005		Q4 2005		Q2 2006	$	1,675		N/A			N/A			N/A			N/A
Danbury, CT
12. Avalon del Rey (11)		30	%		309	$	70.0			Q2 2004		Q2 2005		Q4 2005		Q2 2006	$	1,790		N/A			N/A			N/A			N/A
Los Angeles, CA
13. Avalon at Juanita Village (12)		0	%		211	$	45.5			Q2 2004		Q3 2005		Q4 2005		Q2 2006	$	1,615		N/A			N/A			N/A			N/A
Kirkland, WA
14. Avalon Camarillo		100	%		249	$	42.7			Q2 2004		Q3 2005		Q1 2006		Q3 2006	$	1,630		N/A			N/A			N/A			N/A
Camarillo, CA

Total/Weighted Average					4,149	$	790.1										$	1,750

Weighted Average Projected NOI as a % of Total Capital Cost (1) (13)							8.2	%							Inclusive of Concessions See Attachment #13

(1)		See Attachment #13 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 9, 2004.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of July 9, 2004.

(4)		Physical occupancy based on apartment homes occupied as of July 9, 2004.

(5)		Q2 2004 Net Operating Income/(Deficit) for communities under construction and communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter (as detailed on Attachment #7) was $4.1 million. See Attachment #13.

(6)		Represents Economic Occupancy for the second quarter of 2004.

(7)		The community is owned by a DownREIT partnership in which a wholly-owned subsidiary of the Company is the general partner with a majority interest. This community is consolidated for financial reporting purposes.

(8)		For purposes of calculating Projected NOI as a % of Total Capital Cost for this community and its related impact on the Weighted Average calculation, the Company has included in Total Capital Cost $1.9 million, the present value of a projected residual land payment that is a priority distribution upon a sale or refinancing transaction in the future.

(9)		Construction started at Avalon Traville Phase II in Q2 2003. It is combined above with Phase I for reporting purposes.

(10)		The community is financed under a joint venture structure with third-party financing, in which the community is owned by a limited liability company managed by a wholly-owned subsidiary of the Company. The Companys portion of the Total Capital Cost of this joint venture is projected to be $30.0 million including community-based tax-exempt debt.

(11)		The community is currently owned by a wholly-owned subsidiary of the Company, will be financed, in part or in whole, by a construction loan, and is subject to a joint venture agreement that allows for a joint venture partner to be admitted upon construction completion.

(12)		The community is being developed by a wholly-owned, taxable REIT subsidiary of the Company, and is subject to a venture agreement that provides for the transfer of 100% of the ownership interests upon completion.

(13)		The Weighted Average calculation is 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 2004.

Attachment 9

AvalonBay Communities, Inc.
Redevelopment Communities (1) as of June 30, 2004

Cost (millions)

Schedule

Avg

Number of Homes

# of

Pre-

Total

Rent

Out of

Apt

Redevelopment

Capital

Restabilized

Per

Completed

Service

Homes

Capital Cost

Cost (2)(3)

Acquisition

Start

Complete

Ops (3)

Home (3)

to date

@ 6/30/04

Inclusive of

Concessions

See Attachment #13

Under Redevelopment:

1. Avalon at Prudential Center (4)

781

133.9

160.0

Q3 1998

Q4 2000

Q2 2006

Q4 2006

2,625

492

Boston, MA

Total/Weighted Average

781

133.9

160.0

2,625

492

Weighted Average Projected NOI as a % of Total Capital Cost (3)

9.2

Inclusive of Concessions See Attachment #13

(1)		Redevelopment Communities are communities acquired for which redevelopment costs are expected to exceed 10% of the original acquisition cost or $5 million.

(2)		Inclusive of acquisition cost.

(3)		See Attachment #13 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		In Q2 2003, the scope of this redevelopment was changed to include a roof replacement and other apartment renovations, increasing the redevelopment budget to $22.2 million from $20.6 million. In Q4 2003, the scope of this redevelopment was extended to include renovations on all remaining apartments, increasing the redevelopment budget to $26.1 million.

		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 2004.

Attachment 10

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of June 30, 2004


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)		Period End (6)
Total 2002 Actual		2,479	$	417,564,422	$	469,270,539	$	254,198,266	$	295,107,369

2003 Actual :
Quarter 1		343	$	47,610,401	$	66,767,096	$	205,448,920	$	304,444,246
Quarter 2		380		96,480,917		75,410,129		307,768,115		270,813,025
Quarter 3		633		78,516,195		120,057,691		304,758,336		266,114,151
Quarter 4		425		81,862,958		73,129,401		325,139,145		240,137,497

Total 2003 Actual		1,781	$	304,470,471	$	335,364,317

2004:
Quarter 1 (Actual)		345	$	69,258,020	$	61,978,159	$	366,959,227	$	265,153,787
Quarter 2 (Actual)		771		111,145,634		130,021,954		254,299,634		296,508,756
Quarter 3 (Projected)		614		72,699,106		107,304,740		181,600,529		268,276,942
Quarter 4 (Projected)		413		64,604,480		66,149,337		116,996,049		269,248,434

Total 2004 Projected		2,143	$	317,707,240	$	365,454,190


REDEVELOPMENT
			Total Capital				Reconstruction in
	Avg Homes		Cost Invested		Remaining to		Progress at
	Out of Service		During Period (3)		Invest (5)		Period End (6)
Total 2002 Actual			$	10,612,174	$	7,655,832	$	17,317,952

2003 Actual :
Quarter 1		68	$	1,798,678	$	5,857,154	$	10,541,752
Quarter 2		75		1,535,351		5,738,979		15,074,513
Quarter 3		83		3,055,001		3,179,103		16,888,849
Quarter 4		52		1,619,936		5,660,027		13,045,931

Total 2003 Actual			$	8,008,966

2004:
Quarter 1 (Actual)		30	$	676,563	$	4,362,256	$	28,533
Quarter 2 (Actual)		31		887,369		7,444,068
Quarter 3 (Projected)		30		2,085,449		5,358,619
Quarter 4 (Projected)		30		1,640,148		3,718,472

Total 2004 Projected			$	5,289,529

(1)		Data is presented for all communities currently under construction or reconstruction and those communities for which construction or reconstruction is expected to begin within the next 90 days.

(2)		Projected periods include data for consolidated joint ventures at 100%. The offset for joint venture partners participation is reflected as minority interest.

(3)		Represents Total Capital Cost incurred or expected to be incurred during the quarter, year or in total see Attachment #13 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		Represents Total Capital Cost incurred in all quarters 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 and those for which construction or reconstruction is expected to begin within the next 90 days. Remaining to invest for Q204 includes $4.0 million attributed to one anticipated Q304 redevelopment start and $21.8 million attributed to Avalon Chrystie Place I. The Companys portion of the Total Capital Cost of this joint venture is projected to be $30.0 million including community-based tax-exempt debt.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q204 includes $48.0 million related to an unconsolidated joint venture and is reflected in other assets for financial reporting purposes.

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 2004.

Attachment 11

AvalonBay Communities, Inc.
Future Development as of June 30, 2004


DEVELOPMENT RIGHTS
				Estimated		Total
				Number		Capital Cost (1)
Location of Development Right				of Homes		(millions)
	1.	Lyndhurst, NJ	(2)		347	$	76
	2.	Newton, MA			236		60
	3.	Bedford, MA	(2)		139		21
	4.	San Francisco, CA			313		113
	5.	Los Angeles, CA	(2)		123		36
	6.	Glen Cove, NY	(2)		111		31
	7.	Long Island City, NY Phase II and III			613		162
	8.	New Rochelle, NY Phase II and III			588		144
	9.	Hingham, MA			236		44
	10.	Quincy, MA	(2)		148		24
	11.	Plymouth, MA Phase II			69		13
	12.	Rockville, MD Phase II			196		28
	13.	Bellevue, WA			368		71
	14.	Norwalk, CT			312		63
	15.	New York, NY Phase II and III	(2)		308		134
	16.	Shrewsbury, MA			300		44
	17.	Danvers, MA			428		80
	18.	Stratford, CT			146		23
	19.	Wilton, CT			100		24
	20.	Coram, NY Phase II	(2)		152		26
	21.	Dublin, CA Phase I			304		72
	22.	Encino, CA			137		46
	23.	Greenburgh, NY Phase II			766		120
	24.	Sharon, MA			190		31
	25.	West Haven, CT			170		23
	26.	Lexington, MA			387		76
	27.	Andover, MA			115		21
	28.	Cohasset, MA			200		38
	29.	Dublin, CA Phase II			200		47
	30.	Dublin, CA Phase III			205		49
	31.	Yaphank, NY			270		41
	32.	Seattle, WA	(2)		194		50
	33.	Oyster Bay, NY			273		69
	34.	College Park, MD			320		44
	35.	Irvine, CA			290		63
	36.	Camarillo, CA			376		55
	37.	Gaithersburg, MD			254		41
	38.	Milford, CT	(2)		284		41
	39.	Rockville, MD	(2)		240		46
	40.	Wheaton, MD	(2)		320		56


		Total			10,728	$	2,246

(1)		See Attachment #13 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		Company owns land, but construction has not yet begun.

Attachment 12

AvalonBay Communities, Inc.
Summary of Disposition Activity as of June 30, 2004

Weighted

Accumulated

Weighted Average

Weighted

Number of

Average

Gross Sales

Depreciation

Economic

Initial Year

Average

Communities Sold

Holding Period

Price

GAAP Gain

and Other

Gain (1)

Mkt. Cap Rate (1)

Unleveraged IRR (1)

1998:

9 Communities

170,312,000

25,270,000

23,438,000

1,832,000

7.5

11.8

1999:

16 Communities

317,712,000

47,093,000

27,150,000

19,943,000

8.3

10.0

2000:

8 Communities

160,085,000

40,779,000

6,262,000

34,517,000

7.9

21.3

2001:

7 Communities

241,130,000

62,852,000

21,623,000

41,229,000

8.0

14.0

2002:

1 Community

80,100,000

48,893,000

7,462,000

41,431,000

5.4

22.1

2003:

12 Communities (2)

453,900,000

183,204,000

52,613,000

130,591,000

6.3

15.0

2004:

2 Communities

61,100,000

12,375,000

10,690,000

1,685,000

5.9

7.6

1998 - 2004 Total

5.0

1,484,339,000

420,466,000

149,238,000

271,228,000

7.2

14.2

(1)		See Attachment #13 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(2)		2003 GAAP gain, for purposes of this attachment, includes $23,448,000 related to the sale of a community in which the Company held a 50% membership interest and excludes $1,234,000 related to the sale of a land parcel.

Attachment 13

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 computed in accordance with GAAP, adjusted for gains or losses on sales of property, 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 property 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 is as follows (dollars in thousands):


	Q2			Q2			YTD			YTD
	2004			2003			2004			2003
Net income	$	35,034		$	76,468		$	60,311		$	113,856
Dividends attributable to preferred stock		(2,175	)		(2,706	)		(4,350	)		(6,394	)
Depreciation real estate assets, including discontinued operations and joint venture adjustments		39,054			37,523			77,551			75,069
Minority interest, including discontinued operations		912			379			1,239			762
Cumulative effect of change in accounting principle								(4,547	)
Gain on sale of communities		(12,375	)		(54,511	)		(12,375	)		(68,583	)

FFO attributable to common stockholders	$	60,450		$	57,153		$	117,829		$	114,710

Average shares outstanding diluted		73,037,484			68,903,145			72,791,470			69,007,504
EPS diluted	$	0.46		$	1.08		$	0.79		$	1.57

FFO per common share diluted	$	0.83		$	0.83		$	1.62		$	1.66

Projected FFO, as provided within this release in the Companys outlook, is calculated on a consistent basis as historical FFO, and is therefore considered to be an appropriate supplemental measure to projected net income of projected operating performance. A reconciliation of the range provided for Projected FFO per share (diluted) for the third quarter and full year 2004 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) Q3 04	$	0.39		$	0.43
Projected depreciation (real estate related)		0.53			0.58
Projected gain on sale of communities		(0.12	)		(0.17	)

Projected FFO per share (diluted) Q3 04	$	0.80		$	0.84

Projected EPS (diluted) Full Year 2004	$	1.47		$	1.57
Projected depreciation (real estate related)		2.12			2.22
Projected gain on sale of communities		(0.29	)		(0.39	)
Cumulative effect of change in accounting principle		(0.07	)		(0.07	)

Projected FFO per share (diluted) Full Year 2004	$	3.23		$	3.33

Attachment 13 (continued)

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 2004, Established Communities are communities that have Stabilized Operations as of January 1, 2003 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.

NOI is defined by the Company as total revenue less direct property operating expenses (including property taxes), and excludes corporate-level property management and other indirect operating expenses, interest income and expense, general and administrative expense, joint venture income, minority interest and venture partner interest in profit-sharing, depreciation expense, gain on sale of communities, impairment losses, cumulative effect of change in accounting principle 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 any corporate-level property management overhead or general and administrative costs. This is more reflective of the operating performance of a community, and allows for an easier comparison of the operating performance of single assets or groups of assets. In addition, because prospective buyers of real estate have different overhead structures, with varying marginal impact to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or groups of assets.

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


	Q2			Q2			Q1			YTD			YTD
	2004			2003			2004			2004			2003
Net income	$	35,034		$	76,468		$	25,277		$	60,311		$	113,856
Property management and other indirect operating expenses		9,248			7,056			8,157			17,404			15,053
Interest income		(36	)		(880	)		(20	)		(56	)		(1,782	)
Interest expense		32,482			34,067			32,286			64,768			68,041
General and administrative expense		4,071			3,623			3,971			8,041			7,254
Joint venture income, minority interest and venture partner interest in profit-sharing		496			27			(7	)		489			97
Depreciation expense		40,173			37,053			39,571			79,745			73,723
Cumulative effect of change in accounting principle								(4,547	)		(4,547	)
Gain on sale of communities		(12,375	)		(54,511	)					(12,375	)		(68,583	)
Income from discontinued operations		(608	)		(3,011	)		(1,184	)		(1,792	)		(8,002	)

NOI from continuing operations	$	108,485		$	99,892		$	103,504		$	211,988		$	199,657

Established:
Northeast	$	25,363		$	25,560		$	23,477		$	48,840		$	50,337
Mid-Atlantic		11,328			10,899			11,062			22,390			21,735
Midwest		1,547			1,521			1,573			3,120			2,943
Pacific NW		4,924			4,785			4,977			9,901			9,827
No. California		23,218			24,835			23,380			46,598			50,709
So. California		10,197			9,897			10,249			20,446			20,129

Total Established		76,577			77,497			74,718			151,295			155,680

Other Stabilized		18,651			14,682			18,415			37,065			28,181
Development/Redevelopment		13,116			7,636			10,197			23,313			15,339
Non-Allocated		141			77			174			315			457

NOI from continuing operations	$	108,485		$	99,892		$	103,504		$	211,988		$	199,657

Attachment 13 (continued)

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold or held for sale as of June 30, 2004). A reconciliation of NOI from communities sold or held for sale to net income for these communities for the second quarter and year-to-date 2004 is as follows (dollars in thousands):


	Q2		YTD
	2004		2004
NOI from assets held for sale	$	464	$	990
NOI from assets sold		196		1,140

NOI from discontinued operations	$	660	$	2,130

Income from discontinued operations	$	608	$	1,792
Interest expense, net		52		213
Depreciation expense				125

NOI from discontinued operations	$	660	$	2,130

Projected NOI, as used within this release for certain Development and Redevelopment Communities and in calculating the Initial Year Market Cap Rate for dispositions, represents managements estimate, as of the date of this release, of projected stabilized rental revenue minus projected stabilized operating expenses. For Development and Redevelopment 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 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 percentage ownership of the Total Capital Cost of each community.

In this release the Company has not given a projection of NOI on a company-wide basis. Management believes that Projected NOI of the development and redevelopment communities, on an aggregated weighted average basis, assists investors in understanding managements estimate of the likely impact on operations of the Development and Redevelopment Communities (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense) when they are complete and achieve stabilized occupancy. Given the different dates and fiscal years at which stabilization 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 or redevelopment is complex, impractical to develop, and of uncertain meaningfulness. Projected NOI of these communities is not a projection of the Companys financial performance or cash flow. There can be no assurance that the communities under development or redevelopment will achieve the Projected NOI used in the calculation of weighted average Projected NOI to Total Capital Cost.

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.

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 13 (continued)

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 in helping investors to 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, which is an indicator of current rental market conditions. 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			Q1			YTD			YTD
	2004			2003			2004			2004			2003
Rental revenue (GAAP basis)	$	111,489		$	112,341		$	110,195		$	221,683		$	224,985
Concessions amortized		4,110			2,958			3,840			7,949			5,638
Concessions granted		(4,445	)		(3,201	)		(3,457	)		(7,902	)		(5,820	)

Rental revenue (with concessions on a cash basis)	$	111,154		$	112,098		$	110,578		$	221,730		$	224,803

% change GAAP revenue					(0.8	%)		1.2	%					(1.5%	)
% change cash revenue					(0.8	%)		0.5	%					(1.4%	)

Economic Gain is calculated by the Company as the gain 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 to be an appropriate supplemental measure to gain 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 for each of the communities presented is estimated based on their respective final settlement statements. A reconciliation of Economic Gain to gain on sale in accordance with GAAP is presented on Attachment 12.

Initial Year Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months following the date of the buyers valuation, less estimates for non-routine allowance of approximately $225 $300 per apartment home, divided by the gross sales price for the community. For this purpose, managements projection of stabilized operating expenses for the community includes a management fee of approximately 2.5% 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 the 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, including 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.

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. 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.

Attachment 13 (continued)

Leverage is calculated by the Company as total debt as a percentage of total market capitalization. Total market capitalization represents the aggregate of the market value of the Companys common stock, the market value of the Companys operating partnership units outstanding (based on the market value of the Companys common stock), the liquidation preference of the Companys preferred stock and the outstanding principal balance of the Companys debt. Management believes that Leverage can be one useful measure of a real estate operating companys long-term liquidity and balance sheet strength, because it shows an approximate relationship between a companys total debt and the current total market value of its assets based on the current price at which the companys common stock trades. Changes in Leverage also can influence changes in per share results. A calculation of Leverage as of June 30, 2004 is as follows (dollars in thousands):


Total debt	$	2,440,700

Common stock		4,062,614
Preferred stock		100,000
Operating partnership units		32,769
Total debt		2,440,700

Total market capitalization		6,636,083

Debt as % of capitalization		36.8	%

Because Leverage changes with fluctuations in the Companys stock price, which occurs regularly, the Companys Leverage may change even when the Companys earnings, interest and debt levels remain stable. Investors should also note that the net value of the Companys assets in liquidation is not easily determinable and may differ substantially from the Companys total market capitalization.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Companys Interest Coverage, EBITDA and cash flow from operations, Unencumbered NOI is a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the six months ended June 30, 2004 is as follows (dollars in thousands):


NOI for Established Communities	$	151,295
NOI for Other Stabilized Communities		37,065
NOI for Development/Redevelopment Communities		23,313
NOI for discontinued operations		2,130

Total NOI generated by real estate assets		213,803
NOI on encumbered assets		40,514

NOI on unencumbered assets		173,289

Unencumbered NOI		81.1	%

Interest Coverage is calculated by the Company as EBITDA from continuing operations divided by the sum of interest expense and preferred dividends net of interest income. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our liquidity to that of other companies. EBITDA is defined by the Company as net income before interest income and expense, income taxes, depreciation and amortization. Under this definition, which complies with the rules and regulations of the Securities and Exchange Commission, EBITDA includes gains on sale of assets and gain on sale of partnership interests.

Attachment 13 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the second quarter of 2004 are as follows (dollars in thousands):


Net income	$	35,034
Interest income		(36	)
Interest expense		32,482
Interest expense (discontinued operations)		52
Depreciation expense		40,173

EBITDA	$	107,705

EBITDA from continuing operations	$	94,670
EBITDA from discontinued operations		13,035

EBITDA	$	107,705

EBITDA from continuing operations	$	94,670
Interest expense		32,482
Interest income		(36	)
Dividends attributable to preferred stock		2,175

Interest charges		34,621

Interest coverage		2.7

In the calculations of EBITDA above, EBITDA from discontinued operations includes $12,375 in gain on sale of communities.

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, including concessions equal to one-half month rent.

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 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 the 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.

Form: 8-K

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